Document:

Unassociated Document

    Exhibit
      10.8

    

    REVOLVING
      LINE OF CREDIT NOTE

    

    
      	$20,000,000.00	
              Long
                Beach, California

            
	 	
              March
                19, 2007

            

    

    

    FOR
      VALUE
      RECEIVED, the undersigned Target Logistic Services, Inc. (“Borrower”) promises
      to pay to the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) at its
      office at South Bay RCBO, 111 West Ocean Blvd., Suite #530, Long Beach,
      California, 90802 or at such other place as the holder hereof may designate,
      in
      lawful money of the United States of America and in immediately available funds,
      the principal sum of Twenty Million Dollars ($20,000,000.00), or so much thereof
      as may be advanced and be outstanding, with interest thereon, to be computed
      on
      each advance from the date of its disbursement as set forth herein.

    

    DEFINITIONS:

    

    As
      used
      herein, the following terms shall have the meanings set forth after each, and
      any other term defined in this Note shall have the meaning set forth at the
      place defined:

    

    (a) “Business
      Day” means any day except a Saturday, Sunday or any other day on which
      commercial banks in California are authorized or required by law to
      close.

    

    (b) “Fixed
      Rate Term” means a period commencing on a Business Day and continuing for 1, 2,
      3 or 6 months, as designated by Borrower, during which all or a portion of
      the
      outstanding principal balance of this Note bears interest determined in relation
      to LIBOR; provided however, that no Fixed Rate Term may be selected for a
      principal amount less than Two Hundred Fifty Thousand Dollars ($250,000.00);
      and
      provided further, that no Fixed Rate Term shall extend beyond the scheduled
      maturity date hereof. If any Fixed Rate Term would end on a day which is not
      a
      Business Day, then such Fixed Rate Term shall be extended to the next succeeding
      Business Day.

    

    (c) “LIBOR”
      means the rate per annum (rounded upward, if necessary, to the nearest whole
      1/8
      of 1%) and determined pursuant to the following formula:

    

    
      	
              LIBOR
                =

            	 	
              Base
                LIBOR

            	 
	 	 	
              100%
                - LIBOR Reserve Percentage

            	 

    

    

    (i)
      “Base
      LIBOR” means the rate per annum for United States dollar deposits quoted by Bank
      as the Inter-Bank Market Offered Rate, with the understanding that such rate
      is
      quoted by Bank for the purpose of calculating effective rates of interest for
      loans making reference thereto, on the first day of a Fixed Rate Term for
      delivery of funds on said date for a period of time approximately equal to
      the
      number of days in such Fixed Rate Term and in an amount approximately equal
      to
      the principal amount to which such Fixed Rate Term applies. Borrower understands
      and agrees that Bank may base its quotation of the Inter-Bank Market Offered
      Rate upon such offers or other market indicators of the Inter-Bank Market as
      Bank in its discretion deems appropriate including, but not limited to, the
      rate
      offered for U.S. dollar deposits on the London Inter-Bank Market.

    

    (ii)
      “LIBOR
      Reserve Percentage” means the reserve percentage prescribed by the Board of
      Governors of the Federal Reserve System (or any successor) for “Eurocurrency
      Liabilities” (as defined in Regulation D of the Federal Reserve Board, as
      amended), adjusted by Bank for expected changes in such reserve percentage
      during the applicable Fixed Rate Term.

    

    (d) “Prime
      Rate” means at any time the rate of interest most recently announced within Bank
      at its principal office as its Prime Rate, with the understanding that the
      Prime
      Rate is one of Bank’s base rates and serves as the basis upon which effective
      rates of interest are calculated for those loans making reference thereto,
      and
      is evidenced by the recording thereof after its announcement in such internal
      publication or publications as Bank may designate.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    INTEREST:

    

    (a) Interest.
      The
      outstanding principal balance of this Note shall bear interest (computed on
      the
      basis of a 360-day year, actual days elapsed) either (i) at a fluctuating rate
      per annum 0.25% below the Prime Rate in effect from time to time, or (ii) at
      a
      fixed rate per annum determined by Bank to be 1.50% above LIBOR in effect on
      the
      first day of the applicable Fixed Rate Term. When interest is determined in
      relation to the Prime Rate, each change in the rate of interest hereunder shall
      become effective on the date each Prime Rate change is announced within Bank.
      With respect to each LIBOR selection hereunder, Bank is hereby authorized to
      note the date, principal amount, interest rate and Fixed Rate Term applicable
      thereto and any payments made thereon on Bank’s books and records (either
      manually or by electronic entry) and/or on any schedule attached to this Note,
      which notations shall be prima facie evidence of the accuracy of the information
      noted.

    

    (b) Selection
      of Interest Rate Options.
      At any
      time any portion of this Note bears interest determined in relation to LIBOR,
      it
      may be continued by Borrower at the end of the Fixed Rate Term applicable
      thereto so that all or a portion thereof bears interest determined in relation
      to the Prime Rate or to LIBOR for a new Fixed Rate Term designated by Borrower.
      At any time any portion of this Note bears interest determined in relation
      to
      the Prime Rate, Borrower may convert all or a portion thereof so that it bears
      interest determined in relation to LIBOR for a Fixed Rate Term designated by
      Borrower. At such time as Borrower requests an advance hereunder or wishes
      to
      select a LIBOR option for all or a portion of the outstanding principal balance
      hereof, and at the end of each Fixed Rate Term, Borrower shall give Bank notice
      specifying: (i) the interest rate option selected by Borrower; (ii) the
      principal amount subject thereto; and (iii) for each LIBOR selection, the length
      of the applicable Fixed Rate Term. Any such notice may be given by telephone
      (or
      such other electronic method as Bank may permit) so long as, with respect to
      each LIBOR selection, (A) if requested by Bank, Borrower provides to Bank
      written confirmation thereof not later than three (3) Business Days after such
      notice is given, and (B) such notice is given to Bank prior to 10:00 a.m. on
      the
      first day of the Fixed Rate Term, or at a later time during any Business Day
      if
      Bank, at its sole option but without obligation to do so, accepts Borrower’s
      notice and quotes a fixed rate to Borrower. If Borrower does not immediately
      accept a fixed rate when quoted by Bank, the quoted rate shall expire and any
      subsequent LIBOR request from Borrower shall be subject to a redetermination
      by
      Bank of the applicable fixed rate. If no specific designation of interest is
      made at the time any advance is requested hereunder or at the end of any Fixed
      Rate Term, Borrower shall be deemed to have made a Prime Rate interest selection
      for such advance or the principal amount to which such Fixed Rate Term
      applied.

    

    (c) Taxes
      and Regulatory Costs.
      Borrower shall pay to Bank immediately upon demand, in addition to any other
      amounts due or to become due hereunder, any and all (i) withholdings, interest
      equalization taxes, stamp taxes or other taxes (except income and franchise
      taxes) imposed by any domestic or foreign governmental authority and related
      in
      any manner to LIBOR, and (ii) future, supplemental, emergency or other changes
      in the LIBOR Reserve Percentage, assessment rates imposed by the Federal Deposit
      Insurance Corporation, or similar requirements or costs imposed by any domestic
      or foreign governmental authority or resulting from compliance by Bank with
      any
      request or directive (whether or not having the force of law) from any central
      bank or other governmental authority and related in any manner to LIBOR to
      the
      extent they are not included in the calculation of LIBOR. In determining which
      of the foregoing are attributable to any LIBOR option available to Borrower
      hereunder, any reasonable allocation made by Bank among its operations shall
      be
      conclusive and binding upon Borrower.

    

    (d) Payment
      of Interest.
      Interest accrued on this Note shall be payable on the 1st day of each month,
      commencing April 1, 2007.

    

    (e) Default
      Interest.
      From
      and after the maturity date of this Note, or such earlier date as all principal
      owing hereunder becomes due and payable by acceleration or otherwise, the
      outstanding principal balance of this Note shall bear interest until paid in
      full at an increased rate per annum (computed on the basis of a 360-day year,
      actual days elapsed) equal to four percent (4%) above the rate of interest
      from
      time to time applicable to this Note.

    

    BORROWING
      AND REPAYMENT:

    

    (a) Borrowing
      and Repayment.
      Borrower may from time to time during the term of this Note borrow, partially
      or
      wholly repay its outstanding borrowings, and reborrow, subject to all of the
      limitations, terms and conditions of this Note and of any document executed
      in
      connection with or governing this Note; provided however, that the total
      outstanding borrowings under this Note shall not at any time exceed the
      principal amount stated above. The unpaid principal balance of this obligation
      at any time shall be the total amounts advanced hereunder by the holder hereof
      less the amount of principal payments made hereon by or for Borrower, which
      balance may be endorsed hereon from time to time by the holder. The outstanding
      principal balance of this Note shall be due and payable in full on December
      1,
      2009.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    (b) Advances.
      Advances hereunder, to the total amount of the principal sum stated above,
      may
      be made by the holder at the oral or written request of (i) Sue Beattie or
      Stuart Hettleman or Phlip Dubato or Christopher Coppersmith or Ron Frady, any
      one acting alone, who are authorized to request advances and direct the
      disposition of any advances until written notice of the revocation of such
      authority is received by the holder at the office designated above, or (ii)
      any
      person, with respect to advances deposited to the credit of any deposit account
      of Borrower, which advances, when so deposited, shall be conclusively presumed
      to have been made to or for the benefit of Borrower regardless of the fact
      that
      persons other than those authorized to request advances may have authority
      to
      draw against such account. The holder shall have no obligation to determine
      whether any person requesting an advance is or has been authorized by
      Borrower.

    

    (c) Application
      of Payments.
      Each
      payment made on this Note shall be credited first, to any interest then due
      and
      second, to the outstanding principal balance hereof. All payments credited
      to
      principal shall be applied first, to the outstanding principal balance of this
      Note which bears interest determined in relation to the Prime Rate, if any,
      and
      second, to the outstanding principal balance of this Note which bears interest
      determined in relation to LIBOR, with such payments applied to the oldest Fixed
      Rate Term first.

    

    PREPAYMENT:

    

    (a) Prime
      Rate.
      Borrower may prepay principal on any portion of this Note which bears interest
      determined in relation to the Prime Rate at any time, in any amount and without
      penalty.

    

    (b) LIBOR.
      Borrower may prepay principal on any portion of this Note which bears interest
      determined in relation to LIBOR at any time and in the minimum amount of Two
      Hundred Fifty Thousand Dollars ($250,000.00); provided however, that if the
      outstanding principal balance of such portion of this Note is less than said
      amount, the minimum prepayment amount shall be the entire outstanding principal
      balance thereof. In consideration of Bank providing this prepayment option
      to
      Borrower, or if any such portion of this Note shall become due and payable
      at
      any time prior to the last day of the Fixed Rate Term applicable thereto by
      acceleration or otherwise, Borrower shall pay to Bank immediately upon demand
      a
      fee which is the sum of the discounted monthly differences for each month from
      the month of prepayment through the month in which such Fixed Rate Term matures,
      calculated as follows for each such month:

    

    
      	
            	(i)	
              Determine
                the amount of interest which would have accrued each month on the
                amount
                prepaid at the interest rate applicable to such amount had it remained
                outstanding until the last day of the Fixed Rate Term applicable
                thereto.

            

    

    

    
      	
            	(ii)	
              Subtract
                from the amount determined in (i) above the amount of interest which
                would
                have accrued for the same month on the amount prepaid for the remaining
                term of such Fixed Rate Term at LIBOR in effect on the date of prepayment
                for new loans made for such term and in a principal amount equal
                to the
                amount prepaid.

            

    

    

    
      	
            	(iii)	
              If
                the result obtained in (ii) for any month is greater than zero, discount
                that difference by LIBOR used in (ii)
                above.

            

    

    

    Borrower
      acknowledges that prepayment of such amount may result in Bank incurring
      additional costs, expenses and/or liabilities, and that it is difficult to
      ascertain the full extent of such costs, expenses and/or liabilities. Borrower,
      therefore, agrees to pay the above-described prepayment fee and agrees that
      said
      amount represents a reasonable estimate of the prepayment costs, expenses and/or
      liabilities of Bank. If Borrower fails to pay any prepayment fee when due,
      the
      amount of such prepayment fee shall thereafter bear interest until paid at
      a
      rate per annum 2.0% above the Prime Rate in effect from time to time (computed
      on the basis of a 360-day year, actual days elapsed).

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    EVENTS
      OF
      DEFAULT:

    

    This
      Note
      is made pursuant to and is subject to the terms and conditions of that certain
      Credit Agreement between Borrower and Bank dated as of March 19, 2007, as
      amended from time to time (the “Credit Agreement”). Any default in the payment
      or performance of any obligation under this Note, or any defined event of
      default under the Credit Agreement, shall constitute an “Event of Default” under
      this Note.

    

    MISCELLANEOUS:

    

    (a) Remedies.
      Upon
      [the sale, transfer, hypothecation, assignment or other encumbrance, whether
      voluntary, involuntary or by operation of law, of all or any interest in any
      real property securing this Note, or upon] the occurrence of any Event of
      Default, the holder of this Note, at the holder’s option, may declare all sums
      of principal and interest outstanding hereunder to be immediately due and
      payable without presentment, demand, notice of nonperformance, notice of
      protest, protest or notice of dishonor, all of which are expressly waived by
      Borrower, and the obligation, if any, of the holder to extend any further credit
      hereunder shall immediately cease and terminate. Borrower shall pay to the
      holder immediately upon demand the full amount of all payments, advances,
      charges, costs and expenses, including reasonable attorneys’ fees (to include
      outside counsel fees and all allocated costs of the holder’s in-house counsel),
      expended or incurred by the holder in connection with the enforcement of the
      holder’s rights and/or the collection of any amounts which become due to the
      holder under this Note, and the prosecution or defense of any action in any
      way
      related to this Note, including without limitation, any action for declaratory
      relief, whether incurred at the trial or appellate level, in an arbitration
      proceeding or otherwise, and including any of the foregoing incurred in
      connection with any bankruptcy proceeding (including without limitation, any
      adversary proceeding, contested matter or motion brought by Bank or any other
      person) relating to Borrower or any other person or entity.

    

    (b) Obligations
      Joint and Several.
      Should
      more than one person or entity sign this Note as a Borrower, the obligations
      of
      each such Borrower shall be joint and several.

    

    (c) Governing
      Law.
      This
      Note shall be governed by and construed in accordance with the laws of the
      State
      of California.

    

    IN
      WITNESS WHEREOF, the undersigned has executed this Note as of the date first
      written above.

    

    Target
      Logistic Services, Inc.

    

    By:
      /s/
      Philip J. Dubato 

    
      

    

    Title:
      Vice President

    

    
      
        
        

      

      
        -4-Unassociated Document

    Exhibit
      10.9

    

    CONTINUING
      SECURITY AGREEMENT:

    RIGHTS
      TO
      PAYMENT

    

    1. GRANT
      OF
      SECURITY INTEREST. For valuable consideration, the undersigned Target Logistic
      Services, Inc., or any of them (“Debtor”), hereby grants and transfers to WELLS
      FARGO BANK, NATIONAL ASSOCIATION (“Bank”) a security interest in all accounts,
      deposit accounts, chattel paper (whether electronic or tangible), instruments,
      promissory notes, documents, general intangibles, payment intangibles, software,
      letter of credit rights, health-care insurance receivables and other rights
      to
      payment (collectively called “Collateral”), now existing or at any time
      hereafter, and prior to the termination hereof, arising (whether they arise
      from
      the sale, lease or other disposition of inventory or from performance of
      contracts for service, manufacture, construction, repair or otherwise or from
      any other source whatsoever), including all securities, guaranties, warranties,
      indemnity agreements, insurance policies, supporting obligations and other
      agreements pertaining to the same or the property described therein, and in
      all
      goods returned by or repossessed from Debtor’s customers, together with whatever
      is receivable or received when any of the Collateral or proceeds thereof are
      sold, collected, exchanged or otherwise disposed of, whether such disposition
      is
      voluntary or involuntary, including without limitation, all rights to payment,
      including returned premiums, with respect to any insurance relating to any
      of
      the foregoing, and all rights to payment with respect to any claim or cause
      of
      action affecting or relating to any of the foregoing (hereinafter called
“Proceeds”).

    

    2. OBLIGATIONS
      SECURED. The obligations secured hereby are the payment and performance of:
      (a)
      all present and future Indebtedness of Debtor to Bank; (b) all obligations
      of
      Debtor and rights of Bank under this Agreement; and (c) all present and future
      obligations of Debtor to Bank of other kinds. The word “Indebtedness” is used
      herein in its most comprehensive sense and includes any and all advances, debts,
      obligations and liabilities of Debtor, or any of them, heretofore, now or
      hereafter made, incurred or created, whether voluntary or involuntary and
      however arising, whether due or not due, absolute or contingent, liquidated
      or
      unliquidated, determined or undetermined, including under any swap, derivative,
      foreign exchange, hedge, deposit, treasury management or other similar
      transaction or arrangement, and whether Debtor may be liable individually or
      jointly with others, or whether recovery upon such Indebtedness may be or
      hereafter becomes unenforceable.

    

    3. TERMINATION.
      This Agreement will terminate upon the performance of all obligations of Debtor
      to Bank, including without limitation, the payment of all Indebtedness of Debtor
      to Bank, and the termination of all commitments of Bank to extend credit to
      Debtor, existing at the time Bank receives written notice from Debtor of the
      termination of this Agreement.

    

    4. REPRESENTATIONS
      AND WARRANTIES. Debtor represents and warrants to Bank that: (a) Debtor’s
      legal name is exactly as set forth on the first page of this Agreement, and
      all
      of Debtor’s organizational documents or agreements delivered to Bank are
      complete and accurate in every respect; (b) Debtor is the owner and has
      possession or control of the Collateral and Proceeds; (c) Debtor has the
      exclusive right to grant a security interest in the Collateral and Proceeds;
      (d)
      all Collateral and Proceeds are genuine, free from liens, adverse claims,
      setoffs, default, prepayment, defenses and conditions precedent of any kind
      or
      character, except the lien created hereby or as otherwise agreed to by Bank,
      or
      as heretofore disclosed by Debtor to Bank, in writing; (e) all statements
      contained herein and, where applicable, in the Collateral are true and complete
      in all material respects; (f) no financing statement covering any of the
      Collateral or Proceeds, and naming any secured party other than Bank, is on
      file
      in any public office; (g) all persons appearing to be obligated on Collateral
      and Proceeds have authority and capacity to contract and are bound as they
      appear to be; (h) all property subject to chattel paper has been properly
      registered and filed in compliance with law and to perfect the interest of
      Debtor in such property; and (i) all Collateral and Proceeds comply with all
      applicable laws concerning form, content and manner of preparation and
      execution, including where applicable Federal Reserve Regulation Z and any
      State
      consumer credit laws.

    

    5. COVENANTS
      OF DEBTOR

    

    (a) Debtor
      agrees in general: (i) to pay Indebtedness secured hereby when due; (ii) to
      indemnify Bank against all losses, claims, demands, liabilities and expenses
      of
      every kind caused by property subject hereto; (iii) to permit Bank to exercise
      its powers; (iv) to execute and deliver such documents as Bank deems necessary
      to create, perfect and continue the security interests contemplated hereby;
      (v)
      not to change its name, and as applicable, its chief executive office, its
      principal residence or the jurisdiction in which it is organized and/or
      registered without giving Bank prior written notice thereof; (vi) not to change
      the places where Debtor keeps any Collateral or Debtor’s records concerning the
      Collateral and Proceeds without giving Bank prior written notice of the address
      to which Debtor is moving same; and (vii) to cooperate with Bank in
      perfecting all security interests granted herein and in obtaining such
      agreements from third parties as Bank deems necessary, proper or convenient
      in
      connection with the preservation, perfection or enforcement of any of its rights
      hereunder.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (b) Debtor
      agrees with regard to the Collateral and Proceeds, unless Bank agrees otherwise
      in writing: (i) that Bank is authorized to file financing statements in the
      name
      of Debtor to perfect Bank’s security interest in Collateral and Proceeds;
      (ii) where applicable, to insure the Collateral with Bank named as loss
      payee, in form, substance and amounts, under agreements, against risks and
      liabilities, and with insurance companies satisfactory to Bank; (iii) not to
      permit any lien on the Collateral or Proceeds, except in favor of Bank;
      (iv) not to sell, hypothecate or otherwise dispose of, nor permit the
      transfer by operation of law of, any of the Collateral or Proceeds or any
      interest therein; (v) to keep, in accordance with generally accepted
      accounting principles, complete and accurate records regarding all Collateral
      and Proceeds, and to permit Bank to inspect the same and make copies thereof
      at
      any reasonable time; (vi) if requested by Bank, to receive and use
      reasonable diligence to collect Proceeds, in trust and as the property of Bank,
      and to immediately endorse as appropriate and deliver such Proceeds to Bank
      daily in the exact form in which they are received together with a collection
      report in form satisfactory to Bank; (vii) not to commingle Collateral or
      Proceeds, or collections thereunder, with other property; (viii) to give only
      normal allowances and credits and to advise Bank thereof immediately in writing
      if they affect any Collateral or Proceeds in any material respect; (ix) on
      demand, to deliver to Bank returned property resulting from, or payment equal
      to, such allowances or credits on any Collateral or Proceeds or to execute
      such
      documents and to do such other things as Bank may reasonably request for the
      purpose of perfecting, preserving and enforcing its security interest in such
      returned property; (x) from time to time, when requested by Bank, to
      prepare and deliver a schedule of all Collateral and Proceeds subject to this
      Agreement and to assign in writing and deliver to Bank all accounts, contracts,
      leases and other chattel paper, instruments, documents and other evidences
      thereof; (xi) not to allow any financing statement covering any of Debtor’s
      inventory or proceeds thereof to be on file in any public office without Bank’s
      prior written consent; (xii) in the event Bank elects to receive payments of
      Collateral or Proceeds hereunder, to pay all expenses incurred by Bank in
      connection therewith, including expenses of accounting, correspondence,
      collection efforts, reporting to account or contract debtors, filing, recording,
      record keeping and expenses incidental thereto; and (xiii) to provide any
      service and do any other acts which may be necessary to keep all Collateral
      and
      Proceeds free and clear of all defenses, rights of offset and
      counterclaims.

    

    6. POWERS
      OF
      BANK. Debtor appoints Bank its true attorney in fact to perform any of the
      following powers, which are coupled with an interest, are irrevocable until
      termination of this Agreement and may be exercised from time to time by Bank’s
      officers and employees, or any of them, if an Event of Default (defined below)
      exists: (a) to perform any obligation of Debtor hereunder in Debtor’s name or
      otherwise; (b) to give notice to account debtors or others of Bank’s rights in
      the Collateral and Proceeds, to enforce or forebear from enforcing the same
      and
      make extension or modification agreements with respect thereto; (c) to release
      persons liable on Collateral or Proceeds and to give receipts and acquittances
      and compromise disputes in connection therewith; (d) to release or substitute
      security; (e) to resort to security in any order; (f) to prepare, execute,
      file,
      record or deliver notes, assignments, schedules, designation statements,
      financing statements, continuation statements, termination statements,
      statements of assignment, applications for registration or like papers to
      perfect, preserve or release Bank’s interest in the Collateral and Proceeds; (g)
      to receive, open and read mail addressed to Debtor; (h) to take cash,
      instruments for the payment of money and other property to which Bank is
      entitled; (i) to verify facts concerning the Collateral and Proceeds by inquiry
      of obligors thereon, or otherwise, in its own name or a fictitious name; (j)
      to
      endorse, collect, deliver and receive payment under instruments for the payment
      of money constituting or relating to Proceeds; (k) to prepare, adjust, execute,
      deliver and receive payment under insurance claims, and to collect and receive
      payment of and endorse any instrument in payment of loss or returned premiums
      or
      any other insurance refund or return, and to apply such amounts received by
      Bank, at Bank’s sole option, toward repayment of the Indebtedness; (l) to
      exercise all rights, powers and remedies which Debtor would have, but for this
      Agreement, with respect to all Collateral and Proceeds subject hereto;
      (m) to make withdrawals from and to close deposit accounts or other
      accounts with any financial institution, wherever located, into which Proceeds
      may have been deposited, and to apply funds so withdrawn to payment of the
      Indebtedness; (n) to preserve or release the interest evidenced by chattel
      paper to which Bank is entitled hereunder and to endorse and deliver any
      evidence of title incidental thereto; and (o) to do all acts and things and
      execute all documents in the name of Debtor or otherwise, deemed by Bank as
      necessary, proper and convenient in connection with the preservation, perfection
      or enforcement of its rights hereunder. Notwithstanding the foregoing, the
      powers of Bank under the following described subdivisions of the preceding
      sentence may be exercised whether or not an Event of Default exists: (b), (d),
      (f), (i), (n), and as it relates to the preservation or perfection of Bank’s
      rights hereunder, (o). 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    7. PAYMENT
      OF PREMIUMS, TAXES, CHARGES, LIENS AND ASSESSMENTS. Debtor agrees to pay, prior
      to delinquency, all insurance premiums, taxes, charges, liens and assessments
      against the Collateral and Proceeds, and upon the failure of Debtor to do so,
      Bank at its option may pay any of them and shall be the sole judge of the
      legality or validity thereof and the amount necessary to discharge the same.
      Any
      such payments made by Bank shall be obligations of Debtor to Bank, due and
      payable immediately upon demand, together with interest at a rate determined
      in
      accordance with the provisions of this Agreement, and shall be secured by the
      Collateral and Proceeds, subject to all terms and conditions of this
      Agreement.

    

    8. EVENTS
      OF
      DEFAULT. The occurrence of any of the following shall constitute an “Event of
      Default” under this Agreement: (a) any default in the payment or performance of
      any obligation, or any defined event of default, under (i) any contract or
      instrument evidencing any Indebtedness, or (ii) any other agreement between
      Debtor and Bank, including without limitation any loan agreement, relating
      to or
      executed in connection with any Indebtedness; (b) any representation or warranty
      made by Debtor herein shall prove to be incorrect, false or misleading in any
      material respect when made; (c) Debtor shall fail to observe or perform any
      obligation or agreement contained herein and such default is not cured within
      any cure period applicable thereto; (d) any impairment of the rights of Bank
      in
      any Collateral or Proceeds, or any attachment or like levy on any property
      of
      Debtor; and (e) Bank, in good faith, believes any or all of the Collateral
      and/or Proceeds to be in danger of misuse, dissipation, commingling, loss,
      theft, damage or destruction.

    

    9. REMEDIES.
      Upon the occurrence of any Event of Default, Bank shall have the right to
      declare immediately due and payable all or any Indebtedness secured hereby
      and
      to terminate any commitments to make loans or otherwise extend credit to Debtor.
      Bank shall have all other rights, powers, privileges and remedies granted to
      a
      secured party upon default under the California Uniform Commercial Code or
      otherwise provided by law, including without limitation, the right (a) to
      contact all persons obligated to Debtor on any Collateral or Proceeds and to
      instruct such persons to deliver all Collateral and/or Proceeds directly to
      Bank, and (b) to sell, lease, license or otherwise dispose of any or all
      Collateral. All rights, powers, privileges and remedies of Bank shall be
      cumulative. No delay, failure or discontinuance of Bank in exercising any right,
      power, privilege or remedy hereunder shall affect or operate as a waiver of
      such
      right, power, privilege or remedy; nor shall any single or partial exercise
      of
      any such right, power, privilege or remedy preclude, waive or otherwise affect
      any other or further exercise thereof or the exercise of any other right, power,
      privilege or remedy. Any waiver, permit, consent or approval of any kind by
      Bank
      of any default hereunder, or any such waiver of any provisions or conditions
      hereof, must be in writing and shall be effective only to the extent set forth
      in writing. It is agreed that public or private sales or other dispositions,
      for
      cash or on credit, to a wholesaler or retailer or investor, or user of property
      of the types subject to this Agreement, or public auctions, are all commercially
      reasonable since differences in the prices generally realized in the different
      kinds of dispositions are ordinarily offset by the differences in the costs
      and
      credit risks of such dispositions. While an Event of Default exists:
      (a) Debtor will deliver to Bank from time to time, as requested by Bank,
      current lists of all Collateral and Proceeds; (b) Debtor will not dispose
      of any Collateral or Proceeds except on terms approved by Bank; and (c) at
      Bank’s request, Debtor will assemble and deliver all Collateral and Proceeds,
      and books and records pertaining thereto, to Bank at a reasonably convenient
      place designated by Bank. Debtor further agrees that Bank shall have no
      obligation to process or prepare any Collateral for sale or other
      disposition.

    

    10. DISPOSITION
      OF COLLATERAL AND PROCEEDS; TRANSFER OF INDEBTEDNESS. In disposing of Collateral
      hereunder, Bank may disclaim all warranties of title, possession, quiet
      enjoyment and the like. Any proceeds of any disposition of any of the Collateral
      or Proceeds, or any part thereof, may be applied by Bank to the payment of
      expenses incurred by Bank in connection with the foregoing, including reasonable
      attorneys’ fees, and the balance of such proceeds may be applied by Bank toward
      the payment of the Indebtedness in such order of application as Bank may from
      time to time elect. Upon the transfer of all or any part of the Indebtedness,
      Bank may transfer all or any part of the Collateral or Proceeds and shall be
      fully discharged thereafter from all liability and responsibility with respect
      to any of the foregoing so transferred, and the transferee shall be vested
      with
      all rights and powers of Bank hereunder with respect to any of the foregoing
      so
      transferred; but with respect to any Collateral or Proceeds not so transferred,
      Bank shall retain all rights, powers, privileges and remedies herein
      given.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    11. STATUTE
      OF LIMITATIONS. Until all Indebtedness shall have been paid in full and all
      commitments by Bank to extend credit to Debtor have been terminated, the power
      of sale or other disposition and all other rights, powers, privileges and
      remedies granted to Bank hereunder shall continue to exist and may be exercised
      by Bank at any time and from time to time irrespective of the fact that the
      Indebtedness or any part thereof may have become barred by any statute of
      limitations, or that the personal liability of Debtor may have ceased, unless
      such liability shall have ceased due to the payment in full of all Indebtedness
      secured hereunder.

    

    12. MISCELLANEOUS.
      When there is more than one Debtor named herein: (a) the word “Debtor” shall
      mean all or any one or more of them as the context requires; (b) the obligations
      of each Debtor hereunder are joint and several; and (c) until all Indebtedness
      shall have been paid in full, no Debtor shall have any right of subrogation
      or
      contribution, and each Debtor hereby waives any benefit of or right to
      participate in any of the Collateral or Proceeds or any other security now
      or
      hereafter held by Bank. Debtor hereby waives any right to require Bank to (i)
      proceed against Debtor or any other person, (ii) marshal assets or proceed
      against or exhaust any security from Debtor or any other person, (iii) perform
      any obligation of Debtor with respect to any Collateral or Proceeds, and (d)
      make any presentment or demand, or give any notice of nonpayment or
      nonperformance, protest, notice of protest or notice of dishonor hereunder
      or in
      connection with any Collateral or Proceeds. Debtor further waives any right
      to
      direct the application of payments or security for any Indebtedness of Debtor
      or
      indebtedness of customers of Debtor.

    

    13. NOTICES.
      All notices, requests and demands required under this Agreement must be in
      writing, addressed to Bank at the address specified in any other loan documents
      entered into between Debtor and Bank and to Debtor at the address of its chief
      executive office (or principal residence, if applicable) specified below or
      to
      such other address as any party may designate by written notice to each other
      party, and shall be deemed to have been given or made as follows: (a) if
      personally delivered, upon delivery; (b) if sent by mail, upon the earlier
      of
      the date of receipt or three (3) days after deposit in the U.S. mail, first
      class and postage prepaid; and (c) if sent by telecopy, upon
      receipt.

    

    14. COSTS,
      EXPENSES AND ATTORNEYS’ FEES. Debtor shall pay to Bank immediately upon demand
      the full amount of all payments, advances, charges, costs and expenses,
      including reasonable attorneys’ fees (to include outside counsel fees and all
      allocated costs of Bank’s in-house counsel), expended or incurred by Bank in
      connection with (a) the perfection and preservation of the Collateral or Bank’s
      interest therein, and (b) the realization, enforcement and exercise of any
      right, power, privilege or remedy conferred by this Agreement, whether incurred
      at the trial or appellate level, in an arbitration proceeding or otherwise,
      and
      including any of the foregoing incurred in connection with any bankruptcy
      proceeding (including without limitation, any adversary proceeding, contested
      matter or motion brought by Bank or any other person) relating to Debtor or
      in
      any way affecting any of the Collateral or Bank’s ability to exercise any of its
      rights or remedies with respect thereto. All of the foregoing shall be paid
      by
      Debtor with interest from the date of demand until paid in full at a rate per
      annum equal to the greater of ten percent (10%) or Bank’s Prime Rate in effect
      from time to time.

    

    15. SUCCESSORS;
      ASSIGNS; AMENDMENT. This Agreement shall be binding upon and inure to the
      benefit of the heirs, executors, administrators, legal representatives,
      successors and assigns of the parties, and may be amended or modified only
      in
      writing signed by Bank and Debtor.

    

    16. SEVERABILITY
      OF PROVISIONS. If any provision of this Agreement shall be held to be prohibited
      by or invalid under applicable law, such provision shall be ineffective only
      to
      the extent of such prohibition or invalidity, without invalidating the remainder
      of such provision or any remaining provisions of this Agreement.

    

    17. GOVERNING
      LAW. This Agreement shall be governed by and construed in accordance with the
      laws of the State of California.

    

    Debtor
      warrants that Debtor is an organization registered under the laws of Delaware.
      

    

    Debtor
      warrants that its chief executive office (or principal residence, if applicable)
      is located at the following address: 1400 Glenn Curtiss Street, Carson, CA
      90746

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    IN
      WITNESS WHEREOF, this Agreement has been duly executed as of March 19,
      2007.

    

    Target
      Logistic Services, Inc.

    

    By:
      /s/
      Philip J. Dubato 

    
      

    

    Title:
      Vice President

    

    
      
         

      

      
        -5-

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