Document:

Exhibit 4.1
                                                                    -----------

                                REVOLVING CREDIT
                             AND SECURITY AGREEMENT

         This  Revolving  Credit  and Security  Agreement is made as of July 27,
2001 by and between GMAC  COMMERCIAL  CREDIT LLC  ("Lender"),  having offices at
1290 Avenue of the  Americas,  New York,  New York 10104 and MORGAN  DRIVE AWAY,
INC. and TDI, INC.  (individually  and  collectively,  jointly and severally the
"Borrower"),  having its  principal  place of  business at 2746 Old U.S. 20 West
Elkhart, Indiana 46515.

         WHEREAS, the Borrower has requested that Lender make loans and advances
available to Borrower; and

         WHEREAS, Lender has agreed to make such loans and advances to Borrower,
as Borrower's sole Working Capital Lender, on the terms and conditions set forth
in this Agreement.

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

         1. General  Definitions.  When used in this  Agreement,  the  following
terms shall have the following meanings:

         "Accession"  means and includes goods that are  physically  united with
other goods in such a manner  that the  identity  of the  original  goods is not
lost.

         "Account"  ,except as used in "account for", means and includes a right
to payment of a monetary obligation,  whether or not earned by performance,  (i)
for property  that has been or is to be sold,  leased,  licensed,  assigned,  or
otherwise disposed of, (ii) for services rendered or to be rendered, (iii) for a
policy of  insurance  issued or to be issued,  (iv) for a  secondary  obligation
incurred or to be incurred, (v) for energy provided or to be provided,  (vi) for
the use or hire of a vessel under a charter or other contract, (vii) arising out
of the use of a credit or charge  card or  information  contained  on or for use
with the card,  or  (viii) as  winnings  in a  lottery  or other  game of chance
operated  or  sponsored  by a state,  governmental  unit of a State,  or  person
licensed or authorized to operate the game by a State or governmental  unit of a
State. The term includes  health-care-insurance  receivables.  The term does not
include (i) rights to payment evidenced by chattel paper or an instrument,  (ii)
commercial tort claims, (iii) deposit accounts,  (iv) investment  property,  (v)
letter-of-credit  rights or  letters of credit,  or (vi)  rights to payment  for
money or funds  advanced or sold,  other than rights arising out of the use of a
credit or charge card or information contained on or for use with the card.

         "Advance  Rates"  means the  T-Bill  Advance  Rate and the  Receivables
Advance Rate.

         "Affiliate"  of any Person  means (a) any  Person  which,  directly  or
indirectly,  is in control of, is controlled by, or is under common control with
such Person,  or (b) any Person who is a director or officer (i) of such Person,
(ii) of any Subsidiary of such Person or (iii) of any Person described in clause
(a) above. For purposes of this  definition,  control of a Person shall mean the
power,  direct  or  indirect,  (i) to vote 5% or more of the  securities  having
ordinary  voting power for the election of directors of such Person,  or (ii) to
direct or cause the  direction  of the  management  and  policies of such Person
whether by contract or otherwise.

         "Alternate Base Rate" means, for any day, a rate per annum equal to the
higher of (i) the Prime  Rate in effect on such day and (ii) the  Federal  Funds
Rate in effect on such day plus 1/2 of 1%.

         "Ancillary Agreements" means all agreements, instruments, and documents
including, without limitation, mortgages, pledges, powers of attorney, consents,
assignments,  contracts,  notices, security agreements, trust agreements whether
heretofore,  concurrently,  or hereafter executed by or on behalf of Borrower or
delivered  to  Lender,  relating  to  this  Agreement  or  to  the  transactions
contemplated by this Agreement.

         "Bank" means The Bank of New York.

         "Borrowing  Base  Certificate"  shall  have the  meaning  set  forth in
Section 9.

         "Business Day" means any day other than a day on which commercial banks
in New York are authorized or required by law to close.

         "Change of  Ownership"  means (a) any transfer  (whether in one or more
transactions)  of ownership of not less than 50% of the common stock of Borrower
held by the Original  Owners  (including for the purposes of the  calculation of
percentage ownership, any shares of common stock into which any capital stock of
Borrower held by any of the Original Owners is convertible or for which any such
shares of the capital  stock of Borrower or of any other Person may be exchanged
and any shares of common stock issuable to such Original Owners upon exercise of
any warrants,  options or similar rights which may at the time of calculation be
held by such Original  Owners) to a Person who is neither an Original  Owner nor
an Affiliate of an Original  Owner or (b) any merger,  consolidation  or sale of
substantially all of the property or assets of Borrower.

         "Closing Date" means the date set forth in the first  paragraph of this
Agreement or such other date as may be agreed upon by the parties hereto.

         "Chattel  Paper" means and  includes a record or records that  evidence
both a monetary obligation and a security interest in specific goods, a security
interest in specific goods and software used in the goods,  a security  interest
in specific goods and license of software used in the goods, a lease of specific
goods,  or a lease of specific  goods and license of software used in the goods.
In this paragraph,  "monetary obligation" means a monetary obligation secured by
the goods or owed under a lease of the goods and includes a monetary  obligation
with  respect to  software  used in the  goods.  The term does not  include  (i)
charters  or  other  contracts  involving  the use or hire of a  vessel  or (ii)
records that  evidence a right to payment  arising out of the use of a credit or
charge  card  or  information  contained  on or for  use  with  the  card.  If a
transaction  is evidenced by records  that  include an  instrument  or series of
instruments, the group of records taken together constitutes Chattel Paper.

         "Collateral" means and includes:

                  (A) all Accounts;

                  (B) all Goods, all Inventory, all Equipment, and all Software;

                  (C) all General Intangibles;

                  (D) all Investment Property, and all Instruments;

                  (E) all Deposit Accounts, and all Documents;

                  (F) all Chattel Paper,  all Tangible  Chattel  Paper,  and all
Electronic Chattel Paper;

                  (G) all  Commodity  Contracts,  all  Commodity  Accounts,  all
Letter-of-Credit Rights;

                  (H) all  Supporting  Obligations  pertaining  to,  arising  in
connection with or relating to (A), (B), (C), (D), (E), (F), and (G);

                  (I) all books, records,  ledgercards,  files,  correspondence,
computer programs,  tapes, disks and related data processing  software (owned by
Borrower or in which it has an interest)  which at any time  evidence or contain
information  relating to (A),  (B), (C), (D), (E), (F), (G) and (H) above or are
otherwise  necessary  or  helpful  in  the  collection  thereof  or  realization
thereupon;

                  (J) all  cash  held  as  cash  collateral  to the  extent  not
otherwise  constituting  Collateral,  all other cash or  property at any time on
deposit  with  or held by  Lender  for the  account  of  Borrower  (whether  for
safekeeping,  custody, pledge,  transmission or otherwise), (ii) all investments
and reinvestments  (however  evidenced) of amounts from time to time credited to
such  accounts,  and  (iii) all  interest,  dividends,  distributions  and other
proceeds  payable on or with respect to (x) such  investments and  reinvestments
and (y) such accounts; and

                  (K) all products and Proceeds of, and all  Accessions to, (A),
(B), (C), (D), (E), (F), (G), (H), (I) and (J) above (including, but not limited
to, all claims to items  referred to in (A),  (B), (C), (D), (E), (F), (G), (H),
(I) and (J) above) and all claims of Borrower  against third parties for (x) (i)
loss of,  damage to, or  destruction  of, and (ii) payments due or to become due
under leases,  rentals and hires of, any or all of (A), (B), (C), (D), (E), (F),
(G), (H), (I) and (J) above and (y) proceeds payable under, or unearned premiums
with respect to, policies of insurance in whatever form.

         "Commodity  Account"  means and  includes  an account  maintained  by a
commodity  intermediary in which a commodity contract is carried for a commodity
customer.

         "Commodity  Contract" means and includes a commodity  futures contract,
an option on a  commodity  futures  contract,  a  commodity  option,  or another
contract if the contract or option is:

         (A) traded on or subject to the rules of a board of trade that has been
designated  as a  contract  market  for  such a  contract  pursuant  to  federal
commodities laws; or

         (B) traded on a foreign commodity board of trade,  exchange, or market,
and  is  carried  on the  books  of a  commodity  intermediary  for a  commodity
customer.

         "Contract Rate" means an interest rate per annum equal to (i) Alternate
Base Rate plus (ii) one half percent  (1/2%),  or (ii)  provided  there does not
exist an Event of Default and provided  Borrower on 3 days prior written  notice
to Lender requests Lender to do so, interest shall be calculated at a rate equal
to three  percent  (3%) in excess  the  LIBOR as  published  in the Wall  Street
Journal averaged monthly; provided,  however, the Contract Rate shall not at any
time be less than six percent  (6%),  and further  provided that if the LIBOR is
not published in the Wall Street Journal or Lender in good faith determines that
LIBOR may no longer be used to  calculate  the Contract  Rate the Contract  Rate
shall in such  event be  calculated  on the basis of the  Alternate  Base  Rate.
Provided  there  does not  then  exist an Event  of  Default,  after  the  first
anniversary  of the Closing  Date Lender  shall  adjust the  Contract  Rate with
respect to  Revolving  Credit  Advances on a quarterly  basis,  to the rates set
forth on the grid below, pursuant to the applicable corresponding calculation of
the ratio of Funded Debt to EBITDA computed on a rolling four quarter basis:

Funded Debt (including the face amount of    Average LIBOR    Alternate Base
outstanding Letters of Credit/EBITDA)        plus Margin      Rate plus Margin
-------------------------------------------  --------------   ----------------
Greater than 4.5                                3.5%                 1.00%
Greater than 3.0 but less than 4.5              3.0%                  .50%
Greater than 2.0 but less than 3.0              2.75%                 .25%
Less than 2.0                                   2.5%                 0.00%

         "Current   Assets"  at  a  particular   date,   means  all  cash,  cash
equivalents, accounts and inventory of Borrower and all other items which would,
in conformity  with GAAP, be included under current assets on a balance sheet of
Borrower as at such date; provided, however, that such amounts shall not include
(a) any  amounts  for any  indebtedness  owing by an  Affiliate  of  Borrower to
Borrower, unless such indebtedness arose in connection with the sale of goods or
other property in the ordinary course of business and would otherwise constitute
current  assets in  conformity  with GAAP,  (b) any shares of stock issued by an
Affiliate  of  Borrower,  (c) the cash  surrender  value  of any life  insurance
policy,  or (d) any assets which would be classified as intangible  assets under
GAAP.

         "Current  Liabilities"  at a particular  date,  means all amounts which
would,  in conformity  with GAAP, be included  under  current  liabilities  on a
balance sheet of Borrower as at such date, but in any event  including,  without
limitation,  the amounts of (a) all indebtedness  payable on demand,  or, at the
option of the Person to whom such  indebtedness  is owed,  not more than  twelve
(12) months  after such date,  (b) any  payments in respect of any  indebtedness
(whether  installment,  serial  maturity,  sinking  fund  payment or  otherwise)
required to be made not more than twelve  (12) months  after such date,  (c) all
reserves in respect of liabilities or indebtedness  payable on demand or, at the
option of the Person to whom such  indebtedness  is owed,  not more than  twelve
(12) months  after such date,  the  validity of which is contested at such date,
and (d) all  accruals  for  federal or other taxes  measured  by income  payable
within a twelve (12) month period.

         "Customer"  means and includes  the account  debtor with respect to any
Receivable, the prospective purchaser of goods, services or both with respect to
any contract or contract right,  and/or any party who enters into or proposes to
enter into any contract or other  arrangement  with Borrower,  pursuant to which
Borrower is to deliver any personal property or perform any services.

         "Default  Rate"  means a rate  equal to two  percent  (2%) per annum in
excess of the Contract Rate or the Overadvance Rate, as the case may be.

         "Deposit Account" means and includes a demand, time, savings, passbook,
or similar account  maintained with a bank. The term does not include investment
property or accounts evidenced by an instrument.

         "Dispute"  means any cause that has been asserted for nonpayment of one
or more  particular  Receivables,  including,  without  limitation,  any alleged
defense, counterclaim,  offset, dispute or other claim (real or merely asserted)
whether  arising  from or relating to the sale of goods or rendition of services
or arising from or relating to any other transaction or occurrence.

         "Document"  means and  includes a document of title or a receipt of the
type described in Section 7--201(2) of the Uniform Commercial Code.

         "EBITDA"  shall  mean for any given  period (a) net income (or loss) of
Borrower  determined in accordance with GAAP, less (b) all extraordinary  gains,
plus (c) all  extraordinary  losses,  plus (d) cash payments of taxes,  plus (e)
cash payments of interest  expense,  plus (f)  depreciation and amortization and
other non-cash expenses during such period.

         "Electronic  Chattel Paper" means and includes  chattel paper evidenced
by a record or records consisting of information stored in an electronic medium.

         "Eligible   Receivables"  means  and  includes  each  Receivable  which
conforms to the  following  criteria:  (a)  shipment of the  merchandise  or the
rendition  of  services  has  been  completed;   (b)  no  return,  rejection  or
repossession of the merchandise has occurred;  (c) merchandise or services shall
not have been  rejected or subject to a Dispute by the  Customer and there shall
not have been asserted any Dispute;  (d) continues to be in full conformity with
the  representations  and  warranties  made by Borrower  to Lender with  respect
thereto;  (e) Lender is, and continues to be, satisfied with the credit standing
of the Customer in relation to the amount of credit extended;  (f) is documented
by an invoice  in a form  approved  by Lender and shall not be unpaid  more than
ninety (90) days from invoice  date nor more than sixty days from due date;  (g)
is owed by a  customer  from whom less than  fifty  percent  (50%) of the unpaid
amount of invoices due from such  Customer  remain  unpaid more than ninety (90)
days from  invoice  date nor more  than  (60)  days  from due  date;  (h) is not
evidenced by chattel  paper or an  instrument  of any kind with respect to or in
payment of the  Receivable  unless such  instrument  is duly  endorsed to and in
possession of Lender or  represents a check in payment of a  Receivable;  (i) if
the Customer is located outside of the United States or Canada,  the goods which
gave rise to such  Receivable  were shipped after receipt by Borrower from or on
behalf  of the  Customer  of an  irrevocable  letter  of  credit,  assigned  and
delivered  to Lender and  confirmed  by a financial  institution  acceptable  to
Lender and is in form and substance  acceptable  to Lender,  payable in the full
amount of the Receivable in United States dollars at a place of payment  located
within the United States;  (j) is not subject to any lien,  other than Permitted
liens; (k) does not arise out of transactions with any employee, officer, agent,
director,  stockholder or Affiliate of Borrower; (l) is payable to Borrower; (m)
does not  arise  out of a bill and hold  sale  prior  to  shipment  and,  if the
Receivable arises out of a sale to any Person to which Borrower is indebted, the
amount of such indebtedness,  and any anticipated  indebtedness,  is deducted in
determining  the face  amount  of such  Receivable;  (n) is net of any  returns,
discounts,  claims, credits and allowances;  (o) if the Receivable arises out of
contracts between Borrower and the United States,  any state, or any department,
agency or  instrumentality  of any of them,  Borrower has so notified Lender, in
writing,  prior to the creation of such  Receivable,  and such  Receivable is in
excess of similar  Receivables  in the aggregate  amount of $250,000 at any time
outstanding  and,  if Lender so  requests,  there has been  compliance  with any
governmental  notice or approval  requirements,  including,  without limitation,
compliance  with the Federal  Assignment  of Claims Act; (p) is a good and valid
account  representing  an  undisputed  bona fide  indebtedness  incurred  by the
Customer  therein  named,  for a fixed sum as set forth in the invoice  relating
thereto with respect to an unconditional sale and delivery upon the stated terms
of goods sold by Borrower,  or work, labor and/or services rendered by Borrower;
and (q) is  otherwise  satisfactory  to Lender as  determined  in good  faith by
Lender in the reasonable exercise of its discretion.

         "Equipment" means and includes all of Borrower's now owned or hereafter
acquired equipment,  machinery and goods (excluding  Inventory),  whether or not
constituting  fixtures,   including,   without  limitation,   plant  and  office
equipment,  tools, dies, parts, data processing  equipment,  furniture and trade
fixtures,  trucks, trailers, loaders and other vehicles and all replacements and
substitutions therefor and all accessions thereto.

         "Event of Default"  means the occurrence of any of the events set forth
in Section 18.

         "Federal  Funds Rate" means,  for any day, the weighted  average of the
rates on  overnight  Federal  funds  transactions  with  members of the  Federal
Reserve System arranged by Federal funds brokers,  as published for such day (or
if such day is not a Business Day, for the next  preceding  Business Day) by the
Federal  Reserve Bank of New York,  or if such rate is not so published  for any
day which is a Business  Day,  the  average of  quotations  for such day on such
transactions  received by The Bank of New York from three  Federal funds brokers
of recognized standing selected by The Bank of New York.

         "Fixed  Charge  Coverage"  shall mean and include,  with respect to any
fiscal  period,  an amount  equal to the  product  of (a)  EBITDA  less  Capital
Expenditures, divided by (b) cash interest paid, plus principal paid, plus taxes
paid, plus dividends paid.

         "Formula Amount" shall have the meaning set forth in Section 2(a).

         "Funded Debt" shall mean for Borrower,  liabilities for borrowed money,
including without limitation,  the Revolving  Advances,  undrawn or unreimbursed
letters  of  credit,  capitalized  lease  obligations  and notes  payable to any
affiliate, subsidiary or related party.

         "GAAP" means generally accepted  accounting  principles,  practices and
procedures in effect from time to time.

         "General   Intangible"  means  and  includes  any  personal   property,
including things in action, other than Accounts,  Chattel Paper, commercial tort
claims, deposit accounts,  Documents,  goods, instruments,  investment property,
Letter-of-Credit  Rights,  letters  of credit,  money,  and oil,  gas,  or other
minerals before extraction. The term includes payment intangibles and software.

         "Goods"  means and includes all things that are movable when a security
interest attaches. The term includes (i) fixtures,  (ii) standing timber that is
to be cut and removed under a conveyance or contract for sale,  (iii) the unborn
young of animals,  (iv) crops grown,  growing, or to be grown, even if the crops
are produced on trees,  vines, or bushes,  and (v) manufactured  homes. The term
also  includes  a  computer   program  embedded  in  goods  and  any  supporting
information provided in connection with a transaction relating to the program if
(i)  the  program  is  associated  with  the  goods  in  such a  manner  that it
customarily  is considered  part of the goods,  or (ii) by becoming the owner of
the goods, a person  acquires a right to use the program in connection  with the
goods.  The term does not  include a  computer  program  embedded  in goods that
consists  solely of the medium in which the program is  embedded.  The term also
does not include  accounts,  chattel  paper,  commercial  tort  claims,  deposit
accounts,  documents,  general  intangibles,  instruments,  investment property,
letter-of-credit  rights,  letters  of  credit,  money,  or oil,  gas,  or other
minerals before extraction.

         "Guarantor"  means  individually,  The Morgan Group, Inc. and any other
Person who may hereafter  guarantee  payment or  performance of the whole or any
part of the Obligations and "Guarantors" means collectively all such Persons.

         "Guaranty  Agreements"  means  collectively  the  Guaranties  which are
executed by each Guarantor in favor of Lender.

         "Hazardous   Substance"  means,   without  limitation,   any  flammable
explosives,  radon,  radioactive  materials,  asbestos,  urea  formaldehyde foam
insulation,   polychlorinated  byphenyls,   petroleum  and  petroleum  products,
methane, hazardous materials, hazardous wastes, hazardous or toxic substances or
related materials as defined in CERCLA, the Hazardous  Materials  Transportation
Act, as amended (49 U.S.C.  Sections 1801, et seq.), RCRA, Articles 15 and 27 of
the New  York  State  Environmental  Conservation  Law or any  other  applicable
environmental law and in the regulations adopted pursuant thereto.

         "Incipient  Event of Default"  means any act or event  which,  with the
giving  of notice  or  passage  of time or both,  would  constitute  an Event of
Default.

         "Inventory" means and includes all of Borrower's now owned or hereafter
acquired goods, merchandise and other personal property, wherever located, to be
furnished  under any  contract  of  service  or held for sale or lease,  all raw
materials,  work in process,  finished  goods and  materials and supplies of any
kind, nature or description which are or might be used or consumed in Borrower's
business  or used in selling or  furnishing  such goods,  merchandise  and other
personal  property,  and all documents of title or other documents  representing
them.

         "Investment   Property"   means  and   includes  a  security,   whether
certificated  or  uncertificated,   security  entitlement,  securities  account,
commodity contract, or commodity account.

         "LIBOR"  means the London  Interbank  Offering Rate for 30 day funds as
published  daily  in the Wall  Street  Journal  and  averaged  for the  month of
calculation.

         "Letters of Credit"  means the letters of credit caused to be opened by
Lender  for  the  benefit  of  Borrower  in an  aggregate  amount  at  any  time
outstanding not to exceed $10,000,000.

         "Letter-of-Credit  Right"  means and  includes  a right to  payment  or
performance  under a  letter  of  credit,  whether  or not the  beneficiary  has
demanded or is at the time entitled to demand payment or  performance.  The term
does not include the right of a  beneficiary  to demand  payment or  performance
under a letter of credit

         "Loans" means the Revolving Credit Advances and all other extensions of
credit hereunder.

         "Maximum Revolving Amount" means $12,500,000.

         "Minimum Excess Borrowing  Availability"  means the amount by which the
lesser  of the (i) the  Maximum  Revolving  Amount  or the (ii)  Formula  Amount
exceeds the Loans.

         "Net Face Amount" of  Receivables  means the gross face invoice  amount
thereof,  less  returns,  discounts  allowed under any terms of the invoice (the
calculation  of which shall be  determined  by Lender where  optional  terms are
given),  anticipation or any other unilateral deductions taken by Customers, and
credits and allowances to Customers of any nature.

         "Net Worth" at a particular  date,  shall mean the aggregate  amount of
all Stockholder's  Equity of Borrower,  as may properly be classified as such in
accordance with GAAP consistently applied.

         "Obligations"  means and  includes  all  Loans,  all  advances,  debts,
liabilities,  obligations,  covenants  and duties owing by Borrower to Lender of
every  kind  and  description  (whether  or not  evidenced  by any note or other
instrument  and  whether or not for the payment of money or the  performance  or
non-performance of any act), direct or indirect,  absolute or contingent, due or
to become due,  contractual  or tortious,  liquidated or  unliquidated,  whether
existing by  operation of law or  otherwise  now  existing or hereafter  arising
including,  without  limitation,  any debt,  liability or obligation  owing from
Borrower to others which Lender may have obtained by assignment or otherwise and
further  including,  without  limitation,  all  interest,  charges  or any other
payments  Borrower is required to make by law or otherwise arising under or as a
result  of this  Agreement  and the  Ancillary  Agreements,  together  with  all
reasonable  expenses and  reasonable  attorneys'  fees  chargeable to Borrower's
account or incurred by Lender in  connection  with  Borrower's  account  whether
provided for herein or in any Ancillary Agreement.

         "Original Owners" means The Morgan Group, Inc.

         "Overadvance  Rate" means a rate equal to one percent (1%) per annum in
excess of the Contract Rate.

         "Permitted  Liens" means (i)  statutory  liens  consisting  of liens of
carriers,  warehousemen,  mechanics  and  materialmen  incurred in the  ordinary
course of  business  securing  sums not  overdue;  (ii)  liens  incurred  in the
ordinary   course  of  business  in  connection   with  workers'   compensation,
unemployment  insurance  or other forms of  governmental  insurance or benefits,
relating to  employees,  securing  sums (a) not overdue or (b) being  diligently
contested in good faith provided that adequate reserves with respect thereto are
maintained  on the books of Borrower  in  conformity  with GAAP;  (iii) liens in
favor of Lender;  (iv)  liens for taxes (a) not yet due or (b) being  diligently
contested in good faith,  provided that adequate  reserves with respect  thereto
are  maintained  on the books of Borrower  in  conformity  with GAAP;  (v) liens
incurred  in the  ordinary  course of  business  to secure  the  performance  of
tenders,   statutory  obligations,   appeal  bonds,  bids,  leases,   government
contracts,  and other  similar  obligations  provided they are not senior to the
lien  of  Lender  in  any  of  the  Collateral;  (vi)  easements,  restrictions,
rights-of-way  and  other  similar  matters  of  records  provided  they  do not
materially  impair the use or value of the  Collateral;  (vii) any attachment or
judgement lien (including  judgement or appeal bonds) which shall within 15 days
after the entry thereof have been  discharged,  bonded or the execution  thereof
stayed pending  appeal,  or which shall have been discharged or bonded within 15
days after the  expiration  of such stay provided such lien is not senior to the
lien of Lender in the Collateral; (viii) any interest, title or lien of a lessor
under any  operating  lease of Equipment;  and (ix) liens  specified on Schedule
1(A) hereto.

         "Person"  means  an  individual,  partnership,  corporation,  trust  or
unincorporated organization,  or a government or agency or political subdivision
thereof.

         "Prime  Rate" means the prime  commercial  lending  rate of the Bank as
publicly announced in New York, New York to be in effect from time to time, such
rate to be adjusted automatically,  without notice, on the effective date of any
change in such rate.  This rate of interest is determined  from time to time and
is  neither  tied  to any  external  rate  of  interest  or  index  nor  does it
necessarily  reflect  the  lowest  rate  of  interest  actually  charged  to any
particular class or category of customers.

         "Receivables"  means  and  includes  all of  Borrower's  now  owned  or
hereafter  acquired  Accounts  and  contract  rights,   Instruments,   insurance
proceeds,  Documents,  Chattel  Paper,  Letters-of-Credit  Rights and Borrower's
rights to receive payment under the letters of credit, any and all rights to the
payment or receipt of money or other forms of  consideration  of any kind at any
time now or hereafter owing or to be owing to Borrower, all proceeds thereof and
all files in which Borrower has any interest whatsoever  containing  information
identifying or pertaining to any of Borrower's Receivables, together with all of
Borrower's  rights to any  merchandise  which is  represented  thereby,  and all
Borrower's  right,   title,   security  and  guaranties  with  respect  to  each
Receivable,  including,  without limitation,  all rights of stoppage in transit,
replevin and reclamation and all rights as an unpaid vendor.

         "Receivables  Advance  Rate"  shall have the  meaning  set forth in the
definition of Receivables Availability.

         "Receivables   Availability"  means  the  amount  of  Revolving  Credit
Advances  against Eligible  Receivables  Lender may from time to time during the
term of this  Agreement  make  available  to  Borrower  up to 85%  ("Receivables
Advance Rate") of the Net Face Amount of Borrower's Eligible Receivables.

         "Reports" shall have the meaning set forth in Section 14.

         "Retained Goods" shall have the meaning set forth in Section 8(h).

         "Revolving Credit Advances" shall have the meaning set forth in Section
2(a).

         "Sanction/Embargo Programs" shall mean economic and other sanctions and
embargo program restrictions  promulgated by the government of the United States
of America  or any office or agency  thereof  including  but not  limited to the
President and the Office of Foreign Assets  Control of the Treasury  Department,
or either of them.

         "Settlement Date" means one (1) Business Day after the day on which the
applicable Receivable is actually collected by Lender.

         "Software"  means and  includes a computer  program and any  supporting
information  provided in connection with a transaction  relating to the program.
The term does not include a computer  program that is included in the definition
of goods.

         "Supporting  Obligation" means and includes a letter-of-credit right or
secondary  obligation  that supports the payment or  performance  of an account,
chattel paper, a document,  a general intangible,  an instrument,  or investment
property.

         "Subsidiary" of any Person means a corporation or other entity of whose
shares of stock or other ownership interests having ordinary voting power (other
than stock or other ownership  interests having such power only by reason of the
happening  of a  contingency)  to  elect a  majority  of the  directors  of such
corporation,  or other Persons performing similar functions for such entity, are
owned, directly or indirectly, by such Person.

         "T-Bill  Advance  Rate"  shall  have  the  meaning  set  forth  in  the
definition of T-Bill Availability.

         "T-Bill  Availability"  means an amount  equal to  ninety-five  percent
(95%)  ("T-Bill  Advance  Rate") of the face amount of Treasury  Bills which are
pledged to Lender as to which Lender has a perfected first security interest and
if any such Treasury Bill held by a brokerage firm or bank such Treasury Bill is
subject  to  a  control  agreement  with  such  holder  in  form  and  substance
satisfactory to, and in favor of, Lender.

         "Tangible  Net Worth" at a particular  date,  shall mean the  aggregate
amount of all Stockholder's Equity of Borrower less Goodwill, as may properly be
classified as such in accordance with GAAP consistently applied.

         "Term" means the Closing Date to the third  anniversary  of the Closing
Date subject to acceleration upon the occurrence of an Event of Default or other
termination hereunder.

         "Total  Liabilities"  at a particular  date means all  Indebtedness  of
Borrower as at such date.

         "Working  Capital" at a  particular  date means the excess,  if any, of
Current Assets over Current Liabilities at such date.

              (A) Accounting  Terms. Any accounting terms used in this Agreement
which are not  specifically  defined shall have the meanings  customarily  given
them in accordance with GAAP.

              (B)  Other  Terms.  All other  terms  used in this  Agreement  and
defined  in the  Uniform  Commercial  Code as  adopted in the State of New York,
shall have the meaning given therein unless otherwise defined herein.

         2. Loans.

         (a)  Subject to the terms and  conditions  set forth  herein and in the
Ancillary   Agreements,   Lender  shall  make  revolving  credit  advances  (the
"Revolving  Credit  Advances")  to  Borrower  from time to time  during the Term
which, in the aggregate at any time  outstanding,  will not exceed the lesser of
(x) the Maximum Revolving Amount or (y) an amount equal to the sum of:

              (i) Receivables Availability, plus

              (ii) T-Bill Availability, minus

              (iii) the face amount of any outstanding Letters of Credit, minus

              (iv)  such  reserves  as  Lender  may in  its  sole  and  absolute
discretion deem proper and necessary from time to time.

         The sum of 2(a)(i) plus 2(a)(ii) minus  2(a)(iii)  minus 2(a)(iv) shall
be referred to as the "Formula Amount". In this regard,  Borrower agrees that it
shall submit a Borrowing Base  Certificate to Lender,  in form and substance and
with such frequency, as more fully described in Section 9 below, to include such
calculations,  in each instance  that Lender may deem  necessary or desirable in
order to verify whether Borrower is in compliance with the preceding limitations
pertaining to Revolving Credit Advances.

         (b) Notwithstanding the limitations set forth above, Lender retains the
right  to lend  Borrower  from  time to time  such  amounts  in  excess  of such
limitations as Lender may determine in its sole discretion.

         (c) Borrower  acknowledges that the exercise of Lender's  discretionary
rights  hereunder  may result  during the term of this  Agreement in one or more
increases or decreases in the Advance Rates and Borrower  hereby consents to any
such increases or decreases  which may limit or restrict  advances  requested by
Borrower,  provided  that the  Lender  shall  notify  Borrower  not less  than 5
Business Days prior to the effective date of any decrease in Advance Rates.

         (d) If Borrower  does not pay any  interest,  fees,  costs,  charges or
commissions  to  Lender  when  due,  Borrower  shall  thereby  be deemed to have
requested,  and Lender is hereby authorized at its discretion to make and charge
to Borrower's account, a Revolving Credit Advance to Borrower as of such date in
an amount equal to such unpaid interest, fees, costs, charges or commissions.

         (e) Any sums expended by Lender due to Borrower's failure to perform or
comply with its obligations  under this Agreement,  including but not limited to
the payment of taxes,  insurance  premiums or  leasehold  obligations,  shall be
charged to  Borrower's  account as a Revolving  Credit  Advance and added to the
Obligations.

         (f) Lender will  account to Borrower  monthly  with a statement  of all
Loans and other advances,  charges and payments made pursuant to this Agreement,
and  such  account  rendered  by  Lender  shall be  deemed  final,  binding  and
conclusive  unless  Lender is notified  by  Borrower in writing to the  contrary
within sixty (60) days of the date each account was rendered specifying the item
or items to which objection is made.

         (g) During the Term, Borrower may borrow, prepay and reborrow Revolving
Credit Advances, all in accordance with the terms and conditions hereof.

         (h) The aggregate  balance of Loans  outstanding  at any time shall not
exceed the Maximum Revolving  Amount.  The aggregate balance of Revolving Credit
Advances outstanding at any time shall not exceed the Formula Amount.

         3.  Repayment  of  Loans.  Borrower  shall  be  required  to (i) make a
mandatory  prepayment  hereunder  at any  time  that the  aggregate  outstanding
principal balance of the Loans made by Lender to Borrower hereunder is in excess
of the Maximum Revolving Amount or the Formula Amount in an amount equal to such
excess,  and (ii)  repay on the  expiration  of the Term (x) the then  aggregate
outstanding  principal  balance of Revolving  Credit  Advances made by Lender to
Borrower hereunder together with accrued and unpaid interest,  fees, charges and
commissions  and (y) all other amounts owed Lender under this  Agreement and the
Ancillary Agreements.

         4. Procedure for Revolving Credit Advances. The Borrower may by written
notice request a borrowing of Revolving  Credit  Advances prior to 1:00 P.M. New
York time on the Business Day of its request to incur,  on that day, a Revolving
Credit Advance.  All Revolving Credit Advances shall be disbursed from whichever
office or other place Lender may designate from time to time and,  together with
any and all other  Obligations  of Borrower  to Lender,  shall be charged to the
Borrower's  account on Lender's  books.  The proceeds of each  Revolving  Credit
Advance made by the Lender shall be made available to the Borrower on the day so
requested by way of credit to the Borrower's  operating account  maintained with
such bank as Borrower  designated  to Lender.  Any and all  Obligations  due and
owing  hereunder  may be  charged to  Borrower's  account  and shall  constitute
Revolving Credit Advances.

         5. Interest; Fees; Commissions.

         (a) Interest.

              (i) Except as modified  by Section  5(a)(iii)  below,  interest on
Revolving  Credit  Advances  shall be payable in arrears on the last day of each
month. Interest payments hereunder may, at Lender's option, be charged by Lender
to Borrower's account.  Interest charges shall be computed on the unpaid balance
of the Revolving Credit Advances for each day they are outstanding at a rate per
annum equal to (i) with respect to Revolving Credit Advances, the Contract Rate.
In the event the  aggregate  amount of  Revolving  Credit  Advances  exceeds the
Formula  Amount  for five (5) or more days in any  month  during  the Term,  the
average  daily  balance of  Revolving  Credit  Advances in that month shall bear
interest at the Overadvance Rate.

              (ii)  Interest  shall be  computed  on the  basis of  actual  days
elapsed over a 360-day year.

              (iii) Upon the occurrence  and during the  continuance of an Event
of Default, interest shall be payable at the Default Rate.

              (iv)  Notwithstanding  the  foregoing,  in no event shall interest
exceed the maximum rate permitted under any applicable law or regulation, and if
any provision of this Agreement or an Ancillary Agreement is in contravention of
any such law or regulation,  such  provision  shall be deemed amended to provide
for interest at said maximum rate and any excess amount shall either be applied,
at  Lender's  option,  to the  outstanding  Loans in such order as Lender  shall
determine or refunded by Lender to Borrower.

              (v) Borrower shall pay  principal,  interest and all other amounts
payable  hereunder,  or under any  Ancillary  Agreement,  without any  deduction
whatsoever,  including,  but not  limited to, any  deduction  for any set-off or
counterclaim.

         (b) Fees.

              (i) Closing Fee. Upon  execution of this Agreement by Borrower and
Lender,  Borrower  shall  pay to  Lender a  closing  fee in an  amount  equal to
$25,000.

              (ii)  Administrative  Fee.  Borrower  shall  pay to  Lender on the
Closing  Date and on the first day of each month  thereafter a monthly fee in an
amount  equal to  $1,500  per  month for each  month or part  thereof  that this
Agreement is in effect.

              (iii)  Unused  Line Fee. In the event the  average  closing  daily
unpaid balances of all Revolving  Credit Advances  hereunder during any calendar
month is less than the Maximum Revolving Amount,  Borrower shall pay to Lender a
fee at a rate per annum equal to one-half of one percent (1/2%) on the amount by
which the Maximum  Revolving  Amount exceeds such average daily unpaid  balance.
Such fee shall be  calculated on the basis of a year of 360 days and actual days
elapsed,  and shall be  charged to  Borrower's  account on the first day of each
month with respect to the prior month.

              (iv) Collateral  Monitoring Fee. Upon Lender's  performance of any
collateral  monitoring,  including  but not  limited  to any field  examination,
collateral  analysis  or other  business  analysis,  the need for which is to be
determined  by  Lender  and  which  monitoring  is  undertaken  by Lender or for
Lender's  benefit,  a per diem amount equal to Lender's  then  standard rate per
person,  for each person employed to perform such monitoring,  together with all
the reasonable costs,  disbursements and expenses incurred by the Lender and the
person  performing  such collateral  monitoring,  shall be charged to Borrower's
account.

         (c) Increased  Costs.  In the event that any applicable  law, treaty or
governmental  regulation,  or any  change  therein or in the  interpretation  or
application thereof, or compliance by Lender (for purposes of this Section 5(c),
the term "Lender" shall include Lender and any  corporation or bank  controlling
Lender) with any request or  directive  (whether or not having the force of law)
from any central bank or other financial, monetary or other authority, shall:

              (i) subject Lender to any tax of any kind  whatsoever with respect
to this  Agreement  or change the basis of  taxation  of  payments  to Lender of
principal,  fees,  interest or any other amount  payable  hereunder or under any
Ancillary  Agreements  (except for changes in the rate of tax on the overall net
income  of  Lender  by the  jurisdiction  in which it  maintains  its  principal
office);

              (ii)  impose,  modify  or hold  applicable  any  reserve,  special
deposit,  assessment or similar  requirement against assets held by, or deposits
in or for the account of, advances or loans by, or other credit extended by, any
office of Lender,  including without limitation  pursuant to Regulation D of the
Board of Governors of the Federal Reserve System; or

              (iii)  impose on Lender any other  condition  with respect to this
Agreement or any Ancillary Agreements;

and the  result of any of the  foregoing  is to  increase  the cost to Lender of
making,  renewing or  maintaining  its Loans  hereunder by an amount that Lender
deems to be  material  or to  reduce  the  amount  of any  payment  (whether  of
principal,  interest or  otherwise)  in respect of any of the Loans by an amount
that Lender deems to be material,  then, in any case Borrower shall promptly pay
Lender,  upon its demand,  such additional  amount as will compensate Lender for
such additional cost or such reduction, as the case may be. Lender shall certify
the amount of such  additional  cost or reduction  and its  calculation  of such
amount  in  reasonable  detail  to  Borrower,  and such  certification  shall be
conclusive absent manifest error.

         (d) Capital Adequacy.

              (i) In the  event  that  Lender  shall  have  determined  that any
applicable law, rule, regulation or guideline regarding capital adequacy, or any
change therein, or any change in the interpretation or administration thereof by
any governmental  authority,  central bank or comparable agency charged with the
interpretation or administration  thereof, or compliance by Lender (for purposes
of this Section 5(d), the term "Lender" shall include Lender and any corporation
or bank  controlling  Lender)  with any request or directive  regarding  capital
adequacy (whether or not having the force of law) of any such authority, central
bank or comparable  agency, has or would have the effect of reducing the rate of
return on Lender's  capital as a consequence of its  obligations  hereunder to a
level below that which Lender could have achieved but for such adoption,  change
or  compliance  (taking into  consideration  Lender's  policies  with respect to
capital adequacy) by an amount deemed by Lender to be material,  then, from time
to time,  Borrower  shall pay upon  demand to Lender such  additional  amount or
amounts as will compensate Lender for such reduction. In determining such amount
or amounts,  Lender may use any reasonable averaging or attribution methods. The
protection  of this  Section  shall be  available  to Lender  regardless  of any
possible  contention  of  invalidity  or  inapplicability  with  respect  to the
applicable law, regulation or condition.

              (ii) A certificate  of Lender setting forth such amount or amounts
as shall be necessary to  compensate  Lender with respect to Section 5(d) hereof
and Lender's  calculation of such amount in reasonable detail, when delivered to
Borrower shall be conclusive absent manifest error.

         6. Security Interest.

         (a) To secure the prompt payment to Lender of the Obligations, Borrower
hereby assigns,  pledges and grants to Lender a continuing  security interest in
and to the  Collateral,  whether now owned or existing or hereafter  acquired or
arising and wheresoever located (whether or not the same is subject to Article 9
of the Uniform  Commercial  Code). All of the Borrower's  ledger sheets,  files,
records,  books of  account,  business  papers  and  documents  relating  to the
Collateral  shall,  until delivered to or removed by Lender, be kept by Borrower
in trust  for  Lender  until  all  Obligations  have  been  paid in  full.  Each
confirmatory  assignment schedule or other form of assignment hereafter executed
by Borrower shall be deemed to include the foregoing  grant,  whether or not the
same appears therein.

         (b)  Lender  may  file  one or  more  financing  statements  disclosing
Lender's  security  interest  in the  Collateral  without  Borrower's  signature
appearing thereon or Lender may sign on Borrower's behalf as provided in Section
13 hereof.  The parties agree that a carbon,  photographic or other reproduction
of  this  Agreement  shall  be  sufficient  as a  financing  statement.  If  any
Receivable  becomes  evidenced by a promissory note or any other  instrument for
the payment of money,  Borrower will promptly  deliver such instrument to Lender
appropriately endorsed.

         7. Representations  Concerning the Collateral.  Borrower represents and
warrants  (each of which such  representations  and  warranties  shall be deemed
repeated upon the making of each request for a Revolving Credit Advance and made
as of the time of each and every Revolving Credit Advance hereunder):

         (a) all the  Collateral  (i) is owned by Borrower free and clear of all
claims, liens, security interests and encumbrances (including without limitation
any claims of infringement) except (A) those in Lender's favor and (B) Permitted
Liens and (ii) is not subject to any  agreement  prohibiting  the  granting of a
security  interest  or  requiring  notice of or  consent  to the  granting  of a
security interest;

         (b) all Receivables (i) represent bona fide transactions  which require
no  further  act  under  any  circumstances  on  Borrower's  part to  make  such
Receivables payable by Customers,  (ii) to Borrower's knowledge at the time, are
not  subject  to any  Disputes;  (iii) do not  represent  bill  and hold  sales,
consignment   sales,   guaranteed   sales,  sale  or  return  or  other  similar
understandings  or obligations of any Affiliate or Subsidiary of Borrower;  (iv)
included in any Borrowing Base  Certificate as an Eligible  Receivable meets all
criteria  specified in the  definition  of Eligible  Receivables,  except as may
otherwise be  specifically  disclosed in such Borrowing  Base  Certificate or as
otherwise  theretofore  disclosed in writing to Lender;  and (v) Borrower has no
knowledge of any fact or  circumstance  particular to any customer not disclosed
to Lender in the pertinent  Borrowing Base  Certificate or otherwise in writing,
which would impair the validity or collectibility of any Receivable and that all
documents in connection with each Receivable are genuine.

         (c) in the event any amounts  due and owing from any account  debtor to
Borrower on any Eligible  Receivable shall become subject to any Dispute,  or to
any other adjustment otherwise permitted to be made in accordance with the terms
and  provisions  hereof  in the  ordinary  course of  business  and prior to the
occurrence of an Event of Default  hereunder,  Borrower agrees that it shall, at
the time of the submission of the next Borrowing Base Certificate required to be
delivered to Lender  immediately  following  the date on which  Borrower  learns
thereof,  provide Lender with notice  thereof.  Borrower  further agrees that it
shall also notify  Lender  promptly of all returns and credits in respect of any
Receivables  included  within a Borrowing Base  Certificate,  which notice shall
specify the Receivables affected.

         8.  Covenants  Concerning  the  Collateral.  During the Term,  Borrower
covenants that it shall:

         (a) not  dispose of any of the  Collateral  whether  by sale,  lease or
otherwise  except  for (i) the  sale of  Inventory  in the  ordinary  course  of
business, and (ii) the disposition or transfer of obsolete and wornout Equipment
in the  ordinary  course of business  during any fiscal year having an aggregate
fair market value of not more than  $100,000 and only to the extent that (x) the
proceeds of any such disposition are used to acquire replacement Equipment which
is subject to Lender's first priority  security  interest or (y) the proceeds of
which are remitted to Lender in reduction of the Obligations;

         (b) not  encumber,  mortgage,  pledge,  assign  or grant  any  security
interest in any  Collateral  or any of  Borrower's  other assets to anyone other
than Lender except as set forth on Schedule 1(A) attached hereto and made a part
hereof;

         (c) place notations upon Borrower's  books of account and any financial
statement  (or the notes  thereto)  prepared by  Borrower  to disclose  Lender's
security interest in the Collateral;

         (d)  defend  the  Collateral  against  the  claims  and  demands of all
parties.

         (e) keep and maintain the Equipment in good operating condition, except
for ordinary wear and tear, and shall make repairs and  replacements  thereof in
accordance with Borrower's current practices. Borrower shall not permit any such
items to  become a  fixture  to real  estate  or  accessions  to other  personal
property;

         (f) not extend  the  payment  terms of any  Receivable  without  prompt
notice thereof to Lender;

         (g) perform all other steps  requested by Lender to create and maintain
in Lender's favor a valid perfected  first security  interest in all Collateral;
and

         (h) promptly  provide  Lender with  duplicate  originals of all credits
which  Borrower  issues  to its  Customers  and  promptly  notify  Lender of any
material  Disputes.  Borrower shall settle all Disputes at no cost or expense to
Lender in accordance with its past practices.  Should Lender so elect,  upon the
occurrence of any Event of Default, Lender may at any time in its discretion (i)
withdraw Borrower's authority to issue credits to its Customers without Lender's
prior  written  consent;  (ii)  litigate  Disputes or settle them  directly with
Customers on terms  acceptable to Lender;  or (iii) direct Borrower to set aside
and identify as Lender's  property any returned or  repossessed  merchandise  or
other goods which by sale resulted in Receivables theretofore assigned to Lender
("Retained  Goods").  All Retained Goods (and the proceeds thereof) shall be (A)
held by  Borrower  in trust for  Lender as  Lender's  property,  (B)  subject to
Lender's  security  interest  hereunder,  and (C) disposed of only in accordance
with Lender's express written instructions.

         9. Collection and Maintenance of Collateral and Records.  Lender may at
any time verify Borrower's Receivables utilizing an audit control company or any
other agent of Lender. Lender or Lender's designee may notify Customers,  at any
time at Lender's sole  discretion  during the occurrence and  continuance of any
Event of Default,  of Lender's  security  interest in Receivables,  collect them
directly and charge the  collection  costs and expenses to  Borrower's  account,
but,  unless and until  Lender  does so or gives  Borrower  other  instructions,
Borrower  shall  instruct all of its  Customers  to make  payments on account of
Receivables  to an account under  Lender's  dominion and control at such bank as
Lender may  designate,  as  provided  by the terms of Section  23. To the extent
Borrower  receives  any payments on account of  Receivables,  it shall hold such
payments for Lender's  benefit in trust as Lender's trustee and promptly deliver
them to Lender in their  original  form with all necessary  endorsements  or, as
directed by Lender,  deposit  such  payments  as directed by Lender  pursuant to
Section 22 hereof.  Lender will credit  (conditional  upon final collection) all
such payments to Borrower's  account on the Settlement Date.  Promptly after the
creation of any  Receivables,  Borrower  shall  provide  Lender  with  schedules
describing  all  Receivables  created or acquired by Borrower and shall promptly
upon Lender's request,  execute and deliver  confirmatory written assignments of
such Receivables to Lender,  but Borrower's  failure to execute and deliver such
schedules or written  confirmatory  assignments  of such  Receivables  shall not
affect  or  limit  Lender's  security  interest  or other  rights  in and to the
Receivables.  Borrower shall furnish, at Lender's request,  copies of contracts,
invoices or the equivalent,  and any original shipping and delivery receipts for
all  merchandise  sold  or  services  rendered  and  such  other  documents  and
information  as Lender may require.  All of Borrower's  invoices  shall bear the
terms stated on the applicable  customer order,  and no change from the original
terms of such customer order shall be made without the prior written  consent of
Lender.  Borrower  shall provide Lender on a monthly  (within  fifteen (15) days
after the end of each month),  or more frequent basis, as requested by Lender, a
summary report of Borrower's current  Inventory,  certified as true and accurate
by Borrower's  President or Chief  Financial  Officer,  as well as an aged trial
balance of Borrower's existing accounts payable.  Borrower shall provide Lender,
as requested  by Lender,  such other  schedules,  documents  and/or  information
regarding the Collateral as Lender may require.  Without limiting the foregoing,
Borrower  shall  provide to Lender a borrowing  base  certificate  at least once
weekly  ("Borrowing  Base  Certificate"),  which  must be in form and  substance
acceptable  to Lender and which  Borrowing  Base  Certificate  shall  certify to
Lender, and shall contain sufficient  information and calculations as Lender may
deem necessary or desirable,  in order to verify any  Receivables  Availability,
T-Bill Availability the applicable Formula Amount and whether or not Receivables
included therein are Eligible  Receivables.  Without  limiting the foregoing,  a
Borrowing Base  Certificate must be executed and delivered by Borrower to Lender
at least  weekly but Lender may at any time  request  that such be executed  and
delivered at the time of or prior to each request for Revolving  Credit Advances
pursuant to Section 4. Each such Borrowing Base  Certificate  shall be delivered
to Lender at its office described in Section 25 below, on each relevant Business
Day.

         10.  Inspections.  At all times during normal  business  hours,  Lender
shall  have the right to (a) visit and  inspect  Borrower's  properties  and the
Collateral,  (b) inspect, audit and make extracts from Borrower's relevant books
and  records,  including,  but not limited to,  management  letters  prepared by
independent accountants, and (c) discuss with Borrower's principal officers, and
independent accountants,  Borrower's business,  assets,  liabilities,  financial
condition,  results of operations and business prospects.  Borrower will deliver
to Lender any instrument necessary for Lender to obtain records from any service
bureau maintaining records for Borrower.

         11. Financial Information. Borrower shall provide Lender (a) as soon as
available,  but in any event  within  ninety  (90) days after the end of each of
Borrower's  fiscal  years,  Borrower's  and  Original  Owner's  (in the  case of
Original Owner  consolidated and  consolidating)  balance sheet as at the end of
such fiscal year and the related  statements  of income,  retained  earnings and
statement of cash flow for such fiscal year,  setting forth in comparative  form
the figures as at the end of and for the previous fiscal year,  which shall have
been  reported  on by Ernst & Young LLP or other  independent  certified  public
accountants  who  shall  be  reasonably  satisfactory  to  Lender  and  shall be
accompanied by an unqualified audit report issued by such independent  certified
public accountants;  (b) as soon as available, drafts of Borrower's and Original
Owner's (in the case of Original Owner consolidated and  consolidating)  balance
sheet  as at the  end of  each  of  Borrower's  fiscal  years  and  the  related
statements  of income,  retained  earnings  and  statement of cash flow for such
fiscal year,  which have been  internally  prepared by Borrower;  (c) as soon as
available,  but in any event  within  thirty  (30) days  after the close of each
month and quarter, the balance sheet as at the end of such month and quarter and
the related statements of income,  retained earnings and changes in statement of
cash flow for such month and  quarter,  which have been  internally  prepared by
Borrower and Original  Owner's (in the case of Original Owner  consolidated  and
consolidating).  All financial  statements required under (a), (b) and (c) above
shall be prepared in accordance  with GAAP,  subject to year end  adjustments in
the case of  monthly  and  quarterly  statements.  Together  with the  financial
statements furnished pursuant to (a) above, Borrower shall deliver a certificate
of Borrower's certified public accountants  addressed to Lender stating that (i)
they have caused this Agreement and the Ancillary  Agreements to be reviewed and
(ii) in making the  examination  necessary  for the  issuance of such  financial
statements, nothing has come to their attention to lead them to believe that any
Event of Default or Incipient  Event of Default exists and, in particular,  they
have no knowledge  of any Event of Default or Incipient  Event of Default or, if
such is not the case,  specifying  such Event of Default or  Incipient  Event of
Default and its nature,  when it occurred and whether it is  continuing.  At the
times the financial statements are furnished pursuant to (a), (b) and (c) above,
a  certificate  of  Borrower's  President or Chief  Financial  Officer  shall be
delivered to Lender stating that,  based on an examination  sufficient to enable
him to make an informed  statement,  no Event of Default or  Incipient  Event of
Default exists, or, if such is not the case, specifying such Event of Default or
Incipient  Event of Default  and its  nature,  when it  occurred,  whether it is
continuing and the steps being taken by Borrower with respect to such event.  If
any internally  prepared  financial  information,  including that required under
this section, is unsatisfactory in any manner to Lender, Lender may request that
Borrower's independent certified public accountants review same.

         In addition  to the  foregoing  financial  statements,  Borrower  shall
furnish  Lender no less than  thirty  (30) days prior to the  beginning  of each
fiscal  year  commencing  with  fiscal  year  2002,  a month by month  projected
operating  budget  and cash  flow for such  fiscal  year  (including  an  income
statement  for each month and a balance sheet as at the end of the last month in
each fiscal quarter), such projections to be accompanied by a certificate signed
by  Borrower's  President  or Chief  Financial  Officer to the effect  that such
projections have been prepared on the basis of sound financial planning practice
consistent with past budgets and financial  statements and that such officer has
no reason to question the  reasonableness  of any material  assumptions on which
such projections were prepared.

         12.  Additional  Representations,  Warranties and  Covenants.  Borrower
represents and warrants (each of which such representations and warranties shall
be deemed  repeated upon the making of a request for a Revolving  Credit Advance
and made as of the time of each Revolving  Credit Advance made  hereunder),  and
covenants that:

         (a) Borrower is a corporation duly organized and validly existing under
the laws of the State of Indiana  and duly  qualified  and in good  standing  in
every other state or  jurisdiction  in which the nature of  Borrower's  business
requires such qualification, except where failure to so qualify would not have a
material adverse affect on Borrower or the Collateral;

         (b) the execution,  delivery and  performance of this Agreement and the
Ancillary   Agreements  (i)  have  been  duly   authorized,   (ii)  are  not  in
contravention  of Borrower's  certificate  of  incorporation,  by-laws or of any
indenture,  agreement or  undertaking  to which  Borrower is a party or by which
Borrower is bound and (iii) are within Borrower's corporate powers;

         (c) this Agreement and the Ancillary  Agreements executed and delivered
by Borrower are Borrower's legal, valid and binding obligations,  enforceable in
accordance with their terms;

         (d) it keeps and will  continue  to keep all of its  books and  records
concerning the Collateral at Borrower's executive offices located at the address
set forth in the introductory paragraph of this Agreement and will not move such
books and records  without giving Lender at least thirty (30) days prior written
notice;

         (e) (i) the operation of Borrower's business is and will continue to be
in compliance in all material  respects with all applicable  federal,  state and
local laws,  including but not limited to all applicable  environmental laws and
regulations and Sanction/Embargo Programs.

              (ii) in the event the Borrower  obtains,  gives or receives notice
of any release or threat of release of a  reportable  quantity of any  Hazardous
Substances  on its property (any such event being  hereinafter  referred to as a
"Hazardous  Discharge")  or  receives  any  notice  of  violation,  request  for
information or notification that it is potentially responsible for investigation
or  cleanup  of  environmental  conditions  on its  property,  demand  letter or
complaint, order, citation, or other written notice with regard to any Hazardous
Discharge or  violation  of any  environmental  laws  affecting  its property or
Borrower's  interest  therein (any of the  foregoing is referred to herein as an
"Environmental Complaint") from any Person or entity, including any state agency
responsible in whole or in part for environmental  matters in the state in which
such property is located or the United States  Environmental  Protection  Agency
(any such  person or entity  hereinafter  the  "Authority"),  then the  Borrower
shall,  within five (5) Business Days, give written notice of same to the Lender
detailing facts and  circumstances of which the Borrower is aware giving rise to
the  Hazardous  Discharge or  Environmental  Complaint and  periodically  inform
Lender of the status of the matter.  Such information is to be provided to allow
the  Lender to  protect  its  security  interest  in the  Collateral  and is not
intended  to create nor shall it create  any  obligation  upon the  Lender  with
respect thereto.

              (iii)  Borrower shall defend and indemnify the Lender and hold the
Lender  harmless  from and  against  all loss,  liability,  damage and  expense,
claims,  costs,  fines and  penalties,  including  reasonable  attorney's  fees,
suffered or incurred by the Lender  under or on account of A. any  environmental
laws, including,  without limitation, the assertion of any lien thereunder, with
respect to any Hazardous  Discharge,  the presence of any  hazardous  substances
affecting  Borrower's  property,  whether or not the same  originates or emerges
from Borrower's  property or any contiguous  real estate,  including any loss of
value of the  Collateral as a result of the foregoing  except to the extent such
loss,  liability,  damage and expense is attributable to any Hazardous Discharge
resulting  from actions on the part of the Lender,  and B. any  Sanction/Embargo
Program.  The Borrower's  obligations under Section 12(e)(v) A. shall arise upon
the  discovery of the presence of any  Hazardous  Substances  on the  Borrower's
property,  whether or not any federal,  state, or local environmental agency has
taken or threatened any action in connection  with the presence of any hazardous
substances,  and  under  Section  12(e)(v)  B on  failure  to  comply  with  any
Sanction/Embargo  Program.  The Borrower's  obligation and the  indemnifications
hereunder shall survive the termination of this Agreement.

              (iv) For purposes of Section  12(e) all  references  to Borrower's
property shall be deemed to include all of Borrower's right,  title and interest
in and to all owned and/or leased premises;

         (f) based upon the  Employee  Retirement  Income  Security  Act of 1974
("ERISA"),  as  amended,  and  the  regulations  and  published  interpretations
thereunder:  (i)  Borrower  has not engaged in any  Prohibited  Transactions  as
defined in Section 406 of ERISA and Section 4975 of the Internal Revenue Code of
1986, as amended,  and the rules and regulations  promulgated  thereunder;  (ii)
Borrower has met all applicable  minimum funding  requirements under Section 302
of ERISA in respect of its plans;  (iii)  Borrower has no knowledge of any event
or occurrence  which would cause the Pension  Benefit  Guaranty  Corporation  to
institute  proceedings under Title IV of ERISA to terminate any employee benefit
plan(s);  (iv) Borrower has no fiduciary  responsibility  for  investments  with
respect to any plan existing for the benefit of persons other than  participants
and beneficiaries in Borrower's qualified pension plan; and (v) Borrower has not
withdrawn, completely or partially, from any multiemployer pension plan so as to
incur liability under the Multiemployer Pension Plan Amendments Act of 1980;

         (g) it is solvent,  able to pay its debts as they  mature,  has capital
sufficient  to carry on its business and all  businesses in which it is about to
engage and the fair saleable value of its assets  (calculated on a going concern
basis) is in excess of the amount of its liabilities;

         (h)  there  is  no  pending  or  threatened   litigation,   actions  or
proceedings  which would  reasonably  be expected to  materially  and  adversely
affect the  Borrower's  business,  assets,  operations,  condition or prospects,
financial or otherwise,  or a material  portion of the Collateral or the ability
of Borrower to perform this Agreement;

         (i) all balance sheets and income  statements which have been delivered
to Lender fairly,  accurately and properly state Borrower's  financial condition
on a basis consistent with that of previous financial statements,  and there has
been no material adverse change in Borrower's  financial  condition as reflected
in such  statements  since the date thereof,  and such statements do not fail to
disclose  any  fact  or  facts  which  might  materially  and  adversely  affect
Borrower's financial condition;

         (j)  (x)  it  possesses  all  of  the  licenses,  patents,  copyrights,
trademarks,  trade names and permits  necessary  to conduct  its  business,  (y)
Borrower has received no  assertion or claim of violation or  infringement  with
respect thereof,  and (z) all such licenses,  patents,  copyrights,  trademarks,
trade names and permits are listed on Schedule 12(j);

         (k) it will  pay or  discharge  when  due all  taxes,  assessments  and
governmental charges or levies imposed upon it;

         (l) it will promptly inform Lender in writing of: (i) the  commencement
of all  proceedings  and  investigations  by or before and/or the receipt of any
notices  from,  any  governmental  or  nongovernmental  body and all actions and
proceedings  in any  court  or  before  any  arbitrator  against  or in any  way
concerning  any of Borrower's  properties,  assets or business,  which  Borrower
reasonably  expects would singly or in the aggregate,  have a materially adverse
effect  on  Borrower;   (ii)  any   amendment  of  Borrower's   certificate   of
incorporation  or  by-laws;  (iii) any change in  Borrower's  business,  assets,
liabilities,  condition  (financial  or  otherwise),  results of  operations  or
business prospects which has had or which Borrower reasonably expects would have
a materially adverse effect on Borrower;  (iv) any Event of Default or Incipient
Event of Default; (v) any default or any event which with the passage of time or
giving of notice or both would  constitute a default under any agreement for the
payment of money to which  Borrower  is a party or by which  Borrower  or any of
Borrower's properties may be bound which would have a material adverse effect on
Borrower's business, operations,  property or condition (financial or otherwise)
or the  Collateral;  (vi) any change in the  location  of  Borrower's  executive
offices;  (vii) any change in the location of Borrower's  Inventory or Equipment
from the locations listed on Schedule 12(l) attached  hereto,  (viii) any change
in Borrower's corporate name; (ix) any material delay in Borrower's  performance
of any of its  obligations  to any Customer and of any assertion of any material
claims,  offsets,   counterclaims  or  Disputes  by  any  Customer  and  of  any
allowances,  credits  and/or other  monies  granted by it to any  Customer;  (x)
furnish  to and  inform  Lender of all  material  adverse  information  of which
Borrower is aware relating to the financial condition of any account debtor; and
(xi) any material return of goods;

         (m) it will not (i)  create,  incur,  assume  or  suffer  to exist  any
indebtedness  (exclusive of trade debt) whether  secured or unsecured other than
Borrower's  indebtedness  to Lender and as set forth on Schedule  12(m) attached
hereto  and  made a part  hereof;  (ii)  declare,  pay or make any  dividend  or
distribution on any shares of the common stock or preferred stock of Borrower or
apply any of its funds, property or assets to the purchase,  redemption or other
retirement  of any common or  preferred  stock of  Borrower;  (iii)  directly or
indirectly,  prepay any  indebtedness  (other  than to Lender),  or  repurchase,
redeem,  retire or otherwise acquire any indebtedness of Borrower other than for
the  purpose  of  realizing  trade  discounts;  (iv)  make  advances,  loans  or
extensions of credit to any Person;  (v) outside the ordinary course of business
become either directly or contingently liable upon the obligations of any Person
by assumption, endorsement or guaranty thereof or otherwise; (vi) enter into any
merger,  consolidation or other  reorganization with or into any other Person or
acquire  all or a portion  of the  assets or stock of any  Person or permit  any
other Person to consolidate  with or merge with it; (vii) form any Subsidiary or
enter  into any  partnership,  joint  venture  or  similar  arrangement;  (viii)
materially  change the nature of the business in which it is presently  engaged;
(ix)  change its fiscal  year or make any changes in  accounting  treatment  and
reporting  practices or in the tax  reporting  treatment  without  prior written
notice to Lender except as required by GAAP or in the tax reporting treatment or
except as required by law; (x) enter into any  transaction  with any  Affiliate,
except in the ordinary  course of its business on arms'  length  terms;  or (xi)
bill Receivables  under any name except the present name of the Borrower;  (xii)
sell, transfer or lease or otherwise dispose of any of its properties or assets,
except in the ordinary course of its business;

         (n) it shall not  permit its  Tangible  Net Worth to be less than seven
hundred  seventy-five  thousand dollars ($775,000).  Thereafter,  the Borrower's
Tangible  Net  Worth  will be  tested  on a  quarterly  basis and must be in the
following  minimum  amounts  as of the end of each of the  Borrower's  following
Fiscal quarters:

        Fiscal Quarter                      Minimum Amount
        --------------                      --------------
        Third Quarter, 2001                 $3,300,000
        Fourth Quarter, 2001                $3,700,000
        First Quarter, 2002                 $3,700,000
        Second Quarter, 2002                $4,300,000
        Third Quarter, 2002                 $5,300,000
        Fourth Quarter, 2002                $5,300,000
        First Quarter, 2003                 $5,300,000
        Second Quarter, 2003                $6,700,000
        Third Quarter, 2003                 $7,800,000
        Fourth Quarter, 2003                $7,800,000
        First Quarter, 2004                 $7,800,000
        Second Quarter, 2004                $8,100,000

         (o) it shall  maintain  a ratio of  Funded  Debt to  EBITDA of not less
than:

        Fiscal Quarter                      Minimum Funded Debt/EBITDA Coverage
        --------------                      -----------------------------------
        Third Quarter, 2001                 15.50X
        Fourth Quarter, 2001                3.85X
        First Quarter, 2002                 3.20X
        Second Quarter, 2002                2.70X
        Third Quarter, 2002                 2.70X
        Fourth Quarter, 2002                2.70X
        First Quarter, 2003                 2.70X
        Second Quarter, 2003                2.50X
        Third Quarter, 2003                 2.40X
        Fourth Quarter, 2003                2.30X
        First Quarter, 2004                 2.30X
        Second Quarter, 2004                2.30X

(Lender shall test the Borrower's  Maximum Funded  Debt/EBITDA  Cover  quarterly
pursuant  to the  table  above and  which is based  upon a rolling  four-quarter
calculation.)

         (p) all financial  projections  of Borrower's  performance  prepared by
Borrower or at Borrower's  direction and delivered to Lender will represent,  at
the time of delivery to Lender,  Borrower's  best estimate of Borrower's  future
financial performance and will be based upon assumptions which are reasonable in
light of Borrower's past performance and then current business conditions;

         (q)  it  will  not  make  capital  expenditures  capital  expenditures,
including capital leases, which shall exceed the following:

        Fiscal Year                         Maximum Capital Expenditures
        -----------                         ----------------------------
        Fiscal Year 2001                    $100,000
        Fiscal Year 2002                    $300,000
        Fiscal Year 2003                    $500,000

         (r) it shall  maintain a Fixed Charge  Coverage  Ratio of not less than
the following:

        Fiscal Quarter                      Minimum Fixed Charge Coverage
        --------------                      -----------------------------
        Third Quarter, 2001                 2.50X
        Fourth Quarter, 2001                2.70X
        First Quarter, 2002                 3.10X
        Second Quarter, 2002                2.10X
        Third Quarter, 2002                 2.00X
        Fourth Quarter, 2002                2.00X
        First Quarter, 2003                 2.00X
        Second Quarter, 2003                2.00X
        Third Quarter, 2003                 2.00X
        Fourth Quarter, 2003                2.00X
        First Quarter, 2004                 2.00X
        Second Quarter, 2004                2.00X

(Lender  shall test the  Borrower's  Minimum  Fixed  Charge  Coverage  quarterly
pursuant  to the  table  above and  which is based  upon a rolling  four-quarter
calculation.)

         (s)  Borrower  will at all  times  maintain  Minimum  Excess  Borrowing
Availability of not less than $500,000.

         (t)  Borrower  shall have  availability  under the  Formula  Amount for
Revolving  Credit  Allowances  on the Closing  Date  immediately  following  the
closing of this Agreement of not less than $1,000,000.

         (u) none of the proceeds of the Loans  hereunder  will be used directly
or indirectly to "purchase" or "carry"  "margin stock" or to repay  indebtedness
incurred to "purchase" or "carry" "margin stock" within the respective  meanings
of each of the quoted terms under  Regulation G of the Board of Governors of the
Federal Reserve System as now and from time to time hereafter in effect;

         (v) it will  bear the  full  risk of loss  from any loss of any  nature
whatsoever  with  respect  to the  Collateral.  At its own cost and  expense  in
amounts and with carriers reasonably acceptable to Lender, it shall (i) keep all
its insurable  properties  and  properties  in which it has an interest  insured
against the hazards of fire, flood,  sprinkler leakage, those hazards covered by
extended coverage insurance and such other hazards,  and for such amounts, as is
customary in the case of companies  engaged in businesses  similar to Borrower's
including,  without limitation, extra expense insurance; (ii) maintain a bond in
such  amounts as is customary  in the case of  companies  engaged in  businesses
similar to Borrower's  insuring against larceny,  embezzlement or other criminal
misappropriation  of insured's  officers and  employees who may either singly or
jointly  with  others at any time have access to the assets or funds of Borrower
either  directly  or  through  authority  to draw upon  such  funds or to direct
generally the  disposition  of such assets;  (iii)  maintain  public and product
liability insurance against claims for personal injury, death or property damage
suffered by others;  (iv)  maintain all such  workers'  compensation  or similar
insurance  as may be  required  under the laws of any state or  jurisdiction  in
which Borrower is engaged in business; (v) furnish Lender with (x) copies of all
policies and evidence of the  maintenance  of such policies at least thirty (30)
days before any expiration date, and (y) appropriate  loss payable  endorsements
in form and substance reasonably  satisfactory to Lender,  naming Lender as loss
payee  and  providing  that as to Lender  the  insurance  coverage  shall not be
impaired or  invalidated  by any act or neglect of Borrower and the insurer will
provide  Lender with at least  thirty (30) days  notice  prior to  cancellation.
Borrower  shall  instruct the  insurance  carriers that in the event of any loss
thereunder in excess of $100,000,  the carriers shall make payment for such loss
to Lender and not to Borrower and Lender  jointly.  If any  insurance  losses in
excess of  $100,000  are paid by check,  draft or other  instrument  payable  to
Borrower and Lender jointly,  Lender may endorse  Borrower's name thereon and do
such  other  things as Lender  may deem  advisable  to reduce  the same to cash.
Lender is hereby  authorized to adjust and compromise claims upon the occurrence
of an Event of  Default.  All loss  recoveries  received by Lender upon any such
insurance may be applied to the Obligations, in such order as Lender in its sole
discretion  shall  determine  upon the  occurrence  of an Event of Default.  Any
surplus  shall be paid by Lender to  Borrower  or  applied  as may be  otherwise
required by law. Any deficiency  thereon shall be paid by Borrower to Lender, on
demand; and

         (w) it shall not  purchase or acquire  obligations  or stock of, or any
other interest in, or make any investment in any entity,  except (A) obligations
issued or guaranteed by the United States of America or any agency thereof,  (B)
commercial  paper  with  maturities  of not more  than 180 days and a  published
rating of not less than A-1 or P-1 (or the equivalent rating),  (C) certificates
of time deposit and bankers'  acceptances having maturities of not more than 180
days and repurchase  agreements backed by United States government securities of
a  commercial  bank if (x) such bank has a combined  capital  and  surplus of at
least $500,000,000,  or (y) its debt obligations,  or those of a holding company
of which it is a  subsidiary,  are  rated  not  less  than A (or the  equivalent
rating) by a nationally  recognized  investment  rating  agency,  (D) U.S. money
market  funds that invest  solely in  obligations  issued or  guaranteed  by the
United States of America or an Agency thereof,  and (E) Eurodollar time deposits
with financial  institutions with a published rating of not less than A-1 or P-1
(or the equivalent rating).

         13. Power of Attorney.  Borrower  hereby  appoints  Lender or any other
Person whom Lender may  designate  as  Borrower's  attorney,  with power to: (i)
endorse Borrower's name on any checks, notes, acceptances,  money orders, drafts
or other forms of payment or security  that may come into  Lender's  possession;
(ii) sign  Borrower's  name on any  invoice  or bill of lading  relating  to any
Receivables, drafts against Customers, schedules and assignments of Receivables,
notices  of  assignment,   financing   statements  and  other  public   records,
verifications  of account and  notices to or from  Customers;  (iii)  verify the
validity,  amount  or any  other  matter  relating  to any  Receivable  by mail,
telephone,   telegraph  or  otherwise  with  Customers;   (iv)  execute  customs
declarations  and such other  documents  as may be required  to clear  Inventory
through  Customs;  (v) do all  things  reasonably  necessary  to carry  out this
Agreement,  any Ancillary  Agreement and all related  documents;  and (vi) on or
after the occurrence and  continuation  of an Event of Default,  notify the post
office  authorities to change the address for delivery of Borrower's  mail to an
address  designated  by Lender,  and to  receive,  open and  dispose of all mail
addressed to  Borrower.  Borrower  hereby  ratifies and approves all acts of the
attorney.  Neither  Lender  nor the  attorney  will be  liable  for any  acts or
omissions  or for any error of judgment  or mistake of fact or law.  This power,
being coupled with an interest,  is irrevocable so long as any Receivable  which
is assigned to Lender or in which Lender has a security  interest remains unpaid
and until the Obligations have been fully satisfied.

         14.   Expenses.   Borrower   shall  pay  all  of  Lender's   reasonable
out-of-pocket costs and expenses,  including without limitation  reasonable fees
and  disbursements of counsel retained or employed by Lender and appraisers,  in
connection  with the  preparation,  execution and delivery of this Agreement and
the Ancillary  Agreements,  and in connection with the prosecution or defense of
any action,  contest,  dispute,  suit or proceeding concerning any matter in any
way arising out of, related to or connected with this Agreement or any Ancillary
Agreement.  Borrower  shall also pay all of  Lender's  reasonable  out-of-pocket
costs  and  expenses,   including   without   limitation   reasonable  fees  and
disbursements of counsel retained or employed by Lender,  in connection with (a)
the preparation,  execution and delivery of any waiver, any amendment thereto or
consent proposed or executed in connection with the transactions contemplated by
this Agreement or the Ancillary  Agreements,  (b) Lender's obtaining performance
of the Obligations under this Agreement and any Ancillary Agreements, including,
but not limited to, the enforcement or defense of Lender's  security  interests,
assignments of rights and liens hereunder as valid perfected security interests,
(c) any  attempt to  inspect,  verify,  protect,  collect,  sell,  liquidate  or
otherwise  dispose of any Collateral,  and (d) any  consultations  in connection
with any of the foregoing.  Borrower shall also pay Lender's then standard price
for  furnishing  Borrower or its designees  copies of any  statements,  records,
files or other data  (collectively,  "Reports")  requested  by  Borrower  or its
designees,  other than  reports of the kind  furnished  to Borrower and Lender's
other borrowers on a regular,  periodic basis in the ordinary course of Lender's
business.  Borrower shall also pay Lender's  customary bank charges,  including,
without  limitation,  all wire transfer  fees  incurred by Lender,  for all bank
services  performed  or  caused  to be  performed  by  Lender  for  Borrower  at
Borrower's  request.  All such  costs and  expenses  together  with all  filing,
recording  and search  fees,  taxes and  interest  payable by Borrower to Lender
shall be payable on demand and shall be secured by the Collateral. If any tax by
any  governmental  authority  is or  may be  imposed  on or as a  result  of any
transaction  between  Borrower  and Lender which Lender is or may be required to
withhold or pay (other than Lender's income taxes), Borrower agrees to indemnify
and hold Lender  harmless in respect of such taxes,  and Borrower  will repay to
Lender  the  amount of any such  taxes  which  shall be  charged  to  Borrower's
account;  and until Borrower  shall furnish  Lender with indemnity  therefor (or
supply  Lender  with  evidence  satisfactory  to it that due  provision  for the
payment  thereof has been made),  Lender may hold  without  interest any balance
standing to Borrower's credit and Lender shall retain its security  interests in
any and all Collateral.  Borrower hereby  acknowledges  that Lender shall not be
liable in any manner whatsoever for any selling expenses,  orders,  purchases or
contracts of any kind resulting from any  transaction  between  Borrower and any
other Person,  and Borrower  hereby  indemnifies  and holds Lender harmless with
respect thereto, which indemnity shall survive termination of this Agreement.

         15.  Assignment.  Lender  may  assign  any or  all  of the  Obligations
together  with any or all of the  security  therefor  and any  transferee  shall
succeed to all of Lender's  rights with  respect  thereto.  Upon such  transfer,
Lender  shall be released  from all  responsibility  for the  Collateral  to the
extent same is assigned to any transferee.  Lender may from time to time sell or
otherwise grant  participations  in any of the Obligations and the holder of any
such participation  shall,  subject to the terms of any agreement between Lender
and such holder,  be entitled to the same benefits as Lender with respect to any
security for the  Obligations  in which such holder is a  participant.  Borrower
agrees that each such holder may exercise  any and all rights of banker's  lien,
set-off and counterclaim with respect to its participation in the Obligations as
fully as though Borrower were directly  indebted to such holder in the amount of
such participation.  However,  in any such participation  Borrower shall only be
liable for the  reasonable  costs incurred by Lender or its assigns as lead bank
and  shall  not  be  liable  for  the  costs  and  expenses  of any  other  such
participants.  Borrower  may  not  assign  or  transfer  any  of its  rights  or
obligations  under this Agreement  without the prior written  consent of Lender,
and no such assignment or transfer of any such obligation shall relieve Borrower
thereof  unless  Lender  shall  have  consented  to such  release  in a  writing
specifically referring to the obligation from which Borrower is to be released.

         16. Waivers.  Borrower waives presentment and protest of any instrument
and notice  thereof,  notice of default and all other notices to which  Borrower
might otherwise be entitled.

         17. Term of Agreement.  This Agreement shall continue in full force and
effect  until  the  expiration  of the  Term.  The Term  shall be  automatically
extended for  successive  periods of one (1) year each unless either party shall
have  provided the other with a written  notice of  termination,  at least sixty
(60)  days  prior to the  expiration  of any  renewal  Term.  The  Borrower  may
terminate  this Agreement at any time upon sixty (60) days' prior written notice
("Termination  Date") upon payment in full of the  Obligations;  provided,  that
Borrower  pays an early  termination  fee in an  amount  equal  to the  Required
Percentage of the Maximum  Revolving  Advance Amount.  For the purposes  hereof,
Required  Percentage  shall mean (a) three percent (3%) from the Closing Date to
the first anniversary thereof, (b) three-quarters percent (3/4 %) from the first
anniversary  of the  Closing  Date to the  second  anniversary  thereof  and (c)
one-half  percent (1/2%) from the second  anniversary of the Closing Date to the
third anniversary thereof or prior to any subsequent anniversary thereof.

         18. Events of Default.  The  occurrence  of any of the following  shall
constitute an Event of Default:

         (a) failure to make  payment of any of the  Obligations  when  required
hereunder;

         (b)  failure  to pay any taxes  when due  unless  such  taxes are being
contested  in good faith by  appropriate  proceedings  and with respect to which
adequate reserves have been provided on Borrower's books;

         (c)  failure  to perform  under  and/or  committing  any breach of this
Agreement or any Ancillary Agreement or any other agreement between Borrower and
Lender;

         (d)  occurrence of a default under any agreement to which Borrower is a
party with third parties  which has a material  adverse  affect upon  Borrower's
business,  operations,  property or condition (financial or otherwise) including
all leases for any premises where material  amounts of Inventory or Equipment is
located;

         (e)  any  representation,   warranty  or  statement  made  by  Borrower
hereunder,  in any Ancillary Agreement,  any certificate,  statement or document
delivered  pursuant to the terms hereof,  or in connection with the transactions
contemplated by this Agreement  should at any time be false or misleading,  when
made, in any material respect;

         (f) an attachment or levy is made upon any of Borrower's  assets having
an  aggregate  value in excess of $50,000,  or a judgment  is  rendered  against
Borrower  or any of  Borrower's  property  involving  a  liability  of more than
$50,000, which shall not have been vacated, discharged, stayed or bonded pending
appeal within thirty (30) days from the entry thereof;

         (g) any  change  in  Borrower's  condition  or  affairs  (financial  or
otherwise)  which  in  Lender's   reasonable   opinion  materially  impairs  the
Collateral or the ability of Borrower to perform its Obligations;

         (h) as to any  material  portion  of the  Collateral  any lien  created
hereunder or under any Ancillary Agreement for any reason ceases to be or is not
a valid and perfected lien having a first priority interest;

         (i) Borrower shall (i) apply for or consent to the  appointment  of, or
the taking of  possession  by, a receiver,  custodian,  trustee or liquidator of
itself  or of all or a  substantial  part of its  property,  (ii) make a general
assignment  for the benefit of creditors,  (iii) commence a voluntary case under
the federal bankruptcy laws (as now or hereafter in effect), (iv) be adjudicated
a bankrupt or insolvent,  (v) file a petition  seeking to take  advantage of any
other law  providing  for the relief of debtors,  (vi)  acquiesce to, or fail to
have  dismissed,  within  forty-five (45) days, any petition filed against it in
any involuntary  case under such  bankruptcy  laws, or (vii) take any action for
the purpose of effecting any of the foregoing;

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

         (k) any Affiliate or any  Subsidiary  or any Guarantor  shall (i) apply
for or consent to the appointment  of, or the taking  possession by, a receiver,
custodian,  trustee or liquidator  of itself or of all or a substantial  part of
its property,  (ii) admit in writing its inability,  or be generally  unable, to
pay its debts as they become due or cease  operations  of its present  business,
(iii) make a general  assignment  for the benefit of creditors,  (iv) commence a
voluntary  case  under  the  federal  bankruptcy  laws (as now or  hereafter  in
effect),  (v) be  adjudicated  a  bankrupt  or  insolvent,  (vi) file a petition
seeking to take  advantage of any other law providing for the relief of debtors,
(vii) acquiesce to, or fail to have dismissed,  within forty-five (45) days, any
petition filed against it in any involuntary  case under such  bankruptcy  laws,
or(viii) take any action for the purpose of effecting any of the foregoing;

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

         (m) Borrower fails to operate in the ordinary course of business;

         (n) Lender shall in good faith deem itself  insecure or unsafe or shall
fear diminution in value, removal or waste of the Collateral;

         (o) a default by Borrower in the payment, when due, of any principal of
or interest on any  indebtedness  for money borrowed beyond any applicable grace
period contained in the documentation pertaining to such indebtedness;

         (p) any Guarantor attempts to terminate, or challenges the validity of,
its liability under any Guaranty Agreement or Guarantor Security Agreement;

         (q) any  Guarantor  defaults  in its  obligations  under  any  Guaranty
Agreement  or any  Guarantor  Security  Agreement,  or any  proceeding  shall be
brought to challenge  the  validity,  binding  effect or  enforceability  of any
Guaranty  Agreement  or any  Guarantor  Security  Agreement,  or  any  Guarantor
breaches  any  representation,  warranty or covenant  contained  in any Guaranty
Agreement or any  Guarantor  Security  Agreement,  or any Guaranty  Agreement or
Guarantor  Security  Agreement  ceases to be a valid,  binding  and  enforceable
obligation; or

         (r) any Change of Ownership.

         19.  Remedies.  (a) Upon the occurrence of an Event of Default pursuant
to Section 18 (i) herein,  all Obligations  shall be immediately due and payable
and  this  Agreement  shall  be  deemed  terminated;  upon  the  occurrence  and
continuation of any other of the Events of Default,  Lender shall have the right
to demand  repayment in full of all  Obligations,  whether or not  otherwise due
and/or to terminate this Agreement without advance notice. Until all Obligations
have been fully  satisfied,  Lender shall  retain its  security  interest in all
Collateral.  Lender  shall have,  in addition to all other  rights and  remedies
provided  herein,  the rights and remedies of a secured  party under the Uniform
Commercial  Code, and under other  applicable law, all other legal and equitable
rights to which Lender may be entitled,  including without limitation, the right
to take immediate possession of the Collateral,  to require Borrower to assemble
the Collateral,  at Borrower's expense,  and to make it available to Lender at a
place designated by Lender which is reasonably convenient to both parties and to
enter any of the  premises  of  Borrower or  wherever  the  Collateral  shall be
located, with or without force or process of law, and to keep and store the same
on said  premises  until sold (and if said  premises  shall be the  property  of
Borrower,  Borrower agrees not to charge Lender for storage thereof for a period
up to at least sixty (60) days after sale or  disposition  of said  Collateral).
Further,  Lender may, at any time or times after  default by Borrower,  sell and
deliver all Collateral held by or for Lender at public or private sale for cash,
upon  credit or  otherwise,  at such  prices and upon such  terms as Lender,  in
Lender's sole discretion,  deems advisable, or Lender may otherwise recover upon
the  Collateral in any  commercially  reasonable  manner as Lender,  in its sole
discretion,  deems advisable.  Except as to that part of the Collateral which is
perishable or threatens to decline speedily in value or is of a type customarily
sold on a recognized  market,  the requirement of reasonable notice shall be met
if such notice is mailed  postage  prepaid to Borrower at Borrower's  address as
shown in Lender's  records,  at least ten (10) days before the time of the event
of which notice is being given.  Lender may be the  purchaser at any sale, if it
is public. In connection with the exercise of the foregoing remedies,  Lender is
granted  permission  to use all of  Borrower's  trademarks,  trade names,  trade
styles, patents, patent applications, licenses, franchises and other proprietary
rights  which are used in  connection  with (a)  Inventory  for the  purpose  of
disposing of such  Inventory and (b) Equipment for the purpose of completing the
manufacture of unfinished  goods. The proceeds of sale shall be applied first to
all costs and expenses of sale,  including but not limited to  attorneys'  fees,
and second to the payment (in whatever order Lender elects) of all  Obligations.
Lender will return any excess to Borrower  and Borrower  shall remain  liable to
Lender for any deficiency.

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

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

         22. Depository Accounts. Any payment received by Borrower on account of
any Collateral shall be held by Borrower in trust for Lender, and Borrower shall
promptly deliver same in kind to Lender or deposit all such payments into a cash
collateral  account  at such bank as Lender may  designate  for  application  to
payment of the Obligations.  Borrower shall also execute such further  documents
as Lender may  reasonably  deem  necessary  or which  depository  may require to
establish  such an  account  and all  funds  deposited  in  such  account  shall
immediately be deemed Lender's property.

         23. Lock Box Accounts.  Borrower shall, at Lender's  request,  instruct
all of its  Customers  to make such  payments  on account of  Receivables  to an
account  under  Lender's  dominion  and  control  at  such  bank as  Lender  may
designate. Borrower shall also execute such further documents as Lender may deem
necessary to establish such an account,  and all funds deposited in such account
shall immediately be deemed Lender's property.

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

         25. Notices.  Any notice or request  hereunder may be given to Borrower
or Lender at the  respective  addresses  set forth below or as may  hereafter be
specified in a notice  designated as a change of address  under this  paragraph.
Any notice or request  hereunder shall be given by registered or certified mail,
return  receipt  requested,  or by overnight  mail or by telecopy  (confirmed by
mail).  Notices and requests shall be, in the case of those by mail or overnight
mail, deemed to have been given when deposited in the mail or with the overnight
mail carrier, and, in the case of a telecopy, when confirmed.

         Notices shall be provided as follows:

If to the Lender:

GMAC Commercial Credit LLC
1290 Avenue of the Americas
New York, New York  10104
Attention:  Frank Imperato, Senior Vice President
Telephone: (212) 884-7026
Telecopy:  (212) 884-7162

If to the Borrower:

Morgan Drive Away, Inc.
2746 Old U.S. 20 West
Elkhart, Indiana  46514
Attention:  Gary Klusman
Telephone: (219) 295-2200
Telecopy: (800) 285-0828

With a copy to:

Baker & Daniels
205 West Jefferson Blvd., Suite 250
South Bend, Indiana  46601
Attention:  Peter G. Trybula, Esq.
Telephone: (219) 234-4149
Telecopy: (219) 239-1900

         26.  Governing Law and Waiver of Jury Trial.  THIS  AGREEMENT  SHALL BE
GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE  WITH THE LAWS OF THE STATE
OF NEW YORK.  LENDER SHALL HAVE THE RIGHTS AND REMEDIES OF A SECURED PARTY UNDER
APPLICABLE LAW INCLUDING, BUT NOT LIMITED TO, THE UNIFORM COMMERCIAL CODE OF NEW
YORK.  BORROWER  AGREES THAT ALL ACTIONS AND  PROCEEDINGS  RELATING  DIRECTLY OR
INDIRECTLY TO THIS AGREEMENT OR ANY ANCILLARY AGREEMENT OR ANY OTHER OBLIGATIONS
SHALL BE LITIGATED IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT
OF NEW YORK OR, AT  LENDER'S  OPTION,  IN ANY OTHER  COURTS  LOCATED IN NEW YORK
STATE OR  ELSEWHERE  AS LENDER MAY SELECT  AND THAT SUCH  COURTS ARE  CONVENIENT
FORUMS  AND  BORROWER  SUBMITS  TO THE  PERSONAL  JURISDICTION  OF SUCH  COURTS.
BORROWER WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS THAT SERVICE OF PROCESS
UPON  BORROWER MAY BE MADE BY  CERTIFIED  OR  REGISTERED  MAIL,  RETURN  RECEIPT
REQUESTED,  DIRECTED TO BORROWER AT  BORROWER'S  ADDRESS  APPEARING  ON LENDER'S
RECORDS,  AND  SERVICE  SO MADE  SHALL BE  DEEMED  COMPLETED  THE DAY  FOLLOWING
DELIVERY TO FEDERAL  EXPRESS OR EXPRESS MAIL FOR OVERNIGHT  DELIVERY OR THE DATE
RECEVIED IF MAILED BY REGULAR OR REGISTED OR CERTIFIED MAIL. BOTH PARTIES HERETO
WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING  BETWEEN BORROWER
AND LENDER,  AND BORROWER WAIVES THE RIGHT TO ASSERT IN ANY ACTION OR PROCEEDING
INSTITUTED BY LENDER WITH REGARD TO THIS AGREEMENT OR ANY OF THE OBLIGATIONS ANY
OFFSETS OR COUNTERCLAIMS WHICH IT MAY HAVE.

         27. Limitation of Liability. Borrower acknowledges and understands that
in order to assure repayment of the Obligations hereunder Lender may be required
to exercise  any and all of Lender's  rights and remedies  hereunder  and agrees
that neither Lender nor any of Lender's agents shall be liable for acts taken or
omissions made in connection  herewith or therewith except for actual bad faith,
gross negligence or willful misconduct.

         28. Entire  Understanding.  This Agreement and the Ancillary Agreements
contain the entire understanding  between Borrower and Lender and constitute the
complete agreement between the parties with respect to the subject matter hereof
and thereof, and any promises, representations,  warranties,  understandings, or
guarantees  not contained in this  Agreement or the Ancillary  Agreements  shall
have no force and effect.

         29. Modification. Neither this Agreement, the Ancillary Agreements, nor
any portion or provisions  thereof may be changed,  modified,  amended,  waived,
supplemented,  discharged,  cancelled or  terminated  orally or by any course of
dealing,  or in any manner other than by an agreement in writing,  signed by the
parties hereto and thereto.

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

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

         32.  Counterparts.  This  Agreement  may be  executed  in  one or  more
counterparts,  each of which taken  together  shall  constitute one and the same
instrument.

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

<PAGE>

         IN WITNESS WHEREOF, this Agreement has been duly executed as of the day
and year first above written.

ATTEST:                              MORGAN DRIVE AWAY, INC.

/s/ Michael J. Archual               By: /s/ Gary J. Klusman
------------------------------------    ----------------------------------------
 President                               Name:   Gary J. Klusman
                                         Title:  Executive VP Finance and
                                                   Administration

ATTEST:                              TDI, INC.

/s/ Michael J. Archual               By: /s/ Gary J. Klusman
------------------------------------    ----------------------------------------
Chief Executive Officer                  Name:   Gary J. Klusman
                                         Title:  Executive VP Finance and
                                                   Administration

                                     GMAC COMMERCIAL CREDIT LLC

                                     By: /s/ Joe Grimaldi
                                        ----------------------------------------
                                         Name:  Joe Grimaldi
                                         Title: President

<PAGE>
                                    SCHEDULES
                                    ---------

Schedule 1(A) - Permitted Liens

Schedule 12(j) - Licenses, Patents, Trademarks and Copyrights

Schedule 12(l) - Inventory Locations

Schedule 12(m) - Permitted IndebtednessExhibit 4.2
                                                                    -----------

                                    GUARANTY

TO:   GMAC COMMERCIAL CREDIT LLC

In  consideration  of your entering into or your refraining from  terminating at
this time a Revolving Credit and Security Agreement with MORGAN DRIVE AWAY, INC.
and  TDI,  INC.  (individually  and  collectively,  jointly  and  severally  the
"Client"),  bearing the effective date of July 27, 2001 (said  Revolving  Credit
and Security Agreement as heretofore or hereafter amended,  supplemented  and/or
restated  is  hereinafter   called  the  "Agreement")  the  undersigned   hereby
guarantees to GMAC Commercial  Credit LJ.C  (hereinafter  called the "Company"),
its successors and assigns, the prompt payment at maturity, or whenever they may
become  due in  accordance  with any of their  terms,  of all now  existing  and
hereafter arising liabilities. indebtedness and obligations of the Client to the
Company (including  "Obligations," as defined in the Agreement,  if such term is
defined  therein),  whenever  and however  arising or  acquired by the  Company,
whether  direct  or  indirect,   absolute  or  contingent   (collectively,   the
"Obligations")  and whether the sum may now be or hereafter  become due from the
Client or the  executors,  administrators,  successors or assigns of the Client,
including the cost of protest and all legal  expenses of or for  collection,  or
for realization upon any collateral for the  Obligations("Collateral")  or other
guaranty.  If this guaranty and/or any Obligation is placed with an attorney for
collection,  the  undersigned  further agrees to pay reasonable  attorney's fees
which shall be recoverable with the amount due under this guaranty.

Demand of payment,  presentment,  protest and notice of dishonor or  non-payment
are  hereby  expressly  waived,  and if any of the  Obligations  are  payable on
demand,  the Company may, in its sole and  absolute  discretion,  determine  the
reasonableness of the period, if any, to elapse prior to the making of demand.

The undersigned  hereby  consents and agrees that,  without notice to or further
assent  from  the  undersigned,  the  time  of  payment  of  all  or  any of the
Obligations,  or any  other  provisions  of the  Obligations,  nay be  extended,
changed or  modified,  the parties  thereto  discharged,  any or all  Collateral
released without  obtaining other Collateral in substitution  therefor,  and any
composition or settlement  consummated  and accepted,  and that the  undersigned
will  remain  bound  upon  this  guaranty   notwithstanding  one  or  more  such
extensions,  changes,  modifications,   discharges,  releases,  compositions  or
settlements.  The  undersigned  further  consents and agrees that this  guaranty
shall not be impaired or  otherwise  affected by any failure to call for,  take,
hold,  protect or perfect,  continue the  perfection  of or enforce any security
interest in or other lien upon,  any  Collateral  or by any failure to exercise,
delay in the exercise, exercise or waiver of, or forbearance or other indulgence
with respect to, any right or remedy available to the Company.  Any statement of
account which is binding on the Client under the  Agreement  shall be binding on
the undersigned for all purposes under this guaranty.

The Company may also at any time in its discretion  sell,  assign,  transfer and
deliver the whole of the  Collateral,  or any part thereof,  or any  substitutes
therefore or any  additions  thereto,  at public or private sale, at any time or
place rejected by the Company, at such prices as it may deem best and either for
cash or for  credit or future  delivery,  at the option of the  Company  without
either demand, advertisement or notice of any kind to the undersigned, which are
hereby expressly waived.

The undersigned  assigns,  pledges and grants a security interest to the Company
in any  money  or  property  belonging  to the  undersigned  at any  time in the
possession  of the  Company  or in the  possession  of any parent  affiliate  or
subsidiary of the Company  (hereinafter called a "Related  Company"),  including
any deposit  balances and all property held by the Company or a Related  Company
for any purpose including safekeeping,  custody,  transmission,  collection,  or
pledge.  and all proceeds of the foregoing,  as security for the  performance by
the undersigned of the obligations under this guaranty, whether due or not, with
full power and  authority to apply any such money,  property and proceeds to the
extinguishment  of  any  such  obligations  and to  sell,  enforce,  collect  or
otherwise  realize on said  money,  property  or  proceeds  in  accordance  with
applicable law.

The undersigned  agrees that the Company is not to be obligated in any manner to
inquire  into  the  powers  of the  Client,  or  its  successors,  its or  their
directors,  officers,  or agents.  noting or  purporting  to act on its or their
behalf and any  liabilities  purporting to be contacted  for the Client,  or its
successors,  by its or their directors,  officers,  or agents,  in the professed
exercise  of such  powers,  shall be  deemed  to form a part of the  liabilities
guaranteed hereunder even though the incurrence of such liabilities be in excess
of the  powers  of the  Client,  its  successors,  or  its or  their  directors,
officers,  or agents aforesaid,  or shall be in any way irregular,  defective or
informal.

The liability of the  undersigned on this guaranty  shall be direct,  immediate,
absolute, continuing,  unconditional,  unlimited and shall at all times be valid
and enforceable  irrespective of any other  agreements or  circumstances  of any
nature  whatsoever  which might  otherwise  constitute  a defense  hereto.  Such
liability shall not be conditional or contingent upon the pursuit by the Company
of whatever remedies it way have against the Client or the Client's  successors,
executors,  administrators or assigns,  or the security or liens it may possess,
and this guaranty shall be and shall be construed as being and intended to be, a
continuing  guaranty  of the  payment of any and all  Obligations  either  made,
endorsed or contracted  by the Client or any  successor of the Client,  prior to
the receipt by the Company of written  notice of the revocation of this guaranty
by the  undersigned,  and of all  extensions or renewals  thereof in whole or in
part; and  notwithstanding  the death of, or the revocation of this guaranty by,
the undersigned guarantor, the liability of the guarantor so revoking and of the
estate of the guarantor who dies shall  continue as to  Obligations  incurred or
contracted  by the  Client,  or any  successor  of the  Client,  prior  to  such
revocation or death and as to all extensions and renewals  thereof,  in whole or
in part.

If any  payment of the  Obligations  is made by or for the benefit of the Client
and is repaid by the  Company to the Client or any other  party  pursuant to any
federal, sure or other law, including those relating to bankruptcy,  insolvency,
preference or fraudulent  transfer,  then to the extent of such  repayment,  the
liability of the liability of the  undersigned  with respect to such  Obligation
shall  continue in full force and  effect.  The  undersigned  agrees that if the
Company gives to the undersigned written notice of the institution of any action
or  proceedings,  legal or  otherwise  between the  Company and the Client,  the
undersigned shall be conclusively bound by the adjudication in any such legal or
other proceeding, or by any judgment or award decree entered therein.

Until such time as the Obligations  have been fully and  indefeasibly  paid, the
undersigned  agrees not to assert any claim or other right which the undersigned
may now have or hereafter acquire against the Client or any other person that is
primarily  or  contingently  liable  on any  obligation  that  arises  from  the
existence or performance of the  undersigned's  obligations under this guaranty,
including,   without   limitations  any  right  of  subrogation,   reimbursement
exoneration,  contribution.  or  indemnification  except to the  limited  extent
necessary to avoid permanently waiving any such claim or right.

The undersigned also waives the right to assert in any action or proceeding upon
this guaranty any defense  offsets or  counterclaims  which the  undersigned may
have with respect thereto.  This guaranty shall be governed by and construed and
interpreted in accordance with the laws of the State of New York and all actions
and proceedings existing out of or in connection therewith shall be litigated in
the federal or state courts of such State or, at the  Company's  option,  in any
other  courts as the  Company  may select and the  undersigned  agrees that such
courts  are  convenient  forums  and the  undersigned  submits  to the  personal
jurisdiction  of such  courts.  This  guaranty  cannot be altered or  discharged
orally. Notice of the acceptance of this guaranty is hereby waived.

THE  UNDERSIGNED  WAIVES THE RIGHT TO TRIAL BY JURY IN ALL ACTIONS BROUGHT BY OR
AGAINST THE COMPANY.

IN WITNESS  WHEREOF,  the undersigned has duly executed these presents this 27th
day of July, 2001.

MORGAN GROUP, INC.

By: /s/ Gary J. Klusman
   --------------------------------------------
Title:  Executive VP Finance and Administration

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00028-of-00352.parquet"}]]