Document:

Exhibit 10.3

                                                               Execution Version

                                 GOAMERICA, INC.

                  AMENDED AND RESTATED STOCK PURCHASE AGREEMENT

                  7,446,809 SHARES OF SERIES A PREFERRED STOCK

                               September 12, 2007

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                             SCHEDULES AND EXHIBITS

SCHEDULE A         Schedule of Investors

SCHEDULE B         Schedule of Exceptions

SCHEDULE C         Operating Subsidiaries

SCHEDULE D         Insurance

EXHIBIT A-1        Form of First Restated Certificate

EXHIBIT A-2        Form of Second Restated Certificate

EXHIBIT B-1        Investor Rights Agreement

EXHIBIT B-2        Form of Amended and Restated Investor Rights Agreement

EXHIBIT B-3        Form of Second Amended and Restated Investor Rights Agreement

EXHIBIT C          Form of Opinion of Company Counsel

EXHIBIT D          Compliance Certificate

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                              AMENDED AND RESTATED
                   SERIES A PREFERRED STOCK PURCHASE AGREEMENT

            THIS  AMENDED  AND  RESTATED   SERIES  A  PREFERRED  STOCK  PURCHASE
AGREEMENT  (this  "Agreement")  is made as of September 12, 2007, by and between
GoAmerica,  Inc., a Delaware  corporation  (the  "Company"),  and the  investors
listed  on  Schedule  A  hereto  (each,  an  "Investor"  and  collectively,  the
"Investors"),  and amends and  restates in its entirety  that  certain  Series A
Preferred Stock Purchase  Agreement dated as of August 1, 2007 among the parties
hereto.

            THE PARTIES HEREBY AGREE AS FOLLOWS:

            1.    Purchase and Sale of Stock.

                  1.1 Sale and Issuance of Series A Preferred Stock.

                      (a) The Board of  Directors  of the Company has  approved,
and upon receipt of all necessary stockholder approvals,  the Company shall file
with the  Secretary  of State of the  State of  Delaware  (i) on or  before  the
Closing (as defined below), an Amended and Restated Certificate of Incorporation
in the form attached hereto as Exhibit A-1 (the "First  Restated  Certificate"),
and (ii) on or before the Subsequent  Closing (as defined below), an Amended and
Restated Certificate of Incorporation in the form attached hereto as Exhibit A-2
(the  "Second  Restated  Certificate");  provided  that,  if the Closing and the
Subsequent Closing are substantially  simultaneous,  the Company shall file only
the Second Restated Certificate.

                      (b) The Board of Directors of the Company has  authorized,
subject to the receipt of all necessary stockholder approvals,  (i) the sale and
issuance to the Investors of the Series A Preferred Stock (as defined below) and
(ii) the issuance of the shares of Common Stock (as defined  below) to be issued
upon conversion of the Series A Preferred Stock (the "Conversion  Shares").  The
Series A  Preferred  Stock and the  Conversion  Shares  shall  have the  rights,
preferences,  privileges  and  restrictions  set  forth  in the  First  Restated
Certificate or the Second Restated Certificate, as applicable.

                      (c) Subject to the terms and conditions of this Agreement,
each Investor agrees,  severally and not jointly, to purchase at the Closing (as
defined  below) and the Company agrees to sell and issue to each Investor at the
Closing,  that number of shares of the  Company's  Series A Preferred  Stock set
forth  opposite  each  Investor's  name on Part I of  Schedule  A  hereto  for a
purchase price of $5.17 per share (the "Per Share Price").

                      (d) Subject to the terms and conditions of this Agreement,
each Investor agrees,  severally and not jointly,  to purchase at the Subsequent
Closing  (as  defined  below) and the  Company  agrees to sell and issue to each
Investor  at the  Subsequent  Closing,  that  number of shares of the  Company's
Series A Preferred  Stock set forth opposite each  Investor's name on Part II of
Schedule A hereto for a purchase price of the Per Share Price.

                  1.2 Closing and  Subsequent  Closing.  Assuming that all other
conditions  of Closing have been  satisfied or waived,  the purchase and sale of
the  Series A  Preferred  Stock to be sold at the  Closing  pursuant  to Section
1.1(c) shall take place at the offices

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of  Lowenstein  Sandler PC, 65  Livingston  Avenue,  Roseland,  New Jersey 07068
concurrently  with the  consummation of the closing provided for in that certain
asset purchase agreement (the "Asset Purchase  Agreement") dated as of August 1,
2007, by and between  GoAmerica  Relay  Services Corp.  (formerly  Acquisition 1
Corp.)  and MCI  Communications  Services,  Inc.,  providing  for the  Company's
purchase of a  telecommunications  relay services business (the "TRS Business"),
or at such other time and place as the Company and  Investors  acquiring  in the
aggregate more than half of the shares of Series A Preferred Stock sold pursuant
hereto  mutually  agree  upon  orally or in  writing  (which  time and place are
designated as the "Closing").  At the Closing, the Company shall deliver to each
Investor  a  certificate  representing  the Series A  Preferred  Stock that such
Investor is purchasing  against  payment of the purchase  price therefor by wire
transfer of immediately available funds to an account designated by the Company.

Assuming that all  conditions of the  Subsequent  Closing have been satisfied or
waived,  the purchase and sale of the Series A Preferred  Stock to take place at
the Subsequent Closing shall take place at the offices of Lowenstein Sandler PC,
65  Livingston  Avenue,   Roseland,  New  Jersey  07068  concurrently  with  the
consummation of the closing  provided for in that certain merger  agreement (the
"Merger  Agreement")  of even date herewith,  by and between the Company,  HOVRS
Acquisition  Corporation  and Hands On Video  Relay  Services,  Inc.  ("HOVRS"),
providing  for the  Company's  acquisition  of HOVRS,  or at such other time and
place as the Company and Investors  acquiring in the aggregate more than half of
the shares of Series A Preferred  Stock sold pursuant hereto mutually agree upon
orally or in writing  (which time and place are  designated  as the  "Subsequent
Closing"). At the Subsequent Closing, the Company shall deliver to each Investor
a certificate  representing  the Series A Preferred  Stock that such Investor is
purchasing  at the  Subsequent  Closing  against  payment of the purchase  price
therefor  by  wire  transfer  of  immediately  available  funds  to  an  account
designated by the Company.

                  1.3 Use of Proceeds.  The Company  shall use the proceeds from
the sale of the Series A Preferred  Stock to the Investors at the Closing (a) to
fund the cash  purchase  price  payable  by the  Company  pursuant  to the Asset
Purchase  Agreement,  (b) for general working  capital  purposes and (c) for the
repayment of certain of the Company's  existing  secured debt. The Company shall
use the  proceeds  from the sale of Series A Preferred  Stock at the  Subsequent
Closing  (a) to fund  the  cash  merger  consideration  payable  by the  Company
pursuant to the Merger Agreement and (b) for general working capital purposes.

                  1.4  Transaction  Fee.  Concurrently  with  the  Closing,  the
Company shall pay the Investors by wire transfer of immediately  available funds
(to the account or accounts  designated  by the  Investors  prior to Closing) an
aggregate transaction fee of $960,000.

            2. Representations and Warranties of the Company. The Company hereby
represents  and warrants to each Investor  that,  except as set forth in the SEC
Reports (as defined  below) or on the Schedule of Exceptions  (the  "Schedule of
Exceptions")  furnished to each Investor prior to execution  hereof and attached
hereto as Schedule B, which exceptions shall be deemed to be representations and
warranties as if made hereunder:

                  2.1 Organization, Good Standing and Qualification. The Company
is a corporation duly organized, validly existing and in good standing under the
laws of the State of

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Delaware.  The Company is duly  qualified  to transact  business  and is in good
standing in each  jurisdiction  in which the failure to so qualify  would have a
material  adverse  change  in the  assets,  liabilities,  customer  or  supplier
relationships,  financial condition,  operations or results of operations of the
Company and the TRS Business taken as a whole, provided,  however, in each case,
not including any change that (A) is generally  applicable to the U.S.  economy,
(B) is generally  applicable to Internet protocol data and voice providers,  (C)
results from the execution of the Asset Purchase Agreement,  the announcement of
the  Asset  Purchase   Agreement  or  the   consummation  of  the   transactions
contemplated  by the Asset  Purchase  Agreement  or (D)  relates  to  changes in
generally  accepted  accounting  principles  generally  applicable  to companies
serving as Internet  protocol data and voice providers  occurring after the date
of the Asset Purchase Agreement (a "Material Adverse Effect").

                  2.2 Capitalization and Voting Rights.

                      (a)  Authorized  Stock.  The  authorized  capital  of  the
Company consists of:

                           (i) Preferred  Stock.  4,351,943  shares of Preferred
Stock, par value $.01 per share (the "Preferred  Stock"),  and, after the filing
of the First  Restated  Certificate  and/or  the  Second  Restated  Certificate,
11,671,180  shares  of  Preferred  Stock,   290,135  of  which  are  issued  and
outstanding  as of the date  hereof  (all of which were  issued and  outstanding
pursuant to that certain  $1,500,000 Stock Purchase Agreement dated as of August
1, 2007 (the "$1.5 million Stock Purchase Agreement"),  by and among the Company
and the  Investors).  Upon  filing  the  First  Restated  Certificate  with  the
Secretary of State of the State of Delaware, 6,769,826 shares of Preferred Stock
shall be designated Series A Preferred Stock and upon filing the Second Restated
Certificate  with the  Secretary  of State of the State of  Delaware,  7,736,944
shares of  Preferred  Stock shall be  designated  Series A Preferred  Stock (the
"Series A Preferred Stock"), all of which may be sold pursuant to this Agreement
(other than the Series A Preferred  Stock  issued on August 1, 2007  pursuant to
the $1.5 million Stock  Purchase  Agreement).  As of the date of the  Subsequent
Closing,  the only shares of Series A Preferred Stock issued and outstanding are
(A) the  shares  issued  to the  Investors  pursuant  hereto  on the date of the
Closing, and (B) the shares issued to the Investors pursuant to the $1.5 million
Stock Purchase Agreement; and

                           (ii)  Common  Stock.  200,000,000  shares  of  Common
Stock, par value $.01 per share ("Common  Stock"),  and, after the filing of the
First Restated  Certificate and/or the Second Restated  Certificate,  50,000,000
shares of Common Stock, of which 2,486,668  shares are issued and outstanding as
of the date  hereof,  and  24,063  shares  are held in  treasury  as of the date
hereof.

                      (b) Valid Issuance. The outstanding shares of Common Stock
are all duly and validly  authorized and issued,  fully paid and  nonassessable,
and were  issued  in  compliance  with all  applicable  state and  federal  laws
concerning the issuance of securities.

                      (c) Rights to Acquire.  Except for (i) options to purchase
an aggregate of 83,191 shares of Common Stock granted and outstanding  under the
GoAmerica Communications Corp. 1999 Stock Option Plan, the

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GoAmerica,  Inc. 1999 Stock Plan,  the GoAmerica,  Inc.  Employee Stock Purchase
Plan and the GoAmerica,  Inc. 2005 Equity Compensation Plan  (collectively,  the
"Company  Option  Plans") and (ii)  warrants to purchase an  aggregate of 84,320
shares of Common Stock granted and  outstanding,  there are not  outstanding any
options,  warrants,  rights  (including  conversion  or  preemptive  rights)  or
agreements for the purchase or acquisition from the Company of any shares of its
capital stock as of the date hereof. The Company has reserved a total of 272,478
shares of Common Stock for issuance  under the Company  Option Plans  (including
the shares described above).

                      (d)  Voting of  Shares.  Other  than the  Investor  Rights
Agreement  entered  into by the Company and the  Investors  on August 1, 2007 in
connection  with the $1.5  million  Stock  Purchase  Agreement,  the Amended and
Restated  Investor Rights Agreement and the Second Amended and Restated Investor
Rights  Agreement  to be entered  into in  connection  with the  Closing  and/or
Subsequent  Closing  hereunder,  the  Company  is not a party or  subject to any
agreement  or  understanding  and, to the  Company's  knowledge,  except for the
voting agreements identified on Schedule 2.2(d) hereof, there is no agreement or
understanding  between any persons  and/or  entities which affects or relates to
the voting or giving of written  consents  with  respect to any  security of the
Company.

                  2.3 Operating Subsidiaries.

                      (a)  Schedule  C  hereto  sets  forth  the  name  of  each
operating  subsidiary  of the  Company  (each,  an  "Operating  Subsidiary"  and
collectively,  the "Operating  Subsidiaries") and the jurisdiction in which such
Operating  Subsidiary  is  incorporated.  Each  Operating  Subsidiary  is a duly
organized and validly existing corporation or other entity and has all requisite
corporate  power and authority to carry on its business as now  conducted.  Each
Operating  Subsidiary  is duly  qualified  to transact  business  and is in good
standing in each  jurisdiction  in which the failure so to qualify  would have a
Material Adverse Effect.

                      (b) All of the outstanding shares of capital stock of each
Operating  Subsidiary of the Company are duly and validly authorized and issued,
fully paid and  non-assessable  and are owned directly by the Company,  free and
clear of all liens, encumbrances,  preemptive rights, subscription rights, other
rights to purchase,  voting or transfer restrictions and other claims, except as
set forth in or  contemplated  by the  Credit  Agreement,  the  First  Lien Debt
Commitment  Letter  and the Second  Lien Debt  Commitment  Letter.  There are no
outstanding rights,  warrants or options to acquire, or instruments  convertible
into or exchangeable for, any equity interests of any Operating Subsidiary.

                      (c)  Each  subsidiary  of  the  Company  that  is  not  an
Operating  Subsidiary (i) has consolidated gross revenues for the period of four
fiscal  consecutive  quarters most recently ended of less than $5,000,  (ii) has
consolidated  total assets on the last day of the fiscal  quarter most  recently
ended of less than $5,000 and (iii) does not own or possess the right to use any
Intellectual  Property  Rights or other assets that are material to the business
of the  Company and its  subsidiaries,  taken as a whole.  For  purposes of this
Agreement,  the terms  "subsidiary" and  "subsidiaries"  of any person means any
corporation,  partnership, joint venture, limited liability company, association
or other legal entity of which such person  (either alone or through or together
with any other  subsidiary),  owns,  directly or indirectly,  50% or more of the
stock or other equity  interests  the holder of which is  generally  entitled to
vote for the election of

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the board of directors or other governing body of such corporation, partnership,
joint venture, limited liability company, association or other legal entity.

                  2.4  Authorization.   Other  than  the  stockholder  approvals
described in Section 2.4 of the Schedule of Exceptions,  the filing of the First
Restated Certificate and/or the Second Restated Certificate, as applicable, with
the  Secretary  of State of the State of  Delaware  and filings  required  under
federal  and state  securities  laws,  all  corporate  action on the part of the
Company,  its  directors  and  stockholders  necessary  for  the  authorization,
execution  and delivery by the Company of this  Agreement,  the Investor  Rights
Agreement,  a copy of which is  attached  hereto as Exhibit  B-1 (the  "Investor
Rights  Agreement"),  an Amended  and  Restated  Investor  Rights  Agreement  in
substantially the form attached hereto as Exhibit B-2 (the "Amended and Restated
Investor  Rights  Agreement")and  a Second Amended and Restated  Investor Rights
Agreement in substantially  the form attached hereto as Exhibit B-3 (the "Second
Amended  and  Restated  Investor  Rights  Agreement"),  the  performance  of all
obligations  of the Company  hereunder and  thereunder,  and the  authorization,
sale, issuance and delivery of the Series A Preferred Stock being sold hereunder
and the  Conversion  Shares  issuable upon  conversion of the Series A Preferred
Stock has been taken or will be taken prior to the Closing or, in respect of the
Series A Preferred  Stock and  Conversion  Stock to be issued or issuable at the
Subsequent Closing, the Subsequent Closing. This Agreement,  the Investor Rights
Agreement,  and,  when  executed,  the  Amended  and  Restated  Investor  Rights
Agreement  and the  Second  Amended  and  Restated  Investor  Rights  Agreement,
constitute valid and legally binding obligations of the Company,  enforceable in
accordance  with their  respective  terms,  except (i) as limited by  applicable
bankruptcy,  insolvency,  reorganization,  moratorium  and other laws of general
application  affecting  enforcement of creditors'  rights  generally and (ii) as
limited by laws relating to the availability of specific performance, injunctive
relief or other equitable remedies.

                  2.5 Valid Issuance of Preferred Stock. Assuming receipt of all
stockholder  approvals  described in Section 2.5 of the Schedule of  Exceptions,
the Series A Preferred Stock that is being purchased by the Investors hereunder,
when issued,  sold and delivered in accordance  with the terms of this Agreement
for the consideration  expressed herein, will be duly and validly issued,  fully
paid and nonassessable and will be free of restrictions on transfer,  other than
restrictions  on transfer  (a) under this  Agreement,  the Amended and  Restated
Investor  Rights  Agreement and the Second Amended and Restated  Investor Rights
Agreement,  (b) under  applicable  state  and  federal  securities  laws and (c)
otherwise imposed as a result of actions taken by the Investors.  The Conversion
Shares have been duly and validly  reserved for issuance  and,  upon issuance in
accordance  with the  terms of the  First  Restated  Certificate  or the  Second
Restated Certificate, as applicable, will be duly and validly issued, fully paid
and  nonassessable  and will be free of  restrictions  on  transfer,  other than
restrictions  on transfer  (a) under this  Agreement,  the Amended and  Restated
Investor  Rights  Agreement and the Second Amended and Restated  Investor Rights
Agreement,  (b) under  applicable  state  and  federal  securities  laws and (c)
otherwise imposed as a result of actions taken by the Investors.

                  2.6  Governmental  Consents.  No consent,  approval,  order or
authorization of, or registration,  qualification,  designation,  declaration or
filing with, any federal,  state or local governmental  authority on the part of
the Company is required in connection with the  consummation of the transactions
contemplated by this Agreement, except for (i) such consents, approvals, orders,
authorizations, registrations, qualifications, designations,

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declarations  or filings  which are not  required  to be  obtained  prior to the
Closing and such consents,  approvals,  orders,  authorizations,  registrations,
qualifications,  designations, declarations or filings which are not required to
be  obtained  prior to the  Subsequent  Closing,  (ii) the  filing  of the First
Restated Certificate and/or the Second Restated Certificate, as applicable, with
the  Secretary  of State of the State of  Delaware,  (iii) the  filing  with The
Nasdaq Stock Market,  Inc.  ("Nasdaq") of an  application to list the Conversion
Shares and (iv) such filings as are required pursuant to applicable  federal and
state  securities laws and blue sky laws,  which filings will be effected within
the required statutory period.

                  2.7  Offering.  Subject in part to the truth and  accuracy  of
each Investor's  representations  set forth in Section 3 of this Agreement,  the
offer,  sale and issuance of the Series A Preferred Stock and Conversion  Shares
as contemplated by this Agreement are exempt from the registration  requirements
of the Securities Act of 1933, as amended (the "Act"),  and the qualification or
registration   requirements   of  applicable   state  blue  sky  laws,  as  such
registration  requirements and laws currently exist. Neither the Company nor any
authorized  agent acting on its behalf will take any action hereafter that would
cause the loss of such exemption.

                  2.8  Litigation.  There  is no  action,  suit,  proceeding  or
investigation  pending  or, to the  Company's  knowledge,  currently  threatened
against the Company that  questions the validity of this  Agreement,  the Merger
Agreement,  the Asset Purchase  Agreement,  the Managed  Services  Agreement (as
defined  below) or the  Investor  Rights  Agreement,  the Amended  and  Restated
Investor  Rights  Agreement or the Second Amended and Restated  Investor  Rights
Agreement,  or the right of the  Company  to enter  into such  agreements  or to
consummate the  transactions  contemplated  hereby,  or that would reasonably be
expected  to result,  either  individually  or in the  aggregate,  in a Material
Adverse Effect or in any change in the current equity  ownership of the Company.
Neither the Company nor any  Operating  Subsidiary  is a party or subject to the
provisions of any order,  writ,  injunction,  judgment or decree of any court or
government agency or instrumentality.

                  2.9 Asset Purchase  Agreement and Managed Services  Agreement.
The Company has delivered to counsel to the Investors  true and complete  copies
of the Managed  Services  Agreement,  dated as of August 1, 2007, by and between
the Company and Stellar Nordia Services LLC, a Nevada limited  liability company
(the  "Managed  Services  Agreement"  and,  together  with  the  Asset  Purchase
Agreement, the Merger Agreement and the documents referenced in any of the Asset
Purchase  Agreement,  the Merger  Agreement  or the Managed  Services  Agreement
pertaining to the acquisitions described in the Asset Purchase Agreement and the
Merger Agreement, the "Operative Agreements").  All corporate action on the part
of the Company, its directors and stockholders  necessary for the authorization,
execution  and  delivery  by the  Company of the  Operative  Agreements  and the
performance of all obligations of the Company  thereunder has been taken or will
be taken  prior to the  closing  provided  for in the Asset  Purchase  Agreement
(other  than  corporate  actions  required  with  respect  to  the  transactions
contemplated by the Merger  Agreement,  which will be taken prior to the closing
provided for in the Merger Agreement). The Operative Agreements will constitute,
when executed, valid and legally binding obligations of the Company, and will be
enforceable in accordance with their respective terms,  except (i) as limited by
applicable bankruptcy, insolvency, reorganization,  moratorium and other laws of
general application affecting enforcement of creditors' rights

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generally and (ii) as limited by laws relating to the  availability  of specific
performance,   injunctive  relief  or  other  equitable  remedies.  No  consent,
approval,   order  or   authorization   of,  or   registration,   qualification,
designation,   declaration  or  filing  with,   any  federal,   state  or  local
governmental authority on the part of the Company is required in connection with
the consummation of the transactions  contemplated by the Operative  Agreements,
except as described in the Asset Purchase  Agreement,  the Merger  Agreement and
the respective Schedules thereto as of the date hereof.

                  2.10  Intellectual  Property.  Except  as  would  not  have  a
Material Adverse Effect:

                        (a) To its  knowledge,  the Company  and each  Operating
Subsidiary  owns  sufficient  right,  title  and  interest  in  and  to,  or has
sufficient  right to use  pursuant to a valid  license,  option,  assignment  or
agreement,  all of the  Intellectual  Property Rights (as defined below) used by
them and which the Company  believes  are  necessary  for the  operation  of the
business of the Company and each  Operating  Subsidiary as presently  conducted,
and the lack of which would  conflict  with or infringe  the rights of any third
party,  except for such items as have yet to be  conceived  or developed or that
are expected to be available for licensing on reasonable  terms. The Company and
each Operating  Subsidiary has taken reasonable  actions to maintain and protect
the confidentiality of Intellectual  Property Rights consisting of trade secrets
that it owns. The Intellectual Property Rights that the Company or any Operating
Subsidiary owns, consisting of patents,  copyrights,  trademarks,  service marks
and trade names, do not, to the Company's  knowledge,  conflict with or infringe
upon  the  rights  of third  parties,  except  for such  items as have yet to be
conceived or developed  or that are  expected to be available  for  licensing on
reasonable terms.  Since January 1, 2006, there have been no written claims made
against  the  Company or any  subsidiary  asserting  the  invalidity,  misuse or
unenforceability  of any  Intellectual  Property  Rights that the Company or any
subsidiary owns and, to the Company's knowledge,  there are no valid grounds for
the same.  Since  January 1, 2006,  neither the Company nor any  subsidiary  has
received any  communications  alleging  that the Company or any  subsidiary  has
violated,  infringed or misappropriated any Intellectual  Property Rights of any
other person or entity. To the Company's knowledge,  neither the Company nor any
subsidiary  is  violating,   infringing  or  misappropriating  the  Intellectual
Property  Rights of any other person or entity.  Since  January 1, 2006,  to the
Company's  knowledge,  no third  party  has  interfered  with,  infringed  upon,
violated,  misappropriated,  or  otherwise  come into  conflict  with any of the
Company's or any of its Operating Subsidiary's  Intellectual Property Rights, or
of any right of any third  party  (to the  extent  licensed  by or  through  the
Company or its  Operating  Subsidiaries),  or breached  any license or agreement
involving  Intellectual  Property Rights. Except as set forth on the Schedule of
Exceptions,  the  Company has not brought  any  action,  suit or  proceeding  or
asserted any claim against any person or entity  related to the  foregoing.  The
Company is not aware that any of its  employees is obligated  under any contract
(including licenses, covenants or commitments of any nature) or other agreement,
or  subject  to any  judgment,  decree or order of any  court or  administrative
agency,  that would interfere with the use of his or her best efforts to promote
the interests of the Company or that would  prevent the employee from  assigning
his/her inventions to the Company.

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<PAGE>

                        (b)  Neither  the   execution   nor   delivery  of  this
Agreement,  the  Operative  Agreements  or the Investor  Rights  Agreement,  the
Amended  and  Restated  Investor  Rights  Agreement  or the Second  Amended  and
Restated  Investor  Rights  Agreement,  nor  the  carrying  on of the  Company's
business by the employees of the Company,  nor the employment of any employee of
the Company,  will,  to the  Company's  knowledge,  conflict with or result in a
breach of the terms, conditions or provisions of, or constitute a default under,
any contract,  covenant or instrument  under which any of such  employees is now
obligated,  including  but not  limited  to,  any  employment  contract,  patent
disclosure  agreement,  confidentiality  agreement  or  any  other  contract  or
agreement relating to the relationship of any such employee with the Company.

                        (c)  For  purposes  of  this  Agreement,   "Intellectual
Property Rights" means all (i) patents, patent applications,  patent disclosures
and inventions, (ii) trademarks, service marks, trade names, logos and corporate
names  and  registrations  and  applications  for  registration  thereof,  (iii)
copyrights   (registered  and   unregistered)   and   copyrightable   works  and
registrations  and applications for  registration  thereof,  (iv) mask works and
registrations and applications for registration  thereof, (v) computer software,
data,  databases  and  documentation  thereof,  (vi)  trade  secrets  and  other
confidential  information  (including,   without  limitation,  ideas,  formulas,
compositions,  inventions (whether patentable or unpatentable and whether or not
reduced to  practice),  know-how,  manufacturing  and  production  processes and
techniques,  research and  development  information,  drawings,  specifications,
designs,  plans,  proposals,  technical data,  financial and marketing plans and
customer  and  supplier  lists and  information)  and (vii)  other  intellectual
property  rights.  As used in this  Agreement,  the  phrases  "to the  Company's
knowledge"  and "the Company is not aware" or any similar  expression  or phrase
refers to the actual  knowledge  of the  executive  officers of the Company (and
does not include any constructive or imputed notice of any information).

                  2.11 Compliance with Other Instruments.  The Company is not in
violation  of any  provision  of its  certificate  of  incorporation  or Bylaws.
Neither  the  Company  nor  any  of  its  subsidiaries  is in  violation  of any
instrument,  judgment,  order,  writ,  decree  or  contract,  statute,  rule  or
regulation to which the Company or any  subsidiary is subject and a violation of
which would reasonably be expected to result in a Material  Adverse Effect.  The
execution,  delivery and performance of this Agreement, the Operative Agreements
and the Investor  Rights  Agreement,  the Amended and Restated  Investor  Rights
Agreement and the Second Amended and Restated Investor Rights Agreement, and the
consummation of the transactions contemplated hereby and thereby will not result
in any such violation, or be in conflict with or constitute, with or without the
passage of time and giving of notice, either a default under any such provision,
instrument,  judgment,  order, writ, decree or contract or an event that results
in the  creation  of any lien,  charge  or  encumbrance  upon any  assets of the
Company or any subsidiary or the suspension,  revocation, impairment, forfeiture
or  nonrenewal  of any  material  permit,  license,  authorization  or  approval
applicable to the Company or any subsidiary, their business or operations or any
of their assets or properties,  other than conflicts,  defaults or other results
which would not reasonably be expected to result in a Material Adverse Effect.

                  2.12 Agreements; Action.

                                      -8-
<PAGE>

                      (a) Except for agreements explicitly  contemplated hereby,
there are no agreements, written or oral, between the Company and any subsidiary
and any of their officers, directors or affiliates.

                      (b) There are no agreements, understandings,  instruments,
contracts,  proposed transactions,  judgments, orders, writs or decrees to which
the Company or any  subsidiary  is a party or by which any of them is bound that
may involve the license of any Intellectual Property Rights or other proprietary
right to or from the Company  (other than licenses  entered into in the ordinary
course of business).

                      (c) There are no agreements, commitments,  understandings,
instruments,  contracts,  proposed  transactions,  judgments,  orders,  writs or
decrees to which the Company or any  subsidiary  is a party or by which they are
bound that may involve (i) obligations (contingent or otherwise), or payments to
the Company or any subsidiary, in excess of $250,000, other than obligations of,
or payments to, the Company or any subsidiary  arising from  agreements  entered
into  in  the  ordinary  course  of  business,  or  (ii)  provisions  materially
restricting  the  development,  manufacture  or  distribution  of the  Company's
products  or  services  (collectively,   "Material  Contracts").   The  Material
Contracts  are valid  and in full  force and  effect as to the  Company  and any
Operating  Subsidiary,  and, to the  Company's  knowledge,  to the other parties
thereto.

                      (d) With the exception of (i)  indebtedness of the Company
and its  subsidiaries  under that certain Credit Agreement dated as of August 1,
2007 (the "Credit Agreement") by and among the Company, Clearlake Capital Group,
LP, as Administrative  Agent and Collateral Agent and the Lenders party thereto,
and (ii) the  indebtedness  contemplated  by that  certain  Amended and Restated
First Lien Debt  Commitment  Letter of even date  herewith (the "First Lien Debt
Commitment  Letter")  and that  certain  Amended and  Restated  Second Lien Debt
Commitment  Letter of even  date  herewith  (the  "Second  Lien Debt  Commitment
Letter"),  between the  Company  and  Clearlake  Capital  Group,  LP (the Credit
Agreement,  First Lien Debt  Commitment  Letter and Second Lien Debt  Commitment
Letter,  collectively,  the "Debt  Financings"),  neither  the  Company  nor any
subsidiary has  outstanding  any  indebtedness  for money borrowed  (which,  for
clarity,  the parties  agree does not include  accounts  payables or other trade
payables,  capital leases or accrued  expenses) in excess of $250,000 or, in the
case of  indebtedness  for money borrowed  individually  less than $250,000,  in
excess of $5,000,000 in the aggregate,  other than  liabilities  incurred in the
ordinary course of business.

                      (e) For the purposes of subsections (a) and (b) above, all
indebtedness,  liabilities, agreements,  understandings,  instruments, contracts
and proposed transactions involving the same person or entity (including persons
or entities the Company has reason to believe are affiliated therewith) shall be
aggregated for the purpose of meeting the  individual  minimum dollar amounts of
such subsections.

                  2.13 Related Party Transactions.  Since the filing of the last
SEC Report (as defined  below),  there have been no related  party  transactions
that would be  required  to be  disclosed  in the SEC  Reports  pursuant to Item
404(a) of the SEC's  Regulation  S-K that have not been so  disclosed in the SEC
Reports.

                                      -9-
<PAGE>

                  2.14 SEC Filings; Financial Statements.

                       (a) The  Company  has timely  filed all reports and proxy
statements  (including  all  information  incorporated  therein,  amendments and
supplements thereto) required to be filed by the Company with the Securities and
Exchange  Commission (the "SEC") since January 1, 2005 (all reports filed by the
Company under the Securities  Exchange Act of 1934, and the applicable rules and
regulations   promulgated  thereunder  since  January  1,  2006,  including  any
amendments  thereto,  collectively,  the "SEC Reports").  As of their respective
dates, the SEC Reports  complied in all material  respects with the requirements
of the Securities Exchange Act of 1934, and the applicable rules and regulations
promulgated  thereunder.  As of the time of filing with the SEC, none of the SEC
Reports so filed contained any untrue statement of a material fact or omitted to
state any material fact  required to be stated  therein or necessary in order to
make the statements  therein, in the light of the circumstances under which they
were made, not misleading.

                       (b) The audited consolidated  financial statements of the
Company  (including any related notes thereto)  included in the SEC Reports (the
"Year-End  Statements") have been prepared in accordance with generally accepted
accounting  principles  applied on a  consistent  basis  throughout  the periods
involved (except as may be indicated in the notes thereto) and fairly present in
all material respects the consolidated financial position of the Company and its
subsidiaries  at the respective  dates thereof and the  consolidated  results of
operations,  cash flows and changes in  stockholders'  equity of the Company and
its subsidiaries for the periods indicated. The unaudited consolidated financial
statements of the Company  (including any related notes thereto) for all interim
periods included in the SEC Reports (together with the Year-End Statements,  the
"Financial Statements") have been prepared in accordance with generally accepted
accounting  principles  applied on a  consistent  basis  throughout  the periods
involved (except as may be indicated in the notes thereto) and fairly present in
all material respects the consolidated financial position of the Company and its
subsidiaries at of the respective dates thereof and the consolidated  results of
operations,  cash flows and changes in  stockholders'  equity of the Company and
its  subsidiaries  for the periods  indicated  (subject to normal and  recurring
period-end adjustments that have not been and are not expected to be material to
the Company and its subsidiaries taken as a whole).

                       (c) To the  Company's  knowledge,  except as set forth in
the  Financial   Statements,   the  Schedule  of  Exceptions  or  the  Operative
Agreements,  or as  contemplated  by the Debt  Financings,  the  Company  has no
material  liabilities,  contingent  or  otherwise,  other  than (a)  liabilities
incurred in the ordinary course of business subsequent to March 31, 2007 and (b)
liabilities  or  obligations  under  contracts and  commitments  incurred in the
ordinary course of business or otherwise not required under  generally  accepted
accounting  principles  to be reflected in the Financial  Statements.  Except as
disclosed in the Financial Statements, neither the Company nor any subsidiary is
a guarantor or  indemnitor  of any  indebtedness  of any other  person,  firm or
corporation,  other than the Company or any subsidiary.  The Company maintains a
system of accounting  established and  administered in accordance with generally
accepted accounting principles.

                                      -10-
<PAGE>

                  2.15  Changes.  Since  March  31,  2007,  except  as would not
reasonably  be  expected  to  have a  Material  Adverse  Effect  and  except  as
contemplated by the  transactions  associated with the Operative  Agreements and
the Debt Financings, there has not been:

                  (a) any change in the assets, liabilities, financial condition
or operating results of the Company and its subsidiaries, taken as a whole, from
that  reflected  in the  Financial  Statements,  except  changes in the ordinary
course of business;

                  (b) any material change or amendment to a material contract or
arrangement  by which the Company or any of its assets or properties is bound or
subject;

                  (c) any sale,  assignment,  pledge, grant of security interest
or transfer  of any  patents,  trademarks,  copyrights,  trade  secrets or other
intangible assets;

                  (d) any  resignation  or  termination of employment of any key
employee of the Company and its Operating Subsidiaries;

                  (e) any mortgage,  pledge, transfer of a security interest in,
or lien,  created by the Company or any  subsidiary,  with respect to any of its
material properties or assets, except liens for taxes not yet due or payable; or

                  (f)  any  agreement  or  commitment  by  the  Company  or  any
subsidiary to do any of the things described in this Section 2.15.

                  2.16 Tax  Returns,  Payments  and  Elections.  The Company has
timely filed all tax returns (federal,  state and local) required to be filed by
it, which tax returns are true and correct in all material respects. The Company
has paid all taxes and other  assessments due, if any, except those contested by
it in good faith that are listed in the  Schedule of  Exceptions.  Except as set
forth in the Schedule of  Exceptions,  none of the Company's  federal income tax
returns  and  none of its  state  income  or  franchise  tax or sales or use tax
returns has ever been audited by  governmental  authorities  and, as of the date
hereof,  to  the  Company's  knowledge,  there  is  no  such  audit  pending  or
threatened.  Since  March 31,  2007,  the Company  has not  incurred  any taxes,
assessments  or  governmental  charges  other  than in the  ordinary  course  of
business and the Company has made  adequate  provisions  on its books of account
for  all  taxes,  assessments  and  governmental  charges  with  respect  to its
business,  properties  and  operations  for such  period.  Except  as would  not
constitute a Material Adverse Effect, the Company has withheld or collected from
each payment made to each of its employees,  the amount of all taxes (including,
but not limited to, federal income taxes,  Federal  Insurance  Contribution  Act
taxes and  Federal  Unemployment  Tax Act  taxes)  required  to be  withheld  or
collected therefrom,  and has paid the same to the proper tax receiving officers
or authorized depositories.

                  2.17 Permits. The Company and its Operating  Subsidiaries have
all franchises,  permits,  licenses and any similar authority  necessary for the
conduct of their respective  businesses as now being conducted by them, the lack
of which would result in a Material Adverse Effect.  Neither the Company nor any
Operating  Subsidiary  is in default in any material  respect  under any of such
franchises,  permits,  licenses or other  similar  authority.  To the  Company's
knowledge, neither the Company nor any Operating Subsidiary has received

                                      -11-
<PAGE>

notification  of proceedings  relating to revocation or modification of any such
franchises, permits, licenses or other similar authority.

                  2.18   Environmental   and  Safety  Laws.   To  the  Company's
knowledge,  the Company and its  subsidiaries  are in compliance in all material
respects with all  applicable  statutes,  laws and  regulations  relating to the
environment or occupational  health and safety and, to the Company's  knowledge,
no  material  expenditures  are or will be  required in order to comply with any
such existing statute, law or regulation. Neither the Company nor any subsidiary
has  received  any written  communication  from a  governmental  authority  with
respect to any material violation of such statutes, laws or regulations.

                  2.19  Disclosure.  Neither this  Agreement  (including all the
exhibits  and  schedules  hereto)  nor any  certificates  made or  delivered  in
connection herewith contains any untrue statement of a material fact or omits to
state a material  fact  necessary to make the  statements  herein or therein not
misleading in light of the circumstances under which they were made.

                  2.20 Title to Property  and Assets.  The  property  and assets
that the  Company  or any  subsidiary  owns are  owned  by the  Company  or that
subsidiary  free and clear of all  mortgages,  liens,  loans  and  encumbrances,
except (i) for statutory liens for the payment of current taxes that are not yet
delinquent,  (ii) for liens,  encumbrances and security  interests that arise in
the ordinary course of business and that do not secure indebtedness for borrowed
money (which, for clarity,  the parties agree does not include accounts payables
or other trade  payables,  capital  leases or accrued  expenses)  or  guarantees
thereof,  (iii)  defects  in  title,  none  of  which,  individually  or in  the
aggregate,  materially impair the Company's or the subsidiary's ownership or use
of such property or assets,  and (iv) liens created in connection  with the Debt
Financings.  With  respect  to  the  property  and  assets  the  Company  or any
subsidiary  leases,  the  Company  or  the  subsidiary,  as  applicable,  is  in
compliance  with such leases except where the failure to be in compliance  would
not constitute a Material  Adverse  Effect and, to its knowledge,  holds a valid
leasehold interest free of any liens, claims or encumbrances, subject to clauses
(i), (ii) and (iii).

                  2.21  Employee  Benefit  Plans.  The Company  does not have or
contribute  to any  "employee  benefit  plan"  as such  term is  defined  in the
Employee  Retirement  Income  Security Act of 1974  ("ERISA") that is subject to
Title IV of ERISA or the funding  requirements  of Section  412 of the  Internal
Revenue Code of 1986, as amended.

                  2.22 Labor Agreements and Actions. Neither the Company nor any
subsidiary  is bound by or subject to any contract,  commitment  or  arrangement
with any labor  union.  Except as  disclosed  in the SEC  Reports,  neither  the
Company nor any  subsidiary  is a party to or bound by any  currently  effective
material  employment  contract,  deferred  compensation  agreement,  bonus plan,
incentive  plan,  profit  sharing plan,  retirement  agreement or other employee
compensation  agreement.  To the  Company's  knowledge,  the  Company  and  each
subsidiary has complied in all material  respects with all applicable  state and
federal equal employment opportunity and other laws related to employment.

                  2.23  Insurance.  The Company and its  Operating  Subsidiaries
have in full  force and  effect  the  insurance  policies  listed on  Schedule D
hereto. There are no claims in

                                      -12-
<PAGE>

excess of  $100,000 in the  aggregate  pending  against  the  Company  under any
insurance  policies  currently in effect,  or by the Company  against any of its
insurance  carriers  and  covering  the  property,  business or employees of the
Company,  and  all  premiums  due  and  payable  with  respect  to the  policies
maintained by the Company have been paid.

                  2.24 Fees.  Except as set forth in the Schedule of Exceptions,
the Company  has no  contract,  arrangement  or  understanding  with any broker,
finder or similar agent with respect to the  transactions  contemplated  by this
Agreement.

            3.  Representations  and Warranties of the Investors.  Each Investor
severally and not jointly hereby represents, warrants and covenants that:

                  3.1 Authorization.  Such Investor has full power and authority
to enter into this  Agreement,  the Investor Rights  Agreement,  the Amended and
Restated  Investor Rights Agreement and the Second Amended and Restated Investor
Rights  Agreement,  and each  such  agreement  executed  and  delivered  by such
Investor  constitutes its valid and legally binding  obligation,  enforceable in
accordance  with its terms,  except (a) as  limited  by  applicable  bankruptcy,
insolvency,  reorganization,  moratorium  and other laws of general  application
affecting  enforcement of creditors'  rights  generally,  (b) as limited by laws
relating to the availability of specific performance, injunctive relief or other
equitable  remedies,  and  (c)  to the  extent  the  indemnification  provisions
contained in the Investor Rights  Agreement,  the Amended and Restated  Investor
Rights  Agreement and the Second Amended and Restated  Investor Rights Agreement
may be limited by applicable federal or state securities laws.

                  3.2 Purchase Entirely for Own Account.  This Agreement is made
with such  Investor  in  reliance  upon such  Investor's  representation  to the
Company,  which by such  Investor's  execution of this  Agreement  such Investor
hereby  confirms,  that the  Series A  Preferred  Stock to be  received  by such
Investor  and  the   Conversion   Shares   issuable  upon   conversion   thereof
(collectively,  the  "Securities")  will be  acquired  for  investment  for such
Investor's  own account,  not as a nominee or agent,  and not with a view to the
resale  or  distribution  of any part  thereof,  and that such  Investor  has no
present  intention  of  selling,  granting  any  participation  in or  otherwise
distributing  the same.  By executing  this  Agreement,  such  Investor  further
represents that such Investor does not have any contract, undertaking, agreement
or arrangement with any person to sell, transfer or grant participations to such
person or to any third person, with respect to any of the Securities.

                  3.3 Disclosure of Information.  Such Investor  believes it has
received all the information it considers  necessary or appropriate for deciding
whether  to  purchase  the  Series A  Preferred  Stock.  Such  Investor  further
represents  that it has had an opportunity to ask questions and receive  answers
from the  Company  regarding  the terms and  conditions  of the  offering of the
Series A Preferred Stock and the business,  properties,  prospects and financial
condition of the Company. The foregoing,  however,  does not limit or modify the
representations  and warranties of the Company in Section 2 of this Agreement or
the right of the Investors to rely thereon.

                  3.4  Investment  Experience.  Such  Investor is an investor in
public  companies with relatively low market  capitalizations  and  acknowledges
that it is able to fend for

                                      -13-
<PAGE>

itself, can bear the economic risk of its investment, and has such knowledge and
experience in financial or business matters that it is capable of evaluating the
merits and risks of the  investment  in the Series A Preferred  Stock.  If other
than an individual,  such Investor also represents it has not been organized for
the purpose of acquiring the Series A Preferred Stock.

                  3.5  Accredited  Investor.  Such  Investor  is an  "accredited
investor"  within the meaning of SEC Rule 501 of  Regulation  D, as presently in
effect.

                  3.6 Restricted Securities.  Such Investor understands that the
Securities it is purchasing are  characterized as "restricted  securities" under
the federal securities laws inasmuch as they are being acquired from the Company
in a transaction  not  involving a public  offering and that under such laws and
applicable  regulations such Securities may be resold without registration under
the Act only in certain  limited  circumstances.  In the absence of an effective
registration  statement  covering the Securities or an available  exemption from
registration  under the Act, the Securities must be held  indefinitely.  In this
connection,  such Investor  represents that it is familiar with SEC Rule 144, as
presently in effect, and understands the resale limitations  imposed thereby and
by the Act,  including  without  limitation  the Rule 144 condition that current
information about the Company be available to the public.

                  3.7 Further  Limitations  on  Disposition.  Without in any way
limiting the  representations  set forth above, such Investor further agrees not
to make any disposition of all or any portion of the Securities unless and until
the  transferee has agreed in writing for the benefit of the Company to be bound
by this Section 3 and the Investor  Rights  Agreement,  the Amended and Restated
Investor  Rights  Agreement or the Second Amended and Restated  Investor  Rights
Agreement, as applicable, provided and to the extent that this Section 3 and the
Investor Rights Agreement, the Amended and Restated Investor Rights Agreement or
the Second Amended and Restated  Investor Rights  Agreement are then applicable,
and:

                      (a) There is then in effect a registration statement under
the Act covering  such  proposed  disposition  and such  disposition  is made in
accordance with such registration statement; or

                      (b) (i) Such  Investor  shall have notified the Company of
the proposed  disposition  and shall have  furnished the Company with a detailed
statement of the circumstances surrounding the proposed disposition, and (ii) if
requested by the Company, such Investor shall have furnished the Company with an
opinion of counsel, reasonably satisfactory to the Company that such disposition
will not require registration of such shares under the Act.

      Notwithstanding  the provisions of subsections  (a) and (b) above, no such
registration  statement or opinion of counsel  shall be necessary for a transfer
by an Investor to any affiliated  venture capital fund or investment fund, or by
an Investor that is a partnership to a partner of such  partnership or a retired
partner of such partnership who retires after the date hereof,  or to the estate
of any such  partner  or  retired  partner  or the  transfer  by  gift,  will or
intestate  succession  of any  partner to his or her spouse or to the  siblings,
lineal  descendants  or ancestors  of such partner or his or her spouse,  if the
transferee  agrees in  writing  to be  subject  to the terms  hereof to the same
extent as if he or she were an original Investor hereunder.

                                      -14-
<PAGE>

                  3.8 Legends. It is understood that the certificates evidencing
the Securities may bear one or all of the following legends:

                      (a)  "THESE   SECURITIES   HAVE  NOT  BEEN  REGISTERED  OR
QUALIFIED  UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  OR THE SECURITIES LAWS
OF ANY STATE.  THEY MAY NOT BE SOLD,  OFFERED FOR SALE,  PLEDGED OR HYPOTHECATED
UNLESS  (A) THERE IS AN  EFFECTIVE  REGISTRATION  STATEMENT  UNDER  SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS,  COVERING ANY SUCH TRANSACTION  INVOLVING SAID
SECURITIES,  (B) THE COMPANY RECEIVES AN OPINION OF COUNSEL  SATISFACTORY TO THE
COMPANY STATING THAT SUCH  TRANSACTION IS EXEMPT FROM  REGISTRATION,  OR (C) THE
COMPANY  OTHERWISE  SATISFIES  ITSELF  THAT  SUCH  TRANSACTION  IS  EXEMPT  FROM
REGISTRATION."

                      (b) Any legend required by applicable laws.

                  3.9  Tax  Advisors.  Such  Investor  has  reviewed  with  such
Investor's  own tax advisors the federal,  state and local tax  consequences  of
this investment,  where  applicable,  and the transactions  contemplated by this
Agreement.  Each such Investor is relying solely on such advisors and not on any
statements  or  representations  of  the  Company  or  any  of  its  agents  and
understands  that each such Investor (and not the Company)  shall be responsible
for  such  Investor's  own tax  liability  that may  arise  as a result  of this
investment or the transactions contemplated by this Agreement.

                  3.10 Legal  Advisors.  Such  Investor  acknowledges  that such
Investor has had the opportunity to review this Agreement,  the exhibits and the
schedules  attached hereto and the transactions  contemplated by this Agreement,
the Debt Financings,  the Asset Purchase Agreement and the Merger Agreement with
such Investor's own legal counsel.  Each such Investor is relying solely on such
Investor's  legal  counsel  and,  except  with  respect  to the  opinions  to be
delivered to the Investors  pursuant to Sections 5.5 and 8.4 hereof,  not on any
statements or  representations  of the Company or any of the  Company's  agents,
including Lowenstein Sandler PC or Chadbourne & Parke LLP, for legal advice with
respect to this investment or the transactions contemplated by this Agreement.

            4.  Conditions  of  Investors'  and  Company's  Obligations  at  the
Closing.  The  obligations of each Investor and the Company under Section 1.1(c)
of this Agreement are subject to the  satisfaction  or, where  permitted by law,
waiver on or before the Closing of each of the following conditions:

                  4.1 Stockholder  Approval.  At a duly convened  meeting of the
stockholders of the Company, the stockholders of the Company shall have approved
(i) the First Restated Certificate,  (ii) the issuance of the Series A Preferred
Stock to be issued at the Closing and the underlying  Conversion  Shares,  (iii)
the change of control  involved in issuing  the Series A Preferred  Stock to the
Investors  hereunder,  (iv) the Asset Purchase  Agreement and the acquisition of
the TRS Business and (v) such other matters as shall be required by the rules of
Nasdaq.

                                      -15-
<PAGE>

                  4.2 Asset  Purchase.  The  closing  contemplated  by the Asset
Purchase  Agreement shall have been  consummated  concurrently  with the Closing
hereunder.

                  4.3  No  Prohibition.   No  law,  statute,  rule,  regulation,
executive order, decree,  ruling,  injunction or other order (whether temporary,
preliminary  or permanent)  shall have been  enacted,  entered,  promulgated  or
enforced by any United  States or state court or any  governmental  entity which
prohibits,   restrains  or  enjoins  the   consummation   of  the   transactions
contemplated hereunder.

                  4.4 Qualifications. All authorizations,  approvals or permits,
if any, of any governmental authority or regulatory body of the United States or
of any state that are required in connection  with the lawful  issuance and sale
of the Series A Preferred  Stock in the Closing  pursuant to this  Agreement  or
that are required to consummate the closing under the Asset  Purchase  Agreement
shall have been duly  obtained and shall be  effective as of the Closing,  other
than such  authorizations,  approvals or permits or other  filings  which may be
timely made after the Closing or which,  if not obtained,  would not  materially
adversely affect the Company upon  consummation of the closings  contemplated by
this Agreement, the Asset Purchase Agreement and the Debt Financings.

                  4.5 Listing.  The  Conversion  Shares  underlying the Series A
Preferred  Stock to be issued at the  Closing,  and the  shares of Common  Stock
underlying  the  Series A  Preferred  Stock  issued  at the $1.5  million  Stock
Purchase Agreement closing, shall have been authorized for listing for quotation
on Nasdaq, subject to official notice of issuance.

                  4.6 Restated Certificate. The First Restated Certificate shall
have been filed with the  Secretary of State of the State of Delaware;  provided
that, if the Subsequent  Closing  occurs  simultaneously  with the Closing,  the
Second Restated Certificate,  rather than the First Restated Certificate,  shall
have been filed with the Secretary of State of the State of Delaware.

            5.  Conditions  of  Investors'   Obligations  at  the  Closing.  The
obligations  of each Investor  under Section  1.1(c) of this  Agreement are also
subject to the  satisfaction or, where permitted by law, waiver on or before the
Closing of each of the following conditions:

                  5.1  Representations  and Warranties.  The representations and
warranties of the Company set forth in this Agreement  shall be true and correct
in all respects (without giving effect to any  "materiality,"  "Material Adverse
Effect"  or  similar  qualifiers  contained  in  any  such  representations  and
warranties,  other  than  any  qualifiers  contained  in any  representation  or
warranty  requiring  disclosure in the Schedule of Exceptions of a list of items
qualified as to  materiality) as of the Closing as though made on and as of such
date (unless any such  representation  or warranty is made only as of a specific
date,  in which  event such  representation  and  warranty  shall be so true and
correct  as of such  specified  date),  except  where  the  failure  of any such
representations and warranties to be so true and correct, in the aggregate,  has
not had,  and would not  reasonably  be  expected  to have,  a Material  Adverse
Effect.

                                      -16-
<PAGE>

                  5.2 Performance. The Company shall have performed and complied
in all  material  respects  with  all  agreements,  obligations  and  conditions
contained in this  Agreement  that are required to be performed or complied with
by it on or before the Closing.

                  5.3 Compliance Certificate. The President of the Company shall
deliver to each  Investor  at the  Closing a  certificate  in the form  attached
hereto as Exhibit D stating  that the  conditions  specified in Sections 5.1 and
5.2 have been fulfilled.

                  5.4 Board of  Directors.  The  Company  shall  have  taken all
necessary corporate action such that immediately  following the Closing,  Behdad
Eghbali and two other well respected business people designated by the Investors
shall be elected to the  Company's  board of  directors;  provided  that, if the
Subsequent  Closing occurs  simultaneously  with the Closing,  the Company shall
have taken all necessary  corporate action such that  immediately  following the
Closing,  Behdad Eghbali and one other well respected business person designated
by the Investors shall be elected to the Company's board of directors.

                  5.5  Opinion  of Company  Counsel.  Each  Investor  shall have
received from Lowenstein Sandler PC, counsel for the Company, an opinion,  dated
as of the Closing, substantially in the form attached hereto as Exhibit C.

                  5.6  Secretary's  Certificate.  Investors  shall have received
from the  Company's  Secretary a certificate  in form and  substance  reasonably
satisfactory  to  the  Investors  having  attached  thereto  (a)  the  Company's
Certificate of  Incorporation  as in effect at the time of the Closing,  (b) the
Company's  Bylaws as in effect at the time of the Closing,  and (c)  resolutions
approved  by the  Company's  board of  directors  authorizing  the  transactions
contemplated hereby.

                  5.7 Operative  Agreements.  Since (i) the date hereof,  in the
case of the Operative Agreements related to the transactions contemplated by the
Merger  Agreement,  and (ii)  August 1, 2007 in respect  of all other  Operative
Agreements,  there shall have been no material  amendment of, or material waiver
under,  any of the  Operative  Agreements  other  than  amendments  and  waivers
approved  by  Investors  who have agreed to purchase a majority of the shares of
Preferred  Stock  sold  pursuant  to this  Agreement,  such  approval  not to be
unreasonably  withheld or  delayed.  The  Operative  Agreements,  any  agreement
required to be executed pursuant to any of the Operative Agreements which is not
an exhibit to one or more of the Operative  Agreements and all other proceedings
in connection with the transactions contemplated at the Closing shall be in form
and substance  acceptable to Investors who have agreed to purchase a majority of
the shares of Preferred Stock sold pursuant to this  Agreement,  such acceptance
not to be  unreasonably  withheld or delayed.  Each Investor shall have received
copies of each of the  executed  Operative  Agreements  (to the extent  executed
prior to or at the Closing), including any exhibits and schedules thereto.

                  5.8  Debt   Financing.   All   conditions   precedent  to  the
consummation  of  the  debt  financing  contemplated  by  the  First  Lien  Debt
Commitment  Letter shall have been satisfied,  unless the failure to satisfy any
such condition precedent is due to any act or failure to act by the Investors.

                                      -17-
<PAGE>

                  5.9 Material  Adverse  Effect.  Since August 1, 2007, no event
shall have occurred which shall have had a Material Adverse Effect.

                  5.10 Amendment to Bylaws. The Company's Bylaws shall have been
amended to eliminate all provisions pertaining to a staggered board of directors

            6.  Conditions  of the  Company's  Obligations  at the Closing.  The
obligations  of the Company  under  Sections  1.1(c) of this  Agreement are also
subject to the  satisfaction or, where permitted by law, waiver on or before the
Closing of each of the following conditions:

                  6.1  Representations  and Warranties.  The representations and
warranties  of the  Investors  set  forth  in this  Agreement  shall be true and
correct in all respects (without giving effect to any  "materiality,"  "Material
Adverse Effect" or similar qualifiers  contained in any such representations and
warranties  as of the Closing as though made on and as of such date  (unless any
such  representation  or warranty is made only as of a specific  date,  in which
event such  representation  and warranty shall be so true and correct as of such
specified  date),  except  where the  failure  of any such  representations  and
warranties to be so true and correct,  in the aggregate,  has not had, and would
not reasonably be expected to have, a Material Adverse Effect.

                  6.2  Performance.  The  Investors  shall  have  performed  and
complied  in  all  material  respects  with  all  agreements,   obligations  and
conditions  contained  in this  Agreement  that are  required to be performed or
complied with by it on or before the Closing.

                  6.3 Payment of Purchase Price at Closing.  The Investors shall
have  delivered  to the  Company  the  aggregate  purchase  price  owed  by such
Investors for the Series A Preferred Stock being sold hereunder at the Closing.

                  6.4  Debt   Financings.   The  closing  of  the   transactions
contemplated  by  the  First  Lien  Debt  Commitment   Letter  shall  have  been
consummated concurrently with the Closing hereunder.

            7.  Conditions  of  Investors'  and  Company's  Obligations  at  the
Subsequent Closing.  With respect to the Subsequent Closing,  the obligations of
each Investor and the Company under Section 1.1(d) of this Agreement are subject
to the  satisfaction  or,  where  permitted  by law,  waiver  on or  before  the
Subsequent Closing of each of the following conditions:

                  7.1 Closing. The Closing shall have occurred.

                  7.2 Stockholder  Approval. To the extent required by law, at a
duly convened  meeting of the  stockholders of the Company,  the stockholders of
the Company shall have approved (i) the Second  Restated  Certificate,  (ii) the
issuance of the Series A Preferred Stock to be issued at the Subsequent  Closing
and the  underlying  Conversion  Shares,  (iii)  the  Merger  Agreement  and the
acquisition  of HOVRS and (iv) such other  matters as shall be  required  by the
rules of Nasdaq.

                                      -18-
<PAGE>

                  7.3 Merger.  The closing  contemplated by the Merger Agreement
shall have been consummated concurrently with the Subsequent Closing hereunder.

                  7.4  No  Prohibition.   No  law,  statute,  rule,  regulation,
executive order, decree,  ruling,  injunction or other order (whether temporary,
preliminary  or permanent)  shall have been  enacted,  entered,  promulgated  or
enforced by any United  States or state court or any  governmental  entity which
prohibits,   restrains  or  enjoins  the   consummation   of  the   transactions
contemplated hereunder.

                  7.5 Qualifications. All authorizations,  approvals or permits,
if any, of any governmental authority or regulatory body of the United States or
of any state that are required in connection  with the lawful  issuance and sale
of the Series A  Preferred  Stock in the  Subsequent  Closing  pursuant  to this
Agreement or that are required to  consummate  the closing  contemplated  by the
Merger  Agreement shall have been duly obtained and shall be effective as of the
Subsequent  Closing,  other than such  authorizations,  approvals  or permits or
other filings which may be timely made after the Subsequent Closing or which, if
not obtained, would not materially adversely affect the Company or the Investors
upon  consummation of the closings  contemplated  by this Agreement,  the Merger
Agreement and the Debt Financings.

                  7.6 Listing.  The  Conversion  Shares  underlying the Series A
Preferred  Stock  to be  issued  at  the  Subsequent  Closing  shall  have  been
authorized  for listing for quotation on Nasdaq,  subject to official  notice of
issuance.

            8. Conditions of Investors'  Obligations at the Subsequent  Closing.
The obligations of each Investor under Section 1.1(d) of this Agreement are also
subject to the  satisfaction or, where permitted by law, waiver on or before the
Subsequent Closing of each of the following conditions:

                  8.1  Representations  and Warranties.  The representations and
warranties of the Company set forth in Section 2 of this  Agreement,  other than
those set forth in Sections 2.8, 2.10,  2.12, 2.15, 2.17 and 2.18, shall be true
and  correct  in all  respects  (without  giving  effect  to any  "materiality,"
"Material  Adverse  Effect"  or  similar   qualifiers   contained  in  any  such
representations  and  warranties,  other than any  qualifiers  contained  in any
representation or warranty requiring disclosure in the Schedule of Exceptions of
a list of items  qualified as to  materiality)  as of the Subsequent  Closing as
though made on and as of such date (unless any such  representation  or warranty
is made only as of a  specific  date,  in which  event such  representation  and
warranty shall be so true and correct as of such specified  date),  except where
the  failure  of any  such  representations  and  warranties  to be so true  and
correct, in the aggregate,  has not had, and would not reasonably be expected to
have, a Material Adverse Effect.

                  8.2 Performance. The Company shall have performed and complied
in all  material  respects  with  all  agreements,  obligations  and  conditions
contained in this  Agreement  that are required to be performed or complied with
by it on or before the Subsequent Closing.

                  8.3 Compliance Certificate. The President of the Company shall
deliver to each Investor at the  Subsequent  Closing a  certificate  in the form
attached  hereto as Exhibit D stating that the conditions  specified in Sections
8.1 and 8.2 have been fulfilled.

                                      -19-
<PAGE>

                  8.4  Opinion  of Company  Counsel.  Each  Investor  shall have
received from Lowenstein Sandler PC, counsel for the Company, an opinion,  dated
as of the  Subsequent  Closing,  substantially  in the form  attached  hereto as
Exhibit C.

                  8.5  Secretary's  Certificate.  Investors  shall have received
from the  Company's  Secretary a certificate  in form and  substance  reasonably
satisfactory  to  the  Investors  having  attached  thereto  (a)  the  Company's
Certificate of Incorporation as in effect at the time of the Subsequent Closing,
(b) the Company's Bylaws as in effect at the time of the Subsequent Closing, and
(c)  resolutions  approved by the Company's  board of directors  authorizing the
transactions contemplated hereby.

                  8.6  Debt   Financings.   All  conditions   precedent  to  the
consummation  of  the  debt  financing  contemplated  by  the  First  Lien  Debt
Commitment  Letter and the Second Lien Debt  Commitment  Letter  shall have been
satisfied,  unless the failure to satisfy any such condition precedent is due to
any act or failure to act by the Investors.

                  8.7 Operative  Agreements.  Since the date hereof, there shall
have  been no  material  amendment  of, or  material  waiver  under,  any of the
Operative Agreements other than amendments and waivers approved by Investors who
have  agreed to  purchase  a  majority  of the  shares of  Preferred  Stock sold
pursuant to this  Agreement,  such approval not to be  unreasonably  withheld or
delayed.  The  Operative  Agreements,  any  agreement  required  to be  executed
pursuant to any of the  Operative  Agreements  which is not an exhibit to one or
more of the Operative  Agreements and all other  proceedings in connection  with
the  transactions  contemplated  at the Subsequent  Closing shall be in form and
substance  acceptable to Investors who have agreed to purchase a majority of the
shares of Preferred Stock sold pursuant to this  Agreement,  such acceptance not
to be unreasonably withheld or delayed. Each Investor shall have received copies
of each  of the  executed  Operative  Agreements,  including  any  exhibits  and
schedules thereto.

                  8.8  Merger   Agreement   Conditions.   Each  of  the  closing
conditions set forth in the Merger  Agreement shall have been satisfied  (unless
waived with the consent of  Investors  who have agreed to purchase a majority of
the shares of Preferred Stock sold pursuant to this Agreement,  such consent not
to be unreasonably withheld).

            9. Conditions of the Company's  Obligations.  The obligations of the
Company to the Investors  under this Agreement in connection with the Subsequent
Closing are subject to the satisfaction or, where permitted by law, waiver on or
before  the  Subsequent  Closing  of each of the  following  conditions  by that
Investor:

                  9.1  Representations  and Warranties.  The representations and
warranties  of the  Investors  set  forth  in this  Agreement  shall be true and
correct in all respects (without giving effect to any  "materiality,"  "Material
Adverse Effect" or similar qualifiers  contained in any such representations and
warranties  as of the  Subsequent  Closing as though made on and as of such date
(unless any such  representation or warranty is made only as of a specific date,
in which event such  representation and warranty shall be so true and correct as
of such specified  date),  except where the failure of any such  representations
and warranties to be so

                                      -20-
<PAGE>

true and correct,  in the  aggregate,  has not had, and would not  reasonably be
expected to have, a Material Adverse Effect.

                  9.2  Performance.  The  Investors  shall  have  performed  and
complied  in  all  materials  respects  with  all  agreements,  obligations  and
conditions  contained  in this  Agreement  that are  required to be performed or
complied with by them before the Subsequent Closing.

                  9.3  Payment of  Purchase  Price at  Subsequent  Closing.  The
Investors shall have delivered to the Company the aggregate  purchase price owed
by such  Investors for the Series A Preferred  Stock being sold hereunder at the
Subsequent Closing.

                  9.4  Debt   Financings.   The  closing  of  the   transactions
contemplated  by  the  Second  Lien  Debt  Commitment  Letter  shall  have  been
consummated concurrently with the Subsequent Closing hereunder.

            10. Covenants.

                  10.1  Documents.  Subject to satisfaction of the conditions to
Closing,  the Company and the  Investors  shall execute the Amended and Restated
Investor  Rights  Agreement  at  or  prior  to  the  Closing,   and  subject  to
satisfaction  of the conditions to the Subsequent  Closing,  the Company and the
Investors  shall  execute  the  Second  Amended  and  Restated  Investor  Rights
Agreement at or prior to the Subsequent  Closing;  provided that, if the Closing
and the Subsequent Closing are substantially  simultaneous,  the Company and the
Investors  shall  execute  the  Second  Amended  and  Restated  Investor  Rights
Agreement, rather than the Amended and Restated Investor Rights Agreement, at or
prior to the Closing.

                  10.2  Conduct of Business of the Company  Pending the Closing.
Between  the  date of  this  Agreement  and the  Closing,  except  as  otherwise
contemplated by this Agreement,  the Operative Agreements,  the Debt Financings,
the First Lien Debt Commitment Letter or the Second Lien Debt Commitment Letter,
as disclosed in the SEC Reports  filed prior to the date of this  Agreement,  as
set forth in Section 5.1 of the  Schedule of  Exceptions,  as required by law or
unless  Investors  who have  agreed to  purchase  a  majority  of the  shares of
Preferred  Stock sold  pursuant to this  Agreement  shall  otherwise  consent in
writing (which consent shall not be unreasonably  withheld or delayed),  (i) the
business of the Company and its Operating Subsidiaries shall be conducted in the
ordinary  course  of  business  and  the  Company  shall  use  its  commercially
reasonable efforts to preserve  substantially intact its business  organization,
and material business relationships, and (ii) neither the Company nor any of its
subsidiaries shall:

                      (a)  amend  or  otherwise   change  its   Certificate   of
Incorporation or By-Laws or any similar  governing  instruments  (except for any
subsidiaries that are not Operating Subsidiaries);

                      (b) enter into any agreement  outside the ordinary  course
of business;

                                      -21-
<PAGE>

                      (c) declare,  set aside, make or pay any dividend or other
distribution, payable in cash, stock, property or otherwise, with respect to any
of its capital stock (except for any dividend or distribution by a subsidiary of
the Company to the Company or another wholly owned subsidiary of the Company);

                      (d)  reclassify,   combine,  split,   subdivide,   redeem,
purchase or otherwise acquire any shares of capital stock of the Company (except
for the acquisition of shares in connection  with cashless  exercises of options
and warrants and customary repurchases effected in accordance with the Company's
employee benefit plans);

                      (e) authorize any material new capital  expenditures which
are, in the aggregate, in excess of the Company's capital expenditure budget set
forth on Section 5.1 of the Schedule of Exceptions; or

                      (f) agree to take any of the actions described in Sections
10.2(a) through 10.2(e).

                  10.3  Stockholders  Meeting.  The Company,  acting through its
Board of Directors,  shall (a) as soon as reasonably  practicable  following the
date of this Agreement,  take all action necessary to duly call, give notice of,
convene and hold a meeting of its stockholders (the "Stockholders  Meeting") for
the purpose of obtaining  stockholder approval of the proposals  contemplated by
Sections  4.1 and 7.2  (the  "Company  Proposals"),  (b)  include  in the  Proxy
Statement the  recommendation of the Board of Directors that the stockholders of
the  Company  grant  such  approvals  (the  "Recommendation")  and  (c)  use its
reasonable commercial efforts to obtain such approvals;  provided that the Board
of Directors of the Company may fail to make or may  withdraw,  modify or change
the  Recommendation  and/or may fail to use such efforts if in the absence of an
Alternate Financing  Proposal,  the Board of Directors of the Company determines
in good faith (after having consulted with outside counsel) that such conduct is
required for the Board to comply with its fiduciary duties under applicable law.
Notwithstanding  anything to the contrary  contained in this  Agreement,  unless
this  Agreement is  terminated in  accordance  with Section  11.1,  the Company,
regardless  of whether  the Board of  Directors  of the  Company  has  approved,
endorsed or  recommended  an  Alternate  Financing  Proposal  or has  withdrawn,
modified or amended the  Recommendation,  but in compliance with the DGCL, shall
promptly call, give notice of, convene and hold the Stockholders Meeting as soon
as reasonably  practicable  after the date of this Agreement and will submit the
Company  Proposals  for  approval  by the  stockholders  of the  Company  at the
Stockholders Meeting.

                  10.4  Proxy  Statement.  Promptly  following  the date of this
Agreement,  the Company  shall  prepare and file with the SEC a proxy  statement
describing the Company Proposals (the "Proxy Statement").  The Company shall use
reasonable  commercial  efforts to resolve all SEC comments  with respect to the
Proxy  Statement as promptly as practicable  after receipt  thereof and to cause
the Proxy  Statement in  definitive  form to be cleared by the SEC and mailed to
the  Company's  stockholders  as promptly as  reasonably  practicable  following
filing with the SEC.

                  10.5 Alternate Financing Proposals.

                                      -22-
<PAGE>

                      (a) The Company shall not, nor shall the Company authorize
or permit any of its subsidiaries or any of the directors,  officers, employees,
attorneys or investment bankers (collectively, "Representatives") of the Company
or any of its subsidiaries to, (i) directly or indirectly,  initiate, solicit or
knowingly  encourage  any  inquiries  with  respect  to, or the  making  of, any
Alternate  Financing  Proposal,  (ii) engage in any  negotiations or discussions
concerning,  or  provide  access to its  properties,  books and  records  or any
confidential  information  or data  to,  any  person  relating  to an  Alternate
Financing Proposal,  (iii) approve, endorse or recommend, or propose publicly to
approve,  endorse or recommend, any Alternate Financing Proposal or (iv) execute
or enter into, any letter of intent,  agreement in principle,  merger agreement,
acquisition  agreement  or other  similar  agreement  relating to any  Alternate
Financing  Proposal;  provided,  however,  it is understood  and agreed that any
determination or action by the Board of Directors of the Company permitted under
Section  10.5(b)  or  Section  10.5(c),  shall  not be  deemed to be a breach or
violation of this Section 10.5(a) or, in the case of Section  10.5(b),  give the
Investors a right to terminate this Agreement  pursuant to Section  11.1(e)(ii).
The Company shall, and shall direct each of its  Representatives to, immediately
cease any solicitations, discussions or negotiations with any person (other than
the parties hereto) that has made or indicated an intention to make an Alternate
Financing  Proposal,  in each case that exist as of the date hereof,  subject in
each  case to the  rights  of the  Company  set forth in  Sections  10.5(b)  and
10.5(c).

                      (b)  Notwithstanding  anything to the  contrary in Section
10.5(a),  nothing  contained in this Agreement  shall prevent the Company or its
Board of Directors from (i) taking and disclosing to its stockholders a position
contemplated by Rule 14d-9 and Rule 14e-2(a)  promulgated under the Exchange Act
(or any similar  communication  to stockholders in connection with the making or
amendment  of a tender  offer or  exchange  offer) or from  making  any  legally
required  disclosure  to  stockholders  with  regard to an  Alternate  Financing
Proposal  (provided  that  neither the Company  nor its Board of  Directors  may
recommend any Alternate  Financing  Proposal unless permitted by Section 10.5(c)
and the Company may not fail to make, or withdraw,  modify or change in a manner
adverse  to the  Investors  all or any  portion  of, the  Recommendation  unless
permitted by Section 10.3);  (ii) providing access to its properties,  books and
records and providing information or data in response to a request therefor by a
person or group who has made an unsolicited  Alternate  Financing  Proposal that
the Board of  Directors of the Company  determines  in good faith is credible if
the Board of Directors  receives from the person so requesting such  information
an  executed  confidentiality   agreement;  (iii)  contacting  and  engaging  in
discussions  with any person or group and their respective  Representatives  who
has made an unsolicited  Alternate  Financing Proposal solely for the purpose of
clarifying such Alternate  Financing Proposal and any material terms thereof and
the conditions to consummation so as to determine  whether there is a reasonable
possibility  that such  Alternate  Financing  Proposal  could lead to a Superior
Proposal;  (iv) contacting and engaging in any  negotiations or discussions with
any  person  or  group  and  their  respective  Representatives  who has made an
unsolicited  Alternate  Financing  Proposal  that the Board of  Directors of the
Company determines in good faith is credible (which  negotiations or discussions
are not  solely  for  clarification  purposes);  or (v) prior to  obtaining  all
necessary stockholder approvals,  (A) withdrawing,  modifying or changing in any
adverse manner the Recommendation (which, in the event of an Alternate Financing
Proposal, shall be permitted only to the extent permitted by Section 10.5(c)) or
(B) recommending an unsolicited  Alternate  Financing Proposal that the Board of
Directors of the Company determines in good faith is

                                      -23-
<PAGE>

credible,  if and only to the  extent  that in  connection  with  the  foregoing
clauses (ii), (iv) and (v)(B),  the Board of Directors of the Company shall have
determined  in good  faith,  after  consultation  with  its  legal  counsel  and
financial  advisors  that,  (x) in the case of clause  (v)(B)  above only,  such
Alternate  Financing  Proposal  would,  if  consummated,  result  in a  Superior
Proposal and (y) in the case of clauses (ii) and (iv) above only, such Alternate
Financing  Proposal  constitutes  a Superior  Proposal or there is a  reasonable
possibility  that such actions in respect of such Alternate  Financing  Proposal
could lead to a Superior  Proposal.  The Company shall also promptly  notify the
Investors  within 48 hours of the receipt of any  Alternate  Financing  Proposal
after the date hereof,  which notice  shall  include the material  terms of such
Alternate Financing Proposal.

                      (c)  Notwithstanding  anything in this Section 10.5 to the
contrary,  if (A) the  Company's  Board of Directors  determines  in good faith,
after  consultation  with its financial  advisors and outside legal counsel,  in
response to an unsolicited  Alternate  Financing Proposal that did not otherwise
result  from a  material  breach of Section  10.5(a),  that such  proposal  is a
Superior  Proposal,  (B) the Company  notifies  the  Investors in writing of the
terms of the Superior  Proposal and the  determinations  described in clause (A)
above and of its intent to terminate this Agreement,  (C) the Company's Board of
Directors  takes into account any revised  proposal made by the Investors to the
Company (a "Revised  Investor  Proposal")  within three  business days after the
Investors'  receipt of such  notice  and again  determines  in good faith  after
consultation with its outside legal counsel and independent  financial  advisors
that such  Alternate  Financing  Proposal (as the same may have been modified or
amended) remains a Superior Proposal,  and (D) the Company's Board of Directors,
if a Revised  Investor  Proposal  has been made,  and such  Alternate  Financing
Proposal  had been  modified or amended  prior to the  Board's  re-determination
referred  to in clause  (C) above,  (x) first,  notifies  the  Investors  of the
revised terms of such Alternate  Financing Proposal;  (y) second,  establishes a
deadline,  and  notifies  the  Investors  and the person  making such  Alternate
Financing  Proposal  thereof,  to occur not less than  three nor more than seven
business days after giving such notice,  for the  submission of final  proposals
from both the  Investors  and such person;  and (z) within seven  business  days
after such deadline,  again determines in good faith after consultation with its
outside legal counsel and  independent  financial  advisors that such  Alternate
Financing  Proposal  remains a Superior  Proposal and notifies the  Investors of
such  determination,  the Company or its Board of Directors may  terminate  this
Agreement  in order to enter into a  definitive  agreement  with respect to such
Superior  Proposal  and may  withdraw,  modify  or  change  the  Recommendation;
provided,  however, that the Company shall not terminate this Agreement pursuant
to this Section 10.5(c), and any purported  termination pursuant to this Section
10.5(c) shall be void and of no force or effect,  unless the Company prior to or
concurrently with such termination  pursuant to this Section 10.5(c) pays to the
Investors the Company Termination Fee.

                      (d) For purposes of this  Agreement,  the following  terms
shall have the meanings assigned below:

                          (i) "Alternate  Financing Proposal" means any inquiry,
proposal or offer from any Person or group of Persons (other than the Investors)
relating to (i) any proposal or offer concerning an alternate  financing for the
transactions  contemplated  by the Asset  Purchase  Agreement  together with the
transactions  contemplated by the Merger Agreement or (ii) any proposal or offer
concerning  an  acquisition  of all or  substantially  all  of  the

                                      -24-
<PAGE>

issued and outstanding  capital stock of the Company or an acquisition of all or
substantially all the assets of the Company.

                          (ii) "Superior Proposal" means any Alternate Financing
Proposal  (x) on terms  more  favorable  to the  Company  than the  transactions
contemplated  by this  Agreement,  taking  into  account  all of the  terms  and
conditions of such proposal and this  Agreement  (including  any proposal by the
Investors to amend the terms of the transactions contemplated by this Agreement,
the  First  Lien  Debt  Commitment  Letter or the  Second  Lien Debt  Commitment
Letter),  and (y) that the Board of Directors of the Company  determines in good
faith is reasonably capable of being completed, taking into account the identity
of the person or persons  making the  proposal  and all  financial,  regulatory,
legal and other aspects of such  proposal.  The parties  hereto  understand  and
agree that an Alternate  Financing  Proposal  consisting  of a proposal or offer
concerning an alternate financing for both the transactions  contemplated by the
Asset  Purchase  Agreement  and  the  transactions  contemplated  by the  Merger
Agreement will not fail to be a Superior  Proposal  solely because the financing
proposed  with  respect to either the  acquisition  of the TRS  Business  or the
acquisition of HOVRS,  independent  of the other terms and financing  comprising
such Alternate Financing Proposal, is not more favorable to the Company than the
corresponding portion of the financings  contemplated by this Agreement, so long
as such  Alternate  Financing  Proposal,  taken  as a whole,  is on  terms  more
favorable to the Company than the  transactions  contemplated by this Agreement,
taking into account all of the terms and  conditions  of such  proposal and this
Agreement  (including  any  proposal by the  Investors to amend the terms of the
transactions  contemplated  by this  Agreement,  the First Lien Debt  Commitment
Letter or the Second Lien Debt Commitment Letter).

                  10.6 Further  Assurances.  Subject to the terms and conditions
of this  Agreement,  each party will use its  reasonable  commercial  efforts to
take,  or cause to be taken,  all  actions  and to do, or cause to be done,  all
things  reasonably  necessary,  proper or advisable  under  applicable  laws and
regulations to consummate the transactions contemplated by this Agreement.

                  10.7 Public Statements.  Each of the Company and the Investors
agrees  that no public  release  or  announcement  concerning  the  transactions
contemplated  hereby shall be issued  without the prior  written  consent of the
Company or the Investors, except as such release or announcement may be required
by law or the rules or  regulations  of any  applicable  securities  exchange or
regulatory or governmental body to which the relevant party is subject, wherever
situated,  in which case the party required to make the release or  announcement
shall use its  reasonable  commercial  efforts  to  provide  the  Company or the
Investors,  as the case may be,  reasonable  time to comment on such  release or
announcement  in advance of such issuance,  it being  understood  that the final
form and content of any such release or announcement, to the extent so required,
shall be at the final discretion of the disclosing party.

            11. Termination, Expenses

                  11.1 Termination. This Agreement may be terminated:

                      (a) by mutual  written  consent of the  Investors  and the
Company;

                                      -25-
<PAGE>

                      (b) by  the  Investors  or the  Company  if any  court  of
competent  jurisdiction or other  governmental  entity shall have issued a final
order, decree or ruling or taken any other final action  restraining,  enjoining
or otherwise prohibiting the transactions contemplated hereunder and such order,
decree, ruling or other action is or shall have become final and nonappealable;

                      (c) by either the Investors or the Company if:

                          (i) the Closing  shall not have  occurred on or before
December 31, 2007; provided, however, that, if one or more Governmental Consents
(as defined in the Asset  Purchase  Agreement  as in effect on the date  hereof)
have not been obtained by December 31, 2007 and the Company exercises its option
under the Asset Purchase  Agreement to extend the Termination Date thereunder to
March 31, 2008,  Investors  who have agreed to purchase a majority of the Shares
of Series A Preferred  Stock to be sold in  connection  with the Closing may, in
their  sole  discretion,  extend  the date after  which  this  Agreement  may be
terminated  pursuant  to this  clause  (c)(i)  to March 31,  2008 by  delivering
written notice of such  extension to the Company;  provided,  further,  that the
right to terminate this Agreement  pursuant to this Section 11.1(c)(i) shall not
be available to the party  seeking to  terminate  unless (x) the Asset  Purchase
Agreement  shall  have  terminated  (or,  in  the  case  of  termination  by the
Investors, the Asset Purchase Agreement would have terminated by its terms on or
before such date except that the Company has exercised its option  thereunder to
extend  the  Termination  Date to March 31,  2008) and (y) the party  seeking to
terminate  pursuant to this Section  11.1(c)(i) shall not have been the cause of
the  failure of the  Closing to occur on or before  such date and such action or
failure to perform constitutes a breach of this Agreement; or

                          (ii) the Subsequent Closing shall not have occurred on
or before February 29, 2008; provided,  however, that (A) the right to terminate
this Agreement  pursuant to this Section  11.1(c)(ii)  shall not be available to
the party seeking to terminate unless the party seeking to terminate pursuant to
this  Section  11.1(c)(ii)  shall not have been the cause of the  failure of the
Subsequent Closing to occur on or before such date and such action or failure to
perform  constitutes a breach of this  Agreement,  and (B) if Investors who have
agreed to purchase a majority  of the Shares of Series A  Preferred  Stock to be
sold in connection with the Closing have, in their sole discretion, extended the
date after which this Agreement may be terminated pursuant to Section 11.1(c)(i)
to March 31, 2008, the Investors may not terminate  this  Agreement  pursuant to
this Section 11.1(c)(ii) until March 31, 2008, but from and after March 1, 2008,
the conditions to the Subsequent  Closing set forth in Section 8 shall be deemed
not  satisfied  and the  Investors  shall  have no  obligation  to  provide  the
financing contemplated by Section 1.1(d) hereof.

                                      -26-
<PAGE>

                      (d) by the Company:

                           (i)  if  there  shall  have  been  a  breach  of  any
representation,  warranty,  covenant or agreement  on the part of the  Investors
such  that the  conditions  set  forth in  Sections  4, 6, 7 and 9 would  not be
satisfied  and, in either such case,  such breach is not cured or curable by (A)
in respect of the  Closing  and the  conditions  thereto,  the date on which all
conditions to consummate the Asset Purchase  Agreement have been satisfied,  and
(B) in respect of the Subsequent Closing and the conditions thereto, the date on
which all conditions to consummate the Merger Agreement have been satisfied; or

                           (ii) in accordance with, and subject to the terms and
conditions of, Section 10.5(c);

                      (e) by Investors who have agreed to purchase a majority of
the  Shares  of  Series  A  Preferred  Stock to be sold in  connection  with the
Closing:

                           (i)  if  there  shall  have  been  a  breach  of  any
representation,  warranty,  covenant  or  agreement  on the part of the  Company
contained in this Agreement such that the conditions set forth in Sections 4, 5,
7 and 8 would not be  satisfied  and,  in either  such case,  such breach is not
cured or curable by (A) in respect of the  Closing and the  conditions  thereto,
the date on which all conditions to consummate the Asset Purchase Agreement have
been satisfied,  and (B) in respect of the Subsequent Closing and the conditions
thereto,  the date on which all  conditions to consummate  the Merger  Agreement
have been satisfied; or

                           (ii) if the Board of Directors  of the Company  shall
have withdrawn,  modified or changed the  Recommendation  in a manner adverse to
the Investors  (it being  understood  and agreed that,  for all purposes of this
Agreement  (including  Sections 10.3 and 10.5), a communication  by the Board of
Directors of the Company to the  stockholders  of the Company in accordance with
Rule  14d-9(f)  of  the  Exchange  Act,  or  any  similar  communication  to the
stockholders  of the Company in  connection  with the  commencement  of a tender
offer or  exchange  offer,  shall  not be  deemed to  constitute  a  withdrawal,
modification or change of the  Recommendation)  or shall have recommended to the
stockholders  of the  Company an  Alternate  Financing  Proposal,  or shall have
resolved to effect any of the  foregoing (it being agreed that the taking of any
action by the Company,  its Board of Directors or any of its  Representatives of
any of the actions  permitted by Section  10.5(b) shall not give rise to a right
to terminate pursuant to this clause (ii)).

                      (f) by either the Company or by Investors  who have agreed
to  purchase a majority  of the  Shares of Series A  Preferred  Stock to be sold
hereunder  if, upon a vote taken on the Company  Proposals  at the  Stockholders
Meeting or any postponement or adjournment  thereof, the Company Proposals shall
not have been approved by the requisite vote of the stockholders of the Company.

                  11.2 Effect of Termination.

                      (a) In the  event  of the  termination  of this  Agreement
pursuant to Section 11.1, this Agreement  shall forthwith  become void and there
shall be no liability or

                                      -27-
<PAGE>

obligation on the part of any party  hereto,  except as provided in this Section
11.2 and Section 12, which shall survive such  termination;  provided,  however,
that nothing  herein shall  relieve any party from  liability  for any breach of
this Agreement.

                      (b) In the event that this  Agreement is terminated by the
Company  pursuant to Section  11.1(d)(ii),  then no later than two (2)  Business
Days  after the  execution  of any  letter of intent,  agreement  in  principal,
commitment  letter  or  definitive  agreement  with  respect  to an  alternative
financing or similar agreement relating to any Alternate Financing Proposal, the
Company shall pay $2,200,000 (the "Company  Termination  Fee") to the Investors,
at or prior to the time of  termination,  payable by wire  transfer  of same day
funds.  Such amount shall be allocated  among the Investors in proportion to the
number of shares of Series A Preferred  Stock that each  Investor  has agreed to
purchase pursuant to this Agreement.

                      (c) Each of the  Company  and the  Investors  acknowledges
that the  agreements  contained in this Section 11.2 are an integral part of the
transactions contemplated by this Agreement. In the event that the Company shall
fail to pay the Company  Termination  Fee when due, the Company shall  reimburse
the Investors for all reasonable costs and expenses actually incurred or accrued
by the  Investors  (including  reasonable  fees and expenses of one law firm) in
connection  any action  (including  the filing of any lawsuit)  taken to collect
payment of such  amount,  together  with  interest on such unpaid  amount at the
prime lending rate prevailing during such period as published in The Wall Street
Journal, calculated on a daily basis from the date such amounts were required to
be paid to the date of actual payment.

            12. Miscellaneous.

                  12.1 Survival.  The warranties,  representations and covenants
of the Company and  Investors  contained in or made  pursuant to this  Agreement
shall survive the  execution and delivery of this  Agreement and the Closing and
shall in no way be affected by any  investigation  of the subject matter thereof
made by or on behalf of the Investors or the Company.

                  12.2  Successors  and Assigns.  Except as  otherwise  provided
herein, the terms and conditions of this Agreement shall inure to the benefit of
and be  binding  upon the  respective  successors  and  assigns  of the  parties
(including transferees of any securities). Nothing in this Agreement, express or
implied,  is intended to confer upon any party, other than the parties hereto or
their respective  successors and assigns, any rights,  remedies,  obligations or
liabilities under or by reason of this Agreement,  except as expressly  provided
in this Agreement.

                  12.3 Governing  Law. This  Agreement  shall be governed by and
construed  under the laws of the State of New York without  regard to principles
of conflicts of law.

                  12.4 Titles and  Subtitles.  The titles and subtitles  used in
this  Agreement  are used for  convenience  only and are not to be considered in
construing or interpreting this Agreement.

                  12.5  Notices.  All notices  required or  permitted  hereunder
shall be in writing and shall be deemed  effectively  given:  (a) upon  personal
delivery  to the  party to be  notified;  (b) when  sent by  confirmed  telex or
facsimile or by electronic mail if sent during

                                      -28-
<PAGE>

normal  business hours of the recipient,  if not, then on the next business day;
(c) five days after having been sent by  registered  or certified  mail,  return
receipt  requested,  postage  prepaid;  or (d)  one  day  after  deposit  with a
nationally  recognized  overnight  courier,  specifying next day delivery,  with
written verification of receipt. All communications shall be sent to the address
as set forth on the signature page hereof or at such other address as such party
may designate by ten days' advance written notice to the other parties hereto.

                  12.6 Finder's Fee. Each party represents  that,  except as set
forth in the Schedule of  Exceptions  or in this Section 12.6, it neither is nor
will be obligated for any finder's fee or  commission  in  connection  with this
transaction.  Each Investor agrees to indemnify and to hold harmless the Company
from any  liability  for any  commission  or  compensation  in the  nature  of a
finder's fee (and the costs and expenses of defending  against such liability or
asserted  liability)  for which such Investor or any of its officers,  partners,
employees or representatives is responsible. The Company agrees to indemnify and
hold  harmless   each  Investor  from  any  liability  for  any   commission  or
compensation  in the nature of a  finders'  fee (and the costs and  expenses  of
defending against such liability or asserted liability) for which the Company or
any of its officers, employees or representatives is responsible.

                  12.7  Expenses;  Attorneys'  Fees.  If any action at law or in
equity is  necessary to enforce or interpret  the terms of this  Agreement,  the
First Restated  Certificate,  the Second Restated  Certificate,  or the Investor
Rights  Agreement,  the Amended and Restated  Investor  Rights  Agreement or the
Second Amended and Restated  Investor  Rights  Agreement,  the prevailing  party
shall  be  entitled  to  reasonable   attorneys'   fees,   costs  and  necessary
disbursements  in  addition  to any  other  relief  to which  such  party may be
entitled.

                  12.8 Amendments and Waivers. Any term of this Agreement may be
amended and the  observance of any term of this  Agreement may be waived (either
generally   or  in  a   particular   instance   and  either   retroactively   or
prospectively),  (i) prior to the Closing,  only with the written consent of the
Company and Investors  acquiring in the  aggregate  more than half the shares of
Series A Preferred Stock to be sold pursuant hereto,  (ii) after the Closing but
prior to the Subsequent  Closing,  only with the written consent of the Company,
Investors  acquiring in the  aggregate  more than half of the shares of Series A
Preferred  Stock to be issued at the  Subsequent  Closing  and the  holders of a
majority of the Common Stock issuable or issued upon  conversion of the Series A
Preferred  Stock sold at the Closing  pursuant to this Agreement and (iii) after
the  Subsequent  Closing,  only with the written  consent of the Company and the
holders of a majority of the Common Stock issuable or issued upon  conversion of
the Series A Preferred Stock sold pursuant to this  Agreement.  Any amendment or
waiver  effected in accordance with this Section 12.8 shall be binding upon each
holder of any securities  purchased under this Agreement  (including  securities
into which such securities are convertible) at the time outstanding, each future
holder of all such Series A Preferred Stock and the Company.  The failure of any
party to assert any rights or  remedies  shall not  constitute  a waiver of such
rights or remedies.

                                      -29-
<PAGE>

                  12.9 Severability. If one or more provisions of this Agreement
are held to be  unenforceable  under  applicable  law, such  provision  shall be
excluded  from  this  Agreement  and  the  balance  of the  Agreement  shall  be
interpreted  as if such  provision  were so excluded and shall be enforceable in
accordance with its terms.

                  12.10  Aggregation  of  Stock.  All  shares  of the  Series  A
Preferred  Stock held or acquired  by  affiliated  entities or persons  shall be
aggregated  together  for the purpose of  determining  the  availability  of any
rights under this Agreement.

                  12.11 Entire  Agreement.  This  Agreement  and the  documents,
schedules and exhibits  referred to herein constitute the entire agreement among
the  parties  and no party  shall be liable  or bound to any other  party in any
manner by any warranties,  representations  or covenants  except as specifically
set forth herein or therein.

                  12.12  Counterparts.  This Agreement may be executed in two or
more counterparts,  each of which shall be deemed an original,  but all of which
together shall constitute one and the same instrument.

                            [SIGNATURE PAGES FOLLOW]

                                      -30-
<PAGE>

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

                                    COMPANY:

                                    GOAMERICA, INC.

                                    By:     /s/ Daniel R. Luis
                                       -----------------------------------------
                                            Name:  Daniel R. Luis
                                            Title:  Chief Executive Officer

                            Address:        433 Hackensack Avenue
                                            Hackensack, NJ  07601
                                            Attn.:  Chief Executive Officer

                                    With a copy to:

                                            Lowenstein Sandler PC
                                            65 Livingston Avenue
                                            Roseland, NJ  07068
                                            Attn.:  Peter H. Ehrenberg, Esq.
                                            Fax No. (973) 597-2400

        [SIGNATURE PAGE TO AMENDED AND RESTATED STOCK PURCHASE AGREEMENT]

<PAGE>

                                    INVESTOR:

                                    CCP A, L.P.

                                    By:  CLEARLAKE CAPITAL PARTNERS, LLC
                                         Its General Partner

                                    By:  CCG Operations, LLC
                                         Its Managing Member

                                    By:  /s/ Behdad Eghbali
                                       -----------------------------------------
                                         Name: Behdad Eghbali
                                         Title:  Authorized Signatory

                            Address:         650 Madison Avenue, 26th Floor
                                             New York, NY 10022
                                             Fax No. (212) 610-9121

                                    With a copy to:

                                             Milbank, Tweed, Hadley & McCloy LLP
                                             601 S. Figueroa St., 30th Floor
                                             Los Angeles, CA  90017
                                             Attn.: Melainie K. Mansfield, Esq.
                                             Fax No. (213) 892-4711

       [SIGNATURE PAGE TO AMENDED AND RESTATED STOCK PURCHASE AGREEMENT]

<PAGE>

                                   SCHEDULE A

                              Schedule of Investors

<TABLE>
<CAPTION>
 Part I
                                                             Shares of
    Investor                                           Series A Preferred Stock                 Purchase Price
    ------------------------------------------     -----------------------------------    ----------------------------
<S>                                                                     <C>                        <C>
    CCP A, L.P.                                                         6,479,691                  $33,500,002.47
                                                                        ---------                  --------------
    Total                                                               6,479,691                  $33,500,002.47

<CAPTION>
Part II
                                                              Shares of
    Investor                                           Series A Preferred Stock                 Purchase Price
    ------------------------------------------     -----------------------------------    ----------------------------
<S>                                                                       <C>                       <C>
    CCP A, L.P.                                                           967,118                   $5,000,000.06
                                                                        ---------                  --------------
    Total                                                                 967,118                   $5,000,000.06
</TABLE>

                                  Schedule A-1exv10w1

 

Exhibit 10.1

THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY

AGREEMENT AND OTHER FINANCING AGREEMENTS

     THIS THIRD AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT AND OTHER FINANCING
AGREEMENTS (this “Amendment”), dated as of September 17, 2007, is entered into among PC
MALL, INC., a Delaware corporation formerly known as IdeaMall, Inc. (“PC Mall”), PC MALL
SALES, INC., a California corporation formerly known as Creative Computers, Inc. (“PC Mall
Sales”), ELINUX.COM, INC., a Delaware corporation (“eLinux”), WAREFORCE CORP., a
Delaware corporation formerly known as WF Acquisition Sub, Inc. (“Wareforce”),
COMPUTABILITY LIMITED, a Delaware corporation (“Computability”), AF SERVICES, LLC, a
Delaware limited liability company, as successor by merger to AF Services, Inc. (“AF
Services”), PC MALL GOV, INC., a Delaware corporation (“PCMG”), SIFY, INC., a Delaware
corporation formerly known as ClubMac, Inc. (“SIFY”), ONSALE, INC., a Delaware corporation
(“Onsale”), AV ACQUISITION, INC., a Delaware corporation (“AV Acquisition”), GMR
SYSTEMS, INC., a Delaware corporation formerly known as Mall Acquisition 1, Inc. and as PCM.com,
Inc. (“GMRS”), MALL ACQUISITION 3, INC., a Delaware corporation (“Acquisition 3”),
MALL MARKETING, INC., a Delaware corporation (“Mall Marketing”), OSRP, LLC, a Delaware
limited liability company (“OSRP”), PC MALL CANADA, INC., a Quebec corporation (“PC
Mall Canada” and together with PC Mall, PC Mall Sales, eLinux, Wareforce, Computability, AF
Services, PCMG, SIFY, Onsale, AV Acquisition, GMRS, Acquisition 3, Mall Marketing, OSRP and Mall
Canada, collectively referred to herein as “Existing Borrowers”), SARCOM, INC., a Delaware
corporation (“New Borrower”), WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN), a California
corporation formerly known as Congress Financial Corporation (Western), as administrative and
collateral agent for the Lenders under the Loan Agreement (in such capacity, “Agent”), and
each of the financial institutions party to the Loan Agreement as a Lender (collectively,
“Lenders”). Existing Borrowers and New Borrower will collectively be referred to herein as
“Borrowers”.

RECITALS

     A. Existing Borrowers, Mall Acquisition 2, Inc., a Delaware corporation (“Acquisition
2”), Agent and Lenders have previously entered into that certain Amended and Restated Loan and
Security Agreement dated as of August 1, 2005, as amended by the First Amendment to Amended and
Restated Loan and Security Agreement and Other Financing Agreements dated as of September 30, 2005
and the Second Amendment to Amended and Restated Loan and Security Agreement dated as of June 11,
2007 (the “Loan Agreement”), pursuant to which Agent and Lenders have made certain loans
and financial accommodations available to Existing Borrowers. Terms used herein without definition
shall have the meanings ascribed to them in the Loan Agreement.

     B. PC Mall and Agent have previously entered into that certain Stock Pledge Agreement dated
March 7, 2001 as amended (the “Pledge Agreement”), covering the capital stock of the other
Existing Borrowers.

1

 

     C. PC Mall is acquiring New Borrower pursuant to a merger transaction in which Acquisition 2
will be merged with and into New Borrower, with New Borrower as the surviving corporation, pursuant
to that certain Agreement and Plan of Merger dated as of August 17, 2007 among PC Mall, Acquisition
2, New Borrower and certain stockholders of New Borrower (the “Sarcom Acquisition”).

     D. The parties now desire to amend the Loan Agreement and the Pledge Agreement upon the terms
and conditions set forth below.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

     1. Amendments.

          (a) Addition of New Borrower. New Borrower is hereby added as a co-borrower under the
Loan Agreement with the same force and effect as if New Borrower had duly executed and delivered
the Loan Agreement as Borrower thereunder in addition to the Existing Borrowers. Without limiting
the foregoing:

               (i) The definitions of “Borrower” and “Borrowers” in the preamble of the Loan Agreement are
hereby amended to include New Borrower in addition to the Existing Borrowers.

               (ii) New Borrower and each of the Existing Borrowers shall be jointly and severally liable for
all Obligations.

               (iii) To secure payment and performance of all Obligations, New Borrower hereby grants to
Agent a continuing security interest in, a lien upon, and a right of set off against, and hereby
assigns to Agent as security, all Collateral, whether now owned or hereafter acquired or existing,
and wherever located.

               (iv) The Information Certificate of New Borrower attached hereto as Exhibit A is hereby
included in Exhibit A to the Loan Agreement in addition to the Information Certificates of the
Existing Borrowers.

               (v) New Borrower hereby represents and warrants to Lender the truth and accuracy of all
representations and warranties applicable to Borrowers in the Loan Agreement (after giving effect
to the inclusions of New Borrowers and their Information Certificates as set forth in clauses (i)
and (iv) above).

               (vi) New Borrower hereby agrees to perform all of the covenants and agreements applicable to
Borrowers in the Loan Agreement.

               (vii) Lender shall have all of the rights, remedies, interests and powers as against New
Borrower as provided to Lender in relation to Borrowers in the Loan Agreement.

2

 

          (b) New Borrower Letters of Credit. The phrase “or on account of the letters of
credit set forth on Schedule 9.9 to the Information Certificate of Sarcom, Inc.” is hereby added
immediately after the phrase “set forth on Schedule 9.9 hereto” in Section 9.9(d) of the
Loan Agreement, and the phrase “or on Schedule 8.4 to the Information Certificate of Sarcom, Inc.”
is hereby added immediately after the phrase “set forth on Schedule 8.4 hereto” in Section
9.8(g) of the Loan Agreement.

          (c) Eligibility. Without limiting the eligibility criteria set forth in the
definitions of “Eligible Accounts” and “Eligible Inventory” in Sections 1.20 and 1.21 of the Loan
Agreement, none of the Accounts or Inventory of New Borrower will be deemed Eligible Accounts or
Eligible Inventory unless and until Agent has completed a “take-over exam” of the Accounts and
Inventory of New Borrower during the ten (10) days preceding the closing of the Sarcom Acquisition,
with results satisfactory to Agent.

          (d) Term Loan. With respect to Section 2.3(a) of the Loan Agreement, and subject to
the terms and conditions of the Loan Agreement and this Amendment, the aggregate principal sum of
the Term Loans shall be increased to the amount of $5,425,000, and each Term Loan Lender severally
(and not jointly) agrees to fund its Pro Rata Share of such amount (net of the outstanding
principal balance of the Term Loan of such Term Loan Lender immediately before such increase),
provided that, (i) Onsale shall have duly executed and delivered an amendment to Agent’s
deed of trust against the Real Estate, in form and content acceptable to Agent, to secure the Term
Loans as so increased, and (ii) with respect to such amendment, Chicago Title Company shall have
committed to issue a California Land Title Association Form 110.10 Endorsement to Agent’s loan
policy of title insurance covering such deed of trust. The Term Loans as so increased shall be
(iii) evidenced by the Term Notes as amended and restated pursuant to clause (b) of Section 2
below, (iv) repaid with interest in accordance with the Loan Agreement, such Term Notes and other
Financing Agreements (including amortization of principal over eighty-four (84) months as more
specifically set forth in such Term Notes), and (v) secured by all of the Collateral.

          (e) Pledge Agreement. Recital B of the Pledge Agreement is hereby amended by adding
immediately after the reference to “PC MALL CANADA, INC., a Quebec corporation”, the words “SARCOM,
INC., a Delaware corporation.”

     2. Effectiveness of this Amendment. Agent must have received the following items, in
form and content acceptable to Agent, before this Amendment is effective.

          (a) This Amendment fully executed in a sufficient number of counterparts for distribution to
all parties.

          (b) Amended and restated Term Notes to replace the existing Term Notes.

          (c) All consents, waivers, acknowledgments and other agreements from third persons which Agent
may deem necessary or desirable in order to permit, protect and perfect its security interests in
and liens upon the Collateral held by New Borrower or to effectuate the provisions or purposes of
the Loan Agreement and the other Financing Agreements, including, without limitation, Collateral
Access Agreements;

3

 

          (d) Deposit Account Control Agreements by and among Agent, New Borrower and each bank where
New Borrower has a deposit account, in each case, duly authorized, executed and delivered by such
bank and New Borrower (or Agent shall be the bank’s customer with respect to such deposit account
as Agent may specify);

          (e) Direction Letter duly executed and delivered by New Borrower and Huntington National Bank
with respect to their credit card and debit card processing arrangements;

          (f) Collateral Assignment of Trademarks duly executed and delivered by New Borrower;

          (g) Collateral Assignment of Copyrights duly executed and delivered by New Borrower;

          (h) Lien and judgment search results for the jurisdiction of organization of New Borrower, the
jurisdiction of the chief executive office of New Borrower and all jurisdictions in which assets of
New Borrower are located, which search results shall be in form and substance satisfactory to
Agent;

          (i) The certificates evidencing all of the issued and outstanding shares of capital stock of
New Borrower, together with stock powers duly executed and delivered by PC Mall therefor in blank.

          (j) Such documents as Agent may require to establish that it has a valid, perfected and first
priority security interest in the Collateral held by New Borrower.

          (k) Such documents as Agent may require with respect to the organization, existence, good
standing, power and authority of New Borrower.

          (l) Evidence of insurance and loss payable endorsements with respect to the insurance policies
of New Borrower.

          (m) Favorable opinion letter of counsel to New Borrower with respect to the transactions
contemplated hereby.

          (n) Evidence that the Sarcom Acquisition has closed.

          (o) All other documents and legal matters in connection with the transactions contemplated by
this Amendment shall have been delivered or executed or recorded and shall be in form and substance
satisfactory to Agent.

     3. Representations and Warranties. Each Borrower represents and warrants as follows:

          (a) Authority. Such Borrower has the requisite corporate or company power and
authority to execute and deliver this Amendment, and to perform its obligations hereunder and under
the Financing Agreements (as amended or modified hereby) to which it is a party.

4

 

The execution, delivery and performance by such Borrower of this Amendment have been duly
approved by all necessary corporate or company action and no other corporate or company proceedings
are necessary to consummate such transactions.

          (b) Enforceability. This Amendment has been duly executed and delivered by such
Borrower. This Amendment and each Financing Agreement (as amended or modified hereby) is the
legal, valid and binding obligation of such Borrower, enforceable against such Borrower in
accordance with its terms, and is in full force and effect.

          (c) Representations and Warranties. The representations and warranties contained in
each Financing Agreement (other than any such representations or warranties that, by their terms,
are specifically made as of a date other than the date hereof) are correct on and as of the date
hereof as though made on and as of the date hereof.

          (d) Due Execution. The execution, delivery and performance of this Amendment are
within the power of such Borrower, have been duly authorized by all necessary corporate or company
action, have received all necessary governmental approval, if any, and do not contravene any law or
any contractual restrictions binding on such Borrower.

          (e) No Default. No event has occurred and is continuing that constitutes an Event of
Default.

     4. Choice of Law. The validity of this Amendment, its construction, interpretation
and enforcement, the rights of the parties hereunder, shall be determined under, governed by, and
construed in accordance with the internal laws of the State of California governing contracts only
to be performed in that State.

     5. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties and separate counterparts, each of which when so executed and delivered, shall be
deemed an original, and all of which, when taken together, shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Amendment by
telefacsimile shall be effective as delivery of a manually executed counterpart of this Amendment.

     6. Reference to and Effect on the Financing Agreements.

          (a) Upon and after the effectiveness of this Amendment, each reference in the Loan Agreement
to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Loan Agreement,
and each reference in the other Financing Agreements to “the Loan Agreement”, “thereof” or words of
like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement as
modified and amended hereby.

          (b) Except as specifically provided above, the Loan Agreement and all other Financing
Agreements, are and shall continue to be in full force and effect and are hereby in all respects
ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations
of Borrowers to Agent and Lenders.

5

 

          (c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver
of any right, power or remedy of Agent or any Lender under any of the Financing Agreements, nor
constitute a waiver of any provision of any of the Financing Agreements.

          (d) To the extent that any terms and conditions in any of the Financing Agreements shall
contradict or be in conflict with any terms or conditions of the Loan Agreement or the Pledge
Agreement, after giving effect to this Amendment, such terms and conditions are hereby deemed
modified or amended accordingly to reflect the terms and conditions of the Loan Agreement and the
Pledge Agreement as modified or amended hereby.

     7. Ratification. Each Borrower hereby restates, ratifies and reaffirms each and every
term and condition set forth in the Loan Agreement and the Pledge Agreement, as amended hereby, and
the other Financing Agreements effective as of the date hereof.

[signature pages to follow]

6

 

     IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above
written.

	 	 	 	 	 
	AGENT:

	 
	
WACHOVIA CAPITAL FINANCE

CORPORATION (WESTERN), as Agent

 	 
	By:  	/s/ D.B. Laughton 	 	 
	Name:  	D.B. Laughton 	 	 	 
	Title:  	Managing
Director 	 	 	 
	 
	 
	LENDERS:
	 
	

WACHOVIA CAPITAL FINANCE

CORPORATION (WESTERN)

 	 	 
	By:  	/s/ D.B. Laughton 	 	 
	Name:  	D.B. Laughton 	 	 	 
	Title:  	Managing
Director 	 	 	 

7

 

	 	 	 	 	 
	
BANK OF AMERICA, N.A.
	 
	 
	By:  	/s/ Matthew
Bourgeois 	 	 
	Name:  	Matthew
Bourgeois 	 	 	 
	Title:  	Senior
Vice President 	 	 	 
	 
	 

8

 

	 	 	 	 	 
	
LASALLE BUSINESS CREDIT, LLC
	 
	 
	By:  	/s/
Elizabeth J. Mitchell 	 	 
	Name:  	Elizabeth J. Mitchell 	 	 	 
	Title:  	A.V.P. 	 	 	 
	 
	 

9

 

	 	 	 	 	 	 	 
	 

	 	 	 	BORROWERS:
	 
	 	 	 	 
	 

	 	 	 	PC MALL, INC.
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Brandon La Verne

Name: Brandon La Verne

Title: Interim CFO

10

 

	 	 	 	 	 	 	 
	 

	 	 	 	PC MALL SALES, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Pete Freix

Name: Pete Freix

Title: President	 	 

11

 

	 	 	 	 	 	 	 
	 

	 	 	 	ELINUX.COM, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Dan DeVries

Name: Dan DeVries

Title: President	 	 

12

 

	 	 	 	 	 	 	 
	 

	 	 	 	WAREFORCE CORP.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ William C. Neary

Name: William C. Neary

Title: Chairman	 	 

13

 

	 	 	 	 	 	 	 
	 

	 	 	 	COMPUTABILITY LIMITED
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Kris Rogers

Name: Kris Rogers

Title: President	 	 

14

 

	 	 	 	 	 	 	 
	 

	 	 	 	AF SERVICES, LLC
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Simon Abuyounes

Name: Simon Abuyounes

Title: President	 	 

15

 

	 	 	 	 	 	 	 
	 

	 	 	 	PC MALL GOV, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Alan Bechara

Name: Alan Bechara

Title: President	 	 

16

 

	 	 	 	 	 	 	 
	 

	 	 	 	SIFY, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Dan DeVries

Name: Dan DeVries

Title: President	 	 

17

 

	 	 	 	 	 	 	 
	 

	 	 	 	ONSALE, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Abe Almbashir

Name: Abe Almbashir

Title: Secretary	 	 

18

 

	 	 	 	 	 	 	 
	 

	 	 	 	AV ACQUISITION, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Dan DeVries

Name: Dan DeVries

Title: President	 	 

19

 

	 	 	 	 	 	 	 
	 

	 	 	 	GMR SYSTEMS, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Alan Bechara

Name: Alan Bechara

Title: President	 	 

20

 

	 	 	 	 	 	 	 
	 

	 	 	 	MALL ACQUISITION 3, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Dan DeVries

Name: Dan DeVries

Title: President	 	 

21

 

	 	 	 	 	 	 	 
	 

	 	 	 	MALL MARKETING, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ John Stimson

Name: John Stimson

Title: Secretary	 	 

22

 

	 	 	 	 	 	 	 
	 

	 	 	 	OSRP, LLC
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Dan DeVries

Name: Dan DeVries

Title: President	 	 

23

 

	 	 	 	 	 	 	 
	 

	 	 
	 	PC MALL CANADA, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ Kris Rogers

Name: Kris Rogers

Title: President	 	 

24

 

	 	 	 	 	 	 	 
	 

	 	 	 	SARCOM, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By: /s/ William C. Neary

Name: William C. Neary

Title: Chairman	 	 

25

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