Document:

ex102.htm

    Exhibit 10.2

     

    MANAGEMENT
AGREEMENT

    

    

    

    This
Management Agreement (hereinafter “Agreement”) is effective as of the 14 day
of  January 2010 (hereinafter “Agreement Date”), and is made by and
between Zeroloft Corp. (hereinafter “Zeroloft”), a Wyoming corporation having a
legal address of 2710 Thomes Avenue, Cheyenne, Wyoming, 82001 and Element 21
Golf Company (hereinafter “E21 Sports”), a Delaware corporation having a legal
address of 200 Queens Quay East, Unit # 1, Toronto, Ontario M5A 4K9 Canada
(together, the “Parties”).

    

    WHEREAS,
Zeroloft and E21 Sports have separately entered into a Trademark License
Agreement (hereinafter “License Agreement”) for the use and sublicensing of the
name and mark Zeroloft in various forms (hereinafter “Trademarks”) by E21
Sports; and

    

    WHEREAS,
Zeroloft and E21 Sports are now desirous of memorializing their understandings
in connection with E21 Sports’ role of rendering services to Zeroloft for the
operation and expansion of Zeroloft’s manufacturing and licensing of its
proprietary, branded weather-resistant fabric, products made of such fabric,
thermal insulation and related insulating fabrics (hereinafter
“Product”);

     

    NOW,
THEREFORE, in consideration of the foregoing recitals and the covenants and
conditions herein set forth, the Parties hereto agree as follows:

     

    1.
Appointment.

     

    Zeroloft
hereby appoints E21 Sports to render the Management Services as described in
Section 2 hereof for the Term of this Agreement.

     

    2.  Services.

     

    (a) During the Term of this
Agreement, E21 Sports shall render to Zeroloft, by and through such of E21
SPORTS’ officers, employees, agents, representatives and affiliates as E21
SPORTS, in its sole discretion, shall designate from time to time, management,
business development and related services (hereinafter “Management Services”)
including: (i) expanding the customer base for the Product in the field of sport
wear apparel, footwear and related sports specialty items; and (ii) entering
into agreements directly with purchasers and OEM factories in connection with
the manufacture and sale of items comprised of  the Product for use in
sportwear apparel, footwear and related sports specialty items; (iii) handling
marketing, customer relations, public relations and similar functions in
furtherance of the objectives of this Agreement.

     

    (b) In consideration for the Management
Services, Zeroloft shall compensate E21 Sports as follows (hereinafter
“Management Fee”): (i) five percent (5%) on gross receipts of sales of items
made of the Product less than two (2) US dollars per square foot, less
royalties; and (ii) ten percent 10% on gross receipts of sales of items made of
Zeroloft Product greater than two (2) US dollars per square foot, less
royalties.

     

     

     

     

     

    
      
        
        

      

      
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    (c)  E21 SPORTS shall have
the right to deduct any Management Fees due to it from any royalties collected
from any receipts earned under this Agreement.

     

     

    3.
Out-of-Pocket Expenses.

     

     

    The
Parties hereby agree that E21 Sports shall not be entitled to or receive
reimbursement for any out-of-pocket expenses incurred in rendering the Agency or
Management Services, unless such reimbursement is agreed to in writing by
Zeroloft.  For the purposes of this Agreement, the term “Out-of-Pocket
Expenses” shall mean the amounts actually paid by E21 Sports in cash in
connection with its performance of the Management Services, including, without
limitation, reasonable (i) fees and disbursements of any independent
auditors, outside legal counsel, consultants, investment bankers, financial
advisors and other independent professionals and organizations, (ii) costs
of any outside services or independent contractors such as printers, couriers,
delivery services or similar services and (iii) transportation, per diem,
telephone calls, word processing expenses or any similar expense not associated
with its ordinary operations.  All reimbursements for Out-of-Pocket
Expenses shall be made promptly upon or as soon as practicable after
presentation by E21 Sports to Zeroloft of the statement in connection therewith,
assuming such expenses and reimbursement have been approved by Zeroloft, before
such expenses are incurred.

     

     

    4.
Indemnification.

     

     

    To the
extent not inconsistent with the License Agreement, Zeroloft will indemnify and
hold harmless E21 Sports and E21 Sports will indemnify and hold harmless
Zeroloft and its officers, employees, agents, representatives, members and
affiliates (each being an “Indemnified Party”) from and against any and all
losses, costs, expenses, claims, damages and liabilities (the “Liabilities”) to
which such Indemnified Party may become subject under any applicable law, or any
claim made by any third party, or otherwise, to the extent they relate to or
arise out of the performance of the Management Services contemplated by this
Agreement or the engagement of E21 Sports pursuant to, and the performance by
E21 Sports of the Management Services contemplated by, this
Agreement.  Zeroloft will reimburse any Indemnified Party for all
reasonable costs and expenses (including reasonable attorneys’ fees and
expenses) as they are incurred in connection with the investigation of,
preparation for or defense of any pending or threatened claim for which the
Indemnified Party would be entitled to indemnification under the terms of the
previous sentence, or any action or proceeding arising therefrom, whether or not
such Indemnified Party is a party hereto, provided that, subject to the
following sentence, Zeroloft shall be entitled to assume the defense thereof at
its own expense, with counsel satisfactory to such Indemnified Party in its
reasonable judgment.  Any Indemnified Party may, at its own expense,
retain separate counsel to participate in such defense, and in any action, claim
or proceeding in which Zeroloft, on the one hand, and an Indemnified Party, on
the other hand, is, or is reasonably likely to become, a party, such Indemnified
Party shall have the right to employ separate counsel at Zeroloft’s expense and
to control its own defense of such action, claim or proceeding if, in the
reasonable opinion of counsel to such Indemnified Party, a conflict or potential
conflict exists between Zeroloft, on the one hand, and such Indemnified Party,
on the other hand, that would make such separate representation
advisable.  Zeroloft agrees that it will not, without the prior
written consent of the applicable Indemnified Party, settle, compromise or
consent to the entry of any judgment in any pending or threatened claim, action
or proceeding relating to the matters contemplated hereby (if any Indemnified
Party is a party thereto or has been actually threatened to be made a party
thereto).  Provided that Zeroloft is not in breach of its
indemnification obligations hereunder, no Indemnified Party shall settle or
compromise any claim subject to indemnification hereunder without the consent of
Zeroloft, which consent shall not be unreasonably withheld.

     

     

     

    
      
        
        

      

      
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    5.
Term and Termination.

     

    The term
of this Agreement (the “Term”) shall commence on the Effective Date and shall
continue thereafter for one (1) year, unless sooner terminated by either party,
and shall automatically renew for additional periods of one (1) year unless
either party shall provide the other with written notice of non-renewal at least
ninety (90) days prior to the scheduled expiration date for any
term.

    

    This
Agreement may be terminated: (a) by either party in the event the other party
materially breaches the terms and conditions of this Agreement, provided that
the non-breaching party gives the breaching party written notice of any such
breach and the breaching party fails to cure (or fails to take reasonable steps
to cure) such breach within thirty (30) days thereof; (b) by either party in the
event the other party makes a general assignment for the benefit of creditors,
files a voluntary petition in bankruptcy or for reorganization or arrangement
under the bankruptcy laws, if a petition in bankruptcy is filed against such
party, or if a receiver or trustee is appointed for all or any part of the
property or assets of such party, and provided that any such action is not
dismissed within thirty (30) days after such action is initiated; or (c) by a
written agreement executed by the parties.

     

    The
provisions of Sections 4, 5, 7, 8 and otherwise as the context so requires
shall survive the termination of this Agreement.

     

    6.   Other
Activities.

     

    Nothing
herein shall in any way preclude E21 Sports or its officers, employees, agents,
representatives, members or affiliates from engaging in any business activities
or from performing services for its or their own account or for the account of
others, including for companies that may be in competition with the business
conducted by Zeroloft.

     

    7.
General.

     

    (a) No
amendment or waiver of any provision of this Agreement, or consent to any
departure by either party from any such provision, shall be effective unless the
same shall be in writing and signed by the Parties, and, in any case, such
amendment, waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given.

     

    (b) Subject
to the terms of the License Agreement, this Agreement and the rights of the
Parties hereunder may not be assigned without the prior written consent of the
Parties hereto.

     

     

    
      
        
        

      

      
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    (c) Any
and all notices hereunder shall, in the absence of receipted hand delivery, be
deemed duly given when mailed, if the same shall be sent by registered or
certified mail, return receipt requested, and the mailing date shall be deemed
the date from which all time periods pertaining to a date of notice shall
run.  Notices shall be addressed to the parties at the following
addresses:

     

    If to
Zeroloft:                                    Zeroloft
Corp.

    2710 Thomes Avenue

    Cheyenne,
Wyoming 82001

    USA

    

    If to E21
Sports:                               Element
21 Sports Company

    200 Queens Quay East, Unit #
1

    Toronto,
Ontario M5A 4K9

    Canada

     

    (d) This
Agreement shall constitute the entire agreement between the Parties with respect
to the subject matter hereof, and shall supersede all previous oral and written
(and all contemporaneous oral) negotiations, commitments, agreements and
understandings relating hereto.

     

     

    (e) This
Agreement shall be governed by, and enforced in accordance with, the laws of the
State of New York (excluding the choice of law principles thereof). The parties
to this Agreement hereby agree to submit to the jurisdiction of the federal and
state courts located in the State of New York in any action or proceeding
arising out of or relating to this Agreement.  This Agreement shall
inure to the benefit of, and be binding upon, E21 Sports and Zeroloft (including
any present or future subsidiaries of Zeroloft or E21 Sports that are not
signatories hereto), and their respective successors and assigns.

     

    (f) This
Agreement may be executed in one or more counterparts and shall become effective
when one or more counterparts have been signed by all parties.  Each
counterpart shall be deemed an original but all counterparts shall constitute a
single instrument. Any facsimile copy, other copy or reproduction of a single
counterpart original of this Agreement shall be as fully effective and binding
as the original signed counterpart of this Agreement.

     

     (g) The
waiver by any party of any breach of this Agreement shall not operate as or be
construed to be a waiver by such party of any subsequent breach.

     

    

    

    
      
        
        

      

      
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    (h) The
Section headings are convenience only and shall not affect the meaning of the
provisions to which they refer.

    

    Attest:

     

    
      
        	Zeroloft
      Corp.	 	 	Element
      21 Golf Company	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	
                /s/
      Rebekah Li

              	 	 	
                /s/ 
      Nataliya Hearn

              	 
	
                Rebekah
      Li, Senior Vice President  

              	 	 	
                Nataliya
      Hearn, CEO

              	 
	
                Dated:   January
      14, 2010

              	 	 	
                Dated:
      January 14, 2010

              	 

      

    

     

    

                                  

    
 

     

     

    5Exhibit 10.4

          AMENDMENT AND WAIVER, dated as of
May 15,
2009 (this “Amendment and Waiver”), to the Credit Agreement dated as of June
26, 2008 (as same may be further amended, restated, modified or otherwise
supplemented, from time to time, the “Credit Agreement”) by and between ‘mktg, inc.’ (formerly known as
CoActive
Marketing Group, Inc.), a Delaware corporation (the “Company”) and SOVEREIGN BANK, a federal savings bank (the
“Lender”).

RECITALS

          WHEREAS, the Company has informed the
Lender that there currently exists one or more Events of Default under the
Credit Agreement as a result of the Company’s discovery of a material imbalance
between certain general ledger and sub ledger accounts related to contracts in
progress and the delivery by the Company of late or inaccurate interim
consolidated and consolidating balance sheet and the related unaudited interim
consolidated and consolidating statements of income, shareholders equity and
cash flow for the fiscal quarters ended June 30, 2008, September 30, 2008,
December 31, 2008 and fiscal year ended March 31, 2008 (the “Specified Matter”);

          WHEREAS, the Company has further
informed
Lender that the Company formed a wholly-owned subsidiary, MKTG CANADA, INC. (“mktg
Canada”), under the laws of the Province of Ontario, Canada on January 12,
2009;

          WHEREAS, the Company has requested
and the
Lender has agreed, subject to the terms and conditions of this Amendment and
Waiver, to amend and waive certain provisions of the Credit Agreement as set
forth herein, including as a result of the Specified Matter and the formation
of mktg Canada;

          NOW, THEREFORE, in consideration of
the
premises and of the mutual agreements herein contained, the parties hereto
agree as follows:

          1.          Amendments.

                      (a)          The
following definitions in Section 1.01 of the Credit Agreement are each hereby
amended and restated in their entirety to provide as follows:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Chief Financial Officer” shall mean the Chief Financial Officer of
 the Company, or at any time that the Company does not have a Chief Financial
 Officer, the principal accounting officer of the Company.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Guarantors” shall mean, collectively, Inmark Services LLC, a
 Delaware limited liability company, Optimum Group LLC, a Delaware limited
 liability company, U.S. Concepts LLC, a Delaware limited liability company,
 Digital Intelligence Group LLC, a Delaware limited liability company,
 Bars.com LLC, a Delaware limited liability company, and each other Domestic
 Subsidiary who from time to time is required to execute a Guaranty and each
 Non-Domestic Subsidiary regardless of whether its stock is pledged to the
 Lender, each in accordance with Section 6.13 hereof.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Security Documents” shall mean the Security Agreement, the Account
 Pledge Agreements, the Pledge Agreements and each other collateral security
 document delivered to the Lender hereunder.

 

                      (c)          Section
1.01 of the Credit Agreement is hereby further amended by adding the following
definitions in their appropriate alphabetical order:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Account Pledge Agreements” shall mean, collectively, the Account
 Pledge Agreement, dated as of May 15, 2009, and any other Account Pledge
 Agreement to be hereinafter entered into, each between the Company and the
 Lender, as the same may hereafter be further amended, restated, supplemented
 or otherwise modified from time to time.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Domestic Subsidiary” shall mean any Subsidiary of the Company or any
 Guarantor organized under the laws of any state of the United States of
 America.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Non-Domestic Subsidiary” shall mean any Subsidiary of the Company or
 any Guarantor not organized under the laws of any state of the United States
 of America.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Pledge Agreements” shall mean, collectively, one or more Pledge
 Agreements, in form and substance satisfactory to the Lender, to be executed
 and delivered by the Company or any Guarantor which is the direct holder of
 capital stock of any Non-Domestic Subsidiary who is required to execute the
 same pursuant to Section 6.13 hereof, as each of the same may hereafter be
 amended, restated, supplemented or otherwise modified from time to time.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Specified Period” shall mean that period of time, as determined by
 the Lender from time to time, when the Revolving Credit Commitment shall be
 deemed cancelled and without effect and during which time the Lender shall
 have no obligation to make any Revolving Credit Loans or issue any Letters of
 Credit other than the Permitted Letter of Credit; provided that the Lender
 may elect to terminate the Specified Period and reinstate the Revolving
 Credit Commitment, based upon such factors and considerations as it may
 determine, upon notice to the Borrower.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Permitted Letter of Credit” shall mean a one-year Standby Letter of
 Credit in an amount not to exceed $500,000, to be issued pursuant to the
 terms of Section 2.05 hereof.

 

                      (d)          Section
2.01(a) of the Credit Agreement is hereby amended by adding the following
sentence at the end thereof:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Notwithstanding anything to the contrary, the Company shall not
 request, and the Lender shall not make, any Revolving Credit Loans hereunder,
 and the Revolving Credit Commitment shall be deemed cancelled and without
 effect, at all times during the Specified Period.”

 

                      (d)          Section
2.05(a) of the Credit Agreement is hereby amended by adding the following
sentence at the end thereof:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Notwithstanding anything to the contrary, the Company shall not
 request, and the Lender shall not issue, any Standby Letter of Credit
 hereunder, other than the Permitted Letter of Credit, at all times during the
 Specified Period, provided that all other terms and conditions with respect
 to the issuance of Standby Letters of Credit described herein shall apply to
 the issuance of the Permitted Letter of Credit.”

 

2

                      (f)          Section
3.01(c) of the Credit Agreement is hereby amended to delete the references to
the text “2%” on the fourth and fifth lines thereof and to replace them with
the text “5%”.

                      (g)          Section
3.04(a) of the Credit Agreement is hereby amended to add the following proviso
immediately prior to the period at the end thereof:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “; provided that such fee shall not be paid and shall not be deemed
 to accrue at any time during the Specified Period.”

 

                      (h)          Section
3.04(c) of the Credit Agreement is hereby amended and restated in its entirety
to provide as follows:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “The Company shall pay to the Lender upon the issuance of a Standby
 Letter of Credit hereunder, a fronting fee equal to 1% of the face amount of
 the Permitted Letter of Credit, together with the customary fees and expenses
 charged by the Lender in its sole discretion with respect to the issuance,
 payment, acceptance, processing and administration of Letters of Credit
 (including, without limitation, amendments to Letters of Credit); all subject
 to Section 2.05(a) above.”

 

                      (i)          Section
5.03 of the Credit Agreement is hereby amended to add the following new
subsections “(f)”, “(g)” and “(h)” immediately following subsection “(e)”
thereof:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “(f)          Cash Collateral re: Term
Loan. The
 Company shall have deposited with the Lender, Cash Collateral in an amount
 equal to the outstanding principal amount of the Term Loan and shall have
 executed an Account Pledge Agreement with respect thereto.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (g)          Cash Collateral re: Permitted
Letter of Credit.
 Prior to the issuance of the Permitted Letter of Credit, the Company shall
 have deposited with the Lender, Cash Collateral in an amount equal to the
 Permitted Letter of Credit and shall have executed an Account Pledge
 Agreement with respect thereto

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 (h)          Specified Period. Other
than with
 respect to the issuance of the Permitted Letter of Credit, the obligation of
 the Lender to make each Loan hereunder and issue, amend, renew or extension
 any Standby Letter of Credit shall be further conditioned upon the
 cancellation of the Specified Period and the reinstatement of the Revolving
 Credit Commitment pursuant to Sections 2.01 and 2.05 hereof.”

 

3

                      (j)          Section
6.13 of the Credit Agreement is hereby amended and restated in its entirety to
provide as follows:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  “SUBSIDIARIES. Give
 the Lender prompt written notice of the creation, establishment or
 acquisition, in any manner, of any Subsidiary of the Company or any Guarantor
 not existing on the Closing Date. The Company or a Guarantor, as appropriate
 (a) shall execute a Pledge Agreement (or such other agreement as shall be
 reasonably required by the Administrative Agent) with respect to 65% of the
 capital stock or other ownership interest of each Non-Domestic Subsidiary of
 such Person which is or becomes a direct subsidiary of the Company or such
 Guarantor and shall simultaneously deliver such certificates and powers with
 respect to such interests, duly endorsed in blank or such other documentation
 as reasonably requested by the Lender in order to grant and perfect a
 security interest in such ownership interest, (b) shall cause each Subsidiary
 of such Person which is or becomes a Domestic Subsidiary to execute a joinder
 agreement with respect to the Guaranty and the Security Agreement, pursuant
 to which such Domestic Subsidiary becomes a “Guarantor” and “Grantor” under
 the Guaranty and the Security Agreement, respectively, (c) shall deliver an
 opinion of counsel, simultaneously with the delivery of (i) any Pledge
 Agreement executed pursuant to clause (a) above, that such Pledge Agreement
 is valid and enforceable in the jurisdiction of formation of such
 Non-Domestic Subsidiary, provided that if such opinion, in connection with
 the delivery of any Pledge Agreement executed pursuant to clause (a) above
 cannot be provided, the Company, such Guarantor or such Non-Domestic
 Subsidiary, as appropriate, shall execute any additional documents that may
 be required in order to enable such counsel to deliver an acceptable opinion
 with respect thereto and/or to perfect the lien granted by such Pledge
 Agreement in such jurisdiction, and (ii) the joinder agreement executed
 pursuant to clause (b) above, substantially in the form of Exhibit D
 hereto, with respect to such new Domestic Subsidiary; in the case of both
 (a), (b) and (c) within ten (10) Business Days after the creation,
 establishment or acquisition of such Domestic Subsidiary or within twenty
 (20) Business Days following request by the Lender, in its sole discretion,
 with respect to a Non-Domestic Subsidiary, respectively, and in connection
 therewith shall deliver or cause to be delivered such proof of corporate
 action, incumbency of officers and other documents as are consistent with
 those delivered as to each Domestic Subsidiary or Non-Domestic Subsidiary
 pursuant to Section 5.01 hereof on the Closing Date, or as the Lender may
 request, each in form and substance satisfactory to the Lender.

 

                      (j)          Article
VI of the Credit Agreement is hereby amended to add a new Section 6.16 at the
end thereof as follows:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  “SECTION 6.16. Cash Collateral.
 The Company shall, at all times required by the Lender, maintain with, and
 pledge to, the Lender, Cash Collateral in an amount equal to the then
 outstanding principal amount of the Term Loan and the Permitted Letter of
 Credit, pursuant to the Account Pledge Agreements.”

 

                      (k)          Section
7.06 of the Credit Agreement is hereby amended and restated in its entirety to
provide as follows:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  “Loans and Investments.
 Make or commit to make any advance, loan, extension of credit, or capital
 contribution to, or purchase or hold beneficially any stock or other
 securities, or evidence of Indebtedness of, purchase or acquire all or a
 substantial part of the assets of, make or permit to exist any interest
 whatsoever in, any other Person except for (a) the ownership of stock
 of any Subsidiaries existing as of the Closing Date or formed after the
 Closing Date with the approval of the Lender and compliance with Section 6.13
 hereof, (b) loans and capital contributions by the Company to any Guarantor
 and loans and advances by any Guarantor to the Company or any other
 Guarantor, (c) the Acquisition, and (d) investments consisting of Eligible
 Investments.”

 

                      (l)          Section
7.13 of the Credit Agreement is hereby amended to add the following sentence at
the end thereof:

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 “Notwithstanding anything to the contrary herein, the aforementioned
 financial covenants shall not be tested, and the Company shall not be
 required to comply with such financial covenants, for the fiscal period ended
 March 31, 2009 and during the Specified Period.”

 

4

          2.          Waivers.

                      (a)          The
Lender hereby waives late receipt of (i) the unaudited interim consolidated and
consolidating balance sheet of the Company and its Subsidiaries and the related
unaudited interim consolidated and consolidating statements of income,
shareholders equity and cash flow for the fiscal quarters ended September 30,
2008 and December 31, 2008, required to be delivered to the Lender pursuant to
Section 6.03(b) of the Credit Agreement, and (ii) the certificate of the Chief
Financial Officer of the Company with respect to such financial statements,
required to be delivered to the Lender pursuant to Section 6.03(c) of the
Credit Agreement, provided that such financial statements and Chief Financial
Officer’s certificate shall be delivered to the Lender no later than May 30,
2009.

                      (b)          The
Lender hereby waives (a) all breaches of representations and warranties under
the Credit Agreement and the other Loan Documents, including under Sections
4.03, 4.15, 4.20, 5.03(a). 5.03(b) 6.03(b), 6.03(c), 6.04(a) and 7.13 of the
Credit Agreement, and (b) the Event of Defaults that have occurred, including
under Sections 8.01(b), 8.01(c) and 8.01(d) of the Credit Agreement, all with
respect to the Specified Matter, for all periods commencing April 1, 2007.

                      (c)          The
Lender waives non-compliance with Section 7.13(a) of the Credit Agreement, Consolidated Debt Service Coverage Ratio,
for the fiscal quarters ended June 30, 2008, September 30, 2008 and December
31, 2008.

                      (d)          The
Lender hereby waives non-compliance with Section 7.13(b) of the Credit
Agreement, Consolidated Leverage Ratio,
for the fiscal quarters ended June 30, 2008 and September 30, 2008.

                      (e)          The
Lender hereby waives non-compliance with Section 7.13(c) of the Credit
Agreement, Consolidated Pre-Tax Loss,
for the fiscal quarter ended June 30, 2008.

                      (f)          The
Lender hereby waives non-compliance with Section 6.13 of the Credit Agreement
requiring written notice of the formation of mktg Canada and delivery of the
documents required to be delivered thereunder.

          3.          Conditions
of Effectiveness. This
Amendment and Waiver shall become effective as of the date hereof, upon receipt
by the Lender of (a) this Amendment and Waiver, duly executed by the Company
and the Guarantors, (b) the Account Pledge Agreement, duly executed by the
Company, and Cash Collateral in an amount equal to the outstanding principal
amount of the Term Loan as of the date hereof, (c) an amendment/waiver fee of
$10,000, (d) a duly executed Secretary’s Certificate of the Company,
substantially in the form attached hereto as Exhibit 1, (e) evidence
that the Company has amended its Certificate of Authority filed with the
Secretary of State of New York reflecting its new name and (f) reimbursement of
the Lender’s legal fees and expenses incurred in connection herewith.

          4.          Conforming
Amendments. The Credit
Agreement, the Loan Documents and all agreements, instruments and documents
executed and delivered in connection with any of the foregoing, shall each be
deemed to be amended and supplemented hereby to the extent necessary, if any,
to give effect to the provisions of this Amendment and Waiver. Except as so
amended hereby, the Credit Agreement and the other Loan Documents shall remain
in full force and effect in accordance with their respective terms.

5

          5.          Representations
and Warranties. The
Company hereby represents and warrants to the Lender as follows:

                      (a)          After
giving effect to this Amendment and Waiver (i) each of the representations and
warranties set forth in Article IV of the Credit Agreement is true and correct
in all material respects on and as of the date hereof as if made on and as of
the date of this Amendment and Waiver except to the extent such representations
or warranties relate to an earlier date in which case they shall be true and
correct in all material respects as of such earlier date, and (ii) no Default
or Event of Default has occurred and is continuing as of the date hereof or
shall result after giving effect to this Amendment and Waiver.

                      (b)
          The Company has the
power to execute, deliver and perform this Amendment and Waiver and each of the
other agreements, instruments and documents to be executed by it in connection
with this Amendment and Waiver. No registration with or consent or approval of,
or other action by, any Governmental Authority is required in connection with
the execution, delivery and performance of this Amendment and Waiver and the
other agreements, instruments and documents executed in connection with this
Amendment and Waiver by the Company, other than registration, consents and
approvals received prior to the date hereof and disclosed to the Lender and which
are in full force and effect.

                      (c)          The
execution, delivery and performance by the Company of this Amendment and Waiver
and each of the other agreements, instruments, and documents to be executed by
it in connection with this Amendment, and the execution and delivery by each of
the Guarantors of the Consent to this Amendment and Waiver, (i) have been duly
authorized by all requisite corporate action, (ii) will not violate (A) any
provision of law applicable to the Company or any Guarantor, any rule or regulation
of any Governmental Authority applicable to the Company or any Guarantor or (B)
the certificate of incorporation, by-laws, or other organizational documents,
as applicable, of the Company or of any Guarantor or (C) any order of any court
or other Governmental Authority binding on the Company or any Guarantor or any
indenture, agreement or other instrument to which the Company or any Guarantor
is a party, or by which the Company or any Guarantor or any of their respective
properties are bound, and (iii) will not be in conflict with, result in a
breach of or constitute (with due notice and/or lapse of time) a default under,
any such indenture, agreement or other instrument, or result in the creation or
imposition of any Lien, of any nature whatsoever upon any of the property or
assets of the Company or any Guarantor other than as contemplated by the Credit
Agreement, except for any such violation, conflict, breach or default or Lien
provided in clauses (ii)(A), (ii)(B) or (ii)(C) which could not, individually,
or in the aggregate, reasonably be expected to have a Material Adverse Effect.

                      (d)          This
Amendment and Waiver and each of the other agreements, instruments and
documents executed in connection with this Amendment and Waiver to which the
Company or the Guarantors are a party have been duly executed and delivered by
the Company and each Guarantor, as the case may be, and constitutes a legal,
valid and binding obligation of the Company and each Guarantor enforceable, as
the case may be, in accordance with its terms, except to the extent that
enforcement may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, or other similar laws, now or hereafter in effect,
relating to or affecting the enforcement of creditors’ rights generally and by
equitable principles of general application, regardless of whether considered
in a proceeding in equity or at law.

          6.          Miscellaneous.

          Capitalized
terms used herein and not otherwise defined herein shall have the same meanings
as defined in the Credit Agreement.

6

          Except as
expressly amended hereby, the Credit Agreement shall remain in full force and
effect in accordance with the original terms thereof.

          The
amendments and waiver herein contained are limited specifically to the matters
set forth above and do not constitute directly or by implication an amendment
or a waiver of any other provision of the Credit Agreement or a waiver of any
other Default or Event of Default which may occur or may have occurred under
the Credit Agreement.

          This Amendment
and Waiver may be executed in one or more counterparts, each of which shall
constitute an original, but all of which when taken together shall constitute
but one Amendment.

          THIS AMENDMENT AND WAIVER SHALL BE
GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO CONFLICT OF LAW PRINCIPLES.

          6.          Reaffirmation.

          The Company
hereby: (a) acknowledges and confirms that, notwithstanding the consummation of
the transactions contemplated by this Amendment and Waiver, (i) all terms and
provisions contained in the Security Documents are, and shall remain, in full
force and effect in accordance with their respective terms and (ii) the liens
heretofore granted, pledged and/or assigned to the Lender as security for the
Company’s obligations under the Note, the Credit Agreement and the other Loan
Documents shall not be impaired, limited or affected in any manner whatsoever
by reason of this Amendment and Waiver; (b) reaffirms and ratifies all the
representations and covenants contained in each Security Document; and (c)
represents, warrants and confirms the non-existence of any offsets, defenses,
or counterclaims to its obligations under any Security Document.

[next page is signature page]

7

          IN WITNESS WHEREOF, the Company and
the
Lender have signed and delivered this Amendment and Waiver as of the date first
written above.

	
  

 	
  

 	
  

 
	
  

 	
  ‘mktg, inc.’

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ Charles
 Horsey

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
 Charles
 Horsey, President

 
	
  

 	
  

 	
  

 
	
  

 	
 SOVEREIGN BANK

 
	
  

 	
  

 	
  

 
	
  

 	
 By:

 	
 /s/ William
 C. Conlan

 
	
  

 	
  

 	 

 
	
  

 	
  

 	
 William C.
 Conlan, Vice President

 

8

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