Document:

Exhibit
      10.7

    

    Consultancy
      Agreement Between

    

    Torbay
      Holdings, Inc.

    140
      Old
      Country Rd

    Suite
      205

    Mineola

    NY
      11501

    

    And

    

    Scott
      Frickson (Consultant)

    11614
      Dawn St 

    Eagle
      River, AK 99577-7861

    

    For
      services relating to the development of Federal Government Military business:
      -

    

    A
      total
      of 1 million shares, in tranches, to be delivered to consultant upon the basis
      of:

    

    	1.  	
            250,000
              shares for entering into this agreement. 

          

    	 	 

    	2.  	
            250,000
              shares for arranging and orchestrating meetings with target organizations
              within the military wing of Federal Purchasing and/or such organizations
              that might have interest in the same. 

          

    	 	 

    	3.  	
            500,000
              shares for the successful completion of an agreement, or agreements
              relating to item number 2. 

          

    	 	 

    	4.  	
            In
              addition a further 3% of the net value, paid within 7 days of settlement,
              of Federal Government Military agreements entered into and obtained
              under
              this agreement for the duration of this agreement.
              

          

    	 	 

    	5.  	
            The
              duration of this agreement is for a period of 3 years from the effective
              date of this agreement. 

          

    	 	 

    	6.  	
            This
              agreement may be extended upon the consent of both
              parties.

          

    	 	 

    	7.  	
            Other
              agreements seeking to generate business in other branches of the US
              Federal Government may be entered into
              separately.

          

    

    Effective
      Date: September 9, 2006

    

    Signed:

    
      	 	 	 	 
	/s/ Scott
              Frickson	 	 	
            
	
              
Scott
              Frickson.	 	 	
            
	 	 	 	
            

    

    
      	 	 	 	 
	/s/ W.T.
              Large	 	 	
            
	
              
W.
              T. Large
              President
                & CEO Torbay Holdings, Inc.Unassociated Document

    Exhibit
      10.7

    

    CREDIT
      AGREEMENT

    

    THIS
      CREDIT AGREEMENT (this “Agreement”) is entered into as of March 19, 2007, by and
      between Target Logistic Services, Inc., a Delaware corporation (“Borrower”), and
      WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”).

    

    RECITALS

    

    Borrower
      has requested that Bank extend or continue credit to Borrower as described
      below, and Bank has agreed to provide such credit to Borrower on the terms
      and
      conditions contained herein.

    

    NOW,
      THEREFORE, for valuable consideration, the receipt and sufficiency of which
      are
      hereby acknowledged, Bank and Borrower hereby agree as follows:

    

    ARTICLE
      I

    CREDIT
      TERMS

    

    SECTION
      1.1. LINE
      OF
      CREDIT.

    

    (a) Line
      of Credit.
      Subject
      to the terms and conditions of this Agreement, Bank hereby agrees to make
      advances to Borrower from time to time up to and including December 1, 2009,
      not
      to exceed at any time the aggregate principal amount of Twenty Million Dollars
      ($20,000,000.00) (“Line of Credit”), the proceeds of which shall be used to
      assist with working capital, capital expenditures (subject to Section 5.2 below)
      and Permitted Acquisitions (as defined in and subject to Section 5.4 below).
      Borrower’s obligation to repay advances under the Line of Credit shall be
      evidenced by a promissory note dated as of March 19, 2007 (“Line of Credit
      Note”), all terms of which are incorporated herein by this
      reference.

    

    (b) Limitation
      on Borrowings.
      Notwithstanding anything herein to the contrary, if the average daily amount
      outstanding under the Line of Credit (including without limitation any undrawn
      amounts under any outstanding Letters of Credit (defined below)) in any calendar
      month exceeds Five Million Dollars ($5,000,000.00) (“Designated Amount”), then
      outstanding borrowings under the Line of Credit, to a maximum of the principal
      amount set forth in Section 1.1(a) above, shall not at any time thereafter
      exceed a borrowing base (“Borrowing Base”) which is the sum of eighty percent
      (80%) of Borrower’s eligible accounts receivable.

    

    All
      of
      the foregoing shall be determined by Bank upon receipt and review of all
      collateral reports required hereunder and such other documents and collateral
      information as Bank may from time to time require. Borrower acknowledges that
      said borrowing base was established by Bank with the understanding that, among
      other items, the aggregate of all returns, rebates, discounts, credits and
      allowances for the immediately preceding three (3) months at all times shall
      be
      less than five percent (5%) of Borrower’s gross sales for said period. If such
      dilution of Borrower’s accounts for the immediately preceding three (3) months
      at any time exceeds five percent (5%) of Borrower’s gross sales for said period,
      or if there at any time exists any other matters, events, conditions or
      contingencies which Bank reasonably believes may affect payment of any portion
      of Borrower’s accounts, Bank, in its sole discretion, may reduce the foregoing
      advance rate against eligible accounts receivable to a percentage appropriate
      to
      reflect such additional dilution and/or establish additional reserves against
      Borrower’s eligible accounts receivable.

    

    As
      used
      herein, “eligible accounts receivable” shall consist solely of trade accounts
      created in the ordinary course of Borrower’s business, upon which Borrower’s
      right to receive payment is absolute and not contingent upon the fulfillment
      of
      any condition whatsoever, and in which Bank has a perfected security interest
      of
      first priority, and shall not include:

    

    (i)
       any
      account which is more than ninety (90) days past due;

    

    (ii) 
      that
      portion of any account for which there exists any right of setoff, defense
      or
      discount (except regular discounts allowed in the ordinary course of business
      to
      promote prompt payment) or for which any defense or counterclaim has been
      asserted;

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    (iii) 
      any
      account which represents an obligation of any state or municipal government
      or
      of the United States government or any political subdivision thereof (except
      accounts which represent obligations of the United States government and for
      which the assignment provisions of the Federal Assignment of Claims Act, as
      amended or recodified from time to time, have been complied with to Bank’s
      satisfaction);

    

    (iv) any
      account which represents an obligation of an account debtor located in a foreign
      country other than an account debtor located in a Canadian province or
      territory, so long as, in Bank’s determination, such Canadian jurisdiction
      recognizes Bank’s first priority security interest in and right to collect such
      account as a consequence of any security agreements and UCC filings in favor
      of
      Bank; provided,
      that
      outstanding borrowings against accounts from account debtors located in a
      non-Canadian jurisdiction shall not exceed an aggregate of Five Hundred Thousand
      Dollars ($500,000.00) at any time.

    

    (v) 
      any
      account which arises from the sale or lease to or performance of services for,
      or represents an obligation of, an employee, affiliate, partner, member, parent
      or subsidiary of Borrower;

    

    (vi) 
      that
      portion of any account, which represents interim or progress billings or
      retention rights on the part of the account debtor;

    

    (vii) 
      any
      account which represents an obligation of any account debtor when thirty percent
      (30%) or more of Borrower’s accounts from such account debtor are not eligible
      pursuant to (i) above;

    

    (viii) 
      that
      portion of any account from an account debtor which represents the amount by
      which Borrower’s total accounts from said account debtor exceeds twenty-five
      percent (25%) of Borrower’s total accounts;

    

    (ix) 
      any
      account deemed ineligible by Bank when Bank, in its reasonable discretion,
      deems
      the creditworthiness or financial condition of the account debtor, or the
      industry in which the account debtor is engaged, to be
      unsatisfactory.

    

    (c) Cancellation
      and Reinstatement of the Borrowing Base.
      If the
      Borrowing Base has been established in accordance with Section 1.1(b) and
      thereafter the average daily amount outstanding under the Line of Credit
      (including without limitation any undrawn amounts under any outstanding Letters
      of Credit) does not exceed the Designated Amount at a subsequent month-end,
      then
      the Borrowing Base will be cancelled, subject to its reinstatement in accordance
      with Section 1.1(b) if thereafter the average daily amount outstanding under
      the
      Line of Credit (including without limitation any undrawn amounts under any
      outstanding Letters of Credit) for any month subsequently exceeds the Designated
      Amount.

    

    (d) Letter
      of Credit Subfeature.
      As a
      subfeature under the Line of Credit, Bank agrees from time to time during the
      term thereof to issue or cause an affiliate to issue standby letters of credit
      and/or sight commercial letters of credit for the account of Borrower to finance
      general corporate needs (each, a “Letter of Credit” and collectively, “Letters
      of Credit”); provided however, that the aggregate undrawn amount of all
      outstanding Letters of Credit shall not at any time exceed Five Million Dollars
      ($5,000,000.00). The form and substance of each Letter of Credit shall be
      subject to approval by Bank, in its sole discretion. Each standby Letter
      of
      Credit shall be issued for a term not to exceed three hundred sixty-five (365)
      days, as designated by Borrower; provided however, that no standby Letter of
      Credit shall have an expiration date more than one hundred eighty (180) days
      beyond the maturity date of the Line of Credit. Each sight commercial Letter
      of
      Credit shall be issued for a term not to exceed one hundred eighty (180) days,
      as designated by Borrower; provided however, that no sight commercial Letter
      of
      Credit shall have an expiration date more than ninety (90) days beyond the
      maturity date of the Line of Credit. The undrawn amount of all Letters of Credit
      shall be reserved under the Line of Credit and shall not be available for
      borrowings thereunder. Each Letter of Credit shall be subject to the additional
      terms and conditions of the Letter of Credit agreements, applications and any
      related documents required by Bank in connection with the issuance thereof.
      Each
      drawing paid under a Letter of Credit shall be deemed an advance under the
      Line
      of Credit and shall be repaid by Borrower in accordance with the terms and
      conditions of this Agreement applicable to such advances; provided however,
      that
      if advances under the Line of Credit are not available, for any reason, at
      the
      time any drawing is paid, then Borrower shall immediately pay to Bank the full
      amount drawn, together with interest thereon from the date such drawing is
      paid
      to the date such amount is fully repaid by Borrower, at the rate of interest
      applicable to advances under the Line of Credit. In such event Borrower agrees
      that Bank, in its sole discretion, may debit any account maintained by Borrower
      with Bank for the amount of any such drawing.

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    

    (e) Borrowing
      and Repayment.
      Borrower may from time to time during the term of the Line of Credit borrow,
      partially or wholly repay its outstanding borrowings, and reborrow, subject
      to
      all of the limitations, terms and conditions contained herein or in the Line
      of
      Credit Note; provided however, that the total outstanding borrowings under
      the
      Line of Credit shall not at any time exceed the maximum principal amount
      available thereunder, as set forth above. 

    

    SECTION
      1.2. INTEREST/FEES.

    

    (a)
       Interest. The
      outstanding principal balance of each credit subject hereto shall bear interest
      at the rate of interest set forth in each promissory note or other instrument
      or
      document executed in connection therewith.

    

    (b) Computation
      and Payment.
      Interest shall be computed on the basis of a 360-day year, actual days elapsed.
      Interest shall be payable at the times and place set forth in each promissory
      note or other instrument or document required hereby.

    

    (c) Commitment
      Fee.
      Borrower shall pay to Bank a non-refundable commitment fee for the Line of
      Credit equal to $10,000.00, which fee shall be due and payable in full on the
      date Borrower executes this Agreement. Bank hereby acknowledges that such
      commitment fee has been paid in full by Borrower. 

    

    (d) Sight
      commercial Letter of Credit Fees.
      Borrower shall pay to Bank fees upon the issuance of each sight commercial
      Letter of Credit, upon the payment or negotiation of each drawing under any
      sight commercial Letter of Credit and upon the occurrence of any other activity
      with respect to any sight commercial Letter of Credit (including without
      limitation, the transfer, amendment or cancellation of any sight commercial
      Letter of Credit) determined in accordance with Bank’s standard fees and charges
      then in effect for such activity.

    

    (e) Standby
      Letter of Credit Fees.
      Borrower shall pay to Bank (i) fees upon the issuance of each standby
      Letter of Credit equal to the Applicable Percent (as defined below) per annum
      (computed on the basis of a 360-day year, actual days elapsed) of the face
      amount thereof, and (ii) fees upon the payment or negotiation of each
      drawing under any standby Letter of Credit and fees upon the occurrence of
      any
      other activity with respect to any standby Letter of Credit (including without
      limitation, the transfer, amendment or cancellation of any standby Letter of
      Credit) determined in accordance with Bank’s standard fees and charges then in
      effect for such activity. As used herein, “Applicable Percent” shall mean, with
      respect to any standby Letter of Credit, the margin over LIBOR in effect under
      the Line of Credit Note at the time the standby Letter of Credit is issued
      (if
      any standby Letter of Credit is renewed, then a new issuance fee shall be
      payable to Bank for the renewal term, and for the purpose of calculating such
      fee, the Applicable Percent shall mean the margin over LIBOR in effect at the
      time of such renewal). 

     

    SECTION
      1.3. COLLECTION
      OF PAYMENTS. Borrower authorizes Bank to collect all interest and fees due
      under
      each credit subject hereto by charging Borrower’s deposit account number
      4802-636936 with Bank, or any other deposit account maintained by Borrower
      with
      Bank, for the full amount thereof. Should there be insufficient funds in any
      such deposit account to pay all such sums when due, the full amount of such
      deficiency shall be immediately due and payable by Borrower.

    

    SECTION
      1.4. COLLATERAL.

    

    As
      security for all indebtedness and other obligations of Borrower to Bank subject
      hereto, Borrower hereby grants to Bank security interests of first priority
      in
      all Borrower’s accounts receivable and other rights to payment, general
      intangibles and equipment.

    

    All
      of
      the foregoing shall be evidenced by and subject to the terms of such security
      agreements, financing statements, deeds or mortgages, and other documents as
      Bank shall reasonably require, all in form and substance satisfactory to Bank.
      Borrower shall pay to Bank immediately upon demand the full amount of all
      charges, costs and expenses (to include fees paid to third parties and all
      allocated costs of Bank personnel), expended or incurred by Bank in connection
      with any of the foregoing security, including without limitation, filing and
      recording fees and costs of appraisals, audits and title insurance.

     

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    

    SECTION
      1.5. GUARANTIES.
      The payment and performance of all indebtedness and other obligations of
      Borrower to Bank shall be guaranteed by Target Logistics, Inc. (“TLI”) in the
      principal amount of Twenty Million Dollars ($20,000,000.00), as evidenced by
      and
      subject to the terms of a guaranty in form and substance satisfactory to
      Bank.

    

    ARTICLE
      II

    REPRESENTATIONS
      AND WARRANTIES

    

    Borrower
      makes the following representations and warranties to Bank, which
      representations and warranties shall survive the execution of this Agreement
      and
      shall continue in full force and effect until the full and final payment, and
      satisfaction and discharge, of all obligations of Borrower to Bank subject
      to
      this Agreement.

    

    SECTION
      2.1. LEGAL
      STATUS. Borrower is a corporation, duly organized and existing and in good
      standing under the laws of Delaware, and is qualified or licensed to do business
      (and is in good standing as a foreign corporation, if applicable) in all
      jurisdictions in which such qualification or licensing is required or in which
      the failure to so qualify or to be so licensed could have a material adverse
      effect on Borrower.

    

    SECTION
      2.2. AUTHORIZATION
      AND VALIDITY. This Agreement and each promissory note, contract, instrument
      and
      other document required hereby or at any time hereafter delivered to Bank in
      connection herewith (collectively, the “Loan Documents”) have been duly
      authorized, and upon their execution and delivery in accordance with the
      provisions hereof will constitute legal, valid and binding agreements and
      obligations of Borrower or the party which executes the same, enforceable in
      accordance with their respective terms.

    

    SECTION
      2.3. NO
      VIOLATION. The execution, delivery and performance by Borrower of each of the
      Loan Documents do not violate any provision of any law or regulation, or
      contravene any provision of the Articles of Incorporation or By-Laws of
      Borrower, or result in any breach of or default under any contract, obligation,
      indenture or other instrument to which Borrower is a party or by which Borrower
      may be bound.

    

    SECTION
      2.4. LITIGATION.
      There are no pending, or to the best of Borrower’s knowledge threatened,
      actions, claims, investigations, suits or proceedings by or before any
      governmental authority, arbitrator, court or administrative agency which could
      have a material adverse effect on the financial condition or operation of
      Borrower other than those disclosed by Borrower to Bank in writing prior to
      the
      date hereof.

    

    SECTION
      2.5. CORRECTNESS
      OF FINANCIAL STATEMENT. The annual consolidated financial statement of Borrower
      and TLI dated June 30, 2006, and all interim financial statements delivered
      to
      Bank since said date, true copies of which have been delivered by Borrower
      to
      Bank prior to the date hereof, (a) are complete and correct and present fairly
      the financial condition of Borrower and TLI, (b) disclose all liabilities of
      Borrower and TLI that are required to be reflected or reserved against under
      generally accepted accounting principles, whether liquidated or unliquidated,
      fixed or contingent, and (c) have been prepared in accordance with generally
      accepted accounting principles consistently applied. Since the dates of such
      financial statements there has been no material adverse change in the financial
      condition of Borrower or TLI, nor has Borrower or TLI mortgaged, pledged,
      granted a security interest in or otherwise encumbered any of its assets or
      properties except in favor of Bank or as otherwise permitted by Bank in writing.
      

    

    SECTION
      2.6. INCOME
      TAX RETURNS. Borrower has no knowledge of any pending assessments or adjustments
      of its income tax payable with respect to any year.

    

    SECTION
      2.7. NO
      SUBORDINATION. There is no agreement, indenture, contract or instrument to
      which
      Borrower is a party or by which Borrower may be bound that requires the
      subordination in right of payment of any of Borrower’s obligations subject to
      this Agreement to any other obligation of Borrower.

    

    SECTION
      2.8. PERMITS,
      FRANCHISES. Borrower possesses, and will hereafter possess, all permits,
      consents, approvals, franchises and licenses required and rights to all
      trademarks, trade names, patents, and fictitious names, if any, necessary to
      enable it to conduct the business in which it is now engaged in compliance
      with
      applicable law, except where such non-compliance will not have a material
      adverse affect on Borrower.

     

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    SECTION
      2.9. ERISA.
      Borrower is in compliance in all material respects with all applicable
      provisions of the Employee Retirement Income Security Act of 1974, as amended
      or
      recodified from time to time (“ERISA”); Borrower has not violated any provision
      of any defined employee pension benefit plan (as defined in ERISA) maintained
      or
      contributed to by Borrower (each, a “Plan”); no Reportable Event as defined in
      ERISA has occurred and is continuing with respect to any Plan initiated by
      Borrower; Borrower has met its minimum funding requirements under ERISA with
      respect to each Plan; and each Plan will be able to fulfill its benefit
      obligations as they come due in accordance with the Plan documents and under
      generally accepted accounting principles.

    

    SECTION
      2.10. OTHER
      OBLIGATIONS. Borrower is not in default on any obligation for borrowed money,
      any purchase money obligation or any other material lease, commitment, contract,
      instrument or obligation.

    

    SECTION
      2.11. ENVIRONMENTAL
      MATTERS. Except as disclosed by Borrower to Bank in writing prior to the date
      hereof, Borrower is in compliance in all material respects with all applicable
      federal or state environmental, hazardous waste, health and safety statutes,
      and
      any rules or regulations adopted pursuant thereto, which govern or affect any
      of
      Borrower’s operations and/or properties, including without limitation, the
      Comprehensive Environmental Response, Compensation and Liability Act of 1980,
      the Superfund Amendments and Reauthorization Act of 1986, the Federal Resource
      Conservation and Recovery Act of 1976, and the Federal Toxic Substances Control
      Act, as any of the same may be amended, modified or supplemented from time
      to
      time. None of the operations of Borrower is the subject of any federal or state
      investigation evaluating whether any remedial action involving a material
      expenditure is needed to respond to a release of any toxic or hazardous waste
      or
      substance into the environment. Borrower has no material contingent liability
      in
      connection with any release of any toxic or hazardous waste or substance into
      the environment.

    

    ARTICLE
      III

    CONDITIONS

    

    SECTION
      3.1. CONDITIONS
      OF INITIAL EXTENSION OF CREDIT. The obligation of Bank to extend any credit
      contemplated by this Agreement is subject to the fulfillment to Bank’s
      satisfaction of all of the following conditions:

    

    (a) Approval
      of Bank Counsel.
      All
      legal matters incidental to the extension of credit by Bank shall be
      satisfactory to Bank’s counsel.

    

    (b) Documentation.
      Bank
      shall have received, in form and substance satisfactory to Bank, each of the
      following, duly executed:

    

    
      	
            	(i)	
              This
                Agreement and each promissory note or other instrument or document
                required hereby.

            

    

     

    
      	
            	(ii)	
              Certificate
                of Incumbency (2).

            

    

     

    
      	
            	(iii)	
              Corporate
                Resolution: Continuing Guaranty.

            

    

     

    
      	
            	(iv)	
              Corporate
                Resolution: Borrowing.

            

    

     

    
      	
            	(v)	
              Disbursement
                Order.

            

    

     

    
      	
            	(vi)	
              Continuing
                Guaranty.

            

    

     

    
      	
            	(vii)	
              Continuing
                Security Agreement: Rights to
                Payment.

            

    

     

    
      	
            	(viii)	
              Security
                Agreement: Equipment.

            

    

     

    
      	
            	(ix)	
              Such
                other documents as Bank may require under any other Section of this
                Agreement.

            

    

    

    (c) Financial
      Condition.
      There
      shall have been no material adverse change, as determined by Bank, in the
      financial condition or business of Borrower or any guarantor hereunder, nor
      any
      material decline, as determined by Bank, in the market value of any collateral
      required hereunder or a substantial or material portion of the assets of
      Borrower or any such guarantor.

    

    (d) Insurance.
      Borrower shall have delivered to Bank evidence of insurance coverage on all
      Borrower’s property, in form, substance, amounts, covering risks and issued by
      companies satisfactory to Bank, and where required by Bank, with loss payable
      endorsements in favor of Bank.

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    

    SECTION
      3.2. CONDITIONS
      OF EACH EXTENSION OF CREDIT. The obligation of Bank to make each extension
      of
      credit requested by Borrower hereunder shall be subject to the fulfillment
      to
      Bank’s satisfaction of each of the following conditions:

    

    (a) Compliance.
      The
      representations and warranties contained herein and in each of the other Loan
      Documents shall be true on and as of the date of the signing of this Agreement
      and on the date of each extension of credit by Bank pursuant hereto, with the
      same effect as though such representations and warranties had been made on
      and
      as of each such date, and on each such date, no Event of Default as defined
      herein, and no condition, event or act which with the giving of notice or the
      passage of time or both would constitute such an Event of Default, shall have
      occurred and be continuing or shall exist.

    

    (b) Documentation.
      Bank
      shall have received all additional documents which may be required in connection
      with such extension of credit.

    

    ARTICLE
      IV

    AFFIRMATIVE
      COVENANTS

    

    Borrower
      covenants that so long as Bank remains committed to extend credit to Borrower
      pursuant hereto, or any liabilities (whether direct or contingent, liquidated
      or
      unliquidated) of Borrower to Bank under any of the Loan Documents remain
      outstanding, and until payment in full of all obligations of Borrower subject
      hereto, Borrower shall, unless Bank otherwise consents in writing:

    

    SECTION
      4.1. PUNCTUAL
      PAYMENTS. Punctually pay all principal, interest, fees or other liabilities
      due
      under any of the Loan Documents at the times and place and in the manner
      specified therein, and immediately upon demand by Bank, the amount by which
      the
      outstanding principal balance of any credit subject hereto at any time exceeds
      any limitation on borrowings applicable thereto.

    

    SECTION
      4.2. ACCOUNTING
      RECORDS. Maintain adequate books and records in accordance with generally
      accepted accounting principles consistently applied, and permit any
      representative of Bank, at any reasonable time, to inspect, audit and examine
      such books and records, to make copies of the same, and to inspect the
      properties of Borrower.

    

    SECTION
      4.3. FINANCIAL
      STATEMENTS. Provide to Bank all of the following, in form and detail
      satisfactory to Bank:

    

    (a) not
      later
      than 90 days after and as of the end of each fiscal year, a consolidated audited
      financial statement of Borrower and TLI, prepared by a certified public
      accountant acceptable to Bank, to include balance sheet, income statement and
      statement of cash flow;

    

    (b) not
      later
      than each August 31, an annual projection of Borrower’s and TLI’s operations for
      the following fiscal year, prepared by Borrower and TLI, to include balance
      sheet and income statement;

    

    (c) not
      later
      than 30 days after and as of the end of each month during any period of time
      when there is no Borrowing Base, an aged listing of accounts receivable;

    

    (d) not
      later
      than 20 days after and as of the end of each month during any period of time
      when the Borrowing Base is established, a borrowing base certificate and an
      aged
      listing of accounts receivable and accounts payable; 

    

    (e) not
      later
      than 45 days after and as of the end of each fiscal quarter, an unaudited
      consolidated financial statement of Borrower and TLI, prepared by Borrower
      and
      TLI, to include balance sheet, income statement, and statement of cash flow;
      and

    

    (f) from
      time
      to time such other information as Bank may reasonably request.

    

    SECTION
      4.4. COMPLIANCE.
      Preserve and maintain all licenses, permits, governmental approvals, rights,
      privileges and franchises necessary for the conduct of its business; and comply
      with the provisions of all documents pursuant to which Borrower is organized
      and/or which govern Borrower’s continued existence and with the requirements of
      all laws, rules, regulations and orders of any governmental authority applicable
      to Borrower and/or its business, except where such non-compliance will not
      have
      a material adverse affect on Borrower.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    

    SECTION
      4.5. INSURANCE.
      Maintain and keep in force, for each business in which Borrower is engaged,
      insurance of the types and in amounts customarily carried in similar lines
      of
      business, including but not limited to fire, extended coverage, public
      liability, property damage and workers’ compensation, with all such insurance
      carried with companies and in amounts satisfactory to Bank, and deliver to
      Bank
      from time to time at Bank’s request schedules setting forth all insurance then
      in effect. 

    

    SECTION
      4.6. FACILITIES.
      Keep all properties useful or necessary to Borrower’s business in good repair
      and condition, and from time to time make necessary repairs, renewals and
      replacements thereto so that such properties shall be fully and efficiently
      preserved and maintained.

    

    SECTION
      4.7. TAXES
      AND
      OTHER LIABILITIES. Pay and discharge when due any and all indebtedness,
      obligations, assessments and taxes, both real or personal, including without
      limitation federal and state income taxes and state and local property taxes
      and
      assessments, except (a) such as Borrower may in good faith contest or as to
      which a bona fide dispute may arise, and (b) for which Borrower has made
      provision, to Bank’s satisfaction, for eventual payment thereof in the event
      Borrower is obligated to make such payment.

    

    SECTION
      4.8. LITIGATION.
      Promptly give notice in writing to Bank of any litigation pending or threatened
      against Borrower in excess of $250,000.00.

    

    SECTION
      4.9. FINANCIAL
      CONDITION. Maintain Borrower’s financial condition on a consolidated basis with
      TLI as follows using generally accepted accounting principles consistently
      applied and used consistently with prior practices (except to the extent
      modified by the definitions herein):

    

    (a) Total
      Liabilities divided by Tangible Net Worth not greater than 4.0 to 1.0 at each
      fiscal quarter end, with “Total Liabilities” defined as the aggregate of current
      liabilities and non-current liabilities less subordinated debt, and with
“Tangible Net Worth” defined as the aggregate of total stockholders’ equity plus
      subordinated debt less any intangible assets (and any loans, advances and/or
      investments by Borrower and/or TLI to any person or entity as permitted pursuant
      to Section 5.5 below shall be included in the calculation of intangible assets
      herein). 

    

    (b) Quick
      Ratio not less than 1.0 to 1.0 at each Applicable Fiscal Quarter End (defined
      below), with “Quick Ratio” defined as the aggregate of unrestricted cash,
      unrestricted marketable securities and receivables convertible into cash divided
      by the sum of total current liabilities plus the aggregate amount of all
      outstanding borrowings under the Line of Credit (including any undrawn amounts
      under any outstanding Letters of Credit thereunder).

     

    As
      used
      herein, “Applicable Fiscal Quarter End” means any fiscal quarter during which
      time the average daily amount outstanding under the Line of Credit, (including
      any undrawn amounts under any outstanding Letters of Credit) was equal to or
      less than the Designated Amount for a minimum period of one (1)
      month.

    

    (c) Net
      profit after taxes (“NPAT”) not less than $1.00 on a year-to-date basis,
      determined as of each December 31, and June 30. 

    

    SECTION
      4.10. NOTICE
      TO
      BANK. Promptly (but in no event more than five (5) days after the occurrence
      of
      each such event or matter) give written notice to Bank in reasonable detail
      of:
      (a) the occurrence of any Event of Default, or any condition, event or act
      which with the giving of notice or the passage of time or both would constitute
      an Event of Default; (b) any change in the name or the organizational
      structure of Borrower; (c) the occurrence and nature of any Reportable
      Event or Prohibited Transaction, each as defined in ERISA, or any funding
      deficiency with respect to any Plan; or (d) any termination or cancellation
      of any insurance policy which Borrower is required to maintain and is not
      promptly replaced with a substantially similar insurance policy, or any
      uninsured or partially uninsured loss through liability or property damage,
      or
      through fire, theft or any other cause affecting Borrower’s
      property.

     

    
      
        
        

      

      
        -7-

        
          

        

      

      
        
        

      

    

    

    ARTICLE
      V

    NEGATIVE
      COVENANTS

    

    Borrower
      further covenants that so long as Bank remains committed to extend credit to
      Borrower pursuant hereto, or any liabilities (whether direct or contingent,
      liquidated or unliquidated) of Borrower to Bank under any of the Loan Documents
      remain outstanding, and until payment in full of all obligations of Borrower
      subject hereto, without Bank’s prior written consent:

    

    SECTION
      5.1. USE
      OF
      FUNDS. Borrower will not use any of the proceeds of any credit extended
      hereunder except for the purposes stated in Article I hereof.

    

    SECTION
      5.2. CAPITAL
      EXPENDITURES. Borrower will not, and will not permit TLI to, make any additional
      investment in fixed assets in excess of $1,000,000.00 in the aggregate in any
      fiscal year.

    

    SECTION
      5.3. OTHER
      INDEBTEDNESS. Borrower will not, and will not permit TLI to, create, incur,
      assume or permit to exist any indebtedness or liabilities resulting from
      borrowings, loans or advances, whether secured or unsecured, matured or
      unmatured, liquidated or unliquidated, joint or several, except (a) the
      liabilities of Borrower and TLI to Bank, (b) any other liabilities of
      Borrower and TLI existing as of, and disclosed to Bank prior to, the date
      hereof, and (c) purchase money loans, capital leases or any unsecured borrowings
      by Borrower and/or TLI not to exceed One Million Dollars ($1,000,000.00) in
      the
      aggregate at any time.

    

    SECTION
      5.4. MERGER,
      CONSOLIDATION, TRANSFER OF ASSETS. Borrower will not, and will not permit TLI
      to, merge into or consolidate with any other entity; make any substantial change
      in the nature of their businesses as conducted as of the date hereof; sell,
      lease, transfer or otherwise dispose of all or a substantial or material portion
      of their assets except in the ordinary course of its business; nor acquire
      all
      or substantially all of the assets of another entity, except “Permitted
      Acquisitions,” with “Permitted Acquisitions” defined as a “non-hostile”
acquisition by Borrower and/or TLI of all or a portion of (i) the ownership
      interest(s), or (ii) the assets of another entity engaged in the business of
      domestic and international freight forwarding, provided,
      however,
      that
      (a) at the closing of, and as a result of such acquisition, no default in the
      payment or performance of any obligation, nor any defined event of default,
      shall exist under the terms of the Loan Documents including, without limitation,
      any violation of the financial covenants set forth in Section 4.9 hereof; and
      (b) the total consideration (including cash, notes and/or stock) paid by
      Borrower and/or TLI for any such acquisitions in the aggregate does not exceed
      Five Million Dollars ($5,000,000.00) in any fiscal year. In connection with
      determining the total consideration of any such acquisition, amounts to be
      paid
      by Borrower and/or TLI after the closing of any such acquisition that are
      dependant on pre-determined profit and/or sales performance levels of the
      acquired entity shall not be included as part of the total consideration for
      the
      purpose hereof.

    

    SECTION
      5.5. LOANS,
      ADVANCES, INVESTMENTS. Borrower will not, and will not permit TLI to, make
      any
      loans or advances to or investments in any person or entity, except (a) any
      of
      the foregoing existing as of, and disclosed to Bank prior to, the date hereof,
      (b) loans made hereafter by Borrower and/or TLI in the ordinary course of their
      business, so long as any such outstanding loans do not exceed One Million
      Dollars ($1,000,000.00) in the aggregate at any time, and (c) any of the
      foregoing in connection with Permitted Acquisitions. 

    

    SECTION
      5.6. DIVIDENDS,
      DISTRIBUTIONS. Borrower will not declare or pay any dividend or distribution
      either in cash, stock or any other property on Borrower’s stock now or hereafter
      outstanding, nor redeem, retire, repurchase or otherwise acquire any shares
      of
      any class of Borrower’s stock now or hereafter outstanding, except Permitted
      Distributions (defined below), provided
      that (a)
      there exists no Event of Default, nor any condition, act or event which with
      the
      giving of notice or the passage of time or both would constitute any such Event
      of Default and no such Event of Default will result after giving effect to
      such
      Permitted Distributions, and (b) the Permitted Distributions shall be limited
      as
      set forth in the following table, and for the purposes of calculating the amount
      of Permitted Distributions that may be permitted hereunder, Borrower must meet
      the applicable NPAT threshold after taking into account the amount of the
      proposed Permitted Distribution. Borrower shall provide to Bank, upon request,
      any documentation required by Bank to substantiate the appropriateness of the
      amounts paid or to be paid. As used herein, “Permitted Distributions” shall be
      limited as follows:

    

    
      	
              NPAT
                Threshold

            	 	
              Permitted
                Distributions

            
	
              -less
                than $167,000.00

            	 	
              -up
                to $125,000.00 in the aggregate in any fiscal year

            
	
              -equal
                to or greater than $167,000.00

            	 	
              -the
                lesser of $1,000,000.00 or 75% of NPAT in the aggregate in any fiscal
                year

            

    

     

    
      
        
        

      

      
        -8-

        
          

        

      

      
        
        

      

       

    

    SECTION
      5.7. PLEDGE
      OF
      ASSETS. Borrower will not, and will not permit TLI to, mortgage, pledge, grant
      or permit to exist a security interest in, or lien upon, all or any portion
      of
      Borrower’s assets now owned or hereafter acquired, except (a) any of the
      foregoing in favor of Bank or which is existing as of, and disclosed to Bank
      in
      writing prior to, the date hereof, and (b) liens securing purchase money loans
      or capital leases permitted under Section 5.3 above. 

    

    ARTICLE
      VI

    EVENTS
      OF DEFAULT

    

    SECTION
      6.1. The
      occurrence of any of the following shall constitute an “Event of Default” under
      this Agreement:

    

    (a) Borrower
      shall fail to pay when due any principal, interest, fees or other amounts
      payable under any of the Loan Documents.

    

    (b) Any
      financial statement or certificate furnished to Bank in connection with, or
      any
      representation or warranty made by Borrower or any other party under this
      Agreement or any other Loan Document shall prove to be incorrect, false or
      misleading in any material respect when furnished or made.

    

    (c) Any
      default in the performance of or compliance with any obligation, agreement
      or
      other provision contained herein or in any other Loan Document (other than
      those
      referred to in subsections (a) and (b) above), and with respect to any such
      default which by its nature can be cured, such default shall continue for a
      period of twenty (20) days from its occurrence.

    

    (d) Any
      default in the payment or performance of any obligation, or any defined event
      of
      default, under the terms of any contract or instrument (other than any of the
      Loan Documents) pursuant to which Borrower, any guarantor hereunder or any
      general partner or joint venturer in Borrower if a partnership or joint venture
      (with each such guarantor, general partner and/or joint venturer referred to
      herein as a “Third Party Obligor”) has incurred any debt or other liability to
      any person or entity, including Bank.

    

    (e) The
      filing of a notice of judgment lien against Borrower or any Third Party Obligor;
      or the recording of any abstract of judgment against Borrower or any Third
      Party
      Obligor in any county in which Borrower or such Third Party Obligor has an
      interest in real property; or the service of a notice of levy and/or of a writ
      of attachment or execution, or other like process, against the assets of
      Borrower or any Third Party Obligor; or the entry of a judgment against Borrower
      or any Third Party Obligor.

    

    (f) Borrower
      or any Third Party Obligor shall become insolvent, or shall suffer or consent
      to
      or apply for the appointment of a receiver, trustee, custodian or liquidator
      of
      itself or any of its property, or shall generally fail to pay its debts as
      they
      become due, or shall make a general assignment for the benefit of creditors;
      Borrower or any Third Party Obligor shall file a voluntary petition in
      bankruptcy, or seeking reorganization, in order to effect a plan or other
      arrangement with creditors or any other relief under the Bankruptcy Reform
      Act,
      Title 11 of the United States Code, as amended or recodified from time to time
      (“Bankruptcy Code”), or under any state or federal law granting relief to
      debtors, whether now or hereafter in effect; or any involuntary petition or
      proceeding pursuant to the Bankruptcy Code or any other applicable state or
      federal law relating to bankruptcy, reorganization or other relief for debtors
      is filed or commenced against Borrower or any Third Party Obligor, or Borrower
      or any Third Party Obligor shall file an answer admitting the jurisdiction
      of
      the court and the material allegations of any involuntary petition; or Borrower
      or any Third Party Obligor shall be adjudicated a bankrupt, or an order for
      relief shall be entered against Borrower or any Third Party Obligor by any
      court
      of competent jurisdiction under the Bankruptcy Code or any other applicable
      state or federal law relating to bankruptcy, reorganization or other relief
      for
      debtors.

    

    (g) There
      shall exist or occur any event or condition which Bank in good faith believes
      impairs, or is substantially likely to impair, the prospect of payment or
      performance by Borrower of its obligations under any of the Loan
      Documents.

     

    
      
        
        

      

      
        -9-

        
          

        

      

      
        
        

      

    

    

    (h) The
      death
      or incapacity of Borrower or any Third Party Obligor if an individual. The
      dissolution or liquidation of Borrower or any Third Party Obligor if a
      corporation, partnership, joint venture or other type of entity; or Borrower
      or
      any such Third Party Obligor, or any of its directors, stockholders or members,
      shall take action seeking to effect the dissolution or liquidation of Borrower
      or such Third Party Obligor.

    

    (i) Any
      change in control in which one or more persons or entities (other than Phil
      Dubato or Stuart Hettleman) acquires ownership, directly or indirectly, of
      securities of Borrower representing 50% or more of the voting securities
      entitled to vote in the election of the Board of Directors of Borrower and/or
      TLI. 

    

    SECTION
      6.2. REMEDIES.
      Upon the occurrence of any Event of Default: (a) all indebtedness of
      Borrower under each of the Loan Documents, any term thereof to the contrary
      notwithstanding, shall at Bank’s option and without notice become immediately
      due and payable without presentment, demand, protest or notice of dishonor,
      all
      of which are hereby expressly waived by Borrower; (b) the obligation, if
      any, of Bank to extend any further credit under any of the Loan Documents shall
      immediately cease and terminate; and (c) Bank shall have all rights, powers
      and remedies available under each of the Loan Documents, or accorded by law,
      including without limitation the right to resort to any or all security for
      any
      credit subject hereto and to exercise any or all of the rights of a beneficiary
      or secured party pursuant to applicable law. All rights, powers and remedies
      of
      Bank may be exercised at any time by Bank and from time to time after the
      occurrence of an Event of Default, are cumulative and not exclusive, and shall
      be in addition to any other rights, powers or remedies provided by law or
      equity.

    

    ARTICLE
      VII

    MISCELLANEOUS

    

    SECTION
      7.1.  NO
      WAIVER. No delay, failure or discontinuance of Bank in exercising any right,
      power or remedy under any of the Loan Documents shall affect or operate as
      a
      waiver of such right, power or remedy; nor shall any single or partial exercise
      of any such right, power or remedy preclude, waive or otherwise affect any
      other
      or further exercise thereof or the exercise of any other right, power or remedy.
      Any waiver, permit, consent or approval of any kind by Bank of any breach of
      or
      default under any of the Loan Documents must be in writing and shall be
      effective only to the extent set forth in such writing.

    

    SECTION
      7.2. NOTICES.
      All notices, requests and demands which any party is required or may desire
      to
      give to any other party under any provision of this Agreement must be in writing
      delivered to each party at the following address:

    

    
      	BORROWER:	
              Target
                Logistic Services, Inc.

              
                1400
                  Glenn Curtiss Street

                Carson,
                  CA 90746

                 

                Target
                  Logistics, Inc.

                2160
                  Bill Murdock Road

                Marietta,
                  GA 30062

                Attn:
                  Phil Dubato, CFO 

                

                Target
                  Logistics, Inc.

                500
                  Harborview Drive - 3rd Floor

                Baltimore,
                  MD 21230

                Attn:
                  Stuart Hettleman, CEO

                

                Neuberger,
                  Quinn, Gielen, Rubin & Gibber, P.A.

                One
                  South Street - 27th Floor

                Baltimore,
                  MD 21202-3282

                Attn:
                  Hillel Tendler

              

            

    

     

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

     

    
      	
              BANK:

            	
              WELLS
                FARGO BANK, NATIONAL ASSOCIATION

              
                South
                  Bay RCBO

                111
                  West Ocean Blvd., Suite #530

                Long
                  Beach, CA 90802

              

            

    

     

    or
      to
      such other address as any party may designate by written notice to all other
      parties. Each such notice, request and demand shall be deemed given or made
      as
      follows: (a) if sent by hand delivery, upon delivery; (b) if sent by
      mail, upon the earlier of the date of receipt or three (3) days after deposit
      in
      the U.S. mail, first class and postage prepaid; and (c) if sent by
      telecopy, upon receipt.

    

    SECTION
      7.3. COSTS,
      EXPENSES AND ATTORNEYS’ FEES. Borrower shall pay to Bank immediately upon demand
      the full amount of all payments, advances, charges, costs and expenses,
      including reasonable attorneys’ fees (to include outside counsel fees and all
      allocated costs of Bank’s in-house counsel), expended or incurred by Bank in
      connection with (a) the negotiation and preparation of this Agreement and
      the other Loan Documents, Bank’s continued administration hereof and thereof,
      and the preparation of any amendments and waivers hereto and thereto;
provided,
      however,
      that
      the total amount of costs, expenses and attorneys’ fees to be paid by Borrower
      in connection with the negotiation and preparation of this Agreement and the
      other Loan Documents shall not exceed $10,000.00, (b) the enforcement of
      Bank’s rights and/or the collection of any amounts which become due to Bank
      under any of the Loan Documents, and (c) the prosecution or defense of any
      action in any way related to any of the Loan Documents, including without
      limitation, any action for declaratory relief, whether incurred at the trial
      or
      appellate level, in an arbitration proceeding or otherwise, and including any
      of
      the foregoing incurred in connection with any bankruptcy proceeding (including
      without limitation, any adversary proceeding, contested matter or motion brought
      by Bank or any other person) relating to Borrower or any other person or entity.
      

    

    SECTION
      7.4. SUCCESSORS,
      ASSIGNMENT. This Agreement shall be binding upon and inure to the benefit of
      the
      heirs, executors, administrators, legal representatives, successors and assigns
      of the parties; provided however, that Borrower may not assign or transfer
      its
      interests or rights hereunder without Bank’s prior written consent. Bank
      reserves the right to sell, assign, transfer, negotiate or grant participations
      in all or any part of, or any interest in, Bank’s rights and benefits under each
      of the Loan Documents. In connection therewith, Bank may disclose all documents
      and information which Bank now has or may hereafter acquire relating to any
      credit subject hereto, Borrower or its business, any guarantor hereunder or
      the
      business of such guarantor, or any collateral required hereunder.

    

    SECTION
      7.5. ENTIRE
      AGREEMENT; AMENDMENT. This Agreement and the other Loan Documents constitute
      the
      entire agreement between Borrower and Bank with respect to each credit subject
      hereto and supersede all prior negotiations, communications, discussions and
      correspondence concerning the subject matter hereof. This Agreement may be
      amended or modified only in writing signed by each party hereto.

    

    SECTION
      7.6. NO
      THIRD
      PARTY BENEFICIARIES. This Agreement is made and entered into for the sole
      protection and benefit of the parties hereto and their respective permitted
      successors and assigns, and no other person or entity shall be a third party
      beneficiary of, or have any direct or indirect cause of action- or claim in
      connection with, this Agreement or any other of the Loan Documents to which
      it
      is not a party.

    

    SECTION
      7.7. TIME.
      Time is of the essence of each and every provision of this Agreement and each
      other of the Loan Documents.

    

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

    

    SECTION
      7.9. COUNTERPARTS.
      This Agreement may be executed in any number of counterparts, each of which
      when
      executed and delivered shall be deemed to be an original, and all of which
      when
      taken together shall constitute one and the same Agreement.

    

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

     

    
      
        
        

      

      
        -11-

        
          

        

      

      
        
        

      

    

    

    SECTION
      7.11. ARBITRATION.

    

    (a) Arbitration.
      The
      parties hereto agree, upon demand by any party, to submit to binding arbitration
      all claims, disputes and controversies between or among them (and their
      respective employees, officers, directors, attorneys, and other agents), whether
      in tort, contract or otherwise in any way arising out of or relating to (i)
      any
      credit subject hereto, or any of the Loan Documents, and their negotiation,
      execution, collateralization, administration, repayment, modification,
      extension, substitution, formation, inducement, enforcement, default or
      termination; or (ii) requests for additional credit.

    

    (b) Governing
      Rules.
      Any
      arbitration proceeding will (i) proceed in a location in California selected
      by
      the American Arbitration Association (“AAA”); (ii) be governed by the Federal
      Arbitration Act (Title 9 of the United States Code), notwithstanding any
      conflicting choice of law provision in any of the documents between the parties;
      and (iii) be conducted by the AAA, or such other administrator as the parties
      shall mutually agree upon, in accordance with the AAA’s commercial dispute
      resolution procedures, unless the claim or counterclaim is at least
      $1,000,000.00 exclusive of claimed interest, arbitration fees and costs in
      which
      case the arbitration shall be conducted in accordance with the AAA’s optional
      procedures for large, complex commercial disputes (the commercial dispute
      resolution procedures or the optional procedures for large, complex commercial
      disputes to be referred to herein, as applicable, as the “Rules”). If there is
      any inconsistency between the terms hereof and the Rules, the terms and
      procedures set forth herein shall control. Any party who fails or refuses to
      submit to arbitration following a demand by any other party shall bear all
      costs
      and expenses incurred by such other party in compelling arbitration of any
      dispute. Nothing contained herein shall be deemed to be a waiver by any party
      that is a bank of the protections afforded to it under 12 U.S.C. §91 or any
      similar applicable state law.

    

    (c)
      No
      Waiver of Provisional Remedies, Self-Help and Foreclosure.
      The
      arbitration requirement does not limit the right of any party to (i) foreclose
      against real or personal property collateral; (ii) exercise self-help remedies
      relating to collateral or proceeds of collateral such as setoff or repossession;
      or (iii) obtain provisional or ancillary remedies such as replevin, injunctive
      relief, attachment or the appointment of a receiver, before during or after
      the
      pendency of any arbitration proceeding. This exclusion does not constitute
      a
      waiver of the right or obligation of any party to submit any dispute to
      arbitration or reference hereunder, including those arising from the exercise
      of
      the actions detailed in sections (i), (ii) and (iii) of this
      paragraph.

    

    (d) Arbitrator
      Qualifications and Powers.
      Any
      arbitration proceeding in which the amount in controversy is $5,000,000.00
      or
      less will be decided by a single arbitrator selected according to the Rules,
      and
      who shall not render an award of greater than $5,000,000.00. Any dispute in
      which the amount in controversy exceeds $5,000,000.00 shall be decided by
      majority vote of a panel of three arbitrators; provided however, that all three
      arbitrators must actively participate in all hearings and deliberations. The
      arbitrator will be a neutral attorney licensed in the State of California or
      a
      neutral retired judge of the state or federal judiciary of California, in either
      case with a minimum of ten years experience in the substantive law applicable
      to
      the subject matter of the dispute to be arbitrated. The arbitrator will
      determine whether or not an issue is arbitratable and will give effect to the
      statutes of limitation in determining any claim. In any arbitration proceeding
      the arbitrator will decide (by documents only or with a hearing at the
      arbitrator’s discretion) any pre-hearing motions which are similar to motions to
      dismiss for failure to state a claim or motions for summary adjudication. The
      arbitrator shall resolve all disputes in accordance with the substantive law
      of
      California and may grant any remedy or relief that a court of such state could
      order or grant within the scope hereof and such ancillary relief as is necessary
      to make effective any award. The arbitrator shall also have the power to award
      recovery of all costs and fees, to impose sanctions and to take such other
      action as the arbitrator deems necessary to the same extent a judge could
      pursuant to the Federal Rules of Civil Procedure, the California Rules of Civil
      Procedure or other applicable law. Judgment upon the award rendered by the
      arbitrator may be entered in any court having jurisdiction. The institution
      and
      maintenance of an action for judicial relief or pursuit of a provisional or
      ancillary remedy shall not constitute a waiver of the right of any party,
      including the plaintiff, to submit the controversy or claim to arbitration
      if
      any other party contests such action for judicial relief.

    

    (e) Discovery.
      In any
      arbitration proceeding, discovery will be permitted in accordance with the
      Rules. All discovery shall be expressly limited to matters directly relevant
      to
      the dispute being arbitrated and must be completed no later than 20 days before
      the hearing date. Any requests for an extension of the discovery periods, or
      any
      discovery disputes, will be subject to final determination by the arbitrator
      upon a showing that the request for discovery is essential for the party’s
      presentation and that no alternative means for obtaining information is
      available.

     

    
      
        
        

      

      
        -12-

        
          

        

      

      
        
        

      

    

    

    (f) Class
      Proceedings and Consolidations.
      No
      party hereto shall be entitled to join or consolidate disputes by or against
      others in any arbitration, except parties who have executed any Loan Document,
      or to include in any arbitration any dispute as a representative or member
      of a
      class, or to act in any arbitration in the interest of the general public or
      in
      a private attorney general capacity. 

    

    (g) Payment
      Of Arbitration Costs And Fees.
      The
      arbitrator shall award all costs and expenses of the arbitration
      proceeding.

    

    (h) Real
      Property Collateral; Judicial Reference.
      Notwithstanding anything herein to the contrary, no dispute shall be submitted
      to arbitration if the dispute concerns indebtedness secured directly or
      indirectly, in whole or in part, by any real property unless (i) the holder
      of
      the mortgage, lien or security interest specifically elects in writing to
      proceed with the arbitration, or (ii) all parties to the arbitration waive
      any
      rights or benefits that might accrue to them by virtue of the single action
      rule
      statute of California, thereby agreeing that all indebtedness and obligations
      of
      the parties, and all mortgages, liens and security interests securing such
      indebtedness and obligations, shall remain fully valid and enforceable. If
      any
      such dispute is not submitted to arbitration, the dispute shall be referred
      to a
      referee in accordance with California Code of Civil Procedure Section 638 et
      seq., and this general reference agreement is intended to be specifically
      enforceable in accordance with said Section 638. A referee with the
      qualifications required herein for arbitrators shall be selected pursuant to
      the
      AAA’s selection procedures. Judgment upon the decision rendered by a referee
      shall be entered in the court in which such proceeding was commenced in
      accordance with California Code of Civil Procedure Sections 644 and
      645.

    

    (i) Miscellaneous.
      To the
      maximum extent practicable, the AAA, the arbitrators and the parties shall
      take
      all action required to conclude any arbitration proceeding within 180 days
      of
      the filing of the dispute with the AAA. No arbitrator or other party to an
      arbitration proceeding may disclose the existence, content or results thereof,
      except for disclosures of information by a party required in the ordinary course
      of its business or by applicable law or regulation. If more than one agreement
      for arbitration by or between the parties potentially applies to a dispute,
      the
      arbitration provision most directly related to the Loan Documents or the subject
      matter of the dispute shall control. This arbitration provision shall survive
      termination, amendment or expiration of any of the Loan Documents or any
      relationship between the parties.

    

    (j) Small
      Claims Court.
      Notwithstanding anything herein to the contrary, each party retains the right
      to
      pursue in Small Claims Court any dispute within that court’s jurisdiction.
      Further, this arbitration provision shall apply only to disputes in which either
      party seeks to recover an amount of money (excluding attorneys’ fees and costs)
      that exceeds the jurisdictional limit of the Small Claims Court.

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      as
      of the day and year first written above.

     

    
      	Target
              Logistic
              Services, Inc.	 	 	
              WELLS
                FARGO BANK,

              NATIONAL
                ASSOCIATION

               

            
	By:
              /s/ Philip J. Dubato	 	 	By:
/s/
	
              
                

              

              Title:
                Vice President 

            	 	 	
              
                

              

              Martin
                Roblee

              Vice
                President

            

    

     

    
      
        
        

      

      
        -13-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00122-of-00352.parquet"}]]