Document:

exv10w1

 

Exhibit 10.1

	 	 	 
	

	 	LOAN AND SECURITY AGREEMENT

THIS AGREEMENT is entered into on October 23, 2006, between Comerica Bank (“Bank”) as secured
party, whose office is One North Central, Suite 1000, 10th Floor, Phoenix, Arizona, 85004 and the
undersigned (individually and/or collectively as the context requires, “Borrower”), whose chief
executive office is located at 410 S. Benson Lane, Chandler, Arizona 85224. The parties agree as
follows:

1. DEFINITIONS.

     1.1 “Accounts” shall mean and includes all presently existing and hereafter arising accounts,
including without limitation all accounts receivable, contract rights and other forms of right to
payment for monetary obligations or receivables for property sold or to be sold, leased, licensed,
assigned or otherwise disposed of, or for services rendered or to be rendered (including without
limitation all health-care-insurance receivables) owing to Borrower, including, but not limited to,
the lease residuals more particularly referenced on Exhibit A attached hereto, and any
supporting obligations, credit insurance, guaranties or security therefor, irrespective of whether
earned by performance.

     1.2 “Agreement” shall mean and includes this Loan and Security Agreement, any concurrent or
subsequent rider to this Loan and Security Agreement and any extensions, supplements, amendments or
modifications to this Loan and Security Agreement and/or to any such rider.

     1.3 “Bank Expenses” shall mean and includes: all costs or expenses required to be paid by
Borrower under this Agreement which are paid or advanced by Bank; taxes and insurance premiums of
every nature and kind of Borrower paid by Bank; filing, recording, publication and search fees,
appraiser fees, auditor fees and costs paid or incurred by Bank in connection with Bank’s
transactions with Borrower; costs and expenses incurred by Bank in collecting the Accounts (with or
without suit) to correct any default or enforce any provision of this Agreement, or in gaining
possession of, maintaining, handling, preserving, storing, shipping, selling, disposing of,
preparing for sale and/or advertising to sell the Collateral, whether or not a sale is consummated;
costs and expenses of suit incurred by Bank in enforcing or defending this Agreement or any portion
hereof, including, but not limited to, expenses incurred by Bank in attempting to obtain relief
from any stay, restraining order, injunction or similar process which prohibits Bank from
exercising any of its rights or remedies; and reasonable attorneys’ fees and expenses incurred by
Bank in advising, structuring, drafting, reviewing, amending, terminating, enforcing, defending or
concerning this Agreement, or any portion hereof or any agreement related hereto, whether or not
suit is brought. Bank Expenses shall include Bank’s in-house legal charges at reasonable rates.

     1.4 “Base Rate” shall have the same meaning as set forth in the Note.

     1.5 “Borrower’s Books” shall mean and includes all of Borrower’s books and records including
but not limited to minute books; ledgers; records indicating, summarizing or evidencing Borrower’s
assets (including, without limitation, the Accounts), liabilities, business operations or financial
condition, and all information relating thereto, computer programs; computer disk or tape files;
computer printouts; computer runs; and other computer prepared information and equipment of any
kind.

     1.6 “Borrowing Base” shall mean the sum of (a) the lesser of (i) seventy percent (70%) of the
net amount of Eligible Accounts after deducting therefrom all payments, adjustments and credits
applicable thereto or (ii) One Million and No/100 Dollars ($1,000,000.00) and (b) ninety percent
(90%) of the net amount of Eligible Foreign Accounts after deducting therefrom all payments,
adjustments and credits applicable thereto.

     1.7 “Borrowing Base Certificate” shall mean a Borrowing Base Certificate substantially in the
form of Exhibit C attached hereto, executed by Borrower which reflects the status of
Eligible Accounts and Eligible Foreign Accounts as of 5:00 P.M. on the last Business Day of the
period described therein.

     1.8 “Cash Flow Coverage Ratio” shall mean, unless otherwise provided herein, the ratio
calculated by dividing the difference of EBITDA, less unfinanced asset purchases, cash taxes and
capital expenditures (both for the most recent four (4) fiscal quarters) by the sum of interest
expense and the current portion of long term debt (excluding principal payment on the Revolving
Loan) less payments due under Junior Debt, interest paid in common stock and non-cash warrant and
option expenses all for the upcoming four (4) fiscal quarters.

     1.9 “Closing Date” shall with respect to each Loan, the date upon which funds are initially
advanced.

     1.10 “Collateral” shall mean and includes all personal property of Borrower, including without
limitation each and all of the following: the Accounts; the Inventory; the General Intangibles; the
Negotiable Collateral; Borrower’s Books; all Borrower’s investment property (including without
limitation securities and securities entitlements); all goods, instruments, documents, policies and
certificates of insurance, deposits, money or other personal property of Borrower in which Bank
receives a security interest and which now or later come into the possession, custody or control of
Bank; all Borrower’s

 

 

LOAN & SECURITY AGREEMENT

equipment and fixtures; all additions, accessions, attachments, parts, replacements,
substitutions, renewals, interest, dividends, distributions or rights of any kind for or with
respect to any of the foregoing (including without limitation any stock splits, stock rights,
voting rights and preferential rights); any supporting obligations for any of the foregoing; and
the products and proceeds of any of the foregoing, including, but not limited to, proceeds of
insurance covering the Collateral, and any and all Accounts, General Intangibles, Negotiable
Collateral, Inventory, equipment, money, investment property, equipment, fixtures or other tangible
and intangible property of Borrower resulting from the sale or other disposition of the Collateral
and the proceeds thereof and any supporting obligations or security therefor and any right to
payment thereunder, and including, without limitation, cash or other property which were proceeds
and are recovered by a bankruptcy trustee or otherwise as a preferential transfer by Borrower.
Notwithstanding anything to the contrary contained herein, Collateral shall not include any waste
or other materials which have been or may be designated as toxic or hazardous by Bank.

     1.11 “Compliance Certification” shall mean a certificate, in form and substance satisfactory
to Bank, signed by an authorized officer of Borrower to the effect that, to the best of Borrower’s
knowledge, all reports, statements, computer disk or tape files, computer printouts, computer runs,
or other computer prepared information of any kind or nature relating to the financial statements
delivered or caused to be delivered to Bank under this Agreement are complete, correct in all
material respects and thoroughly present the financial condition of Borrower and that there exists
on the date of delivery to Bank no condition or event which constitutes a material breach or Event
of Default under this Agreement and providing Borrower’s calculation of the required financial
covenant tests in Section 6.15 of this Agreement.

     1.12 “Credit” shall mean all Indebtedness, except that Indebtedness arising pursuant to any
other separate contract, instrument, note, or other separate agreement which, by its terms,
provides for a specified interest rate and term.

     1.13 “Daily Balance” shall mean the amount determined by taking the amount of the Credit owed
at the beginning of a given day, adding any new Credit advanced or incurred on such date, and
subtracting any payments or collections which are deemed to be paid and are applied by Bank in
reduction of the Credit on that date under the provisions of this Agreement.

     1.14 “Debt” shall mean, as of any applicable date of determination, all items of indebtedness,
obligation or liability of a Person, whether matured or unmatured, liquidated or unliquidated,
direct or indirect, absolute or contingent, joint or several, that should be classified as
liabilities in accordance with GAAP. In the case of Borrower, the term “Debt” shall include,
without limitation, the Indebtedness.

     1.15 “EBITDA” shall mean for any period net profit before taxes, interest expense (net of
capitalized interest expense), depreciation expense and amortization expense, all in accordance
with GAAP, excluding non-cash effects of warrant/equity expenses and gain on extinguishment of
debt).

     1.16 “Eligible Accounts” shall mean and includes those Accounts of Borrower which are due and
payable within sixty (60) days, or less, from the date of invoice, have been validly assigned to
Bank and strictly comply with all of Borrower’s warranties and representations to Bank; but
Eligible Accounts shall not include the following: (a) Accounts with respect to which the account
debtor is an officer, employee, partner, joint venturer or agent of Borrower; (b) Accounts with
respect to which goods are placed on consignment, guaranteed sale or other terms by reason of which
the payment by the account debtor may be conditional; (c) Accounts with respect to which the
account debtor is not a resident of the United States; (d) Accounts with respect to which the
account debtor is the United States or any department, agency or instrumentality of the United
States; (e) Accounts with respect to which the account debtor is a subsidiary of, related to,
affiliated or has common members or officers with Borrower; (f) Accounts with respect to which
Borrower is or may become liable to the account debtor for goods sold or services rendered by the
account debtor to Borrower; (g) Accounts not paid by an account debtor within sixty (60) days from
the date of the invoice; (h) Accounts with respect to which account debtors dispute liability or
make any claim, or have any asserted defense, crossclaim, counterclaim, or offset; (i) Accounts
with respect to which any Insolvency Proceeding is filed by or against the account debtor, or if an
account debtor becomes insolvent, fails or goes out of business, in each case from and after the
date of this Agreement; (j) Accounts with a particular account debtor on which over twenty-five
percent (25%) of the aggregate amount owing is greater than sixty (60) days from the date of the
invoice and (k) Accounts which result from maintenance, services or anything other than the sale of
Inventory.

     1.17 “Eligible Foreign Accounts” shall mean Elumina, F.A., accounts and other accounts from
account debtors not located in the domestic United States but which otherwise meet the criteria for
being an Eligible Account and are insured a minimum of 95% by an Ex-Im Bank Multi-Buyer Export
Credit Insurance Policy issued by the Export-Import Bank of the United States (or issued by such
other insurer acceptable to the Bank in its sole and absolute discretion) with such coverages,
terms and amounts acceptable to Bank in its sole and absolute discretion).

     1.18 “Event of Default” shall mean one or more of those events described in Section 7
contained herein below.

     1.19 “Excess Cash Flow” shall mean as of any date of determination, EBITDA, minus cash
taxes paid, minus cash principal paid, minus cash interest paid, minus
unfinanced capital expenditures.

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 LOAN & SECURITY AGREEMENT

     1.20 “Financial Covenant Compliance Certificate” shall mean a certificate in the form attached
hereto as Exhibit D.

     1.21 “GAAP” shall mean, as of any applicable period, generally accepted accounting principles
in effect in the United States during such period.

     1.22 “General Intangibles” shall mean and includes all of Borrower’s present and future
general intangibles and other personal property (including without limitation all payment
intangibles, electronic chattel paper, contract rights, rights arising under common law, statutes,
or regulations, choses or things in action, goodwill, patents, trade names, trademarks,
servicemarks, copyrights, blueprints, drawings, plans, diagrams, schematics, purchase orders,
customer lists, monies due or recoverable from pension funds, route lists, rights to payment
(including without limitation, rights to payment evidenced by chattel paper, documents or
instruments) and other rights under any royalty or licensing agreements, infringement claims,
software (including without limitation any computer program that is embedded in goods that consist
solely of the medium in which the program is embedded), information contained on computer disks or
tapes, literature, reports, catalogs, insurance premium rebates, tax refunds, and tax refund
claims), other than goods, Accounts, Inventory, Negotiable Collateral, and Borrowers Books.

     1.23 “Indebtedness” shall mean and includes any and all loans, advances, Letter of Credit
Obligations, overdrafts, debts, liabilities (including, without limitation, any and all amounts
charged to Borrower’s loan account pursuant to any agreement authorizing Bank to charge Borrower’s
loan account), obligations, lease payments, guaranties, covenants and duties owing by Borrower to
Bank of any kind and description whether advanced pursuant to or evidenced by this Agreement; by
any note or other Instrument; or by any other agreement between Bank and Borrower and whether or
not for the payment of money, whether direct or indirect, absolute or contingent, due or to become
due now existing or hereafter arising, including, without limitation, any interest, fees, expenses,
costs and other amounts owed to Bank that but for the provisions of the United States Bankruptcy
Code would have accrued after the commencement of any Insolvency Proceeding, and including, without
limitation, any debt, liability, or obligations owing from Borrower to others which Bank may have
obtained by assignment, participation, purchase or otherwise, and further including, without
limitation, all interest not paid when due and all Bank Expenses which Borrower is required to pay
or reimburse by this Agreement, by law, or otherwise.

     1.24 “Insolvency Proceeding” shall mean and includes any proceeding or case commenced by or
against Borrower, or any of Borrower’s account debtors, under any provisions of the Bankruptcy
Code, as amended, or any other bankruptcy or insolvency law, including, but not limited to
assignments for the benefit of creditors, formal or informal moratoriums, composition or extensions
with some or all creditors, any proceeding seeking a reorganization, arrangement or any other
relief under the Bankruptcy Code, as amended, or any other bankruptcy or insolvency law.

     1.25 “Inventory” shall mean and includes all present and future inventory in which Borrower
has any interest, including, but not limited to, goods held by Borrower for sale or lease or to be
furnished under a contract of service and all of Borrower’s present and future raw materials, work
in process, finished goods (including without limitation any computer program embedded in any of
the foregoing goods and any supporting information provided in connection therewith that (i) is
associated with the goods in such a manner that the program customarily is considered part of the
goods or that (ii) by becoming the owner of the goods, a person acquires a right to use the program
in connection with the goods), together with any advertising materials and packing and shipping
materials, wherever located and any documents of title representing any of the above, and any
equipment, fixtures or other property used in the storing, moving, preserving, identifying,
accounting for and shipping or preparing for the shipping of inventory, and any and all other items
hereafter acquired by Borrower by way of substitution, replacement, return, repossession or
otherwise, and all additions and accessions thereto, and the resulting product or mass, and any
documents of title respecting any of the above.

     1.26 “Judicial Officer or Assignee” shall mean and includes any trustee, receiver, controller,
custodian, assignee for the benefit of creditors or any other person or entity having powers or
duties like or similar to the powers and duties of trustee, receiver, controller, custodian or
assignee for the benefit of creditors.

     1.27 “Letter of Credit Obligations” shall mean, as of any applicable date of determination,
the sum of the undrawn amount of any letter(s) of credit issued by Bank upon the application of
and/or for the account of Borrower, plus any unpaid reimbursement obligations owing by Borrower to
Bank in respect of any such letter(s) of credit.

     1.28 “Leverage Ratio: shall mean Borrower’s Senior Funded Debt divided by EBITDA for the most
recent four (4) fiscal quarters.

     1.29 “LIBOR Option” shall have the same meaning as set forth in the Revolving Note.

     1.30 “Loans” shall mean collectively all loans and advances of any kind made by Bank to
Borrower pursuant to the Agreement, including, but not limited to, the Term Loan and the Revolving
Loan.

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LOAN & SECURITY AGREEMENT

     1.31 “Negotiable Collateral” shall mean and include all of Borrower’s present and future
letters of credit, advises of credit, letter-of-credit rights, certificates of deposit, notes,
drafts, money, documents (including without limitation all negotiable documents), instruments
(including without limitation all promissory notes), tangible chattel paper or any other similar
property.

     1.32 “Net Income” shall mean the net income (or loss) of a person for any period of
determination, determined in accordance with GAAP.

     1.33 “Note” shall mean collectively all promissory notes evidencing Loans, including, but not
limited to, the Term Note and the Revolving Note.

     1.34 “Obligations” shall mean all Loans, advances, debt, principal, interest, fees, expenses,
costs and other amounts owed to Bank by Borrower pursuant to this Agreement or any other agreement,
together with all guaranties, covenants and duties owing by Borrower to Bank of any kind or
description, whether direct or indirect, absolute or contingent, due or to become due, now existing
or hereafter arising, including any interest, fees, expenses, costs and other amounts owed to Bank
that but for the provisions of the Bankruptcy Code would have accrued after the commencement of any
Insolvency Proceeding and including any debt, liability, or obligation owing from Borrower to
others that Bank may have obtained by assignment or otherwise.

     1.35 “Organizational Documents” shall mean, as applicable, Borrower’s certificate of
incorporation and bylaws and any amendments thereto or Borrower’s certificate of formation and
operating agreement and any amendments thereto.

     1.36 “Permitted Indebtedness” shall mean unsecured Indebtedness in the ordinary course of
Borrower’s business and Subordinated Debt.

     1.37 “Permitted Liens” means:

          (a) Liens securing the Obligations;

          (b) Liens for taxes, assessments and governmental charges the payment of which is not required
under Section 6.7 of this Agreement;

          (c) Liens imposed by law, such as carriers’, warehousemen’s, mechanics’, materialmen’s and
other similar Liens arising in the ordinary course of business and securing obligations (other than
indebtedness for borrowed money) that are not overdue by more than 30 days or are being contested
in good faith and by appropriate proceedings promptly initiated and diligently conducted, and a
reserve or other appropriate provision, if any, as shall be required by GAAP shall have been made
therefore;

          (d) deposits and pledges of cash securing (i) obligations incurred in respect of workers’
compensation, unemployment insurance or other forms of governmental insurance or benefits, (ii) the
performance of bids, tenders, leases, contracts (other than for the payment of money) and statutory
obligations, or (iii) obligations on surety or appeal bonds, but only to the extent such deposits
or pledges are incurred or otherwise arise in the ordinary course of business and secure
obligations not past due;

          (e) Liens arising out of the existence of judgments or awards not giving rise to an Event of
Default; and

          (f) the Liens arising out of the Subordinated Debt and those obligations set forth on
Exhibit F.

For purposes of the foregoing definition, “Lien” shall mean any pledge, lien (statutory or
otherwise), security interest, claim, charge or other encumbrance or security or preferential
arrangement of any nature.

     1.38 “Person” or “person” shall mean and includes any individual, corporation, partnership,
joint venture, firm, association, trust, unincorporated association, joint stock company,
government, municipality, political subdivision or agency or other entity.

     1.39 “Revolving Credit Limit” shall mean Three Million and no/100 Dollars ($3,000,000.00).

     1.40 “Revolving Loan” shall mean that certain Loan made by Bank to Borrower in an amount up to
$3,000,000.00 evidenced by the Revolving Note.

     1.41 “Revolving Note” shall mean that certain Revolving Promissory Note executed as of the
date hereof evidencing the Revolving Loan.

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LOAN & SECURITY AGREEMENT

     1.42 “Senior Funded Debt” shall mean as of any date of determination, all liabilities of
Borrower of whatever nature or duration consisting of indebtedness for borrowed money or
indebtedness owing to Lender excluding Subordinated Debt.

     1.43 “Subordinated Debt” shall mean the “Junior Debt” as such italicized term is defined in
the Subordination Agreement.

     1.44 “Subordination Agreement” shall mean that certain Subordination and Standstill Agreement
by and among Bank, Borrower and Iroquois Master Fund Ltd., dated as of October 10, 2006.

     1.45 “Term Loan” shall mean that certain Loan made by Bank to Borrower in the amount of
$2,500,000.00 evidenced by the Term Note.

     1.46 “Term Note” shall mean that certain Term Note executed as of the date hereof evidencing
the Term Loan.

     1.47 “Test Date” shall mean each March 31, June 30, September 30 and December 31.

Any and all terms used in the foregoing definitions and elsewhere in this Agreement shall be
construed and defined in accordance with the meaning and definition of such terms under and
pursuant to the Arizona Uniform Commercial Code (hereinafter referred to as the “Uniform Commercial
Code”) as amended, revised or replaced from time to time. Notwithstanding the foregoing, the
parties intend that the terms used herein which are defined in the Uniform Commercial Code have, at
all times, the broadest and most inclusive meanings possible. Accordingly, if the Uniform
Commercial Code shall in the future be amended or held by a court to define any term used herein
more broadly or inclusively than the Uniform Commercial Code in effect on the date of this
Agreement, then such term, as used herein, shall be given such broadened meaning. If the Uniform
Commercial Code shall in the future be amended or held by a court to define any term used herein
more narrowly, or less inclusively, than the Uniform Commercial Code in effect on the date of this
Agreement, such amendment or holding shall be disregarded in defining terms used in this Agreement.

2. LOANS AND TERMS OF PAYMENT.

     2.1 The Term Loan. The Term Loan shall be for the purpose of re-financing Borrower’s
existing Indebtedness as well as the indebtedness owed to David Band and Stanley B. Kane as
Trustees of the Putters Loan Trust. The entire amount of the Term Loan shall be advanced on the
Closing Date. Amounts repaid shall not be re-advanced. The Term Loan shall bear interest, on the
Daily Balance owing, at the interest rate as provided in the Term Note (subject to the rate
reduction provisions of Section 2.3 of this Agreement) and shall be payable pursuant to the terms
and in the manner provided in the Term Note.

     2.2 The Revolving Loan. The Revolving Loan shall be for the purpose of Borrower’s
general working capital needs. Upon the request of Borrower, made at any time and from time to
time during the term hereof, and so long as no Event of Default has occurred, Bank shall lend to
Borrower an amount not to exceed the Borrowing Base; provided, however, that the
Daily Balance shall not exceed the lesser of either the Revolving Credit Limit or the Borrowing
Base; if at any time for any reason, the amount of Indebtedness owed by Borrower to Bank pursuant
to this Section 2.2 of this Agreement is greater than the aggregate amount available to be drawn
under this Section 2.2, Borrower shall immediately pay to Bank, in cash, the amount of such excess.
The Revolving Loan shall bear interest, on the Daily Balance owing, at the interest rate as
provided in the Revolving Note (subject to the rate reduction and LIBOR Option provisions of
Section 2.3 of this Agreement) and shall be payable pursuant to the terms and in the manner
provided in the Revolving Note. Notwithstanding anything contained in this Agreement to the
contrary, until such time as Borrower has assigned to Lender the Ex-Im Bank Multi-Buyer Export
Credit Insurance Policy issued by the Export-Import Bank of the United States in connection with
the Eligible Foreign Accounts, Borrower shall not be allowed Advances under the Revolving Loan.

     2.3 Interest Rate Reduction. So long as no Event of Default shall have occurred and
be continuing, the interest rate as provided in the Term Note shall be reduced by the Base Rate
minus one quarter of one percent (0.25%) and the interest rate as provided in the Revolving Note
shall be reduced to the Base Rate minus three quarters of one percent (0.75%), with the further
option that Borrower may elect LIBOR Option interest rates at such time as Borrower has delivered
evidence satisfactory to Bank that a minimum of Ten Million and No/100 Dollars ($10,000,000.00) in
new equity (exclusive of Subordinated Debt) has been injected into the Borrower.

     2.4 Loan Fees. In addition to any other amounts due or to become due under this
Agreement concurrent with the execution hereof, Borrower shall pay to Bank the following fees:

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	 	a.	 	Commitment Fee. In connection with the extension of the
Term Loan, on the Closing Date, a fully earned and non-refundable closing fee of
$25,000.00.
	 
	 	b.	 	Unused Revolving Loan Fee. In connection with the
extension of the Revolving Loan, on the first day of each quarter during the
term of this Agreement, an unused facility fee, payable in arrears in an amount
equal to one quarter of one percent (.25%) per annum times the average available
amount of the Revolving Loan.

3. TERM.

     3.1 This Agreement shall remain in full force and effect until the earlier of payment in full
of the Loans, the last Loan maturity date (as provided in the Note) or until terminated by notice
by Borrower. Notice of such termination by Borrower shall be effectuated by mailing of a registered
or certified letter not less than ten (10) days prior to the effective date of such termination,
addressed to Bank at the address set forth herein and the termination shall be effective as of the
date so fixed in such notice.

Notwithstanding the foregoing, upon the occurrence of an Event of Default, Bank may terminate this
Agreement at any time without notice. Notwithstanding the foregoing, should either Bank or
Borrower become insolvent or unable to meet its debts as they mature, or fail, suspend, or go out
of business, the other party shall have the right to terminate this Agreement at any time without
notice. On the date of termination all Indebtedness shall become immediately due and payable
without notice or demand; no notice of termination by Borrower shall be effective until Borrower
shall have paid all Indebtedness to Bank in full. Notwithstanding termination, until all
Indebtedness has been fully satisfied, Bank shall retain its security interest in all existing
Collateral and Collateral arising thereafter, and Borrower shall continue to perform all of its
obligations.

     3.2 After termination and when Bank has received payment in full of Borrower’s Indebtedness to
Bank, Bank shall reassign to Borrower all Collateral held by Bank, and shall execute a termination
of all security agreements and security interests given by Borrower to Bank.

4. CREATION OF SECURITY INTEREST.

     4.1 Borrower hereby grants to Bank a continuing security interest in all presently existing
and hereafter arising Collateral in order to secure prompt repayment of any and all Indebtedness
owed by Borrower to Bank and in order to secure prompt performance by Borrower of each and all of
its covenants and obligations under this Agreement and otherwise created. Bank’s security interest
in the Collateral shall attach to all Collateral without further act on the part of Bank or
Borrower. In the event that any Collateral, including proceeds, is evidenced by or consists of
Negotiable Collateral, Borrower, immediately upon the occurrence of an Event of Default, shall (a)
endorse or assign such Negotiable Collateral to Bank, (b) deliver actual physical possession of
such Negotiable Collateral to Bank, and (c) mark conspicuously all of its records pertaining to
such Negotiable Collateral with a legend, in form and substance satisfactory to Bank (and in the
case of Negotiable Collateral consisting of tangible chattel paper, immediately mark all such
tangible chattel paper with a conspicuous legend in form and substance satisfactory to Bank),
indicating that the Negotiable Collateral is subject to the security interest granted to Bank
hereunder.

     4.2 Bank’s security interest in the Accounts shall attach to all Accounts without further act
on the part of Bank or Borrower. Upon request from Bank, Borrower shall provide Bank with schedules
describing all Accounts created or acquired by Borrower (including without limitation agings
listing the names and addresses of, and amounts owing by date by account debtors), and shall
execute and deliver written assignments of all Accounts to Bank all in a form acceptable to Bank;
provided, however, Borrower’s failure to execute and deliver such schedules and/or
assignments shall not affect or limit Bank’s security interest and other rights in and to the
Accounts. Upon the occurrence of an Event of Default, Bank or Bank’s designee may notify customers
or account debtors of Bank’s security interest in the Collateral and direct such customers or
account debtors to make payments directly to Bank, but unless and until Bank does so or gives
Borrower other written instructions, Borrower shall collect all Accounts for Bank, receive in trust
all payments thereon as Bank’s trustee, and, if so requested to do so from Bank, Borrower shall
immediately deliver said payments to Bank in their original form as received from the account
debtor and all letters of credit, advices of credit, instruments, documents, chattel paper or any
similar property evidencing or constituting Collateral. Notwithstanding anything to the contrary
contained herein, if sales of Inventory are made for cash, Borrower shall immediately deliver to
Bank, in identical form, all such cash, checks, or other forms of payment which Borrower receives.
The receipt of any such check or other item of payment by Bank shall not be considered a payment on
account until such check or other item of payment is honored when presented for payment, in which
event, said check or other item of payment shall be deemed to have been paid to Bank two (2)
calendar days after the date Bank actually receives such check or other item of payment.

     4.3 Bank’s security interest in Inventory shall attach to all Inventory without further act on
the part of Bank or Borrower. Borrower will at Borrower’s expense pledge, assemble and deliver
such Inventory to Bank or to a third party as

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Bank’s bailee; or hold the same in trust for Bank’s account or store the same in a warehouse
in Bank’s name; or deliver to Bank documents of title representing said Inventory; or evidence of
Bank’s security interest in some other manner acceptable to Bank. Until a default by Borrower
under this Agreement or any other Agreement between Borrower and Bank, Borrower may, subject to the
provisions hereof and consistent herewith, sell the Inventory, but only in the ordinary course of
Borrower’s business. A sale of Inventory in Borrower’s ordinary course of business does not
include an exchange or a transfer in partial or total satisfaction of a debt owing by Borrower.

     4.4 Concurrently with Borrower’s execution of this Agreement, and at any time or times
hereafter at the request of Bank, Borrower shall (a) execute and deliver to Bank security
agreements, mortgages, assignments, certificates of title, affidavits, reports, notices, schedules
of accounts, letters of authority and all other documents that Bank may reasonably request, in form
satisfactory to Bank, to perfect and maintain perfected Bank’s security interest in the Collateral
and in order to fully consummate all of the transactions contemplated under this Agreement, (b)
cooperate with Bank in obtaining a control agreement in form and substance satisfactory to Bank
with respect to all electronic chattel paper, investment property, and letter-of-credit rights, and
(c) in the event that any Collateral is in the possession of a third party, Borrower shall join
with Bank in notifying such third party of Bank’s security interest and obtaining an acknowledgment
from such third party that it is holding such Collateral for the benefit of Bank. By
authenticating or becoming bound by this Agreement, Borrower authorizes the filing of initial
financing statement(s), and any amendment(s) covering the Collateral to perfect and maintain
perfected Bank’s security interest in the Collateral. Upon the occurrence of an Event of Default,
Borrower hereby irrevocably makes, constitutes and appoints Bank (and any of Bank’s officers,
employees or agents designated by Bank) as Borrower’s true and lawful attorney-in-fact with power
to sign the name of Borrower on any security agreement, mortgage, assignment, certificate of title,
affidavit, letter of authority, notice of other similar documents which must be executed and/or
filed in order to perfect or continue perfected Bank’s security interest in the Collateral, and to
take such actions in its own name or in Borrower’s name as Bank, in its sole discretion, deems
necessary or appropriate to establish exclusive possession or control (as defined in the Uniform
Commercial Code) over any Collateral of such nature that perfection of Bank’s security interest may
be accomplished by possession or control.

     4.5 Borrower shall make appropriate entries in Borrower’s Books disclosing Bank’s security
interest in the Accounts. Bank (through any of its officers, employees or agents) shall have the
right at any time or times hereafter, provided that reasonable notice is provided, during
Borrower’s usual business hours, or during the usual business hours of any third party having
control over the records of Borrower, to inspect and verify Borrower’s Books in order to verify the
amount or condition of, or any other matter, relating to, said Collateral and Borrower’s financial
condition.

     4.6 Effective only upon the occurrence of an Event of Default, Borrower appoints Bank or any
other person whom Bank may designate as Borrower’s attorney-in-fact, with power: to endorse
Borrower’s name on any checks, notes, acceptances, money order, drafts or other forms of payment or
security that may come into Bank’s possession; to sign Borrower’s name on any invoice or bill of
lading relating to any Accounts, on drafts against account debtors, on schedules and assignments of
Accounts, on verifications of Accounts and on notices to account debtors; to establish a lock box
arrangement and/or to notify the post office authorities to change the address for delivery of
Borrower’s mail addressed to Borrower to an address designated by Bank, to receive and open all
mail addressed to Borrower, and to retain all mail relating to the Collateral and forward all other
mail to Borrower; to send, whether in writing or by telephone, requests for verification of
Accounts; and to do all things necessary to carry out this Agreement. Borrower ratifies and
approves all acts of the attorney-in-fact. Neither Bank nor its attorney-in-fact will be liable
for any acts or omissions or for any error of judgement or mistake of fact or law. This power
being coupled with an interest, is irrevocable so long as any Accounts in which Bank has a security
interest remain unpaid and until the Indebtedness has been fully satisfied.

     4.7 In order to protect or perfect any security interest which Bank is granted hereunder, Bank
may, in its sole discretion, discharge any lien or encumbrance or bond the same, pay any insurance,
maintain guards, warehousemen, or any personnel to protect the Collateral, pay any service bureau,
or, obtain any records, and all costs for the same shall be added to the Indebtedness and shall be
payable on demand.

     4.8 Borrower agrees that Bank may provide information relating to this Agreement or relating
to Borrower to Bank’s parent, affiliates, subsidiaries and service providers.

     4.9 The Loan shall also be secured by that certain Intellectual Property Security Agreement
dated as of June 30, 2006.

5. CONDITIONS PRECEDENT.

     5.1 Conditions precedent to the making of the loans and the extension of the financial
accommodations hereunder, Borrower shall execute, or cause to be executed, and deliver to Bank, in
form and substance satisfactory to Bank and its counsel, the following:

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LOAN & SECURITY AGREEMENT

	 	a.	 	This Agreement and other documents, instruments and agreements
required by Bank;
	 
	 	b.	 	Borrower shall have paid the Loan Fees due pursuant to Section
2.4 of this Agreement;
	 
	 	c.	 	Borrower shall have reimbursed Bank for all Bank Expenses
incurred in connection with this Agreement, the Loan Documents and the closing
of the Loan, including, but not limited to, outside attorneys’ fees.
	 
	 	d.	 	Certified copies of all actions taken by Borrower authorizing the
execution, delivery and performance of this Agreement and any other documents,
instruments or agreements entered into in connection herewith, and authorizing
specific officers to execute and deliver any such documents, instruments and
agreements;
	 
	 	e.	 	A certificate of good standing showing that Borrower is in good
standing under the laws of the state of Delaware and certificates indicating
that Borrower is qualified to transact business and is in good standing in any
other state in which it conducts business;
	 
	 	f.	 	A copy of Borrower’s Organization Documents;
	 
	 	g.	 	UCC searches and financing statements, fictitious business
statement filings, insurance certificates, notices or other similar documents
which Bank may require and in such form as Bank may require, in order to
reflect, perfect or protect Bank’s first priority security interest in the
Collateral and in order to fully consummate all of the transactions contemplated
under this Agreement;
	 
	 	h.	 	Evidence that Borrower has obtained insurance and acceptable
endorsements;
	 
	 	i.	 	A listing of the lease residuals due Borrower;
	 
	 	j.	 	An opinion of Borrower’s counsel as to such matters reasonably
requested by Bank.
	 
	 	k.	 	Evidence that Borrower has been extended a minimum of Four
Million and No/100 Dollars ($4,000,000.00) in Subordinated Debt; and
	 
	 	l.	 	Warranties and representations of officers.

6. WARRANTIES. REPRESENTATIONS AND COVENANTS.

     6.1 If so requested by Bank, Borrower shall, at such intervals designated by Bank, during the
term hereof execute and deliver a Report of Accounts Receivable or similar report, in form
customarily used by Bank. The aggregate amount of the Borrowing Base at all times during the
effectiveness of this Agreement shall not be less than the advances made hereunder. Bank shall
have the right to recompute the Borrowing Base in conformity with this Agreement.

     6.2 If any warranty is breached as to any Account, or any Account is not paid in full by an
account debtor within sixty (60) days from the date of invoice, or an account debtor disputes
liability or makes any claim with respect thereto, or a petition in bankruptcy or other application
for relief under the Bankruptcy Code or any other insolvency law is filed by or against an account
debtor, or an account debtor makes an assignment for the benefit of creditors, becomes insolvent,
fails or goes out of business, then Bank may deem ineligible any and all Accounts owing by that
account debtor, and reduce the Borrowing Base by the amount thereof. Bank shall retain its security
interest in all Accounts, whether eligible or ineligible, until all Indebtedness has been fully
paid and satisfied. Returns and allowances, if any, as between Borrower and its customers, will be
on the same basis and in accordance with the usual customary practices of Borrower, as they exist
at this time. Any merchandise which is returned by an account debtor or otherwise recovered shall
be set aside, marked with Bank’s name, and Bank shall retain a security interest therein. Borrower
shall promptly notify Bank of all disputes and claims and settle or adjust them on terms approved
by Bank. After default by Borrower hereunder, no discount, credit or allowance shall be granted to
any account debtor by Borrower and no return of merchandise shall be accepted by Borrower without
Bank’s consent. Bank may, after default by Borrower, settle or adjust disputes and claims directly
with account debtors for amounts and upon terms which Bank considers advisable, and in such cases
Bank will credit Borrower’s loan account with only the net amounts received by Bank in payment of
the Accounts, after deducting all Bank Expenses in connection therewith.

     6.3 Borrower warrants, represents, covenants and agrees that:

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LOAN & SECURITY AGREEMENT

	 	a.	 	Borrower has good and marketable title to the Collateral. Subject
to any Permitted Liens, Bank has and shall continue to have a first priority
perfected security interest in and to the Collateral. The Collateral shall at
all times remain free and clear of all liens, encumbrances and security
interests (except those in favor of Bank and except for Permitted Liens);
	 
	 	b.	 	All Accounts are and will, at all times pertinent hereto, be bona
fide existing obligations created by the sale and delivery of merchandise or the
rendition of services to account debtors in the ordinary course of business,
free of liens, claims, encumbrances and security interests (except as held by
Bank and except as may be consented to, in writing, by Bank, and further except
for Permitted Liens);
	 
	 	c.	 	At the time each Account is assigned to Bank, all property giving
rise to such Account shall have been delivered to the account debtor or to the
agent for the account debtor for immediate shipment to the account debtor.
Borrower shall deliver to Bank, as Bank may from time to time require, delivery
receipts, customer’s purchase orders, shipping instructions, bills of lading and
any other evidence of shipping arrangements. Absent such a request by Bank,
copies of all such documentation shall be held by Borrower as custodian for
Bank; and
	 
	 	d.	 	Borrower shall permit representatives of Bank to conduct, up to
once per year beginning on the first anniversary of this Agreement, an audit of
Borrower’s books and records relating to the Accounts, Inventory and other
Collateral and make extracts therefrom, with results satisfactory to Bank,
provided that Bank shall use its best efforts to not interfere with the
conduct of Borrower’s business, and to the extent possible to arrange for
verification of the Accounts directly with the account debtors obligated thereon
or otherwise, all under reasonable procedures acceptable to Bank and at
Borrower’s sole expense; provided, further, that, prior to an
Event of Default, Borrower shall not be responsible for the expense of more than
one (1) such audit, in any fiscal year. Borrower hereby acknowledges and agrees
that upon completion of any such audit Bank shall have the right to reasonably
adjust the Borrowing Base percentage, in its sole and reasonable discretion,
based on its review of the results of such collateral audit; provided,
further, that if Bank makes an adjustment to the Borrowing Base
percentage that results in there being an Event of Default, Borrower shall have
a period of thirty (30) days following receipt of written notice from Bank of
such Event of Default in which to cure the Event of Default.

     6.4 At the time each Eligible Account and each Eligible Foreign Account is assigned to Bank,
all such Eligible Accounts and Eligible Foreign Accounts will be due and payable on terms set forth
in Sections 1.16 and 1.17 respectively, or on such other terms approved in writing by Bank in
advance of the creation of such Accounts and which are expressly set forth on the face of all
invoices, copies of which shall be held by Borrower as custodian for Bank, and no such Account will
then be past due.

     6.5 Borrower shall keep the Inventory at Borrower’s address set forth in the first paragraph
of this Agreement or at the locations more particularly referenced on Exhibit E.

	 	a.	 	All of the Inventory is and shall remain free from all purchase
money or other security interests, liens or encumbrances, except as held by Bank
and except for Permitted Liens;
	 
	 	b.	 	Borrower does now keep and hereafter at all times shall keep
correct and accurate records itemizing and describing the kind, type, quality
and quantity of the Inventory, its cost therefor and selling price thereof, and
the daily withdrawals therefrom and additions thereto, all of which records
shall be available upon demand to any of Bank’s officers, agents and employees
for inspection and copying; and
	 
	 	c.	 	Inventory is not now and shall not at any time or times hereafter
be located or stored with a bailee, warehouseman or other third party without
Bank’s prior written consent, and, in such event, Borrower will concurrently
therewith cause any such bailee, warehouseman or other third party to issue and
deliver to Bank, warehouse receipts in Bank’s name evidencing the storage of
Inventory and/or an acknowledgment by such bailee of Bank’s prior rights in the
Inventory, in each case in form and substance acceptable to Bank. In any event,
Borrower shall instruct any third party to hold all such Inventory for Bank’s
account subject to Bank’s security interests and its instructions.

     6.6 Borrower represents, warrants and covenants with Bank that Borrower will not, without
Bank’s prior written consent:

	 	a.	 	Grant a security interest in or permit a lien, claim or
encumbrance upon any of the Collateral to any person, association, firm,
corporation, entity or governmental agency or instrumentality, except for
Permitted Liens;

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LOAN & SECURITY AGREEMENT

	 	b.	 	Permit any levy, attachment or restraint to be made affecting any
of Borrower’s assets, except for Permitted Liens;
	 
	 	c.	 	Permit any Judicial Officer or Assignee to be appointed or to
take possession of any or all of Borrower’s assets;
	 
	 	d.	 	Other than sales of Inventory in the ordinary course of
Borrower’s business or for dispositions permitted in clause (m) of this Section
6.6 below or for transactions having an aggregate book value of not more than
One Hundred Thousand and No/100 Dollars ($100,000.00) (whether in one
transaction or in a series of transactions), to sell, lease, or otherwise
dispose of, move, or transfer, whether by sale or otherwise, any of Borrower’s
assets;
	 
	 	e.	 	Change its name, the location of its sole place of business,
chief executive office or residence, business structure, corporate identity or
structure, form of organization or the state in which it has been formed or
organized; add any new fictitious names, liquidate, merge or consolidate with or
into any other business organization;
	 
	 	f.	 	Move or relocate any Collateral other than in the ordinary course
of Borrower’s business;
	 
	 	g.	 	Acquire any other business organization except as disclosed on
Exhibit G;
	 
	 	h.	 	Enter into any transaction not in the usual course of Borrower’s
business;
	 
	 	i.	 	Make any change in Borrower’s financial structure or in any of
its business objectives, purposes or operations which would materially adversely
affect the ability of Borrower to repay Borrower’s Indebtedness;
	 
	 	j.	 	Incur any debts other than Permitted Indebtedness;
	 
	 	k.	 	Make loans, advances or extensions of credit to any Person,
except in the ordinary course of business;
	 
	 	l.	 	Guarantee or otherwise, directly or indirectly, in any way be or
become responsible for obligations of any other Person, whether by agreement to
purchase the indebtedness of any other Person, agreement for the furnishing of
funds to any other Person through the furnishing of goods, supplies or services,
by way of stock purchase, capital contribution, advance or loan, for the purpose
of paying or discharging (or causing the payment or discharge of) the
indebtedness of any other Person, or otherwise, except for the endorsement of
negotiable instruments by Borrower in the ordinary course of business for
deposit or collection;
	 
	 	m.	 	Except for ordinary course distributions from ProLink Solutions,
LLC to ProLink Holdings Corp., make any distribution or declare or pay any
dividend (in stock or in cash) to any member or shareholder (as applicable);
	 
	 	n.	 	Purchase or hold beneficially any stock or other securities of,
or make any investment or acquire any securities or other interest whatsoever
in, any other Person, except for the membership interest of ProLink Solutions,
LLC owned by ProLink Holdings Corp. on the date of this Agreement and except for
certificates of deposit with maturities of one year or less of United States
commercial banks with capital, surplus and undivided profits in excess of One
Hundred Million Dollars ($100,000,000) and the securities or other direct
obligations of the United States Government maturing within one year from the
date of acquisition thereof; and
	 
	 	o.	 	Allow any fact, condition or event to occur or exist with respect
to any employee pension or profit sharing plans established or maintained by it
which might constitute grounds for termination of any such plan or for the court
appointment of a trustee to administer any such plan.

     6.7 Borrower represents, warrants, covenants and agrees that:

	 	a.	 	Borrower’s true and correct legal name is that set forth on the
signature page to this Agreement. Except as disclosed in writing to Bank on or
before the date of this Agreement or as set forth in the certificate of
incorporation or certificate of formation provided to the Bank, Borrower has not
done business under any name other than that set forth on the signature page to
this Agreement;

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LOAN & SECURITY AGREEMENT

	 	b.	 	Borrower is and shall at all times hereafter be duly organized
and/or incorporated and existing in good standing under the laws of the state of
Delaware and qualified and licensed in all states in which it is required to do
so;
	 
	 	c.	 	Borrower has the right and power and is duly authorized to enter
into this Agreement; and
	 
	 	d.	 	The execution by Borrower of this Agreement shall not constitute
a breach of any provision contained in Borrower’s Organizational Documents.

     6.8 The execution of and performance by Borrower of all of the terms and provisions contained
in this Agreement shall not result in a breach of or constitute an event of default under any
agreement to which Borrower is now or hereafter becomes a party.

     6.9 Borrower shall promptly notify Bank in writing of its acquisition by purchase, lease or
otherwise of any after acquired property of the type included in the Collateral having an aggregate
book value of more than One Hundred Thousand and No/100 Dollars ($100,000.00) (whether in one
transaction or in a series of transactions), with the exception of purchases of Inventory in the
ordinary course of business.

     6.10 All assessments and taxes, whether real, personal or otherwise, due or payable by, or
imposed, levied or assessed against, Borrower or any of its property have been paid, and shall
hereafter be paid in full, before delinquency, except to the extent contested in good faith by
proper proceedings which stay the imposition of any penalty, fine or Lien resulting from the
non-payment thereof and with respect to which adequate reserves have been set aside for the payment
thereof in accordance with GAAP. Borrower shall make due and timely payment or deposit of all
federal, state and local taxes, assessments or contributions required of it by law (except as
otherwise permitted by the immediately preceding sentence), and will execute and deliver to Bank,
on demand, appropriate certificates attesting to the payment or deposit thereof. Borrower will make
timely payment or deposit of all F.I.C.A. payments and withholding taxes required of it by
applicable laws, and will upon request furnish Bank with proof satisfactory to it that Borrower has
made such payments or deposit. If Borrower fails to pay any such assessment, tax, contribution, or
make such deposit, or furnish the required proof, Bank may, in its sole and absolute discretion and
without notice to Borrower, (I) make payment of the same or any part thereof, or (ii) set up such
reserves in Borrower’s loan account as Bank deems necessary to satisfy the liability therefor, or
both. Bank may conclusively rely on the usual statements of the amount owing or other official
statements issued by the appropriate governmental agency. Each amount so paid or deposited by Bank
shall constitute a Bank Expense and an additional advance to Borrower.

     6.11 There are no material actions or proceedings pending by or against Borrower before any
court or administrative agency and Borrower has no knowledge of any pending, threatened or imminent
litigation, governmental investigations or claims, complaints, actions or prosecutions involving
Borrower, except as disclosed to Bank and as more particularly referenced in Exhibit B
attached hereto. If any of the foregoing arise during the term of the Agreement, Borrower shall
immediately notify Bank in writing.

     6.12 Insurance.

	 	a.	 	Borrower, at its expense, shall keep and maintain its assets
insured against loss or damage by fire, theft, explosion, sprinklers and all
other hazards and risks ordinarily insured against by other owners who use such
properties in similar businesses for the full insurable value thereof. Borrower
shall also keep and maintain business interruption insurance and public
liability and property damage insurance relating to Borrower’s ownership and use
of the Collateral and its other assets. All such policies of insurance shall be
in such form, with such companies, and in such amounts as may be satisfactory to
Bank. Borrower shall deliver to Bank certified copies of such policies of
insurance and evidence of the payments of all premiums therefor. All such
policies of insurance (except those of public liability and property damage)
shall contain an endorsement in a form satisfactory to Bank showing Bank as a
loss payee thereof, with a waiver of warranties satisfactory to Bank, and all
proceeds payable thereunder shall be payable to Bank and, upon receipt by Bank,
shall be applied on account of the Indebtedness owing to Bank. To secure the
payment of the Indebtedness, Borrower grants Bank a security interest in and to
all such policies of insurance (except those of public liability and property
damage) and the proceeds thereof, and Borrower shall direct all insurers under
such policies of insurance to pay all proceeds thereof directly to Bank.
	 
	 	b.	 	Borrower hereby irrevocably appoints Bank (and any of Bank’s
officers, employees or agents designated by Bank) as Borrower’s attorney for the
purpose of making, selling and adjusting claims under such policies of
insurance, endorsing the name of Borrower on any check, draft, instrument or
other item of payment for the proceeds of such policies of insurance and for
making all determinations and decisions with respect to such policies of
insurance. Borrower will not cancel any of such policies

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LOAN & SECURITY AGREEMENT

	 	 	 	without Bank’s prior written consent. Each such insurer shall agree by endorsement
upon the policy or policies of insurance issued by it to Borrower as required
above, or by independent instruments furnished to Bank, that it will give Bank at
least ten (10) days written notice before any such policy or policies of insurance
shall be altered or canceled, and that no act or default of Borrower, or any other
person, shall affect the right of Bank to recover under such policy or policies of
insurance required above or to pay any premium in whole or in part relating
thereto. Bank, without waiving or releasing any Indebtedness or any Event of
Default, may, but shall have no obligation to do so, obtain and maintain such
policies of insurance and pay such premiums and take any other action with respect
to such policies which Bank deems advisable. All sums so disbursed by Bank, as
well as reasonable attorneys’ fees incurred by Bank, whether in-house or outside
counsel is used, court costs, expenses and other charges relating thereto, shall
constitute Bank Expenses and are payable on demand.

     6.13 All financial statements and information relating to Borrower which have been or may
hereafter be delivered by Borrower to Bank are true and correct and have been prepared in
accordance with GAAP consistently applied (unless otherwise disclosed in the audited financial
statement and information on file with the Securities and Exchange Commission) and there has been
no material adverse change in the financial condition of Borrower since the submission of such
financial information to Bank unless otherwise disclosed.

     6.14 Financial Reporting.

	 	a.	 	Borrower at all times hereafter shall maintain a standard and
modern system of accounting in accordance with GAAP consistently applied with
ledger and account cards and/or computer tapes and computer disks, computer
printouts and computer records pertaining to the Collateral which contain
information as may from time to time be requested by Bank, not modify or change
its method of accounting except for such modifications or changes made in
accordance with GAAP or enter into, modify or terminate any agreement presently
existing, or at any time hereafter entered into with any third party accounting
firm and/or service bureau for the preparation and/or storage of Borrower’s
accounting records without the written consent of Bank first obtained and
without said accounting firm and/or service bureau agreeing to provide
information regarding the Accounts and Inventory and Borrower’s financial
condition to Bank; permit Bank and any of its employees, officers or agents,
upon demand, during Borrower’s usual business hours, or the usual business hour
of third persons having control thereof, to have access to and examine all of
Borrower’s Books relating to the Collateral, Borrower’s Indebtedness to Bank,
Borrower’s financial condition and the results of Borrower’s operations and in
connection therewith, permit Bank or any of its agents, employees or officers to
copy and make extracts therefrom.
	 
	 	b.	 	Within one hundred twenty (120) days after the end of each fiscal
year of Borrower, financial statements (including a balance sheet and a profit
and loss statement and a statement of cash flow), setting forth, on a
consolidated basis for Borrower, all assets, liabilities and net worth as of the
end of such fiscal year (and the immediately preceding fiscal year) and any
profit and loss for the relevant fiscal year (and the immediately preceding
fiscal year), which statements shall be audited without qualification by Semple
& Cooper, a Certified Public Accountant that is acceptable to the Bank or any
other Certified Public Accountant that is acceptable to the Bank and in each
case shall be accompanied by Borrower’s Financial Covenant Compliance
Certificate certified by Borrower’s chief financial officer;
	 
	 	c.	 	Within thirty (30) days after the end of each month (forty-five
(45) days for fiscal quarter ends), detailed financial statements (including a
balance sheet and a profit and loss statement and a statement of cash flow),
setting forth, on a consolidated basis for Borrower, all assets, liabilities and
net worth as of the end of such month (and the comparable month in the preceding
fiscal year) and any profit and loss for the relevant month (and the comparable
month in the preceding fiscal year), prepared by Borrower and with respect to
the monthly financial statements for the months March, June, September and
December, accompanied by Borrower’s Financial Covenant Compliance Certificate
certified by Borrower’s chief financial officer;
	 
	 	d.	 	Within thirty (30) days after the end of each calendar month, an
accounts receivable and accounts payable agings report all as certified by
Borrower’s chief financial officer.
	 
	 	e.	 	Within five (5) days after the end of each week in which Borrower
has an outstanding balance under the Revolving Loan, a Borrowing Base
Certificate for such week.
	 
	 	f.	 	Promptly after the same are available, copies of all proxy
statements, financial statements and reports as Borrower or any subsidiary shall
send to its members or stockholders, and copies of all reports on

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LOAN & SECURITY AGREEMENT

	 	 	 	Forms 10-K, 10-Q, and 8-K or otherwise filed by Borrower or any subsidiary of
Borrower with the Securities and Exchange Commission or any governmental authority
at any time substituted therefor.
	 
	 	g.	 	Promptly, from time to time, such other information regarding the
operations, business affairs and financial condition of Borrower as Bank may
reasonably request.

     6.15 Borrower shall maintain (or cause to be maintained) the following financial ratios and
covenants on a combined basis, which shall be monitored on each Test Date, except as noted below:

	 	a.	 	A Cash Flow Coverage Ratio of not less than 1.10X as of the end
of September 30, 2006 (annualizing EBITDA using the first three quarters of
2006), and thereafter, 1.25X calculated as provided in the definition of Cash
Flow Coverage Ratio;
	 
	 	b.	 	as of fiscal year ending December 31, 2006 and thereafter, a
minimum net worth of $10,000,000.00; and
	 
	 	c.	 	a Leverage Ratio not to exceed 3.0:1.0.

All financial covenants shall be computed in accordance with GAAP consistently applied
except as otherwise specifically set forth in this Agreement. All monies due from affiliates
(including officers and members) shall be excluded from Borrower’s assets for all purposes
hereunder.

     6.16 Borrower shall promptly supply Bank with such other information (including tax returns)
concerning its financial affairs as Bank may request from time to time hereafter, and shall
promptly notify Bank of any material adverse change in Borrower’s financial condition and of any
condition or event which constitutes a breach of or an event which constitutes an Event of Default
under this Agreement.

     6.17 Borrower is now and shall be at all times hereafter solvent and able to pay its debts
(including trade debts) as they mature.

     6.18 Borrower shall immediately and without demand reimburse Bank for all sums expended by
Bank in connection with any action brought by Bank to correct any default or enforce any provision
of this Agreement, including all Bank Expenses; Borrower authorizes and approves all advances and
payments by Bank for items described in this Agreement as Bank Expenses.

     6.19 Except as disclosed to Bank on Exhibit B, Borrower, as of the date hereof,
possesses all necessary trademarks, trade names, copyrights, patents, patent rights, and licenses
to conduct their businesses as now operated, without any known conflict with valid trademarks,
trade names, copyrights, patents and license rights of others. Borrower shall protect, defend and
maintain the validity and enforceability of all trademarks, patents and copyrights and use its best
efforts to detect infringements of its trademarks, patents and copyrights and promptly advise Bank
in writing of material infringements detected. Borrower shall not allow any material trademarks,
patents or copyrights to be sold, assigned, transferred, abandoned, forfeited or dedicated to the
public without the written consent of Bank.

     6.20 Each warranty, representation and agreement contained in this Agreement shall be
automatically deemed repeated with each advance and shall be conclusively presumed to have been
relied on by Bank regardless of any investigation made or information possessed by Bank. The
warranties, representations and agreements set forth herein shall be cumulative and in addition to
any and all other warranties, representations and agreements which Borrower shall give, or cause to
be given, to Bank, either now or hereafter.

     6.21 Borrower shall furnish to Bank: (a) as soon as possible, but in no event later than
thirty (30) days after Borrower knows or has reason to know that any reportable event with respect
to any deferred compensation plan has occurred, a statement of the chief financial officer of
Borrower setting forth the details concerning such reportable event and the action which Borrower
proposes to take with respect thereto, together with a copy of the notice of such reportable event
given to the Pension Benefit Guaranty Corporation, if a copy of such notice is available to
Borrower; (b) promptly after the filing thereof with the United States Secretary of Labor or the
Pension Benefit Guaranty Corporation, copies of each annual report with respect to each deferred
compensation plan; (c) promptly after receipt thereof, a copy of any notice Borrower may receive
from the Pension Benefit Guaranty Corporation or the Internal Revenue Service with respect to any
deferred compensation plan; provided, however, this subparagraph shall not apply to
notice of general application issued by the Pension Benefit Guaranty Corporation or the Internal
Revenue Service; and (d) when the same is made available to participants in the deferred
compensation plan, all notices and other forms of information from time to time disseminated to the
participants by the administrator of the deferred compensation plan.

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 LOAN & SECURITY AGREEMENT

     6.22 Borrower is now and shall at all times hereafter remain in compliance with all federal,
state and municipal laws, regulations and ordinances relating to the handling, treatment and
disposal of toxic substances, wastes and hazardous material and shall maintain all necessary
authorizations and permits.

     6.23 Borrower represents and warrants that:

	 	a.	 	Borrower has not incurred the Loans with the actual intent to
hinder, delay or defraud either its present or future creditors or any other
entity to which Borrower was, is or will become indebted;
	 
	 	b.	 	Borrower has received fair consideration as defined in Arizona
Revised Statute §44-1003 (any reasonable equivalent value for purposes of §548
of the Federal Bankruptcy Code) in exchange or consideration for incurring such
Loans;
	 
	 	c.	 	Borrower is not insolvent as defined in Arizona Revised Statute
§44-1002 or §101 of the Federal Bankruptcy Code before or after incurring the
Loans or as a result of incurring the Loans;
	 
	 	d.	 	Borrower is not engaged in or about to engage in any business or
transaction for which the property remaining with it or in its hands was, is or
will be unreasonably small capital; and
	 
	 	e.	 	Borrower does not intend to incur or believe that it will incur
debts beyond its ability to pay as they mature or are matured.

7. EVENTS OF DEFAULT.

     7.1 Any one or more of the following events shall constitute an Event of Default by Borrower
under this Agreement:

	 	a.	 	If Borrower fails or neglects to perform, keep or observe any
term, provision, condition, covenant, agreement, warranty or representation
contained in this Agreement and not specified in subsection (c) of this Section
7.1, or any other present or future document, instrument or agreement between
Borrower and Bank, and such default shall continue for a period of thirty (30)
days after Borrower’s receipt of written notice from Bank specifying such
default, provided, such default is of the nature that can be cured by
action on the part of Borrower or its constituent members;
	 
	 	b.	 	If any representation, statement, report or certificate made or
delivered by Borrower, or any of its officers, employees or agents to Bank is
not true and correct in any material respect as of the date on which made or
deemed made;
	 
	 	c.	 	If Borrower fails to pay within ten (10) days after the date when
due; or fails to pay when due and payable or declared due and payable, any other
portion of Borrower’s Indebtedness, and such default shall continue for a period
of ten (10) days after Borrower’s receipt of written notice from Bank specifying
such default;
	 
	 	d.	 	If there is a material impairment of the prospect of repayment of
all or any portion of Borrower’s Indebtedness or a material impairment of the
value or priority of Bank’s security interest in the Collateral;
	 
	 	e.	 	If all or any of Borrower’s assets are attached, seized, subject
to a writ or distress warrant, or are levied upon, or come into the possession
of any Judicial Officer or Assignee and the same are not released, discharged or
bonded against within thirty (30) days thereafter;
	 
	 	f.	 	If any Insolvency Proceeding is filed or commenced by or against
Borrower without being dismissed within thirty (30) days thereafter;
	 
	 	g.	 	If any proceeding is filed or commenced by or against Borrower
for its dissolution or liquidation;
	 
	 	h.	 	If Borrower is enjoined, restrained or in any way prevented by
court order from continuing to conduct all or any material part of its business
affairs;

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LOAN & SECURITY AGREEMENT

	 	i.	 	If a notice of lien, levy or assessment is filed of record with
respect to any or all of Borrower’s assets by the United States Government, or
any department, agency or instrumentality thereof, or by any state, county,
municipal or other government agency, or if any taxes or debts owing at any time
hereafter to any one or more of such entities becomes a lien, whether inchoate
or otherwise, upon any or all of Borrower’s assets and the same is not paid on
the payment date thereof and does not otherwise constitute a Permitted Lien;
	 
	 	j.	 	If a judgment or other claim becomes a lien or encumbrance upon
any or all of Borrower’s assets and the same is not satisfied, dismissed or
bonded against within thirty (30) days thereafter;
	 
	 	k.	 	If Borrower’s records are prepared and kept by an outside
computer service bureau at the time this Agreement is entered into or during the
term of this Agreement such an agreement with an outside service bureau is
entered into, and at any time thereafter, without first obtaining the written
consent of Bank, Borrower terminates, modifies, amends or changes its
contractual relationship with said computer service bureau or said computer
service bureau fails to provide Bank with any requested information or financial
data pertaining to Bank’s Collateral, Borrower’s financial condition or the
results of Borrower’s operations;
	 
	 	l.	 	If Borrower permits a default in any material agreement to which
Borrower is a party with third parties so as to result in an acceleration of the
maturity of Borrower’s indebtedness to others, whether under any indenture,
agreement or otherwise; or
	 
	 	m.	 	If any material misrepresentation exists now or thereafter in any
warranty or representation made to Bank by any officer or director of Borrower
as of the date made or deemed made, or if any such warranty or representation is
withdrawn by any officer or director.

Notwithstanding anything contained in Section 7 to the contrary, Bank shall refrain from exercising
its rights and remedies and Event of Default shall thereafter not be deemed to have occurred by
reason of the occurrence of any of the events set forth in Sections 7.1(e), (f) or (j) of this
Agreement if, within thirty (30) days from the date thereof, the same is released, discharged,
dismissed, bonded against or satisfied; provided, however, if the event is the institution of
Insolvency Proceedings against Borrower, Bank shall not be obligated to make advances to Borrower
during such cure period.

8. BANK’S RIGHTS AND REMEDIES.

     8.1 Upon the occurrence of an Event of Default by Borrower under this Agreement, Bank may, at
its election, without notice of its election and without demand, do any one or more of the
following, all of which are authorized by Borrower:

	 	a.	 	Declare Borrower’s Indebtedness, whether evidenced by this
Agreement, installment notes, demand notes or otherwise, immediately due and
payable to Bank;
	 
	 	b.	 	Cease advancing money or extending credit to or for the benefit
of Borrower under this Agreement, or any other agreement between Borrower and
Bank;
	 
	 	c.	 	Terminate this Agreement as to any future liability or obligation
of Bank, but without affecting Bank’s rights and security interests in the
Collateral, and the Indebtedness of Borrower to Bank;
	 
	 	d.	 	Without notice to or demand upon Borrower, make such payments and
do such acts as Bank considers necessary or reasonable to protect its security
interest in the Collateral. Borrower agrees to assemble the Collateral if Bank
so requires and to make the Collateral available to Bank as Bank may designate.
Borrower authorizes Bank to enter the premises where the Collateral is located,
take and maintain possession of the Collateral and the premises (at no charge to
Bank), or any part thereof, and to pay, purchase, contest or compromise any
encumbrance, charge or lien which in the opinion of Bank appears to be prior or
superior to its security interest and to pay all expenses incurred in connection
therewith;
	 
	 	e.	 	Without limiting Bank’s rights under any security interest, Bank
is hereby granted a license or other right to use, without charge, Borrower’s
labels, patents, copyrights, rights of use of any name, trade secrets, trade
names, trademarks and advertising matter, or any property or a similar nature as
it pertains to the Collateral, in completing production of, advertising for sale
and selling any Collateral and Borrower’s rights under all licenses and all
franchise agreement shall inure to Bank’s benefit, and Bank shall have the right
and power to enter into sublicense agreements with respect to all such rights
with third parties on terms acceptable to Bank;

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LOAN & SECURITY AGREEMENT

	 	f.	 	Ship, reclaim, recover, store, finish, maintain, repair, prepare
for sale, advertise for sales and sell (in the manner provided for herein) the
Inventory;
	 
	 	g.	 	Sell or dispose the Collateral at either a public or private
sale, or both, by way of one or more contracts or transactions, for cash or on
terms, in such manner and at such places (including Borrower’s premises) as is
commercially reasonable in the opinion of Bank. It is not necessary that the
Collateral be present at any such sale. At any sale or other disposition of the
Collateral pursuant to this Section, Bank disclaims all warranties which would
otherwise be given under the Uniform Commercial Code, including without
limitation a disclaimer of any warranty relating to title, possession, quiet
enjoyment or the like, and Bank may communicate these disclaimers to a purchaser
at such disposition. This disclaimer of warranties will not render the sale
commercially unreasonable;
	 
	 	h.	 	Bank shall give notice of the disposition of the Collateral as
follows:

(1) Bank shall give Borrower and each holder of a security interest in the
Collateral who has filed with Bank a written request for notice, a notice in
writing of the time and place of public sale, or, if the sale is a private
sale or some disposition other than a public sale is to be made of the
Collateral, the time on or after which the private sale or other disposition
is to be made;

(2) The notice shall be personally delivered or mailed, postage prepaid, to
Borrower’s address appearing in this Agreement, at least ten (10) calendar
days before the date fixed for the sale, or at least ten (10) calendar days
before the date on or after which the private sale or other disposition is to
be made, unless the Collateral is perishable or threatens to decline speedily
in value. Notice to persons other than Borrower claiming an interest in the
Collateral shall be sent to such addresses as have been furnished to Bank or
as otherwise determined in accordance with Section 9611 of the Uniform
Commercial Code; and

(3) If the sale is to be a public sale, Bank shall also give notice of the
time and place by publishing a notice one time at least ten (10) calendar days
before the date of the sale in a newspaper of general circulation in the
county in which the sale is to be held; and

(4) Bank may credit bid and purchase at any public sale.

	 	i.	 	Borrower shall pay all Bank Expenses incurred in connection with
Bank’s enforcement and exercise of any of its rights and remedies as herein
provided, whether or not suit is commenced by Bank;
	 
	 	j.	 	Any deficiency which exists after disposition of the Collateral
as provided above will be paid immediately by Borrower. Any excess will be
returned, without interest and subject to the rights of third parties, to
Borrower by Bank, or, in Bank’s discretion, to any party who Bank believes, in
good faith, is entitled to the excess;
	 
	 	k.	 	Without constituting a retention of Collateral in satisfaction of
an obligation within the meaning of 9620 of the Uniform Commercial Code, apply
any and all amounts maintained by Borrower as deposit accounts (as that term is
defined under 9102 of the Uniform Commercial Code) or other accounts that
Borrower maintains with Bank against the Indebtedness;
	 
	 	l.	 	The proceeds of any sale or other disposition of Collateral
authorized by this Agreement shall be applied by Bank first upon all expenses
authorized by the Uniform Commercial Code and all reasonable attorney fees and
legal expenses incurred by Bank, whether in-house or outside counsel is used,
the balance of the proceeds of the sale or other disposition shall be applied in
the payment of the Indebtedness, first to interest, then to principal, then to
remaining Indebtedness and the surplus, if any, shall be paid over to Borrower
or to such other person(s) as may be entitled to it under applicable law.
Borrower shall remain liable for any deficiency, which it shall pay to Bank
immediately upon demand. Borrower agrees that Bank shall be under no obligation
to accept any noncash proceeds in connection with any sale or disposition of
Collateral unless failure to do so would be commercially unreasonable. If Bank
agrees in its sole discretion to accept noncash proceeds (unless the failure to
do so would be commercially unreasonable), Bank may ascribe any commercially
reasonable value to such proceeds. Without limiting the foregoing, Bank may
apply any discount factor in determining the present value of proceeds to be
received in the future or may elect to apply proceeds to be received in the
future only as and when such proceeds are actually received in cash by Bank; and

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LOAN & SECURITY AGREEMENT

	 	m.	 	The following shall be the basis for any finder of fact’s
determination of the value of any Collateral which is the subject matter of a
disposition giving rise to a calculation of any surplus or deficiency under
Section 9615(f) of the Uniform Commercial Code: (i) The Collateral which is the
subject matter of the disposition shall be valued in an “as is” condition as of
the date of the disposition, without any assumption or expectation that such
Collateral will be repaired or improved in any manner; (ii) the valuation shall
be based upon an assumption that the transferee of such Collateral desires a
resale of the Collateral for cash promptly (but no later than 30 days) following
the disposition; (iii) all reasonable closing costs customarily borne by the
seller in commercial sales transactions relating to property similar to such
Collateral shall be deducted including, without limitation, brokerage
commissions, tax prorations, attorney’s fees, whether in-house or outside
counsel is used, and marketing costs; (iv) the value of the Collateral which is
the subject matter of the disposition shall be further discounted to account for
any estimated holding costs associated with maintaining such Collateral pending
sale (to the extent not accounted for in (iii) above), and other maintenance,
operational and ownership expenses; and (v) any expert opinion testimony given
or considered in connection with a determination of the value of such Collateral
must be given by persons having at least 5 years experience in appraising
property similar to the Collateral and who have conducted and prepared a
complete written appraisal of such Collateral taking into consideration the
factors set forth above. The “value” of any such Collateral shall be a factor
in determining the amount of proceeds which would have been realized in a
disposition to a transferee other than a secured party, a person related to a
secured party or a secondary obligor under Section 9615(f) of the Uniform
Commercial Code.

Notwithstanding anything contained in Section 8 or otherwise in this Agreement to the contrary,
Bank shall refrain from exercising its rights and remedies following the occurrence and during the
continuance of any Event of Default (other than an Event of Default set forth in Section 7.1(f) of
this Agreement) unless Bank shall have delivered to Borrower not less than fifteen (15) days prior
written notice of its election to exercise any such rights and remedies.

     8.2 In addition to any and all other rights and remedies available to Bank under or pursuant
to this Agreement or any other documents, instrument or agreement contemplated hereby, Borrower
acknowledges and agrees that (i) at any time following the occurrence and during the continuance of
any Event of Default, and/or (ii) termination of Bank’s commitment or obligation to make loans or
advances or otherwise extent credit to or in favor of Borrower hereunder as a result of any Event
of Default, in the event that and to the extent that there are any Letter of Credit Obligations
outstanding at such time, upon demand of Bank, Borrower shall deliver to Bank, or cause to be
delivered to Bank, cash collateral in an amount not less than such Letter of Credit Obligations,
which cash collateral shall be held and retained by Bank as cash collateral for the repayment of
such Letter of Credit Obligations, together with any and all other Indebtedness of Borrower to Bank
remaining unpaid, and Borrower pledges to Bank and grants to Bank a continuing first priority
security interest in such cash collateral so delivered to Bank. Alternatively, Borrower shall
cause to be delivered to Bank an irrevocable standby letter of credit issued in favor of Bank by a
bank acceptable to Bank, in its sole discretion, in an amount not less than such Letter of Credit
Obligations, and upon terms acceptable to Bank, in its sole discretion.

     8.3 Bank’s rights and remedies under this Agreement and all other agreements shall be
cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided by
law or in equity. No exercise by Bank of one right or remedy shall be deemed an election, and no
waiver by Bank of any default on Borrower’s part shall be deemed a continuing waiver. No delay by
Bank shall constitute a waiver, election or acquiescence by Bank.

	9.	 	TAXES AND EXPENSES REGARDING BORROWER’S PROPERTY. If Borrower fails to pay promptly
when due to another person or entity, monies which Borrower is required to pay by reason of
any provision in this Agreement, Bank may, but need not, pay the same and charge Borrower’s
loan account therefor, and Borrower shall promptly reimburse Bank. All such sums shall become
additional indebtedness owing to Bank, shall bear interest at the rate hereinabove provided,
and shall be secured by all Collateral. Any payments made by Bank shall not constitute (I) an
agreement by it to make similar payments in the future, or (ii) a waiver by Bank of any
default under this Agreement. Bank need not inquire as to, or contest the validity of, any
such expense, tax, security interest, encumbrance or lien and the receipt of the usual
official notice of the payment thereof shall be conclusive evidence that the same was validly
due and owing. Such payments shall constitute Bank Expenses and additional advances to
Borrower.

	10.	 	WAIVERS.

     10.1 Borrower agrees that checks and other instruments received by Bank in payment or on
account of Borrower’s Indebtedness constitute only conditional payment until such items are
actually paid to Bank and Borrower waives the right to direct the application of any and all
payments at any time or times hereafter received by Bank on account of Borrower’s Indebtedness and
Borrower agrees that Bank shall have the continuing exclusive right to apply and reapply such
payments in any manner as Bank may deem advisable, notwithstanding any entry by Bank upon its
books.

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 LOAN & SECURITY AGREEMENT

     10.2 Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice
of payment and nonpayment, notice of any default, nonpayment at maturity, release, compromise,
settlement, extension or renewal of any or all commercial paper, accounts, documents, instruments,
chattel paper, and guarantees at any time held by Bank on which Borrower may in any way be liable.

     10.3 Except as otherwise provided in the Uniform Commercial Code, Bank shall not in any way or
manner be liable or responsible for (a) the safekeeping of the Inventory; (b) any loss or damage
thereto occurring or arising in any manner or fashion from any cause; (c) any diminution in the
value thereof; or (d) any act or default of any carrier, warehouseman, bailee, forwarding agency or
other person whomsoever. All risk of loss, damage or destruction of Inventory shall be borne by
Borrower.

     10.4 Borrower waives the right and the right to assert a confidential relationship, if any, it
may have with any accountant, accounting firm and/or service bureau or consultant in connection
with any information requested by Bank pursuant to or in accordance with this Agreement, and agrees
that a Bank may contact directly any such accountants, accounting firm and/or service bureau or
consultant in order to obtain such information.

     10.5 THE UNDERSIGNED AND THE BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A
CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE
OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR
MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING THE
PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE INDEBTEDNESS.

     10.6 In the event that Bank elects to waive any rights or remedies hereunder, or compliance
with any of the terms hereof, or delays or fails to pursue or enforce any term, such waiver, delay
or failure to pursue or enforce shall only be effective with respect to that single act and shall
not be construed to affect any subsequent transactions or Bank’s right to later pursue such rights
and remedies.

	11.	 	ONE CONTINUING LOAN TRANSACTION. All loans and advances heretofore, now or at any
time or times hereafter made by Bank to Borrower under this Agreement or any other agreement
between Bank and Borrower, shall constitute one loan secured by Bank’s security interests in
the Collateral and by all other security interests, liens, encumbrances heretofore, now or
from time to time hereafter granted by Borrower to Bank.

	12.	 	NOTICES. Unless otherwise provided in this Agreement, all notices or demands by
either party on the other relating to this Agreement shall be in writing and sent by regular
United States mail, postage prepaid, properly addressed to Borrower or to Bank at the
addresses stated in this Agreement, or to such other addresses as Borrower or Bank may from
time to time specify to the other in writing. Requests to Borrower by Bank hereunder may be
made orally.

	13.	 	AUTHORIZATION TO DISBURSE. Bank is hereby authorized to make loans and advances
hereunder upon telephonic or other instructions received from anyone purporting to be a
manager of Borrower, or at the discretion of Bank if said loans and advances are necessary to
meet any Indebtedness of Borrower to Bank. Bank shall have no duty to make inquiry or verify
the authority of any such party, and Borrower shall hold Bank harmless from any damage, claims
or liability by reason of Bank’s honor of, or failure to honor, any such instructions.

	14.	 	PAYMENTS. Borrower hereby authorizes Bank to deduct the full amount of any interest,
fees, costs, or Bank Expenses due under this Agreement and not paid or collected when due in
accordance with the terms and conditions hereof from any account maintained by Borrower with
Bank. Should there be insufficient funds in any such account to pay all such sums when due,
the full amount of such deficiency shall be immediately due and payable by Borrower;
provided, however, that Bank shall not be obligated to advance funds to cover
any such payment.

	15.	 	DESTRUCTION OF BORROWER’S DOCUMENTS. Any documents, schedules, invoices or other
papers delivered to Bank, may be destroyed or otherwise disposed of by Bank six (6) months
after they are delivered to or received by Bank, unless Borrower requests, in writing, the
return of the said documents, schedules, invoices or other papers and makes arrangements, at
Borrower’s expense, for their return.

	16.	 	CHOICE OF LAW. The validity of this Agreement, its construction, interpretation and
enforcement, and the rights of the parties hereunder and concerning the Collateral, shall be
determined according to the laws of the State of Arizona. The parties agree that all actions
or proceedings arising in connection with this Agreement shall be tried and litigated only in
the state and federal courts in the State of Arizona.

	17.	 	GENERAL PROVISIONS.

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LOAN & SECURITY AGREEMENT

     17.1 This Agreement shall be binding and deemed effective when executed by Borrower and
accepted and executed by Bank at its headquarters office.

     17.2 This Agreement shall bind and inure to the benefit of the respective successors and
assigns of each of the parties; provided, however, that Borrower may not assign
this Agreement or any rights hereunder without Bank’s prior written consent and any prohibited
assignment shall be absolutely void. No consent to an assignment by Bank shall release Borrower
from their obligations to Bank. Bank may assign this Agreement and its rights and duties
hereunder. 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 hereunder. In connection
therewith, Bank may disclose all documents and information which Bank now or hereafter may have
relating to Borrower or Borrower’s business.

     17.3 Paragraph headings and paragraph numbers have been set forth herein for convenience only;
unless the contrary is compelled by the context, everything contained in each paragraph applies
equally to this entire Agreement. Unless the context of this Agreement clearly requires otherwise,
references to the plural include the singular, references to the singular include the plural, and
the term “including” is not limiting. The words “hereof,” “herein,” “hereby,” “hereunder,” and
similar terms in this Agreement refer to this Agreement as a whole and not to any particular
provision of this Agreement.

     17.4 Neither this Agreement nor any uncertainty or ambiguity herein shall be construed or
resolved against Bank or Borrower, whether under any rule of construction or otherwise; on the
contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted
according to the ordinary meaning of the words used so as to fairly accomplish the purposes and
intentions of all parties hereto.

     17.5 Each provision of this Agreement shall be severable from every other provision of this
Agreement for the purpose of determining the legal enforceability of any specific provision.

     17.6 This Agreement cannot be changed or terminated orally. This Agreement contains the entire
agreement of the parties hereto and supersedes all prior agreements, understandings,
representations, warranties and negotiations, if any, related to the subject matter hereof, and
none of the parties shall be bound by anything not expressed in writing.

     17.7 The parties intend and agree that their respective rights, duties, powers, liabilities,
obligations and discretions shall be performed, carried out, discharged and exercised reasonably
and in good faith.

     17.8 Each undersigned Borrower hereby agrees that it is jointly and severally, directly, and
primarily liable to Bank for payment and performance in full of all duties, obligations and
liabilities under this Agreement and each other document, instrument and agreement entered into by
Borrower with or in favor of Bank in connection herewith, and that such liability is independent of
the duties, obligations and liabilities of any other Borrower of the Indebtedness, as applicable.
Each reference herein to Borrower shall mean each and every Borrower party hereto, individually and
collectively, jointly and severally.

18. SURETYSHIP WAIVERS AND CONSENTS. 

     18.1 Each Borrower agrees that it is jointly and severally, directly, and primarily liable to
Bank for payment in full of the Obligations and that such liability is independent of the duties,
obligations and liabilities of the other Borrower. The Loan Documents are a primary and original
obligation of each Borrower, are not the creation of a surety relationship, and are an absolute,
unconditional, and continuing promise of payment and performance which shall remain in full force
and effect without respect to future changes in conditions, including any change of law or any
invalidity or irregularity with respect to the Loan Documents. Each Borrower acknowledges that the
obligations of such Borrower undertaken herein might be construed to consist, at least in part, of
the guaranty of obligations of persons or entities other than such Borrower (including any other
Borrower party hereto) and, in full recognition of that fact, each Borrower consents and agrees
that Bank may, at any time and from time to time, without notice or demand, whether before or
after any actual or purported termination, repudiation, or revocation of this Agreement by any one
or more Borrowers, and without affecting the enforceability or continuing effectiveness hereof as
to each Borrower: (a) supplement, restate, modify, amend, increase, decrease, extend, renew,
accelerate, or otherwise change the time for payment or the terms of the Obligations or any part
thereof, including any increase or decrease of the rate(s) of interest thereon; (b) supplement
restate, modify, amend, increase, decrease or waive, or enter into or give any agreement, approval,
or consent with respect to, the Obligations or any part thereof, or any of the Loan Documents or
any additional security or guaranties, or any condition covenant, default, remedy, right,
representation or term thereof or thereunder; (c) accept new or additional instruments, documents
or agreements in exchange for or relative to any of the Loan Documents or the Obligations or any
part thereof; (d) accept partial payments on the Obligations; (e) receive and hold additional
security or guaranties for the Obligations or any part thereof; (f) release, reconvey, terminate,
waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer, or enforce any
security or guaranties, and apply any security and direct the order or manner of sale thereof as
Bank in its sole and absolute discretion may determine; (g) release any Person from any personal
liability with respect to the Obligations or any part thereof; (h) settle, release on terms
satisfactory to Bank

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LOAN & SECURITY AGREEMENT

or by operation of applicable laws, or otherwise liquidate or enforce any Obligations and any
security therefor or guaranty thereof in any manner, consent to the transfer of any security and
bid and purchase at any sale; or (i) consent to the merger, change, or any other restructuring or
termination of the corporate or partnership existence of any Borrower or any other Person, and
correspondingly restructure the Obligations, and any such merger, change, restructuring, or
termination shall not affect the liability of any Borrower or the continuing effectiveness hereof,
or the enforceability hereof with respect to all or any part of the Obligations.

     18.2 Upon the occurrence and during the continuance of any Event of Default, Bank may enforce
this Agreement independently as to each Borrower and independently of any other remedy or security
Bank at any time may have or hold in connection with the Obligations, and it shall not be
necessary for Bank to marshal assets in favor of any Borrower or any other Person or to proceed
upon or against or exhaust any security or remedy before proceeding to enforce this Agreement.
Each Borrower expressly waives any right to require Bank to marshal assets in favor of any Borrower
or any other Person or to proceed against any other Borrower or any Collateral provided by any
Person, and agrees that Bank may proceed against Borrowers or any Collateral in such order as it
shall determine in its sole and absolute discretion.

     18.3 Bank may file a separate action or actions against any Borrower, whether action is
brought or prosecuted with respect to any security or against any other person, or whether any
other person is joined in any such action or actions. Each Borrower agrees that Bank and any
Borrower and any affiliate of any Borrower may deal with each other in connection with the
Obligations or otherwise, or alter any contracts or agreements now or hereafter existing between
any of them, in any manner whatsoever, all without in any way altering or affecting the continuing
efficacy of this Agreement.

     18.4 Bank’s rights hereunder shall be reinstated and revived, and the enforceability of this
Agreement shall continue, with respect to any amount at any time paid on account of the Obligations
which thereafter shall be required to be restored or returned by Bank, all as though such amount
had not been paid. The rights of Bank created or granted herein and the enforceability of this
Agreement at all times shall remain effective to cover the full amount of all the Obligations even
though the Obligations, including any part thereof or any other security or guaranty therefor, may
be or hereafter may become invalid or otherwise unenforceable as against any Borrower and whether
or not any other Borrower shall have any personal liability with respect thereto.

     18.5 To the maximum extent permitted by applicable law and to the extent that a Borrower is
deemed a guarantor, each Borrower expressly waives any and all defenses now or hereafter arising or
asserted by reason of (a) any disability or other defense of any other Borrower with respect to the
Obligations (other than by reason of the full payment and performance of the Obligations), (b) the
unenforceability or invalidity of any security or guaranty for the Obligations or lack of
perfection or continuing perfection or failure of priority of any security for the Obligations, (c)
the cessation for any cause whatsoever of the liability of any other Borrower (other than by reason
of the full payment and performance of all Obligations), (d) any failure of the to marshal assets
in favor Bank of any Borrower or any other person, (e) any failure of Bank to give notice of sale
or other disposition of collateral to any Borrower or any other Person or any defect in any notice
that may be given in connection with any sale or disposition of collateral, (f) any act or omission
of Bank or others that directly or indirectly results in or aids the discharge or release of any
Borrower or the Obligations or any security or guaranty therefor by operation of law or otherwise,
(g) any law which provides that the obligation of a surety or guarantor must neither be larger in
amount nor in other respects more burdensome than that of the principal or which reduces a surety’s
or guarantor’s obligation in proportion to the principal obligation, (h) any failure of Bank to
file or enforce a claim in any bankruptcy or other proceeding with respect to any Person, (i) the
election by Bank of the application or non-application of Section 1111(b)(2) of the Bankruptcy
Code, (j) any extension of credit or the grant of any lien under Section 364 of the Bankruptcy
Code, (1) any use of cash collateral under Section 363 of the Bankruptcy Code, (k) any agreement or
stipulation with respect to the provision of adequate protection in any bankruptcy proceeding of
any Person, (l) the avoidance of any lien in favor of Bank for any reason, or (m) any action taken
by Bank that is authorized by this section or any other provision of any Loan Document. Until such
time as all of the Obligations have been fully, finally, and indefeasibly paid in full in cash: (i)
each Borrower hereby waives and postpones any right of subrogation it has or may have as against
any other Borrower respect to the Obligations; and (ii) in addition, each Borrower also hereby
waives and postpones any right to proceed or to seek recourse against or with respect to any
property or asset of any other Borrower. Each Borrower expressly waives all setoffs and
counterclaims and all presentments, demands for payment or performance, notices of nonpayment or
nonperformance, protests, notices of protest, notices of dishonor and all other notices or demands
of any kind or nature whatsoever with respect to the Obligations, and all notices of acceptance of
this Agreement or of the existence, creation or incurring of new or additional Obligations.

     18.6 To the fullest extent permitted by applicable law, to the extent that a Borrower is
deemed a guarantor, each Borrower expressly waives any defenses to the enforcement of this
Agreement or any rights of Bank created or granted hereby or to the recovery by Bank against any
Borrower or any other Person liable therefor of any deficiency after a judicial or nonjudicial
foreclosure or sale, even though such a foreclosure or sale may impair the subrogation rights of
Borrowers and may preclude Borrowers from obtaining reimbursement or contribution from other
Borrowers. To the fullest extent permitted by applicable law, each Borrower expressly waives any
suretyship defenses or benefits that it otherwise might or would have under applicable law.
WITHOUT LIMITING THE GENERALITY OF ANY OTHER WAIVER OR OTHER PROVISION SET FORTH IN THIS SECTION,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, EACH BORROWER WAIVES

20

 

LOAN & SECURITY AGREEMENT

ALL RIGHTS AND DEFENSES ARISING OUT OF AN ELECTION OF REMEDIES BY BANK, EVEN THOUGH THAT
ELECTION OF REMEDIES, SUCH AS A NONJUDICIAL FORECLOSURE WITH RESPECT TO SECURITY FOR THE
OBLIGATIONS, HAS DESTROYED SUCH BORROWER’S RIGHTS OF SUBROGATION AND REIMBURSEMENT AGAINST THE
OTHER BORROWERS BY THE OPERATION LAW, INCLUDING BUT NOT LIMITED TO SECTION 580d OF THE CODE OF
CIVIL PROCEDURE, OR OTHERWISE.

     18.7 Borrower and each of them warrant and agree that each of the waivers and consents set
forth herein are made after consultation with legal counsel and with full knowledge of their
significance and consequences, with the understanding that events giving rise to any defense or
right waived may diminish, destroy or otherwise adversely affect rights which Borrower otherwise
may have against any other Borrower, Bank or others, or against Collateral. If any of the waivers
or consents herein are determined to be contrary to any applicable law or public policy, such
waivers and consents shall be effective to the maximum extent permitted by law.

IN WITNESS WHEREOF, the parties hereto have caused this Loan and Security Agreement to be executed
as of the date first hereinabove written.

	 	 	 	 	 	 	 	 	 
	COMERICA BANK	 	 	 	PROLINK HOLDINGS CORP., a Delaware corporation
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	/s/ Michael Browne
	 

	 	 
	 	 	 	 	 	 
	Name:	 	 	 	 	 	Name: Michael Browne
	 

	 	 
	 	 	 	 	 	 
	Title:	 	 	 	 	 	Title: Chief Financial Officer
	 

	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PROLINK SOLUTIONS, LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:	 	/s/ Michael Browne
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name: Michael Browne
	 	 	 	 	 	 	Title: Chief Financial Officer

21exv10w2

 

Exhibit 10.2

REVOLVING PROMISSORY NOTE

(Floating Rate with LIBOR Option)

	 	 	 	 	 
	BORROWER’S NAME AND ADDRESS	 	OFFICER	 	MATURITY DATE
	ProLink Holdings Corp.

	 	K. Ehrhardt
	 	May 1, 2008
	ProLink Solutions, LLC
	 	 	 	 
	410 S. Benson Lane
	 	 	 	 
	Chandler, Arizona 85224
	 	 	 	 

	 	 	 	 	 
	$3,000,000.00

	 	Phoenix, Arizona
	 	October 23, 2006

On May 1, 2008 (the “Maturity Date”), for value received, PROLINK HOLDINGS CORP., a Delaware
corporation and PROLINK SOLUTIONS, LLC, a Delaware limited liability company (individually and/or
collectively as the context requires, “Borrower”), jointly and severally, promise to pay to the
order of COMERICA BANK or its successor-in-interest (“Lender”), at its office at 75 East Trimble
Road, San Jose, California 95131, or at such other place as Lender may from time to time designate
in writing, all outstanding amounts hereunder as part of the Revolving Loan (as defined in that
certain Loan and Security Agreement dated of even date herewith (the “Loan Agreement”)) commitment
in the principal sum of Three Million and No/100 Dollars ($3,000,000.00), or so much thereof as may
be advanced and re-advanced from time to time and not repaid as provided below (but not to exceed a
maximum principal amount at any given time of Three Million and No/100 Dollars ($3,000,000.00),
from time to time, together with interest from the date of disbursement computed on the principal
balances hereof from time to time outstanding, at an adjusted daily rate equal to the Base Rate of
interest (as herein defined) being charged by Lender (“Note”). For the purpose of this
Note, the Base Rate is that rate so announced by Lender as its “base rate” from time to time and
which serves as the basis upon which effective rates of interest are calculated for those loans
making reference thereto. The interest rate payable hereunder shall fluctuate with any change in
the Base Rate, and such fluctuation in the interest rate shall be effective on the effective date
of each and every change in the Base Rate as, from time to time, announced by Lender at its
corporate headquarters in Detroit, Michigan. The interest rate charged herein is further subject
to the rate reduction and LIBOR Option provisions of Section 2.3 of the Loan Agreement.
Capitalized terms not otherwise defined herein shall have the same meaning as set forth in the Loan
Agreement.

See LIBOR Addendum to Promissory Note, attached hereto and incorporated herein by reference, for
terms and conditions applicable to the LIBOR Option (as defined therein).

Interest shall be payable on the first day of each calendar month following the date hereof.
Interest shall be computed daily based upon a three hundred sixty (360) day year for the actual
number of days elapsed. Should interest not be paid when due, it shall become part of the
principal and thereafter bear interest as herein provided. Notwithstanding anything contained
herein to the contrary, pursuant to the terms and conditions of the Loan Agreement, Lender may
disburse from time to time sufficient amounts to pay interest due on the Note.

 

 

The principal amount payable under this Note shall be the sum of all advances made by Lender to or
at the request of Borrower, less principal payments actually received in cash by Lender. The books
and records of Lender shall be the best evidence of the principal amount and the unpaid interest
amount owing at any time under this Note and shall be conclusive absent manifest error. No interest
shall accrue under this Note until the date of the first advance made by Lender, thereafter
interest on all advances shall accrue and be computed on the principal balance outstanding from
time to time under this Note until the same is paid in full.

Should default be made in the payment of principal or interest when due after the expiration of any
applicable notice and opportunity to cure periods or in the performance or observance when due of
any term, covenant or condition of any deed of trust, security agreement or other agreement
(including amendments and extensions thereof) securing or pertaining to this Note, after expiration
of any applicable notice and opportunity to cure periods, then, at the option of Lender hereof, the
entire balance of principal and accrued interest then remaining unpaid shall become immediately due
and payable and thereafter bear interest, until paid in full, at the increased rate of three
percent (3%) per annum over and above the interest rate(s) contracted for herein as it may vary
from time to time. Borrower acknowledges and agrees that during the time that any payment of
principal, interest or other amounts due under this Note is delinquent, Lender will incur
additional costs and expenses attributable to its loss of use of the money due and to the adverse
impact on Lender’s ability to avail itself of other opportunities. Borrower acknowledges and
agrees that it is extremely difficult and impractical to ascertain the extent of such costs and
expenses and that proof of actual damages would be costly or inconvenient. Borrower therefore
agrees that interest at the increased rate of three percent (3%) per annum over and above the
interest rate(s) contracted for in this Note represents a reasonable sum considering all the
circumstances existing on the date of this Note and represents a fair and reasonable estimate of
such costs and expenses. No delay or omission on the part of Lender in exercising any right
hereunder, or under any such deed of trust, security agreement or other agreement shall operate as
a waiver of such right or of any other right under this Note or under any such deed of trust,
security agreement or other agreement.

If any payment of principal or interest under this Note shall not be made within fifteen (15)
calendar days of the date due, a late charge of five percent (5%) of the overdue amount may be
charged by Lender for the purpose of defraying the expenses incident to handling such delinquent
payments. Borrower acknowledges and agrees that it is extremely difficult and impractical to
ascertain the extent of such expenses and that proof of actual damages would be costly or
inconvenient. Borrower therefore agrees that such late charge represents a reasonable sum
considering all of the circumstances existing on the date of this Note and represents a fair and
reasonable estimate of the costs that will be sustained by Lender due to the failure of Borrower to
make timely payments. Such late charge shall be paid without prejudice to the right of Lender to
collect any other amounts provided to be paid or to declare a default under this Note or from
exercising any of the other rights and remedies of Lender, including, without limitation, the right
to declare the entire balance of principal and accrued interest then remaining unpaid immediately
due and payable, subject to notice and cure periods as provided in the Loan Agreement.

Borrower agrees to pay the contracted rate of interest, which includes interest at the rate set
forth herein and all costs and fees associated with obtaining this credit accommodation to the
extent

-2-

 

any such costs and fees are deemed interest under applicable law. Borrower and Lender agree that
none of the terms and provisions contained herein shall be construed to create a contract for the
use, forbearance or detention of money requiring payment of interest at a rate in excess of the
maximum interest rate permitted to be charged by the laws of the State of Arizona. In such event,
if any holder of this Note shall collect monies which are deemed to constitute interest which would
otherwise increase the effective interest rate on this Note to a rate in excess of the maximum rate
permitted to be charged by the laws of the State of Arizona, all such sums deemed to constitute
interest in excess of such maximum rate shall, at the option of the holder, be credited to the
payment of other amounts payable hereunder or returned to Borrower.

If this Note is not paid when due, whether at its specified or accelerated maturity date, Borrower
promises to pay all costs of collection and enforcement of this Note, including, but not limited
to, reasonable attorneys’ fees and costs, incurred by Lender on account of such collection or
enforcement, whether or not suit is filed hereon.

Principal and interest shall be payable in lawful money of the United States without set off,
demand or counterclaim. Borrower waives the defense of the statute of limitations in any action on
this Note. Presentment, notice of dishonor, and protest are waived by all makers, sureties,
guarantors and endorsers of this Note. Such parties expressly consent to any extension of the time
of payment hereof or any installment hereof, to any renewal, and to the release of any or all of
the security given for the payment of this Note or the release of any party liable for this
obligation.

Borrower agrees that Lender may provide any financial or other information, data or material in
Lender’s possession relating to Borrower, the Loan, this Note, the property or the improvements, to
Lender’s parent, affiliate, subsidiary, participants or service providers, without further notice
to Borrower.

This Note is secured by the Collateral (as such term is defined in the Loan Agreement). This Note
shall be governed and construed in accordance with the laws of the State of Arizona.

Borrower may prepay this Note in whole or in part on any interest payment date without penalty upon
thirty (30) days prior written notice to holder subject to the prepayment provision affecting LIBOR
Options pursuant to the LIBOR Addendum to Note. No partial prepayment shall affect the obligation
of Borrower to pay the next and subsequent regular installments payable hereunder until the entire
balance of principal and interest shall have been paid in full.

[SIGNATURE PAGE FOLLOWS]

-3-

 

	 	 	 	 	 	 	 
	 	 	BORROWER:	 	 
	 
	 	 	 	 	 	 
	 	 	PROLINK HOLDINGS CORP., a Delaware

corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Browne	 	 
	 

	 	Name:	 	 

Michael Browne
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PROLINK SOLUTIONS, LLC, a Delaware limited

liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Michael Browne	 	 
	 

	 	Name:
	 	 

Michael Browne
	 	 
	 

	 	Title:
	 	Chief Financial Officer	 	 

NOTICE: THIS NOTE CONTAINS PROVISIONS FOR A VARIABLE INTEREST RATE WHICH MAY RESULT IN INCREASES
IN THE INTEREST RATE.

-4-

 

LIBOR

ADDENDUM TO NOTE

This Addendum to Note (this “Addendum”) is entered into as of                     , by and between
COMERICA BANK or its successor-in-interest (“Bank”), and PROLINK HOLDINGS CORP., a Delaware
corporation and PROLINK SOLUTIONS, LLC, a Delaware limited liability company (collectively,
“Borrower”). This Addendum supplements the terms of the Revolving Promissory Note (Floating Rate
With LIBOR Option) of even date herewith and governs Borrower’s ability to obtain Advances at the
LIBOR Option interest rate referenced below upon Borrower’s compliance with the conditions
precedent in Section 2.3 of the Loan Agreement.

1. Definitions.

a. Advance. As used herein, “Advance” means a borrowing requested by Borrower and
made by Bank under the Note, including a LIBOR Option Advance and/or a Base Rate Option Advance.

b. Business Day. As used herein, “Business Day” means any day except a Saturday,
Sunday or any other day designated as a holiday under Federal or California statute or regulation.

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

	 	 	 	 	 
	LIBOR =

	 	Base LIBOR	 	 
	 

	 	 

100% — LIBOR Reserve Percentage
	 	 

i. “Base LIBOR” means the rate per annum determined by Bank at which deposits for the
relevant LIBOR Period would be offered to Bank in the approximate amount of the relevant LIBOR
Option Advance in the inter-bank LIBOR market selected by Bank, upon request of Bank at 10:00 a.m.
California time, on the day that is the first day of such LIBOR Period.

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

d. LIBOR Business Day. As used herein “LIBOR Business Day” means a Business day on
which dealings in Dollar deposits may be carried out in the interbank LIBOR market.

e. LIBOR Period. As used herein, “LIBOR Period” means, with respect to a LIBOR
Option Advance:

 

 

i. initially, the period commencing on, as the case may be, the date the Advance is made or the
date on which the Advance is converted to a LIBOR Option Advance, and continuing for, in every
case, a thirty (30), sixty (60), ninety (90) or one hundred twenty (120) day period thereafter (but
not exceeding the Maturity Date), as Borrower may elect, so long as the LIBOR Option is quoted for
such period in the applicable interbank LIBOR market, as such period is selected by Borrower in the
notice of Advance as provided in the Note or in the notice of conversion as provided in this
Addendum; and

ii. thereafter, each period commencing on the last day of the next preceding LIBOR Period
applicable to such LIBOR Option Advance and continuing for, in every case, a thirty (30), sixty
(60), ninety (90) or one hundred twenty (120) day period thereafter (but not exceeding the Maturity
Date) as Borrower may elect, so long as the LIBOR Option is quoted for such period in the
applicable interbank LIBOR market, as such period is selected by Borrower in the notice of
continuation as provided in this Addendum.

f. Note. As used herein, “Note” means the Revolving Promissory Note (Floating Rate
With LIBOR Option) of even date herewith.

g. Regulation D. As used herein, “Regulation D” means Regulation D of the Board of
Governors of the Federal Reserve System as amended or supplemented from time to time.

h. Regulatory Development. As used herein, “Regulatory Development” means any or
all of the following: (i) any change in any law, regulation or interpretation thereof by any
public authority (whether or not having the force of law); (ii) the application of any existing
law, regulation or the interpretation thereof by any public authority (whether or not having the
force of law); and (iii) compliance by Bank with any request or directive (whether or not having
the force of law) of any public authority.

2. Interest Rate Options. Borrower shall have the following options regarding the interest
rate to be paid by Borrower on Advances under the Note:

a. A rate equal to two percent (2.0%) above Bank’s LIBOR, (the “LIBOR Option”), which LIBOR Option
shall be in effect during the relevant LIBOR Period; or

b. A rate equal to the “Base Rate” as referenced in the Note and quoted from time to time by Bank
as such rate may change from time to time, subject to the rate reduction provisions of Section
2.3 of the Loan Agreement (the “Base Rate Option”).

3. LIBOR Option Advance. The minimum LIBOR Option Advance will not be less than One
Hundred Thousand and No/100 Dollars ($100,000.00) for any LIBOR Option Advance. At no time shall
there be more than three (3) LIBOR Option Advance contracts in effect.

4. Payment of Interest in LIBOR Option Advances. Interest on each LIBOR Option

-2-

 

Advance shall be payable monthly in accordance with the terms of the Note. Interest on such LIBOR
Option Advance shall be computed on the basis of a 360-day year and shall be assessed for the
actual number of days elapsed from the first day of the LIBOR Period applicable thereto but not
including the last day thereof.

5. Bank’s Records Re: LIBOR Option Advances. With respect to each LIBOR Option Advance,
Bank is hereby authorized to note the date, principal amount, interest rate and LIBOR Period
applicable thereto and any payments made thereon on Bank’s books and records (either manually or by
electronic entry) and/or on any schedule attached to the Note, which notations shall be prima facie
evidence of the accuracy of the information noted.

6. Selection/Conversion of Interest Rate Options. At the time any Advance is requested
under the Note and/or Borrower wishes to select the LIBOR Option for all or a portion of the
outstanding principal balance of the Note, and at the end of each LIBOR Period, Borrower shall give
Bank notice specifying (a) the interest rate option selected by Borrower; (b) the principal amount
subject thereto; and (c) if the LIBOR Option is selected, the length of the applicable LIBOR
Period. Any such notice may be given by telephone so long as, with respect to each LIBOR Option
selected by Borrower, (i) Bank receives written confirmation from Borrower not later than three (3)
LIBOR Business Days after such telephone notice is given; and (ii) such notice is given to Bank
prior to 10:00 a.m., California time, on the first day of the LIBOR Period. For each LIBOR Option
requested hereunder, Bank will quote the applicable fixed LIBOR Rate to Borrower at approximately
10:00 a.m., California time, on the first day of the LIBOR Period. If Borrower does not
immediately accept the rate quoted by Bank, any subsequent acceptance by Borrower shall be subject
to a redetermination of the rate by Bank; provided, however, that if Borrower fails to accept any
such quotation given, then the quoted rate shall expire and Bank shall have no obligation to permit
a LIBOR Option to be selected on such day. If no specific designation of interest is made at the
time any Advance is requested under the Note or at the end of any LIBOR Period, Borrower shall be
deemed to have selected the Base Rate Option for such Advance or the principal amount to which such
LIBOR Period applied. At any time the LIBOR Option is in effect, Borrower may, only at the end of
the applicable LIBOR Period, convert to the Base Rate Option. At any time the Base Rate Option is
in effect, Borrower may convert to the LIBOR Option, and shall designate a LIBOR Period.

7. Default Interest Rate. From and after the maturity date of the Note, or such earlier
date as all principal owing hereunder becomes due and payable by acceleration or otherwise, the
outstanding principal balance of the Note shall bear interest until paid in full at an increased
rate per annum (computed on the basis of a 360-day year, actual days elapsed) equal to three
percent (3.00%) above the rate of interest from time to time applicable to the Note.

8. Prepayment Amount. In the event that the LIBOR Option is the applicable interest rate
for all or any part of the outstanding principal balance under this Note, and any payment or
prepayment of any such principal balance shall occur on any day other than the last day of the
applicable LIBOR period (whether voluntarily, by acceleration, required payment, or otherwise), or
if Borrower elects the LIBOR Option as the applicable interest rate for all or any part of the
outstanding principal balance under this Note in accordance with the terms and conditions hereof,
and, subsequent to such election, but prior to the commencement of the

-3-

 

applicable LIBOR Period, Borrower revokes such election for any reason whatsoever, or if the
applicable interest rate in respect of any principal amount hereunder shall be changed, for any
reason whatsoever, from the LIBOR Option to the Base Rate prior to the last day of the applicable
LIBOR Period, or if Borrower shall fail to make any payment of principal or interest hereunder at
any time that the LIBOR Option is the applicable interest rate hereunder in respect of such
principal amount, Borrower shall reimburse Bank, on demand, for any resulting loss, cost or expense
incurred by Bank as a result thereof, including, without limitation, any such loss, cost or expense
incurred in obtaining, liquidating, employing or redeploying deposits from third parties. Such
amount payable by Borrower to Bank may include, without limitation, an amount equal to the excess,
if any, of (a) the amount of interest which would have accrued on the amount so prepaid, or not so
borrowed, refunded or converted, for the period from the date of such prepayment or of such failure
to borrow, refund or convert, through the last day of the relevant LIBOR Period, at the applicable
rate of interest for such principal amount, as provided under this Note, over (b) the amount of
interest (as reasonably determined by Bank) which would have accrued to Bank on such amount by
placing such amount on deposit for a comparable period with leading Banks in the interlender LIBOR
market. Calculation of any amounts payable to Bank under this paragraph shall be made as though
Bank shall have actually funded or committed to fund the relevant principal amount hereunder
through the purchase of an underlying deposit in an amount equal to the amount of such principal
and having a maturity comparable to the relevant interest period; provided,
however, that Bank may fund the principal amount hereunder in any manner it deems fit and
the foregoing assumptions shall be utilized only for the purpose of the calculation of amounts
payable under this paragraph. Upon the written request of Borrower, Bank shall deliver to Borrower
a certificate setting forth the basis for determining such losses, costs and expenses, which
certificate shall be conclusively presumed correct, absent manifest error. Any prepayment
hereunder shall also be accompanied by the payment of all accrued and unpaid interest on the amount
so prepaid. Any principal outstanding hereunder which is bearing interest at such time at the Base
Rate may be prepaid without penalty or premium. Partial prepayments hereunder shall be applied to
the installments hereunder in the inverse order of their maturities.

BY INITIALING BELOW, BORROWER ACKNOWLEDGE(S) AND AGREE(S) THAT: (A) THERE IS NO RIGHT TO PREPAY ANY
LIBOR OPTION ADVANCE, IN WHOLE OR IN PART, WITHOUT PAYING THE PREPAYMENT AMOUNT SET FORTH HEREIN
(“PREPAYMENT AMOUNT”), EXCEPT AS OTHERWISE REQUIRED UNDER APPLICABLE LAW; (B) BORROWER SHALL BE
LIABLE FOR PAYMENT OF THE PREPAYMENT AMOUNT IF BANK EXERCISES ITS RIGHT TO ACCELERATE PAYMENT OF
ANY LIBOR OPTION ADVANCE AS PART OR ALL OF THE OBLIGATIONS OWING UNDER THE NOTE, INCLUDING WITHOUT
LIMITATION, ACCELERATION UNDER A DUE-ON-SALE PROVISION; (C) BORROWER WAIVES ANY RIGHTS UNDER
SECTION 2954.10 OF THE CALIFORNIA CIVIL CODE, OR ANY SUCCESSOR STATUTE; AND (D) BANK HAS MADE EACH
LIBOR OPTION ADVANCE PURSUANT TO THE NOTE IN RELIANCE ON THESE AGREEMENTS.

	 	 	 
	/s/ MAB 

BORROWER’S INITIALS

	 	 

-4-

 

9. Hold Harmless and Indemnification. To the extent that the Prepayment Amount does not
cover Bank’s actual losses and expenses which Bank sustains or incurs as a result of (i) any
payment of a LIBOR Option Advance prior to the last day of the applicable LIBOR Period for any
reason, including, without limitation, termination of the Note, whether pursuant to this Addendum
or the occurrence of an Event of Default; (ii) any termination of a LIBOR Period prior to the date
it would otherwise end in accordance with this Addendum; or (iii) any failure by Borrower, for any
reason, to borrow any portion of a LIBOR Option Advance, Borrower agrees to indemnify Bank and to
hold Bank harmless from, and to reimburse Bank on demand for, all such actual losses and expenses.

10. Funding Losses. The indemnification and hold harmless provisions set forth in this
Addendum shall include, without limitation, all actual losses and expenses arising from interest
and fees that Bank pays to Banks of funds it obtains in order to fund the loan to Borrower on the
basis of the LIBOR Option(s) and all actual losses incurred in liquidating or re-deploying deposits
from which such funds were obtained. This obligation shall survive the termination of this
Addendum and the payment of the Note.

11. Regulatory Developments or Other Circumstances Relating to Illegality or Impracticality of
LIBOR. If any Regulatory Development or other circumstances relating to the interLender
Euro-dollar markets shall, at any time, in Bank’s reasonable determination, make it unlawful or
impractical for Bank to fund or maintain, during any LIBOR Period, to determine or charge interest
rates based upon LIBOR, Bank shall give notice of such circumstances to Borrower and:

a. In the case of LIBOR Period in progress, Borrower shall, if requested by Bank, promptly pay any
interest which had accrued prior to such request and the date of such request shall be deemed to be
the last day of the term of the LIBOR Period; and

b. No LIBOR Period may be designated thereafter until Bank determines that such would be practical.

12. Additional Costs. Borrower shall pay to Bank from time to time, upon Bank’s request,
such amounts as Bank reasonably determines are needed to compensate Bank for any actual costs
incurred which are attributable to Bank having made a LIBOR Option Advance or to Bank’s obligation
to make a LIBOR Option Advance, or any reduction in any amount receivable by Bank hereunder with
respect to any LIBOR Option or such obligation (such increases in costs and reductions in amounts
received being herein called “Additional Costs”), resulting from any Regulatory
Developments, which (i) change the basis of taxation of any amounts payable to Bank hereunder with
respect to LIBOR Option Advance (other than taxes imposed on the overall net income of Bank for any
LIBOR Option Advance by the jurisdiction where Bank is headquartered or the jurisdiction where Bank
extends the LIBOR Option Advance; (ii) impose or modify any reserve, special deposit, or similar
requirements relating to any extensions of credit or other assets of, or any deposits with or other
liabilities of, Bank (including any LIBOR Option Advance or any deposits referred to in the
definition of LIBOR); or (iii) impose any other condition affecting this Addendum (or any of such
extension of credit or liabilities). On the date

-5-

 

hereof, Bank shall notify Borrower of the Additional Costs associated with the LIBOR Option Advance
and of any condition affecting this Addendum (or any of such extension of credit or liabilities).
Bank shall notify Borrower of any event occurring after the date hereof which entitles Bank to
compensation pursuant to this paragraph as promptly as practicable after it obtains knowledge
thereof and determines to request such compensation. Borrower, upon written notice to Bank from
time to time, may eliminate the LIBOR Option Advance.

13. Legal Effect. Except as specifically modified hereby, all of the terms and conditions
of the Note remain in full force and effect.

     IN WITNESS WHEREOF, the parties have agreed to the foregoing as of the date first set forth
above.

	 	 	 	 	 	 	 	 	 	 	 
	BORROWER:	 	 	 	LENDER:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PROLINK HOLDINGS CORP., a Delaware

corporation	 	 	 	COMERICA BANK	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 	 	 
	Name:

	 	 

Michael Browne
	 	 
	 	Name:
	 	 

Kenneth R. Ehrhardt
	 	 
	Title:

	 	Chief Financial Officer
	 	 	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	PROLINK SOLUTIONS, LLC, an Arizona

limited liability company	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 

Michael Browne
	 	 	 	 	 	 	 	 
	Title:

	 	Chief Financial Officer	 	 	 	 	 	 	 	 

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