Document:

Credt Agrmt w Merit Capital 031507

    (Back
      to Main Document)

    Execution
      Version

     

    ---------------------------------------

    

    U.S.
      $33,000,000

    

    

    CREDIT
      AGREEMENT

    

    Dated
      as
      of March 15, 2007

    

    between

    

    MERIT
      CAPITAL ADVANCE, LLC

    as
      Borrower

    

    and

    

    DEUTSCHE
      BANK AG CAYMAN ISLANDS BRANCH

    as
      Lender

    

    ---------------------------------------

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    TABLE
      OF CONTENTS

    

    
      	 	
              Page

            
	
              ARTICLE
                I DEFININTIONS AND ACCOUNTING TERMS

            	
              1

            
	
              SECTION
                1.01. Certain
                Defined Terms

            	
              1

            
	 	 
	
              ARTICLE
                II AMOUNTS AND TERMS OF THE ADVANCES

            	
              13

            
	
              SECTION
                2.01. The
                Commitment

            	
              13

            
	
              SECTION
                2.02. Advances

            	
              14

            
	
              SECTION
                2.03. Interest
                Elections

            	
              14

            
	
              SECTION
                2.04. Termination,
                Reduction and Extension of the Commitment

            	
              15

            
	
              SECTION
                2.05. Repayment
                of Advances

            	
              16

            
	
              SECTION
                2.06. Prepayment
                of Advances

            	
              16

            
	
              SECTION
                2.07. Commitment
                Fee

            	
              16

            
	
              SECTION
                2.08. Interest

            	
              17

            
	
              SECTION
                2.09. Alternate
                rate of Interest

            	
              17

            
	
              SECTION
                2.10. Increased
                Costs

            	
              18

            
	
              SECTION
                2.12. Taxes

            	
              19

            
	
              SECTION
                2.13. Payments
                Generally

            	
              20

            
	 	 
	
              ARTICLE
                III CONDITIONS OF LENDING

            	
              20

            
	
              SECTION
                3.01. Condition
                Precedent in Initial Advance

            	
              20

            
	
              SECTION
                3.02. Conditions
                Precedent to Each Advance

            	
              22

            
	 	 
	
              ARTICLE
                IV REPRESENTATIONS AND WARRANTIES

            	
              22

            
	
              SECTION
                4.01. Organization

            	
              22

            
	
              SECTION
                4.02. Authorization;
                Enforceability

            	
              22

            
	
              SECTION
                4.03. Government
                Approvals; No Conflicts

            	
              23

            
	
              SECTION
                4.04. No
                Material Adverse Effect

            	
              23

            
	
              SECTION
                4.05. Litigation

            	
              23

            
	
              SECTION
                4.06. Compliance
                with Laws and Agreements

            	
              23

            
	
              SECTION
                4.07. Investment
                and Holding Company Status

            	
              23

            
	
              SECTION
                4.08. Margin
                Regulations

            	
              23

            
	
              SECTION
                4.09. Solvency

            	
              24

            
	 	 
	
              ARTICLE
                V COVENANTS OF THE BORROWER

            	
              24

            
	
              SECTION
                5.01. Certain
                Covenants

            	
              24

            

    

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

     

    
      	
              SECTION
                5.02. Financial
                Covenants

            	
              27

            
	
              SECTION
                5.03. Operating
                Covenants

            	
              28

            
	 	 
	
              ARTICLE
                VI EVENTS OF DEFAULT

            	
              29

            
	
              SECTION
                6.01. Events
                of Default

            	
              29

            
	 	 
	
              ARTICLE
                VII MISCELLANEOUS

            	
              31

            
	
              SECTION
                7.01. Amendments,
                Etc

            	
              31

            
	
              SECTION
                7.02. Notices,
                Etc

            	
              31

            
	
              SECTION
                7.03. No
                Waiver; Remedies

            	
              31

            
	
              SECTION
                7.04. Costs,
                Expenses and Indemnification

            	
              32

            
	
              SECTION
                7.05. Assignments
                and Participations

            	
              32

            
	
              SECTION
                7.06. Governing
                Law; Submission to Jurisdiction

            	
              33

            
	
              SECTION
                7.07. Severability

            	
              33

            
	
              SECTION
                7.08. Execution
                in Counterparts

            	
              34

            
	
              SECTION
                7.09. Survival

            	
              34

            
	
              SECTION
                7.10. Waiver
                of Jury Trial

            	
              34

            
	
              SECTION
                7.11. No
                Fiduciary Relationship

            	
              34

            
	
              SECTION
                7.12. Confidentiality

            	
              35

            
	
              SECTION
                7.13. USA
                PATRIOT Act

            	
              35

            

    

    

    

    
      	
              EXHIBITS

            	 
	
              Exhibit
                A Form
                of Security Agreement

            	 
	
              Exhibit
                B Form
                of Notice of Borrowing

            	 

    

    

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    
       

    

    CREDIT
      AGREEMENT dated as of March 15, 2007, between MERIT CAPITAL ADVANCE, LLC, a
      Delaware limited liability company (the "Borrower"),
      and
      DEUTSCHE BANK AG Cayman Islands Branch ("DB"
      or the
      "Lender").

    

    The
      Borrower has requested that the Lender make Advances to it in an aggregate
      principal amount up to but not exceeding $33,000,000 at any one time outstanding
      for the purposes hereinafter set forth, and the Lender is prepared to make
      such
      Advances on and subject to the terms and conditions hereof. Accordingly, the
      parties hereto agree as follows:

    

    ARTICLE
      I

     

    DEFINITIONS
      AND ACCOUNTING TERMS

     

    

    SECTION
      1.01. Certain Defined Terms. 
      As used
      in this Agreement, the following terms shall have the following meanings (such
      meanings to be equally applicable to both the singular and plural forms of
      the
      terms defined), with terms not otherwise defined herein having the respective
      meanings assigned thereto in the LLC Agreement referred to below:

     

    

    "Account
      Control Agreement"
      means
      an account control agreement in form and substance reasonably satisfactory
      to
      the Lender, entered into by the Borrower, the Lender and a financial institution
      satisfactory to the Lender.

    

    "Advance"
      has the
      meaning specified in Section 2.01.

    

    "Affiliate"
      means,
      as to any Person, any other Person that, directly or indirectly, controls,
      is
      controlled by or is under common control with such Person; provided,
      that, a
      Person shall be deemed to control another Person if such Person and its
      Subsidiaries own 10% or more of the Voting Shares of such other Person or
      otherwise controls, by contract or otherwise, the operations or business
      decisions of such other Person. 

    

    "Applicable
      Lending Office"
      means
      the office of the Lender specified on the signature pages hereof, or such other
      office of the Lender as the Lender may from time to time specify to the Borrower
      by written notice in accordance with the provisions of
      Section 7.02.

    

    "Business
      Day"
      means
      (a) a day on which banks are not required or authorized to close in New
      York, New York, and (b) if the applicable Business Day relates to any
      Advance, a day on which dealings in deposits are carried on in the London
      interbank market.

    

    "Change
      in Control"
      means
      (a) the acquisition of ownership, directly or indirectly, beneficially or
      of record, by any Person or group (within the meaning of the Securities Exchange
      Act of 1934 and the rules of the Securities and Exchange Commission thereunder
      as in effect on the date hereof) other than LEAF Financial Corporation and
      its

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Subsidiaries,
      of Equity Interests representing more than 50% of the aggregate ordinary voting
      power represented by the issued and outstanding Equity Interests of the
      Borrower, LEAF Ventures or the Servicer (other than, in the case of the
      Servicer, in connection with the exercise by the Borrower of its right under
      the
      LEAF Services Agreement to purchase the Servicer, so long as Lender shall have
      provided its prior written consent thereto), (b) Crit DeMent ceasing to be
      the
      Chairman or Chief Executive Officer of LEAF Financial Corporation and not being
      replaced in such position by a similarly-qualified individual within 90 days
      thereof, or (c) the acquisition of direct or indirect Control of the
      Borrower, LEAF Ventures or the Servicer by any Person or group other than LEAF
      Financial Corporation and its Subsidiaries (other than, in the case of the
      Servicer, in connection with the exercise by the Borrower of its right under
      the
      LEAF Services Agreement to purchase the Servicer, so long as Lender shall have
      provided its prior written consent thereto); provided
      that
      Conversion of the Class A Note shall not be deemed to cause a "Change in
      Control".

    

    "Closing
      Date"
      means
      the date on which the conditions precedent set forth in Section 3.01 have been
      satisfied. The Lender shall notify the Borrower of the Closing Date, and such
      notice shall be conclusive and binding.

    

    "Code"
      means
      the Internal Revenue Code of 1986, as amended from time to time.

    

    "Collateral"
      is
      defined in the Security Agreement.

    

    "Commitment"
      has the
      meaning specified in Section 2.01.

    

    "Commitment
      Fee Payment Date"
      means
      the first Business Day of each March, June, September and December.

    

    "Commitment
      Termination Date"
      means
      the date 18 months following the Closing Date, subject to the provisions of
      Sections 2.04(b) and 2.04(d); provided,
      that if
      such day is not a Business Day, then the Commitment Termination Date shall
      be
      the immediately preceding Business Day.

    

    "Contingent
      Liabilities"
      means,
      with respect to any Person, (a) any agreement, undertaking or arrangement by
      which such Person guarantees, endorses or otherwise becomes or is contingently
      liable upon (by direct or indirect agreement, contingent or otherwise, to
      provide funds for payment, to supply funds to, or otherwise to invest in, a
      debtor, or otherwise to assure a creditor against loss) the indebtedness,
      obligation or any other liability of any other Person (other than by
      endorsements of instruments in the course of collection), or guarantees the
      payment of dividends or other distributions upon the shares of any other Person
      (the amount of obligation under any Contingent Liabilities shall be deemed
      to be
      the maximum outstanding amount of the debt, obligation or other

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    liability
      guaranteed) and/or (b) liabilities that are contingent in nature which would
      be
      included as liabilities on the face of the balance sheet of such Person in
      accordance with GAAP.

    

    “Control”
means
      the possession, directly or indirectly, of the power to direct or cause the
      direction of the management or policies of a Person, whether through the ability
      to exercise voting power, by contract or otherwise. “Controlling”
and
      “Controlled”
have
      meanings correlative thereto.

     

    "Debt"
      of any
      Person means, without duplication:

     

    (a) all
      obligations of such Person for borrowed money and all obligations of such Person
      evidenced by bonds, debentures, notes or other similar instruments;

     

    (b) all
      obligations, contingent or otherwise, relative to the face amount of all letters
      of credit, whether or not drawn, and banker's acceptances issued for the account
      of such Person;

     

    (c) all
      obligations of such Person as lessee under leases which have been or should
      be,
      in accordance with GAAP, recorded as capital leases;

     

    (d) all
      other
      items which, in accordance with GAAP, would be included as liabilities on the
      liability side of the balance sheet of such Person as of the date at which
      Indebtedness is to be determined other than accounts payable, deferred revenue
      and accrued operating expenses incurred in the ordinary course of business
      in
      each case to the extent not otherwise constituting Indebtedness under the other
      terms of this definition;

     

    (e) net
      liabilities of such Person under all Swap Agreements;

     

    (f) whether
      or not so included as liabilities in accordance with GAAP, all obligations
      of
      such Person to pay the deferred purchase price of property or services, and
      indebtedness (excluding prepaid interest thereon) secured by a lien on property
      owned or being purchased by such Person (including indebtedness arising under
      conditional sales or other title retention agreements), whether or not such
      indebtedness shall have been assumed by such Person or is limited in recourse;
      and

     

    (g) all
      Contingent Liabilities of such Person in respect of any of the
      foregoing.

    

    “Debt
      to Tangible Net Worth Ratio”
means,
      as of any date of determination, the ratio of (a) all Indebtedness of the
      Borrower and its Subsidiaries (determined on a consolidated basis without
      duplication in accordance with GAAP) as of such date of determination to
      (b) Tangible Net Worth as of such date of determination.

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    "Default"
      means
      an Event of Default or an event that, with notice or lapse of time or both,
      would become an Event of Default.

    

    “Delinquency
      Ratio”
means,
      as of any date of determination thereof, a fraction, expressed as a percentage,
      (a) the numerator of which is an amount equal to the sum of the Unpaid Specified
      Amounts of all Delinquent Assets as of such date, and (b) the denominator of
      which is equal to the sum of the Unpaid Specified Amounts of all Merchant
      Advance Contracts as of such date.

    

    “Delinquent
      Asset”
means,
      on any date of determination, (a) any Merchant Advance Contract with respect
      to
      which, during the period from the date such Merchant Advance Contract was
      originally entered into to such date of determination, the Borrower has received
      less than 75% of the aggregate payments expected to be received by the Borrower
      during such period, or (b) any Merchant Advance Contract with respect to which,
      during the 30 day period ending on such date of determination, the Borrower
      has
      received less than 50% of the aggregate payments expected to be received by
      the
      Borrower during such period. For purposes of this definition, "payments expected
      to be received by the Borrower" in relation to any Merchant Advance Contract
      shall mean payments assumed to be received by the Borrower in the credit
      analysis performed by the Borrower (or by the Servicer for the Borrower) on
      or
      before the date such Merchant Advance Contract was originally entered
      into.

    

    "Dollars"
      and
      "$"
      means
      lawful money of the United States of America.

    

    "EBITDA"
      means,
      for any period, the sum, for the Borrower and its Subsidiaries (determined
      on a
      consolidated basis without duplication in accordance with GAAP), of the
      following: (a) earnings (calculated before taxes, Interest Expense,
      extraordinary and unusual items and income or loss attributable to equity in
      Affiliates) for such period, plus
      (b)
      non-cash interest accrued on the Class A Note during such period, plus
      (c)
      depreciation and amortization (to the extent deducted in determining earnings)
      for such period.

    

    "EBITDA
      Funding Condition"
      means a
      condition that shall be deemed to be satisfied on any date (a "Test
      Date")
      if
      EBITDA for the period starting on the date hereof and ending on the last day
      of
      the period set forth below ending on or immediately prior to such Test Date
      is
      greater than or equal to the respective amount set forth below opposite such
      period:

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    
      	
              Period:
                

              Date
                Hereof To

            	
              Amount

            
	
              March
                31, 2007

            	
              ($287,565)

            
	
              April
                30, 2007

            	
              ($306,534)

            
	
              May
                31, 2007

            	
              ($325,666)

            
	
              June
                30, 2007

            	
              ($344,925)

            
	
              July
                31, 2007

            	
              ($264,192)

            
	
              August
                31, 2007

            	
              ($23,862)

            
	
              September
                30, 2007

            	
              $216,304

            
	
              October
                31, 2007

            	
              $456,349

            
	
              November
                30, 2007

            	
              $696,308

            
	
              December
                31, 2007

            	
              $936,222

            
	
              January
                31, 2008

            	
              $1,385,438

            
	
              February
                29, 2008

            	
              $1,994,298

            
	
              March
                31, 2008

            	
              $2,616,970

            
	
              April
                30, 2008

            	
              $3,070,925

            
	
              May
                31, 2008

            	
              $3,524,956

            
	
              June
                30, 2008

            	
              $3,979,070

            
	
              July
                31, 2008

            	
              $4,411,752

            
	
              August
                31, 2008

            	
              $4,810,165

            

    

    

    "Environmental
      Laws"
      means
      any and all present and future Federal, state, local and foreign laws, rules
      or
      regulations, and any orders or decrees, in each case as now or hereafter in
      effect, relating to the regulation or protection of human health, safety or
      the
      environment or to emissions, discharges, releases or threatened releases of
      Hazardous Materials into the indoor or outdoor environment, including, without
      limitation, ambient air, soil, surface water, ground water, wetlands, land
      or
      subsurface strata, or otherwise relating to the manufacture, processing,
      distribution, use, treatment, storage, disposal, transport or handling of
      Hazardous Materials.

    

    "Equity
      Interests"
      means
      shares of capital stock, partnership interests, membership interests in a
      limited liability company, beneficial interests in a trust or other equity
      ownership interests in a Person, and any warrants, options or other rights
      entitling the holder thereof to purchase or acquire any such equity
      interest.

    

    "ERISA"
      means
      the Employee Retirement Income Security Act of 1974, as amended from time to
      time, and the regulations promulgated and rulings issued
      thereunder.

    

    "ERISA
      Affiliate"
      means
      any trade or business (whether or not incorporated) that, together with the
      Borrower, is treated as a single employer under Section 414(b) or (c)
      of

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    the
      Code,
      or, solely for purposes of Section 302 of ERISA and Section 412 of the Code,
      is
      treated as a single employer under Section 414(m) of the Code.

    

    "Eurocurrency
      Liabilities"
      has the
      meaning assigned to that term in Regulation D of the Board of Governors of
      the
      Federal Reserve System, as in effect from time to time.

    

    "Events
      of Default"
      has the
      meaning specified in Section 6.01.

    

    "Excluded
      Taxes"
      means,
      with respect to the Lender or any other recipient of any payment to be made
      by
      or on account of any obligation of the Borrower hereunder, (a) income or
      franchise taxes imposed on (or measured by) its net income by the United States
      of America, or by the jurisdiction under the laws of which such recipient is
      organized or in which its principal office is located or, in the case of the
      Lender, in which its applicable lending office is located and (b) any branch
      profits taxes imposed by the United States of America or any similar tax imposed
      by any other jurisdiction in which the Borrower is located.

    

    "Federal
      Funds Rate"
      means a
      fluctuating interest rate per annum equal for each day to 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 the quotations for such day on
      such
      transactions received by the Lender from three Federal funds brokers of
      recognized standing selected by it.

    

    "GAAP"
      means,
      as to any Person, generally accepted accounting principles in effect in the
      jurisdiction of such Person.

    

    "Governmental
      Authority"
      means
      any nation, government, branch of power (whether executive, legislative or
      judicial), state or municipality or other political subdivision thereof and
      any
      entity exercising executive, legislative, judicial, monetary, regulatory or
      administrative functions of or pertaining to government.

    

    "Guarantee"
      by any
      Person means any obligation, contingent or otherwise, of such Person directly
      or
      indirectly guaranteeing any Debt of any other Person and, without limiting
      the
      generality of the foregoing, any obligation, direct or indirect, contingent
      or
      otherwise, of such Person (i) to purchase or pay (or advance or supply funds
      for
      the purchase or payment of) such Debt (whether arising by virtue of partnership
      arrangements, by agreement to keep-well, to purchase assets, goods, securities
      or services, to take-or-pay, or to maintain financial statement conditions
      or
      otherwise, other than agreements to purchase goods at an arm's length price
      in
      the ordinary course of

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    business)
      or (ii) entered into for the purpose of assuring in any other manner the holder
      of such Debt of the payment thereof or to protect such holder against loss
      in
      respect thereof (in whole or in part); provided,
      that
      the term Guarantee shall not include endorsements for collection or deposit
      in
      the ordinary course of business. The term "Guarantee"
      used as
      a verb has a corresponding meaning.

    

    "Hazardous
      Materials"
      means
      all explosive or radioactive substances or wastes and all hazardous or toxic
      substances, wastes or other pollutants, including petroleum or petroleum
      distillates, asbestos or asbestos containing materials, polychlorinated
      biphenyls, radon gas, infectious or medical wastes and all other substances
      or
      wastes of any nature regulated pursuant to any Environmental Law.

    

    "Indemnified
      Taxes"
      means
      Taxes other than Excluded Taxes.

    

    “Interest
      Coverage Ratio”
means,
      as of any date of determination, the ratio of (a) EBITDA for the period of
      12 calendar months ending on or most recently ended prior to such date of
      determination to (b) Interest Expense for such period; provided
      that the
      "Interest
      Coverage Ratio"
      as of
      any date of determination prior to March 31, 2008 shall be the ratio of (x)
      EBITDA for the period from the date hereof to the last day of the calendar
      month
      ending on or most recently ended prior to such date of determination to
      (y) Interest Expense for such period.

    

    “Interest
      Expense”
means,
      for any period, the total consolidated interest expense of the Borrower and
      its
      Subsidiaries for such period determined on a consolidated basis in accordance
      with GAAP (excluding,
      in any event, non-cash interest
      accrued on the Class A Note during such period, to the extent deducted from
      earnings in calculating EBITDA for such period).

    

    "Interest
      Payment Date"
      means
      with respect to any Advance, the last day of each Interest Period therefor
      and,
      in the case of any Interest Period that has a duration of more than three
      months, the day three months after the first day of such Interest
      Period.

    

    "Interest
      Period"
      means,
      with respect to any Advance, the period beginning on the date such Advance
      is
      made, or on the last day of the immediately preceding Interest Period, and
      ending on the last day of the period selected by the Borrower pursuant to the
      provisions below. The duration of each Interest Period in respect of any Advance
      shall be 1, 2, 3 or 6 months as the Borrower may select as provided in Section
      2.03; provided,
      however,
      that
      (i) each Interest Period that begins on the last Business Day of a calendar
      month (or on any day for which there is no numerically corresponding day in
      the
      appropriate subsequent calendar month) shall end on the last Business Day of
      the
      appropriate subsequent calendar month, (ii) whenever the last day of any
      Interest Period would otherwise occur on a day other than a Business Day, the
      last day of such Interest

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    Period
      shall be extended to occur on the next succeeding Business Day, except that
      if
      such extension would cause the last day of such Interest Period to occur in
      the
      next following calendar month, the last day of such Interest Period shall occur
      on the next preceding Business Day and (iii) any Interest Period that would
      otherwise extend beyond the Commitment Termination Date shall end on the
      Commitment Termination Date.

    

    "LEAF
      Ventures"
      means
      LEAF Ventures, LLC.

    

    "Lender"
      means
      Deutsche Bank AG Cayman Islands Branch, or any other Person that shall become
      a
      party pursuant to Section 7.05.

    

    "Lien"
      shall
      mean any mortgage, lien, pledge, charge, encumbrance or other security interest
      or any preferential arrangement that has the practical effect of creating a
      security interest.

    

     

    "LIBO
      Rate"
      means,
      with respect to any Advance, for any Interest Period:

    

    (a)
      the
      offered rate for deposits in Dollars with a maturity comparable to such Interest
      Period appearing on Page 3750 of the Telerate Service (or on any successor
      or
      substitute page of such Service, or any successor to such Service, providing
      rate quotations comparable to those currently provided on such page of such
      Service, as determined by the Lender from time to time, for purposes of
      providing quotations of interest rates applicable to Dollar deposits in the
      London interbank market) as of approximately 11:00 a.m. (London time) on the
      date two Business Days prior to the commencement of such Interest Period;

     

    (b)
      if
      such date does not appear on said Page 3750 (or such successor), the offered
      rate for deposits in Dollars with a maturity comparable to such Interest Period
      appearing on the display designated on page "LIBO" on the Reuters Monitor Money
      Rate Service (or on any successor or substitute page of such Service, providing
      rate quotations comparable to those currently provided on such page of such
      Service, as determined by the Lender from time to time, for purposes of
      providing quotations of interest rates applicable to Dollar deposits in the
      London interbank market) as of approximately 11:00 a.m. (London time) on the
      date two Business Days prior to the commencement of such Interest Period;
      and

    

    (c)
      in
      the event that neither rate referred to in clauses (a) or (b) is available
      at
      such time for any reason, an interest rate per annum equal to the rate per
      annum
      at which deposits in Dollars are offered by the principal office of Deutsche
      Bank AG in London, England to prime banks in the London interbank market at
      approximately 11:00 a.m. (London time) on the date two Business Days before
      the

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    first
      day
      of such Interest Period in the amount of the Advance if such Advance were to
      be
      outstanding for such Interest Period. 

    

    "LIBO
      Rate Reserve Percentage"
      for any
      Interest Period for any Advance means the effective rate (expressed as a
      percentage) at which reserve requirements (including, without limitation,
      emergency, supplemental and other marginal reserve requirements) are imposed
      on
      the Lender during such Interest Period (or if more than one such percentage
      shall be so applicable, the daily average of such percentages for those days
      in
      such Interest Period during which any such percentage shall be so applicable)
      under regulations issued from time to time by the Board of Governors of the
      Federal Reserve System (or any successor) with respect to liabilities or assets
      consisting of or including Eurocurrency Liabilities having a term equal to
      such
      Interest Period.

    

    "LLC
      Agreement"
      means
      the Limited Liability Company Agreement of the Borrower dated as of March 15,
      2007, as amended, supplemented, amended and restated or otherwise modified
      from
      time to time.

    

    "Loan
      Documents"
      means
      this Agreement, the Security Agreement and each Account Control
      Agreement.

    

    "Material
      Adverse Effect"
      means a
      material adverse effect on (i) the business or condition (financial or
      otherwise), operations or prospects of the Borrower and its Subsidiaries taken
      as a whole, (ii) the legality, validity or enforceability of any Loan Document
      or (iii) the ability of the Borrower to perform its obligations under any Loan
      Document.

    

    "Monthly
      Date"
      means
      the 15th
      day each
      calendar month (unless such day is not a Business Day, in which case
      "Monthly
      Date"
      shall
      mean the next succeeding Business Day).

    

    "Multiemployer
      Plan"
      means a
      multiemployer plan defined as such in Section 4001(a)(3) of ERISA to which
      contributions have been made by the Borrower or any ERISA Affiliate and that
      is
      covered by Title IV of ERISA.

    

    “Net
      Loss Asset” means,
      on
      any date of determination, a Merchant Advance Contract (a) which on such date
      shall have been deemed a loss by the Servicer in accordance with its usual
      and
      customary procedures or (b) with respect to which, during the 30 day period
      ending on such date of determination, the Borrower has received less than 25%
      of
      the aggregate payments expected to be received by the Borrower during such
      period. For purposes of this definition, "payments expected to be received
      by
      the Borrower" in relation to any Merchant Advance Contract shall mean payments
      assumed to be received by the Borrower in the credit analysis performed by
      the
      Borrower (or by

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    the
      Servicer for the Borrower) on or before the date such Merchant Advance Contract
      was originally entered into.

    

    “Net
      Loss Ratio”
means,
      as of any date of determination thereof, the percentage equivalent of a
      fraction, (a) the numerator of which is an amount (not less than zero)
      equal to the sum, without duplication, of the Unpaid Specified Amounts of all
      Merchant Advance Contracts which on any date from the date hereof to the date
      of
      determination were Net Loss Assets, and (b) the denominator of which is equal
      to
      the sum of the Specified Amounts of all Merchant Advance Contracts entered
      into
      on or prior to such date (whether or not such Merchant Advance Contracts, or
      any
      amounts owing to the Borrower thereunder, remain outstanding on such
      date).

    

    "Notice
      of Borrowing"
      has the
      meaning set forth in Section 2.02.

    

    "Operating
      Accounts"
      means
      account #XXXXXXXXX
      (collections account), account
      #XXXXXXXXX
      (general account) and account
      #XXXXXXXXX
      (funding account), in each case, of the Borrower and held at Commerce Bank,
      N.A., 1726
      Walnut Street, Philadelphia, PA 19103. 

    

    "Other
      Taxes"
      means
      any and all present or future stamp or documentary taxes or any other excise
      or
      property taxes, charges or similar levies arising from any payment made
      hereunder or from the execution, delivery or enforcement of, or otherwise with
      respect to, this Agreement.

    

    "Par
      Value of Merchant Advances"
      means,
      with respect to any date of determination, an amount equal to sum for each
      outstanding Merchant Advance Contract (other than Merchant Advance Contracts
      that were Net Loss Assets on such date) of the difference between the Purchase
      Price for such Merchant Advance Contract, less
      (if such
      Merchant Advance Contract was a Delinquent Asset on such date) reserves in
      an
      amount for such Merchant Advance Contract determined by the Borrower
      (provided
      that the
      Lender shall have the right in its sole discretion to increase such reserved
      amount for such Merchant Advance Contract to an amount not in excess of the
      Unpaid Specified Amount thereof), less
      the
      aggregate amount of payments received by the Borrower in respect of such
      Merchant Advance Contract to the date of determination; provided
      that
      such difference for any Merchant Advance Contract shall not be less than
      zero.

    

    "PBGC"
      means
      the Pension Benefit Guaranty Corporation or any entity succeeding to any or
      all
      of its functions under ERISA.

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

                    
      "Permitted
      Liens"
      shall
      mean, with respect to any Person:

    (i) Liens
      imposed by law which were incurred in the ordinary course of business, including
      (but not limited to) carriers', warehousemen's and mechanics' liens and other
      similar liens arising in the ordinary course of business and which (x) do not
      in
      the aggregate materially impair the use thereof in the operations of the
      business of the Borrower or (y) are being contested in good faith by appropriate
      proceedings, which proceedings have the effect of preventing the forfeiture
      or
      sale of the property subject to such liens and for which adequate reserves
      have
      been made if required in accordance with GAAP;

     

    (ii) pledges
      or deposits made in the ordinary course of business in connection with workers'
      compensation, unemployment insurance or other similar social security
      legislation;

     

    (iii) Liens
      securing taxes, assessments and other governmental charges, the payment of
      which
      is not yet due or is being contested in good faith by appropriate proceedings
      promptly initiated and diligently conducted and for which such reserve or other
      appropriate provisions, if any, as shall be required by GAAP shall have been
      made;

     

    (iv) Liens
      in
      favor of the Lender arising pursuant to the Security Agreement; and

     

    (v) Liens
      which
      arise pursuant to a final judgment or judgments that do not constitute an Event
      of Default under Section 6.01(f).

     

    "Person"
      means
      an individual, partnership, corporation (including a business trust), limited
      liability company, joint stock company, trust, unincorporated association,
      joint
      venture or other entity, or a government or any political subdivision or agency
      thereof.

    

    "Plan"
      means
      an employee benefit or other plan established or maintained by the Borrower
      or
      any ERISA Affiliate and that is covered by Title IV of ERISA, other than a
      Multiemployer Plan.

    

    "Purchase
      Price"
      means,
      with respect to any Merchant Advance Contract to which the Borrower is a party,
      the purchase price (howsoever defined) initially specified under such Merchant
      Advance Contract to be payable by the Borrower to the counterparty thereto
      in
      exchange for the percentage specified therein of such counterparty’s future
      credit card receivables.

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

            
"Security
      Agreement"
      means a
      security agreement between the Borrower and the Lender in substantially the
      form
      of Exhibit A, as amended, supplemented, amended and restated or otherwise
      modified from time to time.

    

    "Servicer"
      means
      Merit Capital Manager, LLC.

    

    "Solvent"
      means,
      with respect to any Person on a particular date, that (i) the fair value of
      the
      property of such Person is greater than the total amount of the liabilities,
      including, without limitation, contingent liabilities, of such Person, (ii)
      the
      present fair saleable value of the assets of such Person is not less than the
      amount that will be required to pay the probable liability of such Person on
      its
      debts as they become absolute and matured, (iii) such Person does not intend
      to,
      and does not believe that it will, incur debts or liabilities beyond such
      Person's ability to pay such debts and liabilities as they mature, and (iv)
      such
      Person is not engaged in business, and is not about to engage in business,
      for
      which such Person's property would constitute unreasonably small
      capital.

    

    "Specified
      Amount"
      means,
      with respect to any Merchant Advance Contract to which the Borrower is a party,
      the aggregate amount (howsoever defined) initially specified under such Merchant
      Advance Contract to be payable to the Borrower from the future credit card
      receivables which are the subject of such Merchant Advance Contract.

    

    "Swap
      Agreement"
      means
      any swap, forward, future or derivative transaction or option or similar
      agreement involving, or settled by reference to, one or more rates, currencies,
      commodities, equity or debt instruments or securities, or economic, financial
      or
      pricing indices or measures of economic, financial or pricing risk or value
      or
      any similar transaction or any combination of these transactions; provided
      that no
      phantom stock or similar plan providing for payments only on account of services
      provided by current or former directors, officers, employees or consultants
      of
      the Borrower shall be a Swap Agreement.

    

    "Subsidiary"
      means,
      with respect to any Person, any corporation, partnership, limited liability
      company or other entity of which at least a majority of the Voting Shares is
      at
      the time directly or indirectly owned or controlled by such Person or one or
      more Subsidiaries of such Person or by such Person and one or more Subsidiaries
      of such Person.

    

    "Taxes"
      means
      any and all present or future taxes, levies, imposts, duties, deductions,
      charges or withholdings imposed by any governmental authority.

    

    “Tangible
      Net Worth”
means,
      as of any date, the sum for the Borrower and its Subsidiaries (determined on
      a
      consolidated basis without duplication in accordance with GAAP), of the
      following:

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    (a)
      the
      total assets of the Borrower and its Subsidiaries which would be shown as assets
      on a consolidated balance sheet of the Borrower and its Subsidiaries as of
      such
      date prepared in accordance with GAAP, after eliminating all amounts properly
      attributable to minority interests, if any, in the stock and surplus of
      Subsidiaries, minus

    

    (b)
      the
      total liabilities of the Borrower and its Subsidiaries which would be shown
      as
      liabilities on a consolidated balance sheet of the Borrower and its Subsidiaries
      as of such date prepared in accordance with GAAP (excluding (i) the Class A
      Note
      and (ii) non-cash interest accrued on the Class A Note to such date),
minus

    

    (c)
      the
      net book amount of all assets of the Borrower and its Subsidiaries (after
      deducting any reserves applicable thereto) which would be shown as intangible
      assets on a consolidated balance sheet of the Borrower and its Subsidiaries
      as
      of such date prepared in accordance with GAAP.

     

    “Unpaid
      Specified Amount”
means,
      with respect to any Merchant Advance Contract and any date of determination,
      the
      Specified Amount for such Merchant Advance Contract, minus
      an
      amount equal to the sum, as of the close of business on the Business Day
      immediately preceding such date of determination, of all amounts received by
      the
      Borrower on or prior to such day with respect to such Merchant Advance Contract
      and allocable to the payment of such Specified Amount; provided
      that the
      Unpaid Specified Amount for any Merchant Advance Contract shall not be less
      than
      zero.

    

    "Voting
      Shares"
      means,
      at any time, as to any Person, the outstanding securities of such Person the
      holders of which are ordinarily, in the absence of contingencies, entitled
      to
      vote for the election of directors (or persons performing similar functions)
      of
      such Person.

    

    ARTICLE
      II

     

    AMOUNTS
      AND TERMS OF THE ADVANCES

    

    SECTION
      2.01. The
      Commitment.   The
      Lender agrees, on the terms and conditions hereinafter set forth, to make
      advances to the Borrower (each, an "Advance")
      in
      Dollars from time to time on any Business Day during the period from the date
      hereof until the Commitment Termination Date in an aggregate principal amount
      not to exceed at any one time outstanding $33,000,000 (the "Commitment").
      Within the foregoing limits and subject to the terms and conditions of this
      Agreement, the Borrower may borrow, prepay and reborrow 

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    hereunder.
      Each Advance shall be in an amount not less than $500,000 or any whole multiple
      of $1,000 in excess thereof.

    

    SECTION
      2.02. Advances.
      To
      request an Advance, the Borrower shall give the Lender an irrevocable written
      notice substantially in the form of Exhibit B (a “Notice
      of Borrowing”)
      not
      later than 12:00 noon (New York, New York time) on the second Business Day
      prior to the date of such Advance. Each Notice of Borrowing shall be by
      facsimile and shall specify the requested (i) date of such Advance, which
      shall be a Business Day, (ii) amount of such Advance, (iii) initial
      Interest Period for such Advance and (iv) the account to which the Lender is
      to
      credit the proceeds of such Advance (such account to be located in the United
      States of America). The Lender will make the proceeds of each Advance available
      to the Borrower by transmitting the amount thereof not later than 3:00 p.m.
      (New York, New York time), in immediately available funds, to an account of
      the
      Borrower specified in the Notice of Borrowing provided by the Borrower pursuant
      to this Section 2.02. 

    

    SECTION
      2.03. Interest
      Elections.
      Each
      Advance shall have an initial Interest Period as specified in the applicable
      Notice of Borrowing. Thereafter, the Borrower may elect Interest Periods
      therefor as provided in this Section 2.03. The Borrower may elect different
      options with respect to different portions of the affected Advance, in which
      case each such portion shall be considered a separate Advance (provided,
      that
      each such portion shall be in an amount not less than $500,000). To
      make
      an election pursuant to this Section 2.03, the Borrower shall notify the Lender
      of such election in writing by facsimile, telex or cable by the time that a
      notice of Advance would be required under Section 2.02 if the Borrower were
      requesting an Advance resulting from such election to be made on the effective
      date of such election. Each such written interest election request shall be
      irrevocable and in a form approved by the Lender and signed by the Borrower.
      Each such written interest election request shall specify the following
      information:

    

    (i)
      the
      Advance to which such interest election request applies and, if different
      options are being elected with respect to different portions thereof, the
      portions thereof to be allocated to each resulting Advance (in which case the
      information to be specified pursuant to clause (iii) of this paragraph
      shall be specified for each resulting Advance);

    

    (ii)
      the
      effective date of the election made pursuant to such interest election request,
      which shall be a Business Day; and

    

    (iii)
      the
      Interest Period to be applicable thereto after giving effect to such election,
      which shall be a period contemplated by the definition of the term "Interest
      Period".

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    If
      any
      such interest election request does not specify an Interest Period, then the
      Borrower shall be deemed to have selected an Interest Period of one month's
      duration. If the Borrower fails to deliver a timely and complete interest
      election request prior to the end of the Interest Period applicable thereto,
      then, unless such Advance is repaid as provided herein, at the end of such
      Interest Period, the Borrower shall be deemed to have selected an Interest
      Period of the same duration and such Advance shall be continued on such basis.
      

    

    SECTION
      2.04. Termination,
      Reduction and Extension of the Commitment

    

    (a)
      Unless previously terminated, the Commitment shall automatically terminate
      on
      the Commitment Termination Date. 

    

    (b)
      The
      Borrower shall have the right to terminate or reduce the unused Commitment
      at
      any time or from time to time; provided,
      that
      (i) the Borrower shall give irrevocable, written notice of each such
      termination or reduction to the Lender at least three Business Days before
      such
      termination or reduction, (ii) each partial reduction shall be in an
      aggregate amount of not less than $1,000,000 and (iii) the Borrower shall not
      terminate or reduce the Commitment if, after giving effect to any concurrent
      prepayment of the Advances pursuant to Section 2.06, at any time, the aggregate
      outstanding principal amount of the Advances at such time would exceed the
      Commitment.

    

    (c)
      The
      Commitment once terminated or reduced under this Section 2.04 may not be
      reinstated.

    

    (d)
      The
      Borrower may, by written notice to the Lender not less 30 days and not more
      than
      45 days prior to the Commitment Termination Date then in effect (the
      "Existing
      Commitment Termination Date"),
      request that the Lender extend the Commitment Termination Date to the date
      falling 364 days after the Existing Commitment Termination Date. The Existing
      Commitment Termination Date shall be extended (effective as of the Existing
      Commitment Termination Date) to the date falling 364 days after the Existing
      Commitment Termination Date, or, if such day is not a Business Day, the
      immediately preceding Business Day, if in each case the Lender so agrees in
      writing, in its sole and absolute discretion, not earlier than 20 nor later
      than
      10 days before the Existing Commitment Termination Date; provided,
      that
      without prejudice to the discretionary nature of any such extension, no such
      extension shall be effective unless (i) no Event of Default or Default shall
      have occurred and be continuing on the date of such request or on the Existing
      Commitment Termination Date and (ii) each of the representations and warranties
      made by the Borrower in Article IV hereof shall be true on and as of the date
      of
      such request and the Existing Commitment Termination Date with the same force
      and effect as if made on and as of such dates. Each request for extension
      hereunder by the Borrower shall constitute a certification by the Borrower
      to
      the effect set forth in clauses (i) and (ii) above (both as of the date of
      such
      request and, unless the Borrower otherwise notifies the Lender prior to
      the

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    Existing
      Commitment Termination Date, as of the Existing Commitment Termination Date).
      If
      any such extension of the Existing Commitment Termination Date shall not become
      effective, then the Commitment shall automatically terminate on the Existing
      Commitment Termination Date and the Commitment Termination Date shall remain
      the
      Existing Commitment Termination Date.

    

    SECTION
      2.05. Repayment
      of Advances

    .
      The
      Borrower hereby unconditionally promises to pay to the Lender the outstanding
      principal amount of the Advances on the Commitment Termination Date.

     

    

    SECTION
      2.06. Prepayment
      of Advances

    

    (a)
      The
      Borrower shall have the right at any time and from time to time to prepay any
      Advance in whole or in part without penalty or premium (but subject to the
      requirements of Section 2.11) on the terms of this Section 2.06.

     

    (b)
      The
      Borrower shall notify the Lender by facsimile of any optional prepayment
      hereunder not later than 11:00 a.m. (New York, New York time) three Business
      Days before the date of prepayment. Each such notice shall be irrevocable and
      shall specify the prepayment date and the principal amount of each Advance
      or
      portion thereof to be prepaid. Each partial prepayment of any Advance shall
      be
      in an amount not less than $500,000. 

     

    (c)
      On or
      before the date four Business Days following the last day (a "Calendar
      Month End Date")
      of
      each calendar month, the Borrower shall prepay Advances to the extent the
      aggregate outstanding amount of Advances as of such Calendar Month End Date
      exceeds the sum of (i) the Par Value of Merchant Advances as of such Calendar
      Month End Date plus
      (ii) a
      face amount not in excess of $1,000,000 of Financial Investments held by the
      Borrower as of such Calendar Month End Date. 

    

    (d)
      Amounts prepaid under this Section 2.06 may be reborrowed on and subject to
      the
      terms and conditions of this Agreement.

    

    SECTION
      2.07. Commitment
      Fee.
      The
      Borrower agrees to pay to the Lender a commitment fee at a rate equal to 0.50%
      per annum on the average daily unused amount of the Commitment during the period
      from and including the Closing Date to but excluding the earlier of the date
      the
      Commitment terminates and the Commitment Termination Date. The accrued
      commitment fee shall be payable on each Commitment Fee Payment Date and on
      the
      earlier of the date the Commitment terminates and the Commitment Termination
      Date, commencing on the first such date to occur after the Closing Date.
      The
      commitment fee shall be computed on the basis of a year of 360 days and shall
      be
      payable for the actual number of days elapsed (including the first day but
      excluding the last day).

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    SECTION
      2.08. Interest.

     

    (a)
      Each
      Advance shall bear interest during each Interest Period therefor at a rate
      per
      annum equal to the LIBO Rate for such Interest Period plus
      8.50%
      per annum.

     

    (b)
      Notwithstanding the foregoing, during any period while any Event of Default
      has
      occurred and is continuing, the interest rate provided for in paragraph (a)
      above shall automatically be increased by 2.00% per annum.

     

    (c)
      Accrued interest on each Advance shall be payable in arrears on each Interest
      Payment Date for such Advance and upon termination of the Commitment;
provided,
      that
      (i) interest at the rate provided in paragraph (b) of this Section 2.08 shall
      be
      payable on demand and (ii) in the event of any repayment or prepayment of any
      Advance, accrued interest on the principal amount repaid or prepaid shall be
      payable on the date of such repayment or prepayment.

     

    (d)
      The
      Borrower agrees to pay to the Lender, so long as the Lender shall be required
      under regulations of the Board of Governors of the Federal Reserve System to
      maintain reserves with respect to liabilities or assets consisting of or
      including Eurocurrency Liabilities (or the equivalent), additional interest
      on
      the unpaid principal amount of each Advance, from the date of such Advance
      until
      such principal amount is paid in full, at an interest rate per annum equal
      at
      all times to the remainder obtained by subtracting (i) the LIBO Rate for
      the then current Interest Period for such Advance from (ii) the rate obtained
      by
      dividing such LIBO Rate by a percentage equal to 100% minus
      the LIBO
      Rate Reserve Percentage for such Interest Period, payable on each date on which
      interest is payable on such Advance. A certificate of the Lender setting forth
      the amount to which the Lender is then entitled under this Section 2.08(d)
      shall
      be conclusive and binding on the Borrower in the absence of manifest
      error.

    

    (e)
      All
      computations of interest based on the LIBO Rate and computations of interest
      pursuant to Section 2.08(d) shall be made on the basis of a year of 360 days,
      in
      each case for the actual number of days (including the first day but excluding
      the last day) occurring in the period for which such interest is payable.

    

    SECTION
      2.09. Alternate
      Rate of Interest

    .
      If on
      or prior to the commencement of any Interest Period for an Advance (an
“Affected
      Interest Period”)
      the
      Lender determines (which determination shall be conclusive absent manifest
      error) that:

     

                                    
      (a) adequate and reasonable means do not exist for ascertaining the LIBO Rate
      for such Affected Interest Period; or

    

    (b)
      the
      LIBO Rate for such Interest Period will not adequately and fairly reflect the
      cost to the Lender of making or maintaining such Advance for such Affected
      Interest Period;

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

     

    then
      the
      Lender shall give notice thereof (a “Rate
      Determination Notice”)
      to the
      Borrower by facsimile as promptly as practicable thereafter. If such notice
      is
      given, during the thirty-day period following such Rate Determination Notice
      (the “Negotiation
      Period”),
      the
      Lender and the Borrower shall negotiate in good faith with a view to agreeing
      upon a substitute interest rate basis for the Advances which shall reflect
      the
      cost to the Lender of funding the Advances from alternative sources (a
“Substitute
      Basis”),
      and
      if such Substitute Basis is so agreed upon during the Negotiation Period, such
      Substitute Basis shall apply in lieu of the LIBO Rate to all Interest Periods
      commencing on or after the first day of the Affected Interest Period, until
      the
      circumstances giving rise to such notice have ceased to apply. If a Substitute
      Basis is not agreed upon during the Negotiation Period, the Borrower may elect
      to prepay the Loans pursuant to Section 2.06(a); provided,
      however, that if the Borrower does not elect so to prepay, the Lender shall
      determine (and shall certify from time to time in a certificate delivered by
      the
      Lender to the Borrower setting forth in reasonable detail the basis of the
      computation of such amount) the rate basis reflecting the cost to the Lender
      of
      funding Advances for the Interest Period commencing on or after the first day
      of
      the Affected Interest Period, until the circumstances giving rise to such notice
      have ceased to apply, and such rate basis shall be binding upon the Borrower
      and
      the Lender and shall apply in lieu of the LIBO Rate for the relevant Interest
      Period.

    

    SECTION
      2.10. Increased
      Costs.
      If, due
      to either (i) the introduction of or any change (other than any change by way
      of
      imposition or increase of reserve requirements included in the LIBO Rate Reserve
      Percentage) in or in the interpretation of (to the extent any such introduction
      or change occurs after the date hereof) any law or regulation or (ii) the
      compliance with any guideline or request of any central bank or other
      governmental authority adopted or made after the date hereof (whether or not
      having the force of law) (collectively, the "New
      Regulatory Developments"),
      there
      shall be any increase in the cost to the Lender of agreeing to make or making,
      funding or maintaining Advances, the Borrower shall from time to time, within
      30
      days after delivery by the Lender to the Borrower of a certifi-cate as to the
      amount of such increased cost, pay to the Lender the amount of the increased
      costs set forth in such certificate (which certificate shall be conclusive
      and
      binding on the Borrower in the absence of manifest error); provided,
      that
      (i) the Lender shall specify in such certificate the New Regulatory
      Development(s) causing the increased costs to be paid by the Borrower, and
      (ii)
      the Borrower shall not be required to pay to the Lender the amount of the
      increased costs not attributable to the making and performance of this Agreement
      and the transactions contemplated hereby by the Lender and/or the
      Borrower.

     

                                 
      SECTION 2.11. Break
      Funding Payments.
      In the
      event of (a) the payment of any principal of any Advance on a day other than
      the
      last day of an Interest Period therefor (including as a result of an Event
      of
      Default), or (b) the failure to borrow, continue or prepay any Advance on the
      date specified in any notice delivered pursuant hereto (collectively, the
      "Breaking
      Funding Events"),
      then,
      in any such event, the Borrower shall compensate the Lender for the loss, cost
      and expense attributable to such event, which shall be deemed to include an
      amount determined by 

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

    the
      Lender to be equal to the excess, if any, of (i) the LIBO Rate in effect for
      such Interest Period from the date of such payment or failure to the last day
      of
      such Interest Period (or, in the case of a failure to borrow or continue, the
      duration of the Interest Period that would have resulted from such Advance
      or
      continuation), over (ii) the amount of interest that the Lender would earn
      on
      such principal amount for such period if the Lender were to invest such
      principal amount for such period at the interest rate that would be bid by
      the
      Lender for Dollar deposits from other banks in the Eurodollar market at the
      commencement of such period. A certificate of the Lender setting forth any
      amount or amounts that the Lender is entitled to receive pursuant to this
      Section 2.11 shall be delivered to the Borrower not later than one month after
      the last day of such Interest Period (or, in the case of a failure to borrow
      or
      continue, the duration of the Interest Period that would have resulted from
      such
      Advance or continuation) with respect to each Break Funding Event and such
      certificate shall be conclusive absent manifest error. The Borrower shall pay
      the Lender the amount shown as due on any such certificate within 10 days after
      receipt thereof.

     

    

    SECTION
      2.12. Taxes.

    

    (a)
      Any
      and all payments by or on account of any obligation of the Borrower hereunder
      shall be made free and clear of and without deduction for any Indemnified Taxes
      or Other Taxes; provided,
      that if
      the Borrower shall be required to deduct any Indemnified Taxes or Other Taxes
      from such payments, then (i) the sum payable shall be increased as necessary
      so
      that after making all required deductions (including deductions applicable
      to
      additional sums payable under this Section 2.12) the Lender receives an amount
      equal to the sum it would have received had no such deductions been made, (ii)
      the Borrower shall make such deductions and (iii) the Borrower shall pay the
      full amount deducted to the relevant governmental authority in accordance with
      applicable law.

    

    (b)
      Without limiting the generality of subsection (a) above, the Borrower shall
      timely pay any Other Taxes to the relevant governmental authority in accordance
      with applicable law.

     

    (c)
      The
      Borrower shall indemnify the Lender, within 10 days after written demand
      therefor, for the full amount of any Indemnified Taxes or Other Taxes (including
      Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
      amounts payable under
      this Section 2.12) paid by the Lender on or with respect to any payment by
      or on
      account of any obligation of the Borrower hereunder and any penalties, interest
      and reasonable expenses arising therefrom or with respect thereto, whether
      or
      not such Indemnified Taxes or Other Taxes were correctly or legally imposed
      or
      asserted by the relevant governmental authority. A certificate as to the amount
      of such payment or liability delivered to the Borrower by the Lender shall
      be
      conclusive absent manifest error of the Lender.

     

    (d)
      As
      soon as practicable after any payment of Indemnified Taxes or Other Taxes by
      the
      Borrower to a governmental authority, the Borrower shall deliver to the Lender
      the 

      
        
          
          

        

        
          19

          
            

          

        

        
          
          

        

      

    original
      or a certified copy of a receipt issued by such governmental authority
      evidencing such payment, a copy of the return reporting such payment or other
      evidence of such payment reasonably satisfactory to the Lender.

     

    SECTION
      2.13. Payments
      Generally.

    

    (a)
      The
      Borrower shall make each payment required to be made by it hereunder (whether
      of
      principal, interest or fees, or under Section 2.10, 2.11 or 2.12, or otherwise)
      prior to 3:00 p.m. (New York, New York time) on the date when due, in Dollars
      and immediately available funds, without deduction, set-off or counterclaim.
      Any
      amounts received after such time on any date may, in the discretion of the
      Lender, be deemed to have been received on the next succeeding Business Day
      for
      purposes of calculating interest thereon. All such payments shall be made to
      the
      Lender at its office specified on its signature page hereto. If any payment
      hereunder shall be due on a day that is not a Business Day, the date for payment
      shall be extended to the next succeeding Business Day and, in the case of any
      payment accruing interest, interest thereon shall be payable for the period
      of
      such extension. 

     

    (b)
      If at
      any time insufficient funds are received by and available to the Lender to
      pay
      fully all amounts of principal, interest and fees then due hereunder, such
      funds
      shall be applied first, to pay interest then due hereunder, then to pay fees
      and
      other amounts hereunder, then to pay principal due hereunder.

     

    (c)
      The
      Borrower agrees that at any time after the occurrence and during the continuance
      of an Event of Default, in addition to (and without limitation of) any right
      of
      set-off, banker's lien, or counterclaim the Lender may otherwise have, the
      Lender shall be entitled, at its option, to offset balances held by it for
      the
      account of the Borrower at any of its offices, and other obligations of the
      Lender to the Borrower, in Dollars or in any other currency, against any
      principal of or interest on any of the Lender's Advances to the Borrower
      hereunder, or any other obligation of the Borrower hereunder, which is not
      paid
      when due (regardless of whether such balances or other obligations are then
      due
      to the Borrower), in which case it shall promptly notify the Borrower thereof;
      provided,
      that
      failure to give such notice shall not affect the validity thereof.

    

    ARTICLE
      III

     

    CONDITIONS
      OF LENDING

     

    

    SECTION
      3.01. Condition
      Precedent to Initial Advance.
      The
      obligation of the Lender to make its initial Advance is subject to the condition
      precedent that the Lender shall have received, on or before the date of the
      initial Advance, the following documents, each (unless otherwise specified
      below) dated the Closing Date and in form and substance satisfactory to the
      Lender:

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (a)
      A
      copy of each of the LLC Agreement and the Unitholders Agreement, each duly
      executed and delivered by the respective parties thereto, and certified copies
      of (i) the certificate of formation or certificate of incorporation, as the
      case
      may be, of each of the Borrower, LEAF Financial Corporation, LEAF Ventures,
      LLC
      and Merit Capital Manager, LLC and of the resolutions of the Board of Directors
      or equivalent of each such Person (or, as the case may be, its managing member)
      authorizing such Person's entry into of each of the Transaction Documents to
      which it is party and (in the case of the Borrower) the borrowings hereunder
      and
      (ii) of other documents evidencing other necessary corporate or limited
      liability action with respect to this Agreement and the other Transaction
      Documents.

    

    (b)
      Certificates of each of the Borrower, LEAF Financial Corporation, LEAF Ventures,
      LLC and Merit Capital Manager, LLC certifying (i) the names and true signatures
      of the officers of such Person (or, as the case may be, its managing member)
      authorized to sign the Transaction Documents to which it is a party and any
      other documents to be delivered hereunder or thereunder, (ii) the accuracy
      of
      the representations and warranties of such Person under the Transaction
      Documents to which it is a party, (iii) the absence of Defaults and Events
      of
      Default under this Agreement and the Class A Note and (iv) such other matters
      as
      the Lender shall reasonably request.

    

    (c)
      A
      favorable written opinion of Ledgewood, P.C., counsel to the Managing Member,
      in
      form and substance satisfactory to the Lender, covering such matters relating
      to
      this Agreement and the transactions contemplated hereby as the Lender may
      reasonably request.

    

    (d)
      A
      favorable written opinion of Milbank, Tweed, Hadley & McCloy LLP, special
      New York counsel for the Lender, covering such matters relating to the
      transactions contemplated hereby as the Lender may require.

    

    (e)
      The
      Security Agreement, duly executed and delivered by the Borrower and the Lender
      with evidence of the perfection and first priority of the Liens created
      thereby.

    (f)
      An
      Account Control Agreement with respect to the Operating Accounts, duly executed
      and delivered by the Borrower, the Lender and Commerce Bank, N.A.

    

    (g)
      The
      Participation Agreement, duly executed and delivered by the Initial Class B
      Member and the Lender.

    

    (h)
      The
      LEAF Services Agreement, duly executed and delivered by the parties
      thereto.

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (i)
      A
      copy of the Class A Note, duly executed and delivered by the
      Borrower.

    

    (j)
      Evidence satisfactory to the Lender that the Borrower shall have received a
      Capital Contribution in the amount of $2,500,000 from the Initial Class B
      Member, as provided in Section 3.3(a) of the LLC Agreement.

    

    (k)
      A
      copy of the Budget, which shall be in form and substance satisfactory to the
      Lender.

    

    (l)
      Such
      other documents relating hereto as the Lender shall reasonably
      request.

    

    SECTION
      3.02. Conditions
      Precedent to Each Advance

    .
      The
      obligation of the Lender to make each Advance (including, without limitation,
      the initial Advance) shall be subject to the further conditions precedent that
      (a) on the date of such Advance (i) the representations and warranties set
      forth
      in Article IV are true and correct on and as of the date of such Advance, before
      and after giving effect to such Advance and to the application of the proceeds
      thereof, as though made on and as of such date, (ii) no Default has occurred
      and
      is continuing, or would result from such Advance or from the application of
      the
      proceeds thereof and (iii) the EBITDA Funding Condition shall be satisfied
      on
      and as of the date of such Advance and (b) after giving effect to such Advance,
      the aggregate outstanding amount of Advances shall not exceed the sum of (i)
      the
      Par Value of Merchant Advances plus
      (ii) a
      face amount not in excess of $1,000,000 of Financial Investments held by the
      Borrower on such date. The giving of a Notice of Borrowing shall constitute
      a
      certification by the Borrower to the effect that the conditions set forth in
      this Section 3.02 have been fulfilled (both as of the date of the Notice of
      Borrowing and, unless the Borrower otherwise notifies the Lender prior to the
      date of the applicable Advance, as of the date of such
      Advance).

    ARTICLE
      IV

    

    REPRESENTATIONS
      AND WARRANTIES

    

    The
      Borrower represents and warrants to the Lender that:

    

    SECTION
      4.01. Organization.
      The
      Borrower is duly organized, validly existing and in good standing under the
      laws
      of Delaware. 

     

    SECTION
      4.02. Authorization;
      Enforceability.
      The
      execution, delivery and performance of this Agreement by the Borrower are within
      the Borrower's corporate powers and have been duly authorized by all necessary
      corporate action. This Agreement has been duly executed and delivered by the
      Borrower and constitutes a legal, valid and binding obligation of 

    
      
        
        

      

      
        22

        
          

        

      

      
        
        
the Borrower,
        enforceable in accordance with its terms, except as such enforceability may
        be
        limited by (a) bankruptcy, insolvency, reorganization, moratorium or similar
        laws of general applicability affecting the enforcement of creditors' rights
        and
        (b) the application of general principles of equity (regardless of whether
        such
        enforceability is considered in a proceeding in equity or at
        law).

    

    SECTION
      4.03. Government
      Approvals; No Conflicts.
      The
      execution, delivery and performance of this Agreement by the Borrower (a) do
      not
      require any consent or approval of, registration or filing with, or any other
      action by, any governmental authority, (b) will not violate any applicable
      law
      or regulation or the certificate of formation or limited liability company
      agreement of the Borrower and (c) will not violate or result in a default under
      any loan agreement, indenture, or other agreement or instrument binding upon
      the
      Borrower or any of its Subsidiaries.

     

     

    SECTION
      4.04. No
      Material Adverse Effect.
      Since
      the
      date of this Agreement, no event or circumstance has occurred that could
      reasonably be expected to have a Material Adverse Effect.

    

    SECTION
      4.05. Litigation.
      There
      are no actions, suits or proceedings by or before any arbitrator or governmental
      authority now pending against or, to the knowledge of the Borrower, threatened
      against or affecting the Borrower or any of its Subsidiaries (i) that, if
      adversely determined, could reasonably be expected, individually or in the
      aggregate, to result in a Material Adverse Effect or (ii) that involve this
      Agreement or the transactions contemplated thereby.

    

    SECTION
      4.06. Compliance
      with Laws and Agreements.
      The
      Borrower and each of its Subsidiaries is in compliance with all applicable
      laws
      (including without limitation Environmental Laws, tax laws and ERISA),
      regulations and orders of any governmental authority applicable to it or its
      property and all indentures, agreements and other instruments binding upon
      it or
      its property, except where the failure to do so, individually or in the
      aggregate, could not reasonably be expected to result in a Material Adverse
      Effect. 

     

    SECTION
      4.07. Investment
      and Holding Company Status.
      The
      Borrower is not an "investment company" as defined in, or subject to regulation
      under, the Investment Company Act of 1940, as amended.

    

    SECTION
      4.08. Margin
      Regulations.
      The
      Borrower is not engaged principally, or as one of its important activities,
      in
      the business of extending credit for the purpose, whether immediate, incidental
      or ultimate, of buying or carrying Margin Stock (within the meaning of
      Regulation U or X of the Board of Governors of the Federal Reserve System),
      and
      no part of the proceeds of any Advance will be used to buy or carry any Margin
      Stock.

    

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

    SECTION
      4.09. Solvency.
      The
      Borrower is and, after giving effect to each Advance and the use of the proceeds
      thereof, will be Solvent.

    

    ARTICLE
      V

     

    COVENANTS
      OF THE BORROWER

    

    So
      long
      as any principal of or interest on any Advance or any other amount payable
      hereunder remains outstanding or the Commitment remains in effect, the Borrower
      covenants and agrees that:

    

    SECTION
      5.01. Certain
      Covenants.

    

    (a)
      The
      Borrower will, and cause each of its Subsidiaries to, preserve and maintain
      its
      corporate existence and comply with all applicable laws, statutes, rules,
      regulations and orders, including without limitation, those relating to federal
      or State non-banking activities, licensing, usury, truth in lending, privacy,
      credit reporting, equal opportunity, predatory lending, money-laundering and
      terrorism financing, and all applicable Environmental Laws, tax laws and ERISA,
      except to the extent such non-compliance could not reasonably be expected to
      have a Material Adverse Effect or otherwise adversely affect the Lender. The
      Borrower will, and will cause each of its Subsidiaries to, comply with
      instructions provided from time to time by the Lender in connection with the
      Lender's efforts to ensure the business of the Borrower and its

    Subsidiaries
      is at all times in compliance with all such applicable statutes, rules,
      regulations and orders, except to the extent non-compliance with such statutes,
      rules or regulations could not reasonably be expected to have a Material Adverse
      Effect or otherwise adversely affect the Lender.

    

    (b)
      The
      Borrower will, and cause each of its Subsidiaries to, promptly from time to
      time
      obtain and maintain in full force and effect all licenses, consents,
      authorizations and approvals of, and make all filings and registrations with,
      any Governmental Authority necessary in connection with the business of the
      Borrower and its Subsidiaries, except to the extent the failure to obtain or
      maintain any of the foregoing could not reasonably be expected to have a
      Material Adverse Effect or otherwise adversely affect the Lender.

    

    (c)
      The
      Borrower will, and cause each of its Subsidiaries to, timely file all required
      tax returns, and pay and discharge all taxes, assessments and other governmental
      charges imposed upon it and its property or any part thereof, or upon the income
      or profits therefrom, as well as all claims for labor, materials or supplies
      which if unpaid might by law become a lien or charge upon any property of the
      Borrower or such Subsidiary, except (i) such items as are being contested in
      good faith by appropriate proceedings and as to which appropriate reserves
      are
      being maintained and (ii) items the non-payment of which could not (either
      individually or in the aggregate) reasonably be expected to have a Material
      Adverse Effect.

    

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    (d)
      The
      Borrower will, and cause each of its Subsidiaries to, keep adequate records
      and
      books of account, in which complete entries will be made in accordance with
      GAAP, and permit representatives of the Lender, during normal business hours
      and
      upon reasonable notice, to examine, copy and make extracts from its books and
      records, to inspect any of its property, and to discuss its business and affairs
      with its officers, all to the extent reasonably requested by the
      Lender.

    

    (e)
      The
      Borrower will furnish to the Lender:

    

    (i)
      by
      the dates the Managing Member is required to make delivery thereof to the
      Members under the LLC Agreement (or, if delivered earlier, simultaneously with
      the Managing Member's delivery thereof to such Members), copies of all financial
      statements, monthly reports, notices and other informational materials required
      to be delivered to such Members under the LLC Agreement;

    

    (ii)
      as
      soon as possible and in any event within five Business Days after the occurrence
      of any Default, a statement of the Borrower setting forth details of such
      Default and the action which the Borrower has taken and proposes to take with
      respect thereto;

    

    (iii)
      on
      or before each Monthly Date: 

    

    (x)
      a
      copy of each Merchant Advance Contract entered into by the Borrower and not
      previously provided to the Lender; and

    

    (y)
      a
      certificate of a senior financial officer of the Borrower (i) setting forth
      information in reasonable detail for each such Merchant Advance Contract as
      to
      the frequency and amount of payments to be received by the Borrower thereunder
      assumed when such Merchant Advance Contract was originally entered into, (ii)
      identifying each Merchant Advance Contract that was a Delinquent Asset or a
      Net
      Loss Asset as of the last day of the preceding calendar month and (iii) setting
      forth in reasonable detail the calculations required to establish whether the
      Borrower was in compliance with the requirements of Sections 5.02 and 5.03
      for,
      and satisfied the EBITDA Funding Condition during, such preceding calendar
      month;

    

    (iv)
      on
      the date Advances are prepaid (or required to be prepaid) under Section 2.06(c)
      with respect to any Calendar Month End Date (or, if no such prepayment is
      required under Section 2.06(c) with respect to any Calendar Month End Date,
      on
      or 

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    before
      the date four Business Days following such Calendar Month End Date), a
      certificate of a senior financial officer of the Borrower (1) setting forth
      a
      calculation in reasonable detail (broken down by Merchant Advance Contract)
      of
      the Par Value of Merchant Advances as of such Calendar Month End Date and
      setting forth the face amount of all Financial Investments held by the Borrower
      as of such Calendar Month End Date and (2) identifying each Merchant Advance
      Contract that is a Delinquent Asset or a Net Loss Asset as of such Calendar
      Month End Date;

    

    (v)
      promptly upon the Borrower becoming aware thereof, written notice of the filing
      or commencement of any action, suit or proceeding by or before any arbitrator
      or
      Governmental Authority against or affecting the Borrower or any Affiliate
      thereof or any Member; and

    

    (vi)
      such
      other information respecting the condition or operations, financial or
      otherwise, of the Borrower and its Subsidiaries as the Lender may from time
      to
      time request.

    

    (f)
      The
      Borrower will use the proceeds of the Advances solely to (1) finance the
      Borrower's obligations under Merchant Advance Contracts and (2) pay service
      fees
      owing by the Borrower under the LEAF Services Agreement, in each case in
      compliance with all applicable legal and regulatory requirements; provided,
      that
      the Lender shall have no responsibility as to the use of any of such
      proceeds.

    (g)
      The
      Borrower will not, and will not permit any of its Subsidiaries to, merge with
      or
      consolidate into any other Person or convey, transfer or lease all or
      substantially all of its assets in a single transaction or series of
      transactions to any Person.

    

    (h)
      The
      Borrower will not create, and
      will
      not permit any of its Subsidiaries to, assume
      or
      suffer to exist any Lien on any of its property now owned or hereafter acquired
      by it, except Permitted Liens.

    

    (i)
      The
      Borrower will not at any time incur or permit to remain outstanding any
      Indebtedness, other than (x) Indebtedness under this Agreement and (y)
      Indebtedness under the Class A Note.

    

    (j)
      The
      Borrower will not exercise its right under the LEAF Services Agreement to
      acquire the Servicer, or acquire or permit any Subsidiary to acquire more than
      five percent of any class of voting securities of, or 25 percent of the equity
      of, any other Person.
      The
      Borrower will not permit its Subsidiaries to incur or have outstanding any
      Indebtedness.

    

    (k)
      The
      Borrower
      will
      not, and will not permit any of its Subsidiaries to, directly or indirectly
      enter into any transaction with an Affiliate (other than the LEAF Services
      

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

      Agreement) except in the ordinary course of and pursuant
        to
        the reasonable requirements of its business and upon commercially reasonable
        terms that are no less favorable to it than those which might be obtained
        in a
        comparable arm's-length transaction at the time from a Person which is not
        such
        an Affiliate.

       

    

    (l)
      The
      Borrower will at all times comply with the restrictions on its activities set
      forth in the LLC Agreement.

    

    (m)
      The
      Borrower will not, without the Lender’s prior written consent, have or maintain
      any Deposit Accounts or Securities Accounts (each as defined in the Security
      Agreement) other than the Operating Accounts, and will ensure that the Operating
      Accounts and each other Deposit Account and Securities Account (as so defined)
      is at all times subject to an Account Control Agreement unless maintained with
      the Lender. The Borrower will ensure that all amounts payable to the Borrower
      under any Merchant Advance Contract are paid directly into (i) an Operating
      Account, (ii) a Deposit Account or Securities Account that is subject to an
      Account Control Agreement or (iii) an account maintained with the
      Lender.

    (n)
      The
      Borrower will from time to time give, execute, deliver, file and/or record
      any
      financing statement, notice, instrument, document, agreement or other papers
      that may be necessary or desirable to cause the Liens created by the Security
      Agreement to be valid first and prior perfected Liens on the Collateral
      purported to be covered thereby, subject to no equal or prior Lien.

    

    

    SECTION
      5.02. Financial
      Covenants.

    

    (a) Debt
      to Tangible Net Worth Ratio.
      The
      Borrower
      will
      not
      permit the Debt to Tangible Net Worth Ratio to exceed
      the following respective ratios at any time during the following respective
      periods:

    

    
      	
              Period

            	
              Ratio

            
	
              Date
                hereof to 

              March
                31, 2008

            	
              10.0
                to 1.0

            
	
              April
                1, 2008 and at

              all
                times thereafter

            	
              8.0
                to 1.0

            

    

    

    (b) Interest
      Coverage Ratio.
      The
      Borrower will not permit the Interest Coverage Ratio at any time from and after
      December 1, 2007 to be less than 1.50 to 1.00.

    

    (c) Tangible
      Net Worth.
      The
      Borrower will not permit Tangible Net Worth to be less than the following
      respective amounts at any time during the following respective
      periods:

    

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

    
      	
              Period

            	
              Amount

            
	
              Date
                hereof to 

              December
                31, 2007

            	
              $2,000,000

            
	
              January
                1, 2008 and at

              all
                times thereafter

            	
              $3,000,000

            

    

    

    

    SECTION
      5.03. Operating
      Covenants.

    

    (a) Delinquency
      Ratio.
      The
      Borrower will not permit the Delinquency Ratio as of the last day of any
      calendar month to be greater than or equal to 9.8%.

    

    (b) Net
      Loss Ratio.
      The
      Borrower will not permit the Net Loss Ratio as of the last day of any calendar
      month to be greater than or equal to 6.5%.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

    ARTICLE
      VI

    

    EVENTS
      OF
      DEFAULT

    

    SECTION
      6.01. Events
      of Default.
      If any
      of the following events ("Events
      of Default",
      provided
      that
      such term shall exclude any of such events caused primarily by action or
      omission of a Class A Member) shall occur and be continuing:

    

    (a)
      The
      Borrower shall default in the payment when due of any principal of any Advance
      when the same becomes due and payable; or the Borrower shall fail to pay any
      interest on any Advance or any fee or other amount payable hereunder or under
      the Fee Letter when due and such failure remains unremedied for three Business
      Days; or

    

    (b)
      Any
      representation or warranty made by the Borrower herein, in the Security
      Agreement or in any Account Control Agreement or in any certificate or other
      document delivered in connection herewith or therewith shall prove to have
      been
      incorrect when made or deemed made in any material respect; or

    

    (c)
      (i)
      The Borrower shall fail to perform or observe any term, covenant or agreement
      contained in Section 5.01(a), 5.01(b), 5.01(e), 5.01(f), 5.01(g), 5.01(h),
      5.01(i), 5.01(j), 5.01(k), 5.01(l), 5.01(m), 5.02 or 5.03; or (ii) the Borrower
      shall fail to perform or observe any other term or covenant in this Agreement,
      the Security Agreement or any Account Control Agreement on its part to be
      performed or observed and such failure remains unremedied for thirty days after
      the earlier of (x) the date on which the Borrower has knowledge thereof or
      (y)
      the date on which written notice thereof shall have been given to the Borrower
      by the Lender; or 

    

    (d)
      The
      Borrower or any of its Subsidiaries shall fail to pay any principal of or
      premium or interest on any other Debt of the Borrower or any of its Subsidiaries
      having an aggregate outstanding principal amount of $50,000 or more
      ("Material
      Debt")
      when
      the same becomes due and payable, and such failure shall continue after the
      applicable grace period, if any, specified in the agreement or instrument
      relating to such Material Debt; or any other event shall occur or condition
      shall exist under any agreement or instrument relating to any such Material
      Debt
      and shall continue after the applicable grace period, if any, specified in
      such
      agreement or instrument, if the effect of such event or condition is to
      accelerate, or to permit the acceleration of, the maturity of such Material
      Debt; or any such Material Debt shall be declared to be due and payable, or
      required to be prepaid (other than by a regularly scheduled required
      prepayment), redeemed, purchased or defeased, or an offer to prepay, redeem,
      purchase or defease such Material Debt shall be required to be made, in each
      case prior to the stated maturity thereof; or

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    

    (e)
      The
      Borrower or any of its Subsidiaries shall generally not pay its debts as such
      debts become due, or shall admit in writing its inability to pay its debts
      generally, or shall make a general assignment for the benefit of creditors;
      or
      any proceeding shall be instituted by or against the Borrower or any of its
      Subsidiaries seeking to adjudicate it as bankrupt or insolvent, or seeking
      liquidation, winding up, reorganization, arrangement, adjustment, protection,
      relief, or composition of it or its debts under any law relating to bankruptcy,
      insolvency, moratorium or reorganization or relief of debtors, or liquidation
      or
      winding up, or seeking the entry of an order for relief or the appointment
      of a
      receiver, trustee, custodian or other similar official for it or for any
      substantial part of its property and such proceeding shall remain undismissed
      or
      unstayed for a period of 60 days; or the Borrower or any of its Subsidiaries
      shall take any corporate action to authorize any of the actions set forth above
      in this subsection (e); or

    

    (f)
      Any
      judgment or order for the payment of money in excess of $50,000 shall be
      rendered against the Borrower or any of its Subsidiaries, and either
      (i) enforcement proceedings shall have been commenced by any creditor upon
      such judgment or order and such proceedings shall not have been stayed or
      (ii) there shall be any period of 30 consecutive days during which a stay
      of enforcement of such judgment or order, by reason of a pending appeal or
      otherwise, shall not be in effect; or

    

    (g)
      A
      Change in Control shall occur; or

    

    (h)
      The
      Liens created by the Security Agreement shall, at any time with respect to
      any
      material portion of the Collateral intended to be covered thereby, not be valid
      and perfected (to the extent perfection by filing, registration, recordation,
      possession or control is required herein or therein) in favor of the Lender
      free
      and clear of all other Liens (other than Liens permitted under Section 5.01(h)
      of this Agreement or under the Security Agreement); or except for expiration
      in
      accordance with its terms, the Security Agreement shall for whatever reason
      be
      terminated or cease to be in full force or effect in any material respect,
      or
      the enforceability thereof shall be contested by the Borrower; or 

    

    (i)
      The
      Borrower or any of its Subsidiaries shall incur liability to a Plan, a
      Multiemployer Plan or the PBGC (or any combination of the foregoing) that either
      individually or in the aggregate, could reasonably be expected to have a
      Material Adverse Effect; or

    

    (j)
      Any
      action, suit or proceeding by or before any arbitrator or governmental authority
      against or affecting the Borrower or any of its Subsidiaries that, if adversely
      determined, could reasonably be expected, individually or in the aggregate,
      to
      result in a Material Adverse Effect, shall be commenced or threatened;
      or

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    (k)
      Any
      Person shall initiate foreclosure proceedings with respect to any Lien on the
      Equity Interests in the Borrower, LEAF Ventures or the Servicer; 

    

    then,
      and
      in any such event, the Lender may, by notice to the Borrower, (i) declare the
      obligation of the Lender to make Advances to be terminated, whereupon the same
      shall forthwith terminate, and/or (ii) declare the Advances, all interest
      thereon and all other amounts payable under this Agreement to be forthwith
      due
      and payable, whereupon the Advances, all such interest and all such amounts
      shall become and be forthwith due and payable, without presentment, demand,
      protest or further notice of any kind, all of which are hereby expressly waived
      by the Borrower; provided,
      however,
      that in
      the event of an entry of an order for relief with respect to the Borrower under
      the Federal Bankruptcy Code, (A) the obligation of the Lender to make Advances
      shall auto-matically be terminated and (B) the Advances, all such interest
      and
      all such amounts shall automatically become and be due and payable, without
      presentment, demand, protest or any notice of any kind, all of which are hereby
      expressly waived by the Borrower.

    

    ARTICLE
      VII

     

    MISCELLANEOUS

    

    SECTION
      7.01. Amendments,
      Etc.
      No
      amendment or waiver of any provision of this Agreement, nor consent to any
      departure by the Borrower therefrom, shall in any event be effective unless
      the
      same shall be in writing and signed by the Lender, and then such waiver or
      consent shall be effective only in the specific instance and for the specific
      purpose for which given. This Agreement and the documents referred to herein
      and
      therein constitute the entire agreement of the parties with respect to the
      subject matter hereof and thereof.

    

    SECTION
      7.02. Notices,
      Etc.
      All
      notices and other communications provided for hereunder shall be in writing
      (including facsimile, telegraphic, telex or cable communication) and mailed,
      submitted by facsimile, telegraphed, telexed, cabled or deliv-ered, to the
      respective addresses set forth on the signature pages hereof or at such other
      address as shall be desig-nated by any party in a written notice to the other
      party. All such notices and communications shall, (a) when submitted by
      facsimile, telegraphed, telexed or cabled, be effective when submitted by
      facsimile, delivered to the telegraph company, confirmed by telex answerback
      or
      delivered to the cable company, respectively, or (b) when submitted by mail,
      upon receipt, except in any such case that notices and communications to the
      Lender pursuant to Article II shall not be effective until received by the
      Lender.

    

    SECTION
      7.03. No
      Waiver; Remedies. No failure on the part of the Lender to exercise, and no
      delay in exercising, any right hereunder shall operate as a waiver thereof;
      

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    nor
      shall
      any single or partial exercise of any such right preclude any other or further
      exercise thereof or the exercise of any other right. The reme-dies herein
      provided are cumulative and not exclusive of any remedies provided by
      law.

    

    SECTION
      7.04. Costs,
      Expenses and Indemnification.

     

    (a)
      The
      Borrower agrees to pay and reimburse on demand all reasonable costs and expenses
      incurred by the Lender in connection with the preparation, negotiation,
      execution and delivery, administration, modification, amendment or enforcement
      of this Agreement and the other documents to be delivered hereunder, including,
      without limitation, the reasonable fees and out-of-pocket expenses of counsel
      for the Lender with respect thereto and with respect to advising the Lender
      as
      to its rights and responsibilities under or in connection with this Agreement.
      

    

    (b)
      The
      Borrower hereby agrees to indemnify the Lender and each of its Affiliates and
      their respective officers, directors, employees, agents, advisors and
      representatives (each, an "Indemnified
      Party")
      from
      and against any and all claims, damages, losses, liabilities and expenses
      (including, without limitation, fees and disbursements of counsel), joint or
      several, that may be incurred by or asserted or awarded against any Indemnified
      Party (the "Indemnities"),
      in
      each case arising out of or in connection with or relating to any investigation,
      litigation or proceeding or the preparation of any defense with respect thereto
      arising out of or in connection with or relating to this Agreement or the
      transactions contemplated hereby or thereby or any use made or proposed to
      be
      made with the proceeds of the Advances, whether or not such investigation,
      litigation or proceeding is brought by the Borrower, any of its shareholders
      or
      creditors, an Indemnified Party or any other Person, or an Indemnified Party
      is
      otherwise a party thereto, and whether or not any of the conditions precedent
      set forth in Article III are satisfied or the other transactions contemplated
      by
      this Agreement are consummated, except to the extent such claim, damage, loss,
      liability or expense is found in a final, non-appealable judgment by a court
      of
      competent jurisdiction to have resulted from such Indemnified Party's gross
      negligence or willful misconduct; provided,
      however,
      the
      Borrower's obligation to indemnify any Indemnified Party, other than the Lender,
      under this Section 7.04(b) shall be subject to its receipt of written demand
      for
      the Indemnities of such Indemnified Party, such demand to set forth evidence
      of
      such Indemnified Party's payment or liability for such Indemnities. The Lender
      shall have no liability for any special, indirect, consequential or punitive
      damages in connection with any matter relating hereto. 

    

    SECTION
      7.05. Assignments
      and Participations.
      

     

               (a)
      The Lender may assign
      to another Person all or a portion of its rights and obligations under this
      Agreement (including, without limitation, all or a portion of the 

    
 

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     Commitment
      and the Advances);
provided,
      that
      any such partial assignment shall be in an amount at least equal to
      $1,000,000.

    

    (b)
      The
      Lender may sell participations to one or more banks or other entities in or
      to
      all or a portion of its rights and obligations under this Agreement (including,
      without limitation, all or a portion of its Commitment and the Advances);
provided,
      however,
      that
      the Lender's obligations under this Agreement (including, without limitation,
      its Commitment hereunder) shall remain unchanged.

    

    (c)
      The
      Lender may, in connection with any assignment or participation or proposed
      assignment or participation pursuant to this Section 7.05, disclose to the
      assignee or participant or proposed assignee or participant, any information
      relating to the Borrower or any of its Affiliates furnished to the Lender by
      or
      on behalf of the Borrower.

    

    (d)
      Notwithstanding any other provision set forth in this Agreement, the Lender
      may
      at any time create a security interest in all or any portion of its rights
      under
      this Agreement (including, without limitation, the Advances) in favor of any
      Federal Reserve Bank in accordance with Regulation A of the Board of Governors
      of the Federal Reserve System.

    

    (e)
      All
      amounts payable by the Borrower to the Lender under Sections 2.08(e), 2.10,
      2.11 and 7.04 shall be determined as if the Lender had not sold or agreed
      to sell any participa-tions in the Advances or its Commitment and as if the
      Lender were funding each of such Advances and Commitment in the same way that
      it
      is funding the portion of such Advances and Commitment in which no
      participations have been sold. 

    

    SECTION
      7.06. Governing
      Law; Submission to Jurisdiction.

    

    (a)
      This
      Agreement shall be governed by, and construed in accordance with, the law of
      the
      State of New York. The Borrower hereby submits to the nonexclusive jurisdiction
      of the United States District Court for the Southern District of New York and
      of
      any New York state court sitting in New York County for the purposes of all
      legal proceedings arising out of or relating to this Agreement or the
      transactions contemplated hereby. 

    

    (b)
      The
      Borrower irrevocably waives, to the fullest extent permitted by applicable
      law,
      any objection that it may now or hereafter have to the laying of the venue
      of
      any such proceeding brought in such a court and any claim that any such
      proceeding brought in such a court has been brought in an inconvenient
      forum.

    

    SECTION
      7.07. Severability.
      In case any provision in this Agreement shall be held to be invalid, illegal
      or
      unenforceable, such provision shall be severable from the rest of this
      Agreement, and the validity, legality and enforceability of the remaining
      provisions shall not in any way be affected or impaired
      thereby.

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

    SECTION
      7.08. Execution
      in Counterparts

    .
      This
      Agreement may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which when so executed shall be deemed
      to be an original and all of which taken together shall constitute one and
      the
      same agreement.

    

    SECTION
      7.09. Survival.
      This
      Agreement and the documents referred to herein and therein, which constitute
      the
      entire agreement of the parties with respect to the subject matter hereof and
      thereof, shall cease to be effective upon the termination of the Commitment
      and
      the final payment in full of all amounts due and payable hereunder; provided,
      that
      the obligations of the Borrower under Sections 2.08(e), 2.10, 2.11, 2.12 and
      7.04 shall survive the termination of the Commitment and the repayment in full
      of all amounts due and payable hereunder. Each representation and warranty
      made
      or deemed to be made herein or pursuant hereto shall survive the making of
      such
      representation and warranty, and the Lender shall not be deemed to have waived,
      by reason of making any Advance, any Default or Event of Default that may arise
      by reason of such representation or warranty proving to have been false or
      misleading.

    

    SECTION
      7.10. Waiver
      of Jury Trial

    .
      EACH OF
      THE BORROWER AND THE LENDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
      PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
      PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
      CONTEMPLATED HEREBY.

    

    SECTION
      7.11. No
      Fiduciary Relationship

    .
      The
      Borrower acknowledges that the Lender has no fiduciary relationship with, or
      fiduciary duty to, the Borrower arising out of or in connection with this
      Agreement, and the relationship between the Lender and the Borrower is solely
      that of creditor and debtor. This Agreement does not create a joint venture
      among the parties.

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

             
SECTION
      7.12.
Confidentiality.
      The
      Lender agrees to maintain the confidentiality of the Information (as defined
      below) of the Borrower, except that Information may be disclosed (a) to the
      Lender's and its Affiliates’ directors, officers, employees and agents,
      including accountants, legal counsel and other advisors (it being understood
      that the Persons to whom such disclosure is made will be informed of the
      confidential nature of such Information and instructed to keep such Information
      confidential), (b) to the extent requested by any regulatory authority,
      (c) to the extent required by applicable laws or regulations or by any
      subpoena or similar legal process, (d) to the Borrower, (e) in
      connection with the exercise of any remedies hereunder or any suit, action
      or
      proceeding relating to this Agreement or the enforcement of rights hereunder,
      (f) subject to an agreement containing provisions substantially the same as
      those of this Section 7.12, to any assignee of or participant in, or any
      prospective assignee of or participant in, any of the Lender's rights or
      obligations under this Agreement, (g) with the consent of the Borrower or
      (h) to the extent such Information (i) becomes publicly available
      other than as a result of a breach of this Section 7.12 or (ii) becomes
      available to the Lender from a source other than the Borrower. For the purposes
      of this Section, “Information”
in
      relation to the Borrower means all information received from the Borrower
      relating to the Borrower or its business, other than any such information that
      is available to the Lender on a nonconfidential basis prior to disclosure by
      the
      Borrower; provided
      that, in
      the case of information received from the Borrower after the date hereof, such
      information is clearly identified at the time of delivery as confidential.
      Any
      Person required to maintain the confidentiality of Information as provided
      in
      this Section 7.12 shall be considered to have complied with its obligation
      to do
      so if such Person has exercised the same degree of care to maintain the
      confidentiality of such Information as such Person would accord to its own
      confidential information.

     

                    
      SECTION 7.13. USA
      PATRIOT Act.
      The
      Lender hereby notifies the Borrower that pursuant to the requirements of the
      USA
PATRIOT
      Act
      (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the
      "Act"),
      it is
      required to obtain, verify and record information that identifies the Borrower,
      which information includes the name and address of the Borrower and other
      information that will allow the Lender to identify the Borrower in accordance
      with the Act.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      by
      their respective officers thereunto duly authorized, as of the date first above
      written.

    

    MERIT
      CAPITAL ADVANCE, LLC 

    By: LEAF
      Ventures, LLC

    Its
      Managing Member

    

    By: LEAF
      Financial Corporation

    Its
      Managing Member

    

    By:______________________________________
      

    Name:

    Title:

    

    Address
      for Notices:

    c/o
      LEAF
      Financial Corporation

    1818
      Market Street, 9th
      Floor

    Philadelphia,
      PA 19103

    Attention:
      Crit DeMent

    Telecopy:
      (215) 640-6330

    

    

    DEUTSCHE
      BANK AG Cayman Islands Branch

    

    

    By:____________________________

    Name:

    Title:

    

    By:____________________________

    Name:

    Title:

    

    

    Applicable
      Lending Office:

    Cayman
      Islands

    

    Address
      for Notices:

    60
      Wall
      Street

    New
      York,
      NY 10005

    Attention:
      Todd Hirsh

    Telecopy:
      (732) 578-3944

    

    
      
        
          NY3:#7401722v15 

        

        
        

      

      
        36

        
          

        

      

      
        
        

        
        

      

    

    EXHIBIT
      A

    

    

    [FORM
      OF SECURITY AGREEMENT]

     

    SECURITY
      AGREEMENT dated as of March 15, 2007, between Merit Capital Advance, LLC, a
      limited liability company duly organized and validly existing under the laws
      of
      Delaware (the "Grantor"),
      and
      Deutsche Bank AG Cayman Islands Branch (the "Secured
      Party")
      .

     

    The
      Grantor may from time to time obtain credit and other financial accommodations
      from the Secured Party (by means of loans under the Credit Agreement referred
      to
      below, or otherwise).

     

    To
      induce
      the Secured Party to extend such credit and other financial accommodations,
      and
      for other good and valuable consideration, the receipt and sufficiency of which
      are hereby acknowledged, the Grantor has agreed to grant a security interest
      in
      the Collateral (as hereinafter defined) as security for the Secured Obligations
      (as so defined). 

     

    Accordingly,
      the parties hereto agree as follows:

     

    Section
      1. Definitions,
      Etc.

     

    1.01 Certain
      Uniform Commercial Code Terms.
      As used
      herein, the terms "Accession",
      "Account",
      "As-Extracted
      Collateral",
      "Chattel
      Paper",
      "Commodity
      Account",
      "Commodity
      Contract",
      "Deposit
      Account",
      "Document",
      "Electronic
      Chattel Paper",
      "Equipment",
      "Fixture",
      "General
      Intangible",
      "Goods",
      "Instrument",
      "Inventory",
      "Investment
      Property",
      "Letter-of-Credit
      Right",
      "Payment
      Intangible",
      "Proceeds",
      "Promissory
      Note",
      "Software"
      and
      "Tangible
      Chattel Paper"
      have
      the respective meanings set forth in Article 9 of the NYUCC, and the terms
      "Certificated
      Security",
      "Entitlement
      Holder",
      "Financial
      Asset",
      "Instruction",
      "Securities
      Account",
      "Security",
      "Security
      Certificate",
      "Security
      Entitlement"
      and
      "Uncertificated
      Security"
      have
      the respective meanings set forth in Article 8 of the NYUCC.

     

    1.02 Additional
      Definitions.
      In
      addition, as used herein:

     

    "Casualty
      Event"
      means,
      with respect to any property of any Person, any loss of or damage to, or any
      condemnation or other taking of, such property for which such Person receives
      insurance proceeds, or proceeds of a condemnation award or other
      compensation.

     

    "Collateral"
      has the
      meaning assigned to such term in Section 3.

    "Collateral
      Account"
      has the
      meaning assigned to such term in Section 4.01(a).

     

    "Contingent
      Secured Obligations"
      means
      obligations of the Grantor in respect of (a) letters of credit issued by the
      Secured Party for the account of the Grantor under any Credit Document, (b)
      acceptances created for the benefit of the Grantor by the Secured Party under
      any Credit Document, and (c) any other claim that may be payable to the
      Secured Party by the Grantor under any Credit Document that is not yet due
      and
      payable.

     

    
      
        Security
          Agreement

      

      
        
        

        
          

        

      

      
        2

      

    

    "Copyright
      Collateral"
      means
      all Copyrights of the Grantor, whether now owned or hereafter acquired by the
      Grantor, including each Copyright identified in Annex 4.

     

    "Copyrights"
      means
      all copyrights, copyright registrations and applications for copyright
      registrations, including all renewals and extensions thereof, all rights to
      recover for past, present or future infringements thereof and all other rights
      whatsoever accruing thereunder or pertaining thereto.

     

    "Credit
      Agreement"
      means
      that certain Credit Agreement dated as of the date hereof between the Grantor,
      as borrower, and the Secured Party, as lender, as the same may be amended,
      supplemented, amended and restated or otherwise modified from time to
      time.

     

    "Credit
      Documents"
      means
      collectively, this Agreement, the Credit Agreement and any other document or
      instrument now existing or hereafter entered into that relates to any Financial
      Accommodation at any time made available by the Secured Party to the Grantor
      (including any promissory note evidencing any thereof, and any document or
      instrument providing for the grant of a lien upon any property of the Grantor
      as
      collateral security for the obligations of the Grantor in respect of any
      Financial Accommodation).

     

    "Default"
      means
      any of the following events: (a) any of the Secured Obligations shall have
      been declared, or shall become, due and payable prior to the stated maturity
      therefor, (b) the Grantor shall commence any bankruptcy or insolvency
      proceeding, or there shall be commenced against the Grantor any bankruptcy
      or
      insolvency proceeding and the same shall not be dismissed within 60 days,
      (c) the Grantor shall fail to pay when due any principal amount in respect
      of a Secured Obligation, (d) the Grantor shall fail to pay any interest,
      fees, commissions, indemnities, costs and other expenses in respect of any
      Secured Obligations for three or more business days after the date on which
      such
      amounts first become due or (e) any event of default or termination
      (however described) under any Credit Document shall occur and be
      continuing.

     

    "Financial
      Accommodation"
      means
      any loan, advance, letter of credit or overdraft, securities lending, discount
      or purchase of notes, security or other instrument or property, acceptance,
      issuance or confirmation of any letter of credit, guarantee or indemnity,
      interest rate, currency, equity or other similar type of swap or protection
      agreement, foreign exchange agreement, cash management arrangement or any other
      kind of agreement under which the Grantor may be indebted or obligated to the
      Secured Party in any manner, whether now existing or hereafter arising, whether
      direct or indirect, absolute or contingent, joint or several, due or not due,
      primary or secondary, liquidated or unliquidated, secured or not secured, and
      however acquired by the Secured Party.

     

    
      "Foreign
        Subsidiary"
        means
        any subsidiary of the Grantor with respect to which the Secured Party determines
        that a pledge of more than 66-2/3% of the total number of shares of voting
        stock of such subsidiary would result in material adverse tax consequences
        under
        Section 956 of the Code.

    

    
      
        Security
          Agreement

      

      
        
        

        
          

        

      

      
        
        

      
3

    "Initial
      Pledged Shares"
      means
      the Shares of each Issuer beneficially owned by the Grantor on the date hereof
      and identified in Annex 3 (Part A).

     

    "Intellectual
      Property"
      means,
      collectively, all Copyright Collateral, all Patent Collateral and all Trademark
      Collateral, together with (a) all inventions, processes, production
      methods, proprietary information, know how and trade secrets; (b) all
      licenses or user or other agreements granted to the Grantor with respect to
      any
      of the foregoing, in each case whether now or hereafter owned or used;
      (c) all information, customer lists, identification of suppliers, data,
      plans, blueprints, specifications, designs, drawings, recorded knowledge,
      surveys, engineering reports, test reports, manuals, materials standards,
      processing standards, performance standards, catalogs, computer and automatic
      machinery software and programs; (d) all field repair data, sales data and
      other information relating to sales or service of products now or hereafter
      manufactured; (e) all accounting information and all media in which or on
      which any information or knowledge or data or records may be recorded or stored
      and all computer programs used for the compilation or printout of such
      information, knowledge, records or data; (f) all licenses, consents,
      permits, variances, certifications and approvals of governmental agencies now
      or
      hereafter held by the Grantor; and (g) all causes of action, claims and
      warranties now or hereafter owned or acquired by the Grantor in respect of
      any
      of the items listed above.

     

    "Issuers"
      means,
      collectively, (a) the respective Persons identified on Annex 3 (Part
      A) under the caption "Issuer",
      (b) any other Person that shall at any time be a subsidiary of the Grantor,
      and (c) the issuer of any equity securities hereafter owned by the
      Grantor.

     

    "Motor
      Vehicles"
      means
      motor vehicles, tractors, trailers and other like property, if the title thereto
      is governed by a certificate of title or ownership.

     

    "NYUCC"
      means
      the Uniform Commercial Code as in effect from time to time in the State of
      New York.

     

    "Patent
      Collateral"
      means
      all Patents of the Grantor, whether now owned or hereafter acquired by the
      Grantor, including each Patent identified in Annex 5, and all income,
      royalties, damages and payments now or hereafter due and/or payable under or
      with respect thereto.

     

    "Patents"
      means
      all patents and patent applications, including the inventions and improvements
      described and claimed therein together with the reissues, divisions,
      continuations, renewals, extensions and continuations in part thereof, all
      income, royalties, damages and payments now or hereafter due and/or payable
      with
      respect thereto, all damages and payments for past or future infringements
      thereof and rights to sue therefor, and all rights corresponding thereto
      throughout the world.

     

                  
      "Person"
      means
      any individual, corporation, company, voluntary association, partnership,
      limited liability company, joint venture, trust, unincorporated organization
      or
      government (or any agency, instrumentality or political subdivision
      thereof).

    
      
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    "Pledged
      Shares"
      means,
      collectively, (i) the Initial Pledged Shares and (ii) all other Shares
      of any Issuer now or hereafter owned by the Grantor, together in each case
      with
      (a) all certificates representing the same, (b) all shares,
      securities, moneys or other property representing a dividend on or a
      distribution or return of capital on or in respect of the Pledged Shares, or
      resulting from a split-up, revision, reclassification or other like change
      of
      the Pledged Shares or otherwise received in exchange therefor, and any warrants,
      rights or options issued to the holders of, or otherwise in respect of, the
      Pledged Shares, and (c) without prejudice to any provision of any of the
      Credit Documents prohibiting any merger or consolidation by an Issuer, all
      Shares of any successor entity of any such merger or consolidation.

     

    "Secured
      Obligations"
      means,
      collectively, the obligations of the Grantor to the Secured Party in respect
      of
      the principal of and interest on any loan or other extension of credit made
      by
      the Secured Party to, and each promissory note (if any) constituting part of
      or
      delivered by the Grantor to the Secured Party under, the Credit Documents,
      and
      all other amounts from time to time owing to the Secured Party by the Borrower
      under the Credit Documents or in respect of any Financial Accommodation from
      time to time made available by the Secured Party to the Grantor, together with
      in each case interest thereon and expenses related thereto, including any
      interest or expenses accruing or arising after the commencement of any case
      with
      respect to the Grantor under the United States Bankruptcy Code or any other
      bankruptcy or insolvency law (whether or not such interest or expenses are
      allowed or allowable as a claim in whole or in part in such case).

     

    "Shares"
      means
      shares of capital stock of a corporation, limited liability company interests,
      partnership interests and other ownership or equity interests of any class
      in
      any Person.

     

    "Trademark
      Collateral"
      means
      all Trademarks of the Grantor, whether now owned or hereafter acquired by the
      Grantor, including each Trademark identified in Annex 6, together, in each
      case, with the product lines and goodwill of the business connected with the
      use
      of, and symbolized by, each such trade name, trademark and service mark.
      Notwithstanding the foregoing, the Trademark Collateral does not and shall
      not
      include any Trademark that would be rendered invalid, abandoned, void or
      unenforceable by reason of its being included as part of the Trademark
      Collateral.

     

    "Trademarks"
      means
      all trade names, trademarks and service marks, logos, trademark and service
      mark
      registrations, and applications for trademark and service mark registrations,
      including all renewals of trademark and service mark registrations, all rights
      to recover for all past, present and future infringements thereof and all rights
      to sue therefor, and all rights corresponding thereto throughout the
      world.

     

    Section
      2. Representations
      and Warranties.
      The
      Grantor represents and warrants to the Secured Party that:

     

    2.01 Organizational
      Matters; Enforceability, Etc. The
      Grantor is duly organized, validly existing and in good standing under the
      laws
      of the jurisdiction of its organization. The execution, delivery and performance
      of this Agreement, and the grant of the 

     

    
      
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    security
      interests pursuant hereto, (a) are within the Grantor's powers and have
      been duly authorized by all necessary corporate or other action, (b) do not
      require any consent or approval of, registration or filing with, or any other
      action by, any governmental authority or court, except for (i) such as have
      been obtained or made and are in full force and effect and (ii) filings and
      recordings in respect of the security interests created pursuant hereto,
      (c) will not violate any applicable law or regulation or the charter, by
      laws or other organizational documents of the Grantor or any order of any
      governmental authority or court binding upon the Grantor or its property,
      (d) will not violate or result in a default under any indenture, agreement
      or other instrument binding upon the Grantor or any of its assets, or give
      rise
      to a right thereunder to require any payment to be made by any such person,
      and
      (e) except for the security interests created pursuant hereto, will not
      result in the creation or imposition of any lien, charge or encumbrance on
      any
      asset of the Grantor.

     

    This
      Agreement has been duly executed and delivered by the Grantor and constitutes,
      a
      legal, valid and binding obligation of the Grantor, enforceable against the
      Grantor in accordance with its terms, except as such enforceability may be
      limited by (a) bankruptcy, insolvency, reorganization, moratorium or
      similar laws of general applicability affecting the enforcement of creditors'
      rights and (b) the application of general principles of equity (regardless
      of whether such enforceability is considered in a proceeding in equity or at
      law).

     

    The
      Grantor is not (a) an "investment company" as defined in, or subject to
      regulation under, the Investment Company Act of 1940 or (b) a "holding
      company" as defined in, or subject to regulation under, the Public Utility
      Holding Company Act of 1935.

     

    2.02 Title.
      The Grantor is the sole beneficial owner of the Collateral and no lien exists
      upon the Collateral (and no right or option to acquire the same exists in favor
      of any other Person) other than (a) the security interest created or
      provided for herein, which security interest constitutes a valid first and
      prior
      perfected lien on the Collateral, and (b) the liens (if any) expressly
      permitted by the Credit Documents.

     

    2.03 Names,
      Etc.The
      full
      and correct legal name, type of organization, jurisdiction of organization,
      organizational ID number (if applicable) and mailing address of the Grantor
      as
      of the date hereof are correctly set forth in Annex 1. 

     

    2.04 Changes
      in Circumstances.
      The
      Grantor has not (a) within the period of four months prior to the date
      hereof, changed its location (as defined in Section 9 307 of the NYUCC),
      (b) except as specified in Annex 1, heretofore changed its name, or
      (c) except as specified in Annex 2, heretofore become a "new debtor"
      (as defined in Section 9 102(a)(56) of the NYUCC) with respect to a
      currently effective security agreement previously entered into by any other
      Person.

     

    2.05 Pledged
      Shares.
      The
      Initial Pledged Shares constitute (a) 100% of the issued and outstanding Shares
      of each Issuer beneficially owned by the Grantor on the date hereof (other
      than
      any Shares held in a Securities Account referred to in Annex 7), whether or
      not registered in the name of the Grantor. Annex 3 (Part A) correctly
      identifies, as at the date hereof, the respective Issuers of the Initial Pledged
      Shares and (in the case of any corporate Issuer) the 

     

    
      
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    respective
      class and par value of such Shares and the respective number of such Shares
      (and
      registered owner thereof) represented by each such certificate. The Initial
      Pledged Shares are, and all other Pledged Shares in which the Grantor shall
      hereafter grant a security interest pursuant to Section 3 will be,
      (i) duly authorized, validly existing, fully paid and non assessable (in
      the case of any Shares issued by a corporation) and (ii) duly issued and
      outstanding (in the case of any equity interest in any other entity), and none
      of such Pledged Shares are or will be subject to any contractual restriction,
      or
      any restriction under the charter, by laws, partnership agreement or other
      organizational instrument of the respective Issuer thereof, upon the transfer
      of
      such Pledged Shares (except for any such restriction contained herein or in
      the
      Credit Documents, or under such organizational instruments).

     

    2.06 Promissory
      Notes.
      Annex 3
      (Part B) sets forth a complete and correct list of all Promissory Notes (other
      than any held in a Securities Account referred to in Annex 7) held by the
      Grantor on the date hereof.

     

    2.07 Intellectual
      Property.
      Annexes
      4, 5 and 6, respectively, set forth a complete and correct list of all copyright
      registrations, patents, patent applications, trademark registrations and
      trademark applications owned by the Grantor on the date hereof (or, in the
      case
      of any supplement to said Annexes 4, 5 and 6, effecting a pledge thereof, as
      of
      the date of such supplement).

     

    Except
      pursuant to licenses and other user agreements entered into by the Grantor
      in
      the ordinary course of business that are listed in said Annexes 4, 5 and 6
      (including as supplemented by any supplement effecting a pledge thereof), the
      Grantor has done nothing to authorize or enable any other Person to use any
      Copyright, Patent or Trademark listed in said Annexes 4, 5 and 6 (as so
      supplemented), and all registrations listed in said Annexes 4, 5 and 6 (as
      so
      supplemented) are, except as noted therein, in full force and
      effect.

     

    To
      the
      Grantor's knowledge, (i) except as set forth in said Annexes 4, 5 and 6 (as
      supplemented by any supplement effecting a pledge thereof), there is no
      violation by others of any
      right
      of the Grantor with respect to any Copyright, Patent or Trademark listed in
      said
      Annexes 4, 5 and 6 (as so supplemented), respectively, and (ii) the Grantor
      is not infringing in any respect upon any Copyright, Patent or Trademark of
      any
      other Person; and no proceedings alleging such infringement have been instituted
      or are pending against the Grantor and no written claim against the Grantor
      has
      been received by the Grantor, alleging any such violation, except as may be
      set
      forth in said Annexes 4, 5 and 6 (as so supplemented).

     

    The
      Grantor does not own any Trademarks registered in the United States of America
      to which the last sentence of the definition of Trademark Collateral
      applies.

     

    2.08 Deposit
      Accounts and Securities Accounts.
      Annex 7
      sets forth a complete and correct list of all Deposit Accounts, Securities
      Accounts and Commodity Accounts of the Grantor on the date hereof.

     

    2.09 Commercial
      Tort Claims.
      Annex 8 sets forth a complete and correct list of all commercial tort
      claims of the Grantor in existence on the date hereof.

     

    
      
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    2.10 Fair
      Labor Standards Act.
      Any
      goods now or hereafter produced by the Grantor or any of its subsidiaries
      included in the Collateral have been and will be produced in compliance with
      the
      requirements of the Fair Labor Standards Act, as amended.

     

    Section
      3. Collateral.
      As
      collateral security for the payment in full when due (whether at stated
      maturity, by acceleration or otherwise) of the Secured Obligations, the Grantor
      hereby pledges and grants to the Secured Party as hereinafter provided a
      security interest in all of the Grantor's right, title and interest in, to
      and
      under the following property, in each case whether tangible or intangible,
      wherever located, and whether now owned by the Grantor or hereafter acquired
      and
      whether now existing or hereafter coming into existence (all of the property
      described in this Section 3 being collectively referred to herein as
      "Collateral"):

     

    (a) all
      Accounts:

     

    (b) all
      As-Extracted Collateral;

     

    (c) all
      Chattel Paper;

     

    (d) all
      Deposit Accounts;

     

    (e) all
      Documents;

     

    (f) all
      Equipment;

    (g) all
      Fixtures;

     

    (h) all
      General Intangibles;

     

    (i) all
      Goods
      not covered by the other clauses of this Section 3;

     

    (j) the
      Pledged Shares;

     

    (k) all
      Instruments, including all Promissory Notes;

     

    (l) all
      Intellectual Property;

     

    (m) all
      Inventory;

     

    (n) all
      Investment Property not covered by other clauses of this Section 3,
      including all Securities, all Securities Accounts and all Security Entitlements
      with respect thereto and Financial Assets carried therein, and all Commodity
      Accounts and Commodity Contracts;

     

    (o) all
      Letter-of-Credit Rights;

     

    (p) all
      commercial tort claims, as defined in Section 9-102(a)(13) of the NYUCC,
      arising out of the events described in Annex 8;

    
      
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    (q) all
      other
      tangible and intangible personal property whatsoever of the Grantor;
      and

     

    (r) all
      Proceeds of any of the Collateral, all Accessions to and substitutions and
      replacements for, any of the Collateral, and all offspring, rents, profits
      and
      products of any of the Collateral, and, to the extent related to any Collateral,
      all books, correspondence, credit files, records, invoices and other papers
      (including all tapes, cards, computer runs and other papers and documents in
      the
      possession or under the control of the Grantor or any computer bureau or service
      company from time to time acting for the Grantor),

     

    IT
      BEING
      UNDERSTOOD, HOWEVER, that (A) in the case of any of the foregoing that
      consists of general or limited partnership interests in a general or limited
      partnership, the security interest hereunder shall be deemed to be created
      only
      to the maximum extent permitted under the applicable organizational instrument
      pursuant to which such partnership is formed, (B) in no event shall the
      security interest granted under this Section 3 attach to any lease,
      license, contract, property rights or agreement to which the Grantor is a party
      (or to any of its rights or interests thereunder) if the grant of such security
      interest would constitute or result in either (i) the abandonment,
      invalidation or unenforceability of any right, title or interest of the Grantor
      therein or (ii) in a breach or termination pursuant to the terms of, or a
      default under, any such lease, license, contract, property rights or agreement
      (other than to the extent that any such term would be rendered ineffective
      by
      Section 9-406, 9-407, 9-408 or 9-409 of the Uniform Commercial Code as
      in effect in the relevant jurisdiction, and (C) the security interest
      created hereby in Shares constituting voting stock of any Issuer that is a
      Foreign Subsidiary shall be limited to that portion
      of such voting stock that does not exceed 65% of the aggregate issued and
      outstanding voting stock of such Issuer.

     

    Section
      4. Cash
      Proceeds of Collateral.
      

     

    4.01 Collateral
      Account.
      The
      Secured Party will cause to be established at a banking institution to be
      selected by the Secured Party a cash collateral account (the "Collateral
      Account"),
      that

     

    (i) to
      the
      extent of all Investment Property or Financial Assets (other than cash) credited
      thereto shall be a Securities Account in respect of which the Secured Party
      shall be the Entitlement Holder, and

     

    (ii) to
      the
      extent of any cash credited thereto shall be a Deposit Account in respect of
      which the Secured Party shall be the depositary bank's customer,
      and

     

    into
      which the Grantor agrees to deposit from time to time the cash proceeds of
      any
      of the Collateral (including proceeds of insurance thereon) required to be
      delivered to the Secured Party pursuant to any of the Credit Documents, or
      pursuant hereto, and into which the Grantor may from time to time deposit any
      additional amounts that it wishes to provide as additional collateral security
      hereunder. The Collateral Account, and any money or other property from time
      to
      time 

     

    
      
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    therein,
      shall constitute part of the Collateral hereunder and shall not constitute
      payment of the Secured Obligations until applied as hereinafter
      provided.

     

    4.02 Proceeds
      of Casualty Events.
      Without
      limiting the generality of the provisions of the foregoing Section 4.01,
      promptly following the occurrence of any Casualty Event affecting the property
      of Grantor (whether or not such property is Collateral under this Agreement)
      resulting in a loss in excess of $10,000, the Grantor shall give prompt notice
      thereof to the Secured Party and shall cause the proceeds of insurance,
      condemnation award or other compensation received as a result of such Casualty
      Event to be paid to the Secured Party, for deposit into the Collateral Account,
      as additional collateral security for the payment of the Secured Obligations.
      To
      the extent the Secured Party shall receive proceeds of any such Casualty Event
      resulting in a loss of $10,000 or less, the Secured Party will, so long as
      no
      Default shall have occurred and be continuing, promptly remit such proceeds
      to
      the Grantor.

     

    4.03 Withdrawals.
      The
      balance from time to time in the Collateral Account shall be subject to
      withdrawal only as provided in this Section 4.03 and Section 4.04
      below. The Secured Party shall (except as otherwise provided in the last
      sentence of this Section 4.03) remit the collected balance standing to the
      credit of the Collateral Account to or upon the order of the Grantor as the
      Grantor
      shall from time to time instruct, provided
      that
      (A) deposits in the Collateral Account that constitute any proceeds of
      insurance, condemnation award or other compensation in respect of any Casualty
      Event affecting any property of Grantor shall be subject to withdrawal only
      as
      provided in Section 4.04 below and (B) at any time following the
      occurrence and during the continuance of a Default, the Secured Party may in
      its
      discretion apply or cause to be applied (subject to collection) the balance
      from
      time to time standing to the credit of the Collateral Account (regardless of
      the
      origin thereof) to the prepayment of the principal of the Secured Obligations
      (and/or to provide cover for Contingent Secured Obligations).

     

    4.04 Restoration
      or Replacement of Property.
      With
      respect to any proceeds that are required to be paid into the Collateral Account
      pursuant to Section 4.02 above, the Grantor may, at its option, to be
      exercised by delivery of notice to the Secured Party within 60 days of the
      receipt of such proceeds, elect to apply any proceeds of insurance, condemnation
      award or other compensation received as a result of such Casualty Event either
      (A) to the rebuilding or replacement of the property affected by such
      Casualty Event (the "Damaged
      Property")
      or
      (B) to the prepayment of such of the Secured Obligations as shall be
      selected by it.

     

    If
      the
      Grantor elects to rebuild or replace the Damaged Property, any such proceeds
      (and any earnings thereon) held in the Collateral Account shall be applied
      by
      the Grantor to the rebuilding and replacement of the Damaged Property and such
      proceeds shall be advanced to the Grantor by the Secured Party in periodic
      installments upon compliance by the Grantor with such reasonable conditions
      to
      disbursement as may be imposed by the Secured Party, including, but not limited
      to, reasonable retention amounts and receipt of lien releases.

     

    Following
      the occurrence and the continuation of any Default, the Secured Party shall
      have
      no obligation to release any of such proceeds to the Grantor for rebuilding
      or
      replacement of Damaged Property. All insurance proceeds remaining after the
      payment for rebuilding and replacement of Damaged Property pursuant to this
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    of
      the
      Secured Party, be applied to the prepayment of the principal of the Secured
      Obligations s (and/or to provide cover for Contingent Secured
      Obligations).

     

    4.05 Investment
      of Balance in Collateral Account.
      The
      cash balance standing to the credit of the Collateral Account shall be invested
      from time to time in such short-term U.S. government (or U.S.
      government-guaranteed) obligations as the Secured Party shall determine, which
      investments shall be held in the name and be under the control of the Secured
      Party (and credited to the Collateral Account), provided
      that at
      any time after the occurrence and during the continuance of a Default, the
      Secured Party may in its discretion at any time and from time to time elect
      to
      liquidate any such investments and to apply or cause to be applied the proceeds
      thereof to the payment of the Secured Obligations then due and payable in the
      manner specified in Section 5.09.

    Section
      5. Further
      Assurances; Remedies.
      In
      furtherance of the grant of the security interest pursuant to Section 3,
      the Grantor hereby agrees with the Secured Party as follows:

     

    5.01 Delivery
      and Other Perfection.
      The
      Grantor shall promptly from time to time give, execute, deliver, file, record,
      authorize or obtain all such financing statements, continuation statements,
      notices, instruments, documents, agreements or consents or other papers as
      may
      be necessary or desirable in the judgment of the Secured Party to create,
      preserve, perfect, maintain the perfection of or validate the security interest
      granted pursuant hereto or to enable the Secured Party to exercise and enforce
      its rights hereunder with respect to such security interest, and without
      limiting the foregoing, shall:

     

    (a) if
      any of
      the Pledged Shares, Investment Property or Financial Assets constituting part
      of
      the Collateral are received by the Grantor, forthwith (x) deliver to the
      Secured Party the certificates or instruments representing or evidencing the
      same, duly endorsed in blank or accompanied by such instruments of assignment
      and transfer in such form and substance as the Secured Party may reasonably
      request, all of which thereafter shall be held by the Secured Party, pursuant
      to
      the terms of this Agreement, as part of the Collateral and (y) take such
      other action as the Secured Party may reasonably deem necessary or appropriate
      to duly record or otherwise perfect the security interest created hereunder
      in
      such Collateral;

     

    (b) promptly
      from time to time deliver to the Secured Party any and all Instruments
      constituting part of the Collateral, endorsed and/or accompanied by such
      instruments of assignment and transfer in such form and substance as the Secured
      Party may request; provided
      that
      (other than in the case of the promissory notes described in Annex 3 (Part
      B))
      so long as no Default shall have occurred and be continuing, the Grantor may
      retain for collection in the ordinary course any Instruments received by the
      Grantor in the ordinary course of business and the Secured Party shall, promptly
      upon request of the Grantor, make appropriate arrangements for making any
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    or
      renewal (any such arrangement to be effected, to the extent requested by the
      Secured Party, against trust receipt or like document);

     

    (c) promptly
      from time to time enter into such control agreements, each in form and substance
      reasonably acceptable to the Secured Party, as may be required to perfect the
      security interest created hereby in any and all Deposit Accounts, Investment
      Property, Electronic Chattel Paper and Letter-of-Credit Rights, and will
      promptly furnish to the Secured Party true copies thereof;

     

    (d) promptly
      from time to time upon the request of the Secured Party, execute and deliver
      such short-form security agreements as the Secured Party may reasonably
deem
      necessary or desirable to protect the interests of the Secured Party in respect
      of that portion of the Collateral consisting of Intellectual
      Property;

     

    (e) promptly
      upon request of the Secured Party, cause the Secured Party to be listed as
      the
      lienholder on any certificate of title or ownership covering any Motor Vehicle
      (other than Motor Vehicles constituting Inventory) and within 120 days of
      such request deliver evidence of the same to the Secured Party;

     

    (f) keep
      full
      and accurate books and records relating to the Collateral, and stamp or
      otherwise mark such books and records in such manner as the Secured Party may
      reasonably require in order to reflect the security interests granted by this
      Agreement; and

     

    (g) permit
      representatives of the Secured Party, upon reasonable notice, at any time during
      normal business hours to inspect and make abstracts from its books and records
      pertaining to the Collateral, and permit representatives of the Secured Party
      to
      be present at the Grantor's place of business to receive copies of
      communications and remittances relating to the Collateral, and forward copies
      of
      any notices or communications received by the Grantor with respect to the
      Collateral, all in such manner as the Secured Party may require.

     

    5.02 Other
      Financing Statements or Control.
      Except
      as otherwise permitted under the Credit Documents, the Grantor shall not
      (a) file or suffer to be on file, or authorize or permit to be filed or to
      be on file, in any jurisdiction, any financing statement or like instrument
      with
      respect to any of the Collateral in which the Secured Party is not named as
      the
      sole secured party, or (b) cause or permit any Person other than the
      Secured Party to have "control" (as defined in Section 9-104, 9-105, 9-106
      or 9-107 of the NYUCC) of any Deposit Account, Electronic Chattel Paper,
      Investment Property or Letter-of-Credit Right constituting part of the
      Collateral.

     

    5.03 Preservation
      of Rights.
      The
      Secured Party shall not be required to take steps necessary to preserve any
      rights against prior parties to any of the Collateral.

     

    5.04 Special
      Provisions Relating to Certain Collateral.
      

     

    (a) Pledged
      Shares.

     

    
      
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    (i) The
      Grantor will cause the Pledged Shares to constitute at all times (1) 100% of
      the
      total number of Shares of each Issuer other than a Foreign Subsidiary then
      outstanding owned by the Grantor and (2) in the case of any Issuer that is
      a Foreign Subsidiary, 65% of the total number of shares of voting stock of
      such
      Issuer and 100% of the total number of shares of all other classes of capital
      stock of such Issuer then issued and
      outstanding owned by the Grantor.

     

    (ii) So
      long
      as no Default shall have occurred and be continuing, the Grantor shall have
      the
      right to exercise all voting, consensual and other powers of ownership
      pertaining to the Pledged Shares for all purposes not inconsistent with the
      terms of this Agreement, the Credit Documents or any other instrument or
      agreement referred to herein or therein, provided
      that the
      Grantor agrees that it will not vote the Pledged Shares in any manner that
      is
      inconsistent with the terms of this Agreement, the Credit Documents or any
      such
      other instrument or agreement; and the Secured Party shall execute and deliver
      to the Grantor or cause to be executed and delivered to the Grantor all such
      proxies, powers of attorney, dividend and other orders, and all such
      instruments, without recourse, as the Grantor may reasonably request for the
      purpose of enabling the Grantor to exercise the rights and powers that it is
      entitled to exercise pursuant to this Section 5.04(a)(ii).

     

    (iii) Unless
      and until a Default shall have occurred and be continuing, the Grantor shall
      be
      entitled to receive and retain any dividends, distributions or proceeds on
      the
      Pledged Shares paid in cash out of earned surplus.

     

    (iv) If
      a
      Default shall have occurred and be continuing, whether or not the Secured Party
      exercises any available right to declare any Secured Obligations due and payable
      or seeks or pursues any other relief or remedy available to it under applicable
      law or under this Agreement, the Credit Documents or any other agreement
      relating to such Secured Obligation, all dividends and other distributions
      on
      the Pledged Shares shall be paid directly to the Secured Party and retained
      by
      it in the Collateral Account as part of the Collateral, subject to the terms
      of
      this Agreement, and, if the Secured Party shall so request in writing, the
      Grantor agrees to execute and deliver to the Secured Party appropriate
      additional dividend, distribution and other orders and documents to that end,
      provided
      that if
      such Default is cured, any such dividend or distribution theretofore paid to
      the
      Secured Party shall, upon request of the Grantor (except to the extent
      theretofore applied to the Secured Obligations), be returned by the Secured
      Party to the Grantor.

     

    (b) Intellectual
      Property.

     

    (i) For
      the
      purpose of enabling the Secured Party to exercise rights and remedies under
      Section 5.05 at such time as the Secured Party shall be lawfully entitled
      to exercise such rights and remedies, and for no other purpose, the Grantor
      hereby grants to the Secured Party, to the extent assignable, an irrevocable,
      non exclusive license (exercisable without payment of royalty or other
      compensation to the Grantor) to use, assign, license or sublicense any of the
      Intellectual Property now owned or hereafter acquired by the Grantor, wherever
      the same may be located, including in such license reasonable access to all
      media in which any of the licensed items may be recorded 

     

    
      
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        13

      

                    
        or stored and to all computer programs used for the
        compilation or printout thereof.

       

    

    (ii) Notwithstanding
      anything contained herein to the contrary, but subject to any provision of
      the
      Credit Documents that limit the rights of the Grantor to dispose of its
      property, so long as no Default shall have occurred and be continuing, the
      Grantor will be permitted
      to exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose
      of
      or take other actions with respect to the Intellectual Property in the ordinary
      course of the business of the Grantor. In furtherance of the foregoing, so
      long
      as no Default shall have occurred and be continuing, the Secured Party shall
      from time to time, upon the request of the Grantor, execute and deliver any
      instruments, certificates or other documents, in the form so requested, that
      the
      Grantor shall have certified are appropriate in its judgment to allow it to
      take
      any action permitted above (including relinquishment of the license provided
      pursuant to clause (i) immediately above as to any specific Intellectual
      Property). Further, upon the payment in full of all of the Secured Obligations
      and the expiration and termination of all obligations of the Secured Party
      to
      make available any Financial Accommodation to the Grantor, or earlier expiration
      of this Agreement or release of the Collateral, the Secured Party shall grant
      back to the Grantor the license granted pursuant to clause (i) immediately
      above. The exercise of rights and remedies under Section 5.05 by the
      Secured Party shall not terminate the rights of the holders of any licenses
      or
      sublicenses theretofore granted by the Grantor in accordance with the first
      sentence of this clause (ii).

     

    (c) Chattel
      Paper.
      The
      Grantor will (i) deliver to the Secured Party each original of each item of
      Chattel Paper at any time constituting part of the Collateral, and
      (ii) cause each such original and each copy thereof to bear a conspicuous
      legend, in form and substance reasonably satisfactory to the Secured Party,
      indicating that such Chattel Paper is subject to the security interest granted
      hereby and that purchase of such Chattel Paper by a Person other than the
      Secured Party without the consent of the Secured Party would violate the rights
      of the Secured Party.

     

    5.05 Remedies.
      

     

    (a) Rights
      and Remedies Generally upon Default.
      If a
      Default shall have occurred and is continuing, the Secured Party shall have
      all
      of the rights and remedies with respect to the Collateral of a secured party
      under the NYUCC (whether or not the Uniform Commercial Code is in effect in
      the jurisdiction where the rights and remedies are asserted) and such additional
      rights and remedies to which a secured party is entitled under the laws in
      effect in any jurisdiction where any rights and remedies hereunder may be
      asserted, including the right, to the fullest extent permitted by law, to
      exercise all voting, consensual and other powers of ownership pertaining to
      the
      Collateral as if the Secured Party were the sole and absolute owner thereof
      (and
      the Grantor agrees to take all such action as may be appropriate to give effect
      to such right); and without limiting the foregoing:

     

    (i) the
      Secured Party in its discretion may, in its name or in the name of the Grantor
      or otherwise, demand, sue for, collect or receive any money or other property
      at
      any time payable or receivable on account of or in exchange for any of the
      Collateral, but 

     

    
      
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        14

      

    

    shall
      be
      under no obligation to do so;

     

    (ii) the
      Secured Party may make any reasonable compromise or settlement deemed
      desirable with respect to any of the Collateral and may extend the time of
      payment, arrange for payment in installments, or otherwise modify the terms
      of,
      any of the Collateral;

     

    (iii) the
      Secured Party may require the Grantor to notify (and the Grantor hereby
      authorizes the Secured Party so to notify) each account debtor in respect of
      any
      Account, Chattel Paper or General Intangible, and each obligor on any
      Instrument, constituting part of the Collateral that such Collateral has been
      assigned to the Secured Party hereunder, and to instruct that any payments
      due
      or to become due in respect of such Collateral shall be made directly to the
      Secured Party or as it may direct (and if any such payments, or any other
      Proceeds of Collateral, are received by the Grantor they shall be held in trust
      by the Grantor for the benefit of the Secured Party and as promptly as possible
      remitted or delivered to the Secured Party for application as provided
      herein);

     

    (iv) the
      Secured Party may require the Grantor to assemble the Collateral at such place
      or places, reasonably convenient to the Secured Party and the Grantor, as the
      Secured Party may direct;

     

    (v) the
      Secured Party may apply the Collateral Account and any money or other property
      therein to payment of the Secured Obligations;

     

    (vi) the
      Secured Party may require the Grantor to cause the Pledged Shares to be
      transferred of record into the name of the Secured Party or its nominee (and
      the
      Secured Party agrees that if any of such Pledged Shares is transferred into
      its
      name or the name of its nominee, the Secured Party will thereafter promptly
      give
      to the Grantor copies of any notices and communications received by it with
      respect to such Pledged Shares); and

     

    (vii) the
      Secured Party may sell, lease, assign or otherwise dispose of all or any part
      of
      the Collateral, at such place or places as the Secured Party deems best, and
      for
      cash or for credit or for future delivery (without thereby assuming any credit
      risk), at public or private sale, without demand of performance or notice of
      intention to effect any such disposition or of the time or place thereof (except
      such notice as is required by applicable statute and cannot be waived), and
      the
      Secured Party or anyone else may be the purchaser, lessee, assignee or recipient
      of any or all of the Collateral so disposed of at any public sale (or, to the
      extent permitted by law, at any private sale) and thereafter hold the same
      absolutely, free from any claim or right of whatsoever kind, including any
      right
      or equity of redemption (statutory or otherwise), of the Grantor, any such
      demand, notice and right or equity being hereby expressly waived and released.
      In the event of any sale, assignment, or other disposition of any of the
      Trademark Collateral, the goodwill connected with and symbolized by the
      Trademark Collateral subject to such disposition shall be included. The Secured
      Party may, without notice or publication, adjourn any public or private sale
      or
      cause the same to be adjourned from time to time by 

    
      
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15

     

          announcement
      at the time and
      place fixed for the sale, and such sale may be made at any time or place to
      which the sale may be so adjourned.

    The
      Proceeds of each collection, sale or other disposition under this
      Section 5.05, including by virtue of the exercise of any license granted to
      the Secured Party in Section 5.04(b), shall be applied in accordance with
      Section 5.09.

     

    (b) Certain
      Securities Act Limitations.
      The
      Grantor recognizes that, by reason of certain prohibitions contained in the
      Securities Act of 1933, as amended, and applicable state securities laws, the
      Secured Party may be compelled, with respect to any sale of all or any part
      of
      the Collateral, to limit purchasers to those who will agree, among other things,
      to acquire the Collateral for their own account, for investment and not with
      a
      view to the distribution or resale thereof. The Grantor acknowledges that any
      such private sales may be at prices and on terms less favorable to the Secured
      Party than those obtainable through a public sale without such restrictions,
      and, notwithstanding such circumstances, agrees that any such private sale
      shall
      be deemed to have been made in a commercially reasonable manner and that the
      Secured Party shall have no obligation to engage in public sales and no
      obligation to delay the sale of any Collateral for the period of time necessary
      to permit the issuer thereof to register it for public sale.

     

    (c) Notice.
      The
      Grantor agrees that to the extent the Secured Party is required by applicable
      law to give reasonable prior notice of any sale or other disposition of any
      Collateral, ten business days' notice shall be deemed to constitute reasonable
      prior notice.

     

    5.06 Deficiency.
      If the
      proceeds of sale, collection or other realization of or upon the Collateral
      pursuant to Section 5.05 are insufficient to cover the costs and expenses
      of such realization and the payment in full of the Secured Obligations, the
      Grantor shall remain liable for any deficiency.

     

    5.07 Locations;
      Names, Etc.Without
      at least 30 days' prior written notice to the Secured Party, the Grantor
      shall not (i) change its location (as defined in Section 9-307 of the
      NYUCC), (ii) change its name from the name shown as its current legal name
      on Annex 1, or (iii) agree to or authorize any modification of the
      terms of any item of Collateral that would result in a change thereof from
      one
      Uniform Commercial Code category to another such category (such as from a
      General Intangible to Investment Property), if the effect thereof would be
      to
      result in a loss of perfection of, or diminution of priority for, the security
      interests created hereunder in such item of Collateral, or the loss of control
      (within the meaning of Section 9-104, 9-105, 9-106 or 9-107 of the NYUCC)
      over such item of Collateral.

     

    5.08 Private
      Sale.
      The
      Secured Party shall incur no liability as a result of the sale of the
      Collateral, or any part thereof, at any private sale pursuant to
      Section 5.05 conducted in a commercially reasonable manner. The Grantor
      hereby waives any claims against the Secured Party arising by reason of the
      fact
      that the price at which the Collateral may have been sold at such a private
      sale
      was less than the price that might have been obtained at a public sale or was
      less than the aggregate
      amount of the Secured Obligations, even if the Secured Party accepts the first
      offer received and does not offer the Collateral to more than one
      offeree.

    
      
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16

     

    5.09 Application
      of Proceeds.
      Except
      as otherwise herein expressly provided and except as provided below in this
      Section 5.09, the Proceeds of any collection, sale or other realization of
      all or any part of the Collateral pursuant hereto, and any other cash at the
      time held by the Secured Party under Section 4 or this Section 5,
      shall be applied by the Secured Party:

     

    First,
      to the
      payment of the costs and expenses of such collection, sale or other realization,
      including reasonable out of pocket costs and expenses of the Secured Party
      and
      the fees and expenses of its agents and counsel, and all expenses incurred
      and
      advances made by the Secured Party in connection therewith;

     

    Next,
      to the
      payment in full of the Secured Obligations (or, in the case of any Contingent
      Secured Obligations, to the provision of cover as provided below), in such
      order
      as the Secured Party shall in its sole discretion determine; and

     

    Finally,
      to the
      payment to the Grantor, or its successors or assigns, or as a court of competent
      jurisdiction may direct, of any surplus then remaining.

     

    For
      purposes hereof, whenever this Agreement contemplates that cover shall be
      provided for Contingent Secured Obligations, such cover shall be effected by
      the
      payment to the Secured Party of any amount that will be deposited into a
      Collateral Account to be held by the Secured Party as collateral security for
      the payment of such Contingent Secured Obligations as and when they become
      due
      and payable.

     

    5.10 Attorney
      in Fact.
      Without
      limiting any rights or powers granted by this Agreement to the Secured Party
      while no Default has occurred and is continuing, upon the occurrence and during
      the continuance of any Default the Secured Party is hereby appointed the
      attorney in fact of the Grantor for the purpose of carrying out the provisions
      of this Section 5 and taking any action and executing any instruments that
      the Secured Party may deem necessary or advisable to accomplish the purposes
      hereof, which appointment as attorney in fact is irrevocable and coupled with
      an
      interest. Without limiting the generality of the foregoing, so long as the
      Secured Party shall be entitled under this Section 5 to make collections in
      respect of the Collateral, the Secured Party shall have the right and power
      to
      receive, endorse and collect all checks made payable to the order of Grantor
      representing any dividend, payment or other distribution in respect of the
      Collateral or any part thereof and to give full discharge for the
      same.

     

    5.11 Perfection
      and Recordation.
      The
      Grantor authorizes the Secured Party to file Uniform Commercial Code
      financing statements describing the Collateral as "all assets" or "all personal
      property and fixtures"
      of the Grantor (provided that no such description shall be deemed to modify
      the
      description of Collateral set forth in Section 3).

     

              
5.12 Termination.
      When
      all Secured Obligations shall have been paid in full and all obligations of
      the
      Secured Party to make available any Financial Accommodation to the Grantor
      shall
      have expired or terminated, this Agreement shall terminate, and the Secured
      Party shall forthwith cause to be assigned, transferred and delivered, against
      receipt but without any recourse, warranty or representation whatsoever, any
      remaining Collateral and money received in respect thereof, to or on the order
      of the Grantor and to be released and canceled all licenses 

    
      
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        17

      

    

    and
      rights referred to in Section 5.04(b). The Secured Party shall also, at the
      expense of the Grantor, execute and deliver to the Grantor upon such termination
      such Uniform Commercial Code termination statements, certificates for
      terminating the liens on the Motor Vehicles and such other documentation as
      shall be reasonably requested by the Grantor to effect the termination and
      release of the liens on the Collateral as required by this
      Section 5.12.

     

    5.13 Further
      Assurances.
      The
      Grantor agrees that, from time to time upon the written request of the Secured
      Party, the Grantor will execute and deliver such further documents and do such
      other acts and things as the Secured Party may reasonably request in order
      fully
      to effect the purposes of this Agreement. The Secured Party shall release any
      lien covering any asset that has been disposed of in accordance with the
      provisions of the Credit Documents.

     

    Section
      6. Miscellaneous.

     

    6.01 Notices.
      All
      notices, requests, consents and demands hereunder shall be in writing and
      telecopied or delivered to the intended recipient at the "Address for Notices"
      specified in the Credit Agreement or, as to any party, at such other address
      as
      shall be designated by such party in a notice to each other party. Except as
      otherwise provided in this Agreement, all such communications shall be deemed
      to
      have been duly given when transmitted by telecopier or personally delivered
      or,
      in the case of a mailed notice, upon receipt, in each case given or addressed
      as
      aforesaid.

     

    6.02 No
      Waiver.
      No
      failure on the part of Secured Party to exercise, and no course of dealing
      with
      respect to, and no delay in exercising, any right, power or remedy hereunder
      shall operate as a waiver thereof; nor shall any single or partial exercise
      by
      the Secured Party of any right, power or remedy hereunder preclude any other
      or
      further exercise thereof or the exercise of any other right,
      power or remedy. The remedies herein are cumulative and are not exclusive of
      any
      remedies provided by law.

     

    6.03 Amendments,
      Etc. The
      terms
      of this Agreement may be waived, altered or amended only by an instrument in
      writing duly executed by the Grantor and the Secured Party.

     

    6.04 Expenses.
      The
      Grantor agrees to reimburse the Secured Party for all reasonable costs and
      expenses incurred by it (including the reasonable fees and expenses of legal
      counsel) in connection with (i) any Default and any enforcement or
      collection proceeding resulting therefrom, including all manner of participation
      in or other involvement with (w) performance by the Secured Party of any
      obligations of the Grantor in respect of the Collateral that the Grantor has
      failed or refused to perform, (x) bankruptcy, insolvency, receivership,
      foreclosure, winding up or liquidation proceedings, or any actual or attempted
      sale, or any exchange, enforcement, collection, compromise or settlement in
      respect of any of the Collateral, and for the care of the Collateral and
      defending or asserting rights and claims of the Secured Party in respect
      thereof, by litigation or otherwise, including expenses of insurance,
      (y) judicial or regulatory proceedings and (z) workout, restructuring
      or other negotiations or proceedings (whether or not the workout, restructuring
      or transaction contemplated thereby is consummated) and (ii) the
      enforcement of this Section 6.04, and all such costs and expenses shall

     

    
      
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        18
be
        Secured Obligations entitled to the benefits of the collateral security provided
        pursuant to Section 3.

    

     

    6.05 Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the respective
      successors and assigns of the Grantor and the Secured Party (provided
      that the
      Grantor shall not assign or transfer its rights or obligations hereunder without
      the prior written consent of the Secured Party).

     

    6.06 Counterparts.
      This
      Agreement may be executed in any number of counterparts, all of which taken
      together shall constitute one and the same instrument and either of the parties
      hereto may execute this Agreement by signing any such counterpart.

     

    6.07 Governing
      Law; Submission to Jurisdiction; Etc.

     

    (a) Governing
      Law.
      This
      Agreement shall be construed in accordance with and governed by the law of
      the
      State of New York.

     

    (b) Submission
      to Jurisdiction.
      The
      Grantor hereby irrevocably and unconditionally submits, for itself and its
      property, to the nonexclusive jurisdiction of the Supreme
      Court of the State of New York sitting in New York County and of the United
      States District Court of the Southern District of New York, and any appellate
      court from any thereof, in any action or proceeding arising out of or relating
      to this Agreement, or for recognition or enforcement of any judgment, and each
      of the parties hereto hereby irrevocably and unconditionally agrees that all
      claims in respect of any such action or proceeding may be heard and determined
      in such New York State or, to the extent permitted by law, in such Federal
      court. Each of the parties hereto agrees that a final judgment in any such
      action or proceeding shall be conclusive and may be enforced in other
      jurisdictions by suit on the judgment or in any other manner provided by law.
      Nothing in this Agreement shall affect any right that the Secured Party may
      otherwise have to bring any action or proceeding relating to this Agreement
      against the Grantor or its properties in the courts of any
      jurisdiction.

     

    (c) Waiver
      of Venue.
      The
      Grantor hereby irrevocably and unconditionally waives, to the fullest extent
      it
      may legally and effectively do so, any objection which it may now or hereafter
      have to the laying of venue of any suit, action or proceeding arising out of
      or
      relating to this Agreement in any court referred to in paragraph (b) of
      this Section. Each of the parties hereto hereby irrevocably waives, to the
      fullest extent permitted by law, the defense of an inconvenient forum to the
      maintenance of such action or proceeding in any such court.

     

    (d) Service
      of Process.
      Each
      party to this Agreement irrevocably consents to service of process in the manner
      provided for notices in Section 6.01. Nothing in this Agreement will affect
      the right of any party to this Agreement to serve process in any other manner
      permitted by law.

     

    6.08 WAIVER
      OF JURY TRIAL.
      EACH
      PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
      ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
      

     

    
      
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        19
INDIRECTLY
        ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
        HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY
        HERETO
        (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
        HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT,
        IN THE
        EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
        (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
        ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
        CERTIFICATIONS IN THIS SECTION.

    

     

    6.09 Captions.
      The
      captions and section headings appearing herein are included solely for
      convenience of reference and are not intended to affect the interpretation
      of
      any provision of this Agreement.

     

    6.10 Agents
      and Attorneys in Fact.
      The
      Secured Party may employ agents and attorneys in fact in connection herewith
      and
      shall not be responsible for the negligence or misconduct of any such agents
      or
      attorneys in fact selected by it in good faith.

     

    6.11 Severability.
      If any
      provision hereof is invalid and unenforceable in any jurisdiction, then, to
      the
      fullest extent permitted by law, (a) the other provisions hereof shall
      remain in full force and effect in such jurisdiction and shall be liberally
      construed in favor of the Secured Party in order to carry out the intentions
      of
      the parties hereto as nearly as may be possible and (b) the invalidity or
      unenforceability of any provision hereof in any jurisdiction shall not affect
      the validity or enforceability of such provision in any other
      jurisdiction.

    
      
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20

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

     

    Grantor:

    MERIT
      CAPITAL ADVANCE, LLC

    By: LEAF
      Ventures, LLC

    Its
      Managing Member

    

    By: LEAF
      Financial Corporation

    Its
      Managing Member

    

    By:______________________________________
      

    Name:

    Title:

    

    Secured
      Party:

    DEUTSCHE
      BANK AG Cayman Islands Branch

    

    By
      ________________________

    Title:

    

    By
      ________________________

    Title:

    

    

    
      
        Security
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    ANNEX 1

     

    FILING
      DETAILS

     

    [See
      Sections 2.03 and 2.04 and 5.07]

     

    
      	
              Legal
                name:

            	
              Merit
                Capital Advance, LLC

            
	
              Type
                of organization:

            	
              limited
                liability company

            
	
              Jurisdiction
                of organization:

            	
              Delaware

            
	
              Organizational
                ID number (if applicable):

            	
              4251811

            
	
              Mailing
                address:

            	
              110
                S. Poplar Street, Suite 101

              Wilmington,
                Delaware 19801

            

    

    

    

    
      
        Annex
          1 to Security Agreement

      

      
        
        

        
          

        

      

      
        
        

      

    

    ANNEX
      2

     

    NEW
      DEBTOR EVENTS

     

    [See
      Section 2.04]

     

    None.

    
      

      
        
          Annex 2
            to Security
            Agreement

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    ANNEX
      3

     

    PLEDGED
      SHARES AND PROMISSORY NOTES

     

    [See
      definition of "Issuers" in Section 1.02 and Sections 2.05, 3(a), 3(b)
      and 5.01(b)]

     

    None.

    
      

      
        
          Annex 3
            to Security
            Agreement

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    ANNEX
      4

     

    LIST
      OF COPYRIGHTS, COPYRIGHT REGISTRATIONS AND

     

    APPLICATIONS
      FOR COPYRIGHT REGISTRATIONS

     

    [See
      definition of "Copyright Collateral" in Section 1.02 and
      Section 2.06]

     

    None.

    
 

    
      
        
          Annex 4
            to Security
            Agreement

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    ANNEX
      5

     

    LIST
      OF PATENTS AND PATENT APPLICATIONS

     

    [See
      definition of "Patent Collateral" in Section 1.02 and
      Section 2.06]

     

    None.

     

    
      
        
          
            Annex 5
              to Security
              Agreement

          

          
            
            

            
              

            

          

          
            
            

          

        

      

    

    ANNEX
      6

     

    LIST
      OF TRADE NAMES, TRADEMARKS, SERVICES MARKS,

     

    TRADEMARK
      AND SERVICE MARK REGISTRATIONS AND

     

    APPLICATIONS
      FOR TRADEMARK AND SERVICE MARK REGISTRATIONS

     

    [See
      definition of "Trademark Collateral" in Section 1.02 and
      Section 2.06]

     

    None.

    
       

      
        
          
            
              Annex 6
                to Security
                Agreement

            

            
              
              

              
                

              

            

            
              
              

            

             

          

        

      

    

    ANNEX
      7

     

    LIST
      OF DEPOSIT ACCOUNTS, AND SECURITIES ACCOUNTS AND COMMODITY
      ACCOUNTS

     

    [See
      Sections 2.05 and 2.08]

     

    
      	
              Name
                of Account

            	
              Financial
                Institution 

              Where
                Account is held

            	
              Type
                of Account

            
	
              collections
                account

            	
              Commerce
                Bank, N.A.

              1726
                Walnut Street, Philadelphia, PA 19103

            	
              deposit
                account

            
	
              general
                account

            	
              Commerce
                Bank, N.A.

              1726
                Walnut Street, Philadelphia, PA 19103

            	
              deposit
                account

            
	
              funding
                account

            	
              Commerce
                Bank, N.A.

              1726
                Walnut Street, Philadelphia, PA 19103

            	
              deposit
                account

            

    

    
      
         

        
          
            
              
                Annex 7
                  to Security
                  Agreement

              

              
                
                

                
                  

                

              

              
                
                

              

               

              ANNEX
                8

            

          

        

      

    

     

    LIST
      OF COMMERCIAL TORT CLAIMS

     

    [See
      Sections 2.09 and 3(p)]

     

    None.

    
       

      
        
          
            
              Annex 8
                to Security
                Agreement

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

    

    EXHIBIT
      B

    

    [FORM
      OF NOTICE OF BORROWING]

    

                            ___________
      __,
      ____

     

    DEUTSCHE
      BANK AG CAYMAN ISLANDS BRANCH

    as
      Lender
      under the Credit Agreement referred to below

    

    Ladies
      and Gentlemen:

    

    The
      undersigned refers to the Credit Agreement dated as March 15, 2007 (as amended,
      supplemented or otherwise modified, the “Credit
      Agreement”;
      the
      terms defined therein being used herein as therein defined), between Merit
      Capital Advance, LLC (the “Borrower”)
      and
      Deutsche Bank AG Cayman Islands Branch (the “Lender”),
      and
      hereby gives you notice, irrevocably, pursuant to Section 2.02 of the
      Credit Agreement, that the Borrower hereby wishes to borrow an Advance under
      the
      Credit Agreement, and in that connection sets forth below the information
      relating to such Advance:

    

    
      	 	
              (i)

            	
              The
                Business Day of the Advance is _________ __,
                ____.

            

    

    

    
      	 	
              (ii)

            	
              The
                aggregate amount of the Advance is
                $_________.

            

    

    

    
      	 	
              (iii)

            	
              The
                initial Interest Period of the Advance is [one/two/three/six]
                months.

            

    

    

    
      	 	
              (iv)

            	
              The
                Lender shall credit the proceeds of the Advance to [specify
                account].

            

    

    

    (v) The
      Par
      Value of Merchant Advances on the date hereof is $________.1 
      Attach a calculation in reasonable detail of the Par Value of Merchant
      Advances.

    

    
      	 	
              (vi)

            	
              The
                face amount of Financial Investments held by the Borrower on the
                date
                hereof is $________.2 
                Attach a list of Financial Investments held by the Borrower showing
                the
                face amount thereof.

            

    

    

    
      	 	
              (vii)

            	
              The
                sum of (i) the Par Value of Merchant Advances plus
                (ii) a face amount up to $1,000,000 of Financial Investments held
                by the
                Borrower on the date hereof is
                $________.

            

    

     

      
        

      

    

    1.    Attach
      a calculation in reasonable detail of the Par Value of Merchange
      Advances.

    2.    Attach
      is a list of Financial Investments held by the Borrower showing the face amount
      thereof.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    The
      undersigned hereby certifies that the conditions precedent set forth in
      Section 3.02 of the Credit Agreement have been fulfilled as of the date
      hereof and will be fulfilled as of the 

    date
      of
      the Advance3,
      and
      that the representations and warranties of the Borrower set forth in
      Article 4 of the Credit Agreement are true on the date hereof and will be
      true as of the 

    date
      of
      the Advance.

    

    Very
      truly yours,

    

    MERIT
      CAPITAL ADVANCE, LLC

    By: [______]

    Its
      Managing Member

    

    By___________________________

    Name:

    Title:

    

      

      
        3. 
          Attach a calculation in reasonable detail demonstrating staisfaction of
          the
          EBITDA Funding Condition.

         

         

        
          
            Form
              of Notice of BorrowingLLC Agreement w/Merit Capital, dated March 15, 2007

    (Back
      to Main
      Document)

    Execution
      Version

     

     

    LIMITED
      LIABILITY COMPANY AGREEMENT

     

    OF

     

    MERIT
      CAPITAL ADVANCE,
      LLC

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    TABLE
      OF
      CONTENTS

     

    
      	 	
              Page

            
	
              ARTICLE
                I FORMATION OF THE COMPANY

            	
              1

            
	
              Section
                1.1 Formation
                of the Company

            	
              1

            
	
              Section
                1.2 Name

            	
              1

            
	
              Section
                1.3 Business
                of the Company

            	
              1

            
	
              Section
                1.4 Location
                of Principal Place of Business, Registered Office

            	
              2

            
	
              Section
                1.5 Filings,
                Registered Agent

            	
              2

            
	
              Section
                1.6 Term

            	
              3

            
	
              Section
                1.7 Title
                to Company Property

            	
              3

            
	
              Section
                1.8 Payments
                of Individual Obligations

            	
              3

            
	
              Section
                1.9 Limited
                Initial Capacity of Class A Noteholder

            	
              3

            
	 	 
	
              ARTICLE
                II DEFINITIONS

            	
              3

            
	
              Section
                2.1 Definitions

            	
              3

            
	
              Section
                2.2 Rules
                of Construction

            	
              3

            
	 	 
	
              ARTICILE
                III INTERESTS, MEMBERS, CAPITAL CONTRIBUTIONS,  ADDITIONAL
                AGREEMENTS

            	
              3

            
	
              Section
                3.1 Interests

            	
              3

            
	
              Section
                3.2 Class
                A Noteholder, Class A Members and Class B Members

            	
              4

            
	
              Section
                3.3 Capital
                Contributions, Additional Units and Additional Members

            	
              4

            
	
              Section
                3.4 Additional
                Agreements Among Members

            	
              7

            
	
              Section
                3.5 Representations
                and Warranties

            	
              8

            
	
              Section
                3.6 Permitted
                Reorganization

            	
              8

            
	 	 
	
              ARTICLE
                IV ALLOCATION OF NET INCOME AND NET LOSSES

            	
              8

            
	
              Section
                4.1 Allocation
                of Net Income and Net Losses

            	
              8

            
	
              Section
                4.2 Special
                Allocations

            	
              8

            
	
              Section
                4.3 Curative
                Allocations

            	
              10

            
	
              Section
                4.4 Other
                Allocation Rules

            	
              10

            
	
              Section
                4.5 Tax
                Allocations, Code § 704(c)

            	
              11

            
	
              Section
                4.6 Calculation
                of Depreciation, Etc.

            	
              12

            
	 	 
	
              ARTICLE
                V DISTRIBUTIONS, WITHDRAWALS

            	
              12

            
	
              Section
                5.1 Distributions

            	
              12

            
	
              Section
                5.2 Tax
                Distributions

            	
              12

            
	
              Section
                5.3 Amounts
                Withheld

            	
              12

            
	
              Section
                5.4 Making
                of Payments

            	
              13

            
	
              Section
                5.5 Limitation
                on Distributions

            	
              13

            
	 	 
	
              ARTICLE
                VI MANAGEMENT

            	
              13

            
	
              Section
                6.1 Management
                of the Company

            	
              13

            
	
              Section
                6.2 Right
                to Rely on the Managing Member

            	
              15

            
	
              Section
                6.3 Restrictions
                on Authority of the Managing Member

            	
              16

            

    

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    

     

    
      	
              Section
                6.4 Board
                of Directors; Approvals

            	
              16

            
	
              Section
                6.5 Conduct
                of Business by the Company; Other Management Matters

            	
              21

            
	
              Section
                6.6 Compensation
                and Expenses

            	
              24

            
	
              Section
                6.7 Execution
                of other Transaction Documents

            	
              24

            
	
              Section
                6.8 Compliance
                with the LLC Agreement

            	
              24

            
	
              Section
                6.9 Annual
                Budget

            	
              24

            
	
              Section
                6.10 Initial
                Class A Member’s Right of First Refusal

            	
              25

            
	 	 
	
              ARTICLE
                VII ROLE OF NON-MANAGING MEMBERS

            	
              25

            
	
              Section
                7.1 Rights
                of Powers

            	
              25

            
	
              Section
                7.2 Voting
                Rights

            	
              25

            
	
              Section
                7.3 Procedure
                for Consent

            	
              25

            
	
              Section
                7.4 Special
                Rights of the Class A Noteholder and Class A Member

            	
              25

            
	 	 
	
              ARTICLE
                VIII ACCOUNTING BOOKS AND RECORDS

            	
              26

            
	
              Section
                8.1 Accounting;
                Books and Records

            	
              26

            
	
              Section
                8.2 Reports

            	
              27

            
	
              Section
                8.3 Tax
                Matters

            	
              29

            
	 	 
	
              ARTICLE
                IX AMENDMENTS; MEETINGS

            	
              30

            
	
              Section
                9.1 Amendments

            	
              30

            
	
              Section
                9.2 Meetings
                of the Members

            	
              30

            
	
              Section
                9.3 Manner
                of Consent

            	
              31

            
	 	 
	
              ARTICLE
                X TRANSFERS OF INTERSTS

            	
              31

            
	
              Section
                10.1 Restriction
                on Dispositions of Interests

            	
              31

            
	
              Section
                10.2 Prohibited
                Dispositions

            	
              32

            
	
              Section
                10.3 Representation
                on Transfer

            	
              32

            
	 	 
	
              ARTICLE
                XI PURCHASE AND SALE RIGHTS

            	
              32

            
	
              Section
                11.1 Purchase
                Option

            	
              32

            
	 	 
	
              ARTICLE
                XII DISSOLUTION AND WINDING UP

            	
              34

            
	
              Section
                12.1 Liquidating
                Events

            	
              34

            
	
              Section
                12.2 Winding
                Up

            	
              34

            
	
              Section
                12.3 No
                Restoration of Deficit Capital Accounts; Compliance With Timing
                Requirements of Regulations

            	
              35

            
	
              Section
                12.4 Deemed
                Distributions and Recontribution

            	
              35

            
	
              Section
                12.5 Rights
                of Members

            	
              35

            
	
              Section
                12.6 Notice
                of Dissolution

            	
              36

            
	
              Section
                12.7 Character
                of Liquidating Distributions

            	
              36

            
	
              Section
                12.8 The
                Liquidator

            	
              36

            
	
              Section
                12.9 Form
                of Liquidating Distributions

            	
              36

            
	
              Section
                12.10 Liquidation
                Notice

            	
              36

            
	
              Section
                12.11 Allocations
                During Period of Liquidation

            	
              37

            

    

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    
      	
              ARTICLE
                XIII MISCELLANEOUS

            	
              37

            
	
              Section
                13.1 Amendments

            	
              37

            
	
              Section
                13.2 Notices

            	
              37

            
	
              Section
                13.3 No
                Waiver, Cumulative Remedies

            	
              38

            
	
              Section
                13.4 Waiver
                of Jury Trial

            	
              38

            
	
              Section
                13.5 Counterparts

            	
              38

            
	
              Section
                13.6 Survival
                of Representations, Warranties and Indemnities: Entire
                Agreement

            	
              38

            
	
              Section
                13.7 Severability

            	
              38

            
	
              Section
                13.8 Construction

            	
              39

            
	
              Section
                13.9 Determination
                of Capital Accounts

            	
              39

            
	
              Section
                13.10 Governing
                Law

            	
              39

            
	
              Section
                13.11 Waiver
                of Action for Partition

            	
              39

            
	
              Section
                13.12 Consent
                of Jurisdiction

            	
              39

            
	
              Section
                13.13 Third
                Party Beneficiaries

            	
              39

            

    

     

    ANNEX

     

    
      	
              Annex
                A:

            	
              Definitions

            

    

     

    SCHEDULES

     

    
      	
              Schedule
                3.2

            	
              Members,
                Capital Commitments and Capital Accounts

            
	
              Schedule
                6.4(a)

            	
              Initial
                Board of Directors

            

    

     

    EXHIBITS

     

    
      	
              Exhibit
                A:

            	
              Form
                of Membership Interest

            
	
              Exhibit
                B:

            	
              Form
                of LEAF Services Agreement

            
	
              Exhibit
                C:

            	
              Form
                of Member Interest Transfer

            
	
              Exhibit
                D:

            	
              Form
                of Merchant Advance Contract

            
	
              Exhibit
                E:

            	
              Form
                of Participation Agreement

            
	
              Exhibit
                F:

            	
              Form
                of Class A Note

            
	
              Exhibit
                G:

            	
              Underwriting
                Manual

            

    

    

     

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    LIMITED
      LIABILITY COMPANY AGREEMENT

     

    OF

     

    MERIT
      CAPITAL ADVANCE, LLC

     

    LIMITED
      LIABILITY COMPANY AGREEMENT (this "LLC
      Agreement")
      of
      MERIT CAPITAL ADVANCE, LLC (the "Company"),
      dated
      as of March 15, 2007 is entered into by the undersigned members (each, a
      "Member").

     

    ARTICLE
      I

     

    FORMATION
      OF THE COMPANY

     

    Section
      1.1 Formation
      of the Company.
      The
      Company was formed as a limited liability company under the LLC Act by the
      filing of its Certificate of Formation on November 14, 2006 (the "Formation
      Date")
      with
      the Office of the Secretary of State of the State of Delaware.

     

    Section
      1.2 Name.
      The
      name of the Company is "Merit Capital Advance, LLC", and all business of the
      Company shall be conducted in such name or, in the discretion of the Managing
      Member, under any other name; provided,
      however,
      that
      the Managing Member may change the name of the Company only upon executing
      and
      filing an amendment to the Certificate of Formation and delivering notice
      thereof to all the Members and the Class A Noteholder.

     

    Section
      1.3  Business
      of the Company.
      The
      purposes of the Company are limited to (i) issuing (x) the Class A Note, (y)
      the
      Class A Interests issuable upon Conversion of the Class A Note (as provided
      therein), and (z) the Class B Interests, (ii) entering into Merchant Advance
      Contracts with counterparties, (iii) owning, managing, protecting, conserving
      and disposing of the Permitted Assets and (iv) engaging in such other activities
      related to the foregoing as are approved by the Required Directors. The Company,
      and the Managing Member on behalf of the Company, may, subject to Article
      VI,
      enter
      into and perform the Transaction Documents and all documents, agreements,
      certificates and financing statements contemplated thereby, all without further
      act, vote or approval of any Person. The authorization set forth in the
      preceding sentence shall not be deemed a restriction on the power and authority
      of the Managing Member to enter into other agreements or documents on behalf
      of
      the Company in accordance with the terms of this LLC Agreement and the other
      Transaction Documents, and the Managing Member is hereby directed by the Members
      to enter into the Transaction Documents to which the Company is to be a party
      on
      behalf of the Company and to cause the Company to perform its obligations
      thereunder. The Company shall have the power to do any and all acts necessary,
      appropriate, proper, advisable, incidental or convenient to or in furtherance
      of
      the purposes of the Company set forth in this Section 1.3
      and
      shall have, without
      limitation, any and all powers that may be exercised on behalf of the Company
      by
      the Managing Member pursuant to Article
      VI.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Section
      1.4  Location
      of Principal Place of Business; Registered Office.
      The
      principal place of business of the Company shall be at 110 S. Poplar Street,
      Suite 101, Wilmington, Delaware 19801. The registered office of the Company
      in
      the State of Delaware shall be located at 110 S. Poplar Street, Suite 101,
      Wilmington, Delaware 19801, or any successor office designated by the Managing
      Member by filing an amendment to the Company's Certificate of
      Formation.

     

    Section
      1.5  Filings;
      Registered Agent.
      

     

    (a) Filings.
      Lisa D.
      Schumm is hereby designated an "authorized person" within the meaning of the
      LLC
      Act and has executed and filed the Certificate of Formation of the Company
      with
      the Secretary of State of the State of Delaware. After such filing, Lisa D.
      Schumm ceased to be an authorized person, and the Managing Member is designated
      as the Company's "authorized person" within the meaning of the LLC
      Act.

     

    The
      Managing Member shall take any and all other actions necessary to perfect and
      maintain the status of the Company as a limited liability company under the
      laws
      of the State of Delaware, including the preparation, execution and filing of
      amendments to the Certificate of Formation and such other certificates,
      documents and instruments as may be required by law. In addition, the Managing
      Member may, with prior written notice to the Class A Noteholder or the Class
      A
      Members, as the case may be, register or qualify the Company as a limited
      liability company in any jurisdiction in which registration or qualification
      is
      necessary or appropriate because of properties or activities of the Company
      in
      that jurisdiction.

     

    (b) Delivery
      of Certificates, etc. in Connection With Qualification of the
      Company.
      At the
      request of the Managing Member, each Member shall execute, acknowledge, swear
      to
      and deliver all certificates and other instruments conforming with this LLC
      Agreement that are necessary or appropriate to form, qualify, continue and,
      in
      connection with a liquidation of the Company in accordance with Article
      XII,
      terminate the Company as a limited liability company under the laws of the
      State
      of Delaware and to qualify, continue and terminate the Company as a foreign
      limited liability company in all other jurisdictions in which the Company may
      so
      qualify, all to the extent contemplated and required by this LLC
      Agreement.

     

    (c) Registered
      Agent.
      The
      registered agent for service of process on the Company in the State of Delaware
      shall be Andrew M. Lubin, 110 S. Poplar Street, Suite 101, Wilmington, Delaware
      19801, or any successor as appointed by the Managing Member by filing an
      amendment to the Company's Certificate of Formation.

     

    (d) Dissolution.
      Upon
      the dissolution and completion of the winding up and liquidation of the Company,
      the Liquidator, as an authorized person within the meaning of the LLC Act,
      shall
      promptly execute and cause to be filed statements of intent to dissolve and
      certificates
      of cancellation in accordance with the LLC Act and the laws of any other states
      or jurisdictions in which the Liquidator deems such filing necessary or
      advisable.

     

    Section
      1.6 Term.
      The
      term of the Company commenced on the Formation Date and shall continue until
      the
      Company's Certificate of Formation is cancelled following the 

    
      
        
        

      

      
        2

        
          

        

      

      
        
        
winding
        up and liquidation of the Company and the completion of its business following
        a
        Liquidating Event as provided in Article XII.

    

     

    Section
      1.7 Title
      to Company Property.
      All
      Company Property shall be owned by the Company as an entity, and no Member
      shall
      have any ownership interest in such property in its individual name or right.
      Each Member's interest in Company shall be personal property for all purposes.
      The Company shall hold all of its property in the name of the Company and not
      in
      the name of any Member.

     

    Section
      1.8 Payments
      of Individual Obligations.
      The
      Company's credit and assets shall be used solely for the benefit of the Company,
      and no asset of the Company shall be transferred or encumbered for or in payment
      of any individual obligation of any Member.

     

    Section
      1.9 Limited
      Initial Capacity of Class A Noteholder.
      The
      Class A Noteholder is executing and delivering this Agreement solely as the
      holder of the Class A Note, in order to be provided with the rights accorded
      to
      it hereunder as such and to evidence its agreement to become bound by this
      Agreement as the Initial Class A Member upon Conversion of the Class A
      Note.

     

    ARTICLE
      II

     

    DEFINITIONS

     

    Section
      2.1 Definitions.
      Unless
      otherwise defined herein or the context otherwise requires, capitalized terms
      used in this LLC Agreement (including the Schedules and Exhibits hereto) shall
      have the meanings set forth in Section 1.01
      of
Annex A
      hereto,
      and if not defined therein, in the Transaction Documents.

     

    Section
      2.2 Rules
      of Construction.
      This
      LLC Agreement and the definitions referred to in Section 2.1
      shall be
      governed by, and construed in accordance with, the rules of construction set
      forth in Section 1.02
      of
Annex
      A
      hereto.

     

    ARTICLE
      III

     

    INTERESTS;
      MEMBERS; CAPITAL CONTRIBUTIONS; 

    ADDITIONAL
      AGREEMENTS

     

    Section
      3.1 Interests.
      There
      shall be two classes of Interests: a Class A Member Interest and a Class B
      Member Interest. Certificates in the form attached as Exhibit
      A
      hereto
      (each, a "Certificate
      of Interest")
      shall
      be issued to the Class A Members and the Class B Members to evidence
      their respective Interests (and Units) herein. Each of the parties hereto hereby
      acknowledges and agrees that the Interests (and Units) shall constitute
      "securities" governed by Article 8 of the Uniform Commercial Code as in
      effect in any applicable jurisdiction. A holder of a Class A Member Interest
      (and Class A Units) that has been admitted to the Company as a member shall
      have
      all of the rights and obligations provided to a Class A Member under this
      LLC Agreement, and a holder of a Class B Member Interest (and Class B

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        
Units)
        that has been admitted to the Company as a member shall have all of the rights
        and obligations provided to a Class B Member under this LLC Agreement. Each
        Certificate of Interest shall contain a legend containing conspicuous notice
        of
        the restrictions on transfers of Interests in this LLC Agreement and the
        Unitholders Agreement. The Company shall maintain books for the purpose of
        registering the transfer of limited liability company
        interests.

    

     

    Section
      3.2  Class
      A Noteholder, Class A Members and Class B Members. 

     

    (a) Class
      A Noteholder.
      Upon
      the Class A Noteholder's execution of a counterpart to this LLC Agreement and
      payment to the Company by wire transfer of immediately available funds of an
      amount equal to 100% of the initial principal amount of the Class A Note, and
      without any further action being necessary, the Company shall duly execute
      and
      deliver the Class A Note to the Class A Noteholder. Upon Conversion of the
      Class
      A Note at the Class A Noteholder's election as provided therein, and without
      any
      further action being necessary, the Class A Noteholder shall be admitted to
      the
      Company as the Initial Class A Member. The name and address of the Class A
      Noteholder shall be as set forth in Schedule 3.2
      hereto.
      The Managing Member is hereby authorized and directed to execute and deliver
      the
      Class A Note in the name of the Class A Noteholder, and upon such execution
      and
      delivery, the Class A Note shall be duly authorized and validly issued. The
      Managing Member is hereby authorized and directed to execute and deliver
      Certificate(s) of Interest in the name of the Initial Class A Member
      representing its Class A Member Interest (and Class A Units) issuable upon
      Conversion of the Class A Note, and upon such execution and delivery, such
      Class
      A Member Interest (and Class A Units) shall be duly authorized and validly
      issued. It is understood and agreed that this Agreement and the Unitholders
      Agreement shall bind the Class A Noteholder as the Initial Class A Member upon
      Conversion of the Class A Note.

     

    (b) Initial
      Class B Member.
      Upon
      its
      execution of a counterpart to this LLC Agreement, and without any further action
      being necessary, the Initial Class B Member is hereby admitted to the Company
      as
      a Class B Member and shall be listed on Schedule
      3.2
      as such.
      The name
      and
      address of the Initial Class B Member and the Capital Account balance of
      the Initial Class B Member on and as of the Closing Date shall be as set
      forth in Schedule 3.2
      hereto.
      The Managing Member is hereby authorized and directed to execute and deliver
      a
      Certificate of Interest in the name of the Initial Class B Member
      representing its Class B Member Interest (and Class B Units), and upon such
      execution and delivery, such Class B Member Interest (and Class B Units) shall
      be duly authorized and validly issued.

     

    Section
      3.3 Capital
      Contributions,
      Additional Units and Additional Members.
      

     

    (a) Initial
      Capital Contributions of Members.
      The
      Initial Class B Member hereby agrees to make a Capital Contribution to the
      Company on the Closing Date in an aggregate amount equal to, but not in excess
      of, the amount set forth opposite the Class B Member's name in Schedule
      3.2
      hereto
      (such Capital Contribution, and the deemed Capital Contributions of the Class
      B
      Member described in the following sentence, such Member's "Capital
      Commitment").
      In
      consideration for the Initial Class B Member's Capital Commitment, the Initial
      Class B Member shall receive the number of Class B Units set forth on Schedule
      3.2 for the Class B Member. Upon Conversion of the Class A Note, the Class
      A
      Noteholder shall be deemed to have made a Capital Contribution to the Company
      on
      the date of Conversion in an amount equal 

    
      
        
        

      

      
        4

        
          

        

      

      
        
        
to
        the
        outstanding principal amount of the Class A Note being converted on such
        date,
        and shall receive the number of Class A Units specified in the Class A Note.
        No
        Member shall be obligated to make any other Capital Contributions to the
        Company.

    

     

    (b) Additional
      Capital Contributions.
      As and
      when at any time the Required Directors determine that the Company requires
      additional capital to carry out the business of the Company, the Managing Member
      shall cause the Company to deliver to each Member a notice (a "Capital
      Call Notice")
      setting forth (i) the aggregate amount to be contributed by all of the Members
      (a "Requested
      Amount"),
      (ii)
      the general purposes to which such contributions are to be applied and (iii)
      the
      date by which Members wishing to participate in such capital call must elect
      to
      so participate, which may not be earlier than the fifth Business Day following
      delivery of such Capital Call Notice (the "Election
      Deadline").
      Each
      Member may elect to contribute an amount equal to (x) its Percentage Interest
      multiplied
      by
      (y) such
      Requested Amount (its "Pro
      Rata Share")
      by
      providing the Company with written notice of such election by the Election
      Deadline, which notice shall set forth the maximum amount, up to the Requested
      Amount, that such Member is willing to contribute to the Company in accordance
      with this Section 3.1(b)
      (such
      Member's "Maximum
      Funding Amount"):
      

     

    (i) If
      all of
      the Members elect to participate in such capital call, upon not less than seven
      Business Days' notice from the Company, each Member shall make a Capital
      Contribution to the Company in an amount equal to its Pro Rata Share by wire
      transfer of immediately available funds to a Company account designated by
      the
      Company in such notice.

    

    (ii) If
      less
      than all of the Members elect to participate in such capital
      call:

    (A) first,
      upon
      not less than seven Business Days' notice from the Company, each Member electing
      to participate in such capital call shall make a Capital Contribution to the
      Company in an amount equal to its Pro Rata Share by wire transfer of immediately
      available funds to a Company account designated by the Company in such
      notice;

    (B) second,
      to the
      extent such Requested Amount exceeds the aggregate Capital Contributions to
      be
      made by the Members pursuant to the preceding clause
      (A),
      upon
      not less than three Business Days' notice from the Company, such Members
      electing to participate in such capital call shall make aggregate Capital
      Contributions (in addition to those set forth in clause
      (A)
      above)
      of such excess in proportion to their respective Maximum Funding Amounts by
      wire
      transfer of immediately available funds to a Company account designated by
      the
      Company in such notice; provided,
      however,
      that no
      Member shall be required to contribute pursuant to this clause
      (B),
      when
      taken together with amounts to be contributed pursuant to clause
      (A),
      an
      amount in excess of its Maximum Funding Amount; 

     

    (C) third,
      to the
      extent such Requested Amount exceeds the aggregate Capital Contributions to
      be
      made by the Members pursuant to the preceding clauses
      (A)
      and
(B),
      the
      Board of Directors may cause the Company to admit one 

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        
          or
        more Additional Members
        pursuant to Section
        3.3(c)
        for
        aggregate Capital Contributions not to exceed such excess;
        and

    

     

    (D) additional
      Units of the Class held by each Member making Capital Contributions in
      accordance with this Section 3.3(b) shall be issued to such Member, such that,
      after giving effect to such issuance, the Percentage Interest of such Member
      shall be an amount equal to (I) its Capital Contributions after giving effect
      to
      such capital call divided
      by
      (II) the
      aggregate Capital Contributions of all Members after giving effect to such
      capital call. Upon the issuance of additional Units, the Capital Accounts shall
      be adjusted consistent with Regulation §§1.704-1(b)(2)(iv)(f) and (g) so that
      the Capital Account balances of the Members are in proportion to their
      respective Units immediately following such issuance.

    

    (c) Additional
      Units; Additional Members.

     

    (i) Subject
      to the prior approval in writing of the Required Directors, the Company may
      issue additional Units of any Class at any time and from time to time to any
      Person (including one or more Members) for any amount of consideration, if
      any,
      as determined by the Required Directors and, in the case of a Person who is
      not
      a Member, subject to paragraphs
      (ii),
      (iii)
      and
(iv)
      of this
Section
      3.3(c),
      admit
      such Person as an additional Member (an "Additional
      Member")
      with
      all of the rights and obligations of a Member under this Agreement; provided
      that no such approval of the Required Directors shall be required in connection
      with the Company's issuance of Class A Units to the Initial Class A Member
      upon
      Conversion of the Class A Note (and the Initial Class A Member shall not be
      an
      "Additional Member" for purposes of this Agreement). Any additional Units issued
      by the Company to any Person shall reflect the Contribution Value of the Capital
      Contributions made by such Person to the Company relative to the Value
      of
      the assets of Company at such time net of liabilities of the Company at such
      time, as determined by the Required Directors. Upon the issuance of additional
      Units, the Capital Accounts shall be adjusted consistent with Regulation
§§1.704-1(b)(2)(iv)(f) and (g) so that the Capital Account balances of the
      Members are in proportion to their respective Units immediately following such
      issuance.

     

    (ii) Notwithstanding
      the provisions of Section
      3.3(c)(i),
      no
      Person may be admitted as an Additional Member if such admission would cause
      the
      Company to be treated as an association taxable as a corporation for Federal
      income tax purposes, cause the Company to be treated as a "publicly traded
      partnership" within the meaning of Code Section 7704, violate or cause the
      Company to violate any applicable Federal, state or foreign law, rule or
      regulation including, without limitation, the Securities Act of 1933, as
      amended, or any other applicable Federal, state or foreign securities laws,
      rules or regulations, cause the Company to be an investment company required
      to
      be registered under the Investment Company Act of 1940, as amended, or cause
      some or all of the Company's assets to be "plan assets" or the trading and
      investment activity of the Company to be subject to ERISA and/or Section 4975
      of
      the Code. 

     

    (iii) Each
      Person desiring to become an Additional Member shall be admitted to the Company
      upon the approval of the Required Directors and the delivery of a 

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

                        
        counterpart signature page to this Agreement and the Unitholders Agreement
        that
        has been duly executed and delivered to the Company and any other documentation
        

                        
        required by the Required Directors.

    

    

    (d) No
      Other Capital Contributions.
      Other
      than the Capital Contributions provided for in this Section
      3.3
      and the
      Capital Contributions of the Initial Class A Member deemed made as provided
      in
Section
      3.3(a)
      upon
      Conversion of the Class A Note, no Member shall be permitted to make Capital
      Contributions to the Company without the prior written consent of all
      Members.

     

    Section
      3.4 Additional
      Agreements Among Members. 

     

    (a) Return
      of Capital Contributions.
      Except
      as otherwise provided in Article
      V,
      Article XII
      or in
      the LLC Act, no Member shall be entitled to demand or receive a return of its
      Capital Contributions or withdraw its capital from the Company without the
      consent of all Members. Under circumstances requiring a return of any Capital
      Contributions, no Member shall have the right to receive property other than
      Cash.

     

    (b) Return
      on Capital.
      No
      Member shall receive any interest or draw with respect to its Capital
      Contributions or its Capital Account, except as otherwise provided in this
      LLC
      Agreement.

     

    (c) Obligations
      of the Company.
      Except
      as required by the LLC Act, no Member (including the Managing Member) shall
      be
      personally liable for the debts, liabilities, contracts or any other Obligations
      of the Company, solely by reason of being a Member (or Managing Member).
      Except as otherwise provided by mandatory provisions of applicable state law
      or
      the provisions of this Article III,
      a
      Member shall not be required to lend any funds to the Company or to make any
      Capital Contributions to the Company. No Member shall be liable for the payment,
      repayment or return of any Capital Contributions of the other Members.

     

    (d) Other
      Investments.
      Each
      Member acknowledges that the other Members and their Affiliates are free to
      engage or invest in an unlimited number of activities or businesses, any one
      or
      more of which may be related to the activities or businesses of the Company,
      without having or incurring any obligation to offer any interest in such
      activities or businesses to the Company or any Member, and neither this LLC
      Agreement nor any activity undertaken pursuant to this LLC Agreement shall
      prevent any Member or its Affiliates from engaging in such activities, or
      require any Member to permit the Company or any Member or its Affiliates to
      participate in any such activities, and as a material part of the consideration
      for the execution of this LLC Agreement by each Member, each Member hereby
      waives, relinquishes, and renounces any such right or claim of participation.
      Each Member acknowledges that certain conflicts of interest may thus arise
      and
      hereby agrees that the specific rights with respect to the Members' and their
      Affiliates' freedom of action provided in this Section 3.4(d),
      together with the other provisions of this LLC Agreement, are sufficient to
      protect their respective interests in relation to such possible conflicts and
      are to be in lieu of all other possible limitations which might otherwise be
      implied in fact, in law or in equity.

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    Section
      3.5 Representations
      and Warranties By
      Each
      Member.
      

     

    Each
      Member hereby represents and warrants to the Company and the other Members
      that
      (1) it is duly organized and validly existing under the laws of the jurisdiction
      of its organization and has all requisite power and authority to execute,
      deliver and perform this Agreement and the other Transaction Documents to which
      it is a party and to consummate the transactions contemplated herein and
      therein, (2) the execution, delivery and performance of this Agreement and
      such
      other Transaction Documents, and the consummation of such transactions have
      been
      duly authorized by it and this Agreement constitutes its legal, valid and
      binding obligation, (3) its execution, delivery and performance of this
      Agreement and the other Transaction Documents and the consummation by it of
      such
      transactions do not require any filing or registration with, notification to,
      or
      authorization, permit, consent or approval of, or other action by or in respect
      of, any Governmental Authority or any other Person, will not conflict with
      the
      provisions of its governing instruments or violate any provisions of applicable
      law or regulation or any order of any court or regulatory body and will not
      result in the breach of, or constitute a default, or require any consent, under
      any agreement, instrument or document to which it or any of its Affiliates
      is a
      party or by which it, any of its Affiliates or any of their respective property
      may be bound or affected (other than, in the case of the Initial Class B Member
      and the Managing Member, the written approval of the Agent and the Required
      Lenders under (and as defined in) the LEAF Warehousing Facility, which has
      been
      obtained and is in full force and effect) and (4) it is an "accredited investor"
      within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities
      Act
      and is not acquiring its Member Interests with a view to any distribution
      thereof in a transaction that would violate the Securities Act or the securities
      laws of any state of the United States and understands the restrictions on
      transfer applicable to the Member Interests contained herein and in the
      Certificate of Interest.

     

    Section
      3.6 Permitted
      Reorganization.
      The
      Required Directors shall have the power and authority to direct the Managing
      Member to cause the Company to reorganize into a corporation, whether by
      conversion into a corporation, merger into a corporation, having all of the
      Members contribute their Units to a corporation or otherwise (the "Permitted
      Reorganization")
      and
      the Members agree to do all things reasonably requested by the Required
      Directors to effect such Permitted Reorganization. Upon the consummation of
      the
      Permitted Reorganization, each Unit shall be converted into a number of shares
      of common stock of the Successor Corporation as is determined by the Board
      of
      Directors.

     

    ARTICLE
      IV

     

    ALLOCATION
      OF NET INCOME AND NET LOSSES

     

    Section
      4.1 Allocation
      of Net Income and Net Losses. Except
      as
      otherwise provided in this Article
      IV,
      the
      Company's Net Income or Net Losses, as the case may be, and each item of income,
      gain, loss and deduction entering into the computation thereof,
      for each Allocation Period shall be allocated to the Members for Capital Account
      purposes in proportion to the Members' Percentage Interests. 

     

    Section
      4.2 Special
      Allocations.
      (a)
      Minimum
      Gain Chargeback/Member Minimum Gain Chargeback.
      If
      there is a net decrease in Company Minimum Gain for an 

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        
Allocation
        Period, then there shall be allocated to each Member items of Company income
        and
        gain for that Allocation Period (and if necessary subsequent Allocation Periods)
        equal to that Member's share of the net decrease in Company Minimum Gain
        (within
        the meaning of Regulation § 1.704-2(g)(2)), subject to the exceptions set
        forth in Regulation § 1.704-2(f)(2) and (3), and to any exceptions provided by
        the Commissioner of the Internal Revenue Service pursuant to Regulation §
1.704-2(f)(5), provided,
        that if
        the Company has any discretion as to an exception provided pursuant to
        Regulation § 1.704-2(f)(5), the Tax Matters Member may exercise reasonable
        discretion on behalf of the Company, which discretion shall be exercised
        in good
        faith so as not to prejudice the interests of any Member. Allocations of
        excepted items and other items pursuant to the previous sentence shall be
        made
        in proportion to the respective amounts of the Members' shares of Company
        Minimum Gain under Regulation § 1.704-2(g). The items to be so allocated shall
        be determined in accordance with Regulation §§ 1.704-2(f)(6) and 1.704-2(j)(2).
        The foregoing is intended to be a "minimum gain chargeback" provision as
        described in Regulation § 1.704-2(f) and shall be interpreted and applied in all
        respects in accordance with that Regulation.

    

     

    If
      during
      an Allocation Period there is a net decrease in Member Nonrecourse Debt Minimum
      Gain attributable to a Member Nonrecourse Debt, then, in addition to the
      amounts, if any, allocated pursuant to the preceding paragraph, any Member
      with
      a share of that Member Nonrecourse Debt Minimum Gain (determined in accordance
      with Regulation § 1.704-2(i)(5)) shall, subject to the exceptions set forth
      in Regulation § 1.704-2(i)(4), be allocated items of Company income and gain for
      such Allocation Period (and, if necessary, subsequent Allocation Periods) equal
      to that Member's share of the net decrease in the Member Nonrecourse Debt
      Minimum Gain. Allocations of excepted items and other items pursuant to the
      previous sentence shall be made in proportion to the respective amounts of
      the
      Members' shares of Member Nonrecourse Debt Minimum Gain under Regulations §
1.704-2(i)(5). The items to be so allocated shall be determined in accordance
      with Regulation §§ 1.704-2(i)(4) and 1.704-2(j)(2). The foregoing is intended to
      be the "chargeback of partner nonrecourse debt minimum gain" required by
      Regulation § 1.704-2(i)(4) and shall be interpreted and applied in all respects
      in accordance with that Regulation.

     

    (b) Qualified
      Income Offset.
      If
      during any Allocation Period a Member unexpectedly receives any adjustment,
      allocation or distribution described in Regulation § 1.704-
      1(b)(2)(ii)(d)(4),
      (5)
      or
      (6),
      which
      causes or increases a deficit balance in such Member's Adjusted Capital Account,
      there shall be allocated to such Member items of Company income and gain
      (consisting of a pro
      rata
      portion
      of each item of income, including gross income, and gain of the Company for
      such
      Allocation Period) in an amount and manner sufficient to eliminate such deficit
      as quickly as possible; provided,
      that an
      allocation pursuant to this Section
      4.2(b)
      shall be
      made only if and to the extent that the Member would have a deficit balance
      in
      its Adjusted Capital Account after all other allocations provided for in this
      Article
      IV
      have
      been tentatively made as if this Section
      4.2(b)
      were not
      in this LLC Agreement. The foregoing isintended
      to be a "qualified income offset" provision as described in Regulation
§ 1.704-1(b)(2)(ii)(d)
      and
      shall be interpreted and applied in all respects in accordance with that
      Regulation.

     

    (c) Gross
      Income Allocation.
      In the
      event that any Member has a deficit balance in its Adjusted Capital Account
      at
      the end of any Allocation Period, such Member shall be allocated 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        
items
        of
        Company income and gain in the amount of such deficit as quickly as possible;
        provided
        that an
        allocation pursuant to this Section
        4.2(c)
        shall be
        made only if and to the extent that the Member would have a deficit balance
        in
        its Adjusted Capital Account after all other allocations provided for in
        this
Article
        IV
        have
        been tentatively made as if Section
        4.2(b)
        and this
Section
        4.2(c)
        were not
        in this LLC Agreement.

    

     

    (d) Member
      Nonrecourse Deductions.
      Notwithstanding anything to the contrary in this Article IV,
      losses,
      deductions, or expenditures subject to Code § 705(a)(2)(B) that are attributable
      to a particular Member Nonrecourse Debt for any Allocation Period shall be
      allocated to the Member that bears the economic risk of loss with respect to
      the
      Member Nonrecourse Debt to which the losses, deductions, or expenditures are
      attributable in accordance with the rules of Regulation
§ 1.704-2(i).

     

    (e) Section
      754 Adjustments.
      To the
      extent Capital Accounts are required under Code §§ 734(b) and 743(b),
      including by reason of Regulation § 1.704-1(b)(2)(iv)(m)(2)
      or
      (4),
      to
      reflect the adjustment to the adjusted tax basis of any Company asset as a
      result of the distribution to a Class A Member in complete liquidation of its
      Class A Member Interest, the amount of such adjustment shall be treated as
      an
      item of gain (if the adjustment is an increase in such basis) or loss (if the
      adjustment is a decrease in such basis) that is allocated to the Members in
      accordance with their interests pursuant to Regulation §
1.704-1(b)(2)(iv)(m)(2)
      or to
      the Member to whom such distribution was made pursuant to Regulation §
1.704-1(b)(2)(iv)(m)(4)
      as
      applicable.

     

    Section
      4.3 Curative
      Allocations.
      The
      allocations set forth in Sections
      4.2(a), 4.2(b),
      4.2(c),
      4.2(d)
      and
4.2(e)
      (the
      "Regulatory
      Allocations")
      are
      intended to comply with certain requirements of the Regulations. It is the
      intent of the Members that, to the extent possible, all Regulatory Allocations
      shall be offset either with other Regulatory Allocations or with allocations
      of
      other items of income, gain, loss or deduction of the Company pursuant to this
      Section
      4.3.
      Therefore, notwithstanding any other provision of this Article
      IV
      (other
      than the Regulatory Allocations), the Tax Matters Member, subject to (following
      the Conversion of the Class A Note) the Majority Class A Members' consent (such
      consent not to be unreasonably withheld) in the event that the Managing Member
      is the Class B Member, shall make such offsetting allocations of income, gain,
      loss or deduction of the Company in whatever manner it determines appropriate
      so
      that, after such offsetting allocations are made, each Member's Capital Account
      balance is, to the extent possible, equal to the Capital Account balance such
      Member would have had if the Regulatory Allocations were not part of this LLC
      Agreement and all items of the Company were allocated pursuant to this
Article
      IV
      without
      regard to the Regulatory Allocations. In exercising its discretion under this
      Section
      4.3,
      the Tax
      Matters Member shall take into account future Regulatory Allocations under
      Section
      4.2(a)
      that,
      although not yet made, are likely to offset other Regulatory Allocations
      previously made under Sections
      4.2(d)
      and
4.2(e).
      

     

    Section
      4.4 Other
      Allocation Rules. 

     

    (a) Net
      Income, Net Losses and any other items of income, gain, loss or deduction shall
      be allocated to the Members pursuant to this Article
      IV
      as of
      the last day of each Allocation Period; provided
      that Net
      Income, Net Losses and such other items shall also be allocated at such

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

       

      other
        times as the Gross Asset Values of Company Property are adjusted pursuant
        to
clause (ii)
        of the
        definition of Gross Asset Value.

    

     

    (b) The
      Members hereby agree to be bound by the provisions of this Article
      IV
      in
      reporting their shares of the Company income and loss for income tax purposes,
      except to the extent otherwise required by law. Notwithstanding any requirements
      of law as to allocations for income tax purposes, the Members agree, for
      purposes of maintaining their Capital Accounts, to be bound by the allocations
      contained in this Article
      IV.

     

    (c) To
      the
      extent permitted by Regulation § 1.704-2(h)(3), the Members shall endeavor to
      treat distributions of Cash as having been made from the proceeds of a
      nonrecourse liability (within the meaning of Regulation § 1.704-2(b)(3)) but
      only to the extent that such distributions otherwise would cause or increase
      a
      deficit balance of any Member's Adjusted Capital Account.

     

    (d) Any
      fee
      paid to any Member on the Closing Date shall be treated as a guaranteed payment
      under Section 707(c) of the Code.

     

    Section
      4.5 Tax
      Allocations; Code § 704(c).
      In
      accordance with Code § 704(c) and the applicable Regulations thereunder, income,
      gain, loss, and deduction with respect to any property contributed to the
      capital of the Company shall, solely for tax purposes, be allocated among the
      Members so as to take account of any variation between the adjusted basis of
      such property to the Company for federal income tax purposes and its initial
      Gross Asset Value.

     

    In
      the
      event the Gross Asset Value of any asset of the Company is adjusted pursuant
      to
clause
      (ii)
      of the
      definition of Gross Asset Value, subsequent allocations of income, gain, loss,
      and deduction with respect to such asset shall take account of any variation
      between the adjusted basis of such asset for federal income tax purposes and
      its
      Gross Asset Value in the same manner as under Code § 704(c) and the applicable
      Regulations thereunder.

     

    Any
      elections or other decisions relating to such allocations shall be made by
      the
      Tax Matters Member, subject to (following the Conversion of the Class A Note)
      the Majority Class A Members' consent (such consent not to be unreasonably
      withheld) in the event that the Managing Member is the Class B Member, in any
      manner that reasonably reflects the purpose and intent of this LLC Agreement
      and
      is otherwise in the best interest of the Members, provided
      that the
      Company shall elect to apply any allocation method permitted by the Regulations
      under Code § 704(c). Allocations pursuant to this Section
      4.5
      are
      solely for purposes of federal, state, and local taxes and shall not affect,
      or
      in any way be taken into account in computing, any Member's Capital
      Account or share of Net Income, Net Losses, other items, or distributions
      pursuant to any provision of this LLC Agreement.

     

    Except
      as
      otherwise provided in this LLC Agreement, for federal, state and local income
      tax purposes, all items of income, gain, loss, deduction of the Company, and
      any
      other allocations not otherwise provided for shall be allocated for federal
      income tax purposes to the Members in the same manner as its correlative item
      of
      "book" income, gain, loss or deduction is allocated pursuant to Sections
      4.1,
      4.2
      and
4.3.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    Section
      4.6 Calculation
      of Depreciation, Etc. Depreciation
      shall be calculated under the maximum rate and the shortest life permissible
      under the federal income tax law; provided
      that if
      federal income tax law changes in a way which increases the tax benefits
      available to the Members attributable to the Company's assets (whether by the
      introduction of an investment tax credit, energy tax credit or otherwise),
      the
      Tax Matters Member shall modify the allocations contained in this LLC Agreement
      or, as necessary, other provisions contained in this LLC Agreement, so as to
      cause, to the extent commercially reasonable, the Members to obtain the same
      benefits they had prior to such change; provided,
      further,
      that no
      such modification shall reduce the Cash otherwise Distributable to any Member
      or
      cause any Member any adverse federal income tax consequence as compared to
      the
      federal income tax law prior to such change.

     

     

    ARTICLE
      V

     

    DISTRIBUTIONS;
      WITHDRAWALS

     

    Section
      5.1 Distributions.
      

     

    (a) Priority
      of Payment.
      Except
      as otherwise provided in Sections
      5.2
      and
12.2,
      Distributions to the Members shall be subject to approval of the Required
      Directors. The Managing Member shall, on the date fixed for a Distribution
      (the
      "Distribution
      Date"),
      apply
      such Distribution to the Members in proportion to their Percentage Interests.
      For purposes of this Section
      5.1(a),
      any
      transferee or successor to a Member shall be deemed to have made Capital
      Contributions and received Distributions in respect of its Interest in the
      amounts and times made by and received by the predecessors in interest to such
      Member in respect of that Interest. Calculations of amounts to be distributed
      on
      each Distribution Date in accordance with the priority set forth above shall
      be
      the responsibility of the Managing Member.

     

    (b) No
      Other Distributions.
      Except
      as provided in this Section 5.1
      and in
Sections
      5.2 and
      12.2,
      no
      other Distributions shall be permitted.

     

    Section
      5.2 Tax
      Distributions.
      Subject
      to Section 5.5, for each Fiscal Year, the Company shall, during such Fiscal
      Year
      or within the first 90 days following such Fiscal Year or when such taxes become
      payable, distribute to each Member a distribution in an amount equal to such
      Member's Presumed Tax Liability for such Fiscal Year (a "Tax Distribution").
      Any
      amount distributed to a Member pursuant to Section 5.1 with respect to a Fiscal
      Year shall reduce the amount distributable to such Member as a Tax Distribution
      for such Fiscal Year. Any amount distributed pursuant to this Section 5.2 shall
      be deemed to be an advance distribution of amounts otherwise distributable
      to
      the Members pursuant to Section 5.1 and shall reduce the amounts that would
      subsequently otherwise be distributed to the Members pursuant to Section
      5.1.

     

    Section
      5.3 Amounts
      Withheld.
      All
      amounts withheld or required to be withheld pursuant to the Code or any
      provision of any state, local or foreign Tax law, with respect to any payment,
      distribution or allocation to the Company or the Members and treated by the
      Code
      (whether or not withheld pursuant to the Code) or any such Tax law as amounts
      payable by or in respect of the Members or any Person owning an interest,
      directly or indirectly, 

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        
in
        such
        Member, shall be treated as a Distribution to the Members with respect to
        which
        such amount was withheld pursuant to this Article V
        for all
        purposes under this LLC Agreement (including an appropriate debit to such
        Member's Capital Account). 

    

     

    Section
      5.4 Making
      of Payments.
      Unless
      otherwise expressly provided herein, all distributions or payments to the
      Members pursuant to any provision of this LLC Agreement shall be made no later
      than 3:00 p.m., New York City time, on the day of distribution or payment,
      and,
      at the time of any such distribution or payment, the Managing Member shall
      provide to the Members a notice identifying the nature of the distribution
      or
      payment, the Section or Sections of this LLC Agreement pursuant to which it
      is
      being made and the amount being distributed or paid pursuant to each such
      Section.

     

    Section
      5.5 Limitation
      on Distributions.
       Notwithstanding
      any other provision of this LLC Agreement, the Company shall not be required
      to
      make a distribution to a Member if such distribution would violate the LLC
      Act
      or any other Applicable Law.

     

    ARTICLE
      VI

     

    MANAGEMENT

     

    Section
      6.1 Management
      of the Company.
      

     

    (a) Except
      for actions requiring the approval of the Company's Board of Directors pursuant
      to Section
      6.4
      hereof
      and as otherwise provided herein (including Section 7.4), the overall
      management, control and administration of the business and affairs of the
      Company shall be vested with the Managing Member, which shall be a "manager"
      within the meaning of the LLC Act. The Managing Member shall have the authority
      to exercise all powers necessary and convenient for the purposes of the Company
      enumerated in Section 1.3,
      on
      behalf and in the name of the Company, subject to compliance with the
      restrictions and other provisions of this LLC Agreement. At any time following
      the Conversion of the Class A Note, the Majority Class A Members shall have
      the right to remove the Initial Class B Member as Managing Member upon the
      occurrence of any Board Reduction. Upon the delivery, at any time following
      the
      Conversion of the Class A Note, of written notice of such removal by the
      Majority Class A Members to the Initial Class B Member after the
      occurrence of any Board Reduction, the Member designated by the Majority
      Class A Members shall, upon its written acceptance of such position and
      without further act, become the Managing Member of the Company for all purposes
      of this LLC Agreement and the Initial Class B Member shall no longer be the
      Managing Member. The Initial Class B Member agrees to perform all actions
      reasonably requested by the new Managing Member to effectuate such transfer
      of
      management. If, following the Conversion of the Class A Note, the Majority
      Class
      A Members remove the Managing Member and appoint a new Managing Member, to
      the
      fullest extent permitted by law, the new Managing Member shall not be
      responsible for any of the past actions of the removed Managing Member and
      shall
      have no liability for the failure to take or perform any obligation of the
      Managing Member hereunder to the extent such obligation is not capable of being
      performed as a result of actions or omissions of the removed Managing
      Member.

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    (b) The
      Managing Member shall have the authority on behalf and in the name of the
      Company to perform all acts necessary and desirable for the objects and purposes
      of the Company, subject only to the restrictions expressly set forth in this
      LLC
      Agreement (including Sections 6.3,
      6.4,
      6.5
      and
7.4)
      and
      subject to the rights of the Liquidator to liquidate the Company and take all
      actions incidental thereto during the period of liquidation. Subject to such
      restrictions, the authority of the Managing Member shall include the authority
      to:

     

    (i) engage
      in
      transactions and dealings on behalf of the Company, including transactions
      and
      dealings with any Member or any Affiliate of any Member;

     

    (ii) call
      meetings of the Members or any class thereof;

     

    (iii) vote
      any
      equity interests, Financial Investments or other Permitted Assets held by the
      Company;

     

    (iv) purchase
      or otherwise acquire the Permitted Assets and cause the Subsidiaries to purchase
      or otherwise acquire the Permitted Assets;

     

    (v) determine
      and make Distributions, in Cash or otherwise, on the Interests in accordance
      with the provisions of this LLC Agreement and the LLC Act;

     

    (vi) appoint
      (and dismiss from appointment) officers, attorneys and agents on behalf of
      the
      Company, and engage (and dismiss from engagement) any and all Persons providing
      legal or financial services to the Company, or such other Persons as the
      Managing Member deems necessary or desirable for the management and operation
      of
the
      Company (it being understood that the appointment (and dismissal from
      appointment) of the Company Accountant shall be subject to the prior approval
      of
      the Required Directors as provided in Section 6.4(e)(xiii));

     

    (vii) incur
      and
      pay all expenses and obligations incidental to the operation and management
      of
      the Company;

     

    (viii) open
      accounts;

     

    (ix) subject
      to Article XII,
      effect
      a dissolution of the Company after the occurrence of a Liquidating
      Event;

     

    (x) bring
      and
      defend (or settle) on behalf of the Company actions and proceedings at law
      or
      equity before any court or governmental, administrative or other regulatory
      agency, body or commission or any arbitrator or otherwise;

     

    (xi) prepare
      or cause to be prepared reports, statements and other relevant information
      for
      distribution to the Members as may be required by this LLC Agreement or the
      LLC
      Act and any additional information determined to be appropriate by the Managing
      Member from time to time;

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

    (xii) execute,
      deliver and perform the Company's obligations under and exercise the Company's
      rights under, any of the Transaction Documents, including any certificates
      and
      other documents and instruments related thereto;

     

    (xiii) prepare
      and file all necessary returns and statements and cause the Company to pay
      all
      taxes, assessments and other impositions applicable to Company Property pursuant
      to Section 8.3;

     

    (xiv) borrow
      under the Credit Agreement to (1) finance the Company's obligations under
      Merchant Advance Contracts and (2) pay service fees owing by the Company under
      the LEAF Services Agreement;

     

    (xv) 
      enter
      into agreements for the provision of other financing to the Company (subject
      to
      the rights of first refusal of the Class A Noteholder and its designated
      Affiliates as set forth in the Class A Note and of Initial Class A Member and
      its designated Affiliates as set forth in Section
      6.10);
      and

     

    (xvi) execute
      all other documents or instruments, perform all duties, exercise all powers,
      and
      do all things for and on behalf of the Company necessary or desirable for or
      incidental to the foregoing.

     

    If
      the
      Managing Member is the designee of the Majority Class A Members as provided
      in Section 6.1(a),
      the
      Managing Member will be permitted to outsource one or more of its
      responsibilities hereunder but shall select such outsource party with reasonable
      care and the Company shall pay the reasonable fees and expenses of any such
      outsource party.

    (c) Except
      as
      otherwise provided herein (including Section
      7.4
      and
      7.5),
      no
      Member (other than the Managing Member), as such, shall have any right to,
      and
      shall not, take part in the management or affairs of the Company, nor shall
      any
      Member (other than the Managing Member), as such, have the power to act for
      or
      bind the Company.

     

    Section
      6.2 Right
      to Rely on the Managing Member.

     

    (a) Any
      Person dealing with Company may rely (without duty of further inquiry) upon
      a
      certificate signed by the Managing Member as to:

     

    (i) the
      identity of the Managing Member, the Class A Members or the Class B
      Members;

     

    (ii) the
      existence or nonexistence of any fact or facts that constitute a condition
      precedent to acts by the Managing Member or that are in any other manner germane
      to the affairs of the Company;

     

    (iii) the
      Persons who are authorized to execute and deliver any instrument or document
      of
      the Company; and

     

    (iv) any
      act
      or failure to act by the Company or any other matter whatsoever involving the
      Company or any Member.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

    (b) To
      the
      extent that the Company is permitted or required to dispose of any Company
      Property in accordance herewith, the signature of the Managing Member shall
      be
      sufficient to convey title to any such Company Property, and all of the Members
      agree that a copy of this LLC Agreement may be shown to the appropriate parties
      in order to confirm the same, and further agree that the signature of the
      Managing Member shall be sufficient to execute any documents necessary to
      effectuate this or any other provision of this LLC Agreement. 

     

    Section
      6.3  Restrictions
      on Authority of the Managing Member.
      The
      Managing Member shall not have the authority to:

     

    (a) do
      any
      act in contravention of this LLC Agreement or any other Transaction
      Document;

     

    (b) do
      any
      act which would make it impossible to carry on the ordinary business of the
      Company, except in connection with the dissolution, winding up and termination
      of the Company as permitted by Article XII;

     

    (c) possess
      Company Property, or assign the Company's rights in specific Company Property,
      for other than a Company purpose;

     

    (d) admit
      a
      Person as a Member except as provided in this LLC Agreement;

    (e) take
      any
      action expressly reserved for the Class A Noteholder or the Majority Class
      A
      Members, as the case may be, under Section
      7.4
      hereof;
      or

     

    (f) take
      any
      action that it has been advised by Deutsche Bank AG would cause Deutsche Bank
      AG
      to be in violation of the Bank Holding Company Act of 1956, as
      amended.

     

    Section
      6.4 Board
      of Directors; Approvals.
      (a) The
      Company shall have a board of directors (the "Board
      of Directors")
      initially composed of three directors appointed by the Initial Class B Member.
      Prior to the Conversion of the Class A Note, the Class A Noteholder shall have
      the right from time to time to select, appoint and remove (with or without
      cause) two observers (each a "Board
      Observer")
      who
      shall be entitled to attend and observe (but not vote at) meetings of the Board
      of Directors as the representatives of the Class A Noteholder. On and after
      the
      Conversion of the Class A Note, the Board of Directors shall be composed of
      four
      directors, two of which shall be appointed by the Initial Class A Member and
      shall act as representatives of the Class A Members on the Board of Directors,
      and the other two of which shall be appointed by the Majority Class B Members
      and shall act as representatives of the Class B Members on the Board of
      Directors. Upon the occurrence of a Board Reduction Event (at any time following
      the Conversion of the Class A Note), the Majority Class A Members may, by
      delivering written notice of such election to the Class B Members, elect to
      reduce the number of directors acting as representatives of the Class B Members
      from two to one. Such reductions shall be effective upon receipt of such notice.
      In addition to the foregoing, the Board of Directors shall at all times have
      at
      least one director that is an Independent Director; provided that the
      Independent Director shall only be permitted to vote on the matters specified
      in
Section
      6.4(e)(xviii).
      All
      directors shall be natural persons. Each director is a "manager" within the
      meaning of the LLC Act. The initial directors, the Initial Board Observers
      and
      the initial Independent Director are listed on Schedule
      6.4(a)
      hereto.

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

    (b)
      The
      Majority Class A Members shall have the exclusive right from time to time to
      select, appoint and remove (with or without cause) the director(s) acting as
      the
      representative(s) of the Class A Members on the Board of Directors. The Majority
      Class B Members shall, except with respect to removals following a Board
      Reduction Event, have the exclusive right from time to time to select, appoint
      and remove (with or without cause) the director(s) acting as the
      representative(s) of the Class B Members on the Board of Directors. Any vacancy
      occurring on the Board of Directors due to the death, disability, removal or
      resignation of a director shall be filled by the Member(s) who appointed the
      director and as whose representative the deceased, disabled, removed or
      departing director served, and in the case of the Independent Director, shall
      be
      filled by the Majority Class B Members with the consent (not to be unreasonably
      withheld) of the Class A Noteholder or the Majority Class A Members, as the
      case
      may be; provided
      that,
      following a Board Reduction (after the Conversion of the Class A Note), any
      such
      vacancy of the Independent Director shall be filled by the Majority Class A
      Members. In the event a Member fails or refuses to appoint representatives
      to
      the Board of Directors for any reason (and has actual notice of the death,
      resignation or other refusal to serve of any person previously acting as a
      member of the Board of Directors and representing such Member) so that for
      a
      period of fifteen days or more after such notice there is no representative
      of
      such Member acting as a member of the Board of Directors, then such Member
      shall
      be deemed to have consented to any actions taken by the Board of Directors
      (other than any action requiring the vote of the Required Directors)
      after the expiration of such fifteen day period and prior to the appointment
      by
      such Member of a director or directors to act as the representative of such
      Member on the Board of Directors as provided herein, and the quorum and voting
      requirements in Section
      6.4(c)
      below
      shall be modified accordingly. The Board of Directors shall have the power
      to
      establish its own procedures for meeting and voting and to appoint one or more
      committees, in each case subject to the requirements of this Section
      6.4.

     

    (c) Subject
      to Section
      6.4(e),
      a
      quorum for the conduct of business by the Board of Directors on behalf of the
      Company shall be (i) prior to the Conversion of the Class A Note, (x) two
      directors and (y) at least one Board Observer or (ii) on and after the
      Conversion of the Class A Note, (x) one director appointed by the Majority
      Class
      A Members and (y) one director appointed by the Majority Class B Members, in
      each case then acting and (in the case of each director) entitled to vote,
      provided
      that,
      following a Board Reduction (at any time following the Conversion of the Class
      A
      Note), quorum shall be no less than half of the total number of directors then
      appointed by the Members and acting and entitled to vote (it being understood
      that the term "majority" for this purpose shall mean more than 50% of the entire
      number of directors then acting and entitled to vote), and provided further
      that,
      (1) prior to the Conversion of the Class A Note and (2) for any matters
      specified in Section
      6.4(e)(xviii)
      (whether prior to or after the Conversion of the Class A Note), the Independent
      Director shall also be required in order for quorum to be constituted. For
      quorum purposes, a director (or, prior to the Conversion of the Class A Note,
      a
      Board Observer) may be present in person or by conference telephone,
      teleconference or any other means wherein each director (and, prior to the
      Conversion of the Class A Note, each Board Observer) can hear each other
      director (and, prior to the Conversion of the Class A Note, each Board
      Observer). No action may be conducted at a meeting unless prior written or
      telephonic notice (including agenda) has been given to each director (and,
      prior
      to the Conversion of the Class A Note, each Board Observer), in the case of
      a
      telephonic meeting, personally at least 48 hours prior to the time fixed for
      such meeting, and in all other cases, at least 10 days prior to the time fixed
      for such meeting, unless such notice has been waived in 

     

    
      
        
        

      

      
        17

        
          

        

      

      
        
        
writing
        by each director (and, prior to the Conversion of the Class A Note, each
        Board
        Observer) who did not receive notice as required hereby. Any meeting not
        conducted by conference telephone call shall be held in a location in
        Philadelphia designated in the notice of such meeting or at such other location
        as the directors (and, prior to the Conversion of the Class A Note, the Board
        Observers) shall agree. All directors (and, prior to the Conversion of the
        Class
        A Note, each Board Observer) shall use reasonable efforts to attend Board
        of
        Directors meetings. If a director (or, prior to the Conversion of the Class
        A
        Note, a Board Observer) is unable to attend a requested Board of Directors
        meeting, such director (or, prior to the Conversion of the Class A Note,
        such
        Board Observer) may provide the other directors (and, as applicable, prior
        to
        the Conversion of the Class A Note, the other Board Observer(s)) with two
        alternative dates and times for a meeting to be held within two days of the
        date
        originally requested for such meeting and the directors (and, prior to the
        Conversion of the Class A Note, the Board Observers) shall use good faith
        efforts to agree upon a mutually acceptable meeting time.

    

     

    (d) Subject
      to the other applicable provisions of this Section
      6.4,
      the
      Board of Directors may take action only by the vote of (i) prior to the
      Conversion of the Class A Note, at least two directors or (ii) on and after
      the
      Conversion of the Class A Note, at least one director appointed by the Majority
      Class A Members and at least one director appointed by the Majority Class B
      Members, provided
      that
      following a Board Reduction (at any time following the Conversion
      of the Class A Note), the Board of Directors may (subject to the other
      applicable provisions of this Section
      6.4)
      take
      action only by the vote of a majority of the entire number of directors then
      appointed and acting at a meeting at which a quorum is present (it being
      understood that the term "majority" for this purpose shall mean more than 50%
      of
      the entire number of directors then acting and entitled to vote), and
provided further
      that,
      for any matters specified in Section
      6.4(e)(xviii),
      the
      vote of the Independent Director shall also be required. As provided in Section
      18-404(d) of the LLC Act but subject to Section
      6.4(e),
      action
      may be taken without a meeting if a consent in writing setting forth the action
      so taken is executed by at least such number of directors as would be sufficient
      to approve the action at a meeting. 

     

    (e) The
      prior
      written approval of the Required Directors (and, in the case of Sections
      6.4(e)(ii),
      6.4(e)(viii)
      (to the
      extent set forth therein) and 6.4(xvii),
      the
      Class A Noteholder) shall be required for the taking of any of the following
      actions, and notwithstanding any power or authority granted to the Managing
      Member under the LLC Act, the Certificate of Formation or this LLC Agreement
      (including Sections 6.1 and 6.5),
      the
      Managing Member and the Company shall not have the authority to, and the
      Managing Member agrees that it shall not take any of the following actions,
      without first obtaining such approval
      (in
      addition to any other approvals that may be required under this LLC
      Agreement):

     

    (i) permit
      the Company or any Subsidiary to take any act in contravention of this LLC
      Agreement or any other Transaction Document;

     

    (ii)
       (x)
      permit the Company to issue any limited liability company interests (including,
      without limitation, any preferred or non-voting limited liability company
      interests) in the Company, or permit the Company to issue any rights to acquire
      any such limited liability company interests (it being understood that the
      issuance of the Class A Units issuable upon Conversion of the Class A Note
      shall
      not require the consent of the 

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        
Required
        Directors or the Class A Noteholder), or (y) permit the Company to reclassify
        or
        combine any limited liability company interests in the
        Company;

    

     

    (iii) permit
      the Company or any Subsidiary to acquire any assets other than Permitted
      Assets;

     

    (iv)
       permit
      the Company or any Subsidiary to incur or suffer to exist any Lien on any of
      its
      assets other than pursuant to the Security Agreement and other than Permitted
      Liens (as defined in the Credit Agreement);

     

    (v) permit
      the Company or any Subsidiary to merge with any Person or Dispose of all or
      substantially all of its assets;

     

    (vi)
       permit
      the Company or any Subsidiary to Dispose of any Permitted Asset other than
      (x)
      in the case of the Company, any
      pledge or other disposition under the Security Agreement or any Disposition
      in
      the ordinary course of the Company's business and (y) in the case of the
      Servicer Subsidiary, any Disposition in the ordinary course of such Subsidiary's
      business;

    (vii)
       permit
      the Company or any Subsidiary to incur any Indebtedness, other than (x)
      Indebtedness of the Company incurred pursuant to the Credit Agreement and (y)
      Indebtedness of the Company under the Class A Note;

     

    (viii)
       permit
      (A) any Distribution in respect of Interests or (B) any redemption of
      Interests, other than, in each of clause (A)
      or
(B),
      as
      permitted or contemplated by Article V
      or
Article
      XII
      of this
      LLC Agreement or by the Transaction Documents (provided
      that the
      prior written approval of the Class A Noteholder shall be required for any
      redemption of Interests);

     

    (ix)
       permit
      the Company to approve any Budget (including the amount of any working capital
      and expense reserves), to be established each year; provided,
      if a
      new annual Budget is not approved, in order to allow the Company to continue
      to
      operate, the applicable Budget of the last approved year will be deemed to
      be
      approved until a new approved Budget can be put in place;

     

    (x)
       permit
      the Company or any Subsidiary to (i) amend, modify or waive any provision of
      the
      LEAF Services Agreement, any Credit Card Processor Services Agreement or any
      Relevant Provision of a Merchant Advance Contract, or (ii) enter into any
      Merchant Advance Contract whose equivalent provisions differ from the Relevant
      Provisions set forth in the form of Merchant Advance Contract attached as
      Exhibit D;

     

    (xi)
       permit
      any action by the Company or any Subsidiary in connection with the Company's
      exercise of its rights under the LEAF Services Agreement, excluding any action
      regarding a claim of fraud, theft or other misconduct or breach;

     

    (xii)
       permit
      the Company or any Subsidiary to (i) terminate the LEAF Services Agreement,
      or
      (ii) enter into after the date hereof, terminate, or change (or consent or
      fail

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

             
to
        object to any change in) the settlement of funds procedures under, any Credit
        Card Processor Services Agreement;

       

    

    (xiii) permit
      the Company or any Subsidiary to select
      and
      hire any material external service providers, including accountants and auditors
      (but excluding counsel) for the Company, other than service providers retained
      as of the Closing Date and identified to the Class A Noteholder;

     

    (xiv)
       permit
      the Company or any Subsidiary to enter into any business combination,
      partnership or joint venture with any Person, or to terminate any such
      arrangement entered into;

     

    (xv)
       (i)
      permit the Company to engage in any business activities other than those
      conducted and proposed to be conducted on the date hereof, (ii) permit the
      Servicer Subsidiary to engage in any business activities other than the
      provision to the Company of services of the type contemplated in the LEAF
      Services Agreement, (iii) permit the Company or any Subsidiary to enter into
      Merchant Advance Contracts with counterparties in California (other than
      Merchant Advance Contracts entered into by the Company with such counterparties
      while the Company maintains a valid and effective California finance lender
      license) or (iv) permit the Company or any Subsidiary to do business
      in any State of the United States of America other than New York, California,
      New Jersey, Pennsylvania, Florida, Texas and Nevada, or in any country other
      than the United States of America or any political subdivision of such other
      country;

     

    (xvi)
       permit
      the Company or any Subsidiary to enter into any agreement or otherwise transact
      with the Class B Member or any of its Affiliates (other than the Company
      and its Subsidiaries, and other than as expressly contemplated by the
      Transaction Documents);

     

    (xvii)
       permit
      the Company or any Subsidiary to voluntarily liquidate or dissolve itself or
      appoint a Liquidator;

     

    (xviii) permit
      the Company or any Subsidiary to take any action under the definition of
      "Voluntary Bankruptcy"; provided
      that any
      action described in this clause
      (xviii)
      (whether
      prior to or after a Board Reduction) shall require the affirmative vote of
      each
      director (including the Independent Director);

     

    (xix) permit
      the Company or any Subsidiary to change its Fiscal Year;

     

    (xx) cause
      the
      Company or any Subsidiary to be treated as a corporation or other association
      taxable as a corporation or as a publicly traded partnership for federal income
      tax purposes or to take a position inconsistent with the Company or any
      Subsidiary not being treated as a corporation or other association taxable
      as a
      corporation except as required by Applicable Law;

     

    (xxi)
       permit
      the Company or any Subsidiary to confess a judgment against the Company or
      any
      Subsidiary or settling actions in proceedings in law or in equity in relation
      to
      the Company or any Subsidiary before any court or other Governmental
      Authority;

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    (xxii)
       permit
      the Company or any Subsidiary (other than the Servicer Subsidiary) to have
      any
      employees;

     

    (xxiii) permit
      the Company to reduce the "Commitments" under the Credit Agreement;

     

    (xxiv) permit
      the Company or any Subsidiary to incur any voluntary expense, or to enter into
      any agreement other than the Transaction Documents (and any agreement required
      to be entered into pursuant to any Transaction Document), that in any such
      case
      is not covered in the Budget, if the aggregate of all such expenses, or of
      all
      obligations of the Company and its Subsidiaries pursuant to the relevant
      agreement(s), as the case may be, (i) individually is in excess of $35,000
      or
      (ii) in the aggregate during any annual fiscal period of the Company is in
      excess of $200,000, unless, in the case of any such voluntary expense, the
      incurrence thereof is necessary to comply with Applicable Law, and it being
      understood that the Managing Member shall provide the directors and (if
      applicable) the Board Observers with at least three Business Days prior written
      notice of the incurrence by the Company or any Subsidiary of any such expense,
      or any such entry into by the Company or any Subsidiary of any such agreement,
      in any such case not so covered (or not reasonably anticipated to be so covered)
      in the Budget;

     

    (xxv) permit
      the Company or any Subsidiary to approve any new channel partner for marketing
      the merchant advance business of the Company and its Subsidiaries (it being
      understood that a Person which is a counterparty to a Merchant Advance Contract
      with the Company shall not, as the sole consequence thereof, be deemed to be
      channel partner of the Company for purposes of this Section
      6.4(e)(xxv));

     

    (xxvi) permit
      the Company to exercise its right under the LEAF Services Agreement to acquire
      the Servicer Subsidiary, or permit the Company or any Subsidiary to acquire
      more
      than five percent of any class of voting securities of, or 25 percent of the
      equity of, any other Person; or

     

    (xxvii)
      permit the Company or any Subsidiary to hire any regulatory counsel,
provided
      that
      DBAH Capital LLC and its Affiliates shall have the right to require that any
      advice provided by any regulatory counsel to the Company or any Subsidiary
      be in
      form and substance satisfactory to DBAH Capital LLC and its Affiliates and
      in a
      form expressly permitting DBAH Capital LLC and its Affiliates to rely thereon.
      

     

    Section
      6.5 Conduct
      of Business by the Company; Other Management Matters. 

     

    (a) Covenants
      of the Company.
      Anything in this LLC Agreement to the contrary notwithstanding, the Managing
      Member shall conduct the affairs of the Company and its Subsidiaries such
      that:

     

    (i) The
      Company and its Subsidiaries shall
      maintain books and records and bank accounts separate from those of any other
      Person.

     

    (ii) All
      transactions between any Member (or any of their respective Affiliates, other
      than the Company and its Subsidiaries), on the one hand, and any of
      the

     

    
      
        
        

      

      
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          Company
        or
        any Subsidiary, on the other hand, shall be duly authorized and documented
        and
        recorded accurately in the appropriate books and records of such entities,
        

          except where
        normal industry practice does not normally require authorization or
        documentation.

    

     

    (iii) The
      Company and its Subsidiaries shall: (x) maintain separate financial
      statements, showing their assets and liabilities separate and apart from those
      of any other Person and not have their assets listed on any financial statement
      of any other Person, except that the Company's and its Subsidiaries' assets
      may
      be included in a consolidated financial statement of an Affiliate if required
      by
      GAAP so long as appropriate notation is made on such consolidated financial
      statements to indicate the separateness of the Company and its Subsidiaries
      from
      such Affiliate and to indicate that the Company's and its Subsidiaries' assets
      and credit are not available to satisfy the debts and other obligations of
      such
      Affiliate or any other Person and (y) otherwise maintain their own records
      and books of account.

     

    (iv) The
      Company and its Subsidiaries shall not commingle or pool any of the funds and
      other assets of the Company and its Subsidiaries with those of any Affiliate
      of
the
      Company, any Member or any Affiliate of any Member or any other Person, and
      shall hold all of their assets in their own name.

     

    (v) The
      Company has done, or caused to be done, and shall do, or cause to be done,
      all
      things necessary to observe limited liability company formalities and other
      organizational formalities and preserve its and its Subsidiaries' existence,
      and
      the Company shall abide by all statutory Delaware limited liability company
      formalities.

     

    (vi) Neither
      the Company nor any of its Subsidiaries has, nor shall they, guarantee, become
      obligated for, or hold itself or its credit out to be responsible for, or
      available to satisfy, the debts or obligations of any other Person or control
      the decisions or actions respecting the daily business or affairs of any other
      Person (except as provided for in or permitted under the Transaction
      Documents).

     

    (vii) Neither
      the Company nor any of its Subsidiaries shall acquire equity interests of any
      Affiliate of the Company or of any of the Members or any of their Affiliates
      (other than Permitted Assets and except as otherwise provided for in or
      permitted under this LLC Agreement or the other Transaction Documents). Neither
      the Company nor any of its Subsidiaries shall buy or hold any evidence of
      indebtedness for borrowed money issued by, or make any loan or advance to,
      any
      other Person (other than such evidence of indebtedness for borrowed money,
      loan
      or advance constituting Permitted Assets and except as otherwise provided for
      in
      or permitted under this LLC Agreement or the other Transaction
      Documents).

     

    (viii) Neither
      the Company nor any of its Subsidiaries has made any loans or advances to,
      or
      pledged its assets (other than as otherwise provided for in or permitted under
      the Transaction Documents) for the benefit of, and shall not make any loans
      or
      advances (other than the Permitted Assets or as otherwise provided for in or
      permitted under the Transaction Documents) to, or pledge its assets (other
      than
      as otherwise 

     

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    provided
      for in or permitted under the Transaction Documents) for the benefit of, any
      Person, including, without limitation, any Affiliate of the Company, any Member,
      or any Affiliate of any Member.

     

    (xi) The
      Company and its Subsidiaries shall maintain their assets in a manner such that
      it is not difficult to segregate, identify or ascertain such
      assets.

     

    (x) Neither
      the Company nor any of its Subsidiaries shall assume, guarantee or pay the
      debts
      or obligations of any other Person or otherwise pledge its assets for the
      benefit of any other Person except as otherwise contemplated by the Transaction
      Documents.

     

    (xi) Neither
      the Company nor any of its Subsidiaries shall enter into transactions with
      any
      of their Affiliates (other than the Company and its Subsidiaries) unless such
      transactions are on terms and conditions at least as favorable to the Company
      and its Subsidiaries as the terms and conditions that would be expected to
      have
      been obtained, under similar circumstances, from Persons who are not Affiliates
      of the Company;
      it being understood that the entering into of any Transaction Document and
      the
      performance thereof in accordance with its terms satisfies such
      standard.

     

    (xii) The
      Company shall conduct its merchant advance business in accordance with the
      Underwriting Manual.

     

    (b) Board
      Reduction Events and Liquidating Events.
      Promptly upon becoming aware of any Board Reduction Event or Liquidating Event,
      the Managing Member shall notify the Members of the occurrence of any such
      Board
      Reduction Event or Liquidating Event or any event that with notice or lapse
      of
      time or both would constitute such an event and the action that Company has
      taken or proposes to take with respect thereto.

     

    (c) Maintenance
      of the Company's Existence, etc.
      At the
      Company's expense, the Managing Member shall take all actions that may be
      necessary or appropriate (i) for the continuation of the Company's and each
      of its Subsidiaries' valid existence as (in the case of the Company) a limited
      liability company or (in the case of any Subsidiary) a corporation or a limited
      liability company, in any such case, under the laws of its jurisdiction of
      formation or organization, and its qualification to do business under the laws
      of each other jurisdiction in which such existence or qualification is necessary
      to protect the limited liability of the Members or to enable the Company and
      its
      Subsidiaries to conduct the business in which they are engaged or to perform
      their respective obligations under any agreement to which they are a party,
      (ii) for the accomplishment of the Company's and each of its Subsidiaries'
      purposes, including the acquisition, management, maintenance, preservation,
      and
      operation of Permitted Assets in accordance with the provisions of this LLC
      Agreement, the organizational documents of the Subsidiaries and applicable
      laws
      and regulations and (iii) to enforce the rights of the Company and each of
      its Subsidiaries under each of the Transaction Documents. Without limitation
      of
      the foregoing, the Managing Member shall cause the Company and its Subsidiaries
      to maintain all licenses, permits, registrations, authorizations, use
      agreements, consents, orders or approvals of governmental or quasi-governmental
      agencies and authorities (whether Federal, state, local, 

    
      
        
        

      

      
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municipal
        or foreign) necessary to own its properties and to conduct its activities
        in
        accordance with all applicable laws, rules, regulations and
        orders.

    

     

    (d) Fiduciary
      Duty.
      Without
      limiting its rights under Section
      3.4(d),
      the
      Managing Member shall be under a fiduciary duty to conduct the affairs of the
      Company in the best interests of the Company, including the safekeeping and
      use
      of all Company Property and the use thereof for the exclusive benefit of the
      Company and will not conduct the affairs of the Company so as to benefit any
      other business now owned or hereafter acquired by the Managing Member or any
      other Member if such conduct also produces a detriment to the Company.

     

    (e) Notice
      Regarding Qualification to Do Business.
      The
      Managing Member shall provide notice to the Class A Noteholder and the Members
      of any state or jurisdiction in which Company is qualified to do business (other
      than its jurisdiction of organization and any jurisdiction in which Company
      is
      qualified to do business on the Closing Date).

     

    Section
      6.6 Compensation
      and Expenses.
      No
      Member or Affiliate of any Member, nor any director (other than the Independent
      Director) or Board Observer, shall receive any salary, fee, or draw for services
      rendered to or on behalf of the Company or otherwise in its capacity as a Member
      or director, as the case may be, nor shall any Member or Affiliate of any Member
      or any director (other than the Independent Director) or Board Observer be
      reimbursed for any expenses (other than out-of-pocket travel and other expenses)
      incurred by such Member, Affiliate, director or Board Observer, as the case
      may
      be, on behalf of the Company or otherwise in its capacity as a Member, director
      or Board Observer, as the case may be; provided that if the Managing Member
      is
      the designee of the Majority Class A Members as provided in
      Section 6.1(a), the designee shall be reimbursed for its out-of-pocket
      costs and expenses incurred in connection with acting as Managing Member. For
      the avoidance of doubt, this Section 6.6 shall not apply to the receipt by
      the
      Servicer (as defined in the LEAF Services Agreement) of the service fees
      contemplated therein.

     

    Section
      6.7 Execution
      of other Transaction Documents.
      Simultaneously with the execution of this LLC Agreement, the Managing Member,
      on
      behalf of the Company, shall cause the Company to enter into the Transaction
      Documents to which Company is a party. 

     

    Section
      6.8 Compliance
      with the LLC Agreement.
      The
      Managing Member shall exercise its rights hereunder as Managing Member to cause
      the Company to comply with all of the obligations of the Company set forth
      in
      this LLC Agreement.

     

    Section
      6.9 Annual
      Budget.
      No
      later than the Closing Date and thereafter, no later than 60 days after the
      end
      of each calendar year during the term hereof, the Managing Member shall submit
      to the Board of Directors a preliminary budget for the Company for the next
      succeeding calendar year. Such budget shall become final when approved by the
      Required Directors. This Section 6.9 shall not apply to the Managing Member
      if
      the Managing Member is the designee of the Majority Class A Members as
      provided in Section 6.1(a);
      provided,
      that if
      the Managing Member is the designee of the Majority Class A Members and does
      not
      provide a budget in accordance with this Section
      6.9,
      it
      shall provide the Members with information reasonably requested by a Member
      as
      to proposed amounts to be expended by the Company and 

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        
as
        to
        such other matters concerning the business and affairs of the Company as
        any
        Member shall reasonably request.

    

     

    Section
      6.10 Initial
      Class A Member's Right of First Refusal.
      The
      Initial Class A Member (and/or any of its Affiliates designated thereby) shall
      have a right of first refusal to provide (i) any debt or equity financing
      required by the Company, as approved by the Board, at then-market terms and
      (ii)
      any advisory, structuring, underwriting or other services required in connection
      with the Company's capital raising activities as approved by the Board
      (including any third party debt financing, equity investment or initial public
      offering) in exchange for market-rate compensation. For the avoidance of doubt,
      the rights described in this Section
      6.10
      shall
      not apply to additional capital contributions proposed to be made
      to
      the Company pursuant to Section
      3.3(b)
      or to
      the issuance of Class A Units issuable upon Conversion of the Class A Note
      (or
      the Capital Contributions of the Initial Class A Member deemed made as provided
      in Section
      3.3(a)
      upon
      such Conversion).

     

    ARTICLE
      VII

     

    ROLE
      OF
      NON-MANAGING MEMBERS

     

    Section
      7.1 Rights
      or Powers.
      Except
      as otherwise provided herein (including Section
      7.4),
      no
      Member (other than the Managing Member) shall have any right or power to take
      part in the management or control of the Company or its business and affairs
      or
      to act for or bind the Company in any way. Notwithstanding the foregoing, the
      Members shall have all the rights and powers specifically set forth in this
      LLC
      Agreement. Any Member, any Affiliate thereof or an employee, stockholder, agent,
      member, manager, director or officer of a Member or any Affiliate thereof,
      may
      also be an employee or agent of the Company or the Manager. The existence of
      these relationships and acting in such capacities will not result in such Member
      being deemed to be participating in the control of the business of the Company
      or otherwise by itself affect the limited liability of such Member.

     

    Section
      7.2 Voting
      Rights.
      Each
      Member shall have the right to vote only on those matters expressly reserved
      for
      its vote (i) as provided in this LLC Agreement or (ii) as required by
      mandatory provisions of the LLC Act.

     

    Section
      7.3 Procedure
      for Consent.
      In any
      circumstances requiring the approval or consent of any Member specified in
      this
      LLC Agreement, such approval or consent may, except as expressly provided to
      the
      contrary in this LLC Agreement, be given or withheld in the sole and absolute
      discretion of such Member. If the Managing Member receives the necessary
      approval or consent of the Members to such action, the Managing Member shall
      be
      authorized and empowered to implement such action without further authorization
      by the Members.

     

    Section
      7.4 Special
      Rights of the Class A Noteholder and Class A Member.
      Notwithstanding any other provision hereof, the Class A Noteholder or the
      Majority Class A Member(s), as the case may be, shall have the exclusive
      right and power to (a) control the 

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        
liquidation
        of the Company by appointing the Liquidator as and to the extent set forth
        in
Article XII
        and
        (b) deliver a Liquidation Notice in accordance with Section 12.10.

    

     

    ARTICLE
      VIII

     

    ACCOUNTING;
      BOOKS AND RECORDS

     

    Section
      8.1 Accounting;
      Books and Records. 

     

    (a) Maintenance
      of Books and Records.
      The
      Company shall maintain at its principal place of business or, upon notice to
      the
      Class A Noteholder and the Members, at such other place as the Managing Member
      shall determine, separate books of account for Company, which shall include
      a
      record of all costs and expenses incurred, all charges made, all credits made
      and received, and all income derived in connection with the conduct of the
      Company and the operation of its business in accordance with this LLC
      Agreement.

     

    (b) Accounting
      Methods.

     

    (i) The
      Company shall maintain appropriate books and records in a manner as necessary
      to
      comply with GAAP and with the Code and the Regulations, including maintaining
      a
      Capital Account and Adjusted Capital Account for each Member.

     

    (ii) All
      amounts payable under any agreement, other than this LLC Agreement, between
      the
      Company on the one hand and the Members or their Affiliates (excluding Company)
      on the other hand, other than Distributions, shall be treated as occurring
      between Company and a Person who is not a Member within the meaning of
      Section 707(a)(1) of the Code and such amounts payable by the Company to
      any Member or such Member's Affiliates shall be considered an expense or capital
      cost, as the case may be, of the Company for income tax and financial reporting
      purposes, and shall not be considered a Distribution to such Member, including
      in maintaining such Member's Capital Account, and any such amounts payable
      by
      any Member or its Affiliates to the Company shall not, except as specifically
      contemplated by Article III,
      be
      considered a contribution to the Company, including in maintaining such Member's
      Capital Account.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    (c) Access
      to Books, Records, etc.
      Each
      Member or any agents or representatives of any Member (subject to reasonable
      safety requirements), upon reasonable notice and with reasonable frequency
      during normal business hours, may visit and inspect any of the properties of
      the
      Company and examine any information of the Company it may reasonably request
      and
      make copies of and abstracts from the financial and operating records and books
      of account of the Company, and discuss the affairs, finances and accounts of
      the
      Company with the Managing Member, all at such reasonable times and as often
      as
      such Member or any agents or representatives of such Member may reasonably
      request. The rights granted to each Member pursuant to this Section 8.1(c)
      are
      expressly subject to compliance by such Member with the reasonable
      confidentiality procedures and guidelines of the Company, as such procedures
      and
      guidelines may be established from time to time.

     

    Section
      8.2 Reports. 

     

    (a) In
      General.
      The
      Managing Member shall be responsible for the preparation of (or for causing
      the
      preparation of) financial reports of the Company and the coordination of
      financial matters of the Company with the Company Accountants. Each report
      delivered by the Company to the Members pursuant to this Section 8.2
      shall be
      accompanied by a representation of a Responsible Officer of the Managing Member
      that such report presents fairly in all material respects the information
      contained therein, subject, in the case of the reports to be delivered pursuant
      to Section 8.2(c),
      to
      year-end audit adjustments.

     

    (b) Annual
      Financial Reports.
      Within
      90 days after the end of each Fiscal Year commencing with the Fiscal Year ending
      September 30, 2007, the Managing Member shall cause to be prepared and to
      be delivered to each Member, a consolidated balance sheet as of the last day
      of
      such Fiscal Year and a consolidated income statement and consolidated statement
      of cash flows for Company for (x) in the case of the Fiscal Year ending
      September 30, 2007, the period from the Formation Date to
      September 30, 2007, and (y) in the case of any other Fiscal Year, such
      Fiscal Year, and notes associated with each, in each case prepared in accordance
      with GAAP and audited by the Company Accountants. The financial statements
      described in this Section 8.2(b)
      shall be
      accompanied by a representation of a Responsible Officer of the Managing Member
      stating that after reasonable inquiry, it has no actual knowledge of the
      occurrence of any Board Reduction Event or Liquidating Event (or any event
      which
      with the giving of notice or passage of time would reasonably be expected to
      become such an event) that is then continuing or, if it has any such actual
      knowledge, specifying each then continuing event.

     

    (c) Quarterly
      Financial Reports.
      Within
      45 days after the close of each Fiscal Quarter during any Fiscal Year beginning
      with the Fiscal Quarter ending March 31, 2007, the Managing Member shall cause
      to be prepared and to be delivered to each Member its unaudited financial
      statements consisting of a consolidated balance sheet as of the last day of
      such
      Fiscal Quarter and a consolidated income statement and a consolidated statement
      of cash flows for Company for such Fiscal Quarter, in each case prepared in
      accordance with GAAP except that such quarterly financial statements need not
      include footnote disclosure and may be subject to ordinary year-end adjustment.
      The financial statements described in this Section 8.2(c)
      shall be
      accompanied by a representation of a Responsible Officer of the Managing Member
      stating that (x) the financial statements described in this Section 8.2(c)
      present
      fairly, in all material respects, the financial position of the Company at
      the
      end of the most recently completed Fiscal Quarter and 

     

    
      
        
        

      

      
        27

        
          

        

      

      
        
        
the
        results of its operations and its cash flows for such Fiscal Quarter, in
        conformity with GAAP, subject to year end audit adjustments or requirements,
        and
        (y) after reasonable inquiry, it has no actual knowledge of the occurrence
        of any Board Reduction Event or Liquidating Event (or any event which with
        the
        giving of notice or passage of time would reasonably be expected to become
        such
        an event) that is then continuing or, if it has any such actual knowledge,
        specifying each then continuing event.

    

     

    (d) Purchase
      Option and Liquidation Date Reports.
      The
      Managing Member shall cause to be prepared and to be delivered to each Member
      (x) on any Final Payment Date, a balance sheet as of the applicable
      Mark-to-Market Measurement Date setting forth the aggregate Mark-to-Market
      Value
      for each of the Permitted Assets (a "Mark-to-Market
      Balance Sheet")
      together with a certificate by the Managing Member that such statements have
      been prepared in accordance with this LLC Agreement, subject to adjustment
      as a
      result of the audit to be provided pursuant to the following clause (y)
      and
      (y) on the date on which final distributions are made to the Members
      pursuant to Section 12.2
      hereof
      and not later than 75 days after the Purchase Date, certification by the Company
      Accountants that such statements have been prepared in accordance with this
      LLC
      Agreement.

     

    (e) Valuation
      Reports.
      The
      Managing Member shall cause to be prepared contemporaneously with any adjustment
      to the Gross Asset Values of the Company assets in accordance with clause (ii)
      of the
      definition of Gross Asset Value, reports required to determine the
      Mark-to-Market Value of such assets and (x) in the event any Permitted
      Asset is acquired by contribution or distributed by the Company, with respect
      to
      such Permitted Asset only and (y) upon the occurrence of any adjustment to
      the Gross Asset Value of all Permitted Assets, with respect to all Permitted
      Assets, and the Managing Member shall furnish such reports to each Member
      together with a certification by the Company Accountants that such reports
      have
      been prepared in accordance with this LLC Agreement.

     

    (f) Certain
      Other Information.
      The
      Managing Member shall provide to the Members a monthly report no later than
      the
      15th day of each calendar month, which report shall provide in reasonable detail
      all material financial information with respect to the preceding month;
provided
      that the
      Managing Member designated by the Majority Class A Members pursuant to
Section
      6.1
      shall
      not be required to comply with this sentence for a period of six (6) months
      following such designation. In addition, the Managing Member shall provide
      to
      the Members: (i) concurrently with the sending thereof, copies of all written
      information and reports which the Company (or any Person on its behalf) provides
      under any of the Transaction Documents and promptly following receipt thereof,
      copies of all written information and notices which the Company (or any Person
      on its behalf) receives under any of the Transaction Documents (including,
      without limitation, weekly cash flow forecasts received by the Company under
      the
      LEAF Services Agreement); (ii) as promptly as practicable, any material
      correspondence or notices to or from any governmental authority, regulatory
      or
      self regulatory agencies, or other entities with jurisdiction over the Company
      or any Subsidiary; (iii) the filing or commencement of any action, suit or
      proceeding by or before any arbitrator or Governmental Authority against or
      affecting the Company or any Affiliate thereof or any Member; (iv) as promptly
      as practicable and in any event
      within five Business Days after having knowledge of the occurrence of each
      Default (as defined in the Credit Agreement), a statement of the Managing Member
      setting forth details of such Default and the action which the Managing Member
      has taken and proposes to take with 

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        
respect
        thereto; and (v) as promptly as practicable, such other information as a
        Member
        may from time to time reasonably request.

    

     

    Section
      8.3 Tax
      Matters.
      

     

    (a) Actions
      by the Class B Member.
      The
      Managing Member is specifically authorized to act as the "Tax
      Matters Member"
      under
      the Code and in any similar capacity under state or local law. The Tax Matters
      Member is authorized to make any and all elections for federal, state, and
      local
      tax purposes including any election, if permitted by applicable law: (i) to
      adjust the basis of Company Property pursuant to Code Sections 754, 734(b)
      and 743(b), or comparable provisions of state or local law, in connection with
      Dispositions of Interests and Company Distributions; (ii) with the consent
      of the Members, to extend the statute of limitations for assessment of tax
      deficiencies against the Members with respect to adjustments to the Company's
      federal, state, or local tax returns; and (iii) to the extent provided in
      Code Sections 6221 through 6231, to represent the Company and the Members
      before taxing authorities or courts of competent jurisdiction in tax matters
      affecting the Company or the Members in their capacities as Members, and to
      file
      or cause to be filed any tax returns and execute any tax returns, agreements
      or
      other documents relating to or affecting such tax matters, including agreements
      or other documents that bind the Members with respect to such tax matters or
      otherwise affect the rights of the Company and the Members, provided
      that the
      Tax Matters Member's authority to make an election under this Section
      8.3(a)
      is
      subject to the consent of each Member for which such election could reasonably
      be expected to have an adverse impact. 

     

    (b) Tax
      Information and Filings.
      The Tax
      Matters Member shall deliver or cause to be delivered to each Member necessary
      tax information for each Member's estimated quarterly tax filings within 45
      days
      of the end of the applicable quarter. The Tax Matters Member shall deliver
      or
      cause to be delivered to each Member: (i) on or prior to November 30 of
      each Fiscal Year, the Tax Matters Member's good faith estimate of the amount
      of
      such Member's allocable share of the Company's taxable income or loss for the
      preceding Fiscal Year and (ii) as soon as practicable after the end of each
      Fiscal Year of the Company but not later than April 30th of the next succeeding
      Fiscal Year, necessary tax information for each Member's annual tax filings.
      The
      Tax Matters Member shall file or cause to be filed tax or information returns
      and all other filings for the Company prepared in accordance with the Code,
      the
      Regulations and applicable state and local tax laws. The Tax Matters Member
      shall use reasonable efforts to provide the Members with details concerning
      the
      foregoing information upon the reasonable inquiry of a Member.

     

    (c) Tax
      Classification.

     

    (i) The
      Tax
      Matters Member shall take such action as may be required under the Code and
      Regulations to cause Company to be treated as a partnership for federal income
      tax purposes.

     

    (ii) To
      the
      extent Section
      8.3(c)(i)
      does not
      govern the state and local tax classification of the Company, the Tax Matters
      Member shall take such action as may be required under applicable state and/or
      local law to cause Company to be treated as, and in a manner consistent with
      a
      partnership (or the functional equivalent thereof) for state 

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

    and
      local
      income and franchise tax purposes; provided,
      that
      the Tax Matters Member shall not take any action under this clause (c)(ii)
      which
      would be inconsistent with its obligations under Section 8.3(c)(i).

     

     

    ARTICLE
      IX

     

    AMENDMENTS;
      MEETINGS

     

    Section
      9.1 Amendments.
      Amendments to this LLC Agreement may be proposed by any Member. Following such
      proposal, the Managing Member shall submit to the Members a verbatim statement
      of any proposed amendment once counsel for the Company shall have approved
      of
      the same in writing as to form, and the Managing Member shall include in any
      such submission a recommendation as to the proposed amendment. The Managing
      Member shall seek the written vote of the Members on the proposed amendment
      or
      shall call a meeting to vote thereon and to transact any other business that
      it
      may deem appropriate. Except as otherwise provided in Section 13.1, no amendment
      shall be adopted and be effective as an amendment to this LLC Agreement unless
      it receives the affirmative vote of all of the Members. 

     

    Section
      9.2 Meetings
      of the Members.

     

    (a) Meetings
      of the Members may be called by the Managing Member and shall be called upon
      the
      written request of any Member. The request shall state the nature of the
      business to be transacted. Subject to other requirements specified herein
      regarding notice periods, notice of any such meeting shall be given to all
      Members not less than five Business Days nor more than 30 days prior to the
      date
      of such meeting, unless in any such case such notice has been waived in writing
      by each Member who did not receive notice as required hereby. Members may vote
      in person, by proxy or by telephone at such meeting. Whenever the vote or
      consent of Members is permitted or required under this LLC Agreement, such
      vote
      or consent may be given at a meeting of Members or may be given in accordance
      with the procedure prescribed in Section 9.3.
      

     

    (b) For
      the
      purpose of determining the Members entitled to vote on, or to vote at, any
      meeting of the Members or any adjournment thereof, the Managing Member or the
      Member requesting such meeting may fix, in advance, a date as the record date
      for any such determination. Such date shall not be more than thirty days nor
      less than one Business Day before any such meeting.

     

    (c) Each
      Member may authorize any Person or Persons to act for it by proxy on all matters
      in which the Member is entitled to participate, including waiving notice of
      any
      meeting, or voting or participating at a meeting. Every proxy must be signed
      by
      the Member or its attorney-in-fact.
      No proxy shall be valid after the expiration of eleven months from the date
      thereof unless otherwise provided in the proxy. Every proxy shall be revocable
      at the pleasure of the Member executing it or as provided under the terms of
      such proxy.

     

    (d) Each
      meeting of Members shall be conducted by the Managing Member or such other
      Person as the Managing Member may appoint pursuant to such rules for the conduct
      of the meeting as the Managing Member or such other Person deems
      appropriate.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

    Section
      9.3 Manner
      of Consent.
      In
      the
      event the consent of one or more Members is required for any action to be taken
      by the Company, such consent may be given at a meeting, which may be attended
      or
      conducted by conference telephone call, or provided in a writing executed by
      such Members.

     

    ARTICLE
      X

     

    TRANSFERS
      OF INTERESTS

     

    Section
      10.1 Restriction
      on Dispositions of Interests.

     

    (a) Dispositions
      of Class A Member Interests.
      Subject
      to Section 10.1(c)
      and to
      the Unitholders Agreement and except as provided in Article XI,
      no
      Class A Member shall Dispose of its Class A Interest or resign from the
      Company without the prior written consent of the Majority Class B Members
      and (so long as the Initial Class A Member and its Affiliates are the Majority
      Class A Members) the Majority Class A Members; provided
      that no
      consent of the Majority Class B Members shall be required if (x) a Board
      Reduction Event shall have occurred or (y) with respect to a Disposition of
      a
      Class A Member Interest by the Initial Class A Member or any of its Affiliates
      if, after giving effect to such Disposition, the Initial Class A Member and
      its
      Affiliates continue to own a majority of the Class A Member Interests; and
      provided
      further,
      that a
      Class A Member may Dispose of a Class A Member Interest to any Affiliate of
      such Class A Member in a transfer that complies with Section 10.1(c).

     

    (b) Dispositions
      of Class B Member Interests.
      (i)
      Subject to Section 10.1(c)
      and to
      the Unitholders Agreement, no Class B Member shall Dispose of its Class B
      Interest or resign from the Company without the prior written consent of the
      Class A Noteholder or the Majority Class A Members, as the case may be;
provided,
      that a
      Class B Member may Dispose of a Class B Member Interest to any Affiliate of
      such Class B Member in a transfer that complies with Section 10.1(c).

     

    (c) Prohibited
      Transfers.
      No
      Disposition of an Interest that is a Disqualified Transfer shall be permitted
      by
      this Section 10.1.

     

    (d) Class
      B Member Proxy.
      If as a
      result of any transfer permitted by this Section
      10.1,
      there
      is more than one Class B Member, all Class B Members shall designate a single
      Class B Member as their attorney-in-fact, in its name and stead, to give or
      withhold all consents and approvals that each Class B Member shall be entitled
      to give or withhold, and to exercise all voting
      rights and other rights, and take all other actions, that such Class B Member
      is
      entitled to take pursuant to the provisions of this LLC Agreement until such
      time as such designation and appointment is revoked in writing, and this
Section
      10.1(d)
      shall
      be, to the extent required by Applicable Law to give it effect, construed as
      a
      proxy in favor of such designated Class B Member. The Class B Members or any
      of
      them shall provide a copy of any such designation or revocation to the Class
      A
      Members or the Class A Noteholder, as the case may be, promptly upon such
      designation or revocation being effected.

     

    (e) Miscellaneous.
      Following any transfer by a Member of all of its Interest, such Member shall
      cease to be a Member. Upon any transfer of any Interest in accordance with
      this

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    Section
      10.1,
      the
      transferee of such Interest will, without further action or consent by any
      other
      Member, be admitted as a Class A Member or Class B Member, as the case may
      be, of the Company upon such transferee's execution and delivery to the Company
      and each Member of (to the extent such transferee is not already a party
      thereto) a counterpart to this Agreement and the Unitholders
      Agreement.

     

    Section
      10.2 Prohibited
      Dispositions.
      To the
      fullest extent permitted by law, any purported Disposition of an Interest that
      is not made in accordance with Section
      10.1
      or the
      Unitholders Agreement shall be null and void and of no effect whatever;
provided,
      however,
      that,
      if the Company is required to recognize a Disposition of an Interest that is
      not
      made in accordance with Section
      10.1
      or the
      Unitholders Agreement, the transferred Interest shall be strictly limited to
      the
      transferor's rights to allocations and distributions as provided by this LLC
      Agreement with respect to the transferred Interest, which allocations and
      distributions may be applied (without limiting any other legal or equitable
      rights of the Company) to satisfy any debts or obligations, or liabilities
      for
      damages that the transferor or transferee of such Interest may have to the
      Company.

     

    To
      the
      fullest extent permitted by law, in the case of a Disposition or attempted
      Disposition of an Interest that is not made in accordance with Section
      10.1
      or the
      Unitholders Agreement, the parties engaging or attempting to engage in such
      Disposition shall be liable to indemnify and hold harmless the Company and
      the
      other Members from all losses, costs, liability, and damages that any of such
      indemnified Persons may incur (including incremental tax liability and
      reasonable lawyers' fees and expenses) as a result of such Disposition or
      attempted Disposition and efforts to enforce the indemnity granted
      hereby.

     

    Section
      10.3 Representation
      on Transfer.
      Any
      Person to whom an Interest is transferred in accordance with the terms of this
      LLC Agreement shall be deemed to make the representations and warranties
      provided for in Section
      3.5
      to the
      Company and each other Member. 

     

    ARTICLE
      XI

     

    PURCHASE
      AND SALE RIGHTS

     

    Section
      11.1 Purchase
      Option. 

     

    (a) Following
      (i) a material breach by a Member of a term of this LLC Agreement which is
      not
      promptly cured, (ii) deadlock between directors of the Company entitled to
      vote
      as to a matter requiring the approval of the Required Directors, (iii) a change
      in Applicable Laws that makes participation by the Class A Noteholder or a
      Member in this LLC Agreement illegal or subject to a material increase in
      regulatory or tax costs for the Class A Noteholder or such Member, (iv)
      Bankruptcy of the Class A Noteholder or a Member, (v) termination of the LEAF
      Services Agreement, (vi) failure by the Lender to satisfy a funding obligation
      under the Credit Agreement within five Business Days of any such obligation
      becoming due thereunder, (vii) failure by LEAF Ventures, LLC to comply with
      its
      obligations under the Participation Agreement to purchase a 10% participation
      interest in any Advance made by the Lender under the Credit Agreement within
      five Business Days of the making of such Advance (except to the 

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        
extent
        that, after giving effect to such purchase, the aggregate outstanding principal
        amount of participation interests held by LEAF Ventures, LLC in Advances
        made
        under the Credit Agreement would exceed $3,000,000), (viii) failure by the
        Company to comply with any of the operating or financial covenants set forth
        in
        Sections 5.02 or 5.03 of the Credit Agreement or to satisfy the EBITDA Funding
        Condition (as defined in the Credit Agreement) on any date, (ix) the tenth
        anniversary of this LLC Agreement or (x) delivery of a Liquidation Notice
        (any
        of the foregoing events described in clauses (i) through (x), a "Triggering
        Event"),
        any
        Relevant Member (the Relevant Member initiating such election, the "Electing
        Member")
        may
        elect to purchase or cause the purchase of the entire Investment Interest
        of the
        other Members and the Class A Noteholder (such other Members and the Class
        A
        Noteholder, the "Other
        Members",
        and
        their Investment Interest, the "Other Members'
        Interest");
        provided,
        that
        the Electing Member makes an Irrevocable Election and gives written notice
        (a
        "Purchase
        Option Notice")
        to the
        Other Members.

    

     

    (b) Any
      Purchase Option Notice shall include the following:

     

    (i) a
      statement that all of the Other Members' Interest is to be purchased;

     

    (ii) a
      statement specifying the date on which the closing of the purchase and sale
      of
      the Other Members' Interest shall occur (the "Purchase
      Date"),
      which
      Purchase Date shall not be less than 60 days nor more than 120 days from the
      date of the occurrence of the first such Triggering Event; and

     

    (iii) the
      price
      at which the Electing Member is offering to purchase the Other Members'
      Interest, and the price at which the Electing Member would be willing to sell
      its own Investment Interest to the Other Members (each thereof, a "Purchase
      Price").

     

    (c) 
      Upon the
      receipt of a Purchase Option Notice, the Other Members may either (i)
      elect
      to sell, on the Purchase Date, the Other Members' Interest to the Electing
      Member at the relevant Purchase Price or (ii) deliver an Irrevocable Election
      to
      the Electing Member evidencing the
      Other
      Members' election to purchase, at the relevant Purchase Price and on the
      Purchase Date, all but not less than all (in proportion to the Percentage
      Interests (in the case of the Class A Note, as though Converted)) of the
      Investment Interest owned by the Electing Member.

     

    (d) Purchase.
      The
      closing of the purchase and sale of the Investment Interest to be sold as
      aforesaid (the "Purchased
      Interest")
      shall
      occur on the Purchase Date and at such place as is mutually agreeable to the
      Class A Noteholder (if applicable) and the Members, or upon the failure to
      agree, at the principal place of business of the Company. On the Purchase Date,
      the Class A Noteholder and/or Member(s) selling the Purchased Interest (the
      "Selling
      Members")
      shall,
      upon payment of the relevant Purchase Price, deliver to the Member(s) or Class
      A
      Noteholder, as the case may be (the "Purchasing
      Member(s)")
      or
      their designee(s) purchasing the Purchased Interest all of their right, title
      and interest in and to the Purchased Interest purchased, free and clear of
      any
      liens, claims, encumbrances, security interests or options by delivery of
      endorsed Certificates of Interest and/or the Class A Note, as the case may
      be,
      and by (in the case of Interests) executing instruments of conveyance attached
      hereto as Exhibit
      C.
      To the
      fullest extent permitted by law, the transfer of the Purchased Interest shall
      be
      made "as-is, where is" without any representation or warranty other than the
      absence of liens as aforesaid. 

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        
The
        Purchasing Member(s) shall pay or cause to be paid the reasonable costs of
        such
        Disposition and closing, including attorneys' fees and filing fees of the
        Selling Members. For the avoidance of doubt, pending the transfer of the
        Purchased Interest, the Managing Member shall continue to comply with its
        obligations under this Agreement and otherwise act in furtherance of the
        purposes of the Company as set forth in Section
        1.3.

    

     

    (e) Treatment
      as Purchase Under Section 741.
      The
      Members agree to treat the Disposition of Interests pursuant to this
Section 11.1
      as a
      purchase and sale under Section 741 of the Code and not as a retirement
      under Section 736 of the Code.

     

    ARTICLE
      XII

     

    DISSOLUTION
      AND WINDING UP

     

    Section
      12.1 Liquidating
      Events.
      The
      Company shall dissolve and commence winding up and liquidating upon the first
      to
      occur of any of the following (collectively, "Liquidating
      Events"):

     

    (a) Liquidation
      Notice.
      The
      date on which, pursuant to Section 12.10,
      a
      Liquidation Notice becomes effective to cause a Liquidating Event.

     

    (b) Unanimous
      Vote.
      The
      unanimous vote of the Members to dissolve, wind up, and liquidate
      Company.

     

    (c) Illegality,
      etc.
      The
      happening of any event that makes it unlawful, impossible, or impractical to
      carry on the business of the Company or the Delaware Court of Chancery has
      entered a decree pursuant to Section 18-802 of the LLC Act.

    (d) Last
      Member. 
      At any
      time there are no members of the Company unless the Company is continued without
      dissolution in a manner permitted by the LLC Act.

     

    (e) Triggering
      Event.
      If,
      within ten days of the occurrence of a Triggering Event, (i) no Electing Member
      shall have delivered a Purchase Option Notice to the Other Members pursuant
      to Section
      11.1(a),
      and
      (ii) at such time the Bankruptcy
      of the Managing Member shall be continuing.

     

    The
      Members hereby agree that, notwithstanding any waivable provision of the LLC
      Act, the Company shall not dissolve prior to the occurrence of a Liquidating
      Event. 

     

    Section
      12.2 Winding
      Up. Upon
      the
      occurrence of a Liquidating Event, the Company shall continue solely for the
      purposes of winding up its affairs in an orderly manner, liquidating its assets,
      and satisfying the claims of its creditors and thereafter Members, and no Member
      shall take any action with respect to the Company that is inconsistent with
      the
      winding up of the Company's business and affairs; provided
      that all
      covenants contained in this LLC Agreement and obligations provided for in this
      LLC Agreement shall continue to be fully binding upon the Members until such
      time as Company Property has been distributed pursuant to 

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        
this
        Section 12.2
        and the
        Certificate of Formation has been canceled pursuant to the LLC Act. The
        Liquidator shall be responsible for overseeing the winding up and dissolution
        of
        the Company. On the occurrence of a Liquidating Event, the Gross Asset Values
        of
        all of the Company's assets shall be adjusted to equal their respective
        Mark-to-Market Values as of the Mark-to-Market Measurement Date and any Net
        Income, Gross Income, Net Losses and other items of income, loss, deduction,
        gain and credit of the Company shall be allocated among the Members as of
        such
        Mark-to-Market Measurement Date in accordance with Article IV.
        The
        Liquidator shall take full account of the Company's liabilities and Company
        Property and, except as otherwise provided in Section 12.3,
        shall,
        within 75 days of the occurrence of a Liquidating Event or, in the event
        that
        the certification by the Company Accountants required by Section 8.2(d)
        has not
        been delivered by such 75th day, as soon as practicable after delivery of
        such
        accountant's certification but in any event within 90 days of such Liquidating
        Event, cause Company Property or the proceeds from the sale or disposition
        thereof (as determined pursuant to Section 12.9),
        to the
        extent sufficient therefor, to be applied and distributed, to the maximum
        extent
        permitted by Applicable Law and notwithstanding anything in this LLC Agreement
        to the contrary, in the following order (without
        duplication):

    

     

    (a) First,
      to
      creditors of the Company (including any Class A Member to the extent such Class
      A Member is a creditor), in satisfaction of all of the Company's debts and
      liabilities (whether by payment or making provision for payment thereof);
      and

     

    (b) Second,
      the
      balance to the Members in accordance with Article V.

     

    Section
      12.3 No
      Restoration of Deficit Capital Accounts; Compliance With Timing Requirements
      of
      Regulations.
      In the
      event the Company is "liquidated" within the meaning of Regulation
§ 1.704-1(b)(2)(ii)(g),
      (x) distributions shall be made pursuant to this Article XII
      to the
      Members who
      have
      positive balances in their Capital Accounts in proportion to and to the extent
      of such positive balances in compliance with Regulation
§ 1.704-1(b)(2)(ii)(b)(2),
      and
      (y) if a Member's Capital Account has a deficit balance (after giving
      effect to all contributions, distributions, and allocations for all taxable
      years, including the taxable year during which such liquidation occurs), the
      Member whose Capital Account has a negative balance shall have no obligation
      to
      contribute to the capital of the Company the amount necessary to restore such
      deficit balance to zero, and such deficit shall not be considered a debt owed
      to
      the Company or to any other Person for any purpose whatsoever.

     

    Section
      12.4 Deemed
      Distribution and Recontribution.
      Notwithstanding any other provision of this Section
      12,
      in the
      event the Company is liquidated within the meaning of Regulation
§1.704-1(b)(2)(ii)(g)
      but
      no
      Liquidating Event has occurred, Company Property shall not be liquidated, the
      Company's debts and other liabilities shall not be paid or discharged, and
      the
      Company's affairs shall not be wound up. Instead, solely for federal income
      tax
      purposes, the Company shall be deemed to have contributed all of Company
      Property and liabilities to a new limited liability company in exchange for
      an
      interest in such new company and, and immediately thereafter, the Company will
      be deemed to have been liquidated by distributing interests in the new company
      to the Members.

     

    Section
      12.5 Rights
      of
      Members.
      Each
      Member shall look solely to Company Property for the return of its Capital
      Contribution and, except as otherwise provided in 

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        
Section 12.9,
        shall
        have no right or power to demand or receive property other than Cash from
        Company.

    

     

    Section
      12.6 Notice
      of Dissolution.
      The
      Managing Member shall promptly provide written notice to each of the Members
      of
      the occurrence of a Liquidating Event known to it in accordance with
Section 6.5(b).

     

    Section
      12.7 Character
      of Liquidating Distributions.
      All
      payments made in liquidation of the Interest of a retiring Member, other than
      payments made under Section
      12.2,
      shall
      be made in exchange for the interest of such Member in Company Property pursuant
      to Code § 736(b)(1), including the interest of such Member in goodwill of
      the Company.

     

    Section
      12.8 The
      Liquidator. 

     

    (a) Definition.
      The
      "Liquidator"
      shall
      mean the Person appointed as Liquidator by the Company, subject to the approval
      of the Required Directors.

     

    The
      Liquidator shall have the rights set forth in Section 18-803(b) of the LLC
      Act and exclusively shall have the rights, power and authority of the Managing
      Member necessary or appropriate
      in its discretion to effect the dissolution, winding up and liquidation of
      the
      Company. The actions of the Liquidator shall for all purposes be the actions
      of
      the Company.

     

    (b) Fees.
      The
      Company is authorized to pay a reasonable fee to the Liquidator for its services
      performed pursuant to this Article XII
      and to
      reimburse the Liquidator for its reasonable costs and expenses incurred in
      performing those services.

     

    (c) Resignation
      of Liquidator.
      At any
      time any Liquidator may, in its discretion, resign as Liquidator and the
      Managing Member shall appoint a replacement Liquidator, subject to the approval
      of the Required Directors.

     

    Section
      12.9 Form
      of Liquidating Distributions.
      Except
      as provided in this Section 12.9,
      for
      purposes of making distributions required by Section 12.2,
      the
      Liquidator may determine whether to distribute all or any portion of Company
      Property in-kind or to sell all or any portion of Company Property and
      distribute the proceeds therefrom, provided
      that the
      Liquidator shall not distribute Company Property other than Cash to any Member
      without its consent, and the Liquidator shall be required to reduce Company
      Property to Cash to the extent necessary to make distributions to the Members
      pursuant to Section 12.2
      in Cash.
      In the case of a liquidation in kind, the amount distributed shall be deemed
      to
      equal to the Mark-to-Market Value of the property distributed on the date of
      such distribution.

     

    Section
      12.10 Liquidation
      Notice.
      The
      Class A Noteholder or any Class A Member (at the direction of the Majority
      Class A Members) may, at any time on or after the occurrence of a Board
      Reduction Event, deliver to the Managing Member and the Class B Members a
      written notice (a "Liquidation
      Notice")
      stating that such Board Reduction Event constitutes a Liquidation Event;
provided,
      however,
      that:
      (i) the delivery of such Liquidation Notice shall not become effective to
      cause a Liquidating Event until the expiration of a period of 90 days from
      the
      date of delivery of such Liquidation Notice; (ii) the Class A Noteholder or
      Majority Class A Members, as the case may be, may rescind such Liquidation
      Notice by 

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        
delivering
        to the Managing Member and the Class B Members a rescission notice prior to
        the end of such 90 day period; and (iii) if a Purchase Option Notice has
        been delivered in accordance with Section
        11.1(a)
        prior to
        the expiration of such 90 day period, such Liquidation Notice shall not become
        effective to cause a Liquidating Event until the day after the Purchase Date
        specified in such notice (and then if, but only if, the Class A Noteholder
        or
        Initial Class A Member or any of their Affiliates shall continue to be the
        Class
        A Noteholder or Class A Members, as the case may be, after giving effect
        to the
        purchase of Investment Interests effected in connection with such Purchase
        Option Notice).

    

     

    Section
      12.11 Allocations
      During Period of Liquidation.
      For the
      avoidance of doubt, during the period commencing on the first day of the Fiscal
      Year during which a Liquidation Event has occurred and ending on the date on
      which all of the assets of the Company have been distributed to the Members
      pursuant to Section 12.2 hereof, the Members shall continue to share in Net
      Income, Net Losses, and other items of Company income, gain, loss or deduction
      in the manner provided in Article IV hereof.

     

              Section
      12.12 Bankruptcy.
      Notwithstanding any other provision of this Agreement, the Bankruptcy of a
      Member shall not cause such Member to cease to be a member of the Company and
      upon the occurrence of such an event, the Company shall continue without
      dissolution.

     

    ARTICLE
      XIII

     

    MISCELLANEOUS

     

    Section
      13.1 Amendments.
      No
      amendment or waiver of any provision of this LLC Agreement, and no consent
      to
      any departure by any party herefrom, shall in any event be effective unless
      the
      same shall be in writing and signed by the Majority Class A Members (at any
      time
      following Conversion of the Class A Note) and the Majority Class B Members;
      provided
      that (a)
      no such amendment, waiver or consent having an effect on any Member materially
      worse than the effect of such amendment, waiver or consent on the Majority
      Members of any Class shall be effective without the consent of such Member
      and
      (b) no such amendment, waiver or consent shall (i) change the definition of
      "Majority Class A Members", "Majority Class B Members" or "Majority Members"
      without the consent of all of the Members of the applicable Class, (ii) change
      this Section 13.1 without the consent of each Member, or (iii) increase or
      accelerate the payment of any capital contribution obligation of, or decrease
      the amount or delay the payment of any Distribution payable to, any Member,
      or
      limit any Member's right to participate in the election of directors
      representing the Class of such Member, without, in any such case under this
      clause (iii), the consent of such Member; and provided further
      that no
      such amendment, waiver or consent prior to the Conversion of the Class A Note
      shall be effective unless consented to in writing by the Class A Noteholder.
      No
      such waiver of a provision or consent to a departure in any one instance shall
      be construed as a further or continuing waiver of or consent to subsequent
      occurrences, or a waiver of any other provision or consent to any other
      departure.

     

    Section
      13.2 Notices.
      Any
      notice, payment, demand, or communication required or permitted to be given
      by
      any provision of this LLC Agreement shall be in writing or

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        
by
        facsimile and shall be deemed to have been delivered, given, and received
        for
        all purposes (a) if delivered personally to the Person or to an officer of
        the Person to whom the same is directed or (b) when the same is actually
        received (if during the recipient's normal business hours if during a Business
        Day, or, if not, on the next succeeding Business Day), if sent by facsimile
        (followed by a hard copy of the facsimiled communication sent by certified
        mail,
        postage and charges prepaid), or by courier or delivery service or by mail,
        addressed, if to any Member or the Managing Member, to such person at its
        address or facsimile number set forth on Schedule
        3.2
        hereto
        or to such other address as such Person may from time to time specify by
        notice,
        and if to any other Person, at its address specified in the Transaction Document
        pursuant to which such Person is to receive notice or by notice given in
        the
        manner provided herein to each other Person entitled to receive notice
        hereunder, or, in each case, to such other address (and with copies to such
        other Persons) as the Person entitled to receive notice hereunder shall specify
        by notice given in the manner provided herein to the other Persons entitled
        to
        receive notice under the relevant Transaction Document.

    

              Section
      13.3 No
      Waiver; Cumulative Remedies.
      No
      failure on the part of any Person to exercise, and no delay in exercising,
      any
      right under this LLC Agreement shall operate as a waiver thereof; nor shall
      any
      single or partial exercise of any right under this LLC Agreement preclude any
      other or further exercise thereof or the exercise of any other right. The
      remedies provided in this LLC Agreement are cumulative and not exclusive of
      any
      remedies provided by Applicable Law.

     

    Section
      13.4 Waiver
      of Jury Trial.
      EACH
      PARTY TO THIS LLC AGREEMENT HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY
      JURY
      IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT
      OR
      OTHERWISE) ARISING OUT OF OR RELATING TO THIS LLC AGREEMENT OR ANY OF THE
      TRANSACTIONS CONTEMPLATED HEREBY.

     

    Section
      13.5 Counterparts.
      This
      LLC Agreement may be executed in any number of counterparts and by different
      parties thereto in separate counterparts, each of which when so executed shall
      be deemed to be an original and all of which taken together shall constitute
      one
      and the same agreement. To the fullest extent permitted by law, this LLC
      Agreement may be delivered by facsimile transmission of the relevant signature
      pages thereof.

     

    Section
      13.6 Survival
      of Representations, Warranties and Indemnities: Entire Agreement.
      All
      representations, warranties and indemnities and undertakings to pay costs and
      expenses contained in this LLC Agreement shall survive (a) the execution
      and delivery of this LLC Agreement and the other Transaction Documents and
      (b) performance by each party of its Obligations under this LLC Agreement
      and each other Transaction Document to which it is a party.

     

    Section
      13.7 Severability.
      Any
      provision of this LLC Agreement that is prohibited by or unenforceable in any
      relevant jurisdiction shall, as to such jurisdiction, be ineffective to the
      extent of such prohibition or unenforceability without invalidating the
      remaining provisions thereof, and any such prohibition or unenforceability
      in
      any jurisdiction shall, to the fullest extent permitted by law, not invalidate
      or render unenforceable such provision in any other jurisdiction.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

    Section
      13.8 Construction.
      The
      parties intend that every covenant, term, and provision of each Transaction
      Document shall be construed simply according to its fair meaning and not
      strictly for or against any party thereto.

     

    Section
      13.9 Determination
      of Capital Accounts.
      In the
      event any Class A Member or any Class B Member disputes in an
      appropriate proceeding the determination of its Capital Account, an independent
      determination of the Members' Capital Accounts shall be made without any special
      weight being given to any prior determination made within the discretion of
      the
      Managing Member.

     

    Section
      13.10 Governing
      Law.
      THE LAW
      OF THE STATE OF DELAWARE (WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES) SHALL
      GOVERN THE VALIDITY OF THIS LLC AGREEMENT, THE CONSTRUCTION OF ITS TERMS, AND
      THE INTERPRETATION OF THE RIGHTS AND DUTIES OF THE MEMBERS.

     

    Section
      13.11 Waiver
      of Action for Partition.
      Each of
      the Members irrevocably waives any right that it may have to maintain any action
      for partition with respect to any of Company Property. 

     

    Section
      13.12 Consent
      to Jurisdiction.
      Each
      Member (i) irrevocably submits to the jurisdiction of any Delaware State
      court or federal court sitting in Wilmington, Delaware in any action arising
      out
      of this LLC Agreement, (ii) agrees that all claims in such action may be
      decided in such court, (iii) waives, to the fullest extent it may
      effectively do so, the defense of an inconvenient forum and (iv) to the
      fullest extent permitted by law, consents to the service of process by mail.
      A
      final judgment in any such action shall be conclusive and may be enforced in
      other jurisdictions. Nothing herein shall affect the right of any party to
      serve
      legal process in any manner permitted by law or affect its right to bring any
      action in any other court.

     

    Section
      13.13 Third
      Party Beneficiaries.
      The
      covenants contained herein are made for the benefit of the parties hereto and
      permitted successors and assigns of such parties as specified herein, and
      (except as expressly specified herein) shall not be construed as having been
      intended to benefit any third party not a party to this Agreement.

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

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

     

    CLASS
      A NOTEHOLDER 

    (executing
      and delivering this LLC Agreement not as a Member, but solely for the limited
      initial purposes set forth in Section 1.9):

     

    DBAH
      CAPITAL LLC

     

    By: ______________________________

    Name:

    Title:

     

    By: ______________________________

    Name:

    Title:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    INITIAL
      CLASS B MEMBER:

     

    LEAF
      VENTURES, LLC

    By: LEAF
      Financial Corporation

    Its
      Managing Member

    

    By:____________________________________
      

           
      Name:

    Title:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      3.2

     

    
      	
              Class
                A Noteholder

               

            	
              Address

               

            
	
              DBAH
                Capital LLC

               

            	
              60
                Wall Street

              New
                York, NY 10005

            

    

    

     

    
      	
              Initial
                Class B Member

               

            	
              Address

               

            	
              Capital
                Commitment

               

            	
              Number
                and Class

              of
                Units

            
	
              LEAF
                Ventures, LLC

               

            	
              c/o
                LEAF Financial Corporation

              1818
                Market Street

              9th
                Floor

              Philadelphia,
                PA 

              19103

            	
              $2,500,000

               

            	
              50
                Class B Units

               

            

    

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Schedule
      6.4(a)

     

    Initial
      Board Observers and Board of Directors

     

    Board
      Observers Appointed by Class A Noteholder

     

    Spring
      Hollis

     

    Todd
      Hirsch

     

    Directors
      Appointed by Class B Member

     

    Crit
      DeMent

     

    Robert
      K.
      Moskovitz

     

    Miles
      Herman

     

    Independent
      Director

     

    Elvran
      Glazer

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    ANNEX
      A TO

    LIMITED
      LIABILITY COMPANY AGREEMENT OF

    MERIT
      CAPITAL ADVANCE, LLC

     

    DEFINITIONS
      AND RULES OF CONSTRUCTION

     

    SECTION
      1.01 Definitions.
      Capitalized terms used in this Annex A
      and,
      except as otherwise expressly provided in any Transaction Document with respect
      to specific capitalized or other terms used in such Transaction Document,
      capitalized terms used in the Transaction Documents and all appendices,
      schedules and exhibits thereto, shall in each case have the respective meanings
      given to them in this Section 1.01.
      Not all
      of the terms defined in this Annex A
      are used
      in any particular Transaction Document.

     

    "Additional
      Member"
      is
      defined in Section
      3.3(c)(i).

     

    "Adjusted
      Capital Account"
      means,
      with respect to any Member, the balance, if any, in such Member's Capital
      Account as of the end of the relevant Allocation Period, after giving effect
      to
      the following adjustments:

     

    (i) credit
      to
      such Capital Account any amounts that such Member is obligated to contribute
      or
      deemed to be obligated to contribute pursuant to the penultimate sentences
      of
      Regulation §§ 1.704-2(g)(1) and 1.704-2(i)(5); and 

     

    (ii) debit
      to
      such Capital Account the items described in Regulation
§§ 1.704-1(b)(2)(ii)(d)(4),
      1.704-1(b)(2)(ii)(d)(5)
      and
      1.704-1(b)(2)(ii)(d)(6).

     

    The
      foregoing definition of Adjusted Capital Account is intended to comply with
      the
      provisions of Regulation § 1.704-1(b)(2)(ii)(d)
      and
      shall be interpreted consistently therewith.

     

    "Advance"
      is
      defined in the Credit Agreement.

     

    "Affiliate"
      means,
      with respect to any Person, any other Person which, directly or indirectly,
      controls, is controlled by or is under common control with such Person. For
      purposes of any provision in the LLC Agreement limiting the ability of the
      Company or any Member to enter into transactions with Affiliates, a Person
      shall
      be deemed to be "controlled by" any other Person if such other Person possesses,
      directly or indirectly, power
      (a) to
      vote 10% or more of the securities (on a fully diluted basis) having
      ordinary voting power for the election of directors or managing general
      partners, or (b)
      to
      direct or cause the direction of the management and policies of such Person
      whether by contract or otherwise.

     

    "Allocation
      Period"
      means
      the annual period beginning on January 1 of each year; provided,
      that
      (i) the Allocation Period for the first year of the Company shall commence
      on the Closing Date and end on December 31, 2007 and (ii) in the year
      in which the Company is liquidated, the final Allocation Period shall end on
      the
      date the Company is liquidated.

     

    "Applicable
      Law"
      means
      all applicable laws, statutes, treaties, rules, codes, ordinances, regulations,
      permits, certificates, and orders, all binding interpretations thereof, and
      the
      related

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    requirements
      and mandatory conditions of licenses and permits, of any governmental authority,
      and judgments, decrees, injunctions, writs, orders, or like action of any court,
      arbitrator or other administrative, judicial or quasi-judicial tribunal or
      agency of competent jurisdiction.

     

    "Applicable
      Rate"
      means,
      for any Allocation Period, the highest effective marginal combined U.S. federal,
      state and local income tax rate (taking into account any deductions and/or
      credits relating to the payment of state and local taxes and the limitations
      on
      deductibility imposed by sections 55, 67 and 68 of the Code for purposes of
      computing federal taxable income) applicable to individuals or corporations
      under the Code and the laws of New York state and city on ordinary income or
      capital gain, as the case may be. In the case of the Initial Class A Member
      and
      any Affiliate thereof which is a Class A Member, Applicable Rate shall also
      take
      into account any income tax imposed under section 11-503 of the New York City
      Administrative Code.

     

    "Bankruptcy"
      means,
      with respect to any Person, a Voluntary Bankruptcy or an Involuntary Bankruptcy.
      A "Voluntary
      Bankruptcy"
      means,
      with respect to any Person: (a) (i)  the failure of such Person
      generally to pay its debts as such debts become due or (ii) an admission in
      writing by such Person of its inability to pay its debts generally or a general
      assignment by such Person for the benefit of creditors; (b) the filing of
      any petition by such Person seeking to adjudicate it a bankrupt or insolvent,
      or
      seeking for itself any liquidation, winding up, reorganization, arrangement,
      adjustment, protection, relief, or composition of such Person or its debts
      under
      any Applicable Law relating to bankruptcy, insolvency or reorganization or
      relief of debtors, or seeking, consenting to, or acquiescing in the entry of
      an
      order for relief or the appointment of a receiver, trustee, custodian or other
      similar official for such Person or for any substantial part of its property
      or
      the filing of an answer or other pleading admitting or failing to contest the
      allegations of a petition filed against it in any proceeding of the foregoing
      nature; or (c) action taken by such Person to authorize any of the actions
      set forth above. An "Involuntary
      Bankruptcy"
      means,
      with respect to any Person, without the consent or acquiescence of such Person,
      the entering of an order for relief or approving a petition for relief or
      reorganization or any other petition seeking any reorganization, arrangement,
      composition, readjustment, liquidation, dissolution or other similar relief
      under any present or future bankruptcy, insolvency or similar Applicable Law,
      or
      the filing of any such petition against such Person, that shall not be dismissed
      or stayed within 60 days, or, without the consent or acquiescence of such
      Person, the entering of an order appointing a trustee, custodian, receiver
      or
      liquidator of such Person or of all or any substantial part of the property
      of
      such Person that shall not be dismissed or stayed within 60 days. With respect
      to the Members, this definition is intended to supersede the definition of
      Bankruptcy and similar events set forth in Sections 18-101(1) and 18-304 of
      the LLC Act. 

     

    "Board
      Observer"
      is
      defined in Section
      6.4(a).

     

    "Board
      of Directors"
      is
      defined in Section
      6.4(a)
      of the
      LLC Agreement.

     

    "Board
      Reduction"
      means
      the removal of one of the two directors appointed by the Majority Class B
      Members following a Board Reduction Event (at any time following the Conversion
      of the Class A Note) as provided in Section
      6.4
      of the
      LLC Agreement.

    
      
        
        

      

      
        A-2

        
          

        

      

      
        
        

      

    

    "Board
      Reduction Event"
      means
      the occurrence and continuance of any of the following events and the failure
      of
      any such event to be cured prior to a Board Reduction:

     

    (i)
      the
      failure of a Class B Member (including in its capacity as Managing Member)
      to:
      (1) make a material Capital Contribution when required under the LLC Agreement,
      (2) pay any other material amount due from it hereunder or (3) make any material
      Distribution required pursuant to Article
      V
      and, in
      each case, such failure shall continue for more than five Business Days after
      written notice of such failure from the Class A Noteholder or the Majority
      Class
      A Members;

     

    (ii)
      a
      material breach by a Class B Member (including in its capacity as Managing
      Member) or any Affiliate thereof of any covenant, obligation or agreement to
      be
      performed or observed by it under any of the Transaction Documents (other than
      as specified in clause (i) of this definition) and such breach remains uncured
      for more than 30 days after a Responsible Officer of the Class B Member has
      received written notice or has actual knowledge of such breach; provided,
      that if
      such breach does not, in the reasonable judgment of the Class A Noteholder
      or
      Majority Class A Members, as the case may be, have a material adverse effect
      on
      the Company, such 30 day period shall be extended for an additional 60 days
      so
      long as the Class B Member is diligently working to fully cure such
      breach;

     

    (iii)
      a
      Bankruptcy of a Class B Member or any of its Affiliates that are party to any
      Transaction Document; 

     

    (iv)
      an
      "Event of Default" arising other than primarily as a result of circumstances
      beyond the Managing Member's reasonable control occurs under the Credit
      Agreement; or

     

    (v)
      any
      representation or warranty made by a Class B Member or any Affiliate thereof
      in
      a Transaction Document shall prove to have been incorrect in any material
      respect when made (or deemed made) and such incorrectness remains uncured for
      more than 30 days after a Responsible Officer of the Class B Member has received
      written notice or has actual knowledge of such incorrectness; provided,
      that if
      such incorrectness does not, in the reasonable judgment of the Class A
      Noteholder or the Majority Class A Members, as the case may be, have a material
      adverse effect on the Company, such 30 day period shall be extended for an
      additional 60 days so long as the Class B Member is diligently working to cure
      such incorrectness.

     

    "Budget"
      means
      the budget of the Company approved in accordance with Section
      6.9
      of the
      LLC Agreement.

     

    "Business
      Day"
      means
      any day of the year except Saturday, Sunday and any day on which commercial
      banking institutions are authorized or obligated by law, regulation or executive
      order to close in New York, New York.

     

    "Business
      Entity"
      means a
      corporation (or, when used as an adjective, corporate), limited liability
      company, partnership (whether general or limited), business trust, joint stock
      company, unincorporated association, joint venture or other applicable business
      entity.

    
      
        
        

      

      
        A-3

        
          

        

      

      
        
        

      

    

    "Capital
      Account"
      means,
      with respect to any Member, the capital account in the Company maintained for
      such Member in accordance with the following provisions:

     

    (i) to
      each
      Member's Capital Account there shall be credited such Member's Capital
      Contributions, such Member's distributive share of Net Income and any items
      in
      the nature of income or gain allocated to such Member pursuant to Article IV
      of the
      LLC Agreement (other than Section
      4.5),
      and
      the amount of any Company liabilities of such Member assumed by such Member
      or
      which are secured by any Company Property Distributed to such
      Member;

     

    (ii) to
      each
      Member's Capital Account there shall be debited: (a) the amount of Cash and
      the Gross Asset Value of any Company Property Distributed to such Member
      pursuant to any provision of the LLC Agreement; (b) such Member's
      distributive share of Net Losses and any items in the nature of expenses or
      losses, allocated to such Member pursuant to Article IV
      of the
      LLC Agreement (other than Section
      4.5);
      and
      (c) the amount of any liabilities of such Member assumed by the Company or
      that
      are secured by any property contributed by such Member to the Company;
      and

     

    (iii) in
      the
      event all or a portion of an Interest in the Company is Disposed of in
      accordance with the terms of the LLC Agreement, the transferee shall succeed
      to
      the Capital Account of the transferor to the extent of the transferred
      Interest.

     

    The
      foregoing provisions and the other provisions of this Agreement relating to
      the
      maintenance of Capital Accounts are intended to comply with Regulations
§ 1.704-1(b), and shall be interpreted and applied in a manner consistent
      with such Regulations.

     

    "Capital
      Contributions"
      means,
      with respect to any Member, the amount of Cash and the initial Gross Asset
      Value
      of any property (other than Cash) contributed (or deemed to be contributed)
      to
      the Company by such Member (or its predecessors in interest) with respect to
      the
      Interest held by such Member.

     

    "Cash"
      means
      cash, amounts credited to deposit accounts and other immediately available
      funds
      that are denominated in Dollars.

     

    "Certificate
      of Interest"
      is
      defined in Section 3.1
      of the
      LLC Agreement.

     

    "Class"
      in
      relation to an Interest means that such Interest is a Class A Interest or Class
      B Interest, as the case may be. An Interest of any Class shall be represented
      by
      a Unit of such Class.

     

    "Class
      A Member"
      means
      any Person that has been admitted to the Company as a member and that holds
      any
      Class A Units, in each such Person's capacity as a member of the Company, or
      the
      collective reference to all such Persons, as the context may require. For the
      avoidance of doubt, the Class A Noteholder shall not be a Class A Member except
      upon Conversion of the Class A Note, at which time the Class A Noteholder shall
      become the Initial Class A Member.

    
      
        
        

      

      
        A-4

        
          

        

      

      
        
        

      

    

    "Class
      A Member Interest"
      or
      "Class
      A Interest"
      means
      an Interest in the Company designated as a Class A Interest under the LLC
      Agreement.

     

    "Class
      A Note"
      means a
      convertible note in the form attached as Exhibit F to the LLC Agreement issued
      on the Closing Date by the Company to the Class A Noteholder. On and after
      Conversion or repayment in full of the Class A Note in accordance therewith,
      the
      Class A Note shall be deemed to no longer be outstanding for purposes of this
      Agreement.

     

    "Class
      A Noteholder"
      means
      DBAH Capital LLC or its successors and assigns as holder(s) of the Class A
      Note,
      as the case may be. On and after Conversion or repayment in full of the Class
      A
      Note in accordance therewith, there shall no longer be a Class A Noteholder
      for
      purposes of this Agreement.

     

    "Class
      B Member"
      means
      any Person that has been admitted to the Company as a member and that holds
      any
      Class B Units, in each such Person's capacity as a member of the Company, or
      the
      collective reference to all such Persons, as the context may
      require.

     

    "Class
      B Member Interest"
      or
      "Class
      B Interest"
      means
      an Interest in the Company designated as a Class B Interest under the LLC
      Agreement.

     

    "Closing
      Date"
      means
      March 15, 2007. 

     

    "Code"
      means
      the United States Internal Revenue Code of 1986, as amended from time to
      time.

     

    "Company"
      means
      Merit Capital Advance, LLC, the limited liability company formed pursuant to
      the
      LLC Agreement and the Certificate of Formation.

     

    "Company
      Accountants"
      means
      KPMG or any other replacement independent accounting firm of national reputation
      selected by the Managing Member and approved by the Required
      Directors.

     

    "Company
      Minimum Gain"
      has the
      same meaning as the term "partnership minimum gain" in Regulations §§
1.704-2(b)(2) and 1.704-2(d).

     

    "Company
      Property"
      means
      all property owned by the Company, including both tangible and intangible
      property, which shall include, as the context requires, property of any
      Subsidiary.

     

    "Consolidated"
      refers,
      with respect to any Person, to the consolidation of accounts of such Person
      and
      its Subsidiaries in accordance with GAAP.

     

    "Contingent
      Liabilities"
      means,
      with respect to any Person, (a) any agreement, undertaking or arrangement by
      which such Person guarantees, endorses or otherwise becomes or is contingently
      liable upon (by direct or indirect agreement, contingent or otherwise, to
      provide funds for payment, to supply funds to, or otherwise to invest in, a
      debtor, or otherwise to assure a creditor against loss) the indebtedness,
      obligation or any other liability of any other Person (other than by
      endorsements of instruments in the course of collection), or guarantees the
      payment of dividends or other distributions upon the shares of any other Person
      (the amount of obligation

    
      
        
        

      

      
        A-5

        
          

        

      

      
        
        

      

    

    under
      any
      Contingent Liabilities shall be deemed to be the maximum outstanding amount
      of
      the debt, obligation or other liability guaranteed) and/or (b) liabilities
      that
      are contingent in nature which would be included as liabilities on the face
      of
      the balance sheet of such Person in accordance with GAAP.

     

    "Contribution
      Value"
      means
      the Value of a Company asset contributed by a Member to the Company (net of
      liabilities secured by such contributed asset that the Company is treated as
      assuming or taking subject to).

    

    "Conversion"
      means
      the conversion of the Class A Note into Class A Units as provided therein,
      and
      "Converted"
      and
      "Convertible"
      shall
      have like meanings.

    

    "Credit
      Agreement"
      means
      the $33,000,000 revolving credit agreement dated as of March 15, 2007 between
      the Company, as borrower, and the Lender, as the same may be amended, amended
      and restated, waived, supplemented or modified from time to time.

    

    "Credit
      Card Processor Services Agreement"
      means
      an agreement (howsoever titled), in form and substance satisfactory to the
      Required Directors, entered into by the Company with a credit card processor
      acceptable to the Required Directors, providing, among other things, for the
      payment of the Percentage of Future Credit Card Receivables by such processor
      to
      the Company until the Company has received the Specified Amount (as each such
      term is defined in each applicable Merchant Advance Contract).

    

    "Depreciation"
      means,
      for each Allocation Period, an amount equal to the depreciation, amortization,
      or other cost recovery deduction allowable with respect to an asset for such
      Allocation Period, except that if the Gross Asset Value of an asset differs
      from
      its adjusted basis for federal income tax purposes at the beginning of such
      Allocation Period, Depreciation shall be an amount which bears the same ratio
      to
      such beginning Gross Asset Value as the federal income tax depreciation,
      amortization, or other cost recovery deduction for such Allocation Period bears
      to such beginning adjusted tax basis; provided,
      however,
      that if
      the adjusted basis for federal income tax purposes of an asset at the beginning
      of such Allocation Period is zero, Depreciation shall be determined with
      reference to such beginning Gross Asset Value using any reasonable method
      selected by the Tax Matters Member, subject to (following the Conversion of
      the
      Class A Note) the Majority Class A Members' consent (such consent not to be
      unreasonably withheld) in the event that the Managing Member is the Class B
      Member.

     

    "Disposition"
      means,
      with respect to any property, any sale, assignment, gift, exchange, lease,
      conversion, transfer, pledge or other disposition or divestiture of such
      property, or of any property interest therein, including, without limitation,
      any transfer by way of a capital contribution. "Dispose"
      and
      "Disposed"
      shall
      have correlative meanings.

     

    "Disqualified
      Transfer"
      means
      any Disposition of a Member Interest (i) to any Person that is not a United
      States person within the meaning of Section 7701(a)(30) of the Code,
      (ii) to any Person that is a tax-exempt entity within the meaning of
      Section 168(h) of the Code, (iii) in any manner that would cause a
      termination of the Company under Section 708(b)(1)(B) of the Code, (iv) to
      any natural person or (v) to any Person that is not an "accredited investor"
      within the meaning of Rule 501(a)(1), (2), (3) or (7) under the Securities
      Act.

     

    
      
        
        

      

      
        A-6

        
          

        

      

      
        
        

      

    

    "Distribution"
      means,
      as applicable, any distribution or dividend or return of capital or any other
      distribution, payment, remittance or delivery of property or Cash in respect
      of,
      or the redemption, retirement, purchase or other acquisition, directly or
      indirectly, of, any Interest now or hereafter outstanding or the setting aside
      of any funds for any of the foregoing purposes, including any distribution
      under
Sections 5.1,
      5.2
      or
5.3
      or
Article XII
      of the
      LLC Agreement. "Distribute",
      "Distributed"
      and
      "Distributive"
      shall
      have correlative meanings.

     

    "Dollars"
      and the
      sign "$"
      each
      mean the lawful currency of the United States.

     

    "Fee
      Letter"
      means
      the Fee Letter dated as of the Closing Date between the Company, LEAF Financial
      Corporation and DBAH Capital LLC.

     

    "Final
      Payment Date"
      means
      with respect to (i) the liquidation of the Company pursuant to Article XII
      of the
      LLC Agreement, the date on which all Company Property is distributed pursuant
      to
Section 12.2
      of the
      LLC Agreement and, (ii) a Member's or Members' election to purchase
      Interests pursuant to Section 11.1
      of the
      LLC Agreement, the Purchase Date.

     

    "Financial
      Investments"
      means:

     

    (a) Cash;

     

    (b) direct
      general obligations of, or obligations fully and unconditionally guaranteed
      as
      to the timely payment of principal and interest by, the United States or any
      agency or instrumentality thereof having maturities of not more than six months
      from the date of acquisition, but excluding any of such securities whose terms
      do not provide for payment of a fixed dollar amount upon maturity or call for
      redemption;

     

    (c) certificates
      of deposit and eurodollar time deposits with maturities of six months or less
      from the date of acquisition, bankers' acceptances with maturities not exceeding
      six months from the date of acquisition, and overnight bank deposits and other
      short-term deposit instruments, in each case with any domestic commercial bank
      having capital and surplus in excess of $500,000,000 and having a rating of
      at
      least "A2" (or the equivalent thereof) by Moody's and at least "A" (or the
      equivalent thereof) by S&P;

     

    (d) repurchase
      obligations with a term of not more than seven days for underlying securities
      of
      the types described in clause (b)
      or
(c)
      above
      entered into with any financial institution meeting the qualifications specified
      in clause (c)
      above;

     

    (e) commercial
      paper (having original maturities of not more than 180 days) of any Person
      rated
      "P-2" (or the equivalent thereof) or better by Moody's or "A-2" (or the
      equivalent thereof) or better by S&P; and

     

    (f) money
      market mutual or similar funds having assets in excess of $100,000,000, at
      least
      95% of the assets of which are comprised of assets specified in clauses (a)
      through
(e)
      above.

     

    "Fiscal
      Quarter"
      means
      (i) the period commencing on the Closing Date and ending on March 31, 2007
      and (ii) any subsequent three-month period commencing on each of
      January 1,

    
      
        
        

      

      
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    April 1,
      July 1 or October 1 and ending on the next of March 31,
      June 30, September 30 and December 31, respectively; provided
      that the
      last Fiscal Quarter shall end on the first date on which all Company Property
      is
      distributed pursuant to Section 12.2
      of the
      LLC Agreement and the Certificate of Formation has been canceled pursuant to
      the
      LLC Act.

     

    "Fiscal
      Year"
      means
      (i) the period commencing on the Closing Date and ending on September 30,
      2007 and (ii) any subsequent period commencing on October 1 and ending
      on the earlier to occur of (a) the following September 30, or (b) the
      first date on which all Company Property is distributed pursuant to Section 12.2
      of the
      LLC Agreement and the Certificate of Formation has been canceled pursuant to
      the
      LLC Act.

     

    "Formation
      Date"
      is
      defined in Section
      1.1
      of the
      LLC Agreement.

     

    "GAAP"
      means
      United States generally accepted accounting principles as in effect from time
      to
      time. Any financial statements or other information required by the Transaction
      Documents to be prepared in accordance with GAAP shall mean in accordance with
      GAAP as consistently applied for the period or periods covered by such financial
      statements or other information. 

     

    "Governmental
      Approval"
      means,
      with respect to any Person, any consent, license, approval, registration,
      permit, sanction or other authorization of any nature which is required to
      be
      granted by any Governmental Authority under Applicable Law (a) for the
      formation of such Person, (b) for the enforceability of any Transaction
      Document against such Person and such Person's making of any payments
      contemplated thereunder, and (c) for all such other matters as may be
      necessary in connection with the performance of such Person's material
      obligations under any Transaction Document.

     

    "Governmental
      Authority"
      means
      any federal, national, state, provincial, municipal, local, territorial or
      other
      governmental department, commission, board, bureau, agency, regulatory
      authority, instrumentality or judicial or administrative body, whether domestic
      or foreign, having jurisdiction over the matter or matters in
      question.

     

    "Gross
      Asset Value"
      means,
      with respect to any asset, the asset's adjusted basis for federal income tax
      purposes, except as follows:

     

    (i) the
      initial Gross Asset Value of any asset other than a Financial Investment
      contributed by a Member to the Company shall be the fair market value of the
      asset on the date of contribution and the initial Gross Asset Value of any
      Financial Investment shall be equal to its face value, less unamortized discount
      and plus unamortized premium, if any;

     

    (ii) the
      Gross
      Asset Values of all the Company assets shall be adjusted to equal their
      respective Mark-to-Market Values as determined by the Managing Member and,
      in
      the event that the Managing Member is the Class B Member, subject to (following
      the Conversion of the Class A Note) the Majority Class A Members' consent (such
      consent not to be unreasonably withheld) (a) upon the issuance of any additional
      Interest to any person, (b) as specified in Section 12.2
      of the
      LLC Agreement, (c) upon the liquidation of the Company within the meaning
      of Regulation § 1.704-1(b)(2)(ii)(g), and

    
      
        
        

      

      
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    (d)
      in
      connection with the grant of an Interest that is not de minimis as consideration
      for the provision of services to or for the benefit of the Company by an
      existing Member acting in a member capacity, provided that an adjustment under
      clause (a), (b), or (d) of this paragraph shall be made only if the Managing
      Member, subject to, in the event that (following the Conversion of the Class
      A
      Note) the Managing Member is the Class B Member, the Majority Class A Members'
      consent (such consent not to be unreasonably withheld), reasonably has
      determined that such adjustment is necessary to reflect the relative economic
      interests of the Members;

     

    (iii) the
      Gross
      Asset Value of any Company Property distributed to any Member shall be adjusted
      to equal the Mark-to-Market Value of such asset on the date of such
      distribution; 

     

    (iv) the
      Gross
      Asset Values of the assets of the Company shall be increased (or decreased)
      to
      reflect any adjustments to the adjusted basis of such assets pursuant to Code
      § 734(b) or Code § 743(b), but only to the extent that such
      adjustments are taken into account in determining Capital Accounts pursuant
      to
      Regulation § 1.704-1(b)(2)(iv)(m) and clause (v)
      of the
      definition of "Net
      Income"
      and
      "Net
      Losses"
      or
Section 4.2(e)
      of the
      LLC Agreement; provided,
      however,
      that
      Gross Asset Values shall not be adjusted pursuant to this clause (iv)
      to the
      extent that an adjustment pursuant to clause (ii)
      is
      required in connection with a transaction that would otherwise result in an
      adjustment pursuant to this clause (iv);
      and

     

    (v) if
      the
      Gross Asset Value of an asset has been determined or adjusted pursuant to
      subparagraph (i), (ii), or (iv), such Gross Asset Value shall thereafter be
      adjusted by the Depreciation taken into account with respect to such asset
      for
      purposes of computing Net Income and Net Losses.

     

    "Gross
      Income"
      means
      all items of gross income and gain (before reduction for cost of goods sold
      or
      similar items of cost) that are realized by the Company. 

     

    "Indebtedness"
      of any
      Person means, without duplication:

     

    (a) all
      obligations of such person for borrowed money and all obligations of such Person
      evidenced by bonds, debentures, notes or other similar instruments;

     

    (b) all
      obligations, contingent or otherwise, relative to the face amount of all letters
      of credit, whether or not drawn, and banker's acceptances issued for the account
      of such Person;

     

    (c) all
      obligations of such Person as lessee under leases which have been or should
      be,
      in accordance with GAAP, recorded as capital leases;

     

    (d) all
      other
      items which, in accordance with GAAP, would be included as liabilities on the
      liability side of the balance sheet of such Person as of the date at which
      Indebtedness is to be determined other than accounts payable, deferred revenue
      and accrued operating expenses incurred in the ordinary course of business
      in
      each case to the extent not otherwise constituting Indebtedness under the other
      terms of this definition;

    
      
        
        

      

      
        A-9

        
          

        

      

      
        
        

      

    

    (e) net
      liabilities of such Person under all Swap Agreements;

     

    (f) whether
      or not so included as liabilities in accordance with GAAP, all obligations
      of
      such Person to pay the deferred purchase price of property or services, and
      indebtedness (excluding prepaid interest thereon) secured by a lien on property
      owned or being purchased by such Person (including indebtedness arising under
      conditional sales or other title retention agreements), whether or not such
      indebtedness shall have been assumed by such Person or is limited in recourse;
      and

     

    (g) all
      Contingent Liabilities of such Person in respect of any of the
      foregoing.

     

    "Independent
      Director"
      means a
      director that is a natural person and is not and has not been for at least
      five
      years from the date of his or her or appointment (i) a direct or indirect legal
      or beneficial owner of the Company or any Member or any of their respective
      Affiliates (other than indirectly as a holder of shares in a publicly traded
      mutual fund), (ii) a relative, supplier, employee, officer, director (other
      than
      as an independent director), manager (other than as an independent manager),
      contractor or material creditor of the Company or any Member or any of their
      respective Affiliates or (iii) a Person who controls (whether directly,
      indirectly or otherwise) any Member or its Affiliates or any creditor, employee,
      officer, director, manager or material supplier or contractor of any Member
      or
      its Affiliates.

     

    "Initial
      Class A Member"
      means
      the Class A Noteholder, following Conversion of the Class A Note into Class
      A
      Units.

     

    "Initial
      Class B Member"
      means
      LEAF Ventures, LLC.

     

    "Interest"
      means
      any limited liability company interest in the Company, including any and all
      benefits to which the holder of such an interest may be entitled as provided
      in
      the LLC Agreement, together with all obligations of such Person to comply with
      the terms and provisions of the LLC Agreement. The Company has two classes
      or
      groups of Interests and Members: Class A and Class B (and two corresponding
      classes or groups of Units: Class A and Class B). Notwithstanding anything
      to
      the contrary herein, a Member's Interest shall not exist separate from such
      Member's Units, and the Class A Note shall not constitute an
      "Interest".

     

    "Investment"
      means
      any investment in any Person, whether by means of share purchase, capital
      contribution, loan, time deposit or otherwise.

     

    "Investment
      Interest"
      means
      an Interest or the Class A Note, as the context shall require. 

     

    "Involuntary
      Bankruptcy"
      is
      defined in the definition of "Bankruptcy".

     

    "Irrevocable
      Election"
      means,
      with respect to a Member's or the Class A Noteholder's proposed purchase of
      Investment Interests in accordance with Section
      11.1,
      the
      delivery by such Member or the Class A Noteholder, as the case may be, to the
      Company of a written notice pursuant to which such Member or the Class A
      Noteholder, as the case may be, unconditionally covenants and agrees that such
      purchase shall be consummated on or prior to the Purchase Date, and at the
      applicable Purchase Price, specified in the relevant Purchase Option
      Notice.

     

    
      
        
        

      

      
        A-10

        
          

        

      

      
        
        

      

    

    "LEAF"
      means
      LEAF Financial Corporation, a Delaware corporation.

     

    "LEAF
      Services Agreement"
      means
      the services agreement dated as of March 15, 2007 between the Company, LEAF
      Ventures, LLC and LEAF, substantially in the form of Exhibit B to the LLC
      Agreement.

     

    "LEAF
      Warehousing Facility"
      means
      the Credit Agreement dated July 31, 2006 by and among LEAF and LEAF Funding,
      Inc., as Borrowers, the financial institutions party thereto, as Lenders, and
      National City Bank, as Agent.

     

    "Lender"
      is
      defined in the Credit Agreement.

     

    "Lien"
      means
      any mortgage, pledge, hypothecation, assignment for security, encumbrance,
      lien
      (statutory or other), security interest or other security device or arrangement
      of any kind or nature whatsoever (including any conditional sale or other title
      retention agreement and any lease having substantially the same effect as any
      of
      the foregoing).

     

    "Liquidating
      Events"
      is
      defined in Section 12.1
      of the
      LLC Agreement.

     

    "Liquidation
      Notice"
      is
      defined in Section 12.10
      of the
      LLC Agreement.

     

    "Liquidator"
      is
      defined in Section 12.8
      of the
      LLC Agreement.

     

    "LLC
      Act"
      means
      the Delaware Limited Liability Company Act, as set forth in Del. Code Ann.
      Tit.
      6, §§ 18-101, et seq.
      and any
      successor statute, as the same may be amended from time to time.

     

    "LLC
      Agreement"
      means
      the Limited Liability Company Agreement of Merit Capital Advance, LLC, dated
      as
      of March 15, 2007, and includes this Annex A
      and all
      other annexes and schedules attached thereto, as amended, supplemented, amended
      and restated or otherwise modified from time to time.

     

    "Majority
      Class A Members"
      means
      the Class A Member or Class A Members holding more than 50% of all outstanding
      Class A Units; provided
      that any
      Class A Member that is an Affiliate of the Class B Member shall be disregarded
      for purposes of the foregoing calculation (unless the Class B Member and its
      Affiliates own all of the Class A Member Interests).

     

    "Majority
      Class B Members"
      means
      the Class B Member or Class B Members holding more than 50% of all outstanding
      Class B Units; provided
      that any
      Class B Member that is an Affiliate of the Class A Member shall be disregarded
      for purposes of the foregoing calculation (unless the Class B Member and its
      Affiliates own all of the Class A Member Interests).

     

    "Managing
      Member"
      means
      initially the Class B Member of the Company and any replacement Member
      appointed in accordance with the terms of the LLC Agreement, in such Person's
      capacity as managing member of the Company.

     

    "Mark-to-Market
      Balance Sheet"
      is
      defined in Section 8.2(d)
      of the
      LLC Agreement.

    
      
        
        

      

      
        A-11

        
          

        

      

      
        
        

      

    

    "Mark-to-Market
      Measurement Date"
      means
      (a) with respect to the retirement of any Interest in the Company or the
      issuance of any additional Interests in the Company to any Person (except for
      any permitted transferees in accordance with Sections 10.1(a)
      or
(b)
      of the
      LLC Agreement), the last day of the Fiscal Quarter preceding the Fiscal Quarter
      during which the retirement or issuance, as the case may be, occurs;
      (b) with respect to the liquidation of the Company pursuant to Section 12.2
      of the
      LLC Agreement, the last day of the Fiscal Quarter immediately preceding the
      Fiscal Quarter during which the earlier of (i) the Liquidating Event giving
      rise to such liquidation occurred or (ii) if applicable, the Board
      Reduction Event giving rise to such Liquidating Event occurred; or (c) with
      respect to the exercise of the Purchase Option, the last day of the Fiscal
      Quarter immediately preceding the Fiscal Quarter during which the earlier of
      (i) the date on which the Purchase Option Notice was delivered or
      (ii) if the Purchase Option Notice was delivered after a Board Reduction
      Event, the Board Reduction Event occurred.

     

    "Mark-to-Market
      Value"
      means
      (a) prior to a Mark-to-Market Measurement Date, the sum of the initial
      Gross Asset Values of the assets held by the Company, and (b) on or after a
      Mark-to-Market Measurement Date, the sum of the Mark-to-Market Values of each
      asset owned by the Company net of all applicable liabilities not taken into
      account in the calculation of Asset Values.

     

    "Member
      Nonrecourse Debt"
      has the
      same meaning as the term "partner nonrecourse debt" in Regulations
§ 1.704-2(b)(4).

     

    "Member
      Nonrecourse Debt Minimum Gain"
      means
      an amount, with respect to each Member Nonrecourse Debt equal to Company Minimum
      Gain that would result if such Member Nonrecourse Debt were treated as a
      nonrecourse liability with the meaning of Regulation § 1.704-2(b)(3),
      determined in accordance with Regulation § 1.704-2(i)(3).

     

    "Members"
      means
      each Class A Member and each Class B Member, collectively.
      "Member"
      means
      any one of the Members.

     

    "Merchant
      Advance Contract"
      means a
      contract substantially in the form of Exhibit D to the LLC
      Agreement.

     

    

    "Moody's"
      means
      Moody's Investors Service, Inc. or any successor by merger, consolidation or
      otherwise to its business.

     

    "Net
      Income"
      and
      "Net
      Losses"
      means,
      for each Allocation Period, an amount equal to the Company's taxable income
      or
      loss for such Allocation Period, determined in accordance with Code
§ 703(a) (for this purpose, all items of income, gain, loss, or deduction
      required to be stated separately pursuant to Code § 703(a)(1) shall be
      included in taxable income or loss), with the following
      adjustments:

     

    (i) any
      income of the Company that is exempt from federal income tax and not otherwise
      taken into account in computing Net Income or Net Losses pursuant to this
      definition of "Net
      Income"
      and
      "Net
      Losses"
      shall
      be added to such taxable income or loss; 

    
      
        
        

      

      
        A-12

        
          

        

      

      
        
        

      

    

    (ii) any
      expenditures of the Company described in Code § 705(a)(2)(B) or treated as
      Code § 705(a)(2)(B) expenditures pursuant to Regulation
§ 1.704-1(b)(2)(iv)(i), and not otherwise taken into account in computing
      Net Income or Net Losses pursuant to this definition of "Net
      Income"
      and
      "Net
      Losses"
      shall
      be subtracted from such taxable income or loss;

     

    (iii) in
      the
      event the Gross Asset Value of any asset of the Company is adjusted pursuant
      to
clause (ii)
      or
(iii)
      of the
      definition of Gross Asset Value, the amount of such adjustment shall be taken
      into account as gain or loss from the disposition of such asset for purposes
      of
      computing Net Income or Net Losses;

     

    (iv) gain
      or
      loss resulting from any disposition of Company Property with respect to which
      gain or loss is recognized for federal income tax purposes shall be computed
      by
      reference to the Gross Asset Value of Company Property disposed of,
      notwithstanding that the adjusted tax basis of such Company Property differs
      from its Gross Asset Value;

     

    (v) 
      in lieu
      of depreciation, amortization and other cost recovery deductions taken into
      account in computing Net Income and Net Losses, there shall be taken into
      account Depreciation for such Allocation Period, computed in accordance with
      the
      definition of Depreciation; and

     

    (vi) any
      items
      that are allocated pursuant to Section 4.2
      or
4.3
      of the
      LLC Agreement shall not be taken into account in computing Net Income or Net
      Losses.

     

    The
      amounts of the items of income, gain, loss or deduction of the Company available
      to be allocated pursuant to Sections 4.2
      and
4.3
      of the
      LLC Agreement shall be determined by applying rules analogous to those set
      forth
      in clauses (i)
      through
(v)
      above.

     

    "Net
      Income Tax Distribution Amount"
      means,
      for any Allocation Period, the product of (i) the Applicable Rate and (ii)
      a
      Member's allocable share of Net Income for such Allocation Period.

     

    "Nonrecourse
      Deductions"
      has the
      meaning set forth in Regulations §§ 1.704-2(b)(1) and
      1.704-2(c).

     

    "Nonrecourse
      Liability"
      has the
      meaning set forth in Regulations § 1.704-2(b)(3).

     

    "Obligation"
      means,
      with respect to any Person, any obligation of such Person of any kind,
      including, without limitation, any liability of such Person on any claim,
      whether or not the right of any creditor to payment in respect of such claim
      is
      reduced to judgment, liquidated, unliquidated, fixed, contingent, matured,
      disputed, undisputed, legal, equitable, secured or unsecured, and whether or
      not
      such claim is discharged, stayed or otherwise affected by any
      proceeding.

     

    "Participation
      Agreement"
      means a
      Participation Agreement substantially in the form of Exhibit E to the LLC
      Agreement entered into on the date hereof between the Lender and the Initial
      Class B Member, pursuant to which the Initial Class B Member shall have agreed
      to

    
      
        
        

      

      
        A-13

        
          

        

      

      
        
        

      

    

    purchase
      from the Lender certain participations in Advances made to the Company from
      time
      to time by the Lender under the Credit Agreement.

     

    "Percentage
      Interest"
      with
      respect to each Member, means a fraction, expressed as a percentage, the
      numerator of which is the number of Units held by such Member, and the
      denominator of which is the aggregate number of Units held by all Members (and
      "Percentage
      Interest"
      with
      respect to each Member's Interest or Units of a particular Class shall have
      a
      correlative meaning).

     

    "Permitted
      Assets"
      means

     

    (a) in
      relation to the Company: (i) Financial Investments; (ii) Merchant Advance
      Contracts, including future receivables thereunder; (iii) intellectual property
      rights; (iv) furniture, fixtures and equipment; (v) equity interests in
      Subsidiaries and other Persons (to the extent permitted in the LLC Agreement);
      and (vi) other assets approved in writing by the Required Directors;
      and

     

    (b) in
      relation to the Servicer Subsidiary: (i) furniture, fixtures and equipment;
      and
      (ii) other assets approved in writing by the Required Directors.

     

    "Permitted
      Reorganization"
      has the
      meaning set forth in Section
      3.6.

     

    "Person"
      means
      any individual, trust, estate, association, Business Entity or other entity,
      or
      a government or any political subdivision or agency thereof.

     

     

    "Presumed
      Tax Liability"
      means,
      with respect to each Member for any Fiscal Year, an amount equal to the product
      of (a) the amount of taxable income allocated by the Company to such Member
      for
      such Fiscal Year (taking any carryforwards of net operating losses and capital
      losses not previously taken into account, computed as if each Member's sole
      income in all Fiscal Years was income allocated to such Member by the Company)
      and (b) the Presumed Tax Rate.

     

    "Presumed
      Tax Rate"
      for any
      Fiscal Year means the higher of the highest effective combined Federal, state
      and local income tax rate applicable during such Fiscal Year to a corporation
      or
      a natural person doing business solely in or residing in, New York City, New
      York, taxable at the highest marginal Federal income tax rate and the highest
      marginal New York State and New York City income tax rates (after giving effect
      to the Federal income tax deduction for such state and local income taxes,
      the
      state tax deduction for local income taxes, taking into account the effects
      of
      Code Sections 67 and 68 and the character of any income or gain, e.g. as
      long-term capital gains).

    

    "Purchase
      Date"
      is
      defined in Section 11.1(b)(ii)
      of the
      LLC Agreement.

     

    "Purchase
      Option"
      is
      defined in Section 11.1(a)
      of the
      LLC Agreement.

     

    "Purchase
      Option Notice"
      is
      defined in Section 11.1(a)
      of the
      LLC Agreement.

     

    "Purchase Price"
      is
      defined in Section 11.1(b)(iii)
      of the
      LLC Agreement.

    
      
        
        

      

      
        A-14

        
          

        

      

      
        
        

      

    

    "Regulations"
      means
      regulations promulgated under the Code (including temporary regulations), as
      such regulations are amended, modified or supplemented from time to
      time.

     

    "Regulatory
      Allocations"
      is
      defined in Section
      4.3
      of the
      LLC Agreement.

     

    "Relevant
      Member"
      means
      (a) in the case of Section
      11.1(a)(i)
      of the
      LLC Agreement, any Member other than the Member which shall have breached the
      relevant term of this LLC Agreement, (b) in the case of Section
      11.1(a)(ii)
      of the
      LLC Agreement, any Member represented by director(s) entitled to vote on the
      relevant matter, (c) in the case of Section
      11.1(a)(iii)
      of the
      LLC Agreement, any Member or the Class A Noteholder, as the case may be (an
      "Investor")
      which
      is subject to such illegality or material increase in costs, (d) in the case
      of
Section
      11.1(a)(iv)
      of the
      LLC Agreement, any Investor other than the Investor which is the subject of
      such
      Bankruptcy, (e) in the case of Section
      11.1(a)(v)
      of the
      LLC Agreement, (i) in the event the LEAF Services Agreement shall have been
      terminated as a result of the occurrence of a Bankruptcy Event (as defined
      therein) with respect to any Party (as so defined) pursuant to Section 2.2(a)
      thereof, the Class A Noteholder or any Class A Member, (ii) in the event the
      LEAF Services Agreement shall have been terminated at the election of the
      Company pursuant to Section 2.2(b)(ii) thereof, any Investor, (iii) in the
      event
      the LEAF Services Agreement shall have been terminated at the election of the
      Servicer (as defined therein) or LEAF, in either case, pursuant to Section
      2.2(b)(ii) thereof, the Class A Noteholder or any Class A Member, (iv) in the
      event the LEAF Services Agreement shall have been terminated for Cause (as
      defined therein) pursuant to Section 2.2(b)(iii) thereof, the Class A Noteholder
      or any Class A Member, (f) in the case of Section
      11.1(a)(vi)
      of the
      LLC Agreement, any Class B Member, (g) in the case of Section
      11.1(a)(vii)
      of the
      LLC Agreement, the Class A Noteholder or any Class A Member, (h) in the case
      of
Section
      11.1(a)(viii)
      of the
      LLC Agreement, any Investor, (i) in the case of Section
      11.1(a)(ix)
      of the
      LLC Agreement, any Investor and (j) in the case of Section
      11.1(a)(x)
      of the
      LLC Agreement, any Class B Member.

     

    "Relevant
      Provision"
      means,
      in relation to a Merchant Advance Contract, the following provisions (with
      terms
      not otherwise defined having the respective meanings set forth therein): (a)
      provisions specifying that the transactions contemplated in the Merchant Advance
      Contract constitute a purchase and sale of Future Credit Card Receivables,
      rather than a loan, (b) provisions relating to governing law, (c) the covenants
      of the counterparty to such Contract (the "Counterparty")
      set
      forth on the face page thereof under the heading "Certain Covenants", (d) the
      Owners' guarantee of the obligations of the Counterparty, (e) the Counterparty's
      acknowledgement that it shall have no right to repurchase Future Credit Card
      Receivables and (f) the Company's obligation, in the event the transactions
      contemplated in such Contract are held to be a loan rather than a purchase,
      to
      repay to the Counterparty the excess of amounts received by the Company over
      any
      applicable usurious rate of interest. 

     

    "Required
      Directors"
      means
      (i) prior to a Board Reduction, all directors of the Company and (ii) on and
      after a Board Reduction (at any time following the Conversion of the Class
      A
      Note), a majority of the Board of Directors, in any such case, excluding the
      Independent Director, except with respect to Section
      6.4(e)(xviii).
      

     

    "Responsible
      Officer"
      means,
      (i) with respect to the Class B Member, any senior officer of the Class B
      Member and (ii) with respect to the Company, the Managing
      Member.

    
      
        
        

      

      
        A-15

        
          

        

      

      
        
        

      

    

    "S&P"
      means
      Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies,
      Inc., or any successor by merger, consolidation or otherwise to its
      business.

     

    "SEC"
      means
      the Securities and Exchange Commission.

     

    "Securities
      Act"
      means
      the Securities Act of 1933 or any successor law, and regulations and rules
      issued pursuant to the Securities Act or any successor law.

    

    "Security
      Agreement"
      is
      defined in the Credit Agreement.

     

    "Servicer
      Subsidiary"
      means
      the Servicer under (and as defined in) the LEAF Services Agreement, if acquired
      by the Company in accordance with Section 2.4 of such Agreement.

     

    "Subsidiary"
      means,
      as to any Person, any corporation, partnership, joint venture, limited liability
      company, trust or estate of which (or in which) more than 50% of (a) the
      issued and outstanding capital stock having ordinary voting power to elect
      a
      majority of the board of directors of such corporation (irrespective of whether
      at the time capital stock of any other class or classes of such corporation
      shall or might have voting power upon the occurrence of any contingency),
      (b) the right or power to direct, in the case of any entity of which such
      Person or any of its Subsidiaries is a general partner, or both the beneficial
      ownership of and the right or power to direct, in any other case, such limited
      liability company, partnership or joint venture, or (c) the beneficial
      interest in such trust or estate, is at the time directly or indirectly owned
      or
      controlled by such Person, by such Person and one or more of its other
      Subsidiaries or by one or more of such Person's other Subsidiaries; provided,
      however,
      that no
      such corporation, partnership, joint venture or other entity shall constitute
      a
      Subsidiary of any other Person unless such entity would appear as a consolidated
      Subsidiary of such Person on a Consolidated balance sheet of such Person
      prepared in accordance with GAAP. Unless the context otherwise clearly requires,
      any reference to a "Subsidiary" is a reference to a Subsidiary of the
      Company.

     

    "Successor
      Corporation"
      means
      the corporation resulting from the Permitted Reorganization of the
      Company.

     

    "Swap
      Agreement"
      means
      any swap, forward, future or derivative transaction or option or similar
      agreement involving, or settled by reference to, one or more rates, currencies,
      commodities, equity or debt instruments or securities, or economic, financial
      or
      pricing indices or measures of economic, financial or pricing risk or value
      or
      any similar transaction or any combination of these transactions; provided
      that no
      phantom stock or similar plan providing for payments only on account of services
      provided by current or former directors, officers, employees or consultants
      of
      the Company shall be a Swap Agreement.

     

    "Tax"
      or
      "Taxes"
      means
      any and all taxes (including net income, gross income, franchise, value added,
      ad valorem, gross receipts, leasing, excise, fuel, excess profits, sales, use,
      property (personal or real, tangible or intangible) and stamp taxes), levies,
      imposts, duties, charges, assessments, or withholdings of any nature whatsoever,
      general or special, ordinary or extraordinary, now existing or hereafter created
      or adopted, together with any and all interest, penalties, fines, additions
      to
      tax and interest thereon; provided,
      that
      the terms "Tax" and "Taxes" shall not include any governmental charge for which
      a direct product or service is received.

    
      
        
        

      

      
        A-16

        
          

        

      

      
        
        

      

    

    "Tax
      Distribution"
      has the
      meaning set forth in Section
      5.2.

     

    

    "Tax
      Matters Member"
      is
      defined in Section 8.3(a)
      of the
      LLC Agreement.

     

    "Transaction
      Documents"
      means
      the LLC Agreement, the Class A Note, the Credit Agreement, the Security
      Agreement, each Account Control Agreement referred to in the Credit Agreement,
      the Fee Letter, each Merchant Advance Contract, each Credit Card Processor
      Services Agreement, the LEAF Services Agreement and any certificates and other
      documents and instruments related thereto.

     

    "Triggering
      Event"
      is
      defined in Section
      11.1(a)
      of the
      LLC Agreement.

     

    "Underwriting
      Manual"
      means
      the Underwriting Manual attached as Exhibit G to the LLC Agreement, as such
      Underwriting Manual may be modified from time to time by written agreement
      of
      the Class A Noteholder or the Majority Class A Members, as the case may be,
      and
      the Majority Class B Members.

     

    "United
      States"
      or
      "U.S."
      means
      the United States of America and the territories, possessions and territorial
      waters of the United States of America.

    

    "Units"
      means
      the Units representing Interests in the Company.

    

    "Unitholders
      Agreement"
      means
      the Unitholders Agreement, dated as of the date hereof, by and among the Company
      and the Members, as amended, modified or supplemented from time to
      time.

    

    "Value"
      of the
      assets of the Company as of any date, means the fair market value of such assets
      as of such date, as determined by the Required Directors in good faith. Any
      determination of the Value or of the fair market value of an asset of the
      Company made in good faith by the Required Directors shall be binding on the
      Members for all purposes of this Agreement.

     

    

    "Voluntary
      Bankruptcy"
      is
      defined in the definition of "Bankruptcy".

    

    SECTION
      1.02 Rules of Construction.
      This
Annex A
      and,
      except as otherwise expressly provided in any Transaction Document with respect
      to specific rules of construction for such Transaction Document, all Transaction
      Documents and all appendices, schedules and exhibits to the Transaction
      Documents shall be governed by, and construed in accordance with, the following
      rules of construction:

     

    (a) Computation
      of Time Periods.
      In the
      computation of periods of time from a specified date to a later specified date,
      the word or phrase "from"
      and
      "commencing
      on"
      mean
      "from and including" and the words or phrase "to"
      and
      "until"
      and
      "ending
      on"
      mean
      "to but excluding".

     

    (b) Accounting
      Terms.
      All
      accounting terms shall be construed in accordance with GAAP applied
      consistently, except with respect to Capital Accounts and items

    
      
        
        

      

      
        A-17

        
          

        

      

      
        
        

      

    

    entering
      into the computation of Capital Accounts, and except to the extent otherwise
      specified in the provisions of Section 1.01
      or
1.02
      hereof.

     

    (c) No
      Presumption Against Any Party.
      Neither
      any Transaction Document nor any uncertainty or ambiguity therein shall be
      construed against any particular party, whether under any rule of construction
      or otherwise. On the contrary, each Transaction Document has been reviewed
      by
      each of the parties thereto and their respective counsel and shall be construed
      and interpreted according to the ordinary meaning of the words used so as to
      fairly accomplish the purposes and intentions of all parties
      thereto.

     

    (d) Use
      of
      Certain Terms.
      Unless
      the context of any Transaction Document requires otherwise, the plural includes
      the singular, the singular includes the plural, and "including"
      has the
      inclusive meaning of "including without limitation." The words "hereof,"
      "herein,"
      "hereby,"
      "hereunder,"
      and
      other similar terms of any Transaction Document refer to such Transaction
      Document (including this Annex A
      to the
      extent incorporated or referred to therein (whether or not actually attached
      thereto) and all other annexes, schedules and exhibits attached thereto) as
      a
      whole and not exclusively to any particular provision of such Transaction
      Document. All pronouns and any variations thereof shall be deemed to refer
      to
      the masculine, feminine, or neuter, singular or plural, as the identity of
      the
      Person or Persons may require.

     

    (e) Headings
      and References.
      Article, Section and other headings are for reference only, and are not intended
      to describe, interpret, define or limit the scope, extent or intent of any
      Transaction Document or any provision thereof. References in any Transaction
      Document to Articles, Sections, Annexes, Schedules and Exhibits refer to
      Articles, Sections, Annexes, Schedules, and Exhibits of or to such Transaction
      Document, and references in Sections of such Transaction Document to any clause
      refer to such clause of such Section. Whether or not specified in any
      Transaction Document or in this Annex A,
      references in such Transaction Document or in this Annex A
      to such
      Transaction Document, any other Transaction Document or any other agreement
      include, unless otherwise provided in such Transaction Document or in this
      Annex A,
      this
Annex A,
      such
      Transaction Document, the other Transaction Documents and such other agreements,
      as the case may be, as the same may be amended, restated, supplemented or
      otherwise modified from time to time pursuant to the provisions thereof and
      of
      any other Transaction Documents applicable thereto. Whether or not specified
      in
      any Transaction Document or in this Annex A,
      a
      reference to any Applicable Law or law (as the case may be) as at any time
      shall
      mean that Applicable Law or law (as the case may be) as it may have been
      amended, restated, supplemented or otherwise modified from time to time, and
      any
      successor Applicable Law or law (as the case may be). A reference to a Person
      includes the successors and assigns of such Person, but such reference shall
      not
      increase, decrease or otherwise modify in any way the provisions in this
Annex A
      or any
      Transaction Document governing the assignment of rights and obligations under,
      or the binding effect, of any provision of this Annex A
      or any
      Transaction Document. 

     

    
      
        
        

      

      
        A-18

        
          

        

      

      
        
        

      

    

    Exhibit
      A

    FORM
      OF
      MEMBERSHIP INTEREST

    

    
      	
               NUMBER

               

               
                [__] 

               

            	
               

              ORGANIZED
                UNDER THE LAWS

               

              OF

               

              THE
                STATE OF DELAWARE

               

            	
              CLASS

               

              [__]

               

            
	
               

               

              MERIT
                CAPITAL ADVANCE, LLC

               

            

    

    

     

    This
      Certifies that [_____________] is
      the owner of ___ Class [A/B] limited liability company interest units of Merit
      Capital Advance, LLC, a Delaware limited liability company (the "Company"),
      with
      such rights and privileges as are set forth in the Limited Liability Company
      Agreement of the Company dated as of March
      15,
      2007, as amended from time to time (the "LLC Agreement").

     

    THE
      LIMITED LIABILITY COMPANY INTEREST UNIT REPRESENTED BY THIS CERTIFICATE (THE
      "MEMBERSHIP INTEREST") HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
      1933,
      AS AMENDED (THE "SECURITIES ACT"), THE SECURITIES LAWS OF ANY STATE (THE "STATE
      ACTS") OR THE SECURITIES LAWS OF ANY OTHER JURISDICTION, AND IS BEING OFFERED
      AND SOLD IN RELIANCE ON EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF THE
      SECURITIES ACT AND SUCH LAWS. THE MEMBERSHIP INTEREST HAS NOT BEEN APPROVED
      OR
      DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION, BY ANY STATE SECURITIES
      COMMISSION OR BY ANY OTHER REGULATORY AUTHORITY OF ANY OTHER JURISDICTION.
      ANY
      REPRESENTATION TO THE CONTRARY IS UNLAWFUL. 

     

    NEITHER
      THE MEMBERSHIP INTEREST NOR ANY PART THEREOF MAY BE OFFERED FOR SALE, PLEDGED,
      HYPOTHECATED, SOLD, ASSIGNED OR TRANSFERRED AT ANY TIME EXCEPT (A) TO THE EXTENT
      PERMITTED UNDER THE LLC AGREEMENT OR THE UNITHOLDERS AGREEMENT REFERRED TO
      THEREIN, (B) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE
      SECURITIES ACT OR IN A TRANSACTION WHICH IS EXEMPT FROM REGISTRATION UNDER
      THE
      SECURITIES ACT OR FOR WHICH

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    SUCH
      REGISTRATION IS OTHERWISE NOT REQUIRED AND (C) PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER ANY APPLICABLE STATE ACTS OR IN A TRANSACTION
      WHICH
      IS EXEMPT FROM REGISTRATION UNDER SUCH STATE ACTS OR FOR WHICH SUCH REGISTRATION
      OTHERWISE IS NOT REQUIRED.

     

    THE
      MEMBERSHIP INTEREST REPRESENTED BY THIS CERTIFICATE IS SUBJECT TO THE TRANSFER
      RESTRICTIONS CONTAINED IN THE LLC AGREEMENT AND THE UNITHOLDERS AGREEMENT
      REFERRED TO THEREIN. A COPY OF THE LLC AGREEMENT AND UNITHOLDERS AGREEMENT
      WILL
      BE FURNISHED BY THE COMPANY TO THE HOLDER HEREOF UPON REQUEST WITHOUT
      CHARGE.

     

    THERE
      IS
      NO PUBLIC MARKET FOR THE MEMBERSHIP INTEREST AND NONE IS EXPECTED TO DEVELOP.
      THEREFORE, RECIPIENTS OF THIS MEMBERSHIP INTEREST OR ANY OTHER LIMITED
      LIABILITY COMPANY
      INTEREST
      WILL BE REQUIRED TO BEAR THE RISK OF THEIR INVESTMENT FOR AN INDEFINITE PERIOD
      OF TIME.

     

    THE
      MEMBERSHIP INTEREST REPRESENTED BY THIS CERTIFICATE CONSTITUTES "SECURITIES"
      GOVERNED BY ARTICLE 8 OF THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN ANY
      APPLICABLE JURISDICTION.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    In
      Witness Whereof, the
      said Company has caused this Certificate to be signed by its Managing Member
      this_________ day of _________, 20__.

     

    MERIT
      CAPITAL ADVANCE,
      LLC

     

    By:
      [__________],

    as
      Managing Member

     

     By:_____________________________,

     

    Name:________________________

     

    Title:
      _________________________

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      B

    Form
      of
      LEAF Services Agreement

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      C

    Form
      of
      Member Interest Transfer

     

    This
      MEMBERSHIP INTEREST ASSIGNMENT AGREEMENT
      (this
      "Agreement")
      is
      made and entered into as of ___________, 20__, by and among [________], a Class
      [A/B] Member and a [__________] ("Assignor")
      and
      [designated assignee], a [___________] ("Assignee").

     

    W I T N E S S E T H :

     

    WHEREAS,
      Assignor is the owner of [ ] Class [A/B] Units representing Class [A/B] Member
      Interests (the "Assignor
      Class [A/B] Member Interest")
      in
Merit
      Capital Advance, LLC, a Delaware limited liability company (the "Company");

     

     

    WHEREAS,
      pursuant to Section 11.1 of the Limited Liability Company Agreement of the
      Company, dated as of March 15,
      2007
      (the "LLC
      Agreement";
      terms
      used in this Agreement but not defined herein shall have the meanings given
      to
      such terms in the LLC Agreement), the Assignee has the right, following the
      occurrence of any Triggering Event and subject to certain other conditions
      set
      forth in Section 11.1 of the LLC Agreement, to elect to purchase the Assignor
      Class [A/B] Member Interest;

     

     

    NOW,
      THEREFORE,
      in
      consideration of the mutual covenants and agreements set forth herein, and
      for
      the good and valuable consideration specified in the LLC Agreement, the receipt
      and sufficiency of which are hereby acknowledged, the parties hereto agree
      as
      follows:

     

     

    1. Assignment
      and Delegation.
      Assignor does hereby irrevocably from and after the Effective Time (as defined
      below) (a) sell, transfer, assign and deliver to Assignee all of Assignor's
      right, title and interest in and to the Assignor Class [A/B] Member Interests
      (Assignor's assigned interest, an "Assigned
      Interest")
      and
      (b) transfer, delegate and deliver to Assignee all of Assignor's obligations
      and
      liabilities in respect of the Assignor Class [A/B] Member Interests (Assignor's
      delegated obligations, the "Delegated
      Obligations").
      

     

    THE
      ASSIGNED INTEREST IS SOLD AND TRANSFERRED IN "AS IS, WHERE IS" CONDITION AT
      THE
      EFFECTIVE TIME AND ASSIGNOR MAKES NO WARRANTIES, GUARANTEES, OR REPRESENTATIONS
      OF ANY KIND, EITHER EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE. Nothing in
      the
      foregoing is intended to limit or otherwise affect in any manner Assignor's
      representations and warranties set forth in Section 5 of this
      Agreement.

     

    Notwithstanding
      the foregoing, Assignor shall retain any and all rights of Assignor in and
      to
      each and every indemnity or other similar payment under the LLC Agreement,
      in
      each case, with respect to claims arising, or events, acts or omissions
      occurring, or circumstances existing, prior to the Effective
      Time.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2. Acceptance
      and Assumption.
      Assignee hereby from and after the Effective Time (i) accepts the assignment
      of
      Assignor's Assigned Interest and (ii) assumes Assignor's respective Delegated
      Obligations.

     

    3. Effectiveness.
      This
      Agreement shall be effective upon the execution and delivery hereof and the
      payment of the purchase price payable to Assignor pursuant to Section 11.1
      of
      the LLC Agreement (the "Effective
      Time").

     

    4. Release.
      As of
      the Effective Time, Assignee,
      on its own behalf and on behalf of its members, affiliates, subsidiaries,
      managers, officers and external advisers (collectively, the "Releasing
      Parties")
      grants
      to Assignor and its equity holders, affiliates, subsidiaries, managers, officers
      and external advisers (collectively, the "Released
      Parties")
      a
      release as broad as permitted by law with respect to any liability, claim,
      or
      contingency or any other responsibility that may arise in relation with or
      derived from the operations of the Company carried out on or after the date
      hereof; provided,
      that
      the foregoing release shall not operate to release obligations of any Released
      Parties under this Agreement. Subject to the foregoing, each Releasing Party
      waives any right, action or claim of any kind against any Released Parties
      in
      relation with or derived from the operations of the Company carried out on
      or
      after the date hereof.

     

    5. Representations
      of Assignor.
      Assignor hereby represents and warrants to Assignee that, as of the date
      hereof:

     

    
      	 	
              (a)

            	
              Assignor
                is the owner of its Assigned Interest; and

            

    

     

    
      	 	
              (b)

            	
              Assignor
                has not previously encumbered, sold or assigned the Assigned Interest
                (except with respect to encumbrances and other transfer restrictions
                imposed by the LLC Agreement, the Unitholders Agreement and/or applicable
                laws (including, without limitation, applicable securities
                laws)).

            

    

     

    6. Representations
      of Assignee.
      By
      executing this Agreement, the Assignee hereby makes to the Company and each
      other Member, as of the date hereof, each of the Assignee's representations
      and
      warranties as a Member in Section 3.5 of the LLC Agreement.

     

    7. Further
      Assurance.
      Each of
      the parties to this Agreement agrees that at any time and from time to time,
      it
      shall promptly and duly execute and deliver any and all such further instruments
      and documents and take such further action as may reasonably be necessary in
      order to give full effect to this Agreement and of the rights and powers herein
      granted. Without limitation, upon execution and delivery of this Agreement,
      the
      Assignee shall execute and deliver to the Company and each other Member a
      counterpart to the Unitholders Agreement.

     

    8. Amendment.
      This
      Agreement may be changed, modified or terminated only by an instrument in
      writing signed by each of the parties hereto.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    9. Governing
      Law.
      This
      Agreement shall be governed by and construed under the law of the State of
      Delaware, without regard to the conflict of law principles thereof.

     

    10. Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed an original, but all of which together shall constitute one and the
      same
      instrument.

     

    11. Entire
      Agreement.
      This
      Agreement constitutes the sole understanding of the parties with respect to
      the
      subject matter hereto.

     

    [Signature
      pages following.]

    
      
        
          NY3:#7400967v15 

           

        

        
        

      

      
        
        

        
          

        

      

      
        
        

        
        

      

    

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      as
      of the date indicated above. 

    

    

    ASSIGNOR:

    [ASSIGNING
      MEMBER]

    

    

    By:_________________________________

    Name:

    Title:

    

    ASSIGNEE:

    [NAME
      OF
      ASSIGNEE]

    

    

    By:_________________________________

    Name:

    Title:

    

    

    By
      its
      execution of this Agreement, Merit Capital Advance, LLC hereby acknowledges
      that
      the Assignor shall be released from all of its obligations under the LLC
      Agreement accruing from and after the Effective Time

    

    MERIT
      CAPITAL ADVANCE, LLC

    

    By:
      [__________],

    as
      Managing Member

     

    

    By:_________________________________

    Name:

    Title:

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

    

    Exhibit
      D

    Form
      of
      Merchant Advance Contract

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      E

    Form
      of
      Participation Agreement

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      F

    Form
      of
      Class A Note

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Exhibit
      G

    Underwriting
      Manual

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