Document:

THIS
      WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT
      HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY
      STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE
      OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER
      SAID
      ACT AND ANY APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO PROLINK HOLDINGS CORP. THAT SUCH REGISTRATION IS NOT
      REQUIRED.

     

    Right
      to
      Purchase Shares of Common Stock of

    ProLink
      Holdings Corp.

    (subject
      to adjustment as provided herein)

     

    COMMON
      STOCK PURCHASE WARRANT

     

    

    
      	
              No.
                1

            	
              Issue
                Date: August 17, 2007

            

    

     

    PROLINK
      HOLDINGS CORP., a corporation organized under the laws of the State of Delaware
      (the “Company”), hereby certifies that, for value received, CALLIOPE CAPITAL
      CORPORATION, or assigns (the “Holder”), is entitled, subject to the terms set
      forth below, to purchase from the Company (as defined herein) from and after
      the
      Issue Date of this Warrant and at any time or from time to time before 5:00
      p.m., New York time, through the close of business August 17, 2012 (the
“Expiration Date”), up to the Specified Number of Common Stock (as defined
      below), $0.0001 par value per share, at the applicable Exercise Price per share
      (as defined below). The number and character of such shares of Common Stock
      and
      the applicable Exercise Price per share are subject to adjustment as provided
      herein.

     

    As
      used
      herein the following terms, unless the context otherwise requires, have the
      following respective meanings:

     

    (a) “Common
      Stock” means (i) the Company’s Common Stock, par value $0.0001 per share; and
      (ii) any other securities into which or for which any of the securities
      described in the preceding clause (i) may be converted or exchanged pursuant
      to
      a plan of recapitalization, reorganization, merger, sale of assets or
      otherwise.

     

    (b) “Company”
      means ProLink Holdings Corp. and any person or entity which shall succeed,
      or
      assume the obligations of, ProLink Holdings Corp. hereunder.

     

    (c) “Exercise
      Price” means:

     

    (i) a
      price
      of $1.40 for the first one-third of the Specified Number of Common Stock
      acquired hereunder;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (ii) a
      price
      of $1.50 for the next one-third of the Specified Number of Common Stock acquired
      hereunder; and

     

    (iii) a
      price
      of $1.60 for any additional shares of Common Stock acquired
      hereunder.

     

    (d) “Other
      Securities” means any stock (other than Common Stock) and other securities of
      the Company or any other person (corporate or otherwise) which the holder of
      the
      Warrant at any time shall be entitled to receive, or shall have received, on
      the
      exercise of the Warrant, in lieu of or in addition to Common Stock, or which
      at
      any time shall be issuable or shall have been issued in exchange for or in
      replacement of Common Stock or Other Securities pursuant to Section 4 or
      otherwise.

     

    (e) “Registration
      Rights Agreement” means that certain Registration Rights Agreement dated as of
      the date hereof by and between the Company and the Holder, as the same may
      be
      amended, modified and/or supplemented from time to time.

     

    (f) “Security
      Agreement” means that certain Security Agreement dated as of the date hereof
      among the Company, certain of its subsidiaries and the Holder, as the same
      may
      be amended, modified and/or supplemented from time to time.

     

    (g) “Specified
      Number of Common Stock” means 3,567,568 shares of Common Stock; provided,
      however,
      in the
      event (i) the Obligations (as defined in the Security Agreement) shall have
      been
      indefeasibly paid in full on or prior to August 17, 2008, “Specified Number of
      Common Stock” shall mean 3,081,081 shares of Common Stock and (ii) the
      Registration Statement (as defined in the Registration Rights Agreement) is
      not
      declared effective by the Securities and Exchange Commission on or prior to
      August 17, 2008, “Specified Number of Common Stock” shall mean 4,054,054 shares
      of Common Stock.

     

    1. Exercise
      of Warrant.

     

    1.1. Number
      of Shares Issuable upon Exercise.
      From
      and after the date hereof through and including the Expiration Date, the Holder
      shall be entitled to receive, upon exercise of this Warrant in whole or in
      part,
      by delivery of an original or fax copy of an exercise notice in the form
      attached hereto as Exhibit A (the “Exercise Notice”), fully paid and
      nonassessable shares of Common Stock of the Company up to the Specified Number
      of Common Stock, subject to adjustment pursuant to Section 4
      hereof.

     

    1.2. Fair
      Market Value.
      For
      purposes hereof, the “Fair Market Value” of a share of Common Stock as of a
      particular date (the “Determination Date”) shall mean:

     

    (a) If
      the
      Company’s Common Stock is traded on the American Stock Exchange or another
      national exchange or is quoted on the National or Capital Market of The Nasdaq
      Stock Market, Inc. (“Nasdaq”), then the closing or last sale price,
      respectively, reported for the last business day immediately preceding the
      Determination Date.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (b) If
      the
      Company’s Common Stock is not traded on the American Stock Exchange or another
      national exchange or on the Nasdaq but is traded on the NASD Over The Counter
      Bulletin Board, then the mean of the average of the closing bid and asked prices
      reported for the last business day immediately preceding the Determination
      Date.

     

    (c) Except
      as
      provided in clause (d) below, if the Company’s Common Stock is not publicly
      traded, then as the Holder and the Company agree or in the absence of agreement
      by arbitration in accordance with the rules then in effect of the American
      Arbitration Association, before a single arbitrator to be chosen from a panel
      of
      persons qualified by education and training to pass on the matter to be
      decided.

     

    (d) If
      the
      Determination Date is the date of a liquidation, dissolution or winding up,
      or
      any event deemed to be a liquidation, dissolution or winding up pursuant to
      the
      Company’s charter, then all amounts to be payable per share to holders of the
      Common Stock pursuant to the charter in the event of such liquidation,
      dissolution or winding up, plus all other amounts to be payable per share in
      respect of the Common Stock in liquidation under the charter, assuming for
      the
      purposes of this clause (d) that all of the shares of Common Stock then issuable
      upon exercise of the Warrant are outstanding at the Determination
      Date.

     

    1.3. Company
      Acknowledgment.
      The
      Company will, at the time of the exercise of this Warrant, upon the request
      of
      the holder hereof acknowledge in writing its continuing obligation to afford
      to
      such holder any rights to which such holder shall continue to be entitled after
      such exercise in accordance with the provisions of this Warrant. If the holder
      shall fail to make any such request, such failure shall not affect the
      continuing obligation of the Company to afford to such holder any such
      rights.

     

    1.4. Trustee
      for Warrant Holders.
      In the
      event that a bank or trust company shall have been appointed as trustee for
      the
      holders of this Warrant pursuant to Subsection 3.2, such bank or trust company
      shall have all the powers and duties of a warrant agent (as hereinafter
      described) and shall accept, in its own name for the account of the Company
      or
      such successor person as may be entitled thereto, all amounts otherwise payable
      to the Company or such successor, as the case may be, on exercise of this
      Warrant pursuant to this Section 1.

     

    2. Procedure
      for Exercise.

     

    2.1. Delivery
      of Stock Certificates, Etc., on Exercise.
      The
      Company agrees that the shares of Common Stock purchased upon exercise of this
      Warrant shall be deemed to be issued to the Holder as the record owner of such
      shares as of the close of business on the date on which this Warrant shall
      have
      been surrendered and payment made for such shares in accordance herewith. As
      soon as practicable after the exercise of this Warrant in full or in part,
      and
      in any event within three (3) business days thereafter, the Company at its
      expense (including the payment by it of any applicable issue taxes) will cause
      to be issued in the name of and delivered to the Holder, or as such Holder
      (upon
      payment by such Holder of any applicable transfer taxes) may direct in
      compliance with applicable securities laws, a certificate or certificates for
      the number of duly and validly issued, fully paid and nonassessable shares
      of
      Common Stock (or Other Securities) to which such Holder shall be entitled on
      such exercise, plus, in lieu of any fractional share to which such holder would
      otherwise be entitled, cash equal to such fraction multiplied by the then Fair
      Market Value of one full share, together with any other stock or other
      securities and property (including cash, where applicable) to which such Holder
      is entitled upon such exercise pursuant to Section 1 or otherwise.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    2.2. Exercise.

     

    (a) Payment
      may be made either (i) in cash by wire transfer of immediately available funds
      or by certified or official bank check payable to the order of the Company
      equal
      to the applicable aggregate Exercise Price, (ii) by delivery of this Warrant,
      or
      shares of Common Stock and/or Common Stock receivable upon exercise of this
      Warrant in accordance with the formula set forth in subsection (b) below, or
      (iii) by a combination of any of the foregoing methods, for the number of Common
      Shares specified in such Exercise Notice (as such exercise number shall be
      adjusted to reflect any adjustment in the total number of shares of Common
      Stock
      issuable to the Holder per the terms of this Warrant) and the Holder shall
      thereupon be entitled to receive the number of duly authorized, validly issued,
      fully-paid and non-assessable shares of Common Stock (or Other Securities)
      determined as provided herein.

     

    (b) Notwithstanding
      any provisions herein to the contrary, if the Fair Market Value of one share
      of
      Common Stock is greater than the Exercise Price (at the date of calculation
      as
      set forth below), in lieu of exercising this Warrant for cash, the Holder may
      elect to receive shares equal to the value (as determined below) of this Warrant
      (or the portion thereof being exercised) by surrender of this Warrant at the
      principal office of the Company together with the properly endorsed Exercise
      Notice in which event the Company shall issue to the Holder a number of shares
      of Common Stock computed using the following formula:

    

    
      	
              X=

            	
              Y(A-B)

            	 
	 	
              A

            	 
	 	 	 
	
              Where
                X =

            	
              the
                number of shares of Common Stock to be issued to the
                Holder

            
	 	 
	
              Y
                =

            	
              the
                number of shares of Common Stock purchasable under this Warrant or,
                if
                only a portion of this Warrant is being exercised, the portion of
                this
                Warrant being exercised (at the date of such
                calculation)

            
	 	 
	
              A
                =

            	
              the
                Fair Market Value of one share of the Company’s Common Stock (at the date
                of such calculation)

            
	 	 
	
              B
                =

            	
              the
                Exercise Price per share (as adjusted to the date of such
                calculation)

            

    

     

    Notwithstanding
      anything to the contrary set forth in Section 2.2(a) above, to the extent that
      a
      registration statement registering all the shares of Common Stock of the Company
      issuable upon exercise of this Warrant has been declared effective by the
      Securities and Exchange Commission and remains effective as of the date of
      the
      proposed exercise set forth in an Exercise Notice, the Holder shall upon such
      proposed exercise, make payment to the Company of each respective Exercise
      Price
      set forth in such Exercise Notice in cash by wire transfer of immediately
      available funds or by certified or official bank check only.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3. Effect
      of Reorganization, Etc.; Adjustment of Exercise Price.

     

    3.1. Reorganization,
      Consolidation, Merger, Etc.
      If
      there occurs any capital reorganization or any reclassification of the Common
      Stock of the Company, the consolidation or merger of the Company with or into
      another person (other than a merger or consolidation of the Company in which
      the
      Company is the continuing entity and which does not result in any reorganization
      or reclassification of its outstanding Common Stock) or the sale or conveyance
      of all or substantially all of the assets of the Company to another person,
      then, as a condition precedent to any such reorganization, reclassification,
      consolidation, merger, sale or conveyance, the Holder will be entitled to
      receive upon surrender of this Warrant to the Company (x) to the extent there
      are cash proceeds resulting from the consummation of such reorganization,
      reclassification, consolidation, merger, sale or conveyance, in exchange for
      this Warrant, cash in an amount equal to the cash proceeds that would have
      been
      payable to the Holder had the Holder exercised this Warrant immediately prior
      to
      the consummation of such reorganization, reclassification, consolidation,
      merger, sale or conveyance, less the aggregate Exercise Price payable upon
      exercise of this Warrant, and (y) to the extent that the Holder would be
      entitled to receive Common Stock (or Other Securities) (in addition to or in
      lieu of cash in connection with any such reorganization, reclassification,
      consolidation, merger, sale or conveyance), the same kind and amounts of
      securities or other assets, or both, that are issuable or distributable to
      the
      holders of outstanding Common Stock (or Other Securities) of the Company with
      respect to its Common Stock (or Other Securities) upon such reorganization,
      reclassification, consolidation, merger, sale or conveyance, as would have
      been
      deliverable to the Holder had the Holder exercised this Warrant immediately
      prior to the consummation of such reorganization, reclassification,
      consolidation, merger, sale or conveyance less an amount of such securities
      having a value equal to the aggregate Exercise Price payable upon exercise
      of
      this Warrant.

     

    3.2. Dissolution.
      In the
      event of any dissolution of the Company following the transfer of all or
      substantially all of its properties or assets, the Company, concurrently with
      any distributions made to holders of its Common Stock, shall at its expense
      deliver or cause to be delivered to the Holder the stock and other securities
      and property (including cash, where applicable) receivable by the Holder
      pursuant to Section 3.1, or, if the Holder shall so instruct the Company, to
      a
      bank or trust company specified by the Holder and having its principal office
      in
      New York, NY as trustee for the Holder.

     

    3.3. Continuation
      of Terms.
      Upon
      any reorganization, consolidation, merger or transfer (and any dissolution
      following any transfer) referred to in this Section 3, this Warrant shall
      continue in full force and effect and the terms hereof shall be applicable
      to
      the shares of stock and other securities and property receivable on the exercise
      of this Warrant after the consummation of such reorganization, consolidation
      or
      merger or the effective date of dissolution following any such transfer, as
      the
      case may be, and shall be binding upon the issuer of any such stock or other
      securities, including, in the case of any such transfer, the person acquiring
      all or substantially all of the properties or assets of the Company, whether
      or
      not such person shall have expressly assumed the terms of this Warrant as
      provided in Section 4. In the event this Warrant does not continue in full
      force
      and effect after the consummation of the transactions described in this Section
      3, then the Company’s securities and property (including cash, where applicable)
      receivable by the Holder will be delivered to the Holder or the Trustee as
      contemplated by Section 3.2.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    4. Extraordinary
      Events Regarding Common Stock.
      In the
      event that the Company shall (a) issue additional shares of the Common Stock
      as
      a dividend or other distribution on outstanding Common Stock or any preferred
      stock issued by the Company, (b) subdivide its outstanding shares of Common
      Stock, (c) combine its outstanding shares of the Common Stock into a smaller
      number of shares of the Common Stock, then, in each such event, the Exercise
      Price shall, simultaneously with the happening of such event, be adjusted by
      multiplying the then Exercise Price by a fraction, the numerator of which shall
      be the number of shares of Common Stock outstanding immediately prior to such
      event and the denominator of which shall be the number of shares of Common
      Stock
      outstanding immediately after such event, and the product so obtained shall
      thereafter be the Exercise Price then in effect. The Exercise Price, as so
      adjusted, shall be readjusted in the same manner upon the happening of any
      successive event or events described herein in this Section 4. The number of
      shares of Common Stock that the holder shall thereafter, on the exercise hereof
      as provided in Section 1, be entitled to receive shall be adjusted to a number
      determined by multiplying the number of shares of Common Stock that would
      otherwise (but for the provisions of this Section 4) be issuable on such
      exercise by a fraction of which (a) the numerator is the Exercise Price that
      would otherwise (but for the provisions of this Section 4) be in effect, and
      (b)
      the denominator is the Exercise Price in effect on the date of such exercise
      (taking into account the provisions of this Section 4). Notwithstanding the
      foregoing, in no event shall the Exercise Price be less than the par value
      of
      the Common Stock.

     

    5. Certificate
      as to Adjustments.
      In each
      case of any adjustment or readjustment in the shares of Common Stock (or Other
      Securities) issuable on the exercise of this Warrant, the Company at its expense
      will promptly cause its Chief Financial Officer or other appropriate designee
      to
      compute such adjustment or readjustment in accordance with the terms of this
      Warrant and prepare a certificate setting forth such adjustment or readjustment
      and showing in reasonable detail the facts upon which such adjustment or
      readjustment is based, including a statement of (a) the consideration received
      or receivable by the Company for any additional shares of Common Stock (or
      Other
      Securities) issued or sold or deemed to have been issued or sold, (b) the number
      of shares of Common Stock (or Other Securities) outstanding or deemed to be
      outstanding, and (c) the Exercise Price and the number of shares of Common
      Stock
      to be received upon exercise of this Warrant, in effect immediately prior to
      such adjustment or readjustment and as adjusted or readjusted as provided in
      this Warrant. The Company will forthwith mail a copy of each such certificate
      to
      the holder and any Warrant agent of the Company (appointed pursuant to Section
      11 hereof).

     

    6. Reservation
      of Stock, Etc., Issuable on Exercise of Warrant.
      The
      Company will at all times reserve and keep available, solely for issuance and
      delivery on the exercise of this Warrant, shares of Common Stock (or Other
      Securities) from time to time issuable on the exercise of this
      Warrant.

     

    7. Assignment;
      Exchange of Warrant.
      Subject
      to compliance with applicable securities laws, this Warrant, and the rights
      evidenced hereby, may be transferred by any registered holder hereof (a
“Transferor”) in whole or in part. On the surrender for exchange of this
      Warrant, with the Transferor’s endorsement in the form of Exhibit B attached
      hereto (the “Transferor Endorsement Form”) and together with evidence reasonably
      satisfactory to the Company demonstrating compliance with applicable securities
      laws, which shall include, without limitation, a legal opinion from the
      Transferor’s counsel (at the Company’s expense) that such transfer is exempt
      from the registration requirements of applicable securities laws, the Company
      at
      its expense (but with payment by the Transferor of any applicable transfer
      taxes) will issue and deliver to or on the order of the Transferor thereof
      a new
      Warrant of like tenor, in the name of the Transferor and/or the transferee(s)
      specified in such Transferor Endorsement Form (each a “Transferee”), calling in
      the aggregate on the face or faces thereof for the number of shares of Common
      Stock called for on the face or faces of the Warrant so surrendered by the
      Transferor.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    8. Replacement
      of Warrant.
      On
      receipt of evidence reasonably satisfactory to the Company of the loss, theft,
      destruction or mutilation of this Warrant and, in the case of any such loss,
      theft or destruction of this Warrant, on delivery of an indemnity agreement
      or
      security reasonably satisfactory in form and amount to the Company or, in the
      case of any such mutilation, on surrender and cancellation of this Warrant,
      the
      Company at its expense will execute and deliver, in lieu thereof, a new Warrant
      of like tenor.

     

    9. Registration
      Rights.
      The
      Holder has been granted certain registration rights by the Company. These
      registration rights are set forth in a Registration Rights
      Agreement.

     

    10. Maximum
      Exercise.
      Notwithstanding anything herein to the contrary, in no event shall the Holder
      be
      entitled to exercise any portion of this Warrant in excess of that portion
      of
      this Warrant upon exercise of which the sum of (1) the number of shares of
      Common Stock beneficially owned by the Holder and its Affiliates (other than
      shares of Common Stock which may be deemed beneficially owned through the
      ownership of the unexercised portion of the Warrant or the unexercised or
      unconverted portion of any other security of the Holder subject to a limitation
      on conversion analogous to the limitations contained herein) and (2) the number
      of shares of Common Stock issuable upon the exercise of the portion of this
      Warrant with respect to which the determination of this proviso is being made,
      would result in beneficial ownership by the Holder and its Affiliates of any
      amount greater than 9.99% of the then outstanding shares of Common Stock
      (whether or not, at the time of such exercise, the Holder and its Affiliates
      beneficially own more than 9.99% of the then outstanding shares of Common
      Stock). As used herein, the term “Affiliate” means any person or entity that,
      directly or indirectly through one or more intermediaries, controls or is
      controlled by or is under common control with a person or entity, as such terms
      are used in and construed under Rule 144 under the Securities Act. For purposes
      of the proviso to the second preceding sentence, beneficial ownership shall
      be
      determined in accordance with Section 13(d) of the Securities Exchange Act
      of
      1934, as amended, and Regulations 13D-G thereunder, except as otherwise provided
      in clause (1) of such proviso. The limitations set forth herein (x) shall
      automatically become null and void following notice to the Company upon the
      occurrence and during the continuance of an Event of Default (as defined in
      the
      Security Agreement) and (y) may be waived by the Holder upon provision of no
      less than sixty-one (61) days prior written notice to the Company; provided,
      however, that, such written notice of waiver shall only be effective if
      delivered at a time when no indebtedness (including, without limitation,
      principal, interest, fees and charges) of the Company of which the Holder or
      any
      of its Affiliates was, at any time, the owner, directly or indirectly, is
      outstanding.

     

    11. Warrant
      Agent.
      The
      Company may, by written notice to the each Holder of the Warrant, appoint an
      agent for the purpose of issuing Common Stock (or Other Securities) on the
      exercise of this Warrant pursuant to Section 1, exchanging this Warrant pursuant
      to Section 7, and replacing this Warrant pursuant to Section 8, or any of the
      foregoing, and thereafter any such issuance, exchange or replacement, as the
      case may be, shall be made at such office by such agent.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    12. Transfer
      on the Company’s Books.
      Until
      this Warrant is transferred on the books of the Company, the Company may treat
      the registered holder hereof as the absolute owner hereof for all purposes,
      notwithstanding any notice to the contrary.

     

    13. Notices,
      Etc.
      All
      notices and other communications from the Company to the Holder shall be mailed
      by first class registered or certified mail, postage prepaid, at such address
      as
      may have been furnished to the Company in writing by such Holder or, until
      any
      such Holder furnishes to the Company an address, then to, and at the address
      of,
      the last Holder who has so furnished an address to the Company.

     

    14. Miscellaneous.
      This
      Warrant and any term hereof may be changed, waived, discharged or terminated
      only by an instrument in writing signed by the party against which enforcement
      of such change, waiver, discharge or termination is sought. THIS WARRANT SHALL
      BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
      YORK WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS. ANY ACTION BROUGHT
      CONCERNING THE TRANSACTIONS CONTEMPLATED BY THIS WARRANT SHALL BE BROUGHT ONLY
      IN STATE COURTS OF NEW YORK OR IN THE FEDERAL COURTS LOCATED IN THE STATE OF
      NEW
      YORK; PROVIDED, HOWEVER, THAT THE HOLDER MAY CHOOSE TO WAIVE THIS PROVISION
      AND
      BRING AN ACTION OUTSIDE THE STATE OF NEW YORK. THE INDIVIDUALS EXECUTING THIS
      WARRANT ON BEHALF OF THE COMPANY AGREE TO SUBMIT TO THE JURISDICTION OF SUCH
      COURTS AND WAIVE TRIAL BY JURY. The prevailing party shall be entitled to
      recover from the other party its reasonable attorneys’ fees and costs. In the
      event that any provision of this Warrant is invalid or unenforceable under
      any
      applicable statute or rule of law, then such provision shall be deemed
      inoperative to the extent that it may conflict therewith and shall be deemed
      modified to conform with such statute or rule of law. Any such provision which
      may prove invalid or unenforceable under any law shall not affect the validity
      or enforceability of any other provision of this Warrant. The headings in this
      Warrant are for purposes of reference only, and shall not limit or otherwise
      affect any of the terms hereof. The invalidity or unenforceability of any
      provision hereof shall in no way affect the validity or enforceability of any
      other provision hereof. The Company acknowledges that legal counsel participated
      in the preparation of this Warrant and, therefore, stipulates that the rule
      of
      construction that ambiguities are to be resolved against the drafting party
      shall not be applied in the interpretation of this Warrant to favor any party
      against the other party.

     

    [BALANCE
      OF PAGE INTENTIONALLY LEFT BLANK;

    SIGNATURE
      PAGE FOLLOWS]

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the Company has executed this Warrant as of the date first
      written above.

     

    
      	
            	 	
              PROLINK
                HOLDINGS CORP.

            
	
              WITNESS:

            	 	
            
	 	 	
              By:

            	 
	 	 	
              Name: 

            	 
	 	 	
              Title:

            	 

    

    
       

      SIGNATURE
        PAGE TO

      COMMON
        STOCK PURCHASE WARRANT

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      A

     

    FORM
      OF SUBSCRIPTION

     

    (To
      Be
      Signed Only On Exercise Of Warrant)

     

    
      	
              TO:

            	
              Prolink
                Holdings Corp.

            

    

    410
      Benson Lane

    Chandler,
      Arizona 85224

    
      	
            	
              Attention:

            	
              Chief
                Financial Officer

            

    

     

    The
      undersigned, pursuant to the provisions set forth in the attached Warrant (No.
      1), hereby irrevocably elects to purchase (check applicable box):

     

    
      	________	
              ________
                shares of the common stock covered by such warrant;
                or

            

    

     

    
      	________	
              the
                maximum number of shares of common stock covered by such warrant
                pursuant
                to the cashless exercise procedure set forth in Section
                2.

            

    

     

    The
      undersigned herewith makes payment of the full Exercise Price for such shares
      at
      the price per share provided for in such Warrant, which is $___________. Such
      payment takes the form of (check applicable box or boxes):

     

    
      	________	
              $__________
                in lawful money of the United States;
                and/or

            

    

     

    
      	________	
              the
                cancellation of such portion of the attached Warrant as is exercisable
                for
                a total of _______ shares of Common Stock (using a Fair Market Value
                of
                $_______ per share for purposes of this calculation);
                and/or

            

    

     

    
      	________	
              the
                cancellation of such number of shares of Common Stock as is necessary,
                in
                accordance with the formula set forth in Section 2.2, to exercise
                this
                Warrant with respect to the maximum number of shares of Common Stock
                purchasable pursuant to the cashless exercise procedure set forth
                in
                Section 2.

            

    

     

    The
      undersigned requests that the certificates for such shares be issued in the
      name
      of, and delivered to
      ____________________________________________________________ whose address
      is
      _____________________
      ______________________________________________________.

     

    The
      undersigned represents and warrants that all offers and sales by the undersigned
      of the securities issuable upon exercise of the within Warrant shall be made
      pursuant to registration of the Common Stock under the Securities Act of 1933,
      as amended (the “Securities Act”) or pursuant to an exemption from registration
      under the Securities Act.

     

    
      	
              Dated:   

            	 	 	 
	 	 	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 	 	
              Address:    

            	 
	 	 	 	 	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    EXHIBIT
      B

     

    FORM
      OF TRANSFEROR ENDORSEMENT

     

    (To
      Be
      Signed Only On Transfer Of Warrant)

     

    For
      value
      received, the undersigned hereby sells, assigns, and transfers unto the
      person(s) named below under the heading “Transferees” the right represented by
      the within Warrant to purchase the percentage and number of shares of Common
      Stock of Prolink Holdings Corp. into which the within Warrant relates specified
      under the headings “Percentage Transferred” and “Number Transferred,”
respectively, opposite the name(s) of such person(s) and appoints each such
      person Attorney to transfer its respective right on the books of Prolink
      Holdings Corp. with full power of substitution in the premises.

    

    
      	
              Transferees

            	 	
              Address

            	 	
              Percentage

              Transferred

            	 	
              Number

              Transferred

            
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

    

    

    
      	
              Dated:

            	 	 	 
	 	 	 	
              (Signature
                must conform to name of holder as specified on the face of the
                Warrant)

            
	 	 	 	
              Address:   

            	 
	 	 	 	 	 
	 	 	 	 
	 	 	 	
              SIGNED
                IN THE PRESENCE OF:

            
	 	 	 	 
	 	 	 	
              (Name)

            

    

    

    
      	
              ACCEPTED
                AND AGREED:

            	 
	
              [TRANSFEREE]

            	 
	 	 
	
              (Name)SECURITY
      AGREEMENT

    

    CALLIOPE
      CAPITAL CORPORATION.

    

    PROLINK
      HOLDINGS CORP.

    

    and

    

    EACH
      ELIGIBLE SUBSIDIARY NAMED HEREIN

    

    Dated:
      August 17, 2007

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

    
      	 	 	
                

            	
              Page

            
	 	 	 	 
	
              1.

            	
              General
                Definitions and Terms; Rules of Construction

            	 	
              1

            
	 	 	 	 
	
              2.

            	
              Loan
                Facility

            	 	
              2

            
	 	 	 	 
	
              3.

            	
              Repayment
                of the Loans

            	 	
              5

            
	 	 	 	 
	
              4.

            	
              Procedure
                for Revolving Loans

            	 	
              5

            
	 	 	 	 
	
              5.

            	
              Interest
                and Payments

            	 	
              5

            
	 	 	 	 
	
              6.

            	
              Security
                Interest

            	 	
              7

            
	 	 	 	 
	
              7.

            	
              Representations,
                Warranties and Covenants Concerning the Collateral

            	 	
              8

            
	 	 	 	 
	
              8.

            	
              Payment
                of Accounts

            	 	
              10

            
	 	 	 	 
	
              9.

            	
              Collection
                and Maintenance of Collateral

            	 	
              11

            
	 	 	 	 
	
              10.

            	
              Inspections
                and Appraisals

            	 	
              11

            
	 	 	 	 
	
              11.

            	
              Financial
                Reporting

            	 	
              11

            
	 	 	 	 
	
              12.

            	
              Additional
                Representations and Warranties

            	 	
              13

            
	 	 	 	 
	
              13.

            	
              Covenants

            	 	
              24

            
	 	 	 	 
	
              14.

            	
              Further
                Assurances

            	 	
              32

            
	 	 	 	 
	
              15.

            	
              Representations,
                Warranties and Covenants of Calliope

            	 	
              32

            
	 	 	 	 
	
              16.

            	
              Power
                of Attorney

            	 	
              34

            
	 	 	 	 
	
              17.

            	
              Term
                of Agreement

            	 	
              34

            
	 	 	 	 
	
              18.

            	
              Termination
                of Lien

            	 	
              35

            
	 	 	 	 
	
              19.

            	
              Events
                of Default

            	 	
              35

            
	 	 	 	 
	
              20.

            	
              Remedies

            	 	
              38

            
	 	 	 	 
	
              21.

            	
              Waivers

            	 	
              38

            
	 	 	 	 
	
              22.

            	
              Expenses

            	 	
              39

            
	 	 	 	 
	
              23.

            	
              Assignment
                By Calliope

            	 	
              39

            
	 	 	 	 
	
              24.

            	
              No
                Waiver; Cumulative Remedies

            	 	
              40

            

    

     

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF CONTENTS

    

    
      	 	 	
                

            	
              Page

            
	 	 	 	 
	
              25.

            	
              Application
                of Payments

            	 	
              40

            
	 	 	 	 
	
              26.

            	
              Indemnity

            	 	
              40

            
	 	 	 	 
	
              27.

            	
              Revival

            	 	
              40

            
	 	 	 	 
	
              28.

            	
              Borrowing
                Agency Provisions

            	 	
              41

            
	 	 	 	 
	
              29.

            	
              Notices

            	 	
              42

            
	 	 	 	 
	
              30.

            	
              Governing
                Law, Jurisdiction and Waiver of Jury Trial

            	 	
              43

            
	 	 	 	 
	
              31.

            	
              Limitation
                of Liability

            	 	
              44

            
	 	 	 	 
	
              32.

            	
              Entire
                Understanding; Maximum Interest

            	 	
              44

            
	 	 	 	 
	
              33.

            	
              Severability

            	 	
              44

            
	 	 	 	 
	
              34.

            	
              Survival

            	 	
              45

            
	 	 	 	 
	
              35.

            	
              Captions

            	 	
              45

            
	 	 	 	 
	
              36.

            	
              Counterparts;
                Facsimile Signatures

            	 	
              45

            
	 	 	 	 
	
              37.

            	
              Construction

            	 	
              45

            
	 	 	 	 
	
              38.

            	
              Publicity

            	 	
              45

            
	 	 	 	 
	
              39.

            	
              Joinder

            	 	
              45

            
	 	 	 	 
	
              40.

            	
              Legends

            	 	
              45

            

    

     

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    SECURITY
      AGREEMENT

     

    This
      Security Agreement is made as of August 17, 2007 by and among CALLIOPE CAPITAL
      CORPORATION, a Delaware corporation (“Calliope”),
      PROLINK HOLDINGS CORP., a Delaware corporation (the “Parent”),
      and
      each party listed on Exhibit
      A
      attached
      hereto (each an “Eligible
      Subsidiary”
and
      collectively, the “Eligible
      Subsidiaries”)
      (the
      Parent and each Eligible Subsidiary, each a “Company”
and
      collectively, the “Companies”).

     

    BACKGROUND

     

    The
      Companies have requested that Calliope make advances available to the Companies;
      and

     

    Calliope
      has agreed to make such advances on the terms and conditions set forth in this
      Agreement.

     

    AGREEMENT

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and undertakings and the
      terms and conditions contained herein, the parties hereto agree as
      follows:

     

    1. General
      Definitions and Terms; Rules of Construction.

     

    (a) General
      Definitions.
      Capitalized terms used in this Agreement shall have the meanings assigned to
      them in Annex
      A.

     

    (b) Accounting
      Terms.
      Any
      accounting terms used in this Agreement that are not specifically defined shall
      have the meanings customarily given them in accordance with GAAP and all
      financial computations shall be computed, unless specifically provided herein,
      in accordance with GAAP consistently applied.

     

    (c) Other
      Terms.
      All
      other terms used in this Agreement and defined in the UCC, shall have the
      meaning given therein unless otherwise defined herein.

     

    (d) Rules
      of Construction.
      All
      Schedules, Addenda, Annexes and Exhibits hereto or expressly identified to
      this
      Agreement are incorporated herein by reference and taken together with this
      Agreement constitute but a single agreement. The words “herein”, “hereof” and
“hereunder” or other words of similar import refer to this Agreement as a whole,
      including the Exhibits, Addenda, Annexes and Schedules thereto, as the same
      may
      be from time to time amended, modified, restated or supplemented, and not to
      any
      particular section, subsection or clause contained in this Agreement. Wherever
      from the context it appears appropriate, each term stated in either the singular
      or plural shall include the singular and the plural, and pronouns stated in
      the
      masculine, feminine or neuter gender shall include the masculine, the feminine
      and the neuter. The term “or” is not exclusive. The term “including” (or any
      form thereof) shall not be limiting or exclusive. All references to statutes
      and
      related regulations shall include any amendments of same and any successor
      statutes and regulations. All references in this Agreement or in the Schedules,
      Addenda, Annexes and Exhibits to this Agreement to sections, schedules,
      disclosure schedules, exhibits, and attachments shall refer to the corresponding
      sections, schedules, disclosure schedules, exhibits, and attachments of or
      to
      this Agreement. All references to any instruments or agreements, including
      references to any of this Agreement or the Ancillary Agreements shall include
      any and all modifications or amendments thereto and any and all extensions
      or
      renewals thereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    2. Loan
      Facility.

     

    (a) Revolving
      Loans.

     

    (i) (A) Subject
      to the terms and conditions set forth herein and in the Ancillary Agreements,
      Calliope may make revolving loans (the “Receivable
      Revolving Loans”)
      to the
      Companies from time to time during the Revolver Term which, in the aggregate
      at
      any time outstanding, will not exceed the lesser of (x) (I) the Capital
      Availability Amount minus (II) such reserves as Calliope may reasonably in
      its
      good faith judgment deem proper and necessary from time to time (the
“Reserves”)
      minus
      (III) the aggregate outstanding principal balance of the Purchase Order
      Revolving Loans and (y) an amount equal to (I) the Accounts Availability minus
      (II) the Reserves. The amount derived at any time from
      Section 2(a)(i)(A)(y)(I) minus 2(a)(i)(A)(y)(II) shall be referred to as
      the “Receivable
      Formula Amount.”

     

    (B) Subject
      to the terms and conditions set forth herein and in the Ancillary Agreements,
      Calliope may make additional revolving loans (the “Purchase
      Order Revolving Loans”
      together with the Receivable Revolving Loans, the “Revolving
      Loans”)
      to the
      Companies from time to time during the Revolver Term which, in the aggregate
      at
      any time outstanding, will not exceed the lesser of (x)(I) the Capital
      Availability Amount minus (II) the Reserves minus (III) the aggregate
      outstanding principal balance of the Receivable Revolving Loans and (y) an
      amount equal to (I) the Purchase Order Availability minus (II) the Reserves.
      The
      amount derived at any time from Section 2(a)(i)(B)(y)(I) minus 2(a)(i)(B)(y)(II)
      shall be referred to as the “Purchase
      Order Formula Amount”.

     

    (C) The
      Companies shall, jointly and severally, execute and deliver to Calliope on
      the
      Closing Date the Secured Revolving Note and the Secured Convertible Term Note.
      The Companies hereby each acknowledge and agree that Calliope’s obligation to
      purchase the Secured Revolving Note and the Secured Convertible Term Note from
      the Companies on the Closing Date shall be contingent upon the satisfaction
      (or
      waiver by Calliope in its sole discretion) of the items and matters set forth
      in
      the closing checklist provided by Calliope to the Companies on or prior to
      the
      Closing Date. The Companies hereby each further acknowledge and agree that,
      immediately prior to each borrowing hereunder and immediately after giving
      effect thereto, the Companies shall be deemed to have certified to Calliope
      that
      at the time of each such proposed borrowing and also after giving effect thereto
      (i) there shall exist no Event of Default, (ii) all representations, warranties
      and covenants made by the Companies in connection with this Agreement and the
      Ancillary Agreements are true, correct and complete and (iii) all of each
      Company’s and its respective Subsidiaries’ covenant requirements under this
      Agreement and the Ancillary Agreements have been met. The Companies hereby
      agree
      to provide a certificate confirming the foregoing concurrently with each request
      for a borrowing hereunder.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (ii) Notwithstanding
      the limitations set forth above, if requested by any Company, Calliope retains
      the right to lend to such Company from time to time such amounts in excess
      of
      such limitations as Calliope may determine in its sole discretion. In connection
      with each such request by one or more Companies, the Companies shall be deemed
      to have certified, as of the time of such proposed borrowing and immediately
      after giving effect thereto, to the satisfaction of all Overadvance Conditions.
      For purposes hereof, “Overadvance
      Conditions”
means
      (i) no Event of Default shall exist and be continuing as of such date; (ii)
      all
      representations, warranties and covenants made by the Companies in connection
      with the Security Agreement and the Ancillary Agreements shall be true, correct
      and complete as of such date; and (iii) the Companies and their respective
      Subsidiaries shall have taken all action necessary to grant Calliope “control”
over all of the Companies’ and their respective Subsidiaries’ Deposit Accounts
      (the “Control
      Accounts”),
      with
      any agreements establishing “control” to be in form and substance satisfactory
      to Calliope. “Control”
over
      such Control Accounts shall be released upon the indefeasible repayment in
      full
      and termination of the Overadvance (together with all accrued interest and
      fees
      which remain unpaid in respect thereof). The Companies hereby agree to provide
      a
      certificate confirming the satisfaction of the Overadvance Conditions
      concurrently with the request for same.

     

    (iii) The
      Companies acknowledge that, in the exercise of its reasonable credit judgment,
      Calliope may increase the advance percentages used in determining Accounts
      Availability and may decrease the advance percentages used in determining
      Accounts Availability for reasons relating to either an increase in dilution
      or
      other deterioration of the Accounts, in each case as determined by Calliope
      in
      its reasonable discretion. Each of the Companies hereby consent to any such
      increases or decreases which may limit or restrict advances requested by the
      Companies.

     

    (iv) If
      any
      interest, fees, costs or charges payable to Calliope hereunder are not paid
      when
      due, each of the Companies shall thereby be deemed to have requested, and
      Calliope is hereby authorized at its discretion to make and charge to the
      Companies’ account, a Revolving Loan as of such date in an amount equal to such
      unpaid interest, fees, costs or charges.

     

    (v) If
      any
      Company at any time fails to perform or observe any of the covenants contained
      in this Agreement or any Ancillary Agreement, Calliope may, but need not,
      perform or observe such covenant on behalf and in the name, place and stead
      of
      such Company (or, at Calliope’s option, in Calliope’s name) and may, but need
      not, take any and all other actions which Calliope may deem necessary to cure
      or
      correct such failure (including the payment of taxes, the satisfaction of Liens,
      the performance of obligations owed to Account Debtors, lessors or other
      obligors, the procurement and maintenance of insurance, the execution of
      assignments, security agreements and financing statements, and the endorsement
      of instruments). The amount of all monies expended and all costs and reasonable
      expenses (including attorneys’ fees and legal expenses) incurred by Calliope in
      connection with or as a result of the performance or observance of such
      agreements or the taking of such action by Calliope shall be charged to the
      Companies’ account as a Revolving Loan
      and
      added to the Obligations. To facilitate Calliope’s performance or observance of
      such covenants by each Company, each Company hereby irrevocably appoints
      Calliope, or Calliope’s delegate, acting alone, as such Company’s attorney in
      fact (which appointment is coupled with an interest) with the right (but not
      the
      duty) from time to time to create, prepare, complete, execute, deliver, endorse
      or file in the name and on behalf of such Company any and all instruments,
      documents, assignments, security agreements, financing statements, applications
      for insurance and other agreements and writings required to be obtained,
      executed, delivered or endorsed by such Company.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (vi) Calliope
      will account to Company Agent monthly with a statement of all Loans and other
      advances, charges and payments made pursuant to this Agreement, and such account
      rendered by Calliope shall be deemed final, binding and conclusive unless
      Calliope is notified by Company Agent in writing to the contrary within thirty
      (30) days of the date each account was rendered specifying the item or items
      to
      which objection is made.

     

    (vii) During
      the Revolver Term, the Companies may borrow, prepay and reborrow Revolving
      Loans
      in accordance with the terms and conditions hereof.

     

    (viii) If
      any
      Eligible Account or any Eligible Credit Insured Account is not paid by the
      Account Debtor within ninety (90) days after the date that such Eligible Account
      or such Eligible Credit Insured Account, as applicable, was invoiced or if
      any
      Account Debtor asserts a deduction, dispute, contingency, set-off, or
      counterclaim with respect to any Eligible Account or any Eligible Credit Insured
      Account, (a “Delinquent
      Account”),
      the
      Companies shall jointly and severally (i) reimburse Calliope for the amount
      of
      the Receivable Revolving Loans made with respect to such Delinquent Account
      plus
      an adjustment fee in an amount equal to one-half of one percent (0.50%) of
      the
      gross face amount of such Delinquent Account or (ii) immediately replace such
      Delinquent Account with an otherwise Eligible Account or Eligible Credit Insured
      Account.

     

    (ix) If
      the
      Purchase Order Price set forth in any Eligible Purchase Order is not paid by
      the
      Approved Leasing Company within the lesser of (A) thirty (30) days of the date
      the Products set forth in such Eligible Purchase Order are shipped to the
      applicable Golf Course Customer and (B) the date the applicable Golf Course
      Customer rejects the Products delivered pursuant to such Purchase Order (a
      “Delinquent
      Purchase Order”),
      the
      Companies shall jointly and severally reimburse Calliope for the amount of
      the
      Purchase Order Revolving Loan made with respect to such Delinquent Purchase
      Order plus an adjustment fee in an amount equal to one half of one percent
      (0.50%) of the Purchase Price set forth in such Delinquent Purchase
      Order.

     

    (b) Term
      Loan.
      Subject
      to the terms and conditions set forth herein and in the Ancillary Agreements,
      Calliope shall make a term loan (the “Term
      Loan”)
      to
      Company Agent (for the benefit of Companies) in an aggregate amount equal to
      $4,000,000. The Term Loan shall be advanced on the Closing Date and shall be,
      with respect to principal, payable in consecutive monthly installments of
      principal commencing on September 1, 2008 and on the first day of each month
      thereafter, subject to acceleration upon the occurrence of an Event of Default
      or termination of this Agreement. The Term Loan shall be evidenced by the
      Secured Convertible Term Note.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    3. Repayment
      of the Loans.
      The
      Companies (a) may prepay the Obligations from time to time in accordance with
      the terms and provisions of the Notes (and Section 17 hereof if such prepayment
      is due to a termination of this Agreement); (b) shall repay on the expiration
      of
      the Term Loan Term (i) the then aggregate outstanding principal balance of
      the
      Term Loan together with accrued and unpaid interest, fees and charges and:
      (ii)
      all other amounts owed Calliope under the Secured Convertible Term Note; (c)
      shall repay on the expiration of the Revolver Term (i) the then aggregate
      outstanding principal balance of the Revolving Loans together with accrued
      and
      unpaid interest, fees and charges and; (ii) all other Obligations in respect
      of
      the Revolving Loans owed Calliope under this Agreement and the Ancillary
      Agreements; (c) subject to Section 2(a)(ii), shall repay on any day on which
      the
      then aggregate outstanding principal balance of the Receivable Revolving Loans
      are in excess of the Receivable Formula Amount at such time, Receivable Loans
      in
      an amount equal to such excess; and (d) subject to Section 2(a)(ii), shall
      repay
      on any day on which the then aggregate outstanding principal balance of the
      Purchase Order Revolving Loans are in excess of the Purchase Order Formula
      Amount at such time, Purchase Order Revolving Loans in an amount equal to such
      excess. Any payments of principal, interest, fees or any other amounts payable
      hereunder or under any Ancillary Agreement shall be made prior to 12:00 noon
      (New York time) on the due date thereof in immediately available
      funds.

     

    4. Procedure
      for Revolving Loans.
      Company
      Agent may by written notice request a borrowing of Revolving Loans prior to
      12:00 noon (New York time) on the Business Day of its request to incur, on
      the
      next Business Day, a Revolving Loan. Together with each request for a Revolving
      Loan (or at such other intervals as Calliope may request), Company Agent shall
      deliver to Calliope a Borrowing Base Certificate in the form of Exhibit
      B
      attached
      hereto, which shall be certified as true and correct by the Chief Executive
      Officer or Chief Financial Officer of Company Agent together with all supporting
      documentation relating thereto. All Revolving Loans shall be disbursed from
      whichever office or other place Calliope may designate from time to time and
      shall be charged to the Companies’ account on Calliope’s books. The proceeds of
      each Revolving Loan made by Calliope shall be made available to Company Agent
      on
      the Business Day following the Business Day so requested in accordance with
      the
      terms of this Section 4 by way of credit to the applicable Company’s operating
      account maintained with such bank as Company Agent designated to Calliope.
      Any
      and all Obligations due and owing hereunder may be charged to the Companies’
account and shall constitute Revolving Loans.

     

    5. Interest
      and Payments.

     

    (a) Interest.

     

    (i) Except
      as
      modified by Section 5(a)(iii) below, the Companies shall jointly and severally
      pay interest at the Receivable Loan Contract Rate or Contract Rate, as
      applicable, on the unpaid principal balance of each Loan until such time as
      such
      Loan is collected in full in good funds in dollars of the United States of
      America.

     

    (ii) Interest
      and payments shall be computed on the basis of actual days elapsed in a year
      of
      360 days. At Calliope’s option, Calliope may charge the Companies’ account for
      said interest.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (iii) Effective
      upon the occurrence of any Event of Default and for so long as any Event of
      Default shall be continuing, the Receivable Loan Contract Rate and Contract
      Rate
      shall automatically be increased as set forth in the Notes (such increased
      rate,
      the “Default
      Rate”),
      and
      all outstanding Obligations, including unpaid interest, shall continue to accrue
      interest from the date of such Event of Default at the Default Rate applicable
      to such Obligations.

     

    (iv) In
      no
      event shall the aggregate interest payable hereunder or under any Note exceed
      the maximum rate permitted under any applicable law or regulation, as in effect
      from time to time (the “Maximum
      Legal Rate”),
      and
      if any provision of this Agreement or any Ancillary Agreement is in
      contravention of any such law or regulation, interest payable under this
      Agreement and each Ancillary Agreement shall be computed on the basis of the
      Maximum Legal Rate (so that such interest will not exceed the Maximum Legal
      Rate).

     

    (v) The
      Companies shall jointly and severally pay principal, interest and all other
      amounts payable hereunder, or under any Ancillary Agreement, without any
      deduction whatsoever, including any deduction for any set-off or
      counterclaim.

     

    (b) Payment;
      Certain Closing Conditions.

     

    (i) Payment.
      Upon
      execution of this Agreement by each Company and Calliope, the Companies shall
      jointly and severally pay to Laurus Capital Management, LLC, the investment
      manager of Calliope (“LCM”),
      a
      non-refundable payment in an amount equal to $315,000, which payment is intended
      to defray certain of LCM’s due diligence, legal and other expenses incurred in
      connection with the entering into of this Agreement and the Ancillary Agreements
      and all related matters. All amounts required to be paid under this Section
      5(b)(i) will be paid on the Closing Date from the proceeds of the initial Loans
      made hereunder.

     

    (ii) Overadvance
      Payment.
      Without
      affecting Calliope’s rights hereunder in the event the Revolving Loans exceed
      the Formula Amount (each such event, an “Overadvance”),
      all
      such Overadvances shall bear additional interest at a rate equal to one percent
      (1%) per month of the amount of such Overadvances for all times such amounts
      shall be in excess of the Formula Amount. All amounts that are incurred pursuant
      to this Section 5(b)(ii) shall be due and payable by the Companies monthly,
      in
      arrears, on the first Business Day of each calendar month and upon expiration
      of
      the Revolver Term.

     

    (iii) Purchase
      Order Revolving Loan Fee.
      Contemporaneously with the making of each Purchase Order Revolving Loan, the
      Companies shall jointly and severally pay to Calliope a non-refundable fee
      in an
      amount equal to one percent (1.0%) of the principal amount of such Purchase
      Order Revolving Loan.

     

    (iv) Expenses.
      The
      Companies shall jointly and severally reimburse Calliope for its expenses
      (including reasonable legal fees and expenses) incurred in connection with
      the
      preparation and negotiation of this Agreement and the Ancillary Agreements,
      and
      expenses incurred in connection with Calliope’s due diligence review of each
      Company and its Subsidiaries and all related matters. Amounts required to be
      paid under this Section 5(b)(iv) will be paid on the Closing Date from the
      proceeds of the initial Loans made hereunder and shall not exceed
      (a) $32,000 for expenses relating to the due diligence referred to in this
      Section 5(b)(iv), plus (b) the cost of all third party appraisals and
      extraordinary diligence deemed advisable or prudent by Calliope, plus
      (c) $28,000 for structuring fees, plus (d) the reasonable legal fees
      and expenses of Loeb & Loeb LLP. The Companies have previously paid a good
      faith deposit of $18,000 to Calliope, which shall be credited toward the
      Companies’ obligations to reimburse Calliope hereunder.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    (v) Financial
      Information Default.
      Without
      affecting Calliope’s other rights and remedies, in the event any Company fails
      to deliver the financial information required by Section 11 on or before the
      date required by this Agreement, the Companies shall jointly and severally
      pay
      Calliope an aggregate fee in the amount of $250.00 per week (or portion thereof)
      for each such failure until such failure is cured to Calliope’s satisfaction or
      waived in writing by Calliope. All amounts that are incurred pursuant to this
      Section 5(b)(v) shall be due and payable upon receipt by the Companies of an
      invoice from Calliope for such amounts, which shall be paid monthly, in arrears,
      on the first business of each calendar month and upon expiration of the
      Term.

     

    6. Security
      Interest.

     

    (a) To
      secure
      the prompt payment to Calliope of the Obligations, each Company hereby assigns,
      pledges and grants to Calliope a continuing security interest in and Lien upon
      all of the Collateral. All of each Company’s Books and Records relating to the
      Collateral shall, until delivered to or removed by Calliope, be kept by such
      Company in trust for Calliope until all Obligations have been paid in full.
      Each
      confirmatory assignment schedule or other form of assignment hereafter executed
      by each Company shall be deemed to include the foregoing grant, whether or
      not
      the same appears therein.

     

    (b) Each
      Company hereby (i) authorizes Calliope to file any financing statements,
      continuation statements or amendments thereto that (x) indicate the Collateral
      (1) as all assets and personal property of such Company or words of similar
      effect, regardless of whether any particular asset comprised in the Collateral
      falls within the scope of Article 9 of the UCC of the applicable jurisdiction,
      or (2) as being of an equal or lesser scope or with greater detail, and (y)
      contain any other information required by Part 5 of Article 9 of the UCC for
      the
      sufficiency or filing office acceptance of any financing statement, continuation
      statement or amendment and (ii) ratifies its authorization for Calliope to
      have
      filed any initial financial statements, or amendments thereto if filed prior
      to
      the date hereof. Each Company acknowledges that it is not authorized to file
      any
      financing statement or amendment or termination statement with respect to any
      financing statement without the prior written consent of Calliope and agrees
      that it will not do so without the prior written consent of Calliope, subject
      to
      such Company’s rights under Section 9-509(d)(2) of the UCC.

     

    (c) Each
      Company hereby grants to Calliope an irrevocable, non-exclusive license
      (exercisable upon the termination of this Agreement due to an occurrence and
      during the continuance of an Event of Default without payment of royalty or
      other compensation to such Company) to use, transfer, license or sublicense
      any
      Intellectual Property now owned, licensed to, or hereafter acquired by such
      Company, and wherever the same may be located, and including in such license
      access to all media in which any of the licensed items may be recorded or stored
      and to all computer and automatic machinery software and programs used for
      the
      compilation or printout thereof, and represents, promises and agrees that any
      such license or sublicense is not and will not be in conflict with the
      contractual or commercial rights of any third Person; provided, that such
      license will terminate on the termination of this Agreement and the payment
      in
      full of all Obligations.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    7. Representations,
      Warranties and Covenants Concerning the Collateral.
      Each
      Company represents, warrants (each of which such representations and warranties
      shall be deemed repeated upon the making of each request for a Revolving Loan
      and made as of the time of each and every Revolving Loan hereunder) and
      covenants as follows:

     

    (a) all
      of
      the Collateral (i) is owned by it free and clear of all Liens (including any
      claims of infringement) except those in Calliope’s favor and Permitted Liens and
      (ii) is not subject to any agreement prohibiting the granting of a Lien or
      requiring notice of or consent to the granting of a Lien.

     

    (b) it
      shall
      not encumber, mortgage, pledge, assign or grant any Lien in any Collateral
      or
      any other assets to anyone other than Calliope and except for Permitted
      Liens.

     

    (c) the
      Liens
      granted pursuant to this Agreement, upon due completion of the filings of UCC-1
      financing statements in respect of each grantor of such Liens in the applicable
      filing offices of the states of organization of such grantor and the completion
      of the other filings and actions listed on Schedule 7(c) (which, in the case
      of
      all filings and other documents referred to in said Schedule, have been
      delivered to Calliope in duly executed form) constitute valid perfected security
      interests in all of the Collateral in favor of Calliope as security for the
      prompt and complete payment and performance of the Obligations, enforceable
      in
      accordance with the terms hereof against any and all of its creditors and
      purchasers and such security interest is prior to all other Liens in existence
      on the date hereof.

     

    (d) no
      effective security agreement, mortgage, deed of trust, financing statement,
      equivalent security or Lien instrument or continuation statement covering all
      or
      any part of the Collateral is or will be on file or of record in any public
      office, except those relating to Permitted Liens.

     

    (e) it
      shall
      not dispose of any of the Collateral whether by sale, lease or otherwise except
      for the sale of Inventory in the ordinary course of business and for the
      disposition or transfer in the ordinary course of business during any fiscal
      year of obsolete and worn-out Equipment having an aggregate fair market value
      of
      not more than $25,000 and only to the extent that (i) the proceeds of any such
      disposition are used to acquire replacement Equipment which is subject to
      Calliope’s first priority security interest or are used to repay Loans or to pay
      general corporate expenses, or (ii) following the occurrence of an Event of
      Default which continues to exist the proceeds of which are remitted to Calliope
      to be held as cash collateral for the Obligations.

     

    (f) it
      shall
      defend the right, title and interest of Calliope in and to the Collateral
      against the claims and demands of all Persons whomsoever, and take such actions,
      including (i) all actions necessary to grant Calliope “control” of any
      Investment Property, Deposit Accounts, Letter-of-Credit Rights or electronic
      Chattel Paper owned by it, with any agreements establishing control to be in
      form and substance satisfactory to Calliope, (ii) the prompt (but in no event
      later than five (5) Business Days following Calliope’s request therefor)
      delivery to Calliope of all original Instruments, Chattel Paper, negotiable
      Documents and certificated Stock owned by it (in each case, accompanied by
      stock
      powers, allonges or other instruments of transfer executed in blank), (iii)
      notification of Calliope’s interest in Collateral at Calliope’s request, and
      (iv) the institution of litigation against third parties as shall be prudent
      in
      order to protect and preserve its and/or Calliope’s respective and several
      interests in the Collateral.

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    (g) it
      shall
      promptly, and in any event within five (5) Business Days after the same is
      acquired by it, notify Calliope of any commercial tort claim (as defined in
      the
      UCC) acquired by it and unless otherwise consented by Calliope, it shall enter
      into a supplement to this Agreement granting to Calliope a Lien in such
      commercial tort claim.

     

    (h) it
      shall
      place notations upon its Books and Records and any of its financial statements
      to disclose Calliope’s Lien in the Collateral.

     

    (i) if
      it
      retains possession of any Chattel Paper or Instrument with Calliope’s consent,
      upon Calliope’s request such Chattel Paper and Instruments shall be marked with
      the following legend: “This writing and obligations evidenced or secured hereby
      are subject to the security interest of Calliope Capital Corporation.”
Notwithstanding the foregoing, upon the reasonable request of Calliope, such
      Chattel Paper and Instruments shall be delivered to Calliope.

     

    (j) it
      shall
      perform in a reasonable time all other steps requested by Calliope to create
      and
      maintain in Calliope’s favor a valid perfected first Lien in all Collateral
      subject only to Permitted Liens.

     

    (k) it
      shall
      notify Calliope promptly and in any event within three (3) Business Days after
      obtaining knowledge thereof (i) of any event or circumstance that, to its
      knowledge, would cause Calliope to consider any then existing Account as no
      longer constituting an Eligible Account or an Eligible Credit Insured Account;
      (ii) of any material delay in its performance of any of its obligations to
      any
      Account Debtor; (iii) of any assertion by any Account Debtor of any material
      claims, offsets or counterclaims; (iv) of any allowances, credits and/or monies
      granted by it to any Account Debtor; (v) of all material adverse information
      relating to the financial condition of an Account Debtor; (vi) of any material
      return of goods; and (vii) of any loss, damage or destruction of any of the
      Collateral.

     

    (l) all
      Eligible Accounts and Eligible Credit Insured Accounts (i) represent complete
      bona fide transactions which require no further act under any circumstances
      on
      its part to make such Accounts payable by the Account Debtors, (ii) are not
      subject to any present, future contingent offsets or counterclaims, and (iii)
      do
      not represent bill and hold sales, consignment sales, guaranteed sales, sale
      or
      return or other similar understandings or obligations of any Affiliate or
      Subsidiary of such Company. It has not made, nor will it make, any agreement
      with any Account Debtor for any extension of time for the payment of any
      Account, any compromise or settlement for less than the full amount thereof,
      any
      release of any Account Debtor from liability therefor, or any deduction
      therefrom except a discount or allowance for prompt or early payment allowed
      by
      it in the ordinary course of its business consistent with historical practice
      and as previously disclosed to Calliope in writing.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    (m) it
      shall
      keep and maintain its Equipment in good operating condition, except for ordinary
      wear and tear, and shall make all necessary repairs and replacements thereof
      so
      that the value and operating efficiency shall at all times be maintained and
      preserved. It shall not permit any such items to become a Fixture to real estate
      or accessions to other personal property.

     

    (n) it
      shall
      maintain and keep all of its Books and Records concerning the Collateral at
      its
      executive offices listed in Schedule
      12(aa).

     

    (o) it
      shall
      maintain and keep the tangible Collateral at the addresses listed in
Schedule
      12(aa),
      provided, that it may change such locations or open a new location, provided
      that it provides Calliope at least thirty (30) days prior written notice of
      such
      changes or new location and (ii) prior to such change or opening of a new
      location where Collateral having a value of more than $50,000 will be located,
      it executes and delivers to Calliope such agreements deemed reasonably necessary
      or prudent by Calliope, including landlord agreements, mortgagee agreements
      and
      warehouse agreements, each in form and substance satisfactory to Calliope,
      to
      adequately protect and maintain Calliope’s security interest in such
      Collateral.

     

    (p) Schedule
      7(p)
      lists
      all banks and other financial institutions at which it maintains deposits and/or
      other accounts, and such Schedule correctly identifies the name, address and
      telephone number of each such depository, the name in which the account is
      held,
      a description of the purpose of the account, and the complete account number.
      It
      shall not establish any depository or other bank account with any financial
      institution (other than the accounts set forth on Schedule
      7(p))
      without
      Calliope’s prior written consent.

     

    8. Payment
      of Accounts.

     

    (a) Each
      Company will irrevocably direct all of its present and future Account Debtors
      and other Persons obligated to make payments constituting Collateral to make
      such payments directly to the lockboxes maintained by such Company (the
“Lockboxes”)
      with
      M&I Bank or such other financial institution accepted by Calliope in writing
      as may be selected by such Company (the “Lockbox
      Bank”)
      pursuant to the terms of the certain agreements among one or more Companies,
      Calliope and/or the Lockbox Bank. On or prior to the Closing Date, each Company
      shall and shall cause the Lockbox Bank to enter into all such documentation
      acceptable to Calliope pursuant to which, among other things, the Lockbox Bank
      agrees to: (a) sweep the Lockbox on a daily basis and deposit all checks
      received therein to an account designated by Calliope in writing and (b) comply
      only with the instructions or other directions of Calliope concerning the
      Lockbox. All of each Company’s invoices, account statements and other written or
      oral communications directing, instructing, demanding or requesting payment
      of
      any Account of any Company or any other amount constituting Collateral shall
      conspicuously direct that all payments be made to the Lockbox or such other
      address as Calliope may direct in writing. If, notwithstanding the instructions
      to Account Debtors, any Company receives any payments, such Company shall
      immediately remit such payments to Calliope in their original form with all
      necessary endorsements. Until so remitted, such Company shall hold all such
      payments in trust for and as the property of Calliope and shall not commingle
      such payments with any of its other funds or property.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    (b) At
      Calliope’s election, following the occurrence of an Event of Default which is
      continuing, Calliope may notify each Company’s Account Debtors of Calliope’s
      security interest in the Accounts, collect them directly and charge the
      collection costs and reasonable expenses thereof to Company’s and the Eligible
      Subsidiaries joint and several account.

     

    9. Collection
      and Maintenance of Collateral.

     

    (a) Calliope
      may verify each Company’s Accounts from time to time, but not more than three
      (3) times during the first three (3) fiscal quarters of any fiscal year, unless
      an Event of Default has occurred and is continuing or Calliope believes that
      such verification is necessary to preserve or protect the Collateral, utilizing
      an audit control company or any other agent of Calliope.

     

    (b) Proceeds
      of Accounts received by Calliope will be deemed received on the Business Day
      after Calliope’s receipt of such proceeds in good funds in dollars of the United
      States of America to an account designated by Calliope. Any amount received
      by
      Calliope after 12:00 noon (New York time) on any Business Day shall be
      deemed received on the next Business Day.

     

    (c) As
      Calliope receives the proceeds of Accounts of any Company, it shall
      (i) apply such proceeds, as required, to amounts outstanding under the
      Secured Revolving Note, and (ii) remit all such remaining proceeds (net of
      interest, fees and other amounts then due and owing to Calliope hereunder)
      to
      Company Agent (for the benefit of the applicable Companies) upon request (but
      no
      more often than twice a week). Notwithstanding the foregoing, following the
      occurrence and during the continuance of an Event of Default, Calliope, at
      its
      option, may apply such proceeds to the Obligations in such order as Calliope
      shall elect.

     

    10. Inspections
      and Appraisals.
      At all
      times during normal business hours, Calliope, and/or any agent of Calliope
      shall
      have the right to (a) have access to, visit, inspect, review, evaluate and
      make
      physical verification and appraisals of each Company’s properties and the
      Collateral, (b) inspect, audit and copy (or take originals if necessary) and
      make extracts from each Company’s Books and Records, including management
      letters prepared by the Accountants, and (c) discuss with each Company’s
      directors, principal officers, and independent accountants, each Company’s
      business, assets, liabilities, financial condition, results of operations and
      business prospects. So long as no Default or Event of Default has occurred
      and
      is continuing, such inspection and appraisal rights shall be limited to once
      per
      fiscal quarter. Each Company will deliver to Calliope any instrument necessary
      for Calliope to obtain records from any service bureau maintaining records
      for
      such Company. If any internally prepared financial information, including that
      required under this Section is unsatisfactory in any manner to Calliope,
      Calliope may request that the Accountants review the same.

     

    11. Financial
      Reporting.
      Company
      Agent will deliver, or cause to be delivered, to Calliope each of the following,
      which shall be in form and detail acceptable to Calliope:

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    (a) As
      soon
      as available, and in any event within one hundred four (104) days after the
      end
      of each fiscal year of the Parent, each Company’s audited financial statements
      with a report of independent certified public accountants of recognized standing
      selected by the Parent and acceptable to Calliope (the “Accountants”),
      which
      annual financial statements shall be without qualification and shall include
      each of the Parent’s and each of its Subsidiaries’ balance sheet as at the end
      of such fiscal year and the related statements of each of the Parent’s and each
      of its Subsidiaries’ income, retained earnings and cash flows for the fiscal
      year then ended, prepared on a consolidating and consolidated basis to include
      the Parent, each Subsidiary of the Parent and each of their respective
      affiliates, all in reasonable detail and prepared in accordance with GAAP,
      together with (i) if and when available, copies of any management letters
      prepared by the Accountants; and (ii) a certificate of the Parent’s President,
      Chief Executive Officer or Chief Financial Officer stating that such financial
      statements have been prepared in accordance with GAAP and whether or not such
      officer has knowledge of the occurrence of any Default or Event of Default
      hereunder and, if so, stating in reasonable detail the facts with respect
      thereto;

     

    (b) As
      soon
      as available and in any event within fifty (50) days after the end of each
      fiscal quarter that is not a fiscal year end of the Parent, an
      unaudited/internal balance sheet and statements of income, retained earnings
      and
      cash flows of each of the Parent’s and each of its Subsidiaries’ as at the end
      of and for such quarter and for the year to date period then ended, prepared
      on
      a consolidating and consolidated basis to include the Parent, each Subsidiary
      of
      the Parent and each of their respective affiliates, in reasonable detail and
      stating in comparative form the figures for the corresponding date and periods
      in the previous year, all prepared in accordance with GAAP, subject to year-end
      adjustments and accompanied by a certificate of the Parent’s President, Chief
      Executive Officer or Chief Financial Officer, stating (i) that such financial
      statements have been prepared in accordance with GAAP, subject to year-end
      audit
      adjustments, and (ii) whether or not such officer has knowledge of the
      occurrence of any Default or Event of Default hereunder not theretofore reported
      and remedied and, if so, stating in reasonable detail the facts with respect
      thereto;

     

    (c) As
      soon
      as available and in any event within fifteen (15) days after the end of each
      calendar month, an unaudited/internal balance sheet and statements of income,
      retained earnings and cash flows of each of the Parent and its Subsidiaries
      as
      at the end of and for such month and for the year to date period then ended,
      prepared on a consolidating and consolidated basis to include the Parent, each
      Subsidiary of the Parent and each of their respective affiliates, in reasonable
      detail and stating in comparative form the figures for the corresponding date
      and periods in the previous year, all prepared in accordance with GAAP, subject
      to year-end adjustments and accompanied by a certificate of the Parent’s
      President, Chief Executive Officer or Chief Financial Officer, stating (i)
      that
      such financial statements have been prepared in accordance with GAAP, subject
      to
      year-end audit adjustments, and (ii) whether or not such officer has knowledge
      of the occurrence of any Default or Event of Default hereunder not theretofore
      reported and remedied and, if so, stating in reasonable detail the facts with
      respect thereto;

     

    (d) Within
      fifteen (15) days after the end of each month (or more frequently if Calliope
      so
      requests), agings of each Company’s Accounts, unaudited trial balances and their
      accounts payable and a calculation of each Company’s Accounts, Eligible
      Accounts, Eligible Credit Insured Accounts and Eligible Purchase Orders,
      provided, however, that if Calliope shall request the foregoing information
      more
      often than as set forth in the immediately preceding clause, each Company shall
      have fifteen (15) days from each such request to comply with Calliope’s
      demand;

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    (e) Promptly
      after (i) the filing thereof, copies of the Parent’s most recent registration
      statements and annual, quarterly, monthly or other regular reports which the
      Parent files with the Securities and Exchange Commission (the “SEC”),
      and
      (ii) the issuance thereof, copies of such financial statements, reports and
      proxy statements as the Parent shall send to its stockholders;

     

    (f) Within
      fifteen (15) days following the end of each month (or more frequently if
      Calliope so requests), a list of unpaid Accounts relating to Purchase Order
      Invoices as of the last day of the proceeding month; and

     

    (g) Together
      with each delivery of any financial statement pursuant to Section 11(a), 11(b)
      or 11(c), a Compliance Certificate duly executed by the President, Chief
      Executive Officer or Chief Financial Officer of the Parent that, among other
      things, (i) shows in reasonable detail the calculations used in determining
      the
      Consolidated Leverage Ratio, (ii) demonstrates compliance with each financial
      covenant contained in Section 13(x) that is tested at least on a quarterly
      basis
      and (iii) states that no Default or Event of Default is continuing as of the
      date of delivery of such Compliance Certificate or, if a Default or Event of
      Default is continuing, states the nature thereof and the action that the
      Companies propose to take with respect thereto.

     

    (h) The
      Parent shall deliver, or cause the applicable Subsidiary of the Parent to
      deliver, such other information as the Purchaser shall reasonably
      request.

     

    12. Additional
      Representations and Warranties.
      Each
      Company hereby represents and warrants to Calliope as follows:

     

    (a) Organization,
      Good Standing and Qualification.
      It and
      each of its Subsidiaries is a corporation, partnership or limited liability
      company, as the case may be, duly organized, validly existing and in good
      standing under the laws of its jurisdiction of organization. It and each of
      its
      Subsidiaries has the corporate, limited liability company or partnership, as
      the
      case may be, power and authority to own and operate its properties and assets
      and, insofar as it is or shall be a party thereto, to (i) execute and deliver
      this Agreement and the Ancillary Agreements, (ii) to issue and sell the Notes
      and the shares of Common Stock issuable upon conversion of the Secured
      Convertible Term Note (the “Note
      Shares”),
      (iii)
      to issue and sell the Warrants and the shares of Common Stock issuable upon
      exercise of the Warrants (the “Warrant
      Shares”),
      and
      to (iv) carry out the provisions of this Agreement and the Ancillary Agreements
      and to carry on its business as presently conducted. It and each of its
      Subsidiaries is duly qualified and is authorized to do business and is in good
      standing as a foreign corporation, partnership or limited liability company,
      as
      the case may be, in all jurisdictions in which the nature or location of its
      activities and of its properties (both owned and leased) makes such
      qualification necessary, except for those jurisdictions in which failure to
      do
      so has not had, or could not reasonably be expected to have, individually or
      in
      the aggregate, a Material Adverse Effect.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    (b) Subsidiaries.
      Each of
      its direct and indirect Subsidiaries, the direct owner of each such Subsidiary
      and its percentage ownership thereof, is set forth on Schedule
      12(b).

     

    (c) Capitalization;
      Voting Rights.

     

    (i) The
      authorized capital stock of the Parent, as of the date hereof consists of
      210,000,000 shares, of which (A) 200,000,000 are shares of Common Stock, par
      value $0.0001 per share, 46,276,946 shares of which are issued and outstanding
      and (B) 10,000,000 are shares of preferred stock, none of which are issued
      and
      outstanding. The authorized, issued and outstanding capital stock of each
      Subsidiary of each Company is set forth on Schedule
      12(c).

     

    (ii) Except
      as
      disclosed on Schedule
      12(c),
      other
      than: (i) the shares reserved for issuance under the Parent’s stock option
      plans; and (ii) shares which may be issued pursuant to this Agreement and the
      Ancillary Agreements, there are no outstanding options, warrants, rights
      (including conversion or preemptive rights and rights of first refusal), proxy
      or stockholder agreements, or arrangements or agreements of any kind for the
      purchase or acquisition from the Parent of any of its securities. Except as
      disclosed on Schedule
      12(c),
      neither
      the offer, issuance or sale of any of the Notes or the Warrants or the issuance
      of any of the Note Shares or the Warrant Shares, nor the consummation of any
      transaction contemplated hereby will result in a change in the price or number
      of any securities of the Parent outstanding, under anti-dilution or other
      similar provisions contained in or affecting any such securities.

     

    (iii) All
      issued and outstanding shares of the Parent’s Common Stock: (i) have been duly
      authorized and validly issued and are fully paid and non-assessable; and
      (ii) were issued in compliance with all applicable state and federal laws
      concerning the issuance of securities.

     

    (iv) The
      rights, preferences, privileges and restrictions of the shares of the Common
      Stock are as stated in the Parent’s Certificate of Incorporation (the
“Charter”).
      The
      Note Shares and the Warrant Shares have been duly and validly reserved for
      issuance. When issued in compliance with the provisions of this Agreement and
      the Parent’s Charter, the Securities will be validly issued, fully paid and
      nonassessable, and will be free of any liens or encumbrances; provided,
      however,
      that
      the Securities may be subject to restrictions on transfer under state and/or
      federal securities laws as set forth herein or as otherwise required by such
      laws at the time a transfer is proposed.

     

    (d) Authorization;
      Binding Obligations.
      All
      corporate, partnership or limited liability company, as the case may be, action
      on its and its Subsidiaries’ part (including their respective officers and
      directors) necessary for the authorization of this Agreement and the Ancillary
      Agreements, the performance of all of its and its Subsidiaries’ obligations
      hereunder and under the Ancillary Agreements on the Closing Date and, the
      authorization, issuance and delivery of the Notes and the Warrant has been
      taken
      or will be taken prior to the Closing Date. This Agreement and the Ancillary
      Agreements, when executed and delivered and to the extent it is a party thereto,
      will be its and its Subsidiaries’ valid and binding obligations enforceable
      against each such Person in accordance with their terms,
      except:

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    (i) as
      limited by applicable bankruptcy, insolvency, reorganization, moratorium or
      other laws of general application affecting enforcement of creditors’ rights;
      and

     

    (ii) general
      principles of equity that restrict the availability of equitable or legal
      remedies.

     

    The
      issuance of the Notes and the subsequent conversion of the Secured Convertible
      Term Note into Note Shares are not and will not be subject to any preemptive
      rights or rights of first refusal that have not been properly waived or complied
      with. The issuance of the Warrants and the subsequent exercise of the Warrants
      for Warrant Shares are not and will not be subject to any preemptive rights
      or
      rights of first refusal that have not been properly waived or complied
      with.

     

    (e) Liabilities;
      Solvency.
      

     

    (i) Neither
      it nor any of its Subsidiaries has any liabilities, except current liabilities
      incurred in the ordinary course of business and liabilities disclosed in any
      Exchange Act Filings.

     

    (ii) Both
      before and after giving effect to (a) the Loans incurred on the Closing Date
      or
      such other date as Loans requested hereunder are made or incurred, (b) the
      disbursement of the proceeds of, or the assumption of the liability in respect
      of, such Loans pursuant to the instructions or agreement of any Company and
      (c)
      the payment and accrual of all transaction costs in connection with the
      foregoing, each Company and each Subsidiary of each Company, is and will be,
      Solvent.

     

    (f) Agreements;
      Action.
      Except
      as set forth on Schedule
      12(f)
      or as
      disclosed in any Exchange Act Filings:

     

    (i) There
      are
      no agreements, understandings, instruments, contracts, proposed transactions,
      judgments, orders, writs or decrees to which it or any of its Subsidiaries
      is a
      party or to its knowledge by which it is bound which may involve: (i)
      obligations (contingent or otherwise) of, or payments to, it or any of its
      Subsidiaries in excess of $50,000 (other than obligations of, or payments to,
      it
      or any of its Subsidiaries arising from purchase or sale agreements entered
      into
      in the ordinary course of business); or (ii) the transfer or license of any
      patent, copyright, trade secret or other proprietary right to or from it (other
      than licenses arising from the purchase of “off the shelf” or other standard
      products); or (iii) provisions restricting the development, manufacture or
      distribution of its or any of its Subsidiaries’ products or services; or (iv)
      indemnification by it or any of its Subsidiaries with respect to infringements
      of proprietary rights.

     

    (ii) Since
      June 30, 2007 (the “Balance
      Sheet Date”),
      neither it nor any of its Subsidiaries has: (i) declared or paid any dividends,
      or authorized or made any distribution upon or with respect to any class or
      series of its capital stock; (ii) incurred any indebtedness for money borrowed
      or any other liabilities (other than ordinary course obligations) individually
      in excess of $50,000 or, in the case of indebtedness and/or liabilities
      individually less than $50,000, in excess of $100,000 in the aggregate; (iii)
      made any loans or advances to any Person not in excess, individually or in
      the
      aggregate, of $100,000, other than ordinary advances for travel expenses; or
      (iv) sold, exchanged or otherwise disposed of any of its assets or rights,
      other
      than the sale of its Inventory or obsolete equipment in the ordinary course
      of
      business.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    (iii) For
      the
      purposes of subsections (i) and (ii) of this Section 12(f), all indebtedness,
      liabilities, agreements, understandings, instruments, contracts and proposed
      transactions involving the same Person (including Persons it or any of its
      applicable Subsidiaries has reason to believe are affiliated therewith or with
      any Subsidiary thereof) shall be aggregated for the purpose of meeting the
      individual minimum dollar amounts of such subsections.

     

    (iv) the
      Parent maintains disclosure controls and procedures (“Disclosure
      Controls”)
      designed to ensure that information required to be disclosed by the Parent
      in
      the reports that it files or submits under the Exchange Act is recorded,
      processed, summarized, and reported, within the time periods specified in the
      rules and forms of the SEC.

     

    (v) The
      Parent makes and keeps books, records, and accounts, that, in reasonable detail,
      accurately and fairly reflect the transactions and dispositions of its assets.
      It maintains internal control over financial reporting (“Financial
      Reporting Controls”)
      designed by, or under the supervision of, its principal executive and principal
      financial officers, and effected by its board of directors, management, and
      other personnel, to provide reasonable assurance regarding the reliability
      of
      financial reporting and the preparation of financial statements for external
      purposes in accordance with GAAP, including that:

     

    (1) transactions
      are executed in accordance with management’s general or specific
      authorization;

     

    (2) unauthorized
      acquisition, use, or disposition of the Parent’s assets that could have a
      material effect on the financial statements are prevented or timely
      detected;

     

    (3) transactions
      are recorded as necessary to permit preparation of financial statements in
      accordance with GAAP, and that its receipts and expenditures are being made
      only
      in accordance with authorizations of the Parent’s management and board of
      directors;

     

    (4) transactions
      are recorded as necessary to maintain accountability for assets;
      and

     

    (5) the
      recorded accountability for assets is compared with the existing assets at
      reasonable intervals, and appropriate action is taken with respect to any
      differences.

     

    (vi) There
      is
      no weakness in any of its Disclosure Controls or Financial Reporting Controls
      that is required to be disclosed in any of the Exchange Act Filings, except
      as
      so disclosed.

     

    (g) Obligations
      to Related Parties.
      Except
      as set forth on Schedule
      12(g),
      neither
      it nor any of its Subsidiaries has any obligations to their respective officers,
      directors, stockholders or employees other than:

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    (i) for
      payment of salary for services rendered and for bonus payments;

     

    (ii) reimbursement
      for reasonable expenses incurred on its or its Subsidiaries’
behalf;

     

    (iii) for
      other
      standard employee benefits made generally available to all employees (including
      stock option agreements outstanding under any stock option plan approved by
      its
      and its Subsidiaries’ Board of Directors, as applicable); and

     

    (iv) obligations
      listed in its and each of its Subsidiary’s financial statements or disclosed in
      any of the Parent’s Exchange Act Filings.

     

    Except
      as
      described above or set forth on Schedule
      12(g),
      none of
      its officers, directors or, to the best of its knowledge, key employees or
      stockholders, any of its Subsidiaries or any members of their immediate
      families, are indebted to it or any of its Subsidiaries, individually or in
      the
      aggregate, in excess of $50,000 or have any direct or indirect ownership
      interest in any Person with which it or any of its Subsidiaries is affiliated
      or
      with which it or any of its Subsidiaries has a business relationship, or any
      Person which competes with it or any of its Subsidiaries, other than passive
      investments in publicly traded companies (representing less than one percent
      (1%) of such company) which may compete with it or any of its Subsidiaries.
      Except as described above, none of its officers, directors or stockholders,
      or
      any member of their immediate families, is, directly or indirectly, interested
      in any material contract with it or any of its Subsidiaries and no agreements,
      understandings or proposed transactions are contemplated between it or any
      of
      its Subsidiaries and any such Person. Except as set forth on Schedule
      12(g),
      neither
      it nor any of its Subsidiaries is a guarantor or indemnitor of any indebtedness
      of any other Person.

     

    (h) Changes.
      Since
      the Balance Sheet Date, except as disclosed in any Exchange Act Filing or in
      any
      Schedule to this Agreement or to any of the Ancillary Agreements, there has
      not
      been:

     

    (i) any
      change in its or any of its Subsidiaries’ business, assets, liabilities,
      condition (financial or otherwise), properties, operations or prospects, which,
      individually or in the aggregate, has had, or could reasonably be expected
      to
      have, a Material Adverse Effect;

     

    (ii) any
      resignation or termination of any of its or its Subsidiaries’ officers, key
      employees or groups of employees;

     

    (iii) any
      material change, except in the ordinary course of business, in its or any of
      its
      Subsidiaries’ contingent obligations by way of guaranty, endorsement, indemnity,
      warranty or otherwise;

     

    (iv) any
      damage, destruction or loss, whether or not covered by insurance, which has
      had,
      or could reasonably be expected to have, individually or in the aggregate,
      a
      Material Adverse Effect;

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    (v) any
      waiver by it or any of its Subsidiaries of a valuable right or of a material
      debt owed to it;

     

    (vi) any
      direct or indirect material loans made by it or any of its Subsidiaries to
      any
      of its or any of its Subsidiaries’ stockholders, employees, officers or
      directors, other than advances made in the ordinary course of
      business;

     

    (vii) any
      material change in any compensation arrangement or agreement with any employee,
      officer, director or stockholder;

     

    (viii) any
      declaration or payment of any dividend or other distribution of its or any
      of
      its Subsidiaries’ assets;

     

    (ix) any
      labor
      organization activity related to it or any of its Subsidiaries;

     

    (x) any
      debt,
      obligation or liability incurred, assumed or guaranteed by it or any of its
      Subsidiaries, except those for immaterial amounts and for current liabilities
      incurred in the ordinary course of business;

     

    (xi) any
      sale,
      assignment or transfer of any Intellectual Property or other intangible
      assets;

     

    (xii) any
      change in any material agreement to which it or any of its Subsidiaries is
      a
      party or by which either it or any of its Subsidiaries is bound which, either
      individually or in the aggregate, has had, or could reasonably be expected
      to
      have, individually or in the aggregate, a Material Adverse Effect;

     

    (xiii) any
      other
      event or condition of any character that, either individually or in the
      aggregate, has had, or could reasonably be expected to have, individually or
      in
      the aggregate, a Material Adverse Effect; or

     

    (xiv) any
      arrangement or commitment by it or any of its Subsidiaries to do any of the
      acts
      described in subsection (i) through (xiii) of this Section 12(h).

     

    (i) Title
      to Properties and Assets; Liens, Etc.
      Except
      as set forth on Schedule 12(i),
      it and
      each of its Subsidiaries has good and marketable title to their respective
      properties and assets, and good title to its leasehold interests, in each case
      subject to no Lien, other than Permitted Liens.

     

    All
      facilities, Equipment, Fixtures, vehicles and other properties owned, leased
      or
      used by it or any of its Subsidiaries are in good operating condition and repair
      and are reasonably fit and usable for the purposes for which they are being
      used. Except as set forth on Schedule
      12(i),
      it and
      each of its Subsidiaries is in compliance with all material terms of each lease
      to which it is a party or is otherwise bound.

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    (j) Intellectual
      Property.

     

    (i) It
      and
      each of its Subsidiaries owns or possesses sufficient legal rights to all
      Intellectual Property necessary for their respective businesses as now conducted
      and, to its knowledge as presently proposed to be conducted, without any known
      infringement of the rights of others. There are no outstanding options, licenses
      or agreements of any kind relating to its or any of its Subsidiary’s
      Intellectual Property, nor is it or any of its Subsidiaries bound by or a party
      to any options, licenses or agreements of any kind with respect to the
      Intellectual Property of any other Person other than such licenses or agreements
      arising from the purchase of “off the shelf” or standard products.

     

    (ii) Neither
      it nor any of its Subsidiaries has received any communications alleging that
      it
      or any of its Subsidiaries has violated any of the Intellectual Property or
      other proprietary rights of any other Person, nor is it or any of its
      Subsidiaries aware of any basis therefor.

     

    (iii) Neither
      it nor any of its Subsidiaries believes it is or will be necessary to utilize
      any inventions, trade secrets or proprietary information of any of its employees
      made prior to their employment by it or any of its Subsidiaries, except for
      inventions, trade secrets or proprietary information that have been rightfully
      assigned to it or any of its Subsidiaries.

     

    (k) Compliance
      with Other Instruments.
      Neither
      it nor any of its Subsidiaries is in violation or default of (x) any term of
      its
      Charter or Bylaws, or (y) any provision of any indebtedness, mortgage,
      indenture, contract, agreement or instrument to which it is party or by which
      it
      is bound or of any judgment, decree, order or writ, which violation or default,
      in the case of this clause (y), has had, or could reasonably be expected to
      have, either individually or in the aggregate, a Material Adverse Effect. The
      execution, delivery and performance of and compliance with this Agreement and
      the Ancillary Agreements to which it is a party, and the issuance of the Notes
      and the other Securities each pursuant hereto and thereto, will not, with or
      without the passage of time or giving of notice, result in any such material
      violation, or be in conflict with or constitute a default under any such term
      or
      provision, or result in the creation of any Lien upon any of its or any of
      its
      Subsidiary’s properties or assets or the suspension, revocation, impairment,
      forfeiture or nonrenewal of any permit, license, authorization or approval
      applicable to it or any of its Subsidiaries, their businesses or operations
      or
      any of their assets or properties.

     

    (l) Litigation.
      Except
      as set forth on Schedule
      12(l),
      there
      is no action, suit, proceeding or investigation pending or, to its knowledge,
      currently threatened against it or any of its Subsidiaries that prevents it
      or
      any of its Subsidiaries from entering into this Agreement or the Ancillary
      Agreements, or from consummating the transactions contemplated hereby or
      thereby, or which has had, or could reasonably be expected to have, either
      individually or in the aggregate, a Material Adverse Effect, or could result
      in
      any change in its or any of its Subsidiaries’ current equity ownership, nor is
      it aware that there is any basis to assert any of the foregoing. Neither it
      nor
      any of its Subsidiaries is a party to or subject to the provisions of any order,
      writ, injunction, judgment or decree of any court or government agency or
      instrumentality. There is no action, suit, proceeding or investigation by it
      or
      any of its Subsidiaries currently pending or which it or any of its Subsidiaries
      intends to initiate.

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (m) Tax
      Returns and Payments.
      It and
      each of its Subsidiaries has timely filed all tax returns (federal, state and
      local) required to be filed by it. All taxes shown to be due and payable on
      such
      returns, any assessments imposed, and all other taxes due and payable by it
      and
      each of its Subsidiaries on or before the Closing Date, have been paid or will
      be paid prior to the time they become delinquent. Except as set forth on
Schedule
      12(m),
      neither
      it nor any of its Subsidiaries has been advised:

     

    (i) that
      any
      of its returns, federal, state or other, have been or are being audited as
      of
      the date hereof; or

     

    (ii) of
      any
      adjustment, deficiency, assessment or court decision in respect of its federal,
      state or other taxes.

     

    Neither
      it nor any of its Subsidiaries has any knowledge of any liability of any tax
      to
      be imposed upon its properties or assets as of the date of this Agreement that
      is not adequately provided for.

     

    (n) Employees.
      Except
      as set forth on Schedule
      12(n),
      neither
      it nor any of its Subsidiaries has any collective bargaining agreements with
      any
      of its employees. There is no labor union organizing activity pending or, to
      its
      knowledge, threatened with respect to it or any of its Subsidiaries. Except
      as
      disclosed in the Exchange Act Filings or on Schedule
      12(n),
      neither
      it nor any of its Subsidiaries is a party to or bound by any currently effective
      employment contract, deferred compensation arrangement, bonus plan, incentive
      plan, profit sharing plan, retirement agreement or other employee compensation
      plan or agreement. To its knowledge, none of its or any of its Subsidiaries’
employees, nor any consultant with whom it or any of its Subsidiaries has
      contracted, is in violation of any term of any employment contract, proprietary
      information agreement or any other agreement relating to the right of any such
      individual to be employed by, or to contract with, it or any of its Subsidiaries
      because of the nature of the business to be conducted by it or any of its
      Subsidiaries; and to its knowledge the continued employment by it and its
      Subsidiaries of their present employees, and the performance of its and its
      Subsidiaries contracts with its independent contractors, will not result in
      any
      such violation. Neither it nor any of its Subsidiaries is aware that any of
      its
      or any of its Subsidiaries’ employees is obligated under any contract (including
      licenses, covenants or commitments of any nature) or other agreement, or subject
      to any judgment, decree or order of any court or administrative agency that
      would interfere with their duties to it or any of its Subsidiaries. Neither
      it
      nor any of its Subsidiaries has received any notice alleging that any such
      violation has occurred. Except for employees who have a current effective
      employment agreement with it or any of its Subsidiaries, none of its or any
      of
      its Subsidiaries’ employees has been granted the right to continued employment
      by it or any of its Subsidiaries or to any material compensation following
      termination of employment with it or any of its Subsidiaries. Except as set
      forth on Schedule 12(n),
      neither
      it nor any of its Subsidiaries is aware that any officer, key employee or group
      of employees intends to terminate his, her or their employment with it or any
      of
      its Subsidiaries, as applicable, nor does it or any of its Subsidiaries have
      a
      present intention to terminate the employment of any officer, key employee
      or
      group of employees.

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    (o) Registration
      Rights and Voting Rights.
      Except
      as set forth on Schedule 12(o)
      and
      except as disclosed in Exchange Act Filings, neither it nor any of its
      Subsidiaries is presently under any obligation, and neither it nor any of its
      Subsidiaries has granted any rights, to register any of its or any of its
      Subsidiaries’ presently outstanding securities or any of its securities that may
      hereafter be issued. Except as set forth on Schedule 12(o)
      and
      except as disclosed in Exchange Act Filings, to its knowledge, none of its
      or
      any of its Subsidiaries’ stockholders has entered into any agreement with
      respect to its or any of its Subsidiaries’ voting of equity
      securities.

     

    (p) Compliance
      with Laws; Permits.
      Neither
      it nor any of its Subsidiaries is in violation of the Sarbanes-Oxley Act of
      2002
      or any SEC related regulation or rule or any rule of the Principal Market
      promulgated thereunder or any other applicable statute, rule, regulation, order
      or restriction of any domestic or foreign government or any instrumentality
      or
      agency thereof in respect of the conduct of its business or the ownership of
      its
      properties which has had, or could reasonably be expected to have, either
      individually or in the aggregate, a Material Adverse Effect. No governmental
      orders, permissions, consents, approvals or authorizations are required to
      be
      obtained and no registrations or declarations are required to be filed in
      connection with the execution and delivery of this Agreement or any Ancillary
      Agreement and the issuance of any of the Securities, except such as have been
      duly and validly obtained or filed, or with respect to any filings that must
      be
      made after the Closing Date, as will be filed in a timely manner. It and each
      of
      its Subsidiaries has all material franchises, permits, licenses and any similar
      authority necessary for the conduct of its business as now being conducted
      by
      it, the lack of which could, either individually or in the aggregate, reasonably
      be expected to have a Material Adverse Effect.

     

    (q) Environmental
      and Safety Laws.
      Neither
      it nor any of its Subsidiaries is in violation of any applicable statute, law
      or
      regulation relating to the environment or occupational health and safety, and
      to
      its knowledge, no material expenditures are or will be required in order to
      comply with any such existing statute, law or regulation. Except as set forth
      on
Schedule
      12(q),
      no
      Hazardous Materials (as defined below) are used or have been used, stored,
      or
      disposed of by it or any of its Subsidiaries or, to its knowledge, by any other
      Person on any property owned, leased or used by it or any of its Subsidiaries.
      For the purposes of the preceding sentence, “Hazardous
      Materials”
shall
      mean:

     

    (i) materials
      which are listed or otherwise defined as “hazardous” or “toxic” under any
      applicable local, state, federal and/or foreign laws and regulations that govern
      the existence and/or remedy of contamination on property, the protection of
      the
      environment from contamination, the control of hazardous wastes, or other
      activities involving hazardous substances, including building materials;
      and

     

    (ii) any
      petroleum products or nuclear materials.

     

    (r) Valid
      Offering.
      Assuming the accuracy of the representations and warranties of Calliope
      contained in this Agreement, the offer and issuance of the Securities will
      be
      exempt from the registration requirements of the Securities Act of 1933, as
      amended (the “Securities
      Act”),
      and
      will have been registered or qualified (or are exempt from registration and
      qualification) under the registration, permit or qualification requirements
      of
      all applicable state securities laws.

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (s) Full
      Disclosure.
      It and
      each of its Subsidiaries has provided Calliope with all information requested
      by
      Calliope in connection with Calliope’s decision to enter into this Agreement.
      Neither this Agreement, the Ancillary Agreements nor the exhibits and schedules
      hereto and thereto nor any other document delivered by it or any of its
      Subsidiaries to Calliope or its attorneys or agents in connection herewith
      or
      therewith or with the transactions contemplated hereby or thereby, contain
      any
      untrue statement of a material fact nor omit to state a material fact necessary
      in order to make the statements contained herein or therein, in light of the
      circumstances in which they are made, not misleading. Any financial projections
      and other estimates provided to Calliope by it or any of its Subsidiaries were
      prepared in good faith based on assumptions believed to be reasonable at the
      time.

     

    (t) Insurance.
      It and
      each of its Subsidiaries has general commercial, product liability, fire and
      casualty insurance policies with coverages which it believes are customary
      for
      companies similarly situated to it and its Subsidiaries in the same or similar
      business.

     

    (u) SEC
      Reports and Financial Statements.
      Except
      as set forth on Schedule 12(u),
      it and
      each of its Subsidiaries has filed all proxy statements, reports and other
      documents required to be filed by it under the Exchange Act. The Parent has
      furnished Calliope with copies of: (i) its Annual Report on Form 10-KSB for
      its
      fiscal year ended December 31, 2006; and (ii) its Quarterly Reports on Form
      10-QSB for its fiscal quarters ended March 31, 2007 and June 30, 2007, and
      the
      Form 8-K filings which it has made during its fiscal year 2007 to date
      (collectively, the “SEC
      Reports”).
      Except as set forth on Schedule
      12(u),
      each
      SEC Report was, at the time of its filing, in substantial compliance with the
      requirements of its respective form and none of the SEC Reports, nor the
      financial statements (and the notes thereto) included in the SEC Reports, as
      of
      their respective filing dates, contained any untrue statement of a material
      fact
      or omitted to state a material fact required to be stated therein or necessary
      to make the statements therein, in light of the circumstances under which they
      were made, not misleading. Such financial statements have been prepared in
      accordance with GAAP applied on a consistent basis during the periods involved
      (except (i) as may be otherwise indicated in such financial statements or the
      notes thereto or (ii) in the case of unaudited interim statements, to the extent
      they may not include footnotes or may be condensed) and fairly present in all
      material respects the financial condition, the results of operations and cash
      flows of the Parent and its Subsidiaries, on a consolidated basis, as of, and
      for, the periods presented in each such SEC Report.

     

    (v) Listing.
      The
      Parent’s Common Stock is listed or quoted, as applicable, on the Principal
      Market and satisfies all requirements for the continuation of such listing
      or
      quotation, as applicable, and the Parent shall do all things necessary for
      the
      continuation of such listing or quotation, as applicable. The Parent has not
      received any notice that its Common Stock will be delisted from, or no longer
      quoted on, as applicable, the Principal Market or that its Common Stock does
      not
      meet all requirements for such listing or quotation, as
      applicable.

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    (w) No
      Integrated Offering.
      Neither
      it, nor any of its Subsidiaries nor any of its Affiliates, nor any Person acting
      on its or their behalf, has directly or indirectly made any offers or sales
      of
      any security or solicited any offers to buy any security under circumstances
      that would cause the offering of the Securities pursuant to this Agreement
      or
      any Ancillary Agreement to be integrated with prior offerings by it for purposes
      of the Securities Act which would prevent it from issuing the Securities
      pursuant to Rule 506 under the Securities Act, or any applicable
      exchange-related stockholder approval provisions, nor will it or any of its
      Affiliates or Subsidiaries take any action or steps that would cause the
      offering of the Securities to be integrated with other offerings.

     

    (x) Stop
      Transfer.
      The
      Securities are restricted securities as of the date of this Agreement. Neither
      it nor any of its Subsidiaries will issue any stop transfer order or other
      order
      impeding the sale and delivery of any of the Securities at such time as the
      Securities are registered for public sale or an exemption from registration
      is
      available, except as required by state and federal securities laws.

     

    (y) Dilution.
      It
      specifically acknowledges that the Parent’s obligation to issue the shares of
      Common Stock upon conversion of the Secured Convertible Term Note and exercise
      of the Warrants is binding upon the Parent and enforceable regardless of the
      dilution such issuance may have on the ownership interests of other shareholders
      of the Parent.

     

    (z) Patriot
      Act.
      It
      certifies that, to the best of its knowledge, neither it nor any of its
      Subsidiaries has been designated, nor is or shall be owned or controlled, by
      a
“suspected terrorist” as defined in Executive Order 13224. It hereby
      acknowledges that Calliope seeks to comply with all applicable laws concerning
      money laundering and related activities. In furtherance of those efforts, it
      hereby represents, warrants and covenants that: (i) none of the cash or property
      that it or any of its Subsidiaries will pay or will contribute to Calliope
      has
      been or shall be derived from, or related to, any activity that is deemed
      criminal under United States law; and (ii) no contribution or payment by it
      or
      any of its Subsidiaries to Calliope, to the extent that they are within its
      or
      any such Subsidiary’s control shall cause Calliope to be in violation of the
      United States Bank Secrecy Act, the United States International Money Laundering
      Control Act of 1986 or the United States International Money Laundering
      Abatement and Anti-Terrorist Financing Act of 2001. It shall promptly notify
      Calliope if any of these representations, warranties and covenants ceases to
      be
      true and accurate regarding it or any of its Subsidiaries. It shall provide
      Calliope with any additional information regarding it and each Subsidiary
      thereof that Calliope deems necessary or convenient to ensure compliance with
      all applicable laws concerning money laundering and similar activities. It
      understands and agrees that if at any time it is discovered that any of the
      foregoing representations, warranties and covenants are incorrect, or if
      otherwise required by applicable law or regulation related to money laundering
      or similar activities, Calliope may undertake appropriate actions to ensure
      compliance with applicable law or regulation, including but not limited to
      segregation and/or redemption of Calliope’s investment in it. It further
      understands that Calliope may release confidential information about it and
      its
      Subsidiaries and, if applicable, any underlying beneficial owners, to proper
      authorities if Calliope, in its sole discretion, determines that it is in the
      best interests of Calliope in light of relevant rules and regulations under
      the
      laws set forth in subsection (ii) above.

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    (aa) Company
      Name; Locations of Offices, Records and Collateral.
      Schedule 12(aa)
      sets
      forth each Company’s name as it appears in official filings in the state of its
      organization, the type of entity of each Company, the organizational
      identification number issued by each Company’s state of organization or a
      statement that no such number has been issued, each Company’s state of
      organization, and the location of each Company’s chief executive office,
      corporate offices, warehouses, other locations of Collateral and locations
      where
      records with respect to Collateral are kept (including in each case the county
      of such locations) and, except as set forth in such Schedule
      12(aa),
      such
      locations have not changed during the preceding twelve months. As of the Closing
      Date, during the prior five years, except as set forth in Schedule
      12(aa),
      no
      Company has been known as or conducted business in any other name (including
      trade names). Each Company has only one state of organization.

     

    (bb) ERISA.
      Based
      upon the Employee Retirement Income Security Act of 1974 (“ERISA”),
      and
      the regulations and published interpretations thereunder: (i) neither it nor
      any
      of its Subsidiaries has engaged in any Prohibited Transactions (as defined
      in
      Section 406 of ERISA and Section 4975 of the Code); (ii) it and each of its
      Subsidiaries has met all applicable minimum funding requirements under Section
      302 of ERISA in respect of its plans; (iii) neither it nor any of its
      Subsidiaries has any knowledge of any event or occurrence which would cause
      the
      Pension Benefit Guaranty Corporation to institute proceedings under Title IV
      of
      ERISA to terminate any employee benefit plan(s); (iv) neither it nor any of
      its
      Subsidiaries has any fiduciary responsibility for investments with respect
      to
      any plan existing for the benefit of persons other than its or such Subsidiary’s
      employees; and (v) neither it nor any of its Subsidiaries has withdrawn,
      completely or partially, from any multi-employer pension plan so as to incur
      liability under the Multiemployer Pension Plan Amendments Act of
      1980.

     

    (cc) Investor
      First Refusal Rights.
      All
      Investor First Refusal Rights and all other similar rights granted to any Person
      are as set forth on Schedule
      12(cc)
      attached
      hereto. An RFO Notice (as defined in the SPA) has been sent by the Parent to
      each Qualifying Investor (as defined in the SPA) in accordance and in compliance
      with the terms of the SPA. Each Qualifying Investor has either waived in writing
      its Investor First Refusal Rights with respect to the transactions contemplated
      by this Agreement or waived such Investor First Refusal Rights as a result
      of
      such Qualifying Investor not electing to exercise such rights within the
      requisite time period set forth in the SPA.

     

    (dd) ProLink
      UK.
      ProLink
      UK does not engage in any business of a material nature or own any
      assets.

     

    13. Covenants.
      Each
      Company, as applicable, covenants and agrees with Calliope as
      follows:

     

    (a) Stop-Orders.
      The
      Parent shall advise Calliope, promptly after it receives notice of issuance
      by
      the SEC, any state securities commission or any other regulatory authority
      of
      any stop order or of any order preventing or suspending any offering of any
      securities of the Parent, or of the suspension of the qualification of the
      Common Stock of the Parent for offering or sale in any jurisdiction, or the
      initiation of any proceeding for any such purpose.

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    (b) Listing.
      The
      Parent shall promptly secure the listing or quotation, as applicable, of the
      shares of Common Stock issuable upon conversion of the Secured Convertible
      Term
      Note and exercise of the Warrants on the Principal Market upon which shares
      of
      Common Stock are listed or quoted, as applicable, (subject to official notice
      of
      issuance) and shall maintain such listing or quotation, as applicable, so long
      as any other shares of Common Stock shall be so listed or quoted, as applicable.
      The Parent shall maintain the listing or quotation, as applicable, of its Common
      Stock on the Principal Market, and will comply in all material respects with
      the
      Parent’s reporting, filing and other obligations under the bylaws or rules of
      the National Association of Securities Dealers (“NASD”)
      and
      such exchanges, as applicable.

     

    (c) Market
      Regulations.
      It
      shall notify the SEC, NASD and applicable state authorities, in accordance
      with
      their requirements, of the transactions contemplated by this Agreement, and
      shall take all other necessary action and proceedings as may be required and
      permitted by applicable law, rule and regulation, for the legal and valid
      issuance of the Securities to Calliope and promptly provide copies thereof
      to
      Calliope.

     

    (d) Reporting
      Requirements.
      It
      shall timely file with the SEC all reports required to be filed pursuant to
      the
      Exchange Act and refrain from terminating its status as an issuer required
      by
      the Exchange Act to file reports thereunder even if the Exchange Act or the
      rules or regulations thereunder would permit such termination.

     

    (e) Use
      of
      Funds.
      It
      shall use the proceeds of the Loans (i) to repay in full the Existing
      Indebtedness and (ii) for general working capital purposes only.

     

    (f) Access
      to Facilities.
      It
      shall, and shall cause each of its Subsidiaries to, permit any representatives
      designated by Calliope (or any successor of Calliope), upon reasonable notice
      and during normal business hours, at Company’s expense and accompanied by a
      representative of Company Agent (provided that (i) no such prior notice shall
      be
      required to be given and no such representative shall be required to accompany
      Calliope in the event Calliope believes such access is necessary to preserve
      or
      protect the Collateral or following the occurrence and during the continuance
      of
      an Event of Default and (ii) such inspections and examinations shall be limited
      to once per calendar quarter unless a Default or an Event of Default has
      occurred and is continuing or Calliope believes such access is necessary to
      preserve or protect the Collateral), to:

     

    (i) visit
      and
      inspect any of its or any such Subsidiary’s properties;

     

    (ii) examine
      its or any such Subsidiary’s corporate and financial records (unless such
      examination is not permitted by federal, state or local law or by contract)
      and
      make copies thereof or extracts therefrom; and

     

    (iii) discuss
      its or any such Subsidiary’s affairs, finances and accounts with its or any such
      Subsidiary’s directors, officers and Accountants.

     

    Notwithstanding
      the foregoing, neither it nor any of its Subsidiaries shall provide any
      material, non-public information to Calliope unless Calliope signs a
      confidentiality agreement and otherwise complies with Regulation FD, under
      the
      federal securities laws.

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    (g) Taxes.
      It
      shall, and shall cause each of its Subsidiaries to, promptly pay and discharge,
      or cause to be paid and discharged, when due and payable, all lawful taxes,
      assessments and governmental charges or levies imposed upon it and its
      Subsidiaries’ income, profits, property or business, as the case may be;
      provided, however, that any such tax, assessment, charge or levy need not be
      paid currently if (i) the validity thereof shall currently and diligently be
      contested in good faith by appropriate proceedings, (ii) such tax, assessment,
      charge or levy shall have no effect on the Lien priority of Calliope in the
      Collateral, and (iii) if it and/or such Subsidiary, as applicable, shall have
      set aside on its and/or such Subsidiary’s books adequate reserves with respect
      thereto in accordance with GAAP; and provided, further, that it shall, and
      shall
      cause each of its Subsidiaries to, pay all such taxes, assessments, charges
      or
      levies forthwith upon the commencement of proceedings to foreclose any lien
      which may have attached as security therefor.

     

    (h) Insurance.
      

     

    (i) It
      shall
      bear the full risk of loss from any loss of any nature whatsoever with respect
      to the Collateral and it and each of its Subsidiaries will, jointly and
      severally, bear the full risk of loss from any loss of any nature whatsoever
      with respect to the assets pledged to Calliope as security for the Obligations.
      Furthermore, it will insure or cause the Collateral to be insured in Calliope’s
      name as an additional insured and lender loss payee, with an appropriate loss
      payable endorsement in form and substance satisfactory to Calliope, against
      loss
      or damage by fire, flood, sprinkler leakage, theft, burglary, pilferage, loss
      in
      transit and other risks customarily insured against by companies in similar
      business similarly situated as it and its Subsidiaries including but not limited
      to workers compensation, public and product liability and business interruption,
      and such other hazards as Calliope shall specify in amounts and under insurance
      policies and bonds by insurers acceptable to Calliope and all premiums thereon
      shall be paid by such Company and the policies delivered to Calliope. If any
      such Company fails to obtain the insurance and in such amounts of coverage
      as
      otherwise required pursuant to this Section (h), Calliope may procure such
      insurance and the cost thereof shall be promptly reimbursed by the Companies,
      jointly and severally, and shall constitute Obligations.

     

    (ii) No
      Company’s insurance coverage shall be impaired or invalidated by any act or
      neglect of any Company or any of its Subsidiaries and the insurer will provide
      Calliope with no less than thirty (30) days notice prior of
      cancellation;

     

    (iii) Calliope,
      in connection with its status as a lender loss payee, will be assigned at all
      times to a first lien position until such time as all Calliope Obligations
      have
      been indefeasibly satisfied in full.

     

    (i) Intellectual
      Property.
      It
      shall, and shall cause each of its Subsidiaries to, maintain in full force
      and
      effect its corporate existence, rights and franchises and all licenses and
      other
      rights to use Intellectual Property owned or possessed by it and reasonably
      deemed to be necessary to the conduct of its business.

     

    (j) Properties.
      It
      shall, and shall cause each of its Subsidiaries to, keep its properties in
      good
      repair, working order and condition, reasonable wear and tear excepted, and
      from
      time to time make all needful and proper repairs, renewals, replacements,
      additions and improvements thereto; and it shall, and shall cause each of its
      Subsidiaries to, at all times comply with each provision of all leases to which
      it is a party or under which it occupies property if the breach of such
      provision could reasonably be expected to have a Material Adverse
      Effect.

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    (k) Confidentiality.
      It
      shall not, and shall not permit any of its Subsidiaries to, disclose, and will
      not include in any public announcement, the name of Calliope, unless expressly
      agreed to by Calliope or unless and until such disclosure is required by law
      or
      applicable regulation, and then only to the extent of such requirement.
      Notwithstanding the foregoing, each Company and its Subsidiaries may disclose
      Calliope’s identity and the terms of this Agreement to its current and
      prospective debt and equity financing sources.

     

    (l) Required
      Approvals.
      It
      shall not, and shall not permit any of its Subsidiaries to, without the prior
      written consent of Calliope, (i) create, incur, assume or suffer to exist any
      indebtedness (exclusive of trade debt) whether secured or unsecured other than
      each Company’s indebtedness to Calliope and as set forth on Schedule 13(l)(i)
      attached
      hereto and made a part hereof; (ii) cancel any debt owing to it in excess of
      $50,000 in the aggregate during any 12 month period; (iii) assume, guarantee,
      endorse or otherwise become directly or contingently liable in connection with
      any obligations of any other Person, except the endorsement of negotiable
      instruments by it or its Subsidiaries for deposit or collection or similar
      transactions in the ordinary course of business; (iv) directly or indirectly
      declare, pay or make any dividend or distribution on any class of its Stock
      except for dividends or distributions paid or made to the Parent on account
      of
      its ownership interest in its Subsidiaries, or apply any of its funds, property
      or assets to the purchase, redemption or other retirement of any of its or
      its
      Subsidiaries’ Stock, or issue any preferred stock; (v) purchase or hold
      beneficially any Stock or other securities or evidences of indebtedness of,
      make
      or permit to exist any loans or advances to, or make any investment or acquire
      any interest whatsoever in, any other Person, including any partnership or
      joint
      venture, except (x) travel advances, (y) loans to its and its Subsidiaries’
officers and employees not exceeding at any one time an aggregate of $10,000,
      and (z) loans to its existing Subsidiaries so long as such Subsidiaries are
      designated as either a co-borrower hereunder or has entered into such guaranty
      and security documentation required by Calliope, including, without limitation,
      to grant to Calliope a first priority perfected security interest in
      substantially all of such Subsidiary’s assets to secure the Obligations; (vi)
      create or permit to exist any Subsidiary, other than any Subsidiary in existence
      on the date hereof and listed in Schedule
      12(b)
      unless
      such new Subsidiary is a wholly-owned Subsidiary and is designated by Calliope
      as either a co-borrower or guarantor hereunder and such Subsidiary shall have
      entered into all such documentation required by Calliope, including, without
      limitation, to grant to Calliope a first priority perfected security interest
      in
      substantially all of such Subsidiary’s assets to secure the Obligations; (vii)
      directly or indirectly, prepay any indebtedness (other than to Calliope and
      in
      the ordinary course of business), or repurchase, redeem, retire or otherwise
      acquire any indebtedness (other than to Calliope and in the ordinary course
      of
      business) except to make scheduled payments of principal and interest thereof;
      (viii) enter into any merger, consolidation or other reorganization with or
      into
      any other Person or acquire all or a portion of the assets or Stock of any
      Person or permit any other Person to consolidate with or merge with it;
      provided, however, such Company may enter into a merger, consolidation or other
      reorganization so long as (1) Calliope has received at least thirty (30)
      days written notice of such merger, consolidation or reorganization prior to
      the
      consummation thereof and, simultaneously with the consummation of such merger,
      consolidation or reorganization, all of the Obligations are indefeasibly paid
      in
      full in cash and this Agreement is irrevocably terminated (“Permitted
      Reorganization”)
      or
      (2) if, simultaneously with the consummation of such merger, consolidation
      or reorganization, all of the Obligations are not indefeasibly paid in full
      in
      cash and this Agreement is not irrevocably terminated, each of the following
      conditions have been satisfied to Calliope’s satisfaction: (A) such Company
      or any other Company is the surviving entity of such merger, consolidation
      or
      reorganization, (B) no Event of Default shall exist immediately prior to
      and after giving effect to such merger, consolidation or reorganization,
      (C) such Company shall have provided Calliope copies of all documentation
      relating to such merger, consolidation or reorganization, and (D) such
      Company shall have provided Calliope with at least thirty (30) days prior
      written notice of such merger, consolidation or reorganization prior to the
      consummation thereof; (ix) materially change the nature of the business in
      which
      it is presently engaged; (x) become subject to (including, without limitation,
      by way of amendment to or modification of) any agreement or instrument which
      by
      its terms would (under any circumstances) restrict its or any of its
      Subsidiaries’ right to perform the provisions of this Agreement or any of the
      Ancillary Agreements; (xi) change its fiscal year or make any changes in
      accounting treatment and reporting practices without prior written notice to
      Calliope except as required by GAAP or in the tax reporting treatment or except
      as required by law; (xii) enter into any transaction with any employee, director
      or Affiliate, except in the ordinary course on arms-length terms; (xiii) bill
      Accounts under any name except the present name of such Company; or (xiv) sell,
      lease, transfer or otherwise dispose of any of its properties or assets, or
      any
      of the properties or assets of its Subsidiaries, except for (1) sales, leases,
      transfer or dispositions by any Company to any other Company, (2) the sale
      of
      Inventory in the ordinary course of business and (3) the disposition or transfer
      in the ordinary course of business during any fiscal year of obsolete and
      worn-out Equipment and only to the extent that (x) the proceeds of any such
      disposition are used to acquire replacement Equipment which is subject to
      Calliope’s first priority security interest or are used to repay Loans or to pay
      general corporate expenses, or (y) following the occurrence of an Event of
      Default which continues to exist, the proceeds of which are remitted to Calliope
      to be held as cash collateral for the Obligations; provided, however, that
      the
      Companies may, upon no less than thirty (30) days prior written notice to
      Calliope, sell, lease, transfer or otherwise dispose of all or substantially
      all
      of their properties or assets without the consent of Calliope if the Obligations
      are indefeasibly paid in full in cash and this Agreement is irrevocably
      terminated prior to or simultaneously with the consummation of any such sale,
      lease, transfer or other disposition (“Permitted
      Disposition”).
      A
      Permitted Reorganization or a Permitted Disposition shall not constitute a
      Default or Event of Default under the Agreement or the Ancillary
      Agreements.

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    (m) Reissuance
      of Securities.
      The
      Parent shall reissue certificates representing the Securities without the
      legends set forth in Section 39 below at such time as:

     

    (i) the
      holder thereof is permitted to dispose of such Securities pursuant to Rule
      144(k) under the Securities Act; or

     

    (ii) upon
      resale subject to an effective registration statement after such Securities
      are
      registered under the Securities Act.

     

    The
      Parent agrees to cooperate with Calliope in connection with all resales pursuant
      to Rule 144(d) and Rule 144(k) and provide legal opinions necessary to allow
      such resales provided the Parent and its counsel receive reasonably requested
      representations from Calliope and broker, if any.

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    (n) Opinion.
      On the
      Closing Date, it shall deliver to Calliope an opinion acceptable to Calliope
      from each Company’s legal counsel. Each Company will provide, at the Companies’
joint and several expense, such other legal opinions in the future as are
      reasonably necessary for the resale and conversion of the Secured Convertible
      Term Note and the exercise of the Warrants.

     

    (o) Legal
      Name, etc.
      It
      shall not, without providing Calliope with 30 days prior written notice, change
      (i) its name as it appears in the official filings in the state of its
      organization, (ii) the type of legal entity it is, (iii) its organization
      identification number, if any, issued by its state of organization, (iv) its
      state of organization or (v) amend its certificate of incorporation, by-laws
      or
      other organizational document.

     

    (p) Compliance
      with Laws.
      The
      operation of each of its and each of its Subsidiaries’ business is and shall
      continue to be in compliance in all material respects with all applicable
      federal, state and local laws, rules and ordinances, including to all laws,
      rules, regulations and orders relating to taxes, payment and withholding of
      payroll taxes, employer and employee contributions and similar items,
      securities, employee retirement and welfare benefits, employee health and safety
      and environmental matters.

     

    (q) Notices.
      It and
      each of its Subsidiaries shall promptly inform Calliope in writing of: (i)
      the
      commencement of all proceedings and investigations by or before and/or the
      receipt of any notices from, any governmental or nongovernmental body and all
      actions and proceedings in any court or before any arbitrator against or in
      any
      way concerning any event which could reasonably be expected to have singly
      or in
      the aggregate, a Material Adverse Effect; (ii) any change which has had, or
      could reasonably be expected to have, a Material Adverse Effect; (iii) any
      Event
      of Default or Default; and (iv) any default or any event which with the passage
      of time or giving of notice or both would constitute a default under any
      agreement for the payment of money to which it or any of its Subsidiaries is
      a
      party or by which it or any of its Subsidiaries or any of its or any such
      Subsidiary’s properties may be bound the breach of which would have a Material
      Adverse Effect.

     

    (r) Margin
      Stock.
      It
      shall not permit any of the proceeds of the Loans made hereunder to be used
      directly or indirectly to “purchase” or “carry” “margin stock” or to repay
      indebtedness incurred to “purchase” or “carry” “margin stock” within the
      respective meanings of each of the quoted terms under Regulation U of the Board
      of Governors of the Federal Reserve System as now and from time to time
      hereafter in effect.

     

    (s) Offering
      Restrictions.
      Except
      as previously disclosed in the SEC Reports or in the Exchange Act Filings,
      or
      stock or stock options granted to its employees or directors, neither it nor
      any
      of its Subsidiaries shall, prior to the full exercise by Calliope of the
      Warrants, (x) enter into any equity line of credit agreement or similar
      agreement with a floorless pricing feature or (y) issue, or enter into any
      agreement to issue, any securities with a floorless variable/floating conversion
      and/or pricing feature which are or could be (by conversion or registration)
      free-trading securities (i.e. common stock subject to a registration
      statement).

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    (t) Authorization
      and Reservation of Shares.
      The
      Parent shall at all times have authorized and reserved a sufficient number
      of
      shares of Common Stock to provide for the full conversion of the Secured
      Convertible Term Note and the full exercise of the Warrants.

     

    (u) FIRPTA.
      Neither
      it, nor any of its Subsidiaries, is a “United States real property holding
      corporation” as such term is defined in Section 897(c)(2) of the Code and
      Treasury Regulation Section 1.897-2 promulgated thereunder and it and each
      of
      its Subsidiaries shall at no time take any action or otherwise acquire any
      interest in any asset or property to the extent the effect of which shall cause
      it and/or such Subsidiary, as the case may be, to be a “United States real
      property holding corporation” as such term is defined in Section 897(c)(2) of
      the Code and Treasury Regulation Section 1.897-2 promulgated
      thereunder.

     

    (v) Purchase
      Orders.

     

    (i) Upon
      delivery of Products to the Golf Course Customer pursuant to a Purchase Order,
      it shall issue or cause to be issued a Purchase Order Invoice (and deliver
      any
      other related documents required by the applicable Purchase Order for issuance
      of an invoice on account of such Purchase Order) to the Approved Leasing Company
      named in such Purchased Order for the full Purchase Order Price. The Purchase
      Order Invoice shall direct the Approved Leasing Company to make payment to
      the
      Lockboxes. No Company shall accept any payment (including rebates, set-offs,
      and
      other adjustments) with respect to any Purchase Order Invoice other than through
      the Lockboxes. Each Company shall receive and hold in trust for the sole and
      exclusive benefit of Calliope all sums and instruments representing payment
      of
      any Purchase Order Invoice and all Purchase Order Proceeds which for any reason
      come into the possession of such Company, its agents, representatives or any
      other party acting on behalf of such Company, and promptly to deliver or cause
      delivery of such sums to Calliope; 

     

    (ii) It
      shall
      (A) take all actions necessary for the packaging and the shipment of Products
      to
      the Golf Course Customers in accordance with the Purchase Orders, including,
      without limitation, processing, packaging, shipping, warehousing, and insuring
      Products in accordance with the specifications set forth in the applicable
      Purchase Order and this Agreement, (B) provide Calliope with written notice
      (including the date shipped, the destination, the expected delivery date and
      the
      shipper) of each shipment of Purchase Order Inventory immediately following
      shipment thereof, (C) immediately after issuance to the Approved Leasing Company
      deliver a copy of each Purchase Order Invoice to Calliope, and (D) collect
      in a
      manner consistent with past practices, payment with respect to each Purchase
      Order Invoice. 

     

    (iii) It
      shall
      immediately notify Calliope in writing if (A) an Eligible Purchase Order is
      cancelled by the Approved Leasing Company or the Golf Course Customer listed
      thereon, (B) an Eligible Purchase Order becomes a Delinquent Purchase Order
      or
      (C) an Approved Leasing Company or a Golf Course Customer asserts any claim,
      return, dispute or offset regarding the Products or payment
      therefore.

     

    (iv) It
      shall
      deliver or cause to be delivered to Calliope all documents, notices,
      instruments, statements and bills of lading relating to Products and Purchase
      Order Inventory relating to an Eligible Purchase Order. 

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    (w) Financing
      Right of First Refusal.

     

    (i) Each
      Company hereby grants to Calliope a right of first refusal to provide any
      Additional Financing (as defined below) to be issued by any Company and/or
      any
      of its Subsidiaries (the “Additional
      Financing Parties”),
      subject to the following terms and conditions. From and after the date hereof,
      prior to the incurrence of any additional indebtedness and/or the sale or
      issuance of any equity interests of the Additional Financing Parties (an
“Additional
      Financing”),
      Company Agent shall notify Calliope of such Additional Financing. In connection
      therewith, Company Agent shall submit a fully executed term sheet (a
“Proposed
      Term Sheet”)
      to
      Calliope setting forth the terms, conditions and pricing of any such Additional
      Financing (such financing to be negotiated on “arm’s length” terms and the terms
      thereof to be negotiated in good faith) proposed to be entered into by the
      Additional Financing Parties. Calliope shall have the right, but not the
      obligation, to deliver to Company Agent its own proposed term sheet (the
“Calliope
      Term Sheet”)
      setting forth the terms and conditions upon which Calliope would be willing
      to
      provide such Additional Financing to the Additional Financing Parties. The
      Calliope Term Sheet shall contain terms no less favorable to the Additional
      Financing Parties than those outlined in Proposed Term Sheet. Calliope shall
      deliver to Company Agent the Calliope Term Sheet within ten Business Days of
      receipt of each such Proposed Term Sheet. If the provisions of the Calliope
      Term
      Sheet are at least as favorable to the Additional Financing Parties as the
      provisions of the Proposed Term Sheet, the Additional Financing Parties shall
      enter into and consummate the Additional Financing transaction outlined in
      the
      Calliope Term Sheet. Notwithstanding the foregoing, to the extent Calliope’s
      right of first refusal set forth herein conflicts with any Investor First
      Refusal Rights, Calliope’s right of first refusal shall be subject to such
      Investor First Refusal Rights.

     

    (ii) It
      shall
      not, and shall not permit its Subsidiaries to, agree, directly or indirectly,
      to
      any restriction with any Person which limits the ability of Calliope to
      consummate an Additional Financing with it or any of its Subsidiaries other
      than
      the Investor First Refusal Rights.

     

    (x) ProLink
      UK.
      It
      shall not (i) permit ProLink UK to engage in any business of a material nature
      or own any assets or (ii) transfer, sell or assign any of its assets to ProLink
      UK. 

     

    (y) Financial
      Covenants.
      Each
      Company agrees with Calliope to each of the following:

     

    (i) Minimum
      Consolidated EBITDA.
      The
      Parent shall not have, on the last day of each fiscal quarter commencing with
      the fiscal quarter ending September 30, 2009, Consolidated EBITDA for the four
      (4) fiscal quarter period ending on such day less than $5,000,000.

     

    (ii) Maximum
      Consolidated Leverage Ratio.
      The
      Parent shall not have, on the last day of each fiscal quarter commencing with
      the fiscal quarter ending September 30, 2009, a Consolidated Leverage Ratio
      greater than 4.0 to 1.0.

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    (iii) Minimum
      Consolidated Fixed Charge Coverage Ratio.
      The
      Parent shall not have, on the last day of each fiscal quarter commencing with
      the fiscal quarter ending September 30, 2009, a Consolidated Fixed Charge
      Coverage Ratio for the four (4) fiscal quarter period ending on such day less
      than 1.0
      to
      1.0.

     

    14. Further
      Assurances.
      At any
      time and from time to time, upon the written request of Calliope and at the
      sole
      expense of Companies, each Company shall promptly and duly execute and deliver
      any and all such further instruments and documents and take such further action
      as Calliope may reasonably request (a) to obtain the full benefits of this
      Agreement and the Ancillary Agreements, (b) to protect, preserve and maintain
      Calliope’s rights in the Collateral and under this Agreement or any Ancillary
      Agreement, and/or (c) to enable Calliope to exercise all or any of the rights
      and powers herein granted or any Ancillary Agreement.

     

    15. Representations,
      Warranties and Covenants of Calliope.
      Calliope hereby represents, warrants and covenants to each Company as
      follows:

     

    (a) Requisite
      Power and Authority.
      Calliope has all necessary power and authority under all applicable provisions
      of law to execute and deliver this Agreement and the Ancillary Agreements and
      to
      carry out their provisions. All corporate action on Calliope’s part required for
      the lawful execution and delivery of this Agreement and the Ancillary Agreements
      have been or will be effectively taken prior to the Closing Date. Upon their
      execution and delivery, this Agreement and the Ancillary Agreements shall be
      valid and binding obligations of Calliope, enforceable in accordance with their
      terms, except (a) as limited by applicable bankruptcy, insolvency,
      reorganization, moratorium or other laws of general application affecting
      enforcement of creditors’ rights, and (b) as limited by general principles of
      equity that restrict the availability of equitable and legal
      remedies.

     

    (b) Investment
      Representations.
      Calliope understands that the Securities are being offered pursuant to an
      exemption from registration contained in the Securities Act based in part upon
      Calliope’s representations contained in this Agreement, including, without
      limitation, that Calliope is an “accredited investor” within the meaning of
      Regulation D under the Securities Act. Calliope has received or has had full
      access to all the information it considers necessary or appropriate to make
      an
      informed investment decision with respect to the Notes to be issued to it under
      this Agreement and the Securities acquired by it upon the conversion of the
      Secured Convertible Term Note and the exercise of the Warrants.

     

    (c) Calliope
      Bears Economic Risk.
      Calliope has substantial experience in evaluating and investing in private
      placement transactions of securities in companies similar to the Parent so
      that
      it is capable of evaluating the merits and risks of its investment in the Parent
      and has the capacity to protect its own interests. Calliope must bear the
      economic risk of this investment until the Securities are sold pursuant to
      (i)
      an effective registration statement under the Securities Act, or (ii) an
      exemption from registration is available.

     

    (d) Investment
      for Own Account.
      The
      Securities are being issued to Calliope for its own account for investment
      only,
      and not as a nominee or agent and not with a view towards or for resale in
      connection with their distribution.

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    (e) Calliope
      Can Protect Its Interest.
      Calliope represents that by reason of its, or of its management’s, business and
      financial experience, Calliope has the capacity to evaluate the merits and
      risks
      of its investment in the Notes, and the Securities and to protect its own
      interests in connection with the transactions contemplated in this Agreement,
      and the Ancillary Agreements. Further, Calliope is aware of no publication
      of
      any advertisement in connection with the transactions contemplated in the
      Agreement or the Ancillary Agreements.

     

    (f) Accredited
      Investor.
      Calliope represents that it is an accredited investor within the meaning of
      Regulation D under the Securities Act.

     

    (g) Shorting.
      Neither
      Calliope nor any of its Affiliates or investment partners has, will, or will
      cause any Person, to directly engage in “short sales” of the Parent’s Common
      Stock as long as any amount under any Note shall remain
      outstanding.

     

    (h) Patriot
      Act.
      Calliope certifies that, to the best of Calliope’s knowledge, Calliope has not
      been designated, and is not owned or controlled, by a “suspected terrorist” as
      defined in Executive Order 13224. Calliope seeks to comply with all applicable
      laws concerning money laundering and related activities. In furtherance of
      those
      efforts, Calliope hereby represents, warrants and covenants that: (i) none
      of
      the cash or property that Calliope will use to make the Loans has been or shall
      be derived from, or related to, any activity that is deemed criminal under
      United States law; and (ii) no disbursement by Calliope to any Company to the
      extent within Calliope’s control, shall cause Calliope to be in violation of the
      United States Bank Secrecy Act, the United States International Money Laundering
      Control Act of 1986 or the United States International Money Laundering
      Abatement and Anti-Terrorist Financing Act of 2001. Calliope shall promptly
      notify the Company Agent if any of these representations ceases to be true
      and
      accurate regarding Calliope. Calliope agrees to provide the Company any
      additional information regarding Calliope that the Company deems necessary
      or
      convenient to ensure compliance with all applicable laws concerning money
      laundering and similar activities. Calliope understands and agrees that if
      at
      any time it is discovered that any of the foregoing representations are
      incorrect, or if otherwise required by applicable law or regulation related
      to
      money laundering similar activities, Calliope may undertake appropriate actions
      to ensure compliance with applicable law or regulation, including but not
      limited to segregation and/or redemption of Calliope’s investment in the Parent.
      Calliope further understands that the Parent may release information about
      Calliope and, if applicable, any underlying beneficial owners, to proper
      authorities if the Parent, in its sole discretion, determines that it is in
      the
      best interests of the Parent in light of relevant rules and regulations under
      the laws set forth in subsection (ii) above.

     

    (i) Limitation
      on Acquisition of Common Stock.
      Notwithstanding anything to the contrary contained in this Agreement, any
      Ancillary Agreement, or any document, instrument or agreement entered into
      in
      connection with any other transaction entered into by and between Calliope
      and
      any Company (and/or Subsidiaries or Affiliates of any Company), Calliope shall
      not acquire stock in the Parent (including, without limitation, pursuant to
      a
      contract to purchase, by exercising an option or warrant, by converting any
      other security or instrument, by acquiring or exercising any other right to
      acquire, shares of stock or other security convertible into shares of stock
      in
      the Parent, or otherwise, and such options, warrants, conversion or other rights
      shall not be exercisable) to the extent such stock acquisition would cause
      any
      interest (including any original issue discount) payable by any Company to
      Calliope not to qualify as portfolio interest, within the meaning of Section
      881(c)(2) of the Internal Revenue Code of 1986, as amended (the “Code”)
      by
      reason of Section 881(c)(3) of the Code, taking into account the constructive
      ownership rules under Section 871(h)(3)(C) of the Code (the “Stock
      Acquisition Limitation”).
      The
      Stock Acquisition Limitation shall automatically become null and void without
      any notice to any Company upon the earlier to occur of either (a) the Parent’s
      delivery to Calliope of a Notice of Redemption (as defined in the Secured
      Convertible Term Note) or (b) the existence of an Event of Default at a time
      when the average closing price of the Common Stock as reported by Bloomberg,
      L.P. on the Principal Market for the immediately preceding five trading days
      is
      greater than or equal to 150% of the Fixed Conversion Price (as defined in
      the
      Secured Convertible Term Note).

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    16. Power
      of Attorney.
      Each
      Company hereby appoints Calliope, or any other Person whom Calliope may
      designate as such Company’s attorney, with power to: (a)(i) execute any security
      related documentation on such Company’s behalf and to supply any omitted
      information and correct patent errors in any documents executed by such Company
      or on such Company’s behalf; (ii) to file financing statements against such
      Company covering the Collateral (and, in connection with the filing of any
      such
      financing statements, describe the Collateral as “all assets and all personal
      property, whether now owned and/or hereafter acquired” (or any substantially
      similar variation thereof)); (iii) sign such Company’s name on any invoice or
      bill of lading relating to any Accounts, drafts against Account Debtors,
      schedules and assignments of Accounts, notices of assignment, financing
      statements and other public records, verifications of Account and notices to
      or
      from Account Debtors; and (iv) to do all other things Calliope deems necessary
      to carry out the terms of Section 6 of this Security Agreement and (b) upon
      the
      occurrence and during the continuance of an Event of Default; (v) endorse such
      Company’s name on any checks, notes, acceptances, money orders, drafts or other
      forms of payment or security that may come into Calliope’s possession; (vi)
      verify the validity, amount or any other matter relating to any Account by
      mail,
      telephone, telegraph or otherwise with Account Debtors; (vii) do all other
      things necessary to carry out this Agreement, any Ancillary Agreement and all
      related documents; and (viii) notify the post office authorities to change
      the
      address for delivery of such Company’s mail to an address designated by
      Calliope, and to receive, open and dispose of all mail addressed to such
      Company. Each Company hereby ratifies and approves all acts of the attorney.
      Neither Calliope, nor the attorney will be liable for any acts or omissions
      or
      for any error of judgment or mistake of fact or law, except for gross negligence
      or willful misconduct. This power, being coupled with an interest, is
      irrevocable so long as Calliope has a security interest and until the
      Obligations have been fully satisfied.

     

    17. Term
      of Agreement.

     

    (a) Calliope’s
      agreement to make Loans and extend financial accommodations under and in
      accordance with the terms of this Agreement or any Ancillary Agreement shall
      continue in full force and effect until the expiration of the Term applicable
      to
      such Loans. At Calliope’s election following the occurrence of an Event of
      Default that is continuing, Calliope may terminate this Agreement. The
      termination of the Agreement shall not affect any of Calliope’s rights hereunder
      or under any Ancillary Agreement and the provisions hereof and thereof shall
      continue to be fully operative until all the Obligations have been irrevocably
      paid in full.

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    (b) If
      the
      Obligations in respect of the Term Loan are prepaid in full prior to the end
      of
      the Term Loan Term, the Companies shall jointly and severally pay to Laurus,
      upon the effective date of such prepayment, the Redemption Amount (as defined
      in
      the Secured Convertible Term Note) and such other amounts required to be paid
      by
      the Companies to Calliope at such time pursuant to and in accordance with the
      terms of the Secured Convertible Term Note.

     

    18. Termination
      of Lien.
      The
      Liens and rights granted to Calliope hereunder and any Ancillary Agreements
      and
      the financing statements filed in connection herewith or therewith shall
      continue in full force and effect, notwithstanding the termination of this
      Agreement or the fact that any Company’s account may from time to time be
      temporarily in a zero or credit position, until all of the Obligations have
      been
      indefeasibly paid or performed in full and this Agreement has been terminated
      in
      accordance with the terms of this Agreement. Calliope shall not be required
      to
      send termination statements to any Company, or to file them with any filing
      office, unless and until this Agreement and the Ancillary Agreements shall
      have
      been terminated in accordance with their terms and all Obligations indefeasibly
      paid in full in immediately available funds.

     

    19. Events
      of Default.
      The
      occurrence of any of the following shall constitute an “Event
      of Default”:

     

    (a) failure
      to make payment of any principal, interest, fees, costs, charges, expenses,
      liquidated damages or other sums payable from time to time hereunder or under
      any of the Ancillary Agreements when required hereunder or thereunder, and,
      in
      any such case, such failure shall continue for a period of three (3) days
      following the date upon which any such payment was due;

     

    (b) failure
      by any Company or any of its Subsidiaries to pay any taxes in an amount in
      excess of $10,000 (inclusive of interest, penalties, fees and fines) when due
      unless such taxes are being contested in good faith by appropriate proceedings
      and with respect to which adequate reserves have been provided on such Company’s
      and/or such Subsidiary’s books;

     

    (c) failure
      to perform under, and/or committing any breach of, in any material respect,
      this
      Agreement, any Ancillary Agreement or any covenant contained herein or therein,
      which failure or breach shall continue without remedy for a period of fifteen
      (15) Business Days after the occurrence thereof;

     

    (d) any
      representation, warranty or statement made by any Company or any of its
      Subsidiaries hereunder, in any Ancillary Agreement, any certificate, statement
      or document delivered pursuant to the terms hereof, or in connection with the
      transactions contemplated by this Agreement should prove to be false or
      misleading in any material respect on the date as of which made or deemed
      made;

     

    (e) the
      occurrence of any default (or similar term) in the observance or performance
      of
      any other agreement or condition relating to any indebtedness or contingent
      obligation of any Company or any of its Subsidiaries in excess of $50,000 beyond
      the period of grace (if any), the effect of which default is to cause, or permit
      the holder or holders of such indebtedness or beneficiary or beneficiaries
      of
      such contingent obligation to cause, such indebtedness to become due prior
      to
      its stated maturity or such contingent obligation to become
      payable;

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    (f) attachments
      or levies in excess of $50,000 in the aggregate are made upon any Company’s
      assets or a judgment is rendered against any Company’s property involving a
      liability of more than $50,000 which shall not have been vacated, discharged,
      stayed or bonded within thirty (30) days from the entry thereof;

     

    (g) any
      change in any Company’s or any of its Subsidiary’s condition or affairs
      (financial or otherwise) which in Calliope’s reasonable, good faith opinion,
      could reasonably be expected to have a Material Adverse Effect;

     

    (h) any
      Lien
      created hereunder or under any Ancillary Agreement for any reason ceases to
      be
      or is not a valid and perfected Lien having a first priority
      interest;

     

    (i) any
      Company or any of its Subsidiaries shall (i) apply for, consent to or
      suffer to exist the appointment of, or the taking of possession by, a receiver,
      custodian, trustee or liquidator of itself or of all or a substantial part
      of
      its property, (ii) make a general assignment for the benefit of creditors,
      (iii) commence a voluntary case under the federal bankruptcy laws (as now or
      hereafter in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file
      a
      petition seeking to take advantage of any other law providing for the relief
      of
      debtors, (vi) acquiesce to without challenge within ten (10) days of the filing
      thereof, or failure to have dismissed within forty-five (45) days, any petition
      filed against it in any involuntary case under such bankruptcy laws, or (vii)
      take any action for the purpose of effecting any of the foregoing;

     

    (j) any
      Company or any of its Subsidiaries shall admit in writing its inability, or
      be
      generally unable, to pay its debts as they become due or cease operations of
      its
      present business;

     

    (k) any
      Company or any of its Subsidiaries directly or indirectly sells, assigns,
      transfers, conveys, or suffers or permits to occur any sale, assignment,
      transfer or conveyance of any assets of such Company or any interest therein,
      except as permitted herein;

     

    (l) any
      “Person” or “group” (as such terms are defined in Sections 13(d) and 14(d) of
      the Exchange Act, as in effect on the date hereof), other than Calliope, is
      or
      becomes the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under
      the Exchange Act), directly or indirectly, of fifty percent (50%) or more on
      a
      fully diluted basis of the then outstanding voting equity interest of the Parent
      (other than a “Person” or “group” that beneficially owns fifty percent (50%) or
      more of such outstanding voting equity interests of the Parent on the date
      hereof), (ii) the Board of Directors of the Parent shall cease to consist of
      a
      majority of the Board of Directors of the Parent on the date hereof (or
      directors appointed by a majority of the board of directors in effect
      immediately prior to such appointment) or (iii) the Parent or any of its
      Subsidiaries merges or consolidates with, or sells all or substantially all
      of
      its assets to, any other person or entity;

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    (m) the
      indictment of any Company or any of its Subsidiaries or any executive officer
      of
      any Company or any of its Subsidiaries under any criminal statute, or
      commencement of any civil proceeding or criminal proceeding against any Company
      or any of its Subsidiaries or any executive officer of any Company or any of
      its
      Subsidiaries pursuant to which statute or proceeding penalties or remedies
      sought or available include forfeiture of any of the property of any Company
      or
      any of its Subsidiaries, which property has a fair market value in excess of
      $50,000;

     

    (n) an
      Event
      of Default (or similar term) shall occur under and as defined in any Note or
      in
      any other Ancillary Agreement;

     

    (o) any
      Company or any of its Subsidiaries shall breach any term or provision of any
      Ancillary Agreement to which it is a party (including, without limitation,
      Section 7(e) of the Registration Rights Agreement), in any material respect
      which breach is not cured within any applicable cure or grace period provided
      in
      respect thereof (if any);

     

    (p) any
      Company or any of its Subsidiaries attempts to terminate, challenges the
      validity of, or its liability under this Agreement or any Ancillary Agreement,
      or any proceeding shall be brought to challenge the validity, binding effect
      of
      any Ancillary Agreement or any Ancillary Agreement ceases to be a valid, binding
      and enforceable obligation of such Company or any of its Subsidiaries (to the
      extent such Persons are a party thereto);

     

    (q) an
      SEC
      stop trade order or Principal Market trading suspension of the Common Stock
      shall be in effect for five (5) consecutive days or five (5) days during a
      period of ten (10) consecutive days, excluding in all cases a suspension of
      all
      trading on a Principal Market, provided that the Parent shall not have been
      able
      to cure such trading suspension within thirty (30) days of the notice thereof
      or
      list the Common Stock on another Principal Market within sixty (60) days of
      such
      notice; or

     

    (r) The
      Parent’s failure to deliver Common Stock to Calliope pursuant to and in the form
      required by the Secured Convertible Term Note, the Warrant and this Agreement,
      if such failure to deliver Common Stock shall not be cured within two (2)
      Business Days or any Company is required to issue a replacement Note to Calliope
      and such Company shall fail to deliver such replacement Note within seven (7)
      Business Days following a request by Calliope to issue such replacement
      Note.

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    20. Remedies.
      Following the occurrence of an Event of Default that is continuing, Calliope
      shall have the right to demand repayment in full of all Obligations, whether
      or
      not otherwise due. Until all Obligations have been fully and indefeasibly
      satisfied, Calliope shall retain its Lien in all Collateral. Calliope shall
      have, in addition to all other rights provided herein and in each Ancillary
      Agreement, the rights and remedies of a secured party under the UCC, and under
      other applicable law, all other legal and equitable rights to which Calliope
      may
      be entitled, including the right to take immediate possession of the Collateral,
      to require each Company to assemble the Collateral, at Companies’ joint and
      several expense, and to make it available to Calliope at a place designated
      by
      Calliope which is reasonably convenient to both parties and to enter any of
      the
      premises of any Company or wherever the Collateral shall be located, with or
      without force or process of law, and to keep and store the same on said premises
      until sold (and if said premises be the property of any Company, such Company
      agrees not to charge Calliope for storage thereof), and the right to apply
      for
      the appointment of a receiver for such Company’s property. Further, Calliope
      may, at any time or times after the occurrence of an Event of Default that
      is
      continuing, sell and deliver all Collateral held by or for Calliope at public
      or
      private sale for cash, upon credit or otherwise, at such prices and upon such
      terms as Calliope, in Calliope’s sole discretion, deems advisable or Calliope
      may otherwise recover upon the Collateral in any commercially reasonable manner
      as Calliope, in its sole discretion, deems advisable. The requirement of
      reasonable notice shall be met if such notice is mailed postage prepaid to
      Company Agent at Company Agent’s address as shown in Calliope’s records, at
      least ten (10) days before the time of the event of which notice is being given.
      Calliope may be the purchaser at any sale, if it is public. In connection with
      the exercise of the foregoing remedies, Calliope is granted permission to use
      all of each Company’s Intellectual Property. The proceeds of sale shall be
      applied first to all costs and expenses of sale, including reasonable attorneys’
fees, and second to the payment (in whatever order Calliope elects) of all
      Obligations. After the indefeasible payment and satisfaction in full of all
      of
      the Obligations, and after the payment by Calliope of any other amount required
      by any provision of law, including Section 9-608(a)(1) of the UCC (but only
      after Calliope has received what Calliope considers reasonable proof of a
      subordinate party’s security interest), the surplus, if any, shall be paid to
      Company Agent (for the benefit of the applicable Companies) or its
      representatives or to whosoever may be lawfully entitled to receive the same,
      or
      as a court of competent jurisdiction may direct. The Companies shall remain
      jointly and severally liable to Calliope for any deficiency. The parties hereto
      each hereby agree that the exercise by any party hereto of any right granted
      to
      it or the exercise by any party hereto of any remedy available to it (including,
      without limitation, the issuance of a notice of redemption, a borrowing request
      and/or a notice of default), in each case, hereunder or under any Ancillary
      Agreement shall not constitute confidential information and no party shall
      have
      any duty to the other party to maintain such information as confidential, except
      for the portions of such publicly filed documents that are subject to
      confidential treatment request made by the Companies to the SEC.

     

    21. Waivers.
      To the
      full extent permitted by applicable law, each Company hereby waives (a)
      presentment, demand and protest, and notice of presentment, dishonor, intent
      to
      accelerate, acceleration, protest, default, nonpayment, maturity, release,
      compromise, settlement, extension or renewal of any or all of this Agreement
      and
      the Ancillary Agreements or any other notes, commercial paper, Accounts,
      contracts, Documents, Instruments, Chattel Paper and guaranties at any time
      held
      by Calliope on which such Company may in any way be liable, and hereby ratifies
      and confirms whatever Calliope may do in this regard; (b) all rights to notice
      and a hearing prior to Calliope’s taking possession or control of, or to
      Calliope’s replevy, attachment or levy upon, any Collateral or any bond or
      security that might be required by any court prior to allowing Calliope to
      exercise any of its remedies; and (c) the benefit of all valuation, appraisal
      and exemption laws. Each Company acknowledges that it has been advised by
      counsel of its choices and decisions with respect to this Agreement, the
      Ancillary Agreements and the transactions evidenced hereby and
      thereby.

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    22. Expenses.
      The
      Companies shall jointly and severally pay all of Calliope’s out-of-pocket costs
      and expenses, including reasonable fees and disbursements of outside counsel
      and
      appraisers, in connection with (x) subject to the limitations set forth in
      Section 5(b)(iii), the preparation, execution and delivery of this Agreement
      and
      the Ancillary Agreements, and (y) in connection with the prosecution or defense
      of any action, contest, dispute, suit or proceeding concerning any matter in
      any
      way arising out of, related to or connected with this Agreement or any Ancillary
      Agreement. The Companies shall also jointly and severally pay all of Calliope’s
      reasonable fees, charges, out-of-pocket costs and expenses, including fees
      and
      disbursements of counsel and appraisers, in connection with (a) the preparation,
      execution and delivery of any waiver, any amendment thereto or consent proposed
      or executed in connection with the transactions contemplated by this Agreement
      or the Ancillary Agreements, (b) Calliope’s obtaining performance of the
      Obligations under this Agreement and any Ancillary Agreements, including, but
      not limited to, the enforcement or defense of Calliope’s security interests,
      assignments of rights and Liens hereunder as valid perfected security interests,
      (c) any attempt to inspect, verify, protect, collect, sell, liquidate or
      otherwise dispose of any Collateral, (d) any appraisals or reappraisals of
      any
      property (real or personal) pledged to Calliope by any Company or any of its
      Subsidiaries as Collateral for, or any other Person as security for, the
      Obligations hereunder and (e) any consultations in connection with any of the
      foregoing. The Companies shall also jointly and severally pay Calliope’s
      customary bank charges for all bank services (including wire transfers)
      performed or caused to be performed by Calliope for any Company or any of its
      Subsidiaries at any Company’s or such Subsidiary’s request or in connection with
      any Company’s loan account with Calliope. All such costs and expenses together
      with all filing, recording and search fees, taxes and interest payable by the
      Companies to Calliope shall be payable on demand and shall be secured by the
      Collateral. If any tax by any Governmental Authority is or may be imposed on
      or
      as a result of any transaction between any Company and/or any Subsidiary
      thereof, on the one hand, and Calliope on the other hand, which Calliope is
      or
      may be required to withhold or pay (including, without limitation, as a result
      of a breach by any Company or any of its Subsidiaries of Section 13(u) herein),
      the Companies hereby jointly and severally indemnifies and holds Calliope
      harmless in respect of such taxes, and the Companies will repay to Calliope
      the
      amount of any such taxes which shall be charged to the Companies’ account; and
      until the Companies shall furnish Calliope with indemnity therefor (or supply
      Calliope with evidence satisfactory to it that due provision for the payment
      thereof has been made), Calliope may hold without interest any balance standing
      to each Company’s credit and Calliope shall retain its Liens in any and all
      Collateral.

     

    23. Assignment
      By Calliope.
      Calliope may assign any or all of the Obligations together with any or all
      of
      the security therefor to any Person and any such assignee shall succeed to
      all
      of Calliope’s rights with respect thereto; provided that Calliope shall not be
      permitted to effect any such assignment to a competitor of any Company unless
      an
      Event of Default has occurred and is continuing and Calliope has given Company
      Agent no less than fifteen (15) Business Days prior notice of such assignment.
      Upon such assignment, Calliope shall be released from all responsibility for
      the
      Collateral to the extent same is assigned to any transferee. Calliope may from
      time to time sell or otherwise grant participations in any of the Obligations
      and the holder of any such participation shall, subject to the terms of any
      agreement between Calliope and such holder, be entitled to the same benefits
      as
      Calliope with respect to any security for the Obligations in which such holder
      is a participant. Each Company agrees that each such holder may exercise any
      and
      all rights of banker’s lien, set-off and counterclaim with respect to its
      participation in the Obligations as fully as though such Company were directly
      indebted to such holder in the amount of such participation.

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    24. No
      Waiver; Cumulative Remedies.
      Failure
      by Calliope to exercise any right, remedy or option under this Agreement, any
      Ancillary Agreement or any supplement hereto or thereto or any other agreement
      between or among any Company and Calliope or delay by Calliope in exercising
      the
      same, will not operate as a waiver; no waiver by Calliope will be effective
      unless it is in writing and then only to the extent specifically stated.
      Calliope’s rights and remedies under this Agreement and the Ancillary Agreements
      will be cumulative and not exclusive of any other right or remedy which Calliope
      may have.

     

    25. Application
      of Payments.
      Each
      Company irrevocably waives the right to direct the application of any and all
      payments at any time or times hereafter received by Calliope from or on such
      Company’s behalf and each Company hereby irrevocably agrees that Calliope shall
      have the continuing exclusive right to apply and reapply any and all payments
      received at any time or times hereafter against the Obligations hereunder in
      such manner as Calliope may deem advisable notwithstanding any entry by Calliope
      upon any of Calliope’s books and records.

     

    26. Indemnity.
      Each
      Company hereby jointly and severally indemnifies and holds Calliope, and its
      respective affiliates, employees, attorneys and agents (each, an “Indemnified
      Person”),
      harmless from and against any and all suits, actions, proceedings, claims,
      damages, losses, liabilities and expenses of any kind or nature whatsoever
      (including reasonable attorneys’ fees and disbursements and other costs of
      investigation or defense, including those incurred upon any appeal) which may
      be
      instituted or asserted against or incurred by any such Indemnified Person as
      the
      result of credit having been extended, suspended or terminated under this
      Agreement or any of the Ancillary Agreements or with respect to the execution,
      delivery, enforcement, performance and administration of, or in any other way
      arising out of or relating to, this Agreement, the Ancillary Agreements or
      any
      other documents or transactions contemplated by or referred to herein or therein
      and any actions or failures to act with respect to any of the foregoing, except
      to the extent that any such indemnified liability is finally determined by
      a
      court of competent jurisdiction to have resulted solely from such Indemnified
      Person’s gross negligence or willful misconduct. NO INDEMNIFIED PERSON SHALL BE
      RESPONSIBLE OR LIABLE TO ANY COMPANY OR TO ANY OTHER PARTY OR TO ANY SUCCESSOR,
      ASSIGNEE OR THIRD PARTY BENEFICIARY OR ANY OTHER PERSON ASSERTING CLAIMS
      DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR
      CONSEQUENTIAL DAMAGES WHICH MAY BE ALLEGED AS A RESULT OF CREDIT HAVING BEEN
      EXTENDED, SUSPENDED OR TERMINATED UNDER THIS AGREEMENT OR ANY ANCILLARY
      AGREEMENT OR AS A RESULT OF ANY OTHER TRANSACTION CONTEMPLATED HEREUNDER OR
      THEREUNDER.

     

    27. Revival.
      The
      Companies further agree that to the extent any Company makes a payment or
      payments to Calliope, which payment or payments or any part thereof are
      subsequently invalidated, declared to be fraudulent or preferential, set aside
      and/or required to be repaid to a trustee, receiver or any other party under
      any
      bankruptcy act, state or federal law, common law or equitable cause, then,
      to
      the extent of such payment or repayment, the obligation or part thereof intended
      to be satisfied shall be revived and continued in full force and effect as
      if
      said payment had not been made.

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    28. Borrowing
      Agency Provisions.

     

    (a) Each
      Company hereby irrevocably designates Company Agent to be its attorney and
      agent
      and in such capacity to borrow, sign and endorse notes, and execute and deliver
      all instruments, documents, writings and further assurances now or hereafter
      required hereunder, on behalf of such Company, and hereby authorizes Calliope
      to
      pay over or credit all loan proceeds hereunder in accordance with the request
      of
      Company Agent.

     

    (b) The
      handling of this credit facility as a co-borrowing facility with a borrowing
      agent in the manner set forth in this Agreement is solely as an accommodation
      to
      the Companies and at their request. Calliope shall not incur any liability
      to
      any Company as a result thereof. To induce Calliope to do so and in
      consideration thereof, each Company hereby indemnifies Calliope and holds
      Calliope harmless from and against any and all liabilities, expenses, losses,
      damages and claims of damage or injury asserted against Calliope by any Person
      arising from or incurred by reason of the handling of the financing arrangements
      of the Companies due to the nature of this credit facility being a co-borrowing
      facility with a borrowing agent, reliance by Calliope on any request or
      instruction from Company Agent or any other action taken by Calliope with
      respect to this Paragraph 28, except to the extent that such liabilities,
      expenses, losses, damages and claims of damage or injury are solely the result
      of gross negligence or willful misconduct by Calliope.

     

    (c) All
      Obligations shall be joint and several, and the Companies shall make payment
      upon the maturity of the Obligations by acceleration or otherwise, and such
      obligation and liability on the part of the Companies shall in no way be
      affected by any extensions, renewals and forbearance granted by Calliope to
      any
      Company, failure of Calliope to give any Company notice of borrowing or any
      other notice, any failure of Calliope to pursue to preserve its rights against
      any Company, the release by Calliope of any Collateral now or thereafter
      acquired from any Company, and such agreement by any Company to pay upon any
      notice issued pursuant thereto is unconditional and unaffected by prior recourse
      by Calliope to any Company or any Collateral for such Company’s Obligations or
      the lack thereof.

     

    (d) Each
      Company expressly waives any and all rights of subrogation, reimbursement,
      indemnity, exoneration, contribution or any other claim which such Company
      may
      now or hereafter have against the other or other Person directly or contingently
      liable for the Obligations, or against or with respect to any other’s property
      (including, without limitation, any property which is Collateral for the
      Obligations), arising from the existence or performance of this Agreement,
      until
      all Obligations have been indefeasibly paid in full and this Agreement has
      been
      irrevocably terminated.

     

    (e) Each
      Company represents and warrants to Calliope that (i) Companies have one or
      more
      common shareholders, directors and officers, (ii) the businesses and corporate
      activities of Companies are closely related to, and substantially benefit,
      the
      business and corporate activities of Companies, (iii) the financial and other
      operations of Companies are performed on a combined basis as if Companies
      constituted a consolidated corporate group, (iv) Companies will receive a
      substantial economic benefit from entering into this Agreement and will receive
      a substantial economic benefit from the application of each Loan hereunder,
      in
      each case, whether or not such amount is used directly by any Company and (v)
      all requests for Loans hereunder by the Company Agent are for the exclusive
      and
      indivisible benefit of the Companies as though, for purposes of this Agreement,
      the Companies constituted a single entity.

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    29. Notices.
      Any
      notice or request hereunder may be given to any Company, Company Agent or
      Calliope at the respective addresses set forth below or as may hereafter be
      specified in a notice designated as a change of address under this Section.
      Any
      notice or request hereunder shall be given by registered or certified mail,
      return receipt requested, hand delivery, overnight mail or facsimile (confirmed
      by mail). Notices and requests shall be, in the case of those by hand delivery,
      deemed to have been given when delivered to any officer of the party to whom
      it
      is addressed, in the case of those by mail or overnight mail, deemed to have
      been given three (3) Business Days after the date when deposited in the mail
      or
      with the overnight mail carrier, and, in the case of a facsimile, when
      confirmed.

     

    Notices
      shall be provided as follows:

    

    
      	
              If
                to Calliope:

            	
                

            	
              Calliope
                Capital Corporation

              874
                Walker Road, Suite C

              Dover,
                Delaware 19904

              Facsimile:
                (914) 949-9618

            
	 	 	 
	
              With
                a copy to:

            	 	
              Calliope
                Capital Corporation

              c/o
                Laurus Capital Management, LLC

              335
                Madison Avenue,10th Floor

              New
                York, New York 10017

              Attention:
                Portfolio Services

              Telephone:
                (212) 541-5800

              Facsimile:
                (212) 541-4410

            
	 	 	 
	
              and:

            	 	
              Loeb
                and Loeb, LLP

              345
                Park Avenue

              New
                York, New York

              Attention:
                Scott Giordano, Esq.

              Telephone:
                (212) 407-4000

              Facsimile:
                (212) 407-4990

            
	 	 	 
	
              If
                to any Company,

              or
                Company Agent:

            	 	
              ProLink
                Holdings Corp.

              410
                S. Benson Lane

              Chandler,
                Arizona 85224

              Attention:
                David Gomez, General Counsel

              Telephone:
                (480) 783-7229

              Facsimile:
                (480) 785-7446

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

    

    
      	
              With
                a copy to:

            	 	
              Mintz
                Levin Cohn Ferris Glovsky and Popeo P.C.

              Chrysler
                Center

              666
                Third Avenue

              New
                York, New York 10017

              Attention:
                Ivan Blumenthal, Esq.

              Telephone:
                (212) 935-3000

              Facsimile:
                (212) 983-3115

            

    

     

    or
      such
      other address as may be designated in writing hereafter in accordance with
      this
      Section 29 by such Person.

     

    30. Governing
      Law, Jurisdiction and Waiver of Jury Trial.

     

    (a) THIS
      AGREEMENT AND THE ANCILLARY AGREEMENTS SHALL BE GOVERNED BY AND CONSTRUED AND
      ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO
      CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO PRINCIPLES OF
      CONFLICTS OF LAW.

     

    (b) EACH
      COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS LOCATED
      IN
      THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL HAVE EXCLUSIVE JURISDICTION
      TO
      HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY COMPANY, ON THE ONE HAND,
      AND CALLIOPE, ON THE OTHER HAND, PERTAINING TO THIS AGREEMENT OR ANY OF THE
      ANCILLARY AGREEMENTS OR TO ANY MATTER ARISING OUT OF OR RELATED TO THIS
      AGREEMENT OR ANY OF THE ANCILLARY AGREEMENTS; PROVIDED,
      THAT
      CALLIOPE AND EACH COMPANY ACKNOWLEDGE THAT ANY APPEALS FROM THOSE COURTS MAY
      HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE
      OF
      NEW YORK; AND FURTHER PROVIDED,
      THAT
      NOTHING IN THIS AGREEMENT SHALL BE DEEMED OR OPERATE TO PRECLUDE CALLIOPE FROM
      BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION TO COLLECT
      THE OBLIGATIONS, TO REALIZE ON THE COLLATERAL OR ANY OTHER SECURITY FOR THE
      OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF CALLIOPE.
      EACH COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION
      IN
      ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH COMPANY HEREBY WAIVES
      ANY OBJECTION THAT IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION,
      IMPROPER VENUE OR FORUM
      NON CONVENIENS.
      EACH
      COMPANY AND CALLIOPE HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT
      AND OTHER PROCESS ISSUED IN ANY SUCH ACTION OR SUIT AND AGREES THAT SERVICE
      OF
      SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED
      MAIL ADDRESSED TO COMPANY AGENT OR CALLIOPE, AS APPLICABLE, AT THE ADDRESS
      SET
      FORTH IN SECTION 29 AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON
      THE
      EARLIER OF COMPANY AGENT’S OR CALLIOPE’S, AS APPLICABLE, ACTUAL RECEIPT THEREOF
      OR THREE (3) DAYS AFTER DEPOSIT IN THE U.S. MAILS, PROPER POSTAGE
      PREPAID.

    
      
        
        

      

      
        43

        
          

        

      

      
        
        

      

    

     

    (c) THE
      PARTIES DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH
      APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS
      OF
      THE JUDICIAL SYSTEM AND OF ARBITRATION, THE PARTIES HERETO WAIVE ALL RIGHTS
      TO
      TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE,
      WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN CALLIOPE, AND/OR ANY
      COMPANY ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL TO THE
      RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS AGREEMENT, ANY
      ANCILLARY AGREEMENT OR THE TRANSACTIONS RELATED HERETO OR THERETO.

     

    31. Limitation
      of Liability.
      Each
      Company acknowledges and understands that in order to assure repayment of the
      Obligations hereunder Calliope may be required to exercise any and all of
      Calliope’s rights and remedies hereunder and agrees that, except as limited by
      applicable law, neither Calliope nor any of Calliope’s agents shall be liable
      for acts taken or omissions made in connection herewith or therewith except
      to
      the extent such acts or omissions result from or constitute actual bad faith,
      gross negligence or willful misconduct of Calliope or any of Calliope’s
      agent.

     

    32. Entire
      Understanding; Maximum Interest.
      This
      Agreement and the Ancillary Agreements contain the entire understanding among
      each Company and Calliope as to the subject matter hereof and thereof and any
      promises, representations, warranties or guarantees not herein contained shall
      have no force and effect unless in writing, signed by each Company’s and
      Calliope’s respective officers. Neither this Agreement, the Ancillary
      Agreements, nor any portion or provisions thereof may be changed, modified,
      amended, waived, supplemented, discharged, cancelled or terminated orally or
      by
      any course of dealing, or in any manner other than by an agreement in writing,
      signed by the party to be charged. Nothing contained in this Agreement, any
      Ancillary Agreement or in any document referred to herein or delivered in
      connection herewith shall be deemed to establish or require the payment of
      a
      rate of interest or other charges in excess of the maximum rate permitted by
      applicable law. In the event that the rate of interest or dividends required
      to
      be paid or other charges hereunder exceed the maximum rate permitted by such
      law, any payments in excess of such maximum shall be credited against amounts
      owed by the Companies to Calliope and thus refunded to the
      Companies.

     

    33. Severability.
      Wherever possible each provision of this Agreement or the Ancillary Agreements
      shall be interpreted in such manner as to be effective and valid under
      applicable law, but if any provision of this Agreement or the Ancillary
      Agreements shall be prohibited by or invalid under applicable law such provision
      shall be ineffective to the extent of such prohibition or invalidity, without
      invalidating the remainder of such provision or the remaining provisions
      thereof.

    
      
        
        

      

      
        44

        
          

        

      

      
        
        

      

    

     

    34. Survival.
      The
      representations, warranties, covenants and agreements made herein shall survive
      any investigation made by Calliope and the closing of the transactions
      contemplated hereby; provided, however, the representations and warranties
      that
      relate solely to a specific date by their express terms shall only be deemed
      to
      have been made as of such date and are hereby represented and warranted to
      have
      been true and correct when made. All statements as to factual matters contained
      in any certificate or other instrument delivered by or on behalf of the
      Companies pursuant hereto in connection with the transactions contemplated
      hereby shall be deemed to be representations and warranties by the Companies
      hereunder solely as of the date of such certificate or instrument. All
      indemnities set forth herein shall survive the execution, delivery and
      termination of this Agreement and the Ancillary Agreements and the making and
      repaying of the Obligations.

     

    35. Captions.
      All
      captions are and shall be without substantive meaning or content of any kind
      whatsoever.

     

    36. Counterparts;
      Facsimile Signatures.
      This
      Agreement may be executed in one or more counterparts, each of which shall
      constitute an original and all of which taken together shall constitute one
      and
      the same agreement. Any signature delivered by a party via facsimile
      transmission shall be deemed to be any original signature hereto.

     

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

     

    38. Publicity.
      Each
      Company hereby authorizes Calliope to make appropriate announcements of the
      financial arrangement entered into by and among each Company and Calliope,
      including, without limitation, announcements which are commonly known as
      tombstones, in such publications and to such selected parties as Calliope shall
      in its sole and absolute discretion deem appropriate, or as required by
      applicable law.

     

    39. Joinder.
      It is
      understood and agreed that any Person that desires to become a Company
      hereunder, or is required to execute a counterpart of this Agreement after
      the
      date hereof pursuant to the requirements of this Agreement or any Ancillary
      Agreement, shall become a Company hereunder by (a) executing a Joinder Agreement
      in form and substance satisfactory to Calliope, (b) delivering supplements
      to
      such exhibits and annexes to this Agreement and the Ancillary Agreements as
      Calliope shall reasonably request and (c) taking all actions as specified in
      this Agreement as would have been taken by such Company had it been an original
      party to this Agreement, in each case with all documents required above to
      be
      delivered to Calliope and with all documents and actions required above to
      be
      taken to the reasonable satisfaction of Calliope.

     

    40. Legends.
      The
      Securities shall bear legends as follows;

     

    (a) The
      Secured Convertible Term Note shall bear substantially the following
      legend:

     

    “THIS
      NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN
      REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE,
      STATE SECURITIES LAWS. THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION
      OF THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS NOTE OR SUCH SHARES
      UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL
      REASONABLY SATISFACTORY TO PROLINK HOLDINGS CORP. THAT SUCH REGISTRATION IS
      NOT
      REQUIRED.”

    
      
        
        

      

      
        45

        
          

        

      

      
        
        

      

    

     

    (b) Any
      shares of Common Stock issued pursuant to conversion of the Secured Convertible
      Term Note or exercise of the Warrants, shall bear a legend which shall be in
      substantially the following form until such shares are covered by an effective
      registration statement filed with the SEC:

     

    “THE
      SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
      SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE, STATE SECURITIES LAWS.
      THESE SHARES MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN
      THE
      ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH SECURITIES ACT AND
      APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO PROLINK HOLDINGS CORP. THAT SUCH REGISTRATION IS NOT
      REQUIRED.”

     

    (c) The
      Warrants shall bear substantially the following legend:

     

    “THIS
      WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT HAVE NOT
      BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE
      STATE SECURITIES LAWS. THIS WARRANT AND THE COMMON SHARES ISSUABLE UPON EXERCISE
      OF THIS WARRANT MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
      IN
      THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT OR THE
      UNDERLYING SHARES OF COMMON STOCK UNDER SAID ACT AND APPLICABLE STATE SECURITIES
      LAWS OR AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO PROLINK HOLDINGS CORP.
      THAT SUCH REGISTRATION IS NOT REQUIRED.”

     

    [Balance
      of page intentionally left blank; signature page follows.]

    
      
        
        

      

      
        46

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Security Agreement as of the
      date first written above.

    

    
      	 	
              PROLINK
                HOLDINGS CORP.

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            
	 	 
	 	
              PROLINK
                SOLUTIONS, LLC

            
	 	 
	 	
              By:

            	 
	 	 	
              Name:

            
	 	 	
              Title:

            

    

     

    
      	 	
              CALLIOPE
                CAPITAL CORPORATION

            
	 	 
	 	
              By:

            	
              Laurus
                Capital Management, LLC, as

            
	 	 	
              investment
                manager

            
	 	 	 
	 	 	
              By:

            	 
	 	 	 	
              Name:

            
	 	 	 	
              Title:

            

    

    

      SIGNATURE
        PAGE TO

      SECURITY
        AGREEMENT

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Annex
      A - Definitions

     

    “Account
      Debtor”
means
      any Person who is or may be obligated with respect to, or on account of, an
      Account.

     

    “Accountants”
has
      the
      meaning given to such term in Section 11(a).

     

    “Accounts”
means
      all “accounts”, as such term is defined in the UCC, now owned or hereafter
      acquired by any Person, including: (a) all accounts receivable, other
      receivables, book debts and other forms of obligations (other than forms of
      obligations evidenced by Chattel Paper or Instruments) (including any such
      obligations that may be characterized as an account or contract right under
      the
      UCC); (b) all of such Person’s rights in, to and under all purchase orders or
      receipts for goods or services; (c) all of such Person’s rights to any goods
      represented by any of the foregoing (including unpaid sellers’ rights of
      rescission, replevin, reclamation and stoppage in transit and rights to
      returned, reclaimed or repossessed goods); (d) all rights to payment due to
      such
      Person for Goods or other property sold, leased, licensed, assigned or otherwise
      disposed of, for a policy of insurance issued or to be issued, for a secondary
      obligation incurred or to be incurred, for energy provided or to be provided,
      for the use or hire of a vessel under a charter or other contract, arising
      out
      of the use of a credit card or charge card, or for services rendered or to
      be
      rendered by such Person or in connection with any other transaction (whether
      or
      not yet earned by performance on the part of such Person); and (e) all
      collateral security of any kind given by any Account Debtor or any other Person
      with respect to any of the foregoing.

     

    “Accounts
      Availability”
means
      the sum of (a) ninety percent (90%) of the net face amount of Eligible Accounts
      plus (b) ninety percent (90%) of the net face amount of Eligible Credit Insured
      Accounts.

     

    “Affiliate”
means,
      with respect to any Person, (a) any other Person (other than a Subsidiary)
      which, directly or indirectly, is in control of, is controlled by, or is under
      common control with such Person, (b) any other Person that, directly or
      indirectly, owns or controls, whether beneficially, or as trustee, guardian
      or
      other fiduciary, 25% or more of the Stock having ordinary voting power in the
      election of directors of such Person, (c) any other Person who is a director,
      officer, joint venturer or partner (i) of such Person, (ii) of any Subsidiary
      of
      such Person or (iii) of any Person described in clause (a) above or (d) in
      the
      case of the Companies, the immediate family members, spouses and lineal
      descendants of individuals who are Affiliates of such Companies. For the
      purposes of this definition, control of a Person shall mean the power (direct
      or
      indirect) to direct or cause the direction of the management and policies of
      such Person whether by contract or otherwise; provided however, that the term
      “Affiliate” shall specifically exclude Calliope.

     

    “Ancillary
      Agreements”
means
      the Notes, the Warrants, the Registration Rights Agreements, each Security
      Document and all other agreements, instruments, documents, mortgages, pledges,
      powers of attorney, consents, assignments, contracts, notices, security
      agreements, trust agreements and guarantees whether heretofore, concurrently,
      or
      hereafter executed by or on behalf of any Company, any of its Subsidiaries
      or
      any other Person or delivered to Calliope, relating to this Agreement or to
      the
      transactions contemplated by this Agreement or otherwise relating to the
      relationship between or among any Company and Calliope as contemplated by this
      Agreement, as each of the same may be amended, supplemented, restated or
      otherwise modified from time to time.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    “Approved
      Lease”
means
      a
      valid and binding lease agreement, in form and substance satisfactory to
      Calliope, between a Golf Course Customer and an Approved Leasing Company
      pursuant to which such Golf Course Customer has agreed to lease the Products
      listed thereon from such Approved Leasing Company, the effectiveness of which
      is
      subject only to the earlier to occur of (a) the receipt by such Approved Leasing
      Company of written acknowledgement by such Golf Course Customer of the delivery
      and acceptance of the Products listed on the lease agreement or (b) the passage
      of ten (10) days from the date of delivery of such Products to such Golf Course
      Customer during which period such Golf Course Customer has not delivered notice
      to the Approved Leasing Company that it is not accepting the
      Products.

     

    “Approved
      Leasing Company”
means
      the leasing companies listed on Schedule 3 attached hereto and any other leasing
      company approved by Calliope from time to time in its sole
      discretion.

     

    “Balance
      Sheet Date”
has
      the
      meaning given such term in Section 12(f)(ii).

     

    “Books
      and Records”
means
      all books, records, board minutes, contracts, licenses, insurance policies,
      environmental audits, business plans, files, computer files, computer discs
      and
      other data and software storage and media devices, accounting books and records,
      financial statements (actual and pro forma), filings with Governmental
      Authorities and any and all records and instruments relating to the Collateral
      or otherwise necessary or helpful in the collection thereof or the realization
      thereupon.

     

    “Business
      Day”
means
      a
      day on which Calliope is open for business and that is not a Saturday, a Sunday
      or other day on which banks are required or permitted to be closed in the State
      of New York.

     

    “Capital
      Availability Amount”
means
      $5,000,000.

     

    “Capital
      Expenditures”
means,
      for any Person
      for any
      period, the aggregate of all expenditures, whether or not made through the
      incurrence of Indebtedness, by such Person and its Subsidiaries during such
      period for the acquisition, leasing (pursuant to a Capital Lease), construction,
      replacement, repair, substitution or improvement of fixed or capital assets
      or
      additions to equipment, in each case required to be capitalized under GAAP
      on a
      Consolidated balance sheet of such Person.

     

    “Capital
      Lease”
means,
      with respect to any Person, any lease of, or other arrangement conveying the
      right to use, any property (whether real, personal or mixed) by such Person
      as
      lessee that has been or should be accounted for as a capital lease on a balance
      sheet of such Person prepared in accordance with GAAP.

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    “Capitalized
      Lease Obligations”
means,
      at any time, with respect to any Capital Lease, any lease entered into as part
      of any sale/leaseback transaction of any Person or any synthetic lease, the
      amount of all obligations of such Person that is (or that would be, if such
      synthetic lease or other lease were accounted for as a Capital Lease)
      capitalized on a balance sheet of such Person prepared in accordance with
      GAAP.

     

    “Charter”
has
      the
      meaning given such term in Section 12(c)(iv).

     

    “Chattel
      Paper”
means
      all “chattel paper,” as such term is defined in the UCC, including electronic
      chattel paper, now owned or hereafter acquired by any Person.

     

    “Closing
      Date”
means
      the date on which any Company shall first receive proceeds of the initial Loans
      or the date hereof, if no Loan is made under the facility on the date
      hereof.

     

    “Code”
has
      the
      meaning given such term in Section 15(i).

     

    “Collateral”
means
      all of each Company’s property and assets, whether real or personal, tangible or
      intangible, and whether now owned or hereafter acquired, or in which it now
      has
      or at any time in the future may acquire any right, title or interests including
      all of the following property in which it now has or at any time in the future
      may acquire any right, title or interest:

     

    (a) all
      Inventory;

     

    (b) all
      Equipment;

     

    (c) all
      Fixtures;

     

    (d) all
      Goods;

     

    (e) all
      General Intangibles;

     

    (f) all
      Accounts;

     

    (g) all
      Deposit Accounts, other bank accounts and all funds on deposit
      therein;

     

    (h) all
      Investment Property;

     

    (i) all
      Stock;

     

    (j) all
      Chattel Paper;

     

    (k) all
      Letter-of-Credit Rights;

     

    (l) all
      Instruments;

     

    (m) all
      commercial tort claims set forth on Schedule
      1(A);

     

    (n) all
      Books
      and Records;

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (o) all
      Intellectual Property;

     

    (p) all
      Supporting Obligations including letters of credit and guarantees issued in
      support of Accounts, Chattel Paper, General Intangibles and Investment
      Property;

     

    (q) (i)
      all
      money, cash and cash equivalents and (ii) all cash held as cash collateral
      to
      the extent not otherwise constituting Collateral, all other cash or property
      at
      any time on deposit with or held by Calliope for the account of any Company
      (whether for safekeeping, custody, pledge, transmission or otherwise);
      and

     

    (r) all
      products and Proceeds of all or any of the foregoing, tort claims and all claims
      and other rights to payment including (i) insurance claims against third parties
      for loss of, damage to, or destruction of, the foregoing Collateral and (ii)
      payments due or to become due under leases, rentals and hires of any or all
      of
      the foregoing and Proceeds payable under, or unearned premiums with respect
      to
      policies of insurance in whatever form.

     

    “Common
      Stock”
means
      the shares of stock representing the Parent’s common equity
      interests.

     

    “Company
      Agent”
means
      the Parent.

     

    “Compliance
      Certificate”
means
      a
      certificate substantially in the form of Exhibit C.

     

    “Consolidated”
means,
      with respect to any Person, the accounts of such Person and its Subsidiaries
      consolidated in accordance with GAAP.

     

    “Consolidated
      Cash Interest Expense”
means,
      with respect to any Person for any period, the Consolidated Interest Expense
      of
      such Person for such period less
      the sum
      of, in each case to the extent included in the definition of Consolidated
      Interest Expense, (a) the amortized amount of debt discount and debt issuance
      costs, (b) charges relating to write-ups or write-downs in the book or carrying
      value of existing Consolidated Total Debt, (c) interest payable in evidences
      of
      Indebtedness or by addition to the principal of the related Indebtedness and
      (d)
      other non-cash interest.

     

    “Consolidated
      EBITDA”
means,
      with respect to any Person for any period, (a) the Consolidated Net Income
      of
      such Person for such period plus
      (b) the
      sum of, in each case to the extent included in the calculation of such
      Consolidated Net Income but without duplication, (i) any provision for
      United States federal income taxes or other taxes measured by net income, (ii)
      Consolidated Interest Expense, amortization of debt discount and commissions
      and
      other fees and charges associated with Indebtedness (except amortization and
      expenses related to the consummation of the initial Loans on the Closing Date
      and the payment of all fees, costs and expenses associated with the foregoing),
      (iii) any loss from extraordinary items, (iv) any depreciation, depletion and
      amortization expense, (v) any aggregate net loss on the sale of property (other
      than accounts (as defined under the applicable UCC) and Inventory) outside
      the
      ordinary course of business and (vi) any other non-cash expenditure, charge
      or loss for such period (other than any non-cash expenditure, charge or loss
      relating to write-offs, write-downs or reserves with respect to accounts (as
      defined under the applicable UCC) and Inventory), including the amount of any
      compensation deduction as the result of any grant of Equity Interests to
      employees, officers, directors or consultants and minus
      (c) the
      sum of, in each case to the extent included in the calculation of such
      Consolidated Net Income and without duplication, (i) any credit for United
      States federal income taxes or other taxes measured by net income, (ii) any
      interest income, (iii) any gain from extraordinary items and any other
      non-recurring gain, (iv) any aggregate net gain from the sale of property (other
      than accounts (as defined in the applicable UCC) and Inventory) out of the
      ordinary course of business by such Person, (v) any other non-cash gain,
      including any reversal of a charge referred to in clause (b)(vi) above by reason
      of a decrease in the value of any Equity Interests, and (vi) any other cash
      payment in respect of expenditures, charges and losses that have been added
      to
      Consolidated EBITDA of such Person pursuant to clause (b)(vi) above in any
      prior
      period.

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    “Consolidated
      Fixed Charge Coverage Ratio”
means,
      with respect to any Person for any period, the ratio of (a) Consolidated EBITDA
      of such Person for such period minus
      Capital
      Expenditures of such Person for such period minus
      the
      total liability for United States federal income taxes and other taxes measured
      by net income actually payable by such Person in respect of such period to
      (b)
      the Consolidated Fixed Charges of such Person for such period.

     

    “Consolidated
      Fixed Charges”
means,
      with respect to any Person for any period, the sum, determined on a Consolidated
      basis, of (a) the Consolidated Cash Interest Expense of such Person and its
      Subsidiaries for such period, (b) the principal amount of Consolidated Total
      Debt of such Person and its Subsidiaries having a scheduled due date during
      such
      period, (c) all cash dividends payable by such Person and its Subsidiaries
      on
      Equity Interests in respect of such period to Persons other than such Person
      and
      its Subsidiaries and (d) all commitment fees and other costs, fees and expenses
      payable by such Person and its Subsidiaries during such period in order to
      effect, or because of, the incurrence of any Indebtedness.

     

    “Consolidated
      Interest Expense”
means,
      for any Person for any period, (a) Consolidated total interest expense of such
      Person and its Subsidiaries for such period and including, in any event, (i)
      interest capitalized during such period and net costs under Interest Rate
      Contracts for such period and (ii) all fees, charges, commissions, discounts
      and
      other similar obligations (other than reimbursement obligations) with respect
      to
      letters of credit, bank guarantees, banker’s acceptances, surety bonds and
      performance bonds (whether or not matured) payable by such Person and its
      Subsidiaries during such period minus
      (b) the
      sum of (i) Consolidated net gains of such Person and its Subsidiaries under
      Interest Rate Contracts for such period and (ii) Consolidated interest
      income of such Person and its Subsidiaries for such period.

     

    “Consolidated
      Leverage Ratio”
means,
      with respect to any Person as of any date, the ratio of (a) Consolidated Total
      Debt of such Person outstanding as of such date to (b) Consolidated EBITDA
      for
      such Person for the last period of four consecutive fiscal quarters ending
      on or
      before such date.

     

    “Consolidated
      Net Income”
means,
      with respect to any Person, for any period, the Consolidated net income (or
      loss) of such Person and its Subsidiaries for such period; provided,
      however,
      that
      the following shall be excluded: (a) the net income of any other Person in
      which
      such Person or one of its Subsidiaries has a joint interest with a third-party
      (which interest does not cause the net income of such other Person to be
      Consolidated into the net income of such Person), except to the extent of the
      amount of dividends or distributions paid to such Person or Subsidiary, (b)
      the
      net income of any Subsidiary of such Person that is, on the last day of such
      period, subject to any restriction or limitation on the payment of dividends
      or
      the making of other distributions, to the extent of such restriction or
      limitation and (c) the net income of any other Person arising prior to such
      other Person becoming a Subsidiary of such Person or merging or consolidating
      into such Person or its Subsidiaries.

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    “Consolidated
      Total Debt”
of
      any
      Person means all Indebtedness of a type described in clause (a), (b), (c)(i),
      (d), (f), (g) or (i) of the definition thereof, in each case of such Person
      and
      its Subsidiaries on a Consolidated basis.

     

    “Contract
      Rate”
has
      the
      meaning given such term in the respective Note.

     

    “Contractual
      Obligation”
means,
      with respect to any Person, any provision of any indenture, mortgage, deed
      of
      trust, contract, undertaking, agreement or other instrument to which such Person
      is a party or by which it or any of its property is bound or to which any of
      its
      property is subject.

     

    “Default”
means
      any act or event that, with the giving of notice or passage of time or both,
      would constitute an Event of Default.

     

    “Deposit
      Accounts”
means
      all “deposit accounts” as such term is defined in the UCC, now or hereafter held
      in the name of any Person, including, without limitation, the
      Lockboxes.

     

    “Disclosure
      Controls”
has
      the
      meaning given such term in Section 12(f)(iv).

     

    “Documents”
means
      all “documents”, as such term is defined in the UCC, now owned or hereafter
      acquired by any Person, wherever located, including all bills of lading, dock
      warrants, dock receipts, warehouse receipts, and other documents of title,
      whether negotiable or non-negotiable.

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    “Eligible
      Accounts”
means
      each Account of each Company which conforms to the following criteria: (a)
      shipment of the merchandise or the rendition of services has been completed;
      (b)
      no return, rejection or repossession of the merchandise has occurred;
      (c) merchandise or services shall not have been rejected or disputed by the
      Account Debtor and there shall not have been asserted any offset, defense or
      counterclaim; (d) continues to be in full conformity with the representations
      and warranties made by such Company to Calliope with respect thereto; (e)
      Calliope is, and continues to be, satisfied, in its reasonable credit judgment,
      with the credit standing of the Account Debtor in relation to the amount of
      credit extended; (f) there are no facts existing or threatened which are likely
      to result in any adverse change in an Account Debtor’s financial condition; (g)
      is documented by an invoice in a form approved by Calliope and shall not be
      unpaid more than ninety (90) days from invoice date; (h) not more than
      twenty-five percent (25%) of the unpaid amount of invoices due from such Account
      Debtor remains unpaid more than ninety (90) days from invoice date; (i) is
      not
      evidenced by chattel paper or an instrument of any kind with respect to or
      in
      payment of the Account unless such instrument is duly endorsed to and in
      possession of Calliope or represents a check in payment of an Account; (j)
      the
      Account Debtor is located in the United States, the United Kingdom or Canada;
      (k) Calliope has a first priority perfected Lien in such Account and such
      Account is not subject to any Lien other than Permitted Liens; (l) does not
      arise out of transactions with any employee, officer, director, stockholder
      or
      Affiliate of any Company; (m) is payable to such Company; (n) does not arise
      out
      of a bill and hold sale prior to shipment and does not arise out of a sale
      to
      any Person to which such Company is indebted; (o) is net of any returns,
      discounts, claims, credits and allowances (p) is net of any royalty fees payable
      by such Company in connection with such Account; (q) if the Account arises
      out
      of contracts between such Company, on the one hand, and the United States,
      on
      the other hand, any state, or any department, agency or instrumentality of
      any
      of them, such Company has so notified Calliope, in writing, prior to the
      creation of such Account, and there has been compliance with any governmental
      notice or approval requirements, including compliance with the Federal
      Assignment of Claims Act; (r) is a good and valid account representing an
      undisputed bona fide indebtedness incurred by the Account Debtor therein named,
      for a fixed sum as set forth in the invoice relating thereto with respect to
      an
      unconditional sale and delivery upon the stated terms of goods sold by such
      Company or work, labor and/or services rendered by such Company; (s) does not
      arise out of progress billings prior to completion of the order; (t) the total
      unpaid Accounts from such Account Debtor does not exceed twenty-five percent
      (25%) of all Eligible Accounts; (u) such Company’s right to payment is absolute
      and not contingent upon the fulfillment of any condition whatsoever; (v) such
      Company is able to bring suit and enforce its remedies against the Account
      Debtor through judicial process; (w) does not represent interest payments,
      late
      or finance charges owing to such Company, and (x) is otherwise satisfactory
      to
      Calliope as determined by Calliope in the exercise of its commercially
      reasonable discretion exercised in good faith. In the event any Company requests
      that Calliope include within Eligible Accounts certain Accounts of one or more
      of such Company’s acquisition targets, Calliope shall at the time of such
      request consider such inclusion, but any such inclusion shall be at the sole
      option of Calliope and shall at all times be subject to the execution and
      delivery to Calliope of all such documentation (including, without limitation,
      guaranty and security documentation) as Calliope may require in its sole
      discretion.

     

    “Eligible
      Credit Insured Accounts”
means
      each Account of each Company which conforms to the following criteria: (a)
      the
      Account Debtor is not located in the United States, the United Kingdom or
      Canada, (b) such Account is insured a minimum of ninety-five (95%) under an
      Ex-Im Bank Multi-Buyer Export Credit Insurance Policy issued by the
      Export-Import Bank of the United States, with such coverages, terms and amounts
      acceptable to Calliope in its sole and absolute discretion, which credit
      insurance policy has been assigned to Calliope on terms and conditions
      acceptable to Calliope in its sole and absolute discretion and (c) except
      for the failure to comply with subsection (j) of such definition, is otherwise
      deemed an “Eligible Account” hereunder.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    “Eligible
      Purchase Order”
means
      each Purchase Order of each Company which conforms to the following criteria:
      (a) such Company has irrevocably directed the Approved Leasing Company to make
      payments of all amounts due under such Purchase Order to the Lockboxes, (b)
      copies of such Purchase Order and an Approved Lease covering the Products listed
      in such Purchase Order shall be in form and substance satisfactory to Calliope,
      (c) the Products set forth in such Purchase Order have been shipped to the
      applicable Golf Course Customer and Calliope has received satisfactory evidence
      of such shipment, (d) such Purchase Order shall not be unpaid more than thirty
      (30) days from the date the Products listed in such Purchase Order have been
      shipped to the applicable Golf Course Customer, (e) such Purchase Order has
      not
      been cancelled by the Approved Leasing Company or the Golf Course Customer
      named
      thereon, (f) the Golf Course Customer to whom the Products listed in such
      Purchase Order have been shipped has not notified the Approved Leasing Company
      that it is not accepting such Products, (g) if an Approved Leasing Company
      has
      succeeded to the rights of the lessor named in the Approved Lease covering
      the
      Products listed in such Purchase Order pursuant to an assignment of such
      Approved Lease by ProLink Solutions, LLC, d/b/a ProLink Capital, the
      consideration paid by the Approved Leasing Company to ProLink Solutions, LLC,
      d/b/a ProLink Capital, under such assignment shall not be less than the amount
      due under such Purchase Order, (h) Calliope has taken such action as it chooses
      to verify the validity of such Purchase Order which verification may include,
      without limitation, direct confirmation from the Approved Leasing Company and/or
      the Golf Course Customer, (i) such Purchase Order, the Products listed thereon
      and the related Purchase Order Proceeds are free and clear of all Liens except
      Permitted Liens, and (j) such Purchase Order is otherwise satisfactory to
      Calliope as determined by Calliope in the exercise of its sole
      discretion.

     

    “Eligible
      Subsidiary”
means
      each Subsidiary of the Parent set forth on Exhibit
      A hereto,
      as the same may be updated from time to time with Calliope’s written
      consent.

     

    “Equipment”
means
      all “equipment” as such term is defined in the UCC, now owned or hereafter
      acquired by any Person, wherever located, including any and all machinery,
      apparatus, equipment, fittings, furniture, Fixtures, motor vehicles and other
      tangible personal property (other than Inventory) of every kind and description
      that may be now or hereafter used in such Person’s operations or that are owned
      by such Person or in which such Person may have an interest, and all parts,
      accessories and accessions thereto and substitutions and replacements
      therefor.

     

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

     

    “ERISA”
has
      the
      meaning given such term in Section 12(bb).

     

    “Event
      of Default”
means
      the occurrence of any of the events set forth in Section 19.

     

    “Exchange
      Act”
means
      the Securities Exchange Act of 1934, as amended.

     

    “Exchange
      Act Filings”
means
      the Parent’s filings under the Exchange Act made prior to the date of this
      Agreement.

     

    “Existing
      Indebtedness”
means
      any and all obligations and liabilities of each Company owing to Comerica Bank,
      FOC Financial Limited Partnership, Robeco WPG Distressed/Special Situations
      Overseas, L.P. and Robeco WPG Event-Driven Multi-Strategy Overseas,
      L.P..

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

     

    “Financial
      Reporting Controls”
has
      the
      meaning given such term in Section 12(f)(v).

     

    “Fixtures”
means
      all “fixtures” as such term is defined in the UCC, now owned or hereafter
      acquired by any Person.

     

    “Formula
      Amount”
means
      the Receivable Formula Amount and the Purchase Order Formula Amount,
      collectively.

     

    “GAAP”
means
      generally accepted accounting principles, practices and procedures in effect
      from time to time in the United States of America.

     

    “General
      Intangibles”
means
      all “general intangibles” as such term is defined in the UCC, now owned or
      hereafter acquired by any Person including all right, title and interest that
      such Person may now or hereafter have in or under any contract, all Payment
      Intangibles, customer lists, Licenses, Intellectual Property, interests in
      partnerships, joint ventures and other business associations, permits,
      proprietary or confidential information, inventions (whether or not patented
      or
      patentable), technical information, procedures, designs, knowledge, know-how,
      Software, data bases, data, skill, expertise, experience, processes, models,
      drawings, materials, Books and Records, Goodwill (including the Goodwill
      associated with any Intellectual Property), all rights and claims in or under
      insurance policies (including insurance for fire, damage, loss, and casualty,
      whether covering personal property, real property, tangible rights or intangible
      rights, all liability, life, key-person, and business interruption insurance,
      and all unearned premiums), uncertificated securities, choses in action, deposit
      accounts, rights to receive tax refunds and other payments, rights to received
      dividends, distributions, cash, Instruments and other property in respect of
      or
      in exchange for pledged Stock and Investment Property, and rights of
      indemnification.

     

    “Golf
      Course Customer”
means
      a
      golf course owner to which Products are shipped pursuant to a Purchase
      Order.

     

    “Goods”
means
      all “goods”, as such term is defined in the UCC, now owned or hereafter acquired
      by any Person, wherever located, including embedded software to the extent
      included in “goods” as defined in the UCC, manufactured homes, fixtures,
      standing timber that is cut and removed for sale and unborn young of
      animals.

     

    “Goodwill”
means
      all goodwill, trade secrets, proprietary or confidential information, technical
      information, procedures, formulae, quality control standards, designs, operating
      and training manuals, customer lists, and distribution agreements now owned
      or
      hereafter acquired by any Person.

     

    “Governmental
      Authority”
means
      any nation or government, any state or other political subdivision thereof,
      and
      any agency, department or other entity exercising executive, legislative,
      judicial, regulatory or administrative functions of or pertaining to
      government.

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

     

    “Guaranty
      Obligation”
means,
      as applied to any Person, any direct or indirect liability, contingent or
      otherwise, of such Person for any Indebtedness, lease, dividend or other
      obligation (the “primary
      obligation”)
      of
      another Person (the “primary
      obligor”),
      if
      the purpose or intent of such Person in incurring such liability, or the
      economic effect thereof, is to guarantee such primary obligation or provide
      support, assurance or comfort to the holder of such primary obligation or to
      protect or indemnify such holder against loss with respect to such primary
      obligation, including (a) the direct or indirect guaranty, endorsement (other
      than for collection or deposit in the ordinary course of business), co-making,
      discounting with recourse or sale with recourse by such Person of any primary
      obligation, (b) the incurrence of reimbursement obligations with respect to
      any
      letter of credit or bank guarantee in support of any primary obligation, (c)
      the
      existence of any Lien, or any right, contingent or otherwise, to receive a
      Lien,
      on the property of such Person securing any part of any primary obligation
      and
      (d) any liability of such Person for a primary obligation through any
      Contractual Obligation (contingent or otherwise) or other arrangement (i) to
      purchase, repurchase or otherwise acquire such primary obligation or any
      security therefor or to provide funds for the payment or discharge of such
      primary obligation (whether in the form of a loan, advance, stock purchase,
      capital contribution or otherwise), (ii) to maintain the solvency, working
      capital, equity capital or any balance sheet item, level of income or cash
      flow,
      liquidity or financial condition of any primary obligor, (iii) to make
      take-or-pay or similar payments, if required, regardless of non-performance
      by
      any other party to any Contractual Obligation, (iv) to purchase, sell or lease
      (as lessor or lessee) any property, or to purchase or sell services, primarily
      for the purpose of enabling the primary obligor to satisfy such primary
      obligation or to protect the holder of such primary obligation against loss
      or
      (v) to supply funds to or in any other manner invest in, such primary obligor
      (including to pay for property or services irrespective of whether such property
      is received or such services are rendered); provided, however, that “Guaranty
      Obligations” shall not include (x) endorsements for collection or deposit in the
      ordinary course of business and (y) product warranties given in the ordinary
      course of business. The outstanding amount of any Guaranty Obligation shall
      equal the outstanding amount of the primary obligation so guaranteed or
      otherwise supported or, if lower, the stated maximum amount for which such
      Person may be liable under such Guaranty Obligation.

     

    “Hedging
      Agreement”
means
      any Interest Rate Contract, foreign exchange, swap, option or forward contract,
      spot, cap, floor or collar transaction, any other derivative instrument and
      any
      other similar speculative transaction and any other similar agreement or
      arrangement designed to alter the risks of any Person arising from fluctuations
      in any underlying variable.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    “Indebtedness”
of
      any
      Person means, without duplication, any of the following, whether or not matured:
      (a) all indebtedness for borrowed money (including, without limitation, all
      principal, interest, fees and charges relating thereto), (b) all obligations
      evidenced by notes, bonds, debentures or similar instruments, (c) all
      reimbursement and all obligations with respect to (i) letters of credit, bank
      guarantees or bankers’ acceptances or (ii) surety, customs, reclamation or
      performance bonds (in each case not related to judgments or litigation) other
      than those entered into in the ordinary course of business, (d) all obligations
      to pay the deferred purchase price of property or services, other than trade
      payables incurred in the ordinary course of business, (e) all obligations
      created or arising under any conditional sale or other title retention
      agreement, regardless of whether the rights and remedies of the seller or lender
      under such agreement in the event of default are limited to repossession or
      sale
      of such property, (f) all Capitalized Lease Obligations, (g) all obligations,
      whether or not contingent, to purchase, redeem, retire, defease or otherwise
      acquire for value any of its own Equity Interests (or any Equity Interests
      of a
      direct or indirect parent entity thereof) prior to the date that is 180 days
      after the later of (i) the expiration of the Term Loan Term or (ii) the Revolver
      Term, valued at, in the case of redeemable preferred Equity Interests, the
      greater of the voluntary liquidation preference and the involuntary liquidation
      preference of such Equity Interests plus accrued and unpaid dividends, (h)
      all
      payments that would be required to be made in respect of any Hedging Agreement
      in the event of a termination (including an early termination) on the date
      of
      determination and (i) all Guaranty Obligations for obligations of any other
      Person constituting Indebtedness of such other Person; provided, however, that
      the items in each of clauses (a) through (i) above shall constitute
“Indebtedness” of such Person solely to the extent, directly or indirectly, (x)
      such Person is liable for any part of any such item, (y) any such item is
      secured by a Lien on such Person’s property or (z) any other Person has a right,
      contingent or otherwise, to cause such Person to become liable for any part
      of
      any such item or to grant such a Lien.

     

    “Instruments”
means
      all “instruments”, as such term is defined in the UCC, now owned or hereafter
      acquired by any Person, wherever located, including all certificated securities
      and all promissory notes and other evidences of indebtedness, other than
      instruments that constitute, or are a part of a group of writings that
      constitute, Chattel Paper.

     

    “Intellectual
      Property”
means
      any and all patents, trademarks, service marks, trade names, copyrights, trade
      secrets, Licenses, information and other proprietary rights and
      processes.

     

    “Interest
      Rate Contracts”
means
      all interest rate swap agreements, interest rate cap agreements, interest rate
      collar agreements and interest rate insurance.

     

    “Inventory”
means
      all “inventory”, as such term is defined in the UCC, now owned or hereafter
      acquired by any Person, wherever located, including all inventory, merchandise,
      goods and other personal property that are held by or on behalf of such Person
      for sale or lease or are furnished or are to be furnished under a contract
      of
      service or that constitute raw materials, work in process, finished goods,
      returned goods, or materials or supplies of any kind, nature or description
      used
      or consumed or to be used or consumed in such Person’s business or in the
      processing, production, packaging, promotion, delivery or shipping of the same,
      including all supplies and embedded software.

     

    “Investment
      Property”
means
      all “investment property”, as such term is defined in the UCC, now owned or
      hereafter acquired by any Person, wherever located.

     

    “Investor
      First Refusal Rights”
means
      those rights granted by the Parent to Qualified Investors (as defined in the
      SPA) pursuant to Section 4.8 of the SPA, as in effect on the date
      hereof.

     

    “Letter-of-Credit
      Rights”
means
      “letter-of-credit rights” as such term is defined in the UCC, now owned or
      hereafter acquired by any Person, including rights to payment or performance
      under a letter of credit, whether or not such Person, as beneficiary, has
      demanded or is entitled to demand payment or performance.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    “License”
means
      any rights under any written agreement now or hereafter acquired by any Person
      to use any trademark, trademark registration, copyright, copyright registration
      or invention for which a patent is in existence or other license of rights
      or
      interests now held or hereafter acquired by any Person.

     

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

     

    “Loans”
means
      the Revolving Loans, the Term Loan and all other extensions of credit hereunder
      and under any Ancillary Agreement.

     

    “Lockboxes”
has
      the
      meaning given such term in Section 8(a).

     

    “Material
      Adverse Effect”
means
      a
      material adverse effect on (a) the business, assets, liabilities, condition
      (financial or otherwise), properties, operations or prospects of any Company
      or
      any of its Subsidiaries (taken individually and as a whole), (b) any Company’s
      or any of its Subsidiary’s ability to pay or perform the Obligations in
      accordance with the terms hereof or any Ancillary Agreement, (c) the sufficiency
      and/or value of the Collateral, the Liens on the Collateral or the priority
      of
      any such Lien or (d) the practical realization of the benefits of Calliope’s
      rights and remedies under this Agreement and the Ancillary Agreements. Without
      limiting the foregoing, any event or occurrence adverse to any Company that
      results or could reasonably be expected to result in costs and/or liabilities
      or
      loss of revenues, individually or in the aggregate to such Company in excess
      of
      30% of such Company’s revenue shall constitute a Material Adverse
      Effect.

     

    “NASD”
has
      the
      meaning given such term in Section 13(b).

     

    “Note
      Shares”
has
      the
      meaning given such term in Section 12(a).

     

    “Notes”
means
      the Secured Revolving Note and the Secured Convertible Term Note made by
      Companies in favor of Calliope in connection with the transactions contemplated
      hereby, as each of the same may be amended, supplemented, restated and/or
      otherwise modified from time to time.

     

    “Obligations”
means
      all Loans, all advances, debts, liabilities, obligations, covenants and duties
      owing by each Company and each of its Subsidiaries to Calliope (or any
      corporation that directly or indirectly controls or is controlled by or is
      under
      common control with Calliope) of every kind and description (whether or not
      evidenced by any note or other instrument and whether or not for the payment
      of
      money or the performance or non-performance of any act), direct or indirect,
      absolute or contingent, due or to become due, contractual or tortious,
      liquidated or unliquidated, whether existing by operation of law or otherwise
      now existing or hereafter arising including any debt, liability or obligation
      owing from any Company and/or each of its Subsidiaries to others which Calliope
      may have obtained by assignment or otherwise and further including all interest
      (including interest accruing at the then applicable rate provided in this
      Agreement after the maturity of the Loans and interest accruing at the then
      applicable rate provided in this Agreement after the filing of any petition
      in
      bankruptcy, or the commencement of any insolvency, reorganization or like
      proceeding, whether or not a claim for post-filing or post-petition interest
      is
      allowed or allowable in such proceeding), charges or any other payments each
      Company and each of its Subsidiaries is required to make by law or otherwise
      arising under or as a result of this Agreement or the Ancillary Agreements,
      together with all reasonable expenses and reasonable attorneys’ fees chargeable
      to the Companies’ or any of their Subsidiaries’ accounts or incurred by Calliope
      in connection therewith.

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

     

    “Payment
      Intangibles”
means
      all “payment intangibles” as such term is defined in the UCC, now owned or
      hereafter acquired by any Person, including, a General Intangible under which
      the Account Debtor’s principal obligation is a monetary obligation.

     

    “Permitted
      Liens”
means
      (a) Liens of carriers, warehousemen, artisans, bailees, mechanics and
      materialmen incurred in the ordinary course of business securing sums not
      overdue; (b) Liens incurred in the ordinary course of business in connection
      with worker’s compensation, unemployment insurance or other forms of
      governmental insurance or benefits, relating to employees, securing sums (i)
      not
      overdue or (ii) being diligently contested in good faith provided that adequate
      reserves with respect thereto are maintained on the books of the Companies
      and
      their Subsidiaries, as applicable, in conformity with GAAP; (c) Liens in
      favor of Calliope; (d) Liens for taxes (i) not yet due or (ii) being diligently
      contested in good faith by appropriate proceedings, provided that adequate
      reserves with respect thereto are maintained on the books of the Companies
      and
      their Subsidiaries, as applicable, in conformity with GAAP; and which have
      no
      effect on the priority of Liens in favor of Calliope or the value of the assets
      in which Calliope has a Lien; (e) Purchase Money Liens securing Purchase Money
      Indebtedness to the extent permitted in this Agreement and (f) Liens specified
      on Schedule
      2.

     

    “Person”
means
      any individual, sole proprietorship, partnership, limited liability partnership,
      joint venture, trust, unincorporated organization, association, corporation,
      limited liability company, institution, public benefit corporation, entity
      or
      government (whether federal, state, county, city, municipal or otherwise,
      including any instrumentality, division, agency, body or department thereof),
      and shall include such Person’s successors and assigns.

     

    “Principal
      Market”
means
      the NASD Over The Counter Bulletin Board, NASDAQ Capital Market, NASDAQ National
      Market System, American Stock Exchange or New York Stock Exchange (whichever
      of
      the foregoing is at the time the principal trading exchange or market for the
      Common Stock).

     

    “Proceeds”
means
      “proceeds”, as such term is defined in the UCC and, in any event, shall include:
      (a) any and all proceeds of any insurance, indemnity, warranty or guaranty
      payable to any Company or any other Person from time to time with respect to
      any
      Collateral; (b) any and all payments (in any form whatsoever) made or due and
      payable to any Company from time to time in connection with any requisition,
      confiscation, condemnation, seizure or forfeiture of any Collateral by any
      governmental body, governmental authority, bureau or agency (or any person
      acting under color of governmental authority); (c) any claim of any Company
      against third parties (i) for past, present or future infringement of any
      Intellectual Property or (ii) for past, present or future infringement or
      dilution of any trademark or trademark license or for injury to the goodwill
      associated with any trademark, trademark registration or trademark licensed
      under any trademark License; (d) any recoveries by any Company against third
      parties with respect to any litigation or dispute concerning any Collateral,
      including claims arising out of the loss or nonconformity of, interference
      with
      the use of, defects in, or infringement of rights in, or damage to, Collateral;
      (e) all amounts collected on, or distributed on account of, other Collateral,
      including dividends, interest, distributions and Instruments with respect to
      Investment Property and pledged Stock; (f) any and all other amounts, rights
      to
      payment or other property acquired upon the sale, lease, license, exchange
      or
      other disposition of Collateral and all rights arising out of Collateral; and
      (g) Purchase Order Proceeds.

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    “Product”
means
      the finished goods to be purchased by an Approved Leasing Company and delivered
      to a Golf Course Customer pursuant to a Purchase Order.

     

    “ProLink
      UK”
means
      ProLink UK, Ltd., a company organized under the laws of England and
      Wales.

     

    “Purchase
      Money Indebtedness”
means
      (a) any indebtedness incurred for the payment of all or any part of the purchase
      price of any fixed asset, including indebtedness under capitalized leases,
      (b)
      any indebtedness incurred for the sole purpose of financing or refinancing
      all
      or any part of the purchase price of any fixed asset, and (c) any renewals,
      extensions or refinancings thereof (but not any increases in the principal
      amounts thereof outstanding at that time).

     

    “Purchase
      Money Lien”
means
      any Lien upon any fixed assets that secures the Purchase Money Indebtedness
      related thereto but only if such Lien shall at all times be confined solely
      to
      the asset the purchase price of which was financed or refinanced through the
      incurrence of the Purchase Money Indebtedness secured by such Lien and only
      if
      such Lien secures only such Purchase Money Indebtedness.

     

    “Purchase
      Order”
means
      a
      purchase order delivered to any Company from an Approved Leasing Company in
      the
      ordinary course of its business.

     

    “Purchase
      Order Availability”
means
      the lesser of (a) ninety percent (90%) of the Purchase Order Price set forth
      in
      the Eligible Purchase Orders and (b) $1,000,000; provided, however, that in
      calculating the amount of Purchase Order Availability, the aggregate amount
      of
      availability generated from Approved Leases with Approved Leasing Companies
      other than US Express Leasing or VGM Financial shall not exceed $200,000 at
      any
      time.

     

    “Purchase
      Order Formula Amount”
has
      the
      meaning given such term in Section 2(a)(i)(B).

     

    “Purchase
      Order Inventory”
means
      the Inventory consisting of Products required to satisfy a Purchase
      Order.

     

    “Purchase
      Order Invoice”
means
      the invoice rendered upon delivery of the Products pursuant to a Purchase
      Order.

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    “Purchase
      Order Price”
means
      the purchase price set forth in the Purchase Order to be paid by an Approved
      Leasing Company for Products that are shipped to a Golf Course
      Customer.

     

    “Purchase
      Order Proceeds”
means
      payments received on account of Purchase Order Invoices (whether paid by a
      Approved Leasing Company or any other Person).

     

    “Purchase
      Order Revolving Loans”
has
      the
      meaning given such term in Section 2(a)(i)(B).

     

    “Registration
      Rights Agreements”
means
      that certain Registration Rights Agreement dated as of the Closing Date by
      and
      between the Parent and Calliope and each other registration rights agreement
      by
      and between the Parent and Calliope, as each of the same may be amended,
      modified and supplemented from time to time.

     

    “Revolver
      Term”
means
      the Closing Date through the close of business on the day immediately preceding
      the second anniversary of the Closing Date, subject to acceleration at the
      option of Calliope upon the occurrence of an Event of Default hereunder or
      other
      termination hereunder.

     

    “Revolving
      Loans”
has
      the
      meaning given such term in Section 2(a)(i)(B).

     

    “SEC”
means
      the Securities and Exchange Commission.

     

    “SEC
      Reports”
has
      the
      meaning given such term in Section 12(u).

     

    “Secured
      Revolving Note”
means
      that certain Secured Revolving Note dated as of the Closing Date made by the
      Companies in favor of Calliope in the original face amount of Five Million
      Dollars ($5,000,000), as the same may be amended, supplemented, restated and/or
      otherwise modified from time to time.

     

    “Secured
      Convertible Term Note”
means
      that certain Secured Convertible Term Note dated as of the Closing Date made
      by
      the Companies in favor of Calliope in the original face amount of Four Million
      Dollars ($4,000,000), as the same may be amended, supplemented, restated and/or
      otherwise modified from time to time.

     

    “Securities”
means
      the Notes and the Warrants and the shares of Common Stock which may be issued
      pursuant to conversion of the Secured Convertible Term Note in whole or in
      part
      exercise of such Warrants.

     

    “Securities
      Act”
has
      the
      meaning given such term in Section 12(r).

     

    “Security
      Documents”
means
      all security agreements, mortgages, cash collateral deposit letters, pledges
      and
      other agreements which are executed in connection with this Agreement by any
      Company or any of its Subsidiaries in favor of Calliope.

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    “Software”
means
      all “software” as such term is defined in the UCC, now owned or hereafter
      acquired by any Person, including all computer programs and all supporting
      information provided in connection with a transaction related to any
      program.

     

    “Solvent”
means,
      with respect to any Person on a particular date, that on such date (a) the
      fair
      value of the property of such Person is greater than the total amount of
      liabilities, including contingent liabilities, of such Person; (b) the present
      fair salable value of the assets of such Person is not less than the amount
      that
      will be required to pay the probable liability of such Person on its debts
      as
      they become absolute and matured; (c) such Person does not intend to, and does
      not believe that it will, incur debts or liabilities beyond such Person’s
      ability to pay as such debts and liabilities mature; and (d) such Person is
      not
      engaged in a business or transaction, and is not about to engage in a business
      or transaction, for which such Person’s property would constitute and
      unreasonably small capital. The amount of contingent liabilities (such as
      litigation, guaranties and pension plan liabilities) at any time shall be
      computed as the amount that, in light of all the facts and circumstances
      existing at the time, represents the amount that can reasonably be expected
      to
      become an actual or matured liability.

     

    “SPA”
means
      that certain Securities Purchase Agreement dated as of December 31, 2006 by
      and
      among ProLink Holdings Corp. and the investors listed on the Schedule of
      Investors attached thereto as in effect on the date thereof.

     

    “Stock”
means
      all certificated and uncertificated shares, options, warrants, membership
      interests, general or limited partnership interests, participation or other
      equivalents (regardless of how designated) of or in a corporation, partnership,
      limited liability company or equivalent entity whether voting or nonvoting,
      including common stock, preferred stock, or any other “equity security” (as such
      term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated
      by the SEC under the Securities Exchange Act of 1934).

     

    “Subsidiary”
means,
      with respect to any Person, (i) any other Person whose shares of stock or other
      ownership interests having ordinary voting power (other than stock or other
      ownership interests having such power only by reason of the happening of a
      contingency) to elect a majority of the directors or other governing body of
      such other Person, are owned, directly or indirectly, by such Person or (ii)
      any
      other Person in which such Person owns, directly or indirectly, more than 50%
      of
      the equity interests at such time.

     

    “Supporting
      Obligations”
means
      all “supporting obligations” as such term is defined in the UCC.

     

    “Term”
means
      (a) with respect to the Revolving Loans, the Revolver Term and (b) with respect
      to the Term Loan, the Term Loan Term.

     

    “Term
      Loan”
has
      the
      meaning given such term in Section 2(b).

     

    “Term
      Loan Term”
means
      the Closing Date through the close of business on the day immediately preceding
      the fifth anniversary of the Closing Date, subject to acceleration at the option
      of Calliope upon the occurrence of an Event of Default hereunder or other
      termination hereunder.

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    “UCC”
means
      the Uniform Commercial Code as the same may, from time to time be in effect
      in
      the State of New York; provided, that in the event that, by reason of mandatory
      provisions of law, any or all of the attachment, perfection or priority of,
      or
      remedies with respect to, Calliope’s Lien on any Collateral is governed by the
      Uniform Commercial Code as in effect in a jurisdiction other than the State
      of
      New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in
      such other jurisdiction for purposes of the provisions of this Agreement
      relating to such attachment, perfection, priority or remedies and for purposes
      of definitions related to such provisions; provided further, that to the extent
      that UCC is used to define any term herein or in any Ancillary Agreement and
      such term is defined differently in different Articles or Divisions of the
      UCC,
      the definition of such term contained in Article or Division 9 shall
      govern.

     

    “Warrant
      Shares”
has
      the
      meaning given such term in Section 12(a).

     

    “Warrants”
means
      those certain Common Stock Purchase Warrants dated as of the Closing Date made
      by the Parent in favor of Calliope and each other warrant made by the Parent
      in
      favor Calliope, as each of the same may be amended, restated, modified and/or
      supplemented from time to time.

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    Exhibit
      A

     

    Eligible
      Subsidiaries

     

    ProLink
      Solutions, LLC

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

     

    Borrowing
      Base Certificate

     

    As
      of
      __________ __, 200__

    

    
      	
              ACCOUNTS
                RECEIVABLE per __________

              Aging

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              Ineligible
                Accounts:

            	 	 	
               

            	 	 	
               

            	 	 	 	 
	
              Accounts
                over 90 days from Invoice Date

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Credit
                Balances Over 90 days from Invoice Date

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Intercompany
                and Affiliate Accounts

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              25%
                Concentration Cap

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Contra
                Accounts

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Cash
                Sales and COD Accounts

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Non-Eligible
                Foreign Receivables

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Government
                Receivables (without Assignment of Claims)

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Discounts,
                Credits and Allowances

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Cross-age
                (25% Past Due)

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Bill
                and Hold Invoices

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Finance/Service/Late
                Charges

            	 	 	
               

            	 	 	
              0.00

            	 	 	 	 
	
              Other:

            	 	 	
               

            	 	 	
              0.00

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              ELIGIBLE
                ACCOUNTS RECEIVABLE

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              ELIGIBLE
                CREDIT INSURED ACCOUNTS
                RECEIVABLE

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              Accounts
                Receivable Advance Rate

            	 	 	
              90

            	
              %

            	 	
               

            	 	 	 	 
	
               

            	 	 	 	 	 	
               

            	 	 	
                 

            	 
	
              ACCOUNTS
                RECEIVABLE AVAILABILITY

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              ELIGIBLE
                PURCHASE ORDERS

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              Purchase
                Order Advance Rate

            	 	 	
              90

            	
              %

            	 	
               

            	 	 	 	 
	
              Purchase
                Order Cap

            	 	
              $

            	
              1,000,000

            	 	 	
               

            	 	 	 	 
	
              Non
                USXL/VGM Purchase Order Sublimit

            	 	
              $

            	
              200,000

            	 	 	
               

            	 	 	 	 
	
               

            	 	 	 	 	 	
               

            	 	 	
                 

            	 
	
              PURCHASE
                ORDER AVAILABILITY

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              TOTAL
                AVAILABILITY

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              Less
                Reserves

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              NET
                AVAILABILITY

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              REVOLVING
                CREDIT LINE

            	 	 	
               

            	 	
              $

            	
              4,000,000

            	 	 	 	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              NET
                BORROWING AVAILABILITY (Lesser of Line or Net
                Availability)

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              Less:
                Calliope Revolving Loans

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 
	
               

            	 	 	 	 	 	
               

            	 	 	 	 
	
              EXCESS/(DEFICIT)
                AVAILABILITY

            	 	 	
               

            	 	 	
               

            	 	 	
              0.00

            	 

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    The
      undersigned hereby certifies that all of the foregoing information regarding
      the
      Eligible Accounts, Eligible Credit Insured Accounts and Eligible Purchase Orders
      are true and correct on the date hereof and all such Accounts and Purchase
      Orders listed as eligible are eligible within the meaning given such term in
      the
      Security Agreement dated as of August 17, 2007 among ProLink Holdings Corp.,
      the
      other companies named therein and Calliope Capital Corporation.

    

    
      	
              PROLINK
                HOLDINGS CORP., as Company Agent

            
	 
	
              By:

            	 
	 	
              Name:

            
	 	
              Title:

            

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    Exhibit
      C

     

    Compliance
      Certificate

     

    See
      attached.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00140-of-00352.parquet"}]]