ACUSPHERE INC
EX-10.1
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<TYPE>EX-10.1
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<FILENAME>a05-16931_1ex10d1.htm
<DESCRIPTION>EX-10.1
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit&nbsp;10.1</font></b></p>

<p align="right" style="margin:0in 0in .0001pt;text-align:right;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">MASTER
SECURITY AGREEMENT</font></b></p>

<h3 style="font-weight:normal;margin:0in 0in .0001pt;page-break-after:auto;text-align:center;text-decoration:underline;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">No.&nbsp;5081095</font></u></h3>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Dated as of June&nbsp;20,
2005<b><font style="font-weight:bold;"> </font></b>(<b><font style="font-weight:bold;">&#147;Agreement&#148;</font></b>)</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:33.85pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">THIS AGREEMENT</font></b>
is between <b><font style="font-weight:bold;">Oxford Finance Corporation</font></b>
(together with its successors and assigns, if any, <b><font style="font-weight:bold;">&#147;<i><font style="font-style:italic;">Secured Party</font></i>&#148;</font></b>) and <b><font style="font-weight:bold;">Acusphere,&nbsp;Inc.
</font></b>(<b><font style="font-weight:bold;">&#147;<i><font style="font-style:italic;">Debtor</font></i>&#148;</font></b>).&#160; Secured Party has an office at 133 N. Fairfax
Street, Alexandria, VA 22314.&#160; Debtor is
a corporation organized and existing under the laws of the state of
Delaware.&#160; Debtor&#146;s mailing address and
chief place of business is 500 Arsenal Street, Watertown, MA 02472.</p>

<p style="margin:0in 0in .0001pt 11.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">1.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>CREATION
OF SECURITY INTEREST.</b></p>

<p style="margin:0in 0in .0001pt 11.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:33.85pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Debtor grants to Secured Party, its successors and
assigns, a security interest in and against all property listed on any
collateral schedule&nbsp;now or in the future annexed to or made a part of this
Agreement by mutual agreement (<b><font style="font-weight:bold;">&#147;<i><font style="font-style:italic;">Collateral
Schedule</font></i>&#148;</font></b>), and in and against all additions,
attachments, accessories and accessions to such property, all substitutions,
replacements or exchanges therefore, and all insurance and/or other proceeds
thereof (all such property is individually and collectively called the <b><font style="font-weight:bold;">&#147;<i><font style="font-style:italic;">Collateral</font></i>&#148;</font></b>).&#160; This security interest is given to secure the
payment and performance of all debts, obligations and liabilities of any kind
whatsoever of Debtor to Secured Party, now existing or arising in the future,
including but not limited to the payment and performance of certain Promissory
Notes from time to time identified on any Collateral Schedule&nbsp;(collectively
<b><font style="font-weight:bold;">&#147;<i><font style="font-style:italic;">Notes</font></i>&#148;</font></b>
and each a <b><font style="font-weight:bold;">&#147;<i><font style="font-style:italic;">Note</font></i>&#148;</font></b>),
and any renewals, extensions and modifications of such debts, obligations and
liabilities (such Notes, debts, obligations and liabilities are called the <b><font style="font-weight:bold;">&#147;<i><font style="font-style:italic;">Indebtedness</font></i>&#148;</font></b>). Debtor
acknowledges that, notwithstanding that the Note(s) may be paid in full, this
Security Agreement shall continue to secure the payment and performance of all
other debts, obligations and liabilities of any kind whatsoever of Debtor to
Secured Party under the Note(s) or this Agreement, now existing or arising in
the future, and that Secured Party shall be under no obligation to release the
Collateral unless and until all Indebtedness of Debtor to Secured Party has
been paid and satisfied; provided, however, Secured Party, in its sole and
exclusive discretion, may elect to release some of the Collateral without
prejudice to Secured Party&#146;s security interest in the remaining Collateral.</font></p>

<p style="margin:0in 0in .0001pt 11.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">2.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>REPRESENTATIONS,
WARRANTIES AND COVENANTS OF DEBTOR.</b></p>

<p style="margin:0in 0in .0001pt 11.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:33.85pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Debtor represents, warrants and covenants as of the
date of this Agreement and as of the date of each Collateral
Schedule&nbsp;that:</font></p>

<p style="margin:0in 0in .0001pt 11.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Due
Organization</u>.&#160; Debtor&#146;s exact legal name
is as set forth in the preamble of this Agreement and Debtor is, and will
remain, duly organized, existing and in good standing under the laws of the
State set forth in the preamble of this Agreement, has its chief executive
offices at the location specified in the preamble, and is, and will remain duly
qualified and licensed in every jurisdiction wherever necessary to carry on its
business and operations, except where the failure to be so qualified and
licensed will not have a material adverse effect on Debtor, its business or
operations;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Power
and Capacity to Enter Into and Perform Obligations</u>.&#160; Debtor has adequate power and capacity to
enter into, and to perform its obligations under this Agreement, each
Collateral Schedule, each Note and any other documents evidencing, or given in
connection with, any of the Indebtedness (all of the foregoing are called the <b><font style="font-weight:bold;">&#147;<i><font style="font-style:italic;">Debt Documents</font></i>&#148;</font></b>);</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Due
Authorization</u>.&#160; This Agreement and
the other Debt Documents have been duly authorized, executed and delivered by Debtor
and constitute legal, valid and binding agreements enforceable against the
Debtor in accordance with their terms, except to the extent that the
enforcement of remedies may be limited under applicable bankruptcy and
insolvency laws and similar laws of general applicability relating to or
affecting creditors&#146; rights and by equitable principles;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Approvals
and Consents</u>.&#160; No approval, consent
or withholding of objections is required from any governmental authority or
instrumentality with respect to the entry into, or performance by Debtor of any
of the Debt Documents, except any already obtained;</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>No
Violations or Defaults</u>.&#160; The entry
into, and performance by, Debtor of the Debt Documents will not (i)&nbsp;violate
any of the organizational documents of Debtor or any judgment, order, law or
regulation applicable to Debtor, or (ii)&nbsp;result in any breach of or
constitute a default under any contract to which Debtor is a party, or result
in the creation of any lien, claim or encumbrance on any of Debtor&#146;s property
(except for liens in favor of Secured Party) pursuant to any indenture,
mortgage, deed of trust, bank loan, credit agreement, or other agreement or
instrument to which Debtor is a party;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Litigation</u>.&#160; There are no suits or proceedings pending in
court or before any commission, board or other administrative agency against or
affecting Debtor which could, in the aggregate, have a material adverse effect
on Debtor, its business or operations, or its ability to perform its
obligations under the Debt Documents, nor to Debtor&#146;s knowledge are any such
suits or proceedings threatened;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Financial
Statements Prepared In Accordance with GAAP</u>.&#160; All financial statements delivered to Secured
Party in connection with the Indebtedness have been prepared in accordance with
generally accepted accounting principles (provided that those financial
statements that are unaudited are subject to normal year-end adjustments, which
adjustments the Debtor does not expect to be material, and do not contain all
footnotes required under generally accepted accounting principles), and since
the date of the most recent financial statement, there has been no material
adverse change in Debtor&#146;s financial condition;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Use
of Collateral</u>.&#160; The Collateral is
not, and will not be, used by Debtor for personal, family or household
purposes;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Collateral
in Good Condition and Repair</u>.&#160; The
Collateral is, and will remain, in good condition and repair, normal wear and
tear excepted, and Debtor will not be negligent in its care and use;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Location
of Collateral</u>.&#160; All of the tangible
Collateral is located at the locations set forth on each Collateral Schedule.
Debtor shall give the Secured Party 30 days prior
written notice of any relocation of any Collateral;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(k)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Ownership
of Collateral</u>.&#160; Debtor is, and will
remain, the sole and lawful owner, and in possession of, the Collateral, and
has the sole right and lawful authority to grant the security interest
described in this Agreement;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(l)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Encumbrances</u>.&#160; The Collateral is, and will remain, free and
clear of all liens, claims and encumbrances of any kind whatsoever, except for
Permitted Liens;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(m)</font><font size="1" style="font-size:8.0pt;">&#160;&#160; </font><u>Intellectual Property Rights</u>.&#160;
Debtor will use commercially reasonable efforts to seek to (i)&nbsp;protect,
defend and maintain the validity and enforceability of the Intellectual
Property material to Debtor&#146;s business&#160; and (ii)&nbsp;not allow any
Intellectual Property material to Debtor&#146;s business to be abandoned, forfeited
or dedicated to the public.</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(n)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Taxes</u>.&#160; All federal, state and local tax returns
required to be filed by Debtor have been filed with the appropriate
governmental agencies and all taxes due and payable by Debtor have been timely
paid except to the extent contested in good faith and by appropriate
proceedings and for which adequate reserves have been established or except
where the failure to so file or so pay will not have a material adverse effect
on the Collateral or the Debtor, its business or operations.&#160; Debtor will pay when due all taxes, assessments
and other liabilities except as contested in good faith and by appropriate
proceedings and for which adequate reserves have been established or except
where the failure to so pay will not have a material adverse effect on the
Collateral or the Debtor, its business or operations;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(o)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>No
Defaults</u>.&#160; No event or condition
exists under any material agreement, instrument or document to which Debtor is
a party or may be subject, or by which Debtor or any of its properties are
bound, which constitutes a default or an event of default thereunder, or will,
with the giving of notice, passage of time, or both, would constitute a default
or event of default thereunder, which default will have a material adverse
effect on Debtor, its business or operations;</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(p)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Certification
of Financial Information</u>.&#160; All
reports, certificates, schedules, notices and financial information submitted
by Debtor to the Secured Party pursuant to this Agreement shall be certified as
true and correct by the president or chief financial officer of Debtor; and</p>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(q)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Notice
of Material Adverse Change</u>.&#160; Debtor
shall give the Secured Party prompt written notice of any event, occurrence or
other matter which (a)&nbsp;has resulted or will result in a material adverse
change in its financial condition, business operations, <font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><u><font style="font-weight:normal;">prospects, product development,
technology, or business or contractual relations with third parties of Debtor,
or (b)&nbsp;which would impair the ability of Debtor to perform its material
obligations hereunder or under any of the other financing agreements to which
it is a party, or (c)&nbsp;which would impair the ability of Secured Party to
enforce the Indebtedness or realize upon the Collateral</font></u></b></font>.</p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(r)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Transactions with Affiliates</u>.&#160; Debtor shall not, without the
prior written consent of Secured Party, directly or indirectly enter into or
permit to exist any material transaction with any Affiliate of Debtor except
for transactions that are in the ordinary course of Debtor&#146;s business, upon
fair and reasonable terms that are no less favorable to Debtor than would be
obtained in an arm&#146;s length transaction with a nonaffiliated Person.</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(s)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Perfection Certificate.</u>&#160;&#160; Debtor has previously delivered to the
Secured Party a certificate signed by the Debtor and entitled &#147;Perfection
Certificate&#148; (the &#147;<b><i><font style="font-style:italic;font-weight:bold;">Perfection Certificate</font></i></b>&#148;). The
Debtor represents and warrants to the Secured Party as follows: (a)&nbsp;the
Debtor&#146;s exact legal name is that indicated on the Perfection Certificate and
on the signature page&nbsp;hereof, (b)&nbsp;the Debtor is an organization of
the type, and is organized in the jurisdiction set forth in the Perfection
Certificate, (c)&nbsp;the Perfection Certificate accurately sets forth the
Debtor&#146;s organizational identification number or accurately states that the
Debtor has none, (d)&nbsp;the Perfection Certificate accurately sets forth the
Debtor&#146;s place of business or, if more than one, its chief executive office, as
well as the Debtor&#146;s mailing address, if different, (e)&nbsp;all other
information set forth on the Perfection Certificate pertaining to the Debtor is
accurate and complete, and (f)&nbsp;that there has been no change in any
information provided in the Perfection Certificate since the date on which it
was executed by the Debtor.</p>

<p style="margin:0in 0in .0001pt .75in;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">3.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>COLLATERAL.</b></p>

<p style="margin:0in 0in .0001pt 11.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 34.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The Debtor,
covenants and agrees that, so long as any of the Debt Documents shall remain in
effect, or unless the Secured Party shall otherwise consent in writing:</font></p>

<p style="margin:0in 0in .0001pt 34.0pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Possession of Collateral;
Inspection of Collateral</u>.&#160; Until the declaration of any default, Debtor
shall remain in possession of the Collateral; except that Secured Party shall
have the right to possess&#160;
(i)&nbsp;any chattel paper or instrument that constitutes a part
of the Collateral, and&#160; (ii)&nbsp;any
other Collateral in which Secured Party&#146;s security interest may be perfected
only by possession.&#160; Secured Party may
inspect any of the Collateral during normal business hours after giving Debtor
reasonable prior notice.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Maintenance of Collateral</u>.&#160; Debtor shall (i)&nbsp;use the Collateral only
in its trade or business,&#160;
(ii)&nbsp;maintain all of the Collateral in good operating order
and repair, normal wear and tear excepted,&#160;
(iii)&nbsp;use and
maintain the Collateral only in compliance with manufacturers recommendations
and all applicable laws, and&#160; (iv)&nbsp;keep
all of the Collateral free and clear of all liens, claims and encumbrances
(except for Permitted Liens).</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Disposition of Collateral</u>.&#160; Secured Party does not authorize and Debtor
agrees it shall not&#160; (i)&nbsp;part
with possession of any of the Collateral (except to Secured Party or for
maintenance and repair), (ii)&nbsp;remove any of the Collateral from the
continental United States, or&#160; (iii)&nbsp;sell,
rent, lease, mortgage, license, grant a security interest in or otherwise
transfer or encumber (except for Permitted Liens) any of the Collateral.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Taxes</u>.&#160; Debtor shall pay promptly when due all taxes,
license fees, assessments and public and private charges levied or assessed on
any of the Collateral, on its use, or on this Agreement or any of the other
Debt Documents.&#160; At its option, Secured
Party may discharge taxes, liens, security interests or other encumbrances at
any time levied or placed on the Collateral and may pay for the maintenance,
insurance and preservation of the Collateral and effect compliance with the
terms of this Agreement or any of the other Debt Documents.&#160; Debtor agrees to reimburse Secured Party, on
demand, all costs and expenses incurred by Secured Party in connection with
such payment or performance and agrees that such reimbursement obligation shall
constitute Indebtedness.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Books and Records</u>.&#160; Debtor shall, at all times, keep accurate and
complete records of the Collateral, and Secured Party shall have the right to
inspect and make copies of all of Debtor&#146;s books and records relating to the
Collateral during normal business hours, after giving Debtor reasonable prior
notice.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Third Party Possession of
Collateral</u>.&#160; Debtor agrees and
acknowledges that any third person who may at any time possess all or any
portion of the Collateral shall be deemed to hold, and shall hold, the
Collateral as the agent of, and as pledge holder for, Secured Party. Secured
Party may at any time give notice to any third person described in the
preceding sentence that such third person is holding the Collateral as the
agent of, and as pledge holder for, the Secured Party.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Change of Address</u>.&#160; The Debtor has not at any time within
the past four (4)&nbsp;months either maintained its chief executive office at
any other location other than as set forth above and shall not do so hereafter
except with the prior written consent of the Secured Party.&#160; The Secured Party shall be entitled to rely
upon the foregoing unless it receives 14 days&#146; advance written notice of a
change in the address of the Debtor&#146;s executive offices.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Fixtures</u>.&#160; Not permit any item of the Collateral to
become a fixture to real estate or an accession to other property without the
prior written consent of the Secured Party, and the Collateral is now and shall
at all times remain personal property except with the Secured Party&#146;s prior
written consent.&#160; If any of the
Collateral is or will be attached to real estate in such a manner as to become
a fixture under applicable state law and if such real estate is encumbered, the
Debtor will obtain from the holder of each Lien or encumbrance a written
consent and subordination to the security interest hereby granted, or a written
disclaimer of any interest in the Collateral, in a form acceptable to the
Secured Party.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Distributions</u>.&#160; <font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><u><font style="font-weight:normal;">Without the prior written consent of Secured Party,
which consent shall not be unreasonably withheld, conditioned or delayed,</font></u></b></font><font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><font style="font-weight:normal;text-decoration:none;"> </font></b></font>Debtor shall
not (i)&nbsp;pay any cash dividends on its common stock; or (ii)&nbsp;voluntarily
purchase, redeem, retire, defease or otherwise acquire for cash any of its
common stock (other than repurchases pursuant to the terms of employee stock
purchase plans, restricted stock agreements or similar arrangements).</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Indebtedness Payments</u>.
<font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><u><font style="font-weight:normal;">Without the
prior written consent of Secured Party, which consent shall not be unreasonably
withheld, conditioned or delayed,</font></u></b></font><font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><font style="font-weight:normal;text-decoration:none;"> </font></b></font>Debtor shall
not (i)&nbsp;prepay, redeem, purchase, defease or otherwise satisfy in any
manner prior to the scheduled repayment thereof any Additional Indebtedness for
borrowed money or lease obligations, or (ii)&nbsp;amend, modify or otherwise
change the terms of any Additional Indebtedness for borrowed money or lease
obligations so as to accelerate the scheduled repayment thereof, in any such
case, if such prepayment, redemption, purchase or satisfaction, of if such
amendment would accelerate any payment, in an aggregate amount in excess of
$1,000,000.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">4.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>INSURANCE.</b></p>

<p style="margin:0in 0in .0001pt 11.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Risk of Loss</u>.&#160; Debtor shall at all times bear the entire
risk of any loss, theft, damage to, or destruction of, any of the Collateral
from any cause whatsoever.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Insurance Requirements</u>.&#160; Debtor agrees to keep the Collateral insured
against loss or damage by fire and extended coverage perils, theft, burglary,
and for any or all Collateral, which are vehicles, for risk of loss by
collision, and if requested by Secured Party, against such other risks as
Secured Party may reasonably require. The insurance coverage shall be in an
amount no less than the full replacement value of the Collateral, and
deductible amounts, insurers and policies shall be acceptable to Secured
Party.&#160; Debtor shall deliver to Secured
Party policies or certificates of insurance evidencing such coverage.&#160; Each policy shall name Secured Party as a
loss payee, and Debtor shall seek appropriate amendments to such insurance
policies such that they shall provide for coverage to Secured Party regardless
of the breach by Debtor of any warranty or representation made therein, shall
not be subject to co-insurance, and shall provide that coverage may not be
canceled or altered by the insurer except upon thirty (30) days prior written
notice to Secured Party.&#160; Debtor appoints
Secured Party as its attorney-in-fact to make proof of loss, claim for
insurance and adjustments with insurers, and to receive payment of and execute
or endorse all documents, checks or drafts in connection with insurance
payments. Secured Party shall not act as Debtor&#146;s attorney-in-fact unless
Debtor is in default.&#160; Proceeds of
insurance shall be applied, at the option of Secured Party, to repair or
replace the Collateral or to reduce any of the Indebtedness.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">5.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>REPORTS.</b></p>

<p style="margin:0in 0in .0001pt 11.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Notice of Events</u>.&#160; Debtor shall promptly notify Secured Party
of&#160; (i)&nbsp;any change in the name of
Debtor,&#160; (ii)&nbsp;any change in the
state of its incorporation or registration,&#160;
(iii)&nbsp;any relocation of its chief executive offices,&#160; (iv)&nbsp;any of the Collateral being lost,
stolen, missing, destroyed, materially damaged or worn out, (v)&nbsp;any lien,
claim or encumbrance other than Permitted Liens attaching to or being made
against any of the Collateral, or (vi)&nbsp;any occurrence of any default
pursuant to <u>Section&nbsp;7</u> herein.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Financial Statements,
Reports and Certificates</u>.&#160; Debtor
will deliver to Secured Party copies of all Forms 10-K and 10-Q, if any, within
30 days after the dates on which they are filed with the Securities and
Exchange Commission.&#160; Concurrently with
delivery of the foregoing information, and from time to time promptly upon
request of Secured Party, Debtor will deliver to Secured Party a Compliance
Certificate substantially consistent with the form of the document attached
hereto as <u>Schedule&nbsp;A</u>.&#160; Debtor
will deliver to Secured Party promptly upon request of Secured Party, in form
satisfactory to Secured Party, such other and additional information, including
but not limited to financial information, as Secured Party may reasonably
request from time to time.&#160; Secured Party
agrees not to disclose and to keep any such other and additional information
strictly confidential.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">6.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>FURTHER
ASSURANCES.</b></p>

<p style="margin:0in 0in .0001pt 11.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Further Assurances
Regarding Security Interests</u>.&#160; Debtor
shall, upon request of Secured Party, furnish to Secured Party such further
information, execute and deliver to Secured Party such documents and
instruments (including, without limitation, Uniform Commercial Code financing
statements) and shall do such other acts and things as Secured Party may at any
time reasonably request relating to the perfection or protection of the
security interest created by this Agreement or for the purpose of carrying out
the intent of this Agreement.&#160; Without
limiting the foregoing, Debtor shall cooperate and do all acts deemed necessary
or advisable by Secured Party to continue in Secured Party a perfected first
security interest in the Collateral, and shall obtain and furnish to Secured
Party any subordinations, releases, landlord waivers, lessor waivers, mortgagee
waivers, or control agreements, and similar documents as may be from time to
time requested by, and in form and substance satisfactory to, Secured Party.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Authorization To File Financing Statements</u>.&#160; Debtor shall perform any and all acts
reasonably requested by the Secured Party to establish, maintain and continue
the Secured Party&#146;s security interest and liens in the Collateral, including
but not limited to, executing or authenticating financing statements and such
other instruments and documents when and as reasonably requested by the Secured
Party. Debtor hereby authorizes Secured Party through any of Secured Party&#146;s
employees, agents or attorneys to file any and all financing statements,
including, without limitation, any original filings, continuations, transfers
or amendments thereof required to perfect Secured Party&#146;s security interest and
liens in the Collateral under the UCC without authentication or execution by
Debtor. Debtor hereby irrevocably authorizes the Secured Party at any time and
from time to time to file in any filing office in any Uniform Commercial Code
jurisdiction any initial financing statement(s) and amendments thereto that (a)&nbsp;indicate
the Collateral (i)&nbsp;is subject to Secured Party&#146;s security interest,
regardless of whether any particular asset comprised in the Collateral falls
within the scope of Article&nbsp;9 of the Uniform Commercial Code of the State
or such jurisdiction, or (ii)&nbsp;as being of an equal or lesser scope or with
greater detail, and (b)&nbsp;provide any other information required by part 5
of Article&nbsp;9 of the Uniform Commercial Code of the State or such other
jurisdiction for the sufficiency or filing office acceptance of any financing
statement or amendment, including (i)&nbsp;whether the Debtor is an
organization, the type of organization and any organization identification number
issued to the Debtor, and (ii)&nbsp;in the case of a financing statement filed
as a fixture filing, a sufficient description of real property to which the
Collateral relates.&#160; The Debtor agrees to
furnish any such information to the Secured Party promptly upon the Secured
Party&#146;s request.&#160; Upon the satisfaction
in full of all Indebtedness of Debtor to Secured Party, Secured Party shall
file any financing statements (or terminations thereof) or other documents
reasonably requested by Debtor in order to release and terminate Secured Party&#146;s
security interest and liens in the Collateral under the UCC.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Indemnification</u>.&#160; Debtor shall indemnify and defend the Secured
Party, its successors and assigns, and their respective directors, officers and
employees, from and against all claims, actions and suits (including, without
limitation, related attorneys&#146; fees) of any kind whatsoever arising, directly
or indirectly, in connection with any of the Collateral or the Debt Documents,
provided that such claim, action or suit does not arise out of Secured Party&#146;s
willful misconduct or gross negligence.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">7.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DEFAULT
AND REMEDIES.</b></p>

<p style="margin:0in 0in .0001pt 11.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Defaults</u>.&#160; Debtor shall be in default under this
Agreement and each of the other Debt Documents if any one of the following
should occur:</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>Debtor
breaches its obligation to pay when due any installment or other amount due or
coming due under any of the Debt Documents and fails to cure the breach within
five (5)&nbsp;days;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>Debtor,
without the prior written consent of Secured Party, attempts to or does sell,
rent, lease, license, mortgage, grant a security interest in, or otherwise
transfer or encumber, or allow Liens&#160;
(except for Permitted Liens) upon, any of the Collateral;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160; </font>Debtor
breaches any of its insurance obligations under <u>Section&nbsp;4</u> and fails
to cure the breach within five (5)&nbsp;days;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font>Debtor breaches any of its obligations under <u>Section&nbsp;2(j) </u>and
fails to cure the breach within&#160; five (5)&nbsp;days;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160; </font>Debtor
breaches any of its other non-payment obligations under any of the Debt
Documents and fails to cure that breach within thirty (30) days after it has
occurred;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font>Any
warranty, representation or statement made by Debtor in any of the Debt
Documents or otherwise in connection with any of the Indebtedness shall be
false or misleading in any material respect when made;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vii)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font>Any
material portion of the Collateral is subjected to attachment, execution, levy,
seizure or confiscation in any legal proceeding or otherwise, or if any legal
or administrative proceeding is commenced against Debtor or any material
portion of the Collateral,<i><font style="font-style:italic;"> </font></i>which in the
good faith judgment of Secured Party subjects any material portion of the
Collateral to a material risk of attachment, execution, levy, seizure or
confiscation and no bond is posted or protective order obtained to negate such
risk;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(viii)</font><font size="1" style="font-size:8.0pt;">&#160;&#160; </font>Debtor
materially breaches or is in material default under any other agreement between
Debtor and Secured Party;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ix)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160; </font>Debtor
or any guarantor or other obligor for any of the Indebtedness (collectively <b><font style="font-weight:bold;">&#147;<i><font style="font-style:italic;">Guarantor</font></i>&#148;</font></b>) dissolves,
terminates its existence, becomes insolvent or ceases to do business as a going
concern;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(x)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160; </font>If
Debtor or any Guarantor is a natural person, and Debtor or any such Guarantor
dies or becomes incompetent;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xi)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160; </font>A
receiver is appointed for all or of any part of the property of Debtor or any
Guarantor, or Debtor or any Guarantor makes any assignment for the benefit of
creditors;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xii)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font>Debtor
or any Guarantor files a petition under any bankruptcy, insolvency or similar
law, or any such petition is filed against Debtor or any Guarantor and is not
dismissed within sixty (60) days;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xiii)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font>Debtor&#146;s
improper filing of an amendment or termination statement relating to a filed
financing statement describing the Collateral not&#160; cured within five (5)&nbsp;days;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xiv)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><u><font style="font-weight:normal;">Without the prior written consent
of Secured Party, which consent shall not be unreasonably withheld, conditioned
or delayed, Debtor</font></u></b></font> shall merge with or consolidate into
any other entity or sell all or substantially all of its assets or in any
manner terminate its existence<font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><u><font style="font-weight:normal;">;</font></u></b></font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xv)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><u><font style="font-weight:normal;">Without the prior written consent
of Secured Party, which consent shall not be unreasonably withheld, conditioned
or delayed, If Debtor</font></u></b></font> is a publicly held corporation,
there shall be a change in the ownership of <font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><u><font style="font-weight:normal;">Debtor</font></u></b></font>&#146;s stock such that <font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><u><font style="font-weight:normal;">Debtor</font></u></b></font> is no
longer subject to the reporting requirements of the Securities Exchange Act of
1934 or no longer has a class of equity securities registered under Section&nbsp;12
of the Securities Act of 1933;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xvi)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font>Debtor
defaults under any agreement to pay a material amount under any Additional
Indebtedness or any other financing arrangement between Debtor and a third
party;&#160; or</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 71.3pt;text-autospace:none;text-indent:-.35in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(xvii)</font><font size="1" style="font-size:8.0pt;">&#160;&#160; </font>Secured
Party<font style="color:black;font-weight:bold;letter-spacing:0pt;text-decoration:underline;"><b><u><font style="font-weight:normal;"> shall have
determined in its sole and good faith judgment that there has been a material
adverse change in the financial condition of Debtor from the date hereof</font></u></b></font>.&#160; Secured Party acknowledged that Debtor
anticipates reporting continuing losses and this alone will not be construed as
a material adverse change.&#160; In addition,
Secured Party acknowledges that Debtor anticipates the need to incur additional
indebtedness.&#160; Such additional
indebtedness alone shall not be construed as a material adverse change.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-24.55pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Acceleration</u>.&#160; If Debtor is in default, the Secured Party, at its option, may declare any or all
of the Indebtedness to be immediately due and payable, without demand or notice
to Debtor or any Guarantor (provided that if there is a default as a result of
a bankruptcy or insolvency all Indebtedness shall become immediately due and payable
without any action by Secured Party).&#160;
The accelerated obligations and liabilities shall bear interest (both
before and after any judgment) until paid in full at the Default Rate.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Rights and Remedies</u>.&#160; Secured Party shall have all of the rights and remedies of a Secured Party under the
Uniform Commercial Code, and under any other applicable law.&#160; Without limiting the foregoing, Secured Party
shall have the right during Debtor&#146;s default to&#160;
(i)&nbsp;notify any account debtor of Debtor or any obligor on any
instrument which constitutes part of the Collateral to make payment to the
Secured Party,&#160; (ii)&nbsp;with or without
legal process, enter any premises where the Collateral may be and take
possession of and remove the Collateral from the premises or store it on the
premises,&#160; (iii)&nbsp;sell the Collateral
at public or private sale, in whole or in part, and have the right to bid and
purchase at said sale, or&#160; (iv)&nbsp;lease
or otherwise dispose of all or part of the Collateral, applying proceeds from
such disposition to the obligations then in default.&#160; If requested by Secured Party, Debtor shall
promptly assemble the Collateral and make it available to Secured Party at a
place to be designated by Secured Party, which is reasonably convenient to both
parties.&#160; Secured Party may also render
any or all of the Collateral unusable at the Debtor&#146;s premises and may dispose
of such Collateral on such premises without liability for rent or costs.&#160; Any notice that Secured Party is required to
give to Debtor under the Uniform Commercial Code of the time and place of any
public sale or the time after which any private sale or other intended
disposition of the Collateral is to be made shall be deemed to constitute
reasonable notice if such notice is given to the last known address of Debtor
at least five (5)&nbsp;days prior to such action. Upon the occurrence and
during the continuation of a default, Debtor hereby appoints Secured Party as
Debtor&#146;s attorney-in-fact, with full authority in Debtor&#146;s place and stead and
in Debtor&#146;s name or otherwise, from time to time in Secured Party&#146;s sole and
arbitrary discretion, to take any action and to execute any instrument which
Secured Party may deem necessary or advisable to accomplish the purpose of this
Agreement.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Application of Proceeds</u>.&#160; The proceeds and/or avails of the Collateral,
or any part thereof, and the proceeds and the avails of any remedy hereunder
(as well as any other amounts of any kind held by Secured Party, at the time of
or received by Secured Party after the occurrence of a default hereunder) shall
be paid to and applied as follows:</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 70.6pt;text-autospace:none;text-indent:-17.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">a.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>First</u>, to the payment
of documented out-of-pocket costs and expenses, including all amounts expended
to preserve the value of the Collateral, all costs of repossession, storage,
and disposition including without limitation attorneys&#146;, appraisers&#146;, and
auctioneers&#146; fees, of foreclosure or suit, if any, and of such sale and the
exercise of any other rights or remedies, and of all proper fees, expenses,
liability and advances, including reasonable legal expenses and attorneys&#146;
fees, incurred or made hereunder by Secured Party, including without
limitation, Secured Party&#146;s Expenses;</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 70.6pt;text-autospace:none;text-indent:-17.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">b.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Second</u>, to the payment
to Secured Party of the amount then owing or unpaid on the Loans for scheduled
payments, any accrued and unpaid interest, and all other Indebtedness (<u>provided</u>,
<u>however</u>, if such proceeds shall be insufficient to pay in full the whole
amount so due, owing or unpaid upon the Loans, then to the unpaid interest
thereon, then to the outstanding principal amount of the Loans, and then to the
payment of other amounts then payable to Secured Party under any of the Debt
Documents or otherwise); and</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 70.6pt;text-autospace:none;text-indent:-17.3pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c.</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Third</u>, to the payment
of the surplus, if any, to Debtor, its successors and assigns, or to whosoever
may be lawfully entitled to receive the same.</p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Fees and Costs</u>.&#160; Debtor agrees to pay all reasonable attorneys&#146;
fees and other costs incurred by Secured Party in connection with the
enforcement, assertion, defense or preservation of Secured Party&#146;s rights and
remedies under this Agreement, or if prohibited by law, such lesser sum as may
be permitted. Debtor further agrees that such fees and costs shall constitute
Indebtedness.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Remedies Cumulative</u>.&#160; Secured Party&#146;s rights and remedies under
this Agreement or otherwise arising are cumulative and may be exercised
singularly or concurrently.&#160; Neither the
failure nor any delay on the part of the Secured Party to exercise any right,
power or privilege under this Agreement shall operate as a waiver, nor shall
any single or partial exercise of any right, power or privilege preclude any
other or further exercise of that or any other right, power or privilege.&#160; SECURED PARTY SHALL NOT BE DEEMED TO HAVE
WAIVED ANY OF ITS RIGHTS UNDER THIS AGREEMENT OR UNDER ANY OTHER AGREEMENT,
INSTRUMENT OR PAPER SIGNED BY DEBTOR UNLESS SUCH WAIVER IS EXPRESSED IN WRITING
AND SIGNED BY SECURED PARTY.&#160; A waiver on
any one occasion shall not be construed as a bar to or waiver of any right or
remedy on any future occasion.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>WAIVER OF JURY TRIAL</u>.&#160; DEBTOR AND SECURED PARTY UNCONDITIONALLY
WAIVE THEIR RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON
OR ARISING OUT OF THIS AGREEMENT, ANY OF THE OTHER DEBT DOCUMENTS, ANY OF THE
INDEBTEDNESS SECURED HEREBY, ANY DEALINGS BETWEEN DEBTOR AND SECURED PARTY
RELATING TO THE SUBJECT MATTER OF THIS TRANSACTION OR ANY RELATED TRANSACTIONS,
AND/OR THE RELATIONSHIP THAT IS BEING ESTABLISHED BETWEEN DEBTOR AND SECURED
PARTY.&#160; THE SCOPE OF THIS WAIVER IS
INTENDED TO BE ALL ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY&nbsp;BE FILED
IN ANY COURT. THIS WAIVER IS IRREVOCABLE.&#160;
THIS WAIVER MAY&nbsp;NOT BE MODIFIED EITHER ORALLY OR IN WRITING.&#160; THE WAIVER ALSO SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, ANY OTHER
DEBT DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS RELATING TO THIS
TRANSACTION OR ANY RELATED TRANSACTION.&#160;
THIS AGREEMENT MAY&nbsp;BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE
COURT.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">8.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>MISCELLANEOUS.</b></p>

<p style="margin:0in 0in .0001pt 11.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Assignment</u>.&#160; This Agreement and/or any of the other Debt
Documents may be assigned, in whole or in part, by Secured Party without notice
to Debtor, and Debtor agrees not
to assert against any such assignee, or assignee&#146;s assigns, any defense,
set-off, recoupment claim or counterclaim which Debtor has or may at any time
have against Secured Party for any reason whatsoever.<i><font style="font-style:italic;">&#160; </font></i>Debtor agrees that if Debtor
receives written notice of an assignment from Secured Party, Debtor will pay
all amounts payable under any assigned Debt Documents to such assignee or as
instructed by Secured Party.&#160; Debtor also
agrees to confirm in writing receipt of the notice of assignment as may be
reasonably requested by Secured Party or assignee.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Notices</u>.&#160; All notices to be given in connection with
this Agreement shall be in writing, shall be addressed to the parties at their
respective addresses set forth in this Agreement (unless and until a different
address may be specified in a written notice to the other party), and shall be
deemed given&#160; (i)&nbsp;on the date of
receipt if delivered in hand or by facsimile transmission,&#160; (ii)&nbsp;on the next business day after
being sent by express mail, and&#160; (iii)&nbsp;on
the fourth business day after being sent by regular, registered or certified
mail.&#160; As used herein, the term &#147;business
day&#148; shall mean and include any day other than Saturdays, Sundays, or other
days on which commercial banks in New York, New York are required or authorized
to be closed.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Correction of Errors</u>.&#160; Secured Party may correct patent errors and
fill in all blanks in this Agreement, any Collateral Schedule&nbsp;or in any
Note consistent with the agreement of the parties.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Time is of the Essence</u>.&#160; Time is of the essence of this
Agreement.&#160; This Agreement shall be
binding, jointly and severally, upon all parties described as the &#147;Debtor&#148; and
their respective heirs, executors, representatives, successors and assigns, and
shall inure to the benefit of Secured Party, its successors and assigns.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(e)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Entire Agreement</u>.&#160; This Agreement and the Debt Documents constitute
the entire agreement between the parties with respect to the subject matter of
this Agreement and supersede all prior understandings (whether written, verbal
or implied) with respect to such subject matter.&#160; NEITHER THIS AGREEMENT NOR ANY OF THE DEBT
DOCUMENTS SHALL BE CHANGED OR TERMINATED
ORALLY OR BY COURSE OF CONDUCT, BUT ONLY BY A WRITING SIGNED BY BOTH
PARTIES.&#160; Section&nbsp;headings contained
in this Agreement have been included for convenience only, and shall not affect
the construction or interpretation of this Agreement.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(f)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Termination of Agreement</u>.&#160; This Agreement shall continue in full force
and effect until all of the Indebtedness has been indefeasibly paid in full to
Secured Party or its assignee; <u>provided</u>, <u>that</u> Debtor&#146;s indemnity
obligations set forth in <u>Section&nbsp;6(c)&nbsp;</u>shall survive until all
applicable statute of limitations periods with respect to actions that may be
brought against Secured Party have run.&#160;
The surrender, upon payment or otherwise, of any Note or any of the
other documents evidencing any of the Indebtedness shall not affect the right
of Secured Party to retain the Collateral for such other Indebtedness as may
then exist or as it may be reasonably contemplated will exist in the
future.&#160; This Agreement shall
automatically be reinstated if Secured Party is ever required to return or
restore the payment of all or any portion of the Indebtedness (all as though
such payment had never been made). Secured Party shall, at Debtor&#146;s sole cost
and expense, execute such further documents and take such further actions as
may be reasonably necessary to effect the release of
its security interests contemplated by this paragraph, including duly executing
and delivering termination statements for filing in all relevant jurisdictions
under the Code.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(g)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>CHOICE OF LAW</u>.&#160; DEBTOR AGREES THAT SECURED PARTY AND/OR ITS
SUCCESSORS AND ASSIGNS SHALL HAVE THE OPTION BY WHICH STATE LAWS THIS AGREEMENT
SHALL BE GOVERNED AND CONSTRUED: (A)&nbsp;THE LAWS OF THE COMMONWEALTH OF
VIRGINIA; OR (B)&nbsp;IF COLLATERAL HAS BEEN PLEDGED TO SECURE THE LIABILITIES,
THEN BY THE LAWS OF THE STATE OR STATES WHERE THE COLLATERAL IS LOCATED, AT
SECURED PARTY&#146;S OPTION.&#160; THIS CHOICE OF
STATE LAWS IS EXCLUSIVE TO THE SECURED PARTY.&#160;
DEBTOR SHALL NOT HAVE ANY OPTION TO CHOOSE THE LAWS BY WHICH THIS
AGREEMENT SHALL BE GOVERNED.&#160;&#160; DEBTOR
ACKNOWLEDGES THAT THIS AGREEMENT IS BEING SIGNED BY THE SECURED PARTY IN
PARTIAL CONSIDERATION OF SECURED PARTY&#146;S RIGHT TO ENFORCE IN THE JURISDICTION
STATED ABOVE.&#160; DEBTOR CONSENTS TO
JURISDICTION IN THE COMMONWEALTH OF VIRGINIA OR THE STATE IN WHICH ANY
COLLATERAL IS LOCATED AND VENUE IN ANY FEDERAL OR STATE COURT IN THE
COMMONWEALTH OF VIRGINIA OR THE STATE IN WHICH COLLATERAL IS LOCATED FOR SUCH
PURPOSES AND WAIVES ANY AND ALL RIGHTS TO CONTEST SAID JURISDICTION AND VENUE
AND ANY OBJECTION THAT SAID COUNTY IS NOT CONVENIENT.&#160; DEBTOR WAIVES ANY RIGHTS TO COMMENCE ANY
ACTION AGAINST SECURED PARTY IN ANY JURISDICTION EXCEPT VIRGINIA, OR IF SECURED
PARTY CHOOSES TO LITIGATE IN A STATE WHERE COLLATERAL IS LOCATED THEN IN SUCH
COUNTY AND STATE.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(h)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160; </font><u>Power of Attorney</u>.&#160; Upon the occurrence and continuation of a
default, To facilitate direct collection, the Debtor hereby appoints the
Secured Party and any officer or employee of the Secured Party, as the Secured
Party may from time to time designate, as attorney-in-fact for the Debtor to (a)&nbsp;endorse
the name of the Debtor in favor of the Secured Party upon any and all checks,
drafts, money orders, notes, acceptances or other evidences of payment or
Collateral that may come into the Secured Party&#146;s possession; (b)&nbsp;do all
acts and things necessary to carry out this Agreement and the transactions
contemplated hereby, including signing the name of the Debtor on any
instruments required by law in connection with the transactions contemplated
hereby and on financing statements as permitted by the Virginia Uniform
Commercial Code.&#160; The Debtor hereby
ratifies and approves all acts of such attorneys-in-fact, and neither the
Secured Party nor any other such attorney-in-fact shall be liable for any acts
of commission or omission, or for any error of judgment or mistake of fact or law of any such attorney-in-fact.&#160; This power, being coupled with an interest,
is irrevocable so long as the Loan remains unsatisfied, or any Debt Document
remains effective, as solely determined by the Secured Party.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Loss, Depreciation or Other Damage</u>.&#160; The Secured Party shall not be
liable for or prejudiced by any loss, depreciation or other damage to
Collateral unless caused by the Secured Party&#146;s willful and malicious act and
the Secured Party shall have no duty to take any action to preserve or collect
any Collateral.</p>

<p style="margin:0in 0in .0001pt 52.45pt;text-autospace:none;text-indent:-.25in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 53.3pt;text-autospace:none;text-indent:-19.45pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(j)</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160; </font><u>Demand; Protest</u>.&#160; Debtor waives demand, protest, notice of
protest, notice of default or dishonor, notice of payment and nonpayment,
notice of any default, nonpayment at maturity, release, compromise, settlement,
extension, or renewal of accounts, documents, instruments, chattel paper, and
guarantees at any time held by Secured Party on which Debtor may in any way be
liable.</p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">9.</font></b><b><font size="1" style="font-size:8.0pt;font-weight:bold;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font>DEFINITIONS.</b></p>

<p style="margin:0in 0in .0001pt 11.45pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:33.85pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">As used herein, the
following terms, when initial capital letters are used, shall have the
respective meanings set forth below.&#160; In
addition, all terms defined in the Code shall have the meanings given therein
unless otherwise defined herein.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">Defined Terms</font></u>.&#160; As used in this Agreement, the following
terms shall have the following meanings, unless the context otherwise requires:</p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Additional Indebtedness</font></i></b>&#148;
means, with respect to Debtor or any of its subsidiaries, the aggregate amount
of, without duplication, (a)&nbsp;all obligations of such Person for borrowed
money, (b)&nbsp;all obligations of such Person evidenced by bonds, debentures,
notes or other similar instruments, (c)&nbsp;all obligations of such Person to
pay the deferred purchase price of property or services (excluding trade
payables aged less than one hundred eighty (180) days), (d)&nbsp;all capital
lease obligations of such Person, (e)&nbsp;all obligations or liabilities of
others secured by a Lien on any asset of such Person, whether or not such obligation
or liability is assumed, (f)&nbsp;all obligations or liabilities of others
guaranteed by such Person, and (g)&nbsp;any other obligations or liabilities
which are required by GAAP to be shown as debt on the balance sheet of such
Person.&#160; Unless otherwise indicated, the
term &#147;<b><i><font style="font-style:italic;font-weight:bold;">Additional Indebtedness</font></i></b>&#148;
shall include all Indebtedness of Debtor and all of its subsidiaries.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 59.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#147;<i><font style="font-style:italic;">Affiliate</font></i>&#148;</font></b> of a Person is a Person that
owns or controls directly or indirectly the Person, any Person that controls or
is controlled by or is under common control with the Person, and each of that
Person&#146;s senior executive officers, directors, partners
and, for any Person that is a limited liability company, that Person&#146;s managers
and members.</p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Code</font></i></b>&#148; means
the Virginia Uniform Commercial Code (including revised Article&nbsp;9
thereof).</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Collateral</font></i></b>&#148;
has the meaning given such capitalized term in <u>Section&nbsp;1</u>.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Collateral Schedule</font></i></b>&#148; has the meaning
given such capitalized term in <u>Section&nbsp;1</u>.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Debt Documents</font></i></b>&#148; has the meaning
given such capitalized term in <u>Section&nbsp;2(b)</u>.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Default Rate</font></i></b>&#148; </font>is the lower of eighteen percent (18%) per
annum or the maximum rate not prohibited by applicable law.</p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Indebtedness</font></i></b>&#148; has the meaning given
such capitalized term in <u>Section&nbsp;1</u>.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Intellectual Property</font></i></b>&#148; shall mean (a)&nbsp;all
of the Debtor&#146;s right, title and interest, whether now owned or existing or
hereafter acquired or arising, in and to all domestic and foreign copyrights,
copyright registrations and copyright applications, whether or not registered
or filed with any governmental authority, together with (i)&nbsp;all renewals
thereof, (ii)&nbsp;all present and future rights of the Debtor under all
present and future license agreements relating thereto, whether the Debtor is
licensee or licensor thereunder, (iii)&nbsp;all income, royalties, damages and
payments now or hereafter due and/or payable to the Debtor thereunder or with
respect thereto, including, without limitation, damages and payments for past,
present or future infringements thereof, (iv)&nbsp;all of the Debtor&#146;s present
and future claims, causes of action and rights to sue for past, present or
future infringements thereof, and (v)&nbsp;all rights corresponding thereto
throughout the world (collectively &#147;<b><font style="font-weight:bold;">Copyright Rights</font></b>&#148;);
(b)&nbsp;all of the Debtor&#146;s right, title and interest, whether now owned or
existing or hereafter acquired or arising, in and to all United States and
foreign patents, and pending and abandoned United States and foreign patent
applications, including, without limitation, the inventions and improvements
described or claimed therein, together with(i)&nbsp;any reissues, divisions,
continuations, certificates of re-examination, extensions and continuations-in-part
thereof, (ii)&nbsp;all present and future rights of the Debtor under all
present and future license agreements relating thereto, whether the Debtor is
licensee or licensor thereunder, (iii)&nbsp;all income, royalties, damages and
payments now or hereafter due and/or payable to the Debtor thereunder or with
respect thereto, including, without limitation, damages and payments for past,
present or future infringements thereof, (iv)&nbsp;all of the Debtor&#146;s present
and future claims, causes of action and rights to sue for past, present or
future infringements thereof, and (v)&nbsp;all rights corresponding thereto
throughout the world (collectively &#147;<b><font style="font-weight:bold;">Patent Rights</font></b>&#148;);
(c)&nbsp;all of the Debtor&#146;s right, title and interest, whether now owned or
existing or hereafter acquired or arising, in and to all domestic and foreign
trademarks, trademark registrations, trademark applications and trade names,
whether or not registered or filed with any governmental authority, together
with (i)&nbsp;all renewals thereof, (ii)&nbsp;all present and future rights of
the Debtor under all present and future license agreements relating thereto,
whether the Debtor is licensee or licensor thereunder, (iii)&nbsp;all income,
royalties, damages and payments now or hereafter due and/or payable to the
Debtor thereunder or with respect thereto, including, without limitation,
damages and payments for past, present or future infringements thereof, (iv)&nbsp;all
of the Debtor&#146;s present and future claims, causes of action and rights to sue
for past, present or future infringements thereof, and (v)&nbsp;all rights
corresponding thereto throughout the world (collectively &#147;<b><font style="font-weight:bold;">Trademark
Rights</font></b>&#148;); (d)&nbsp;all present and future licenses and license
agreements of the Debtor, and all rights of the Debtor under or in connection
therewith, whether the Debtor is licensee or licensor thereunder, including,
without limitation, any present or future franchise agreements under which the
Debtor is franchisee or franchisor, together with (i)&nbsp;all renewals
thereof, (ii)&nbsp;all income, royalties, damages and payments now or hereafter
due and/or payable to the Debtor thereunder or with respect thereto, including,
without limitation, damages and payments for past, present or future
infringements thereof, (iii)&nbsp;all claims, causes of action and rights to
sue for past, present or future infringements thereof, and (iv)&nbsp;all rights
corresponding thereto throughout the world (collectively &#147;<b><font style="font-weight:bold;">License
Rights</font></b>&#148;); (e)&nbsp; all present and future trade secrets of the
Debtor; and (f)&nbsp;all other present and future intellectual property of the
Debtor.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Lien(s)</font></i></b><i><font style="font-style:italic;">&#148;</font></i>
shall mean any voluntary or involuntary mortgage, pledge, deed of trust,
assignment, security interest, encumbrance, hypothecation, lien, or charge of
any kind (including any conditional sale or other title retention agreement,
any financing lease having substantially the same economic effect as any of the
foregoing, and the filing of, or agreement to give, any financing statement
under the Uniform Commercial Code or comparable law of any jurisdiction).</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Loan</font></i></b>&#148; means an advance of credit by
Secured Party to Debtor.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Note</font></i></b>&#148; has the meaning given such
capitalized term in <u>Section&nbsp;1</u>.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Permitted Liens</font></i></b>&#148;
means:&#160; (i)&nbsp;liens in favor of
Secured Party, (ii)&nbsp;liens for taxes not yet due or for taxes being
contested in good faith and which do not involve, in the judgment of Secured
Party, any imminent risk of the sale, forfeiture or loss of any of the
Collateral, and (iii)&nbsp;inchoate material men&#146;s, mechanic&#146;s, repairmen&#146;s and
similar liens arising by operation of law in the normal course of business for
amounts which are not delinquent.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 59.0pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">&#147;<i><font style="font-style:italic;">Person</font></i>&#148;</font></b> is any individual, sole
proprietorship, partnership, limited liability company, joint venture, company
association, trust, unincorporated organization, association, corporation,
institution, public benefit corporation, firm, joint stock company, estate,
entity or government agency.</p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Primary Operating Account</font></i></b>&#148; has the
meaning given such capitalized term in <u>Section&nbsp;2(w)</u>.</font></p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<b><i><font style="font-style:italic;font-weight:bold;">Secured Party&#146;s Expenses</font></i></b>&#148; </font>means all reasonable documented costs or
expenses (including reasonable attorneys&#146; fees and expenses) incurred in
connection with the preparation, negotiation, documentation, administration and
funding of the Debt Documents; and Secured Party&#146;s reasonable attorneys&#146; fees,
costs and expenses incurred in amending, modifying, enforcing or defending the
Debt Documents (including fees and expenses of appeal or review), including the
exercise of any rights or remedies afforded hereunder or under applicable law,
whether or not suit is brought, whether before or after bankruptcy or
insolvency, including without limitation all fees and costs incurred by Secured
Party in connection with Secured Party&#146;s enforcement of its rights in a
bankruptcy or insolvency proceeding filed by or against Debtor or its property.</p>

<p style="margin:0in 0in .0001pt 59.0pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 4.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;text-indent:33.85pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">IN WITNESS WHEREOF,</font></b> Debtor and
Secured Party, intending to be legally bound hereby, have duly executed this
Agreement in one or more counterparts, each of which shall be deemed to be an
original, as of the day and year first aforesaid.</p>

<p style="margin:0in 0in .0001pt 4.5pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="45%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:45.06%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">SECURED PARTY:</font></p>
  </td>
  <td width="54%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:54.94%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">DEBTOR:</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:45.06%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:54.94%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:45.06%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Oxford Finance Corporation</font></b></p>
  </td>
  <td width="54%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:54.94%;">
  <h1 align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">Acusphere,&nbsp;Inc.</font></b></h1>
  </td>
 </tr>
 <tr>
  <td width="45%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:45.06%;">
  <h1 align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>
  </td>
  <td width="54%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:54.94%;">
  <h1 align="left" style="margin:0in 0in .0001pt;page-break-after:auto;text-align:left;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>
  </td>
 </tr>
 <tr>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.38%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="24%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:24.48%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/S/ Michael J. Altenburger</font></p>
  </td>
  <td width="17%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:17.2%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.06%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="28%" colspan="5" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:28.0%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;/S/ John Thero</font></p>
  </td>
  <td width="23%" valign="top" style="padding:0in 0in 0in 0in;width:23.88%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:45.06%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:54.94%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.16%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="22%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:22.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;Michael J. Altenburger </font></p>
  </td>
  <td width="17%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:17.56%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.12%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
  <td width="22%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:22.5%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;John Thero</font></p>
  </td>
  <td width="27%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:27.32%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="45%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:45.06%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="54%" colspan="7" valign="top" style="padding:0in 0in 0in 0in;width:54.94%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="4%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:4.34%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:</font></p>
  </td>
  <td width="24%" colspan="4" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:24.08%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;CFO</font></p>
  </td>
  <td width="16%" valign="top" style="padding:0in 0in 0in 0in;width:16.64%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:4.28%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title: </font></p>
  </td>
  <td width="23%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:23.26%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;&nbsp;Sr. VP, Treasurer&nbsp;&amp; CFO</font></p>
  </td>
  <td width="27%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:27.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr height="0">
  <td width="25" style="border:none;"></td>
  <td width="7" style="border:none;"></td>
  <td width="6" style="border:none;"></td>
  <td width="167" style="border:none;"></td>
  <td width="3" style="border:none;"></td>
  <td width="4" style="border:none;"></td>
  <td width="124" style="border:none;"></td>
  <td width="23" style="border:none;"></td>
  <td width="9" style="border:none;"></td>
  <td width="6" style="border:none;"></td>
  <td width="168" style="border:none;"></td>
  <td width="1" style="border:none;"></td>
  <td width="26" style="border:none;"></td>
  <td width="179" style="border:none;"></td>
 </tr>
</table>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">SCHEDULE&nbsp;A</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><u><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">(Compliance Certificate)</font></u></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div style="font-family:Times New Roman;">

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">FORM&nbsp;OF</font></b></p>

<h1 style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">COMPLIANCE CERTIFICATE</font></b></h1>

<h1 style="margin:0in 0in .0001pt;page-break-after:auto;text-align:center;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></b></h1>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Oxford Finance
Corporation</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h6 style="margin:0in 0in .0001pt;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;">133 N. Fairfax Street</font></b></h6>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Alexandria, VA 22314</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="font-size:10.0pt;margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Re:</font><font size="1" style="font-size:8.0pt;">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </font><i><font style="font-style:italic;">&lt;Debtor&gt;</font></i></p>

<p style="margin:0in 0in .0001pt 1.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Gentlemen:</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Reference is made to the
Master Security Agreement dated as of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
200&nbsp;&nbsp; (as the same have been and may be amended from time to time in
writing, the &#147;<b><font style="font-weight:bold;">Loan Agreement</font></b>&#148;, the capitalized
terms used herein as defined therein), between Oxford Finance Corporation and <i><font style="font-style:italic;">&lt;Debtor&gt;</font></i> (the &#147;<b><font style="font-weight:bold;">Company</font></b>&#148;).</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-indent:33.85pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">The undersigned
authorized representative of the Company hereby certifies that in accordance
with the terms and conditions of the Loan Agreement, the Company is in
compliance for the financial reporting period ending &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
in all material respects with all required financial reporting under the Loan
Agreement, except as noted below.&#160;
Attached herewith are the required documents supporting the foregoing certification.&#160; The
undersigned further certifies that the accompanying financial statements have
been prepared in accordance with Generally Accepted Accounting Principles
(provided that those financial statements that are unaudited are subject to
normal year-end adjustments, which adjustments the Debtor does not expect to be
material, and do not contain all footnotes required under generally accepted
accounting principles), and are consistent from one period to the next, except
as explained below.</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">Indicate compliance status by circling Yes/No under
&#147;Complies&#148;</font></i></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="36%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:36.24%;">
  <p style="margin:0in 0in .0001pt;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">REPORTING REQUIREMENT</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.86%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="41%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:41.56%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">REQUIRED</font></b></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.86%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
  <td width="14%" valign="bottom" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:14.98%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:8.0pt;font-weight:bold;">COMPLIES</font></b></p>
  </td>
  <td width="1%" valign="bottom" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p align="center" style="margin:0in 0in .0001pt;text-align:center;"><b><font size="1" face="Times New Roman" style="font-size:1.0pt;font-weight:bold;">&nbsp;</font></b></p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:36.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;10-Q</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:41.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Within 30 days
  of being filed with SEC</font></p>
  </td>
  <td width="2%" valign="bottom" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:2.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;border:none;padding:0in 0in 0in 0in;width:14.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" bgcolor="#CCEEFF" style="background:#CCEEFF;padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="36%" valign="top" style="padding:0in 0in 0in 0in;width:36.24%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Form&nbsp;10-K</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="41%" valign="top" style="padding:0in 0in 0in 0in;width:41.56%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Within 30 days
  of being filed with SEC</font></p>
  </td>
  <td width="2%" valign="bottom" style="padding:0in 0in 0in 0in;width:2.86%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="14%" valign="top" style="padding:0in 0in 0in 0in;width:14.98%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="1%" valign="top" style="padding:0in 0in 0in 0in;width:1.5%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<h5 style="font-style:italic;margin:0in 0in .0001pt;"><b><i><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">EXPLANATIONS</font></u></i></b></h5>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:49.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Very truly
  yours,</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:49.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.92%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:49.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><i><font size="2" face="Times New Roman" style="font-size:10.0pt;font-style:italic;">&lt;Debtor&gt;</font></i></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.92%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="3%" valign="top" style="padding:0in 0in 0in 0in;width:3.24%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">By:</font></p>
  </td>
  <td width="22%" valign="top" style="border:none;border-bottom:solid windowtext 1.0pt;padding:0in 0in 0in 0in;width:22.92%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="22%" valign="top" style="padding:0in 0in 0in 0in;width:22.92%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.92%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:49.08%;">
  <p style="margin:0in 0in .0001pt;page-break-after:auto;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Name:</font></p>
  </td>
 </tr>
 <tr>
  <td width="50%" valign="top" style="padding:0in 0in 0in 0in;width:50.92%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:1.0pt;">&nbsp;</font></p>
  </td>
  <td width="49%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:49.08%;">
  <p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Title:*</font></p>
  </td>
 </tr>
</table>

<p style="margin:0in 0in .0001pt 3.0in;text-indent:-3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 3.0in;text-indent:-3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt 3.0in;text-indent:-3.0in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="1" width="25%" noshade color="black" align="left">

</font></div>

<p style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">* Must be executed by Debtor&#146;s Chief Financial Officer.</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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<div>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">[SCHEDULE&nbsp;B]</font></b></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">[Listing of Additional Indebtedness]</font></u></p>

<p align="center" style="margin:0in 0in .0001pt;text-align:center;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<div style="margin:0in 0in .0001pt;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">

<hr size="2" width="100%" noshade color="gray" align="left">

</font></div>

</div>
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