Document:

Unassociated Document

    NON-QUALIFIED
      STOCK OPTION AGREEMENT

    

    

    THIS
      NON-QUALIFIED STOCK OPTION AGREEMENT (“Agreement”) is made by and between China
      Green Agriculture, Inc., a Nevada corporation (the “Company”), and Henry Huan
      Chen (the “Optionee”).

     

    W
      I T
      N E S S E T H:

     

    WHEREAS,
      the Board of Directors of the Company (the “Board of Directors”) or, if so
      previously appointed, its compensation committee (the “Compensation Committee”)
      has, on the date set forth on the signature page below, granted Optionee a
      Non-Qualified stock option (the “Option”) to purchase from the Company shares of
      the Company’s common stock, par value $.001 per share (“Common
      Stock”);

    

    NOW,
      THEREFORE, in consideration of the mutual benefit to be derived herefrom, the
      Company and Optionee agree as follows:

    

    1. Grant
      of Option. The
      Company hereby grants to Optionee, the right, privilege and option (“Option”) to
      purchase 40,000 shares of its Common Stock at an exercise price (“Exercise
      Price”) of $6.00 per share, in the manner and subject to the conditions provided
      hereinafter.

     

    2. Vesting
      of Option. The
      Option shall become vested and exercisable in accordance with the following
      schedule:

    

    12,000
      shares   Vesting
      on June 29, 2008.

     

    28,000
      shares  Vesting
      on July 1, 2009.

     

    In
      the
      event that Optionee is no longer a Chief Financial Officer of the Company,
      any
      unvested options shall immediately terminate on the date of his removal or
      resignation.

     

    3.
      Exercise
      Period.
      Any
      exercise may be with respect to any part or all of the shares then exercisable
      pursuant to such Option. All Options must be exercised within two years after
      the date of the vesting. 

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    4. Manner
      of Exercise.

     

    (a)  The
      Option shall be exercised by written notice of exercise in the form of Exhibit
      A
      to this Agreement addressed to the Company and signed by the Optionee and
      delivered to the Company, as such Exhibit may be amended by the Board of
      Directors or the Compensation Committee from time to time. Optionee also agrees
      to make such other representations as are deemed necessary or appropriate by
      the
      Company and its counsel. If the Option is exercised in part only, the Company
      shall make a record such option on its books and records reflecting the partial
      exercise which shall be presumptive of the number of shares
      exercised.

     

    (b)  The
      Exercise Price is payable by certified or official bank check or by personal
      check; provided, however, that no shares of Common Stock shall be issued to
      Optionee until the Company has been advised by its bank that the check has
      cleared.

     

    (c)  The
      Option may also be exercised by the delivery to the Company of shares of Common
      Stock having a fair market value, as of the date of exercise, equal to the
      Exercise Price of the Optioned Shares to the extent that the Option is being
      exercised.

     

    (d)  (i)    In
      the
      event of the merger or consolidation of the Company with or into any corporation
      or other entity or in the event of the sale by the Company of all or
      substantially all of its business and assets followed by a distribution of
      assets to the stockholders in connection with a liquidation or partial
      liquidation of the Company or in the event of a similar transaction (each a
      “Merger Transaction”), prior to the expiration of this Option, this Option shall
      be converted into the consideration payable with respect to the Common Stock
      in
      the Merger Transaction (the “Merger Consideration”) as follows.

     

    (ii)  The
      Optionee shall receive Merger Consideration having a value equal to the
      appreciation, if any, of this Option. The appreciation of this Option shall
      be
      determined by multiplying the number of shares subject to this Option by the
      difference between (i) the value of the Merger Consideration payable with
      respect to one share of Common Stock and (ii) the Exercise Price of this Option.
      If the value of the Merger Consideration shall be equal to or less than the
      Exercise Price, this Option shall not be converted into Merger Consideration,
      but shall terminate, to the extent not exercised, at the effective time of
      the
      Merger Transaction.

     

    (iii)  The
      consideration payable to the Optionee shall be in the same form as the Merger
      Consideration. If the Merger Consideration shall consist of both cash and
      non-cash consideration, the consideration payable upon conversion of this Option
      shall be a combination of cash and non-cash consideration in the same proportion
      as the Merger Consideration is payable to the holders of the Common
      Stock.

     

    (iv)  If
      and to
      the extent that the Merger Consideration is other than cash, the value of the
      non-cash Merger Consideration shall be determined in good faith by the Company’s
      Board of Directors, and the Company shall promptly advise the Optionee of such
      determination. If the Optionee disagrees with the determination of the Board
      of
      Directors, the Optionee shall have the right to exercise this Option by paying
      the Exercise Price as provided in Section 4(b) or (c) of this Agreement prior
      to
      the effectiveness of the Merger Transaction. If the Option is not exercised
      prior to the effectiveness of the Merger Transaction, the Option shall be
      automatically converted or terminated, as the case may be, as provided in this
      Section 4(d).

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (e)   The
      shares of Common Stock when issued upon exercise of the Option (the “Optioned
      Shares”), will be duly and validly authorized and issued, fully paid and
      non-assessable.

     

    (f)    In
      connection with any exercise of this Option, the Optionee shall,
      contemporaneously with the exercise of this Option, to the extent required
      by
      law, pay or provide for payment of any withholding taxes due as a result of
      such
      exercise.

     

    

    5.     Restrictions
      on Exercise and Delivery. The
      exercise of this Option, in whole or in part, shall be subject to the condition
      that, if at any time the Board of Directors or the Compensation Committee,
      shall
      determine, in its sole and absolute discretion, 

    

    (a)     
        the satisfaction of
      any withholding tax or other withholding liabilities, is necessary or desirable
      as a condition of, or in connection with, such exercise or the delivery or
      purchase of Stock pursuant thereto,

    

    (b)    the
      listing,
      registration, or qualification of any shares deliverable upon such exercise
      is
      desirable or necessary, under any state or federal law, as a condition of,
      or in
      connection with, such exercise or the delivery or purchase of shares pursuant
      thereto, or 

    

    (c)    the
      consent
      or approval of any regulatory body is necessary or desirable as a condition
      of,
      or in connection with, such exercise or the delivery or purchase of shares
      pursuant thereto, then in any such event, such exercise shall not be effective
      unless such withholding, listing, registration, qualification, consent or
      approval shall have been effected or obtained free of any conditions not
      acceptable to the Board of Directors or its compensation committee. Optionee
      shall execute such documents and take such other actions as are required by
      the
      Board of Directors or the Compensation Committee to enable it to effect or
      obtain such withholding, listing, registration, qualification, consent or
      approval. Neither the Company nor any officer or director, or member of the
      Board of Directors or the Compensation Committee, shall have any liability
      with
      respect to the non-issuance or failure to sell shares as the result of any
      suspensions of exercisability imposed pursuant to this Section.

    

    6.     Termination
      of Option. Except
      as
      otherwise provided in this Agreement, to the extent not previously exercised,
      upon the first to occur of any of the following events: 

    

    (a)    The
      dissolution or liquidation of the Company; 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (b)     The
      breach by Optionee of any material provision of this Agreement; 

    

    (c)     The
      expiration of two years
      from the vesting date of any Options.

    

    

    8.  
Adjustment
      Provisions.
      The
      number of shares of Common Stock subject to the Option and the Exercise Price
      shall be adjusted in accordance with generally accepted accounting principles
      in
      the event of a stock dividend, stock split, stock distribution, reverse split
      or
      other combination of shares, recapitalization or otherwise, which affects the
      Common Stock.

     

    9.          
      Transferability.
      The
      Option is not transferable by the Optionee except that, in the event of
      Optionee’s death or incompetence, the Option may be exercised by Optionee’s
      legal representative or by the persons to whom the Option is transferred by
      will
      or the laws of descent and distribution.

     

    10.        
      No
      Rights As a Stockholder.
      The
      Optionee shall have no interest in and shall not be entitled to any voting
      rights or any dividend or other rights or privileges of a stockholder of the
      Company with respect to any shares of Common Stock issuable upon exercise of
      this Option prior to the exercise of this Option and payment of the Exercise
      Price. 

     

    11.       
       No
      Rights to Continued Service.
      Nothing
      in this Option shall be constructed as an employment or consulting
      agreement.

     

    12.   
Legality.
      Anything in this Option to the contrary notwithstanding, the Optionee agrees
      that he or she will not exercise the Option, and that the Company will not
      be
      obligated to issue any shares of Common Stock pursuant to this Option, if the
      exercise of the Option or the issuance of such shares shall constitute a
      violation by the Optionee or by the Company of any provisions of any law or
      of
      any regulation of any governmental authority. Any determination by the Board
      of
      Directors or the Compensation Committee shall be final, binding and conclusive.
      The Company shall not be obligated to take any affirmative action in order
      to
      cause the exercise of the Option or the issuance of shares pursuant thereto
      to
      comply with such law or regulation. The Optionee understands that, unless the
      issuance of the Optioned Shares is registered pursuant to the Securities Act
      of
      1933, as amended (the “Securities Act”), the Optioned Shares, if and when
      issued, will be restricted securities, as defined in Rule 144 of the Securities
      and Exchange Commission pursuant to the Securities Act. The Company shall not
      be
      required to issue any Optioned Shares if the issuance thereof is not permitted
      pursuant to the Securities Act. The Company shall not be required to register
      the Optioned Shares pursuant to the Securities Act.

     

    13.  
            Action
      by Company.
      The
      existence of the Option shall not effect in any way the right or power of the
      Company or its stockholders to make or authorize any or all adjustments,
      recapitalization, reorganizations or other changes in the Company’s capital
      structure or its business, or any merger or consolidation of the Company, or
      any
      issue of bonds, debentures, preferred or prior preference stocks ahead of or
      affecting the Common Stock or the rights thereof, or the dissolution or
      liquidation of the Company, or any sale or transfer of all or any part of its
      assets or business, or any other corporate act or proceeding, whether of a
      similar character or otherwise.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    14.      
        Entire
      Agreement.
      This
      Agreement contains the entire understanding of the parties with respect to
      the
      subject matter hereof and supersedes all prior agreements, understandings,
      discussions and representations, oral or written, with respect to such matters,
      which the parties acknowledge have been merged into this Agreement, including
      but not limited, the offer letter by and between the Company and the Optionee
      dated March 31, 2008.

     

    15.         Interpretation.
      As a
      condition of the granting of the Option, the Optionee and each person who
      succeeds to the Optionee’s rights hereunder, agrees that any dispute or
      disagreement which shall arise under or as a result of or pursuant to this
      Option shall be determined by the Board of Directors or its Compensation
      Committee in its sole discretion and that any interpretation by the Board of
      Directors or its Compensation Committee of the terms of this Option shall be
      final, binding and conclusive. 

     

    16. 
             Mandatory
      Arbitration.
      In
      the
      event of any dispute between the Company and Optionee regarding this Agreement,
      the dispute and any issue as to the arbitrability of such dispute, shall be
      settled to the exclusion of a court of law, by arbitration in New York, New
      York, by a panel of three arbitrators (each party shall choose one arbitrator
      and the third shall be chosen by the two arbitrators so selected) in accordance
      with the Commercial Arbitration Rules of the American Arbitration Association
      then in effect. The decision of a majority of the arbitrators shall be final
      and
      binding upon the parties. All costs of the arbitration and the fees of the
      arbitrators shall be allocated between the parties as determined by a majority
      of the arbitrators, it being the intention of the parties that the prevailing
      party in such a proceeding be made whole with respect to its
      expenses.

     

    17. 
             Notices.
      Any
      notice to be given under the terms of this Agreement shall be addressed to
      the
      Company in care of its Secretary at its principal office, and any notice to
      be
      given to Optionee shall be addressed to such Optionee at the address maintained
      by the Company for such person or at such other address as the Optionee may
      specify in writing to the Company.

     

    18. 
             Binding
      Effect.
      This
      Agreement shall be binding upon and inure to the benefit of Optionee, his heirs
      and successors, and of the Company, its successors and assigns.

     

    19.       
       Governing
      Law.
      This
      Agreement shall be governed by the laws of the State of New York without giving
      effect to principles of conflicts of laws.

     

    20.       
       Descriptive
      Headings.
      Titles
      to
      Sections are solely for informational purposes.

    
 

    
      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

    

    

    

    IN
      WITNESS WHEREOF, this Agreement is effective as of, and the date of grant shall
      be April 23, 2008.

       

    

     

    
      
        	 	
                CHINA
                  GREEN AGRICULTURE, INC.

                a
                  Nevada corporation

                

                

                By: 
                  /s/
                  Tao
                  Li                                                    
                  

                Name:
                  Tao Li

                Title:
                  President and Chief Executive Officer

                

                

                OPTIONEE

                

                /s/
                  Henry Huan
                  Chen                                         

                Henry
                  Huan Chen

                

                __________________________________

                Print
                  Name

              

      

    

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

     

    
      	 	
              ______________,
                200__

            

    

     

     

    China
      Green Agriculture, Inc.

    

    Re: Stock
      Option Exercise

    

    To
      Whom
      It May Concern:

    

    I
      (the
“Optionee”) hereby exercise my right to purchase ________ shares of common stock
      (the “Stock”) of China Green Agriculture, Inc., a Nevada corporation (the
“Company”) as set forth in my agreement (the “Agreement”) with the Company
      granting me 40,000 shares of its common stock. I deliver herewith payment as
      set
      forth in the Agreement in the amount of the aggregate option exercise price.
      Please deliver to me at my address as set forth above stock certificates
      representing the subject shares registered in my name.

    

    The
      Optionee hereby represents and agrees as follows:

     

    
      1. The
        Optionee acknowledges receipt of a copy of the Agreement. The Optionee has
        carefully reviewed the Agreement. 

      

      2.
        The
        Optionee is a resident of __________.

      

      3.
        The
        Optionee represents and agrees that if the Optionee is an “affiliate” (as
        defined in Rule 144 under the Securities Act of 1933) of the Company at the
        time
        the Optionee desires to sell any of the Stock, the Optionee will be subject
        to
        certain restrictions under, and will comply with all of the requirements
        of,
        applicable federal and state securities laws.

    

     

    The
      foregoing representations and warranties are given on ________ at
      _____________________.

     

    
      	 	
              OPTIONEE: 

               

               

              ___________________________

               

              Print
                Name:______________________________

            

    

    

    

    
      
        
        

      

      
        7Unassociated Document

    
      Exhibit
        10.1

      
        	 
	 
	
                REVOLVING
                  CREDIT

              
	 
	
                AND

              
	 
	
                SECURITY
                  AGREEMENT

              
	 
	 
	 
	
                PNC
                  BANK, NATIONAL ASSOCIATION

              
	
                (AS
                  LENDER AND AS AGENT)

              
	 
	 
	 
	
                WITH

              
	 
	 
	 
	
                BCI
                  COMMUNICATIONS, INC.

              
	
                (BORROWER)

              
	 
	 
	 
	
                April
                  17, 2008

              
	 
	 

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    TABLE
      OF CONTENTS

     

    
      
        	
                I

              	
                DEFINITIONS.

              	
                1

              
	 	
                1.1.

              	
                Accounting
                  Terms.

              	
                1

              
	 	
                1.2.

              	
                General
                  Terms.

              	
                1

              
	 	
                1.3.

              	
                Uniform
                  Commercial Code Terms.

              	
                20

              
	 	
                1.4.

              	
                Certain
                  Matters of Construction.

              	
                21

              
	 	 	 	 
	
                II

              	
                ADVANCES,
                  PAYMENTS.

              	
                22

              
	 	
                2.1.

              	
                Revolving
                  Advances.

              	
                22

              
	 	
                2.2.

              	
                Procedure
                  for Revolving Advances Borrowing.

              	
                22

              
	 	
                2.3.

              	
                Disbursement
                  of Advance Proceeds.

              	
                24

              
	 	
                2.4.

              	
                Maximum
                  Advances.

              	
                25

              
	 	
                2.5.

              	
                Repayment
                  of Advances.

              	
                25

              
	 	
                2.6.

              	
                Repayment
                  of Excess Advances.

              	
                25

              
	 	
                2.7.

              	
                Statement
                  of Account.

              	
                26

              
	 	
                2.8.

              	
                Letters
                  of Credit.

              	
                26

              
	 	
                2.9.

              	
                Issuance
                  of Letters of Credit.

              	
                26

              
	 	
                2.10.

              	
                Requirements
                  For Issuance of Letters of Credit.

              	
                27

              
	 	
                2.11.

              	
                Disbursements,
                  Reimbursement.

              	
                27

              
	 	
                2.12.

              	
                Repayment
                  of Participation Advances.

              	
                29

              
	 	
                2.13.

              	
                Documentation.

              	
                29

              
	 	
                2.14.

              	
                Determination
                  to Honor Drawing Request.

              	
                29

              
	 	
                2.15.

              	
                Nature
                  of Participation and Reimbursement Obligations.

              	
                29

              
	 	
                2.16.

              	
                Indemnity.

              	
                31

              
	 	
                2.17.

              	
                Liability
                  for Acts and Omissions.

              	
                31

              
	 	
                2.18.

              	
                Additional
                  Payments.

              	
                32

              
	 	
                2.19.

              	
                Manner
                  of Borrowing and Payment.

              	
                32

              
	 	
                2.20.

              	
                Mandatory
                  Prepayments.

              	
                34

              
	 	
                2.21.

              	
                Use
                  of Proceeds.

              	
                34

              
	 	
                2.22.

              	
                Defaulting
                  Lender.

              	
                35

              
	 	 	 	 
	
                III

              	
                INTEREST
                  AND FEES.

              	
                36

              
	 	
                3.1.

              	
                Interest.

              	
                36

              
	 	
                3.2.

              	
                Letter
                  of Credit Fees.

              	
                36

              
	 	
                3.3.

              	
                Closing
                  Fee and Facility Fee.

              	
                37

              
	 	
                3.4.

              	
                Collateral
                  Evaluation Fee, Collateral Monitoring Fee and Fee Letter.

              	
                37

              
	 	
                3.5.

              	
                Computation
                  of Interest and Fees.

              	
                38

              
	 	
                3.6.

              	
                Maximum
                  Charges.

              	
                38

              
	 	
                3.7.

              	
                Increased
                  Costs.

              	
                38

              
	 	
                3.8.

              	
                Basis
                  For Determining Interest Rate Inadequate or Unfair.

              	
                39

              
	 	
                3.9.

              	
                Capital
                  Adequacy.

              	
                39

              
	 	
                3.10.

              	
                Gross
                  Up for Taxes.

              	
                40

              
	 	
                3.11.

              	
                Withholding
                  Tax Exemption.

              	
                40

              
	 	 	 	 
	
                IV

              	
                COLLATERAL:
                  GENERAL TERMS

              	
                41

              
	 	
                4.1.

              	
                Security
                  Interest in the Collateral.

              	
                41

              
	 	
                4.2.

              	
                Perfection
                  of Security Interest.

              	
                41

              

      

       

      
        
          i

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                4.3.

              	
                Disposition
                  of Collateral.

              	
                42

              
	 	
                4.4.

              	
                Preservation
                  of Collateral.

              	
                42

              
	 	
                4.5.

              	
                Ownership
                  of Collateral.

              	
                42

              
	 	
                4.6.

              	
                Defense
                  of Agent’s and Lenders’ Interests.

              	
                43

              
	 	
                4.7.

              	
                Books
                  and Records.

              	
                43

              
	 	
                4.8.

              	
                Financial
                  Disclosure.

              	
                44

              
	 	
                4.9.

              	
                Compliance
                  with Laws.

              	
                44

              
	 	
                4.10.

              	
                Inspection
                  of Premises.

              	
                44

              
	 	
                4.11.

              	
                Insurance.

              	
                44

              
	 	
                4.12.

              	
                Failure
                  to Pay Insurance.

              	
                45

              
	 	
                4.13.

              	
                Payment
                  of Taxes.

              	
                45

              
	 	
                4.14.

              	
                Payment
                  of Leasehold Obligations.

              	
                46

              
	 	
                4.15.

              	
                Receivables.

              	
                46

              
	 	
                4.16.

              	
                Inventory.

              	
                48

              
	 	
                4.17.

              	
                Maintenance
                  of Equipment.

              	
                48

              
	 	
                4.18.

              	
                Exculpation
                  of Liability.

              	
                48

              
	 	
                4.19.

              	
                Environmental
                  Matters.

              	
                48

              
	 	
                4.20.

              	
                Financing
                  Statements.

              	
                51

              
	 	 	 	 
	
                V

              	
                REPRESENTATIONS
                  AND WARRANTIES.

              	
                51

              
	 	
                5.1.

              	
                Authority.

              	
                51

              
	 	
                5.2.

              	
                Formation
                  and Qualification.

              	
                51

              
	 	
                5.3.

              	
                Survival
                  of Representations and Warranties.

              	
                51

              
	 	
                5.4.

              	
                Tax
                  Returns.

              	
                52

              
	 	
                5.5.

              	
                Financial
                  Statements.

              	
                52

              
	 	
                5.6.

              	
                Entity
                  Name.

              	
                52

              
	 	
                5.7.

              	
                O.S.H.A.
                  and Environmental Compliance.

              	
                52

              
	 	
                5.8.

              	
                Solvency;
                  No Litigation, Violation, Indebtedness or Default.

              	
                53

              
	 	
                5.9.

              	
                Patents,
                  Trademarks, Copyrights and Licenses.

              	
                54

              
	 	
                5.10.

              	
                Licenses
                  and Permits.

              	
                54

              
	 	
                5.11.

              	
                Default
                  of Indebtedness.

              	
                55

              
	 	
                5.12.

              	
                No
                  Default.

              	
                55

              
	 	
                5.13.

              	
                No
                  Burdensome Restrictions.

              	
                55

              
	 	
                5.14.

              	
                No
                  Labor Disputes.

              	
                55

              
	 	
                5.15.

              	
                Margin
                  Regulations.

              	
                55

              
	 	
                5.16.

              	
                Investment
                  Company Act.

              	
                55

              
	 	
                5.17.

              	
                Disclosure.

              	
                55

              
	 	
                5.18.

              	
                Delivery
                  of Subordinated Loan Documentation.

              	
                55

              
	 	
                5.19.

              	
                Swaps.

              	
                56

              
	 	
                5.20.

              	
                Conflicting
                  Agreements.

              	
                56

              
	 	
                5.21.

              	
                Application
                  of Certain Laws and Regulations.

              	
                56

              
	 	
                5.22.

              	
                Business
                  and Property of Borrower.

              	
                56

              
	 	
                5.23.

              	
                Section
                  20 Subsidiaries.

              	
                56

              
	 	
                5.24.

              	
                Anti-Terrorism
                  Laws.

              	
                56

              
	 	
                5.25.

              	
                Trading
                  with the Enemy.

              	
                57

              
	 	
                5.26.

              	
                Federal
                  Securities Laws.

              	
                57

              

      

       

      
        
          ii

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                VI

              	
                AFFIRMATIVE
                  COVENANTS.

              	
                57

              
	 	
                6.1.

              	
                Payment
                  of Fees.

              	
                57

              
	 	
                6.2.

              	
                Conduct
                  of Business and Maintenance of Existence and Assets.

              	
                57

              
	 	
                6.3.

              	
                Violations.

              	
                58

              
	 	
                6.4.

              	
                Government
                  Receivables.

              	
                58

              
	 	
                6.5.

              	
                Financial
                  Covenants.

              	
                58

              
	 	
                6.6.

              	
                Execution
                  of Supplemental Instruments.

              	
                58

              
	 	
                6.7.

              	
                Payment
                  of Indebtedness.

              	
                58

              
	 	
                6.8.

              	
                Standards
                  of Financial Statements.

              	
                58

              
	 	
                6.9.

              	
                Federal
                  Securities Laws.

              	
                59

              
	 	 	 	 
	
                VII

              	
                NEGATIVE
                  COVENANTS.

              	
                59

              
	 	
                7.1.

              	
                Merger,
                  Consolidation, Acquisition and Sale of Assets.

              	
                59

              
	 	
                7.2.

              	
                Creation
                  of Liens.

              	
                60

              
	 	
                7.3.

              	
                Guarantees.

              	
                60

              
	 	
                7.4.

              	
                Investments.

              	
                60

              
	 	
                7.5.

              	
                Loans.

              	
                60

              
	 	
                7.6.

              	
                Capital
                  Expenditures.

              	
                60

              
	 	
                7.7.

              	
                Dividends.

              	
                60

              
	 	
                7.8.

              	
                Indebtedness.

              	
                60

              
	 	
                7.9.

              	
                Nature
                  of Business.

              	
                61

              
	 	
                7.10.

              	
                Transactions
                  with Affiliates.

              	
                61

              
	 	
                7.11.

              	
                Leases.

              	
                61

              
	 	
                7.12.

              	
                Subsidiaries.

              	
                61

              
	 	
                7.13.

              	
                Fiscal
                  Year and Accounting Changes.

              	
                61

              
	 	
                7.14.

              	
                Pledge
                  of Credit.

              	
                61

              
	 	
                7.15.

              	
                Amendment
                  of Articles of Incorporation, By-Laws.

              	
                61

              
	 	
                7.16.

              	
                Compliance
                  with ERISA.

              	
                61

              
	 	
                7.17.

              	
                Prepayment
                  of Indebtedness.

              	
                62

              
	 	
                7.18.

              	
                Anti-Terrorism
                  Laws.

              	
                62

              
	 	
                7.19.

              	
                Membership/Partnership
                  Interests.

              	
                62

              
	 	
                7.20.

              	
                Trading
                  with the Enemy Act.

              	
                63

              
	 	
                7.21.

              	
                Subordinated
                  Note.

              	
                63

              
	 	
                7.22.

              	
                Other
                  Agreements.

              	
                63

              
	 	 	 	 
	
                VIII

              	
                CONDITIONS
                  PRECEDENT.

              	
                63

              
	 	
                8.1.

              	
                Conditions
                  to Initial Advances.

              	
                63

              
	 	
                8.2.

              	
                Conditions
                  to Each Advance.

              	
                68

              
	 	 	 	 
	
                IX

              	
                INFORMATION
                  AS TO BORROWERS.

              	
                68

              
	 	
                9.1.

              	
                Disclosure
                  of Material Matters.

              	
                68

              
	 	
                9.2.

              	
                Schedules.

              	
                68

              
	 	
                9.3.

              	
                Environmental
                  Reports.

              	
                69

              
	 	
                9.4.

              	
                Litigation.

              	
                69

              
	 	
                9.5.

              	
                Material
                  Occurrences.

              	
                69

              
	 	
                9.6.

              	
                Government
                  Receivables.

              	
                69

              
	 	
                9.7.

              	
                Annual
                  Financial Statements.

              	
                70

              
	 	
                9.8.

              	
                Quarterly
                  Financial Statements.

              	
                70

              
	 	
                9.9.

              	
                Monthly
                  Financial Statements.

              	
                70

              

      

       

      
        
          iii

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                9.10.

              	
                Other
                  Reports.

              	
                70

              
	 	
                9.11.

              	
                Additional
                  Information.

              	
                70

              
	 	
                9.12.

              	
                Projected
                  Operating Budget.

              	
                71

              
	 	
                9.13.

              	
                Variances
                  From Operating Budget.

              	
                71

              
	 	
                9.14.

              	
                Notice
                  of Suits, Adverse Events.

              	
                71

              
	 	
                9.15.

              	
                ERISA
                  Notices and Requests.

              	
                71

              
	 	
                9.16.

              	
                Additional
                  Documents.

              	
                72

              
	 	 	 	 
	
                X

              	
                EVENTS
                  OF DEFAULT.

              	
                72

              
	 	
                10.1.

              	
                Nonpayment.

              	
                72

              
	 	
                10.2.

              	
                Breach
                  of Representation.

              	
                72

              
	 	
                10.3.

              	
                Financial
                  Information.

              	
                72

              
	 	
                10.4.

              	
                Judicial
                  Actions.

              	
                72

              
	 	
                10.5.

              	
                Noncompliance.

              	
                72

              
	 	
                10.6.

              	
                Judgments.

              	
                73

              
	 	
                10.7.

              	
                Bankruptcy.

              	
                73

              
	 	
                10.8.

              	
                Inability
                  to Pay.

              	
                73

              
	 	
                10.9.

              	
                Affiliate
                  Bankruptcy.

              	
                73

              
	 	
                10.10.

              	
                Material
                  Adverse Effect.

              	
                73

              
	 	
                10.11.

              	
                Lien
                  Priority.

              	
                73

              
	 	
                10.12.

              	
                Subordinated
                  Loan Default and Default regarding J&J Leasing
                  Indebtedness.

              	
                73

              
	 	
                10.13.

              	
                Cross
                  Default.

              	
                73

              
	 	
                10.14.

              	
                Breach
                  of Guaranty.

              	
                74

              
	 	
                10.15.

              	
                Change
                  of Ownership.

              	
                74

              
	 	
                10.16.

              	
                Invalidity.

              	
                74

              
	 	
                10.17.

              	
                Licenses.

              	
                74

              
	 	
                10.18.

              	
                Seizures.

              	
                74

              
	 	
                10.19.

              	
                Pension
                  Plans.

              	
                74

              
	 	
                10.20.

              	
                Franchise
                  Tax Searches.

              	
                74

              
	 	 	 	 
	
                XI

              	
                LENDERS’
                  RIGHTS AND REMEDIES AFTER DEFAULT.

              	
                75

              
	 	
                11.1.

              	
                Rights
                  and Remedies.

              	
                75

              
	 	
                11.2.

              	
                Agent’s
                  Discretion.

              	
                76

              
	 	
                11.3.

              	
                Setoff.

              	
                76

              
	 	
                11.4.

              	
                Rights
                  and Remedies not Exclusive.

              	
                76

              
	 	
                11.5.

              	
                Allocation
                  of Payments After Event of Default.

              	
                77

              
	 	 	 	 
	
                XII

              	
                WAIVERS
                  AND JUDICIAL PROCEEDINGS.

              	
                77

              
	 	
                12.1.

              	
                Waiver
                  of Notice.

              	
                77

              
	 	
                12.2.

              	
                Delay.

              	
                78

              
	 	
                12.3.

              	
                Jury
                  Waiver.

              	
                78

              
	 	 	 	 
	
                XIII

              	
                EFFECTIVE
                  DATE AND TERMINATION.

              	
                78

              
	 	
                13.1.

              	
                Term.

              	
                78

              
	 	
                13.2.

              	
                Termination.

              	
                78

              
	 	 	 	 
	
                XIV

              	
                REGARDING
                  AGENT.

              	
                79

              
	 	
                14.1.

              	
                Appointment.

              	
                79

              
	 	
                14.2.

              	
                Nature
                  of Duties.

              	
                79

              

      

       

      
        
          iv

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	 	
                14.3.

              	
                Lack
                  of Reliance on Agent and Resignation.

              	
                80

              
	 	
                14.4.

              	
                Certain
                  Rights of Agent.

              	
                80

              
	 	
                14.5.

              	
                Reliance.

              	
                80

              
	 	
                14.6.

              	
                Notice
                  of Default.

              	
                81

              
	 	
                14.7.

              	
                Indemnification.

              	
                81

              
	 	
                14.8.

              	
                Agent
                  in its Individual Capacity.

              	
                81

              
	 	
                14.9.

              	
                Delivery
                  of Documents.

              	
                81

              
	 	
                14.10.

              	
                Borrower’s
                  Undertaking to Agent.

              	
                81

              
	 	
                14.11.

              	
                No
                  Reliance on Agent’s Customer Identification Program.

              	
                82

              
	 	
                14.12.

              	
                Other
                  Agreements.

              	
                82

              
	 	 	 	 
	
                XV

              	
                MISCELLANEOUS.

              	
                82

              
	 	
                15.1.

              	
                Governing
                  Law.

              	
                82

              
	 	
                15.2.

              	
                Entire
                  Understanding.

              	
                83

              
	 	
                15.3.

              	
                Successors
                  and Assigns; Participations; New Lenders.

              	
                85

              
	 	
                15.4.

              	
                Application
                  of Payments.

              	
                87

              
	 	
                15.5.

              	
                Indemnity.

              	
                87

              
	 	
                15.6.

              	
                Notice.

              	
                88

              
	 	
                15.7.

              	
                Survival.

              	
                90

              
	 	
                15.8.

              	
                Severability.

              	
                90

              
	 	
                15.9.

              	
                Expenses.

              	
                90

              
	 	
                15.10.

              	
                Injunctive
                  Relief.

              	
                90

              
	 	
                15.11.

              	
                Damages.

              	
                91

              
	 	
                15.12.

              	
                Captions.

              	
                91

              
	 	
                15.13.

              	
                Counterparts;
                  Facsimile Signatures.

              	
                91

              
	 	
                15.14.

              	
                Construction.

              	
                91

              
	 	
                15.15.

              	
                Confidentiality;
                  Sharing Information.

              	
                91

              
	 	
                15.16.

              	
                Publicity.

              	
                92

              
	 	
                15.17.

              	
                Certifications
                  From Banks and Participants; US PATRIOT Act.

              	
                92

              

      

    

     

    
      
        v

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    REVOLVING
      CREDIT

    AND

    SECURITY
      AGREEMENT

     

    Revolving
      Credit and Security Agreement dated April 17, 2008 by and among BCI
      COMMUNICATIONS, INC., a corporation organized under the laws of the State of
      Delaware (“Borrower”),
      the
      financial institutions which are now or which hereafter become a party hereto
      (collectively, the “Lenders” and individually a “Lender”)
      and
      PNC BANK, NATIONAL ASSOCIATION (“PNC”),
      as
      agent for Lenders (PNC, in such capacity, the “Agent”).

     

    IN
      CONSIDERATION of the mutual covenants and undertakings herein contained,
      Borrower, Lenders and Agent hereby agree as follows:

     

    I DEFINITIONS.

     

    1.1. Accounting
      Terms.
      As
      used
      in this Agreement, the Other Documents or any certificate, report or other
      document made or delivered pursuant to this Agreement, accounting terms not
      defined in Section 1.2 or elsewhere in this Agreement and accounting terms
      partly defined in Section 1.2 to the extent not defined, shall have the
      respective meanings given to them under GAAP; provided, however, whenever such
      accounting terms are used for the purposes of determining compliance with
      financial covenants in this Agreement, such accounting terms shall be defined
      in
      accordance with GAAP as applied in preparation of the audited financial
      statements of Borrower for the fiscal year ended June 30, 2007.

     

    1.2. General
      Terms. For
      purposes of this Agreement the following terms shall have the following
      meanings:

     

    “Accountants”
shall
      have the meaning set forth in Section 9.7 hereof.

     

    “Advance
      Rates”
shall
      mean the Receivables Advance Rate.

     

    “Advances”
shall
      mean and include the Revolving Advances and Letters of Credit.

     

    “Affiliate”
of
      any
      Person shall mean (a) any Person which, directly or indirectly, is in control
      of, is controlled by, or is under common control with such Person, or (b) any
      Person who is a director, managing member, general partner or officer (i) of
      such Person, (ii) of any Subsidiary of such Person or (iii) of any Person
      described in clause (a) above. For purposes of this definition, control of
      a
      Person shall mean the power, direct or indirect, (x) to vote 5% or more of
      the
      Equity Interests having ordinary voting power for the election of directors
      of
      such Person or other Persons performing similar functions for any such Person,
      or (y) to direct or cause the direction of the management and policies of such
      Person whether by ownership of Equity Interests, contract or
      otherwise.

     

    “Agent”
shall
      have the meaning set forth in the preamble to this Agreement and shall include
      its successors and assigns.

     

    “Agreement”
shall
      mean this Revolving Credit and Security Agreement, as the same may be amended,
      restated, supplemented or otherwise modified from time to time.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    “Alternate
      Base Rate”
shall
      mean, for any day, a rate per annum equal to the higher of (i) the Base Rate
      in
      effect on such day and (ii) the Federal Funds Open Rate in effect on such day
      plus 1/2 of 1%.

     

    “Anti-Terrorism
      Laws”
shall
      mean any Applicable Laws relating to terrorism or money laundering, including
      Executive Order No. 13224, the USA PATRIOT Act, the Applicable Laws comprising
      or implementing the Bank Secrecy Act, and the Applicable Laws administered
      by
      the United States Treasury Department’s Office of Foreign Asset Control (as any
      of the foregoing Applicable Laws may from time to time be amended, renewed,
      extended, or replaced).

     

    “Applicable
      Law”
shall
      mean all laws, rules and regulations applicable to the Person, conduct,
      transaction, covenant, Other Document or contract in question, including all
      applicable common law and equitable principles; all provisions of all applicable
      state, federal and foreign constitutions, statutes, rules, regulations and
      orders of any Governmental Body, and all orders, judgments and decrees of all
      courts and arbitrators.

     

    “Authority”
shall
      have the meaning set forth in Section 4.19(d).

     

    “Base
      Rate”
shall
      mean the base commercial lending rate of PNC as publicly announced to be in
      effect from time to time, such rate to be adjusted automatically, without
      notice, on the effective date of any change in such rate. This rate of interest
      is determined from time to time by PNC as a means of pricing some loans to
      its
      customers and is neither tied to any external rate of interest or index nor
      does
      it necessarily reflect the lowest rate of interest actually charged by PNC
      to
      any particular class or category of customers of PNC.

     

    “Berliner”
shall
      mean Berliner Communications, Inc., a corporation of the State of
      Delaware.

     

    “Blocked
      Accounts”
shall
      have the meaning set forth in Section 4.15(h).

     

    “Blocked
      Account Bank”
shall
      have the meaning set forth in Section 4.15(h). 

     

    “Blocked
      Person”
shall
      have the meaning set forth in Section 5.24(b) hereof.

     

    “Borrower”
shall
      have the meaning set forth in the preamble to this Agreement and shall extend
      to
      all permitted successors and assigns of such Person.

     

    “Borrower’s
      Account”
shall
      have the meaning set forth in Section 2.7.

     

    “Borrowing
      Base Certificate”
shall
      mean a certificate in substantially the form of Exhibit 1.2 duly executed by
      the
      President, Chief Financial Officer or Controller of the Borrower and delivered
      to the Agent, appropriately completed, by which such officer shall certify
      to
      Agent the Formula Amount and calculation thereof as of the date of such
      certificate.

     

    “Business
      Day”
shall
      mean any day other than Saturday or Sunday or a legal holiday on which
      commercial banks are authorized or required by law to be closed for business
      in
      East Brunswick, New Jersey and, if the applicable Business Day relates to any
      Eurodollar Rate Loans, such day must also be a day on which dealings are carried
      on in the London interbank market.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Capital
      Expenditures”
shall
      mean expenditures made or liabilities incurred for the acquisition of any fixed
      assets or improvements, replacements, substitutions or additions thereto which
      have a useful life of more than one year, including the total principal portion
      of Capitalized Lease Obligations, which, in accordance with GAAP, would be
      classified as capital expenditures.

     

    “Capitalized
      Lease Obligation”
shall
      mean any Indebtedness of Borrower represented by obligations under a lease
      that
      is required to be capitalized for financial reporting purposes in accordance
      with GAAP.

     

    “CERCLA”
shall
      mean the Comprehensive Environmental Response, Compensation and Liability Act
      of
      1980, as amended, 42 U.S.C. §§9601 et seq.

     

    “Change
      of Control”
shall
      mean (a) the occurrence of any event (whether in one or more transactions)
      which
      results in a transfer of control of Borrower to a Person who is not an Original
      Owner or (b) any merger or consolidation of or with Borrower or sale of all
      or
      substantially all of the property or assets of Borrower. For purposes of this
      definition, “control of Borrower” shall mean the power, direct or indirect (x)
      to vote 50% or more of the Equity Interests having ordinary voting power for
      the
      election of directors (or the individuals performing similar functions) of
      Borrower or (y) to direct or cause the direction of the management and policies
      of Borrower by contract or otherwise.

     

    “Change
      of Ownership”
shall
      mean (a) 50% or more of the Equity Interests of Borrower is no longer owned
      or controlled by (including for the purposes of the calculation of percentage
      ownership, any Equity Interests into which any Equity Interests of Borrower
      held
      by any of the Original Owners are convertible or for which any such Equity
      Interests of Borrower or of any other Person may be exchanged and any Equity
      Interests issuable to such Original Owners upon exercise of any warrants,
      options or similar rights which may at the time of calculation be held by such
      Original Owners) a Person who is an Original Owner or (b) any merger,
      consolidation or sale of substantially all of the property or assets of
      Borrower.

     

    “Charges”
shall
      mean all taxes, charges, fees, imposts, levies or other assessments, including
      all net income, gross income, gross receipts, sales, use, ad valorem, value
      added, transfer, franchise, profits, inventory, capital stock, license,
      withholding, payroll, employment, social security, unemployment, excise,
      severance, stamp, occupation and property taxes, custom duties, fees,
      assessments, liens, claims and charges of any kind whatsoever, together with
      any
      interest and any penalties, additions to tax or additional amounts, imposed
      by
      any taxing or other authority, domestic or foreign (including the Pension
      Benefit Guaranty Corporation or any environmental agency or superfund), upon
      the
      Collateral, Borrower or any of its Affiliates.

     

    “Closing
      Date”
shall
      mean April 17, 2008 or such other date as may be agreed to by the parties
      hereto.

     

    “Code”
shall
      mean the Internal Revenue Code of 1986, as the same may be amended or
      supplemented from time to time, and any successor statute of similar import,
      and
      the rules and regulations thereunder, as from time to time in
      effect.

     

    “Collateral”
shall
      mean and include:

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (a) all
      Receivables;

     

    (b) all
      Equipment;

     

    (c) all
      General Intangibles;

     

    (d) all
      Inventory;

     

    (e) all
      Investment Property;

     

    (f) all
      Real
      Property, specifically, excluding, however, the Texas Premises;

     

    (g) all
      Subsidiary Stock;

     

    (h) the
      Leasehold Interests;

     

    (i) all
      of
      Borrower’s right, title and interest in and to, whether now owned or hereafter
      acquired and wherever located, (i) its respective goods and other property
      including, but not limited to, all merchandise returned or rejected by
      Customers, relating to or securing any of the Receivables; (ii) all of
      Borrower’s rights as a consignor, a consignee, an unpaid vendor, mechanic,
      artisan, or other lienor, including stoppage in transit, setoff, detinue,
      replevin, reclamation and repurchase; (iii) all additional amounts due to
      Borrower from any Customer relating to the Receivables; (iv) other
      property, including warranty claims, relating to any goods securing the
      Obligations; (v) all of Borrower’s contract rights, rights of payment which have
      been earned under a contract right, instruments (including promissory notes),
      documents, chattel paper (including electronic chattel paper), warehouse
      receipts, deposit accounts, letters of credit and money; (vi) all commercial
      tort claims (whether now existing or hereafter arising); (vii) if and when
      obtained by Borrower, all real and personal property of third parties in which
      Borrower has been granted a lien or security interest as security for the
      payment or enforcement of Receivables; (viii) all letter of credit rights
      (whether or not the respective letter of credit is evidenced by a writing);
      (ix)
      all supporting obligations; and (x) any other goods, personal property or
      real property now owned or hereafter acquired in which Borrower has expressly
      granted a security interest or may in the future grant a security interest
      to
      Agent hereunder, or in any amendment or supplement hereto or thereto, or under
      any other agreement between Agent and Borrower;

     

    (j) all
      of
      Borrower’s ledger sheets, ledger cards, files, correspondence, records, books of
      account, business papers, computers, computer software (owned by Borrower or
      in
      which it has an interest), computer programs, tapes, disks and documents
      relating to (a), (b), (c), (d), (e), (f), (g), (h) or (i) of this Paragraph;
      and

     

    (k) all
      proceeds and products of (a), (b), (c), (d), (e), (f), (g), (h), (i) and (j)
      in
      whatever form, including, but not limited to: cash, deposit accounts (whether
      or
      not comprised solely of proceeds), certificates of deposit, insurance proceeds
      (including hazard, flood and credit insurance), negotiable instruments and
      other
      instruments for the payment of money, chattel paper, security agreements,
      documents, eminent domain proceeds, condemnation proceeds and tort claim
      proceeds.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Commitment
      Percentage”
of
      any
      Lender shall mean the percentage set forth below such Lender’s name on the
      signature page hereof as same may be adjusted upon any assignment by a Lender
      pursuant to Section 15.3(c) or (d) hereof.

     

    “Commitment
      Transfer Supplement”
shall
      mean a document in the form of Exhibit 15.3 hereto, properly completed and
      otherwise in form and substance satisfactory to Agent by which the Purchasing
      Lender purchases and assumes a portion of the obligation of Lenders to make
      Advances under this Agreement.

     

    “Compliance
      Certificate”
shall
      mean a compliance certificate to be signed by the Chief Financial Officer or
      Controller of Borrower, which shall state that, based on an examination
      sufficient to permit such officer to make an informed statement, no Default
      or
      Event of Default exists, or if such is not the case, specifying such Default
      or
      Event of Default, its nature, when it occurred, whether it is continuing and
      the
      steps being taken by Borrower with respect to such default and, such certificate
      shall have appended thereto calculations which set forth Borrower’s compliance
      with the requirements or restrictions imposed by Sections 6.5, 7.4, 7.5, 7.6,
      7.7, 7.8 and 7.11.

     

    “Consents”
shall
      mean all filings and all licenses, permits, consents, approvals, authorizations,
      qualifications and orders of Governmental Bodies and other third parties,
      domestic or foreign, necessary to carry on Borrower’s business or necessary
      (including to avoid a conflict or breach under any agreement, instrument, other
      document, license, permit or other authorization) for the execution, delivery
      or
      performance of this Agreement, the Other Documents or the Subordinated Loan
      Documentation, including any Consents required under all applicable federal,
      state or other Applicable Law.

     

    “Contract
      Rate”
shall
      mean, as applicable, the Revolving Interest Rate.

     

    “Controlled
      Group”
shall
      mean, at any time, the Borrower and all members of a controlled group of
      corporations and all trades or businesses (whether or not incorporated) under
      common control and all other entities which, together with Borrower, are treated
      as a single employer under Section 414 of the Code.

     

    “Customer”
shall
      mean and include the account debtor with respect to any Receivable and/or the
      prospective purchaser of goods, services or both with respect to any contract
      or
      contract right, and/or any party who enters into or proposes to enter into
      any
      contract or other arrangement with Borrower, pursuant to which Borrower is
      to
      deliver any personal property or perform any services.

     

    “Customs”
shall
      have the meaning set forth in Section 2.10(b) hereof.

     

    “Default”
shall
      mean an event, circumstance or condition which, with the giving of notice or
      passage of time or both, would constitute an Event of Default.

     

    “Default
      Rate”
shall
      have the meaning set forth in Section 3.1 hereof.

     

    “Defaulting
      Lender”
shall
      have the meaning set forth in Section 2.22(a) hereof.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Depository
      Accounts”
shall
      have the meaning set forth in Section 4.15(h) hereof.

     

    “Documents”
shall
      have the meaning set forth in Section 8.1(c) hereof.

     

    “Dollar”
and
      the
      sign “$”
shall
      mean lawful money of the United States of America.

     

    “Domestic
      Rate Loan”
shall
      mean any Advance that bears interest based upon the Alternate Base
      Rate.

     

    “Drawing
      Date”
shall
      have the meaning set forth in Section 2.11(b) hereof.

     

    “Early
      Termination Date”
shall
      have the meaning set forth in Section 13.1 hereof.

     

    “Earnings
      Before Interest and Taxes”
shall
      mean for any period the sum of (i) net income (or loss) of Borrower for such
      period (excluding extraordinary gains and losses), plus (ii) all interest
      expense of Borrower for such period, plus (iii) all charges against income
      of
      Borrower for provision for federal, state and local taxes for such
      period.

     

    “EBITDA”
shall
      mean for any period the sum of (i) Earnings Before Interest and Taxes for such
      period plus (ii) depreciation expenses for such period, plus (iii) amortization
      expenses for such period.

     

    “Eligible
      Receivables”
shall
      mean and include with respect to Borrower, each Receivable of Borrower arising
      in the Ordinary Course of Business and which Agent, in its sole and reasonable
      credit judgment, shall deem to be an Eligible Receivable, based on such
      considerations as Agent may from time to time deem appropriate. A Receivable
      shall not be deemed eligible unless such Receivable is subject to Agent’s first
      priority perfected security interest and no other Lien (other than Permitted
      Encumbrances), and is evidenced by an invoice or other documentary evidence
      satisfactory to Agent. In addition, no Receivable shall be an Eligible
      Receivable if:

     

    (a) it
      arises
      out of a sale made by Borrower to an Affiliate of Borrower or to a Person
      controlled by an Affiliate of Borrower;

     

    (b) it
      is
      unpaid more than either (i) ninety (90) days after the original due date or
      (ii)
      due or unpaid one hundred twenty (120) days after the original invoice
      date;

     

    (c) fifty
      percent (50%) or more of the Receivables from such Customer are not deemed
      Eligible Receivables hereunder. Such percentage may, in Agent’s sole discretion,
      be increased or decreased from time to time;

     

    (d) any
      covenant, representation or warranty contained in this Agreement with respect
      to
      such Receivable has been breached;

     

    (e) the
      Customer shall (i) apply for, suffer, or consent to the appointment of, or
      the
      taking of possession by, a receiver, custodian, trustee or liquidator of itself
      or of all or a substantial part of its property or call a meeting of its
      creditors, (ii) admit in writing its inability, or be generally unable, to
      pay
      its debts as they become due or cease operations of its present business, (iii)
      make a general assignment for the benefit of creditors, (iv) commence a
      voluntary case under any state or federal bankruptcy laws (as now or hereafter
      in effect), (v) be adjudicated a bankrupt or insolvent, (vi) file a petition
      seeking to take advantage of any other law providing for the relief of debtors,
      (vii) acquiesce to, or fail to have dismissed, any petition which is filed
      against it in any involuntary case under such bankruptcy laws, or (viii) take
      any action for the purpose of effecting any of the foregoing;

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (f) the
      sale
      is to a Customer outside the continental United States of America, unless the
      sale is on letter of credit, guaranty or acceptance terms, in each case
      acceptable to Agent in its sole and reasonable discretion;

     

    (g) the
      sale
      to the Customer is on a bill-and-hold, guaranteed sale, sale-and-return, sale
      on
      approval, consignment or any other repurchase or return basis or is evidenced
      by
      chattel paper;

     

    (h) Agent
      believes, in its sole and reasonable judgment, that collection of such
      Receivable is insecure or that such Receivable may not be paid by reason of
      the
      Customer’s financial inability to pay;

     

    (i) the
      Customer is the United States of America, any state or any department, agency
      or
      instrumentality of any of them, unless Borrower assigns its right to payment
      of
      such Receivable to Agent pursuant to the Assignment of Claims Act of 1940,
      as
      amended (31 U.S.C. Sub-Section 3727 et seq. and 41 U.S.C. Sub-Section 15 et
      seq.) or has otherwise complied with other applicable statutes or
      ordinances;

     

    (j) the
      goods
      giving rise to such Receivable have not been delivered to and accepted by the
      Customer or the services giving rise to such Receivable have not been performed
      by Borrower and accepted by the Customer or the Receivable otherwise does not
      represent a final sale;

     

    (k) the
      Receivable is subject to any offset, deduction, defense, dispute, or
      counterclaim, the Customer is also a creditor or supplier of Borrower or the
      Receivable is contingent in any respect or for any reason;

     

    (l) Borrower
      has made any agreement with any Customer for any deduction therefrom, except
      for
      discounts or allowances made in the Ordinary Course of Business for prompt
      payment, all of which discounts or allowances are reflected in the calculation
      of the face value of each respective invoice related thereto;

     

    (m) any
      return, rejection or repossession of the merchandise has occurred or the
      rendition of services has been disputed;

     

    (n) such
      Receivable is not payable to Borrower; or

     

    (o) such
      Receivable is not otherwise satisfactory to Agent as determined in good faith
      by
      Agent in the exercise of its discretion in a reasonable manner.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “Eligible
      Unbilled Receivables”
shall
      mean and include with respect to Borrower, each Receivable of Borrower relating
      to completed jobs (as identified with specific job numbers by Borrower on the
      monthly gross margin report identified in Section 9.2(ii)(d)) and arising in
      the
      Ordinary Course of Business which would be deemed an Eligible Receivable except
      for the fact that such Receivable has not been billed to the Customer by the
      Borrower provided,
      however,
      such
      Receivable is not aged more than thirty one (31) days from the last day of
      the
      month during which such Receivable was generated.

     

    “Eligible
      Unbilled Receivables Sublimit”
shall
      mean $6,500,000.

     

    “Eligible
      Work-In-Process Receivables”
shall
      mean and include with respect to Borrower, each Receivable of Borrower arising
      in the Ordinary Course of Business which would be deemed an Eligible Receivable
      except for the fact that the goods giving rise to such Receivable have not
      been
      completely delivered to and accepted by the Customer or the services giving
      rise
      to such Receivable have not been fully completed by Borrower and accepted by
      the
      Customer or the Receivable otherwise does not represent a final sale
provided,
      however,
      that
      the Agent receives a written authorization from each such Customer with regard
      to such work-in-process billing in form and substance acceptable to the
      Agent.

     

    “Eligible Work-In-Process
      Receivables Sublimit”
shall
      mean $3,000,000.

     

    “Environmental
      Complaint”
shall
      have the meaning set forth in Section 4.19(d) hereof.

     

    “Environmental
      Laws”
shall
      mean all federal, state and local environmental, land use, zoning, health,
      chemical use, safety and sanitation laws, statutes, ordinances and codes
      relating to the protection of the environment and/or governing the use, storage,
      treatment, generation, transportation, processing, handling, production or
      disposal of Hazardous Substances and the rules, regulations, policies,
      guidelines, interpretations, decisions, orders and directives of federal, state
      and local governmental agencies and authorities with respect
      thereto.

     

    “Equipment”
shall
      mean and include all of Borrower’s goods (other than Inventory) whether now
      owned or hereafter acquired and wherever located including all equipment,
      machinery, apparatus, fittings, furniture, furnishings, fixtures, parts,
      accessories and all replacements and substitutions therefor or accessions
      thereto.

     

    “Equity
      Interests”
of
      any
      Person shall mean any and all shares, rights to purchase, options, warrants,
      general, limited or limited liability partnership interests, member interests,
      participation or other equivalents of or interest in (regardless of how
      designated) equity of such Person, whether voting or nonvoting, including common
      stock, preferred stock, convertible securities or any other “equity security”
(as such term is defined in Rule 3a11-1 of the General Rules and Regulations
      promulgated by the SEC under the Exchange Act).

     

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

     

    “Eurodollar
      Rate”
shall
      mean for any Eurodollar Rate Loan for the then current Interest Period relating
      thereto the interest rate per annum determined by Agent by dividing (the
      resulting quotient rounded upwards, if necessary, to the nearest 1/100th of
      1%
      per annum) (i) the rate which appears on the Bloomberg page BBAM1 (or on such
      other substitute Bloomberg page that displays rates at which U.S. dollar
      deposits are offered by leading banks in the London interbank deposit market),
      or the rate which is quoted by another source selected by the Agent which has
      been approved by the British Bankers’ Association as an authorized information
      vendor for the purpose of displaying rates at which U.S. dollar deposits are
      offered by leading banks in the London interbank deposit market (an “Alternate
      Source”), at approximately 11:00 a.m., London time, two (2) Business Days prior
      to the commencement of such Interest Period as the London interbank offered
      rate
      for U.S. dollars for an amount comparable to such Eurodollar Rate Loan and
      having a borrowing date and a maturity comparable to such Interest Period (or
      if
      there shall at any time, for any reason, no longer exist a Bloomberg page BBAM1
      (or any substitute page) or any Alternate Source, a comparable replacement
      rate
      determined by the Agent at such time (which determination shall be conclusive
      absent manifest error), by (ii) a number equal to 1.00 minus the Reserve
      Percentage. The Eurodollar Rate may also be expressed by the following
      formula:

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    Average
      of London interbank offered rates quoted by Bloomberg or
      appropriate

    successor
      as shown on Bloomberg page BBAM1

    Eurodollar
      Rate = 1.00 - Reserve Percentage.

     

    The
      Eurodollar Rate shall be adjusted with respect to any Eurodollar Rate Loan
      that
      is outstanding on the effective date of any change in the Reserve Percentage
      as
      of such effective date. The Agent shall give prompt notice to the Borrower
      of
      the Eurodollar Rate as determined or adjusted in accordance herewith, which
      determination shall be conclusive absent manifest error.

     

    “Eurodollar
      Rate Loan”
shall
      mean an Advance at any time that bears interest based on the Eurodollar
      Rate.

     

    “Event
      of Default”
shall
      have the meaning set forth in Article X hereof.

     

    “Exchange
      Act”
shall
      have the mean the Securities Exchange Act of 1934, as amended.

     

    “Executive
      Order No. 13224”
shall
      mean the Executive Order No. 13224 on Terrorist Financing, effective September
      24, 2001, as the same has been, or shall hereafter be, renewed, extended,
      amended or replaced.

     

    “Federal
      Funds Effective Rate”
for
      any
      day shall mean the rate per annum (based on a year of 360 days and actual days
      elapsed and rounded upward to the nearest 1/100 of 1%) announced by the Federal
      Reserve Bank of New York (or any successor) on such day as being the weighted
      average of the rates on overnight federal funds transactions arranged by federal
      funds brokers on the previous trading day, as computed and announced by such
      Federal Reserve Bank (or any successor) in substantially the same manner as
      such
      Federal Reserve Bank computes and announces the weighted average it refers
      to as
      the "Federal Funds Effective Rate" as of the date of this Agreement; provided,
      if such Federal Reserve Bank (or its successor) does not announce such rate
      on
      any day, the "Federal Funds Effective Rate" for such day shall be the Federal
      Funds Effective Rate for the last day on which such rate was
      announced.

     

    “Federal
      Funds Open Rate”
shall
      mean the rate per annum determined by the Agent in accordance with its usual
      procedures (which determination shall be conclusive absent manifest error)
      to be
      the "open" rate for federal funds transactions as of the opening of business
      for
      federal funds transactions among members of the Federal Reserve System arranged
      by federal funds brokers on such day, as quoted by Garvin Guybutler Corporation,
      any successor entity thereto, or any other broker selected by the Agent, as
      set
      forth on the applicable Telerate display page; provided, however; that if such
      day is not a Business Day, the Federal Funds Open Rate for such day shall be
      the
      "open" rate on the immediately preceding Business Day, or if no such rate shall
      be quoted by a Federal funds broker at such time, such other rate as determined
      by the Agent in accordance with its usual procedures.

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    “Fixed
      Charge Coverage Ratio”
shall
      mean and include, with respect to any fiscal period, the ratio of (a) EBITDA
      minus unfinanced Capitalized Expenditures made during such period minus cash
      taxes paid during such period to (b) the aggregate amount of all principal
      and
      interest payments due and/or made with regard to all Funded Debt of the Borrower
      during such period minus all principal payments due and/or made with regard
      to
      the Subordinated Loan Documentation during such period.

     

    “Foreign
      Subsidiary”
of
      any
      Person, shall mean any Subsidiary of such Person that is not organized or
      incorporated in the United States or any State or territory
      thereof.

     

    “Formula
      Amount”
shall
      have the meaning set forth in Section 2.1(a).

     

    “Funded
      Debt”
shall
      mean, with respect to any Person, without duplication, all Indebtedness for
      borrowed money evidenced by notes, bonds, debentures, or similar evidences
      of
      Indebtedness that by its terms matures more than one year from, or is directly
      or indirectly renewable or extendible at such Person’s option under a revolving
      credit or similar agreement obligating the lender or lenders to extend credit
      over a period of more than one year from the date of creation thereof, and
      specifically including Capitalized Lease Obligations, current maturities of
      long-term debt, revolving credit and short-term debt extendible beyond one
      year
      at the option of the debtor, and also including, in the case of Borrower, the
      Obligations and, without duplication, Indebtedness consisting of guaranties
      of
      Funded Debt of other Persons.

     

    “GAAP”
shall
      mean generally accepted accounting principles in the United States of America
      in
      effect from time to time.

     

    “General
      Intangibles”
shall
      mean and include all of Borrower’s general intangibles, whether now owned or
      hereafter acquired, including all payment intangibles, all choses in action,
      causes of action, corporate or other business records, inventions, designs,
      patents, patent applications, equipment formulations, manufacturing procedures,
      quality control procedures, trademarks, trademark applications, service marks,
      trade secrets, goodwill, copyrights, design rights, software, computer
      information, source codes, codes, records and updates, registrations, licenses,
      franchises, customer lists, tax refunds, tax refund claims, computer programs,
      all claims under guaranties, security interests or other security held by or
      granted to Borrower to secure payment of any of the Receivables by a Customer
      (other than to the extent covered by Receivables) all rights of indemnification
      and all other intangible property of every kind and nature (other than
      Receivables).

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    “Governmental
      Acts”
shall
      have the meaning set forth in Section 2.16.

     

    “Governmental
      Body”
shall
      mean any nation or government, any state or other political subdivision thereof
      or any entity, authority, agency, division or department exercising the
      legislative, judicial, regulatory or administrative functions of or pertaining
      to a government.

     

    “Guarantor”
shall
      mean Berliner and any other Person who may hereafter guarantee payment or
      performance of the whole or any part of the Obligations and “Guarantors” means
      collectively all such Persons.

     

    “Guaranty”
shall
      mean any guaranty of the obligations of Borrower executed by a Guarantor in
      favor of Agent for its benefit and for the ratable benefit of
      Lenders.

     

    “Hazardous
      Discharge”
shall
      have the meaning set forth in Section 4.19(d) hereof.

     

    “Hazardous
      Substance”
shall
      mean, without limitation, any flammable explosives, radon, radioactive
      materials, asbestos, urea formaldehyde foam insulation, polychlorinated
      biphenyls, petroleum and petroleum products, methane, hazardous materials,
      Hazardous Wastes, hazardous or Toxic Substances or related materials as defined
      in CERCLA, the Hazardous Materials Transportation Act, as amended (49 U.S.C.
      Sections 1801, et seq.), RCRA, Articles 15 and 27 of the New York State
      Environmental Conservation Law or any other applicable Environmental Law and
      in
      the regulations adopted pursuant thereto.

     

    “Hazardous
      Wastes”
shall
      mean all waste materials subject to regulation under CERCLA, RCRA or applicable
      state law, and any other applicable Federal and state laws now in force or
      hereafter enacted relating to hazardous waste disposal.

     

    “Hedge
      Liabilities”
shall
      have the meaning provided in the definition of “Lender-Provided Interest Rate
      Hedge”.

     

    “Indebtedness”
of
      a
      Person at a particular date shall mean all obligations of such Person which
      in
      accordance with GAAP would be classified upon a balance sheet as liabilities
      (except capital stock and surplus earned or otherwise) and in any event, without
      limitation by reason of enumeration, shall include all indebtedness, debt and
      other similar monetary obligations of such Person whether direct or guaranteed,
      and all premiums, if any, due at the required prepayment dates of such
      indebtedness, and all indebtedness secured by a Lien on assets owned by such
      Person, whether or not such indebtedness actually shall have been created,
      assumed or incurred by such Person. Any indebtedness of such Person resulting
      from the acquisition by such Person of any assets subject to any Lien shall
      be
      deemed, for the purposes hereof, to be the equivalent of the creation,
      assumption and incurring of the indebtedness secured thereby, whether or not
      actually so created, assumed or incurred.

     

    “Ineligible
      Security”
shall
      mean any security which may not be underwritten or dealt in by member banks
      of
      the Federal Reserve System under Section 16 of the Banking Act of 1933 (12
      U.S.C. Section 24, Seventh), as amended.

     

    “Intellectual
      Property”
shall
      mean property constituting under any Applicable Law a patent, patent
      application, copyright, trademark, service mark, trade name, mask work, trade
      secret or license or other right to use any of the foregoing.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    “Intellectual
      Property Claim”
shall
      mean the assertion by any Person of a claim (whether asserted in writing, by
      action, suit or proceeding or otherwise) that Borrower's ownership, use,
      marketing, sale or distribution of any Inventory, Equipment, Intellectual
      Property or other property or asset is violative of any ownership of or right
      to
      use any Intellectual Property of such Person.

     

    “Interest
      Period”
shall
      mean the period provided for any Eurodollar Rate Loan pursuant to Section
      2.2(b).

     

    “Interest
      Rate Hedge”
shall
      mean an interest rate exchange, collar, cap, swap, adjustable strike cap,
      adjustable strike corridor or similar agreements entered into by the Borrower
      or
      its Subsidiaries in order to provide protection to, or minimize the impact
      upon,
      the Borrower, any Guarantor and/or their respective Subsidiaries of increasing
      floating rates of interest applicable to Indebtedness.

     

    “Inventory”
shall
      mean and include all of Borrower’s now owned or hereafter acquired goods,
      merchandise and other personal property, wherever located, to be furnished
      under
      any consignment arrangement, contract of service or held for sale or lease,
      all
      raw materials, work in process, finished goods and materials and supplies of
      any
      kind, nature or description which are or might be used or consumed in Borrower’s
      business or used in selling or furnishing such goods, merchandise and other
      personal property, and all documents of title or other documents representing
      them.

     

    “Investment
      Property”
shall
      mean and include all of Borrower’s now owned or hereafter acquired securities
      (whether certificated or uncertificated), securities entitlements, securities
      accounts, commodities contracts and commodities accounts.

     

    “Issuer”
shall
      mean any Person who issues a Letter of Credit and/or accepts a draft pursuant
      to
      the terms hereof.

     

    “J&J
      Leasing Indebtedness”
shall
      mean the Borrower’s Indebtedness to J&J Leasing Partnership as evidenced by
      that certain Limited Recourse Promissory Note in the original principal amount
      of $1,750,000 dated February 28, 2007 and secured by a certain Deed of Trust
      dated February 28, 2007 encumbering the Texas Premises, as such documentation
      may be amended, restated, replaced, modified and/or substituted from time to
      time.

     

    “Leasehold
      Interests”
shall
      mean all of Borrower’s right, title and interest in and to the premises
      identified on Schedule 4.19 hereto.

     

    “Lender”
and
      “Lenders”
shall
      have the meaning ascribed to such term in the preamble to this Agreement and
      shall include each Person which becomes a transferee, successor or assign of
      any
      Lender.

     

    “Lender-Provided
      Interest Rate Hedge”
shall
      mean an Interest Rate Hedge which is provided by any Lender and with respect
      to
      which the Agent confirms meets the following requirements: such Interest Rate
      Hedge (i) is documented in a standard International Swap Dealer Association
      Agreement, (ii) provides for the method of calculating the reimbursable amount
      of the provider's credit exposure in a reasonable and customary manner, and
      (iii) is entered into for hedging (rather than speculative) purposes. The
      liabilities of the Borrower to the provider of any Lender-Provided Interest
      Rate
      Hedge (the “Hedge Liabilities”) shall be “Obligations” hereunder, guaranteed
      obligations under the Guaranty and otherwise treated as Obligations for purposes
      of each of the Other Documents. The Liens securing the Hedge Liabilities shall
      be pari passu with the Liens securing all other Obligations under this Agreement
      and the Other Documents.

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    “Letter
      of Credit Fees”
shall
      have the meaning set forth in Section 3.2.

     

    “Letter
      of Credit Borrowing”
shall
      have the meaning set forth in Section 2.11(d).

     

    “Letter
      of Credit Sublimit”
shall
      mean $1,000,000.

     

    “Letters
      of Credit”
shall
      have the meaning set forth in Section 2.8.

     

    “License
      Agreement”
shall
      mean any agreement between Borrower and a Licensor pursuant to which Borrower
      is
      authorized to use any Intellectual Property in connection with the
      manufacturing, marketing, sale or other distribution of any Inventory of
      Borrower or otherwise in connection with Borrower's business
      operations.

     

    “Licensor”
shall
      mean any Person from whom Borrower obtains the right to use (whether on an
      exclusive or non-exclusive basis) any Intellectual Property in connection with
      Borrower's manufacture, marketing, sale or other distribution of any Inventory
      or otherwise in connection with Borrower's business operations.

     

    “Lien”
shall
      mean any mortgage, deed of trust, pledge, hypothecation, assignment, security
      interest, lien (whether statutory or otherwise), Charge, claim or encumbrance,
      or preference, priority or other security agreement or preferential arrangement
      held or asserted in respect of any asset of any kind or nature whatsoever
      including any conditional sale or other title retention agreement, any lease
      having substantially the same economic effect as any of the foregoing, and
      the
      filing of, or agreement to give, any financing statement under the Uniform
      Commercial Code or comparable law of any jurisdiction.

     

    “Lien
      Waiver Agreement”
shall
      mean an agreement which is executed in favor of Agent by a Person who owns
      or
      occupies premises at Borrower’s chief executive office pursuant to Section
      4.15(b) and by which such Person shall waive or subordinate any Lien that such
      Person may ever have with respect to any of the Collateral and shall authorize
      Agent from time to time to enter upon the premises to inspect or remove the
      Collateral from such premises or to use such premises to store or dispose of
      such Collateral.

     

    “Material
      Adverse Effect”
shall
      mean a material adverse effect on (a) the condition (financial or otherwise),
      results of operations, assets, business, properties or prospects of Borrower
      or
      any Guarantor, (b) Borrower’s ability to duly and punctually pay or perform the
      Obligations in accordance with the terms thereof, (c) the value of the
      Collateral, or Agent’s Liens on the Collateral or the priority of any such Lien
      or (d) the practical realization of the benefits of Agent’s and each Lender’s
      rights and remedies under this Agreement and the Other Documents.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    “Maximum
      Face Amount”
shall
      mean, with respect to any outstanding Letter of Credit, the face amount of
      such
      Letter of Credit including all automatic increases provided for in such Letter
      of Credit, whether or not any such automatic increase has become
      effective.

     

    “Maximum
      Loan Amount”
shall
      mean $15,000,000.

     

    “Maximum
      Revolving Advance Amount”
shall
      mean $15,000,000.

     

    “Maximum
      Undrawn Amount”
shall
      mean with respect to any outstanding Letter of Credit, the amount of such Letter
      of Credit that is or may become available to be drawn, including all automatic
      increases provided for in such Letter of Credit, whether or not any such
      automatic increase has become effective.

     

    “Modified
      Commitment Transfer Supplement”
shall
      have the meaning set forth in Section 15.3(d).

     

    “Multiemployer
      Plan”
shall
      mean a “multiemployer plan” as defined in Sections 3(37) and 4001(a)(3) of
      ERISA.

     

    “Multiple
      Employer Plan”
shall
      mean a Plan which has two or more contributing sponsors (including the Borrower
      or any member of the Controlled Group) at least two of whom are not under common
      control, as such a plan is described in Section 4064 of ERISA.

     

    “Note”
shall
      mean the Revolving Credit Note.

     

    “Obligations”
shall
      mean and include any and all loans, advances, debts, liabilities, obligations,
      covenants and duties owing by the Borrower to Lenders or Agent or to any other
      direct or indirect subsidiary or affiliate of Agent or any Lender of any kind
      or
      nature, present or future (including any interest or other amounts accruing
      thereon after maturity, or after the filing of any petition in bankruptcy,
      or
      the commencement of any insolvency, reorganization or like proceeding relating
      to the Borrower, whether or not a claim for post-filing or post-petition
      interest or other amounts is allowed in such proceeding), whether or not
      evidenced by any note, guaranty or other instrument, whether arising under
      any
      agreement, instrument or document, (including this Agreement and the Other
      Documents) whether or not for the payment of money, whether arising by reason
      of
      an extension of credit, opening of a letter of credit, loan, equipment lease
      or
      guarantee, under any interest or currency swap, future, option or other similar
      agreement, or in any other manner, whether arising out of overdrafts or deposit
      or other accounts or electronic funds transfers (whether through automated
      clearing houses or otherwise) or out of the Agent’s or any Lenders non-receipt
      of or inability to collect funds or otherwise not being made whole in connection
      with depository transfer check or other similar arrangements, whether direct
      or
      indirect (including those acquired by assignment or participation), absolute
      or
      contingent, joint or several, due or to become due, now existing or hereafter
      arising, contractual or tortious, liquidated or unliquidated, regardless of
      how
      such indebtedness or liabilities arise or by what agreement or instrument they
      may be evidenced or whether evidenced by any agreement or instrument, including,
      but not limited to, any and all of Borrower’s Indebtedness and/or liabilities
      under this Agreement, the Other Documents or under any other agreement between
      Agent or Lenders and Borrower and any amendments, extensions, renewals or
      increases and all costs and expenses of Agent and any Lender incurred in the
      documentation, negotiation, modification, enforcement, collection or otherwise
      in connection with any of the foregoing, including but not limited to reasonable
      attorneys’ fees and expenses and all obligations of Borrower to Agent or Lenders
      to perform acts or refrain from taking any action.

     

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    “Ordinary
      Course of Business”
shall
      mean the ordinary course of Borrower’s business as conducted on the Closing
      Date.

     

    “Original
      Owners”
shall
      mean Berliner.

     

    “Other
      Documents”
shall
      mean the Note, any Guaranty, the Subordinated Loan Documentation, any
      Lender-Provided Interest Rate Hedge and any and all other agreements,
      instruments and documents, including guaranties, pledges, powers of attorney,
      consents, interest or currency swap agreements or other similar agreements
      and
      all other writings heretofore, now or hereafter executed by Borrower or any
      Guarantor and/or delivered to Agent or any Lender in respect of the transactions
      contemplated by this Agreement.

     

    “Out-of-Formula
      Loans”
shall
      have the meaning set forth in Section 15.2(b).

     

    “Parent”
of
      any
      Person shall mean a corporation or other entity owning, directly or indirectly
      at least 50% of the shares of stock or other ownership interests having ordinary
      voting power to elect a majority of the directors of the Person, or other
      Persons performing similar functions for any such Person.

     

    “Participant”
shall
      mean each Person who shall be granted the right by any Lender to participate
      in
      any of the Advances and who shall have entered into a participation agreement
      in
      form and substance satisfactory to such Lender.

     

    “Participation
      Advance”
shall
      have the meaning set forth in Section 2.11(d).

     

    “Participation
      Commitment”
shall
      mean each Lender’s obligation to buy a participation of the Letters of Credit
      issued hereunder.

     

    “Payment
      Office”
shall
      mean initially Two Tower Center Boulevard, East Brunswick, New Jersey 08816;
      thereafter, such other office of Agent, if any, which it may designate by notice
      to Borrower and to each Lender to be the Payment Office.

     

    “PBGC”
shall
      mean the Pension Benefit Guaranty Corporation established pursuant to Subtitle
      A
      of Title IV of ERISA or any successor.

     

    “Pension
      Benefit Plan”
shall
      mean at any time any employee pension benefit plan (including a Multiple
      Employer Plan, but not a Multiemployer Plan) which is covered by Title IV of
      ERISA or is subject to the minimum funding standards under Section 412 of the
      Code and either (i) is maintained by any member of the Controlled Group for
      employees of any member of the Controlled Group; or (ii) has at any time within
      the preceding five years been maintained by any entity which was at such time
      a
      member of the Controlled Group for employees of any entity which was at such
      time a member of the Controlled Group.

     

    “Permitted
      Encumbrances”
shall
      mean (a) Liens in favor of Agent for the benefit of Agent and Lenders; (b)
      Liens
      for taxes, assessments or other governmental charges not delinquent or being
      contested in good faith and by appropriate proceedings and with respect to
      which
      proper reserves have been taken by Borrower; provided, that, the Lien shall
      have
      no effect on the priority of the Liens in favor of Agent or the value of the
      assets in which Agent has such a Lien and a stay of enforcement of any such
      Lien
      shall be in effect; (c) Liens disclosed in the financial statements referred
      to
      in Section 5.5, the existence of which Agent has consented to in writing; (d)
      deposits or pledges to secure obligations under worker’s compensation, social
      security or similar laws, or under unemployment insurance; (e) deposits or
      pledges to secure bids, tenders, contracts (other than contracts for the payment
      of money), leases, statutory obligations, surety and appeal bonds and other
      obligations of like nature arising in the Ordinary Course of Business; (f)
      Liens
      arising by virtue of the rendition, entry or issuance against Borrower or any
      Subsidiary, or any property of Borrower or any Subsidiary, of any judgment,
      writ, order, or decree for so long as each such Lien (a) is in existence for
      less than 20 consecutive days after it first arises or is being Properly
      Contested and (b) is at all times junior in priority to any Liens in favor
      of
      Agent; (g) mechanics’, workers’, materialmen’s or other like Liens arising in
      the Ordinary Course of Business with respect to obligations which are not due
      or
      which are being contested in good faith by Borrower; (h) Liens placed upon
      fixed
      assets hereafter acquired to secure a portion of the purchase price thereof,
      provided that (x) any such lien shall not encumber any other property of
      Borrower and (y) the aggregate amount of Indebtedness secured by such Liens
      incurred as a result of such purchases during any fiscal year shall not exceed
      the amount provided for in Section 7.6; (i) other Liens incidental to the
      conduct of Borrower’s business or the ownership of its property and assets which
      were not incurred in connection with the borrowing of money or the obtaining
      of
      advances or credit, and which do not in the aggregate materially detract from
      Agent’s or Lenders’ rights in and to the Collateral or the value of Borrower’s
      property or assets or which do not materially impair the use thereof in the
      operation of Borrower’s business; (j) Liens encumbering the Texas Premises with
      regard to the J&J Leasing Indebtedness; (k) Liens with regard to the
      Subordinated Loan Documentation; and (l) Liens disclosed on Schedule
      1.2.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    “Person”
shall
      mean any individual, sole proprietorship, partnership, corporation, business
      trust, joint stock company, trust, unincorporated organization, association,
      limited liability company, limited liability partnership, institution, public
      benefit corporation, joint venture, entity or Governmental Body (whether
      federal, state, county, city, municipal or otherwise, including any
      instrumentality, division, agency, body or department thereof).

     

    “Plan”
shall
      mean any employee benefit plan within the meaning of Section 3(3) of ERISA
      (including a Pension Benefit Plan), maintained for employees of Borrower or
      any
      member of the Controlled Group or any such Plan to which Borrower or any member
      of the Controlled Group is required to contribute on behalf of any of its
      employees.

     

    “PNC”
shall
      have the meaning set forth in the preamble to this Agreement and shall extend
      to
      all of its successors and assigns.

     

    “Properly
      Contested”
shall
      mean, in the case of any Indebtedness of any Person (including any taxes) that
      is not paid as and when due or payable by reason of such Person’s bona fide
      dispute concerning its liability to pay same or concerning the amount thereof,
      (i) such Indebtedness is being properly contested in good faith by appropriate
      proceedings promptly instituted and diligently conducted; (ii) such Person
      has
      established appropriate reserves as shall be required in conformity with GAAP;
      (iii) the non-payment of such Indebtedness will not have a Material Adverse
      Effect and will not result in the forfeiture of any assets of such Person;
      (iv)
      no Lien is imposed upon any of such Person’s assets with respect to such
      Indebtedness unless such Lien is at all times junior and subordinate in priority
      to the Liens in favor of the Agent (except only with respect to property taxes
      that have priority as a matter of applicable state law) and enforcement of
      such
      Lien is stayed during the period prior to the final resolution or disposition
      of
      such dispute; (v) if such Indebtedness results from, or is determined by the
      entry, rendition or issuance against a Person or any of its assets of a
      judgment, writ, order or decree, enforcement of such judgment, writ, order
      or
      decree is stayed pending a timely appeal or other judicial review; and (vi)
      if
      such contest is abandoned, settled or determined adversely (in whole or in
      part)
      to such Person, such Person forthwith pays such Indebtedness and all penalties,
      interest and other amounts due in connection therewith.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    “Purchasing
      CLO”
shall
      have the meaning set forth in Section 15.3(d) hereof.

     

    “Purchasing
      Lender”
shall
      have the meaning set forth in Section 15.3(c) hereof.

     

    “RCRA”
shall
      mean the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., as
      same may be amended from time to time.

     

    “Real
      Property”
shall
      mean all of Borrower’s right, title and interest in and to the owned and leased
      premises identified on Schedule 4.19 hereto.

     

    “Receivables”
shall
      mean and include, as to Borrower, all of Borrower’s accounts, contract rights,
      instruments (including those evidencing indebtedness owed to Borrower by its
      Affiliates), documents, chattel paper (including electronic chattel paper),
      general intangibles relating to accounts, drafts and acceptances, credit card
      receivables and all other forms of obligations owing to Borrower arising out
      of
      or in connection with the sale or lease of Inventory or the rendition of
      services, all supporting obligations, guarantees and other security therefor,
      whether secured or unsecured, now existing or hereafter created, and whether
      or
      not specifically sold or assigned to Agent hereunder.

     

    “Receivables
      Advance Rate”
shall
      have the meaning set forth in Section 2.1(a)(y)(i) hereof.

     

    “Register”
shall
      have the meaning set forth in Section 15.3(e).

     

    “Reimbursement
      Obligation”
shall
      have the meaning set forth in Section 2.11(b)hereof.

     

    “Rent
      Reserve”
shall
      mean a reserve in an amount equal to three month’s rent relating to Borrower’s
      chief executive office as set forth in Section 4.15(b) as such amount may change
      from time to time at the reasonable discretion of the Agent.

     

    “Release”
shall
      have the meaning set forth in Section 5.7(c)(i) hereof.

     

    “Reportable
      Event”
shall
      mean a reportable event described in Section 4043(c) of ERISA or the regulations
      promulgated thereunder.

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    “Required
      Lenders”
shall
      mean Lenders holding at least fifty one percent (51%) of the Advances and,
      if no
      Advances are outstanding, shall mean Lenders holding fifty one percent (51%)
      of
      the Commitment Percentages; provided, however, if there are fewer than three
      (3)
      Lenders, Required Lenders shall mean all Lenders.

     

    “Reserve
      Percentage”
shall
      mean as of any day the maximum percentage in effect on such day as prescribed
      by
      the Board of Governors of the Federal Reserve System (or any successor) for
      determining the reserve requirements (including supplemental, marginal and
      emergency reserve requirements) with respect to eurocurrency funding (currently
      referred to as “Eurocurrency Liabilities”.

     

    “Revolving
      Advances”
shall
      mean Advances made other than Letters of Credit.

     

    “Revolving
      Credit Note”
shall
      mean the promissory note referred to in Section 2.1(a) hereof.

     

    “Revolving
      Interest Rate”
shall
      mean an interest rate per annum equal to (a) the sum of the Alternate Base
      Rate
      plus zero percent (0.00%)with respect to Domestic Rate Loans and (b) the sum
      of
      the Eurodollar Rate plus two percent (2.00%) with respect to Eurodollar Rate
      Loans.

     

    “Sales
      Tax Reserve”
shall
      mean a reserve in the amount of $700,000 which reserve shall terminate and
      be
      released upon delivery to the Agent of documentation acceptable to the Agent
      indicating either a favorable final determination of the sales tax assessment
      or
      payment of the sales tax assessment currently being asserted against the
      Borrower by the State of New Jersey.

     

    “SEC”
shall
      mean the Securities and Exchange Commission or any successor
      thereto.

     

    “Section
      20 Subsidiary”
shall
      mean the Subsidiary of the bank holding company controlling PNC, which
      Subsidiary has been granted authority by the Federal Reserve Board to underwrite
      and deal in certain Ineligible Securities.

     

    “Securities
      Act”
shall
      mean the Securities Act of 1933, as amended.

     

    “Senior
      Debt Payments”
shall
      mean and include all cash actually expended by Borrower to make (a) interest
      payments on any Advances hereunder, plus (b) payments for all fees, commissions
      and charges set forth herein and with respect to any Advances, plus (c)
      capitalized lease payments, plus (d) payments with respect to any other
      Indebtedness for borrowed money.

     

    “Settlement
      Date”
shall
      mean the Closing Date and thereafter Wednesday or Thursday of each week or
      more
      frequently if Agent deems appropriate unless such day is not a Business Day
      in
      which case it shall be the next succeeding Business Day.

     

    “Subordinated
      Debt Payments”
shall
      mean and include all cash actually expended to make payments of principal and
      interest on the Subordinated Note.

     

    “Subordinated
      Indebtedness Reserve”
shall
      mean a reserve in the amount of (i) $1,000,000 as of the Closing Date through
      and including July 17 , 2008, (ii) $2,000,000 from July 17 , 2008 through and
      including October 17 , 2008 and (iii) $3,000,000 as of October 17 , 2008 and
      thereafter, as such amount may change from time to time at the discretion of
      the
      Agent.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    “Subordinated
      Lender”
shall
      mean, collectively, Sigma Opportunity Fund, LLC, Sigma Berliner, LLC, Operis
      Partners I, LLC and Pacific Asset Partners.

     

    “Subordinated
      Loan”
shall
      mean the loan evidenced by the Subordinated Note.

     

    “Subordinated
      Loan Documentation”
shall
      mean, collectively, the Subordinated Note, the Subordination Agreement and
      all
      other documentation executed in connection therewith.

     

    “Subordinated
      Note”
shall
      mean, collectively, that certain 7% Senior Subordinated Secured Convertible
      Note
      due on December 29, 2008, in the original principal amount of $3,000,000, issued
      by Borrower on December 29, 2006 in favor of Sigma Opportunity Fund, LLC; that
      certain 7% Senior Subordinated Secured Convertible Note due on December 29,
      2008
      in the original principal amount of $1,000,000 issued by Borrower on February
      2,
      2007 in favor of Pacific Asset Partners; that certain 7% Senior Subordinated
      Secured Convertible Note due on December 29, 2008 in the original principal
      amount of $1,500,000 issued by Borrower on February 15, 2007 in favor of Sigma
      Berliner, LLC; and that certain 7% Senior Subordinated Secured Convertible
      Note
      due on December 29, 2008 in the original principal amount of $500,000 issued
      by
      Borrower on February 2, 2007 in favor of Operis Partners I, LLC.

     

    “Subordination
      Agreement”
shall
      mean that certain Intercreditor and Subordination Agreement dated the date
      hereof by and among Agent, Borrower and Subordinated Lender.

     

    “Subsidiary”
of
      any
      Person shall mean a corporation or other entity of whose Equity Interests having
      ordinary voting power (other than Equity 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 such Person.

     

    “Subsidiary
      Stock”
shall
      mean all of the issued and outstanding Equity Interests of any Subsidiary owned
      by the Borrower (not to exceed 65% of the Equity Interests of any Foreign
      Subsidiary).

     

    “Term”
shall
      have the meaning set forth in Section 13.1 hereof.

     

    “Termination
      Date”
shall
      mean April 17, 2011 or such other date as the Lenders may agree in writing
      to
      extend the Termination Date until, without there being any obligation on the
      part of the Lenders to extend the Termination Date.

     

    “Termination
      Event”
shall
      mean (i) a Reportable Event with respect to any Plan or Multiemployer Plan;
      (ii)
      the withdrawal of Borrower or any member of the Controlled Group from a Plan
      or
      Multiemployer Plan during a plan year in which such entity was a “substantial
      employer” as defined in Section 4001(a)(2) of ERISA; (iii) the providing of
      notice of intent to terminate a Plan in a distress termination described in
      Section 4041(c) of ERISA; (iv) the institution by the PBGC of proceedings to
      terminate a Plan or Multiemployer Plan; (v) any event or condition (a) which
      might constitute grounds under Section 4042 of ERISA for the termination of,
      or
      the appointment of a trustee to administer, any Plan or Multiemployer Plan,
      or
      (b) that may result in termination of a Multiemployer Plan pursuant to Section
      4041A of ERISA; or (vi) the partial or complete withdrawal within the meaning
      of
      Sections 4203 and 4205 of ERISA, of Borrower or any member of the Controlled
      Group from a Multiemployer Plan.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    “Texas
      Premises”
shall
      mean the real property known as all of Block 10-R, Arlington Heights Addition,
      in addition to the City of Arlington, Tarrant County, Texas, according to the
      Plat recorded in Volume 388-48, Page 66, Plat Records of Tarrant County, Texas,
      in the E. Daggett Survey, A-430.

     

    “Toxic
      Substance”
shall
      mean and include any material present on the Real Property or the Leasehold
      Interests which has been shown to have significant adverse effect on human
      health or which is subject to regulation under the Toxic Substances Control
      Act
      (TSCA), 15 U.S.C. §§ 2601 et seq., applicable state law, or any other applicable
      Federal or state laws now in force or hereafter enacted relating to toxic
      substances. “Toxic Substance” includes but is not limited to asbestos,
      polychlorinated biphenyls (PCBs) and lead-based paints.

     

    “Trading
      with the Enemy Act”
shall
      mean the foreign assets control regulations of the United States Treasury
      Department (31 CFR, Subtitle B, Chapter V, as amended) and any enabling
      legislation or executive order relating thereto.

     

    “Transactions”
shall
      mean the transaction evidenced by this Agreement and the Other
      Documents.

     

    “Transferee”
shall
      have the meaning set forth in Section 15.3(d) hereof.

     

    “Undrawn
      Availability”
at
      a
      particular date shall mean an amount equal to (a) the lesser of (i) the Formula
      Amount or (ii) the Maximum Revolving Advance Amount, minus (b) the sum of (i)
      the outstanding amount of Advances plus (ii) all amounts due and owing to
      Borrower’s trade creditors which are outstanding beyond normal trade terms ,
      plus (iii) fees and expenses for which Borrower is liable but which have not
      been paid or charged to Borrower’s Account.

     

    “Uniform
      Commercial Code”
shall
      have the meaning set forth in Section 1.3 hereof.

     

    “USA
      PATRIOT Act”
shall
      mean the Uniting and Strengthening America by Providing Appropriate Tools
      Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56,
      as
      the same has been, or shall hereafter be, renewed, extended, amended or
      replaced.

     

    “Week”
shall
      mean the time period commencing with the opening of business on a Wednesday
      and
      ending on the end of business the following Tuesday.

     

    1.3. Uniform
      Commercial Code Terms.
      All
      terms
      used herein and defined in the Uniform Commercial Code as adopted in the State
      of New Jersey from time to time (the “Uniform Commercial Code”) shall have the
      meaning given therein unless otherwise defined herein. Without limiting the
      foregoing, the terms “accounts”, “chattel paper”, “instruments”, “general
      intangibles”, “payment intangibles”, “supporting obligations”, “securities”,
“investment property”, “documents”, “deposit accounts”, “software”, “letter of
      credit rights”, “inventory”, “equipment” and “fixtures”, as and when used in the
      description of Collateral shall have the meanings given to such terms in
      Articles 8 or 9 of the Uniform Commercial Code. To the extent the definition
      of
      any category or type of collateral is expanded by any amendment, modification
      or
      revision to the Uniform Commercial Code, such expanded definition will apply
      automatically as of the date of such amendment, modification or
      revision.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    1.4. Certain
      Matters of Construction.
      The
      terms
“herein”, “hereof” and “hereunder” and other words of similar import refer to
      this Agreement as a whole and not to any particular section, paragraph or
      subdivision. All references herein to Articles, Sections, Exhibits and Schedules
      shall be construed to refer to Articles and Sections of, and Exhibits and
      Schedules to, this Agreement. Any pronoun used shall be deemed to cover all
      genders. Wherever appropriate in the context, terms used herein in the singular
      also include the plural and vice versa. All references to statutes and related
      regulations shall include any amendments of same and any successor statutes
      and
      regulations. Unless otherwise provided, all references to any instruments or
      agreements to which Agent is a party, including references to any of the Other
      Documents, shall include any and all modifications or amendments thereto and
      any
      and all extensions or renewals thereof. All references herein to the time of
      day
      shall mean the time in New York, New York. Unless otherwise provided, all
      financial calculations shall be performed with Inventory valued on a first-in,
      first-out basis. Whenever the words “including” or “include” shall be used, such
      words shall be understood to mean “including, without limitation” or “include,
      without limitation”. A Default or Event of Default shall be deemed to exist at
      all times during the period commencing on the date that such Default or Event
      of
      Default occurs to the date on which such Default or Event of Default is waived
      in writing pursuant to this Agreement or, in the case of a Default, is cured
      within any period of cure expressly provided for in this Agreement; and an
      Event
      of Default shall “continue” or be “continuing” until such Event of Default has
      been waived in writing by the Required Lenders. Any Lien referred to in this
      Agreement or any of the Other Documents as having been created in favor of
      Agent, any agreement entered into by Agent pursuant to this Agreement or any
      of
      the Other Documents, any payment made by or to or funds received by Agent
      pursuant to or as contemplated by this Agreement or any of the Other Documents,
      or any act taken or omitted to be taken by Agent, shall, unless otherwise
      expressly provided, be created, entered into, made or received, or taken or
      omitted, for the benefit or account of Agent and Lenders. Wherever the phrase
      “to the best of Borrower’s knowledge” or words of similar import relating to the
      knowledge or the awareness of Borrower are used in this Agreement or Other
      Documents, such phrase shall mean and refer to (i) the actual knowledge of
      a
      senior officer of Borrower or (ii) the knowledge that a senior officer would
      have obtained if he had engaged in good faith and diligent performance of his
      duties, including the making of such reasonably specific inquiries as may be
      necessary of the employees or agents of Borrower and a good faith attempt to
      ascertain the existence or accuracy of the matter to which such phrase relates.
      All covenants hereunder shall be given independent effect so that if a
      particular action or condition is not permitted by any of such covenants, the
      fact that it would be permitted by an exception to, or otherwise within the
      limitations of, another covenant shall not avoid the occurrence of a default
      if
      such action is taken or condition exists. In addition, all representations
      and
      warranties hereunder shall be given independent effect so that if a particular
      representation or warranty proves to be incorrect or is breached, the fact
      that
      another representation or warranty concerning the same or similar subject matter
      is correct or is not breached will not affect the incorrectness of a breach
      of a
      representation or warranty hereunder.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    II ADVANCES,
      PAYMENTS.

     

    2.1. Revolving
      Advances.

     

    (a) Amount
      of Revolving Advances.
      Subject
      to the terms and conditions set forth in this Agreement including Section
      2.1(b), each Lender, severally and not jointly, will make Revolving Advances
      to
      Borrower in aggregate amounts outstanding at any time equal to such Lender’s
      Commitment Percentage of the lesser of (x) the Maximum Revolving Advance Amount
      less the aggregate Maximum Undrawn Amount of all outstanding Letters of Credit
      or (y) an amount equal to the sum of:

     

    (i) up
      to
      85%, subject to the provisions of Section 2.1(b) hereof (“Receivables Advance
      Rate”), of the sum of (A) the value of Eligible Receivables, (B) the lesser of
      (I) the value of Eligible Unbilled Receivables and (II) the Eligible Unbilled
      Receivables Sublimit, and (C) the lesser of (I) the value of Eligible
      Work-In-Process Receivables and (II) the Eligible Work-In-Process Receivables
      Sublimit, minus

     

    (ii) the
      aggregate Maximum Undrawn Amount of all outstanding Letters of Credit,
      minus

     

    (iii) such
      reserves as Agent may reasonably deem proper and necessary from time to time
      including, but not limited to, the Subordinated Indebtedness Reserve, the Rent
      Reserve and the Sales Tax Reserve.

     

    The
      amount derived from the sum of (x) Sections 2.1(a)(y)(i) minus (y) Section
      2.1
      (a)(y)(ii) and (iii) at any time and from time to time shall be referred to
      as
      the “Formula Amount”. The Revolving Advances shall be evidenced by one or more
      secured promissory notes (collectively, the “Revolving Credit Note”)
      substantially in the form attached hereto as Exhibit 2.1(a).

     

    (b) Discretionary
      Rights.
      The
      Advance Rates may be increased or decreased by Agent at any time and from time
      to time in the exercise of its reasonable discretion. Borrower consents to
      any
      such increases or decreases and acknowledges that decreasing the Advance Rates
      or increasing or imposing reserves may limit or restrict Advances requested
      by
      Borrower. The rights of Agent under this subsection are subject to the
      provisions of Section 15.2(b).

     

    (c) Subordinated
      Indebtedness Reserve.
      The
      Agent on behalf of the Lenders hereby agrees to terminate the Subordinated
      Indebtedness Reserve upon receipt of evidence satisfactory to the Agent that
      either (i) the maturity date of the Subordinated Note has been extended to
      a
      date that is later than the Termination Date, (ii) the full amount of
      Indebtedness evidenced by the Subordinated Note has been converted into equity
      in the Borrower or (iii) the full amount of Indebtedness evidenced by the
      Subordinated Note has been repaid in full, provided,
      however,
      that
      the Borrower is in compliance with Section 7.21 herein at the time of such
      repayment.

     

    2.2. Procedure
      for Revolving Advances Borrowing. 

     

    (a) Borrower
      may notify Agent prior to 10:00 a.m. on a Business Day of Borrower’s request to
      incur, on that day, a Revolving Advance hereunder. Should any amount required
      to
      be paid as interest hereunder, or as fees or other charges under this Agreement
      or any other agreement with Agent or Lenders, or with respect to any other
      Obligation, become due, same shall be deemed a request for a Revolving Advance
      as of the date such payment is due, in the amount required to pay in full such
      interest, fee, charge or Obligation under this Agreement or any other agreement
      with Agent or Lenders, and such request shall be irrevocable.

     

    
      
        
        

      

      
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    (b) Notwithstanding
      the provisions of subsection (a) above, in the event Borrower desires to obtain
      a Eurodollar Rate Loan, Borrower shall give Agent written notice by no later
      than 10:00 a.m. on the day which is three (3) Business Days prior to the date
      such Eurodollar Rate Loan is to be borrowed, specifying (i) the date of the
      proposed borrowing (which shall be a Business Day), (ii) the type of borrowing
      and the amount on the date of such Advance to be borrowed, which amount shall
      be
      an integral multiple of $500,000, and (iii) the duration of the first Interest
      Period therefor. Interest Periods for Eurodollar Rate Loans shall be for one,
      two or three months; provided, if an Interest Period would end on a day that
      is
      not a Business Day, it shall end on the next succeeding Business Day unless
      such
      day falls in the next succeeding calendar month in which case the Interest
      Period shall end on the next preceding Business Day. No Eurodollar Rate Loan
      shall be made available to Borrower during the continuance of a Default or
      an
      Event of Default. After giving effect to each requested Eurodollar Rate Loan,
      including those which are converted from a Domestic Rate Loan under Section
      2.2(d), there shall not be outstanding more than three (3) Eurodollar Rate
      Loans, in the aggregate.

     

    (c) Each
      Interest Period of a Eurodollar Rate Loan shall commence on the date such
      Eurodollar Rate Loan is made and shall end on such date as Borrower may elect
      as
      set forth in subsection (b)(iii) above provided that the exact length of each
      Interest Period shall be determined in accordance with the practice of the
      interbank market for offshore Dollar deposits and no Interest Period shall
      end
      after the last day of the Term.

     

    Borrower
      shall elect the initial Interest Period applicable to a Eurodollar Rate Loan
      by
      its notice of borrowing given to Agent pursuant to Section 2.2(b) or by its
      notice of conversion given to Agent pursuant to Section 2.2(d), as the case
      may
      be. Borrower shall elect the duration of each succeeding Interest Period by
      giving irrevocable written notice to Agent of such duration not later than
      10:00
      a.m. on the day which is three (3) Business Days prior to the last day of the
      then current Interest Period applicable to such Eurodollar Rate Loan. If Agent
      does not receive timely notice of the Interest Period elected by Borrower,
      Borrower shall be deemed to have elected to convert to a Domestic Rate Loan
      subject to Section 2.2(d) hereinbelow.

     

    (d) Provided
      that no Event of Default shall have occurred and be continuing, Borrower may,
      on
      the last Business Day of the then current Interest Period applicable to any
      outstanding Eurodollar Rate Loan, or on any Business Day with respect to
      Domestic Rate Loans, convert any such loan into a loan of another type in the
      same aggregate principal amount provided that any conversion of a Eurodollar
      Rate Loan shall be made only on the last Business Day of the then current
      Interest Period applicable to such Eurodollar Rate Loan. If Borrower desires
      to
      convert a loan, Borrower shall give Agent written notice by no later than 10:00
      a.m. (i) on the day which is three (3) Business Days’ prior to the date on which
      such conversion is to occur with respect to a conversion from a Domestic Rate
      Loan to a Eurodollar Rate Loan, or (ii) on the day which is one (1) Business
      Day
      prior to the date on which such conversion is to occur with respect to a
      conversion from a Eurodollar Rate Loan to a Domestic Rate Loan, specifying,
      in
      each case, the date of such conversion, the loans to be converted and if the
      conversion is from a Domestic Rate Loan to any other type of loan, the duration
      of the first Interest Period therefor. 

     

    
      
        
        

      

      
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    (e) At
      its
      option and upon written notice given prior to 10:00 a.m. (New York time) at
      least three (3) Business Days’ prior to the date of such prepayment, Borrower
      may prepay the Eurodollar Rate Loans in whole at any time or in part from time
      to time with accrued interest on the principal being prepaid to the date of
      such
      repayment. Borrower shall specify the date of prepayment of Advances which
      are
      Eurodollar Rate Loans and the amount of such prepayment. In the event that
      any
      prepayment of a Eurodollar Rate Loan is required or permitted on a date other
      than the last Business Day of the then current Interest Period with respect
      thereto, Borrower shall indemnify Agent and Lenders therefor in accordance
      with
      Section 2.2(f) hereof.

     

    (f) Borrower
      shall indemnify Agent and Lenders and hold Agent and Lenders harmless from
      and
      against any and all losses or expenses that Agent and Lenders may sustain or
      incur as a consequence of any prepayment, conversion of or any default by
      Borrower in the payment of the principal of or interest on any Eurodollar Rate
      Loan or failure by Borrower to complete a borrowing of, a prepayment of or
      conversion of or to a Eurodollar Rate Loan after notice thereof has been given,
      including, but not limited to, any interest payable by Agent or Lenders to
      lenders of funds obtained by it in order to make or maintain its Eurodollar
      Rate
      Loans hereunder. A certificate as to any additional amounts payable pursuant
      to
      the foregoing sentence submitted by Agent or any Lender to Borrower shall be
      conclusive absent manifest error.

     

    (g) Notwithstanding
      any other provision hereof, if any Applicable Law, treaty, regulation or
      directive, or any change therein or in the interpretation or application
      thereof, shall make it unlawful for any Lender (for purposes of this subsection
      (g), the term “Lender” shall include any Lender and the office or branch where
      any Lender or any corporation or bank controlling such Lender makes or maintains
      any Eurodollar Rate Loans) to make or maintain its Eurodollar Rate Loans, the
      obligation of Lenders to make Eurodollar Rate Loans hereunder shall forthwith
      be
      cancelled and Borrower shall, if any affected Eurodollar Rate Loans are then
      outstanding, promptly upon request from Agent, either pay all such affected
      Eurodollar Rate Loans or convert such affected Eurodollar Rate Loans into loans
      of another type. If any such payment or conversion of any Eurodollar Rate Loan
      is made on a day that is not the last day of the Interest Period applicable
      to
      such Eurodollar Rate Loan, Borrower shall pay Agent, upon Agent’s request, such
      amount or amounts as may be necessary to compensate Lenders for any loss or
      expense sustained or incurred by Lenders in respect of such Eurodollar Rate
      Loan
      as a result of such payment or conversion, including (but not limited to) any
      interest or other amounts payable by Lenders to lenders of funds obtained by
      Lenders in order to make or maintain such Eurodollar Rate Loan. A certificate
      as
      to any additional amounts payable pursuant to the foregoing sentence submitted
      by Lenders to Borrower shall be conclusive absent manifest error.

     

    2.3. Disbursement
      of Advance Proceeds.
      All
      Advances shall be disbursed from whichever office or other place Agent may
      designate from time to time and, together with any and all other Obligations
      of
      Borrower to Agent or Lenders, shall be charged to Borrower’s Account on Agent’s
      books. During the Term, Borrower may use the Revolving Advances by borrowing,
      prepaying and reborrowing, all in accordance with the terms and conditions
      hereof. The proceeds of each Revolving Advance requested by Borrower or deemed
      to have been requested by Borrower under Section 2.2(a) hereof shall, with
      respect to requested Revolving Advances to the extent Lenders make such
      Revolving Advances, be made available to Borrower on the day so requested by
      way
      of credit to Borrower’s operating account at PNC, or such other bank as Borrower
      may designate following notification to Agent, in immediately available federal
      funds or other immediately available funds or, with respect to Revolving
      Advances deemed to have been requested by Borrower, be disbursed to Agent to
      be
      applied to the outstanding Obligations giving rise to such deemed
      request.

     

    
      
        
        

      

      
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    2.4. Maximum
      Advances.
      The
      aggregate balance of Revolving Advances outstanding at any time shall not exceed
      the lesser of (a) the Maximum Revolving Advance Amount or (b) the Formula Amount
      less, in each case, the aggregate Maximum Undrawn Amount of all issued and
      outstanding Letters of Credit. 

     

    2.5. Repayment
      of Advances.

     

    (a) The
      Revolving Advances shall be due and payable in full on the last day of the
      Term
      subject to earlier prepayment as herein provided.

     

    (b) Borrower
      recognizes that the amounts evidenced by checks, notes, drafts or any other
      items of payment relating to and/or proceeds of Collateral may not be
      collectible by Agent on the date received. In consideration of Agent’s agreement
      to conditionally credit Borrower’s Account as of the Business Day on which Agent
      receives those items of payment, Borrower agrees that, in computing the charges
      under this Agreement, all items of payment shall be deemed applied by Agent
      on
      account of the Obligations one (1) Business Day after (i) the Business Day
      Agent
      receives such payments via wire transfer or electronic depository check or
      (ii)
      in the case of payments received by Agent in any other form, the Business Day
      such payment constitutes good funds in Agent’s account. Agent is not, however,
      required to credit Borrower’s Account for the amount of any item of payment
      which is unsatisfactory to Agent and Agent may charge Borrower’s Account for the
      amount of any item of payment which is returned to Agent unpaid. 

     

    (c) All
      payments of principal, interest and other amounts payable hereunder, or under
      any of the Other Documents shall be made to Agent at the Payment Office not
      later than 1:00 P.M. (New York time) on the due date therefor in lawful money
      of
      the United States of America in federal funds or other funds immediately
      available to Agent. Agent shall have the right to effectuate payment on any
      and
      all Obligations due and owing hereunder by charging Borrower’s Account or by
      making Advances as provided in Section 2.2 hereof.

     

    (d) Borrower
      shall pay principal, interest, and all other amounts payable hereunder, or
      under
      any related agreement, without any deduction whatsoever, including, but not
      limited to, any deduction for any setoff or counterclaim.

     

    2.6. Repayment
      of Excess Advances.
      The
      aggregate balance of Advances outstanding at any time in excess of the maximum
      amount of Advances permitted hereunder shall be immediately due and payable
      without the necessity of any demand, at the Payment Office, whether or not
      a
      Default or Event of Default has occurred.

     

    
      
        
        

      

      
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    2.7. Statement
      of Account.
      Agent
      shall maintain, in accordance with its customary procedures, a loan account
      (“Borrower’s
      Account”)
      in the
      name of Borrower in which shall be recorded the date and amount of each Advance
      made by Agent and the date and amount of each payment in respect thereof;
      provided, however, the failure by Agent to record the date and amount of any
      Advance shall not adversely affect Agent or any Lender. Each month, Agent shall
      send to Borrower a statement showing the accounting for the Advances made,
      payments made or credited in respect thereof, and other transactions between
      Agent and Borrower, during such month. The monthly statements shall be deemed
      correct and binding upon Borrower in the absence of manifest error and shall
      constitute an account stated between Lenders and Borrower unless Agent receives
      a written statement of Borrower’s specific exceptions thereto within thirty (30)
      days after such statement is received by Borrower. The records of Agent with
      respect to the loan account shall be conclusive evidence absent manifest error
      of the amounts of Advances and other charges thereto and of payments applicable
      thereto.

     

    2.8. Letters
      of Credit.
      Subject
      to the terms and conditions hereof, Agent shall issue or cause the issuance
      of
      standby Letters of Credit (“Letters of Credit”) for the account of Borrower;
      provided, however, that Agent will not be required to issue or cause to be
      issued any Letters of Credit to the extent that the issuance thereof would
      then
      cause the sum of (i) the outstanding Revolving Advances plus (ii) the Maximum
      Undrawn Amount of all outstanding Letters of Credit to exceed the lesser of
      (x)
      the Maximum Revolving Advance Amount or (y) the Formula Amount. The Maximum
      Undrawn Amount of all outstanding Letters of Credit shall not exceed in the
      aggregate at any time the Letter of Credit Sublimit. All disbursements or
      payments related to Letters of Credit shall be deemed to be Domestic Rate Loans
      consisting of Revolving Advances and shall bear interest at the applicable
      Contract Rate for Domestic Rate Loans; Letters of Credit that have not been
      drawn upon shall not bear interest. 

     

    2.9. Issuance
      of Letters of Credit.

     

    (a) Borrower
      may request Agent to issue or cause the issuance of a Letter of Credit by
      delivering to Agent, at the Payment Office, prior to 10:00 a.m. (New York time),
      at least five (5) Business Days’ prior to the proposed date of issuance, Agent’s
      form of Letter of Credit Application (the “Letter
      of Credit Application”)
      completed to the satisfaction of Agent; and, such other certificates, documents
      and other papers and information as Agent may reasonably request. Borrower
      also
      has the right to give instructions and make agreements with respect to any
      application, any applicable letter of credit and security agreement, any
      applicable letter of credit reimbursement agreement and/or any other applicable
      agreement, any letter of credit and the disposition of documents, disposition
      of
      any unutilized funds, and to agree with Agent upon any amendment, extension
      or
      renewal of any Letter of Credit.

     

    (b) Each
      Letter of Credit shall, among other things, (i) provide for the payment of
      sight
      drafts, other written demands for payment, or acceptances of usance drafts
      when
      presented for honor thereunder in accordance with the terms thereof and when
      accompanied by the documents described therein and (ii) have an expiry date
      not
      later than twenty-four (24) months after such Letter of Credit’s date of
      issuance and in no event later than the last day of the Term. Each standby
      Letter of Credit shall be subject either to the Uniform Customs and Practice
      for
      Documentary Credits as most recently published by the International Chamber
      of
      Commerce at the time a Letter of Credit is issued ("UCP") or the International
      Standby Practices (ISP98-International Chamber of Commerce Publication Number
      590) ("ISP98 Rules"), as determined by Agent, and each trade Letter of Credit
      shall be subject to UCP.

     

    
      
        
        

      

      
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    (c) Agent
      shall use its reasonable efforts to notify Lenders of the request by Borrower
      for a Letter of Credit hereunder.

     

    2.10. Requirements
      For Issuance of Letters of Credit.

     

    (a) Borrower
      shall authorize and direct any Issuer to name Borrower as the “Applicant” or
“Account Party” of each Letter of Credit. If Agent is not the Issuer of any
      Letter of Credit, Borrower shall authorize and direct the Issuer to deliver
      to
      Agent all instruments, documents, and other writings and property received
      by
      the Issuer pursuant to the Letter of Credit and to accept and rely upon Agent’s
      instructions and agreements with respect to all matters arising in connection
      with the Letter of Credit, the application therefor or any acceptance
      therefor.

     

    (b) In
      connection with all Letters of Credit issued or caused to be issued by Agent
      under this Agreement, Borrower hereby appoints Agent, or its designee, as its
      attorney, with full power and authority if an Event of Default shall have
      occurred, (i) to sign and/or endorse Borrower’s name upon any warehouse or other
      receipts, letter of credit applications and acceptance, (ii) to sign Borrower’s
      name on bills of lading; (iii) to clear Inventory through the United States
      of
      America Customs Department (“Customs”) in the name of Borrower or Agent or
      Agent’s designee, and to sign and deliver to Customs officials powers of
      attorney in the name of Borrower for such purpose; and (iv) to complete in
      Borrower’s name or Agent’s, or in the name of Agent’s designee, any order, sale
      or transaction, obtain the necessary documents in connection therewith, and
      collect the proceeds thereof. Neither Agent nor its attorneys will be liable
      for
      any acts or omissions nor for any error of judgment or mistakes of fact or
      law,
      except for Agent’s or its attorney’s willful misconduct. This power, being
      coupled with an interest, is irrevocable as long as any Letters of Credit remain
      outstanding.

     

    2.11. Disbursements,
      Reimbursement.

     

    (a) Immediately
      upon the issuance of each Letter of Credit, each Lender shall be deemed to,
      and
      hereby irrevocably and unconditionally agrees to, purchase from Agent a
      participation in such Letter of Credit and each drawing thereunder in an amount
      equal to such Lender’s Commitment Percentage of the Maximum Face Amount of such
      Letter of Credit and the amount of such drawing, respectively.

     

    (b) In
      the
      event of any request for a drawing under a Letter of Credit by the beneficiary
      or transferee thereof, Agent will promptly notify Borrower. Provided that it
      shall have received such notice, Borrower shall reimburse (such obligation
      to
      reimburse Agent shall sometimes be referred to as a “Reimbursement
      Obligation”)
      Agent
      prior to 12:00 Noon, New York time on each date that an amount is paid by Agent
      under any Letter of Credit (each such date, a “Drawing
      Date”)
      in an
      amount equal to the amount so paid by Agent. In the event Borrower fails to
      reimburse Agent for the full amount of any drawing under any Letter of Credit
      by
      12:00 Noon, New York time, on the Drawing Date, Agent will promptly notify
      each
      Lender thereof, and Borrower shall be deemed to have requested that a Domestic
      Rate Loan be made by the Lenders to be disbursed on the Drawing Date under
      such
      Letter of Credit, subject to the amount of the unutilized portion of the lesser
      of Maximum Revolving Advance Amount or the Formula Amount and subject to Section
      8.2 hereof. Any notice given by Agent pursuant to this Section 2.11(b) may
      be
      oral if immediately confirmed in writing; provided that the lack of such an
      immediate confirmation shall not affect the conclusiveness or binding effect
      of
      such notice.

     

    
      
        
        

      

      
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    (c) Each
      Lender shall upon any notice pursuant to Section 2.11(b) make available to
      Agent
      an amount in immediately available funds equal to its Commitment Percentage
      of
      the amount of the drawing, whereupon the participating Lenders shall (subject
      to
      Section 2.11(d)) each be deemed to have made a Domestic Rate Loan to Borrower
      in
      that amount. If any Lender so notified fails to make available to Agent the
      amount of such Lender’s Commitment Percentage of such amount by no later than
      2:00 p.m., New York time on the Drawing Date, then interest shall accrue on
      such
      Lender’s obligation to make such payment, from the Drawing Date to the date on
      which such Lender makes such payment (i) at a rate per annum equal to the
      Federal Funds Rate during the first three days following the Drawing Date and
      (ii) at a rate per annum equal to the rate applicable to Domestic Rate Loans
      on
      and after the fourth day following the Drawing Date. Agent will promptly give
      notice of the occurrence of the Drawing Date, but failure of Agent to give
      any
      such notice on the Drawing Date or in sufficient time to enable any Lender
      to
      effect such payment on such date shall not relieve such Lender from its
      obligation under this Section 2.11(c), provided that such Lender shall not
      be
      obligated to pay interest as provided in Section 2.11(c) (i) and (ii) until
      and
      commencing from the date of receipt of notice from Agent of a drawing.

     

    (d) With
      respect to any unreimbursed drawing that is not converted into a Domestic Rate
      Loan to Borrower in whole or in part as contemplated by Section 2.11(b), because
      of Borrower’s failure to satisfy the conditions set forth in Section 8.2 (other
      than any notice requirements) or for any other reason, Borrower shall be deemed
      to have incurred from Agent a borrowing (each a “Letter of Credit Borrowing”) in
      the amount of such drawing. Such Letter of Credit Borrowing shall be due and
      payable on demand (together with interest) and shall bear interest at the rate
      per annum applicable to a Domestic Rate Loan. Each Lender’s payment to Agent
      pursuant to Section 2.11(c) shall be deemed to be a payment in respect of its
      participation in such Letter of Credit Borrowing and shall constitute a
“Participation Advance” from such Lender in satisfaction of its Participation
      Commitment under this Section 2.11. 

     

    (e) Each
      Lender’s Participation Commitment shall continue until the last to occur of any
      of the following events: (x) Agent ceases to be obligated to issue or cause
      to
      be issued Letters of Credit hereunder; (y) no Letter of Credit issued or created
      hereunder remains outstanding and uncancelled and (z) all Persons (other than
      the Borrower) have been fully reimbursed for all payments made under or relating
      to Letters of Credit. 

     

    
      
        
        

      

      
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    2.12. Repayment
      of Participation Advances. 

     

    (a) Upon
      (and
      only upon) receipt by Agent for its account of immediately available funds
      from
      Borrower (i) in reimbursement of any payment made by the Agent under the Letter
      of Credit with respect to which any Lender has made a Participation Advance
      to
      Agent, or (ii) in payment of interest on such a payment made by Agent under
      such
      a Letter of Credit, Agent will pay to each Lender, in the same funds as those
      received by Agent, the amount of such Lender’s Commitment Percentage of such
      funds, except Agent shall retain the amount of the Commitment Percentage of
      such
      funds of any Lender that did not make a Participation Advance in respect of
      such
      payment by Agent.

     

    (b) If
      Agent
      is required at any time to return to Borrower, or to a trustee, receiver,
      liquidator, custodian, or any official in any insolvency proceeding, any portion
      of the payments made by Borrower to Agent pursuant to Section 2.12(a) in
      reimbursement of a payment made under the Letter of Credit or interest or fee
      thereon, each Lender shall, on demand of Agent, forthwith return to Agent the
      amount of its Commitment Percentage of any amounts so returned by Agent plus
      interest at the Federal Funds Effective Rate.

     

    2.13. Documentation.
      Borrower
      agrees to be bound by the terms of the Letter of Credit Application and by
      Agent’s interpretations of any Letter of Credit issued for Borrower’s account
      and by Agent’s written regulations and customary practices relating to letters
      of credit, though Agent’s interpretations may be different from Borrower’s own.
      In the event of a conflict between the Letter of Credit Application and this
      Agreement, this Agreement shall govern. It is understood and agreed that, except
      in the case of gross negligence or willful misconduct (as determined by a court
      of competent jurisdiction in a final non-appealable judgment), Agent shall
      not
      be liable for any error, negligence and/or mistakes, whether of omission or
      commission, in following Borrower’s instructions or those contained in the
      Letters of Credit or any modifications, amendments or supplements
      thereto.

     

    2.14. Determination
      to Honor Drawing Request.
      In
      determining whether to honor any request for drawing under any Letter of Credit
      by the beneficiary thereof, Agent shall be responsible only to determine that
      the documents and certificates required to be delivered under such Letter of
      Credit have been delivered and that they comply on their face with the
      requirements of such Letter of Credit and that any other drawing condition
      appearing on the face of such Letter of Credit has been satisfied in the manner
      so set forth.

     

    2.15. Nature
      of Participation and Reimbursement Obligations.
      Each
      Lender’s obligation in accordance with this Agreement to make the Revolving
      Advances or Participation Advances as a result of a drawing under a Letter
      of
      Credit, and the obligations of Borrower to reimburse Agent upon a draw under
      a
      Letter of Credit, shall be absolute, unconditional and irrevocable, and shall
      be
      performed strictly in accordance with the terms of this Section 2.15 under
      all
      circumstances, including the following circumstances:

     

    (i) any
      set-off, counterclaim, recoupment, defense or other right which such Lender
      may
      have against Agent, Borrower or any other Person for any reason
      whatsoever;

     

    
      
        
        

      

      
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    (ii) the
      failure of Borrower or any other Person to comply, in connection with a Letter
      of Credit Borrowing, with the conditions set forth in this Agreement for the
      making of a Revolving Advance, it being acknowledged that such conditions are
      not required for the making of a Letter of Credit Borrowing and the obligation
      of the Lenders to make Participation Advances under Section 2.11;

     

    (iii) any
      lack
      of validity or enforceability of any Letter of Credit;

     

    (iv) any
      claim
      of breach of warranty that might be made by Borrower or any Lender against
      the
      beneficiary of a Letter of Credit, or the existence of any claim, set-off,
      recoupment, counterclaim, crossclaim, defense or other right which Borrower
      or
      any Lender may have at any time against a beneficiary, any successor beneficiary
      or any transferee of any Letter of Credit or the proceeds thereof (or any
      Persons for whom any such transferee may be acting), Agent or any Lender or
      any
      other Person, whether in connection with this Agreement, the transactions
      contemplated herein or any unrelated transaction (including any underlying
      transaction between Borrower or any Subsidiaries of Borrower and the beneficiary
      for which any Letter of Credit was procured);

     

    (v) the
      lack
      of power or authority of any signer of (or any defect in or forgery of any
      signature or endorsement on) or the form of or lack of validity, sufficiency,
      accuracy, enforceability or genuineness of any draft, demand, instrument,
      certificate or other document presented under or in connection with any Letter
      of Credit, or any fraud or alleged fraud in connection with any Letter of
      Credit, or the transport of any property or provisions of services relating
      to a
      Letter of Credit, in each case even if Agent or any of Agent’s Affiliates has
      been notified thereof;

     

    (vi) payment
      by Agent under any Letter of Credit against presentation of a demand, draft
      or
      certificate or other document which does not comply with the terms of such
      Letter of Credit;

     

    (vii) the
      solvency of, or any acts or omissions by, any beneficiary of any Letter of
      Credit, or any other Person having a role in any transaction or obligation
      relating to a Letter of Credit, or the existence, nature, quality, quantity,
      condition, value or other characteristic of any property or services relating
      to
      a Letter of Credit;

     

    (viii) any
      failure by the Agent or any of Agent’s Affiliates to issue any Letter of Credit
      in the form requested by Borrower, unless the Agent has received written notice
      from Borrower of such failure within three (3) Business Days after the Agent
      shall have furnished Borrower a copy of such Letter of Credit and such error
      is
      material and no drawing has been made thereon prior to receipt of such
      notice;

     

    (ix) any
      Material Adverse Effect on Borrower or any Guarantor;

     

    (x) any
      breach of this Agreement or any Other Document by any party
      thereto;

     

    (xi) the
      occurrence or continuance of an insolvency proceeding with respect to Borrower
      or any Guarantor;

     

    
      
        
        

      

      
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    (xii) the
      fact
      that a Default or Event of Default shall have occurred and be
      continuing;

     

    (xiii) the
      fact
      that the Term shall have expired or this Agreement or the Obligations hereunder
      shall have been terminated; and

     

    (xiv) any
      other
      circumstance or happening whatsoever, whether or not similar to any of the
      foregoing.

     

    2.16. Indemnity.
      In
      addition to amounts payable as provided in Section 15.5, the Borrower hereby
      agrees to protect, indemnify, pay and save harmless Agent and any of Agent’s
      Affiliates that have issued a Letter of Credit from and against any and all
      claims, demands, liabilities, damages, taxes, penalties, interest, judgments,
      losses, costs, charges and expenses (including reasonable fees, expenses and
      disbursements of counsel and allocated costs of internal counsel) which the
      Agent or any of Agent’s Affiliates may incur or be subject to as a consequence,
      direct or indirect, of the issuance of any Letter of Credit, other than as
      a
      result of (A) the gross negligence or willful misconduct of the Agent as
      determined by a final and non-appealable judgment of a court of competent
      jurisdiction or (b) the wrongful dishonor by the Agent or any of Agent’s
      Affiliates of a proper demand for payment made under any Letter of Credit,
      except if such dishonor resulted from any act or omission, whether rightful
      or
      wrongful, of any present or future de jure or de facto Governmental Body (all
      such acts or omissions herein called “Governmental
      Acts”).

     

    2.17. Liability
      for Acts and Omissions.
      As
      between Borrower and Agent and Lenders, Borrower assumes all risks of the acts
      and omissions of, or misuse of the Letters of Credit by, the respective
      beneficiaries of such Letters of Credit. In furtherance and not in limitation
      of
      the respective foregoing, Agent shall not be responsible for: (i) the form,
      validity, sufficiency, accuracy, genuineness or legal effect of any document
      submitted by any party in connection with the application for an issuance of
      any
      such Letter of Credit, even if it should in fact prove to be in any or all
      respects invalid, insufficient, inaccurate, fraudulent or forged (even if Agent
      shall have been notified thereof); (ii) the validity or sufficiency of any
      instrument transferring or assigning or purporting to transfer or assign any
      such Letter of Credit or the rights or benefits thereunder or proceeds thereof,
      in whole or in part, which may prove to be invalid or ineffective for any
      reason; (iii) the failure of the beneficiary of any such Letter of Credit,
      or
      any other party to which such Letter of Credit may be transferred, to comply
      fully with any conditions required in order to draw upon such Letter of Credit
      or any other claim of Borrower against any beneficiary of such Letter of Credit,
      or any such transferee, or any dispute between or among Borrower and any
      beneficiary of any Letter of Credit or any such transferee; (iv) errors,
      omissions, interruptions or delays in transmission or delivery of any messages,
      by mail, cable, telegraph, telex or otherwise, whether or not they be in cipher;
      (v) errors in interpretation of technical terms; (vi) any loss or delay in
      the
      transmission or otherwise of any document required in order to make a drawing
      under any such Letter of Credit or of the proceeds thereof; (vii) the
      misapplication by the beneficiary of any such Letter of Credit of the proceeds
      of any drawing under such Letter of Credit; or (viii) any consequences arising
      from causes beyond the control of Agent, including any governmental acts, and
      none of the above shall affect or impair, or prevent the vesting of, any of
      Agent’s rights or powers hereunder. Nothing in the preceding sentence shall
      relieve Agent from liability for Agent’s gross negligence or willful misconduct
      (as determined by a court of competent jurisdiction in a final non-appealable
      judgment) in connection with actions or omissions described in such clauses
      (i)
      through (viii) of such sentence. In no event shall Agent or Agent’s Affiliates
      be liable to the Borrower for any indirect, consequential, incidental, punitive,
      exemplary or special damages or expenses (including without limitation
      attorneys’ fees), or for any damages resulting from any change in the value of
      any property relating to a Letter of Credit.

     

    
      
        
        

      

      
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    Without
      limiting the generality of the foregoing, Agent and each of its Affiliates
      (i)
      may rely on any oral or other communication believed in good faith by Agent
      or
      such Affiliate to have been authorized or given by or on behalf of the applicant
      for a Letter of Credit, (ii) may honor any presentation if the documents
      presented appear on their face substantially to comply with the terms and
      conditions of the relevant Letter of Credit; (iii) may honor a previously
      dishonored presentation under a Letter of Credit, whether such dishonor was
      pursuant to a court order, to settle or compromise any claim of wrongful
      dishonor, or otherwise, and shall be entitled to reimbursement to the same
      extent as if such presentation had initially been honored, together with any
      interest paid by Agent or its Affiliates; (iv) may honor any drawing that is
      payable upon presentation of a statement advising negotiation or payment, upon
      receipt of such statement (even if such statement indicates that a draft or
      other document is being delivered separately), and shall not be liable for
      any
      failure of any such draft or other document to arrive, or to conform in any
      way
      with the relevant Letter of Credit; (v) may pay any paying or negotiating bank
      claiming that it rightfully honored under the laws or practices of the place
      where such bank is located; and (vi) may settle or adjust any claim or demand
      made on Agent or its Affiliate in any way related to any order issued at the
      applicant’s request to an air carrier, a letter of guarantee or of indemnity
      issued to a carrier or any similar document (each an “Order”) and honor any
      drawing in connection with any Letter of Credit that is the subject of such
      Order, notwithstanding that any drafts or other documents presented in
      connection with such Letter of Credit fail to conform in any way with such
      Letter of Credit.

     

    In
      furtherance and extension and not in limitation of the specific provisions
      set
      forth above, any action taken or omitted by Agent under or in connection with
      the Letters of Credit issued by it or any documents and certificates delivered
      thereunder, if taken or omitted in good faith and without gross negligence
      (as
      determined by a court of competent jurisdiction in a final non-appealable
      judgment), shall not put Agent under any resulting liability to Borrower or
      any
      Lender.

     

    2.18. Additional
      Payments.
      Any
      sums
      expended by Agent or any Lender due to Borrower’s failure to perform or comply
      with its obligations under this Agreement or any Other Document including
      Borrower’s obligations under Sections 4.2, 4.4, 4.12, 4.13, 4.14 and 6.1 hereof,
      may be charged to Borrower’s Account as a Revolving Advance and added to the
      Obligations.

     

    2.19. Manner
      of Borrowing and Payment.

     

    (a) Each
      borrowing of Revolving Advances shall be advanced according to the applicable
      Commitment Percentages of Lenders.

     

    (b) Each
      payment (including each prepayment) by Borrower on account of the principal
      of
      and interest on the Revolving Advances, shall be applied to the Revolving
      Advances pro rata according to the applicable Commitment Percentages of Lenders.
      Except as expressly provided herein, all payments (including prepayments) to
      be
      made by Borrower on account of principal, interest and fees shall be made
      without set off or counterclaim and shall be made to Agent on behalf of the
      Lenders to the Payment Office, in each case on or prior to 1:00 P.M., New York
      time, in Dollars and in immediately available funds.

     

    
      
        
        

      

      
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    (c) 

     

    (i) Notwithstanding
      anything to the contrary contained in Sections 2.19(a) and (b) hereof,
      commencing with the first Business Day following the Closing Date, each
      borrowing of Revolving Advances shall be advanced by Agent and each payment
      by
      Borrower on account of Revolving Advances shall be applied first to those
      Revolving Advances advanced by Agent. On or before 1:00 P.M., New York time,
      on
      each Settlement Date commencing with the first Settlement Date following the
      Closing Date, Agent and Lenders shall make certain payments as follows: (I)
      if
      the aggregate amount of new Revolving Advances made by Agent during the
      preceding Week (if any) exceeds the aggregate amount of repayments applied
      to
      outstanding Revolving Advances during such preceding Week, then each Lender
      shall provide Agent with funds in an amount equal to its applicable Commitment
      Percentage of the difference between (w) such Revolving Advances and (x) such
      repayments and (II) if the aggregate amount of repayments applied to outstanding
      Revolving Advances during such Week exceeds the aggregate amount of new
      Revolving Advances made during such Week, then Agent shall provide each Lender
      with funds in an amount equal to its applicable Commitment Percentage of the
      difference between (y) such repayments and (z) such Revolving
      Advances.

     

    (ii) Each
      Lender shall be entitled to earn interest at the applicable Contract Rate on
      outstanding Advances which it has funded.

     

    (iii) Promptly
      following each Settlement Date, Agent shall submit to each Lender a certificate
      with respect to payments received and Advances made during the Week immediately
      preceding such Settlement Date. Such certificate of Agent shall be conclusive
      in
      the absence of manifest error.

     

    (d) If
      any
      Lender or Participant (a “benefited
      Lender”)
      shall
      at any time receive any payment of all or part of its Advances, or interest
      thereon, or receive any Collateral in respect thereof (whether voluntarily
      or
      involuntarily or by set-off) in a greater proportion than any such payment
      to
      and Collateral received by any other Lender, if any, in respect of such other
      Lender’s Advances, or interest thereon, and such greater proportionate payment
      or receipt of Collateral is not expressly permitted hereunder, such benefited
      Lender shall purchase for cash from the other Lenders a participation in such
      portion of each such other Lender’s Advances, or shall provide such other Lender
      with the benefits of any such Collateral, or the proceeds thereof, as shall
      be
      necessary to cause such benefited Lender to share the excess payment or benefits
      of such Collateral or proceeds ratably with each of the other Lenders; provided,
      however, that if all or any portion of such excess payment or benefits is
      thereafter recovered from such benefited Lender, such purchase shall be
      rescinded, and the purchase price and benefits returned, to the extent of such
      recovery, but without interest. Each Lender so purchasing a portion of another
      Lender’s Advances may exercise all rights of payment (including rights of
      set-off) with respect to such portion as fully as if such Lender were the direct
      holder of such portion.

     

    
      
        
        

      

      
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    (e) Unless
      Agent shall have been notified by telephone, confirmed in writing, by any Lender
      that such Lender will not make the amount which would constitute its applicable
      Commitment Percentage of the Advances available to Agent, Agent may (but shall
      not be obligated to) assume that such Lender shall make such amount available
      to
      Agent on the next Settlement Date and, in reliance upon such assumption, make
      available to Borrower a corresponding amount. Agent will promptly notify
      Borrower of its receipt of any such notice from a Lender. If such amount is
      made
      available to Agent on a date after such next Settlement Date, such Lender shall
      pay to Agent on demand an amount equal to the product of (i) the daily average
      Federal Funds Rate (computed on the basis of a year of 360 days) during such
      period as quoted by Agent, times (ii) such amount, times (iii) the number of
      days from and including such Settlement Date to the date on which such amount
      becomes immediately available to Agent. A certificate of Agent submitted to
      any
      Lender with respect to any amounts owing under this paragraph (e) shall be
      conclusive, in the absence of manifest error. If such amount is not in fact
      made
      available to Agent by such Lender within three (3) Business Days after such
      Settlement Date, Agent shall be entitled to recover such an amount, with
      interest thereon at the rate per annum then applicable to such Revolving
      Advances hereunder, on demand from Borrower; provided, however, that Agent’s
      right to such recovery shall not prejudice or otherwise adversely affect
      Borrower’s rights (if any) against such Lender.

     

    2.20. Mandatory
      Prepayments.

     

    Subject
      to Section 4.3 hereof, when Borrower sells or otherwise disposes of any
      Collateral other than Inventory and Equipment in excess of $50,000 in the
      Ordinary Course of Business, Borrower shall repay the Advances in an amount
      equal to the net proceeds of such sale (i.e., gross proceeds less the reasonable
      costs of such sales or other dispositions), such repayments to be made promptly
      but in no event more than one (1) Business Day following receipt of such net
      proceeds, and until the date of payment, such proceeds shall be held in trust
      for Agent. The foregoing shall not be deemed to be implied consent to any such
      sale otherwise prohibited by the terms and conditions hereof. Such repayments
      shall be applied to the Advances in such order as Agent may determine, subject
      to Borrower’s ability to reborrow Revolving Advances in accordance with the
      terms hereof.

     

    2.21. Use
      of
      Proceeds.

     

    (a) Borrower
      shall apply the proceeds of Advances to (i) repay existing indebtedness owed
      to
      Presidential Financial Corporation of Delaware Valley, (ii) make Subordinated
      Debt Payments, subject to the restrictions contained in the Agreement, (iii)
      pay
      fees and expenses relating to this transaction, (iv) provide for its working
      capital needs and reimburse drawings under Letters of Credit and (v) assist
      in
      the acquisition of companies engaged in the same line of business pursuant
      to
      Section 7.1 hereof.

     

    
      
        
        

      

      
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    (b) Without
      limiting the generality of Section 2.21(a) above, neither the Borrower, the
      Guarantors nor any other Person which may in the future become party to this
      Agreement or the Other Documents as Borrower or Guarantor, intends to use nor
      shall they use any portion of the proceeds of the Advances, directly or
      indirectly, for any purpose in violation of the Trading with the Enemy
      Act.

     

    2.22. Defaulting
      Lender.

     

    (a) Notwithstanding
      anything to the contrary contained herein, in the event any Lender (x) has
      refused (which refusal constitutes a breach by such Lender of its obligations
      under this Agreement) to make available its portion of any Advance or (y)
      notifies either Agent or Borrower that it does not intend to make available
      its
      portion of any Advance (if the actual refusal would constitute a breach by
      such
      Lender of its obligations under this Agreement) (each, a “Lender
      Default”),
      all
      rights and obligations hereunder of such Lender (a “Defaulting
      Lender”)
      as to
      which a Lender Default is in effect and of the other parties hereto shall be
      modified to the extent of the express provisions of this Section 2.22 while
      such
      Lender Default remains in effect.

     

    (b) Advances
      shall be incurred pro rata from Lenders (the “Non-Defaulting
      Lenders”)
      which
      are not Defaulting Lenders based on their respective Commitment Percentages,
      and
      no Commitment Percentage of any Lender or any pro rata share of any Advances
      required to be advanced by any Lender shall be increased as a result of such
      Lender Default. Amounts received in respect of principal of any type of Advances
      shall be applied to reduce the applicable Advances of each Lender (other than
      any Defaulting Lender) pro rata based on the aggregate of the outstanding
      Advances of that type of all Lenders at the time of such application; provided,
      that, Agent shall not be obligated to transfer to a Defaulting Lender any
      payments received by Agent for the Defaulting Lender’s benefit, nor shall a
      Defaulting Lender be entitled to the sharing of any payments hereunder
      (including any principal, interest or fees). Amounts payable to a Defaulting
      Lender shall instead be paid to or retained by Agent. Agent may hold and, in
      its
      discretion, re-lend to Borrower the amount of such payments received or retained
      by it for the account of such Defaulting Lender.

     

    (c) A
      Defaulting Lender shall not be entitled to give instructions to Agent or to
      approve, disapprove, consent to or vote on any matters relating to this
      Agreement and the Other Documents. All amendments, waivers and other
      modifications of this Agreement and the Other Documents may be made without
      regard to a Defaulting Lender and, for purposes of the definition of “Required
      Lenders”, a Defaulting Lender shall be deemed not to be a Lender and not to have
      Advances outstanding.

     

    (d) Other
      than as expressly set forth in this Section 2.22, the rights and obligations
      of
      a Defaulting Lender (including the obligation to indemnify Agent) and the other
      parties hereto shall remain unchanged. Nothing in this Section 2.22 shall be
      deemed to release any Defaulting Lender from its obligations under this
      Agreement and the Other Documents, shall alter such obligations, shall operate
      as a waiver of any default by such Defaulting Lender hereunder, or shall
      prejudice any rights which Borrower, Agent or any Lender may have against any
      Defaulting Lender as a result of any default by such Defaulting Lender
      hereunder.

     

    
      
        
        

      

      
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    (e) In
      the
      event a Defaulting Lender retroactively cures to the satisfaction of Agent
      the
      breach which caused a Lender to become a Defaulting Lender, such Defaulting
      Lender shall no longer be a Defaulting Lender and shall be treated as a Lender
      under this Agreement.

     

    III INTEREST
      AND FEES.

     

    3.1. Interest.
      Interest
      on Advances shall be payable in arrears on the first day of each month with
      respect to Domestic Rate Loans and, with respect to Eurodollar Rate Loans,
      at
      the end of each Interest Period or, for Eurodollar Rate Loans with an Interest
      Period in excess of three months, at the earlier of (a) each three months from
      the commencement of such Eurodollar Rate Loan or (b) the end of the Interest
      Period. Interest charges shall be computed on the actual principal amount of
      Advances outstanding during the month at a rate per annum equal to with respect
      to Revolving Advances, the applicable Revolving Interest Rate (as applicable,
      the “Contract Rate”). Whenever, subsequent to the date of this Agreement, the
      Alternate Base Rate is increased or decreased, the applicable Contract Rate
      shall be similarly changed without notice or demand of any kind by an amount
      equal to the amount of such change in the Alternate Base Rate during the time
      such change or changes remain in effect. The Eurodollar Rate shall be adjusted
      with respect to Eurodollar Rate Loans without notice or demand of any kind
      on
      the effective date of any change in the Reserve Percentage as of such effective
      date. Upon and after the occurrence of an Event of Default, and during the
      continuation thereof, (i) at the option of Agent or at the direction of Required
      Lenders, the Obligations other than Eurodollar Rate Loans shall bear interest
      at
      the Revolving Interest Rate for Domestic Loans plus two (2%) percent per annum
      and (ii) Eurodollar Rate Loans shall bear interest at the Revolving Interest
      Rate for Eurodollar Rate Loans plus two (2%) percent per annum (as applicable,
      the “Default Rate”).

     

    3.2. Letter
      of Credit Fees.

     

    (a) Borrower
      shall pay (x) to Agent, for the ratable benefit of Lenders, fees for each Letter
      of Credit for the period from and excluding the date of issuance of same to
      and
      including the date of expiration or termination, equal to the average daily
      face
      amount of each outstanding Letter of Credit multiplied by two percent (2.00%)
      per annum, such fees to be calculated on the basis of a 360-day year for the
      actual number of days elapsed and to be payable quarterly in arrears on the
      first day of each quarter and
      on
      the last day of the Term, and (y) to the Issuer, a fronting fee of one quarter
      of one percent (0.25%) per annum, together with any and all administrative,
      issuance, amendment, payment and negotiation charges with respect to Letters
      of
      Credit and all fees and expenses as agreed upon by the Issuer and the Borrower
      in connection with any Letter of Credit, including in connection with the
      opening, amendment or renewal of any such Letter of Credit and any acceptances
      created thereunder and shall reimburse Agent for any and all fees and expenses,
      if any, paid by Agent to the Issuer (all of the foregoing fees, the “Letter of
      Credit Fees”). All such charges shall be deemed earned in full on the date when
      the same are due and payable hereunder and shall not be subject to rebate or
      pro-ration upon the termination of this Agreement for any reason. Any such
      charge in effect at the time of a particular transaction shall be the charge
      for
      that transaction, notwithstanding any subsequent change in the Issuer’s
      prevailing charges for that type of transaction. All Letter of Credit Fees
      and
      Acceptance Fees payable hereunder shall be deemed earned in full on the date
      when the same are due and payable hereunder and shall not be subject to rebate
      or pro-ration upon the termination of this Agreement for any
      reason.

     

    
      
        
        

      

      
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    On
      demand, and after the occurrence of an Event of Default, Borrower will cause
      cash to be deposited and maintained in an account with Agent, as cash
      collateral, in an amount equal to one hundred and five percent (105%) of the
      Maximum Undrawn Amount of all outstanding Letters of Credit, and Borrower hereby
      irrevocably authorizes Agent, in its discretion, on Borrower’s behalf and in
      Borrower’s name, to open such an account and to make and maintain deposits
      therein, or in an account opened by Borrower, in the amounts required to be
      made
      by Borrower, out of the proceeds of Receivables or other Collateral or out
      of
      any other funds of Borrower coming into any Lender’s possession at any time.
      Agent will invest such cash collateral (less applicable reserves) in such
      short-term money-market items as to which Agent and Borrower mutually agree
      and
      the net return on such investments shall be credited to such account and
      constitute additional cash collateral. Borrower may not withdraw amounts
      credited to any such account except upon the occurrence of all of the following:
      (x) payment and performance in full of all Obligations, (y) the expiration
      of
      all Letters of Credit and (z) the termination of this
      Agreement.

     

    3.3. Closing
      Fee and Facility Fee.

     

    (a) Closing
      Fee.
      Upon
      the
      execution of this Agreement, Borrower shall pay to Agent for the ratable benefit
      of Lenders a closing fee of $56,250 less that portion of the commitment fee
      of
      $25,000 and that portion of the deposit fee of $20,000 heretofore paid by
      Borrower to Agent remaining after application of such fee to out of pocket
      expenses.

     

    (b) Facility
      Fee.
      If,
      for
      any calendar quarter during the Term, the average daily unpaid balance of the
      Revolving Advances and undrawn amount of any outstanding Letters of Credit
      for
      each day of such calendar quarter does not equal the Maximum Revolving Advance
      Amount, then Borrower shall pay to Agent for the ratable benefit of Lenders
      a
      fee at a rate equal to one quarter of one percent (.25%) per annum on the amount
      by which the Maximum Revolving Advance Amount exceeds such average daily unpaid
      balance. Such fee shall be payable to Agent in arrears on the first day of
      each
      calendar quarter with respect to the previous calendar quarter.

     

    3.4. Collateral
      Evaluation Fee, Collateral Monitoring Fee and Fee Letter.

     

    (a) Collateral
      Evaluation Fee.
      Borrower
      shall pay Agent a collateral evaluation fee equal to $750.00 per month
      commencing on the first day of the month following the Closing Date and on
      the
      first day of each month thereafter during the Term. The collateral evaluation
      fee shall be deemed earned in full on the date when same is due and payable
      hereunder and shall not be subject to rebate or proration upon termination
      of
      this Agreement for any reason.

     

    (b) Collateral
      Monitoring Fee.
      Borrower
      shall pay to Agent on the first day of each month following any month in which
      Agent performs any collateral monitoring - namely any field examination,
      collateral analysis or other business analysis, the need for which is to be
      determined by Agent and which monitoring is undertaken by Agent or for Agent’s
      benefit - a collateral monitoring fee in an amount equal to $750.00 per day
      for
      each person employed to perform such monitoring, plus all costs and
      disbursements incurred by Agent in the performance of such examination or
      analysis. Unless a Default or an Event of Default has occurred, such Collateral
      Monitoring shall be limited to no more than four times annually.

     

    
      
        
        

      

      
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    3.5. Computation
      of Interest and Fees.
      Interest
      and fees hereunder shall be computed on the basis of a year of 360 days and
      for
      the actual number of days elapsed. If any payment to be made hereunder becomes
      due and payable on a day other than a Business Day, the due date thereof shall
      be extended to the next succeeding Business Day and interest thereon shall
      be
      payable at the applicable Contract Rate for Domestic Rate Loans during such
      extension.

     

    3.6. Maximum
      Charges.
      In
      no
      event whatsoever shall interest and other charges charged hereunder exceed
      the
      highest rate permissible under law. In the event interest and other charges
      as
      computed hereunder would otherwise exceed the highest rate permitted under
      law,
      such excess amount shall be first applied to any unpaid principal balance owed
      by Borrower, and if the then remaining excess amount is greater than the
      previously unpaid principal balance, Lenders shall promptly refund such excess
      amount to Borrower and the provisions hereof shall be deemed amended to provide
      for such permissible rate.

     

    3.7. Increased
      Costs.
      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 (for purposes of this Section 3.7, the term “Lender” shall include Agent
      or any Lender and any corporation or bank controlling Agent or any Lender)
      and
      the office or branch where Agent or any Lender (as so defined) makes or
      maintains any Eurodollar Rate Loans 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
      Agent or any Lender to any tax of any kind whatsoever with respect to this
      Agreement or any Other Document or change the basis of taxation of payments
      to
      Agent or any Lender of principal, fees, interest or any other amount payable
      hereunder or under any Other Documents (except for changes in the rate of tax
      on
      the overall net income of Agent or any Lender by 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 office of Agent or any
      Lender, including pursuant to Regulation D of the Board of Governors of the
      Federal Reserve System; or

     

    (c) impose
      on
      Agent or any Lender or the London interbank Eurodollar market any other
      condition with respect to this Agreement or any Other Document;

     

    and
      the
      result of any of the foregoing is to increase the cost to Agent or any Lender
      of
      making, renewing or maintaining its Advances hereunder by an amount that Agent
      or such Lender deems to be material or to reduce the amount of any payment
      (whether of principal, interest or otherwise) in respect of any of the Advances
      by an amount that Agent or such Lender deems to be material, then, in any case
      Borrower shall promptly pay Agent or such Lender, upon its demand, such
      additional amount as will compensate Agent or such Lender for such additional
      cost or such reduction, as the case may be, provided that the foregoing shall
      not apply to increased costs which are reflected in the Eurodollar Rate, as
      the
      case may be. Agent or such Lender shall certify the amount of such additional
      cost or reduced amount to Borrower, and such certification shall be conclusive
      absent manifest error.

     

    
      
        
        

      

      
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    3.8. Basis
      For Determining Interest Rate Inadequate or Unfair.
      In
      the
      event that Agent or any Lender shall have determined that:

     

    (a) reasonable
      means do not exist for ascertaining the Eurodollar Rate applicable pursuant
      to
      Section 2.2 hereof for any Interest Period; or

     

    (b) Dollar
      deposits in the relevant amount and for the relevant maturity are not available
      in the London interbank Eurodollar market, with respect to an outstanding
      Eurodollar Rate Loan, a proposed Eurodollar Rate Loan, or a proposed conversion
      of a Domestic Rate Loan into a Eurodollar Rate Loan,

     

    then
      Agent shall give Borrower prompt written, telephonic or telegraphic notice
      of
      such determination. If such notice is given, (i) any such requested Eurodollar
      Rate Loan shall be made as a Domestic Rate Loan, unless Borrower shall notify
      Agent no later than 10:00 a.m. (New York City time) two (2) Business Days prior
      to the date of such proposed borrowing, that its request for such borrowing
      shall be cancelled or made as an unaffected type of Eurodollar Rate Loan, (ii)
      any Domestic Rate Loan or Eurodollar Rate Loan which was to have been converted
      to an affected type of Eurodollar Rate Loan shall be continued as or converted
      into a Domestic Rate Loan, or, if Borrower shall notify Agent, no later than
      10:00 a.m. (New York City time) two (2) Business Days prior to the proposed
      conversion, shall be maintained as an unaffected type of Eurodollar Rate Loan,
      and (iii) any outstanding affected Eurodollar Rate Loans shall be converted
      into
      a Domestic Rate Loan, or, if Borrower shall notify Agent, no later than 10:00
      a.m. (New York City time) two (2) Business Days prior to the last Business
      Day
      of the then current Interest Period applicable to such affected Eurodollar
      Rate
      Loan, shall be converted into an unaffected type of Eurodollar Rate Loan, on
      the
      last Business Day of the then current Interest Period for such affected
      Eurodollar Rate Loans. Until such notice has been withdrawn, Lenders shall
      have
      no obligation to make an affected type of Eurodollar Rate Loan or maintain
      outstanding affected Eurodollar Rate Loans and Borrower shall not have the
      right
      to convert a Domestic Rate Loan or an unaffected type of Eurodollar Rate Loan
      into an affected type of Eurodollar Rate Loan.

     

    3.9. Capital
      Adequacy.

     

    (a) In
      the
      event that Agent or any Lender shall have determined that any Applicable Law,
      rule, regulation or guideline regarding capital adequacy, or any change therein,
      or any change in the interpretation or administration thereof by any
      Governmental Body, central bank or comparable agency charged with the
      interpretation or administration thereof, or compliance by Agent or any Lender
      (for purposes of this Section 3.9, the term “Lender” shall include Agent or any
      Lender and any corporation or bank controlling Agent or any Lender) with any
      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 Agent or any Lender’s capital
      as a consequence of its obligations hereunder to a level below that which Agent
      or such Lender could have achieved but for such adoption, change or compliance
      (taking into consideration Agent’s and each Lender’s policies with respect to
      capital adequacy) by an amount deemed by Agent or any Lender to be material,
      then, from time to time, Borrower shall pay upon demand to Agent or such Lender
      such additional amount or amounts as will compensate Agent or such Lender for
      such reduction. In determining such amount or amounts, Agent or such Lender
      may
      use any reasonable averaging or attribution methods. The protection of this
      Section 3.9 shall be available to Agent and each Lender regardless of any
      possible contention of invalidity or inapplicability with respect to the
      Applicable Law, regulation or condition.

     

    
      
        
        

      

      
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    (b) A
      certificate of Agent or such Lender setting forth such amount or amounts as
      shall be necessary to compensate Agent or such Lender with respect to Section
      3.9(a) hereof when delivered to Borrower shall be conclusive absent manifest
      error.

     

    3.10. Gross
      Up for Taxes.
      If
      Borrower shall be required by Applicable Law to withhold or deduct any taxes
      from or in respect of any sum payable under this Agreement or any of the Other
      Documents to Agent, or any Lender, assignee of any Lender, or Participant (each,
      individually, a “Payee” and collectively, the “Payees”), (a) the sum payable to
      such Payee or Payees, as the case may be, shall be increased as may be necessary
      so that, after making all required withholding or deductions, the applicable
      Payee or Payees receives an amount equal to the sum it would have received
      had
      no such withholding or deductions been made (the “Gross-Up Payment”), (b)
      Borrower shall make such withholding or deductions, and (c) Borrower shall
      pay
      the full amount withheld or deducted to the relevant taxation authority or
      other
      authority in accordance with Applicable Law. Notwithstanding the foregoing,
      Borrower shall not be obligated to make any portion of the Gross-Up Payment
      that
      is attributable to any withholding or deductions that would not have been paid
      or claimed had the applicable Payee or Payees properly claimed a complete
      exemption with respect thereto pursuant to Section 3.11 hereof.

     

    3.11. Withholding
      Tax Exemption.

     

    (a) Each
      Payee that is not incorporated under the Laws of the United States of America
      or
      a state thereof (and, upon the written request of Agent, each other Payee)
      agrees that it will deliver to Borrower and Agent two (2) duly completed
      appropriate valid Withholding Certificates (as defined under §1.1441-1(c)(16) of
      the Income Tax Regulations (“Regulations”)) certifying its status (i.e., U.S. or
      foreign person) and, if appropriate, making a claim of reduced, or exemption
      from, U.S. withholding tax on the basis of an income tax treaty or an exemption
      provided by the Code. The term “Withholding Certificate” means a Form W-9; a
      Form W-8BEN; a Form W-8ECI; a Form W-8IMY and the related statements and
      certifications as required under §1.1441-1(e)(2) and/or (3) of the Regulations;
      a statement described in §1.871-14(c)(2)(v) of the Regulations; or any other
      certificates under the Code or Regulations that certify or establish the status
      of a payee or beneficial owner as a U.S. or foreign person.

     

    (b) Each
      Payee required to deliver to Borrower and Agent a valid Withholding Certificate
      pursuant to Section 3.11(a) hereof shall deliver such valid Withholding
      Certificate as follows: (A) each Payee which is a party hereto on the Closing
      Date shall deliver such valid Withholding Certificate at least five (5) Business
      Days prior to the first date on which any interest or fees are payable by
      Borrower hereunder for the account of such Payee; (B) each Payee shall deliver
      such valid Withholding Certificate at least five (5) Business Days before the
      effective date of such assignment or participation (unless Agent in its sole
      and
      reasonable discretion shall permit such Payee to deliver such Withholding
      Certificate less than five (5) Business Days before such date in which case
      it
      shall be due on the date specified by Agent). Each Payee which so delivers
      a
      valid Withholding Certificate further undertakes to deliver to Borrower and
      Agent two (2) additional copies of such Withholding Certificate (or a successor
      form) on or before the date that such Withholding Certificate expires or becomes
      obsolete or after the occurrence of any event requiring a change in the most
      recent Withholding Certificate so delivered by it, and such amendments thereto
      or extensions or renewals thereof as may be reasonably requested by Borrower
      or
      Agent. 

     

    
      
        
        

      

      
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    (c) Notwithstanding
      the submission of a Withholding Certificate claiming a reduced rate of or
      exemption from U.S. withholding tax required under Section 3.11(b) hereof,
      Agent
      shall be entitled to withhold United States federal income taxes at the full
      30%
      withholding rate if in its reasonable judgment it is required to do so under
      the
      due diligence requirements imposed upon a withholding agent under §1.1441-7(b)
      of the Regulations. Further, Agent is indemnified under §1.1461-1(e) of the
      Regulations against any claims and demands of any Payee for the amount of any
      tax it deducts and withholds in accordance with regulations under §1441 of the
      Code.

     

    IV COLLATERAL: GENERAL
      TERMS

     

    4.1. Security
      Interest in the Collateral.
      To
      secure
      the prompt payment and performance to Agent and each Lender of the Obligations,
      Borrower hereby assigns, pledges and grants to Agent for its benefit and for
      the
      ratable benefit of each Lender a continuing security interest in and to and
      Lien
      on all of its Collateral, whether now owned or existing or hereafter acquired
      or
      arising and wheresoever located. Borrower shall mark its books and records
      as
      may be necessary or appropriate to evidence, protect and perfect Agent’s
      security interest and shall cause its financial statements to reflect such
      security interest. Borrower shall promptly provide Agent with written notice
      of
      all commercial tort claims, such notice to contain the case title together
      with
      the applicable court and a brief description of the claim(s). Upon delivery
      of
      each such notice, Borrower shall be deemed to hereby grant to Agent a security
      interest and lien in and to such commercial tort claims and all proceeds
      thereof.

     

    4.2. Perfection
      of Security Interest.
      Borrower
      shall take all action that may be necessary or desirable, or that Agent may
      request, so as at all times to maintain the validity, perfection, enforceability
      and priority of Agent’s security interest in and Lien on the Collateral or to
      enable Agent to protect, exercise or enforce its rights hereunder and in the
      Collateral, including, but not limited to, (i) immediately discharging all
      Liens
      other than Permitted Encumbrances, (ii) obtaining Lien Waiver Agreements
      relating only to Borrower’s chief place of business, unless Borrower’s books and
      records are maintained at other locations, (iii) delivering to Agent, endorsed
      or accompanied by such instruments of assignment as Agent may specify, and
      stamping or marking, in such manner as Agent may specify, any and all chattel
      paper, instruments, letters of credits and advices thereof and documents
      evidencing or forming a part of the Collateral, (iv) entering into warehousing,
      lockbox and other custodial arrangements satisfactory to Agent, and (v)
      executing and delivering financing statements, control agreements, instruments
      of pledge, mortgages, notices and assignments, in each case in form and
      substance satisfactory to Agent, relating to the creation, validity, perfection,
      maintenance or continuation of Agent’s security interest and Lien under the
      Uniform Commercial Code or other Applicable Law. By its signature hereto,
      Borrower hereby authorizes Agent to file against Borrower, one or more
      financing, continuation or amendment statements pursuant to the Uniform
      Commercial Code in form and substance satisfactory to Agent (which statements
      may have a description of collateral which is broader than that set forth
      herein). All charges, expenses and fees Agent may incur in doing any of the
      foregoing, and any local taxes relating thereto, shall be charged to Borrower’s
      Account as a Revolving Advance of a Domestic Rate Loan and added to the
      Obligations, or, at Agent’s option, shall be paid to Agent for its benefit and
      for the ratable benefit of Lenders immediately upon demand.

     

    
      
        
        

      

      
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    4.3. Disposition
      of Collateral.
      Borrower
      will safeguard and protect all Collateral for Agent’s general account and make
      no disposition thereof whether by sale, lease or otherwise except (a) the sale
      of Inventory in the Ordinary Course of Business and (b) the disposition or
      transfer of obsolete and worn-out Equipment in the Ordinary Course of Business
      during any fiscal year having an aggregate fair market value of not more than
      $150,000 and only to the extent that (i) the proceeds of any such disposition
      are used to acquire replacement Equipment which is subject to Agent’s first
      priority security interest or (ii) the proceeds of which in excess of $50,000
      are remitted to Agent to be applied pursuant to Section 2.20.

     

    4.4. Preservation
      of Collateral.
      Following
      the occurrence of a Default or Event of Default, in addition to the rights
      and
      remedies set forth in Section 11.1 hereof, Agent: (a) may at any time take
      such
      steps as Agent deems necessary to protect Agent’s interest in and to preserve
      the Collateral, including the hiring of such security guards or the placing
      of
      other security protection measures as Agent may deem appropriate; (b) may employ
      and maintain at any of Borrower’s premises a custodian who shall have full
      authority to do all acts necessary to protect Agent’s interests in the
      Collateral; (c) may lease warehouse facilities to which Agent may move all
      or
      part of the Collateral; (d) may use Borrower’s owned or leased lifts, hoists,
      trucks and other facilities or equipment for handling or removing the
      Collateral; and (e) shall have, and is hereby granted, a right of ingress and
      egress to the places where the Collateral is located, and may proceed over
      and
      through any of Borrower’s owned or leased property. Borrower shall cooperate
      fully with all of Agent’s efforts to preserve the Collateral and will take such
      actions to preserve the Collateral as Agent may direct. All of Agent’s expenses
      of preserving the Collateral, including any expenses relating to the bonding
      of
      a custodian, shall be charged to Borrower’s Account as a Revolving Advance and
      added to the Obligations.

     

    4.5. Ownership
      of Collateral.

     

    (a) With
      respect to the Collateral, at the time the Collateral becomes subject to Agent’s
      security interest: (i) Borrower shall be the sole owner of and fully
      authorized and able to sell, transfer, pledge and/or grant a first priority
      security interest in each and every item of the its respective Collateral to
      Agent; and, except for Permitted Encumbrances the Collateral shall be free
      and
      clear of all Liens and encumbrances whatsoever; (ii) each document and agreement
      executed by Borrower or delivered to Agent or any Lender in connection with
      this
      Agreement shall be true and correct in all respects; (iii) all signatures
      and endorsements of Borrower that appear on such documents and agreements shall
      be genuine and Borrower shall have full capacity to execute same; and
      (iv) Borrower’s Equipment and Inventory shall be located as set forth on
      Schedule 4.5 and shall not be removed from such location(s) without the
      prior written consent of Agent except with respect to the sale of Inventory
      in
      the Ordinary Course of Business and Equipment to the extent permitted in Section
      4.3 hereof and Equipment and Inventory located at job sites.

     

    
      
        
        

      

      
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    (b) (i)
      There
      is no location at which Borrower has any Inventory (except for Inventory in
      transit) other than those locations listed on Schedule 4.5 or at job sites;
      (ii)
      Schedule 4.5 hereto contains a correct and complete list, as of the Closing
      Date, of the legal names and addresses of each warehouse at which Inventory
      of
      Borrower is stored; none of the receipts received by Borrower from any warehouse
      states that the goods covered thereby are to be delivered to bearer or to the
      order of a named Person or to a named Person and such named Person’s assigns;
      (iii) Schedule 4.5 hereto sets forth a correct and complete list as of the
      Closing Date of (A) each place of business of Borrower and (B) the chief
      executive office of Borrower; and (iv) Schedule 4.5 hereto sets forth a correct
      and complete list as of the Closing Date of the location, by state and street
      address, of all Real Property owned or leased by Borrower, together with the
      names and addresses of any landlords.

     

    4.6. Defense
      of Agent’s and Lenders’ Interests.
      Until
      (a)
      payment and performance in full of all of the Obligations and (b) termination
      of
      this Agreement, Agent’s interests in the Collateral shall continue in full force
      and effect. During such period Borrower shall not, without Agent’s prior written
      consent, pledge, sell (except Inventory in the Ordinary Course of Business
      and
      Equipment to the extent permitted in Section 4.3 hereof), assign, transfer,
      create or suffer to exist a Lien upon or encumber or allow or suffer to be
      encumbered in any way except for Permitted Encumbrances, any part of the
      Collateral. Borrower shall defend Agent’s interests in the Collateral against
      any and all Persons whatsoever. At any time following demand by Agent for
      payment of all Obligations, Agent shall have the right to take possession of
      the
      indicia of the Collateral and the Collateral in whatever physical form
      contained, including: labels, stationery, documents, instruments and advertising
      materials. If Agent exercises this right to take possession of the Collateral,
      Borrower shall, upon demand, assemble it in the best manner possible and make
      it
      available to Agent at a place reasonably convenient to Agent. In addition,
      with
      respect to all Collateral, Agent and Lenders shall be entitled to all of the
      rights and remedies set forth herein and further provided by the Uniform
      Commercial Code or other Applicable Law. Borrower shall, and Agent may, at
      its
      option, instruct all suppliers, carriers, forwarders, warehousers or others
      receiving or holding cash, checks, Inventory, documents or instruments in which
      Agent holds a security interest to deliver same to Agent and/or subject to
      Agent’s order and if they shall come into Borrower’s possession, they, and each
      of them, shall be held by Borrower in trust as Agent’s trustee, and Borrower
      will immediately deliver them to Agent in their original form together with
      any
      necessary endorsement.

     

    4.7. Books
      and Records.
      Borrower
      shall (a) keep proper books of record and account in which full, true and
      correct entries will be made of all dealings or transactions of or in relation
      to its business and affairs; (b) set up on its books accruals with respect
      to
      all taxes, assessments, charges, levies and claims; and (c) on a reasonably
      current basis set up on its books, from its earnings, allowances against
      doubtful Receivables, advances and investments and all other proper accruals
      (including by reason of enumeration, accruals for premiums, if any, due on
      required payments and accruals for depreciation, obsolescence, or amortization
      of properties), which should be set aside from such earnings in connection
      with
      its business. All determinations pursuant to this subsection shall be made
      in
      accordance with, or as required by, GAAP consistently applied in the opinion
      of
      such independent public accountant as shall then be regularly engaged by
      Borrower.

     

    
      
        
        

      

      
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    4.8. Financial
      Disclosure.
      Borrower
      hereby irrevocably authorizes and directs all accountants and auditors employed
      by Borrower at any time during the Term to exhibit and deliver to Agent and
      each
      Lender copies of any of Borrower’s financial statements, trial balances or other
      accounting records of any sort in the accountant’s or auditor’s possession, and
      to disclose to Agent and each Lender any information such accountants may have
      concerning Borrower’s financial status and business operations. Borrower hereby
      authorizes all Governmental Bodies to furnish to Agent and each Lender copies
      of
      reports or examinations relating to Borrower, whether made by Borrower or
      otherwise; however, Agent and each Lender will attempt to obtain such
      information or materials directly from Borrower prior to obtaining such
      information or materials from such accountants or Governmental
      Bodies.

     

    4.9. Compliance
      with Laws.
      Borrower
      shall comply in all material respects with all Applicable Laws with respect
      to
      the Collateral or any part thereof or to the operation of Borrower’s business
      the non-compliance with which could reasonably be expected to have a Material
      Adverse Effect. Borrower may, however, contest or dispute any Applicable Laws
      in
      any reasonable manner, provided that any related Lien is inchoate or stayed
      and
      sufficient reserves are established to the reasonable satisfaction of Agent
      to
      protect Agent’s Lien on or security interest in the Collateral. The assets of
      Borrower at all times shall be maintained in accordance with the requirements
      of
      all insurance carriers which provide insurance with respect to the assets of
      Borrower so that such insurance shall remain in full force and
      effect.

     

    4.10. Inspection
      of Premises.
      At
      all
      reasonable times Agent and each Lender shall have full access to and the right
      to audit, check, inspect and make abstracts and copies from Borrower’s books,
      records, audits, correspondence and all other papers relating to the Collateral
      and the operation of Borrower’s business. Agent, any Lender and their agents may
      enter upon any of Borrower’s premises at any time during business hours and at
      any other reasonable time, and from time to time, for the purpose of inspecting
      the Collateral and any and all records pertaining thereto and the operation
      of
      Borrower’s business.

     

    4.11. Insurance.
      The
      assets and properties of Borrower at all times shall be maintained in accordance
      with the requirements of all insurance carriers which provide insurance with
      respect to the assets and properties of Borrower so that such insurance shall
      remain in full force and effect. Borrower shall bear the full risk of any loss
      of any nature whatsoever with respect to the Collateral. At Borrower’s own cost
      and expense in amounts and with carriers acceptable to Agent, Borrower shall
      (a)
      keep all its insurable properties and properties in which Borrower has an
      interest insured against the hazards of fire, flood, sprinkler leakage, those
      hazards covered by extended coverage insurance and such other hazards, and
      for
      such amounts, as is customary in the case of companies engaged in businesses
      similar to Borrower’s including business interruption insurance; (b) maintain a
      bond or insurance in such amounts as is customary in the case of companies
      engaged in businesses similar to Borrower insuring against larceny, embezzlement
      or other criminal misappropriation of insured’s officers and employees who may
      either singly or jointly with others at any time have access to the assets
      or
      funds of Borrower either directly or through authority to draw upon such funds
      or to direct generally the disposition of such assets; (c) maintain public
      and
      product liability insurance against claims for personal injury, death or
      property damage suffered by others; (d) maintain all such worker’s compensation
      or similar insurance as may be required under the laws of any state or
      jurisdiction in which Borrower is engaged in business; (e) furnish Agent with
      (i) copies of all policies and evidence of the maintenance of such policies
      by
      the renewal thereof at least thirty (30) days before any expiration date, and
      (ii) appropriate loss payable endorsements in form and substance satisfactory
      to
      Agent, naming Agent as an additional insured and lender loss payee as its
      interests may appear with respect to all insurance coverage referred to in
      clauses (a) and (c) above, and providing (A) that all proceeds relating to
      the
      Collateral in excess of $50,000 thereunder shall be payable to Agent, (B) no
      such insurance shall be affected by any act or neglect of the insured or owner
      of the property described in such policy, and (C) that such policy and loss
      payable clauses may not be cancelled, amended or terminated unless at least
      thirty (30) days’ prior written notice is given to Agent. In the event of any
      loss thereunder relating to the Collateral,, the carriers named therein hereby
      are directed by Agent and Borrower to make payment for such loss as provided
      herein to Agent and not to Borrower and Agent jointly. If any insurance losses
      are paid by check, draft or other instrument payable to Borrower and Agent
      jointly, Agent may endorse Borrower’s name thereon and do such other things as
      Agent may deem advisable to reduce the same to cash. After the occurrence of
      an
      Event of Default, Agent is hereby authorized to adjust and compromise claims
      under insurance coverage referred to in clauses (a) and (b) above. All loss
      recoveries received by Agent upon any such insurance may be applied to the
      Obligations, in such order as Agent in its sole and reasonable discretion shall
      determine. Any surplus shall be paid by Agent to Borrower or applied as may
      be
      otherwise required by law. Any deficiency thereon shall be paid by Borrower
      to
      Agent, on demand.

     

    
      
        
        

      

      
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    4.12. Failure
      to Pay Insurance.
      If
      Borrower fails to obtain insurance as hereinabove provided, or to keep the
      same
      in force, Agent, if Agent so elects, may obtain such insurance and pay the
      premium therefor on behalf of Borrower, and charge Borrower’s Account therefor
      as a Revolving Advance of a Domestic Rate Loan and such expenses so paid shall
      be part of the Obligations.

     

    4.13. Payment
      of Taxes.
      Borrower
      will pay, when due, all taxes, assessments and other Charges lawfully levied
      or
      assessed upon Borrower or any of the Collateral including real and personal
      property taxes, assessments and charges and all franchise, income, employment,
      social security benefits, withholding, and sales taxes. If any tax by any
      Governmental Body is or may be imposed on or as a result of any transaction
      between Borrower and Agent or any Lender which Agent or any Lender may be
      required to withhold or pay or if any taxes, assessments, or other Charges
      remain unpaid after the date fixed for their payment, or if any claim shall
      be
      made which, in Agent’s or any Lender’s opinion, may possibly create a valid Lien
      on the Collateral, Agent may without notice to Borrower pay the taxes,
      assessments or other Charges and Borrower hereby indemnifies and holds Agent
      and
      each Lender harmless in respect thereof. Agent will not pay any taxes,
      assessments or Charges to the extent that Borrower has contested or disputed
      those taxes, assessments or Charges in good faith, by expeditious protest,
      administrative or judicial appeal or similar proceeding provided that any
      related tax lien is stayed and sufficient reserves are established to the
      reasonable satisfaction of Agent to protect Agent’s security interest in or Lien
      on the Collateral. The amount of any payment by Agent under this Section 4.13
      shall be charged to Borrower’s Account as a Revolving Advance and added to the
      Obligations and, until Borrower shall furnish Agent with an indemnity therefor
      (or supply Agent with evidence satisfactory to Agent that due provision for
      the
      payment thereof has been made), Agent may hold without interest any balance
      standing to Borrower’s credit and Agent shall retain its security interest in
      and Lien on any and all Collateral held by Agent.

     

    
      
        
        

      

      
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    4.14. Payment
      of Leasehold Obligations.
      Borrower
      shall at all times pay, when and as due, its rental obligations under all leases
      under which it is a tenant, and shall otherwise comply, in all material
      respects, with all other terms of such leases and keep them in full force and
      effect and, at Agent’s request will provide evidence of having done
      so.

     

    4.15. Receivables.

     

    (a) Nature
      of Receivables.
      Each
      of
      the Receivables shall be a bona fide and valid account representing a bona
      fide
      indebtedness incurred by the Customer therein named, for a fixed sum as set
      forth in the invoice relating thereto (provided immaterial or unintentional
      invoice errors shall not be deemed to be a breach hereof) with respect to an
      absolute sale or lease and delivery of goods upon stated terms of Borrower,
      or
      work, labor or services theretofore rendered by Borrower as of the date each
      Receivable is created. Same shall be due and owing in accordance with Borrower’s
      standard terms of sale without dispute, setoff or counterclaim except as may
      be
      stated on the accounts receivable schedules delivered by Borrower to
      Agent.

     

    (b) Solvency
      of Customers.
      Each
      Customer, to the best of Borrower’s knowledge, as of the date each Receivable is
      created, is and will be solvent and able to pay all Receivables on which the
      Customer is obligated in full when due or with respect to such Customers of
      Borrower who are not solvent Borrower has set up on its books and in its
      financial records bad debt reserves adequate to cover such
      Receivables.

     

    (c) Location
      of Borrower.
      Borrower’s
      chief executive office is located at 97 Linden Avenue, Elmwood Park, New Jersey
      07407. The Agent hereby consents to the Borrower changing the location of it’s
      chief executive offices to 270 Market Street, Saddle Brook, New Jersey,
provided,
      however,
      that
      the Borrower provides written notice of such relocation to the Agent thirty
      (30)
      days prior to such relocation. Until written notice is given to Agent by
      Borrower of any other office at which Borrower keeps its records pertaining
      to
      Receivables, all such records shall be kept at such executive
      office.

     

    (d) Collection
      of Receivables.
      Until
      Borrower’s authority to do so is terminated by Agent (which notice Agent may
      give at any time following the occurrence of an Event of Default or a Default
      or
      when Agent in its sole and reasonable discretion deems it to be in Lenders’ best
      interest to do so), Borrower will, at Borrower’s sole cost and expense, but on
      Agent’s behalf and for Agent’s account, collect as Agent’s property and in trust
      for Agent all amounts received on Receivables, and shall not commingle such
      collections with Borrower’s funds or use the same except to pay Obligations.
      Borrower shall deposit in the Blocked Account or, upon request by Agent, deliver
      to Agent, in original form and on the date of receipt thereof, all checks,
      drafts, notes, money orders, acceptances, cash and other evidences of
      Indebtedness.

     

    (e) Notification
      of Assignment of Receivables.
      At
      any
      time following the occurrence of an Event of Default or a Default, Agent shall
      have the right to send notice of the assignment of, and Agent’s security
      interest in and Lien on, the Receivables to any and all Customers or any third
      party holding or otherwise concerned with any of the Collateral. Thereafter,
      Agent shall have the sole right to collect the Receivables, take possession
      of
      the Collateral, or both. Agent’s actual collection expenses, including, but not
      limited to, stationery and postage, telephone and telegraph, secretarial and
      clerical expenses and the salaries of any collection personnel used for
      collection, may be charged to Borrower’s Account and added to the
      Obligations.

     

    
      
        
        

      

      
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    (f) Power
      of Agent to Act on Borrower’s Behalf.
      Agent
      shall have the right to receive, endorse, assign and/or deliver in the name
      of
      Agent or Borrower any and all checks, drafts and other instruments for the
      payment of money relating to the Receivables, and Borrower hereby waives notice
      of presentment, protest and non-payment of any instrument so endorsed. Borrower
      hereby constitutes Agent or Agent’s designee as Borrower’s attorney with power
      (i) to endorse Borrower’s name upon any notes, acceptances, checks, drafts,
      money orders or other evidences of payment or Collateral; (ii) to sign
      Borrower’s name on any invoice or bill of lading relating to any of the
      Receivables, drafts against Customers, assignments and verifications of
      Receivables; (iii) to send verifications of Receivables to any Customer; (iv)
      to
      sign Borrower’s name on all financing statements or any other documents or
      instruments deemed necessary or appropriate by Agent to preserve, protect,
      or
      perfect Agent’s interest in the Collateral and to file same; (v) to demand
      payment of the Receivables; (vi) to enforce payment of the Receivables by legal
      proceedings or otherwise; (vii) to exercise all of Borrower’s rights and
      remedies with respect to the collection of the Receivables and any other
      Collateral; (viii) to settle, adjust, compromise, extend or renew the
      Receivables; (ix) to settle, adjust or compromise any legal proceedings brought
      to collect Receivables; (x) to prepare, file and sign Borrower’s name on a proof
      of claim in bankruptcy or similar document against any Customer; (xi) to
      prepare, file and sign Borrower’s name on any notice of Lien, assignment or
      satisfaction of Lien or similar document in connection with the Receivables;
      and
      (xii) to do all other acts and things necessary to carry out this Agreement.
      All
      acts of said attorney or designee are hereby ratified and approved, and said
      attorney or designee shall not be liable for any acts of omission or commission
      nor for any error of judgment or mistake of fact or of law, unless done
      maliciously or with gross (not mere) negligence (as determined by a court of
      competent jurisdiction in a final non-appealable judgment); this power being
      coupled with an interest is irrevocable while any of the Obligations remain
      unpaid. Agent shall have the right at any time following the occurrence of
      an
      Event of Default or Default, to change the address for delivery of mail
      addressed to Borrower to such address as Agent may designate and to receive,
      open and dispose of all mail addressed to Borrower.

     

    (g) No
      Liability.
      Neither
      Agent nor any Lender shall, under any circumstances or in any event whatsoever,
      have any liability for any error or omission or delay of any kind occurring
      in
      the settlement, collection or payment of any of the Receivables or any
      instrument received in payment thereof, or for any damage resulting therefrom.
      Following the occurrence of an Event of Default or Default Agent may, without
      notice or consent from Borrower, sue upon or otherwise collect, extend the
      time
      of payment of, compromise or settle for cash, credit or upon any terms any
      of
      the Receivables or any other securities, instruments or insurance applicable
      thereto and/or release any obligor thereof. Agent is authorized and empowered
      to
      accept the return of the goods represented by any of the Receivables, without
      notice to or consent by Borrower, all without discharging or in any way
      affecting Borrower’s liability hereunder.

     

    
      
        
        

      

      
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    (h) Establishment
      of a Lockbox Account, Dominion Account.
      All
      proceeds of Collateral shall be deposited by Borrower into either (i) a lockbox
      account, dominion account or such other “blocked account” (“Blocked Accounts”)
      established at a bank or banks (each such bank, a “Blocked Account Bank”)
      pursuant to an arrangement with such Blocked Account Bank as may be selected
      by
      Borrower and be acceptable to Agent or (ii) depository accounts (“Depository
      Accounts”) established at the Agent for the deposit of such proceeds. Borrower,
      Agent and each Blocked Account Bank shall enter into a deposit account control
      agreement in form and substance satisfactory to Agent directing such Blocked
      Account Bank to transfer such funds so deposited to Agent, either to any account
      maintained by Agent at said Blocked Account Bank or by wire transfer to
      appropriate account(s) of Agent. All funds deposited in such Blocked Accounts
      shall immediately become the property of Agent and Borrower shall obtain the
      agreement by such Blocked Account Bank to waive any offset rights against the
      funds so deposited. Neither Agent nor any Lender assumes any responsibility
      for
      such blocked account arrangement, including any claim of accord and satisfaction
      or release with respect to deposits accepted by any Blocked Account Bank
      thereunder. All deposit accounts and investment accounts of Borrower and its
      Subsidiaries are set forth on Schedule 4.15(h).

     

    (i) Adjustments.
      Borrower
      will not, without Agent’s consent, compromise or adjust any material amount of
      the Receivables (or extend the time for payment thereof) or accept any material
      returns of merchandise or grant any additional discounts, allowances or credits
      thereon except for those compromises, adjustments, returns, discounts, credits
      and allowances as have been heretofore customary in the business of
      Borrower.

     

    4.16. Inventory.
      To
      the
      extent Inventory held for sale or lease has been produced by Borrower, it has
      been and will be produced by Borrower in accordance with the Federal Fair Labor
      Standards Act of 1938, as amended, and all rules, regulations and orders
      thereunder.

     

    4.17. Maintenance
      of Equipment.
      The
      Equipment shall be maintained in good operating condition and repair (reasonable
      wear and tear excepted) and all necessary replacements of and repairs thereto
      shall be made so that the value and operating efficiency of the Equipment shall
      be maintained and preserved. Borrower shall not use or operate the Equipment
      in
      violation of any law, statute, ordinance, code, rule or regulation. Borrower
      shall have the right to sell Equipment to the extent set forth in Section 4.3
      hereof.

     

    4.18. Exculpation
      of Liability.
      Nothing
      herein contained shall be construed to constitute Agent or any Lender as
      Borrower’s agent for any purpose whatsoever, nor shall Agent or any Lender be
      responsible or liable for any shortage, discrepancy, damage, loss or destruction
      of any part of the Collateral wherever the same may be located and regardless
      of
      the cause thereof. Neither Agent nor any Lender, whether by anything herein
      or
      in any assignment or otherwise, assume any of Borrower’s obligations under any
      contract or agreement assigned to Agent or such Lender, and neither Agent nor
      any Lender shall be responsible in any way for the performance by Borrower
      of
      any of the terms and conditions thereof.

     

    4.19. Environmental
      Matters. 

     

    (a) Borrower
      shall ensure that the Real Property and all operations and businesses conducted
      thereon remains in compliance with all Environmental Laws and they shall not
      place or permit to be placed any Hazardous Substances on any Real Property
      except as permitted by Applicable Law or appropriate governmental
      authorities.

     

    
      
        
        

      

      
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    (b) Borrower
      shall establish and maintain a system to assure and monitor continued compliance
      with all applicable Environmental Laws which system shall include periodic
      reviews of such compliance as is reasonable and customary for companies engaged
      in business similar to Borrower’s.

     

    (c) Borrower
      shall (i) employ in connection with the use of the Real Property appropriate
      technology necessary to maintain compliance with any applicable Environmental
      Laws and (ii) dispose of any and all Hazardous Waste generated at the Real
      Property only at facilities and with carriers that maintain valid permits under
      RCRA and any other applicable Environmental Laws. Borrower shall use its best
      efforts to obtain certificates of disposal, such as hazardous waste manifest
      receipts, from all treatment, transport, storage or disposal facilities or
      operators employed by Borrower in connection with the transport or disposal
      of
      any Hazardous Waste generated at the Real Property.

     

    (d) In
      the
      event Borrower obtains, gives or receives notice of any Release or threat of
      Release of a reportable quantity of any Hazardous Substances at the Real
      Property (any such event being hereinafter referred to as a “Hazardous
      Discharge”) or receives any notice of violation, request for information or
      notification that it is potentially responsible for investigation or cleanup
      of
      environmental conditions at the Real Property, demand letter or complaint,
      order, citation, or other written notice with regard to any Hazardous Discharge
      or violation of Environmental Laws affecting the Real Property or Borrower’s
      interest therein (any of the foregoing is referred to herein as an
“Environmental Complaint”) from any Person, including any state agency
      responsible in whole or in part for environmental matters in the state in which
      the Real Property is located or the United States Environmental Protection
      Agency (any such person or entity hereinafter the “Authority”), then Borrower
      shall, within five (5) Business Days, give written notice of same to Agent
      detailing facts and circumstances of which Borrower is aware giving rise to
      the
      Hazardous Discharge or Environmental Complaint. Such information is to be
      provided to allow Agent to protect its security interest in and Lien on the
      Real
      Property and the Collateral and is not intended to create nor shall it create
      any obligation upon Agent or any Lender with respect thereto.

     

    (e) Borrower
      shall promptly forward to Agent copies of any request for information,
      notification of potential liability, demand letter relating to potential
      responsibility with respect to the investigation or cleanup of Hazardous
      Substances at any other site owned, operated or used by Borrower to dispose
      of
      Hazardous Substances and shall continue to forward copies of correspondence
      between Borrower and the Authority regarding such claims to Agent until the
      claim is settled. Borrower shall promptly forward to Agent copies of all
      documents and reports concerning a Hazardous Discharge at the Real Property
      that
      Borrower is required to file under any Environmental Laws. Such information
      is
      to be provided solely to allow Agent to protect Agent’s security interest in and
      Lien on the Real Property and the Collateral.

     

    (f) Borrower
      shall respond promptly to any Hazardous Discharge or Environmental Complaint
      and
      take all necessary action in order to safeguard the health of any Person and
      to
      avoid subjecting the Collateral or Real Property to any Lien. If Borrower shall
      fail to respond promptly to any Hazardous Discharge or Environmental Complaint
      or Borrower shall fail to comply with any of the requirements of any
      Environmental Laws, Agent on behalf of Lenders may, but without the obligation
      to do so, for the sole purpose of protecting Agent’s interest in the Collateral:
      (A) give such notices or (B) enter onto the Real Property (or authorize third
      parties to enter onto the Real Property) and take such actions as Agent (or
      such
      third parties as directed by Agent) deem reasonably necessary or advisable,
      to
      clean up, remove, mitigate or otherwise deal with any such Hazardous Discharge
      or Environmental Complaint. All reasonable costs and expenses incurred by Agent
      and Lenders (or such third parties) in the exercise of any such rights,
      including any sums paid in connection with any judicial or administrative
      investigation or proceedings, fines and penalties, together with interest
      thereon from the date expended at the Default Rate for Domestic Rate Loans
      constituting Revolving Advances shall be paid upon demand by Borrower, and
      until
      paid shall be added to and become a part of the Obligations secured by the
      Liens
      created by the terms of this Agreement or any other agreement between Agent,
      any
      Lender and Borrower.

     

    
      
        
        

      

      
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    (g) Promptly
      upon the written request of Agent from time to time, Borrower shall provide
      Agent, at Borrower’s expense, with an environmental site assessment or
      environmental audit report prepared by an environmental engineering firm
      acceptable in the reasonable opinion of Agent, to assess with a reasonable
      degree of certainty the existence of a Hazardous Discharge and the potential
      costs in connection with abatement, cleanup and removal of any Hazardous
      Substances found on, under, at or within the Real Property. Any report or
      investigation of such Hazardous Discharge proposed and acceptable to an
      appropriate Authority that is charged to oversee the clean-up of such Hazardous
      Discharge shall be acceptable to Agent. If such estimates, individually or
      in
      the aggregate, exceed $100,000, Agent shall have the right to require Borrower
      to post a bond, letter of credit or other security reasonably satisfactory
      to
      Agent to secure payment of these costs and expenses.

     

    (h) Borrower
      shall defend and indemnify Agent and Lenders and hold Agent, Lenders and their
      respective employees, agents, directors and officers harmless from and against
      all loss, liability, damage and expense, claims, costs, fines and penalties,
      including attorney’s fees, suffered or incurred by Agent or Lenders under or on
      account of any Environmental Laws, including the assertion of any Lien
      thereunder, with respect to any Hazardous Discharge, the presence of any
      Hazardous Substances affecting the Real Property, whether or not the same
      originates or emerges from the Real Property or any contiguous real estate,
      including any loss of value of the Real Property as a result of the foregoing
      except to the extent such loss, liability, damage and expense is attributable
      to
      any Hazardous Discharge resulting from actions on the part of Agent or any
      Lender. Borrower’s obligations under this Section 4.19 shall arise upon the
      discovery of the presence of any Hazardous Substances at the Real Property,
      whether or not any federal, state, or local environmental agency has taken
      or
      threatened any action in connection with the presence of any Hazardous
      Substances. Borrower’s obligation and the indemnifications hereunder shall
      survive the termination of this Agreement.

     

    (i) For
      purposes of Section 4.19 and 5.7, all references to Real Property shall be
      deemed to include all of Borrower’s right, title and interest in and to its
      owned and leased premises.

     

    
      
        
        

      

      
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    4.20. Financing
      Statements.
      Except
      as
      respects the financing statements filed by Agent and the financing statements
      described on Schedule 1.2, no financing statement covering any of the Collateral
      or any proceeds thereof is on file in any public office.

     

    V REPRESENTATIONS
      AND WARRANTIES.

     

    Borrower
      represents and warrants as follows:

     

    5.1. Authority.
      Borrower
      has full power, authority and legal right to enter into this Agreement and
      the
      Other Documents and to perform all its respective Obligations hereunder and
      thereunder. This Agreement, the Subordinated Loan Documentation and the Other
      Documents have been duly executed and delivered by Borrower, and this Agreement,
      the Subordinated Loan Documentation and the Other Documents constitute the
      legal, valid and binding obligation of Borrower enforceable in accordance with
      their terms, except as such enforceability may be limited by any applicable
      bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights
      generally. The execution, delivery and performance of this Agreement and of
      the
      Other Documents (a) are within Borrower’s corporate powers, have been duly
      authorized by all necessary corporate action, are not in contravention of law
      or
      the terms of Borrower’s by-laws, certificate of incorporation or other
      applicable documents relating to Borrower’s formation or to the conduct of
      Borrower’s business or of any material agreement or undertaking to which
      Borrower is a party or by which Borrower is bound, including the Subordinated
      Loan Documentation, (b) will not conflict with or violate any law or regulation,
      or any judgment, order or decree of any Governmental Body, (c) will not require
      the Consent of any Governmental Body or any other Person, except those Consents
      set forth on Schedule 5.1 hereto, all of which will have been duly obtained,
      made or compiled prior to the Closing Date and which are in full force and
      effect and (d) will not conflict with, nor result in any breach in any of the
      provisions of or constitute a default under or result in the creation of any
      Lien except Permitted Encumbrances upon any asset of Borrower under the
      provisions of any agreement, charter document, instrument, operating agreement
      or other instrument to which Borrower is a party or by which it or its property
      is a party or by which it may be bound, including under the provisions of the
      Subordinated Loan Documentation.

     

    5.2. Formation
      and Qualification.

     

    (a) Borrower
      is duly incorporated and in good standing under the laws of the state listed
      on
      Schedule 5.2(a) and is qualified to do business and is in good standing in
      the
      states listed on Schedule 5.2(a) which constitute all states in which
      qualification and good standing are necessary for Borrower to conduct its
      business and own its property and where the failure to so qualify could
      reasonably be expected to have a Material Adverse Effect. Borrower has delivered
      to Agent true and complete copies of its certificate of incorporation and
      by-laws and will promptly notify Agent of any amendment or changes
      thereto.

     

    (b) The
      only
      Subsidiaries of Borrower are listed on Schedule 5.2(b).

     

    5.3. Survival
      of Representations and Warranties.
      All
      representations and warranties of Borrower contained in this Agreement and
      the
      Other Documents shall be true at the time of Borrower’s execution of this
      Agreement and the Other Documents, and shall survive the execution, delivery
      and
      acceptance thereof by the parties thereto and the closing of the transactions
      described therein or related thereto. 

     

    
      
        
        

      

      
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    5.4. Tax
      Returns.
      Borrower’s
      federal tax identification number is set forth on Schedule 5.4. Borrower has
      filed all federal, state and local tax returns and other reports it is required
      by law to file and has paid all taxes, assessments, fees and other governmental
      charges that are due and payable. Federal income tax returns of Borrower have
      been examined and reported upon by the appropriate taxing authority or closed
      by
      applicable statute and satisfied for all fiscal years prior to and including
      the
      fiscal year ending June 30, 2003. Except as set forth on Schedule 5.4, the
      provision for taxes on the books of Borrower is adequate for all years not
      closed by applicable statutes, and for its current fiscal year, and Borrower
      has
      no knowledge of any deficiency or additional assessment in connection therewith
      not provided for on its books.

     

    5.5. Financial
      Statements.
      

     

    The
      consolidated and consolidating balance sheets of Borrower, its Subsidiaries
      and
      such other Persons described therein (including the accounts of all Subsidiaries
      for the respective periods during which a subsidiary relationship existed)
      as of
      June 30, 2007, and the related statements of income, changes in stockholder’s
      equity, and changes in cash flow for the period ended on such date, all
      accompanied by reports thereon containing opinions without qualification by
      independent certified public accountants, copies of which have been delivered
      to
      Agent, have been prepared in accordance with GAAP, consistently applied (except
      for changes in application in which such accountants concur) and present fairly
      the financial position of Borrower and its Subsidiaries at such date and the
      results of their operations for such period. Since June 30, 2007 there has
      been
      no change in the condition, financial or otherwise, of Borrower or its
      Subsidiaries as shown on the consolidated balance sheet as of such date and
      no
      change in the aggregate value of machinery, equipment and Real Property owned
      by
      Borrower and its Subsidiaries, except changes in the Ordinary Course of
      Business, none of which individually or in the aggregate has been materially
      adverse.

     

    5.6. Entity
      Name.
      Borrower
      has not been known by any other corporate name in the past five years and does
      not sell Inventory under any other name except as set forth on Schedule 5.6,
      nor
      has Borrower been the surviving corporation of a merger or consolidation or
      acquired all or substantially all of the assets of any Person during the
      preceding five (5) years.

     

    5.7. O.S.H.A.
      and Environmental Compliance.

     

    (a) Borrower
      has duly complied with, and its facilities, business, assets, property,
      leaseholds, Real Property and Equipment are in compliance in all material
      respects with, the provisions of the Federal Occupational Safety and Health
      Act,
      the Environmental Protection Act, RCRA and all other Environmental Laws; there
      have been no outstanding citations, notices or orders of non-compliance issued
      to Borrower or relating to its business, assets, property, leaseholds or
      Equipment under any such laws, rules or regulations.

     

    (b) Borrower
      has been issued all required federal, state and local licenses, certificates
      or
      permits relating to all applicable Environmental Laws.

     

    
      
        
        

      

      
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    (c) (i)
      There
      are no visible signs of releases, spills, discharges, leaks or disposal
      (collectively referred to as “Releases”) of Hazardous Substances at, upon, under
      or within any Real Property or any premises leased by Borrower; (ii) there
      are
      no underground storage tanks or polychlorinated biphenyls on the Real Property
      or any premises leased by Borrower; (iii) neither the Real Property nor any
      premises leased by Borrower has ever been used as a treatment, storage or
      disposal facility of Hazardous Waste; and (iv) no Hazardous Substances are
      present on the Real Property or any premises leased by Borrower, excepting
      such
      quantities as are handled in accordance with all applicable manufacturer’s
      instructions and governmental regulations and in proper storage containers
      and
      as are necessary for the operation of the commercial business of Borrower or
      of
      its tenants.

     

    5.8. Solvency;
      No Litigation, Violation, Indebtedness or Default.

     

    (a) Borrower
      is solvent, able to pay its debts as they mature, has capital sufficient to
      carry on its business and all businesses in which it is about to engage, and
      (i)
      as of the Closing Date, the fair present saleable value of its assets,
      calculated on a going concern basis, is in excess of the amount of its
      liabilities and (ii) subsequent to the Closing Date, the fair saleable value
      of
      its assets (calculated on a going concern basis) will be in excess of the amount
      of its liabilities.

     

    (b) Except
      as
      disclosed in Schedule 5.8(b), Borrower has no (i) pending or threatened
      litigation, arbitration, actions or proceedings which involve the possibility
      of
      having a Material Adverse Effect, and (ii) liabilities or indebtedness for
      borrowed money other than the Obligations.

     

    (c) Borrower
      is not in violation of any applicable statute, law, rule, regulation or
      ordinance in any respect which could reasonably be expected to have a Material
      Adverse Effect, nor is Borrower in violation of any order of any court,
      Governmental Body or arbitration board or tribunal.

     

    (d) Neither
      Borrower nor any member of the Controlled Group maintains or contributes to
      any
      Plan other than those listed on Schedule 5.8(d) hereto. (i) No Plan has incurred
      any “accumulated funding deficiency,” as defined in Section 302(a)(2) of ERISA
      and Section 412(a) of the Code, whether or not waived, and Borrower and each
      member of the Controlled Group has met all applicable minimum funding
      requirements under Section 302 of ERISA in respect of each Plan; (ii) each
      Plan
      which is intended to be a qualified plan under Section 401(a) of the Code as
      currently in effect has been determined by the Internal Revenue Service to
      be
      qualified under Section 401(a) of the Code and the trust related thereto is
      exempt from federal income tax under Section 501(a) of the Code; (iii) neither
      Borrower nor any member of the Controlled Group has incurred any liability
      to
      the PBGC other than for the payment of premiums, and there are no premium
      payments which have become due which are unpaid; (iv) no Plan has been
      terminated by the plan administrator thereof nor by the PBGC, and there is
      no
      occurrence which would cause the PBGC to institute proceedings under Title
      IV of
      ERISA to terminate any Plan; (v) at this time, the current value of the assets
      of each Plan exceeds the present value of the accrued benefits and other
      liabilities of such Plan and neither Borrower nor any member of the Controlled
      Group knows of any facts or circumstances which would materially change the
      value of such assets and accrued benefits and other liabilities; (vi) neither
      Borrower nor any member of the Controlled Group has breached any of the
      responsibilities, obligations or duties imposed on it by ERISA with respect
      to
      any Plan; (vii) neither Borrower nor any member of a Controlled Group has
      incurred any liability for any excise tax arising under Section 4972 or 4980B
      of
      the Code, and no fact exists which could give rise to any such liability; (viii)
      neither Borrower nor any member of the Controlled Group nor any fiduciary of,
      nor any trustee to, any Plan, has engaged in a “prohibited transaction”
described in Section 406 of the ERISA or Section 4975 of the Code nor taken
      any
      action which would constitute or result in a Termination Event with respect
      to
      any such Plan which is subject to ERISA; (ix) Borrower and each member of the
      Controlled Group has made all contributions due and payable with respect to
      each
      Plan; (x) there exists no event described in Section 4043(b) of ERISA, for
      which
      the thirty (30) day notice period has not been waived; (xi) neither Borrower
      nor
      any member of the Controlled Group has any fiduciary responsibility for
      investments with respect to any plan existing for the benefit of persons other
      than employees or former employees of Borrower and any member of the Controlled
      Group; (xii) neither Borrower nor any member of the Controlled Group maintains
      or contributes to any Plan which provides health, accident or life insurance
      benefits to former employees, their spouses or dependents, other than in
      accordance with Section 4980B of the Code; (xiii) neither Borrower nor any
      member of the Controlled Group has withdrawn, completely or partially, from
      any
      Multiemployer Plan so as to incur liability under the Multiemployer Pension
      Plan
      Amendments Act of 1980 and there exists no fact which would reasonably be
      expected to result in any such liability; and (xiv) no Plan fiduciary (as
      defined in Section 3(21) of ERISA) has any liability for breach of fiduciary
      duty or for any failure in connection with the administration or investment
      of
      the assets of a Plan.

     

    
      
        
        

      

      
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    5.9. Patents,
      Trademarks, Copyrights and Licenses.
      All
      patents, patent applications, trademarks, trademark applications, service marks,
      service mark applications, copyrights, copyright applications, design rights,
      trade names, assumed names, trade secrets and licenses owned or utilized by
      Borrower are set forth on Schedule 5.9, are valid and have been duly registered
      or filed with all appropriate Governmental Bodies and constitute all of the
      intellectual property rights which are necessary for the operation of its
      business; there is no objection to or pending challenge to the validity of
      any
      such patent, trademark, copyright, design rights, trade name, trade secret
      or
      license and Borrower is not aware of any grounds for any challenge, except
      as
      set forth in Schedule 5.9 hereto. Each patent, patent application, patent
      license, trademark, trademark application, trademark license, service mark,
      service mark application, service mark license, design rights, copyright,
      copyright application and copyright license owned or held by Borrower and all
      trade secrets used by Borrower consist of original material or property
      developed by Borrower or was lawfully acquired by Borrower from the proper
      and
      lawful owner thereof. Each of such items has been maintained so as to preserve
      the value thereof from the date of creation or acquisition thereof.

     

    5.10. Licenses
      and Permits.
      Except
      as
      set forth in Schedule 5.10, Borrower (a) is in compliance with and (b) has
      procured and is now in possession of, all material licenses or permits required
      by any applicable federal, state, provincial or local law, rule or regulation
      for the operation of its business in each jurisdiction wherein it is now
      conducting or proposes to conduct business and where the failure to procure
      such
      licenses or permits could have a Material Adverse Effect.

     

    
      
        
        

      

      
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    5.11. Default
      of Indebtedness.
      Borrower
      is not in default in the payment of the principal of or interest on any
      Indebtedness or under any instrument or agreement under or subject to which
      any
      Indebtedness has been issued and no event has occurred under the provisions
      of
      any such instrument or agreement which with or without the lapse of time or
      the
      giving of notice, or both, constitutes or would constitute an event of default
      thereunder.

     

    5.12. No
      Default.
      Borrower
      is not in default in the payment or performance of any of its contractual
      obligations and no Default has occurred.

     

    5.13. No
      Burdensome Restrictions.
      Borrower
      is not party to any contract or agreement the performance of which could have
      a
      Material Adverse Effect. Borrower has heretofore delivered to Agent true and
      complete copies of all material contracts to which it is a party or to which
      it
      or any of its properties is subject. Borrower has not agreed or consented to
      cause or permit in the future (upon the happening of a contingency or otherwise)
      any of its property, whether now owned or hereafter acquired, to be subject
      to a
      Lien which is not a Permitted Encumbrance.

     

    5.14. No
      Labor Disputes.
      Borrower
      is not involved in any labor dispute; there are no strikes or walkouts or union
      organization of Borrower’s employees threatened or in existence and no labor
      contract is scheduled to expire during the Term other than as set forth on
      Schedule 5.14 hereto.

     

    5.15. Margin
      Regulations.
      Borrower
      is not engaged, nor will it engage, principally or as one of its important
      activities, in the business of extending credit for the purpose of “purchasing”
or “carrying” any “margin stock” within the respective meanings of each of the
      quoted terms under Regulation U of the Board of Governors of the Federal Reserve
      System as now and from time to time hereafter in effect. No part of the proceeds
      of any Advance will be used for “purchasing” or “carrying” “margin stock” as
      defined in Regulation U of such Board of Governors.

     

    5.16. Investment
      Company Act.
      Borrower
      is not an “investment company” registered or required to be registered under the
      Investment Company Act of 1940, as amended, nor is it controlled by such a
      company.

     

    5.17. Disclosure.
      No
      representation or warranty made by Borrower in this Agreement, the Subordinated
      Loan Documentation or in any financial statement, report, certificate or any
      other document furnished in connection herewith or therewith contains any untrue
      statement of a material fact or omits to state any material fact necessary
      to
      make the statements herein or therein not misleading. There is no fact known
      to
      Borrower or which reasonably should be known to Borrower which Borrower has
      not
      disclosed to Agent in writing with respect to the transactions contemplated
      by
      the Subordinated Loan Documentation or this Agreement which could reasonably
      be
      expected to have a Material Adverse Effect.

     

    5.18. Delivery
      of Subordinated Loan Documentation.
      Agent
      has
      received complete copies of the Subordinated Loan Documentation (including
      all
      exhibits, schedules and disclosure letters referred to therein or delivered
      pursuant thereto, if any) and all amendments thereto, waivers relating thereto
      and other side letters or agreements affecting the terms thereof. None of such
      documents and agreements has been amended or supplemented, nor have any of
      the
      provisions thereof been waived, except pursuant to a written agreement or
      instrument which has heretofore been delivered to Agent.

     

    
      
        
        

      

      
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    5.19. Swaps.
      Borrower
      is not a party to, nor will it be a party to, any swap agreement whereby
      Borrower has agreed or will agree to swap interest rates or currencies unless
      same provides that damages upon termination following an event of default
      thereunder are payable on an unlimited “two-way basis” without regard to fault
      on the part of either party.

     

    5.20. Conflicting
      Agreements.
      No
      provision of any mortgage, indenture, contract, agreement, judgment, decree
      or
      order binding on Borrower or affecting the Collateral conflicts with, or
      requires any Consent which has not already been obtained to, or would in any
      way
      prevent the execution, delivery or performance of, the terms of this Agreement
      or the Other Documents.

     

    5.21. Application
      of Certain Laws and Regulations.
      Neither
      Borrower nor any Affiliate of Borrower is subject to any law, statute, rule
      or
      regulation which regulates the incurrence of any Indebtedness, including laws,
      statutes, rules or regulations relative to common or interstate carriers or
      to
      the sale of electricity, gas, steam, water, telephone, telegraph or other public
      utility services.

     

    5.22. Business
      and Property of Borrower.
      Upon
      and
      after the Closing Date, Borrower does not propose to engage in any business
      other than providing turnkey value added services to carriers, major and
      secondary equipment suppliers, tower management companies, public safety and
      enterprise projects within the communications industry and activities necessary
      to conduct the foregoing. On the Closing Date, Borrower will own all the
      property and possess all of the rights and Consents necessary for the conduct
      of
      the business of Borrower.

     

    5.23. Section
      20 Subsidiaries.
      Borrower
      does not intend to use and shall not use any portion of the proceeds of the
      Advances, directly or indirectly, to purchase during the underwriting period,
      or
      for 30 days thereafter, Ineligible Securities being underwritten by a Section
      20
      Subsidiary.

     

    5.24. Anti-Terrorism
      Laws.

     

    (a) General.
      Neither
      Borrower nor any Affiliate of Borrower is in violation of any Anti-Terrorism
      Law
      or engages in or conspires to engage in any transaction that evades or avoids,
      or has the purpose of evading or avoiding, or attempts to violate, any of the
      prohibitions set forth in any Anti-Terrorism Law.

     

    (b) Executive
      Order No. 13224.
      Neither
      Borrower nor any Affiliate of Borrower or their respective agents acting or
      benefiting in any capacity in connection with the Advances or other transactions
      hereunder, is any of the following (each a “Blocked Person”):

     

    (i) a
      Person
      that is listed in the annex to, or is otherwise subject to the provisions of,
      the Executive Order No. 13224; 

     

    (ii) a
      Person
      owned or controlled by, or acting for or on behalf of, any Person that is listed
      in the annex to, or is otherwise subject to the provisions of, the Executive
      Order No. 13224; 

     

    
      
        
        

      

      
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    (iii) a
      Person
      or entity with which any Lender is prohibited from dealing or otherwise engaging
      in any transaction by any Anti-Terrorism Law; 

     

    (iv) a
      Person
      or entity that commits, threatens or conspires to commit or supports “terrorism”
as defined in the Executive Order No. 13224; 

     

    (v) a
      Person
      or entity that is named as a “specially designated national” on the most current
      list published by the U.S. Treasury Department Office of Foreign Asset Control
      at its official website or any replacement website or other replacement official
      publication of such list, or 

     

    (vi) a
      Person
      or entity who is affiliated or associated with a Person or entity listed
      above.

     

    Neither
      Borrower or to the knowledge of Borrower, any of its agents acting in any
      capacity in connection with the Advances or other transactions hereunder (i)
      conducts any business or engages in making or receiving any contribution of
      funds, goods or services to or for the benefit of any Blocked Person, or (ii)
      deals in, or otherwise engages in any transaction relating to, any property
      or
      interests in property blocked pursuant to the Executive Order No.
      13224.

     

    5.25. Trading
      with the Enemy.
      Borrower
      has not engaged, nor does it intend to engage, in any business or activity
      prohibited by the Trading with the Enemy Act.

     

    5.26. Federal
      Securities Laws.
      Neither
      Borrower nor any of its Subsidiaries (i) is required to file periodic reports
      under the Exchange Act, (ii) has any securities registered under the Exchange
      Act or (iii) has filed a registration statement that has not yet become
      effective under the Securities Act.

     

    VI AFFIRMATIVE
      COVENANTS.

     

    Borrower
      shall, until payment in full of the Obligations and termination of this
      Agreement:

     

    6.1. Payment
      of Fees.
      Pay
      to
      Agent on demand all usual and customary fees and expenses which Agent incurs
      in
      connection with (a) the forwarding of Advance proceeds and (b) the establishment
      and maintenance of any Blocked Accounts or Depository Accounts as provided
      for
      in Section 4.15(h). Agent may, without making demand, charge Borrower’s Account
      for all such fees and expenses.

     

    6.2. Conduct
      of Business and Maintenance of Existence and Assets.
      (a)
      Conduct continuously and operate actively its business according to good
      business practices and maintain all of its properties useful or necessary in
      its
      business in good working order and condition (reasonable wear and tear excepted
      and except as may be disposed of in accordance with the terms of this
      Agreement), including all licenses, patents, copyrights, design rights, trade
      names, trade secrets and trademarks and take all actions necessary to enforce
      and protect the validity of any intellectual property right or other right
      included in the Collateral; (b) keep in full force and effect its existence
      and
      comply in all material respects with the laws and regulations governing the
      conduct of its business where the failure to do so could reasonably be expected
      to have a Material Adverse Effect; and (c) make all such reports and pay all
      such franchise and other taxes and license fees and do all such other acts
      and
      things as may be lawfully required to maintain its rights, licenses, leases,
      powers and franchises under the laws of the United States or any political
      subdivision thereof where the failure to do so could reasonably be expected
      to
      have a Material Adverse Effect.

     

    
      
        
        

      

      
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    6.3. Violations.
      Promptly
      notify Agent in writing of any violation of any law, statute, regulation or
      ordinance of any Governmental Body, or of any agency thereof, applicable to
      Borrower which could reasonably be expected to have a Material Adverse
      Effect.

     

    6.4. Government
      Receivables.
      Take
      all
      steps necessary to protect Agent’s interest in the Collateral under the Federal
      Assignment of Claims Act, the Uniform Commercial Code and all other applicable
      state or local statutes or ordinances and deliver to Agent appropriately
      endorsed, any instrument or chattel paper connected with any Receivable arising
      out of contracts between Borrower and the United States, any state or any
      department, agency or instrumentality of any of them.

     

    6.5. Financial
      Covenants.

     

    (a) Fixed
      Charge Coverage Ratio.
      Cause
      to
      be maintained at all times a Fixed Charge Coverage Ratio of not less than 1.10
      to 1.00, tested quarterly on a rolling four (4) quarter basis.

     

    6.6. Execution
      of Supplemental Instruments.
      Execute
      and deliver to Agent from time to time, upon demand, such supplemental
      agreements, statements, assignments and transfers, or instructions or documents
      relating to the Collateral, and such other instruments as Agent may reasonably
      request, in order that the full intent of this Agreement may be carried into
      effect.

     

    6.7. Payment
      of Indebtedness.
      Pay,
      discharge or otherwise satisfy at or before maturity (subject, where applicable,
      to specified grace periods and, in the case of the trade payables, to normal
      payment practices) all its obligations and liabilities of whatever nature,
      except when the failure to do so could not reasonably be expected to have a
      Material Adverse Effect or when the amount or validity thereof is currently
      being contested in good faith by appropriate proceedings and Borrower shall
      have
      provided for such reserves as Agent may reasonably deem proper and necessary,
      subject at all times to any applicable subordination arrangement in favor of
      Lenders.

     

    6.8. Standards
      of Financial Statements.
      Cause
      all
      financial statements referred to in Sections 9.7, 9.8, 9.9, 9.10, 9.11, 9.12,
      9.13 and 9.14 as to which GAAP is applicable to be complete and correct in
      all
      material respects (subject, in the case of interim financial statements, to
      normal year-end audit adjustments) and to be prepared in reasonable detail
      and
      in accordance with GAAP applied consistently throughout the periods reflected
      therein (except as concurred in by such reporting accountants or officer, as
      the
      case may be, and disclosed therein).

     

    
      
        
        

      

      
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    6.9. Federal
      Securities Laws.
      Promptly
      notify Agent in writing if Borrower or any of its Subsidiaries (i) is required
      to file periodic reports under the Exchange Act, (ii) registers any securities
      under the Exchange Act or (iii) files a registration statement under the
      Securities Act.

     

    VII NEGATIVE
      COVENANTS.

     

    Borrower
      shall not, until satisfaction in full of the Obligations and termination of
      this
      Agreement:

     

    7.1. Merger,
      Consolidation, Acquisition and Sale of Assets.

     

    (a) Enter
      into any merger, consolidation or other reorganization with or into any other
      Person or acquire all or a substantial portion of the assets or Equity Interests
      of any Person or permit any other Person to consolidate with or merge with
      it,
provided,
      however,
      that
      the Borrower may enter into any such transactions so long as (i) they do not
      exceed the sum of $15,000,000 in the aggregate, and (ii) effective as of the
      closing date of such acquisition and for the period commencing seven (7) days
      prior to the closing date through the date of the closing of such acquisition,
      the Borrower has a Minimum Undrawn Availability of at least $2,000,000 after
      giving effect to such acquisition (which shall include assets acquired by the
      Borrower with regard to such transaction solely upon completion by the Agent
      to
      it satisfaction of a field examination), and either (I) finance such with
      Advances so long as (A) the Borrower is the surviving entity after such
      transaction is completed, (B) the aggregate amount of Advances used by the
      Borrower and attributable to such transactions does not exceed $6,500,000 during
      the Term, (C) the aggregate amount of Advances used by the Borrower and
      attributable to such transactions does not exceed $3,000,000 during any
      consecutive twelve (12) month period during the Term, (D) the aggregate amount
      of any single Advance requested by the Borrower to pay for any such transactions
      does not exceed $3,000,000, (E) any Subsidiary and/or Affiliate created with
      regard to such transaction becomes a “Borrower” hereunder and under the Other
      Documents simultaneously with the closing of such transaction, (F) such
      transaction would not cause any additional Liens, encumbrances and/or judgments
      to be placed on Borrower and/or any assets of Borrower, other than Permitted
      Encumbrances, (G) no Default or Event of Default exists at the time of such
      transaction or shall be caused by such transaction, (H) the target of the
      acquisition or the business acquired as a result of such acquisition is in
      the
      same industry as the Borrower, and (I) the Borrower provides evidence reasonably
      satisfactory to the Agent that the Borrower, on a pro forma basis, will be
      in
      compliance with all of the terms and conditions set forth in this Agreement
      after giving effect to any acquisition or (II) finance such transaction without
      utilizing Advances so long as (A) the Borrower is the surviving entity after
      such transaction is completed, (B) any Subsidiary and/or Affiliate created
      with
      regard to such transaction becomes a “Borrower” hereunder and under the Other
      Documents simultaneously with the closing of such transaction, (C) such
      transaction would not cause any additional Liens, encumbrances and/or judgments
      to be placed on Borrower and/or any assets of Borrower, other than Permitted
      Encumbrances, (D) no Default or Event of Default exists at the time of such
      transaction or shall be caused by such transaction, (E) the target of the
      acquisition or the business acquired as a result of such acquisition is in
      the
      same industry as the Borrower, and (F) the Borrower provides evidence reasonably
      satisfactory to the Agent that the Borrower, on a pro forma basis, will be
      in
      compliance with all of the terms and conditions set forth in this Agreement
      after giving effect to any acquisition.

     

    
      
        
        

      

      
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    (b) Sell,
      lease, transfer or otherwise dispose of any of its properties or assets, except
      (i) dispositions of Inventory and Equipment to the extent expressly permitted
      by
      Section 4.3 and (ii) any other sales or dispositions expressly permitted by
      this
      Agreement.

     

    7.2. Creation
      of Liens.
      Create
      or
      suffer to exist any Lien or transfer upon or against any of its property or
      assets now owned or hereafter acquired, except Permitted
      Encumbrances.

     

    7.3. Guarantees.
      Become
      liable upon the obligations or liabilities of any Person by assumption,
      endorsement or guaranty thereof or otherwise (other than to Lenders) except
      (a)
      as disclosed on Schedule 7.3, (b) guarantees made in the Ordinary Course of
      Business up to an aggregate amount of $100,000 and (c) the endorsement of checks
      in the Ordinary Course of Business.

     

    7.4. Investments.
      Purchase
      or acquire obligations or Equity Interests of, or any other interest in, any
      Person, except (a) obligations issued or guaranteed by the United States of
      America or any agency thereof, (b) commercial paper with maturities of not
      more
      than 180 days and a published rating of not less than A-1 or P-1 (or the
      equivalent rating), (c) certificates of time deposit and bankers’ acceptances
      having maturities of not more than 180 days and repurchase agreements backed
      by
      United States government securities of a commercial bank if (i) such bank has
      a
      combined capital and surplus of at least $500,000,000, or (ii) its debt
      obligations, or those of a holding company of which it is a Subsidiary, are
      rated not less than A (or the equivalent rating) by a nationally recognized
      investment rating agency, (d) U.S. money market funds that invest solely in
      obligations issued or guaranteed by the United States of America or an agency
      thereof, and (e) except as permitted by Section 7.1.

     

    7.5. Loans.
      Make
      advances, loans or extensions of credit to any Person, including any Parent,
      Subsidiary or Affiliate except with respect to (a) the extension of commercial
      trade credit in connection with the sale of Inventory in the Ordinary Course
      of
      Business and (b) loans to its employees in the Ordinary Course of Business
      not
      to exceed the aggregate amount of $100,000 at any time outstanding.

     

    7.6. Capital
      Expenditures.
      Contract
      for, purchase or make any expenditure or commitments for Capital Expenditures
      in
      any fiscal year in an aggregate amount in excess of $2,500,000.

     

    7.7. Dividends.
      Declare,
      pay or make any dividend or distribution (other than dividends or distributions
      payable in its stock, or split-ups or reclassifications of its stock) or apply
      any of its funds, property or assets to the purchase, redemption or other
      retirement of any common or preferred stock, or of any options to purchase
      or
      acquire any such shares of common or preferred stock of Borrower except,
      however, provided that no Default or Event of Default has occurred, the Borrower
      may declare, pay, or make any dividend or distribution provided that such
      dividend or distribution does not exceed amounts required by the Guarantor
      to
      (i) pay its taxes, (ii) make interest payments to the Subordinated Lender,
      or
      (iii) pay expenses of the Guarantor in amounts not to exceed $250,000 per
      annum.

     

    7.8. Indebtedness.
      Create,
      incur, assume or suffer to exist any Indebtedness (exclusive of trade debt)
      except in respect of (i) Indebtedness to Lenders; (ii) Indebtedness incurred
      for
      Capital Expenditures permitted under Section 7.6 hereof; (iii) Indebtedness
      due under the Subordinated Loan Documentation, (iv) Indebtedness incurred with
      respect to transactions permitted pursuant to Section 7.1 provided that any
      such
      Indebtedness is unsecured and subordinate to the Obligations in form and
      substance satisfactory to the Agent, and provided further such Indebtedness
      does
      not exceed $3,000,000 for any single transaction, nor $7,000,000 in the
      aggregate, and (v) any Indebtedness related to a Permitted
      Encumbrance.

     

    
      
        
        

      

      
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    7.9. Nature
      of Business.
      Substantially
      change the nature of the business in which it is presently engaged, nor except
      as specifically permitted hereby purchase or invest, directly or indirectly,
      in
      any assets or property other than in the Ordinary Course of Business for assets
      or property which are useful in, necessary for and are to be used in its
      business as presently conducted.

     

    7.10. Transactions
      with Affiliates.
      Directly
      or indirectly, purchase, acquire or lease any property from, or sell, transfer
      or lease any property to, or otherwise enter into any transaction or deal with,
      any Affiliate, except transactions disclosed to the Agent, which are in the
      Ordinary Course of Business, on an arm’s-length basis on terms and conditions no
      less favorable than terms and conditions which would have been obtainable from
      a
      Person other than an Affiliate.

     

    7.11. Leases.
      Enter
      as
      lessee into any lease arrangement for real or personal property (unless
      capitalized and permitted under Section 7.6 hereof) if after giving effect
      thereto, aggregate annual rental payments for all leased property would exceed
      $3,500,000 with respect to real property leases or $4,000,000 with respect
      to
      personal property leases in any one fiscal year in the aggregate for
      Borrower.

     

    7.12. Subsidiaries.

     

    (a) Form
      any
      Subsidiary unless (i) such Subsidiary expressly joins in this Agreement as
      a
      borrower and becomes jointly and severally liable for the obligations of
      Borrower hereunder, under the Note and under any other agreement between
      Borrower and Lenders and (ii) Agent shall have received all documents, including
      legal opinions, it may reasonably require to establish compliance with each
      of
      the foregoing conditions.

     

    (b) Enter
      into any partnership, joint venture or similar arrangement.

     

    7.13. Fiscal
      Year and Accounting Changes.
      Change
      its fiscal year from June 30th
      or make
      any significant change (i) in accounting treatment and reporting practices
      except as required by GAAP or (ii) in tax reporting treatment except as
      required by law.

     

    7.14. Pledge
      of Credit.
      Now
      or
      hereafter pledge Agent’s or any Lender’s credit on any purchases or for any
      purpose whatsoever or use any portion of any Advance in or for any business
      other than Borrower’s business as conducted on the date of this
      Agreement.

     

    7.15. Amendment
      of Articles of Incorporation, By-Laws.
      Amend,
      modify or waive any term or material provision of its Articles of Incorporation
      or By-Laws unless required by law.

     

    7.16. Compliance
      with ERISA.
      (i)
      (x)
      Maintain, or permit any member of the Controlled Group to maintain, or (y)
      become obligated to contribute, or permit any member of the Controlled Group
      to
      become obligated to contribute, to any Plan, other than those Plans disclosed
      on
      Schedule 5.8(d), (ii) engage, or permit any member of the Controlled Group
      to
      engage, in any non-exempt “prohibited transaction”, as that term is defined in
      section 406 of ERISA and Section 4975 of the Code, (iii) incur, or permit any
      member of the Controlled Group to incur, any “accumulated funding deficiency”,
      as that term is defined in Section 302 of ERISA or Section 412 of the Code,
      (iv)
      terminate, or permit any member of the Controlled Group to terminate, any Plan
      where such event could result in any liability of Borrower or any member of
      the
      Controlled Group or the imposition of a lien on the property of Borrower or
      any
      member of the Controlled Group pursuant to Section 4068 of ERISA, (v) assume,
      or
      permit any member of the Controlled Group to assume, any obligation to
      contribute to any Multiemployer Plan not disclosed on Schedule 5.8(d), (vi)
      incur, or permit any member of the Controlled Group to incur, any withdrawal
      liability to any Multiemployer Plan; (vii) fail promptly to notify Agent of
      the
      occurrence of any Termination Event, (viii) fail to comply, or permit a member
      of the Controlled Group to fail to comply, with the requirements of ERISA or
      the
      Code or other Applicable Laws in respect of any Plan, (ix) fail to meet, or
      permit any member of the Controlled Group to fail to meet, all minimum funding
      requirements under ERISA or the Code or postpone or delay or allow any member
      of
      the Controlled Group to postpone or delay any funding requirement with respect
      of any Plan.

     

    
      
        
        

      

      
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    7.17. Prepayment
      of Indebtedness.
      Except
      as
      permitted pursuant to Section 7.21 hereof, at any time, directly or indirectly,
      prepay any Indebtedness (other than to Lenders), or repurchase, redeem, retire
      or otherwise acquire any Indebtedness of Borrower.

     

    7.18. Anti-Terrorism
      Laws.
      Borrower
      shall not, until satisfaction in full of the Obligations and termination of
      this
      Agreement, nor shall it permit any Affiliate or agent to:

     

    (a) Conduct
      any business or engage in any transaction or dealing with any Blocked Person,
      including the making or receiving any contribution of funds, goods or services
      to or for the benefit of any Blocked Person.

     

    (b) Deal
      in,
      or otherwise engage in any transaction relating to, any property or interests
      in
      property blocked pursuant to the Executive Order No. 13224. 

     

    (c) Engage
      in
      or conspire to engage in any transaction that evades or avoids, or has the
      purpose of evading or avoiding, or attempts to violate, any of the prohibitions
      set forth in the Executive Order No. 13224, the USA PATRIOT Act or any other
      Anti-Terrorism Law. Borrower shall deliver to Lenders any certification or
      other
      evidence requested from time to time by any Lender in its sole discretion,
      confirming Borrower’s compliance with this Section.

     

    7.19. Membership/Partnership
      Interests.
      Elect
      to
      treat or permit any of its Subsidiaries to (x) treat its limited liability
      company membership interests or partnership interests, as the case may be,
      as
      securities as contemplated by the definition of “security” in Section 8-102(15)
      and by Section 8-103 of Article 8 of Uniform Commercial Code or (y) certificate
      its limited liability company membership interests or partnership interests,
      as
      the case may be.

     

    
      
        
        

      

      
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    7.20. Trading
      with the Enemy Act.
      Engage
      in
      any business or activity in violation of the Trading with the Enemy
      Act.

     

    7.21. Subordinated
      Note.
      At
      any
      time, directly or indirectly, pay, prepay, repurchase, redeem, retire or
      otherwise acquire, or make any payment on account of any principal of, interest
      on or premium payable in connection with the repayment or redemption of the
      Subordinated Loan Documentation, provided,
      however,
      the
      Borrower may
      make
      (i) scheduled payments of interest pursuant to the Subordinated Loan
      Documentation so long as at the time of each such interest payment no event
      or
      condition which constitutes or which, with notice or the lapse of time, or
      both,
      would constitute a Default or an Event of Default shall have occurred and be
      continuing or be caused by any such interest payment and (ii) repayment in
      full
      of all interest and principal on the maturity date of the Subordinated Note
      so
      long as (A) at the time of repayment in full, and for the period commencing
      seven days prior to such repayment through the date of such repayment, the
      Borrower has a minimum Undrawn Availability of at least $2,000,000 after giving
      effect to such repayment in full and (B) at the time of such repayment in full
      no event or condition which constitutes or which, with notice or the lapse
      of
      time, or both, would constitute a Default or an Event of Default shall have
      occurred and be continuing or be caused by any such repayment in
      full.

     

    7.22. Other
      Agreements.
      Enter
      into any material amendment, waiver or modification of the Subordinated Loan
      Documentation, the documentation evidencing the J&J Leasing Indebtedness or
      any related agreements.

     

    VIII CONDITIONS
      PRECEDENT.

     

    8.1. Conditions
      to Initial Advances.
      The
      agreement of Lenders to make the initial Advances requested to be made on the
      Closing Date is subject to the satisfaction, or waiver by Agent, immediately
      prior to or concurrently with the making of such Advances, of the following
      conditions precedent:

     

    (a) Note.
      Agent
      shall have received the Note duly executed and delivered by an authorized
      officer of Borrower;

     

    (b) Filings,
      Registrations and Recordings.
      Each
      document (including any Uniform Commercial Code financing statement) required
      by
      this Agreement, any related agreement or under law or reasonably requested
      by
      the Agent to be filed, registered or recorded in order to create, in favor
      of
      Agent, a perfected security interest in or lien upon the Collateral shall have
      been properly filed, registered or recorded in each jurisdiction in which the
      filing, registration or recordation thereof is so required or requested, and
      Agent shall have received an acknowledgment copy, or other evidence satisfactory
      to it, of each such filing, registration or recordation and satisfactory
      evidence of the payment of any necessary fee, tax or expense relating
      thereto;

     

    (c) Corporate
      Proceedings of Borrower.
      Agent
      shall have received a copy of the resolutions in form and substance reasonably
      satisfactory to Agent, of the Board of Directors of Borrower authorizing (i)
      the
      execution, delivery and performance of this Agreement, the Note, any related
      agreements, the Other Documents, the Subordinated Loan Documentation
      (collectively the “Documents”) and (ii) the granting by Borrower of the security
      interests in and liens upon the Collateral in each case certified by the
      Secretary or an Assistant Secretary of Borrower as of the Closing Date; and,
      such certificate shall state that the resolutions thereby certified have not
      been amended, modified, revoked or rescinded as of the date of such
      certificate;

     

    
      
        
        

      

      
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    (d) Incumbency
      Certificates of Borrower.
      Agent
      shall have received a certificate of the Secretary or an Assistant Secretary
      of
      Borrower, dated the Closing Date, as to the incumbency and signature of the
      officers of Borrower executing this Agreement, the Other Documents, any
      certificate or other documents to be delivered by it pursuant hereto, together
      with evidence of the incumbency of such Secretary or Assistant
      Secretary;

     

    (e) Corporate
      Proceedings of Guarantor.
      Agent
      shall have received a copy of the resolutions in form and substance reasonably
      satisfactory to Agent, of the Board of Directors of Guarantor authorizing the
      execution, delivery and performance of the Guaranty and each Other Document
      to
      which it is a party certified by the Secretary or an Assistant Secretary of
      Guarantor as of the Closing Date; and, such certificate shall state that the
      resolutions thereby certified have not been amended, modified, revoked or
      rescinded as of the date of such certificate;

     

    (f) Incumbency
      Certificates of Guarantor.
      Agent
      shall have received a certificate of the Secretary or an Assistant Secretary
      of
      Guarantor, dated the Closing Date, as to the incumbency and signature of the
      officers of Guarantor executing this Agreement, any certificate or other
      documents to be delivered by it pursuant hereto, together with evidence of
      the
      incumbency of such Secretary or Assistant Secretary;

     

    (g) Certificates.
      Agent
      shall have received a copy of the Articles or Certificate of Incorporation
      of
      Borrower and each Guarantor, and all amendments thereto, certified by the
      Secretary of State or other appropriate official of its jurisdiction of
      incorporation together with copies of the By-Laws of Borrower and Guarantor
      and
      all agreements of Borrower’s and Guarantor’s shareholders certified as accurate
      and complete by the Secretary of Borrower and Guarantor;

     

    (h) Good
      Standing Certificates.
      Agent
      shall have received good standing certificates for Borrower and Guarantor dated
      not more than 30 days prior to the Closing Date, issued by the Secretary of
      State or other appropriate official of Borrower’s and Guarantor’s jurisdiction
      of incorporation and each jurisdiction where the conduct of Borrower’s and
      Guarantor’s business activities or the ownership of its properties necessitates
      qualification;

     

    (i) Legal
      Opinion.
      Agent
      shall have received the executed legal opinion of Reger Rizzo & Darnall, LLP
      in form and substance satisfactory to Agent which shall cover such matters
      incident to the transactions contemplated by this Agreement, the Note, the
      Other
      Documents, the Subordinated Loan Documentation and related agreements as Agent
      may reasonably require and Borrower hereby authorizes and directs such counsel
      to deliver such opinions to Agent and Lenders;

     

    (j) No
      Litigation.
      (i)
      No
      litigation, investigation or proceeding before or by any arbitrator or
      Governmental Body shall be continuing or threatened against Borrower or against
      the officers or directors of Borrower (A) in connection with this Agreement,
      the
      Other Documents, the Subordinated Loan Documents or any of the transactions
      contemplated thereby and which, in the reasonable opinion of Agent, is deemed
      material or (B) which could, in the reasonable opinion of Agent, have a Material
      Adverse Effect; and (ii) no injunction, writ, restraining order or other order
      of any nature materially adverse to Borrower or the conduct of its business
      or
      inconsistent with the due consummation of the Transactions shall have been
      issued by any Governmental Body. Agent shall have received a summary of all
      existing litigation regarding the Borrower;

     

    
      
        
        

      

      
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    (k) Financial
      Condition Certificates.
      Agent
      shall have received an executed Financial Condition Certificate in the form
      of
      Exhibit 8.1(k).

     

    (l) Collateral
      Examination.
      Agent
      shall have completed Collateral examinations and received appraisals, the
      results of which shall be satisfactory in form and substance to Lenders, of
      the
      Receivables, Inventory, General Intangibles, Real Property, Leasehold Interest
      and Equipment of Borrower and all books and records in connection
      therewith;

     

    (m) Fees.
      Agent
      shall have received all fees payable to Agent and Lenders on or prior to the
      Closing Date hereunder, including pursuant to Article III hereof; 

     

    (n) Financial
      Statements.
      Agent
      shall have received a copy of the Borrower’s most recent financial statements
      for fiscal years 2004, 2005 and 2006 and federal income tax returns and income
      tax reports (if any) as well as annual financial statements for the fiscal
      years
      2005 and 2006, which shall be satisfactory in all respects to the
      Agent;

     

    (o) Subordinated
      Loan Documents.
      Agent
      shall have received final executed copies of the Subordinated Loan Documentation
      and all related agreements, documents and instruments as in effect on the
      Closing Date all of which shall be satisfactory in form and substance to
      Agent;

     

    (p) ERISA
      Compliance.
      Agent
      shall have received in form and substance satisfactory to Agent evidence that
      Borrower is in compliance with ERISA as required in Section 7.16 herein along
      with a certificate from Borrower’s accountant, attorney or actuary delineating
      all existing pension and/or profit sharing plans, if any;

     

    (q) Insurance.
      Agent
      shall have received in form and substance satisfactory to Agent, certified
      copies of Borrower’s casualty insurance policies or, at Agent’s option, evidence
      of same, together with loss payable endorsements on Agent’s standard form of
      loss payee endorsement naming Agent as lender loss payee, and certified copies
      of Borrower’s liability insurance policies, together with endorsements naming
      Agent as an additional insured;

     

    (r) Fictitious,
      Assumed or Alternate Names.
      Agent
      shall have received certified copies of any fictitious, assumed or alternate
      names of the Borrower;

     

    (s) Other
      Documents.
      Agent
      shall have received the executed Other Documents, all in form and substance
      satisfactory to Agent;

     

    
      
        
        

      

      
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    (t) Payment
      Instructions.
      Agent
      shall have received written instructions from Borrower directing the application
      of proceeds of the initial Advances made pursuant to this Agreement;

     

    (u) Blocked
      Accounts.
      Agent
      shall have received duly executed agreements establishing the Blocked Accounts
      or Depository Accounts with financial institutions acceptable to Agent for
      the
      collection or servicing of the Receivables and proceeds of the Collateral;

     

    (v) Consents.
      Agent
      shall have received any and all Consents necessary to permit the effectuation
      of
      the transactions contemplated by this Agreement and the Other Documents; and,
      Agent shall have received such Consents and waivers of such third parties as
      might assert claims with respect to the Collateral, as Agent and its counsel
      shall deem necessary;

     

    (w) No
      Adverse Material Change.
      (i)
      since
      December 31, 2007, there shall not have occurred any event, condition or state
      of facts which could reasonably be expected to have a Material Adverse Effect
      and (ii) no representations made or information supplied to Agent or Lenders
      shall have been proven to be inaccurate or misleading in any material
      respect;

     

    (x) Leasehold
      Agreements.
      Agent
      shall have received landlord agreements satisfactory to Agent with respect
      to
      the Borrower’s chief executive office;

     

    (y) Projections.
      Agent
      shall have received monthly and annual projections of the Borrower for the
      immediately succeeding three (3) fiscal years demonstrating Borrower's’ ability
      to make payments under this Agreement;

     

    (z) Contract
      Review.
      Agent
      shall have received copies of all material contracts of Borrower including,
      without limitation, leases, union contracts, labor contracts, vendor supply
      contracts, management agreements, option agreements, warrant agreements, royalty
      agreements, member agreements, purchase agreements, warranty agreements,
      employment agreements, license agreements and distributorship agreements and
      such contracts and agreements shall be satisfactory in all reasonable respects
      to Agent;

     

    (aa) Operating
      Accounts.
      Agent
      shall have received evidence that the Borrower has established and is
      maintaining demand depository accounts with the Agent;

     

    (bb) Searches.
      Agent
      shall have received UCC searches, Federal and State Litigation searches, Upper
      Court and Local Judgment searches, franchise tax searches, bankruptcy searches,
      Federal and State Tax Lien searches and any other Lien searches run against
      the
      names of the Borrower as well as any previous, alternate and fictitious names,
      and against the names of all entities which were acquired by or merged into
      the
      Borrower, or orders of applicable bankruptcy courts reflecting lien releases
      (as
      applicable), showing no existing security interests in or Liens on the
      Collateral other than Permitted Encumbrances and other Liens permitted by the
      Agent;

     

    (cc) Intellectual
      Property.
      Agent
      shall have received a list of intellectual property of the Borrower including
      trademarks and trademark applications, patents and patent applications,
      copyrights and copyright applications, together with a search/abstract relating
      to the same;

     

    
      
        
        

      

      
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    (dd) Closing
      Certificate.
      Agent
      shall have received a closing certificate signed by the Chief Financial Officer
      of Borrower dated as of the date hereof, stating that (i) all representations
      and warranties set forth in this Agreement and the Other Documents are true
      and
      correct on and as of such date, (ii) Borrower is on such date in compliance
      with
      all the terms and provisions set forth in this Agreement and the Other Documents
      and (iii) on such date no Default or Event of Default has occurred or is
      continuing;

     

    (ee) Borrowing
      Base.
      Agent
      shall have received a Borrowing Base Certificate from Borrower evidencing that
      the Borrower will have a minimum aggregate Undrawn Availability of at least
      $2,500,000 at closing (after all fees and expenses and subtraction of trade
      payables 60 days or more past due);

     

    (ff) Review
      of Records.
      

     

    Agent
      shall have reviewed to its satisfaction all of Borrower’s books and
      records;

     

    (gg) Privity
      Letter.
      

     

    Agent
      shall have received a privity letter from Borrower’s accountant authorizing the
      Agent to rely on the financial statements and other documentation prepared
      by
      such accountant;

     

    (hh) Existing
      Indebtedness.
      

     

    Agent
      shall have received a copy of documentation relating to the debt of the
      Borrower, including promissory notes, security agreements, etc. including,
      specifically, a certain promissory note and security agreement, mortgage, etc.
      issued by the Borrower in favor of J & J Leasing Partnership;

     

    (ii) Field
      Audit.
      

     

    Agent
      shall complete an asset based field audit as well as a field examination, both
      to the satisfaction of the Agent;

     

    (jj) Compliance
      with Laws.
      Agent
      shall be reasonably satisfied that Borrower is in compliance with all pertinent
      federal, state, local or territorial regulations, including those with respect
      to the Federal Occupational Safety and Health Act, the Environmental Protection
      Act, ERISA and the Trading with the Enemy Act; and

     

    (kk) Sales
      Tax Obligation.
      Receipt
      and review by Agent of all documentation with regard to certain outstanding
      sales tax obligations of the Borrower in the approximate amount of $1,800,000
      along with documentation evidencing any and all negotiations with regard
      thereto;

     

    (ll) Security
      Interest Issues.
      Receipt
      and review by Agent of all documentation with regard to Collateral security
      interest issues concerning materialmen’s, sub-contractors and suppliers’
lien;

     

    (mm) Prefund
      Exam.
      Satisfactory performance by Agent of prefund exam which includes an analysis
      of
      billings in excess of costs in earnings to ascertain whether a reserve for
      a
      portion of such category needs to be implemented prior to closing;

     

    
      
        
        

      

      
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    (nn) Other.
      All
      corporate and other proceedings, and all documents, instruments and other legal
      matters in connection with the Transactions shall be reasonably satisfactory
      in
      form and substance to Agent and its counsel. 

     

    8.2. Conditions
      to Each Advance.
      The
      agreement of Lenders to make any Advance requested to be made on any date
      (including the initial Advance), is subject to the satisfaction of the following
      conditions precedent as of the date such Advance is made:

     

    (a) Representations
      and Warranties.
      Each
      of
      the representations and warranties made by Borrower in or pursuant to this
      Agreement, the Other Documents and any related agreements to which it is a
      party, and each of the representations and warranties contained in any
      certificate, document or financial or other statement furnished at any time
      under or in connection with this Agreement, the Other Documents or any related
      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
      Event
      of Default or Default shall have occurred and be continuing on such date, or
      would exist after giving effect to the Advances requested to be made, on such
      date; provided, however that Agent, in its sole discretion, may continue to
      make
      Advances notwithstanding the existence of an Event of Default or Default and
      that any Advances so made shall not be deemed a waiver of any such Event of
      Default or Default; and

     

    (c) Maximum
      Advances.
      In
      the
      case of any type of Advance requested to be made, after giving effect thereto,
      the aggregate amount of such type of Advance shall not exceed the maximum amount
      of such type of Advance permitted under this Agreement.

     

    Each
      request for an Advance by Borrower hereunder shall constitute a representation
      and warranty by Borrower as of the date of such Advance that the conditions
      contained in this subsection shall have been satisfied.

     

    IX INFORMATION
      AS TO BORROWERS.

     

    Borrower
      shall, until satisfaction in full of the Obligations and the termination of
      this
      Agreement:

     

    9.1. Disclosure
      of Material Matters.
      Immediately
      upon learning thereof, report to Agent all matters materially affecting the
      value, enforceability or collectibility of any portion of the Collateral,
      including Borrower’s reclamation or repossession of, or the return to Borrower
      of, a material amount of goods or claims or disputes asserted by any Customer
      or
      other obligor. 

     

    9.2. Schedules.
      Deliver
      to Agent on or before (I) Wednesday of each week as and for the immediately
      preceding week a list of all sales, cash remittances, credits and collection
      reports in form and substance satisfactory to Agent; and (II) the thirtieth
      (30th
      ) day of
      each month as and for the prior month (a) accounts receivable ageings inclusive
      of reconciliations to the general ledger, (b) accounts payable schedules
      inclusive of reconciliations to the general ledger, (c) Eligible Unbilled
      Receivables and Eligible Work-in-Process Receivables, (d) monthly gross margin
      report of Borrower in form and substance satisfactory to the Agent, and (e)
      a
      Borrowing Base Certificate in form and substance satisfactory to Agent (which
      shall be calculated as of the last day of the prior month and which shall not
      be
      binding upon Agent or restrictive of Agent's rights under this Agreement).
      In
      addition, Borrower will deliver to Agent at such intervals as Agent may require:
      (i) confirmatory assignment schedules, (ii) copies of Customer’s
      invoices, (iii) evidence of shipment or delivery, and (iv) such
      further schedules, documents and/or information regarding the Collateral as
      Agent may require including trial balances and test verifications. Agent shall
      have the right to confirm and verify all Receivables by any manner and through
      any medium it considers advisable and do whatever it may deem reasonably
      necessary to protect its interests hereunder. The items to be provided under
      this Section are to be in form satisfactory to Agent and executed by Borrower
      and delivered to Agent from time to time solely for Agent’s convenience in
      maintaining records of the Collateral, and Borrower’s failure to deliver any of
      such items to Agent shall not affect, terminate, modify or otherwise limit
      Agent’s Lien with respect to the Collateral.

     

    
      
        
        

      

      
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    9.3. Environmental
      Reports.
      Furnish
      Agent, concurrently with the delivery of the financial statements referred
      to in
      Sections 9.7 and 9.8, with a certificate signed by the President of Borrower
      stating, to the best of his knowledge, that Borrower is in compliance in all
      material respects with all federal, state and local Environmental Laws. To
      the
      extent Borrower is not in compliance with the foregoing laws, the certificate
      shall set forth with specificity all areas of non-compliance and the proposed
      action Borrower will implement in order to achieve full compliance.

     

    9.4. Litigation.
      Promptly
      notify Agent in writing of any claim, litigation, suit or administrative
      proceeding affecting Borrower or any Guarantor, whether or not the claim is
      covered by insurance, and of any litigation, suit or administrative proceeding,
      which in any such case affects the Collateral or which could reasonably be
      expected to have a Material Adverse Effect.

     

    9.5. Material
      Occurrences.
      Promptly
      notify Agent in writing upon the occurrence of (a) any Event of Default or
      Default; (b) any event of default under the Subordinated Loan Documentation;
      (c)
      any event which with the giving of notice or lapse of time, or both, would
      constitute an event of default under the Subordinated Loan Documentation; (d)
      any event, development or circumstance whereby any financial statements or
      other
      reports furnished to Agent fail in any material respect to present fairly,
      in
      accordance with GAAP consistently applied, the financial condition or operating
      results of Borrower as of the date of such statements; (e) any accumulated
      retirement plan funding deficiency which, if such deficiency continued for
      two
      plan years and was not corrected as provided in Section 4971 of the Code, could
      subject Borrower to a tax imposed by Section 4971 of the Code; (f) each and
      every default by Borrower which might result in the acceleration of the maturity
      of any Indebtedness, including the names and addresses of the holders of such
      Indebtedness with respect to which there is a default existing or with respect
      to which the maturity has been or could be accelerated, and the amount of such
      Indebtedness; and (g) any other development in the business or affairs of
      Borrower or any Guarantor, which could reasonably be expected to have a Material
      Adverse Effect; in each case describing the nature thereof and the action
      Borrower propose to take with respect thereto.

     

    9.6. Government
      Receivables.
      Notify
      Agent immediately if any of its Receivables in excess of $250,000 in the
      aggregate arise out of contracts between Borrower and the United States, any
      state, or any department, agency or instrumentality of any of them.

     

    
      
        
        

      

      
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    9.7. Annual
      Financial Statements.
      Furnish
      Agent within one hundred twenty (120) days after the end of each fiscal year
      of
      Borrower, financial statements of Borrower and Berliner on a consolidated basis
      including, but not limited to, statements of income and stockholders’ equity and
      cash flow from the beginning of the current fiscal year to the end of such
      fiscal year and the balance sheet as at the end of such fiscal year, all
      prepared in accordance with GAAP applied on a basis consistent with prior
      practices, and in reasonable detail and reported upon without qualification
      by
      an independent certified public accounting firm selected by Borrower and
      satisfactory to Agent (the “Accountants”). The accounting firm of BDO Seidman is
      acceptable to the Agent. The report of the Accountants shall be accompanied
      by a
      statement of the Accountants certifying that (i) they have caused this Agreement
      to be reviewed, (ii) in making the examination upon which such report was based
      either no information came to their attention which to their knowledge
      constituted an Event of Default or a Default under this Agreement or any related
      agreement or, if such information came to their attention, specifying any such
      Default or Event of Default, its nature, when it occurred and whether it is
      continuing, and such report shall contain or have appended thereto calculations
      which set forth Borrower’s compliance with the requirements or restrictions
      imposed by Sections 6.5, 7.4, 7.5, 7.6, 7.7, 7.8 and 7.11 hereof. In addition,
      the reports shall be accompanied by a Compliance Certificate.

     

    9.8. Quarterly
      Financial Statements.
      Furnish
      Agent within forty-five (45) days after the end of each fiscal quarter, an
      unaudited balance sheet of Borrower and Berliner on a consolidated basis and
      unaudited statements of income and stockholders’ equity and cash flow of
      Borrower and Berliner on a consolidated basis reflecting results of operations
      from the beginning of the fiscal year to the end of such quarter and for such
      quarter, prepared on a basis consistent with prior practices and complete and
      correct in all material respects, subject to normal and recurring year end
      adjustments that individually and in the aggregate are not material to
      Borrower’s or Berliner’s business. The reports shall be accompanied by a
      Compliance Certificate.

     

    9.9. Monthly
      Financial Statements.
      Furnish
      Agent within thirty (30) days after the end of each month, unaudited statements
      of income of Borrower reflecting results of operations from the beginning of
      the
      fiscal year to the end of such month and for such month, prepared on a basis
      consistent with prior practices and complete and correct in all material
      respects, subject to normal and recurring year end adjustments that individually
      and in the aggregate are not material to Borrower’s business. The reports shall
      be accompanied by a Compliance Certificate.

     

    9.10. Other
      Reports.
      Furnish
      Agent as soon as available, but in any event within ten (10) days after the
      issuance thereof, (i) with copies of such financial statements, reports and
      returns as Borrower shall send to its stockholders and (ii) copies of all
      notices, reports, financial statements and other materials sent pursuant to
      the
      Subordinated Loan Documentation.

     

    9.11. Additional
      Information.
      Furnish
      Agent with such additional information as Agent shall reasonably request in
      order to enable Agent to determine whether the terms, covenants, provisions
      and
      conditions of this Agreement and the Note have been complied with by Borrower
      including, without the necessity of any request by Agent, (a) copies of all
      environmental audits and reviews, (b) at least fifteen (15) days prior thereto,
      notice of Borrower’s opening of any new office or place of business or
      Borrower’s closing of any existing office or place of business, and (c) promptly
      upon Borrower’s learning thereof, notice of any labor dispute to which Borrower
      may become a party, any strikes or walkouts relating to any of its plants or
      other facilities, and the expiration of any labor contract to which Borrower
      is
      a party or by which Borrower is bound.

     

    
      
        
        

      

      
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    9.12. Projected
      Operating Budget.
      Furnish
      Agent, no later than ninety (90) days following the beginning of Borrower’s
      fiscal years commencing with fiscal year 2009, a month by month projected
      operating budget and cash flow of Borrower for such fiscal year (including
      an
      income statement for each month and a balance sheet as at the end of the last
      month in each fiscal quarter), such projections to be accompanied by a
      certificate signed by the President or Chief Financial Officer of Borrower
      to
      the effect that such projections have been prepared on the basis of sound
      financial planning practice consistent with past budgets and financial
      statements and that such officer has no reason to question the reasonableness
      of
      any material assumptions on which such projections were prepared.

     

    9.13. Variances
      From Operating Budget.
      Furnish
      Agent quarterly written reports summarizing all material variances from budgets
      submitted by Borrower pursuant to Section 9.12 and a discussion and analysis
      by
      management with respect to such variances.

     

    9.14. Notice
      of Suits, Adverse Events.
      Furnish
      Agent with prompt written notice of (i) any lapse or other termination of any
      Consent issued to Borrower by any Governmental Body or any other Person that
      is
      material to the operation of Borrower’s business, (ii) any refusal by any
      Governmental Body or any other Person to renew or extend any such Consent;
      and
      (iii) copies of any periodic or special reports filed by Borrower or any
      Guarantor with any Governmental Body or Person, if such reports indicate any
      material change in the business, operations, affairs or condition of Borrower
      or
      any Guarantor, or if copies thereof are requested by Lender, and (iv) copies
      of
      any material notices and other communications from any Governmental Body or
      Person which specifically relate to Borrower or any Guarantor.

     

    9.15. ERISA
      Notices and Requests.
      Furnish
      Agent with immediate written notice in the event that (i) Borrower or any member
      of the Controlled Group knows or has reason to know that a Termination Event
      has
      occurred, together with a written statement describing such Termination Event
      and the action, if any, which Borrower or any member of the Controlled Group
      has
      taken, is taking, or proposes to take with respect thereto and, when known,
      any
      action taken or threatened by the Internal Revenue Service, Department of Labor
      or PBGC with respect thereto, (ii) Borrower or any member of the Controlled
      Group knows or has reason to know that a prohibited transaction (as defined
      in
      Sections 406 of ERISA and 4975 of the Code) has occurred together with a written
      statement describing such transaction and the action which Borrower or any
      member of the Controlled Group has taken, is taking or proposes to take with
      respect thereto, (iii) a funding waiver request has been filed with respect
      to
      any Plan together with all communications received by Borrower or any member
      of
      the Controlled Group with respect to such request, (iv) any increase in the
      benefits of any existing Plan or the establishment of any new Plan or the
      commencement of contributions to any Plan to which Borrower or any member of
      the
      Controlled Group was not previously contributing shall occur, (v) Borrower
      or
      any member of the Controlled Group shall receive from the PBGC a notice of
      intention to terminate a Plan or to have a trustee appointed to administer
      a
      Plan, together with copies of each such notice, (vi) Borrower or any member
      of
      the Controlled Group shall receive any favorable or unfavorable determination
      letter from the Internal Revenue Service regarding the qualification of a Plan
      under Section 401(a) of the Code, together with copies of each such letter;
      (vii) Borrower or any member of the Controlled Group shall receive a notice
      regarding the imposition of withdrawal liability, together with copies of each
      such notice; (viii) Borrower or any member of the Controlled Group shall fail
      to
      make a required installment or any other required payment under Section 412
      of
      the Code on or before the due date for such installment or payment; (ix)
      Borrower or any member of the Controlled Group knows that (a) a Multiemployer
      Plan has been terminated, (b) the administrator or plan sponsor of a
      Multiemployer Plan intends to terminate a Multiemployer Plan, or (c) the PBGC
      has instituted or will institute proceedings under Section 4042 of ERISA to
      terminate a Multiemployer Plan.

     

    
      
        
        

      

      
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    9.16. Additional
      Documents.
      Execute
      and deliver to Agent, upon request, such documents and agreements as Agent
      may,
      from time to time, reasonably request to carry out the purposes, terms or
      conditions of this Agreement.

     

    X EVENTS
      OF
      DEFAULT.

     

    The
      occurrence of any one or more of the following events shall constitute an “Event
      of Default”:

     

    10.1. Nonpayment.
      Failure
      by Borrower to pay any principal or interest on the Obligations when due,
      whether at maturity or by reason of acceleration pursuant to the terms of this
      Agreement or by notice of intention to prepay, or by required prepayment or
      failure to pay any other liabilities or make any other payment, fee or charge
      provided for herein when due or in any Other Document;

     

    10.2. Breach
      of Representation.
      Any
      representation or warranty made or deemed made by Borrower or any Guarantor
      in
      this Agreement, any Other Document or any related agreement or in any
      certificate, document or financial or other statement furnished at any time
      in
      connection herewith or therewith shall prove to have been misleading in any
      material respect on the date when made or deemed to have been made;

     

    10.3. Financial
      Information.
      Failure
      by Borrower to (i) furnish financial information when due or when requested
      which is unremedied for a period of fifteen (15) days, or (ii) permit the
      inspection of its books or records; 

     

    10.4. Judicial
      Actions.
      Issuance
      of a notice of Lien, levy, assessment, injunction or attachment against
      Borrower’s Inventory or Receivables or against a material portion of Borrower’s
      other property which is not stayed or lifted within forty-five (45)
      days;

     

    10.5. Noncompliance.
      Except
      as
      otherwise provided for in Sections 10.1, 10.3 and 10.5(ii), (i) failure or
      neglect of Borrower or any Guarantor to perform, keep or observe any term,
      provision, condition, covenant herein contained, or contained in any Other
      Document or any other agreement or arrangement, now or hereafter entered into
      between Borrower or any Guarantor, and Agent or any Lender, or (ii) failure
      or
      neglect of Borrower to perform, keep or observe any term, provision, condition
      or covenant, contained in Sections 4.6, 4.7, 4.9, 6.1, 6.3, 6.4, 9.4 or 9.6
      hereof which is not cured within twenty (20) days from the occurrence of such
      failure or neglect;

     

    
      
        
        

      

      
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    10.6. Judgments.
      Any
      judgment or judgments are rendered against Borrower or any Guarantor for an
      aggregate amount in excess of $250,000 which (i) is not contested in good faith
      by the Borrower, (ii) the Borrower does not establish reserves satisfactory
      to
      the Agent with regard thereto, and (iii) is not within sixty (60) days of such
      rendering or filing either satisfied, stayed or discharged of record;

     

    10.7. Bankruptcy.
      Borrower
      or any Guarantor shall (i) apply for, consent to or suffer the appointment
      of,
      or the taking of possession by, a receiver, custodian, trustee, liquidator
      or
      similar fiduciary of itself or of all or a substantial part of its property,
      (ii) make a general assignment for the benefit of creditors, (iii) commence
      a
      voluntary case under any state or federal bankruptcy laws (as now or hereafter
      in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file a petition
      seeking to take advantage of any other law providing for the relief of debtors,
      (vi) acquiesce to, or fail to have dismissed, within thirty (30) days, any
      petition filed against it in any involuntary case under such bankruptcy laws,
      or
      (vii) take any action for the purpose of effecting any of the
      foregoing;

     

    10.8. Inability
      to Pay.
      Borrower
      or any Guarantor shall admit in writing its inability, or be generally unable,
      to pay its debts as they become due or cease operations of its present
      business;

     

    10.9. Affiliate
      Bankruptcy.
      Any
      Affiliate or any Subsidiary of Borrower, or any Guarantor, shall (i) apply
      for,
      consent to or suffer the appointment of, or the taking of possession by, a
      receiver, custodian, trustee, liquidator or similar fiduciary of itself or
      of
      all or a substantial part of its property, (ii) admit in writing its inability,
      or be generally unable, to pay its debts as they become due or cease operations
      of its present business, (iii) make a general assignment for the benefit of
      creditors, (iv) commence a voluntary case under any state or federal bankruptcy
      laws (as now or hereafter in effect), (v) be adjudicated a bankrupt or
      insolvent, (vi) file a petition seeking to take advantage of any other law
      providing for the relief of debtors, (vii) acquiesce to, or fail to have
      dismissed, within thirty (30) days, any petition filed against it in any
      involuntary case under such bankruptcy laws, or (viii) take any action for
      the
      purpose of effecting any of the foregoing;

     

    10.10. Material
      Adverse Effect.
      Any
      change in Borrower’s or any Guarantor’s results of operations or condition
      (financial or otherwise) which in Agent’s reasonable opinion has a Material
      Adverse Effect;

     

    10.11. Lien
      Priority.
      Except
      for Permitted Encumbrances identified in such definition under subsections
      (h)
      and (j), any Lien created hereunder or provided for hereby or under any related
      agreement for any reason ceases to be or is not a valid and perfected Lien
      having a first priority interest;

     

    10.12. Subordinated
      Loan Default and Default regarding J&J Leasing Indebtedness.
      An
      event
      of default has occurred under the Subordinated Loan Documentation and/or the
      documentation evidencing the J&J Leasing Indebtedness, which default shall
      not have been cured or waived within any applicable grace period;

     

    
      
        
        

      

      
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    10.13. Cross
      Default.
      A
      default
      of the obligations of Borrower under any other agreement to which it is a party
      shall occur which adversely affects its condition, affairs or prospects
      (financial or otherwise) which default is not cured within any applicable grace
      period;

     

    10.14. Breach
      of Guaranty.
      Termination
      or breach of any Guaranty or similar agreement executed and delivered to Agent
      in connection with the Obligations of Borrower, or if any Guarantor attempts
      to
      terminate, challenges the validity of, or its liability under, any such Guaranty
      or similar agreement;

     

    10.15. Change
      of Ownership.
      Any
      Change of Ownership or Change of Control shall occur;

     

    10.16. Invalidity.
      Any
      material provision of this Agreement or any Other Document shall, for any
      reason, cease to be valid and binding on Borrower or any Guarantor, or Borrower
      or any Guarantor shall so claim in writing to Agent or any Lender;

     

    10.17. Licenses.
      (i)
      Any
      Governmental Body shall (A) revoke, terminate, suspend or adversely modify
      any
      license, permit, patent trademark or trade name of Borrower or any Guarantor,
      the continuation of which is material to the continuation of Borrower’s or such
      Guarantor’s business, or (B) commence proceedings to suspend, revoke, terminate
      or adversely modify any such license, permit, trademark, trade name or patent
      and such proceedings shall not be dismissed or discharged within sixty (60)
      days, or (c) schedule or conduct a hearing on the renewal of any material
      license, permit, trademark, trade name or patent necessary for the continuation
      of Borrower’s or any Guarantor’s business and the staff of such Governmental
      Body issues a report recommending the termination, revocation, suspension or
      material, adverse modification of such license, permit, trademark, trade name
      or
      patent; (ii) any agreement which is necessary or material to the operation
      of
      Borrower’s or any Guarantor’s business shall be revoked or terminated and not
      replaced by a substitute acceptable to Agent within thirty (30) days after
      the
      date of such revocation or termination, and such revocation or termination
      and
      non-replacement would reasonably be expected to have a Material Adverse
      Effect;

     

    10.18. Seizures.
      Any
      portion of the Collateral shall be seized or taken by a Governmental Body,
      or
      Borrower or any Guarantor or the title and rights of Borrower, any Guarantor
      or
      any Original Owner which is the owner of any material portion of the Collateral
      shall have become the subject matter of claim, litigation, suit or other
      proceeding which might, in the opinion of Agent, upon final determination,
      result in impairment or loss of the security provided by this Agreement or
      the
      Other Documents;

     

    10.19. Pension
      Plans.
      An
      event
      or condition specified in Sections 7.16 or 9.15 hereof shall occur or exist
      with
      respect to any Plan and, as a result of such event or condition, together with
      all other such events or conditions, Borrower or any member of the Controlled
      Group shall incur, or in the opinion of Agent be reasonably likely to incur,
      a
      liability to a Plan or the PBGC (or both) which, in the reasonable judgment
      of
      Agent, would have a Material Adverse Effect.

     

    10.20. Franchise
      Tax Searches.
      

     

    Failure
      by Borrower to deliver to the Agent within three hundred sixty (360) days of
      the
      date hereof franchise tax searches naming the Borrower and Guarantor, conducted
      in the jurisdictions set forth on Schedule 5.2(a), such searches to indicate
      that all franchise tax returns have been duly filed and all franchise taxes
      have
      been paid.

     

    
      
        
        

      

      
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    XI LENDERS’
      RIGHTS AND REMEDIES AFTER DEFAULT.

     

    11.1. Rights
      and Remedies. (a) Upon
      the
      occurrence of (i) an Event of Default pursuant to Section 10.7 all Obligations
      shall be immediately due and payable and this Agreement and the obligation
      of
      Lenders to make Advances shall be deemed terminated; and, (ii) any of the other
      Events of Default and at any time thereafter (such default not having previously
      been cured), at the option of Required Lenders all Obligations shall be
      immediately due and payable and Lenders shall have the right to terminate this
      Agreement and to terminate the obligation of Lenders to make Advances[ and
      (iii)
      a filing of a petition against Borrower in any involuntary case under any state
      or federal bankruptcy laws, all Obligations shall be immediately due and payable
      and the obligation of Lenders to make Advances hereunder shall be terminated
      other than as may be required by an appropriate order of the bankruptcy court
      having jurisdiction over Borrower]. Upon the occurrence of any Event of Default,
      Agent shall have the right to exercise any and all rights and remedies provided
      for herein, under the Other Documents, under the Uniform Commercial Code and
      at
      law or equity generally, including the right to foreclose the security interests
      granted herein and to realize upon any Collateral by any available judicial
      procedure and/or to take possession of and sell any or all of the Collateral
      with or without judicial process. Agent may enter any of Borrower’s premises or
      other premises without legal process and without incurring liability to Borrower
      therefor, and Agent may thereupon, or at any time thereafter, in its discretion
      without notice or demand, take the Collateral and remove the same to such place
      as Agent may deem advisable and Agent may require Borrower to make the
      Collateral available to Agent at a convenient place. With or without having
      the
      Collateral at the time or place of sale, Agent may sell the Collateral, or
      any
      part thereof, at public or private sale, at any time or place, in one or more
      sales, at such price or prices, and upon such terms, either for cash, credit
      or
      future delivery, as Agent may elect. Except as to that part of the Collateral
      which is perishable or threatens to decline speedily in value or is of a type
      customarily sold on a recognized market, Agent shall give Borrower reasonable
      notification of such sale or sales, it being agreed that in all events written
      notice mailed to Borrower at least ten (10) days prior to such sale or sales
      is
      reasonable notification. At any public sale Agent or any Lender may bid for
      and
      become the purchaser, and Agent, any Lender or any other purchaser at any such
      sale thereafter shall hold the Collateral sold absolutely free from any claim
      or
      right of whatsoever kind, including any equity of redemption and all such
      claims, rights and equities are hereby expressly waived and released by
      Borrower. In connection with the exercise of the foregoing remedies, including
      the sale of Inventory, Agent is granted a perpetual nonrevocable, royalty free,
      nonexclusive license and Agent is granted permission to use all of Borrower’s
      (a) trademarks, trade styles, trade names, patents, patent applications,
      copyrights, service marks, licenses, franchises and other proprietary rights
      which are used or useful in connection with Inventory for the purpose of
      marketing, advertising for sale and selling or otherwise disposing of such
      Inventory and (b) Equipment for the purpose of completing the manufacture of
      unfinished goods. The cash proceeds realized from the sale of any Collateral
      shall be applied to the Obligations in the order set forth in Section 11.5
      hereof. Noncash proceeds will only be applied to the Obligations as they are
      converted into cash. If any deficiency shall arise, Borrower shall remain liable
      to Agent and Lenders therefor.

     

    
      
        
        

      

      
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    (b) To
      the
      extent that Applicable Law imposes duties on the Agent to exercise remedies
      in a
      commercially reasonable manner, Borrower acknowledges and agrees that it is
      not
      commercially unreasonable for the Agent (i) to fail to incur expenses reasonably
      deemed significant by the Agent to prepare Collateral for disposition or
      otherwise to complete raw material or work in process into finished goods or
      other finished products for disposition, (ii) to fail to obtain third party
      consents for access to Collateral to be disposed of, or to obtain or, if not
      required by other law, to fail to obtain governmental or third party consents
      for the collection or disposition of Collateral to be collected or disposed
      of,
      (iii) to fail to exercise collection remedies against Customers or other Persons
      obligated on Collateral or to remove Liens on or any adverse claims against
      Collateral, (iv) to exercise collection remedies against Customers and other
      Persons obligated on Collateral directly or through the use of collection
      agencies and other collection specialists, (v) to advertise dispositions of
      Collateral through publications or media of general circulation, whether or
      not
      the Collateral is of a specialized nature, (vi) to contact other Persons,
      whether or not in the same business as the Borrower, for expressions of interest
      in acquiring all or any portion of such Collateral, (vii) to hire one or more
      professional auctioneers to assist in the disposition of Collateral, whether
      or
      not the Collateral is of a specialized nature, (viii) to dispose of Collateral
      by utilizing internet sites that provide for the auction of assets of the types
      included in the Collateral or that have the reasonable capacity of doing so,
      or
      that match buyers and sellers of assets, (ix) to dispose of assets in wholesale
      rather than retail markets, (x) to disclaim disposition warranties, such as
      title, possession or quiet enjoyment, (xi) to purchase insurance or credit
      enhancements to insure the Agent against risks of loss, collection or
      disposition of Collateral or to provide to the Agent a guaranteed return from
      the collection or disposition of Collateral, or (xii) to the extent deemed
      appropriate by the Agent, to obtain the services of other brokers, investment
      bankers, consultants and other professionals to assist the Agent in the
      collection or disposition of any of the Collateral. Borrower acknowledges that
      the purpose of this Section 11.1(b) is to provide non-exhaustive indications
      of
      what actions or omissions by the Agent would not be commercially unreasonable
      in
      the Agent’s exercise of remedies against the Collateral and that other actions
      or omissions by the Agent shall not be deemed commercially unreasonable solely
      on account of not being indicated in this Section 11.1(b). Without limitation
      upon the foregoing, nothing contained in this Section 11.1(b) shall be construed
      to grant any rights to Borrower or to impose any duties on Agent that would
      not
      have been granted or imposed by this Agreement or by Applicable Law in the
      absence of this Section 11.1(b). 

     

    11.2. Agent’s
      Discretion.
      Agent
      shall have the right in its sole discretion to determine which rights, Liens,
      security interests or remedies Agent may at any time pursue, relinquish,
      subordinate, or modify or to take any other action with respect thereto and
      such
      determination will not in any way modify or affect any of Agent’s or Lenders’
rights hereunder.

     

    11.3. Setoff.
      Subject
      to Section 14.12, in addition to any other rights which Agent or any Lender
      may
      have under Applicable Law, upon the occurrence of an Event of Default hereunder,
      Agent and such Lender shall have a right, immediately and without notice of
      any
      kind, to apply Borrower’s property held by Agent and such Lender to reduce the
      Obligations.

     

    11.4. Rights
      and Remedies not Exclusive.
      The
      enumeration of the foregoing rights and remedies is not intended to be
      exhaustive and the exercise of any rights or remedy shall not preclude the
      exercise of any other right or remedies provided for herein or otherwise
      provided by law, all of which shall be cumulative and not
      alternative.

     

    
      
        
        

      

      
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    11.5. Allocation
      of Payments After Event of Default.
      Notwithstanding
      any other provisions of this Agreement to the contrary, after the occurrence
      and
      during the continuance of an Event of Default, all amounts collected or received
      by the Agent on account of the Obligations or any other amounts outstanding
      under any of the Other Documents or in respect of the Collateral may, at Agent’s
      discretion, be paid over or delivered as follows:

     

    FIRST,
      to
      the payment of all reasonable out-of-pocket costs and expenses (including
      reasonable attorneys’ fees) of the Agent in connection with enforcing its rights
      and the rights of the Lenders under this Agreement and the Other Documents
      and
      any protective advances made by the Agent with respect to the Collateral under
      or pursuant to the terms of this Agreement;

     

    SECOND,
      to payment of any fees owed to the Agent;

     

    THIRD,
      to
      the payment of all reasonable out-of-pocket costs and expenses (including
      reasonable attorneys’ fees) of each of the Lenders to the extent owing to such
      Lender pursuant to the terms of this Agreement;

     

    FOURTH,
      to the payment of all of the Obligations consisting of accrued fees and
      interest;

     

    FIFTH,
      to
      the payment of the outstanding principal amount of the Obligations (including
      the payment or cash collateralization of any outstanding Letters of
      Credit);

     

    SIXTH,
      to
      all other Obligations and other obligations which shall have become due and
      payable under the Other Documents or otherwise and not repaid pursuant to
      clauses “FIRST” through “FIFTH” above; and

     

    SEVENTH,
      to the payment of the surplus, if any, to whoever may be lawfully entitled
      to
      receive such surplus.

     

    In
      carrying out the foregoing, (i) amounts received shall be applied in the
      numerical order provided until exhausted prior to application to the next
      succeeding category; (ii) each of the Lenders shall receive (so long as it
      is
      not a Defaulting Lender) an amount equal to its pro rata share (based on the
      proportion that the then outstanding Advances held by such Lender bears to
      the
      aggregate then outstanding Advances) of amounts available to be applied pursuant
      to clauses “FOURTH”, “FIFTH” and “SIXTH” above; and (iii) to the extent that any
      amounts available for distribution pursuant to clause “FIFTH” above are
      attributable to the issued but undrawn amount of outstanding Letters of Credit,
      such amounts shall be held by the Agent in a cash collateral account and applied
      (A) first, to reimburse the Issuer from time to time for any drawings under
      such
      Letters of Credit and (B) then, following the expiration of all Letters of
      Credit, to all other obligations of the types described in clauses “FIFTH” and
“SIXTH” above in the manner provided in this Section 11.5.

     

    XII WAIVERS
      AND JUDICIAL PROCEEDINGS.

     

    12.1. Waiver
      of Notice.
      Borrower
      hereby waives notice of non-payment of any of the Receivables, demand,
      presentment, protest and notice thereof with respect to any and all instruments,
      notice of acceptance hereof, notice of loans or advances made, credit extended,
      Collateral received or delivered, or any other action taken in reliance hereon,
      and all other demands and notices of any description, except such as are
      expressly provided for herein.

     

    
      
        
        

      

      
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    12.2. Delay.
      No
      delay
      or omission on Agent’s or any Lender’s part in exercising any right, remedy or
      option shall operate as a waiver of such or any other right, remedy or option
      or
      of any Default or Event of Default.

     

    12.3. Jury
      Waiver.
      EACH
      PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY
      OF
      ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT
      OR
      ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
      HEREWITH, OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE
      DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT
      OR
      ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION
      HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER
      NOW
      EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR
      OTHERWISE AND EACH PARTY HEREBY CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION
      OR
      CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY
      PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
      SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO
      TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

     

    XIII EFFECTIVE
      DATE AND TERMINATION.

     

    13.1. Term.
      This
      Agreement, which shall inure to the benefit of and shall be binding upon the
      respective successors and permitted assigns of Borrower, Agent and each Lender,
      shall become effective on the date hereof and shall continue in full force
      and
      effect until the Termination Date (the “Term”) unless sooner terminated as
      herein provided. Borrower may terminate this Agreement at any time upon sixty
      (60) days’ prior written notice upon payment in full of the Obligations. In the
      event the Obligations are prepaid in full prior to the last day of the Term
      (the
      date of such prepayment hereinafter referred to as the “Early Termination
      Date”), Borrower shall pay to Agent for the benefit of Lenders an early
      termination fee in an amount equal to (y) one half of one percent (0.50%) of
      the
      Maximum Loan Amount if the Early Termination Date occurs on or after the Closing
      Date to and including the date immediately preceding the first anniversary
      of
      the Closing Date, and (z) three eighths of one percent (0.375%) of the Maximum
      Loan Amount if the Early Termination Date occurs on or after the first
      anniversary of the Closing Date to and including the date immediately preceding
      the second anniversary of the Closing Date.

     

    13.2. Termination.
      The
      termination of the Agreement shall not affect Borrower’s, Agent’s or any
      Lender’s rights, or any of the Obligations having their inception prior to the
      effective date of such termination, and the provisions hereof shall continue
      to
      be fully operative until all transactions entered into, rights or interests
      created or Obligations have been fully and indefeasibly paid, disposed of,
      concluded or liquidated. The security interests, Liens and rights granted to
      Agent and Lenders hereunder and the financing statements filed hereunder shall
      continue in full force and effect, notwithstanding the termination of this
      Agreement or the fact that Borrower’s Account may from time to time be
      temporarily in a zero or credit position, until all of the Obligations of
      Borrower have been indefeasibly paid and performed in full after the termination
      of this Agreement or Borrower has furnished Agent and Lenders with an
      indemnification satisfactory to Agent and Lenders with respect thereto.
      Accordingly, Borrower waives any rights which it may have under the Uniform
      Commercial Code to demand the filing of termination statements with respect
      to
      the Collateral, and Agent shall not be required to send such termination
      statements to Borrower, or to file them with any filing office, unless and
      until
      this Agreement shall have been terminated in accordance with its terms and
      all
      Obligations have been indefeasibly paid in full in immediately available funds.
      All representations, warranties, covenants, waivers and agreements contained
      herein shall survive termination hereof until all Obligations are indefeasibly
      paid and performed in full.

     

    
      
        
        

      

      
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    XIV REGARDING
      AGENT.

     

    14.1. Appointment.
      Each
      Lender hereby designates PNC to act as Agent for such Lender under this
      Agreement and the Other Documents. Each Lender hereby irrevocably authorizes
      Agent to take such action on its behalf under the provisions of this Agreement
      and the Other Documents and to exercise such powers and to perform such duties
      hereunder and thereunder as are specifically delegated to or required of Agent
      by the terms hereof and thereof and such other powers as are reasonably
      incidental thereto and Agent shall hold all Collateral, payments of principal
      and interest, fees (except the fees set forth in Sections 3.3(a) and 3.4),
      charges and collections (without giving effect to any collection days) received
      pursuant to this Agreement, for the ratable benefit of Lenders. Agent may
      perform any of its duties hereunder by or through its agents or employees.
      As to
      any matters not expressly provided for by this Agreement (including collection
      of the Note) Agent shall not be required to exercise any discretion or take
      any
      action, but shall be required to act or to refrain from acting (and shall be
      fully protected in so acting or refraining from acting) upon the instructions
      of
      the Required Lenders, and such instructions shall be binding; provided, however,
      that Agent shall not be required to take any action which exposes Agent to
      liability or which is contrary to this Agreement or the Other Documents or
      Applicable Law unless Agent is furnished with an indemnification reasonably
      satisfactory to Agent with respect thereto.

     

    14.2. Nature
      of Duties.
      Agent
      shall have no duties or responsibilities except those expressly set forth in
      this Agreement and the Other Documents. Neither Agent nor any of its officers,
      directors, employees or agents shall be (i) liable for any action taken or
      omitted by them as such hereunder or in connection herewith, unless caused
      by
      their gross (not mere) negligence or willful misconduct (as determined by a
      court of competent jurisdiction in a final non-appealable judgment), or (ii)
      responsible in any manner for any recitals, statements, representations or
      warranties made by Borrower or any officer thereof contained in this Agreement,
      or in any of the Other Documents or in any certificate, report, statement or
      other document referred to or provided for in, or received by Agent under or
      in
      connection with, this Agreement or any of the Other Documents or for the value,
      validity, effectiveness, genuineness, due execution, enforceability or
      sufficiency of this Agreement, or any of the Other Documents or for any failure
      of Borrower to perform its obligations hereunder. Agent shall not be under
      any
      obligation to any Lender to ascertain or to inquire as to the observance or
      performance of any of the agreements contained in, or conditions of, this
      Agreement or any of the Other Documents, or to inspect the properties, books
      or
      records of Borrower. The duties of Agent as respects the Advances to Borrower
      shall be mechanical and administrative in nature; Agent shall not have by reason
      of this Agreement a fiduciary relationship in respect of any Lender; and nothing
      in this Agreement, expressed or implied, is intended to or shall be so construed
      as to impose upon Agent any obligations in respect of this Agreement except
      as
      expressly set forth herein.

     

    
      
        
        

      

      
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    14.3. Lack
      of Reliance on Agent and Resignation.
      Independently
      and without reliance upon Agent or any other Lender, each Lender has made and
      shall continue to make (i) its own independent investigation of the financial
      condition and affairs of Borrower and each Guarantor in connection with the
      making and the continuance of the Advances hereunder and the taking or not
      taking of any action in connection herewith, and (ii) its own appraisal of
      the
      creditworthiness of Borrower and each Guarantor. Agent shall have no duty or
      responsibility, either initially or on a continuing basis, to provide any Lender
      with any credit or other information with respect thereto, whether coming into
      its possession before making of the Advances or at any time or times thereafter
      except as shall be provided by Borrower pursuant to the terms hereof. Agent
      shall not be responsible to any Lender for any recitals, statements,
      information, representations or warranties herein or in any agreement, document,
      certificate or a statement delivered in connection with or for the execution,
      effectiveness, genuineness, validity, enforceability, collectibility or
      sufficiency of this Agreement or any Other Document, or of the financial
      condition of Borrower or any Guarantor, or be required to make any inquiry
      concerning either the performance or observance of any of the terms, provisions
      or conditions of this Agreement, the Note, the Other Documents or the financial
      condition of Borrower, or the existence of any Event of Default or any
      Default.

     

    Agent
      may
      resign on sixty (60) days’ written notice to each of Lenders and Borrower and
      upon such resignation, the Required Lenders will promptly designate a successor
      Agent reasonably satisfactory to Borrower.

     

    Any
      such
      successor Agent shall succeed to the rights, powers and duties of Agent, and
      the
      term “Agent” shall mean such successor agent effective upon its appointment, and
      the former Agent’s rights, powers and duties as Agent shall be terminated,
      without any other or further act or deed on the part of such former Agent.
      After
      any Agent’s resignation as Agent, the provisions of this Article XIV shall inure
      to its benefit as to any actions taken or omitted to be taken by it while it
      was
      Agent under this Agreement.

     

    14.4. Certain
      Rights of Agent.
      If
      Agent
      shall request instructions from Lenders with respect to any act or action
      (including failure to act) in connection with this Agreement or any Other
      Document, Agent shall be entitled to refrain from such act or taking such action
      unless and until Agent shall have received instructions from the Required
      Lenders; and Agent shall not incur liability to any Person by reason of so
      refraining. Without limiting the foregoing, Lenders shall not have any right
      of
      action whatsoever against Agent as a result of its acting or refraining from
      acting hereunder in accordance with the instructions of the Required
      Lenders.

     

    14.5. Reliance.
      Agent
      shall be entitled to rely, and shall be fully protected in relying, upon any
      note, writing, resolution, notice, statement, certificate, telex, teletype
      or
      telecopier message, cablegram, order or other document or telephone message
      believed by it to be genuine and correct and to have been signed, sent or made
      by the proper person or entity, and, with respect to all legal matters
      pertaining to this Agreement and the Other Documents and its duties hereunder,
      upon advice of counsel selected by it. Agent may employ agents and
      attorneys-in-fact and shall not be liable for the default or misconduct of
      any
      such agents or attorneys-in-fact selected by Agent with reasonable
      care.

     

    
      
        
        

      

      
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    14.6. Notice
      of Default.
      Agent
      shall not be deemed to have knowledge or notice of the occurrence of any Default
      or Event of Default hereunder or under the Other Documents, unless Agent has
      received notice from a Lender or Borrower referring to this Agreement or the
      Other Documents, describing such Default or Event of Default and stating that
      such notice is a “notice of default”. In the event that Agent receives such a
      notice, Agent shall give notice thereof to Lenders. Agent shall take such action
      with respect to such Default or Event of Default as shall be reasonably directed
      by the Required Lenders; provided, that, unless and until Agent shall have
      received such directions, Agent may (but shall not be obligated to) take such
      action, or refrain from taking such action, with respect to such Default or
      Event of Default as it shall deem advisable in the best interests of
      Lenders.

     

    14.7. Indemnification.
      To
      the
      extent Agent is not reimbursed and indemnified by Borrower, each Lender will
      reimburse and indemnify Agent in proportion to its respective portion of the
      Advances (or, if no Advances are outstanding, according to its Commitment
      Percentage), from and against any and all liabilities, obligations, losses,
      damages, penalties, actions, judgments, suits, costs, expenses or disbursements
      of any kind or nature whatsoever which may be imposed on, incurred by or
      asserted against Agent in performing its duties hereunder, or in any way
      relating to or arising out of this Agreement or any Other Document; provided
      that, Lenders shall not be liable for any portion of such liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses or disbursements resulting from Agent’s gross (not mere) negligence or
      willful misconduct (as determined by a court of competent jurisdiction in a
      final non-appealable judgment).

     

    14.8. Agent
      in its Individual Capacity.
      With
      respect to the obligation of Agent to lend under this Agreement, the Advances
      made by it shall have the same rights and powers hereunder as any other Lender
      and as if it were not performing the duties as Agent specified herein; and
      the
      term “Lender” or any similar term shall, unless the context clearly otherwise
      indicates, include Agent in its individual capacity as a Lender. Agent may
      engage in business with Borrower as if it were not performing the duties
      specified herein, and may accept fees and other consideration from Borrower
      for
      services in connection with this Agreement or otherwise without having to
      account for the same to Lenders.

     

    14.9. Delivery
      of Documents.
      To
      the
      extent Agent receives financial statements required under Sections 9.7, 9.8,
      9.9, 9.12 and 9.13 or Borrowing Base Certificates from Borrower pursuant to
      the
      terms of this Agreement which Borrower is not obligated to deliver to each
      Lender, Agent will promptly furnish such documents and information to
      Lenders.

     

    14.10. Borrower’s
      Undertaking to Agent.
      Without
      prejudice to its obligations to Lenders under the other provisions of this
      Agreement, Borrower hereby undertakes with Agent to pay to Agent from time
      to
      time on demand all amounts from time to time due and payable by it for the
      account of Agent or Lenders or any of them pursuant to this Agreement to the
      extent not already paid. Any payment made pursuant to any such demand shall
      pro
      tanto satisfy the relevant Borrower’s obligations to make payments for the
      account of Lenders or the relevant one or more of them pursuant to this
      Agreement.

     

    
      
        
        

      

      
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    14.11. No
      Reliance on Agent’s Customer Identification Program.
      Each
      Lender acknowledges and agrees that neither such Lender, nor any of its
      Affiliates, participants or assignees, may rely on the Agent to carry out such
      Lender’s, Affiliate’s, participant’s or assignee’s customer identification
      program, or other obligations required or imposed under or pursuant to the
      USA
      PATRIOT Act or the regulations thereunder, including the regulations contained
      in 31 CFR 103.121 (as hereafter amended or replaced, the “CIP Regulations”), or
      any other Anti-Terrorism Law, including any programs involving any of the
      following items relating to or in connection with Borrower, its Affiliates
      or
      its agents, this Agreement, the Other Documents or the transactions hereunder
      or
      contemplated hereby: (1) any identity verification procedures, (2) any
      record-keeping, (3) comparisons with government lists, (4) customer notices
      or
      (5) other procedures required under the CIP Regulations or such other laws.
      

     

    14.12. Other
      Agreements.
      Each
      of
      the Lenders agrees that it shall not, without the express consent of Agent,
      and
      that it shall, to the extent it is lawfully entitled to do so, upon the request
      of Agent, set off against the Obligations, any amounts owing by such Lender
      to
      Borrower or any deposit accounts of Borrower now or hereafter maintained with
      such Lender. Anything in this Agreement to the contrary notwithstanding, each
      of
      the Lenders further agrees that it shall not, unless specifically requested
      to
      do so by Agent, take any action to protect or enforce its rights arising out
      of
      this Agreement or the Other Documents, it being the intent of Lenders that
      any
      such action to protect or enforce rights under this Agreement and the Other
      Documents shall be taken in concert and at the direction or with the consent
      of
      Agent or Required Lenders. 

     

    XV MISCELLANEOUS.

     

    15.1. Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Jersey applied to contracts to be performed wholly within the State
      of
      New Jersey. Any judicial proceeding brought by or against Borrower with respect
      to any of the Obligations, this Agreement, the Other Documents or any related
      agreement may be brought in any court of competent jurisdiction in the State
      of
      New Jersey, United States of America, and, by execution and delivery of this
      Agreement, Borrower accepts for itself and in connection with its properties,
      generally and unconditionally, the non-exclusive jurisdiction of the aforesaid
      courts, and irrevocably agrees to be bound by any judgment rendered thereby
      in
      connection with this Agreement. Borrower hereby waives personal service of
      any
      and all process upon it and consents that all such service of process may be
      made by registered mail (return receipt requested) directed to Borrower at
      its
      address set forth in Section 15.6 and service so made shall be deemed completed
      five (5) days after the same shall have been so deposited in the mails of the
      United States of America. Nothing herein shall affect the right to serve process
      in any manner permitted by law or shall limit the right of Agent or any Lender
      to bring proceedings against Borrower in the courts of any other jurisdiction.
      Borrower waives any objection to jurisdiction and venue of any action instituted
      hereunder and shall not assert any defense based on lack of jurisdiction or
      venue or based upon forum non conveniens. Borrower waives the right to remove
      any judicial proceeding brought against Borrower in any state court to any
      federal court. Any judicial proceeding by Borrower against Agent or any Lender
      involving, directly or indirectly, any matter or claim in any way arising out
      of, related to or connected with this Agreement or any related agreement, shall
      be brought only in a federal or state court located in the County of Middlesex,
      State of New Jersey.

     

    
      
        
        

      

      
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    15.2. Entire
      Understanding.
      (a) This
      Agreement and the documents executed concurrently herewith contain the entire
      understanding between Borrower, Agent and each Lender and supersedes all prior
      agreements and understandings, if any, relating to the subject matter hereof.
      Any promises, representations, warranties or guarantees not herein contained
      and
      hereinafter made shall have no force and effect unless in writing, signed by
      Borrower’s, Agent’s and each Lender’s respective officers. Neither this
      Agreement nor any portion or provisions hereof may be changed, modified,
      amended, waived, supplemented, discharged, cancelled or terminated orally or
      by
      any course of dealing, or in any manner other than by an agreement in writing,
      signed by the party to be charged. Borrower acknowledges that it has been
      advised by counsel in connection with the execution of this Agreement and Other
      Documents and is not relying upon oral representations or statements
      inconsistent with the terms and provisions of this Agreement.

     

    (b) The
      Required Lenders, Agent with the consent in writing of the Required Lenders,
      and
      Borrower may, subject to the provisions of this Section 15.2 (b), from time
      to
      time enter into written supplemental agreements to this Agreement or the Other
      Documents executed by Borrower, for the purpose of adding or deleting any
      provisions or otherwise changing, varying or waiving in any manner the rights
      of
      Lenders, Agent or Borrower thereunder or the conditions, provisions or terms
      thereof or waiving any Event of Default thereunder, but only to the extent
      specified in such written agreements; provided, however, that no such
      supplemental agreement shall, without the consent of all Lenders: increase
      the Commitment Percentage, the maximum dollar commitment of any Lender or the
      Maximum Loan Amount.

     

    (ii) extend
      the maturity of any Note or the due date for any amount payable hereunder,
      or
      decrease the rate of interest or reduce any fee payable by Borrower to Lenders
      pursuant to this Agreement.

     

    (iii) alter
      the
      definition of the term Required Lenders or alter, amend or modify this Section
      15.2(b).

     

    (iv) release
      any Collateral during any calendar year (other than in accordance with the
      provisions of this Agreement) having an aggregate value in excess of
      $100,000.

     

    (v) change
      the rights and duties of Agent.

     

    (vi) permit
      any Revolving Advance to be made if after giving effect thereto the total of
      Revolving Advances outstanding hereunder would exceed the Formula Amount for
      more than sixty (30) consecutive Business Days or exceed one hundred and five
      percent (105%) of the Formula Amount.

     

    (vii) increase
      the Advance Rates above the Advance Rates in effect on the Closing
      Date.

     

    
      
        
        

      

      
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    (viii) release
      any Guarantor.

     

    Any
      such
      supplemental agreement shall apply equally to each Lender and shall be binding
      upon Borrower, Lenders and Agent and all future holders of the Obligations.
      In
      the case of any waiver, Borrower, Agent and Lenders shall be restored to their
      former positions and rights, and any Event of Default waived shall be deemed
      to
      be cured and not continuing, but no waiver of a specific Event of Default shall
      extend to any subsequent Event of Default (whether or not the subsequent Event
      of Default is the same as the Event of Default which was waived), or impair
      any
      right consequent thereon.

     

    In
      the
      event that Agent requests the consent of a Lender pursuant to this Section
      15.2
      and such Lender shall not respond or reply to Agent in writing within five
      (5)
      days of delivery of such request, such Lender shall be deemed to have consented
      to the matter that was the subject of the request. In the event that Agent
      requests the consent of a Lender pursuant to this Section 15.2 and such consent
      is denied, then PNC may, at its option, require such Lender to assign its
      interest in the Advances to PNC or to another Lender or to any other Person
      designated by the Agent (the “Designated Lender”), for a price equal to the then
      outstanding principal amount thereof plus accrued and unpaid interest and fees
      due such Lender, which interest and fees shall be paid when collected from
      Borrower. In the event PNC elects to require any Lender to assign its interest
      to PNC or to the Designated Lender, PNC will so notify such Lender in writing
      within forty five (45) days following such Lender’s denial, and such Lender will
      assign its interest to PNC or the Designated Lender no later than five (5)
      days
      following receipt of such notice pursuant to a Commitment Transfer Supplement
      executed by such Lender, PNC or the Designated Lender, as appropriate, and
      Agent.

     

    Notwithstanding
      (a) the existence of a Default or an Event of Default, (b) that any of the
      other
      applicable conditions precedent set forth in Section 8.2 hereof have not been
      satisfied or (c) any other provision of this Agreement, Agent may at its
      discretion and without the consent of the Required Lenders, voluntarily permit
      the outstanding Revolving Advances at any time to exceed an amount equal to
      the
      sum of (i) the Formula Amount by up to ten percent (10%) of the Formula Amount
      for up to thirty (30) consecutive Business Days (the “Out-of-Formula Loans”). If
      Agent is willing in its sole and absolute discretion to make such Out-of-Formula
      Loans, such Out-of-Formula Loans shall be payable on demand and shall bear
      interest at the Default Rate for Revolving Advances consisting of Domestic
      Rate
      Loans; provided that, if Lenders do make Out-of-Formula Loans, neither Agent
      nor
      Lenders shall be deemed thereby to have changed the limits of Section 2.1(a).
      For purposes of this paragraph, the discretion granted to Agent hereunder shall
      not preclude involuntary overadvances that may result from time to time due
      to
      the fact that the Formula Amount was unintentionally exceeded for any reason,
      including, but not limited to, Collateral previously deemed to be “Eligible
      Receivables”, as applicable, becomes ineligible, collections of Receivables
      applied to reduce outstanding Revolving Advances are thereafter returned for
      insufficient funds or overadvances are made to protect or preserve the
      Collateral. In the event Agent involuntarily permits the outstanding Revolving
      Advances to exceed the Formula Amount by more than ten percent (10%), Agent
      shall use its efforts to have Borrower decrease such excess in as expeditious
      a
      manner as is practicable under the circumstances and not inconsistent with
      the
      reason for such excess. Revolving Advances made after Agent has determined
      the
      existence of involuntary overadvances shall be deemed to be involuntary
      overadvances and shall be decreased in accordance with the preceding
      sentence.

     

    
      
        
        

      

      
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    In
      addition to (and not in substitution of) the discretionary Revolving Advances
      permitted above in this Section 15.2, the Agent is hereby authorized by Borrower
      and the Lenders, from time to time in the Agent’s sole discretion, (A) after the
      occurrence and during the continuation of a Default or an Event of Default,
      or
      (B) at any time that any of the other applicable conditions precedent set forth
      in Section 8.2 hereof have not been satisfied, to make Revolving Advances to
      Borrower on behalf of the Lenders which the Agent, in its reasonable business
      judgment, deems necessary or desirable (a) to preserve or protect the
      Collateral, or any portion thereof, (b) to enhance the likelihood of, or
      maximize the amount of, repayment of the Advances and other Obligations, or
      (c)
      to pay any other amount chargeable to Borrower pursuant to the terms of this
      Agreement; provided, that at any time after giving effect to any such Revolving
      Advances the outstanding Revolving Advances do not exceed one hundred and ten
      percent (110%) of the Formula Amount.

     

    15.3. Successors
      and Assigns; Participations; New Lenders.

     

    (a) This
      Agreement shall be binding upon and inure to the benefit of Borrower, Agent,
      each Lender, all future holders of the Obligations and their respective
      successors and assigns, except that Borrower may not assign or transfer any
      of
      its rights or obligations under this Agreement without the prior written consent
      of Agent and each Lender.

     

    (b) Borrower
      acknowledges that in the regular course of commercial banking business one
      or
      more Lenders may at any time and from time to time sell participating interests
      in the Advances to other financial institutions (each such transferee or
      purchaser of a participating interest, a “Participant”). Each Participant may
      exercise all rights of payment (including rights of set-off) with respect to
      the
      portion of such Advances held by it or other Obligations payable hereunder
      as
      fully as if such Participant were the direct holder thereof provided that
      Borrower shall not be required to pay to any Participant more than the amount
      which it would have been required to pay to Lender which granted an interest
      in
      its Advances or other Obligations payable hereunder to such Participant had
      such
      Lender retained such interest in the Advances hereunder or other Obligations
      payable hereunder and in no event shall Borrower be required to pay any such
      amount arising from the same circumstances and with respect to the same Advances
      or other Obligations payable hereunder to both such Lender and such Participant.
      Borrower hereby grants to any Participant a continuing security interest in
      any
      deposits, moneys or other property actually or constructively held by such
      Participant as security for the Participant’s interest in the
      Advances.

     

    (c) Any
      Lender, with the consent of Agent which shall not be unreasonably withheld
      or
      delayed, may sell, assign or transfer all or any part of its rights and
      obligations under or relating to Revolving Advances under this Agreement and
      the
      Other Documents to one or more additional banks or financial institutions and
      one or more additional banks or financial institutions may commit to make
      Advances hereunder (each a “Purchasing Lender”), in minimum amounts of not less
      than $5,000,000, pursuant to a Commitment Transfer Supplement, executed by
      a
      Purchasing Lender, the transferor Lender, and Agent and delivered to Agent
      for
      recording. Upon such execution, delivery, acceptance and recording, from and
      after the transfer effective date determined pursuant to such Commitment
      Transfer Supplement, (i) Purchasing Lender thereunder shall be a party hereto
      and, to the extent provided in such Commitment Transfer Supplement, have the
      rights and obligations of a Lender thereunder with a Commitment Percentage
      as
      set forth therein, and (ii) the transferor Lender thereunder shall, to the
      extent provided in such Commitment Transfer Supplement, be released from its
      obligations under this Agreement, the Commitment Transfer Supplement creating
      a
      novation for that purpose. Such Commitment Transfer Supplement shall be deemed
      to amend this Agreement to the extent, and only to the extent, necessary to
      reflect the addition of such Purchasing Lender and the resulting adjustment
      of
      the Commitment Percentages arising from the purchase by such Purchasing Lender
      of all or a portion of the rights and obligations of such transferor Lender
      under this Agreement and the Other Documents. Borrower hereby consents to the
      addition of such Purchasing Lender and the resulting adjustment of the
      Commitment Percentages arising from the purchase by such Purchasing Lender
      of
      all or a portion of the rights and obligations of such transferor Lender under
      this Agreement and the Other Documents. Borrower shall execute and deliver
      such
      further documents and do such further acts and things in order to effectuate
      the
      foregoing.

     

    
      
        
        

      

      
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    (d) Any
      Lender, with the consent of Agent which shall not be unreasonably withheld
      or
      delayed, may directly or indirectly sell, assign or transfer all or any portion
      of its rights and obligations under or relating to Revolving Advances under
      this
      Agreement and the Other Documents to an entity, whether a corporation,
      partnership, trust, limited liability company or other entity that (i) 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 (ii)
      is
      administered, serviced or managed by the assigning Lender or an Affiliate of
      such Lender (a “Purchasing CLO” and together with each Participant and
      Purchasing Lender, each a “Transferee” and collectively the “Transferees”),
      pursuant to a Commitment Transfer Supplement modified as appropriate to reflect
      the interest being assigned (“Modified Commitment Transfer Supplement”),
      executed by any intermediate purchaser, the Purchasing CLO, the transferor
      Lender, and Agent as appropriate and delivered to Agent for recording. Upon
      such
      execution and delivery, from and after the transfer effective date determined
      pursuant to such Modified Commitment Transfer Supplement, (i) Purchasing CLO
      thereunder shall be a party hereto and, to the extent provided in such Modified
      Commitment Transfer Supplement, have the rights and obligations of a Lender
      thereunder and (ii) the transferor Lender thereunder shall, to the extent
      provided in such Modified Commitment Transfer Supplement, be released from
      its
      obligations under this Agreement, the Modified Commitment Transfer Supplement
      creating a novation for that purpose. Such Modified Commitment Transfer
      Supplement shall be deemed to amend this Agreement to the extent, and only
      to
      the extent, necessary to reflect the addition of such Purchasing CLO. Borrower
      hereby consents to the addition of such Purchasing CLO. Borrower shall execute
      and deliver such further documents and do such further acts and things in order
      to effectuate the foregoing.

     

    (e) Agent
      shall maintain at its address a copy of each Commitment Transfer Supplement
      and
      Modified Commitment Transfer Supplement delivered to it and a register (the
      “Register”) for the recordation of the names and addresses of each Lender and
      the outstanding principal, accrued and unpaid interest and other fees due
      hereunder. The entries in the Register shall be conclusive, in the absence
      of
      manifest error, and Borrower, Agent and Lenders may treat each Person whose
      name
      is recorded in the Register as the owner of the Advance recorded therein for
      the
      purposes of this Agreement. The Register shall be available for inspection
      by
      Borrower or any Lender at any reasonable time and from time to time upon
      reasonable prior notice. Agent shall receive a fee in the amount of $3,500
      payable by the applicable Purchasing Lender and/or Purchasing CLO upon the
      effective date of each transfer or assignment (other than to an intermediate
      purchaser) to such Purchasing Lender and/or Purchasing CLO.

     

    
      
        
        

      

      
        86

        
          

        

      

      
        
        

      

    

     

    (f) Borrower
      authorizes each Lender to disclose to any Transferee and any prospective
      Transferee any and all financial information in such Lender’s possession
      concerning Borrower which has been delivered to such Lender by or on behalf
      of
      Borrower pursuant to this Agreement or in connection with such Lender’s credit
      evaluation of Borrower.

     

    (g) Notwithstanding
      any other term or provision contained in the Agreement, the Agent, without
      the
      consent of the Borrower, shall not sell, assign or transfer all or any part
      of
      its rights and obligations under or relating to the Revolving Advances under
      this Agreement and the Other Documents, nor shall it sell participating interest
      in the Advances provided, however, that such sale of participating interest
      or
      the sale, assignment or transfer of all or any part of its rights and
      obligations under or relating to the Revolving Advances in this Agreement shall
      be permitted without the consent of the Borrower in the event that (i) the
      Agent
      or any of its affiliates or subsidiaries shall merge with any other entity,
      or
      (ii) the Agent or any of its affiliates or subsidiaries should assign or
      otherwise transfer this Agreement and the right and obligations created
      thereunder as part of a bulk transfer with other credit facilities.

     

    15.4. Application
      of Payments.
      Agent
      shall have the continuing and exclusive right to apply or reverse and re-apply
      any payment and any and all proceeds of Collateral to any portion of the
      Obligations. To the extent that Borrower makes a payment or Agent or any Lender
      receives any payment or proceeds of the Collateral for Borrower’s benefit, which
      are subsequently invalidated, declared to be fraudulent or preferential, set
      aside or required to be repaid to a trustee, debtor in possession, receiver,
      custodian or any other party under any bankruptcy law, common law or equitable
      cause, then, to such extent, the Obligations or part thereof intended to be
      satisfied shall be revived and continue as if such payment or proceeds had
      not
      been received by Agent or such Lender.

     

    15.5. Indemnity. 
      Borrower
      shall indemnify Agent, each Lender and each of their respective officers,
      directors, Affiliates, attorneys, employees and agents from and against any
      and
      all liabilities, obligations, losses, damages, penalties, actions, judgments,
      suits, costs, expenses and disbursements of any kind or nature whatsoever
      (including fees and disbursements of counsel) which may be imposed on, incurred
      by, or asserted against Agent or any Lender in any claim, litigation, proceeding
      or investigation instituted or conducted by any Governmental Body or
      instrumentality or any other Person with respect to any aspect of, or any
      transaction contemplated by, or referred to in, or any matter related to, this
      Agreement or the Other Documents, whether or not Agent or any Lender is a party
      thereto, except to the extent that any of the foregoing arises out of the
      willful misconduct of the party being indemnified (as determined by a court
      of
      competent jurisdiction in a final and non-appealable judgment). Without limiting
      the generality of the foregoing, this indemnity shall extend to any liabilities,
      obligations, losses, damages, penalties, actions, judgments, suits, costs,
      expenses and disbursements of any kind or nature whatsoever (including fees
      and
      disbursements of counsel) asserted against or incurred by any of the indemnitees
      described above in this Section 15.5 by any Person under any Environmental
      Laws
      or similar laws by reason of Borrower’s or any other Person’s failure to comply
      with laws applicable to solid or hazardous waste materials, including Hazardous
      Substances and Hazardous Waste, or other Toxic Substances. Additionally, if
      any
      taxes (excluding taxes imposed upon or measured solely by the net income of
      Agent and Lenders, but including any intangibles taxes, stamp tax, recording
      tax
      or franchise tax) shall be payable by Agent, Lenders or Borrower on account
      of
      the execution or delivery of this Agreement, or the execution, delivery,
      issuance or recording of any of the Other Documents, or the creation or
      repayment of any of the Obligations hereunder, by reason of any Applicable
      Law
      now or hereafter in effect, Borrower will pay (or will promptly reimburse Agent
      and Lenders for payment of) all such taxes, including interest and penalties
      thereon, and will indemnify and hold the indemnitees described above in this
      Section 15.5 harmless from and against all liability in connection
      therewith.

     

    
      
        
        

      

      
        87

        
          

        

      

      
        
        

      

    

     

    15.6. Notice.
      Any
      notice or request hereunder may be given to Borrower or to Agent or any Lender
      at their respective addresses set forth below or at such other address as may
      hereafter be specified in a notice designated as a notice of change of address
      under this Section. Any notice, request, demand, direction or other
      communication (for purposes of this Section 15.6 only, a “Notice”) to be given
      to or made upon any party hereto under any provision of this Loan Agreement
      shall be given or made by telephone or in writing (which includes by means
      of
      electronic transmission (i.e., “e-mail”) or facsimile transmission or by setting
      forth such Notice on a site on the World Wide Web (a “Website Posting”) if
      Notice of such Website Posting (including the information necessary to access
      such site) has previously been delivered to the applicable parties hereto by
      another means set forth in this Section 15.6) in accordance with this Section
      15.6. Any such Notice must be delivered to the applicable parties hereto at
      the
      addresses and numbers set forth under their respective names on Section 15.6
      hereof or in accordance with any subsequent unrevoked Notice from any such
      party
      that is given in accordance with this Section 15.6. Any Notice shall be
      effective:

     

    (a) In
      the
      case of hand-delivery, when delivered;

     

    (b) If
      given
      by mail, four days after such Notice is deposited with the United States Postal
      Service, with first-class postage prepaid, return receipt requested;

     

    (c) In
      the
      case of a telephonic Notice, when a party is contacted by telephone, if delivery
      of such telephonic Notice is confirmed no later than the next Business Day
      by
      hand delivery, a facsimile or electronic transmission, a Website Posting or
      an
      overnight courier delivery of a confirmatory Notice (received at or before
      noon
      on such next Business Day);

     

    (d) In
      the
      case of a facsimile transmission, when sent to the applicable party’s facsimile
      machine’s telephone number, if the party sending such Notice receives
      confirmation of the delivery thereof from its own facsimile
      machine;

     

    (e) In
      the
      case of electronic transmission, when actually received;

     

    
      
        
        

      

      
        88

        
          

        

      

      
        
        

      

    

     

    (f) In
      the
      case of a Website Posting, upon delivery of a Notice of such posting (including
      the information necessary to access such site) by another means set forth in
      this Section 15.6; and

     

    (g) If
      given
      by any other means (including by overnight courier), when actually
      received.

     

    Any
      Lender giving a Notice to Borrower shall concurrently send a copy thereof to
      the
      Agent, and the Agent shall promptly notify the other Lenders of its receipt
      of
      such Notice.

     

    
      	
            	(A)	
              If
                to Agent or PNC at:

            

    

    

    PNC
      Bank,
      National Association

    70
      East
      55th Street

    14th
      Floor

    New
      York,
      New York 10022

    
      	
            	Attention:	
              John
                D. Trott, VP

            

    

    
      	
            	Telephone:	
              (212)
                752-6079

            

    

    
      	
            	Facsimile:	
              (212)
                303-0060

            

    

     

    with
      a
      copy to: 

     

    PNC
      Bank,
      National Association

    PNC
      Agency Services

    PNC
      Firstside Center

    500
      First
      Avenue, 4th Floor

    Pittsburgh,
      Pennsylvania 15219

    
      	 	
              Attention:

            	
              Lisa
                Pierce

            

    

    
      	 	
              Telephone:

            	
              (412)
                762-6442

            

    

    
      	 	
              Facsimile:

            	
              (412)
                762-8672

            

    

     

    with
      an
      additional copy to:

    

    Wilentz,
      Goldman and Spitzer P.A.

    90
      Woodbridge Center Drive

    Woodbridge,
      New Jersey 07095

    
      	
            	Attention:	
              Stuart
                A. Hoberman

            

    

    
      	
            	Telephone:	
              (732)
                855-6052

            

    

    
      	
            	Facsimile:	
              (732)
                855-6117

            

    

     

    
      
        
        

      

      
        89

        
          

        

      

      
        
        

      

    

     

    
      	 	
              (B)

            	
              If
                to a Lender other than Agent, as specified on the signature pages
                hereof

            

    

     

    
      	 	
              (C)

            	
              If
                to Borrower:

            

    

     

    BCI
      Communications, Inc.

    97
      Linden
      Avenue

    Elmwood
      Park, New Jersey 07407

    
      	 	
              Attention:

            	
              Nichoals
                Day, General Counsel and
                Raymond A. Cardonne, Jr.,
                CFO

            

    

    
      	 	
              Telephone:

            	
              201-791-3200

            

    

    
      	 	
              Facsimile:

            	
              201-794-8974

            

    

     

    with
      a
      copy to: 

    

    Reger
      Rizzo & Darnall, LLP

    Cira
      Centre, 13th
      Floor

    2929
      Arch
      Street

    Philadelphia,
      Pennsylvania 19104

    
      	
            	Attention:	
              Philip
                W. Fisher, Esq.

            

    

    
      	
            	Telephone:	
              (215)
                495-6500

            

    

    
      	
            	Facsimile:	
              (215)
                495-6600

            

    

    

    15.7. Survival.
      The
      obligations of Borrower under Sections 2.2(f), 3.7, 3.8, 3.9, 4.19(h), and
      15.5
      and the obligations of Lenders under Section 14.7, shall survive termination
      of
      this Agreement and the Other Documents and payment in full of the
      Obligations.

     

    15.8. Severability.
      If
      any
      part of this Agreement is contrary to, prohibited by, or deemed invalid under
      Applicable Laws or regulations, such provision shall be inapplicable and deemed
      omitted to the extent so contrary, prohibited or invalid, but the remainder
      hereof shall not be invalidated thereby and shall be given effect so far as
      possible.

     

    15.9. Expenses.
      All
      costs
      and expenses including reasonable attorneys’ fees (including the allocated costs
      of in house counsel) and disbursements incurred by Agent on its behalf or on
      behalf of Lenders (a) in all efforts made to enforce payment of any Obligation
      or effect collection of any Collateral, or (b) in connection with the entering
      into, modification, amendment, administration and enforcement of this Agreement,
      the Subordination Agreement or any consents or waivers hereunder or thereunder
      and all related agreements, documents and instruments, or (c) in instituting,
      maintaining, preserving, enforcing and foreclosing on Agent’s security interest
      in or Lien on any of the Collateral, or maintaining, preserving or enforcing
      any
      of Agent’s or any Lender’s rights hereunder, under the Subordination Agreement
      and under all related agreements, documents and instruments, whether through
      judicial proceedings or otherwise, or (d) in defending or prosecuting any
      actions or proceedings arising out of or relating to Agent’s or any Lender’s
      transactions with Borrower, any Guarantor or any Subordinated Lender or (e)
      in
      connection with any advice given to Agent or any Lender with respect to its
      rights and obligations under this Agreement, the Subordination Agreement and
      all
      related agreements, documents and instruments, may be charged to Borrower’s
      Account and shall be part of the Obligations.

     

    15.10. Injunctive
      Relief.
      Borrower
      recognizes that, in the event Borrower fails to perform, observe or discharge
      any of its obligations or liabilities under this Agreement, or threatens to
      fail
      to perform, observe or discharge such obligations or liabilities, any remedy
      at
      law may prove to be inadequate relief to Lenders; therefore, Agent, if Agent
      so
      requests, shall be entitled to temporary and permanent injunctive relief in
      any
      such case without the necessity of proving that actual damages are not an
      adequate remedy.

     

    
      
        
        

      

      
        90

        
          

        

      

      
        
        

      

    

     

    15.11. Damages.
      Neither
      Agent nor any Lender, nor any agent or attorney for any of them, shall be liable
      to Borrower or any Guarantor (or any Affiliate of any such Person) for indirect,
      punitive, exemplary or consequential damages arising from any breach of
      contract, tort or other wrong relating to the establishment, administration or
      collection of the Obligations or as a result of any transaction contemplated
      under this Agreement or any Other Document.

     

    15.12. Captions.
      The
      captions at various places in this Agreement are intended for convenience only
      and do not constitute and shall not be interpreted as part of this
      Agreement.

     

    15.13. Counterparts;
      Facsimile Signatures.
      This
      Agreement may be executed in any number of and by different parties hereto
      on
      separate counterparts, all of which, when so executed, shall be deemed an
      original, but all such counterparts shall constitute one and the same agreement.
      Any signature delivered by a party by facsimile transmission shall be deemed
      to
      be an original signature hereto.

     

    15.14. Construction. 
      The
      parties acknowledge that each party and its counsel have reviewed this Agreement
      and that the normal rule of construction to the effect that any ambiguities
      are
      to be resolved against the drafting party shall not be employed in the
      interpretation of this Agreement or any amendments, schedules or exhibits
      thereto.

     

    15.15. Confidentiality;
      Sharing Information.

     

    Agent,
      each Lender and each Transferee shall hold all non-public information obtained
      by Agent, such Lender or such Transferee pursuant to the requirements of this
      Agreement in accordance with Agent’s, such Lender’s and such Transferee’s
      customary procedures for handling confidential information of this nature;
      provided, however, Agent, each Lender and each Transferee may disclose such
      confidential information (a) to its examiners, Affiliates, outside auditors,
      counsel and other professional advisors, (b) to Agent, any Lender or to any
      prospective Transferees, and (c) as required or requested by any Governmental
      Body or representative thereof or pursuant to legal process; provided, further
      that (i) unless specifically prohibited by Applicable Law or court order, Agent,
      each Lender and each Transferee shall use its reasonable best efforts prior
      to
      disclosure thereof, to notify Borrower of the applicable request for disclosure
      of such non-public information (A) by a Governmental Body or representative
      thereof (other than any such request in connection with an examination of the
      financial condition of a Lender or a Transferee by such Governmental Body)
      or
      (B) pursuant to legal process and (ii) in no event shall Agent, any Lender
      or
      any Transferee be obligated to return any materials furnished by Borrower other
      than those documents and instruments in possession of Agent or any Lender in
      order to perfect its Lien on the Collateral once the Obligations have been
      paid
      in full and this Agreement has been terminated. Borrower acknowledges that
      from
      time to time financial advisory, investment banking and other services may
      be
      offered or provided to Borrower or one or more of its Affiliates (in connection
      with this Agreement or otherwise) by any Lender or by one or more Subsidiaries
      or Affiliates of such Lender and Borrower hereby authorizes each Lender to
      share
      any information delivered to such Lender by Borrower and its Subsidiaries
      pursuant to this Agreement, or in connection with the decision of such Lender
      to
      enter into this Agreement, to any such Subsidiary or Affiliate of such Lender,
      it being understood that any such Subsidiary or Affiliate of any Lender
      receiving such information shall be bound by the provisions of this Section
      15.15 as if it were a Lender hereunder. Such authorization shall survive the
      repayment of the other Obligations and the termination of this
      Agreement.

     

    
      
        
        

      

      
        91

        
          

        

      

      
        
        

      

    

     

    15.16. Publicity.
      Borrower
      and each Lender hereby authorizes Agent to make appropriate announcements of
      the
      financial arrangement entered into among Borrower, Agent and Lenders, including
      announcements which are commonly known as tombstones, in such publications
      and
      to such selected parties as Agent shall in its sole and absolute discretion
      deem
      appropriate.

     

    15.17. Certifications
      From Banks and Participants; US PATRIOT Act. 
      Each
      Lender or assignee or participant of a Lender that is not incorporated under
      the
      Laws of the United States of America or a state thereof (and is not excepted
      from the certification requirement contained in Section 313 of the USA PATRIOT
      Act and the applicable regulations because it is both (i) an affiliate of a
      depository institution or foreign bank that maintains a physical presence
      in the United States or foreign country, and (ii) subject to supervision by
      a
      banking authority regulating such affiliated depository institution or foreign
      bank) shall deliver to the Agent the certification, or, if applicable,
      recertification, certifying that such Lender is not a “shell” and certifying to
      other matters as required by Section 313 of the USA PATRIOT Act and the
      applicable regulations: (1) within 10 days after the Closing Date, and (2)
      as
      such other times as are required under the USA PATRIOT Act.

     

    

     

    Each
      of
      the parties has signed this Agreement as of the day and year first above
      written.

    

    

    
      	
              ATTEST:

            	 	
              BCI
                COMMUNICATIONS, INC.

            
	 	 	 	 
	 	 	 	 
	
                             
                

            	 	
              By:
                

            	
                        
                

            
	
              Name:
                NICHOLAS DAY

            	 	
              Name:
                

            	
              RICHARD
                BERLINER

            
	
              Title:
                General Counsel & Secretary

            	 	
              Title:
                

            	
              Chief
                Executive Officers & President

            
	 	 	 	 
	 	 	 	 
	 	 	
              PNC
                BANK, NATIONAL ASSOCIATION, 

            
	 	 	
              as
                Lender and as Agent

            
	 	 	 	 
	 	 	 	 
	 	 	
              By:
                

            	
                          
                        
                

            
	 	 	
              Name:
                

            	
              IVAN
                TRAJKOVIC

            
	 	 	
              Title:
                

            	
              Vice
                President

            
	 	 	 	 
	 	 	
              Commitment
                Percentage: 100%

            

    

    
      
        
        

      

      
        92

        
          

        

      

      
        
        

      

    

    List
      of Exhibits and Schedules

    

    Exhibits

    

    
      	
              Exhibit
                1.2

            	
              Borrowing
                Base Certificate

            
	
              Exhibit
                2.1(a) 

            	
              Revolving
                Credit Note

            
	
              Exhibit
                8.1(k)

            	
              Financial
                Condition Certificate

            
	
              Exhibit
                16.3 

            	
              Commitment
                Transfer Supplement

            
	 	 
	
              Schedules

            	 
	 	 
	
              Schedule
                1.2 

            	
              Permitted
                Encumbrances

            
	
              Schedule
                4.5 

            	
              Equipment
                and Inventory Locations

            
	
              Schedule
                4.15(h)

            	
              Deposit
                and Investment Accounts

            
	
              Schedule
                4.19

            	
              Real
                Property

            
	
              Schedule
                5.1

            	
              Consents

            
	
              Schedule
                5.2(a) 

            	
              States
                of Qualification and Good Standing

            
	
              Schedule
                5.2(b) 

            	
              Subsidiaries

            
	
              Schedule
                5.4

            	
              Federal
                Tax Identification Number

            
	
              Schedule
                5.6 

            	
              Prior
                Names

            
	
              Schedule
                5.8(b) 

            	
              Litigation

            
	
              Schedule
                5.8(d) 

            	
              Plans

            
	
              Schedule
                5.9 

            	
              Intellectual
                Property, Source Code Escrow Agreements

            
	
              Schedule
                5.10 

            	
              Licenses
                and Permits

            
	
              Schedule
                5.14 

            	
              Labor
                Disputes

            
	
              Schedule
                7.3 

            	
              Guarantees/Bonds

            

    

     

    
      
        
        

      

      
        93

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