Document:

Unassociated Document

    LOAN
      AND
      SECURITY AGREEMENT

     

    This
      LOAN
      AND SECURITY AGREEMENT dated as of December 8, 2006 (the "Agreement"), is
      executed by and between MEDIRECT LATINO INC., a Florida
      corporation (the "Borrower"), whose address is 2102 West
      Atlantic Boulevard, Suite 101, Pompano Beach, Florida  33069, and
      GRANITE CREEK FLEXCAP I, L.P., a Delaware limited partnership (the "Fund"),
      whose address is 222 West Adams, Suite 1980, Chicago, Illinois  60606,
      ST. CLOUD CAPITAL PARTNERS, L.P., a Delaware limited partnership, whose address
      is 10866 Wilshire Boulevard, Suite 1450, Los Angeles, California 90024, BEDFORD
      OAK PARTNERS, L.P., a Delaware limited partnership ("Bedford Oak"), whose
      address is 100 South Bedford Road, Mt. Kisco, New York 10549, FRED B. AND LOIS
      TARTER, individual residents of the State of New York (the "Tarters"), whose
      address is 210 East 39th Street., New York, New York 10016,  HUNGRY
      LIZARD, LLC, an Ohio limited liability company ("Hungry Lizard"), and KKP
      INVESTMENTS II LLC, a Delaware limited liability company ("KKP"), and the
      parties hereto from time to time as lenders, whether by execution of this
      Agreement or an Assignment and Acceptance (collectively with the Fund and any
      other Lender, "Lenders") and Granite Creek Partners, L.L.C., a Delaware limited
      liability company, which is the general partner of the Fund, in its capacity
      as
      administrative agent for the Lenders (in such capacity, "Agent" as hereinafter
      further defined).

    

    In
      consideration of the mutual agreements hereinafter set forth, the Borrower,
      the
      Agent and the Lenders hereby agree as follows:

     

    WITNESSETH:

     

    WHEREAS,
      the Borrower has requested that Agent and Lenders enter into financing
      arrangements with the Borrower pursuant to which the Lenders may make a loan
      to
      the Borrower; and

     

    WHEREAS,
      each Lender is willing to
      agree to make such loan to the Borrower on the terms and conditions set forth
      therein and Agent is willing to act as agent for Lenders on the terms and
      conditions set forth herein and the other Loan Documents.

     

    1.           DEFINITIONS.

     

    1.1.           Defined
      Terms. For the purposes of this Agreement, the following capitalized words
      and phrases shall have the meanings set forth below.

     

    "Acquisitions"
      shall mean any transaction, or any series of related transactions, consummated
      on or after the date of this Agreement, by which the Borrower (i) acquires
      any ongoing business or all or substantially all of the assets of any firm,
      corporation or division thereof, whether through purchase of assets, merger
      or
      otherwise, or (ii) directly or indirectly acquires (in one transaction or
      as the most recent transaction in a series of transactions) at least a majority
      (in number of votes) of the securities of a corporation which have ordinary
      voting power for the election of directors (other than securities having such
      power only by reason of the happening of a contingency) or a majority (by
      percentage or voting power) of the outstanding partnership interests of a
      partnership.

     

    "Agent"
      shall mean GCP, in its capacity as administrative agent on behalf of Lenders
      pursuant to the terms hereof and any replacement or successor agent
      hereunder.

     

    "Assignment
      and Acceptance" shall mean an Assignment and Acceptance substantially in the
      form of Exhibit "A" attached hereto (with blanks appropriately completed)
      delivered to Agent in connection with an assignment of a Lender's interest
      hereunder in accordance with the provisions of Section 14.7
      hereof.

     

    
      
         

      

      
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    "Bankruptcy
      Code" shall mean the United States Bankruptcy Code, as now existing or
      hereafter amended.

     

    "Business"
      shall mean the business of the Borrower as conducted as of the date hereof,
      which is the marketing and sale, primarily to Latino customers in the United
      States, of diabetic medical supplies and, if applicable, Medicare reimbursement
      services for the same, and the marketing and sale of related items to such
      consumers.

     

    "Business
      Day" shall mean any day other than a Saturday, Sunday or a legal holiday on
      which banks are authorized or required to be closed for the conduct of
      commercial banking business in Chicago, Illinois.

     

    "Capital
      Expenditures" shall mean expenditures (including Capital Lease obligations
      which should be capitalized under GAAP) for the acquisition of fixed assets
      which are required to be capitalized under GAAP.

     

    "Capital
      Lease" shall mean, as to any Person, a lease of any interest in any kind of
      property or asset, whether real, personal or mixed, or tangible or intangible,
      by such Person as lessee that is, or should be, in accordance with Financial
      Accounting Standards Board Statement No. 13, as amended from time to time,
      or, if such Statement is not then in effect, such statement of GAAP as may
      be
      applicable, recorded as a "capital lease" on the balance sheet of the Borrower
      prepared in accordance with GAAP.

     

    "Change
      in Control" shall mean the occurrence of any of the following
      events:  (a) one or more of the Designated Stockholders, together or
      individually, shall grant a security interest in any of their shares or shall
      cease to own and control in excess of eighty percent (80%) of their current
      holdings of the Borrower's Common Stock as set forth on Schedule A
      attached hereto and by this reference made a part hereof; (b) the grant of
      a
      security interest other than to the Lenders pursuant hereto to all or
      substantially all of Borrower's assets or the transfer (in one transaction
      or a
      series of transactions) of all or substantially all of the assets of Borrower
      to
      any Person or group (as such term is used in Section 13(d)(3) of the Exchange
      Act; (c) change in ownership of the Borrower such that any one person or group
      (as such term is defined in Section 13(d)(3) of the Exchange Act) that is not
      a
      20% owner of the Borrower becomes, directly or indirectly, a 20% owner of the
      Borrower; (d) the liquidation or dissolution of the Borrower or the adoption
      of
      a plan by the stockholders of the Borrower relating to the dissolution or
      liquidation of the Borrower; (e) subject to the anticipated changes in office
      in
      connection with the Second and Third Draws, if Raymond J. Talarico shall cease
      to be the Executive Vice President or Debra L. Towsley shall cease to be the
      President and Chief Executive Officer and a successor
      satisfactory to the Lender shall not have been appointed to replace either
      of
      such individuals

     

    within
      sixty (60) days thereafter; or (f) a change in a majority of the composition
      of
      the Borrower's current board of directors as set forth on Schedule B
      attached hereto and by this reference made a part hereof that is not otherwise
      approved by the Required Lenders.  For the purpose hereof, the terms
      "control" or "controlling" shall mean the possession of the power to direct,
      or
      cause the direction of, the management and policies of the Borrower by contract
      or voting of securities.

     

    "Code"
      shall mean the Internal Revenue Code of 1986, as amended and all regulations
      promulgated pursuant thereto.

     

    "Collateral"
      shall have the meaning set forth in Section 7.1.

     

    "Commitment"
      shall mean, at any time, as to the Fund, the principal amount of Four Million
      Dollars ($4,000,000) as to St. Cloud, the principal amount of Two Million Three
      Hundred Thousand Dollars ($2,300,000), as to Bedford Oak, the principal amount
      of Five Hundred Thousand Dollars ($500,000) as to the Tarters, the principal
      amount of Two Hundred Thousand Dollars ($200,000), as to Hungry Lizard, the
      principal amount of One Million Dollars ($1,000,000) and as to KKP, the
      principal amount of Two Hundred Fifty Thousand Dollars ($250,000).

    
      
        
           

        

        
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    "Default
      Rate" shall mean a per annum rate of interest equal to 18% per
      annum.

     

    "Depreciation"
      shall mean the total amounts added to depreciation, amortization, obsolescence,
      valuation and other proper reserves, as reflected on the Borrower's financial
      statement and determined in accordance with GAAP.

     

    "Designated
      Stockholders" shall mean Raymond J. Talarico and Debra L.
      Towsley.

     

    "DMEPOS"
      shall have the meaning set forth in Section 8.4.

     

    "Employee
      Plan" includes any pension, stock bonus, employee stock ownership plan,
      retirement, disability, medical, dental or other health plan, life insurance
      or
      other death benefit plan, profit sharing, deferred compensation, stock option,
      bonus or other incentive plan, vacation benefit plan, severance plan or other
      employee benefit plan or arrangement, including, without limitation, those
      pension, profit-sharing and retirement plans of the Borrower described from
      time
      to time in the financial statements of the Borrower and any pension plan,
      welfare plan, Defined Benefit Pension Plans (as defined in ERISA) or any
      multi-employer plan, maintained or administered by the Borrower or to which
      the
      Borrower is a party or may have any liability or by which the Borrower is
      bound.

     

    "Environmental
      Laws" shall mean all federal, state, district, local and foreign laws,
      rules, regulations, ordinances, and consent decrees relating to health, safety,
      hazardous substances, pollution and environmental matters, as now or at any
      time
      hereafter in effect, applicable to the Borrower's business or facilities owned
      or operated by the Borrower, including laws relating to emissions, discharges,
      releases or threatened releases of pollutants, contamination, chemicals, or
      hazardous, toxic or dangerous substances, materials or wastes in the environment
      (including, without limitation, ambient air, surface water, land surface or
      subsurface

     

    strata)
      or otherwise relating to the generation, manufacture, processing, distribution,
      use, treatment, storage, disposal, transport or handling of Hazardous
      Materials.

     

    "ERISA"
      shall mean the Employee Retirement Income Security Act of 1974, as amended
      from
      time to time.

     

    "Event
      of Default" shall mean any of the events or conditions set forth in
Section 12 hereof.

     

    "Exchange
      Act" shall mean the
      Securities Exchange Act of 1934, together with all rules, regulations and
      interpretations thereunder or related thereto.

    

    "GAAP"
      shall mean generally accepted accounting principles, using the accrual basis
      of
      accounting and consistently applied with prior periods, provided, however,
      that
      GAAP with respect to any interim financial statements or reports shall be deemed
      subject to fiscal year-end adjustments and footnotes made in accordance with
      GAAP.

     

    "GCP"
      shall mean Granite Creek Partners, L.L.C., a Delaware limited liability
      company.

    
      
         

      

      
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    "Governmental
      Authority"  shall mean any nation or government, any state,
      province, or other political subdivision thereof, any central bank (or similar
      monetary or regulatory authority) thereof, and any entity exercising executive,
      legislative, judicial, regulatory or administrative functions of or pertaining
      to government, including by way of example but not by way of limitation, the
      SBA.

     

    "Hazardous
      Materials" shall mean any hazardous, toxic or dangerous substance, materials
      and wastes, including, without limitation, hydrocarbons (including naturally
      occurring or man-made petroleum and hydrocarbons), flammable explosives,
      asbestos, urea formaldehyde insulation, radioactive materials, biological
      substances, polychlorinated biphenyls, pesticides, herbicides and any other
      kind
      and/or type of pollutants or contaminants (including, without limitation,
      materials which include hazardous constituents), sewage, sludge, industrial
      slag, solvents and/or any other similar substances, materials or wastes that
      are
      or become regulated under any Environmental Law (including without limitation,
      any that are or become classified as hazardous or toxic under any Environmental
      Law).

     

    "HME"
      shall have the meaning set forth in Section 8.4.

     

    "Hungry
      Lizard" shall mean Hungry Lizard, LLC, an Ohio limited liability
      company.

     

    "Indebtedness"
      shall mean at any time (a) all Liabilities of the Borrower, (b) all
      Capital Lease obligations of the Borrower, (c) all other debt, secured or
      unsecured, created, issued, incurred or assumed by the Borrower for money
      borrowed or for the deferred purchase price of any fixed or capital asset,
      (d) indebtedness secured by any Lien existing on property owned by the
      Borrower whether or not the Indebtedness secured thereby has been assumed,
      and
      (e) all Contingent Liabilities of the Borrower whether or not reflected on
      its balance sheet.

     

    "Indemnified
      Party" and "Indemnified Parties" shall mean, respectively, the Lender
      and any parent corporations, affiliated corporations or subsidiaries of the
      Lender, and each of their respective officers, directors, employees, attorneys
      and agents, and all of such parties and entities.

     

    "Initial
      Draw" shall mean the amount of Four Million Seven Hundred Fifty Thousand
      Dollars ($4,750,000) funded by the Lenders according to their Pro Rata Shares
      on
      the Closing Date in accordance with the terms hereof.

     

    "Intellectual
      Property" shall mean, as to the Borrower, the Borrower's now owned and
      hereafter arising or acquired:  patents, patent rights, patent
      applications, copyrights, works which are the subject matter of copyrights,
      copyright applications, copyright registrations, trademarks, servicemarks,
      trade
      names, trade styles, trademark and service mark applications, and licenses
      and
      rights to use any of the foregoing and all applications, registrations and
      recordings relating to any of the foregoing as may be filed in the United States
      Copyright Office, the United States Patent and Trademark Office or in any
      similar office or agency of the United States, any State thereof, any political
      subdivision thereof or in any other country or jurisdiction, together with
      all
      rights and privileges arising under applicable law with respect to the
      Borrower's use of any of the foregoing; all extensions, renewals, reissues,
      divisions, continuations, and continuations-in-part of any of the foregoing;
      all
      rights to sue for past, present and future infringement of any of the foregoing;
      inventions, trade secrets, formulae, processes, compounds, drawings, designs,
      blueprints, surveys, reports, manuals, and operating standards; goodwill
      (including any goodwill associated with any trademark or servicemark, or the
      license of any trademark or servicemark); customer and other lists in whatever
      form maintained; trade secret rights, copyright rights, rights in works of
      authorship, domain names and domain name registration; software and contract
      rights relating to computer software programs, in whatever form created or
      maintained.

      
        
           

        

        
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    "Interest
      Rate" shall mean 12% per annum.

     

    "Investor
      Rights Agreement"
      shall mean that certain securities acquisition and investor rights agreement
      between the Lender and the Borrower entered into as of the date hereof pursuant
      to which the Borrower will grant certain rights to the Lender regarding the
      Borrower as more particularly set forth therein.

     

    "Leases"
      shall have the meaning set forth in Section 8.27.

     

    "Lender
      Payment Accounts" shall mean, with respect to each Lender, its account as
      set forth on Schedule C or such other account of a Lender as it may from
      time to time designate to the Borrower as its Lender Payment Account for
      purposes of this Agreement and the other Loan Documents.

     

    "Lenders"
      shall have the meaning set forth in the first paragraph of this
      Agreement.

     

    "Lien"
      shall mean any mortgage, pledge, hypothecation, judgment lien or similar legal
      process, title retention lien, or other lien or security interest, including,
      without limitation, the interest of a vendor under any conditional sale or
      other
      title retention agreement and the

     

    interest
      of a lessor under a lease of any interest in any kind of property or asset,
      whether real, personal or mixed, or tangible or intangible, by such Person
      as
      lessee that is, or should be, a Capital Lease on the balance sheet of the
      Borrower prepared in accordance with GAAP.

     

    "Loan"
      shall mean the loan made by the Lender to the Borrower under and pursuant to
      this Agreement.

     

    "Loan
      Documents" shall mean this Agreement and all of the documents contemplated
      hereby in connection with the Loan.

     

    "KKP"
      shall mean KKP Investments II LLC, a Delaware limited liability
      company.

     

    "Mandatory
      Prepayment" shall have the meaning set forth in
Section 2.1(d).

     

    "Maturity
      Date" shall mean June 8, 2010, unless extended by the Agent pursuant to any
      modification, extension or renewal note executed by the Borrower and accepted
      by
      the Agent in its sole and absolute discretion in substitution for the
      Note.

     

    "Net
      Income" shall mean, with respect to any period, the amount shown opposite
      the caption "Net Income" or a similar caption on the financial statements of
      the
      Borrower, prepared in accordance with GAAP.

    
      
         

      

      
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    "Note(s)"
      shall mean have the meaning set forth in Section 5.1.

     

    "Notice
      of Default" shall have the meaning set forth in Section
      10.19.

     

    "Obligations"
      shall mean the Loan, as evidenced by the Note(s), all interest accrued thereon,
      any fees due the Agent or the Lenders hereunder, any expenses incurred by the
      Agent or any Lender hereunder and any and all other liabilities and obligations
      of the Borrower to any Lender howsoever created, arising or evidenced, and
      howsoever owned, held or acquired, whether now or hereafter existing, whether
      now due or to become due, direct or indirect, absolute or contingent, and
      whether several, joint or joint and several.

     

    "Obligor"
      shall mean the Borrower, any accommodation endorser, third party pledgor, or
      any
      other party liable with respect to the Obligations.

     

    "Participant"
      shall mean any financial institution that acquires and holds participation
      in
      the interest of any Lender in the Loan in conformity with the provisions of
      Section 14.7 of this Agreement governing participations.

     

    "Permits"
      shall have the meaning set forth in Section 8.3.

     

    "Person"
      shall mean any individual, partnership, limited liability company, corporation,
      trust, joint venture, joint stock company, association, unincorporated
      organization, government or agency or political subdivision thereof, or other
      entity.

     

    "Pro
      Rata Share" shall mean as to any Lender, the fraction (expressed as a
      percentage) the numerator of which is such Lender's Commitment and the
      denominator of which is the aggregate amount of all of the Commitments of
      Lenders, as adjusted from time to time in accordance with the provisions of
      Section 14.7 hereof; provided that, if the
      Commitments have been terminated, the numerator shall be the unpaid amount
      of
      such Lender's Loan and the denominator shall be the aggregate amount of all
      unpaid Loan amounts.

     

    "Regulatory
      Change" shall mean the introduction of, or any change in any applicable law,
      treaty, rule, regulation or guideline or in the interpretation or administration
      thereof by any governmental authority or any central bank or other fiscal,
      monetary or other authority having jurisdiction over the Agent or the
      Lenders.

     

    "Real
      Property" shall mean all now owned and hereafter acquired real property of
      the Borrower, including leasehold interests, together with all buildings,
      structures, and other improvements located thereon and all licenses, easements
      and appurtenances relating thereto, wherever located, as described in any
      mortgages secured thereby

     

    "Required
      Lenders" shall mean, at any time, those Lenders whose Pro Rata Shares
      aggregate seventy (70%) percent or more of the aggregate of the Commitments
      of
      all Lenders, or if the Commitments shall have been terminated, Lenders to whom
      at least seventy (70%) percent of the then outstanding Obligations are
      owing.

     

    "SBA"
      shall mean the Small Business Administration.

    
      
         

      

      
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    "SBIA"
      shall have the meaning set forth in Section 8.23.

     

    "Second
      Draw" shall mean the amount of One Million Seven Hundred Fifty Thousand
      Dollars ($1,750,000) to be funded by the Lenders according to their Pro Rata
      Shares in accordance with the terms hereof.

     

    "Special
      Agent Advances" shall have the meaning set forth in Section 6.8
      hereof.

     

    "St.
      Cloud" means St. Cloud Capital Partners, L.P., a Delaware limited
      partnership.

     

    "Subordinated
      Debt" shall mean that portion of the Liabilities of the Borrower which is
      subordinated to the Obligations in a manner satisfactory to the Lender,
      including, but not limited to, right and time of payment of principal and
      interest.

     

    "Subsidiary"
      and "Subsidiaries" shall mean, respectively, each and all such
      corporations, partnerships, limited partnerships, limited liability companies,
      limited liability partnerships or other entities of which or in which the
      Borrower owns directly or indirectly fifty percent (50.00%) or more of
      (i) the combined voting power of all classes of stock having general voting
      power under ordinary circumstances to elect a majority of the board of directors
      of such entity if a corporation, (ii) the management authority and capital
      interest or profits interest of such entity, if a partnership, limited
      partnership, limited liability company, limited liability partnership, joint
      venture or similar entity, or (iii) the beneficial interest of such entity,
      if a trust, association or other unincorporated organization.

     

    "Third
      Draw" shall mean the amount of One Million Seven Hundred Fifty Thousand
      Dollars ($1,750,000) to be funded by the Lenders according to their Pro Rata
      Shares in accordance with the terms hereof.

     

    "Transaction
      Documents" shall mean all of the Loan Documents and all of the documents
      required or contemplated by the Investor Rights Agreement and all of the
      documents required or contemplated thereby.

     

    "UCC"
      shall mean the Uniform Commercial Code in effect in Illinois from time to
      time.

     

    1.2.           Accounting
      Terms.  Any accounting terms used in this Agreement which are not
      specifically defined herein shall have the meanings customarily given them
      in
      accordance with GAAP.  Calculations and determinations of financial
      and accounting terms used and not otherwise specifically defined hereunder
      and
      the preparation of financial statements to be furnished to the Agent pursuant
      hereto shall be made and prepared, both as to classification of items and as
      to
      amount, in accordance with GAAP as used in the preparation of the financial
      statements of the Borrower on the date of this Agreement.  If any
      changes in accounting principles or practices from those used in the preparation
      of the financial statements are hereafter occasioned by the promulgation of
      rules, regulations pronouncements and opinions by or required by the Financial
      Accounting Standards Board or the American Institute of Certified Public
      Accountants (or any successor thereto or agencies with similar functions),
      which
      results in a material change in the method of accounting in the financial
      statements required to be furnished to the Agent hereunder or in the calculation
      of financial covenants, standards or terms contained in this Agreement, the
      parties hereto agree to enter into good faith negotiations to amend such
      provisions so as equitably to reflect such changes to the end that the criteria
      for evaluating the financial condition and performance of the Borrower will
      be
      the same after such changes as they were before such changes; and if the parties
      fail to agree on the amendment of such provisions, the Borrower will furnish
      financial statements in accordance with such changes but shall provide
      calculations for all financial covenants, perform all financial covenants and
      otherwise observe all financial standards and terms in accordance with
      applicable accounting principles and practices in effect immediately prior
      to
      such changes.  Calculations with respect to financial covenants
      required to be stated in accordance with applicable accounting principles and
      practices in effect immediately prior to such changes shall be reviewed and
      certified by the Borrower's accountants.

    
      
         

      

      
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    1.3.           Other
      Terms Defined in UCC.  All other capitalized words and phrases
      used herein and not otherwise specifically defined shall have the respective
      meanings assigned to such terms in the UCC, as amended from time to time, to
      the
      extent the same are used or defined therein.

     

    1.4.           Other
      Definitional Provisions; Construction.  Whenever the context so
      requires, the neuter gender includes the masculine and feminine, the single
      number includes the plural, and vice versa, and in particular the word
      "Borrower" shall be so construed.  The words "hereof", "herein" and
      "hereunder" and words of similar import when used in this Agreement shall refer
      to this Agreement as a whole and not to any particular provision of this
      Agreement, and references to Article, Section, Subsection, Annex, Schedule,
      Exhibit and like references are references to

     

    this
      Agreement unless otherwise specified.  An Event of Default shall
      "continue" or be "continuing" until such Event of Default has been waived in
      accordance with Section 13.10 hereof.  References in this
      Agreement to any party shall include such party's successors and permitted
      assigns.  References to any "Section" shall be a reference to such
      Section of this Agreement unless otherwise stated.  To the extent any
      of the provisions of the other Loan Documents are inconsistent with the terms
      of
      this Loan Agreement, the provisions of this Loan Agreement shall
      govern.

     

    2.           COMMITMENT
      OF THE LENDERS.

     

    2.1.           The
      Loan.

     

    (a)         Loan
      Commitment.  Subject to the terms and conditions of this Agreement
      and the other Loan Documents, and in reliance upon the representations and
      warranties of the Borrower set forth herein and in the other Loan Documents,
      the
      Loan shall be available to the Borrower in up to three principal advances,
      the
      Initial Draw, the Second Draw and the Third Draw, each draw subject to the
      conditions set forth in Section 4 of this Agreement.  The
      Lenders agree to make such draws at such times as the Borrower may from time
      to
      time request and has satisfied the conditions with respect to each such draw
      until, but not three (3) months prior to the Maturity Date, provided, however,
      that the aggregate principal balance of the Loan outstanding at any time shall
      not exceed the total Commitments.   The Loan may be prepaid in
      whole only at any time without penalty, and shall be due in full on the Maturity
      Date, unless the credit extended under the Loan is otherwise extended as
      provided in this Agreement.

     

    (b)         Interest
      and Payments.  Except as otherwise provided in this
Section 2.1(b), the principal amount of the Loan outstanding from
      time to time shall bear interest at the Interest Rate.  Accrued and
      unpaid interest on the unpaid principal balance of the Loan shall be due and
      payable to each Lender, monthly in advance, commencing on December 15, 2006
      and continuing on the 15th day of each calendar month thereafter, and on the
      Maturity Date.  Accrued and unpaid interest on the unpaid principal
      balance or interest on the Loan which is not paid when due, whether at stated
      maturity, by acceleration or otherwise, shall bear interest payable on demand
      at
      the Default Rate.

     

    (c)         Principal
      Payments.  The outstanding principal balance of the Loan shall be
      repaid, to the extent not previously paid, with a payment of all outstanding
      principal and accrued interest due on the Maturity Date.  Principal
      amounts repaid on the Note may not be borrowed again.

     

    (d)         Mandatory
      Prepayment.  In addition to the foregoing, the Borrower shall make
      a single mandatory prepayment (the "Mandatory Prepayment") on the next Business
      Day following the occurrence of an Event of Default or a Change of Control
      as
      set forth herein.  Such Mandatory Prepayment shall be in the full
      amount of accrued and unpaid interest and unpaid principal plus any fees
      outstanding to the Lenders as of such payment date.

    
      
         

      

      
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    2.2.                   Commitments.  The
      aggregate amount of each Lender's Pro Rata Share of the Loan shall not exceed
      the amount of such Lender's Commitment, as the same may from time to time be
      amended in accordance with the provisions hereof.

     

    2.3.           Interest
      and Fee Computation; Collection of Funds.  Except as otherwise set
      forth herein, all interest and fees shall be calculated on the basis of a year
      consisting of 360 days and shall be paid for the actual number of days
      elapsed.  Principal payments submitted in funds not immediately
      available shall continue to bear interest until collected.  If any
      payment to be made by the Borrower hereunder or under the Note shall become
      due
      on a day other than a Business Day, such payment shall be made on the next
      succeeding Business Day and such extension of time shall be included in
      computing any interest in respect of such payment.

     

    2.4.           Changes
      in Laws and Increased Costs of Loan.  If after the Closing Date,
      either (i) any change in, or in the interpretation of, any law or regulation
      is
      introduced, including, without limitation, with respect to reserve requirements,
      applicable to any Lender, or (ii) any Lender complies with any future guideline
      or request from any central bank or Governmental Authority or (iii) any Lender
      determines that the adoption of any applicable law, rule or regulation regarding
      capital adequacy, or any change therein, or any change in the interpretation
      or
      administration thereof by any Governmental Authority charged with the
      interpretation or administration thereof has or would have the effect described
      below, or any Lender complies 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, and in the case of any event set forth in this clause
      (iii), such adoption, change or compliance has or would have the direct or
      indirect effect of reducing the rate of return on any Lender's capital as a
      consequence of its obligations hereunder to a level below that which such Lender
      could have achieved but for such adoption, change or compliance (taking into
      consideration the Lender's policies with respect to capital adequacy) by an
      amount deemed by such Lender to be material, and the result of any of the
      foregoing events described in clauses (i), (ii) or (iii) is or results in an
      increase in the cost to any Lender of funding or maintaining the Loan, then
      the
      Borrower shall from time to time upon demand by Agent pay to Agent additional
      amounts sufficient to indemnify such Lender, as the case may be, against such
      increased cost on an after-tax basis (after taking into account applicable
      deductions and credits in respect of the amount indemnified).  A
      certificate as to the amount of such increased cost shall be submitted to the
      Borrower by the Lender and shall be conclusive, absent manifest
      error.

     

    3.           COLLECTION
      AND ADMINISTRATION

     

    3.1.           Borrower's
      Loan Accounts.  Agent shall maintain one or more loan accounts on
      its books in which shall be recorded (a) the Loan and the Collateral, (b) all
      payments made by or on behalf of the Borrower and (c) all other appropriate
      debits and credits as provided in this Agreement, including fees, charges,
      costs, expenses and interest.  All entries in the loan account shall
      be made in accordance with Agent's customary practices as in effect from time
      to
      time and shall be subject to Agent's receipt of confirmation from each Lender
      of
      such Lender's receipt of payments and the amount thereof.

     

    3.2.           Payments.

     

    (a)         All
      Obligations shall be payable to each Lender's Lender Payment Accounts or such
      other place as each Lender may designate from time to time.  Subject
      to the other terms and conditions contained herein, each Lender shall apply
      payments received or collected from the Borrower or for the account of the
      Borrower (including the monetary proceeds of collections or of realization
      upon
      any Collateral) as follows: first, to pay any fees, indemnities or expense
      reimbursements then due to Agent and Lenders from the Borrower; second, to
      pay
      interest due in respect of the Loan; and third to pay or prepay any other
      Obligations whether or not then due, in such order and manner as Agent
      determines and at any time an Event of Default exists or has occurred and is
      continuing.

    
      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

    

    (b)         At
      Agent's option, all principal, interest, fees, costs, expenses and other charges
      provided for in this Agreement or the other Loan Documents may be charged
      directly to the loan account(s) of the Borrower maintained by
      Agent.  If after receipt of any payment of, or proceeds of Collateral
      applied to the payment of, any of the Obligations, Agent or any Lender is
      required to surrender or return such payment or proceeds to any Person for
      any
      reason, then the Obligations intended to be satisfied by such payment or
      proceeds shall be reinstated and continue and this Agreement shall continue
      in
      full force and effect as if such payment or proceeds had not been received
      by
      Agent or such Lender.  The Borrower shall be liable to pay to Agent,
      and does hereby indemnify and hold Agent and Lenders harmless for the amount
      of
      any payments or proceeds surrendered or returned.  This Section
      3.2(b) shall remain effective notwithstanding any contrary action which may
      be taken by Agent or any Lender in reliance upon such payment or
      proceeds.  This Section 3.2(b) shall survive the payment of the
      Obligations and the termination of this Agreement.

     

    3.3.           Taxes.

     

    (a)         Any
      and all payments by or on account of any of the Obligations shall be made free
      and clear of and without deduction or withholding for or on account of, any
      setoff, counterclaim, defense, duties, taxes, levies, imposts, fees, deductions,
      charges, withholdings, liabilities, restrictions or conditions of any kind,
      excluding (i) in the case of each Lender and Agent (A) taxes measured by its
      net
      income, and franchise taxes imposed on it, by the jurisdiction (or any political
      subdivision thereof) under the laws of which such Lender or Agent (as the case
      may be) is organized and (B) any United States withholding taxes payable with
      respect to payments under the Loan Documents under laws (including any statute,
      treaty or regulation) in effect on the Closing Date (or, in the case of an
      Eligible Transferee, the date of the Assignment and Acceptance) applicable
      to
      such Lender or Agent, as the case may be, but not excluding any United States
      withholding taxes payable as a result of any change in such laws occurring
      after
      the Closing Date (or the date of such Assignment and Acceptance) and (ii) in
      the
      case of each Lender, taxes measured by its net income, and franchise taxes
      imposed on it as a result of a present or former connection between such Lender
      and the jurisdiction of the Governmental Authority imposing such tax or any
      taxing authority thereof or

     

    therein
      (all such non-excluded taxes, levies, imposts, fees, deductions, charges,
      withholdings and liabilities being hereinafter referred to as
      "Taxes").

     

    (b)         If
      any Taxes shall be required by law to be deducted from or in respect of any
      sum
      payable in respect of the Obligations to any Lender or Agent (i) the sum payable
      shall be increased as may be necessary so that after making all required
      deductions (including deductions applicable to additional sums payable under
      this Section 3.3(b)), such Lender or Agent (as the case may be) receives
      an amount equal to the sum it would have received had no such deductions been
      made, (ii) the Borrower shall make such deductions, (iii) the Borrower shall
      pay
      the full amount deducted to the relevant taxing authority or other authority
      in
      accordance with applicable law and (iv) the Borrower shall deliver to Agent
      evidence of such payment.

     

    (c)         In
      addition, the Borrower agrees to pay any present or future stamp or documentary
      taxes or any other excise or property taxes, charges or similar levies of the
      United States or any political subdivision thereof or any applicable foreign
      jurisdiction, and all liabilities with respect thereto, in each case arising
      from any payment made hereunder or under any of the other Loan Documents or
      from
      the execution, delivery or registration of, or otherwise with respect to, this
      Agreement or any of the other Loan Documents (collectively, "Other
      Taxes").

     

    (d)         The
      Borrower shall indemnify each Lender and Agent for the full amount of Taxes
      and
      Other Taxes (including any Taxes and Other Taxes imposed by any jurisdiction
      on
      amounts payable under this Section 3.3) paid by such Lender or Agent (as
      the case may be) and any liability (including for penalties, interest and
      expenses) arising therefrom or with respect thereto, whether or not such Taxes
      or Other Taxes were correctly or legally asserted.  This
      indemnification shall be made within thirty (30) days from the date such Lender
      or Agent (as the case may be) makes written demand therefor.  A
      certificate as to the amount of such payment or liability delivered to the
      Borrower by a Lender (with a copy to Agent) or by Agent on its own behalf or
      on
      behalf of a Lender shall be conclusive absent manifest error.

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

     

    (e)         As
      soon as practicable after any payment of Taxes or Other Taxes by the Borrower,
      the Borrower shall furnish to Agent, at its address referred to herein, the
      original or a certified copy of a receipt evidencing payment
      thereof.

     

    (f)         Without
      prejudice to the survival of any other agreements of the Borrower hereunder
      or
      under any of the other Loan Documents, the agreements and obligations of
      Borrower contained in this Section 3.3 shall survive the termination of
      this Agreement and the payment in full of the Obligations.

     

    3.4.           Use
      of Proceeds.  The Borrower shall use the initial proceeds of the
      hereunder only for: (a) repayment of subordinated notes, (b) growth capital
      and
      working capital and (c) the payment of fees and expenses in connection with
      the
      Loan and all the transactions contemplated by the Transaction
      Documents.  None of the proceeds will be used, directly or indirectly,
      for the purpose of purchasing or carrying any margin security or for the
      purposes of reducing or retiring any indebtedness which was originally incurred
      to purchase or carry any margin security or for

     

    any
      other
      purpose which might cause the Loan to be considered a "purpose credit" within
      the meaning of Regulation U of the Board of Governors of the Federal Reserve
      System, as amended, or for any purpose prohibited by the SBA regulations
      limiting the use of proceeds from a lender regulated thereunder.

     

    3.5.           Pro
      Rata Treatment.  Except to the extent otherwise provided in this
      Agreement or as otherwise agreed by Lenders:  (a) the making and
      conversion of the Loan shall be made among the Lenders based on their respective
      Pro Rata Shares as to the Loan and (b) each payment on account of any
      Obligations to or for the account of one or more of Lenders in respect of any
      Obligations due on a particular day shall be allocated among the Lenders
      entitled to such payments based on their respective Pro Rata Shares and shall
      be
      distributed accordingly.

     

    3.6.           Sharing
      of Payments, Etc.

     

    (a)         Borrower
      agrees that, in addition to (and without limitation of) any right of setoff,
      banker's lien or counterclaim Agent or any Lender may otherwise have, each
      Lender shall be entitled, at its option (but subject, as among Agent and
      Lenders, to the provisions of Section 6.3(b) hereof), to offset balances
      held by it for the account of the Borrower at any of its offices, in dollars
      or
      in any other currency, against any principal of or interest with respect to
      the
      Loan owed to such Lender or any other amount payable to such Lender hereunder,
      that is not paid when due (regardless of whether such balances are then due
      to
      the Borrower), in which case it shall promptly notify the Borrower and Agent
      thereof; provided that, such Lender's failure to give such notice shall not
      affect the validity thereof.

     

    (b)         If
      any Lender shall obtain from the Borrower payment of any principal of or
      interest on any Loan owing to it or payment of any other amount under this
      Agreement or any of the other Loan Documents through the exercise of any right
      of setoff, banker's lien or counterclaim or similar right or otherwise (other
      than from Agent as provided herein), and, as a result of such payment, such
      Lender shall have received more than its Pro Rata Share of the principal of
      the
      Loan or more than its share of such other amounts then due hereunder or
      thereunder by the Borrower to such Lender than the percentage thereof received
      by any other Lender, it shall promptly pay to Agent, for the benefit of the
      other Lenders, the amount of such excess and simultaneously purchase from such
      other Lenders a participation in the Loan or such other amounts, respectively,
      owing to such other Lenders (or such interest due thereon, as the case may
      be)
      in such amounts, and make such other adjustments from time to time as shall
      be
      equitable, to the end that all Lenders shall share the benefit of such excess
      payment (net of any expenses that may be incurred by such Lender in obtaining
      or
      preserving such excess payment) in accordance with their respective Pro Rata
      Shares or as otherwise agreed by Lenders.  To such end all Lenders
      shall make appropriate adjustments among themselves (by the resale of a
      participation sold or otherwise) if such payment is rescinded or must otherwise
      be restored.

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

     

    (c)         The
      Borrower agrees that any Lender purchasing a participation (or direct interest)
      as provided in this Section may exercise, in a manner consistent with this
      Section, all rights of setoff, banker's lien, counterclaim or similar rights
      with respect to

     

    such
      participation as fully as if such Lender were a direct holder of the Loan or
      other amounts (as the case may be) owing to such Lender in the amount of such
      participation.

     

    (d)         Nothing
      contained herein shall require any Lender to exercise any right of setoff,
      banker’s lien, counterclaims or similar rights or shall affect the right of any
      Lender to exercise, and retain the benefits of exercising, any such right with
      respect to any other Indebtedness or obligation of Borrower.  If,
      under any applicable bankruptcy, insolvency or other similar law, any Lender
      receives a secured claim in lieu of a setoff to which this Section applies,
      such
      Lender shall, to the extent practicable, assign such rights to Agent for the
      benefit of Lenders and, in any event, exercise its rights in respect of such
      secured claim in a manner consistent with the rights of Lenders entitled under
      this Section to share in the benefits of any recovery on such secured
      claim.

     

    3.7.           Obligations
      Several; Independent Nature of Lenders' Rights.  The obligation of
      each Lender hereunder is several, and no Lender shall be responsible for the
      obligation or commitment of any other Lender hereunder.  Nothing
      contained in this Agreement or any of the other Loan Documents and no action
      taken by the Lenders pursuant hereto or thereto shall be deemed to constitute
      the Lenders to be a partnership, an association, a joint venture or any other
      kind of entity.  The amounts payable at any time hereunder to each
      Lender shall be a separate and independent debt, and subject to Section
      6.3 hereof, each Lender shall be entitled to protect and enforce its rights
      arising out of this Agreement and it shall not be necessary for any other Lender
      to be joined as an additional party in any proceeding for such
      purpose.

     

    4.           CONDITIONS
      OF BORROWING.

     

    Notwithstanding
      any other provision of this Agreement, neither the Lenders nor the Agent shall
      be required to disburse the Initial Draw, or make available any of their Pro
      Rata Shares of the Initial Draw, or make all or any portion of the Loan if
      any
      of the following conditions shall not have occurred.

     

    4.1.           Transaction
      Documents.  The Borrower shall have failed to execute and deliver
      to Agent any of the following documents (collectively, the "Transaction
      Documents"), all of which must be satisfactory to Agent and the Agent's counsel
      in form, substance and execution:

     

    (a)         Loan
      Agreement.  Four copies of this Agreement duly executed by the
      Borrower.

     

    (b)         Note.  A
      Note duly executed by the Borrower, in the form attached hereto as
Exhibit "B", in favor of each of the Lenders in the principal amount
      of each Lender's Commitment.

     

    (c)         Subordination
      Agreement.  Subordination Agreement dated as of the date of this
      Agreement, from each holder of Subordinated Debt, in the form attached hereto
      as
Exhibit "C".

     

    (d)         Investor
      Rights Agreement.  The Securities Acquisition and Investor Rights
      Agreement, in the form attached hereto as Exhibit "D", duly executed by
      the

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    Borrower
      and each of the Fund, St. Cloud, Bedford Oak, the Tarters, Hungry Lizard and
      KKP,  respectively.

     

    (e)         Legal
      Opinion.  An opinion of counsel by Borrower's counsel in a form
      satisfactory to Agent regarding all of the agreements comprising the Transaction
      Documents.

     

    (f)         Projections
      and Financial Statements.  Attached hereto as Exhibit "E"
      are projections covering the period from the date hereof through the third
      anniversary hereof in a form satisfactory to Agent and audited financial
      statements for the Borrower for the year ended June 30, 2006 and the unaudited
      financial statements quarterly period ended September 30, 2006.

     

    (g)         Insurance.  Borrower
      shall have in place such insurance as is identified on Exhibit "F"
      attached hereto and made a part hereof which in any event shall list all
      policies Agent requires be in place as of the date hereof.

     

    (h)         Access
      to Real Property.  Borrower shall have requested of its landlords
      a Subordination and Non-Disturbance Agreement in the form attached hereto as
      Exhibit "G".

     

    (i)         Security
      Instruments. Borrower shall provide executed UCC financing statements,
      notices with the United States Patent and Trademark Office and such other
      instruments necessary for the Lender to have a perfected and first priority
      security interest in the Collateral.

     

    (j)         Resolutions;
      Consents.  Resolutions of the board of directors and/or
      shareholders of the Borrower authorizing the execution of this Agreement and
      the
      other Transaction Documents and the consents of any stockholders or third
      parties, including any Governmental Authority, as may be required for the
      Borrower to enter into the transactions contemplated by the Transaction
      Documents.

     

    (k)         Non-Compete
      Agreements.  Each of the Designated Stockholders shall have
      entered into a Non-Compete Agreement in the form attached hereto as Exhibit
      "H".

     

    (l)         Lock
      Up Agreements.  Each of the Designated Stockholders shall have
      entered into a Lock Up Agreement in the form attached hereto as Exhibit
      "I".

     

    (m)                   Advertising
      Budget.  Borrower and the Lenders shall have agreed upon an
      advertising budget attached hereto as Exhibit "J" setting forth amounts
      or rates of spending on advertising by the Borrower on a quarterly basis during
      the term of the Loan and the required approval of such budgets in the
      future.

     

    (n)         Good
      Standing Certificates.  Good standing certificate for the Borrower
      issued by the Secretary of State of the State of Florida of a date not less
      than
      one week prior to the date hereof.

     

    (o)         Additional
      Documents.  Such other certificates, schedules and other documents
      which are provided for hereunder or which Agent shall require, including but
      not
      limited to the assignment of domain names by Raymond Talarico to the Borrower
      in
      the form attached hereto as Exhibit "K".

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

     

    4.2.           Event
      of Default.  Any Event of Default, or any event which, with notice
      or lapse of time, or both would constitute an Event of Default, shall have
      occurred and be continuing.

     

    4.3.           Adverse
      Changes.  A material adverse change in the financial condition or
      affairs of the Borrower, as determined in the Agent's sole and complete
      discretion, shall have occurred.

     

    4.4.           Litigation.  Any
      litigation or governmental proceeding shall have been instituted against the
      Borrower or any of its officers or shareholders which in the discretion of
      Agent, reasonably exercised, adversely affects the financial condition or
      continued operation of the Borrower.

     

    4.5.           Representations
      and Warranties.  Any representation or warranty of the Borrower
      contained herein or in any of the Transaction Documents shall be untrue or
      incorrect as of the date hereof, except to the extent such representation or
      warranty expressly relates to an earlier date.

     

    4.6.           Commitment
      Fee.  The Borrower agrees to pay to the Agent a commitment fee in
      the amount of One Hundred Sixty Five Thousand and 00/100 Dollars ($165,000.00),
      payable on or before the execution of this Agreement to the Agent, which amount
      may be paid from the Initial Draw.  The Agent shall promptly remit to
      the Fund Eighty Thousand Dollars ($80,000) of the fee, Sixty Thousand Dollars
      ($60,000) of the fee to St. Cloud, Twenty Thousand Dollars ($20,000) of the
      fee
      to Hungry Lizard and Five Thousand Dollars of the fee ($5,000) to
      KKP..

     

    4.7.           Due
      Diligence.  The Agent and the Lenders satisfactorily complete
      their due diligence of the Borrower and their affiliates.

     

    4.8.           Second
      Draw Conditions.  Notwithstanding any other provision of this
      Agreement, neither the Lenders nor the Agent shall be required to disburse
      or
      make all or any portion of the Second Draw if any of the following conditions
      shall not have occurred:

     

    (a)         Chief
      Financial Officer.  A chief financial officer acceptable to at
      least the Required Lenders and the Borrower shall have been identified and
      hired
      on terms acceptable at least to the Required Lenders and the Borrower commence
      employment with the Borrower.

     

    (b)         Resignation.  Debra
      L. Towsley shall have tendered her resignation as Chief Financial Officer
      effective as of or prior to the date the chief financial officer reference
      in
Section 4.8(a) commences employment with the Borrower and such
      resignation has been accepted by the Borrower's board of directors.

     

    (c)         Legal
      Opinion.  An opinion of counsel by Borrower's counsel in a form
      satisfactory to Agent regarding the Second Draw and the Transaction Documents
      entered into in connection therewith.

     

    (d)         Security
      Instruments.  Borrower shall provide executed UCC financing
      statements, notices with the United States Patent and Trademark Office and
      such
      other instruments necessary for the Lender to have a perfected and first
      priority security interest in the Collateral.

     

    (e)         Resolutions;
      Consents.  Resolutions of the board of directors and/or
      shareholders of the Borrower authorizing the execution of this Agreement and
      the
      other Transaction Documents and the consents of any stockholders or third
      parties, including any Governmental Authority, as may be required for the
      Borrower to borrow the Second Draw.

    
      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

    

    (f)         Good
      Standing Certificate.  Good standing certificate for the Borrower
      issued by the Secretary of State of the State of Florida of a date not less
      than
      one week prior to the date hereof.

     

    (g)         Additional
      Documents.  Such other certificates schedules and other documents
      which are provided for hereunder or which Agent shall require.

     

    (h)         Additional
      Conditions.  Any of the conditions described in Sections
      4.2 through 4.4 of this Agreement.

     

    (i)         Representations
      and Warranties.  Any representation or warranty of the Borrower
      contained herein or in any of the Transaction Documents shall be untrue or
      incorrect as of the date of the Second Draw, except to the extent such
      representation or warranty expressly relates to an earlier date.

     

    4.9.           Third
      Draw Conditions.  Notwithstanding any other provision of this
      Agreement, neither the Lenders nor the Agent shall be required to disburse
      or
      make all or any portion of the Third Draw if any of the following conditions
      shall not have occurred:

     

    (a)         Chief
      Executive Officer.  A chief executive officer acceptable to at
      least the Required Lenders and the Borrower shall have been identified, hired
      on
      terms acceptable to at least the Required Lenders and the Borrower and commenced
      employment with the Borrower.

     

    (b)         Resignations.  Debra
      L. Towsley shall have tendered her resignation as Chief Executive Officer and
      President effective as of or prior to the date the chief executive officer
      reference in Section 4.9(a) commences employment with the Borrower and
      such resignation has been accepted by the Borrower's board of
      directors.

     

    (c)         Legal
      Opinion.  An opinion of counsel by Borrower's counsel in a form
      satisfactory to Agent regarding the Third Draw and the Transaction Documents
      entered into in connection therewith.

     

    (d)         Security
      Instruments.  Borrower shall provide executed UCC financing
      statements, notices with the United States Patent and Trademark Office and
      such
      other instruments necessary for the Lender to have a perfected and first
      priority security interest in the Collateral.

     

    (e)         Resolutions;
      Consents.  Resolutions of the board of directors and/or
      shareholders of the Borrower authorizing the execution of this Agreement and
      the
      other Transaction Documents and the consents of any stockholders or third
      parties, including any Governmental Authority, as may be required for the
      Borrower to borrow the Third Draw.

     

    (f)         Good
      Standing Certificate.  Good standing certificate for the Borrower
      issued by the Secretary of State of the State of Florida of a date not less
      than
      one week prior to the date hereof.

     

    (g)         Additional
      Documents.  Such other certificates schedules and other documents
      which are provided for hereunder or which Agent shall require.

     

    (h)         Additional
      Conditions.  Any of the conditions described in Sections
      4.2 through 4.4 of this Agreement.

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

     

    (i)         Representations
      and Warranties.  Any representation or warranty of the Borrower
      contained herein or in any of the Transaction Documents shall be untrue or
      incorrect as of the date of the Third Draw, except to the extent such
      representation or warranty expressly relates to an earlier date.

     

    4.10.                      Second
      and Third Draws.  Once the conditions for either of these draws
      has been satisfied to Agent's satisfaction, the Lenders will promptly fund
      their
      Pro Rata Shares of such amounts.  Either of the Second or Third Draws
      may be funded at any time that the conditions for it have been satisfied,
      regardless of whether the other has been funded, at any time prior to the
      Maturity Date.

     

    4.11.                      Termination
      of Commitments.  To the extent, if any, that the Commitments have
      not been fully funded, the Commitments will expire on March 8,
      2010.

     

    5.           NOTES
      EVIDENCING LOAN.

     

    5.1.           Term
      Notes.  The Loan shall be evidenced by the Notes (together with
      any and all renewal, extension, modification or replacement notes executed
      by
      the Borrower and given in substitution therefor, the "Note") in the form of
      Exhibit "B" attached hereto, duly executed by the Borrower and
      payable to the order of each Lender.  At the time of the disbursement
      of the Loan or a repayment made in whole thereon, an
      appropriate notation thereof shall be made on the books and records of
      Agent.  All amounts recorded shall be, absent demonstrable error,
      conclusive and binding evidence of (i) the principal amount of the Loan
      advanced hereunder, (ii) any unpaid interest owing on the Loan and
      (iii) all amounts repaid on the Loan.  The failure to record any
      such amount or any error in recording such amounts shall not, however, limit
      or
      otherwise affect the obligations of the Borrower under the Note to repay the
      principal amount of the Loan, together with all interest accruing
      thereon.

     

    6.                 THE
      AGENT.

     

    6.1.           Appointment,
      Powers and Immunities  Each Lender designates, appoints and
      authorizes GCP to act as Agent hereunder and under the Loan Documents with
      such
      powers as

     

    are
      specifically delegated to Agent by the terms of this Agreement and of the other
      Loan Documents, together with such other powers as are reasonably incidental
      thereto.  Agent (a) shall have no duties or responsibilities except
      those expressly set forth in this Agreement and in the other Loan Documents,
      and
      shall not by reason of this Agreement or any other Transaction Document be
      a
      trustee or fiduciary for any Lender; (b) shall not be responsible to Lenders
      for
      any recitals, statements, representations or warranties contained in this
      Agreement or in any of the other Transaction Documents, or in any certificate
      or
      other document referred to or provided for in, or received by any of them under,
      this Agreement or any other Transaction Document, or for the value, validity,
      effectiveness, genuineness, enforceability or sufficiency of this Agreement
      or
      any other Transaction Document or any other document referred to or provided
      for
      herein or therein or for any failure by Borrower or any other Person to perform
      any of its obligations hereunder or thereunder; and (c) shall not be responsible
      to Lenders for any action taken or omitted to be taken by it hereunder or under
      any other Loan Document or under any other document or instrument referred
      to or
      provided for herein or therein or in connection herewith or therewith, except
      for its own willful misconduct as determined by a final non-appealable judgment
      of a court of competent jurisdiction.  Agent may employ agents.
      Bailees, custodians and attorneys in fact and shall not be responsible for
      the
      negligence or misconduct of any such persons selected by it in good
      faith.  Agent may deem and treat the payee of any note as the holder
      thereof for all purposes hereof unless and until the assignment thereof pursuant
      to an agreement (if and to the extent permitted herein) in form and substance
      satisfactory to Agent shall have been delivered to and acknowledged by
      Agent.

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

     

    6.2.           Reliance
      by Agent.  Agent shall be entitled to rely upon any certification,
      notice or other communication (including any thereof by telephone, telecopy,
      telex, telegram, cable or email) believed by it to be genuine and correct and
      to
      have been signed or sent by or on behalf of the proper Person or Persons, and
      upon advice and statements of legal counsel, independent accountants and other
      experts selected by Agent.  As to any matters not expressly provided
      for by this Agreement or any other Loan Document, Agent shall in all cases
      be
      fully protected in acting, or in refraining from acting, hereunder or thereunder
      in accordance with instructions given by the Required Lenders or all of Lenders
      as is required in such circumstance, and such instructions to Agent and any
      action taken or failure to act pursuant thereto shall be binding on all
      Lenders.

     

    6.3.           Events
      of Default

     

    (a)         Agent
      shall not be deemed to have knowledge or notice of the occurrence of a Default
      or an Event of Default or other failure of a condition precedent to the Loan
      hereunder unless and until Agent has received written notice from a Lender,
      or
      Borrower specifying such Event of Default or any unfulfilled condition
      precedent, and stating that such notice is a Notice of Default or failure of
      condition".  In the event that Agent receives such a Notice of Default
      or failure of condition, Agent shall give prompt notice thereof to the
      Lenders.  Agent shall (subject to Section 6.7) take such action
      with respect to any such Event of Default or failure of condition precedent
      as
      shall be directed by the Required Lenders to the extent provided for herein;
      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 or by reason of such Event of Default or failure
      of
      condition precedent, as it shall deem

     

    advisable
      in the best interest of Lenders.  Without limiting the foregoing, and
      notwithstanding the existence or occurrence and continuance of an Event of
      Default or any other failure to satisfy any of the conditions precedent set
      forth in Section 4 of this Agreement to the contrary, unless and until
      otherwise directed by the Required Lenders, Agent may, but shall have no
      obligation to, continue the Loan if Agent believes continuing the Loan is not
      in
      the best interests of Lenders.

     

    (b)         Except
      with the prior written consent of Agent, no Lender may assert or exercise any
      enforcement right or remedy in respect of the Loan or other Obligations, as
      against Borrower or any of the Collateral or other property of
      Borrower.

     

    6.4.           Indemnification  Lenders
      agree to indemnify Agent (without limiting any obligations of the Borrower
      hereunder) ratably, in accordance with their Pro Rata Shares, for any and all
      claims of any kind and nature whatsoever that may be imposed on, incurred by
      or
      asserted against Agent (including by any Lender) arising out of or by reason
      of
      any investigation in or in any way relating to or arising out of this Agreement
      or any other Transaction Document or any other documents contemplated by or
      referred to herein or therein or the transactions contemplated hereby or thereby
      (including the costs and expenses that Agent is obligated to pay hereunder)
      or
      the enforcement of any of the terms hereof or thereof or of any such other
      documents provided that no Lender shall be liable for any of the foregoing
      to
      the extent that it arises from the gross negligence or willful misconduct of
      the
      party to be indemnified.  The foregoing indemnity shall survive the
      payment of the Obligations and the termination or non-renewal of this
      Agreement.

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

    6.5.           Non-Reliance
      on Agent and Other Lenders.  Each Lender agrees that it has,
      independently and without reliance on Agent or other Lender, and based on such
      documents and information as it has deemed appropriate, made its own credit
      analysis of the Borrower and has made its own decision to enter into this
      Agreement and the other Transaction Documents and that it will, independently
      and without reliance upon Agent or any other Lender, and based on such documents
      and information as it shall deem appropriate at the time, continue to make
      its
      own analysis and decisions in taking or not taking action under this Agreement
      or any of the other Transaction Documents.  Agent shall not be
      required to keep itself informed as to the performance or observance by the
      Borrower of any term or provision of this Agreement or any of the other
      Transaction Documents or any other document referred to or provided for herein
      or therein or to inspect the properties or books of Borrower.  Agent
      will use reasonable efforts to provide Lenders with any information received
      by
      Agent from the Borrower which is required to be provided to Lenders or deemed
      to
      be requested by Lenders hereunder and with a copy of any Notice of Default
      or
      failure of condition received by Agent from the Borrower or any Lender; provided
      that, Agent shall not be liable to any Lender for any failure to do so, except
      to the extent that such failure is attributable to Agent's own willful
      misconduct as determined by a final non-appealable judgment of a court of
      competent jurisdiction.  Except for notices, reports and other
      documents expressly required to be furnished to Lenders by Agent or deemed
      requested by Lenders hereunder, Agent shall not have any duty or responsibility
      to provide any Lender with any other credit or other information concerning
      the
      affairs, financial condition or business of Borrower that may come into the
      possession of Agent.

     

    6.6.           Failure
      to Act.  Except for action expressly required of Agent hereunder
      and under the other Loan Documents, Agent shall in all cases be fully justified
      in failing or refusing to act hereunder and thereunder unless it shall receive
      further assurances to its satisfaction from Lenders of their indemnification
      obligations under Section 6.4 hereof against any
      and all liability and expense that may be incurred by it by reason of taking
      or
      continuing to take any such action.

     

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

     

    6.8.           Collateral
      Matters.

     

    (a)                    Agent
      may, at its option, but shall not be obligated to from time to time, at any
      time
      on or after an Event of Default and for so long as the same is continuing or
      upon any other failure of a condition precedent to the Loan hereunder, make
      such
      disbursements and advances ("Special Agent Advances") which Agent, in its sole
      discretion, (i) deems necessary or desirable either to preserve or protect
      the
      Collateral or any portion thereof, or  (ii) to enhance the likelihood
      or maximize the amount of repayment by the Borrower of the Loan and other
      Obligations, or (iii) to pay any other amount chargeable to the Borrower
      pursuant to the terms of this Agreement or any of the other Loan Documents
      consisting of  costs, fees and expenses.  The Special Agent
      Advances shall be repayable on demand and together with all interest thereon
      shall constitute Obligations secured by the Collateral.  Special Agent
      Advances shall not constitute the Loan but shall otherwise constitute
      Obligations hereunder.  Interest on Special Agent Advances shall be
      payable at the Interest Rate or the Default Rate as applicable and shall be
      payable on demand.  Each Lender agrees that it shall make available to
      Agent, upon Agent's demand, in immediately available funds, the amount equal
      to
      such Lender's Pro Rata Share of each such Special Agent Advance.  If
      such funds are not made available to Agent by such Lender, such Lender shall
      be
      deemed a Defaulting Lender and Agent shall be entitled to recover such funds,
      on
      demand from such Lender together with interest thereon for each day from the
      date such payment was due until the date such amount is paid to Agent at the
      Federal Funds Rate for each day during such period (as published by the Federal
      Reserve Bank of New York or at Agent's option based on the arithmetic mean
      determined by Agent of the rates for the last transaction in overnight Federal
      Funds arranged prior to 9:00 a.m. (New York City time) on that day by each
      of
      the three leading brokers of Federal Funds transactions in New York City
      selected by Agent) and if such amounts are not paid within three (3) days of
      Agent's demand, at the default rate pursuant to this Agreement.

    
      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

    

    (b)                    Lenders
      hereby irrevocably authorize Agent, at its option and in its discretion to
      release any security interest in, mortgage or lien upon, any of the Collateral
      (i) upon termination of the Commitments and payment and satisfaction of all
      of
      the Obligations or (ii) constituting property being sold or disposed of if
      Borrower certifies to Agent that the sale or disposition is made in compliance
      with Section 9.4

     

    hereof
      (and Agent may rely conclusively on any such certificate, without further
      inquiry), or (iii) constituting property in which the Borrower did not own
      an
      interest at the time the security interest, mortgage or lien was granted or
      at
      any time thereafter, or (iv) if required or permitted under the terms of any
      of
      the other Loan Documents, including any intercreditor agreement, or (v)
      approved, authorized or ratified in writing by all of Lenders.  Except
      as provided above, Agent will not release any security interest in, mortgage
      or
      lien upon, any of the Collateral without the prior written authorization of
      all
      of Lenders. Upon request by Agent at any time, Lenders will promptly confirm
      in
      writing Agent's authority to release particular types or items of Collateral
      pursuant to this Section.

     

    (c)                    Without
      in any manner limiting Agent's authority to act without any specific or further
      authorization or consent by the Required Lenders, each Lender agrees to confirm
      in writing, upon request by Agent, the authority to release Collateral conferred
      upon Agent under this Section.  Agent shall (and is hereby irrevocably
      authorized by Lenders to) execute such documents as may be necessary to evidence
      the release of the security interest, mortgage or liens granted to Agent upon
      any Collateral to the extent set forth above; provided that, (i) Agent shall
      not
      be required to execute any such document on terms which, in Agent's opinion,
      would expose Agent to liability or create any obligations or entail any
      consequence other than the release of such security interest, mortgage or liens
      without recourse or warranty and (ii) such release shall not in any manner
      discharge, affect or impair the Obligations or any security interest, mortgage
      or lien upon (or obligations of the Borrower in respect of) the Collateral
      retained by the Borrower.

     

    (d)                    Agent
      shall have no obligation whatsoever to any Lender or any other Person to
      investigate, confirm or assure that the Collateral exists or is owned by any
      Loan Party or is cared for, protected or insured or has been encumbered, or
      that
      any particular items of Collateral meet the eligibility criteria applicable
      in
      respect of the Loan hereunder, or whether any particular reserves are
      appropriate, or that the liens and security interests granted to Agent pursuant
      hereto or any of the Loan Documents or otherwise have been properly or
      sufficiently or lawfully created, perfected, protected or enforced or are
      entitled to any particular priority, or to exercise at all or in any particular
      manner or under any duty of care, disclosure or fidelity, or to continue
      exercising, any of the rights, authorities and powers granted or available
      to
      Agent in this Agreement or in any of the other Loan Documents, it being
      understood and agreed that in respect of the Collateral, or any act, omission
      or
      event related thereto, subject to the other terms and conditions contained
      herein, Agent may act in any manner it may deem appropriate, in its discretion,
      given Agent's own interest in the Collateral as a Lender and that Agent shall
      have no duty or liability whatsoever to any other Lender.

     

    6.9.           Agency
      for Perfection.  Each Lender hereby appoints Agent and each other
      Lender as agent and bailee for the purpose of perfecting the security interests
      in and liens upon the Collateral of Agent in assets which, in accordance with
      Article 9 of the UCC can be perfected only by possession (or where the security
      interest of a secured party with possession has priority over the security
      interest of another secured party) and Agent and each Lender hereby acknowledges
      that it holds possession of any such Collateral for the benefit of Agent as
      secured

     

    party.  Should
      any Lender obtain possession of any such Collateral, such Lender shall notify
      Agent thereof, and, promptly upon Agent's request therefor shall deliver such
      Collateral to Agent or in accordance with Agent's instructions.

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

     

    6.10.                      Successor
      Agent.  Agent may resign as Agent upon thirty (30) days' notice to
      Lenders and the Borrower. If Agent resigns under this Agreement, the Required
      Lenders shall appoint from among the Lenders or their affiliates a successor
      agent for Lenders subject to the Company's approval of the successor, which
      shall not be unreasonably withheld.  If no successor agent is
      appointed prior to the effective date of the resignation of Agent, Agent may
      appoint, after consulting with Lenders and the Borrower, a successor agent
      from
      among Lenders.  Upon the acceptance by the Lender so selected of its
      appointment as successor agent hereunder, such successor agent shall succeed
      to
      all of the rights, powers and duties of the retiring Agent and the term "Agent"
      as used herein and in the other Loan Documents shall mean such successor agent
      and the retiring Agent’s appointment, powers and duties as Agent shall be
      terminated.  After any retiring Agent's resignation hereunder as
      Agent, the provisions of this Section 6 shall inure to its benefit as to
      any actions taken or omitted by it while it was Agent under this
      Agreement.  If no successor agent has accepted appointment as Agent by
      the date which is thirty (30) days after the date of a retiring Agent's notice
      of resignation, the retiring Agent’s resignation shall nonetheless thereupon
      become effective and Lenders shall perform all of the duties of Agent hereunder
      until such time, if any, as the Required Lenders appoint a successor agent
      as
      provided for above.

     

    6.11.                      Other
      Agent Designations.  Agent may at any time and from time to time
      determine that a Lender may, in addition, be a "Co-Agent", "Syndication Agent",
      "Documentation Agent" or similar designation hereunder and enter into an
      agreement with such Lender to have it so identified for purposes of this
      Agreement.  Any such designation shall be effective upon written
      notice by Agent to the Borrower of any such designation.  Any Lender
      that is so designated as a Co-Agent, Syndication Agent, Documentation Agent
      or
      such similar designation by Agent shall have no right, power, obligation,
      liability, responsibility or duty under this Agreement or any of the other
      Loan
      Documents other than those applicable to all Lenders as such.  Without
      limiting the foregoing, the Lenders so identified shall not have or be deemed
      to
      have any fiduciary relationship with any Lender and no Lender shall be deemed
      to
      have relied, nor shall any Lender rely, on a Lender so identified as a Co-Agent,
      Syndication Agent, Documentation Agent or such similar designation in deciding
      to enter into this Agreement or in taking or not taking action
      hereunder.

     

    The
      Agent
      is authorized to rely on any written, verbal, electronic, telephonic or telecopy
      loan requests which the Agent believes in its good faith judgment to emanate
      from a properly authorized representative of the Borrower, whether or not that
      is in fact the case.  The Borrower does hereby irrevocably confirm,
      ratify and approve all such advances by the Agent or the Lenders and does hereby
      indemnify the Agent or the Lenders against losses and expenses (including court
      costs, attorneys' and paralegals' fees) and shall hold the Agent and the Lenders
      harmless with respect thereto.

     

    7.           SECURITY
      FOR THE OBLIGATIONS.

     

    7.1.           Security
      for Obligations.  As security for the payment of the Obligations,
      the Borrower does hereby pledge, assign, transfer and deliver to the Agent
      and
      the Lenders and does

     

    hereby
      grant to the Agent and the Lenders a continuing and unconditional security
      interest in and to any and all property of the Borrower, of any kind or
      description, tangible or intangible, whether now existing or hereafter arising
      or acquired, including, but not limited to, the following (all of which
      property, along with the products and proceeds therefrom, are individually
      and
      collectively referred to as the "Collateral"):

     

    (a)         all
      property of, or for the account of, the Borrower now or hereafter coming into
      the possession, control or custody of, or in transit to, the Lenders or any
      agent or bailee for the Agent, any Lenders or any parent, affiliate or
      subsidiary of the Agent or any Lender (whether for safekeeping, deposit,
      collection, custody, pledge, transmission or otherwise), including all earnings,
      dividends, interest, or other rights in connection therewith and the products
      and proceeds therefrom, including the proceeds of insurance thereon;
      and

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

     

    (b)         the
      additional property of the Borrower, whether now existing or hereafter arising
      or acquired, and wherever now or hereafter located, together with all additions
      and accessions thereto, substitutions for, and replacements, products and
      proceeds therefrom, and all of the Borrower's books and records and recorded
      data relating thereto (regardless of the medium of recording or storage),
      together with all of the Borrower's right, title and interest in and to all
      computer software required to utilize, create, maintain and process any such
      records or data on electronic media, identified and set forth as
      follows:

     

    (i)           All
      Accounts and all Goods whose sale, lease or other disposition by the Borrower
      has given rise to Accounts and have been returned to, or repossessed or stopped
      in transit by, the Borrower, or rejected or refused by an Account
      Debtor;

     

    (ii)           All
      Real Property;

     

    (iii)           All
      Inventory, including, without limitation, raw materials, work-in-process and
      finished goods;

     

    (iv)           All
      Goods (other than Inventory), including, without limitation, embedded software,
      Equipment, vehicles, furniture and Fixtures:

     

    (v)           All
      Software and computer programs and Intellectual Property;

     

    (vi)           All
      Securities, Investment Property, Financial Assets and Deposit
      Accounts;

     

    (vii)           All
      Chattel Paper, Electronic Chattel Paper, Instruments, Documents, all proceeds
      of
      letters of credit, health care insurance Receivables, Supporting
      Obligations,  notes secured by real estate, and General Intangibles,
      including Payment Intangibles; and

     

    (viii)                      All
      insurance policies and proceeds insuring the foregoing property or any part
      thereof, including unearned premiums.

     

    7.2.           Possession
      and Transfer of Collateral.  Until an Event of Default has
      occurred hereunder, the Borrower shall be entitled to possession or use of
      the
      Collateral.  The cancellation or surrender of the Note, upon payment
      or otherwise, shall not affect the right of the Agent on behalf of the Lenders
      to retain the Collateral for any other of the Obligations.  The
      Borrower shall not sell, assign (by operation of law or otherwise), license,
      lease or otherwise dispose of, or grant any option with respect to any of the
      Collateral, except that the Borrower may sell Inventory in the ordinary course
      of business.

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

     

    7.3.           Financing
      Statements.  The Borrower shall, at the Agent's request, at any
      time and from time to time, execute and deliver to the Agent such financing
      statements, amendments and other documents and do such acts as the Agent deems
      necessary in order to establish and maintain valid, attached and perfected
      first
      security interests in the Collateral in favor of the Agent, free and clear
      of
      all Liens and claims and rights of third parties whatsoever (except as otherwise
      specifically set forth in Section 8.15 or Section 9.2
      hereof).  The Borrower hereby irrevocably authorizes the Agent at any
      time, and from time to time, to file in any jurisdiction any initial financing
      statements and amendments thereto that (a) indicate the Collateral
      (i) as all assets of the Borrower or words of similar effect, regardless of
      whether any particular asset comprised in the Collateral falls within the scope
      of Article 9 of the Uniform Commercial Code of the jurisdiction wherein
      such financing statement or amendment is filed, or (ii) as being of an
      equal or lesser scope or within greater detail, and (b) contain any other
      information required by Section 5 of Article 9 of the Uniform
      Commercial Code of the jurisdiction wherein such financing statement or
      amendment is filed regarding the sufficiency or filing office acceptance of
      any
      financing statement or amendment, including (i) whether the Borrower is an
      organization, the type of organization and any organization identification
      number issued to the Borrower, and (ii) in the case of a financing
      statement filed as a fixture filing or indicating Collateral as as-extracted
      collateral or timber to be cut, a sufficient description of real property to
      which the Collateral relates.  The Borrower agrees to furnish any such
      information to the Agent promptly upon request.  The Borrower further
      ratifies and affirms its authorization for any financing statements and/or
      amendments thereto, executed and filed by the Agent in any jurisdiction prior
      to
      the date of this Agreement.

     

    7.4.           Additional
      Collateral.  The Borrower shall deliver to the Agent immediately
      upon its demand, such other collateral as the Agent may from time to time
      request, should the value of the Collateral, in the Agent's sole and absolute
      discretion, decline, deteriorate, depreciate or become impaired, and does hereby
      grant to the Agent and the Lenders a continuing security interest in such other
      collateral, which, when pledged, assigned and transferred to the Agent and
      the
      Lenders shall be and become part of the Collateral.  The Agent's and
      Lenders' security interests in each of the foregoing Collateral shall be valid,
      complete and perfected whether or not covered by a specific
      assignment.

     

    7.5.           Preservation
      of the Collateral.  The Agent may, but is not required to, take
      such action from time to time as the Agent deems appropriate to maintain or
      protect the Collateral.  The Agent shall have exercised reasonable
      care in the custody and preservation of the Collateral if it takes such action
      as the Borrower shall reasonably request in writing; provided, however, that
      such request shall not be inconsistent with the Agent's and the Lenders' status
      as a secured party, and the failure of the Agent to comply with any such request
      shall not be deemed a failure

     

    to
      exercise reasonable care.  In addition, any failure of the Agent to
      preserve or protect any rights with respect to the Collateral against prior
      or
      third parties, or to do any act with respect to preservation of the Collateral,
      not so requested by the Borrower, shall not be deemed a failure to exercise
      reasonable care in the custody or preservation of the Collateral.  The
      Borrower shall have the sole responsibility for taking such action as may be
      necessary, from time to time, to preserve all rights of the Borrower and the
      Agent and the Lenders in the Collateral against prior or third
      parties.  Without limiting the generality of the foregoing, where
      Collateral consists in whole or in part of securities, the Borrower represents
      to, and covenants with, the Agent and the Lenders that the Borrower has made
      arrangements for keeping informed of changes or potential changes affecting
      the
      securities (including, but not limited to, rights to convert or subscribe,
      payment of dividends, reorganization or other exchanges, tender offers and
      voting rights), and the Borrower agrees that neither the Agent nor the Lenders
      shall have any responsibility or liability for informing the Borrower of any
      such or other changes or potential changes or for taking any action or omitting
      to take any action with respect thereto.

     

    7.6.           Other
      Actions as to any and all Collateral.  The Borrower further agrees
      to take any other action reasonably requested by the Agent to insure the
      attachment, perfection and first priority of, and the ability of the Agent
      to
      enforce, the Agent's and the Lenders' security interest in any and all of the
      Collateral including, without limitation, (a) executing, delivering and,
      where appropriate, filing financing statements and amendments relating thereto
      under the Uniform Commercial Code, to the extent, if any, that the Borrower's
      signature thereon is required therefor, (b) causing the Agent's and the
      Lenders' name to be noted as secured party on any certificate of title for
      a
      titled good if such notation is a condition to attachment, perfection or
      priority of, or ability of the Agent to enforce, the Agent's and the Lenders'
      security interest in such Collateral, (c) complying with any provision of
      any statute, regulation or treaty of the United States as to any Collateral
      if
      compliance with such provision is a condition to attachment, perfection or
      priority of, or ability of the Agent to enforce, the Agent's and the Lenders'
      security interest in such Collateral, (d) obtaining governmental and other
      third party consents and approvals, including without limitation any consent
      of
      any licensor, lessor or other Person obligated on Collateral, (e) obtaining
      waivers from mortgagees and landlords or other third parties in form and
      substance satisfactory to the Agent, (f) taking all actions required by the
      UCC in effect from time to time or by other law, as applicable in any relevant
      UCC jurisdiction, or by other law as applicable in any foreign jurisdiction
      and
      (g) cooperating with Agent in the disposition of any Collateral to satisfy
      amounts due to any Lender following any Event of Default.

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

     

    7.7.           Collateral
      in the Possession of a Warehouseman or Bailee.  If any of the
      Collateral at any time is in the possession of a warehouseman or bailee, the
      Borrower shall promptly notify the Agent thereof, and if requested by the Agent,
      shall promptly obtain an acknowledgment from the warehouseman or bailee, in
      form
      and substance satisfactory to the Agent, that the warehouseman or bailee holds
      such Collateral for the benefit of the Agent and shall act upon the instructions
      of the Agent, without the further consent of the Borrower.

     

    7.8.           Commercial
      Tort Claims.  If the Borrower shall at any time hold or acquire a
      commercial tort claim, the Borrower shall immediately notify the Agent in
      writing signed by the Borrower of the details thereof and grant to the Agent
      and
      the Lenders in such writing a security

     

    interest
      therein and in the proceeds thereof, all upon the terms of this Agreement,
      with
      such writing to be in form and substance satisfactory to the Agent.

     

    7.9.           Electronic
      Chattel Paper and Transferable Records.  If the Borrower at any
      time holds or acquires an interest in any electronic chattel paper or any
      "transferable record", as that term is defined in Section 201 of the
      federal Electronic Signatures in Global and National Commerce Act, or in
      Section 16 of the Uniform Electronic Transactions Act as in effect in any
      relevant jurisdiction, the Borrower shall promptly notify the Agent thereof
      and,
      at the request of the Agent, shall take such action as the Agent may reasonably
      request to vest in the Agent control under Section 9-105 of the UCC of such
      electronic chattel paper or control under Section 201 of the federal
      Electronic Signatures in Global and National Commerce Act or, as the case may
      be, Section 16 of the Uniform Electronic Transactions Act, as so in effect
      in such jurisdiction, of such transferable record.

     

    8.           REPRESENTATIONS
      AND WARRANTIES.

     

    To
      induce the Agent and Lenders to make
      the Loan, the Borrower makes the following representations and warranties to
      the
      Agent and the Lenders, each of which shall be true and correct as of the date
      of
      the execution and delivery of this Agreement, and as of the date of the Second
      Draw and the Third Draw closings, and which shall survive the execution and
      delivery of this Agreement:

     

    8.1.           Borrower
      Organization and Name.  The Borrower is a corporation duly
      organized, existing and in good standing under the laws of the State of Florida,
      with full and adequate corporate power to carry on and conduct its business
      as
      presently conducted.  The Borrower's state issued organizational
      identification number is P03000000129.  The Borrower is duly licensed
      or qualified in all foreign jurisdictions wherein the nature of its activities
      require such qualification or licensing.  The exact legal name of the
      Borrower is as set forth in the first paragraph of this Agreement, and the
      Borrower currently does not conduct, nor has it during the last five (5) years
      conducted, business under any other name or trade name, except for "Interaxx
      Digital Tools, Inc." which it used prior to July 23, 2004.  The
      Borrower does not have any Subsidiaries.

     

    8.2.           Authorization;
      Validity.  The Borrower has full right power and authority to
      enter into this Agreement, to make the borrowings and execute and deliver the
      Loan Documents as provided herein and to perform all of its duties and
      obligations under this Agreement and the Loan Documents.  The
      execution and delivery of this Agreement and the Loan Documents will not, nor
      will the observance or performance of any of the matters and things herein
      or
      therein set forth, violate or contravene any provision of law or of the articles
      of incorporation or bylaws of the Borrower.  All necessary and
      appropriate corporate action has been taken on the part of the Borrower to
      authorize the execution and delivery of this Agreement and the Loan
      Documents.  This Agreement and the Loan Documents are valid and
      binding agreements and contracts of the Borrower in accordance with their
      respective terms.

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

     

    8.3.           Compliance
      with Laws.  The nature and transaction of the Borrower's Business
      and operations and the use of its properties and assets, including, but not
      limited to, the Collateral or any real estate owned or occupied by the Borrower,
      do not and during the term of

     

    the
      Loan
      shall not, violate or conflict with any applicable law, statute, ordinance,
      rule, regulation or order of any kind or nature, including, without limitation,
      the provisions of Occupational Safety and Health Act of 1970, as amended, the
      Fair Labor Standards Act of 1938, as amended, the Code, and the rules and
      regulations thereunder, and all Environmental Laws or any zoning, land use,
      building, noise abatement, occupational health and safety or other laws, any
      building permit or any condition, grant, easement, covenant, condition or
      restriction, whether recorded or not.  The Borrower has obtained all
      material permits, licenses, approvals, consents, certificates, orders or
      authorizations of any Governmental Authority required for the lawful conduct
      of
      its business (the "Permits").  All of the Permits are valid and
      subsisting and in full force and effect.  There are no actions, claims
      or proceedings pending or to the best of the Borrower's knowledge, threatened
      that seek the revocation, cancellation, suspension or modification of any of
      the
      Permits.

     

    8.4.           Regulated
      Business.  Without limiting the generality of the representation
      and warranty set forth in Section 8.3, Borrower represents and warrants
      that it has been issued such licenses or permits as are required to conduct
      its
      business as being conducted as of the date hereof, including but not limited
      to
      your license to be a supplier of durable medical equipment, orthotics,
      prosthetics, and supplies ("DMEPOS") issued by the Centers for Medicare &
Medicaid Services and your license from the State of Florida to be a Home
      Medical Equipment and Services provider ("HME") and as Borrower intends to
      conduct its business at least during the term of the Loan. None of the
      individuals in its employ are required to have any licenses to operate
      Borrower's business.  Copies of the DMEPOS and HME licenses are
      attached hereto as Schedule 8.4.

     

    8.5.           Environmental
      Laws and Hazardous Substances.  The Borrower represents, warrants
      and agrees with the Agent that (i) the Borrower has not generated, used,
      stored, treated, transported, manufactured, handled, produced or disposed of
      any
      Hazardous Materials, on or off any of the premises of the Borrower (whether
      or
      not owned by it) in any manner which at any time violates any Environmental
      Law
      or any license, permit, certificate, approval or similar authorization
      thereunder, (ii) the operations of the Borrower comply in all material
      respects with all Environmental Laws and all licenses, permits certificates,
      approvals and similar authorizations thereunder, (iii) there has been no
      investigation, proceeding, complaint, order, directive, claim, citation or
      notice by any governmental authority or any other Person, nor is any pending
      or,
      to the best of the Borrower's knowledge, threatened, and the Borrower shall
      immediately notify the Agent upon becoming aware of any such investigation,
      proceeding, complaint, order, directive, claim, citation or notice, and shall
      take prompt and appropriate actions to respond thereto, with respect to any
      non-compliance with, or violation of, the requirements of any Environmental
      Law
      by the Borrower or the release, spill or discharge, threatened or actual, of
      any
      Hazardous Material or the generation, use, storage, treatment, transportation,
      manufacture, handling, production or disposal of any Hazardous Material or
      any
      other environmental, health or safety matter, which affects the Borrower or
      its
      business, operations or assets or any properties at which the Borrower has
      transported, stored or disposed of any Hazardous Materials, (iv) the
      Borrower has no material liability, contingent or otherwise, in connection
      with
      a release, spill or discharge, threatened or actual, of any Hazardous Materials
      or the generation, use, storage, treatment, transportation, manufacture,
      handling, production or disposal of any Hazardous Material, and (v) without
      limiting the generality of the foregoing, the Borrower shall, following
      determination by the Agent that there is non-compliance, or any

     

    condition
      which requires any action by or on behalf of the Borrower in order to avoid
      any
      non-compliance, with any Environmental Law, at the Borrower's sole expense
      cause
      an independent environmental engineer acceptable to the Agent to conduct such
      tests of the relevant site as are appropriate, and prepare and deliver a report
      setting forth the result of such tests, a proposed plan for remediation and
      an
      estimate of the costs thereof.

     

    8.6.           Absence
      of Breach or Conflict.  The execution, delivery and performance of
      this Agreement, the Loan Documents and any other documents or instruments to
      be
      executed and delivered by the Borrower in connection with the Loan shall not:
      (i) violate any provisions of law or any applicable regulation, order,
      writ, injunction or decree of any court or governmental authority, or
      (ii) conflict with, be inconsistent with, or result in any breach or
      default of any of the terms, covenants, conditions, or provisions of any
      indenture, mortgage, deed of trust, instrument, document, agreement or contract
      of any kind to which the Borrower is a party or by which the Borrower or any
      of
      its property or assets may be bound.

    
      
         

      

      
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    8.7.           Capitalization.  The
      number of shares and type of all authorized, issued and outstanding capital
      stock, options and other securities of the Borrower (whether or not presently
      convertible into or exercisable or exchangeable for shares of capital stock
      of
      the Borrower) is set forth in Schedule 8.7. All outstanding shares of
      capital stock are duly authorized, validly issued, fully paid and nonassessable
      and have been issued in compliance with all applicable securities laws. Except
      as disclosed in Schedule 8.7, there are no outstanding options, warrants,
      script rights to subscribe to, calls or commitments of any character whatsoever
      relating to, or securities, rights or obligations convertible into or
      exercisable or exchangeable for, or giving any Person any right to subscribe
      for
      or acquire, any shares of Common Stock, or contracts, commitments,
      understandings or arrangements by which the Borrower is or may become bound
      to
      issue additional shares of Common Stock, or securities or rights convertible
      or
      exchangeable into shares of Common Stock. Except as disclosed in Schedule
      8.7, there are no anti-dilution or price adjustment provisions contained in
      any security issued by the Borrower (or in any agreement providing rights to
      security holders) and the issue and sale of the Securities will not obligate
      the
      Borrower to issue shares of Common Stock or other securities to any Person
      and
      will not result in a right of any holder of Borrower securities to adjust the
      exercise, conversion, exchange or reset price under such securities. To the
      knowledge of the Borrower, except as specifically disclosed in Schedule
      8.7, no Person or group of related Persons beneficially owns (as determined
      pursuant to Rule 13d-3 under the Exchange Act), or has the right to acquire,
      by
      agreement with or by obligation binding upon the Borrower, beneficial ownership
      of in excess of 5% of the outstanding Common Stock, ignoring for such purposes
      any limitation on the number of shares of Common Stock that may be owned at
      any
      single time.

     

    8.8.           Reservation
      of Shares.  The Borrower has reserved and until
      the Loan is repaid in full the Borrower shall keep reserved from its duly
      authorized capital stock the maximum number of shares of Common Stock issuable
      upon conversion of the Loan into shares of common stock.

     

    8.9.           SEC
      Reports; Financial Statements.  The Borrower has filed all reports
      required to be filed by it under the Exchange Act, including pursuant to Section
      13(a) or 15(d) thereof, for the two years preceding the date hereof (or such
      shorter period as the Borrower was required by law to file such material) (the
      foregoing materials (together with any materials filed by the

     

    Borrower
      under the Exchange Act, whether or not required) being collectively referred
      to
      herein as the "SEC Reports" and, together with this Agreement and the Exhibits
      and Schedules to this Agreement, the "Disclosure Materials") on a timely basis
      or has received a valid extension of such time of filing and has filed any
      such
      SEC Reports prior to the expiration of any such extension.  The
      Borrower has delivered to the Agent true, correct and complete copies of all
      SEC
      Reports filed within the 10 days preceding the date hereof.  As of
      their respective dates, the SEC Reports complied in all material respects with
      the requirements of the Securities Act and the Exchange Act and the rules and
      regulations of the Securities and Exchange Commission promulgated thereunder,
      and none of the SEC Reports, when filed, contained any untrue statement of
      a
      material fact or omitted to state a material fact required to be stated therein
      or necessary in order to make the statements therein, in the light of the
      circumstances under which they were made, not misleading.  The
      financial statements of the Borrower included in the SEC Reports comply in
      all
      material respects with applicable accounting requirements and the rules and
      regulations of the Commission with respect thereto as in effect at the time
      of
      filing.  Such financial statements have been prepared in accordance
      with GAAP, except as may be otherwise specified in such financial statements
      or
      the notes thereto, and fairly present in all material respects the financial
      position of the Borrower as of and for the dates thereof and the results of
      operations and cash flows for the periods then ended, subject, in the case
      of
      unaudited statements, to normal, immaterial, year-end audit
      adjustments.  All material agreements to which the Borrower is a party
      or to which the property or assets of the Borrower is subject are included
      as
      part of or specifically identified in the SEC Reports.

     

    8.10.                      Collateral
      Representations.  The Borrower is the sole owner of the
      Collateral, free from any Lien of any kind, other than the Lien of the Agent
      and
      the Lenders.

     

    8.11.                      Financial
      Statements.  All financial statements submitted to the Agent have
      been prepared in accordance with GAAP on a basis, except as otherwise noted
      therein, consistent with the previous fiscal year and truly and accurately
      reflect the financial condition of the Borrower and the results of the
      operations for the Borrower as of such date and for the periods
      indicated.  Since the date of the most recent financial statement
      submitted by the Borrower to the Agent, there has been no material adverse
      change in the financial condition or in the assets or liabilities of the
      Borrower, or any changes except those occurring in the ordinary course of
      business.

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

     

    8.12.                      Projections.
      The projections provided to Agent by Borrower, a copy of which are attached
      hereto as Exhibit "E" represent Borrower's best estimate of its
      anticipated sales and costs for the periods covered thereby based upon the
      assumptions set forth therein.

     

    8.13.                      Priority
      of Liens.  The security interests and liens granted to Agent and
      Lenders under this Agreement and the other Loan Documents constitute valid
      and
      perfected first priority liens and security interests in and upon the Collateral
      subject only to the liens created pursuant hereto.

     

    8.14.                      Intellectual
      Property.  Borrower owns or licenses or otherwise has the right to
      use all Intellectual Property necessary for the operation of its business as
      presently conducted or proposed to be conducted.  As of the date
      hereof, the Borrower does not have any Intellectual Property registered, or
      subject to pending applications, in the United States Patent and Trademark
      Office or any similar office or agency in the United States, any State thereof,
      any

     

    political
      subdivision thereof or in any other country, other than those described in
      Schedule 8.14 attached hereto and has not granted any licenses with
      respect thereto other than as set forth therein.  No event has
      occurred which permits or would permit after notice or passage of time or both,
      the revocation, suspension or termination of such rights.  To the best
      of the Borrower's knowledge, no slogan or other advertising device, product,
      process, method, substance or other Intellectual Property or goods bearing
      or
      using any Intellectual Property presently contemplated to be sold by or employed
      by the Borrower infringes any patent, trademark, servicemark, tradename,
      copyright, license or other Intellectual Property owned by any other Person
      presently and no claim or litigation is pending or threatened against or
      affecting the Borrower contesting its right to sell or use any such Intellectual
      Property.  Schedule 8.14 sets forth all of the agreements or
      other arrangements of the Borrower pursuant to which the Borrower has a material
      license or other right to use any trademarks, logos, designs, representations
      or
      other Intellectual Property owned by another person as in effect on the date
      hereof and the dates of the expiration of such agreements or other arrangements
      of the Borrower as in effect on the date hereof (collectively, together with
      such agreements or other arrangements as may be entered into by the Borrower
      after the date hereof, collectively, the "License Agreements" and individually,
      a "License Agreement").  No trademark, servicemark, copyright or other
      Intellectual Property at any time used by the Borrower which is owned by another
      person, or owned by the Borrower subject to any Lien in favor of any person
      other than Agent, is affixed to any Inventory, except (a) to the extent
      permitted under the term of the license agreements listed on Schedule 8.14
and (b) to the extent the sale of Inventory to which such Intellectual
      Property is affixed is permitted to be sold by the Borrower under applicable
      law
      (including the United States Copyright Act of 1976).

     

    8.15.                      Litigation
      and Taxes.  There is no litigation, demand, charge, claim,
      petition or governmental investigation or proceeding pending, or threatened,
      against the Borrower, which, if adversely determined, would result in any
      material adverse change in the financial condition or properties, business
      or
      operations of the Borrower.  The Borrower has duly filed all
      applicable income or other tax returns on a timely basis and has paid all income
      or other taxes when due.  There is no controversy or objection
      pending, or threatened in respect of any tax returns of the
      Borrower.

     

    8.16.                      Event
      of Default.  No Event of Default has occurred and is continuing,
      and no event has occurred and is continuing which, with the lapse of time,
      the
      giving of notice, or both, would constitute such an Event of Default under
      this
      Agreement or any of the Loan Documents and the Borrower is not in default
      (without regard to grace or cure periods) under any contract or agreement to
      which it is a party.

     

    8.17.                      ERISA
      Obligations.  Borrower is not subject to ERISA.

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

     

    8.18.                      Adverse
      Circumstances.  No condition, circumstance, event, agreement,
      document, instrument, restriction, litigation or proceeding (or threatened
      litigation or proceeding or basis therefor) exists which (a) could
      adversely affect the validity or priority of the Liens granted to the Agent
      and
      the Lenders under the Loan Documents, (b) could materially adversely affect
      the ability of the Borrower to perform its obligations under the Loan Documents,
      (c) would constitute a default under any of the Loan Documents, or
      (d) would constitute such a default with the giving of notice or lapse of
      time or both.

     

    8.19.                      Lending
      Relationship.  The Borrower acknowledges and agrees that the
      relationship hereby created with the Agent and the Lenders is and has been
      conducted on an open and arm's length basis in which no fiduciary relationship
      exists and that the Borrower has not relied and is not relying on any such
      fiduciary relationship in executing this Agreement and in consummating the
      Loan.  The Agent represents that it will receive the Note payable to
      its order as evidence of a bank loan.

     

    8.20.                      Business
      Loan.  The Loan, including interest rate, fees and charges as
      contemplated hereby, (i) are business loans within the purview of 815 ILCS
      205/4(1)(c), as amended from time to time, (ii) are an exempted transaction
      under the Truth In Lending Act, 12 U.S.C. 1601 etseq., as amended
      from time to time, and (iii) do not, and when disbursed shall not, violate
      the provisions of the Illinois usury laws, any consumer credit laws or the
      usury
      laws of any state which may have jurisdiction over this transaction, the
      Borrower or any property securing the Loan.

     

    8.21.                      Compliance
      with Regulation U.  No portion of the proceeds of the Loan shall
      be used by the Borrower, or any affiliates of the Borrower, either directly
      or
      indirectly, for the purpose of purchasing or carrying any margin stock, within
      the meaning of Regulation U as adopted by the Board of Governors of the Federal
      Reserve System.

     

    8.22.                      Governmental
      Regulation.  The Borrower is not, or after giving effect to any
      loan, will not be, subject to regulation under the Public Utility Holding
      Company Act of 1935, the Federal Power Act or the Investment Company Act of
      1940
      or to any federal or state statute or regulation limiting its ability to incur
      indebtedness for borrowed money.

     

    8.23.                      Small
      Business Matters.  The Borrower, together with its "affiliates"
      (as that term is defined in Title 13, Code of Federal Regulations,
§ 121.103), is a "small business concern" within the meaning of the Small
      Business Investment Act of 1958, as amended, and the regulations thereunder,
      including but not limited to Title 13, Code of Federal Regulations,
§ 121.103 (the "SBIA") and is in full compliance with, the provisions of
      the SBIA.  The information regarding the Borrower and its affiliates
      set forth in the SBA Form 480, Form 652 and Parts A and B of
      Form 1031; delivered at the Closing is accurate and
      complete.  The information regarding use of proceeds to be used by
      certain of the Lenders in completing SBA Form 1050 is also accurate and
      complete.  Copies of such forms shall have been completed and executed
      by the Borrower and delivered at the Closing together with a written statement
      of the Borrower regarding its planned use of the proceeds from the
      Loan.  The Borrower does not presently engage in, and it shall not
      hereafter engage in, any activities, nor shall the Borrower use directly or
      indirectly the proceeds from the Loan hereunder for any purpose, for which
      a
      Small Business Investment Company is prohibited from providing funds by the
      SBIA).  The Borrower acknowledges that the Lenders are and the Agent
      is a federal licensee under the SBIA.  Neither the Borrower nor any of
      its officers, managers, or shareholders or, to the best of their knowledge,
      their employees directly or indirectly own or control, or are related to any
      Person who owns or controls, any interest in, or is an officer, director,
      employee, shareholder, or agent of, the Agent or any entity in any way related
      to or affiliated with the Agent or any Lender or any other Small Business
      Investment Company.  The Borrower has not received, is not receiving,
      and has no intention to apply for any assistance from the SBA or any small
      Business Investment Company other than the Agent or any Lender.

     

    8.24.                      Individual
      Licenses.  There are no licenses required of individuals which are
      necessary to the conduct of the Borrower's Business as presently
      conducted.

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

     

    8.25.                      Solvency.  The
      Borrower is Solvent as of the date hereof and is not aware of any circumstance
      or event as of the date hereof that would result in the Borrower becoming not
      Solvent.  Immediately after the Closing the Borrower will be, Solvent.
      As used herein, the term "Solvent" means, with respect to a particular date,
      that on such date, (i) the fair market value of the total assets of the Borrower
      exceeds its total liabilities (including, without limitation, stated liabilities
      and contingent liabilities), and (ii) the Borrower is as of any time or from
      time to time currently able to discharge its debts as they come due or
      mature.  The Borrower has not taken any steps, and does not currently
      expect to take any steps, to seek protection pursuant to any bankruptcy,
      insolvency, debtor relief, reorganization or similar law, nor does the Borrower
      have any knowledge or reason to believe that creditors of the Borrower have
      initiated or intend to initiate involuntary bankruptcy or similar
      proceedings.

     

    8.26.                      Labor
      Agreements and Relations.

     

    (a)         Other
      than the Non-Compete Agreements with the Designated Stockholders there are
      no
      employment agreements or arrangements between the Borrower and any person and
      no
      collective bargaining or similar agreements between or applicable to the
      Borrower and any union, labor organization or other bargaining agent in respect
      of the employees of the Borrower as of the date hereof.

     

    (b)         The
      Borrower's relations with its employees are good.

     

    (c)         There
      is (i) no dispute, administrative proceeding or hearing or litigation pending
      or
      threatened with respect to any employee or former employee of the Borrower,
      (ii)
      no significant unfair labor practice complaint pending against the Borrower
      or,
      to the best of the Borrower's knowledge, threatened against it, before the
      National Labor Relations Board, and no significant grievance or significant
      arbitration proceeding arising out of or under any collective bargaining
      agreement is pending as of the date hereof against the Borrower or, to best
      of
      the Borrower's knowledge, threatened against it, and (ii) no significant strike,
      labor dispute, slowdown or stoppage is pending against the Borrower or, to
      the
      best of the Borrower's knowledge, threatened against the Borrower.

     

    8.27.                      Real
      Estate.  Borrower does not own any Real
      Property.  Schedule 8.27 attached hereto and by this reference
      made a part hereof sets forth all Real Property leased by the Borrower, together
      with, in the case of leased property, the name and mailing address of the lessor
      of such property.  The Borrower has (a) good and marketable fee simple
      title to or valid leasehold interests in all of its Real Property and (b) good
      and marketable title to all of its other property (including without limitation,
      all real and other property in each case as reflected in the financial
      statements delivered to the Agent hereunder), and in each case subject to no
      Liens other than Liens permitted hereunder. The Borrower enjoys peaceful and
      undisturbed possession of all its Real Property and there is no pending or,
      to
      the best of its knowledge, threatened condemnation proceeding relating to any
      such Real Property.  None of the leases evidencing any leasehold
      interests of the Borrower (the "Leases") contains provisions which have or
      could

     

    reasonably
      be expected to have a material adverse effect on the Agent or the
      Collateral.  No default exists under any Lease.  All of the
      Real Property owned, leased or used by the Borrower in the conduct of the
      Business is (i) insured to the extent and in a manner customary in the industry
      in which the Borrower is engaged, (ii) structurally sound with no known defects
      which have or could reasonably be expected to have a material adverse effect
      on
      the Agent or its Collateral, (iii) in good operating condition and repair,
      subject to ordinary wear and tear, (iv) not in need of maintenance or repair
      except for ordinary, routine maintenance and repair the cost of which is
      immaterial, (v) sufficient for the operation of the Business as currently
      conducted and (vi) in conformity with all applicable laws, ordinances, orders,
      regulations and other requirements (including applicable zoning, environmental,
      motor vehicle safety, occupational safety and health laws and regulations)
      relating thereto, except where the failure to conform could not reasonably
      be
      expected to have a material adverse effect.

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

     

    8.28.                      Transactions
      With Affiliates and Employees.  Except as set forth in SEC Reports
      filed at least ten days prior to the date hereof, none of the officers or
      directors of the Borrower and, to the knowledge of the Borrower, none of the
      employees of the Borrower is presently a party to any transaction with the
      Borrower (other than for services as employees, officers and directors),
      including any contract, agreement or other arrangement providing for the
      furnishing of services to or by, providing for rental of real or personal
      property to or from, or otherwise requiring payments to or from any officer,
      director or such employee or, to the knowledge of the Borrower, any entity
      in
      which any officer, director, or any such employee has a substantial interest
      or
      is an officer, director, trustee or partner.

     

    8.29.                      Bank
      Accounts.  The account numbers and locations of all Deposit
      accounts and other bank accounts of the Borrower are as follows listed on
Schedule 8.29.

     

    8.30.                      Place
      of Business.  The principal place of business of the Borrower is
      2101 West Atlantic Boulevard, Suite 101, Pompano, Florida   33069
      and the Borrower shall promptly notify the Agent of any change in such
      location.  The Borrower will not remove or permit the Collateral to be
      removed from such location without the prior written consent of the Agent,
      except for Inventory sold in the usual and ordinary course of the Borrower's
      business.

     

    8.31.                      Internal
      Accounting Controls.  The Borrower maintains a system of internal
      accounting controls sufficient to provide reasonable assurance that (i)
      transactions are executed in accordance with management's general or specific
      authorizations, (ii) transactions are recorded as necessary to permit
      preparation of financial statements in conformity with generally accepted
      accounting principles and to maintain asset accountability, (iii) access to
      assets is permitted only in accordance with management's general or specific
      authorization, and (iv) the recorded accountability for assets is compared
      with
      the existing assets at reasonable intervals and appropriate action is taken
      with
      respect to any differences.

     

    8.32.                      Complete
      Information.  This Agreement and all financial statements,
      schedules, certificates, confirmations, agreements, contracts, and other
      materials submitted to the Agent in connection with or in furtherance of this
      Agreement by or on behalf of the Borrower fully and fairly state the matters
      with which they purport to deal, and neither misstate any material fact nor,
      separately or in the aggregate, fail to state any material fact necessary to
      make the statements made not misleading.

     

    9.           NEGATIVE
      COVENANTS.

     

    9.1.           Indebtedness.  The
      Borrower shall not, either directly or indirectly, create, assume, incur or
      have
      outstanding any Indebtedness (including purchase money indebtedness), or become
      liable, whether as endorser, guarantor, surety or otherwise, for any debt or
      obligation of any other Person, except:

     

    (a)         the
      Obligations;

     

    (b)         endorsement
      for collection or deposit of any commercial paper secured in the ordinary course
      of business;

     

    (c)         obligations
      of the Borrower for taxes, assessments, municipal or other governmental
      charges;

     

    (d)         obligations
      of the Borrower for accounts payable, other than for money borrowed, incurred
      in
      the ordinary course of business;

    
      
         

      

      
        -29-

        
          

        

      

      
         

      

    

     

    (e)         obligations
      in the forms of guarantees of either payment or performance by Borrower or
      any
      other person;

     

    (f)         obligations
      existing on the date hereof which are disclosed on the financial statements
      referred to in Section 8.11; and

     

    (g)         obligations
      arising under Capital Leases for property acquired (or deemed to be acquired)
      by
      the Borrower or claims arising from the use or loss of, or damage to, such
      property.

     

    9.2.           Encumbrances.  The
      Borrower shall not, either directly or indirectly, create, assume, incur or
      suffer or permit to exist any Lien or charge of any kind or character upon
      any
      asset of the Borrower, whether owned at the date hereof or hereafter acquired
      except:

     

    (a)         Liens
      for taxes, assessments or other governmental charges not yet due or which are
      being contested in good faith by appropriate proceedings in such a manner as
      not
      to make the property forfeitable;

     

    (b)         Liens
      or charges incidental to the conduct of its business or the ownership of its
      property and assets which were not incurred in connection with the borrowing
      of
      money or the obtaining of an advance or credit, and which do not in the
      aggregate materially detract from the value of its property or assets or
      materially impair the use thereof in the operation of its business;

     

    (c)         Liens
      arising out of judgments or awards against the Borrower with respect to which
      it
      shall concurrently therewith be prosecuting a timely appeal or proceeding for
      review and with respect to which it shall have secured a stay of execution
      pending such appeal or proceedings for review;

     

    (d)         pledges
      or deposits to secure obligations under worker's compensation laws or similar
      legislation;

     

    (e)         good
      faith deposits in connection with lending contracts or leases to which the
      Borrower is a party;

     

    (f)         deposits
      to secure public or statutory obligations of the Borrower;

     

    (g)         Liens
      existing on the date hereof and disclosed on the financial statements referred
      to in Section 8.11;

     

    (h)         Liens
      securing obligations permitted under Section 4.1(c);
      and

     

    (i)         Liens
      granted to the Agent and the Lenders hereunder.

    
      
         

      

      
        -30-

        
          

        

      

      
         

      

    

     

    9.3.           Investments.  The
      Borrower shall not, either directly or indirectly, make or have outstanding
      any
      new investments (whether through purchase of stocks, obligations, hedging
      transactions or otherwise) in, or loans or advances to, or make an Acquisition
      of, any other Person, or acquire all or any substantial part of the assets,
      business, stock or other evidence of beneficial ownership of any other Person
      except:

     

    (a)         investments
      in direct obligations of the United States;

     

    (b)         investments
      in certificates of deposit issued by any bank with assets greater than One
      Hundred Million Dollars ($100,000,000.00); or

     

    (c)         investments
      in Prime Commercial Paper (for purposes hereof, Prime Commercial Paper shall
      mean short-term unsecured promissory notes sold by large corporations and rated
      A-1/P-1 by Standard & Poor's Ratings Group, a division of McGraw Hill, Inc.,
      and Moody's Investment Service, Inc.).

     

    9.4.           Subsidiaries;
      Transfer; Merger.  The Borrower shall not form any subsidiaries,
      and shall not, either directly or indirectly, merge, consolidate, sell,
      transfer, license, lease, encumber or otherwise dispose of all or any part
      of
      its property or business or all or any substantial part of its assets, or sell
      or discount (with or without recourse) any of its Promissory Notes, Chattel
      Paper, Payment Intangibles or Accounts, except Inventory in the ordinary course
      of business.

     

    9.5.           Issuance
      of Stock Interests.  Except as
      required pursuant to and in accordance with the terms of that certain settlement
      agreement between the Borrower and Mr. Michael Pringle dated November 30, 2006,
      the Borrower shall not, either directly or indirectly, issue or distribute
      any
      additional capital stock or other securities of the Borrower.

     

    9.6.           Distributions.  The
      Borrower shall not, either directly or indirectly, purchase or redeem any shares
      of its stock, or declare or pay any dividends (other than stock dividends),
      whether in cash or otherwise, or set aside any funds for any such purpose or
      make any distribution to its shareholders.

     

    9.7.           Bank
      Accounts.  The Borrower shall not establish any new Deposit
      accounts or other bank accounts, other than bank accounts set forth on
Schedule 8.28 without the prior written consent of the
      Agent.

     

    9.8.           Change
      of Legal Status; Organizational Documents.  The Borrower shall not
      change its name, its organizational identification number, if it has one, its
      type of organization, its jurisdiction of organization or other legal
      structure.  The Borrower shall not amend any of its articles or bylaws
      or any agreements among its stockholders and shall not alter the present size
      of
      its board of directors, which has been set by resolution of the board of
      directors at six members.

     

    9.9.           Permits.  The
      Borrower shall maintain in effect all Permits necessary to lawfully operate
      the
      Business where and how it's conducted during the term of the Loan.

    
      
        
           

        

        
          -31-

          
            

          

        

        
           

        

      

    

    10.           AFFIRMATIVE
      COVENANTS.

     

    10.1.                      Corporate
      Existence.  The Borrower shall at all times preserve and maintain
      its corporate existence, rights, franchises and privileges, and shall at all
      times continue as a going concern in the business which the Borrower is
      presently conducting.  If the Borrower does not have a state issued
      identification number and later obtains one, the Borrower shall promptly notify
      the Agent of such organizational identification number.

     

    10.2.                      Maintain
      Property.  The Borrower shall at all times maintain, preserve and
      keep its plant, properties and Equipment, including, but not limited to, any
      Collateral, in good repair, working order and condition, normal wear and tear
      excepted, and shall from time to time make all needful and proper repairs,
      renewals, replacements, and additions thereto so that at all times the
      efficiency thereof shall be fully preserved and maintained.  The
      Borrower shall permit the Agent to examine and inspect such plant, properties
      and Equipment, including, but not limited to, any Collateral, at all reasonable
      times.

     

    10.3.                      Maintain
      Insurance.  The Borrower shall at all times insure and keep
      insured with insurance companies acceptable to the Agent, all insurable property
      owned by it which is of a character usually insured by companies similarly
      situated and operating like properties, against loss or damage from fire and
      such other hazards or risks as are customarily insured against by companies
      similarly situated and operating like properties; and shall similarly insure
      employers', public and professional liability risks.  Borrower shall
      maintain such insurance policies are outlined on Exhibit "F" attached
      hereto.  Prior to the date of the funding of the Note, the Borrower
      shall deliver to the Lender a certificate setting forth in summary form the
      nature and extent of the insurance maintained by the Borrower pursuant to this
      Section 10.  All such policies of insurance must be
      satisfactory to the Agent in relation to the amount and term of the Obligations
      and type and value of the Collateral and assets of the Borrower, shall identify
      the Agent on behalf of the Lenders as sole loss payee or mortgagee and as an
      additional insured.  In the event the Borrower either fails to provide
      the Agent with evidence of the insurance coverage required by this Section
      or at
      any time hereafter shall fail to obtain or maintain any of the policies of
      insurance required above, or to pay any premium in whole or in part relating
      thereto, then the Agent, without waiving or releasing any obligation or default
      by the Borrower hereunder, may at any time (but shall be under no obligation
      to
      so act), obtain and maintain such policies of insurance and pay such premium
      and
      take any other action with respect thereto, which the Agent deems
      advisable.  This insurance coverage (i) may, but need not,
      protect the Borrower's interest in the such property, including, but not limited
      to the Collateral, and (ii) may not pay any claim made by, or against, the
      Borrower in connection with such property, including, but not limited to the
      Collateral.  The Borrower may later cancel any such insurance
      purchased by the Agent, but only after providing the Agent with evidence that
      the Borrower has obtained the insurance coverage required by this
      Section.  The costs of such insurance obtained by the Agent, through
      and including the effective date such insurance coverage is canceled or expires,
      shall be payable on demand by the Borrower to the Agent, together with interest
      at the Default Rate on such amounts until repaid and any other charges by the
      Agent in connection with the placement of such insurance.  The costs
      of such insurance, which may be greater than the cost of insurance which the
      Borrower may be able to obtain on its own, together with interest thereon at
      the
      Default Rate and any other charges by the Agent in connection with the placement
      of such insurance may be added to the total Obligations due and
      owing.

     

    10.4.                      Tax
      Liabilities.  The Borrower shall at all times pay and discharge
      all property and other taxes, assessments and governmental charges upon, and
      all
      claims (including claims for labor, materials and supplies) against the Borrower
      or any of its properties, Equipment or Inventory, before the same shall become
      delinquent and before penalties accrue thereon, unless and to the extent that
      the same are being contested in good faith by appropriate proceedings and are
      insured against or bonded over to the satisfaction of the Agent.

     

    10.5.                      Financial
      Statements.  The Borrower shall at all times maintain a standard
      and modern system of accounting, on the accrual basis of accounting and in
      all
      respects in accordance with GAAP, and shall furnish to the Agent or its
      authorized representatives such information regarding the business affairs,
      operations and financial condition of the Borrower, including, but not limited
      to:

     

    (a)         as
      soon as available, and in any event, within ninety (90) days after the close
      of
      each of its fiscal years, a copy of the annual audited, compiled financial
      statements of the Borrower, including balance sheet, statement of income and
      retained earnings, statement of cash flows for the fiscal year then ended and
      such other information (including nonfinancial information) as the Agent may
      request, in reasonable detail, prepared and certified by an independent
      certified public accountant acceptable to the Agent, containing an unqualified
      opinion;

    
      
         

      

      
        -32-

        
          

        

      

      
         

      

    

     

    (b)         as
      soon as available, and in any event, within forty-five (45) days following
      the
      end of each fiscal quarter, a copy of the financial statements of the Borrower
      regarding such fiscal quarter, including balance sheet, statement of income
      and
      retained earnings, statement of cash flows for the fiscal quarter then ended
      and
      such other information (including nonfinancial information) as the Agent may
      request, in reasonable detail, prepared and certified as accurate by the
      Borrower; and

     

    (c)         as
      soon as available, and in any event, within thirty (30) days following the
      end
      of each calendar month, a copy of the financial statements of the Borrower
      regarding such calendar month, including balance sheet, statement of income
      and
      retained earnings, statement of cash flows for the calendar month then ended
      and
      such other information (including nonfinancial information) as the Agent may
      request, in reasonable detail, prepared and certified as accurate by the
      Borrower.

     

    10.6.                      Changes
      in Accounting Principles.  No change with respect to such
      accounting principles shall be made by the Borrower without giving prior
      notification to the Agent.  The Borrower represents and warrants to
      the Agent that the financial statements delivered to the Agent at or prior
      to
      the execution and delivery of this Agreement and to be delivered at all times
      thereafter accurately reflect and will accurately reflect the financial
      condition of the Borrower.  The Agent shall have the right at all
      times during business hours to inspect the books and records of the Borrower
      and
      make extracts therefrom.  The Borrower agrees to advise the Agent
      immediately of any adverse change in the financial condition, the operations
      or
      any other status of the Borrower.

     

    10.7.                      Supplemental
      Financial Statements.  The Borrower shall immediately upon receipt
      thereof, provide to the Agent copies of interim and supplemental reports if
      any,
      submitted to the Borrower by independent accountants in connection with any
      interim audit or review of the books of the Borrower.

     

    10.8.                      Prompt
      Payment.  The Borrower shall make payments to the Agent and to all
      other third parties promptly and on or prior to the due date for any such
      obligations.

     

    10.9.                      Business.  The
      Borrower shall not conduct its business other than as the Business while the
      Loan remains outstanding.

     

    10.10.                      Notices.  The
      Borrower shall immediately advise the Agent of any violation of law by Borrower
      or by any other person affecting Borrower's ability to conduct its Business
      or
      any change in legal or regulatory status of Borrower or any of the Designated
      Stockholders which would affect Borrower's ability to conduct its
      Business.  The Borrower shall also immediately notify Agent of any
      litigation pending or threatened against it or any regulatory action by any
      Governmental Authority pending or threatened against it.  The Borrower
      shall immediately notify the Agent of any default by Borrower under the
      Transaction Documents or any other agreement to which the Borrower is a
      party.

     

    10.11.                      Covenant
      Compliance Report.  The Borrower shall, within thirty (30) days
      after the end of each month, deliver to the Agent a computation in such detail
      as the Agent shall specify, showing compliance by the Borrower with the
      financial covenants set forth in Section 11, and certain other
      information as set forth in a compliance certificate in the form attached hereto
      as Exhibit "L" certified as accurate by the Borrower.

     

    10.12.                      Field
      Audits.  The Borrower shall allow the Agent, at the Borrower's
      sole expense, to conduct an annual field examination of the Accounts and
      Inventory of the Borrower, the results of which must be satisfactory to the
      Agent in the Agent's sole and absolute discretion.

    
      
         

      

      
        -33-

        
          

        

      

      
         

      

    

     

    10.13.                      Inspections.  Without
      limiting the generality of the foregoing, upon reasonable notice the Borrower
      shall permit the Agent (or such Persons as the Agent may designate, including
      representatives of the SBA) to visit and inspect, under the Borrower's guidance,
      any of the properties of the Borrower to examine all of its Collateral, books
      of
      account, records, reports and other papers, to make copies and extracts
      therefrom and to discuss its affairs, finances and accounts with its officers
      and independent public accountants (and by this provision the Borrower authorize
      such accountants to discuss with the Agent the finances and affairs of the
      Borrower) all at such reasonable times and as often as may be reasonably
      requested.  The Borrower shall reimburse the Agent for the reasonable
      out of pocket expenses for such visit and inspection; provided, however, that
      the Borrower shall only be obligated to reimburse Agent for the costs associated
      with such inspections one (1) time within a twelve (12) month
      period.

     

    10.14.                      Other
      Reports.  The Borrower shall, within such period of time as the
      Agent may specify, deliver to the Agent such other schedules and reports as
      the
      Agent may require, including but not limited to any reporting required of the
      Agent or the Borrower under the SBIA or by any Governmental
      Authority.

     

    10.15.                      Other
      Information.  With reasonable promptness and without
      duplication of information described above, such other data and information
      as
      the Agent may reasonably request, including, without limitation, all information
      reasonably requested by the Agent in order for it to prepare and file SBA Form
      468 and SBA Form 1050 on behalf of certain of the Lenders and any other
      information reasonably requested or required by any governmental agency
      assessing jurisdiction over the Lenders.

     

    10.16.                      Collateral
      Records.  Borrower shall keep full and accurate books and records
      relating to the Collateral and shall mark such books and records to indicate
      the
      Agent's Lien in the Collateral.

     

    10.17.                      Notice
      of Proceedings.  The Borrower shall, immediately after knowledge
      thereof shall have come to the attention of any officer of the Borrower, give
      written notice to the Agent of all threatened or pending actions, suits, and
      proceedings before any court or governmental department, commission, board
      or
      other administrative agency which may have a material effect on the business,
      property or operations of the Borrower.

     

    10.18.                      Notice
      of Default.  The Borrower shall immediately after the commencement
      thereof, give notice to the Agent in writing of the occurrence of an Event
      of
      Default or of any event which, with the lapse of time, the giving of notice
      or
      both, would constitute an Event of Default hereunder (in any case, a "Notice
      of
      Default").

     

    10.19.                      SBIC
      Regulatory Provisions.

     

    (a)         Within
      75 days after the Closing and at the end of each month thereafter until all
      of
      the proceeds from the Loan hereunder have been used by the Borrower, the
      Borrower shall deliver to the Agent a written statement certified by the
      Borrower's president or chief financial officer describing in reasonable detail
      the use of the proceeds of the Loan hereunder by the Borrower.  In
      addition to any other rights granted hereunder, the Borrower shall grant the
      Agent, the Lenders and the SBA access to the Borrower's records for the purpose
      of verifying the use of such proceeds; and

     

    (b)         Promptly
      after the end of each calendar year (but in any event prior to February 28
      of
      each year), Borrower shall deliver to Agent a written assessment of the economic
      impact of the Lenders' loan to Borrower, specifying the full-time equivalent
      jobs created or retained in connection with the investment, the impact of the
      investment on the businesses of Borrower and on Taxes paid by Borrower and
      its
      employees.

    
      
         

      

      
        -34-

        
          

        

      

      
         

      

    

     

    10.20.                      Regulatory
      Compliance Cooperation.

     

    (a)         If
      the Agent determines that the Agent or either of the Lenders has a Regulatory
      Problem (as defined below) in connection with the Loan, the Borrower shall
      take
      all such actions as are reasonably requested by the Agent in order to remedy
      the
      situation.  Such actions may include, but shall not necessarily be
      limited to:

     

    (i)           entering
      into such additional agreements as are requested by a Lender or the Agent;
      and

     

    (ii)           taking
      such additional actions as are reasonably requested by the Agent in order to
      effectuate the intent of the foregoing.

     

    (b)         For
      purposes of this Agreement, a "Regulatory Problem" means any set of facts or
      circumstances wherein it has been asserted by any governmental regulatory agency
      (or the Agent believes that there is a substantial risk of such assertion)
      that
      the Agent or its Affiliates are not entitled to hold, or exercise any
      significant right with respect to, the Loan.

     

    10.21.                      Current
      Shareholdings.  The Designated Stockholders shall from time to
      time until the Loan is paid in full own at least eighty percent (80%) of the
      shares of the Borrower that they own as of the date hereof.

     

    10.22.                      Modify
      Agreement.  The Borrower will cooperate with the Agent to enter
      into any modification of any of the Transaction Documents which contain a
      manifest error.

     

    11.           FINANCIAL
      COVENANTS.

     

    11.1.                      Available
      Cash/Liquidity.  At all times the Borrower shall maintain cash on
      hand of at least One Million and 00/100 Dollars ($1,000,000.00).

     

    11.2.                      Advertising
      Budget.  The Borrower shall only expend funds on advertising in
      accordance with the budget attached hereto as Exhibit "J" unless the
      Lenders give their prior written consent otherwise.

     

    12.           EVENTS
      OF DEFAULT.

     

    The
      Borrower, without notice or demand of any kind, shall be in default under this
      Agreement upon the occurrence of any of the following events (each an "Event
      of
      Default").

     

    12.1.                      Nonpayment
      of Obligations.  Any amount due and owing on the Note or any of
      the Obligations, whether by its terms or as otherwise provided herein, is not
      paid when due.

     

    12.2.                      Misrepresentation.  Any
      oral or written warranty, representation, certificate or statement in this
      Agreement, the Transaction Documents or any other agreement with the Agent
      shall
      be false in any material respect when made or at any time.

    
      
         

      

      
        -35-

        
          

        

      

      
         

      

    

     

    12.3.                      Nonperformance.  Any
      failure to perform or default in the performance of any covenant, condition
      or
      agreement contained in this Agreement, or in the Transaction Documents or any
      other agreement with the Agent.

     

    12.4.                      Default
      under Loan Documents.  A default under any of the other Loan
      Documents, all of which covenants, conditions and agreements contained therein
      are hereby incorporated in this Agreement by express reference, shall be and
      constitute an Event of Default under this Agreement and any other of the
      Obligations.

     

    12.5.                      Default
      under Other Agreements.  Any default in the payment of principal,
      interest or any other sum for any other obligation beyond any period of grace
      provided with respect thereto or in the performance of any other term, condition
      or covenant contained in any agreement (including, but not limited to any
      capital or operating lease or any agreement in connection with the deferred
      purchase price of property) under which any such obligation is created, the
      effect of which default is to cause or permit the holder of such obligation
      (or
      the other party to such other agreement) to cause such obligation to become
      due
      prior to its stated maturity, to be an event of default under or to permit
      or to
      terminate such other agreement.  In addition any default by either
      Designated Stockholder under the Non-Compete or Lock-Up Agreements entered
      into
      in connection herewith shall constitute an Event of Default.

     

    12.6.                      Assignment
      for Benefits of Creditors.  Any Obligor makes an assignment for
      the benefit of creditors, fails to pay, or admits in writing its inability
      to
      pay its debts as they mature; or if a trustee of any substantial part of the
      assets of any Obligor is applied for or appointed.

     

    12.7.                      Bankruptcy.  Any
      proceeding involving any Obligor, is commenced by or against such Obligor under
      any bankruptcy, reorganization, arrangement, insolvency, readjustment of debt,
      dissolution or liquidation law or statute of the federal government or any
      state
      government.

     

    12.8.                      Judgments.  The
      seizure of any of the Collateral by a person other than the Agent, or any
      Lender, entry of any judgment decree, levy, attachment, garnishment or other
      process, or the filing of any Lien against the Borrower in an amount in excess
      of Twenty-five Thousand Dollars ($25,000) with respect to any single instance
      or
      One Hundred Thousand Dollars in the aggregate of all such instances
      .

     

    12.9.                      Change
      in Control.  The occurrence of a Change in Control.

     

    12.10.                      Collateral
      Impairment.  The entry of any judgment, decree, levy, attachment,
      garnishment or other process, or the filing of any Lien against, any of the
      Collateral or any collateral under a separate security agreement securing any
      of
      the Obligations and such judgment or other process shall not have been, within
      thirty (30) days from the entry thereof, (i) bonded over to the
      satisfaction of the Agent and appealed, (ii) vacated, or
      (iii) discharged, or the loss, theft, destruction, seizure or forfeiture,
      or the occurrence of any material deterioration or impairment of any of the
      Collateral or any of the collateral under any security agreement securing any
      of
      the Obligations, or any material decline or depreciation in the value or market
      price thereof (whether actual or reasonably anticipated), which causes the
      Collateral, in the sole opinion of the Agent acting in good faith, to become
      unsatisfactory as to value or character, or which causes the Agent to reasonably
      believe that it is insecure and that the likelihood for repayment of the
      Obligations is or will soon be impaired, time being of the
      essence.  The cause of such deterioration, impairment, decline or
      depreciation shall include, but is not limited to, the failure by the Borrower
      to do any act deemed reasonably necessary by the Agent to preserve and maintain
      the value and collectability of the Collateral.

    
      
         

      

      
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    12.11.                      Individual
      Unavailable.  The death or incapacity of a Designated Stockholder
      or the loss of by any such individual of a license held by any of them that
      relates to the conduct of the Borrower's Business.

     

    12.12.                      Licensing.  The
      revocation, suspension or other limitation of any license from any Governmental
      Authority relevant to the Business of the Borrower, whether held by the Borrower
      or any Designated Stockholder.

     

    12.13.                      Invalidity
      of Lien.  The occurrence of any event that has the effect of any
      Lien granted to the Agent pursuant to the terms of this Agreement becoming
      invalid.

     

    12.14.                      Material
      Adverse Event.  The occurrence of any material adverse event which
      causes a change in the financial condition of the Borrower, or which would
      have
      a material adverse effect on the business of the Borrower.

     

    12.15.                      Material
      Adverse Financial Change.  The determination by the Agent that a
      material adverse change has occurred in the financial condition of the Borrower
      from the condition set forth in the most recent financial statement of the
      Borrower furnished to the Agent, or from the financial condition of the Borrower
      most recently disclosed to the Agent in any manner.

     

    12.16.                      Subordination
      and Non-Disturbance Agreements.  The failure of the Borrower to
      obtain Subordination and Non-Disturbance agreements from each of its landlords
      in the form attached hereto as Exhibit "G" or otherwise in a form
      reasonably satisfactory to the Agent.

     

    13.           REMEDIES.

     

    13.1.                      Upon
      the occurrence of an Event of Default, the Agent on behalf of the Lenders shall
      have all rights, powers and remedies set forth in the Loan Documents, in any
      written agreement or instrument (other than this Agreement or the Loan
      Documents) relating to any of the Obligations or any security therefor, or
      as
      otherwise provided at law or in equity.  Without limiting the
      generality of the foregoing, the Agent may, at its option upon the occurrence
      of
      an Event of Default, declare all Obligations to be immediately due and payable,
      provided, however, that upon the occurrence of an Event of Default under either
      Section 12.6, "Assignment for Creditors", or
Section 12.7, "Bankruptcy" all Obligations shall be automatically
      due and payable, all without demand, notice or further action of any kind
      required on the part of the Agent.  The Borrower hereby waives any and
      all presentment, demand, notice of dishonor, protest, and all other notices
      and
      demands in connection with the enforcement of the Agent's or the Lenders' rights
      under the Loan Documents, and hereby consents to, and waives notice of release,
      with or without consideration, of any Collateral, notwithstanding anything
      contained herein or in the Loan Documents to the contrary.

     

    In
      addition to the
      foregoing:

    
      
         

      

      
        -37-

        
          

        

      

      
         

      

    

     

    13.2.                      Possession
      and Assembly of Collateral.  The Agent may, without notice, demand
      or through legal process of any kind, take possession of any or all of the
      Collateral (in addition to Collateral of which the Agent or the Lenders already
      have possession), wherever it may be found, and for that purpose may pursue
      the
      same wherever it may be found, and may enter into any of the Borrower's premises
      where any of the Collateral may be or is supposed to be, and search for, take
      possession of, remove, keep and store any of the Collateral until the same
      shall
      be sold or otherwise disposed of and the Agent shall have the right to store
      the
      same in any of the Borrower's premises without cost to the Agent or the
      Lenders.  At the Agent's request, the Borrower will, at the Borrower's
      sole expense, assemble the Collateral and make it available to the Agent at
      a
      place or places to be designated by the Agent which is reasonably convenient
      to
      the Agent and the Borrower.

     

    13.3.                      Sale
      of Collateral.  The Agent may sell any or all of the Collateral at
      public or private sale, upon such terms and conditions as the Agent may deem
      proper, and the Agent may, on behalf of the Lenders, purchase any or all of
      the
      Collateral at any such sale.  The Agent may apply the net proceeds,
      after deducting all costs, expenses, attorneys' and paralegals' fees incurred
      or
      paid at any time in the collection, protection and sale of the Collateral and
      the Obligations, to the payment of the Note and/or any of the other Obligations,
      returning the excess proceeds, if any, to the Borrower.  The Borrower
      shall remain liable for any amount remaining unpaid after such application,
      with
      interest.  Any notification of intended disposition of the Collateral
      required by law shall be conclusively deemed reasonably and properly given
      if
      given by the Agent at least five (5) calendar days before the date of such
      disposition.  The Borrower hereby confirms, approves and ratifies all
      acts and deeds of the Agent relating to the foregoing, and each part
      thereof.

     

    13.4.                      Standards
      for Exercising Remedies.  To the extent that applicable law
      imposes duties on the Agent to exercise remedies in a commercially reasonable
      manner, the Borrower acknowledges and agrees that it is not commercially
      unreasonable for the Agent (a) 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, (b) 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,
      (c) to fail to exercise collection remedies against Account Debtors or
      other Persons obligated on Collateral or to remove liens or encumbrances on
      or
      any adverse claims against Collateral, (d) to exercise collection remedies
      against Account Debtors and other Persons obligated on Collateral directly
      or
      through the use of collection agencies and other collection specialists,
      (e) to advertise dispositions of Collateral through publications or media
      of general circulation, whether or not the Collateral is of a specialized
      nature, (f) 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
      the Collateral, (g) to hire one or more professional auctioneers to assist
      in the disposition of Collateral, whether or not the collateral is of a
      specialized nature, (h) 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 capability of doing so, or that match
      buyers and sellers of assets, (i) to dispose of assets in wholesale rather
      than retail markets, (j) to disclaim disposition warranties, including,
      without limitation, any warranties of title, (k) 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 (l) 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.  The Borrower
      acknowledges that the purpose of this Section 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.  Without limitation upon the foregoing, nothing contained in
      this Section shall be construed to grant any rights to the Borrower or to impose
      any duties on the Agent that would not have been granted or imposed by this
      Agreement or by applicable law in the absence of this Section.

    
      
         

      

      
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    13.5.                      UCC
      and Offset Rights.  The Agent may exercise, from time to time any
      and all rights and remedies available to it under the UCC or under any other
      applicable law in addition to, and not in lieu of, any rights and remedies
      expressly granted in this Agreement or in any other agreements between any
      Obligor and the Agent, and may, without demand or notice of any kind,
      appropriate and apply toward the payment of such of the Obligations, whether
      matured or unmatured, including costs of collection and attorneys' and
      paralegals' fees, and in such order of application as the Agent may, from time
      to time, elect, any indebtedness of the Agent to any Obligor, however created
      or
      arising, including, but not limited to, balances, credits, deposits, accounts
      or
      moneys of such Obligor in the possession, control or custody of, or in transit
      to the Agent.  The Borrower, on behalf of itself and each Obligor,
      hereby waives the benefit of any law that would otherwise restrict or limit
      the
      Agent in the exercise of its right, which is hereby acknowledged, to appropriate
      at any time hereafter any such indebtedness owing from the Agent to any
      Obligor.

     

    13.6.                      Additional
      Remedies.  The Agent shall have the right and power
      to:

     

    (a)         instruct
      the Borrower, at its own expense, to notify any parties obligated on any of
      the
      Collateral, including, but not limited to, any Account Debtors, to make payment
      directly to the Agent of any amounts due or to become due thereunder, or the
      Agent may directly notify such obligors of the security interest of the Agent
      and the Lenders, and/or of the assignment to the Agent and Lenders of the
      Collateral and direct such obligors to make payment to the Agent of any amounts
      due or to become due with respect thereto, and thereafter, collect any such
      amounts due on the Collateral directly from such Persons obligated
      thereon;

     

    (b)         enforce
      collection of any of the Collateral, including, but not limited to, any
      Accounts, by suit or otherwise, or make any compromise or settlement with
      respect to any of the Collateral, or surrender, release or exchange all or
      any
      part thereof; or compromise, extend or renew for any period (whether or not
      longer than the original period) any indebtedness thereunder;

     

    (c)         take
      possession or control of any proceeds and products of any of the Collateral,
      including the proceeds of insurance thereon;

     

    (d)         extend,
      renew or modify for one or more periods (whether or not longer than the original
      period) the Note, any other of the Obligations, any obligation of any nature
      of
      any other obligor with respect to the Note or any of the
      Obligations;

     

    (e)         grant
      releases, compromises or indulgences with respect to the Note, any of the
      Obligations, any extension or renewal of any of the Obligations, any security
      therefor, or to any other obligor with respect to the Note or any of the
      Obligations;

     

    (f)         transfer
      the whole or any part of securities which may constitute Collateral into the
      name of the Lenders or the Agent without disclosing, if the Agent so desires,
      that such securities so transferred are subject to the security interest of
      the
      Agent and the Lenders, and any corporation, association, or any of the managers
      or trustees of any trust issuing any of said securities, or any transfer agent
      shall not be bound to inquire, in the event that the Agent or any nominee makes
      any further transfer of said securities, or any portion thereof, as to whether
      the Agent or such nominee has the right to make such further transfer, and
      shall
      not be liable for transferring the same;

    
      
         

      

      
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    (g)         vote
      the Collateral;

     

    (h)         make
      an election with respect to the Collateral under Section 1111 of the
      Bankruptcy Code or take action under Section 364 or any other section of
      the Bankruptcy Code; provided, however, that any such action of the Agent as
      set
      forth herein shall not, in any manner whatsoever, impair or affect the liability
      of the Borrower hereunder, nor prejudice, waive, nor be construed to impair,
      affect, prejudice or waive the Agent's or the Lenders' rights and remedies
      at
      law, in equity or by statute, nor release, discharge, nor be construed to
      release or discharge, the Borrower, any guarantor or other Person liable to
      the
      Agent for the Obligations; and

     

    (i)         at
      any time, and from time to time, accept additions to, releases, reductions,
      exchanges or substitution of the Collateral, without in any way altering,
      impairing, diminishing or affecting the provisions of this Agreement, the Loan
      Documents, or any of the other Obligations, or the Agent's or the Lenders'
      rights hereunder, under the Note or under any of the other
      Obligations.

     

    The
      Borrower hereby ratifies and
      confirms whatever the Agent may do with respect to the Collateral and agrees
      that the Agent shall not be liable for any error of judgment or mistakes of
      fact
      or law with respect to actions taken in connection with the
      Collateral.

     

    13.7.                      Attorney-in-Fact.  The
      Borrower hereby irrevocably makes, constitutes and appoints the Agent (and
      any
      officer of the Agent or any Person designated by the Agent for that purpose)
      as
      the Borrower's true and lawful proxy and attorney-in-fact (and agent-in-fact)
      in
      the Borrower's name, place and stead, with full power of substitution, to
      (i) take such actions as are permitted in this Agreement, (ii) execute
      such financing statements and other documents and to do such other acts as
      the
      Agent may require to perfect and preserve the Agent's security interest in,
      and
      to enforce such interests in the Collateral, and (iii) carry out any remedy
      provided for in this Agreement, including, without limitation, endorsing the
      Borrower's name to checks, drafts, instruments and other items of payment,
      and
      proceeds of the Collateral, executing change of address forms with the
      postmaster of the United States Post Office serving the address of the Borrower,
      changing the address of the Borrower to that of the Agent, opening all envelopes
      addressed to the Borrower and applying any payments contained therein to the
      Obligations.  The Borrower hereby acknowledges that the constitution
      and appointment of such proxy and attorney-in-fact are coupled with an interest
      and are irrevocable.  The Borrower hereby ratifies and confirms all
      that said attorney-in-fact may do or cause to be done by virtue of any provision
      of this Agreement.

     

    13.8.                      No
      Marshaling.  The Agent shall not be required to marshal any
      present or future collateral security (including but not limited to this
      Agreement and the Collateral) for, or other assurances of payment of, the
      Obligations or any of them or to resort to such collateral security or other
      assurances of payment in any particular order.  To the extent that it
      lawfully may do so the Borrower hereby agrees that it will not invoke any law
      relating to the marshaling of collateral which might cause delay in or impede
      the enforcement of the Agent's rights under this Agreement or under any other
      instrument creating or evidencing any of the Obligations or under which any
      of
      the Obligations is outstanding or by which any of the Obligations is secured
      or
      payment thereof is otherwise assured, and, to the extent that it lawfully may,
      the Borrower hereby irrevocably waives the benefits of all such
      laws.

     

    13.9.                      Application
      of Proceeds.  The Agent will within three (3) business days after
      receipt of cash or solvent credits from collection of items of payment, proceeds
      of Collateral or any other source, apply the whole or any part thereof against
      the Obligations secured hereby.  The Agent shall further have the
      exclusive right to determine how, when and what application of such payments
      and
      such credits shall be made on the Obligations, and such determination shall
      be
      conclusive upon the Borrower.  Any proceeds of any disposition by the
      Agent of all or any part of the Collateral may be first applied by the Agent
      to
      the payment of expenses incurred by the Agent in connection with the Collateral,
      including attorneys' fees and legal expenses as provided for in
Section 13 hereof.

    
      
         

      

      
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    13.10.                      No
      Waiver.  No Event of Default shall be waived by the Agent except
      in writing.  No failure or delay on the part of the Agent in
      exercising any right, power or remedy hereunder shall operate as a waiver of
      the
      exercise of the same or any other right at any other time; nor shall any single
      or partial exercise of any such right, power or remedy preclude any other or
      further exercise thereof or the exercise of any other right, power or remedy
      hereunder.  There shall be no obligation on the part of the Agent to
      exercise any remedy available to the Agent in any order.  The remedies
      provided for herein are cumulative and not exclusive of any remedies provided
      at
      law or in equity. The Borrower agrees that in the event that the Borrower fails
      to perform, observe or discharge any of its Obligations or liabilities under
      this Agreement or any other agreements with the Agent, no remedy of law will
      provide adequate relief to the Agent, and further agrees that the Agent shall
      be
      entitled to temporary and permanent injunctive relief in any such case without
      the necessity of proving actual damages.

     

    14.           MISCELLANEOUS.

     

    14.1.                      Obligations
      Absolute.  None of the following shall affect the Obligations of
      the Borrower to the Agent or the Lenders under this Agreement or the Agent's
      or
      the Lenders' rights with respect to the Collateral:

     

    (a)         acceptance
      or retention by the Agent of other property or any interest in property as
      security for the Obligations;

     

    (b)         release
      by the Agent of the Borrower of all or any part of the Collateral or of any
      party liable with respect to the Obligations;

     

    (c)         release,
      extension, renewal, modification or substitution by the Agent of the Note,
      or
      any note evidencing any of the Obligations; or

     

    (d)         failure
      of the Agent to resort to any other security or to pursue the Borrower or any
      other obligor liable for any of the Obligations before resorting to remedies
      against the Collateral.

     

    14.2.                      Entire
      Agreement.  This Agreement (i) is valid, binding and
      enforceable against the Borrower and the Agent and the Lenders in accordance
      with its provisions and no conditions exist as to its legal effectiveness;
      (ii) constitutes the entire agreement between the parties; and
      (iii) is the final expression of the intentions of the Borrower and the
      Agent and the Lenders.  No promises, either expressed or implied,
      exist between the Borrower and the Agent and the Lenders unless contained
      herein.  This Agreement supersedes all negotiations, representations,
      warranties, commitments, offers, contracts (of any kind or nature, whether
      oral
      or written) prior to or contemporaneous with the execution hereof.

     

    14.3.                      Amendments;
      Waivers.  No amendment, modification, termination, discharge or
      waiver of any provision of this Agreement or of the Loan Documents, or consent
      to any departure by the Borrower therefrom, shall in any event be effective
      unless the same shall be in writing and signed by the Agent and the Lenders,
      and
      then such waiver or consent shall be effective only for the specific purpose
      for
      which given.

     

    14.4.                      WAIVER
      OF DEFENSES.  THE BORROWER WAIVES EVERY PRESENT AND FUTURE
      DEFENSE, CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH THE BORROWER MAY NOW
      HAVE
      OR HEREAFTER MAY HAVE TO ANY ACTION BY THE AGENT OR THE LENDERS IN ENFORCING
      THIS AGREEMENT.  THE BORROWER WAIVES ANY IMPLIED COVENANT OF GOOD
      FAITH AND RATIFIES AND CONFIRMS WHATEVER THE AGENT MAY DO PURSUANT TO THE TERMS
      OF THIS AGREEMENT.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE
      AGENT GRANTING ANY FINANCIAL ACCOMMODATION TO THE BORROWER.

    
      
         

      

      
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    14.5.                      WAIVER
      OF JURY TRIAL.  THE AGENT, THE LENDERS AND THE BORROWER, AFTER
      CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, EACH
      KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, THE RIGHT TO TRIAL
      BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING BASED HEREON, OR ARISING OUT OF,
      UNDER OR IN CONNECTION WITH THIS AGREEMENT, THE NOTE OR ANY OF THE OTHER
      OBLIGATIONS, THE COLLATERAL, OR ANY OTHER AGREEMENT EXECUTED OR CONTEMPLATED
      TO
      BE EXECUTED IN CONJUNCTION WITH THIS AGREEMENT, OR ANY COURSE OF CONDUCT OR
      COURSE OF DEALING IN WHICH THE AGENT AND THE LENDERS, ON ONE HAND, AND THE
      BORROWER, ON OTHER HAND, ARE ADVERSE PARTIES. THIS PROVISION IS A MATERIAL
      INDUCEMENT FOR THE LENDERS GRANTING ANY FINANCIAL ACCOMMODATION TO THE
      BORROWER.

     

    14.6.                      LITIGATION.  TO
      INDUCE THE LENDERS TO MAKE THE LOAN, THE BORROWER IRREVOCABLY AGREES THAT ALL
      ACTIONS ARISING, DIRECTLY OR INDIRECTLY, AS A RESULT OR CONSEQUENCE OF THIS
      AGREEMENT, THE NOTE, ANY OTHER AGREEMENT WITH THE AGENT OR THE LENDERS OR THE
      COLLATERAL, SHALL BE INSTITUTED AND LITIGATED ONLY IN COURTS HAVING THEIR SITUS
      IN THE CITY OF CHICAGO, ILLINOIS.  THE BORROWER HEREBY CONSENTS TO THE
      EXCLUSIVE JURISDICTION AND VENUE OF ANY STATE OR FEDERAL COURT HAVING IT'S
      SITUS
      IN SAID CITY, AND WAIVES ANY OBJECTION BASED ON FORUM NON
      CONVENIENS.  THE BORROWER HEREBY WAIVES PERSONAL SERVICE OF ANY AND
      ALL PROCESS AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY
      CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO THE BORROWER AS SET FORTH
      HEREIN IN THE MANNER PROVIDED BY APPLICABLE STATUTE, LAW, RULE OF COURT OR
      OTHERWISE.

     

    14.7.                      Assignability.

     

    (a)         The
      Borrower may not sell or assign this Agreement, or any other agreement with
      the
      Agent or the Lenders or any portion thereof; either voluntarily or by operation
      of law, without the prior written consent of the Agent.

     

    (b)         Each
      Lender may, with the prior written consent of Agent, and with the prior written
      consent of the Company which shall be delivered promptly and not unreasonably
      withheld, assign all or less than all of its rights and obligations under this
      Agreement to one or more Eligible Transferees (but not including for this
      purpose any assignments in the form of a participation), each of which assignees
      shall become a party to this Agreement as a Lender by execution of an Assignment
      and Acceptance; provided that, such transfer or assignment will not be effective
      until recorded by Agent on the Register (defined below).

     

    (c)         Agent
      shall maintain a register of the names and addresses of Lenders, their
      Commitments and the principal amount of their portion of the Loan (the
      "Register").  Agent shall also maintain a copy of each Assignment and
      Acceptance delivered to and accepted by it and shall modify the Register to
      give
      effect to each Assignment and Acceptance.  The entries in the Register
      shall be conclusive and binding for all purposes, absent manifest error, and
      the
      Borrower, Agent and Lenders may treat each Person whose name is recorded in
      the
      Register as a Lender hereunder for all purposes of this
      Agreement.  The Register shall be available for inspection by the
      Borrower and any Lender at any reasonable time and from time to time upon
      reasonable prior notice.

     

    (d)         Upon
      such execution, delivery, acceptance and recording, from and after the effective
      date specified in each Assignment and Acceptance,  the assignee
      thereunder shall be a party hereto and to the other Loan Documents and, to
      the
      extent that rights and obligations hereunder have been assigned to it pursuant
      to such Assignment and Acceptance, have the rights and obligations of a Lender
      hereunder and thereunder and  the assigning Lender shall, to the
      extent that rights and obligations hereunder have been assigned by it pursuant
      to such Assignment and Acceptance, relinquish its rights and be released from
      its obligations under this Agreement.

    
      
         

      

      
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    (e)         By
      execution and delivery of an Assignment and Acceptance, the assignor and
      assignee thereunder confirm to and agree with each other and the other parties
      hereto as follows:  (i) other than as provided in such Assignment and
      Acceptance, the assigning Lender makes no representation or warranty and assumes
      no responsibility with respect to any statements, warranties or representations
      made in or in connection with this Agreement or any of the other Loan Documents
      or the execution, legality, enforceability, genuineness, sufficiency or value
      of
      this Agreement or any of the other Loan Documents furnished pursuant hereto,
      (ii) the assigning Lender makes no representation or warranty and assumes no
      responsibility with respect to the financial condition of the Borrower or the
      performance or observance by the Borrower of any of the Obligations; (iii)
      such
      assignee confirms that it has received a copy of this Agreement and the other
      Loan Documents, together with such other documents and information it has deemed
      appropriate to make its own credit analysis and decision to enter into such
      Assignment and Acceptance, (iv) such assignee will, independently and without
      reliance upon the assigning Lender, Agent and based on such documents and
      information as it shall deem appropriate at the time, continue to make its
      own
      credit decisions in taking or not taking action under this Agreement and the
      other Loan Documents, (v) such assignee appoints and authorizes Agent to take
      such action as agent on its behalf and to exercise such powers under this
      Agreement and the other Loan Documents as are delegated to Agent by the terms
      hereof and thereof, together with such powers as are reasonably incidental
      thereto, and (vi) such assignee agrees that it will perform in accordance with
      their terms all of the obligations which by the terms of this Agreement and
      the
      other Loan Documents are required to be performed by it as a
      Lender.  Agent and Lenders, subject to delivery to the Company of a
      confidentiality and non-disclosure agreement executed by the receiving party
      in
      a form reasonably satisfactory to the Company, may furnish any information
      concerning the Borrower in the possession of Agent or any Lender from time
      to
      time to assignees and Participants.

     

    (f)         At
      its sole cost and expense, each Lender may sell participations to one or more
      banks or other entities in or to all or a portion of its rights and obligations
      under this Agreement and the other Loan Documents (including, without
      limitation, all or a portion of its Commitments and the portion of the Loan
      owing to it without the consent of Agent or the other Lenders); provided that,
      (i) such Lender's obligations under this Agreement (including, without
      limitation, its Commitment hereunder) and the other Loan Documents shall remain
      unchanged, (ii) such Lender shall remain solely responsible to the other parties
      hereto for the performance of such obligations, and the Borrower, the other
      Lenders and the Agent shall continue to deal solely and directly with such
      Lender in connection with such Lender's rights and obligations under this
      Agreement and the other Loan Documents, and (iii) the Participant shall not
      have
      any rights under this Agreement or any of the other Loan Documents (the
      Participant's rights against such Lender in respect of such participation to
      be
      those set forth in the agreement executed by such Lender in favor of the
      Participant relating thereto) and all amounts payable by the Borrower hereunder
      shall be determined as if such Lender had not sold such
      participation.

     

    (g)         Nothing
      in this Agreement shall prevent or prohibit any Lender from pledging its portion
      of the Loan hereunder to a Federal Reserve Bank in support of borrowings made
      by
      such Lenders from such Federal Reserve Bank; provided that, no such pledge
      shall
      release such Lender from any of its obligations hereunder or substitute any
      such
      pledgee for such Lender as a party hereto.

     

    (h)         The
      Borrower shall assist Agent or any Lender permitted to sell assignments or
      participations under this Section 14.7 in whatever manner reasonably
      necessary in order to enable or effect any such assignment or participation,
      including (but not limited to) the execution and delivery of any and all
      agreements, notes and other documents and instruments as shall be requested
      and
      the delivery of informational materials, appraisals or other documents for,
      and
      the participation of relevant management in meetings and conference calls with,
      potential Lenders or Participants. The Borrower shall certify the correctness,
      completeness and accuracy, in all material respects, of all descriptions of
      the
      Borrower and their affairs provided, prepared or reviewed by the Borrower that
      are contained in any selling materials and all other information provided by
      it
      and included in such materials.  The Borrower shall have no liability
      for the costs and expenses related to any assignment or participation by a
      Lender other than the Agent.

    
      
        
           

        

        
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    14.8.                      Confidentiality.  The
      Borrower and the Agent hereby agree and acknowledge that any and all information
      relating to the Borrower which is (i) furnished by the Borrower to the
      Agent or the Lenders, and (ii) non-public, confidential or proprietary in
      nature, shall be kept confidential by them in accordance with applicable law,
      provided, however, that such information and other credit information relating
      to the Borrower may be distributed by the Agent and the Lenders to their
      affiliates, to its directors, officers, employees, attorneys, affiliates,
      auditors and regulators, and upon the order of a court or other governmental
      agency having jurisdiction over the Agent or the Lenders, to any other
      party.  The Borrower, the Agent and the Lenders further agree that
      this provision shall survive the termination of this Agreement.

     

    14.9.                      Binding
      Effect; Successors.  This Agreement shall become effective upon
      execution by the Borrower, the Agent and the Lenders.  If this
      Agreement is not dated or contains any blanks when executed by the Borrower,
      the
      Agent is hereby authorized, without notice to the Borrower, to date this
      Agreement as of the date when it was executed by the Borrower, and to complete
      any such blanks according to the terms upon which this Agreement is
      executed.  This Agreement shall be binding upon the Agent, the Lenders
      and the Borrower and their respective legal representatives and
      successors.  All references herein to the Borrower shall be deemed to
      include any successors, whether immediate or remote.  In the case of a
      joint venture or partnership, the term "Borrower" shall be deemed to include
      all
      joint venturers or partners thereof, who shall be jointly and severally liable
      hereunder.

     

    14.10.                      Governing
      Law.  This Agreement, the Loan Documents and the Note shall be
      delivered and accepted in and shall be deemed to be contracts made under and
      governed by the internal laws of the State of Illinois (but giving effect to
      federal laws applicable to national banks), and for all purposes shall be
      construed in accordance with the laws of such State, without giving effect
      to
      the choice of law provisions of such State.

     

    14.11.                      Enforceability.  Wherever
      possible, each provision of this Agreement shall be interpreted in such manner
      as to be effective and valid under applicable law, but if any provision of
      this
      Agreement shall be prohibited by, unenforceable or invalid under any
      jurisdiction, such provision shall as to such jurisdiction, be severable and
      be
      ineffective to the extent of such prohibition or invalidity, without
      invalidating the remaining provisions of this Agreement or affecting the
      validity or enforceability of such provision in any other
      jurisdiction.

     

    14.12.                      Survival
      of Borrower Representations.  All covenants, agreements,
      representations and warranties made by the Borrower herein shall,
      notwithstanding any investigation by the Agent or the Lenders, be deemed
      material and relied upon by the Agent or the Lenders and shall survive the
      making and execution of this Agreement and the Loan Documents and the issuance
      of the Note, and shall be deemed to be continuing representations and warranties
      until such time as the Borrower has fulfilled all of its Obligations to the
      Agent and the Lenders, and the Lenders have been paid in full.  The
      Lenders, in extending financial accommodations to the Borrower, is expressly
      acting and relying on the aforesaid representations and warranties.

     

    14.13.                      Extensions
      of Lenders' Commitment and Note.  This Agreement shall secure and
      govern the terms of any extensions or renewals of the Lenders' commitment
      hereunder and the Note pursuant to the execution of any modification, extension
      or renewal note executed by the Borrower and accepted by the Agent and the
      Lenders in their sole and absolute discretion in substitution for the
      Note.

     

    14.14.                      Time
      of Essence.  Time is of the essence in making payments of all
      amounts due the Agent and the Lenders under this Agreement and in the
      performance and observance by the Borrower of each covenant, agreement,
      provision and term of this Agreement.

     

    14.15.                      Counterparts.  This
      Agreement may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which when so executed and delivered
      shall be deemed to be an original and all of which taken together shall
      constitute one and the same instrument.

    
      
         

      

      
        -44-

        
          

        

      

      
         

      

    

     

    14.16.                      Facsimile
      Signatures.  The Agent is hereby authorized to rely upon and
      accept as an original any Loan Documents or other communication which is sent
      to
      the Agent by facsimile, telegraphic or other electronic transmission (each,
      a
      "Communication") which the Agent in good faith believes has been signed by
      Borrower and has been delivered to the Agent by a properly authorized
      representative of the Borrower, whether or not that is in fact the
      case.  Notwithstanding the foregoing, the Agent shall not be obligated
      to accept any such Communication as an original and may in any instance require
      that an original document be submitted to the Agent in lieu of, or in addition
      to, any such Communication.

     

    14.17.                      Notices.  Except
      as otherwise provided herein, the Borrower waives all notices and demands in
      connection with the enforcement of the Agent's rights hereunder.  All
      notices, requests, demands and other communications provided for hereunder
      shall
      be in writing, sent by certified or registered mail, postage prepaid, by
      facsimile, telegram or delivered in person, and addressed as
      follows:

     

    
      	
               

            	
              If
                to the Borrower:

            	
              MEDirect
                Latino Inc.

            

    

     

    
      	
               

            	
              2102
                West Atlantic Boulevard

            

    

     

    
      	
               

            	
              Suite
                101

            

    

     

    
      	
               

            	
              Pompano
                Beach,
                Florida   33069

            

    

     

    
      	
               

            	
              Attention:  Raymond
                J. Talarico

            

    

     

    
      	
               

            	
              If
                to the Agent:

            	
              Granite
                Creek Partners, L.L.C.

            

    

     

    
      	
               

            	
              222
                West Adams, Suite 1980

            

    

     

    
      	
               

            	
              Chicago,
                Illinois 60611

            

    

     

    
      	
               

            	
              Attention:  Mark
                Radzik

            

    

     

    
      	
               

            	
              If
                to the Fund:

            	
              Granite
                Creek FlexCap I, L.P.

            

    

     

    
      	
               

            	
              222
                West Adams, Suite 1980

            

    

     

    
      	
               

            	
              Chicago,
                Illinois 60611

            

    

     

    
      	
               

            	
              Attention:  Mark
                Radzik

            

    

    
      
         

      

      
        -45-

        
          

        

      

      
         

      

    

     

    
      	
               

            	
              If
                to St. Cloud:

            	
              10866
                Wilshire Boulevard

            

    

     

    
      	
               

            	
              Suite
                1450

            

    

     

    
      	
               

            	
              Los
                Angeles, California 90024

            

    

     

    
      	
               

            	
              Attention:  Robert
                Lautz

            

    

     

    
      	
               

            	
              If
                to Bedford Oak:

            	
              100
                S. Bedford Road

            

    

    
      	
               

            	
              Mt.
                Kisco, New York 10549

            

    

    
      	
               

            	
              Fax:
                914.242.5798

            

    

    
      	
               

            	
              Attention:
                Harvey P. Eisen

            

    

    

    
      	
               

            	
              If
                to the Tarters:

            	
              210
                East 39th St.

            

    

    
      	
               

            	
              New
                York, New York 10016

            

    

    
      	
               

            	
              Fax:
                212.679.3816

            

    

    

    
      	
               

            	
              If
                to Hungry Lizard

            	
              c/o
                John McKay

            

    

    
      	
               

            	 	
              440
                South 3rd Street

            

    

    
      	
               

            	
               Suite
                205

            

    

    
      	
               

            	
               St.
                Charles, IL 60174

            

    

    

    
      	
               

            	
              If
                to KKP

            	
              1603
                Orrington Avenue

            

    

    
      	
               

            	
              Suite
                1880

            

    

    
      	
               

            	
               Evanston,
                IL 60201

            

    

    

     

    or,
      as to
      each party, at such other address as shall be designated by such party in a
      written notice to each other party complying as to delivery with the terms
      of
      this subsection.  No notice to or demand on the Borrower in any case
      shall entitle the Borrower to any other or further notice or demand in similar
      or other circumstances.

    
      
         

      

      
        -46-

        
          

        

      

      
         

      

    

     

    14.18.                      Indemnification.  The
      Borrower agrees to defend (with counsel satisfactory to the Agent), protect,
      indemnify and hold harmless each Indemnified Party from and against any and
      all
      liabilities, obligations, losses, damages, penalties, actions, judgments, suits,
      claims, costs, expenses and distributions of any kind or nature (including,
      without limitation, the disbursements and the reasonable fees of counsel for
      each Indemnified Party thereto, which may be imposed on, incurred by, or
      asserted against, any Indemnified Party (whether direct, indirect or
      consequential and whether based on any federal, state or local laws or
      regulations, including, without limitation, securities, Environmental Laws
      and
      commercial laws and regulations, under common law or in equity, or based on
      contract or otherwise) in any manner relating to or arising out of this
      Agreement or any of the Loan Documents, or any act, event or transaction related
      or attendant thereto, the preparation, execution and delivery of this Agreement
      and the Loan Documents, including, but not limited to, the making or issuance
      and management of the Loan, the use or intended use of the proceeds of the
      Loan,
      the enforcement of the Agent's or Lenders' rights and remedies under this
      Agreement, the Loan Documents, the Note, any other instruments and documents
      delivered hereunder, or under any other agreement between the Borrower and
      the
      Agent or the Lenders; provided, however, that the Borrower shall not have any
      obligations hereunder to any Indemnified Party with respect to matters caused
      by
      or resulting from the willful misconduct or gross negligence of such Indemnified
      Party.  To the extent that the undertaking to indemnify set forth in
      the preceding sentence may be unenforceable because it violates any law or
      public policy, the Borrower shall satisfy such undertaking to the maximum extent
      permitted by applicable law.  Any liability, obligation, loss, damage,
      penalty, cost or expense covered by this indemnity shall be paid to each
      Indemnified Party on demand, and, failing prompt payment, shall, together with
      interest thereon at the Default Rate from the date incurred by each Indemnified
      Party until paid by the Borrower, be added to the Obligations of the Borrower
      and be secured by the Collateral.  The provisions of this
Section 14.18 shall survive the satisfaction and payment of the
      other Obligations and the termination of this Agreement.

     

    14.19.                      Repayment
      in Full.  Upon repayment in full of the Lenders the Agent shall,
      upon receipt of written notice from the Borrower, promptly file or cause to
      be
      filed such documents as are necessary to release any and all liens filed against
      the Borrower or its assets in favor of the Agent and/or the Lenders in
      connection with the Loan.

     

    

     

    [Signature
      Page Follows]

    
      
         

      

      
        -47-

        
          

        

      

      
         

      

    

     

               IN
      WITNESS WHEREOF, the Borrower, the Agent and the Lenders have executed this
      Loan
      and Security Agreement as of the date first above written.

     

    MEDIRECT
      LATINO INC., a Florida corporation

    ATTEST:

    

    

    By:                                                      By:                                                                           

    Name:                                                      Name:                                                                           

    Title:                                                      Title:                                                                           

    

    WITH
      RESPECT TO SECTIONS
      10.21,12.12

    ONLY:

    

    __________________________________________

    Raymond
      J. Talarico

    

    

    __________________________________________

    Debra
      L. Towsley

    

    

    Agreed
      and accepted:

    

    GRANITE
      CREEK FLEXCAP I, L.P., a Delaware limited partnership

    

    By:
      Granite Creek GP Flexcap I, LLC,

    a
      Delaware limited liability company

    

    

    By:                                                                           

    Name:                                                                           

    Title:                                                                           

    

    Total
      commitment:  $4,000,000

    Pro
      Rata
      Share 48.485%

    
      
         

      

      
        -48-

        
          

        

      

      
         

      

    

    

    ST.
      CLOUD
      CAPITAL PARTNERS, LP, a Delaware limited partnership

    

    By:
      SCGP
      LLC,

    a
      Delaware limited liability company

    

    

    By:                                                                           

    Name:
      Marshall S. Geller

    Title:
      Senior Managing Member

    

    Total
      commitment:  $2,300,000

    Pro
      Rata
      Share:  27.879%

    

    

    BEDFORD
      OAK PARTNERS, LP,

    a
      Delaware limited partnership

    

    By:  ____________________

    a
      ___________________

    

    By:

    Name:  Harvey
      P. Eisen

    Title:

    

    Total
      commitment:  $500,000

    Pro
      Rata
      Share:  6.061%

    

      
        
           

        

        
          -49-

          
            

          

        

        
           

        

      

    

    

    FRED
      B.
      AND LOIS TARTER,

    Individual
      residents of the State of New York

    

    

    By:  __________________________

    Name:  Fred
      B. Tarter

    

    By:   __________________________

    Name:
      Lois Tarter

    

    Total
      commitment:  $200,000

    Pro
      Rata
      Share:  2.424%

    HUNGRY
      LIZARD, LLC,

    an
      Ohio
      limited liability company

    

    By:  ____________________

    a
      _____________

    

    By:_________________________

    Name:_______________________

    Title:________________________

    

    Total
      commitment:  $1,000,000

    Pro
      Rata
      Share:  12.121%

    

    KKP
      INVESTMENTS LLC,

    a
      Delaware limited liability company

    

    

    ________________________________

    Kenneth
      Lehman, Managing Member

    

    Total
      commitment $250,000

    Pro
      Rata
      Share:  3.030%

    
      
        
           

        

        
          -50-Unassociated Document

    AMENDMENT
      NO. 1 TO THE

    LOAN
      AND SECURITY AGREEMENT

    

    

    This
      Amendment No. 1 ("Amendment No.
      1") to that certain Loan and Security Agreement dated December 8, 2006 (the
      "Original Agreement") by and among MEDirect Latino Inc. (the "Borrower"),
      Granite Creek FlexCap I, L.P., St. Cloud Capital Partners, L.P., Bedford Oak
      Partners, L.P., Fred B. and Lois Tarter, Hungry Lizard, LLC and KKP Investments
      II LLC (collectively, the "Lenders") and Granite Creek Partners, L.L.C.
      ("Agent") is entered into as of this ___ day of April 2007 by and among the
      Borrower, the Lender and the Agent.

    

    WHEREAS,
      the Borrower, the Lenders and
      the Agent entered into the Original Agreement on December 8, 2006 in connection
      with the First Draw;

    

    WHEREAS,
      the Borrower has pursued its
      business plan substantially as agreed upon as of December 8, 2006;

    

    WHEREAS,
      notwithstanding the foregoing,
      the Borrower has not fulfilled all of its obligations under the Original
      Agreement and the other Transaction Documents;

    

    WHEREAS,
      the Lenders have agreed that
      an advance on the Second Draw shall be made to the Borrower on the terms set
      forth herein; and

    

    NOW,
      THEREFORE, in consideration of the
      mutual agreements hereinafter set forth, the Borrower, the Agent and the Lenders
      hereby agree as follows:

    

    1.           Nature
      of Amendment; Use of Terms.  This Amendment No. 1 amends the
      Original Agreement only as specifically set forth herein.  Any terms
      of the Original Agreement not specifically amended herein shall remain in full
      force and effect.  Unless specifically addressed herein, this
      Amendment No. 1 shall not be understood or construed as a consent or waiver
      by
      any or all of the Lenders or the Agent of any covenant or default under the
      Original Agreement and shall not be understood or construed as a waiver,
      compromise or limitation on the Lenders' or any of the Lenders or the Agent's
      ability to pursue their respective or collective remedies under the
      Agreement.  All capitalized terms used but not otherwise defined
      herein shall have the meaning ascribed to such terms in the Original
      Agreement.  The Original Agreement and this Amendment No. 1 shall
      hereafter collectively be referred to as the Agreement and all references in
      the
      Original Agreement to the "Agreement" shall hereafter refer to the Original
      Agreement and this Amendment No. 1.

    

    2.           Extension
      of Credit.  One of the Lenders, the Fund, with the acknowledgement
      and consent of the others, has agreed to advance as of the date hereof, Two
      Hundred Fifty Thousand Dollars ($250,000) (the "Advance Funding") to the
      Borrower on the terms set forth in this Amendment No. 1.  This advance
      by the Fund shall be an advance of the Fund's Pro Rata Share of the Second
      or
      Third Draw, whichever is made first, which Pro Rata Share in each case is Eight
      Hundred Forty Eight Thousand Four Hundred Eighty Seven and 50/100 Dollars
      ($848,487.50) and as such shall reduce the Fund's obligation to fund the Second
      or Third Draw, whichever is made first, if the conditions precedent to fund
      either the Second or Third Draw are timely fulfilled by the Borrower as set
      forth in the Original Agreement as modified hereby.  As such, this
      Amendment No. 1 modifies Sections 2.1(a) (as to the number of principal advances
      only) and 3.5 (as to the Lenders' agreement to make the Loans and receive
      repayment thereof pro rata) of the Original Agreement.

    

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    3.  Conditions
      of
      Borrowing.  The following are the conditions of funding the
      Advance Funding are as follows:

    

    (a)           Execution
      of this Agreement by the Borrower, the Lenders and the Agent;

    

    (b)           Delivery
      to the Agent of updated projections; and

    

    (c)           Resolutions
      of the board of directors of the Borrower authorizing the transactions
      contemplated hereby.

    

    4.           Subsequent
      Events.  The following shall occur:

    

    (a)           Within
      thirty (30) days of the date hereof, all of the conditions for the Second Draw
      and/or the Third Draw shall have been satisfied by the Borrower to the Lenders'
      and Agent's satisfaction.

    

    (b)           Within
      thirty (30) days of the date hereof, and provided that the subsequent event
      set
      forth in Section 4(a) above shall have been timely met, all of the conditions
      to
      the second to occur of the Second Draw or the Third Draw, whichever remains
      unfunded.

    

    If
      either
      or both of the foregoing do not occur each shall constitute an additional Event
      of Default under the Agreement.

    

    [THE
      REST
      OF THIS PAGE INTENTIONALLY LEFT BLANK]

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the Borrower, the
      Agent and the Lenders have executed this Amendment No. 1 as of the date first
      above written.

    

    

    MEDIRECT
      LATINO INC., a Florida corporation

    ATTEST:

    

    

    By:                                                      By:                                                                           

    Name:                                                 Name:                                                                           

    Title:                                                   Title:                                                                           

    

    

    Agreed
      and accepted by those Lenders that have signed below and in the aggregate that
      comprise not less than the Required Lenders (not less than 70% of the Pro Rata
      Shares):

    

    GRANITE
      CREEK FLEXCAP I, L.P., a Delaware limited partnership

    

    By:
      Granite Creek GP Flexcap I, LLC,

    a
      Delaware limited liability company

    

    

    By:                                                                           

    Name:                                                                           

    Title:                                                                           

    

    Pro
      Rata
      Share 48.485%

    

    

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    ST.
      CLOUD
      CAPITAL PARTNERS, LP, a Delaware limited partnership

    

    By:
      SCGP
      LLC,

    a
      Delaware limited liability company

    

    

    By:                                                                           

    Name:
      Marshall S. Geller

    Title:
      Senior Managing Member

    

    Pro
      Rata
      Share:  27.879%

    

    BEDFORD
      OAK PARTNERS, LP,

    a
      Delaware limited partnership

    

    By:  ____________________

    a
      ___________________

    

    By:

    Name:  Harvey
      P. Eisen

    Title:

    

    Pro
      Rata
      Share:  6.061%

    

    FRED
      B.
      AND LOIS TARTER,

    Individual
      residents of the State of New York

    

    

    By:  __________________________

    Name:  Fred
      B. Tarter

    

    By:   __________________________

    Name:
      Lois Tarter

    

    Pro
      Rata
      Share:  2.424%

    

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    HUNGRY
      LIZARD, LLC,

    an
      Ohio
      limited liability company

    

    By:  ____________________

    a
      _____________

    

    By:_________________________

    Name:_______________________

    Title:________________________

    

    Pro
      Rata
      Share:  12.121%

    

    KKP
      INVESTMENTS LLC,

    a
      Delaware limited liability company

    

    

    ________________________________

    Kenneth
      Lehman, Managing Member

    

    Pro
      Rata
      Share:  3.030%

    

    

    

    

    

    

    

    
      
         

      

      
        -5-

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