Document:

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                                                                    Exhibit 10.3

                                  SCHEDULE 3.1

     The obligation of each Lender to make its initial extension of credit
provided for in the Agreement is subject to the fulfillment, to the satisfaction
of each Lender (the making of such initial extension of credit by any Lender
being conclusively deemed to be its satisfaction or waiver of the following), of
each of the following conditions precedent:

          (a) Administrative Agent shall have received evidence that appropriate
financing statements have been duly filed in such office or offices as may be
necessary or, in the opinion of Administrative Agent, desirable to perfect the
Administrative Agent's Liens in and to the Collateral, and Administrative Agent
shall have received evidence satisfactory to Administrative Agent reflecting the
filing of all such financing statements;

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

               (i) this Agreement,

               (ii) the Security Agreement,

               (iii) a disbursement letter executed and delivered by Borrower to
Administrative Agent regarding the extensions of credit to be made on the
Closing Date, the form and substance of which is satisfactory to Administrative
Agent,

               (iv) the Fee Letter,

               (v) the Lender Assignment Agreement, and

               (vi) the Perfection Certificate.

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

          (d) Administrative Agent shall have received copies of Borrower's
Governing Documents, as amended, modified, or supplemented to the Closing Date,
certified by the Secretary of Borrower and by the appropriate officer of
Borrower's jurisdiction of organization;

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

          (f) Administrative Agent shall have received certificates of status
with respect to Borrower, each dated within 30 days of the Closing Date, such
certificates to be issued by the appropriate officer of the jurisdictions (other
than the jurisdiction of organization of Borrower) in

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which its failure to be duly qualified or licensed would constitute a Material
Adverse Change, which certificates shall indicate that Borrower is in good
standing in such jurisdictions;

          (g) Administrative Agent shall have received opinions of Borrower's
counsel in form and substance satisfactory to Administrative Agent;

          (h) Borrower shall have the Required Availability after giving effect
to the initial extensions of credit hereunder and the payment of all fees and
expenses required to be paid by Borrower on the Closing Date under this
Agreement or the other Loan Documents;

          (i) If necessary for the calculation of Required Availability,
Borrower shall have remitted by wire transfer to Administrative Agent all cash
(and delivered all cash equivalents in such manner as directed by Administrative
Agent) of Borrower utilized to calculate the Required Availability;

          (j) Administrative Agent shall have completed their business, legal,
and collateral due diligence, including (i) a collateral audit and review of
Borrower's and its Subsidiaries books and records and verification of Borrower's
representations and warranties to Lender Group, the results of which shall be
satisfactory to Administrative Agent, (ii) an inspection of each of the
locations where Borrower's and its Subsidiaries' Inventory is located, and (iii)
completion of a pre-funding audit, the results of which shall be satisfactory to
Administrative Agent;

          (k) Administrative Agent shall have received a set of Projections for
the three (3) year period following the Closing Date (on a year by year basis,
and for the one (1) year period following the Closing Date, on a month by month
basis), in form and substance (including as to scope and underlying assumptions)
satisfactory to Administrative Agent;

          (l) Borrower shall have paid all Lender Group Expenses incurred in
connection with the transactions evidenced by this Agreement;

          (m) Administrative Agent shall have received Uniform Commercial Code,
tax lien and litigation searches, the results of which shall be satisfactory to
Administrative Agent;

          (n) No material adverse change shall have occurred in Borrower's
financial condition or prospects or in the value of the Collateral;

          (o) No material adverse conditions in loan syndication or financial or
capital market conditions generally that would make the proposed syndication
impracticable or materially more burdensome shall have occurred;

          (p) Borrower and each of its Subsidiaries shall have received all
licenses, approvals or evidence of other actions required by any Governmental
Authority, stockholder, director or any third party in connection with the
execution and delivery by Borrower or its Subsidiaries of the Loan Documents or
with the consummation of the transactions contemplated thereby;

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

          (r) Administrative Agent shall have received a certificate from the
Chief Financial Officer of the Borrower dated as of the Closing Date certifying
(i) as to the truth and accuracy of the representations and warranties made by
Borrower in the Credit Agreement and the other Loan Documents, and (ii) that
before and after giving effect to the extensions of credit to be made on the
Closing Date, (x) no Default or Event of Default shall have occurred and be
continuing, and (y) Borrower and each of its Subsidiaries is Solvent.

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                                                                    Exhibit 10.4

                                  SCHEDULE 5.2

     Provide Administrative Agent with each of the documents set forth below at
the following times in form satisfactory to Administrative Agent (and if so
requested by Administrative Agent, with copies for each Lender):

<TABLE>
<S>                     <C>
Weekly, provided,            (a) an Account roll-forward with supporting details
however, that if, at    supplied from sales journals, collection journals,
any time, Excess        credit registers and any other records,
Availability shall be
in an amount less            (b) notice of all claims, offsets, or disputes
than $1,500,000, the    asserted by Account Debtors with respect to Borrower's
documents identified    and its Subsidiaries' Accounts, and
in (a), (b) and (c)
shall be provided on         (c) copies of invoices together with corresponding
a daily basis until     shipping and delivery documents, and credit memos
such time as Excess     together with corresponding supporting documentation,
Availability shall be   with respect to invoices and credit memos in excess of
in an amount equal to   an amount determined in the sole discretion of
or in excess of         Administrative Agent, from time to time, and
$1,500,000
                             (d) a detailed report of all Investments made by
                        Borrower to any of its Subsidiaries during the prior
                        week.

Each Monthly Period          (e) a Borrowing Base Certificate,
(no later than the
10th Business Day            (f) a detailed aging, by total, of Borrower's
after the start of      Accounts, together with a reconciliation and supporting
such Monthly Period)    documentation for any reconciling items noted (delivered
                        electronically in an acceptable format, if Borrower has
                        implemented electronic reporting),

                             (g) a detailed calculation of those Accounts that
                        are not eligible for the Borrowing Base, if Borrower has
                        not implemented electronic reporting,

                             (h) a report in form and substance satisfactory to
                        Administrative Agent and certified by Borrower as being
                        accurate and complete listing all Accounts relating to
                        Government Contracts as of such date, which shall
                        include the amount and age of each such Account, showing
                        separately those which are more than 30, 60, 90 or 120
                        days old (delivered electronically in an acceptable
                        format, if
</TABLE>

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<TABLE>
<S>                     <C>
                        Borrower has implemented electronic reporting) and a
                        description of all Liens, set-offs, defenses and
                        counterclaims with respect thereto, together with a
                        reconciliation of such schedule with the schedule
                        delivered in the previous month,

                             (i) Inventory system/perpetual reports specifying
                        the cost and the wholesale market value of Borrower's
                        and its Subsidiaries' Inventory, by category, with
                        additional detail showing additions to and deletions
                        therefrom (delivered electronically in an acceptable
                        format, if Borrower has implemented electronic
                        reporting),

                             (j) a detailed Inventory system/perpetual report
                        together with a reconciliation to Borrower's general
                        ledger accounts (delivered electronically in an
                        acceptable format, if Borrower has implemented
                        electronic reporting),

                             (k) a detailed calculation of Inventory categories
                        that are not eligible for the Borrowing Base, if
                        Borrower has not implemented electronic reporting,

                             (l) a summary aging, by vendor, of Borrower's and
                        its Subsidiaries' accounts payable and any book
                        overdraft (delivered electronically in an acceptable
                        format, if Borrower has implemented electronic
                        reporting) and an aging, by vendor, of any held checks,

                             (m) certified copies of tax receipts evidencing
                        such payment by Borrower of its taxes, including real
                        estate and ad valorem taxes,

                             (n) a detailed report of Borrower's and its
                        Subsidiaries' backlog,

                             (o) a detailed report regarding Borrower's and its
                        Subsidiaries' cash and Cash Equivalents, including an
                        indication of which amounts constitute Qualified Cash,
                        and

                             (p) a monthly Account roll-forward, in a format
                        acceptable to Administrative Agent in its discretion,
                        tied to the beginning and ending account receivable
                        balances of Borrower's general ledger.

Each Monthly Period          (q) a reconciliation of Accounts, trade accounts
(on the last Business   payable, and Inventory of Borrower's general ledger
Day of such Monthly     accounts to its monthly financial statements including
Period)                 any book reserves related to each category, in each case
                        with respect to the prior Monthly Period.

Annually                     (r) a detailed list of Borrower's and its
                        Subsidiaries' customers, with address and contact
                        information.
</TABLE>

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<TABLE>
<S>                     <C>
                             (s) a physical Inventory.

Upon request by              (t) copies of purchase orders and invoices for
Administrative Agent    Inventory acquired by Borrower or its Subsidiaries, and

                             (u) such other reports as to the Collateral or the
                        financial condition of Borrower and its Subsidiaries, as
                        Administrative Agent may reasonably request.
</TABLE>

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