Document:

______,
      2010

            
	 
      	
              Weston,
      Florida

            

    

    

    PROMISSORY
NOTE

    

    For value
received, and on the terms and subject to the conditions set forth herein, Next
1 Interactive, Inc., a Nevada corporation (the “Company”), HEREBY
PROMISES TO PAY to the order of Mark A. Wilton (“Wilton”), or his
registered assigns (the “Noteholder”), on the
Maturity Date (as defined below), the principal sum of up to three million five
hundred thousand dollars ($3,500,000) (the “Loan”), plus any
fees, unpaid interest accrued thereon, or such lesser amount as shall be equal
to the unpaid principal amount of the Loan plus such interest. The loan is
intended to act as a revolving line of credit for the company based on the
company complying with the terms and conditions imposed by the Noteholder. These
terms and conditions include the Company agreeing to make principal repayments
and to pay interest on the dates and at the rate or rates provided for herein.
At no time will this loan exceed $3,500,000 including any interest
due.

    

    The
Noteholder will advance funds based upon a schedule - see “Addendum A” showing
the anticipated loan drawdown, fees and loan repayment. The parties agree that
the drawdown schedules and corresponding repayments are estimates based upon
pending contracts and the parties may mutually agree to modify the amounts
advanced and corresponding repayments based upon the actual delivery dates of
pending contracts and associated company requirements. The Company will agree to
deliver to the Noteholder a weekly projection of cash needs for the next 7 days
along with a review of cash expended or the previous 7 days. Any unused cash
will be rolled into future expenditure requirements.

    

    The
company will agree to issue to the Noteholder between three million five hundred
thousand and seven million (3,500,000 to 7,000,000) warrants (the “Warrants”).  The
warrants will allow the Noteholder to purchase shares of the Company’s common
stock, par value $0.00001 per share (the “Common Stock”), at an
exercise price of one dollar ($1.00) per share (the “Exercise
Price”).  The Warrants shall be exercisable for a period of
three (3) years from the date of grant.  The number of shares
purchasable upon exercise of the Warrants shall be equal to one (1) share for
each warrant (the “Warrant
Shares”).  The company anticipates utilizing the full
$3,500,000 loan and will agree to advance the full 7 million warrants on or
before March 15th
2010.

    

    SECTION
1.     Certain Terms
Defined.  The following terms for all purposes of this Note
shall have the respective meanings specified below.

    

    “Business Day” means
any day except a Saturday, Sunday or other day on which commercial banks in New
York, New York are authorized by law to close.

    

    “Commission” has the
meaning set forth in Section 9(d).

    

    “Common Stock” has the
meaning set forth in the introductory paragraphs.

    

    “Company” has the
meaning set forth in the introductory paragraphs.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    “Event of Default” has
the meaning set forth in Section 7.

    

    “Exchange Act” has the
meaning set forth in Section 9(d).

    

    “Exercise Price” has
the meaning set forth in the introductory paragraphs.

    

    “GAAP” has the meaning
set forth in Section 9(b).

    

    “Loan” has the meaning
set forth in the introductory paragraphs.

    

    “Material Adverse
Effect” has the meaning set forth in Section 8(c).

    

    “Maturity Date” means
the earlier of (i) January 25, 2011, or (ii) the date on which the amounts due
under this Note have been accelerated and are immediately due and payable
pursuant to the terms hereof; provided that if such date is not a Business Day,
then such date shall be the next succeeding Business Day.

    

    “Note” shall mean this
Promissory Note as amended, from time to time, in accordance with the terms
hereof.

    

    “Noteholder(s)” has
the meaning set forth in the introductory paragraphs.

    

    “Notice” has the
meaning set forth in Section 2.

    

    “Period” means from
the date hereof to the earlier of (i) the Maturity Date, or (ii) the date of
occurrence of an Event of Default.

    

    “Securities Act” has
the meaning set forth in Section 8(e).

    

    “Segregated Account”
means a segregated account maintained by the Company for the sole purpose of
holding Resort & Residence TV, Inc. receivable collections as collateral for
the Loan.

    

    “Subsidiary” means any
corporation or other entity of which at least a majority of the securities or
other ownership interest having ordinary voting power (absolutely or
contingently) for the election of directors or other persons performing similar
functions are at the time owned directly or indirectly by the Company and/or any
of its other Subsidiaries.

    

    “Warrants” has the
meaning set forth in the introductory paragraphs.

    

    “Warrant Shares” has
the meaning set forth in the introductory paragraphs.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    

    SECTION
2.     Loan Drawdown.

     

    The Loan
will be drawn down weekly based on the company presenting updated cash requests
that outline use of proceeds for the lender approval.  The company
will pay down the debt out of its cash receipts until such time as the entire
outstanding balance has been retired.

     

    

    SECTION
3.    Maturity Date.

    

    The Loan
shall mature, and the principal amount thereof shall become immediately due and
payable (together with unpaid interest accrued thereon) on the Maturity
Date.

    

    SECTION
4.     Interest
Payments.

    

    Interest
shall accrue from the date hereof at a rate equal to six percent (6%) per annum,
based on the amount borrowed. The rate may increase and/or decrease as the loan
is predicated on LIBOR or Prime Rate and the loan will increase or decrease as
they change.

    

    Interest
shall be payable quarterly in arrears to the Note holder out of the Segregated
Account on the last day of the Company’s fiscal quarter (or if any such day is
not a Business Day, then on the next succeeding Business Day) provided, however,
the first interest payment shall not be due until April 15th ,
2010.  Interest shall be computed on the basis of a year of three
hundred and sixty five (365) days and paid for the actual number of days
elapsed.

    

    SECTION
5.     Optional
Prepayments.

    

    The
Company may prepay the Loan in whole or in part at any time or from time to time
without penalty or premium by paying the principal amount to be prepaid together
with accrued interest thereon to the date of prepayment.  Any such
prepayments made under this Section 5 shall be in minimum increments of two
hundred thousand dollars ($200,000) or lesser amounts if the parties
agree.

    

    SECTION
6.     General Provisions as to
Payments.

    

     All payments of
principal and interest on the Loan by the Company hereunder shall be made not
later than 12:00 Noon (New York City time) on the date when due either by
cashier’s check, certified check or by wire transfer of immediately available
funds to the Noteholder’s account at a bank specified by the Noteholder in
writing to the Company, without reduction by reason of any set-off or
counterclaim.

    

    SECTION
7.    Events of
Default.

    

    Each of
the following events shall constitute an “Event of
Default”:

    

    (a)           the
principal of the Loan shall not be paid when due;

    

    (b)           any
interest on the Loan shall not be paid within five (5) Business Days of when it
was due;

    

    (c)           the
Company breaches any covenant hereunder and such breach is not cured within
forty five (45) days after notice from the Noteholder;

     

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    

    (d)           any
representation or warranty of the Company made in this Note shall be incorrect
when made in any material respect;

    

    (e)           a
court shall enter a decree or order for relief in respect of the Company or any
Subsidiary in an involuntary case under any applicable bankruptcy, insolvency or
other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Company or any Subsidiary or for any substantial part of the property of the
Company or any Subsidiary or ordering the winding up or liquidation of the
affairs of the Company or any Subsidiary, and such decree or order shall remain
unstayed and in effect for a period of sixty (60) consecutive days;
or

    

    (f)           the
Company or any Subsidiary shall commence a voluntary case under any applicable
bankruptcy, insolvency or other similar law now or hereafter in effect, or
consent to the entry of an order for relief in an involuntary case under any
such law, or consent to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator (or similar official) of
the Company or any Subsidiary or for any substantial part of the property of the
Company or any Subsidiary, or the Company or any Subsidiary shall make any
general assignment for the benefit of creditors.

    

    If an
Event of Default described in (e) or (f) above shall occur, the principal of and
accrued interest on the Loan shall become immediately due and payable without
any declaration or other act on the part of the
Noteholder.  Immediately upon the occurrence of any Event of Default
described in (e) or (f) above, or upon failure to pay this Note on demand, the
Noteholder, without any notice to the Company, which notice is expressly waived
by the Company, may proceed to protect, enforce, exercise and pursue any and all
rights and remedies available to the Noteholder under this Note, or at law or in
equity.

    

    If any
Event of Default in (a) – (d) above shall occur for any reason, whether
voluntary or involuntary, and be continuing, the Noteholder may by notice to the
Company declare all or any portion of the outstanding principal amount of the
Loan to be due and payable, whereupon the full unpaid amount of the Loan which
shall be so declared due and payable shall be and become immediately due and
payable without further notice, demand or presentment.

    

    SECTION
8.     Representations.

    

    The
Company hereby represents and warrants to the Noteholder, as
follows:

    

    (a)           The
Company is a corporation duly incorporated, validly existing and in good
standing under the laws of the state of Nevada and has the requisite corporate
power to own, lease and operate its properties and assets and to conduct its
business as it is now being conducted.  Each Subsidiary is a
corporation duly incorporated, validly existing and in good standing under the
laws of its jurisdiction of organization and has the requisite corporate power
to own, lease and operate its properties and assets and to conduct its business
as it is now being conducted.

     

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    

    (b)           The
Company has the requisite legal and corporate power and authority to enter into,
issue and perform this Note and the Warrants in accordance with the terms hereof
and thereof.  The execution, delivery and performance of this Note and
the Warrants by the Company and the consummation by it of the transactions
contemplated hereby or thereby have been duly and validly authorized by all
necessary corporate action, and no further consent or authorization of the
Company, its board of directors or stockholders is required.  When
executed and delivered by the Company, this Note and the Warrants shall
constitute valid and binding obligations of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor's rights and remedies or by other
equitable principles of general application.

    

    (c)           The
execution, delivery and performance of this Note and the Warrants and the
consummation by the Company of the transactions contemplated hereby or thereby,
do not and will not (i) violate or conflict with any provision of the Company's
certificate of incorporation or bylaws, each as amended to date, or any
Subsidiary's comparable charter documents, (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, mortgage, deed of trust,
indenture, note, bond, license, lease agreement, instrument or obligation to
which the Company or any of its Subsidiaries is a party or by which the Company
or any of its Subsidiaries' respective properties or assets are bound, or (iii)
result in a violation of any federal, state, local or foreign statute, rule,
regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or any of its Subsidiaries or by
which any property or asset of the Company or any of its Subsidiaries are bound
or affected, except, in the case of clauses (ii) and (iii) above, for any such
default or violation that would not, individually or in the aggregate, have a
material adverse effect on the business, properties, management, financial
position, results of operations or prospects of the Company and its Subsidiaries
taken as a whole (a “Material Adverse
Effect”).  Neither the Company nor any of its Subsidiaries is
required under federal, state, foreign or local law, rule or regulation to
obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under this Note or any of the
Warrants.

    

    (d)           The
Company is not required to obtain any consent, authorization or order of, or
make any filing or registration with, any court, governmental agency or any
regulatory or self-regulatory agency or any other person in order for it to
execute, deliver or perform any of its obligations under or contemplated by this
Note or any of the Warrants, except where the failure to obtain any such
consent, authorization or order, or the failure to make any such filing or
registration, could not reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect.  All consents, authorizations,
orders, filings and registrations which the Company is required to obtain
pursuant to the preceding sentence have been obtained or effected on or prior to
the date hereof.

     

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    

    (e)           The
Warrants when issued and delivered will be duly and validly issued and will be
free of all liens and restrictions on transfer other than any restrictions on
transfer under the Securities Act of 1933, as amended (the “Securities
Act”).

    

    (f)           The
Warrant Shares have been duly reserved for issuance by the Company in sufficient
number to cover the exercise of all of the Warrants.  The issuance of
the Warrant Shares upon exercise of the Warrants has been duly authorized by the
Company and the Warrant Shares when delivered in accordance with the Warrants,
will be validly issued, fully paid and non-assessable, and free of all liens and
restrictions on transfer other than any restrictions on transfer under the
Securities Act.

    

    (g)           The
offer, issuance, sale and delivery of the Warrants and Warrant Shares will not
under current laws and regulations require compliance with the prospectus
delivery or registration requirements of the Securities Act.

    

    SECTION
9.     Covenants.

    

    (a)           The
Company and each Subsidiary shall maintain its existence and authority to
conduct its business as presently contemplated to be conducted;

    

    (b)           The
Company shall keep and cause each Subsidiary to keep adequate records and books
of account, in which complete entries will be made in accordance with United
States generally accepted accounting principles (“GAAP”) consistently
applied, reflecting all financial transactions of the Company and its
Subsidiaries, and in which, for each fiscal year, all proper reserves for
depreciation, depletion, obsolescence, amortization, taxes, bad debts and other
purposes in connection with its business shall be made;

    

    (c)           The
Company shall not enter into any agreement in which the terms of such agreement
would restrict or impair the right or ability to perform of the Company or any
Subsidiary under this Note or any of the Warrants;

    

    (d)           The
Company shall timely file all reports required to be filed with the Securities
and Exchange Commission (the “Commission”) pursuant
to the Securities and Exchange Act of 1934, as amended, (the “Exchange Act”), and
the Company shall not terminate its status as an issuer required to file reports
under the Exchange Act even if the Exchange Act or the rules and regulations
thereunder would permit such termination.

    

    (e)           The
Company agrees that it will not, without the consent of the Noteholder enter
into any new agreement or make any amendment to any existing agreement, which by
its terms would restrict the Company’s performance of its obligations to the
Noteholder pursuant to this Note.

     

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    

    (f)           The
Company shall place all receivable collections received from Resort &
Residence, into the Segregated Account.  Such funds shall be used for
the sole purpose of making principal and interest payments related to the
Loan.

    

    SECTION 10.  Transfers.

    

    The
Company may not transfer or assign this Note nor any right or obligation
hereunder to any person or entity without the prior written consent of the
Noteholder.  The Noteholder may not transfer or assign this Note nor
any right or obligation hereunder to any person or entity without the prior
written consent of the Company.

    

    SECTION
11.   Powers and Remedies Cumulative;
Delay or Omission Not Waiver of Event of Default.

    

    No right
or remedy herein conferred upon or reserved to the Noteholder is intended to be
exclusive of any other right or remedy, and every right and remedy shall, to the
extent permitted by law, be cumulative and in addition to every other right and
remedy given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment of any right or remedy
hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

    

    No delay
or omission of the Noteholder to exercise any right or power accruing upon any
Event of Default occurring and continuing as aforesaid shall impair any such
right or power or shall be construed to be a waiver of any Event of Default or
an acquiescence therein; and every power and remedy given by this Note or by law
may be exercised from time to time, and as often as shall be deemed expedient,
by the Noteholder.

    

    SECTION 12.  Modification.

    

    This Note
may be modified in writing only with the written consent of both the Company and
the Noteholder.

    

    SECTION 13.  Attorneys Fees/Enforcement
Costs.

    

    (a)           The
Company will reimburse the Noteholder for reasonable legal fees and expenses in
connection with the transactions contemplated hereby, including without
limitation the negotiation, documentation and execution of this Note and the
Warrants and (ii) any amendments to any of the documents contemplated in (i)
above, and

    

    (b)           In
the event that this Note is collected by law or through attorneys at law, or
under advice therefrom, the Company agrees to pay all costs of collection,
including reasonable attorneys’ fees, whether or not suit is brought, and
whether incurred in connection with collection, trial, appeal, bankruptcy or
other creditors’ proceedings or otherwise.

     

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    

    SECTION 14.  Indemnification

    

    The
Company agrees to indemnify and hold harmless the Noteholder (and their
respective directors, officers, managers, partners, members, shareholders,
affiliates, agents, successors and assigns) (each an “Indemnified Party”)
from and against any and all losses, liabilities, deficiencies, costs, damages
and expenses (including, without limitation, reasonable attorneys’ fees, charges
and disbursements) incurred by such Indemnified Party as a result of any
inaccuracy in or breach of the representations, warranties or covenants made by
the Company herein.

    

    SECTION 15.  Miscellaneous.

    

    (a)           The
parties hereto hereby waive presentment, demand, notice, protest and all other
demands and notices in connection with the delivery, acceptance, performance and
enforcement of or any default under this Note, except as specifically provided
herein.

    

    (b)           Any
provision of this Note which is illegal, invalid, prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such illegality, invalidity, prohibition or unenforceability without
invalidating or impairing the remaining provisions hereof or affecting the
validity or enforceability of such provision in any other
jurisdiction.

     

    (c)           This
Note shall bind the Company and its successors and permitted
assigns.  The rights under and benefits of this Note shall inure to
the Noteholder and their successors and assigns.

    

    (d)           The
Section headings herein are for convenience only and shall not affect the
construction hereof.

    

    (e)           All
notices, requests, demands, consents, instructions or other communications
required or permitted hereunder shall be made in writing and faxed, mailed or
delivered to each party at the respective addresses of the parties, or at such
other address or facsimile number as the Company shall have furnished to the
Noteholder in writing.  All such notices and communications will be
deemed effectively given the earlier of (i) when received, (ii) when delivered
personally, (iii) one (1) business day after being delivered by facsimile (with
receipt of appropriate confirmation), (iv) one (1) business day after being
deposited with an overnight courier service of recognized standing or (v) on
receipt of confirmation of delivery.

    

    (f)           In
the event any interest is paid on this Note, which is deemed to be in excess of
the then legal maximum rate, then that portion of the interest payment
representing an amount in excess of the then legal maximum rate shall be deemed
a payment of principal and applied against the principal of this
Note.

    

    THIS
NOTE HAS BEEN DELIVERED IN WESTON, FLORIDA AND SHALL BE DEEMED TO BE A CONTRACT
MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF FLORIDA, WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES.

     

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    

    THE
COMPANY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF THE COURTS OF THE STATE OF FLORIDA AND OF THE UNITED STATES DISTRICT COURT OF
THE SOUTHERN DISTRICT OF FLORIDA FOR THE PURPOSE OF ANY LITIGATION ARISING
HEREUNDER.  THE COMPANY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF
PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR
WITHOUT THE STATE OF FLORIDA.  THE COMPANY HEREBY EXPRESSLY AND
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION
BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

    

    BY
ITS ACCEPTANCE OF THIS NOTE THE NOTEHOLDER AND THE COMPANY HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY
IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN
CONNECTION WITH, THIS NOTE, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER ORAL OR WRITTEN) OR ACTIONS OF THE NOTEHOLDER OR THE
COMPANY.  THE COMPANY ACKNOWLEDGES AND AGREES THAT IT HAS RECEIVED
FULL AND SUFFICIENT CONSIDERATION FOR THIS PROVISION AND THAT THIS PROVISION IS
A MATERIAL INDUCEMENT FOR THE NOTEHOLDER MAKING THE LOAN EVIDENCED
HEREBY.

     

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, the
Company has caused this instrument to be duly executed on the date indicated
above.

    

    
      
        	 	NEXT 1
      INTERACTIVE, INC.	 
	 	 	 	 
	
                 

              	
                By:
      

              	 	 
	 	Name: 
      	William
      Kerby	 
	 	Title:
      	Chief
      Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	THE
      NOTEHOLDER	 
	 	 	 	 
	 	By:
      	 	 
	 	Name:
      	Mark
      Wilton	 

      

    

     

    

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    

     

    Addendum
“A”

     

    
      
         

      

      
        11Exhibit
10.1

    

    

     

    CREDIT
AND SECURITY AGREEMENT

     

    DATED
AS OF MARCH 5, 2010

     

    BETWEEN

     

    COLE
TAYLOR BANK

     

    THE
LENDER,

     

    AND

     

    CLARK
HOLDINGS INC., THE CLARK GROUP, INC., CLARK DISTRIBUTION

    SYSTEMS,
INC., HIGHWAY DISTRIBUTIONS SYSTEMS, INC., CLARK

    WORLDWIDE
TRANSPORTATION, INC. AND EVERGREEN EXPRESS LINES, INC.

     

    INDIVIDUALLY
A BORROWER AND COLLECTIVELY, THE BORROWERS

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      TABLE
OF CONTENTS

       

    

    
      
        
          
            
              
                
                  	 	 	
                          Page

                        
	 	 	 
	
                          1.

                        	
                          DEFINITIONS

                        	
                          1

                        
	 
      	
                          1.01

                        	
                          Certain
      Defined Terms

                        	
                          1

                        
	 
      	
                          1.02

                        	
                          Other
      Definitional Terms; Rules of Interpretation

                        	
                          13

                        
	
                          2.

                        	
                          LOANS

                        	
                          14

                        
	 
      	
                          2.01

                        	
                          Revolving
      Loans

                        	
                          14

                        
	 
      	
                          2.02

                        	
                          Requests
      for Revolving Loans

                        	
                          14

                        
	 
      	
                          2.03

                        	
                          Intentionally
      Omitted

                        	
                          14

                        
	 
      	
                          2.04

                        	
                          Intentionally
      Omitted

                        	
                          14

                        
	 
      	
                          2.05

                        	
                          Intentionally
      Omitted

                        	
                          15

                        
	 
      	
                          2.06

                        	
                          Intentionally
      Omitted

                        	
                          15

                        
	 
      	
                          2.07

                        	
                          Repayments

                        	
                          15

                        
	 
      	
                          2.08

                        	
                          Notes

                        	
                          15

                        
	 
      	
                          2.09

                        	
                          Bank
      Products

                        	
                          15

                        
	
                          3.

                        	
                          LETTERS
      OF CREDIT

                        	
                          16

                        
	 
      	
                          3.01

                        	
                          General
      Terms

                        	
                          16

                        
	 
      	
                          3.02

                        	
                          Requests
      for Letters of Credit

                        	
                          16

                        
	 
      	
                          3.03

                        	
                          Obligations
      Absolute

                        	
                          17

                        
	 
      	
                          3.04

                        	
                          Expiration
      Dates of Letters of Credit

                        	
                          17

                        
	
                          4.

                        	
                          INTEREST,
      FEES AND CHARGES

                        	
                          17

                        
	 
      	
                          4.01

                        	
                          Interest
      Rate

                        	
                          17

                        
	 
      	
                          4.02

                        	
                          Default
      Interest Rate

                        	
                          17

                        
	 
      	
                          4.03

                        	
                          Interest
      Payments

                        	
                          18

                        
	 
      	
                          4.04

                        	
                          Other
      LIBOR Provisions

                        	
                          18

                        
	 
      	
                          4.05

                        	
                          Fees
      And Charges

                        	
                          19

                        
	 
      	
                          4.06

                        	
                          Maximum
      Interest

                        	
                          21

                        
	
                           

                        	
                          4.07 
      

                        	
                          Authorization
      to Make Revolving Loans

                        	
                          21

                        
	
                           

                        	
                          4.08 
      

                        	
                          Computation
      of Interest and Fees

                        	
                          21

                        
	
                           

                        	
                          4.09 
      

                        	
                          Taxes

                        	
                          21

                        

                

              

            

          

        

      

      
        
           

        

        
          -i-

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                	
                        5.

                      	
                        COLLATERAL

                      	
                        22

                      
	 
      	
                        5.01

                      	
                        Grant
      of Security Interest to Lender

                      	
                        22

                      
	 
      	
                        5.02

                      	
                        Other
      Security

                      	
                        23

                      
	 
      	
                        5.03

                      	
                        Possessory
      Collateral

                      	
                        23

                      
	 
      	
                        5.04

                      	
                        Electronic
      Chattel Paper

                      	
                        23

                      
	 
      	
                        5.05

                      	
                        Possession
      of Collateral

                      	
                        23

                      
	 
      	
                        5.06

                      	
                        Pledged
      Collateral

                      	
                        24

                      
	 
      	
                        5.07

                      	
                        Assignment
      of Insurance

                      	
                        24

                      
	 
      	
                        5.08

                      	
                        Preservation
      of Collateral and Perfection of Security Interests

                      	
                        25

                      
	
                        6.

                      	
                        COLLECTIONS

                      	
                        26

                      
	 
      	
                        6.01

                      	
                        Lockbox
      and Blocked Account

                      	
                        26

                      
	 
      	
                        6.02

                      	
                        Collection
      of Accounts

                      	
                        26

                      
	 
      	
                        6.03

                      	
                        Application
      of Collected Funds

                      	
                        27

                      
	 
      	
                        6.04

                      	
                        Account
      Statements

                      	
                        27

                      
	
                        7.

                      	
                        COLLATERAL,
      AVAILABILITY AND FINANCIAL REPORTS AND SCHEDULES

                      	
                        27

                      
	 
      	
                        7.01

                      	
                        Weekly
      Reports

                      	
                        27

                      
	 
      	
                        7.02

                      	
                        Monthly
      Reports

                      	
                        28

                      
	 
      	
                        7.03

                      	
                        Financial
      Statements

                      	
                        28

                      
	 
      	
                        7.04

                      	
                        Annual
      Projections

                      	
                        28

                      
	 
      	
                        7.05

                      	
                        Explanation
      of Budgets and Projections

                      	
                        28

                      
	 
      	
                        7.06

                      	
                        Public
      Reporting

                      	
                        29

                      
	 
      	
                        7.07

                      	
                        Other
      Information

                      	
                        29

                      
	
                        8.

                      	
                        TERMINATION;
      AUTOMATIC RENEWAL

                      	
                        29

                      
	 
      	
                        8.01

                      	
                        Original
      Term

                      	
                        29

                      
	 
      	
                        8.02

                      	
                        Intentionally
      Omitted

                      	
                        29

                      
	 
      	
                        8.03

                      	
                        Termination
      of Agreement

                      	
                        29

                      
	
                        9.

                      	
                        REPRESENTATIONS
      AND WARRANTIES

                      	
                        30

                      
	 
      	
                        9.01

                      	
                        Financial
      Statements and Other Information

                      	
                        30

                      
	 
      	
                        9.02

                      	
                        Locations

                      	
                        30

                      
	 
      	
                        9.03

                      	
                        Loans
      by Borrowers

                      	
                        30

                      
	 
      	
                        9.04

                      	
                        Accounts

                      	
                        30

                      
	 
      	
                        9.05

                      	
                        Liens

                      	
                        30

                      

              

            

          

        

      

      
        
           

        

        
          -ii-

          
            

          

        

        
           

        

      

      

      
        
          
            
              	 
      	
                      9.06

                    	
                      Organization,
      Authority and No Conflict

                    	
                      31

                    
	 
      	
                      9.07

                    	
                      Litigation

                    	
                      31

                    
	 
      	
                      9.08

                    	
                      Compliance
      with Laws and Maintenance of Permits

                    	
                      31

                    
	 
      	
                      9.09

                    	
                      Affiliate
      Transactions

                    	
                      31

                    
	 
      	
                      9.10

                    	
                      Names
      and Trade Names

                    	
                      32

                    
	 
      	
                      9.11

                    	
                      Equipment

                    	
                      32

                    
	 
      	
                      9.12

                    	
                      Enforceability

                    	
                      32

                    
	 
      	
                      9.13

                    	
                      Solvency

                    	
                      32

                    
	 
      	
                      9.14

                    	
                      Indebtedness

                    	
                      32

                    
	 
      	
                      9.15

                    	
                      Margin
      Security and Use of Proceeds

                    	
                      32

                    
	 
      	
                      9.16

                    	
                      Parent,
      Subsidiaries and Affiliates

                    	
                      33

                    
	 
      	
                      9.17

                    	
                      No
      Defaults

                    	
                      33

                    
	 
      	
                      9.18

                    	
                      Employee
      Matters

                    	
                      33

                    
	 
      	
                      9.19

                    	
                      Intellectual
      Property

                    	
                      33

                    
	 
      	
                      9.20

                    	
                      Environmental
      Matters

                    	
                      34

                    
	 
      	
                      9.21

                    	
                      ERISA
      Matters

                    	
                      34

                    
	 
      	
                      9.22

                    	
                      Intentionally
      Omitted

                    	
                      34

                    
	
                      10.

                    	
                      AFFIRMATIVE
      COVENANTS

                    	
                      35

                    
	 
      	
                      10.01

                    	
                      Maintenance
      of Records

                    	
                      35

                    
	 
      	
                      10.02

                    	
                      Notices

                    	
                      35

                    
	 
      	
                      10.03

                    	
                      Compliance
      with Laws and Maintenance of Permits

                    	
                      36

                    
	 
      	
                      10.04

                    	
                      Inspection
      and Audits

                    	
                      37

                    
	 
      	
                      10.05

                    	
                      Insurance

                    	
                      37

                    
	 
      	
                      10.06

                    	
                      Collateral

                    	
                      38

                    
	 
      	
                      10.07

                    	
                      Use
      of Proceeds

                    	
                      38

                    
	 
      	
                      10.08

                    	
                      Taxes

                    	
                      38

                    
	 
      	
                      10.09

                    	
                      Intellectual
      Property

                    	
                      39

                    
	 
      	
                      10.10

                    	
                      Checking
      Accounts and Cash Management Services

                    	
                      39

                    
	 
      	
                      10.11

                    	
                      Patriot
      Act, Bank Secrecy Act and Office of Foreign Assets Control

                    	
                      39

                    
	
                      11.

                    	
                      NEGATIVE
      COVENANTS

                    	
                      39

                    
	 
      	
                      11.01

                    	
                      Guaranties

                    	
                      40

                    
	 
      	
                      11.02

                    	
                      Indebtedness

                    	
                      40

                    

            

          

        

      

      
        
           

        

        
          -iii-

          
            

          

        

        
           

        

      

      

      
        
          
            
              	 
      	
                      11.03

                    	
                      Liens

                    	
                      40

                    
	 
      	
                      11.04

                    	
                      Mergers,
      Sales, Acquisitions, Subsidiaries and Other Transactions Outside the
      Ordinary Course of Business

                    	
                      40

                    
	 
      	
                      11.05

                    	
                      Dividends
      and Distributions

                    	
                      41

                    
	 
      	
                      11.06

                    	
                      Investments;
      Loans

                    	
                      41

                    
	 
      	
                      11.07

                    	
                      Fundamental
      Changes, Line of Business

                    	
                      41

                    
	 
      	
                      11.08

                    	
                      Equipment

                    	
                      41

                    
	 
      	
                      11.09

                    	
                      Affiliate
      Transactions

                    	
                      41

                    
	 
      	
                      11.10

                    	
                      Settling
      of Accounts

                    	
                      41

                    
	 
      	
                      11.11

                    	
                      Intentionally
      Omitted

                    	
                      42

                    
	 
      	
                      11.12

                    	
                      ERISA

                    	
                      42

                    
	 
      	
                      11.13

                    	
                      Subordinated
      Debt

                    	
                      42

                    
	
                      12.

                    	
                      FINANCIAL
      COVENANTS

                    	
                      42

                    
	 
      	
                      12.01

                    	
                      Intentionally
      Omitted

                    	
                      42

                    
	 
      	
                      12.02

                    	
                      Fixed
      Charge Coverage

                    	
                      42

                    
	 
      	
                      12.03

                    	
                      Intentionally
      Omitted

                    	
                      42

                    
	 
      	
                      12.04

                    	
                      Intentionally
      Omitted

                    	
                      42

                    
	 
      	
                      12.05

                    	
                      Intentionally
      Omitted

                    	
                      43

                    
	 
      	
                      12.06

                    	
                      Intentionally
      Omitted

                    	
                      43

                    
	
                      13.

                    	
                      DEFAULT
      AND REMEDIES

                    	
                      43

                    
	 
      	
                      13.01

                    	
                      Events
      of Default

                    	
                      43

                    
	 
      	
                      13.02

                    	
                      Remedies

                    	
                      45

                    
	
                      14.

                    	
                      CONDITIONS
      PRECEDENT

                    	
                      46

                    
	 
      	
                      14.01

                    	
                      Conditions
      Precedent to Initial Loans

                    	
                      46

                    
	 
      	
                      14.02

                    	
                      Conditions
      Precedent to All Loans

                    	
                      47

                    
	
                      15.

                    	
                      GENERAL
      PROVISIONS

                    	
                      47

                    
	 
      	
                      15.01

                    	
                      Indemnification

                    	
                      47

                    
	 
      	
                      15.02

                    	
                      Notice

                    	
                      48

                    
	 
      	
                      15.03

                    	
                      Governing
      Law; Construction; Forum Selection

                    	
                      48

                    
	 
      	
                      15.04

                    	
                      Modification
      and Benefit of Agreement

                    	
                      49

                    
	 
      	
                      15.05

                    	
                      Headings
      of Subdivisions

                    	
                      49

                    
	 
      	
                      15.06

                    	
                      Power
      of Attorney

                    	
                      49

                    

            

          

        

      

      
        
           

        

        
          -iv-

          
            

          

        

        
           

        

      

      

      
        
          
            
              	 
      	
                      15.07

                    	
                      Confidentiality

                    	
                      49

                    
	 
      	
                      15.08

                    	
                      Counterparts

                    	
                      49

                    
	 
      	
                      15.09

                    	
                      WAIVER
      OF JURY TRIAL; OTHER WAIVERS

                    	
                      50

                    
	
                      16.

                    	
                      JOINT
      AND SEVERAL LIABILITY

                    	
                      51

                    

            

          

        

      

      
        
           

        

        
          -v-

          
            

          

        

        
           

        

      

    

     

    EXHIBITS

    

    
      
        	
                A

              	 
      	
                ADVANCE
      REQUEST FORM

              
	
                B

              	 
      	
                FORM
      OF COMPLIANCE CERTIFICATE

              
	
                C

              	 
      	
                FORM
      OF GRANT OF SECURITY INTEREST IN TRADEMARKS AND PATENTS

              
	
                D

              	
                 

              	
                FORM
      OF GRANT OF SECURITY INTEREST IN
COPYRIGHTS

              

      

    

     

    SCHEDULES

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      	
                                              1.01-A

                                            	 
      	
                                              APPLICABLE
      MARGINS

                                            
	
                                              1.01-B

                                            	 
      	
                                              ACCOUNT
      CONCENTRATION EXCEPTIONS

                                            
	
                                              1.01-C

                                            	 
      	
                                              EXISTING
      LIENS

                                            
	
                                              5.01

                                            	 
      	
                                              COMMERCIAL
      TORT CLAIMS

                                            
	
                                              9.02

                                            	 
      	
                                              LOCATIONS;
      BANK ACCOUNTS

                                            
	
                                              9.06

                                            	 
      	
                                              ORGANIZATION
      INFORMATION

                                            
	
                                              9.07

                                            	 
      	
                                              LITIGATION

                                            
	
                                              9.09

                                            	 
      	
                                              AFFILIATE
      TRANSACTIONS

                                            
	
                                              9.10

                                            	 
      	
                                              NAMES
      & TRADE NAMES

                                            
	
                                              9.14

                                            	 
      	
                                              EXISTING
      INDEBTEDNESS

                                            
	
                                              9.16

                                            	 
      	
                                              PARENT,
      SUBSIDIARIES & AFFILIATES

                                            
	
                                              9.19

                                            	 
      	
                                              INTELLECTUAL
      PROPERTY

                                            
	
                                              14.01-A

                                            	 
      	
                                              CLOSING
      DELIVERY LIST

                                            
	
                                              14.01-B

                                            	 
      	
                                              SOURCES
      AND USES

                                            
	
                                              15.02

                                            	 
      	
                                              CERTAIN
      ADDRESSES FOR
NOTICES

                                            

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
         

      

      
        -vi-

        
          

        

      

      
         

      

    

    CREDIT AND SECURITY
AGREEMENT

     

    THIS
CREDIT AND SECURITY AGREEMENT (as amended, modified or supplemented from time to
time, this “Agreement”)
made this 5th day of
March 2010, by and between COLE TAYLOR BANK, an Illinois banking corporation
(“Lender”), and CLARK
HOLDINGS INC., a Delaware Corporation, THE CLARK GROUP, INC., a Delaware
Corporation, CLARK DISTRIBUTION SYSTEMS, INC., a Delaware Corporation, HIGHWAY
DISTRIBUTION SYSTEMS, INC., a Delaware Corporation, CLARK WORLDWIDE
TRANSPORTATION, INC., a Pennsylvania Corporation and EVERGREEN EXPRESS LINES,
INC., a Pennsylvania Corporation (individually a “Borrower” and collectively
(the “Borrowers”).

     

    WITNESSETH:

     

    (A)          Borrowers
may, from time to time, request Loans from Lender, and the parties wish to
provide for the terms and conditions upon which such Loans or other financial
accommodations, if made by Lender, shall be made;

     

    (B)           In
consideration of any Loan (including any Loan by renewal or extension) hereafter
made to any of the Borrowers by Lender, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
Borrowers, the parties agree as follows:

     

    
      	
              1.

            	
              DEFINITIONS

            

    

     

    1.01        Certain
Defined Terms.  Except as otherwise expressly provided in this
Agreement, the following terms shall have the meanings given them in this
Section 1.01:

     

    “Account”, “Account Debtor”, “Chattel Paper”, “Commercial Tort Claims”,
“Deposit Accounts”,
“Documents”, “Electronic Chattel Paper”,
“Equipment”, “Fixtures”, “General Intangibles”, “Goods”, “Instruments”, “Inventory”, “Investment Property”, “Letter-of-Credit Right”,
“Proceeds” and “Tangible Chattel Paper” shall
have the respective meanings assigned to such terms in the Uniform Commercial
Code.

     

    “Affiliate” means any Person
(a) which directly or indirectly through one or more intermediaries controls, is
controlled by, or is under common control with, a Borrower, (b) which
beneficially owns or holds five percent (5%) or more of the voting control or
equity interests of a Borrower, or (c) five percent (5%) or more of the voting
control or equity interests of which is beneficially owned or held by a
Borrower.

     

    “Applicable Margin” means, at
any time, the applicable percentage per annum (expressed in basis points) set
forth on Schedule
1.01-A.

     

    “Availability” means, at any
time, the amount, if any, by which the Borrowing Base exceeds the sum of (a) the
outstanding principal balance of the Revolving Loans; plus (b) the Letter
of Credit Obligations.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

     

    “Availability Reserve” means,
as of any date of determination, an amount or a percent of a specified category
or item that Lender, in its sole discretion consistently applied, establishes
from time to time to reduce availability under the Borrowing Base (a) to reflect
events, conditions, contingencies or risks which affect the assets, business or
prospects of Borrowers, or the Collateral or its value, or the enforceability,
perfection or priority of Lender’s Lien in the Collateral, (b) to reflect
Lender’s judgment that any collateral report or financial information relating
to Borrowers and furnished to Lender may be incomplete, inaccurate or misleading
in any material respect, or (c) in respect of any state of facts which does or
would with notice or passage of time or both, constitute an Event of
Default.

     

    “Bank Products” means any
service or facility extended to Borrowers by Lender or any affiliate of Lender
including:  (a) credit cards, (b) credit card processing services, (c)
debit cards, (d) purchase cards, (e) ACH transactions, (f) cash management,
including controlled disbursement, accounts or services, (g) letters of credit,
or (h) Hedging Agreements.

     

    “Blocked Account” means an
account established by Borrowers in Lender’s name maintained with
Lender.

     

    “Borrower” means, individually,
Clark Holdings Inc., The Clark Group, Inc., Clark Distribution Systems, Inc.,
Highway Distribution Systems, Inc., Clark Worldwide Transportation, Inc. and
Evergreen Express Lines, Inc.

     

    “Borrowers” means,
collectively, Clark Holdings Inc., The Clark Group, Inc., Clark Distribution
Systems, Inc., Highway Distribution Systems, Inc., Clark Worldwide
Transportation, Inc. and Evergreen Express Lines, Inc.

     

    “Borrowing Base” means, at any
time, the lesser of:

     

    (a)           The
Maximum Revolving Loan Limit; or

     

    (b)           Subject
to change from time to time in the Lender’s sole discretion consistently
applied, the sum of:

     

    (i)           Eighty-Five
percent (85%) of the Borrowers’ Eligible Accounts provided if Dilution exceeds
five percent (5%), such advance rate shall be reduced by one (1) percentage
point for each whole or partial percentage point by which Dilution exceeds five
percent (5%); plus

     

    (ii)          seventy
percent (70%) of the Borrowers’ Eligible Unbilled Accounts, not to exceed One
Million and No/100 Dollars ($1,000,000.00) in the aggregate; less

     

    (iii)         the
Hedging Obligation Reserve; less

     

    (iv)        
the Availability Reserve; less

     

    (v)         
the Carrier Reserve; less

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    (vi)        a
reserve in the amount of Fifty Thousand and No/100 Dollars ($50,000.00) until a
release of lien is received by the Lender from the Internal Revenue Service
relating to the federal tax lien set forth on Schedule
1.01-C.

     

    “Borrowing Base Certificate”
means a certificate, in form and substance acceptable to Lender, setting forth
the Borrowing Base and the component calculations thereof.

     

    “Business Day” means any day
other than a Saturday, a Sunday or (a) with respect to all matters,
determinations, fundings and payments in connection with LIBOR Rate Loans, any
day on which banks in London, England or Chicago, Illinois are required or
permitted to close, and (b) with respect to all other matters, any day that
banks in Chicago, Illinois are required or permitted to close.

     

    “Capital Expenditures” means
with respect to any period, the aggregate of all expenditures (whether paid in
cash or accrued as liabilities and including expenditures for capitalized lease
obligations) by Borrowers and their respective Subsidiaries during such period
that are required by generally accepted accounting principles, consistently
applied, to be included in or reflected by the property, plant and equipment or
similar fixed asset accounts (or intangible accounts subject to amortization) on
the balance sheets of Borrowers and its Subsidiaries.

     

    “Carrier Reserve” means in the
aggregate of those amounts due by any of the Borrowers to any and all
transportation companies utilized by such Borrower for the transportation or
delivery of any goods on behalf of such Borrower for which such goods have not
been delivered.

     

    “Change of Control” means any
Person or “group” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934) who is not an Owner on the date of this
Agreement is or becomes the “beneficial owner” (as defined in Rules 13d-3 and
13d-5 under the Securities Exchange Act of 1934, except that a Person will be
deemed to have “beneficial ownership” of all securities that such Person has the
right to acquire, whether such right is exercisable immediately or only after
the passage of time), directly or indirectly, of more than fifty percent (50%)
of the voting power of all classes of Owners of any of the
Borrowers.

     

    “Code” means the Internal
Revenue Code of 1986, as amended, and the rules and regulations thereunder, all
as in effect from time to time.

     

    “Collateral” means all of the
property of Borrowers described in Section 5 hereof,
together with all other real or personal property of Borrowers or any other
Person now or hereafter pledged to Lender to secure, either directly or
indirectly, repayment of any of the Obligations.

     

    “Controlled Group” means a
controlled group of corporations as defined in 26 U.S.C. § 1563.

     

    “Default Rate” means an
interest rate equal to two percent (2.0%) per annum in excess of the interest
rate otherwise payable hereunder.

    
      
         

      

      
        3

        
          

        

      

      
         

      

    

    “Dilution” means, with respect
to any period, the percentage obtained by dividing (a) the sum of non-cash
credits against Accounts (including, but not limited to returns,
adjustments  and rebates) of Borrowers for such period, plus pending
or probable, but not yet applied, non-cash credits against Accounts of Borrowers
for such period, as determined by Lender in its reasonable discretion by (b)
gross invoiced sales of Borrowers for such period.

     

    “EBITDA” means, for any period,
the sum of Borrowers’ and their Subsidiaries’: (a) net income after taxes
for such period (excluding extraordinary gains or losses); plus (b) Interest
Expense for such period; plus (c) income tax
expense for such period; plus (d) depreciation
and amortization for such period; plus or minus (e) any
other non-cash charges or gains which have been subtracted or added in
calculating net income after taxes for such period, all on a consolidated
basis.

     

    “Eligible Account” means all
Accounts owing to Borrowers which are acceptable to Lender, in its sole
discretion, for lending purposes, net of any discounts, credits, or allowances,
but excluding any Account having any of the following
characteristics:

     

    (a)           Accounts
which remain unpaid for more than ninety (90) days after their invoice
date;

     

    (b)           Accounts
owing by a single Account Debtor, including a currently scheduled Account, if
twenty-five percent (25%) of the balance owing by said Account Debtor is
ineligible as a result of clause (a) above;

     

    (c)           Accounts
which are not due and payable within seventy-five (75) days after their invoice
dates;

     

    (d)           Accounts
with respect to which the Account Debtor is a director, officer, employee or
agent of a Borrower or is a Parent, a Subsidiary or an Affiliate of a
Borrower;

     

    (e)           Accounts
with respect to which payment by the Account Debtor is or becomes conditional
upon the Account Debtor’s approval of the Goods or services, or is otherwise
subject to any repurchase obligation or return right, as with sales made on a
bill-and-hold (unless the Account Debtor has executed a setoff waiver in form
and substance acceptable to Lender), guaranteed sale, sale on approval, sale or
return or consignment basis;

     

    (f)           Accounts
which are owed by an Account Debtor which (1) does not maintain its chief
executive office in the United States of America or in Canada, or (2) is not
organized under applicable law of the United States of America, any state of the
United States of America, Canada or any province of Canada, unless, in either
case, such Account is either backed by a letter of credit acceptable to Lender
which is in the possession of, has been assigned to and is directly drawable by
Lender, or insured pursuant to a credit insurance policy acceptable to Lender
and such insurance has been assigned to Lender;

     

    (g)           Accounts
with respect to which the Account Debtor is (1) the United States of America or
any department, agency or instrumentality thereof, unless a Borrower assigns its
right to payment of such Accounts to Lender in accordance with the Assignment of
Claims Act of 1940, as amended, or (2) any country other than the United States
of America or any department, agency or instrumentality
thereof;

    
      
         

      

      
        4

        
          

        

      

      
         

      

    

    (h)           The
face amount of any Accounts with respect to which Borrowers are or may become
liable to the Account Debtor for Goods sold or services rendered by such Account
Debtor to Borrowers, but only to the extent of the maximum aggregate amount of
Borrowers’ liability to such Account Debtor;

     

    (i)           
Accounts with respect to which (1) the Goods giving rise thereto have not been
shipped and delivered to and accepted as satisfactory by the Account Debtor, or
(2) the services performed have not been completed and accepted as satisfactory
by the Account Debtor;

     

    (j)           
Accounts which have not been invoiced, dated and sent to an Account Debtor after
the acceptance of  the performance of the services giving rise
thereto;

     

    (k)           Accounts
with respect to which possession or control of the goods sold is held,
maintained or retained by Borrowers, or by any agent or custodian of Borrowers,
for the account of or subject to further or future direction from the Account
Debtor;

     

    (l)           
Accounts which are owing by any Account Debtor involved as a debtor in any
bankruptcy or other state or federal insolvency proceeding, whether voluntary or
involuntary;

     

    (m)          Accounts
which arise in any manner other than the sale of inventory or services in the
ordinary course of Borrowers’ business;

     

    (n)           Accounts
with respect to which the Account Debtor is located in a state which requires a
Borrower, as a precondition to commencing or maintaining an action in the courts
of that state, either to (i) receive a certificate of authority to do business
and be in good standing in such state, or (ii) file a notice of business
activities report or similar report with such state’ s taxing authority, unless
(A) such Borrower has taken one of the actions described in clauses (i) or (ii),
(B) the failure to take one of the actions described in either clause (i) or
(ii) may be cured retroactively by Borrower at its election, or (C) such
Borrower has proven, to Lender’s satisfaction, that it is exempt from any such
requirements under any such state’s laws;

     

    (o)           All
or any portion of an Account to the extent there exists or the Account Debtor
has asserted a counterclaim or dispute or is otherwise subject to a contra
claim; provided, however, if the amount of such counterclaim, dispute or such
contra claim is equal to or greater than ten percent (10%) of the total Account
owing from such Account Debtor to Borrowers, then the full amount of such
Account shall be deemed an ineligible Account;

     

    (p)           Accounts
for any Account Debtor which exceed a credit limit established by Lender for
such Account Debtor, but only to the extent of such excess;

    
      
         

      

      
        5

        
          

        

      

      
         

      

    

    (q)           Accounts
as to which any covenant, representation or warranty with respect to such
Account has been breached;

     

    (r)           
Accounts which are not subject to a first priority lien in favor of
Lender;

     

    (s)           Accounts  for
which the Account Debtor has paid a deposit to Lender, but only to the extent of
such deposit;

     

    (t)           
Accounts for which Borrowers have failed to deliver to Lender such documents as
Lender may have requested pursuant to Section 7.01 hereof;

     

    (u)           Accounts
which, when added to a particular Account Debtor’s other indebtedness to
Borrowers, exceeds twenty percent (20%), or the applicable limit set forth on
Schedule
1.01-B, of all Accounts of Borrowers (except that Accounts excluded from
Eligible Accounts solely by reason of this clause (u) shall be Eligible Accounts
to the extent of such credit limit); and

     

    (v)           Accounts
as to which Lender, at any time or times hereafter, determines in good faith
that the prospect of payment or performance by the Account Debtor is or will be
impaired.

     

    “Eligible Unbilled Account”
means on any date of determination, each Account that is unbilled and (a) has
been unbilled for a period not greater that ten (10) days from the date the
services giving rise to such Account were performed; and (b) otherwise
constitutes an “Eligible Account” hereunder except for the fact that such
Account is unbilled.

     

    “Enforcement Costs” means all
expenses, charges, costs and fees whatsoever (including, without limitation,
reasonable outside and allocated in-house counsel attorney’s fees and expenses
and the fees, costs and expenses described in Section 4.05(d) (Costs and
Expenses)) of any nature whatsoever paid or incurred by or on behalf of Lender
in connection with (a) any or all of the Obligations, this Agreement and/or any
of the other Loan Documents, (b) the creation, perfection, collection,
maintenance, preservation, defense, protection, realization upon, disposition,
sale or enforcement of all or any part of the Collateral, this Agreement or any
of the other Loan Documents, including, without limitation, those costs and
expenses more specifically enumerated in this Agreement and the other Loan
Documents, and further including, without limitation, amounts paid to lessors,
processors, bailees, warehousemen, sureties, judgment creditors and others in
possession of or with a Lien against or claimed against the Collateral, and (c)
the monitoring, administration, processing and/or servicing of any or all of the
Obligations, the Loan Documents, and/or the Collateral.

     

    “Environmental Laws” means all
federal, state, district, local and foreign laws, rules, regulations,
ordinances, and consent decrees relating to health, safety, hazardous
substances, pollution and environmental matters, as now or at any time hereafter
in effect, applicable to Borrowers’ business or facilities owned or operated by
Borrowers, including laws relating to emissions, discharges, releases or
threatened releases of pollutants, contamination, chemicals, or hazardous, toxic
or dangerous substances, materials or wastes into the environment (including,
without limitation, ambient air, surface water, ground water, land surface or
subsurface strata) or otherwise relating to the generation, manufacture,
processing, distribution, use, treatment, storage, disposal, transport or
handling of Hazardous Materials.

    
      
         

      

      
        6

        
          

        

      

      
         

      

    

    “Equity Interests” means, with
respect to any Person, all of the shares of capital stock of (or other ownership
or profit interests in) such Person, all of the warrants, options or other
rights for the purchase or acquisition from such Person of shares of capital
stock of (or other ownership or profit interests in) such Person, all of the
securities convertible into or exchangeable for shares of capital stock of (or
other ownership or profit interests in) such Person or warrants, rights or
options for the purchase or acquisition from such Person of such shares (or such
other interests), and all of the other ownership or profit interests in such
Person (including partnership, member or trust interests therein), whether
voting or nonvoting, and whether or not such shares, warrants, options, rights
or other interests are outstanding on any date of determination.

     

    “ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, modified or restated from
time to time.

     

    “ERISA Affiliate” means any
Person who for purposes of Title IV of ERISA is a member of the Borrowers’
Controlled Group, or under common control with the Borrowers, within the meaning
of Section 414 of the Code.

     

    “Event of Default” shall have
the meaning specified in Section 13.01
hereof.

     

    “Excess Availability” means, as
of any date of determination by Lender, the sum of (a) the Borrowing Base, less (b) the
outstanding Revolving Loans as of the close of business on such
date.  For purposes of calculating Excess Availability for Section 14.01(d) only, all
accounts payable which remain unpaid more than thirty (30) days after the due
dates thereof as the date of this Agreement will be treated as additional
Revolving Loans outstanding on such date.

     

    “Excluded Taxes” means, with
respect to Lender or any other recipient of any payment to be made by or on
account of any obligation of Borrowers hereunder or under any other Loan
Document, any taxes on or measured by overall net income (however denominated),
franchise taxes (in lieu of net income taxes) and branch profits taxes, in each
case imposed on it by the jurisdiction (or any political subdivision thereof)
under the laws of which such recipient is organized or in which its principal
office is located or, in the case of Lender, in which its applicable Lending
Office is located.

     

    “Facility Amount” means, at any
time, the Maximum Revolving Loan Limit.

     

    “Fiscal Year” means each twelve
(12) month accounting period of Borrowers, which ends on the Saturday closest to
December 31st of each year.

     

    “Fixed Charge Coverage” means,
as of any date of determination, the ratio of: (a) the sum for such period of
(without duplication): (i) EBITDA; minus (ii) Capital
Expenditures not financed made by Borrowers and their Subsidiaries; minus (iii) all
payments in cash for taxes made by Borrowers and their Subsidiaries; minus (iv) cash
dividends paid or accrued and cash withdrawals paid or accrued to Owners or
other Affiliates by Borrowers and their Subsidiaries; minus (v) cash
payments paid by Borrowers and their Subsidiaries for any non-competition
agreements or severance agreements to (b) Fixed Charges for such
period.

    
      
         

      

      
        7

        
          

        

      

      
         

      

    

    “Fixed Charges” means, for any
period, current principal maturities of long term debt and capitalized leases
paid or scheduled to be paid during such period, plus any prepayments on
indebtedness owed to any Person (except trade payables and Revolving Loans) and
paid during such period, plus interest expense paid or scheduled to be paid
during such period, all on a consolidated basis as to Borrowers and their
Subsidiaries.  The one-time payment of the obligation to Bank of
America, N.A., as administrative agent, and lender utilizing Loan proceeds for
such payment shall not be included.

     

    “GAAP” means generally accepted
accounting principles in the United States set forth in the opinions and
pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial
Accounting Standards Board or such other principles as may be approved by a
significant segment of the accounting profession in the United States, that are
applicable to the circumstances as of the date of determination, consistently
applied.

     

    “Governmental Authority” means
the government of the United States or any other nation, or of any political
subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to government (including any supra-national bodies
such as the European Union or the European Central Bank).

     

    “Hazardous Materials” means any
hazardous, toxic or dangerous substance, materials and wastes, including,
without limitation, hydrocarbons (including naturally occurring or man-made
petroleum and hydrocarbons), flammable explosives, asbestos, urea formaldehyde
insulation, radioactive materials, biological substances, polychlorinated
biphenyls, pesticides, herbicides and any other kind and/or type of pollutants
or contaminants (including, without limitation, materials which include
hazardous constituents), sewage, sludge, industrial slag, solvents and/or any
other similar substances, materials, or wastes and including any other
substances, materials or wastes that are or become regulated under any
Environmental Law (including, without limitation any that are or become
classified as hazardous or toxic under any Environmental Law).

     

    “Hedging Agreement” means any
interest rate, currency or commodity swap agreement, cap agreement or collar
agreement, and any other agreement or arrangement designed to protect a Person
against fluctuations in interest rate, currency exchange rates or commodity
prices.

     

    “Hedging Obligation” means,
with respect to any Person, any liability of such Person under any Hedging
Agreement.  The amount of any Person’s obligations in respect of any
Hedging Obligation shall be deemed to be the incremental obligations that would
be reflected in the financial statements of such Person in accordance with
GAAP.

     

    “Hedging Obligation Reserve”
means, as of any date of determination, such amounts as the Lender may from time
to time establish and adjust to reduce availability under the Borrowing Base to
reflect Borrowers’ Hedging Obligations.

    
      
         

      

      
        8

        
          

        

      

      
         

      

    

    “Indebtedness” of a Person
means at any time the sum at such time of (a) indebtedness of such Person for
borrowed money or for the deferred purchase price of property or services, (b)
any obligations of such Person in respect of letters of credit, banker’s or
other acceptances or similar obligations issued or created for the account of
such Person, (c) lease indebtedness, liabilities and other obligations of such
Person with respect to capital leases, (d) all liabilities secured by any Lien
on any property owned by such Person, to the extent attached to such Person’s
interest in such property, even though such Person has not assumed or become
personally liable for the payment thereof, (e) obligations of third parties
which are being guarantied or indemnified against by such Person or which are
secured by the property of such Person; (f) any obligation of such Person under
an employee stock ownership plan or other similar employee benefit plan; (g) any
obligation of such Person or a commonly controlled entity to a multi-employer
plan; and (h) any obligations, liabilities or indebtedness, contingent or
otherwise, under or in connection with, transactions, agreements or documents
now existing or hereafter entered into, which provides for an interest rate,
credit, commodity or equity swap, cap, floor, collar, forward foreign exchange
transaction, currency swap, cross currency rate swap, currency option, or any
combination of, or option with respect to, these or similar transactions, for
the purpose of hedging fluctuations in interest or exchange rates, loan, credit
exchange, security or currency valuations or commodity prices; but excluding
trade and other accounts payable in the ordinary course of business in
accordance with customary trade terms and which are not overdue (as determined
in accordance with customary trade practices) or which are being disputed in
good faith by such Person and for which adequate reserves are being provided on
the books of such Person in accordance with GAAP consistently
applied.

     

    “Indemnified Party” shall have
the meaning specified in Section 15.01
hereof.

     

    “Indemnified Taxes” means Taxes
other than Excluded Taxes.

     

    “Interest Expense” means, for
any period, for Borrowers and their Subsidiaries, the sum of (a) all interest,
premium payments, debt discount, fees, charges and related expenses in
connection with borrowed money (including capitalized interest) or in connection
with the deferred purchase price of assets during such period, plus (b) all payments
made under interest rate Hedging Agreements during such period to the extent not
included in clause (a) of this definition, minus (c) all
payments received under interest rate Hedging Agreements during such period,
plus (d) the portion of rent
expense with respect to such period under capital leases that is treated as
interest in accordance with GAAP.

     

    “Interest Period” means any
continuous period of one (1), two (2) or three (3) months, as selected from time
to time by Borrowers by irrevocable notice (in writing, by telecopy, telex,
electronic mail or cable) given to Lender not less than three (3) Business Days
prior to the first day of each respective Interest Period; provided
that:  (A) each such period occurring after such initial period shall
commence on the day on which the immediately preceding period expires; (B) the
final Interest Period shall be such that its expiration occurs on or before the
Maturity Date; and (C) if for any reason Borrowers shall fail to timely select a
period, then such Loans shall continue as, or revert to, Prime Rate
Loans.

     

    “Laws” means all ordinances,
statutes, rules, regulations, orders, injunctions, writs, or decrees of any
Governmental Authority.

    
      
         

      

      
        9

        
          

        

      

      
         

      

    

    “Lending Office” means the
office or offices of Lender described on Schedule 15.02, or
such other office or offices as Lender may from time to time notify
Borrowers.

     

    “Letter of Credit” means any
Letter of Credit issued on behalf of a Borrower in accordance with this
Agreement.

     

    “Letter of Credit Fee Amount” means four and
one-half percent (4.5%) per annum on the aggregate undrawn face amount of all
Letters of Credit outstanding.

     

    “Letter of Credit Obligations”
means, as of any date of determination, the sum of (a) the aggregate undrawn
face amount of all Letters of Credit, plus (b) the
aggregate unreimbursed amount of all drawn Letters of Credit not already
converted to Loans hereunder.

     

    “Letter of Credit Sublimit”
means One Million and No/100 Dollars ($1,000,000.00).

     

    “LIBOR Rate” means, with
respect to any LIBOR Rate Loan for any Interest Period, a rate per annum equal
to (a) the offered rate for deposits in United States dollars for a period equal
to such Interest Period as displayed in the Bloomberg Financial Markets system
(or such other authoritative source as selected by Lender in its sole
discretion) as of 11:00 a.m. (London time) two Business Days prior to the first
day of such Interest Period divided by (b) a number equal to 1.0 minus the
maximum reserve percentages (expressed as a decimal fraction) including, without
limitation, basic supplemental, marginal and emergency reserves under any
regulations of the Board of Governors of the Federal Reserve System or other
governmental authority having jurisdiction with respect thereto, as now and from
time to time in effect, for Eurocurrency funding (currently referred to as
“Eurocurrency Liabilities” in Regulation D of such Board) which are required to
be maintained by Lender by the Board of Governors of the Federal Reserve
System.  The LIBOR Rate shall be adjusted automatically on and as of
the effective date of any change in such reserve percentage.

     

    “LIBOR Rate Loans” means the
Loans bearing interest with reference to the LIBOR Rate.

     

    “Lien” means any security
interest, mortgage, deed of trust, pledge, lien, charge, judgment lien,
assignment, financing statement, encumbrance, title retention agreement or
analogous instrument or device, including the interest of each lessor under any
capitalized lease and the interest of any bondsman under any payment or
performance bond, in, of or on any assets or properties of a Person, whether now
owned or subsequently acquired and whether arising by agreement or operation of
law, all whether perfected or unperfected.

     

    “Loan Documents” means this
Agreement and all other agreements, instruments and documents including, without
limitation, guaranties, mortgages, trust deeds, pledges, powers of attorney,
consents, assignments, contracts, notices, security agreements, leases,
financing statements, Hedging Agreements, and all other writings heretofore, now
or from time to time hereafter executed by or on behalf of a Borrower or any
other Person and delivered to Lender or to any parent, affiliate or subsidiary
of Lender in connection with the Obligations or the transactions contemplated
hereby, as each of the same may be amended, modified or supplemented from time
to time.

    
      
         

      

      
        10

        
          

        

      

      
         

      

    

    “Loans” means all loans and
advances made by Lender to or on behalf of a Borrower hereunder.

     

    “Lock Box” means a post office
box maintained with Lender.

     

    “Material Adverse Effect” means
any of the following:  (a) a material adverse change in, or material
adverse effect upon, the business, condition (financial or otherwise),
operations, performance, or properties of Borrowers, considered as a whole; (b)
a material impairment of the ability of Borrowers to perform their obligations
under the Loan Documents; or (c) a material adverse effect upon:  (i)
the legality, validity, binding effect or enforceability of any Loan Document to
which any Borrower is a party; or (ii) the rights and remedies of Lender under
or in respect of any Loan Document.

     

    “Maturity Date” means March 5,
2013.

     

    “Maximum Revolving Loan Limit”
means Six Million and No/100 Dollars ($6,000,000.00).

     

    “Multiemployer Plan” means a
multiemployer plan (as defined in Section 4001(a)(3) of ERISA) to which the a
Borrower or any ERISA Affiliate contributes or is obligated to
contribute.

     

    “Obligations” means any and all
obligations, liabilities and indebtedness of any of the Borrowers to Lender or
to any parent, affiliate or subsidiary of Lender of any and every kind and
nature, howsoever created, arising or evidenced and howsoever owned, held or
acquired, whether now or hereafter existing or contemplated, whether now due or
to become due, whether primary, secondary, direct, indirect, absolute,
contingent or otherwise (including, without limitation, obligations of
performance and obligations, liabilities and indebtedness with respect to
Hedging Obligations), whether several, joint or joint and several, and whether
arising or existing under written or oral agreement or by operation of law and,
without implying any limitation on the foregoing,  including, without
limitation, all Loans, Bank Products, and Enforcement Costs.

     

    “OFAC” means the Office of
Foreign Assets Control.

     

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

     

    “Owner” means with respect to a
Borrower, each Person having legal or beneficial title to an ownership interest
in a Borrower or a right to acquire such an interest.

     

    “Parent” means any Person now
or at any time or times hereafter owning or controlling (alone or with any other
Person) at least a majority of the issued and outstanding equity of a Borrower
and, if Borrower is a partnership, the general partner of a
Borrower.

     

    “PBGC” means the Pension
Benefit Guaranty Corporation.

    
      
         

      

      
        11

        
          

        

      

      
         

      

    

    “Pension Plan” means a pension
plan (as defined in Section 3(2) of ERISA) maintained for employees of a
Borrower or any ERISA Affiliate and covered by Title IV of ERISA.

     

    “Permitted Liens” means: (a)
statutory liens of landlords, carriers, warehousemen, processors, mechanics,
materialmen or suppliers incurred in the ordinary course of business and
securing amounts not yet due or declared to be due by the claimant thereunder or
amounts which are being contested in good faith and by appropriate proceedings
and for which the Borrowers have maintained adequate reserves; (b) liens or
security interests in favor of Lender; (c) zoning restrictions and easements,
licenses, covenants and other restrictions affecting the use of real property
that do not individually or in the aggregate have a Material Adverse Effect; (d)
liens in connection with purchase money indebtedness with respect to Equipment
and capitalized leases otherwise permitted pursuant to this Agreement, provided,
that such liens attach only to the assets the purchase of which was financed by
such purchase money indebtedness or which is the subject of such capitalized
leases; (e) liens set forth on Schedule 1.01-C; (f)
liens specifically permitted by Lender in writing; and (g) involuntary liens
securing amounts less than One Hundred Thousand and No/100 Dollars ($100,000.00)
and which are released or for which a bond acceptable to Lender, in its
reasonable discretion, has been posted within ten (10) days of its
creation.

     

    “Person” means any individual,
sole proprietorship, partnership, joint venture, trust, unincorporated
organization, association, corporation, limited liability company, institution,
entity, party or foreign or United States government (whether federal, state,
county, city, municipal or otherwise), including, without limitation, any
instrumentality, division, agency, body or department thereof.

     

    “Plan” means an employee
benefit plan (as defined in Section 3(3) of ERISA) maintained for employees of a
Borrower or any ERISA Affiliate.

     

    “Pledged Collateral” means,
collectively, Pledged Debt and Pledged Equity Interests.

     

    “Pledged Debt” means all debt
owed or owing to a Borrower or any Subsidiary by a Borrower or any of a
Borrower’s subsidiaries, all Instruments, Chattel Paper or other documents, if
any, representing or evidencing such debt.

     

    “Pledged Equity Interests”
means all Equity Interests owned or held by or on behalf of  a
Borrower in any Subsidiary, and all Security Certificates, Instruments and other
documents, if any, representing or evidencing such Equity
Interests.

     

    “Prime Rate” means the prime
rate as published in the “Money Rates” Section of the Wall Street Journal as of
the applicable determination date.

     

    “Prime Rate Loans” means the
Loans bearing interest with reference to the Prime Rate.

     

    “Regulatory Change” shall have
the meaning specified in Section 4.04(c)
hereof.

     

    “Reportable Event” means a
reportable event (as defined in Section 4043 of ERISA), other than an event for
which the 30-day notice requirement under ERISA has been waived in regulations
issued by the PBGC.

    
      
         

      

      
        12

        
          

        

      

      
         

      

    

    “Revolving Loans” shall have
the meaning specified in Section 2.01
hereof.

     

    “Subsidiary” means any
corporation of which more than fifty percent (50%) of the 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 stock of any other
class of such corporation shall have or might have voting power by reason of the
happening of any contingency) is at the time, directly or indirectly, owned by a
Borrower, or any partnership, joint venture or limited liability company of
which more than fifty percent (50%) of the outstanding equity interests are at
the time, directly or indirectly, owned by a Borrower or any partnership of
which a Borrower is a general partner.

     

    “Taxes” means all present or
future taxes, levies, imposts, duties, deductions, withholdings, assessments,
fees or other charges imposed by any Governmental Authority, including any
interest, additions to tax or penalties applicable thereto.

     

    “Termination Date” means the
earliest of (a) the Maturity Date, (b) the date the Borrowers terminate this
Agreement, or (c) the date the Lender accelerates payment of the Obligations
pursuant to Section
13.02 hereof.

     

    “Uniform Commercial Code” means
the Uniform Commercial Code as in effect in the State of Illinois.

     

    
      	
               
      

            	
              1.02

            	
              Other
      Definitional Terms; Rules of
  Interpretation.

            

    

     

    The words
“hereof”, “herein” and “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular
provision of this Agreement.  All accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with
GAAP.  All terms defined in the UCC and not otherwise defined herein
have the meanings assigned to them in the UCC.  References to
Articles, Sections, subsections, Exhibits, Schedules and the like, are to
Articles, Sections and subsections of, or Exhibits or Schedules attached to,
this Agreement unless otherwise expressly provided.  The words
“include”, “includes” and “including” shall be deemed to be followed by the
phrase “without limitation”.  Unless the context in which used herein
otherwise clearly requires, “or” has the inclusive meaning represented by the
phrase “and/or”.  Defined terms include in the singular number the
plural and in the plural number the singular.  Reference to any
agreement (including the Loan Documents), document or instrument means such
agreement, document or instrument as amended or modified and in effect from time
to time in accordance with the terms thereof (and, if applicable, in accordance
with the terms hereof and the other Loan Documents), except where otherwise
explicitly provided, and reference to any promissory note includes any
promissory note which is an extension or renewal thereof or a substitute or
replacement therefor.  Reference to any law, rule, regulation, order,
decree, requirement, policy, guideline, directive or interpretation means as
amended, modified, codified, replaced or reenacted, in whole or in part, and in
effect on the determination date, including rules and regulations promulgated
thereunder.

    
      
         

      

      
        13

        
          

        

      

      
         

      

    

    

    
      	
              2.

            	
              LOANS.

            

    

     

    
      	
               
      

            	
              2.01

            	
              Revolving
      Loans.

            

    

     

    (a)           Subject
to the terms and conditions of the Loan Documents, from time to time prior to
the Termination Date, Lender shall make revolving loans and advances (the “Revolving Loans”) in an amount
not in excess of Availability.

     

    
      	
               
      

            	
              2.02

            	
              Requests
      for Revolving Loans.

            

    

     

    (a)           A
request for a Revolving Loan shall be made or shall be deemed to be made, each
in the following manner:  Borrowers shall give Lender same day notice,
no later than 12:00 P.M. (Chicago, Illinois local time) for such day, of its
request for a Revolving Loan as a Prime Rate Loan, and at least three (3)
Business Days prior notice of its request for a Revolving Loan as a LIBOR Rate
Loan, in which notice Borrowers shall specify the amount of the proposed
borrowing and the proposed borrowing date; provided, however, that no such
request may be made at a time when there exists an Event of Default or an event
which, with the passage of time or giving of notice, will become an Event of
Default.  In the event that Borrowers maintain a controlled
disbursement account at Lender, each check presented for payment against such
controlled disbursement account and any other charge or request for payment
against such controlled disbursement account shall constitute a request for a
Revolving Loan as a Prime Rate Loan.  As an accommodation to
Borrowers, Lender may permit telephone requests for Revolving Loans and
electronic transmittal of instructions, authorizations, agreements or reports to
Lender by Borrowers.  Unless Borrowers specifically direct Lender in
writing not to accept or act upon telephonic or electronic communications from
Borrowers, Lender shall have no liability to Borrowers for any loss or damage
suffered by Borrowers as a result of Lender’s honoring of any requests,
execution of any instructions, authorizations or agreements or reliance on any
reports communicated to it telephonically or electronically and purporting to
have been sent to Lender by Borrowers and Lender shall have no duty to verify
the origin of any such communication or the authority of the Person sending
it.

     

    (b)           Each
Borrower hereby irrevocably authorizes Lender to disburse the proceeds of each
Revolving Loan requested by such Borrower, or deemed to be requested by such
Borrower, as follows: (i) the proceeds of each Revolving Loan requested under
Section 2.02(a) shall be disbursed by Lender in lawful money of the United
States of America in immediately available funds, (ii) in the case of the
initial borrowing, in accordance with the terms of the written disbursement
letter from a Borrower, and (iii) in the case of each subsequent borrowing, by
wire transfer or Automated Clearing House (ACH) transfer to such bank account as
may be agreed upon by a Borrower and Lender from time to time, or elsewhere if
pursuant to a written direction from a Borrower.

     

    
      	
               
      

            	
              2.03

            	
              Intentionally
      Omitted.

            

    

     

    
      	
               
      

            	
              2.04

            	
              Intentionally
      Omitted.

            

    

    
      
         

      

      
        14

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              2.05

            	
              Intentionally
      Omitted.

            

    

     

    
      	
               
      

            	
              2.06

            	
              Intentionally
      Omitted.

            

    

     

    
      	
               
      

            	
              2.07

            	
              Repayments.

            

    

     

    The
Obligations shall be repaid as follows:

     

    (a)           Repayment of Revolving
Loans.  The Revolving Loans and all other Obligations shall be
repaid on the Termination Date.  Borrowers may from time to time
voluntarily prepay the Revolving Loans in whole or in part subject to the terms
and conditions of this Agreement.  If any such payment due date is not
a Business Day, then such payment may be made on the next succeeding Business
Day and such extension of time shall be included in the computation of the
amount of interest and fees due hereunder.

     

    (b)           Mandatory
Prepayments.

     

    (i)           Overadvances.  If
at any time Availability is less than $0.00, or any portion of the Revolving
Loans exceeds any applicable sublimit within the Borrowing Base shall
immediately, and without the necessity of demand by Lender, pay to Lender such
amount as may be necessary to eliminate such excess and Lender shall apply such
payment to the Revolving Loans to eliminate such excess.

     

    (ii)          Sales of
Assets.  Upon receipt of the proceeds of the sale or other
disposition of any Equipment or real property of a Borrower which is subject to
a mortgage in favor of Lender, or if any of the Equipment or real property
subject to such mortgage is damaged, destroyed or taken by condemnation in whole
or in part, the proceeds thereof shall be paid by such Borrower to Lender as a
mandatory prepayment of the Obligations, as determined by Lender, in its sole
discretion.

     

    
      	
               
      

            	
              2.08

            	
              Notes.

            

    

     

    The Loans
shall, in Lender’s sole discretion, be evidenced by one or more promissory notes
in form and substance satisfactory to Lender.  However, if such Loans
are not so evidenced, such Loans may be evidenced solely by entries upon the
books and records maintained by Lender.

     

    
      	
               
      

            	
              2.09

            	
              Bank
      Products.

            

    

     

    Borrowers
may request, and Lender or its affiliates may, in their sole and absolute
discretion, provide, Bank Products although Borrowers are not required to do
so.  In the event Borrowers request Lender and/or its affiliates to
procure or provide Bank Products, then Borrowers agree with Lender and/or such
affiliates, as applicable, to pay when due all indebtedness, liabilities and
obligations with respect to Bank Products and further agree to indemnify and
hold Lender and/or such affiliates harmless from any and all indebtedness,
liabilities, obligations, losses, costs and expenses (including, without
limitation,  reasonable attorneys fees) now or hereafter owing to or
incurred by Lender (including, without limitation, those under agreements of
indemnifications or assurances provided by Lender to its affiliates) and/or its
affiliates with respect to Bank Products, all as the same may
arise.  In the event Borrowers shall not have paid to Lender and/or
its affiliates such amounts, Lender may cover such amounts by an advance under
the Revolving Loan, which advance shall be deemed to have been requested by
Borrowers.  Borrowers acknowledge and agree that (a) all indebtedness,
liabilities and obligations with respect to Bank Products provided by Lender or
its affiliates, and all of its agreements under this Section, are part of the
Obligations secured by the Collateral, and (b) the obtaining of Bank Products
from Lender or its affiliates (i) is in the sole and absolute discretion of
Lender or its affiliates and (ii) is subject to all rules and regulations of
Lender or its affiliates.

    
      
         

      

      
        15

        
          

        

      

      
         

      

    

    
      	
              3.

            	
              LETTERS OF
      CREDIT.

            

    

     

    
      	
               
      

            	
              3.01

            	
              General
      Terms.

            

    

     

    Subject
to the terms and conditions of the Loan Documents, prior to the Termination
Date, Lender shall, from time to time cause to be issued and co-sign for or
otherwise guarantee, upon Borrowers’ request, commercial and/or standby Letters
of Credit; provided, that the aggregate undrawn face amount of all such Letters
of Credit shall at no time exceed the Letter of Credit
Sublimit.  Payments made by the issuer of a Letter of Credit to any
Person on account of any Letter of Credit shall be immediately payable by
Borrowers without notice, presentment or demand and Borrowers agree that each
payment made by the issuer of a Letter of Credit in respect of a Letter of
Credit shall constitute a request by Borrowers for a Loan to reimburse such
issuer.  In the event such Loan is not advanced by Lender for any
reason, such reimbursement obligations (whether owing to the issuer of the
Letter of Credit or Lender if Lender is not the issuer) shall become part of the
Obligations hereunder and shall bear interest at the rate then applicable to
Revolving Loans constituting Prime Rate Loans until repaid.  Borrowers
shall remit to Lender a Letter of Credit fee equal to the Letter of Credit Fee
Amount, which fee shall be payable monthly in arrears on the last Business Day
of each month for commercial Letters of Credit and payable at the beginning of
each year in advance for standby Letters of Credit.  Said fee shall be
calculated on the basis of a three hundred sixty (360) day
year.  Borrowers shall also pay on demand the normal and customary
administrative charges of the issuer of the Letter of Credit for issuance,
amendment, negotiation, renewal or extension of any Letter of
Credit.

     

    
      	
               
      

            	
              3.02

            	
              Requests
      for Letters of Credit.

            

    

     

    Borrowers
shall make requests for Letters of Credit in writing at least two (2) Business
Days prior to the date such Letter of Credit is to be issued.  Each
such request shall specify the date such Letter of Credit is to be issued, the
amount thereof, the name and address of the beneficiary thereof and a
description of the transaction to be supported thereby.  Any such
notice shall be accompanied by the form of Letter of Credit requested and any
application or reimbursement agreement required by the issuer of such Letter of
Credit.  If any term of such application or reimbursement agreement is
inconsistent with this Agreement, then the provisions of this Agreement shall
control to the extent of such inconsistency.

    
      
         

      

      
        16

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              3.03

            	
              Obligations
      Absolute.

            

    

     

    Borrowers
shall be obligated to reimburse the issuer of any Letter of Credit, or Lender if
Lender has reimbursed such issuer on Borrowers’ behalf, for any payments made in
respect of any Letter of Credit, which obligation shall be unconditional and
irrevocable and shall be paid regardless of:  (a) any lack of validity
or enforceability of any Letter of Credit, (b) any amendment or waiver of or
consent or departure from all or any provisions of any Letter of Credit, this
Agreement or any other Loan Document, (c) the existence of any claim, set off,
defense or other right which Borrowers or any other Person may have against any
beneficiary of any Letter of Credit, Lender or the issuer of the Letter of
Credit, (d) any draft or other document presented under any Letter of Credit
proving to be forged, fraudulent, invalid, or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect, (e) any payment
under any Letter of Credit against presentation of a draft or other document
that does not comply with the terms of such Letter of Credit, and (f) any other
act or omission to act or delay of any kind of the issuer of such Letter of
Credit, the Lender or any other Person or any other event or circumstance that
might otherwise constitute a legal or equitable discharge of Borrowers’
obligations hereunder.  It is understood and agreed by Borrowers that
the issuer of any Letter of Credit may accept documents that appear on their
face to be in order without further investigation or inquiry, regardless of any
notice or information to the contrary.

     

    
      	
               
      

            	
              3.04

            	
              Expiration
      Dates of Letters of Credit.

            

    

     

    The
expiration date of each Letter of Credit shall be no later than the earlier of
(a) one (1) year from the date of issuance and (b) the thirtieth (30th) day
prior to the Maturity Date.  Notwithstanding the foregoing, a Letter
of Credit may provide for automatic extensions of its expiration date for one or
more one (1) year periods, so long as the issuer thereof has the right to
terminate the Letter of Credit at the end of each one (1) year period and no
extension period extends past the thirtieth (30th) day prior to the Maturity
Date.

     

    
      	
              4.

            	
              INTEREST, FEES AND
      CHARGES.

            

    

     

    
      	
               
      

            	
              4.01

            	
              Interest
      Rate.

            

    

     

    Each
Prime Rate Loan shall bear interest on the outstanding principal amount thereof
from the applicable borrowing date at a rate per annum equal to the Prime Rate
plus the Applicable
Margin.  Each LIBOR Rate Loan shall bear interest on the outstanding
principal amount thereof for each Interest Period at a rate per annum equal to
the LIBOR Rate for such Interest Period plus the Applicable
Margin.  Notwithstanding the foregoing, in no event shall the interest
rate applicable to any Loan be less than six percent (6.0%) per
annum.

     

    
      	
               
      

            	
              4.02

            	
              Default
      Interest Rate.

            

    

     

    Upon the
occurrence of an Event of Default and during the continuance thereof, at
Lender’s option, each Loan shall bear interest at the Default Rate, effective as
of the first day of the month in which the Event of Default occurs, which
interest shall be payable on demand.  The decision of Lender to not
impose the Default Rate shall be made by the Lender, in its sole discretion, and
shall not be a waiver of any of its other rights and remedies.

    
      
         

      

      
        17

        
          

        

      

      
         

      

    

    
      	
               
      

            	
              4.03

            	
              Interest
      Payments.

            

    

     

    Interest
on Prime Rate Loans shall be due and payable on the first day of each month in
arrears and on the Termination Date, or if any such day is not a Business Day,
on the next succeeding Business Day.  Whenever any payment to be made
hereunder shall be stated to be due on a day which is not a Business Day, such
payment may be made on the next succeeding Business Day, and such extension of
time shall in such case be included in the computation of interest on the Loans
or the fees hereunder, as the case may be.  Interest accruing on each
LIBOR Rate Loan shall be due and payable on the last day of the applicable
Interest Period; provided, however, for Interest Periods longer than one month,
interest shall be due and payable monthly in arrears on the first day of each
month and on the last day of the applicable Interest Period.

     

    
      	
               
      

            	
              4.04

            	
              Other
      LIBOR Provisions.

            

    

     

    (a)           Subject
to the provisions of this Agreement, Borrowers shall have the option (i) as of
any date, to convert all or any part of the Prime Rate Loans to, or request that
new Loans be made as, LIBOR Rate Loans of various Interest Periods, (ii) as of
the last day of any Interest Period, to continue all or any portion of the
relevant LIBOR Rate Loans as LIBOR Rate Loans; (iii) as of the last day of any
Interest Period, to convert all or any portion of the LIBOR Rate Loans to Prime
Rate Loans; and (iv) at any time, to request new Loans as Prime Rate Loans;
provided, that Loans may not be continued as or converted to LIBOR Rate Loans,
if the continuation or conversion thereof would violate the provisions of
Sections 4.04(b) or 4.04(c) of this Agreement or if an Event of Default has
occurred and is continuing.

     

    (b)           Lender’s
determination of the LIBOR Rate as provided above shall be conclusive, absent
manifest error.  Furthermore, if Lender determines, in good faith
(which determination shall be conclusive, absent manifest error), prior to the
commencement of any Interest Period that (i) U.S. Dollar deposits of sufficient
amount and maturity for funding the Loans are not available to Lender in the
London Interbank Eurodollar market in the ordinary course of business, or (ii)
by reason of circumstances affecting the London Interbank Eurodollar market,
adequate and fair means do not exist for ascertaining the rate of interest to be
applicable to the Loans requested by Borrowers to be LIBOR Rate Loans shall not
represent the effective pricing to Lender for U.S. Dollar deposits of a
comparable amount for the relevant period (such as for example, but not limited
to, official reserve requirements required by Regulation D to the extent not
given effect in determining the rate), Lender shall promptly notify Borrowers
and (A) all existing LIBOR Rate Loans shall convert to Prime Rate Loans upon the
end of the applicable Interest Period, and (B) no additional LIBOR Rate Loans
shall be made until such circumstances cease to exist.

     

    (c)           If,
after the date hereof, the introduction of, or any change in any applicable law,
treaty, rule, regulation or guideline or in the interpretation or administration
thereof by any governmental authority or any central bank or other fiscal,
monetary or other authority having jurisdiction over Lender or its lending
offices (a “Regulatory
Change”), shall, in the opinion of counsel to Lender, make it unlawful
for Lender to make or maintain LIBOR Rate Loans, then Lender shall promptly
notify Borrowers and (i) the LIBOR Rate Loans shall immediately convert to Prime
Rate Loans on the last Business Day of the then existing Interest Period or on
such earlier date as required by law and (ii) no additional LIBOR Rate Loans
shall be made until such circumstance ceases to exist.

    
      
         

      

      
        18

        
          

        

      

      
         

      

    

     

    (d)           If,
for any reason, a LIBOR Rate Loan is paid prior to the last Business Day of any
Interest Period or if a LIBOR Rate Loan does not occur on a date specified by
Borrowers in their request (other than as a result of a default by Lender),
Borrowers agree to indemnify Lender against any loss (including any loss on
redeployment of the deposits or other funds acquired by Lender to fund or
maintain such LIBOR Rate Loan) cost or expense incurred by Lender as a result of
such prepayment or failure to occur.

     

    (e)           If
any Regulatory Change (whether or not having the force of law) shall (i) impose,
modify or deem applicable any assessment, reserve, special deposit or similar
requirement against assets held by, or deposits in or for the account of or
loans by, or any other acquisition of funds or disbursements by, Lender; (ii)
subject Lender or the LIBOR Rate Loans to any Tax or change the basis of
taxation of payments to Lender of principal or interest due from Borrowers to
Lender hereunder (other than a change in the taxation of the overall net income
of Lender); or (iii) impose on Lender any other condition regarding the LIBOR
Rate Loans or Lender’s funding thereof, and Lender shall determine (which
determination shall be conclusive, absent any manifest error) that the result of
the foregoing is to increase the cost to Lender of making or maintaining the
LIBOR Rate Loans or to reduce the amount of principal or interest received by
Lender hereunder, then Borrowers shall pay to Lender, on demand, such additional
amounts as Lender shall, from time to time, determine are sufficient to
compensate and indemnify Lender from such increased cost or reduced
amount.

     

    (f)           Each
request for LIBOR Rate Loans shall be in an amount not less than Three Hundred
Thousand and No/100 Dollars ($300,000.00), and in integral multiples of,
$100,000.00.

     

    (g)           Unless
otherwise specified by Borrowers, all Loans shall be Prime Rate
Loans.

     

    (h)           No
more than three (3) Interest Periods may be in effect with respect to
outstanding LIBOR Rate Loans at any one time.

     

    
      	
               
      

            	
              4.05

            	
              Fees
      And Charges.

            

    

     

    (a)           Closing
Fee:  Borrowers shall pay to Lender a closing fee of Ninety
Thousand and No/100 Dollars ($90,000.00), which fee shall be fully earned and
payable on the date of disbursement of the initial Loans
hereunder.  The Forty-Five Thousand and No/100 Dollar ($45,000)
“break-up” fee previously paid to Lender by Borrowers shall be applied against
such fee.

     

    (b)           Unused Line
Fee:  Borrowers shall pay to Lender an unused line fee of
one-half of one percent (0.50%) of the difference between (i) the Maximum
Revolving Loan Limit and (ii) the sum of (A) the average daily balance of the
Revolving Loans plus (B) the Letter of Credit Obligations for each month, which
fee shall be fully earned by Lender and payable monthly in arrears on the first
Business Day of each month.  Said fee shall be calculated on the basis
of a 360 day year.

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

     

    (c)           Termination
Fee:  If, during the term of this Agreement, Borrowers prepay
all of the Obligations and this Agreement is terminated, Borrowers agree to pay
to Lender as a prepayment fee, in addition to the payment of all other
Obligations, an amount equal to (i) two percent (2%) of the Facility Amount if
such prepayment occurs two (2) years or more prior to the Maturity Date, (ii)
one percent (1%) of the Facility Amount if such prepayment occurs less than two
(2) years, but at least one (1) year prior to the Maturity Date, or (iii) zero
percent (0%) of the Facility Amount if such prepayment occurs less than one (1)
year prior to the Maturity Date.

     

    (d)           Costs and
Expenses:  Borrowers shall reimburse Lender for all costs and
expenses, including, without limitation, expenses and fees of third-party
service providers, legal expenses and reasonable attorneys’ fees (whether for
internal or outside counsel), incurred by Lender in connection with the (i)
documentation and consummation of this transaction and any other transactions
between Borrowers and Lender, including, without limitation, Uniform Commercial
Code and other public record searches and filings, overnight courier or other
express or messenger delivery, appraisal costs, surveys, title insurance and
environmental audit or review costs; (ii) collection, protection or enforcement
of any rights in or to the Collateral; (iii) collection of any Obligations; (iv)
administration of the Loans and the Collateral; and (v) enforcement of any of
Lender’s rights under this Agreement or any other Loan Document (including,
without limitation, any costs and expenses of any third party provider engaged
by Lender for such purposes).  Borrowers shall also pay all normal
service charges with respect to all accounts maintained by Borrowers with Lender
and any additional services requested by Borrowers from Lender.

     

    (e)           Capital Adequacy
Charge.  If Lender shall have determined that the adoption of
any law, rule or regulation regarding capital adequacy, or any change therein or
in the interpretation or application thereof, or compliance by Lender with any
request or directive regarding capital adequacy (whether or not having the force
of law) from any central bank or governmental authority enacted after the date
hereof, does or shall have the effect of reducing the rate of return on such
party’s capital as a consequence of its obligations hereunder to a level below
that which Lender could have achieved but for such adoption, change or
compliance (taking into consideration Lender’s policies with respect to capital
adequacy) by a material amount, then from time to time, after submission by
Lender to Borrowers of a written demand therefor together with the certificate
described below, Borrowers shall pay to Lender such additional amount or amounts
as will compensate Lender for such reduction, such written demand to be made
with reasonable promptness following such determination.  A
certificate of Lender claiming entitlement to payment as set forth above shall
be conclusive in the absence of manifest error.  Such certificate
shall set forth the nature of the occurrence giving rise to such reduction, the
amount of the additional amount or amounts to be paid to Lender, and the method
by which such amount was determined.  In determining such amount,
Lender may use any reasonable averaging and attribution method, applied on a
non-discriminatory basis.

    

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              4.06

            	
              Maximum
      Interest.

            

    

     

    It is the
intent of the parties that the rate of interest and other charges to Borrowers
under the Loan Documents shall be lawful; therefore, if for any reason the
interest or other charges payable under this Agreement are found by a court of
competent jurisdiction, in a final determination, to exceed the limit which
Lender may lawfully charge Borrowers, then the obligation to pay interest and
other charges shall automatically be reduced to such limit and, if any amount in
excess of such limit shall have been paid, then such amount shall be refunded to
Borrowers.

     

    
      	
               
      

            	
              4.07

            	
              Authorization
      to Make Revolving Loans.

            

    

     

    Borrowers
hereby authorize Lender, in its sole discretion, to charge any of Borrowers’
accounts or advance Revolving Loans to make any payments of principal, interest,
fees, costs or expenses required to be made under the Loan
Documents.

     

    
      	
               
      

            	
              4.08

            	
              Computation
      of Interest and Fees.

            

    

     

    All
interest accruing on the outstanding principal amount of the Loans and fees
hereunder outstanding from time to time shall be calculated on the basis of
actual number of days elapsed in a 360-day year.

     

    
      	
               
      

            	
              4.09

            	
              Taxes.

            

    

     

    (a)           Any
and all payments by Borrowers to or on account of any obligation of any of the
Borrowers hereunder or under any other Loan Document shall be made free and
clear of and without reduction or withholding for any Indemnified Taxes or Other
Taxes, provided that, if Borrowers shall be required by any applicable law to
deduct any Indemnified Taxes (including any 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 4.09(a)), Lender receives an
amount equal to the sum it would have received had no such deductions been made;
(ii) Borrowers shall make such deductions; and (iii) Borrowers shall
timely pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

     

    (b)           Without
limiting the provisions of Section 4.09(a), Borrowers shall timely pay any
Other Taxes to the relevant Governmental Authority in accordance with applicable
law.

     

    (c)           Borrowers
shall indemnify Lender, within ten days after written demand therefor, for the
full amount of any Indemnified Taxes or Other Taxes (including Taxes imposed or
asserted on or attributable to amounts payable under this Section 4.09)
paid by Lender 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 Borrowers by Lender shall be conclusive absent
manifest error.

     

    (d)           If
requested in writing by Lender, Borrowers shall deliver to Lender, as soon as
practicable after any payment of Indemnified Taxes or Other Taxes by Borrowers
to a Governmental Authority, the 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 Lender.

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

    (e)           If
Lender receives a refund of any Taxes or Other Taxes as to which it has been
indemnified by Borrowers or with respect to which Borrowers have paid additional
amounts pursuant to this Section 4.09, it shall pay to Borrowers an amount
equal to such refund (but only to the extent of indemnity payments made, or
additional amounts paid, by Borrowers under this Section 4.09 with respect
to the Taxes or Other Taxes giving rise to such refund), net of all
out-of-pocket expenses of Lender and without interest (other than any interest
paid by the relevant Governmental Authority with respect to such refund);
provided that Borrowers, upon the request of Lender, agrees to repay the amount
paid over to Borrowers (plus any penalties, interest or other charges imposed by
the relevant Governmental Authority) to Lender in the event Lender is required
to repay such refund to such Governmental Authority.  This
subsection (e) shall not be construed to require Lender to make available
its tax returns (or any other information relating to its taxes that it deems
confidential) to Borrowers or any other Person.

     

    
      	
              5.

            	
              COLLATERAL.

            

    

     

    
      	
               
      

            	
              5.01

            	
              Grant
      of Security Interest to
Lender.

            

    

     

    As
security for the payment of all Loans now or in the future made by Lender to any
of the Borrowers hereunder and for the payment or other satisfaction of all
other Obligations, each Borrower hereby assigns to Lender and grants to Lender a
continuing security interest in the following property of such Borrower, whether
now or hereafter owned, existing, acquired or arising and wherever now or
hereafter located:  (a) all Accounts (whether or not Eligible
Accounts) and all Goods whose sale, lease or other disposition by a Borrower has
given rise to Accounts and have been returned to, or repossessed or stopped in
transit by such Borrower; (b) all Chattel Paper, Instruments, Documents and
General Intangibles (including, without limitation, all patents, patent
applications, trademarks, trademark applications, trade names, trade secrets,
goodwill, copyrights, copyright applications, registrations, licenses, software,
franchises, customer lists, tax refund claims, claims against carriers and
shippers, guarantee claims, contract rights, payment intangibles, security
interests, security deposits and rights to indemnification); (c) all Inventory;
(d) all Goods (other than Inventory), including, without limitation, Equipment,
vehicles and Fixtures; (e) all Investment Property; (f) all Deposit Accounts,
bank accounts, deposits and cash; (g)  all Letter-of-Credit Rights;
(h)  Commercial Tort Claims listed on Schedule 5.01 hereto;
(i) any other property of the Borrower now or hereafter in the possession,
custody or control of Lender or any agent or any parent, affiliate or subsidiary
of Lender or any participant with Lender in the Loans, for any purpose (whether
for safekeeping, deposit, collection, custody, pledge, transmission or
otherwise); and (j) all additions and accessions to, substitutions for, and
replacements, products and Proceeds of the foregoing property, including,
without limitation, proceeds of all insurance policies insuring the foregoing
property, and all of the Borrower’s books and records relating to any of the
foregoing and to the Borrower’s business.

    

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              5.02

            	
              Other
      Security.

            

    

     

    Lender,
in its sole discretion, without waiving or releasing any obligation, liability
or duty of Borrowers under the Loan Documents or any Event of Default, may at
any time or times hereafter, but shall not be obligated to, pay, acquire or
accept an assignment of any security interest, lien, encumbrance or claim
asserted by any Person in, upon or against the Collateral, provided, that Lender
may take such actions with respect to Permitted Liens only after the occurrence
and during the continuance of an Event of Default.  All sums paid by
Lender in respect thereof and all costs, fees and expenses including, without
limitation, reasonable attorney fees, all court costs and all other charges
relating thereto incurred by Lender shall constitute Obligations, payable by
Borrowers to Lender on demand and, until paid, shall bear interest at the
highest rate then applicable to Loans hereunder.

     

    
      	
               
      

            	
              5.03

            	
              Possessory
      Collateral.

            

    

     

    Immediately
upon Borrowers’ receipt of any portion of the Collateral evidenced by an
agreement, Instrument or Document, including, without limitation, any Tangible
Chattel Paper and any Investment Property consisting of certificated securities,
Borrowers shall deliver the original thereof to Lender together with an
appropriate endorsement or other specific evidence of assignment thereof to
Lender (in form and substance acceptable to Lender).  If an
endorsement or assignment of any such items shall not be made for any reason,
Lender is hereby irrevocably authorized, as Borrowers’ attorney and
agent-in-fact, to endorse or assign the same on Borrowers’ behalf.

     

    
      	
               
      

            	
              5.04

            	
              Electronic
      Chattel Paper.

            

    

     

    To the
extent that Borrowers obtain or maintain any Electronic Chattel Paper, Borrowers
shall create, store and assign the record or records comprising the Electronic
Chattel Paper in such a manner that (a) a single authoritative copy of the
record or records exists which is unique, identifiable and except as otherwise
provided in clauses (d), (e) and (f) below, unalterable, (b) the authoritative
copy identifies Lender as the assignee of the record or records, (c) the
authoritative copy is communicated to and maintained by the Lender or its
designated custodian, (d) copies or revisions that add or change an identified
assignee of the authoritative copy can only be made with the participation of
Lender, (e) each copy of the authoritative copy and any copy of a copy is
readily identifiable as a copy that is not the authoritative copy and (f) any
revision of the authoritative copy is readily identifiable as an authorized or
unauthorized revision.

     

    
      	
               
      

            	
              5.05

            	
              Possession
      of Collateral.

            

    

     

    Until
otherwise notified by Lender following the occurrence of an Event of Default,
Borrowers shall have the right, except as otherwise provided in this Agreement,
in the ordinary course of Borrowers’ business, to (a) sell, lease or furnish
under contracts of service any of Borrowers’ Inventory normally held by
Borrowers for any such purpose; (b) use and consume any raw materials, work in
process or other materials normally held by Borrowers for such purpose; and (c)
dispose of obsolete or unuseful Equipment so long as all of the proceeds thereof
are paid to Lender for application to the Obligations (except for such proceeds
which are  required to be delivered to the holder of a Permitted Lien
which is prior in right of payment); provided, however, that a sale in the
ordinary course of business shall not include any transfer or sale in
satisfaction, partial or complete, of a debt owed by Borrowers.

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              5.06

            	
              Pledged
      Collateral.

            

    

     

    (a)           Registration in Nominee
Name; Denominations.  Each Borrower hereby agrees that without
limiting Article
5, Lender shall have the right (in its sole and absolute discretion) to
hold, where applicable, Pledged Collateral in the Lender’s own name as pledgee,
the name of its nominee (as pledgee or as sub-agent) or the name of such
Borrower, endorsed or assigned, where applicable, in blank or in favor of
Lender.

     

    (b)           Distributions. Upon
the occurrence and during the continuance of an Event of Default, Lender shall
have the right to receive (for application to the Obligations) all dividends,
interest or principal in respect of Pledged Collateral and to the extent that
any thereof is received by or on behalf of Borrowers, it shall be held in trust
for the benefit of Lender, shall be segregated from other property or funds of
Borrowers and shall be forthwith delivered to Lender upon demand in the same
form as so received (with any necessary endorsement).  Any and all
money and other property paid over to or received by Lender pursuant to this
clause shall be retained by Lender in an account to be
established in the name of Lender, under its sole dominion and control and shall
be applied to the Obligations as determined by Lender.

     

    (c)           Voting
Rights.  Upon the occurrence and during the continuance of an
Event of Default, Lender shall be vested with all rights of each of the
Borrowers to exercise the voting and consensual rights and powers with respect
to Pledged Collateral.

     

    (d)           Control.  If
at any time any Pledged Equity Interests do not constitute Securities or if any
Pledged Equity Interests constituting Securities are not evidenced by a Security
Certificate, Borrowers shall take such actions and execute such documents, at
Borrowers’ expense, as is necessary to establish Lender’s control thereof or
otherwise perfect the security interest therein.

     

    
      	
               
      

            	
              5.07

            	
              Assignment
      of Insurance.

            

    

     

    As
additional security for the payment and performance of the Obligations, each of
the Borrowers hereby assigns to the Lender any and all monies (including
proceeds of insurance and refunds of unearned premiums) due or to become due
under, and all other rights of the Borrowers with respect to, any and all
policies of insurance now or at any time hereafter covering the Collateral or
any evidence thereof or any business records or valuable papers pertaining
thereto, and each of the Borrowers hereby directs the issuer of any such policy
to pay all such monies directly to the Lender.  At any time, whether
or not an Event of Default then exists, the Lender may (but need not), in the
Lender’s name or in such Borrower’s name, execute and deliver proof of claim,
receive all such monies, endorse checks and other instruments representing
payment of such monies, and adjust, litigate, compromise or release any claim
against the issuer of any such policy.  Any monies received as payment
for any loss under any insurance policy mentioned above (other than liability
insurance policies) or as payment of any award or compensation for condemnation
or taking by eminent domain, shall be paid over to the Lender to be applied, at
the option of the Lender, either to the prepayment of the Obligations or shall
be disbursed to the Borrowers under staged payment terms reasonably satisfactory
to the Lender for application to the cost of repairs, replacements, or
restorations.  Any such repairs, replacements, or restorations shall
be effected with reasonable promptness and shall be of a value at least equal to
the value of the items or property destroyed prior to such damage or
destruction.

     

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              5.08

            	
              Preservation
      of Collateral and Perfection of Security
  Interests.

            

    

     

    Borrowers
shall, at Lender’s request, at any time and from time to time, authenticate,
execute and deliver to Lender such financing statements, documents and other
agreements and instruments (and pay the cost of filing or recording the same in
all public offices deemed necessary or desirable by Lender) and do such other
acts and things or cause third parties to do such other acts and things as
Lender may deem necessary or desirable, in its sole discretion, in order to
establish and maintain a valid, attached and perfected security interest in the
Collateral in favor of Lender (free and clear of all other liens, claims,
encumbrances and rights of third parties whatsoever, whether voluntarily or
involuntarily created, except Permitted Liens) to secure payment of the
Obligations, and in order to facilitate the collection of the
Collateral.  Borrowers irrevocably hereby make, constitute and appoint
Lender (and all Persons designated by Lender for that purpose) as Borrowers’
true and lawful attorney and agent-in-fact to execute and file such financing
statements, documents and other agreements and instruments and do such other
acts and things as may be necessary to preserve and perfect Lender’s security
interest in the Collateral.  Borrowers further agree that a carbon,
photographic, photostatic or other reproduction of this Agreement or of a
financing statement shall be sufficient as a financing
statement.  Borrowers further ratify and confirm the prior filing by
Lender of any and all financing statements which identify the Borrowers as
debtor, Lender as secured party and any or all Collateral as
collateral.  Upon the request of Lender, Borrowers agree to execute
and deliver to Lender Grants of Security Interest in Trademarks and Patents and
Grants of Security Interest in Copyrights in the forms of Exhibits C and D
respectively.

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

     

    
      	
              6.

            	
              COLLECTIONS.

            

    

     

    
      	
               
      

            	
              6.01

            	
              Lockbox
      and Blocked Account.

            

    

     

    Borrowers
shall direct all of their Account Debtors to make all payments on the Accounts
directly to the Lock Box.  Borrowers shall establish a Blocked
Account, into which all payments received in the Lock Box shall be deposited,
and into which Borrowers will immediately deposit all payments received by
Borrowers on Accounts in the identical form in which such payments were
received, whether by cash or check.  If Borrowers, any Affiliate or
Subsidiary, any shareholder, officer, director, employee or agent of Borrowers
or any Affiliate or Subsidiary, or any other Person acting for or in concert
with Borrowers shall receive any monies, checks, notes, drafts or other payments
relating to or as Proceeds of Accounts or other Collateral, Borrowers and each
such Person shall receive all such items in trust for, and as the sole and
exclusive property of, Lender and, immediately upon receipt thereof, shall remit
the same (or cause the same to be remitted) in kind to the Blocked
Account.  The financial institution with which the Blocked Account is
established, if other than Lender, shall acknowledge and agree, in a manner
satisfactory to Lender, that the amounts on deposit in such Lock Box and Blocked
Account are the sole and exclusive property of Lender, that such financial
institution will follow the instructions of Lender with respect to disposition
of funds in the Lock Box and Blocked Account without further consent from
Borrowers, that such financial institution has no right to setoff against the
Lock Box or Blocked Account or against any other account maintained by such
financial institution into which the contents of the Lock Box or Blocked Account
are transferred, and that such financial institution shall wire, or otherwise
transfer in immediately available funds to Lender in a manner satisfactory to
Lender, funds deposited in the Blocked Account on a daily basis as such funds
are collected.  Borrowers agree that all payments made to such Blocked
Account or otherwise received by Lender, whether in respect of the Accounts or
as Proceeds of other Collateral or otherwise (except for proceeds of Collateral
which are required to be delivered to the holder of a Permitted Lien which is
prior in right of payment), will be applied on account of the Obligations in
accordance with the terms of this Agreement; provided, that so long as no Event
of Default has occurred, payments received by Lender shall not be applied to the
unmatured portion of the LIBOR Rate Loans, but shall be held in a cash
collateral account maintained by Lender, until the earlier of (a) the last
Business Day of the Interest Period applicable to such LIBOR Rate Loan and (b)
the occurrence of an Event of Default; provided further, that so long as no
Event of Default has occurred, the immediately available funds in such cash
collateral account may be disbursed, at Borrowers’ discretion, to Borrowers so
long as after giving effect to such disbursement, Borrowers’ Availability,
equals or exceeds the outstanding Revolving Loans at such
time.  Borrowers agree to pay all customary fees, costs and expenses
in connection with opening and maintaining the Lock Box and Blocked
Account.  All of such fees, costs and expenses if not paid by
Borrowers, may be paid by Lender and in such event all amounts paid by Lender
shall constitute Obligations hereunder, shall be payable to Lender by Borrowers
upon demand, and, until paid, shall bear interest at the highest rate then
applicable to Loans hereunder.  All checks, drafts, instruments and
other items of payment or Proceeds of Collateral shall be endorsed by Borrowers
to Lender, and, if that endorsement of any such item shall not be made for any
reason, Lender is hereby irrevocably authorized to endorse the same on
Borrowers’ behalf.  For the purpose of this section, Borrowers
irrevocably hereby make, constitute and appoint Lender (and all Persons
designated by Lender for that purpose) as Borrowers’ true and lawful attorney
and agent-in-fact (i) to endorse such Borrower’s name upon said items of payment
and/or Proceeds of Collateral and upon any Chattel Paper, Document, Instrument,
invoice or similar document or agreement relating to any Account of such
Borrower or Goods pertaining thereto; (ii) to take control in any manner of any
item of payment or Proceeds thereof and (iii) to have access to any lock box or
postal box into which any of Borrowers’ mail is deposited, and open and process
all mail addressed to Borrowers and deposited therein.

     

    
      	
               
      

            	
              6.02

            	
              Collection
      of Accounts.

            

    

     

    Lender
may, at any time and from time to time after the occurrence and during the
continuance of an Event of Default, whether before or after notification to any
Account Debtor and whether before or after the maturity of any of the
Obligations, (a) enforce collection of any of Borrowers’ Accounts or other
amounts owed to Borrowers by suit or otherwise; (b) exercise all of Borrowers’
rights and remedies with respect to proceedings brought to collect any Accounts
or other amounts owed to Borrowers; (c) surrender, release or exchange all or
any part of any Accounts or other amounts owed to any of the Borrowers, or
compromise or extend or renew for any period (whether or not longer than the
original period) any indebtedness thereunder; (d) sell or assign any Account of
a Borrower or other amount owed to a Borrower upon such terms, for such amount
and at such time or times as Lender deems advisable; (e) prepare, file and sign
a Borrower’s name on any proof of claim in bankruptcy or other similar document
against any Account Debtor or other Person obligated to such Borrower; and (f)
do all other acts and things which are necessary, in Lender’s reasonable
discretion, to fulfill any of the Borrowers’ obligations under the Loan
Documents and to allow Lender to collect the Accounts or other amounts owed to
Borrowers.  In addition to any other provision hereof, Lender may at
any time, after the occurrence and during the continuance of an Event of
Default, at Borrowers’ expense, notify any parties obligated on any of the
Accounts to make payment directly to Lender of any amounts due or to become due
thereunder.

     

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              6.03

            	
              Application
      of Collected Funds.

            

    

     

    (a)           For
purposes of determining the amount of Loans available for borrowing purposes,
the balance in the Blocked Account as of the end of a Business Day, shall,
without duplication, be applied against the Obligations at the beginning of the
next Business Day in such order as Lender shall determine in its sole
discretion.

     

    (b)           For
purposes of calculating interest and fees, Lender shall apply all collected and
available funds one (1) Business Day after application of the proceeds set forth
in Section 6.03(a).

     

    
      	
               
      

            	
              6.04

            	
              Account
      Statements.

            

    

     

    On a
monthly basis, Lender shall deliver to Borrowers an account statement showing
all Loans, charges and payments, which shall be deemed final, binding and
conclusive upon Borrowers unless Borrowers notify Lender in writing, specifying
any error therein, within thirty (30) days of the date such account statement is
sent to Borrowers and any such notice shall only constitute an objection to the
items specifically identified.

     

    
      	
              7.

            	
              COLLATERAL,
      AVAILABILITY AND FINANCIAL REPORTS AND
  SCHEDULES

            

    

     

    
      	
               
      

            	
              7.01

            	
              Weekly
      Reports.

            

    

     

    At least
once each week, Borrowers shall deliver to Lender an executed Borrowing Base
Certificate which shall be accompanied by copies of Borrowers’ sales journals,
cash receipts journals and credit memo journals for the relevant
period.  Such Borrowing Base Certificate shall reflect the activity of
Borrowers with respect to Accounts for the immediately preceding week, and shall
be in a form and with such specificity as is satisfactory to Lender and shall
contain such additional information concerning Accounts as may be requested by
Lender including, without limitation, but only if specifically requested by
Lender, copies of all invoices prepared in connection with such
Accounts.  Borrowers shall also deliver to Lender, in Lender’s then
current form, on each day on which Borrowers request a Revolving Loan, an
Advance Request Form in the form attached hereto as Exhibit
A.

    
      
        
        

      

      
        27

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              7.02

            	
              Monthly
      Reports.

            

    

     

    Borrowers
shall deliver to Lender, in addition to any other reports, as soon as
practicable and in any event: within fifteen (15) days after the end of each
calendar month, (a) a detailed trial balance of Borrowers’ Accounts aged per
invoice date, in form and substance reasonably satisfactory to Lender including,
without limitation, the names and addresses of all Account Debtors of Borrowers,
(b) a summary and detail of accounts payable (such Accounts and accounts payable
divided into such time intervals as Lender may require in its reasonable
discretion), including a listing of any held checks, and (c) the general ledger
inventory account balance, a perpetual inventory report and Lender’s standard
form of Inventory report then in effect or the form most recently requested from
Borrowers by Lender, for Borrowers by each category of Inventory, together with
a description of the monthly change in each category of Inventory.

     

    
      	
               
      

            	
              7.03

            	
              Financial
      Statements.

            

    

     

    Borrowers
shall deliver to Lender the following financial information, all of which shall
be prepared in accordance with GAAP, and shall be accompanied by a compliance
certificate in the form of Exhibit B hereto,
which compliance certificate shall include a calculation of all financial
covenants contained in this Agreement:  (a) no later than thirty (30)
days after each calendar month, copies of internally prepared financial
statements, including, without limitation, balance sheets and statements of
income, retained earnings and cash flow of Borrowers, certified by the Chief
Financial Officer of Borrowers together with a memorandum comparing variances of
each of the foregoing against projections provided to Lender hereunder and an
explanation of such variances with such backup documentation as may be required
by Lender; and (b) no later than ninety (90) days after the end of each of
Borrowers’ Fiscal Years, audited annual financial statements with an unqualified
opinion by independent certified public accountants selected by Borrowers and
reasonably satisfactory to Lender, which financial statements shall be
accompanied by (i) a letter from such accountants acknowledging that they are
aware that a primary intent of Borrowers in obtaining such financial statements
is to influence Lender and that Lender is relying upon such financial statements
in connection with the exercise of its rights hereunder, provided, that
Borrowers shall only be required to use its reasonable efforts exercised in good
faith to obtain such letter; and (ii) copies of any management letters sent to
the Borrowers by such accountants.

     

    
      	
               
      

            	
              7.04

            	
              Annual
      Projections.

            

    

     

    As soon
as practicable and in any event prior to the beginning of each Fiscal Year,
Borrowers shall deliver to Lender projected balance sheets, statements of income
and cash flow for Borrowers, for each of the twelve (12) months during such
Fiscal Year, which shall include the assumptions used therein, together with
appropriate supporting details as reasonably requested by Lender.

     

    
      	
               
      

            	
              7.05

            	
              Explanation
      of Budgets and Projections.

            

    

     

    In
conjunction with the delivery of the annual presentation of projections or
budgets referred to in Section
7.04 above, Borrowers shall deliver a letter signed by the President or a
Vice President of each of the Borrowers and by the Treasurer or Chief Financial
Officer of each of the Borrowers, describing, comparing and analyzing, in
detail, all changes and developments between the anticipated financial results
included in such projections or budgets and the historical financial statements
of Borrowers.

     

    
      
        
        

      

      
        28

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              7.06

            	
              Public
      Reporting.

            

    

     

    Promptly
upon the filing thereof, Borrowers shall deliver to Lender copies of all
registration statements and annual, quarterly, monthly or other regular reports
which Borrowers or any of their Subsidiaries file with the Securities and
Exchange Commission, as well as promptly providing to Lender copies of any
reports and proxy statements delivered to its shareholders.

     

    
      	
               
      

            	
              7.07

            	
              Other
      Information.

            

    

     

    Promptly
following request therefor by Lender, such other business or financial data,
reports, appraisals and projections as Lender may reasonably
request.

     

    
      	
              8.

            	
              TERMINATION; AUTOMATIC
      RENEWAL.

            

    

     

    
      	
               
      

            	
              8.01

            	
              Original
      Term.

            

    

     

    This
Agreement shall be in effect from the date hereof until the Termination
Date.  Subject to the payment of the termination fee set forth in
Section 4.05(f), if any,
Borrowers may terminate this Agreement upon ten (10) days’ prior written notice
and payment in full of the Obligations.

     

    
      	
               
      

            	
              8.02

            	
              Intentionally
      Omitted.

            

    

     

    
      	
               
      

            	
              8.03

            	
              Termination
      of Agreement.

            

    

     

    Lender
shall not make any additional Loans on or after the Termination Date and this
Agreement shall terminate on the date thereafter that the Obligations are paid
in full.  The termination of this Agreement shall not affect Lender’s
or any Borrower’s rights, or any of the Obligations having their inception prior
to the effective date of such termination, and the provisions hereof shall
continue to be fully operative until all transactions entered into, rights or
interests created or Obligations have been fully and indefeasibly paid, disposed
of, concluded or liquidated.  The security interests, Liens, and
rights granted to Lender herein shall continue in full force and effect until
all of the Obligations have been indefeasibly paid and performed in
full.  All representations, warranties, covenants, waivers, and
agreements contained herein shall survive termination of this Agreement until
all Obligations are indefeasibly paid and performed in full.  At such
time as Borrowers have repaid all of the Obligations and this Agreement has
terminated, Borrowers shall deliver to Lender a release, in form and substance
satisfactory to Lender, of all obligations and liabilities of Lender and its
officers, directors, employees, agents, parents, subsidiaries and affiliates to
Borrowers, and if any of the Borrowers is obtaining new financing from another
lender, Borrowers shall deliver such lender’s indemnification of Lender, in form
and substance satisfactory to Lender, for checks which Lender has credited to
Borrowers’ account, but which subsequently are dishonored for any reason or for
automatic clearinghouse or wire transfers not yet posted to Borrowers’
account.

     

    
      
        
        

      

      
        29

        
          

        

      

      
        
        

      

    

     

    
      	
              9.

            	
              REPRESENTATIONS AND
      WARRANTIES.

            

    

     

    Each of
the Borrowers represents and warrants to Lender as follows:

     

    
      	
               
      

            	
              9.01

            	
              Financial
      Statements and Other
Information.

            

    

     

    The
financial statements and other information delivered or to be delivered by
Borrowers to Lender at or prior to the date of this Agreement fairly present in
all material respects the financial condition of Borrowers, and there has been
no Material Adverse Effect with respect to the Borrowers since the date of the
financial statements delivered to Lender most recently prior to the date of this
Agreement.  All written information now or heretofore furnished by
Borrowers to Lender is true and correct as of the date with respect to which
such information was furnished.

     

    
      	
               
      

            	
              9.02

            	
              Locations.

            

    

     

    The
office where Borrowers keeps their books, records and accounts (or copies
thereof) concerning the Collateral, Borrowers’ principal place of business and
all of Borrowers’ other places of business, locations of Collateral and post
office boxes and locations of bank accounts are as set forth on Schedule 9.02 and at
other locations within the continental United States of which Lender has been
advised by Borrowers in accordance with Section
10.02(a).  The Collateral, including, without limitation, the
Equipment (except any part thereof which Borrowers shall have advised Lender in
writing consists of Collateral normally used in more than one state) is kept,
or, in the case of vehicles, based, only at the addresses set forth on Schedule 9.02, and at
other locations within the continental United States of which Lender has been
advised by Borrowers in writing in accordance with Section 10.02(a)
hereof.

     

    
      	
               
      

            	
              9.03

            	
              Loans by
      Borrowers.

            

    

     

    Borrowers
have not made any loans or advances to any Affiliate or other Person except for
advances authorized hereunder to employees, officers and directors of Borrowers
for travel and other expenses arising in the ordinary course of Borrowers’
business and loans permitted pursuant to Section 11.06
hereof.

     

    
      	
               
      

            	
              9.04

            	
              Accounts.

            

    

     

    Each
Account which Borrowers shall, expressly or by implication, request Lender to
classify as an Eligible Account, shall, as of the time when such request is
made, conform in all respects to the requirements of such classification as set
forth in the respective definition of “Eligible Account” as set forth herein and
as otherwise established by Lender from time to time.

     

    
      	
               
      

            	
              9.05

            	
              Liens.

            

    

     

    Borrowers
are the lawful owners of all Collateral now purportedly owned by Borrowers, free
from all liens, claims, security interests and encumbrances whatsoever, whether
voluntarily or involuntarily created and whether or not perfected, other than
the Permitted Liens.

     

    
      
        
        

      

      
        30

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              9.06

            	
              Organization,
      Authority and No Conflict.

            

    

     

    Each
Borrower is an entity of the type set forth on Schedule 9.06, duly
organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation, organization or formation.  Each
Borrower’s jurisdiction of incorporation, organization or formation, federal
employer identification number and organization identification number are
correctly set forth on Schedule
9.06.  Except as set forth on Schedule 9.06, each
Borrower is duly qualified and in good standing in all states where the nature
and extent of the business transacted by it or the ownership of its assets makes
such qualification necessary or, if such Borrower is not so qualified, Borrower
may cure any such failure without losing any of its rights, incurring any liens
or material penalties, or otherwise affecting Lender’s rights.  Each
Borrower has the right and power and is duly authorized and empowered to enter
into, execute and deliver the Loan Documents and perform its obligations
hereunder and thereunder. Each Borrower’s execution, delivery and performance of
the Loan Documents does not conflict with the provisions of the organizational
documents of such Borrower, any statute, regulation, ordinance or rule of law,
or any agreement, contract or other document binding on such Borrower, except
for conflicts with agreements, contracts or other documents which would not have
a Material Adverse Effect, and such Borrower’s execution, delivery and
performance of the Loan Documents shall not result in the imposition of any lien
or other encumbrance upon any of Borrower’s property (other than Permitted
Liens) under any existing indenture, mortgage, deed of trust, loan or credit
agreement or other agreement or instrument by which such Borrower or any of its
property may be bound or affected.  If a Borrower is a partnership or
limited liability company, Borrower has not expressly elected to have its equity
interests treated as “Securities” under and as defined in Article 8 of the
Uniform Commercial Code.

     

    
      	
               
      

            	
              9.07

            	
              Litigation.

            

    

     

    Except as
disclosed to Lender on Schedule 9.07 hereto,
there are no actions or proceedings which are pending or, to the best of
Borrowers’ knowledge, threatened against Borrowers which is reasonably likely to
have a Material Adverse Effect.  Borrowers have no Commercial Tort
Claims pending other than those set forth on Schedule 5.01 and
those of which Lender has been advised by Borrowers in writing in accordance
with Section 10.02(c)
hereof.

     

    
      	
               
      

            	
              9.08

            	
              Compliance
      with Laws and Maintenance of
Permits.

            

    

     

    Borrowers
have obtained all governmental consents, franchises, certificates, licenses,
authorizations, approvals and permits, the lack of which would have a Material
Adverse Effect.  Borrowers are in compliance in all material respects
with all applicable federal, state, local and foreign statutes, orders,
regulations, rules and ordinances (including, without limitation, Environmental
Laws and statutes, orders, regulations, rules and ordinances relating to taxes,
employer and employee contributions and similar items, securities, ERISA or
employee health and safety) the failure to comply with which would have a
Material Adverse Effect.

     

    
      	
               
      

            	
              9.09

            	
              Affiliate
      Transactions.

            

    

     

    Except as
set forth on Schedule
9.09 hereto, Borrowers are not conducting, permitting or suffering to be
conducted, transactions with any Affiliate other than transactions with
Affiliates for the purchase or sale of Inventory or services in the ordinary
course of business pursuant to terms that are no less favorable to Borrowers
than the terms upon which such transactions would have been made had they been
made to or with a Person that is not an Affiliate.

     

    
      
        
        

      

      
        31

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              9.10

            	
              Names
      and Trade Names.

            

    

     

    Each
Borrower’s name has always been as set forth on the first page of this Agreement
and Borrowers use no trade names, assumed names, fictitious names or division
names in the operation of their business, except as set forth on Schedule 9.10
hereto.

     

    
      	
               
      

            	
              9.11

            	
              Equipment.

            

    

     

    Except
for Permitted Liens, Borrowers have good and merchantable title to and ownership
of all Equipment.  No Equipment is a Fixture to real estate unless
such real estate is owned by Borrowers and is subject to a mortgage in favor of
Lender, or if such real estate is leased, is subject to a landlord’s agreement
in favor of Lender on terms acceptable to Lender, or an accession to other
personal property unless such personal property is subject to a first priority
lien in favor of Lender.

     

    
      	
               
      

            	
              9.12

            	
              Enforceability.

            

    

     

    The Loan
Documents to which Borrowers are a party are the legal, valid and binding
obligations of Borrower and are enforceable against Borrowers in accordance with
their respective terms.

     

    
      	
               
      

            	
              9.13

            	
              Solvency.

            

    

     

    Borrowers
are, after giving effect to the transactions contemplated hereby, solvent, able
to pay its debts as they become due, has capital sufficient to carry on its
business, now owns property having a value both at fair valuation and at present
fair saleable value greater than the amount required to pay its debts, and will
not be rendered insolvent by the execution and delivery of the Loan Documents or
by completion of the transactions contemplated hereunder or
thereunder.

     

    
      	
               
      

            	
              9.14

            	
              Indebtedness.

            

    

     

    Except as
set forth on Schedule
9.14 hereto and as permitted by Section 11.02, Borrowers are
not obligated (directly or indirectly), for any loans or other Indebtedness
other than the Loans.

     

    
      	
               
      

            	
              9.15

            	
              Margin
      Security and Use of
Proceeds.

            

    

     

    Borrowers
do not own any margin securities, and none of the proceeds of the Loans
hereunder shall be used for the purpose of purchasing or carrying any margin
securities or for the purpose of reducing or retiring any indebtedness which was
originally incurred to purchase any margin securities or for any other purpose
not permitted by Regulation U of the Board of Governors of the Federal Reserve
System as in effect from time to time.

     

    
      
        
        

      

      
        32

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              9.16

            	
              Parent,
      Subsidiaries and Affiliates.

            

    

     

    Except as
set forth on Schedule
9.16 hereto, Borrowers have no Parents, Subsidiaries or other Affiliates
or divisions, nor are Borrowers engaged in any joint venture or partnership with
any other Person.

     

    
      	
               
      

            	
              9.17

            	
              No
      Defaults.

            

    

     

    No
Borrower is in default under any material contract, lease or commitment to which
it is a party or by which it is bound.  Borrowers do not know of any
dispute regarding any contract, lease or commitment which would have a Material
Adverse Effect.

     

    
      	
               
      

            	
              9.18

            	
              Employee
      Matters.

            

    

     

    There are
no controversies pending or threatened between any Borrower and any of its
employees, agents or independent contractors other than employee grievances
arising in the ordinary course of business which would not, in the aggregate,
have a Material Adverse Effect, and each Borrower is in compliance with all
federal and state laws respecting employment and employment terms, conditions
and practices except for such non-compliance which would not have a Material
Adverse Effect.

     

    
      	
               
      

            	
              9.19

            	
              Intellectual
      Property.

            

    

     

    (a)           Intellectual Property
Rights.  Set forth on Schedule 9.19 is a
complete list of all patents, applications for patents, registered trademarks,
applications to register trademarks, service marks, applications to register
service marks, mask works, trade dress and copyrights for which any Borrower is
the owner of record (the “Intellectual
Property”).  Except as disclosed on Schedule 9.19, (i)
Borrowers own the Intellectual Property free and clear of all restrictions
(including covenants not to sue a third party), court orders, injunctions,
decrees, writs or Liens, whether by written agreement or otherwise, (ii) no
Person other than the Borrowers own or have been granted any right in the
Intellectual Property, (iii) all Intellectual Property is valid, subsisting and
enforceable and (iv) Borrowers have taken all commercially reasonable action
necessary to maintain and protect the Intellectual Property.  The use
of such Intellectual Property by Borrowers and the operation of its businesses
does not infringe any valid and enforceable intellectual property rights of any
other Person, except to the extent any such infringement could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse
Effect.  No slogan or other advertising device, product, process,
method, substance, part or other material now employed, or now contemplated to
be employed, by Borrowers infringes upon any rights held by any other Person,
except to the extent any such infringement could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect.  Except as specifically disclosed on Schedule 9.19, no
claim or litigation regarding any of the foregoing is pending or, to Borrowers’
knowledge, threatened, and no patent, invention, device, application, principle
or any statute, law, rule, regulation, standard or code is pending or, to
Borrowers’ knowledge, proposed, which could, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     

    
      
        
        

      

      
        33

        
          

        

      

      
        
        

      

    

     

    (b)           Licensed Intellectual
Property.  Borrowers do not possess any licenses other than (i)
as set forth on Schedule 9.19, and
(ii) readily available, non-negotiated licenses of computer software and other
intellectual property used solely for performing accounting, word processing and
similar administrative tasks.

     

    
      	
               
      

            	
              9.20

            	
              Environmental
      Matters.

            

    

     

    Borrowers
have not generated, used, stored, treated, transported, manufactured, handled,
produced or disposed of any Hazardous Materials, on or off its premises (whether
or not owned by it) in any manner which at any time violates in any material
respect any Environmental Law or any license, permit, certificate, approval or
similar authorization thereunder and the operations of the Borrowers comply in
all material respects with all Environmental Laws and all licenses, permits,
certificates, approvals and similar authorizations thereunder.  There
has been no investigation, proceeding, complaint, order, directive, claim,
citation or notice by any governmental authority or any other Person, nor is any
pending or to the best of the Borrowers’ knowledge threatened with respect to
any non-compliance with or violation of the requirements of any Environmental
Law by the Borrowers or the release, spill or discharge, threatened or actual,
of any Hazardous Materials or the generation, use, storage, treatment,
transportation, manufacture, handling, production or disposal of any Hazardous
Materials or any other environmental, health or safety matter, which affects the
Borrowers or their business, operations or assets or any properties at which the
Borrowers have transported, stored or disposed of any Hazardous
Materials.  Borrowers have no material liability (contingent or
otherwise) in connection with a release, spill or discharge, threatened or
actual, of any Hazardous Materials or the generation, use, storage, treatment,
transportation, manufacture, handling, production or disposal of any Hazardous
Materials.

     

    
      	
               
      

            	
              9.21

            	
              ERISA
      Matters.

            

    

     

    Except as
disclosed to the Lender in writing prior to the date hereof, neither the
Borrowers nor any ERISA Affiliate (a) maintains or has maintained any Pension
Plan, (b) contributes or has contributed to any Multiemployer Plan or (c)
provides or has provided post-retirement medical or insurance benefits with
respect to employees or former employees (other than benefits required under
Section 601 of ERISA, Section 4980B of the IRC or applicable state
law).  Neither the Borrowers nor any ERISA Affiliate has received any
notice or has any knowledge to the effect that it is not in full compliance with
any of the requirements of ERISA, the IRC or applicable state law with respect
to any Plan.  No Reportable Event exists in connection with any
Pension Plan.  Each Plan which is intended to qualify under the IRC is
so qualified, and no fact or circumstance exists which may have an adverse
effect on the Plan’s tax qualified status.  Neither the Borrowers nor
any ERISA Affiliate has (i) any accumulated funding deficiency (as defined in
Section 302 of ERISA and Section 412 of the IRC) under any Plan, whether or not
waived, (ii) any liability under Section 4201 or 4243 of ERISA for any
withdrawal, partial withdrawal, reorganization or other event under any
Multiemployer Plan or (iii) any liability or knowledge of any facts or
circumstances which could result in any liability to the PBGC, the Internal
Revenue Service, the Department of Labor or any participant in connection with
any Plan (other than routine claims for benefits under the Plan).

     

    
      	
               
      

            	
              9.22

            	
              Intentionally
      Omitted.

            

    

     

    
      
        
        

      

      
        34

        
          

        

      

      
        
        

      

    

     

    
      	
              10.

            	
              AFFIRMATIVE
      COVENANTS.

            

    

     

    Until
payment and satisfaction in full of all Obligations and termination of this
Agreement, each of the Borrowers covenant and agree as follows:

     

    
      	
            	
              10.01

            	
              Maintenance
      of Records.

            

    

     

    Borrowers
shall at all times keep accurate and complete books, records and accounts with
respect to all of Borrowers’ business activities, in accordance with GAAP, and
shall keep such books, records and accounts, and any copies thereof, only at the
addresses indicated for such purpose on Schedule
9.02.

     

    
      	
            	
              10.02

            	
              Notices.

            

    

     

    Borrowers
shall provide written notice to Lender of the following:

     

    (a)           Locations.  Promptly
upon becoming aware of (but in no event less than ten (10) days prior to the
occurrence thereof) the proposed opening of any new place of business or new
location of Collateral, the closing of any existing place of business or
location of Collateral, any change of in the location of Borrowers’ books,
records and accounts (or copies thereof), the opening or closing of any post
office box, the opening or closing of any bank account or, if any of the
Collateral consists of Goods of a type normally used in more than one state, the
use of any such Goods in any state other than a state in which Borrower has
previously advised Lender that such Goods will be used.

     

    (b)           Eligible
Accounts.  Promptly upon becoming aware thereof, if any Account
identified by Borrowers to Lender as an Eligible Account becomes ineligible for
any reason.

     

    (c)           Litigation and
Proceedings.  Promptly upon becoming aware thereof, (i) of any
litigation, arbitration, governmental investigation or other actions or
proceedings which are pending or threatened against Borrowers or any Subsidiary
or to which any of the properties of any thereof is subject which might have a
Material Adverse Effect, and (ii) of any Commercial Tort Claims of Borrowers
which may arise.

     

    (d)           Names and Trade
Names.  Within ten (10) days of the change of any of Borrowers’
names or the use of any trade name, assumed name, fictitious name or division
name not previously disclosed to Lender in writing.

     

    (e)           ERISA
Matters.  Promptly upon (i) the occurrence of any Reportable
Event which might result in the termination by the PBGC of any Plan covering any
officers or employees of any of the Borrowers, any benefits of which are, or are
required to be, guaranteed by the PBGC, (ii) receipt of any notice from the PBGC
of its intention to seek termination of any Plan or appointment of a trustee
therefore, (iii) its intention to terminate or withdraw from any Plan, (iv) the
institution of any steps by any member of the Controlled Group or any other
Person to terminate any Pension Plan, (v) the failure of any of the Borrowers or
any ERISA Affiliate of any member of the Controlled Group or any other Person to
make a required contribution to any Pension Plan (if such failure is sufficient
to give rise to a Lien under Section 302(f) of ERISA) or to any Multiemployer
Plan, (vi) the taking of any action with respect to a Pension Plan which could
result in the requirements that any of the Borrowers furnish a bond or other
security to the PBGC or such Pension Plan, (vii) the occurrence of any event
with respect to any Pension Plan or Multiemployer Plan which could result in the
incurrence by any ERISA Affiliate or any member of the Controlled Group of any
material liability, fine or penalty (including any claim or demand for
withdrawal liability or partial withdrawal from any Multiemployer Plan), (viii)
any material increase in the contingent liability of any of the Borrowers with
respect to any post-retirement welfare plan benefit, or (ix) any notice that any
Multiemployer Plan is in reorganization, that increased contributions may be
required to avoid a reduction in plan benefits or the imposition of an excise
tax, that any such plan is or has been funded at a rate less than that required
under Section 412 of the Code, that any such plan is or may be terminated, or
that any such plan is or may become insolvent.

     

    
      
        
        

      

      
        35

        
          

        

      

      
        
        

      

    

     

    (f)           Environmental
Matters.  Immediately upon becoming aware of any investigation,
proceeding, complaint, order, directive, claim, citation or notice with respect
to any non-compliance with or violation of the requirements of any Environmental
Law by any of the Borrowers or the generation, use, storage, treatment,
transportation, manufacture handling, production or disposal of any Hazardous
Materials or any other environmental, health or safety matter which affects any
of the Borrowers or its business operations or assets or any properties at which
any of the Borrowers has transported, stored or disposed of any Hazardous
Materials unless the foregoing could not reasonably be expected to have a
Material Adverse Effect.

     

    (g)           Default; Material Adverse
Change.  Promptly of (i) any Material Adverse Effect, (ii) the
occurrence of any Event of Default hereunder, or (iii) the occurrence of any
event which, if uncured, will become an Event of Default after notice or lapse
of time (or both).

     

    All of
the foregoing notices shall be provided by Borrowers to Lender in writing and
shall describe the steps being taken by Borrowers or any Subsidiary affected
thereby with respect thereto.

     

    
      	
            	
              10.03

            	
              Compliance
      with Laws and Maintenance of
Permits.

            

    

     

    Borrowers
shall maintain all governmental consents, franchises, certificates, licenses,
authorizations, approvals and permits, the lack of which would have a Material
Adverse Effect and Borrowers shall remain in compliance with all applicable
federal, state, local and foreign statutes, orders, regulations, rules and
ordinances (including, without limitation, Environmental Laws and statutes,
orders, regulations, rules and ordinances relating to taxes, employer and
employee contributions and similar items, securities, ERISA or employee health
and safety) the failure with which to comply would have a Material Adverse
Effect.  Following any determination by Lender that there is
non-compliance, or any condition which requires any action by or on behalf of
any of the Borrowers in order to avoid non-compliance, with any Environmental
Law, at Borrowers’ expense cause an independent environmental engineer
acceptable to Lender to conduct such tests of the relevant site(s) as are
appropriate and prepare and deliver a report setting forth the results of such
tests, a proposed plan for remediation and an estimate of the costs
thereof.

     

    
      
        
        

      

      
        36

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              10.04

            	
              Inspection
      and Audits.

            

    

     

    Borrowers
shall permit Lender, or any Persons designated by it, to call at Borrowers’
places of business at any reasonable times and with reasonable notice provided
no Event of Default has occurred and is continuing, and, without hindrance or
delay, to inspect the Collateral and to inspect, audit, check and make extracts
from Borrowers’ books, records, journals, orders, receipts and any
correspondence and other data relating to Borrowers’ business, the Collateral or
any transactions between the parties hereto, and shall have the right to make
such verification concerning Borrowers’ business as Lender may consider
reasonable under the circumstances.  Borrowers shall furnish to Lender
such information relevant to Lender’s rights under the Loan Documents as Lender
shall at any time and from time to time request.  Lender, through its
officers, employees or agents shall have the right, at any time and from time to
time, in Lender’s name, to verify the validity, amount or any other matter
relating to any of Borrowers’ Accounts, by mail, telephone, telecopy, electronic
mail, or otherwise, provided that prior to the occurrence of an Event of
Default, Lender shall conduct such verification in the name of a nominee of
Lender or in a Borrower’s name.  Borrowers authorizes Lender to
discuss the affairs, finances and business of Borrowers with any officers,
employees or directors of Borrowers or with its Parent or any Affiliate or the
officers, employees or directors of its Parent or any Affiliate, and to discuss
the financial condition of Borrowers with Borrowers’ independent public
accountants.  Any such discussions shall be without liability to
Lender or to Borrowers’ independent public accountants.  For each
inspection or audit conducted by Lender hereunder, Borrowers shall pay to Lender
(a) fees at Lender’s then-current per diem rate (such rate being Nine Hundred
and No/100 Dollars ($900.00) as of the date of this Agreement), plus (b) all
reasonable costs and out-of-pocket expenses incurred by Lender, provided that,
so long as no Event of Default exists, Borrowers shall not be required to pay to
Lender such fees and/or expenses more frequently than three (3) times each
Fiscal Year.  All such fees, costs and expenses shall constitute
Obligations hereunder, shall be payable on demand and, until paid, shall bear
interest at the highest rate then applicable to Loans hereunder.

     

    
      	
            	
              10.05

            	
              Insurance.

            

    

     

    (a)           Borrowers
will obtain and at all times maintain insurance with insurers reasonably
acceptable to the Lender, in such amounts, on such terms (including any
deductibles) and against such risks as may from time to time be required by the
Lender, but in all events in such amounts and against such risks as is usually
carried by companies engaged in similar business and owning similar properties
in the same general areas in which the Borrowers operate.  Without
limiting the generality of the foregoing, the Borrowers will at all times
maintain liability insurance, business interruption insurance including coverage
for force majeure and keep all tangible Collateral insured against risks of fire
(including so-called extended coverage), theft, collision (for Collateral
consisting of motor vehicles) and such other risks and in such amounts as the
Lender may reasonably request, with any loss payable to the Lender to the extent
of its interest, and all policies of such insurance shall contain a lender’s
loss payable endorsement for the Lender’s benefit or an endorsement showing
Lender as additional insured.

     

    
      
        
        

      

      
        37

        
          

        

      

      
        
        

      

    

     

    (b)           If
Borrowers at any time or times hereafter shall fail to obtain or maintain any of
the policies of insurance required above or to pay any premium relating thereto,
then Lender, without waiving or releasing any obligation or default by Borrowers
hereunder, may (but shall be under no obligation to) obtain and maintain such
policies of insurance and pay such premiums and take such other actions with
respect thereto as Lender deems advisable upon notice to
Borrowers.  Such insurance, if obtained by Lender, may, but need not,
protect Borrower’s interests or pay any claim made by or against Borrowers with
respect to the Collateral.  Such insurance may be more expensive than
the cost of insurance Borrowers may be able to obtain on its own and may be
cancelled only upon Borrowers providing evidence that it has obtained the
insurance as required above.  All sums disbursed by Lender in
connection with any such actions, including, without limitation, court costs,
expenses, other charges relating thereto and reasonable attorneys’ fees, shall
constitute Loans hereunder, shall be payable on demand by Borrowers to Lender
and, until paid, shall bear interest at the highest rate then applicable to
Loans hereunder.

     

    
      	
            	
              10.06

            	
              Collateral.

            

    

     

    Borrowers
shall keep the Collateral in good condition, repair and order and shall make all
necessary repairs to the Equipment and replacements thereof so that the
operating efficiency and the value thereof shall at all times be preserved and
maintained in all material respects.  Borrowers shall permit Lender to
examine any of the Collateral at any time and wherever the Collateral may be
located and, Borrowers shall, immediately upon request therefor by Lender,
deliver to Lender any and all evidence of ownership of any of the Equipment
including, without limitation, certificates of title and applications of
title.  Borrowers shall, at the request of Lender, indicate on its
records concerning the Collateral a notation, in form satisfactory to Lender, of
the security interest of Lender hereunder.

     

    
      	
            	
              10.07

            	
              Use
      of Proceeds.

            

    

     

    All
monies and other property obtained by Borrowers from Lender pursuant to this
Agreement shall be used solely for business purposes of Borrowers.

     

    
      	
            	
              10.08

            	
              Taxes.

            

    

     

    Borrowers
shall file all required tax returns and pay all of its taxes when due, subject
to any extensions granted by the applicable taxing authority, including, without
limitation, taxes imposed by federal, state or municipal agencies, and shall
cause any liens for taxes to be promptly released; provided, that Borrowers
shall have the right to contest the payment of such taxes in good faith by
appropriate proceedings so long as (a) the amount so contested is shown on
Borrowers’ financial statements; (b) the contesting of any such payment does not
give rise to a lien for taxes; (c) Borrowers keep on deposit with Lender (such
deposit to be held without interest) or a reserve is maintained against
Borrowers’ availability to borrow money under Section 2.01, in either case,
in an amount of money which, in the sole judgment of Lender, is sufficient to
pay such taxes and any interest or penalties that may accrue thereon; and (d) if
Borrowers fail to prosecute such contest with reasonable diligence, Lender may
apply the money so deposited in payment of such taxes.  If Borrowers
fail to pay any such taxes and in the absence of any such contest by Borrowers,
Lender may (but shall be under no obligation to) advance and pay any sums
required to pay any such taxes and/or to secure the release of any lien
therefor, and any sums so advanced by Lender shall constitute Loans hereunder,
shall be payable by Borrowers to Lender on demand, and, until paid, shall bear
interest at the highest rate then applicable to Loans hereunder.

     

    
      
        
        

      

      
        38

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              10.09

            	
              Intellectual
      Property.

            

    

     

    Borrowers
shall maintain adequate licenses, patents, patent applications, copyrights,
service marks, trademarks, trademark applications, tradestyles and trade names
to continue its business as heretofore conducted by it or as hereafter conducted
by it unless the failure to maintain any of the foregoing could not reasonably
be expected to have a Material Adverse Effect.

     

    
      	
            	
              10.10

            	
              Checking
      Accounts and Cash Management
Services.

            

    

     

    Borrowers
shall maintain its general checking/controlled disbursement account with Lender
or another bank acceptable to Lender.  If Borrowers maintain its
general checking/controlled disbursement account with Lender, (a) normal charges
shall be assessed thereon, (b) although no compensating balance is required,
Borrowers must keep monthly balances in order to merit earnings credits which
will cover Lender’s service charges for demand deposit account activities, and
(c) Borrowers shall enter into agreements with Lender for standard cash
management services.  Borrowers shall be responsible for all normal
charges assessed thereon.  All of Borrowers’ bank accounts are set
forth on Schedule
9.02, and such funds in such bank accounts will be transferred to Lender
and such bank accounts closed within sixty (60) days of the date of this
Agreement.  Borrowers will not open any other bank account unless (i)
Borrowers provide written notice to Lender at least thirty (30) days prior to
opening such account and (ii) the bank at which such account is located executes
such documents as are necessary to give Lender a first priority, perfected
security interest in such account.

     

    
      	
            	
              10.11

            	
              Patriot
      Act, Bank Secrecy Act and Office of Foreign Assets
      Control.

            

    

     

    As
required by federal law and the Lender’s policies and practices, Lender may need
to obtain, verify and record certain customer identification information and
documentation in connection with opening or maintaining accounts, or
establishing or continuing to provide services and Borrowers agree to provide
such information.  In addition, and without limiting the foregoing
sentence, the Borrowers shall (a) ensure, and cause each Subsidiary to ensure,
that no Person who owns a controlling interest in or otherwise controls the
Borrowers or any Subsidiary is or shall be listed on the Specially Designated
Nationals and Blocked Person List or other similar lists maintained by OFAC, the
Department of the Treasury or included in any Executive Orders, (b) not use or
permit the use of the proceeds of the Loans to violate any of the foreign asset
control regulations of OFAC or any enabling statute or Executive Order relating
thereto, and (c) comply, and cause each Subsidiary to comply, with all
applicable Bank Secrecy Act laws and regulations, as amended.

     

    
      	
              11.

            	
              NEGATIVE
      COVENANTS.

            

    

     

    Until
payment and satisfaction in full of all Obligations and termination of this
Agreement, unless Borrowers obtain Lender’s prior written consent waiving or
modifying any of Borrower’s covenants hereunder in any specific instance, each
of the Borrowers agrees as follows:

     

    
      
        
        

      

      
        39

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              11.01

            	
              Guaranties.

            

    

     

    Borrowers
shall not assume, guarantee or endorse, or otherwise become liable in connection
with, the obligations of any Person, except by endorsement of instruments for
deposit or collection or similar transactions in the ordinary course of
business.

     

    
      	
            	
              11.02

            	
              Indebtedness.

            

    

     

    Borrowers
shall not create, incur, assume or become obligated (directly or indirectly),
for any loans or other Indebtedness other than the Loans, except that Borrowers
may (a) borrow money from a Person other than Lender on an unsecured and
subordinated basis so long as a subordination agreement in favor of Lender and
in form and substance satisfactory to Lender is executed and delivered to Lender
prior to any borrowing of money by the Borrowers; (b) incur Hedging Obligations
in favor of Lender (c) maintain its present Indebtedness listed on Schedule 9.14 hereto;
(d) incur unsecured indebtedness to trade creditors in the ordinary course of
business; (e) incur purchase money indebtedness or capitalized lease
obligations; (f) incur operating lease obligations; and (g) incur obligations
under an employee stock ownership plan or other similar employee benefit
plan.

     

    
      	
            	
              11.03

            	
              Liens.

            

    

     

    Borrowers
shall not grant or permit to exist (voluntarily or involuntarily) any lien,
claim, security interest or other encumbrance whatsoever on any of its assets,
other than Permitted Liens.

     

    
      	
            	
              11.04

            	
              Mergers, Sales,
      Acquisitions, Subsidiaries and Other Transactions Outside the Ordinary
      Course of Business.

            

    

     

    Borrowers
shall not (a) enter into any merger or consolidation; (b) change the state of
any Borrower’s organization or enter into any transaction which has the effect
of changing a Borrower’s state of organization; (c) sell, lease or otherwise
dispose of any of its assets other than in the ordinary course of business; (d)
purchase the stock, other equity interests or all or a material portion of the
assets of any Person or division of such Person, except other than as set forth
in subsection (e) herein; or (d) enter into any other transaction outside the
ordinary course of Borrowers’ business; or (e) enter into, any purchase,
redemption or retirement of any shares of any class of Borrowers’ stock or any
other equity interest, and any issuance of any shares of, or warrants or other
rights to receive or purchase any shares of, any class of Borrowers’ stock or
any other equity interest unless after giving effect to such transaction,
Borrowers have Excess Availability of not less than Six Hundred Thousand and
No/100 Dollars ($600,000.00), provided that, this subsection (e) shall not apply
to Clark Holdings Inc. solely as to the issuance of equity awards pursuant to
equity-based compensation plans adopted by Clark Holdings
Inc.  Borrowers shall not form any Subsidiaries or enter into any
joint ventures or partnerships with any other Person.

     

    
      
        
        

      

      
        40

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              11.05

            	
              Dividends
      and Distributions.

            

    

     

    Borrowers
shall not declare or pay any dividend or other distribution (whether in cash or
in kind) on any class of its stock unless after giving effect to such
transaction, Borrowers have Excess Availability of not less than Six Hundred
Thousand and No/100 Dollars ($600,000.00).

     

    
      	
            	
              11.06

            	
              Investments;
      Loans.

            

    

     

    Borrowers
shall not purchase or otherwise acquire, or contract to purchase or otherwise
acquire, the obligations or stock of any Person, other than (a) direct
obligations of the United States and (b) Hedging Agreements with Lender, and (c)
obligations insured by the Federal Deposit Insurance Corporation and obligations
unconditionally guaranteed by the United States; nor shall Borrowers lend or
otherwise advance funds to any Person except for advances made to employees,
officers and directors for travel and other expenses arising in the ordinary
course of business.

     

    
      	
            	
              11.07

            	
              Fundamental
      Changes, Line of Business.

            

    

     

    Borrowers
shall not amend its organizational documents or change its Fiscal Year or enter
into a new line of business materially different from Borrowers’ current
business unless (a) such actions would not have a Material Adverse Effect; (b)
such actions would not affect the obligations of Borrowers to Lender; (c) such
actions would not affect the interpretation of any of the terms of the Loan
Documents and (d) Lender has received ten (10) days prior written notice of such
amendment or change.

     

    
      	
            	
              11.08

            	
              Equipment.

            

    

     

    Borrowers
shall not (a) permit any Equipment to become a Fixture to real property unless
such real property is owned by Borrowers and is subject to a mortgage in favor
of Lender, or if such real estate is leased, is subject to a landlord’s
agreement in favor of Lender on terms acceptable to Lender, or (b) permit any
Equipment to become an accession to any other personal property unless such
personal property is subject to a first priority lien in favor of
Lender.

     

    
      	
            	
              11.09

            	
              Affiliate
      Transactions.

            

    

     

    Except as
set forth on Schedule
9.09 hereto, Borrowers shall not conduct, permit or suffer to be
conducted, transactions with Affiliates other than transactions for the purchase
or sale of Inventory or services in the ordinary course of business pursuant to
terms that are no less favorable to Borrowers than the terms upon which such
transactions would have been made had they been made to or with a Person that is
not an Affiliate.

     

    
      	
            	
              11.10

            	
              Settling
      of Accounts.

            

    

     

    Borrowers
shall not settle or adjust any Account identified by Borrowers as an Eligible
Account or with respect to which the Account Debtor is an Affiliate without the
consent of Lender, provided, that following the occurrence and during the
continuance of an Event of Default, Borrowers shall not settle or adjust any
Account without the consent of Lender.

     

    
      
        
        

      

      
        41

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              11.11

            	
              Intentionally
      Omitted.

            

    

     

    
      	
            	
              11.12

            	
              ERISA.

            

    

     

    Except as
disclosed to the Lender in writing prior to the date hereof, neither the
Borrowers nor any ERISA Affiliate will (a) adopt, create, assume or become a
party to any Pension Plan, (b) incur any obligation to contribute to any
Multiemployer Plan, (c) incur any obligation to provide post-retirement medical
or insurance benefits with respect to employees or former employees (other than
benefits required by law) or (d) amend any Plan in a manner that would
materially increase its funding obligations.

     

    
      	
            	
              11.13

            	
              Subordinated
      Debt.

            

    

     

    Borrowers
shall not, and shall not permit any Subsidiary to make: (i) any payment of
principal of, or interest on, any of the Subordinated Debt, if a Default or an
Event of Default then exists hereunder or would result from such payment; (ii)
any payment of the principal or interest due on the Subordinated Debt as a
result of acceleration thereunder or a mandatory prepayment thereunder; (iii)
any amendment or modification of or supplement to the documents evidencing or
securing the Subordinated Debt; or (iv) payment of principal or interest on the
Subordinated Debt other than when due (without giving effect to any acceleration
of maturity or mandatory prepayment) and expressly permitted under the terms of
the Subordination Agreement.

     

    
      	
              12.

            	
              FINANCIAL
      COVENANTS.

            

    

     

    Borrowers
shall maintain and keep in full force and effect each of the financial covenants
set forth below:

     

    
      	
            	
              12.01

            	
              Intentionally
      Omitted.

            

    

     

    
      	
            	
              12.02

            	
              Fixed
      Charge Coverage.

            

    

     

    Borrowers
shall not permit Fixed Charge Coverage as of each date set forth below to be
less than the corresponding ratio for such date set forth below:

     

    
      
        
          
            
              	
                      Date

                    	 	
                      Ratio

                    
	 
      	 	 
      
	
                      thirteen
      (13) week period ending April 3, 2010

                      twenty-six
      (26) week period ending July 3, 2010

                      thirty-nine
      (39) week period ending October 2, 2010

                      fifty-two
      (52) week period ending January 1, 2011

                      and
      each thirteen (13) week quarter end thereafter on a rolling twelve (12)
      month basis.

                    	 	
                      1.05
      to 1.0

                    

            

          

        

      

    

     

    
      	
            	
              12.03

            	
              Intentionally
      Omitted.

            

    

     

    
      	
            	
              12.04

            	
              Intentionally
      Omitted.

            

    

     

    
      
        
        

      

      
        42

        
          

        

      

      
        
        

      

    

     

    
      	
            	
              12.05

            	
              Intentionally
      Omitted.

            

    

     

    
      	
            	
              12.06

            	
              Intentionally
      Omitted.

            

    

     

    
      	
              13.

            	
              DEFAULT AND
      REMEDIES.

            

    

     

    
      	
            	
              13.01

            	
              Events
      of Default.

            

    

     

    The
occurrence of any one or more of the following events shall constitute an “Event of Default” by Borrowers
hereunder:

     

    (a)           Payment.  The
failure of Borrowers to pay when due, declared due, or demanded by Lender, any
of the Obligations; or

     

    (b)           Breach of Loan
Documents.  The failure of any Borrower to perform, keep or
observe any of the covenants, conditions, promises, agreements or obligations of
such Borrower under any of the Loan Documents; provided that any such failure by
Borrowers under Sections
10.02(a), (d), (e), (f), 10.03 and 10.09 of this Agreement shall
not constitute an Event of Default hereunder until the fifteenth (15th) day
following the occurrence thereof; or

     

    (c)           Breaches of Other
Obligations.  The failure of any Borrower to perform, keep or
observe (after any applicable notice and cure period) any of the covenants,
conditions, promises, agreements or obligations of such Borrower under any other
agreement with any Person if such failure might have a Material Adverse Effect;
or

     

    (d)           Breach of Representations and
Warranties.  The making or furnishing by any Borrower to Lender
of any representation, warranty, certificate, schedule, report or other
communication within or in connection with the Loan Documents or in connection
with any other agreement between such Borrower and Lender, which is untrue or
misleading in any material respect as of the date made; or

     

    (e)           Loss of
Collateral.  (i) The uninsured loss, theft, damage or
destruction of any of the Collateral, or (ii) the insured loss, theft, damage or
destruction of any of the Collateral in an amount in excess of One Hundred
Thousand and No/100 Dollars ($100,000.00) in the aggregate for all such events
during any year as determined by Lender in its sole discretion consistently
applied; or

     

    (f)           Dispositions of
Collateral.  Except as permitted by this Agreement, the sale,
lease, or furnishing under a contract of service of, any of the Collateral;
or

     

    (g)           Levy, Seizure or
Attachment.  The making or any attempt (which attempt, as
determined by Lender in its reasonable discretion, could have a Material Adverse
Effect) by any Person to make any levy, seizure or attachment upon any of the
Collateral; or

     

    (h)           Bankruptcy or Similar
Proceedings.  The commencement of any proceedings in bankruptcy
by or against any Borrower or for the liquidation or reorganization of any
Borrower, or alleging that such Borrower is insolvent or unable to pay its debts
as they mature, or for the readjustment or arrangement of any Borrower’s debts,
whether under the United States Bankruptcy Code or under any other law, whether
state or federal, now or hereafter existing, for the relief of debtors, or the
commencement of any analogous statutory or non-statutory proceedings involving
any Borrower and if any such proceeding, if not commenced by any Borrower,
consented to or acquiesced by any Borrower or results in the entry of any order
for relief, is not dismissed within thirty (30) days of commencement;
or

    
      
         

      

      
        43

        
          

        

      

      
         

      

    

     

    (i)           Appointment of
Receiver.  The appointment of a receiver or trustee for any
Borrower, for any of the Collateral or for any substantial part of any
Borrower’s assets or the institution of any proceedings for the dissolution, or
the full or partial liquidation, or the merger or consolidation, of any Borrower
which is a corporation, limited liability company or a partnership and such
receiver, trustee or proceeding shall not be discharged or dismissed within
thirty (30) days of appointment or commencement as applicable; or

     

    (j)           Judgment.  The entry
of any judgments or orders aggregating in excess of One Hundred Thousand and
No/100 Dollars ($100,000.00) against any Borrower which remains unsatisfied or
undischarged and in effect for thirty (30) days after such entry without a stay
of enforcement or execution; or

     

    (k)           Dissolution of Borrower. The
dissolution of any Borrower; or

     

    (l)           Executive
Malfeasance.  (i) The senior executive officer responsible for
day to day business activities of The Clark Group, Inc., either (A) is or has
been indicted for a felony offense under federal or state law involving fraud,
defalcation, corporate malfeasance or moral turpitude or (B) has participated in
the causation of an event of default in a past banking relationship with a
lender or other financial institutions, and (ii) the Borrowers (A) fail to
provide a senior executive officer within ninety (90) days from the date of
receipt of notice from the Lender and (B) thereafter fail to repay all of the
Obligations (other than the termination fee as set forth in Section 4.05(c)
hereof) and terminate this Agreement within ninety (90) days from the date of
receipt of notice from Lender provided however, this Section 13.01(l) shall not
apply to all of the existing officers of The Clark Group, Inc and Clark Holdings
Inc. as of the date of this Agreement; or

     

    (m)           Criminal
Proceedings.  The institution in any court of a criminal
proceeding against any Borrower which would have a Material Adverse Effect;
or

     

    (n)           Change of
Control.  A Change of Control shall occur; or

     

    (o)           Material Adverse
Change.  A Material Adverse Effect shall occur; or

     

    (p)           Other
Indebtedness.  A material Default shall be made by any Borrower
(in its capacity as borrower, guarantor or otherwise) in any material
Indebtedness (other than the Loans), or if such Indebtedness shall be amended,
restated, modified, substituted, extended and renewed without the prior written
consent of Lender in each instance.

    
      
         

      

      
        44

        
          

        

      

      
         

      

    

    
      	
            	
              13.02

            	
              Remedies.

            

    

     

    (a)           Upon
the occurrence and during the continuance of an Event of Default described in
Section 13.01(h) hereof, all of the Obligations shall immediately and
automatically become due and payable, without notice of any
kind.  Upon the occurrence of any other Event of Default, all
Obligations may, at the option of Lender, and without demand, notice or legal
process of any kind, be declared, and immediately shall become, due and
payable.

     

    (b)           Upon
the occurrence and during the continuance of an Event of Default, Lender may
exercise from time to time any rights and remedies available to it under the
Uniform Commercial Code and any other applicable law in addition to, and not in
lieu of, any rights and remedies expressly granted in the Loan Documents and all
of Lender’s rights and remedies shall be cumulative and non-exclusive to the
extent permitted by law.  In particular, but not by way of limitation
of the foregoing, Lender may, without notice, demand or legal process of any
kind, (i) suspend, terminate or limit any further loans or other extensions of
credit under this Agreement and the other Loan Documents, and/or (ii) take
possession of any or all of the Collateral (in addition to Collateral of which
it already has possession), wherever it may be found, and for that purpose may
pursue the same wherever it may be found, and may enter onto any premises of a
Borrower where any of the Collateral may be, and search for, take possession of,
remove, keep and store any of the Collateral until the same shall be sold or
otherwise disposed of, and Lender shall have the right to store the same at any
premises of a Borrower without cost to Lender.  At Lender’s request,
Borrowers shall, at Borrowers’ expense, assemble the Collateral and make it
available to Lender at one or more places to be designated by Lender and
reasonably convenient to Lender and Borrowers.  Borrowers recognize
that if Borrowers fail to perform, observe or discharge any of their Obligations
under the Loan Documents, no remedy at law will provide adequate relief to
Lender, and agree that Lender shall be entitled to temporary and permanent
injunctive relief in any such case without the necessity of proving actual
damages.  Any notification of intended disposition of any of the
Collateral required by law will be deemed to be a reasonable authenticated
notification of disposition if given at least ten (10) days prior to such
disposition and such notice shall (i) describe Lender and Borrowers, (ii)
describe the Collateral that is the subject of the intended disposition, (iii)
state the method of the intended disposition, (iv) state that Borrowers are
entitled to an accounting of the Obligations and state the charge, if any, for
an accounting and (v) state the time and place of any public disposition or the
time after which any private sale is to be made.  Lender may disclaim
any warranties that might arise in connection with the sale, lease or other
disposition of the Collateral and has no obligation to provide any warranties at
such time.  Any Proceeds of any disposition by Lender of any of the
Collateral may be applied by Lender to the payment of expenses in connection
with the Collateral, including, without limitation, legal expenses and
reasonable attorneys’ fees, and any balance of such Proceeds may be applied by
Lender toward the payment of such of the Obligations, and in such order of
application, as Lender may from time to time elect.

     

    (c)           Without
limiting the rights of Lender under applicable law, Lender has a right of
set-off, a lien against and a security interest in all property of Borrowers now
or at any time in Lender’s or any affiliate of Lender’s possession in any
capacity whatsoever, including but not limited to any balance of any deposit,
trust or agency account, or any other bank account, as security for all
Obligations.  At any time and from time to time following the
occurrence of a Default or an Event of Default, or event which, with the passage
of time, the giving of notice or both would become an Event of Default, Lender
may without notice or demand, set-off and apply or cause to be set-off or
otherwise applied any and all deposits at any time held and other indebtedness
at any time owing by Lender or any affiliate of Lender to or for the credit of
any one or more of the Borrowers against the Obligations.

    
      
         

      

      
        45

        
          

        

      

      
         

      

    

    (d)           Lender
shall have the right, but not the obligation, to continue to extend the
Revolving Loans during any continuing Event of Default without waiving such
Event of Default or the default remedies of Lender and on such terms and
conditions as Lender elects in its sole and absolute
discretion.  Without limitation to any of its default rights and
remedies, Lender may elect to continue to make the Revolving Loans with such a
reduced Maximum Revolving Loan Limit and with such reductions in the percentages
set forth in the definition of Borrowing Base as Lender determines to be in the
interest of Lender.

     

    (e)           In
addition to all other rights, options and remedies granted or available to
Lender under this Agreement or the other Loan Documents, or otherwise available
at law or in equity, upon or at any time after the occurrence and during the
continuance of an Event of Default, or any event which with the giving of notice
or the passage of time, or both, would become an Event of Default, Lender may,
in its sole and absolute discretion, (i) withhold or cease making Loans or
issuing Letters of Credit, (ii) commence accruing interest on the Loans at a
rate up to the Default Rate, or (iii) decrease the Maximum Revolving Loan Limit
and/or the rates of advance under the Borrowing Base.

     

    
      	
              14.

            	
              CONDITIONS
      PRECEDENT.

            

    

     

    
      	
            	
              14.01

            	
              Conditions
      Precedent to Initial Loans.

            

    

     

    The
Lender’s obligation to fund the initial Loans, and to issue or cause to be
issued the initial Letter of Credit, is subject to the satisfaction or waiver on
or before the date hereof of the following conditions precedent:

     

    (a)           Lender
shall have received each of the agreements, opinions, reports, approvals,
consents, certificates and other documents set forth on the closing delivery
list attached hereto as Schedule 14.01-A in
each case properly executed by the appropriate party and in form and substance
satisfactory to the Lender;

     

    (b)           Since
December 31, 2009, no event shall have occurred which has had or could
reasonably be expected to have a Material Adverse Effect, as determined by
Lender in its sole discretion;

     

    (c)           Lender
shall have received payment in full of all fees and expenses payable to it by
Borrowers or any other Person in connection herewith, on or before disbursement
of the initial Loans hereunder;

     

    (d)           As
shown on Schedule
14.01-B, Lender shall have determined that immediately after giving
effect to (i) the making of the initial Loans, including without limitation the
Revolving Loans, if any, requested to be made on the date hereof, (ii) the
issuance of the initial Letter of Credit, if any, requested to be made on such
date, (iii) the payment of all fees due upon such date and (iv) the payment or
reimbursement by Borrowers of Lender for all closing costs and expenses incurred
in connection with the transactions contemplated hereby, Borrowers have Excess
Availability as of the date of this Agreement of not less than Six Hundred
Thousand and No/100 Dollars ($600,000.00); and

    
      
         

      

      
        46

        
          

        

      

      
         

      

    

    (e)           The
Borrowers shall have executed and delivered to Lender all such other documents,
instruments and agreements which Lender determines are reasonably necessary to
consummate the transactions contemplated hereby.

     

    
      	
            	
              14.02

            	
              Conditions
      Precedent to All Loans.

            

    

     

    The
Lender’s obligation to make each Loan or to cause the issuance of a Letter of
Credit shall be subject to the further conditions precedent that:

     

    (a)           the
representations and warranties contained in Section 9 are correct on and as of
the date of such Loan or issuance of a Letter of Credit as though made on and as
of such date, except to the extent that such representations and warranties
relate solely to an earlier date; and

     

    (b)           no
event has occurred and is continuing, or would result from such Loan or issuance
of a Letter of Credit which constitutes an Event of Default.

     

    
      	
              15.

            	
              GENERAL
      PROVISIONS.

            

    

     

    
      	
            	
              15.01

            	
              Indemnification.

            

    

     

    Borrowers
agree to defend (with counsel satisfactory to Lender), protect, indemnify and
hold harmless Lender, each affiliate or subsidiary of Lender, and each of their
respective shareholders, members, officers, directors, managers, employees,
attorneys and agents (each an “Indemnified Party”) from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, claims, costs, expenses and disbursements of any kind
or nature (including, without limitation, the disbursements and the reasonable
fees of counsel for each Indemnified Party in connection with any investigative,
administrative or judicial proceeding, whether or not the Indemnified Party
shall be designated a party thereto), which may be imposed on, incurred by, or
asserted against, any Indemnified Party (whether direct, indirect or
consequential and whether based on any federal, state or local laws or
regulations, including, without limitation, securities laws and regulations,
Environmental Laws and commercial laws and regulations, under common law or in
equity, or based on contract or otherwise) in any manner relating to or arising
out of this Agreement or any other Loan Document, or any act, event or
transaction related or attendant thereto, the making or issuance and the
management of the Loans or any Letters of Credit or the use or intended use of
the proceeds of the Loans or any Letters of Credit; provided, however, that
Borrowers shall not have any obligation hereunder to any Indemnified Party with
respect to matters caused by or resulting from the willful misconduct or gross
negligence of such Indemnified Party. To the extent that the undertaking to
indemnify set forth in the preceding sentence may be unenforceable because it is
violative of any law or public policy, Borrowers shall satisfy such undertaking
to the maximum extent permitted by applicable law.  Any liability,
obligation, loss, damage, penalty, cost or expense covered by this indemnity
shall be paid to each Indemnified Party on demand, and, failing prompt payment,
shall, together with interest thereon at the highest rate then applicable to
Loans hereunder from the date incurred by each Indemnified Party until paid by
Borrowers, be added to the Obligations of Borrowers and be secured by the
Collateral.  The provisions of this Section 15.01 shall survive
the satisfaction and payment of the other Obligations and the termination of
this Agreement.

    
      
         

      

      
        47

        
          

        

      

      
         

      

    

    
      	
            	
              15.02

            	
              Notice.

            

    

     

    All
written notices and other written communications with respect to this Agreement
shall be sent by ordinary, certified or overnight mail, by telecopy or delivered
in person, to the address, telefacsimile number, e-mail address or telephone
number specified for Lender or Borrowers, as applicable, on Schedule 15.02.  Borrowers
agree that notices and other communications to it hereunder may be delivered or
furnished by electronic communication (including e-mail and Internet or intranet
websites) pursuant to procedures approved by Lender and such electronic
communication shall have the same force and effect that the same submissions
would have had if they had been submitted in any other applicable form
authorized, required or contemplated by the Loan Documents.  All
notices shall be deemed received upon actual receipt thereof or refusal of
delivery.

     

    
      	
            	
              15.03

            	
              Governing
      Law; Construction; Forum
Selection.

            

    

     

    (a)           THE LOAN DOCUMENTS SHALL BE GOVERNED
AND CONTROLLED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS AS TO
INTERPRETATION, ENFORCEMENT, VALIDITY, CONSTRUCTION, EFFECT, AND IN ALL OTHER
RESPECTS, INCLUDING, WITHOUT LIMITATION, THE LEGALITY OF THE INTEREST RATE AND
OTHER CHARGES, EXCEPT FOR PERFECTION OF THE SECURITY INTERESTS IN COLLATERAL
LOCATED OUTSIDE OF THE STATE OF ILLINOIS, WHICH SHALL BE GOVERNED AND CONTROLLED
BY THE LAWS OF THE RELEVANT JURISDICTION IN WHICH SUCH COLLATERAL IS LOCATED, OR
AS OTHERWISE SET FORTH IN ANY MORTGAGE.  If any provision of
this Agreement shall be held to be prohibited by or invalid under applicable
law, such provision shall be ineffective only to the extent of such prohibition
or invalidity, without invalidating the remainder of such provision or remaining
provisions of this Agreement.

     

    (b)           To
induce Lender to accept this Agreement, Borrowers irrevocably agree that,
subject to Lender’s sole and absolute election, ALL ACTIONS OR PROCEEDINGS IN
ANY WAY, MANNER OR RESPECT, ARISING OUT OF OR FROM OR RELATED TO THE LOAN
DOCUMENTS OR THE COLLATERAL SHALL BE LITIGATED IN COURTS HAVING SITUS WITHIN THE
CITY OF CHICAGO, STATE OF ILLINOIS.  BORROWER HEREBY CONSENT AND
SUBMIT TO THE JURISDICTION OF ANY LOCAL, STATE OR FEDERAL COURTS LOCATED WITHIN
SAID CITY AND STATE.  BORROWER HEREBY WAIVE PERSONAL SERVICE OF ANY
AND ALL PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE UPON
BORROWER BY CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED, ADDRESSED TO
BORROWERS AT THE ADDRESS SET FORTH FOR NOTICE IN THIS AGREEMENT AND SERVICE SO
MADE SHALL BE COMPLETE TEN (10) DAYS AFTER THE SAME HAS BEEN
POSTED.  BORROWERS HEREBY WAIVE ANY RIGHT THEY MAY HAVE TO TRANSFER OR
CHANGE THE VENUE OF ANY LITIGATION BROUGHT AGAINST ANY OF THE BORROWERS BY
LENDER IN ACCORDANCE WITH THIS SECTION.

    
      
         

      

      
        48

        
          

        

      

      
         

      

    

    
      	
            	
              15.04

            	
              Modification
      and Benefit of Agreement.

            

    

     

    The Loan
Documents may not be modified, altered or amended except by an agreement in
writing signed by Borrowers or such other Person who is a party to such Loan
Document and Lender.  Borrowers may not sell, assign or transfer the
Loan Documents or any portion thereof, including, without limitation, any of
Borrowers’ rights, titles, interest, remedies, powers or duties hereunder and
thereunder.  Borrowers hereby consent to Lender’s sale, assignment,
transfer or other disposition, at any time and from time to time hereafter, of
the Loan Documents or of any portion thereof, or participations therein,
including, without limitation, Lender’s rights, titles, interest, remedies,
powers and/or duties and agrees that each shall execute and deliver such
documents as Lender may request in connection with any such sale, assignment,
transfer or other disposition.

     

    
      	
            	
              15.05

            	
              Headings
      of Subdivisions.

            

    

     

    The
headings of subdivisions in this Agreement are for convenience of reference
only, and shall not govern the interpretation of any of the provisions of this
Agreement.

     

    
      	
            	
              15.06

            	
              Power
      of Attorney.

            

    

     

    Each
Borrower acknowledges and agrees that its appointment of Lender as its attorney
and agent-in-fact for the purposes specified in this Agreement is an appointment
coupled with an interest and shall be irrevocable until all of the Obligations
are satisfied and paid in full and this Agreement is terminated.

     

    
      	
            	
              15.07

            	
              Confidentiality.

            

    

     

    Lender
hereby agrees to use commercially reasonable efforts to assure that any and all
information relating to Borrowers which is (a) furnished by Borrowers to Lender
(or to any affiliate of Lender); and (b) non-public, confidential or proprietary
in nature, shall be kept confidential by Lender or such affiliate in accordance
with applicable law; provided, however, that such information and other credit
information relating to Borrowers may be distributed by Lender or such affiliate
to Lender’s or such affiliate’s directors, managers, officers, employees,
attorneys, affiliates, assignees, participants, auditors, agents and regulators,
and upon the order of a court or other governmental agency having jurisdiction
over Lender or such affiliate, to any other party.  In addition such
information and other credit information may be distributed by Lender to
potential participants or assignees of any portion of the Obligations, provided,
that such potential participant or assignee agrees to follow the confidentiality
requirements set forth herein.  Borrowers and Lender further agree
that this provision shall survive the termination of this
Agreement.  Notwithstanding the foregoing, Borrowers hereby consent to
Lender publishing a tombstone or similar advertising material relating to the
financing transaction contemplated by this Agreement.

     

    
      	
            	
              15.08

            	
              Counterparts.

            

    

     

    The Loan
Documents and any amendments, waivers, consents or supplements may be executed
in any number of counterparts and by different parties hereto in separate
counterparts, each of which, when so executed and delivered, shall be deemed an
original, but all of which counterparts together shall constitute but one
agreement.

    
      
         

      

      
        49

        
          

        

      

      
         

      

    

    
      	
            	
              15.09

            	
              WAIVER
      OF JURY TRIAL; OTHER
WAIVERS.

            

    

     

    (a)           BORROWERS
AND LENDER EACH HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR
PROCEEDING WHICH PERTAINS DIRECTLY OR INDIRECTLY TO THE LOAN DOCUMENTS, THE
OBLIGATIONS, THE COLLATERAL, ANY ALLEGED TORTIOUS CONDUCT BY BORROWERS OR LENDER
OR WHICH, IN ANY WAY, DIRECTLY OR INDIRECTLY, ARISES OUT OF OR RELATES TO THE
RELATIONSHIP BETWEEN BORROWERS AND LENDER.  IN NO EVENT SHALL LENDER
BE LIABLE FOR LOST PROFITS OR OTHER SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES.

     

    (b)           Borrowers
hereby waive demand, presentment, protest and notice of nonpayment, and further
waives the benefit of all valuation, appraisal and exemption laws.

     

    (c)           Borrowers
hereby waive the benefit of any law that would otherwise restrict or limit
Lender or any affiliate of Lender in the exercise of its right, which is hereby
acknowledged and agreed to, to set-off against the Obligations, without notice
at any time hereafter, any indebtedness, matured or unmatured, owing by Lender
or such affiliate of Lender to Borrowers, including, without limitation any
Deposit Account at Lender or such affiliate.

     

    (d)           BORROWERS
HEREBY WAIVE ALL RIGHTS TO NOTICE AND HEARING OF ANY KIND PRIOR TO THE EXERCISE
BY LENDER OF ITS RIGHTS TO REPOSSESS THE COLLATERAL OF BORROWER WITHOUT JUDICIAL
PROCESS OR TO REPLEVY, ATTACH OR LEVY UPON SUCH COLLATERAL, PROVIDED THAT IN THE
EVENT THAT LENDER SEEKS TO ENFORCE ITS RIGHTS HEREUNDER BY JUDICIAL PROCESS OR
SELF HELP, LENDER SHALL PROVIDE BORROWER WITH SUCH NOTICES AS ARE REQUIRED BY
LAW.

     

    (e)           Lender’s
failure, at any time or times hereafter, to require strict performance by any or
all of the Borrowers of any provision of the Loan Documents shall not waive,
affect or diminish any right of Lender thereafter to demand strict compliance
and performance therewith.  Any suspension or waiver by Lender of an
Event of Default under this Agreement or any default under any of the other Loan
Documents shall not suspend, waive or affect any other Event of Default under
this Agreement or any other default under any of the other Loan Documents,
whether the same is prior or subsequent thereto and whether of the same or of a
different kind or character.  No delay on the part of Lender in the
exercise of any right or remedy under any Loan Document shall preclude other or
further exercise thereof or the exercise of any right or remedy.  None
of the undertakings, agreements, warranties, covenants and representations of
Borrowers contained in the Loan Documents and no Event of Default under this
Agreement or default under any of the other Loan Documents shall be deemed to
have been suspended or waived by Lender unless such suspension or waiver is in
writing, signed by a duly authorized officer of Lender and directed to Borrowers
specifying such suspension or waiver.

    
      
         

      

      
        50

        
          

        

      

      
         

      

    

    
      	
              16.

            	
              JOINT AND SEVERAL
      LIABILITY.

            

    

     

    (a)           Notwithstanding
anything to the contrary contained herein, all Obligations of each Borrower
hereunder shall be joint and several obligations of Borrowers.

     

    (b)           Notwithstanding
any provisions of this Agreement to the contrary, it is intended that the joint
and several nature of the Obligations of Borrowers and the liens and security
interests granted by Borrowers to secure the Obligations, not constitute a
“Fraudulent Conveyance” (as defined below).  Consequently, Lender and
Borrowers agree that if the Obligations of a Borrower, or any liens or security
interests granted by such Borrower securing the Obligations would, but for the
application of this sentence, constitute a Fraudulent Conveyance, the
Obligations of such Borrower and the liens and security interests securing such
Obligations shall be valid and enforceable only to the maximum extent that would
not cause such Obligations or such lien or security interest to constitute a
Fraudulent Conveyance, and the Obligations of such Borrower and this Agreement
shall automatically be deemed to have been amended accordingly.  For
purposes hereof, “Fraudulent Conveyance” means a fraudulent conveyance under
Section 548 of Chapter 11 of Title II of the United States Code (11 U.S.C. §
101, et seq.), as amended (the “Bankruptcy Code”) or a fraudulent conveyance or
fraudulent transfer under the applicable provisions of any fraudulent conveyance
or fraudulent transfer law or similar law of any state, nation or other
governmental unit, as in effect from time to time.

     

    (c)           Each
Borrower assumes responsibility for keeping itself informed of the financial
condition of the other Borrower, and any and all endorsers and/or guarantors of
any instrument or document evidencing all or any part of such other Borrower’s
Obligations and of all other circumstances bearing upon the risk of nonpayment
by such other Borrowers of their Obligations and each Borrower agrees that
Lender shall not have any duty to advise such Borrower of information known to
Lender regarding such condition or any such circumstances or to undertake any
investigation not a part of its regular business routine.  If Lender,
in its sole discretion, undertakes at any time or from time to time to provide
any such information to a Borrower, Lender shall not be under any obligation to
update any such information or to provide any such information to such Borrower
on any subsequent occasion.

     

    (d)           Lender
is hereby authorized, without notice or demand and without affecting the
liability of a Borrower hereunder, to, at any time and from time to time, (i)
renew, extend, accelerate or otherwise change the time for payment of, or other
terms relating to another Borrower’s Obligations or otherwise modify, amend or
change the terms of any promissory note or other agreement, document or
instrument now or hereafter executed by a Borrower and delivered to Lender; (ii)
accept partial payments on a Borrower’s Obligations; (iii) take and hold
security or collateral for the payment of another Borrower’s Obligations
hereunder or for the payment of any guaranties of another Borrower’s Obligations
or other liabilities of another Borrower and exchange, enforce, waive and
release any such security or collateral; (iv) apply such security or collateral
and direct the order or manner of sale thereof as Lender, in its sole
discretion, may determine; and (v) settle, release, compromise, collect or
otherwise liquidate a Borrower’s Obligations and any security or collateral
therefor in any manner, without affecting or impairing the obligations of the
other Borrowers.  Lender shall have the exclusive right to determine
the time and manner of application of any payments or credits, whether received
from a Borrower or any other source, and such determination shall be binding on
such Borrower.  All such payments and credits may be applied, reversed
and reapplied, in whole or in part, to any of a Borrower’s Obligations as Lender
shall determine in its sole discretion without affecting the validity or
enforceability of the Obligations of the other Borrowers.

    
      
         

      

      
        51

        
          

        

      

      
         

      

    

    (e)           Each
Borrower hereby agrees that, except as hereinafter provided, its obligations
hereunder shall be unconditional, irrespective of (i) the absence of any attempt
to collect Borrower’s Obligations from any Borrower or any guarantor or other
action to enforce the same; (ii) the waiver or consent by Lender with respect to
any provision of any instrument evidencing Borrowers’ Obligations, or any part
thereof, or any other agreement heretofore, now or hereafter executed by a
Borrower and delivered to Lender; (iii) failure by Lender to take any steps to
perfect and maintain its security interest in, or to preserve its rights to, any
security or collateral for Borrowers’ Obligations; (iv) the institution of any
proceeding under the Bankruptcy Code, or any similar proceeding, by or against a
Borrower or Lender’s election in any such proceeding of the application of
Section 1111(b)(2) of the Bankruptcy Code; (v) any borrowing or grant of a
security interest by any Borrower as debtor-in-possession, under Section 364 of
the Bankruptcy Code; (vi) the disallowance, under Section 502 of the Bankruptcy
Code, of all or any portion of Lender’s claim(s) for repayment of any of
Borrowers’ Obligations; or (vii) any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a
guarantor.

     

    No
payment made by or for the account of a Borrower including, without limitations,
(i) a payment made by such Borrower on behalf of another Borrower’s Obligations
or (ii) a payment made by any other person under any guaranty, shall entitle
such Borrower, by subrogation or otherwise, to any payment from such other
Borrower or from or out of such other Borrower’s property and such Borrower
shall not exercise any right or remedy against such other Borrower or any
property of such other Borrower by reason of any performance of such Borrower of
its joint and several obligations hereunder.

     

    [signature pages to
follow]

    
      
         

      

      
        52

        
          

        

      

      
         

      

    

    

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

       

      BORROWERS:

       

      CLARK
HOLDINGS INC.,

      a
Delaware Corporation

      
        

        
          
            	
                    By: 

                  	
                    /s/ Stephen M.
  Spritzer

                  

          

        

        
          
            	
                    Name: 

                  	
                    Stephen M.
  Spritzer

                  

          

        

        
          
            	
                    Title: 

                  	
                    VP and
Treasurer

                  

          

        

      

      

      THE CLARK
GROUP, INC.,

      a
Delaware Corporation

      
        
          

          
            
              	
                      By: 

                    	
                      /s/ Stephen M.
  Spritzer

                    

            

          

          
            
              	
                      Name: 

                    	
                      Stephen M.
  Spritzer

                    

            

          

          
            
              	
                      Title: 

                    	
                      VP and
Treasurer

                    

            

          

        

      

      

      CLARK
DISTRIBUTION SYSTEMS, INC.,

      a
Delaware Corporation

      
        
          

          
            
              	
                      By: 

                    	
                      /s/ Stephen M.
  Spritzer

                    

            

          

          
            
              	
                      Name: 

                    	
                      Stephen M.
  Spritzer

                    

            

          

          
            
              	
                      Title: 

                    	
                      VP and
Treasurer

                    

            

          

        

      

      

      HIGHWAY
DISTRIBUTION SYSTEMS, INC.,

      a
Delaware Corporation

      
        
          

          
            
              	
                      By: 

                    	
                      /s/ Stephen M.
  Spritzer

                    

            

          

          
            
              	
                      Name: 

                    	
                      Stephen M.
  Spritzer

                    

            

          

          
            
              	
                      Title: 

                    	
                      VP and
Treasurer

                    

            

          

        

      

      

      [signature
page to follow]

      
        
           

        

        
          53

          
            

          

        

        
           

        

      

      

      CLARK
WORLDWIDE TRANSPORTATION, INC.,

      a
Pennsylvania Corporation

      
        
          

          
            
              	
                      By: 

                    	
                      /s/ Stephen M.
  Spritzer

                    

            

          

          
            
              	
                      Name: 

                    	
                      Stephen M.
  Spritzer

                    

            

          

          
            
              	
                      Title: 

                    	
                      VP and
Treasurer

                    

            

          

        

      

      

      EVERGREEN
EXPRESS LINES, INC.,

      a
Pennsylvania Corporation

      
        
          
            

            
              
                	
                        By: 

                      	
                        /s/ Stephen M.
  Spritzer

                      

              

            

            
              
                	
                        Name: 

                      	
                        Stephen M.
  Spritzer

                      

              

            

            
              
                	
                        Title: 

                      	
                        VP and
Treasurer

                      

              

            

          

        

         

      

      LENDER:

       

      COLE
TAYLOR BANK,

      an
Illinois banking corporation

      
        
          
            

            
              
                	
                        By: 

                      	
                        /s/ Jeffrey
  Seiden

                      

              

            

            
              
                	
                        Name: 

                      	
                        Jeffrey
Seiden

                      

              

            

            
              
                	
                        Title: 

                      	
                        SVP

                      

              

               

              
                
                  
                  

                

                
                  54

                  
                    

                  

                

                
                  
                  

                

              

            

          

        

      

      EXHIBIT
A

       

      ADVANCE
REQUEST FORM

       

      Cole
Taylor Bank

      9550 W.
Higgins Road

      Rosemont,
Illinois 60018

      Attention:  ___________

       

      Ladies
and Gentlemen:

       

      We refer
to the financing arrangements between ____________, a _______ corporation (the
“Borrower”) and Cole
Taylor Bank (“Lender”)
pursuant to various documents, instruments and agreements (the “Loan Documents”).

       

      Borrower
hereby gives notice to Lender that on ___________, ____________ Borrower desires
to borrow an aggregate principal amount of $_______________ as revolving
loans.  Such revolving loans consist of the following:

       

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            	
                                                    Checks
      presented for payment

                                                  	 	$	 
      	 
	
                                                    Wires

                                                  	 	 	 	 
	
                                                    Salary
      Payroll

                                                  	 	 	 	 
	
                                                    Hourly
      Payroll

                                                  	 	 	 	 
	
                                                    Other

                                                  	 	 	 	 
	
                                                    Other

                                                  	 	 	 	 
	
                                                    Totals

                                                  	 	$	 
      	 

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

       

      Such
revolving loans shall be placed in our operating account number
_________________ at Lender.  Additionally, Borrower hereby requests
that the following amounts be sent from the operating account by wire transfer
to the accounts set forth below, in the amounts set forth below:

       

      
        
          
            
              
                
                  	
                          Payment Instructions

                        	 	
                          Amount

                        
	
                          1.

                        	 
      	 	
                          $_________________

                        
	 
      	 
      	 	 
      
	 
      	 
      	 	 
      
	 
      	 
      	 	 
      
	
                          2.

                        	 
      	 	
                          $_________________

                        
	 
      	 
      	 	 
      
	 
      	 
      	 	 
      
	 
      	 
      	 	 
      

                

              

            

          

        

      

       

      Lender
has offered and recommended to Borrower, security procedures for Borrower to
follow in connection with originating wire transfers and requesting loans which
Borrower has waived pursuant to a previously executed waiver.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      [include if applicable: This
notice constitutes a written confirmation of a telecopy/ electronic mail request
made by ________________ to _______________ on _______________,
__________]

       

      
        
          
            
              
                
                  
                    
                      	
                              Sincerely,

                            
	 
      	 
      
	 	 
	 	 
	
                              By

                            	 
      

                    

                  

                

              

            

          

        

      

      
        
          
            	
                    Print
      Name 

                  	 
      

          

        

      

      
        
          
            	
                    Title 

                  	 
      

          

        

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
B

       

      FORM OF
COMPLIANCE CERTIFICATE

       

      Compliance
Certificate

       

      
        
          
            
              	
                      To:

                    	 
      	
                      Cole
      Taylor Bank

                    
	
                      Date:

                    	 
      	
                      _____________________,
      20___

                    
	
                      Subject:

                    	 
      	
                      [Borrower]

                    

            

          

        

      

       

      Financial
Statements

       

      In
accordance with our Credit and Security Agreement dated as of ________, 20____,
as amended, modified, extended, renewed, supplemented or restated (the “Credit Agreement”), attached
are the financial statements of _____________ (“Borrower[s]”) of and for the
[month] [fiscal quarter] ended _______________ ____, 20____ (the “Reporting Date”) and the
year-to-date period then ended (the “Current Financials”) required
to be delivered pursuant to Section 7.03 of the Credit
Agreement.  All terms used in this certificate have the meanings given
in the Credit Agreement.

       

      The
Borrower[s] certifies that the Current Financials have been prepared in
accordance with GAAP and fairly present in all material respects the
consolidated financial condition of the Borrower as of the date thereof and in a
manner consistent with prior periods.

       

      Defaults. (Check
one):

       

      The
Borrower[s] further certifies that:

       

      
        	
                 
      

              	
                ·

              	
                Except
      as previously reported in writing to the Lender, there exists no event or
      circumstance which is or which with the passage of time, the giving of
      notice, or both would constitute an Event of Default, as that term is
      defined in the Agreement, or, if such an event of circumstance exists, a
      writing attached hereto specifies the nature thereof, the period of
      existence thereof and the action that Borrower[s] has taken or proposes to
      take with respect thereto..

              

      

       

      
        	
                 
      

              	
                ·

              	
                There
      exists no event or circumstance which is or which with the passage of
      time, the giving of notice, or both would constitute an Event of Default,
      as that term is defined in the Agreement, or, if such an event of
      circumstance exists, a writing attached hereto specifies the nature
      thereof, the period of existence thereof and the action that Borrower[s]
      has taken or proposes to take with respect
  thereto.

              

      

       

      Representations and
Warranties:

       

      The
Borrower[s] further certifies that each of the representations and warranties
made by the Borrower[s], any Subsidiary and/or any Owner of the Borrower[s] in
the Credit Agreement and/or in any other Loan Document are true and correct in
all material respects on and as of the date of this Compliance Certificate as if
made on and as of the date of this Compliance Certificate (and for purposes of
this Compliance Certificate, the representations and warranties made by the
Borrower[s] in Section
9.01 of the Credit Agreement shall be deemed to refer to the financial
statements of the Borrower[s] delivered to the Lender with this Compliance
Certificate).

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      Financial Covenants. The
Borrower further certifies as follows:

       

      1.           Minimum Fixed Charge
Coverage. Pursuant to Section 12.02 of the Credit
Agreement, as of the Reporting Date, the Borrowers’ Fixed Charge Coverage was
_____ to 1.00 which  satisfies  does not satisfy the requirement that such
ratio be no less than [____ to
1.00 on the Reporting Date.] [_ the applicable ratio set forth in the table
below on the Reporting Date:

       

      
        
          
            
              	
                      Period

                    	 
      	
                      Minimum Fixed Charge

                      Coverage Ratio

                    
	
                      Through

                    	 
      	
                      _____
      to 1.00

                    
	
                      Through

                    	 
      	
                      _____
      to 1.00

                    
	
                      Through

                    	 
      	
                      _____
      to 1.00

                    
	
                      Through

                    	 
      	
                      _____
      to 1.00

                    
	 
      	
                        

                    	 
      

            

          

           

        

      

      Attached
hereto are all relevant facts in reasonable detail to evidence, and the
computations of the financial covenants referred to above. These computations
were made in accordance with GAAP, subject to normal year-end adjustments and
absence of footnotes.

       

      
        
          
            
              
                
                  
                    	 
      	
                             
      

                          	 , 
	
                            a

                          	 
      	 

                  

                

              

            

          

        

      

      

      
        
          
            	
                    By 

                  	 
      

          

        

      

      
        
          
            	
                    Name 

                  	 
      

          

        

      

      
        
          
            	
                    Title 

                  	 
      

          

        

      

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
C

       

      FORM OF
GRANT OF SECURITY INTEREST IN TRADEMARKS AND PATENTS

       

      GRANT OF SECURITY INTEREST
IN TRADEMARKS AND PATENTS

       

      WHEREAS,
______________________, a ____________ [corporation/ limited liability company]
("Grantor") owns the
trademarks, trademark registrations, trademark applications, and any and all
goodwill associated therewith, and the patents and patent applications, in each
case set forth on Schedule A and
Schedule B
attached hereto; and

       

      WHEREAS,
COLE TAYLOR BANK, an Illinois banking corporation (the “Grantee”), desires to acquire
a security interest in, and lien on, all of Grantor’s right, title and interest
in and to Grantor’s trademarks, trademark registrations, trademark applications
and any and all goodwill associated therewith and patents and patent
applications; and

       

      WHEREAS,
the Grantor is willing to grant to the Grantee a security interest in and lien
upon the trademarks, trademark registrations, trademark applications and any and
all goodwill associated therewith and patents and patent applications described
above.

       

      NOW,
THEREFORE, for good and valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, and subject to the terms and conditions of the
Credit and Security Agreement, dated as of ________________, 20____, between the
Grantor and the Grantee (as amended from time to time, the “Credit Agreement”), the
Grantor hereby grants to the Grantee a security interest in, and a lien upon,
all of Grantor’s right, title and interest in and to (i) the trademarks,
trademark registrations, trademark applications, and any and all goodwill
associated therewith (the “Marks”) set forth on Schedule A
attached hereto, (ii) the patents and patent applications (the “Patents”) set forth on Schedule B attached
hereto, in each case together with (iii) all Proceeds (as such term is
defined in the Credit Agreement) of the Marks, (iv) all of the goodwill of
the businesses with which the Marks are associated, and (v) all causes of
action, past, present and future, for infringement, misappropriation, or
dilution of any of the Marks and/or Patents or unfair competition regarding the
same.

       

      This
GRANT OF SECURITY INTEREST is made to secure the satisfactory performance and
payment of all the Obligations (as such term is defined in the Credit Agreement)
of the Grantor and shall be effective as of the date of the Credit
Agreement.

       

      This
Grant of Security Interest has been granted in conjunction with the security
interest granted to Grantee under the Credit Agreement.  The rights
and remedies of the Grantee with respect to the security interest granted herein
are without prejudice to, and are in addition to those set forth in the Credit
Agreement, all terms and provisions of which are incorporated herein by
reference.  In the event that any provisions of this Grant of Security
Interest are deemed to conflict with the Credit Agreement, the provisions of the
Credit Agreement shall govern.

       

      [signature
page to follow]

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, the undersigned have executed this Grant of Security Interest
as of the ____ day of _____________, 20___.

       

      GRANTOR:

      
         

        
          
            
              
                
                  
                    
                      	 
      	
                               
      

                            	 , 
	
                              a

                            	 
      	 

                    

                  

                

              

            

          

        

        

        
          
            
              	
                      By 

                    	 
      

            

          

        

        
          
            
              	
                      Name 

                    	 
      

            

          

        

        
          
            
              	
                      Title 

                    	 
      

            

          

        

      

       

      GRANTEE:

       

      COLE TAYLOR BANK,

      an
Illinois banking corporation

      
         

        
          
            
              	
                      By

                    	 
      	 

            

          

        

        
          
            	
                    Print Name

                  	 
      	 

          

        

        
          
            
              	
                      Title

                    	 
      	 

            

          

        

      

      
         

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	
                                      STATE
      OF

                                    	
                                       
      

                                    	 
      	 	
                                      )

                                    
	 
      	 
      	 
      	 	
                                      )

                                    
	
                                      COUNTY
      OF

                                    	 
      	 
      	 	
                                      )

                                    

                            

                          

                        

                      

                    

                     

                  

                

              

            

          

        

      

      On this
____ day of _______________, 20__, before me personally came ______________, to
me known, who, being by me duly sworn did depose and say that he is the
_____________ of ______________________, the company described in and which
executed the foregoing instrument, and that he signed his name thereto by like
order.

       

      IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal in the
County and State aforesaid, the day and year first above written.

       

      
        
          
            
              	 
      	 
      
	
                      Notary
      Public

                    

            

          

        

      

       

      My
Commission Expires: ____________________

       

      
        
          
            	
                    STATE
      OF

                  	
                     
      

                  	 
      	 	
                    )

                  
	 
      	 
      	 
      	 	
                    )

                  
	
                    COUNTY
      OF

                  	 
      	 
      	 	
                    )

                  

          

        

         

        
          On this
____ day of ______________, 20__, before me personally came ___________________,
to me known, who, being by me duly sworn did depose and say that he is a
______________ of __________________________________, the company described in
and which executed the foregoing instrument and that she signed his name thereto
by like order.

           

          
            
               

            

            
               

              
                

              

            

            
               

            

          

        

      

    

     

    IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal in the
County and State aforesaid, the day and year first above written.

     

    
      
        
          
            
              	 
      	 
      
	 
      	
                      Notary
      Public

                    

            

          

        

      

    

     

    My
Commission Expires:                                              

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule A -
Trademarks

     

    
      
        	
                Country

              	 
      	
                Trademark

              	 
      	
                Registration #

              	 
      	
                Issue Date

              	 
      	
                Owner

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    Schedule B –
Patents

     

    
      
        	
                Country

              	 
      	
                Patent Title

              	 
      	
                Patent #/

                (Application #)

              	 
      	
                Issue Date/

                (File Date)

              	 
      	
                Owner

              
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    EXHIBIT
D

     

    FORM OF
GRANT OF SECURITY INTEREST IN COPYRIGHTS

     

    GRANT OF SECURITY INTEREST
IN COPYRIGHTS

     

    WHEREAS,
______________________, a ____________ [corporation/ limited liability company]
(“Grantor”) owns the
copyrights and associated copyright registrations and pending applications for
registration set forth on Schedule A
attached hereto; and

     

    WHEREAS,
COLE TAYLOR BANK, an Illinois banking corporation (the “Grantee”), desires to acquire
a security interest in, and lien on, all of Grantor’s right, title and interest
in and to Grantor’s copyrights and copyright registrations and applications
therefor; and

     

    WHEREAS,
the Grantor is willing to grant to the Grantee a security interest in and lien
upon the copyrights and copyright registrations and applications therefor
described above.

     

    NOW,
THEREFORE, for good and valuable consideration, the sufficiency and receipt of
which are hereby acknowledged, and subject to the terms and conditions of the
Credit and Security Agreement, dated as of ____________, 20___, between the
Grantor and the Grantee (as amended from time to time, the “Credit Agreement”), the
Grantor hereby grants to the Grantee a security interest in, and a lien upon,
all of Grantor’s right, title and interest in and to Grantor’s copyrights and
copyright registrations and applications more particularly set forth on Schedule A
attached hereto (the “Copyrights”), together with
(i) all Proceeds (as such term is defined in the Credit Agreement referred
to below) of the Copyrights, and (ii) all causes of action, past, present
and future, for infringement of any Copyright.

     

    This
GRANT OF SECURITY INTEREST is made to secure the satisfactory performance and
payment of all the Obligations (as such term is defined in the Credit Agreement)
of the Grantor and shall be effective as of the date of the Credit
Agreement.

     

    This
Grant of Security Interest has been granted in conjunction with the security
interest granted to Grantee under the Credit Agreement.  The rights
and remedies of the Grantee with respect to the security interest granted herein
are without prejudice to, and are in addition to those set forth in the Credit
Agreement, all terms and provisions of which are incorporated herein by
reference.  In the event that any provisions of this Grant of Security
Interest are deemed to conflict with the Credit Agreement, the provisions of the
Credit Agreement shall govern.

     

    [signature
page to follow]

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    IN
WITNESS WHEREOF, the undersigned have executed this Grant of Security Interest
as of the ____ day of ____________, 20___.

     

    GRANTOR:

     

    
      
        
          
            
              	 
      	
                      ,

                    
	
                      a

                    	 
      	 
      

            

          

        

      

    

     

    
      
        
          
            
              
                
                  
                    
                      	
                              By

                            	 
      	 
	
                              Name

                            	 
      	 
	
                              Title

                            	 
      	 

                    

                  

                

              

            

          

        

      

    

     

    GRANTEE:

     

    COLE TAYLOR BANK,

    an
Illinois banking corporation

     

    
      
        
          	
                  By

                	 
      	 

        

      

    

    
      
        	
                Print Name

              	 
      	 

      

    

    
      
        
          	
                  Title

                	 
      	 

        

      

    

     

    
      
        	
                STATE
      OF

              	 
      	
                )

              
	 
      	 
      	
                )

              
	
                COUNTY
      OF

              	 
      	
                )

              
	 
      	 
      	 
      

      

    

    On this
____ day of _______________, 20__, before me personally came ______________, to
me known, who, being by me duly sworn did depose and say that he is the
_____________ of ______________________, the company described in and which
executed the foregoing instrument, and that he signed his name thereto by like
order.

     

    IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal in the
County and State aforesaid, the day and year first above written.

     

    
      
        
          	 
      	 
      
	 
      	
                  Notary
      Public

                

        

      

    

     

    My
Commission Expires:                                                        

     

    
      
        	
                STATE
      OF

              	 
      	
                )

              
	 
      	 
      	
                )

              
	
                COUNTY
      OF

              	 
      	
                )

              
	 
      	 
      	 
      

      

    

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    On this
____ day of ______________, 20__, before me personally came ___________________,
to me known, who, being by me duly sworn did depose and say that he is a
______________ of Cole Taylor Bank, the company described in and which executed
the foregoing instrument and that she signed his name thereto by like
order.

     

    IN
WITNESS WHEREOF, I have hereunto set my hand and affixed my official seal in the
County and State aforesaid, the day and year first above written.

     

    
      
        
          	 
      	 
      
	 
      	
                  Notary
      Public

                

        

      

    

     

    My
Commission Expires:                                                          

    
      
         

      

      
        
        

        
          

        

      

      
         

      

    

    SCHEDULE
A

     

    COPYRIGHTS

     

    
      
        	
                COPYRIGHT

              	 
      	
                REGISTRATION NUMBER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00170-of-00352.parquet"}]]