EQUIFIN INC
EX-10.7
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<TYPE>EX-10.7
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<FILENAME>a03-6618_1ex10d7.htm
<DESCRIPTION>EX-10.7
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<p align="right" style="margin:0in 0in .0001pt;text-align:right;text-autospace:none;"><b><font size="2" face="Times New Roman" style="font-size:10.0pt;font-weight:bold;">Exhibit 10.7</font></b></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 align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">SUBORDINATION AND INTERCREDITOR AGREEMENT</font></u></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;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS
SUBORDINATION AND INTERCREDITOR AGREEMENT (as hereafter amended, restated or
otherwise modified from time to time, the &#147;<u>Agreement</u>&#148;) is entered into
effective as of December 12, 2003 (the &#147;<u>Effective Date</u>&#148;), by and among
LAURUS MASTER FUND, LTD., a Cayman Islands company (together with its
successors and assigns to the extent permitted hereby, the &#147;<u>Junior Creditor</u>&#148;),
WELLS FARGO FOOTHILL, INC. (f/k/a Foothill Capital Corporation), as Lender
under the hereinafter defined Senior Credit Agreement (together with its
successors and assigns, the &#147;<u>Lender</u>&#148;) EQUINOX BUSINESS CREDIT CORP., a
New Jersey corporation (together with its successors and assigns, &#147;<u>Debtor</u>&#148;)
and EQUIFIN, INC., a Delaware corporation (together with its successors and
assigns, &#147;<u>Guarantor</u>&#148;).&#160; Terms
defined in <u>Section&nbsp;1</u>, where used in the Recitals below and
elsewhere in this Agreement, shall have the same meanings, where so used, as
are prescribed therein.</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 align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">RECITALS</font></u></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;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Debtor is
obligated for payment and performance of the Senior Debt and has granted the
Senior Creditor Liens to secure the Senior Debt.&#160; Guarantor has guaranteed the Senior Debt.&#160; Debtor and Guarantor are obligated or may
become obligated for payment and performance of Junior Debt and may grant the
Junior Creditor Liens to secure the Junior Debt.&#160; As one of the conditions precedent to the agreement of Lender to
extend credit under the Senior Credit Agreement, Lender has required the execution
and delivery of this Agreement by the parties hereto.&#160; In order to induce Lender to extend credit under the Senior
Credit Agreement, Junior Creditor wishes to enter into this Agreement on the
terms provided 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 align="center" style="margin:0in 0in .0001pt;text-align:center;text-autospace:none;"><u><font size="2" face="Times New Roman" style="font-size:10.0pt;">AGREEMENT</font></u></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;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">NOW,
THEREFORE, in order to induce Lender to extend credit under the Senior Credit
Agreement, and for value received, the receipt and sufficiency of which are
hereby acknowledged by each of the undersigned, the parties hereto hereby agree
as follows:</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">1.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Definitions</u>.&#160; The following terms shall have the following
meanings in this Agreement:</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Bankruptcy Code</u>&#148; means the Bankruptcy
Reform Act of 1978, as amended and from time to time in effect (11 U.S.C.
&#167;&#167;&nbsp;101, <i><font style="font-style:italic;">et seq</font></i>).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Business Day</u>&#148; means any day that is
not Saturday, Sunday, or a day on which banks in Dallas, Texas, are required or
permitted under applicable law to be closed.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Commitment</u>&#148; means the commitment of
Lender to extend credit under the Senior Credit Agreement.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Debtor</u>&#148; has the meaning prescribed
for such term in the introductory paragraph of this Agreement, and includes
Debtor as debtor-in-possession in any Proceeding.</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 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;">1</font></p>


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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Equally Senior Securities</u>&#148; means
securities of Debtor, Guarantor or any other Person provided for by a plan of
reorganization or readjustment the payment of which are senior with respect to
the payment of all Junior Debt at least to the extent provided in the
subordination provisions of this Agreement, in form and substance satisfactory
to Lender.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Equally Subordinate Securities</u>&#148; means
securities of Debtor, Guarantor or any other Person provided for by a plan of
reorganization or readjustment the payment of which are subordinate with
respect to the payment of all Senior Debt at least to the extent provided in
the subordination provisions of this Agreement, in form and substance
satisfactory to Lender, and are not subordinate to any other claim or interest
of any Person (other than claims or interests, if any, in respect of which the
Junior Debt was so subordinate prior to the effectiveness of such
reorganization or readjustment).</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Guarantor</u>&#148; has the meaning prescribed
for such term in the introductory paragraph of this Agreement and includes
Guarantor as debtor-in-possession in any Proceeding.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Indefeasibly Paid</u>&#148; means, with
respect to the making of any payment on or in respect of any Senior Debt, a
payment of such Senior Debt in full which is not subject to avoidance under
section&nbsp;547 of the Bankruptcy Code.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Junior Creditor</u>&#148; has the meaning
prescribed for such term in the introductory paragraph of this Agreement, and
also includes any other Person at any time who is a holder of any Junior Debt.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Junior Creditor Collateral</u>&#148; means all
property of Debtor or Guarantor, now owned or hereafter acquired, in which any
Junior Creditor Liens are granted pursuant to any Junior Debt Documents, and
all proceeds thereof.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Junior Creditor Liens</u>&#148; means any and
all liens, security interests, mortgages or other interests held by Junior
Creditor in the Junior Creditor Collateral, now or hereafter existing, and any
and all other liens, security interests, mortgages or other interests, if any,
at any time held by Junior Creditor in any property of Debtor or Guarantor.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Junior Debt</u>&#148; means the indebtedness,
obligations and liabilities now or hereafter owing to Junior Creditor by Debtor
or Guarantor, whether now existing or hereafter incurred or created (including,
without limitation, interest accruing on any such indebtedness after the
commencement of any Proceeding and any additional interest that would have accrued
thereon but for the commencement of such Proceeding), and any and all renewals,
extensions or rearrangements thereof. Without limiting the foregoing, such
Junior Debt includes the indebtedness arising under the Junior Note, the
Purchase Agreement, the Security Agreement of even date therewith from Debtor
and Guarantor in favor of Junior Creditor, the letter agreement referred to in
the last sentence of Section&nbsp;12, and any other security agreement or other
document related thereto.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Junior Debt Documents</u>&#148; means any and
all agreements, instruments or documents now existing or hereafter executed
and/or delivered by Debtor or Guarantor pursuant to which Debtor or Guarantor
agrees to pay or assures payment and/or performance of any Junior Debt or
grants or purports to grant any liens, security interests or other interests in
any property for the benefit of Junior Creditor to secure the Junior Debt, or
any part thereof (<u>provided</u>, that the foregoing reference</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 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;">2</font></p>


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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">to liens, security interests or
other interests in property shall not be construed to allow the granting of any
liens, security interests or other interests in property which otherwise are
prohibited by the terms of this Agreement), in each case as the same may be
modified, amended, renewed, extended, restated, supplemented or otherwise
modified from time to time.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Junior Default</u>&#148; means any default or
event of default (however defined) under any of the Junior Debt Documents or
any other occurrence, event or condition which, in and of itself or with notice
or the passage of time, or both, would permit Junior Creditor to take action to
accelerate the payment of all or any portion of the Junior Debt.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Junior Default Notice</u>&#148; means a
written notice on behalf of Junior Creditor, Debtor or Guarantor to Lender
pursuant to which Lender is notified of the occurrence of a Junior Default and
provides a reasonably detailed description of such Junior Default.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Junior Note</u>&#148; means the $1,100,000
Convertible Term Note dated December 12, 2003 from Debtor and Guarantor payable
to Junior Creditor.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Lender</u>&#148; has the meaning prescribed
for such term in the introductory paragraph of this Agreement and shall also
refer to, in the future, any other Person that is designated as a lender in a
Senior Credit Agreement and also includes any Person that refinances the Senior
Debt in any replacement or refinancing facility or otherwise.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Person</u>&#148; means any individual, sole
proprietorship, partnership, limited liability company, joint venture, trust,
unincorporated organization, association, corporation, governmental authority,
or any other entity.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Plan</u>&#148; means any plan of partial or
complete liquidation, reorganization, readjustment, arrangement, composition or
extension, whether in a Proceeding or otherwise.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Proceeding</u>&#148; means any (a) insolvency,
bankruptcy, receivership, liquidation, reorganization, readjustment,
composition or other similar proceeding related to a Person or its property as
such, (b)&nbsp;proceeding for any liquidation, dissolution or other winding-up
of a Person, voluntary or involuntary, whether or not involving insolvency or
bankruptcy proceedings, or (c) assignment for the benefit of creditors of a
Person.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Purchase Agreement</u>&#148; has the meaning
specified therefor in the Junior Note.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Senior Credit Agreement</u>&#148; means the
certain Loan and Security Agreement dated as of December 19, 2001 among Debtor,
Lender and any successor or replacement credit agreement, including, without
limitation, any replacement credit agreement effected by Debtor with any other
Person in any refinancing of and/or increases to the Senior Debt, as any of the
foregoing may be modified, amended, renewed, extended, restated, supplemented
or otherwise modified from time to time.&#160;
References to &#147;the Senior Credit Agreement&#148; shall refer to each and
every Senior Credit Agreement, as any of the forgoing may be modified, amended,
renewed, extended, restated, supplemented or otherwise modified from time to
time.</font></p>

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<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Senior Creditor Collateral</u>&#148; means all
property of Debtor or Guarantor, now owned or hereafter acquired, in which any
Senior Creditor Liens are granted pursuant to the Senior Debt Documents, and
all proceeds thereof.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Senior Creditor Liens</u>&#148; means any and
all liens, security interests, mortgages or other interests held by Lender, now
or hereafter existing, in the Senior Creditor Collateral, pursuant to a Senior
Credit Agreement, and any and all other liens, security interests, mortgages or
other interests, if any, at any time held or claimed by Lender in any property
of Debtor.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Senior Debt</u>&#148; means any and all of the
following, now or hereafter existing or arising:&#160; (a)&nbsp;all principal of, and premium, if any, and interest on,
the Senior Loans (including, without limitation, any interest accruing thereon
at the legal rate after the commencement of any Proceeding and any additional
interest that would have accrued thereon but for the commencement of such
Proceeding), (b) all reimbursement and other obligations under or in connection
with any letter of credit issued by Lender or any affiliate of Lender for the
benefit of Debtor or Guarantor, (c) all obligations of Debtor or Guarantor
under or in respect of any Hedging Agreement (as defined by the Senior Credit Agreement),
(d) all other indebtedness, obligations and liabilities of Debtor or Guarantor
to Lender, whether now existing or hereafter incurred or created, under or with
respect to any Senior Debt Document, (including, without limitation, claims for
indemnity or damages arising under or with respect to the Senior Debt
Documents), (e) all indebtedness and obligations arising in connection with any
refinancings, replacements or increases of any of the foregoing, whether with
Lender or another Person and whether in the same, lesser or greater amount, and
(f) any amendments, modifications or refinancings of any of the foregoing.&#160; Without limiting the extent and generality
of the forgoing, &#147;Senior Debt&#148; includes all indebtedness and obligations from
time to time included within the &#147;Obligations&#148; as defined by the Senior Credit
Agreement (which definition is incorporated herein by reference), as may be
amended, modified or refinanced.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Senior Debt Documents</u>&#148; means,
collectively, the Senior Credit Agreement, the &#147;Guaranty&#148; of Guarantor referred
to therein, and any and all agreements, instruments or documents now existing
or hereafter executed in connection with the Senior Debt, pursuant to which the
person executing same agrees to pay, guarantees or assures payment and/or
performance of any Senior Debt or grants or purports to grant any Senior
Creditor Liens, and all other documents and instruments evidencing or
pertaining to all or any portion of the Senior Debt, in each case as the same
may be modified, amended, renewed, extended, restated, supplemented, refinanced
or otherwise modified from time to time.&#160;
&#147;Senior Debt Documents&#148; includes any of the foregoing agreements,
instruments or documents executed or entered into by Debtor or Guarantor after
the commencement of a Proceeding.&#160;
Without limiting the extent and generality of the forgoing, &#147;Senior Debt
Documents&#148; includes all &#147;Loan Documents&#148; as defined by the Senior Credit
Agreement (which definition is incorporated herein by reference).</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Senior Default</u>&#148; means any &#147;Default&#148;
as defined by the Senior Credit Agreement (which definition is incorporated
herein by reference) or any default (howsoever defined) under any replacement
or refinancing facility.</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 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;">4</font></p>


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

</font></div>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Senior Event of Default</u>&#148; means any
&#147;Event of Default&#148; as defined by the Senior Credit Agreement (which definition
is incorporated herein by reference) or any event of default (howsoever
defined) under any replacement or refinancing facility.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Senior Loans</u>&#148; means all &#147;Advances&#148; as
defined by the Senior Credit Agreement (which definition is incorporated herein
by reference), outstanding from time to time, and any loans constituting Senior
Debt made in any replacement or refinancing facility, whether with Lender or with
any other Person, and whether in the same, lesser or greater amount as the
Advances.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Senior Payment Event of Default</u>&#148;
means any Senior Event of Default arising from default in the payment of any
Senior Debt, whether of principal, accrued interest or fees, costs or expenses,
as the same becomes due and payable, or at final maturity or by acceleration.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Subordinated Guaranty</u>&#148; means any
guaranty of the Junior Debt made by a guarantor who is also a guarantor of the
Senior Debt.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;<u>Subsidiary</u>&#148; has the meaning
prescribed for such term as defined by the Senior Credit Agreement (which
definition is incorporated herein by reference).</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">2.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Junior
Debt Subordination</u>.&#160; Until all
Senior Debt shall first be Indefeasibly Paid and the Commitment terminated,
Junior Creditor agrees, for itself and each holder of the Junior Debt
transferred by Junior Creditor, and its successors and assigns, that the Junior
Debt hereby is expressly subordinated and junior in right of payment and claim
to the prior payment of all Senior Debt in the manner and to the extent set
forth in this Agreement <u>provided</u>, <u>however</u>, that: (i) subject to <u>Sections
2(a)</u>, <u>2(b)</u> and <u>2(c)</u> below, Debtor and Guarantor may pay, and
the holders of the Junior Debt may take, receive and retain (x) accrued
interest under the Junior Note as scheduled by the Junior Note on the Effective
Date and (y) regularly scheduled payments (not prepayments) of principal under
the Junior Note as scheduled by the Junior Note on the Effective Date; and (ii)
the indebtedness represented by the Junior Note may be converted into common
stock of the Guarantor, as provided by the Junior Note on the Effective Date; <u>provided</u>,
<u>however</u>, that if a Change of Control (as defined in the Senior Credit
Agreement) results therefrom or from the exercise of the &#147;Warrant&#148; referred to
in the Purchase Agreement the consequences thereof shall be as provided in the
Senior Credit Agreement.</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="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Upon
the occurrence of a Senior Payment Event of Default then, unless and until such
Senior Payment Event of Default shall have been remedied or waived in writing
by Lender, no direct or indirect payment, whether in cash, property or
securities or by set-off or otherwise (but excluding Equally Subordinate
Securities to the extent provided by the <u>proviso</u> to <u>Section&nbsp;2(c)(ii)</u>)
shall be paid by Debtor or Guarantor or taken, received or retained by Junior
Creditor, on account of any Junior Debt, or as a sinking fund for any Junior
Debt, or by reason of any Subordinated Guaranty or the subordination of any
other indebtedness to any Junior Debt, or in respect of any redemption,
retirement, purchase or other acquisition of any of the Junior Debt.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Upon
the happening of a Senior Default or a Senior Event of Default (other than
under circumstances when the terms of <u>Sections 2(a)</u> or <u>2(c)</u> are
applicable), then, unless</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 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;">5</font></p>


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</font></div>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">and until such Senior Default or Senior Event
of Default shall have been remedied or waived in writing by Lender, no direct
or indirect payment, whether in cash, property or securities or by set-off or
otherwise), including any payment to the holder of any Junior Debt by reason of
any Subordinated Guaranty or the subordination of any indebtedness to any
Junior Debt, shall be paid by Debtor or Guarantor or taken, received or
retained by Junior Creditor, on account of any Junior Debt, or as a sinking
fund for any Junior Debt, or in respect of any redemption, retirement, purchase
or other acquisition of any Junior Debt, during the period of 365 days after
written notice (a &#147;<u>Block Notice</u>&#148;) of such Senior Default or Senior Event
of Default shall have been given by Lender to Debtor and to Junior Creditor, <u>provided,</u>
that upon expiration of such 365 day period and <u>provided</u> that neither <u>Sections&nbsp;2(a)</u>
or <u>2(c)</u> are then applicable, the holders of Junior Debt shall be
entitled to receive such payments in respect of the Junior Debt Documents that
as of such time would otherwise have been allowed to be paid under this
Agreement had no such Block Notice been given.</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="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; In
the event of any Proceeding of Debtor or Guarantor:</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="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; All
Senior Debt shall first be Indefeasibly Paid and the Commitment terminated
before any payment, including without limitation any payment which may be
payable to the holder of any Junior Debt by reason of any Subordinated Guaranty
or the subordination of any indebtedness to any Junior Debt (but excluding
Equally Subordinate Securities to the extent set forth in the proviso to <u>Section
2(c)(ii)</u>) or distribution, whether in cash, securities or other property
from Debtor or Guarantor, shall be made to any holder of any Junior Debt on
account of such Junior Debt.</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="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Until
all Senior Debt shall first be Indefeasibly Paid and the Commitment terminated,
any payment, including without limitation any payment which may be payable to
the holder of any Junior Debt by reason of any Subordinated Guaranty or the
subordination of any indebtedness to any Junior Debt, or distribution of any
kind or character, whether in cash, securities or other property (excluding
Equally Subordinate Securities to the extent set forth in the proviso to this <u>Section&nbsp;2(c)(ii)</u>),
which would otherwise (but for these subordination provisions) be payable or
deliverable in respect of any Junior Debt shall be paid or delivered directly
to Lender for application in payment of the Senior Debt until all Senior Debt
shall have been Indefeasibly Paid in full and the Commitment terminated; <u>provided</u>,
<u>however</u>, that no such delivery to Lender shall be made of stock or
obligations which are issued pursuant to reorganization proceedings or
dissolution or liquidation proceedings, or upon any merger, consolidation,
sale, lease, transfer or other disposal in connection with such Proceeding (any
such event a &#147;<u>Restructuring</u>&#148;), by Debtor or Guarantor as reorganized, or
by an entity succeeding to Debtor or Guarantor or acquiring its property and
assets, as the case may be, if such stock or obligations are Equally
Subordinate Securities and Lender shall have received debt or equity securities
that constitute Equally Senior Securities (or any combination thereof) in
substitution for the Senior Debt as part of such Restructuring in an aggregate
principal amount equal to the aggregate principal amount of the Senior Debt
immediately prior to such Restructuring.</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 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;">6</font></p>


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

</font></div>

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

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Junior
Creditor shall retain the right to file a proof of claim, to vote and to
otherwise act in any Proceeding (including, without limitation, the right to
vote to accept or reject any Plan proposed in any Proceeding), <u>provided</u>,
that Junior Creditor shall not vote with respect to any such Plan or take any
other action in any way so as to contest (i)&nbsp;the validity, enforceability
or priority of the Senior Debt or the Senior Liens or (ii) the enforceability
of any Senior Debt Document or this Agreement; and <u>provided</u>, further,
that in the event that Junior Creditor fails to vote any claim in respect of
any Junior Debt in connection with any Proceeding prior to fifteen (15)
Business Days before the expiration of the time to vote any such claim, then
Lender is hereby irrevocably authorized to have the nonexclusive right (but not
the obligation) to vote such claim, and is hereby authorized to vote such claim
for and on behalf of Junior Creditor; <u>provided,</u> that if following any such
vote by Lender, Junior Debtor timely votes such claim then such vote by Junior
Debtor shall be deemed to control and supercede any such previous vote by
Lender and, upon the written request of Junior Creditor, Lender will withdraw
such previous vote.</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="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If
Junior Creditor does not file a proper claim, proof of debt, amendment of proof
of debt, petition or other document as shall be necessary in order to have such
Junior Debt allowed in any such Proceeding and in the form required in any such
Proceeding prior to fifteen (15) Business Days before the expiration of the
time to file such claim, proof of debt, amendment of proof of debt, petition or
other document, then Lender is hereby irrevocably authorized to have the
nonexclusive right (but not the obligation) to file, and is hereby authorized
to file, an appropriate claim, proof of debt, amendment for and on behalf of
such holder of Junior Debt, <u>provided,</u> that if following any filing of
any such claim, proof of debt or amendment, Junior Debtor timely files a proper
claim, proof of debt or amendment, then such filing by Junior Debtor shall be
deemed to control and supercede any such previous filing by Lender and, upon
the written request of Junior Creditor, Lender will withdraw such previous
filing.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
failure of Debtor to make any payment with respect to the Junior Debt by reason
of the operation of this <u>Section 2</u> shall not be construed as preventing
the occurrence of a Junior Default under the applicable Junior Debt Documents
or the acceleration of the Junior Debt as a result thereof.</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="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Lien
Priorities</u>.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
Senior Creditor Liens and all rights of any holder of the Senior Creditor Liens
in and to the Senior Creditor Collateral are and shall be first, senior and
prior to any liens, security interests or other rights at any time claimed by
Junior Creditor in any property of Debtor or Guarantor.&#160; Without limiting the foregoing, Junior
Creditor hereby expressly subordinates to the Senior Creditor Liens all
security interests, liens, pledges, mortgages and other rights in any and all
property of Debtor or Guarantor arising under the Junior Debt Documents.</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 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;">7</font></p>


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

</font></div>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
priorities agreed to and established by this <u>Section 3</u> are applicable
irrespective of the manner or order of creation, attachment or perfection, the
time or order of filing of any financing statement or the time of giving or
failure to give any notice, or of any other priority that might otherwise exist
under applicable law exclusive of this Agreement.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">4.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Limitation
on Actions, Remedies</u>.&#160; Junior
Creditor agrees, and each other holder of any Junior Debt, by their acceptance
of any instrument evidencing any Junior Debt, agrees that:</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="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Until
the Senior Debt is Indefeasibly Paid and the Commitment terminated it will not,
without the prior written consent of Lender (i) at any time when any Block
Notice (as defined in <u>Section 2(b)</u>) shall be effective under <u>Section
2(b)</u> or under circumstances when the terms of <u>Sections 2(a)</u> or <u>2(c)</u>
are applicable, commence, prosecute or participate in any administrative, legal
or equitable action against Debtor or Guarantor to collect or enforce any
Junior Debt, <u>provided</u>, that notwithstanding the foregoing but otherwise
at all times subject to the terms of this Agreement, <u>clause (i)</u>
preceding shall not prohibit Junior Creditor from (A) filing suit and obtaining
a judgment on the Junior Debt at any time after Lender has filed suit to
collect the Senior Debt or taken action to foreclose or enforce any Senior
Creditor Liens, or (B)&nbsp;taking any action specifically permitted by <u>Sections
2(c)(iii)</u> or <u>2(d)</u>; (ii) at any time commence, prosecute, or
participate in commencing or prosecuting, any Proceeding; (iii) at any time
take any action to enforce or exercise any remedies (whether pursuant to the
Junior Debt Documents or otherwise) against or in respect of any property of
Debtor or Guarantor; or (iv)&nbsp;enforce or otherwise give effect to any
requirements in the Junior Debt Documents that requires Junior Creditor&#146;s consent
to or to approval of any actions of Debtor or Guarantor that is not prohibited
by the Senior Credit Agreement.</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="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; If,
in violation of the provisions herein set forth, Junior Creditor shall
commence, prosecute or participate in any suit, action, case or Proceeding
against or with respect to Debtor or Guarantor, Debtor or Guarantor may
interpose as a defense or plea the provisions set forth herein, and Lender may
intervene and interpose such defense or plea in its own name or in the name of
Debtor or Guarantor, and Lender may interpose as a defense or plea the
provisions set forth herein, and shall, in any event, be entitled to restrain
the enforcement of the payment provisions of the Junior Debt, or of remedies in
respect of property of Debtor or Guarantor included in the Senior Creditor
Collateral in its own name or in the name of Debtor or Guarantor, in the same
suit, action, case or Proceeding or in any independent suit, action, case or
Proceeding, to the extent any such enforcement would be in violation of this
Agreement.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Prepayments</u>.&#160; Until the Senior Debt is Indefeasibly Paid
in full and the Commitment terminated, Debtor and Guarantor agree that they
will not make, and Junior Creditor agrees that it will not request, demand or
accept and retain, any prepayment of the Junior Debt, or any portion thereof
(whether of principal, interest or otherwise) other than prepayments in shares
of common stock (subject to the limitations contained in Section 2), without
the prior written consent of Lender.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">6.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Turnover
of Improper Payments</u>.&#160; If any
payment or distribution of any character, whether in cash, securities or other
property shall be received by a Junior Creditor in contravention of any of the
terms hereof and before all the Senior Debt shall have been Indefeasibly Paid
and the</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 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;">8</font></p>


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

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Commitment terminated, such
payment or distribution or security shall be received in trust for the benefit
of, and shall be paid over or delivered and transferred to, Lender for application
to the payment of all Senior Debt remaining unpaid, to the extent necessary to
pay all such Senior Debt in full.&#160; In
the event of the failure of such Junior Creditor to endorse or assign any such
payment, distribution or security, Lender is hereby irrevocably authorized to
endorse or assign the same.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">7.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No
Prejudice or Impairment</u>.</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="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
rights of Lender and any other holders of any Senior Debt as against the
holders of any Junior Debt, and the rights and obligations of Junior Creditor,
in each case as provided by the terms of this Agreement, shall remain in full
force and effect without regard to, and shall not be impaired by any
circumstance, including without limitation:</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="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(i) &#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any
extension or indulgence in respect of any payment or prepayment of any Senior
Debt or any part thereof;</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="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(ii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any
amendment, modification, increase, refinancing or waiver of, or addition or
supplement to, or deletion from, or compromise, consent or other action in
respect of, any Senior Debt or any Senior Debt Document;</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="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iii)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any
exercise or non-exercise by the holder of any Senior Debt of any right, power,
privilege or remedy under or in respect of such Senior Debt or the Senior Debt
Documents, any waiver of any such right, power, privilege or remedy or of any
Senior Default or Senior Event of Default, any receipt by the holder of any
Senior Debt of any security, or any failure by such holder to perfect a
security interest in, or any release by such holder of, any of the Senior
Creditor Liens;</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="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(iv)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; any
merger or consolidation of Debtor or Guarantor into or with any other Person,
or any sale, lease or transfer of any or all of the assets of Debtor or
Guarantor to any other Person;</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<p style="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(v)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; consent
to any use of cash collateral by, or to the extension of credit to, Debtor or
Guarantor in any Proceeding; or</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="margin:0in 0in .0001pt 1.0in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(vi)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; absence
of any notice to or knowledge by Junior Creditor of the existence or occurrence
of any of the matters or events set forth in the foregoing <u>subdivisions (i)</u>
through <u>(v)</u>.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Junior
Creditor unconditionally waives, for the benefit of any holder of Senior Debt
(i) notice of any of the matters referred to in <u>Section 7(a)</u>, (ii) all
notices which may be required, whether by statute, rule of law or otherwise, to
preserve any rights of any holder of any Senior Debt against Debtor or
Guarantor, including, without limitation, any demand, presentment and protest,
proof of notice of nonpayment, notice of intent to accelerate, notice of
acceleration, and notice of any failure by Debtor or Guarantor to perform and
comply with any covenant, agreement, term or condition of the Senior Debt or
the Senior Debt Documents, (iii) any right to require enforcement, assertion or
exercise by Lender of any right, power, privilege or remedy conferred in the
Senior Debt</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 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;">9</font></p>


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

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

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Documents, (iv) any requirement
of diligence on the part of Lender, (v) any requirement on the part of Lender
to mitigate damages resulting from any default under any Senior Debt or the
Senior Debt Documents and (vi)&nbsp;notice of any sale, transfer or other
disposition by Lender of any Senior Debt or Senior Creditor Lien.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; The
obligations of Junior Creditor under this Agreement shall continue to be
effective, or be reinstated, as the case may be, if at any time any payment in
respect of any Senior Debt is rescinded or must otherwise be restored or
returned by the holder of such Senior Debt upon the occurrence of any
Proceeding, or upon the appointment of a receiver, intervenor or conservator
of, or trustee or similar officer for, Debtor or any substantial part of
Debtor&#146;s property, or otherwise, all as though such payment had not been made.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">8.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Debtor&#146;s
Obligations Absolute</u>.&#160; Nothing
contained herein shall impair, as between Debtor and Junior Creditor, the
obligations evidenced by the Junior Debt, subject to the rights of the holders
of the Senior Debt as set forth in this Agreement.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">9.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Subrogation</u>.&#160; No Junior Creditor shall exercise any right
of subrogation in respect of the Senior Debt or Senior Creditor Liens until
such time as all Senior Debt shall be Indefeasibly Paid and the Commitment
terminated.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Legend
on Junior Debt</u>.&#160; Debtor, Guarantor
and Junior Creditor shall cause each agreement, document or instrument at any
time evidencing any Junior Debt or Junior Creditor Liens, to contain the
following legend (or any other legend acceptable to Lender) conspicuously noted
on the face thereof:</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="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&#147;THIS [CONVERTIBLE TERM NOTE] [SECURITY
AGREEMENT] [SECURITIES PURCHASE AGREEMENT] IS SUBJECT TO THE SUBORDINATION
PROVISIONS SET FORTH IN THE CERTAIN SUBORDINATION AND INTERCREDITOR AGREEMENT
DATED DECEMBER 12, 2003, AMONG EACH OF EQUINOX BUSINESS CREDIT CORPORATION (&#147;<u>DEBTOR</u>&#148;),
EQUIFIN, INC., WELLS FARGO FOOTHILL, INC. AND LAURUS MASTER FUND, LTD., A COPY
OF WHICH IS ON FILE AT THE OFFICE OF DEBTOR AND IS AVAILABLE FOR INSPECTION AT
SUCH OFFICE.&#148;</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Other
Subordination Agreements</u>.&#160; Until all
Senior Debt shall have been Indefeasibly Paid and the Commitment terminated,
Junior Creditor shall not, directly or indirectly, agree to subordinate any
Junior Debt to any indebtedness, obligations or liabilities other than the
Senior Debt.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">12.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Modifications
to Senior Debt or Junior Debt</u>.&#160; The
Senior Debt Documents may be modified, amended, supplemented, restated or
replaced, and any indebtedness or obligations thereunder may be renewed,
extended, increased, rearranged or refinanced without the prior consent of
Junior Creditor.&#160; No modification,
amendment, supplement, restatement or replacement of the Junior Debt or the
Junior Debt Documents which (i) increases the principal of any Junior Debt,
(ii)&nbsp;increases the interest rate payable under any Junior Debt, (iii)
shortens the time for payment of any amount payable by Debtor or Guarantor
under any Junior Debt Documents, (iv) causes Debtor&#146;s</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 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;">10</font></p>


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

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

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or Guarantor&#146;s performance
obligations under the Junior Debt Documents to be materially more burdensome to
Debtor or Guarantor than exist as of the Effective Date or (v) grants any
security interest or lien in any property (other than any such security
interest or lien granted on the Effective Date), shall be effective without the
prior consent of Lender.&#160;
Notwithstanding the foregoing or anything else to the contrary contained
herein, Lender hereby consents to Junior Debt in the principal amount of up to
$3,000,000 and the Junior Debt Documents to be issued in connection therewith,
as is contemplated by that certain letter agreement, dated as of the date
hereof, among Junior Creditor, Debtor and Guarantor which provides for
revolving loans by Junior Creditor of up to such amount.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">13.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No
Conflict</u>.&#160; Junior Creditor agrees
that the Senior Credit Agreement, and the execution, delivery and performance
thereof by Debtor, does not breach, conflict with or create any default or
event of default under any of the Junior Debt Documents.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">14.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Continued
Effectiveness of this Agreement</u>.&#160;
The provisions of this Agreement are intended to and shall be
enforceable at all times, notwithstanding the commencement or continuation of
any Proceeding.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">15.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>No
Contest</u>. Junior Creditor agrees that it will not at any time contest the
validity, perfection, priority or enforceability of the Senior Debt, the Senior
Debt Documents or the Senior Creditor Liens.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">16.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Representations
and Warranties</u>.</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="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Junior
Creditor hereby represents and warrants to Lender that this Agreement, when
executed and delivered, will constitute the valid and legally binding
obligation of Junior Creditor, enforceable in accordance with its terms, except
as enforceability may be limited by the effect of any applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors&#146;
rights generally and general principles of equity.</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="margin:0in 0in .0001pt .5in;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Each
of Debtor and Guarantor hereby represents and warrants to Lender and Junior
Creditor as follows: (i) it has the requisite power and authority to enter
into, execute, deliver and carry out the terms of this Agreement, all of which
have been duly authorized by all proper and necessary action and are not
prohibited by its organizational documents, (ii) this Agreement, when executed
and delivered, will constitute the valid and legally binding obligation of it
enforceable in accordance with its terms, except as enforceability may be
limited by the effect of any applicable bankruptcy, insolvency, reorganization,
moratorium or similar laws affecting creditors&#146; rights generally and general
principles of equity, (iii) no Junior Default is in existence as of the
Effective Date and (iv) &nbsp;no Senior Default or Senior Event of Default is
in existence as of the Effective Date.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">17.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Junior
Default Notice</u>. Junior Creditor and Debtor will deliver to Lender a Junior
Default Notice upon the occurrence of Junior Default, and shall notify Lender
in the event any such Junior Default thereafter is cured or waived.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">18.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Cumulative
Rights, No Waivers</u>.&#160; Each and every
right, remedy and power granted to Lender under this Agreement shall be
cumulative and in addition to any other right, remedy or power</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 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;">11</font></p>


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

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

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
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</font>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">granted under this Agreement or
the Senior Debt Documents and may be exercised by Lender, from time to time,
concurrently or independently and as often and in such order as Lender may
determine in its discretion.&#160; Any
failure or delay by Lender in exercising any such right, remedy or power, or
abandonment or discontinuance of steps to enforce the same, shall not operate
as a waiver thereof or affect the rights of Lender thereafter to exercise the
same, and any single or partial exercise of any such right, remedy or power
shall not preclude any other or further exercise thereof or the exercise of any
other right, remedy or power, and no such failure, delay, abandonment or single
or partial exercise of the rights of Lender hereunder shall be deemed to
establish a custom or course of dealing or performance among the parties
hereto.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">19.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Modification</u>.&#160; Any waiver of any provision of this
Agreement, or any consent to any departure by Lender or Junior Creditor
therefrom, shall not be effective in any event unless the same is in writing
and signed by Lender and on behalf of Junior Creditor, and then such waiver or
consent shall be effective only in the specific instance and for the specific
purpose given.&#160; This Agreement may not
be amended or modified except pursuant to an agreement in writing entered into
by Lender, Junior Creditor, Debtor and Guarantor.&#160; Any notice to or demand upon Junior Creditor not specifically
required of Lender hereunder shall not entitle Junior Creditor to any other or
further notice or demand in the same, similar or other circumstances unless
specifically required hereunder.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">20.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Additional Documents and Actions</u>. Debtor, Guarantor and Junior Creditor
at any time, and from time to time, after the execution and delivery of this Agreement,
promptly will execute and deliver such further documents and do such further
acts and things as Lender reasonably may request that may be necessary in order
to effect fully the purposes of this Agreement, including, without limitation,
any amendment or restatement of this Agreement.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">21.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>Notices</u>.&#160; Except as otherwise
provided herein, all notices and correspondence hereunder shall be in writing
and sent by certified or registered mail, return receipt requested, or by
overnight delivery service, with all charges prepaid, or by facsimile
transmission, promptly confirmed in writing sent by first-class mail to the
following addresses:</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">&nbsp;</font></p>

<table border="0" cellspacing="0" cellpadding="0" width="80%" style="border-collapse:collapse;margin-left:.5in;width:80.0%;">
 <tr>
  <td width="28%" valign="top" style="padding:0in 0in 0in 0in;width:28.8%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to Junior
  Creditor:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.54%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="67%" valign="top" style="padding:0in 0in 0in 0in;width:67.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Laurus
  Master Fund, Ltd.<br>
  c/o Ironshore Corporate Services Ltd.<br>
  P.O. Box 1234 G.T., Queensgate House,<br>
  South Church Street<br>
  Grand Cayman, Cayman Islands<br>
  Telecopy No.: (345) 949-9877</font></p>
  </td>
 </tr>
 <tr>
  <td width="28%" valign="top" style="padding:0in 0in 0in 0in;width:28.8%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.54%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="67%" valign="top" style="padding:0in 0in 0in 0in;width:67.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="28%" valign="top" style="padding:0in 0in 0in 0in;width:28.8%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to Debtor
  or Guarantor:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.54%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="67%" valign="top" style="padding:0in 0in 0in 0in;width:67.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">c/o Equifin,
  Inc.<br>
  1011 Highway 71<br>
  Spring Lake, New Jersey 07762<br>
  Attention: Walther M. Craig, Jr.<br>
  Telecopy No.: (732) 282-1811</font></p>
  </td>
 </tr>
</table>

<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 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;">12</font></p>


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

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

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='12',FILE='C:\jms\avelayu\03-6618-1\task59538\6618-1-km.htm',USER='avelayutham',CD='Dec 31 11:15 2003' -->
<br clear="all" style="page-break-before:always;">
</font>

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

<table border="0" cellspacing="0" cellpadding="0" width="80%" style="border-collapse:collapse;margin-left:.5in;width:80.0%;">
 <tr>
  <td width="28%" valign="top" style="padding:0in 0in 0in 0in;width:28.8%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">With a copy
  to:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.54%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="67%" valign="top" style="padding:0in 0in 0in 0in;width:67.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Lee A.
  Albanese, Esq.<br>
  St. John &amp; Wayne, L.L.C.<br>
  Two Penn Plaza East<br>
  Newark, New Jersey 07105-2249<br>
  Telecopy No.: (973) 491-3408</font></p>
  </td>
 </tr>
 <tr>
  <td width="28%" valign="top" style="padding:0in 0in 0in 0in;width:28.8%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.54%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="67%" valign="top" style="padding:0in 0in 0in 0in;width:67.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="28%" valign="top" style="padding:0in 0in 0in 0in;width:28.8%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">If to
  Lender:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.54%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="67%" valign="top" style="padding:0in 0in 0in 0in;width:67.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Wells Fargo
  Foothill, Inc.<br>
  2450 Colorado Avenue<br>
  Suite 3000 West<br>
  Santa Monica, California&#160; 90404<br>
  Attn: Business Finance Division Manager<br>
  Fax No. (310) 453-7413<br>
  <br>
  Wells Fargo Foothill, Inc.<br>
  13727 Noel Road<br>
  Suite 1020<br>
  Dallas, Texas&#160; 75240<br>
  Attn:&#160; Loan Portfolio Manager<br>
  Fax No. (972) 387-4375</font></p>
  </td>
 </tr>
 <tr>
  <td width="28%" valign="top" style="padding:0in 0in 0in 0in;width:28.8%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.54%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="67%" valign="top" style="padding:0in 0in 0in 0in;width:67.66%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="28%" valign="top" style="padding:0in 0in 0in 0in;width:28.8%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">with copies
  to:</font></p>
  </td>
  <td width="3%" valign="bottom" style="padding:0in 0in 0in 0in;width:3.54%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="67%" valign="top" style="padding:0in 0in 0in 0in;width:67.66%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">Jenkens
  &amp; Gilchrist<br>
  A Professional Corporation<br>
  1445 Ross Avenue, Suite 3200<br>
  Dallas, Texas 75202<br>
  Attn:&#160; Daniel C. Garner<br>
  Telecopy No. (214) 855-4300</font></p>
  </td>
 </tr>
</table>

<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;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">or in any case, to such other address as the
party addressed shall have previously designated by written notice to the
serving party, given in accordance with this <u>Section 21</u>.&#160; All such notices and correspondence shall be
deemed given (a) if sent by certified or registered mail, three (3) Business
Days after being postmarked, (b) if sent by overnight delivery service, when
received at the above stated addresses and (c) if sent by facsimile
transmission, when receipt of such transmission is acknowledged.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">22.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Severability</u>.&#160; In case any provision in or obligation under
this Agreement shall be invalid, illegal or unenforceable in any jurisdiction,
the validity, legality and enforceability of the remaining provisions or
obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">23.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Assignment
of Junior Debt</u>.&#160; Neither the Junior
Debt, nor any portion thereof, may be transferred or assigned to any Person
unless such transferee or assignee agrees in writing, in form and substance
reasonably satisfactory to Lender, to be bound by this Agreement.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">24.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Successors
and Assigns</u>.&#160; This Agreement shall
be binding upon and inure to the benefit of the successors and assigns of
Lender and Junior Creditor and shall be binding upon the successors and assigns
of Debtor and Guarantor.</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 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;">13</font></p>


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

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

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='13',FILE='C:\jms\avelayu\03-6618-1\task59538\6618-1-km.htm',USER='avelayutham',CD='Dec 31 11:15 2003' -->
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</font>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">25.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Counterparts</u>.&#160; This Agreement may be executed in any number
of counterparts and by the different parties hereto in separate counterparts,
each of which when so executed and delivered shall be valid as an original.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">26.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Defines
Rights of Creditors</u>.&#160; Except as
provided in <u>Section 4(b)</u>, the provisions of this Agreement are solely
for the purpose of defining the relative rights of Junior Creditor, on the one
hand, and Lender, on the other hand, and shall not be deemed to create any
rights or priorities in favor of any other Person, including, without
limitation, Debtor or any debtor-in-possession or trustee in bankruptcy in any
Proceeding.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">27.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Conflict</u>.&#160; In the event of any conflict between any
term, covenant or condition of this Agreement and any term, covenant or
condition of any of the Junior Debt Documents, the provisions of this Agreement
shall control and govern.&#160; For purposes
of this Section, to the extent that any provisions of any of the Junior Debt
Documents provide rights, remedies and benefits to Lender that exceed the
rights, remedies and benefits provided to Lender under this Agreement, such
provisions of the applicable Junior Debt Documents shall be deemed to
supplement (and not to conflict with) the provisions hereof.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">28.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Headings
Descriptive</u>.&#160; The headings of the
several sections and subsections of this Agreement are inserted for convenience
only and shall not in any way affect the meaning or construction of any
provision of this Agreement.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">29.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Termination</u>.&#160; This Agreement shall terminate upon the
Indefeasible Payment of the Senior Debt and termination of the Commitment.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">30.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
<u>JURY TRIAL</u>.&#160; EACH PARTY HERETO
HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING
OUT OF THIS AGREEMENT OR ANY TRANSACTIONS RELATED HERETO.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">31.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>GOVERNING
LAW</u>.&#160; THIS AGREEMENT SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF CALIFORNIA.</font></p>

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><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:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">32.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Execution;
Entire Agreement</u>.&#160; A telecopy or
other electronic transmission of any executed counterpart of this Agreement
shall be deemed valid as an original.</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="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">33.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Delivery
of Funds</u>.&#160; Once all Senior Debt is
Indefeasibly Paid and the Commitment terminated, and provided that no contrary
direction is made in any Proceeding or by any court or other Governmental
Authority (as defined in the Senior Credit Agreement), Debtor and Guarantor
hereby irrevocably authorize and direct Lender to pay over to Junior Creditor
any proceeds of Senior Creditor Collateral thereafter received by Lender; <u>provided</u>,
<u>however</u>, that Lender shall have no duty to do so, shall have no
liability to Junior Creditor, Debtor or Guarantor for failure to so pay over
such proceeds.&#160; Each of Debtor,
Guarantor and Junior Lender hereby agrees to indemnify Lender and hold Lender
harmless from any loss, cost or expense incurred by Lender in connection with
any of the foregoing.</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 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;">14</font></p>


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

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

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='14',FILE='C:\jms\avelayu\03-6618-1\task59538\6618-1-km.htm',USER='avelayutham',CD='Dec 31 11:15 2003' -->
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</font>

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

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">THIS WRITTEN AGREEMENT REPRESENTS THE FINAL
AGREEMENT AMONG THE PARTIES REGARDING THE SUBJECT MATTER HEREOF AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.&#160; THERE ARE NO
ORAL AGREEMENTS AMONG THE PARTIES.</font></p>

<p style="margin:0in 0in .0001pt .5in;text-autospace:none;"><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;">[Remainder of page intentionally left blank.]</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 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;">15</font></p>


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

</font></div>

<font size="2" face="Times New Roman" style="font-size:10.0pt;">
<!-- SEQ.=1,FOLIO='15',FILE='C:\jms\avelayu\03-6618-1\task59538\6618-1-km.htm',USER='avelayutham',CD='Dec 31 11:15 2003' -->
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</font>

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

<p style="margin:0in 0in .0001pt;text-autospace:none;text-indent:.5in;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">IN WITNESS WHEREOF, the parties have entered
into this Agreement as of the Effective Date.</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>

<table border="0" cellspacing="0" cellpadding="0" width="100%" style="border-collapse:collapse;width:100.0%;">
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LENDER:</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">WELLS FARGO
  FOOTHILL, INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.88%;">
  <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="41%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:41.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.04%;">
  <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="39%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:39.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <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="40%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:40.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <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="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EQUINOX
  BUSINESS CREDIT CORP</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.88%;">
  <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="41%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:41.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.04%;">
  <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="39%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:39.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <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="40%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:40.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">GUARANTOR:</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">EQUIFIN,
  INC.</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.88%;">
  <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="41%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:41.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.04%;">
  <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="39%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:39.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <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="40%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:40.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">JUNIOR
  CREDITOR:</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="margin:0in 0in .0001pt;text-autospace:none;"><font size="2" face="Times New Roman" style="font-size:10.0pt;">LAURUS
  MASTER FUND, LTD.</font></p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="44%" colspan="4" valign="top" style="padding:0in 0in 0in 0in;width:44.4%;">
  <p style="font-size:10.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="2%" valign="top" style="padding:0in 0in 0in 0in;width:2.88%;">
  <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="41%" colspan="3" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:41.52%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="5%" colspan="3" valign="top" style="padding:0in 0in 0in 0in;width:5.04%;">
  <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="39%" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:39.36%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr>
  <td width="55%" valign="top" style="padding:0in 0in 0in 0in;width:55.6%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
  <td width="4%" colspan="2" valign="top" style="padding:0in 0in 0in 0in;width:4.32%;">
  <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="40%" colspan="2" valign="top" style="border:none;border-bottom:solid windowtext .5pt;padding:0in 0in 0in 0in;width:40.08%;">
  <p style="font-size:1.0pt;margin:0in 0in .0001pt;text-autospace:none;">&nbsp;</p>
  </td>
 </tr>
 <tr height="0">
  <td width="401" style="border:none;"></td>
  <td width="21" style="border:none;"></td>
  <td width="10" style="border:none;"></td>
  <td width="5" style="border:none;"></td>
  <td width="284" style="border:none;"></td>
 </tr>
</table>

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