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<SEC-DOCUMENT>0000950123-10-111005.txt : 20101206
<SEC-HEADER>0000950123-10-111005.hdr.sgml : 20101206
<ACCEPTANCE-DATETIME>20101206080025
ACCESSION NUMBER:		0000950123-10-111005
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20101203
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20101206
DATE AS OF CHANGE:		20101206

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			GRAHAM CORP
		CENTRAL INDEX KEY:			0000716314
		STANDARD INDUSTRIAL CLASSIFICATION:	GENERAL INDUSTRIAL MACHINERY & EQUIPMENT [3560]
		IRS NUMBER:				161194720
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0331

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-08462
		FILM NUMBER:		101233043

	BUSINESS ADDRESS:	
		STREET 1:		20 FLORENCE AVE
		CITY:			BATAVIA
		STATE:			NY
		ZIP:			14020
		BUSINESS PHONE:		5853432216

	MAIL ADDRESS:	
		STREET 1:		20 FLORENCE AVENUE
		CITY:			BATAVIA
		STATE:			NY
		ZIP:			14020
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>l41251e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
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<TITLE>e8vk</TITLE>
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<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<DIV align="center" style="font-size: 14pt; margin-top: 12pt"><B>United States<BR>
Securities and Exchange Commission</B>
</DIV>


<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<DIV align="center" style="font-size: 18pt; margin-top: 12pt"><B>FORM 8-K</B>
</DIV>


<DIV align="center" style="font-size: 12pt; margin-top: 12pt"><B>Current Report Pursuant to<BR>
Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>December&nbsp;3, 2010</B><BR>
<B>(Date of Report)</B></DIV>

<DIV align="center" style="font-size: 24pt; margin-top: 12pt"><B>GRAHAM CORPORATION</B>
</DIV>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR></TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B><BR>
(State of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>1-8462</B><BR>
(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>16-1194720</B><BR>
(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>20 Florence Avenue, Batavia, New York</B><BR>
(Address of principal executive offices)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>14020</B><BR>
(Zip Code)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><B>(585)&nbsp;343-2216</B><BR>
(Registrant&#146;s telephone number, including area code)</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt"><DIV style="width: 30%; border-bottom: 1px solid #000000; FONT-size: 1px">&nbsp;</DIV></DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation
of the registrant under any of the following provisions (see General Instruction A.2. below):
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
</DIV>


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>













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<DIV style="font-family: 'Times New Roman',Times,serif">








<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;3, 2010 Graham Corporation (the &#147;Company&#148;) entered into a Loan Agreement (the &#147;New
Loan Agreement&#148;) with Bank of America, N.A. (the &#147;Bank&#148;). The New Loan Agreement provides the
Company with a $25,000,000 revolving credit facility, expandable at the Company&#146;s option at any
time to up to $50,000,000.  The New Loan Agreement does not provide for
any sublimits on either the issuance of letters of credit or bank guarantees by the Company or its
subsidiaries. The New Loan Agreement has a three year term, with two automatic one year extensions.
The Company entered into the New Loan Agreement in order to support its anticipated working capital
and letter of credit requirements as well as its strategic growth objectives.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;At the Company&#146;s option, amounts outstanding under the New Loan Agreement will bear interest
at either (i)&nbsp;a rate equal to the Bank&#146;s Prime Rate (as defined in the New Loan Agreement); or (ii)
a rate equal to LIBOR plus a margin. The margin will be based upon the Company&#146;s Funded Debt to
EBITDA, each as defined in the New Loan Agreement, and may range from 2.00% to 1.00%. Amounts
available for borrowing under the New Loan Agreement are subject to an unused commitment fee of
between 0.375% to 0.200%, depending on the above ratio. Interest payments under the New Loan
Agreement are due monthly, with the principal balance due upon maturity.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The New Loan Agreement replaces in its entirety that certain Loan Agreement dated December&nbsp;5,
2007 with the Bank (the &#147;Prior Facility&#148;), as amended. Letters of credit and bank guarantees
outstanding under the Prior Facility in the aggregate amount of $15,078,758.50 as of the date of
this Current Report on Form 8-K have been transferred by the Bank to the New Loan Agreement. The
Company did not have any amounts outstanding under the Prior Facility as of the date of this
Current Report on Form 8-K.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under the New Loan Agreement, the Company covenants to maintain a maximum Funded Debt to
EBITDA Ratio (as defined in the New Loan Agreement) of 3.5 to 1 and a Minimum EBIT to Interest
Ratio (as defined in the New Loan Agreement) of 4.0 to 1. The New Loan Agreement also provides that
the Company is permitted to pay dividends without limitation if it maintains a Maximum Funded Debt
to EBITDA Ratio (as defined in the New Loan Agreement) equal to or less than 2.0 to 1 and permits
the Company to pay dividends in an amount equal to 25% of net income if it maintains a Maximum
Funded Debt to EBITDA Ratio (as defined in the New Loan Agreement) of greater than 2.0 to 1. In
addition, the New Loan Agreement contains such representations, warranties, covenants, terms and
conditions as are customary to similar agreements.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Company has granted the Bank a security interest in all the Company&#146;s tangible and
intangible property and has also agreed to pledge to the Bank the Company&#146;s equity interest in its
subsidiaries. The New Loan Agreement also requires the Company&#146;s subsidiaries to act as guarantors
of amounts outstanding under the New Loan Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A copy of the New Loan Agreement is attached to this Current Report on Form 8-K as Exhibit
99.1. A copy of the Trademark Security Agreement Amendment 1 between the Company
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">and the Bank, which was entered into in connection with the New Loan Agreement in order to
provide the Bank with a security interest in all of the Company&#146;s trademarks, is attached to this
Current Report on Form 8-K as Exhibit&nbsp;99.2. The above summary of the terms of the New Loan
Agreement and Trademark Security Agreement Amendment 1 are qualified in their entirety by reference
to the actual text of such agreements, which are incorporated herein by reference.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;1.02. Termination of a Material Definitive Agreement.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The disclosure contained in Item&nbsp;1.01 of this Current Report on Form 8-K is incorporated into
this Item&nbsp;1.02 by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet
Arrangement of a Registrant.</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The disclosure contained in Item&nbsp;1.01 of this Current Report on Form 8-K is incorporated into
this Item&nbsp;2.03 by reference.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="91%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Exhibit</I></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><I>Description</I></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Loan Agreement between Graham Corporation and Bank of America, N.A., dated as of December&nbsp;3,
2010.</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Trademark Security Agreement Amendment 1 between Graham Corporation and Bank of America,
N.A., dated as of December&nbsp;3, 2010.</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><B>SIGNATURES</B>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">Date:  December 6, 2010      &nbsp;</TD>
    <TD colspan="3" align="left"><B>GRAHAM CORPORATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" style="border-bottom: 1px solid #000000" align="left">/s/ Jeffrey Glajch
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Jeffrey Glajch&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Vice President &#151; Finance &#038; Administration<br> and
Chief Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


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<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>l41251exv99w1.htm
<DESCRIPTION>EX-99.1
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit&nbsp;99.1
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">LOAN AGREEMENT
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement dated as of December&nbsp;3, 2010, is between Bank of America, N.A. (the &#147;Bank&#148;) and
Graham Corporation, a corporation formed under the laws of the State of Delaware with offices at 20
Florence Avenue, Batavia, New York 14020 (the &#147;Borrower&#148;).
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>FACILITY NO. 1 &#151; REVOLVING LINE OF CREDIT</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">1.1 <U>Line of Credit Amount</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the availability period described below, the Bank will provide a line of credit to the
Borrower. The amount of the line of credit (the &#147;Facility No.&nbsp;1 Commitment&#148;) is Twenty-five
Million Dollars ($25,000,000).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This is a revolving line of credit. During the availability period, the Borrower may repay
principal amounts and reborrow them so long as the aggregate principal amount outstanding at
any time does not exceed $25,000,000, increased if applicable and as provided in Section&nbsp;1.9,
and reduced as provided in Sections1.7(b) and, if applicable Section&nbsp;1.8.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.2 <U>Availability Period</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The line of credit is available between the date of this Agreement and the date three years after
the date of this Agreement, or such earlier date as the availability may terminate as provided in
this Agreement (the &#147;Facility No.&nbsp;1 Expiration Date&#148;). On the Facility No.&nbsp;1 Expiration Date, such
Facility No.&nbsp;1 Expiration Date will be automatically extended for an additional one-year period
provided that no default, or event or circumstance that with notice or lapse of time or both would
be a default, has occurred that has not been waived in writing by the Bank, and if so extended, on
such extended Facility No.&nbsp;1 Expiration Date such extended Facility No.&nbsp;1 Expiration Date will be
further automatically extended for one additional one-year period provided that no default, or
event or circumstance that with notice or lapse of time or both would be a default, has occurred
that has not been waived in writing by the Bank. References in this Agreement to the &#147;Facility No.
1 Expiration Date&#148; include reference to the Facility No.&nbsp;1 Expiration Date if and as extended under
this Section&nbsp;1.2.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.3 <U>Repayment Terms</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower will pay interest on January&nbsp;1, 2011 and on the first day of each month
thereafter until payment in full of any principal outstanding under this facility.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower will repay in full any principal, interest or other charges outstanding under
this facility no later than the Facility No.&nbsp;1 Expiration Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower may prepay the loans in full or in part at any time.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.4 <U>Interest Rate</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The interest rate is a rate per year equal to the Bank&#146;s Prime Rate plus the Applicable Rate,
each as defined below.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The &#147;Prime Rate&#148; is the rate of interest publicly announced from time to time by the Bank as
its Prime Rate. The Prime Rate is set by the Bank based on various factors, including the
Bank&#146;s costs and desired return, general economic conditions and other factors, and is used as
a reference point for pricing some loans. The Bank may price loans to its customers at,
above, or below the Prime Rate. Any change in the Prime Rate shall take effect at the opening
of business on the day specified in the public announcement of a change in the Bank&#146;s Prime
Rate.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.5 <U>Optional Interest Rates</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Instead of the interest rate based on the rate stated in Section&nbsp;1.4, entitled &#147;Interest Rate,&#148;
above, the Borrower may, from time to time with respect to all or part of the principal amount
</DIV>




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<DIV align="left" style="font-size: 10pt; margin-top: 6pt">outstanding, elect the optional interest rate listed below for this Facility No.&nbsp;1 during interest
periods selected by the Borrower:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The LIBOR Rate (as defined in Section&nbsp;2.2) plus the Applicable Rate, each as defined
below.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The optional interest rate shall be subject to the terms and conditions described later in this
Agreement. Any principal amount bearing interest at an optional rate under this Agreement is
referred to as a &#147;Portion.&#148; Any interest period for an optional interest rate (as described below)
shall expire no later than the Facility No.&nbsp;1 Expiration Date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.6 <U>Applicable Rate</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Applicable Rate shall be the following amounts per annum, based upon the ratio of Funded Debt
to EBITDA (as defined in Section&nbsp;8.3 this Agreement, the &#147;Financial Test&#148;), as set forth in the
most recent compliance certificate (or, if no compliance certificate is required, the Borrower&#146;s
most recent financial statements) received by the Bank as required in the Covenants Sections of
this Agreement. Until the Bank receives the first compliance certificate or financial statement,
the Applicable Rate shall be the amounts indicated for pricing level 5 set forth below:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="52%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="17">Applicable Rate</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="center" colspan="17" style="border-bottom: 1px solid #000000">(in percentage points per annum)</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Funded Debt/</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Unused</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Pricing Level</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">EBITDA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">LIBOR &#043;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Prime Rate &#043;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">Commitment Fee</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap><U>&gt;</U> 3.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">2.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.375</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><U>&gt;</U> 2.25 and &#060; 3.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.350</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><U>&gt;</U> 1.50 and &#060; 2.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.300</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><U>&gt;</U> 1.00 and &#060; 1.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.250</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#060; 1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">0</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.200</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Applicable Rate shall be in effect from the date the most recent compliance certificate or
financial statement is received by the Bank until the date the next compliance certificate or
financial statement is received; provided, however, that if the Borrower fails to timely deliver
the next compliance certificate or financial statement, the Applicable Rate from the date such
compliance certificate or financial statement was due until the date such compliance certificate or
financial statement is received by the Bank shall be the highest pricing level set forth above.
If, as a result of any restatement of or other adjustment to the financial statements of the
Borrower or for any other reason, the Borrower or the Bank determines that (i)&nbsp;the Financial Test
as calculated by the Borrower as of any applicable date was inaccurate and (ii)&nbsp;a proper
calculation of the Financial Test would have resulted in higher pricing for such period, the
Borrower shall immediately and retroactively be obligated to pay to the Bank an amount equal to the
excess of the amount of interest and fees that should have been paid for such period over the
amount of interest and fees actually paid for such period. The Bank&#146;s acceptance of payment of
such amounts will not constitute a waiver of any default under this Agreement. The Borrower&#146;s
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">obligations under this Section shall survive the termination of this Agreement and the repayment of
all other obligations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.7 <U>Letters of Credit; Bank Guarantees</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>During the availability period, at the request of the Borrower, the Bank will issue:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Letters of credit; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Guarantees issued by the Bank&#146;s Shanghai, China branch (&#147;Bank Guarantees&#148;) of
obligations of Borrower&#146;s Chinese subsidiary, Graham Vacuum and Heat Transfer
Technology (Suzhou) Co., Ltd. (&#147;Graham China&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The amount of the letters of credit outstanding at any one time (including the drawn and
unreimbursed amounts of the letters of credit) plus 105% of the amount of Bank Guarantees may
not exceed the Facility No.&nbsp;1 Commitment. In calculating the principal amount outstanding
under the Facility No.&nbsp;1 Commitment, the calculation shall include the amount of any letters
of credit outstanding (including the drawn and unreimbursed amounts of the letters of credit)
plus 105% of the outstanding amount of Bank Guarantees. The Bank will revalue the outstanding
amount of Bank Guarantees from time to time at its discretion. If as a result of currency
fluctuations the value in US Dollars of outstanding Bank Guarantees has increased by more than
5%, the amount available under the Facility No.&nbsp;1 Commitment shall be correspondingly reduced
by the amount of the excess.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Letters of credit and Bank Guarantees shall have a maximum maturity of three (3)&nbsp;years from
the date of issuance, and may not to extend more than three (3)&nbsp;years beyond the Facility No.
1 Expiration Date; provided, however, a maximum of $7,500,000 of letters of credit and Bank
Guarantees may have a maximum maturity of five (5)&nbsp;years from the date of issuance and extend
up to five (5)&nbsp;years beyond the Facility No.&nbsp;1 Expiration Date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Letters of credit and Bank Guarantees in the aggregate amount of $15,078,758.50
are outstanding from the Bank for the account of the Borrower as of November&nbsp;30, 2010. As of the
date of this Agreement, these letters of credit and Bank Guarantees shall be deemed to be
outstanding under this Agreement, and shall be subject to all the terms and conditions stated
in this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower agrees:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any sum drawn under a letter of credit or Bank Guarantee may, at the option of
the Bank, be added to the principal amount outstanding under this Agreement. The
amount will bear interest and be due as described elsewhere in this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If there is a default under this Agreement, to immediately cash collateralize
any outstanding letters of credit and Bank Guarantees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The issuance of any letter of credit or Bank Guarantee and any amendment
thereto is subject to the Bank&#146;s written approval which shall not be unreasonably
withheld or conditioned and must be in form and content satisfactory to the Bank and in
favor of a beneficiary reasonably acceptable to the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To sign the Bank&#146;s applicable form Application and Agreement for Letter of
Credit, or agreements related to Bank Guarantees, as applicable.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To pay any issuance and/or other fees that the Bank notifies the Borrower will
be charged for issuing and processing letters of credit and Bank Guarantees for the
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->3<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>account of the Borrower, including without limitation a $150 administrative fee for
each letter of credit issued.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(vi)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To allow the Bank to automatically charge its checking account for applicable
fees, discounts, and other charges.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(vii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To be responsible for any foreign exchange or conversion costs related to
converting RMB to United States Dollars for any drawings under Bank Guarantees, and
such costs shall be added to amounts outstanding under Facility No.&nbsp;1.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(viii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To pay the Bank 0.25% per annum of the outstanding undrawn amount of each documentary
letter of credit, payable annually in advance, calculated on the basis of the amount
outstanding on the day the fee is calculated. Commissions on documentary letters of
credit with maturities of less than one year shall be charged ratably.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ix)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To pay a non-refundable fee on the outstanding undrawn amount of each standby
letter of credit and outstanding undrawn amount of each Bank Guarantee, payable
annually in advance, calculated on the basis of the amount outstanding on the day the
fee is calculated, at the Applicable LC Rate set forth below for letters of credit
secured by cash and cash equivalents, or not so secured, as applicable:</TD>
</TR>

</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="64%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Applicable LC Rate</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Applicable LC Rate</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Cash/Cash</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Not Cash Secured</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Equivalents Secured</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">Pricing</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">Funded Debt/</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">(in percentage</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3">(in percentage points</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Level</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">EBITDA</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">points per annum)</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" colspan="3" style="border-bottom: 1px solid #000000">per annum)</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom" style="background: #cceeff">
    <TD><DIV style="margin-left:15px; text-indent:-15px">1</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right" nowrap><U>&gt;</U> 3.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">2</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><U>&gt;</U> 2.25 and &#060; 3.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">3</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><U>&gt;</U> 1.50 and &#060; 2.25</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">4</DIV></TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" align="center"><U>&gt;</U> 1.00 and &#060; 1.50</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.85</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.55</TD>
    <TD>&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:15px; text-indent:-15px">5</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">&#060; 1.00</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.75</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">.55</TD>
    <TD>&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Applicable LC Rate shall be determined in the same manner as the Applicable Rate
is determined with respect to interest as set forth in Section&nbsp;1.6 above.
Commissions on letters of credit with maturities of less than one year shall be
charged ratably.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.8 <U>Reduction of Commitment</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower may, upon notice to Bank, from time to time permanently reduce the Facility Number 1
Commitment; provided that (i)&nbsp;any such notice shall be received by Bank not later than 11:00&nbsp;a.m.
five Business Days prior to the date of termination or reduction, (ii)&nbsp;any such reduction shall be
in an aggregate amount of $5,000,000 or any whole multiple of $1,000,000 in excess thereof, and
(iii)&nbsp;Borrower shall not terminate or reduce the Facility Number 1 Commitment if, after giving
effect thereto and to any concurrent prepayments hereunder, the total outstanding amount under
Facility Number 1 (including outstanding undrawn amounts of Letters of Credit and 105%
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->4<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">of outstanding undrawn Bank Guarantees) would exceed the reduced Facility Number 1 Commitment.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">1.9 <U>Increase of Commitment</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Provided that no default, or event or circumstance that with notice or lapse of time or both
would be a default, has occurred that has not been waived in writing by the Bank, upon notice
to the Bank the Borrower may from time to time request an increase in the Facility No.&nbsp;1
Commitment by an amount (for all such requests) not exceeding $25,000,000 in the aggregate;
provided that any such request for an increase shall be in a minimum amount of $5,000,000 and,
if in excess thereof, in $1,000,000 increments. Each such request shall be accompanied by a
certificate of the Borrower signed by a responsible officer: (i)&nbsp;certifying and attaching
resolutions adopted by the Borrower approving such increase, and (ii)&nbsp;certifying that, before
and after giving effect to such increase, (A)&nbsp;the representations and warranties contained in
Section&nbsp;7 are and will be true and correct, except to the extent that such representations and
warranties specifically refer to an earlier date, in which case they are true and correct as
of such earlier date, and (B)&nbsp;no default, or event or circumstance that with notice or lapse
of time or both would be a default, has occurred that has not been waived in writing by the
Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank will consider whether or not to grant the Borrower&#146;s request subject only to credit
approval, it being understood that the Bank&#146;s credit approval process includes a full review
of the Borrower&#146;s business, financial condition and collateral as of the applicable time.
Within 20 business days of receiving a request, the Bank shall notify the Borrower whether or
not the Bank has agreed to increase the Facility No.&nbsp;1 Commitment by the amount requested and
the effective date of any approved increase (&#147;Increase Effective Date&#148;). Any failure by the
Bank to respond within such time period shall be deemed to be a decline of the request. If
the Bank has approved a requested increase, the Facility No.&nbsp;1 Commitment shall be increased
by the applicable amount on the Increase Effective Date.</TD>
</TR>

<TR>
    <TD style="font-size: 12pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">2.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>OPTIONAL INTEREST RATES</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">2.1 <U>Optional Rates</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Each optional interest rate is a rate per year. No Portion will be converted to a different
interest rate during the applicable interest period. During the existence of an event of default
under this Agreement that has not been waived in writing by the Bank, the Bank may suspend the
availability of optional interest rates for interest periods commencing after the default occurs.
At the end of any interest period, the interest rate will revert to the rate stated in the Section
1.4, entitled &#147;Interest Rate&#148; above, unless the Borrower has designated another optional interest
rate for the Portion.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">2.2 <U>LIBOR Rate</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The election of LIBOR Rates shall be subject to the following terms and requirements:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The interest period during which the LIBOR Rate will be in effect will be one, two, or three
months. The first day of the interest period must be a day other than a Saturday or a Sunday
on which banks are open for business in New York and London and dealing in offshore dollars (a
&#147;LIBOR Banking Day&#148;). The last day of the interest period and the actual number of days
during the interest period will be determined by the Bank using the practices of the London
inter-bank market.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each LIBOR Rate Portion will be for an amount not less than One Hundred Thousand Dollars
($100,000).</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->5<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The &#147;LIBOR Rate&#148; means the interest rate determined by the following formula. (All amounts
in the calculation will be determined by the Bank as of the first day of the interest period.)</TD>
</TR>

</TABLE>
</DIV>

<DIV align="Center" style="font-size: 10pt; margin-top: 6pt">LIBOR Rate = <u>London Inter-Bank Offered Rate</u><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1.00 - Reserve Percentage)
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Where,</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;London Inter-Bank Offered Rate&#148; means, for any applicable interest period, the
rate per annum equal to the British Bankers Association LIBOR Rate (&#147;BBA LIBOR&#148;), as
published by Reuters (or other commercially available source providing quotations of
BBA LIBOR as selected by the Bank from time to time) at approximately 11:00&nbsp;a.m. London
time two (2)&nbsp;London Banking Days before the commencement of the interest period, for
U.S. Dollar deposits (for delivery on the first day of such interest period) with a
term equivalent to such interest period. If such rate is not available at such time
for any reason, then the rate for that interest period will be determined by such
alternate method as reasonably selected by the Bank. A &#147;London Banking Day&#148; is a day
on which banks in London are open for business and dealing in offshore dollars.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Reserve Percentage&#148; means the total of the maximum reserve percentages for
determining the reserves to be maintained by member banks of the Federal Reserve System
for Eurocurrency Liabilities, as defined by the Federal Reserve Board Regulation&nbsp;D,
rounded upward to the nearest 1/100 of one percent. The percentage will be expressed
as a decimal, and will include, but not be limited to, marginal, emergency,
supplemental, special, and other reserve percentages.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower shall irrevocably request a LIBOR Rate Portion no later than 12:00 noon New York
time on the LIBOR Banking Day preceding the day on which the London Inter-Bank Offered Rate
will be set, as specified above. For example, if there are no intervening holidays or weekend
days in any of the relevant locations, the request must be made at least three days before the
LIBOR Rate takes effect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank will have no obligation to accept an election for a LIBOR Rate Portion if any of the
following described events has occurred and is continuing:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Dollar deposits in the principal amount, and for periods equal to the interest
period, of a LIBOR Rate Portion are not available in the London inter-bank market; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>the LIBOR Rate does not accurately reflect the cost to the Bank of maintaining
a LIBOR Rate Portion.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each prepayment of a LIBOR Rate Portion, whether voluntary, by reason of acceleration or
otherwise, will be accompanied by the amount of accrued interest on the amount prepaid and, if
the prepayment is made on a date other than the last day of the interest period for such
Portion, a LIBOR Rate Portion prepayment fee as described below. A &#147;prepayment&#148; is a payment
of an amount on a date earlier than the scheduled payment date for such amount as required by
this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The LIBOR Rate Portion prepayment fee shall be in an amount sufficient to compensate the Bank
for any loss, cost or expense incurred by it as a result of the prepayment, including any loss
of anticipated profits and any loss or expense arising from the liquidation or reemployment of
funds obtained by it to maintain such Portion or from fees payable to terminate the deposits
from which such funds were obtained. The Borrower</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->6<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>shall also pay any customary administrative fees charged by the Bank in connection with the
foregoing. For purposes of this Section, the Bank shall be deemed to have funded each
Portion by a matching deposit or other borrowing in the applicable interbank market, whether
or not such Portion was in fact so funded.</TD>
</TR>

<TR>
    <TD style="font-size: 12pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">3.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>FEES AND EXPENSES</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">3.1 <U>Fees</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Loan Fee</U>. The Borrower agrees to pay a loan fee in the amount of Twenty-five
Thousand Dollars ($25,000). This fee is due on the date of this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Unused Commitment Fee</U>. The Borrower agrees to pay a fee on any difference between
the Facility No.&nbsp;1 Commitment and the amount of credit it actually uses, determined by the
average of the daily amount of credit outstanding during the specified period. The fee will
be calculated at the Applicable Rate according to Section&nbsp;1.6 hereof. The calculation of
credit outstanding shall include the undrawn amount of letters of credit as well as the
undrawn amount of Bank Guarantees.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This fee is due on the first day of each calendar quarter until the expiration of the
availability period.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Waiver Fee</U>. If the Bank, at its discretion, agrees to waive or amend any terms of
this Agreement, the Borrower will, at the Bank&#146;s option, pay the Bank a fee for each waiver or
amendment in an amount advised by the Bank at the time the Borrower requests the waiver or
amendment. Nothing in this Section shall imply that the Bank is obligated to agree to any
waiver or amendment requested by the Borrower. The Bank may impose additional requirements as
a condition to any waiver or amendment.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Late Fee</U>. To the extent permitted by law, the Borrower agrees to pay a late fee in
an amount not to exceed four percent (4%) of any payment that is more than fifteen (15)&nbsp;days
late. The imposition and payment of a late fee shall not constitute a waiver of the Bank&#146;s
rights with respect to the default.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">3.2 <U>Expenses</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower agrees to immediately repay the Bank for expenses that include, but are not limited
to, filing, recording and search fees, appraisal fees, title report fees, and documentation fees.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">3.3 <U>Reimbursement Costs</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower agrees to reimburse the Bank for any expenses it incurs in the preparation of
this Agreement and any agreement or instrument required by this Agreement. Expenses include,
but are not limited to, reasonable attorneys&#146; fees, including any allocated costs of the
Bank&#146;s in-house counsel to the extent permitted by applicable law.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower agrees to reimburse the Bank for the cost of periodic field examinations of the
Borrower&#146;s books, records and collateral, and appraisals of the collateral, at such intervals
as the Bank may reasonably require. The actions described in this Section may be performed by
employees of the Bank or by independent appraisers.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">3.4 <U>Obligations Related to Swap Contracts</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In the event that the Borrower enters into any Swap Contract with the Bank or any of its
affiliates, any costs incurred by the Bank or its affiliates in connection therewith,
including without limitation any interest, expenses, fees, premiums, penalties or other
charges associated with any obligations undertaken by the Bank or its affiliates to hedge or
offset the Bank&#146;s or its affiliates obligations pursuant to such agreement, or the termination
of any such obligations, shall be (i)&nbsp;deemed additional interest and/or a
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->7<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>related expense (to be determined in the sole discretion of the Bank) and due as part of the
obligations of the Borrower hereunder and (ii)&nbsp;secured by all collateral and guarantees
granted to or made in favor of the Bank to the full extent thereof, and included in any
judgment in any proceeding instituted by the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Swap Contract&#148; means any interest rate, credit, commodity or equity swap, cap, floor,
collar, forward foreign exchange transaction, currency swap, cross currency rate swap,
currency option, securities puts, calls, collars, options or forwards or any combination of,
or option with respect to, these or similar transactions.</TD>
</TR>

<TR>
    <TD style="font-size: 12pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">4.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>COLLATERAL</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">4.1 <U>Personal Property</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Pursuant to one or more security agreements executed by Borrower at the request of the Bank, the
personal property described therein (which may at the Bank&#146;s discretion include all personal
property now owned or owned in the future by the Borrower) will secure the Borrower&#146;s obligations
to the Bank under this Agreement. In addition, all personal property collateral owned by the
Borrower securing this Agreement shall also secure all other present and future obligations of the
Borrower to the Bank. All personal property collateral securing any other present or future
obligations of the Borrower to the Bank shall also secure this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">4.2 <U>Continuing Liens</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The security interests and liens previously granted by Borrower to Bank, including without
limitation the Security Agreement made by the Borrower in favor of the Bank dated December&nbsp;5, 2007
(&#147;Security Agreement&#148;), are intended to continue in full force and effect and to secure among
others all obligations under or related to this Agreement, and are reaffirmed including if and as
modified by any written agreement between Borrower and Bank made in connection herewith.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower hereby confirms that all locations at which Borrower maintains assets are listed below
Borrower&#146;s signature on the Security Agreement, and that the Schedules to such Security Agreement
remain complete and accurate.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">4.3 <U>Subsidiaries</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Borrower will cause each of its subsidiaries to deliver to the Bank the security interests, liens,
and guarantees referenced in Section&nbsp;6.3.
</DIV>


<DIV style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">5.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>DISBURSEMENTS, PAYMENTS AND COSTS</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">5.1 <U>Disbursements and Payments</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each payment by the Borrower will be made in U.S. Dollars and immediately available funds by
debit to a deposit account, as described in this Agreement or otherwise authorized by the
Borrower. For payments not made by direct debit, payments will be made by mail to the address
shown on the Borrower&#146;s statement or at one of the Bank&#146;s banking centers in the United
States, or by such other method as may be permitted by the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank may honor instructions for advances or repayments given by the Borrower (if an
individual), or by any one of the individuals authorized to sign loan agreements on behalf of
the Borrower, or any other individual designated by any one of such authorized signers (each
an &#147;Authorized Individual&#148;).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For any payment under this Agreement made by debit to a deposit account, the Borrower will
maintain sufficient immediately available funds in the deposit account to cover each debit.
If there are insufficient immediately available funds in the deposit account on the
</TD>
</TR>
</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->8<!-- /Folio -->
</DIV>

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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>date the Bank enters any such debit authorized by this Agreement, the Bank may reverse the
debit.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each disbursement by the Bank and each payment by the Borrower will be evidenced by records
kept by the Bank. In addition, the Bank may, at its discretion, require the Borrower to sign
one or more promissory notes.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Prior to the date each payment of principal and interest and any fees from the Borrower
becomes due (the &#147;Due Date&#148;), the Bank will mail to the Borrower a statement of the amounts
that will be due on that Due Date (the &#147;Billed Amount&#148;). The calculations in the bill will be
made on the assumption that no new extensions of credit or payments will be made between the
date of the billing statement and the Due Date, and that there will be no changes in the
applicable interest rate. If the Billed Amount differs from the actual amount due on the Due
Date (the &#147;Accrued Amount&#148;), the discrepancy will be treated as follows:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Billed Amount is less than the Accrued Amount, the Billed Amount for the
following Due Date will be increased by the amount of the discrepancy. The Borrower
will not be in default by reason of any such discrepancy.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>If the Billed Amount is more than the Accrued Amount, the Billed Amount for the
following Due Date will be decreased by the amount of the discrepancy.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Regardless of any such discrepancy, interest will continue to accrue
based on the actual amount of principal outstanding without
compounding. The Bank will not pay the Borrower interest on any
overpayment.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5.2 <u>Telephone and Telefax Authorization</u>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Bank may honor telephone or telefax instructions for advances or repayments, or for the
designation of optional interest rates<B>, </B>and telefax requests for the issuance of letters of
credit given, or purported to be given, by any one of the Authorized Individuals.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Advances will be deposited in and repayments will be withdrawn from account number 2653346
owned by the Borrower, or such other of the Borrower&#146;s accounts with the Bank as designated in
writing by the Borrower.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower will indemnify and hold the Bank harmless from all liability, loss, and costs in
connection with any act resulting from telephone or telefax instructions the Bank reasonably
believes are made by any Authorized Individual. This Section will survive this Agreement&#146;s
termination, and will benefit the Bank and its officers, employees, and agents.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5.3 <U>Direct Debit</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The Borrower agrees that on the Due Date the Bank will debit the Billed Amount from deposit
account number 2653346 owned by the Borrower, or such other of the Borrower&#146;s accounts with
the Bank as designated in writing by the Borrower (the &#147;Designated Account&#148;).</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5.4 <U>Banking Days</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unless otherwise provided in this Agreement, a banking day is a day other than a Saturday,
Sunday or other day on which commercial banks are authorized to close, or are in fact closed, in
the state where the Bank&#146;s lending office is located, and, if such day relates to amounts bearing
interest at an offshore rate (if any), means any such day on which dealings in dollar deposits are
conducted among banks in the offshore dollar interbank market. All payments and disbursements
which would be due on a day which is not a banking day will be due on the next
</DIV>




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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">banking day. All payments received on a day which is not a banking day will be applied to the
credit on the next banking day.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5.5 <U>Interest Calculation</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Except as otherwise stated in this Agreement, all interest and fees, if any, will be computed
on the basis of a 360-day year and the actual number of days elapsed. This results in more
interest or a higher fee than if a 365-day year is used. Installments of principal which are not
paid when due under this Agreement shall continue to bear interest until paid.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5.6 <U>Default Rate</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Upon the occurrence of any default or after maturity or after judgment has been rendered on
any obligation under this Agreement, all amounts outstanding under this Agreement, including any
interest, fees, or costs which are not paid when due, will at the option of the Bank bear interest
at a rate which is 4.0&nbsp;percentage point(s) higher than the rate of interest otherwise provided
under this Agreement. This may result in compounding of interest. This will not constitute a
waiver of any default.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">5.7 <U>Taxes</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any payments to the Bank under this Agreement are made from outside the United States, and
if in connection therewith any foreign taxes are imposed on any payments made by the Borrower
(including payments under this Section), the Borrower will pay such taxes and will also pay to the
Bank, at the time interest is paid, any additional amount which the Bank specifies as necessary to
preserve the after-tax yield (except for the effects of income or franchise taxes imposed on the
Bank or measured by its net income by the United States) the Bank would have received if such taxes
had not been imposed. The Borrower will confirm that it has paid the taxes by giving the Bank
official tax receipts (or notarized copies) within thirty (30)&nbsp;days after the due date.
</DIV>


<DIV style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">6.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>CONDITIONS</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Before the Bank is required to extend any credit to the Borrower under this Agreement
(including future advances), it must receive any documents and other items it may reasonably
require, in form and content acceptable to the Bank, including any items specifically listed below.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6.1 <U>Authorizations</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Evidence that the execution, delivery and performance by the Borrower of this Agreement and
any instrument or agreement required under this Agreement have been duly authorized.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6.2 <U>Governing Documents</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A copy of the Borrower&#146;s organizational documents.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6.3 <u>Security Agreements and Guaranties</u>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Signed original security agreements covering the personal property collateral that the Bank
requires of the Borrower and each of its domestic direct and indirect subsidiaries, and to the
extent that no material adverse tax consequences would result, each foreign subsidiary, in
form satisfactory to the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Signed guaranties from each direct or indirect domestic subsidiary of Borrower, and to the
extent that no material adverse tax consequences would result, each foreign subsidiary in form
satisfactory to the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Signed security agreements covering all present and future shares of capital stock of each
present and future subsidiary of Borrower, limited in the case of foreign subsidiaries to a
pledge of 65% of such stock if any greater percentage would result in an adverse tax
consequence in form satisfactory to the Bank.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->10<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6.4 <U>Perfection and Evidence of Priority</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Evidence that the security interests and liens in favor of the Bank are valid, enforceable,
properly perfected in a manner acceptable to the Bank and prior to all others&#146; rights and
interests, except those the Bank consents to in writing, to the extent that (i)&nbsp;such security
interests and liens can be perfected and achieve priority by the filing of financing statements
under the Uniform Commercial Code, or (ii)&nbsp;such security interests and liens cover specific
collateral not covered by clause (i)&nbsp;with respect to which the Bank has specifically requested
perfection and priority of its security interests and liens.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6.5 <U>Payment of Fees</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Payment of all fees and other amounts due and owing to the Bank, including without limitation
payment of all accrued and unpaid expenses incurred by the Bank as required by Section&nbsp;3.3,
entitled &#147;Reimbursement Costs.&#148;
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6.6 <U>Good Standing</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Certificates of good standing for the Borrower from its state of formation and, if requested by the
Bank, from any other state in which the Borrower is required to qualify to conduct its business.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6.7 <U>Legal Opinion</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A written opinion from the Borrower&#146;s legal counsel, covering such matters as the Bank may require.
The legal counsel and the terms of the opinion must be acceptable to the Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6.8 <U>Insurance</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Evidence of insurance coverage, as required in the Section&nbsp;8.15 of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">6.9 <u>Landlord Agreement</u>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For any personal property collateral located on real property which is subject to a mortgage or
deed of trust or which is not owned by the Borrower, an agreement permitting removal of collateral
from the owner of the real property and the holder of any such mortgage or deed of trust.
</DIV>


<DIV style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">7.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>REPRESENTATIONS AND WARRANTIES</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">When the Borrower signs this Agreement, and until the Bank is repaid in full, the Borrower makes
the following representations and warranties. Each request for an extension of credit constitutes
a renewal of these representations and warranties as of the date of the request:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.1 <U>Formation</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower is duly formed and existing under the laws of the state where organized.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.2 <u>Authorization</u>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement, and any instrument or agreement required hereunder, are within the Borrower&#146;s
powers, have been duly authorized, and do not conflict with any of its organizational papers.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.3 <U>Enforceable Agreement</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement is a legal, valid and binding agreement of the Borrower, enforceable against the
Borrower in accordance with its terms, and any instrument or agreement required hereunder, when
executed and delivered, will be similarly legal, valid, binding and enforceable.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.4 <U>Good Standing</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In each state or other jurisdiction in which the Borrower does business, it is properly licensed,
in good standing, and, where required, in compliance with fictitious name statutes.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.5 <U>No Conflicts</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement does not conflict with any law, agreement, or obligation by which the Borrower is
bound.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.6 <U>Financial Information</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All financial and other information that has been or will be supplied to the Bank is in compliance
with Section&nbsp;11.1 of this Agreement. Since the date of the most recent financial statement
provided to the Bank, there has been no material adverse change in the business condition
(financial or otherwise), operations, properties or prospects of the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.7 <U>Lawsuits</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There is no lawsuit, tax claim or other dispute pending or threatened against the Borrower which is
required to be disclosed in Borrower&#146;s reports to the Securities and Exchange Commission which has
not been so disclosed.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.8 <U>Collateral</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">All Borrower&#146;s collateral that is subject to any security agreement in favor of the Bank is owned
by the grantor of the security interest free of any title defects or any liens or interests of
others, except those which have been approved by the Bank in writing.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.9 <U>Permits, Franchises</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower possesses all permits, memberships, franchises, contracts and licenses required and
all trademark rights, trade name rights, patent rights, copyrights, and fictitious name rights
necessary to enable it to conduct the business in which it is now engaged.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.10 <U>Other Obligations</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower is not in default on any obligation for borrowed money, any purchase money obligation
or any other material lease, commitment, contract, instrument or obligation, except as have been
disclosed in writing to the Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.11 <U>Tax Matters</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower has no knowledge of any pending assessments or adjustments of its income tax for any
year and all taxes due have been paid, except as have been disclosed in writing to the Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.12 <U>No Event of Default</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">There is no event which is, or with notice or lapse of time or both would be, a default under this
Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.13 <U>Insurance</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower has obtained, and maintained in effect, the insurance coverage required in Section
8.15 of this Agreement.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->12<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.14 <U>ERISA Plans</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Each Plan (other than a multiemployer plan) is in compliance in all material respects with
the applicable provisions of ERISA, the Code and other federal or state law. Each Plan has
either: (i)&nbsp;received a favorable determination letter from the IRS and to the best knowledge
of the Borrower, nothing has occurred which would cause the loss of such qualification, or
(ii)&nbsp;is entitled to rely upon an IRS opinion letter stating that such Plan is qualified under
Section 401(a) of the Code.. The Borrower has fulfilled its obligations, if any, under the
minimum funding standards of ERISA and the Code with respect to each Plan, and has not
incurred any liability with respect to any Plan under Title IV of ERISA.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>There are no claims, lawsuits or actions (including by any governmental authority), and there
has been no prohibited transaction or violation of the fiduciary responsibility rules, with
respect to any Plan which has resulted or could reasonably be expected to result in a material
adverse effect.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With respect to any Plan subject to Title IV of ERISA:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No reportable event has occurred under Section 4043(c) of ERISA for which the
PBGC requires 30-day notice.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No action by the Borrower or any ERISA Affiliate to terminate or withdraw from
any Plan has been taken and no notice of intent to terminate a Plan has been filed
under Section&nbsp;4041 of ERISA.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>No termination proceeding has been commenced with respect to a Plan under
Section&nbsp;4042 of ERISA, and no event has occurred or condition exists which might
constitute grounds for the commencement of such a proceeding.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The following terms have the meanings indicated for purposes of this Agreement:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Code&#148; means the Internal Revenue Code of 1986, as amended from time to time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;ERISA&#148; means the Employee Retirement Income Security Act of 1974, as amended
from time to time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;ERISA Affiliate&#148; means any trade or business (whether or not incorporated)
under common control with the Borrower within the meaning of Section 414(b) or (c)&nbsp;of
the Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iv)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;PBGC&#148; means the Pension Benefit Guaranty Corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(v)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Plan&#148; means a pension, profit-sharing, or stock bonus plan intended to qualify
under Section 401(a) of the Code, maintained or contributed to by the Borrower or any
ERISA Affiliate, including any multiemployer plan within the meaning of Section
4001(a)(3) of ERISA.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">7.15 <U>Location of Borrower</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The chief executive office of the Borrower is located at the address listed on the signature page
of this Agreement.
</DIV>


<DIV style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">8.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>COVENANTS</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower agrees, so long as credit is available under this Agreement and until the Bank is
repaid in full:
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.1 <U>Use of Proceeds</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To use the proceeds of Facility No.&nbsp;1 only for general corporate purposes, including letters
of credit and capital expenditures. Proceeds from Facility No.&nbsp;1 may also be used to finance
acquisitions permitted by Section&nbsp;8.13(b).</TD>
</TR>




</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->13<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>That proceeds of Facility No.&nbsp;1 may not be used directly or indirectly to purchase or carry
any &#147;margin stock&#148; as that term is defined in Regulation&nbsp;U of the Board of Governors of the
Federal Reserve System, or extend credit to or invest in other parties for the purpose of
purchasing or carrying any such &#147;margin stock,&#148; or to reduce or retire any indebtedness
incurred for such purpose. None of the proceeds of this Loan Agreement may be used directly
or indirectly in furtherance of any transaction or series of transactions to acquire a
controlling interest in any publicly-traded company unless the Bank otherwise consents in
writing.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.2 <U>Financial Information</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To provide the following financial information and statements in form and content acceptable to the
Bank, and such additional information as requested by the Bank from time to time. The Bank
reserves the right, upon written notice to the Borrower, to require the Borrower to deliver
financial information and statements to the Bank more frequently than otherwise provided below, and
to use such additional information and statements to measure any applicable financial covenants in
this Agreement.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By July&nbsp;31 of each year<B>, </B>the annual financial statements of Borrower, certified and dated by
an authorized financial officer. These financial statements must be audited (with an opinion
satisfactory to the Bank) by a Certified Public Accountant acceptable to the Bank. The
statements shall be prepared on a consolidated basis.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Within 50&nbsp;days of the period&#146;s end (excluding the last period in each fiscal year)<B>, </B>quarterly
financial statements of Borrower, certified and dated by an authorized financial officer. The
statements shall be prepared on a consolidated basis.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>With each financial statement provided pursuant to Section&nbsp;8.2(a) and (b), a compliance
certificate of the Borrower, signed by an authorized financial officer and setting forth (i)
the information and computations (in sufficient detail) to establish compliance with all
financial covenants at the end of the period covered by the financial statements then being
furnished and (ii)&nbsp;whether there existed as of the date of such financial statements and
whether there exists as of the date of the certificate, any default under this Agreement and,
if any such default exists, specifying the nature thereof and the action the Borrower is
taking and proposes to take with respect thereto.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Promptly, upon sending or receipt, copies of any management letters and correspondence
relating to management letters, sent or received by the Borrower to or from the Borrower&#146;s
auditor. If no management letter is prepared, the Bank may, in its discretion, request a
letter from such auditor stating that no deficiencies were noted that would otherwise be
addressed in a management letter.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Annual business plan, including financial projections covering a time period acceptable to
the Bank and specifying the assumptions used in creating the projections. The annual business
plan shall be provided to the Bank no less often than 60&nbsp;days after the end of each fiscal
year.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.3 <U>Funded Debt to EBITDA Ratio</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To maintain on a consolidated basis a ratio of Funded Debt to EBITDA not exceeding 3.5 to 1.0.
&#147;Funded Debt&#148; means all outstanding liabilities for borrowed money and other interest-bearing
liabilities, including current and long term debt.
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->14<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;EBITDA&#148; means net income, plus interest expense, plus income taxes, plus depreciation, depletion,
and amortization of intangible assets, plus other non-cash expenses, less non-cash income, less
income or plus loss from discontinued operations and extraordinary items.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This ratio will be calculated at the end of each reporting period for which the Bank requires
financial statements pursuant to Section&nbsp;8.2 (a)&nbsp;and (b)&nbsp;hereof, using the results of the
twelve-month period ending with that reporting period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.4 <U>Interest Coverage Ratio</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To maintain on a consolidated basis an Interest Coverage Ratio of at least 4.0 to 1.0.
&#147;Interest Coverage Ratio&#148; means the ratio of EBIT to interest expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;EBIT&#148; means net income, less income or plus loss from discontinued operations and extraordinary
items, plus income taxes, plus interest expense.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This ratio will be calculated at the end of each reporting period for which the Bank requires
financial statements pursuant to Section&nbsp;8.2 (a)&nbsp;and (b)&nbsp;hereof, using the results of the
twelve-month period ending with that reporting period.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.5 <U>Dividends and Distributions</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not to declare or pay any dividends, redemptions of stock, distributions and withdrawals to its
owners, except:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>dividends payable in capital stock;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>provided that immediately before and after such declaration or payment no event of default
has occurred: (i)&nbsp;if Borrower&#146;s ratio of Funded Debt to EBITDA, calculated as provided in
Section&nbsp;8.3 is equal to or less than 2.0 to 1.0, Borrower may make unlimited dividends,
redemptions of stock, distributions and withdrawals to its owners, and (ii)&nbsp;if Borrower&#146;s
ratio of Funded Debt to EBITDA, calculated as provided in Section&nbsp;8.3 is greater than 2.0 to
1.0, Borrower may make dividends, redemptions of stock, distributions and withdrawals to its
owners limited to 25% of net income<B>.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.6 <U>Bank as Principal Depository</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To maintain the Bank as its principal depository bank, including for the maintenance of business,
cash management, operating and administrative deposit accounts, and collection/lockbox services.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.7 <U>Other Debts</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not to have outstanding or incur any Indebtedness or contingent liabilities (as defined under
generally accepted accounting principles, &#147;Contingent Liabilities&#148;) other than to the Bank, or
become liable for the liabilities of others without the Bank&#146;s written consent. This does not
prohibit:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Acquiring goods, supplies, or merchandise on normal trade credit.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Payroll and compensation obligations incurred in the ordinary course of business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Endorsing negotiable instruments received.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liabilities, lines of credit and leases described in Schedule&nbsp;8.7 to this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additional Indebtedness for business purposes which do not exceed an aggregate total
principal amount of $1,000,000 outstanding at any one time.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->15<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Additional Contingent Liabilities (not including liabilities treated as Indebtedness under
subsection (e)) which do not exceed an aggregate total principal amount of $1,000,000
outstanding at any one time.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Indebtedness&#148; means all of the following, whether or not included as indebtedness or liabilities
in accordance with GAAP:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations of such person for borrowed money and all obligations of such person
evidenced by bonds, debentures, notes, loan agreements or other similar instruments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all direct or contingent obligations of such person arising under letters of credit
(including standby and commercial), bankers&#146; acceptances, bank guaranties, surety bonds and
similar instruments;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>net obligations of such person under any Swap Contract;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all obligations of such person to pay the deferred purchase price of property or services
(other than trade accounts payable in the ordinary course of business and, in each case, not
past due for more than 60&nbsp;days after the date on which such trade account payable was
created);</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>indebtedness (excluding prepaid interest thereon) secured by a lien on property owned or
being purchased by such person (including indebtedness arising under conditional sales or
other title retention agreements), whether or not such indebtedness shall have been assumed by
such person or is limited in recourse;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>capital leases and synthetic lease obligations; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>all guarantees of such person in respect of any of the foregoing.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">For all purposes hereof, the Indebtedness of any person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the swap termination value thereof as of such
date.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.8 <U>Other Liens</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not to create, assume, or allow any security interest or lien (including judicial liens) on
property the Borrower now or later owns, without the written consent of Bank, except:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens and security interests in favor of the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens outstanding on the date of this Agreement disclosed in writing to the Bank on Schedule
8.7 to this Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liens securing debt and lease obligations incurred pursuant to Section&nbsp;8.6(e) which do not
secure more than an aggregate total principal amount of $1,000,000 outstanding at any one
time.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.9 <U>Negative Pledge</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not to enter into any agreement with anyone other than the Bank in which Borrower agrees not to
pledge or otherwise transfer or encumber any asset of Borrower now or hereafter owned, whether or
not such asset has been pledged to the Bank, except negative pledge agreements regarding liens
which would be permitted by Section&nbsp;8.8 hereof.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.10 <U>Maintenance of Assets</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not to sell, assign, lease, transfer or otherwise dispose of any material part of the
Borrower&#146;s business or assets except in the ordinary course of the Borrower&#146;s business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not to sell, lease, transfer, or otherwise dispose of any assets for less than fair market
value, or enter into any agreement to do so.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->16<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Not to enter into any sale and leaseback agreement covering any of its fixed assets.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To maintain and preserve all rights, privileges, and franchises the Borrower now has.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>To make any repairs, renewals, or replacements to keep the Borrower&#146;s properties in good
working condition, ordinary war and tear and obsolescence excepted.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.11 <U>Investments; Loans</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not to have any existing, or make any new, investments in any individual or entity, or make any
capital contributions or other transfers of assets to any individual or entity, or make loans,
advances or other extensions of credit to any individual or entity, except for:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Existing investments disclosed to the Bank in writing.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments in any of the following:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>certificates of deposit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>U.S. treasury bills and other obligations of the federal government;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>readily marketable securities (including commercial paper, but excluding
restricted stock and stock subject to the provisions of Rule&nbsp;144 of the Securities and
Exchange Commission).</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments:</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>in and loans to the Borrower&#146;s then current &#147;Affiliates&#148; (not including the
WOFE described below) that do not exceed an aggregate amount of $1,000,000 at any one
time outstanding,</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(ii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>permitted under Section&nbsp;8.13(b), and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="4%" style="background: transparent">&nbsp;</TD>
    <TD width="3%" nowrap align="left">(iii)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>investments in and loans to other persons and entities that do not exceed an
aggregate amount of $500,000 outstanding at any one time.</TD>
</TR>

</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>&#147;Affiliate&#148; shall mean any entity which directly or indirectly, or through one or more
intermediaries, controls or is controlled by or is under common control with the Borrower.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Investments in and loans to Borrower&#146;s Wholly Owned Foreign Enterprise (the &#147;WOFE&#148;) formed in
China which investments and loans shall not exceed an aggregate amount of $2,500,000
outstanding at any one time.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.12 <U>Management</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not to make any change in the present president, chief operating officer, or chief financial
officer of the Borrower other than for cause unless Borrower shall have provided advance written
notice of the change identifying, and providing reasonable background information regarding, the
successor.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.13 <U>Additional Negative Covenants</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Not to, without the Bank&#146;s written consent:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Enter into any consolidation, merger, or other combination, or become a partner in a
partnership, a member of a joint venture, or a member of a limited liability company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Acquire or purchase a business or its assets; provided, however, Borrower may make such an
acquisition if: (i)&nbsp;on a pro forma basis the Borrower will have a Funded Debt to EBITDA Ratio
not greater than 3.0 to 1.0 on a going forward basis after completion of such acquisition,
(ii)&nbsp;Borrower is in compliance, and will continue to comply on a going forward basis after
completion of such acquisition, with the other covenants contained in this Agreement, (iii)
the acquired business is in a similar or complementary line of business to the existing
business of the Borrower, and (iv)&nbsp;if the acquired business is or becomes a Borrower
subsidiary, documents and agreements for and related to such subsidiary of the nature required
from Borrower by Section&nbsp;6.</TD>
</TR>



</TABLE>
</DIV>
<P align="center" style="font-size: 10pt"><!-- Folio -->17<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">


<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">



</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Engage in any business activities substantially different from the Borrower&#146;s present
business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Liquidate or dissolve the Borrower&#146;s business.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.14 <U>Notices to Bank</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To promptly notify the Bank in writing of:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any dispute or lawsuit between the Borrower and any third party or governmental authority
which would be required to be disclosed in the Borrower&#146;s reports to the Securities and
Exchange Commission.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any event of default under this Agreement, or any event which, with notice or lapse of time
or both, would constitute an event of default.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any material adverse change in the Borrower&#146;s business condition (financial or otherwise),
operations, properties or prospects, or ability to repay the credit.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any change in the Borrower&#146;s name, legal structure, place of business, or chief executive
office if the Borrower has more than one place of business.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any actual Contingent Liabilities of the Borrower, and any such Contingent Liabilities which
are reasonably foreseeable, where such liabilities are in excess of $1,000,000 in the
aggregate.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.15 <U>Insurance</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>General Business Insurance</U>. To maintain insurance satisfactory to the Bank as to
amount, nature and carrier covering property damage (including loss of use and occupancy) to
any of the Borrower&#146;s properties, business interruption insurance, public liability insurance
including coverage for contractual liability, product liability and workers&#146; compensation, and
any other insurance which is usual for the Borrower&#146;s business. Each policy shall provide for
at least thirty (30)&nbsp;days prior notice to the Bank of any cancellation thereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Insurance Covering Collateral</U>. To maintain all risk property damage insurance
policies (including without limitation windstorm coverage, and hurricane coverage as
applicable) covering the tangible property comprising the collateral. Each insurance policy
must be for the full replacement cost of the collateral and include a replacement cost
endorsement. The insurance must be issued by an insurance company acceptable to the Bank and
must include a lender&#146;s loss payable endorsement in favor of the Bank in a form acceptable to
the Bank.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD><U>Evidence of Insurance</U>. Upon the request of the Bank, to deliver to the Bank a copy
of each insurance policy, or, if permitted by the Bank, a certificate of insurance listing all
insurance in force.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.16 <U>Compliance with Laws.</U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To comply in all material respects with the laws (including any fictitious or trade name statute),
regulations, and orders of any government body with authority over the Borrower&#146;s business. The
Bank shall have no obligation to make any advance to the Borrower except in compliance with all
applicable laws and regulations and the Borrower shall fully cooperate with the Bank in complying
with all such applicable laws and regulations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.17 <U>ERISA Plans</U>.<U></U>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Promptly during each year, to pay and cause any subsidiaries to pay contributions adequate to meet
at least the minimum funding standards under ERISA with respect to each and every Plan; file each
annual report required to be filed pursuant to ERISA in connection with each Plan for
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->18<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">each year; and notify the Bank within ten (10)&nbsp;days of the occurrence of any Reportable Event that
might constitute grounds for termination of any Plan by the Pension Benefit Guaranty Corporation or
for the appointment by the appropriate United States District Court of a trustee to administer any
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;ERISA&#148; means the Employee Retirement Income Security Act of 1974, as amended from time to time.
Capitalized terms in this Section shall have the meanings defined within ERISA.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.18 <U>ERISA Plans &#151; Notices</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">With respect to a Plan subject to Title IV of ERISA, to give prompt written notice to the Bank of:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The occurrence of any reportable event under Section 4043(c) of ERISA for which the PBGC
requires 30-day notice.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any action by the Borrower or any ERISA Affiliate to terminate or withdraw from a Plan or the
filing of any notice of intent to terminate under Section&nbsp;4041 of ERISA.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The commencement of any proceeding with respect to a Plan under Section&nbsp;4042 of ERISA.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.19 <U>Books and Records</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To maintain adequate books and records.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.20 <u>Audits</u>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To allow the Bank and its agents to inspect the Borrower&#146;s properties and examine, audit, and make
copies of books and records at any reasonable time. If any of the Borrower&#146;s properties, books or
records are in the possession of a third party, the Borrower authorizes that third party to permit
the Bank or its agents to have access to perform inspections or audits and to respond to the Bank&#146;s
requests for information concerning such properties, books and records.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.21 <U>Perfection of Liens</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To help the Bank perfect and protect its security interests and liens, and reimburse it for related
costs it incurs to protect its security interests and liens.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">8.22 <U>Cooperation</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">To take any action reasonably requested by the Bank to carry out the intent of this Agreement.
</DIV>


<DIV style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">9.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>HAZARDOUS SUBSTANCES</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">9.1 <U>Indemnity Regarding Hazardous Substances</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower will indemnify and hold harmless the Bank from any loss or liability the Bank incurs
in connection with or as a result of this Agreement, which directly or indirectly arises out of the
use, generation, manufacture, production, storage, release, threatened release, discharge, disposal
or presence of a hazardous substance. This indemnity will apply whether the hazardous substance is
on, under or about the Borrower&#146;s property or operations or property leased to the Borrower. The
indemnity includes but is not limited to attorneys&#146; fees (including the reasonable estimate of the
allocated cost of in-house counsel and staff). The indemnity extends to the Bank, its parent,
subsidiaries and all of their directors, officers, employees, agents, successors, attorneys and
assigns.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->19<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">9.2 <U>Compliance Regarding Hazardous Substances</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower represents and warrants that the Borrower has complied with all current and future
laws, regulations and ordinances or other requirements with the effect or force of law pertaining
to Borrower&#146;s use, generation, manufacture, production, storage, release, threatened release,
discharge, or disposal of hazardous substances.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">9.3 <U>Notices Regarding Hazardous Substances</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Until full repayment of the loan, the Borrower will promptly notify the Bank in writing of any
threatened or pending investigation of the Borrower or its operations by any governmental agency
under any current or future law, regulation or ordinance pertaining to any hazardous substance.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">9.4 <U>Site Visits, Observations and Testing</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank and its agents and representatives will have the right at any reasonable time, after
giving reasonable notice to the Borrower, to enter and visit any locations where the collateral
securing this Agreement (the &#147;Collateral&#148;) is located for the purposes of observing the Collateral,
taking and removing environmental samples, and conducting tests. The Borrower shall reimburse the
Bank on demand for the costs of any such environmental investigation and testing. The Bank will
make reasonable efforts during any site visit, observation or testing conducted pursuant this
Section to avoid interfering with the Borrower&#146;s use of the Collateral. The Bank is under no duty
to observe the Collateral or to conduct tests, and any such acts by the Bank will be solely for the
purposes of protecting the Bank&#146;s security and preserving the Bank&#146;s rights under this Agreement.
No site visit, observation or testing or any report or findings made as a result thereof
(&#147;Environmental Report&#148;) (i)&nbsp;will result in a waiver of any default of the Borrower; (ii)&nbsp;impose
any liability on the Bank; or (iii)&nbsp;be a representation or warranty of any kind regarding the
Collateral (including its condition or value or compliance with any laws) or the Environmental
Report (including its accuracy or completeness). The Bank shall provide copies of any
Environmental Reports prepared by, for, or on behalf of the Bank to the Borrower. In the event the
Bank has a duty or obligation under applicable laws, regulations or other legally binding
requirements to disclose an environmental condition or Environmental Report to the Borrower, any
governmental agency, or any other party, the Borrower authorizes the Bank to make such a
disclosure; provided, however, that if the Bank may do so without violation of laws, regulations,
or legally binding requirements, the Bank will make good faith efforts to (i)&nbsp;first notify the
Borrower of the environmental condition or proposed disclosure of the Environmental Report, (ii)
give the Borrower an opportunity to assess the environmental condition requiring disclosure, and
(iii)&nbsp;consider timely, reasonable, and good faith arguments by Borrower that disclosure is not
required. The Borrower further understands and agrees that any Environmental Report, condition, or
other information regarding a site visit, observation or testing that is disclosed to the Borrower
by the Bank or its agents and representatives is to be evaluated (including any reporting or other
disclosure obligations of the Borrower) by the Borrower without advice or assistance from the Bank.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">9.5 <U>Definition of Hazardous Substances</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&#147;Hazardous substances&#148; means any substance, material or waste that is or becomes designated or
regulated as &#147;toxic,&#148; &#147;hazardous,&#148; &#147;pollutant,&#148; or &#147;contaminant&#148; or a similar designation or
regulation under any current or future federal, state or local law (whether under common law,
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->20<!-- /Folio -->
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">statute, regulation or otherwise) or judicial or administrative interpretation of such, including
without limitation petroleum.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">9.6 <U>Continuing Obligation</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower&#146;s obligations to the Bank under this Article, except the obligation to give notices to
the Bank, shall survive termination of this Agreement and repayment of the Borrower&#146;s obligations
to the Bank under this Agreement.
</DIV>


<DIV style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">10.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>DEFAULT AND REMEDIES</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any of the following events of default occurs, the Bank may do one or more of the following:
declare the Borrower in default, stop making any additional credit available to the Borrower, and
require the Borrower to repay its entire debt immediately and without prior notice. If an event
which, with notice or the passage of time, will constitute an event of default has occurred and is
continuing, the Bank has no obligation to make advances or extend additional credit under this
Agreement. In addition, if any event of default occurs, the Bank shall have all rights, powers and
remedies available under any instruments and agreements required by or executed in connection with
this Agreement, as well as all rights and remedies available at law or in equity. If an event of
default occurs under Section&nbsp;10.5, entitled &#147;Bankruptcy,&#148; below, with respect to the Borrower, then
the entire debt outstanding under this Agreement will automatically be due immediately.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.1 <U>Failure to Pay</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower fails to make a payment of principal under this Agreement when due, or fails to make a
payment of interest, any fee or other sum under this Agreement within ten (10)&nbsp;days after the date
when due.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.2 <U>Other Bank Agreements</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any default occurs under any other agreement the Borrower or any of the Borrower&#146;s related entities
or Affiliates has with the Bank or any Affiliate of the Bank, including among others any default
occurs under any guaranty, subordination agreement, security agreement, deed of trust, mortgage, or
other document required by or delivered in connection with this Agreement or any such document is
no longer in effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.3 <U>Cross-default</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any default occurs under any agreement in connection with any credit of $250,000 or more that the
Borrower or any of the Borrower&#146;s related entities or Affiliates has obtained from anyone else or
which the Borrower or any of the Borrower&#146;s related entities or Affiliates has guaranteed, or any
default occurs by Borrower with respect to any other material agreement with any third person which
default could reasonably be expected to have a material adverse effect on the property, business,
operations, financial condition, prospects, liabilities, or capitalization of the Borrower or the
financial capacity of the Borrower to perform any of its obligations under this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.4 <U>False Information</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower has given the Bank materially false or misleading information or representations.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.5 <U>Bankruptcy</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower files a bankruptcy petition, a bankruptcy petition is filed against any of the
foregoing parties, or the Borrower makes a general assignment for the benefit of creditors.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.6 <U>Receivers</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A receiver or similar official is appointed for a substantial portion of the Borrower&#146;s business,
or the business is terminated, or, if Borrower is liquidated or dissolved.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.7 <U>Lien Priority</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Bank fails to have an enforceable first lien (except for any prior liens to which the Bank has
consented in writing) on or security interest in any property given as security for this Agreement
if (i)&nbsp;the security interest and lien can be perfected and achieve priority by the filing of
financing statements under the Uniform Commercial Code, or (ii)&nbsp;the security interest and lien
covers specific collateral not covered by clause (i)&nbsp;with respect to which the Bank has
specifically requested perfection and priority of its security interest and lien.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.8 <U>Judgments</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any judgments or arbitration awards are entered against the Borrower, or the Borrower enters into
any settlement agreements with respect to any litigation or arbitration, in an aggregate amount of
$250,000 or more in excess of any insurance coverage.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.9 <U>Government Action</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any government authority takes action that the Bank believes materially adversely affects the
Borrower&#146;s financial condition or ability to repay.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.10 <U>ERISA Plans</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Any one or more of the following events occurs with respect to a Plan of the Borrower subject to
Title IV of ERISA, provided such event or events could reasonably be expected, in the judgment of
the Bank, to subject the Borrower to any tax, penalty or liability (or any combination of the
foregoing) which, in the aggregate, could have a material adverse effect on the financial condition
of the Borrower:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>A reportable event shall occur under Section 4043(c) of ERISA with respect to a Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any Plan termination (or commencement of proceedings to terminate a Plan) or the full or
partial withdrawal from a Plan by the Borrower or any ERISA Affiliate.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.11 <U>Material Adverse Change</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A material adverse change occurs, or is reasonably likely to occur, in the Borrower&#146;s business
condition (financial or otherwise), operations, properties or prospects, or ability to repay the
credit.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">10.12 <U>Other Breach Under Agreement</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">A default occurs under any other term or condition of this Agreement not specifically referred to
in this Article. This includes any failure or anticipated failure by the Borrower (or any other
party named in the Covenants Section) to comply with any financial covenants set forth in this
Agreement, whether such failure is evidenced by financial statements delivered to the Bank or is
otherwise known to the Borrower or the Bank.
</DIV>


<DIV style="margin-top: 12pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">11.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>ENFORCING THIS AGREEMENT; MISCELLANEOUS</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">11.1 <U>GAAP</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Except as otherwise stated in this Agreement, all financial information provided to the Bank and
all financial covenants will be made under generally accepted accounting principles, consistently
applied.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.2 <U>Governing Law</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement shall be governed by and construed in accordance with the laws of New York. If
state or local law and federal law are inconsistent, or if state or local law is preempted by
federal law, federal law governs. If the Bank has greater rights or remedies under federal law,
whether as a national bank or otherwise, this Section shall not be deemed to deprive the Bank of
such rights and remedies as may be available under federal law.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.3 <U>Successors and Assigns</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement is binding on the Borrower&#146;s and the Bank&#146;s successors and assignees. The Borrower
agrees that it may not assign this Agreement without the Bank&#146;s prior consent. The Bank may sell
participations in or assign this loan, and may exchange information about the Borrower (including,
without limitation, any information regarding any hazardous substances) with actual or potential
participants or assignees. If a participation is sold or the loan is assigned, the purchaser will
have the right of set-off against the Borrower.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.4 <U>Dispute Resolution Provision</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Section, including the subsections below, is referred to as the &#147;Dispute Resolution
Provision.&#148; This Dispute Resolution Provision is a material inducement for the parties entering
into this agreement.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Dispute Resolution Provision concerns the resolution of any controversies or claims
between the parties, whether arising in contract, tort or by statute, including but not
limited to controversies or claims that arise out of or relate to: (i)&nbsp;this agreement
(including any renewals, extensions or modifications); or (ii)&nbsp;any document related to this
agreement (collectively a &#147;Claim&#148;). For the purposes of this Dispute Resolution Provision
only, the term &#147;parties&#148; shall include any parent corporation, subsidiary or affiliate of the
Bank involved in the servicing, management or administration of any obligation described or
evidenced by this agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>At the request of any party to this agreement, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code) (the &#147;Act&#148;).
The Act will apply even though this agreement provides that it is governed by the law of a
specified state.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Arbitration proceedings will be determined in accordance with the Act, the then-current rules
and procedures for the arbitration of financial services disputes of the American Arbitration
Association or any successor thereof (&#147;AAA&#148;), and the terms of this Dispute Resolution
Provision. In the event of any inconsistency, the terms of this Dispute Resolution Provision
shall control. If AAA is unwilling or unable to (i)&nbsp;serve as the provider of arbitration or
(ii)&nbsp;enforce any provision of this arbitration clause, the Bank may designate another
arbitration organization with similar procedures to serve as the provider of arbitration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(d)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The arbitration shall be administered by AAA and conducted, unless otherwise required by law,
in any U.S. state where real or tangible personal property collateral for this credit is
located or if there is no such collateral, in the state specified in the governing law section
of this agreement. All Claims shall be determined by one arbitrator; however, if Claims
exceed Five Million Dollars ($5,000,000), upon the request of any party, the Claims shall be
decided by three arbitrators. All arbitration hearings shall commence within ninety (90)&nbsp;days
of the demand for arbitration and close within ninety (90)&nbsp;days of commencement and the award
of the arbitrator(s) shall be issued within thirty (30)&nbsp;days of the close of the hearing.
However, the arbitrator(s), upon a showing of good cause,
</TD>
</TR>
</TABLE>
</DIV>
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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV style="margin-top: 6pt"><TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">


</TABLE>
</DIV>

<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>may extend the commencement of the hearing for up to an additional sixty (60)&nbsp;days. The
arbitrator(s) shall provide a concise written statement of reasons for the award. The
arbitration award may be submitted to any court having jurisdiction to be confirmed and have
judgment entered and enforced.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(e)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The arbitrator(s) will give effect to statutes of limitation in determining any Claim and
shall dismiss the arbitration if the Claim is barred under the applicable statutes of
limitation. For purposes of the application of any statutes of limitation, the service on AAA
under applicable AAA rules of a notice of Claim is the equivalent of the filing of a lawsuit.
Any dispute concerning this arbitration provision or whether a Claim is arbitrable shall be
determined by the arbitrator(s), except as set forth at subsection (h)&nbsp;of this Dispute
Resolution Provision. The arbitrator(s) shall have the power to award legal fees pursuant to
the terms of this agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(f)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>This Section does not limit the right of any party to: (i)&nbsp;exercise self-help remedies, such
as but not limited to, setoff; (ii)&nbsp;initiate judicial or non-judicial foreclosure against any
real or personal property collateral; (iii)&nbsp;exercise any judicial or power of sale rights, or
(iv)&nbsp;act in a court of law to obtain an interim remedy, such as but not limited to, injunctive
relief, writ of possession or appointment of a receiver, or additional or supplementary
remedies.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(g)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>The filing of a court action is not intended to constitute a waiver of the right of any
party, including the suing party, thereafter to require submittal of the Claim to arbitration.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(h)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Any arbitration or trial by a judge of any Claim will take place on an individual basis
without resort to any form of class or representative action (the &#147;Class&nbsp;Action Waiver&#148;).
Regardless of anything else in this Dispute Resolution Provision, the validity and effect of
the Class&nbsp;Action Waiver may be determined only by a court and not by an arbitrator. The
parties to this Agreement acknowledge that the Class&nbsp;Action Waiver is material and essential
to the arbitration of any disputes between the parties and is nonseverable from the agreement
to arbitrate Claims. If the Class&nbsp;Action Waiver is limited, voided or found unenforceable,
then the parties&#146; agreement to arbitrate shall be null and void with respect to such
proceeding, subject to the right to appeal the limitation or invalidation of the Class&nbsp;Action
Waiver. <B>The Parties acknowledge and agree that under no circumstances will a class action be
arbitrated.</B></TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(i)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>By agreeing to binding arbitration, the parties irrevocably and voluntarily waive any right
they may have to a trial by jury in respect of any Claim. Furthermore, without intending in
any way to limit this agreement to arbitrate, to the extent any Claim is not arbitrated, the
parties irrevocably and voluntarily waive any right they may have to a trial by jury in
respect of such Claim. This waiver of jury trial shall remain in effect even if the Class
Action Waiver is limited, voided or found unenforceable. <B>WHETHER THE CLAIM IS DECIDED BY
ARBITRATION OR BY TRIAL BY A JUDGE, THE PARTIES AGREE AND UNDERSTAND THAT THE EFFECT OF THIS
AGREEMENT IS THAT THEY ARE GIVING UP THE RIGHT TO TRIAL BY JURY TO THE EXTENT PERMITTED BY
LAW.</B></TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.5 <U>Severability; Waivers</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If any part of this Agreement is not enforceable, the rest of the Agreement may be enforced. The
Bank retains all rights, even if it makes a loan after default. If the Bank waives a default, it
may enforce a later default. Any consent or waiver under this Agreement must be in writing.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.6 <U>Attorneys&#146; Fees</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower shall reimburse the Bank for any reasonable costs and attorneys&#146; fees incurred by the
Bank in connection with the enforcement or preservation of any rights or remedies under this
Agreement and any other documents executed in connection with this Agreement, and in connection
with any amendment, waiver, &#147;workout&#148; or restructuring under this Agreement. In the event of a
lawsuit or arbitration proceeding, the prevailing party is entitled to recover costs and reasonable
attorneys&#146; fees incurred in connection with the lawsuit or arbitration proceeding, as determined by
the court or arbitrator. In the event that any case is commenced by or against the Borrower under
the Bankruptcy Code (Title 11, United States Code) or any similar or successor statute, the Bank is
entitled to recover costs and reasonable attorneys&#146; fees incurred by the Bank related to the
preservation, protection, or enforcement of any rights of the Bank in such a case. As used in this
Section, &#147;attorneys&#146; fees&#148; includes the allocated costs of the Bank&#146;s in-house counsel.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.7 <U>Set-Off</U>.
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>In addition to any rights and remedies of the Bank provided by law, upon the occurrence and
during the continuance of any event of default under this Agreement, the Bank is authorized,
at any time, to set off and apply any and all Deposits of the Borrower or any other person
responsible for the Obligations (&#147;Obligor&#148;) held by the Bank against any and all Obligations
owing to the Bank. The set-off may be made irrespective of whether or not the Bank shall have
made demand under this Agreement or any guaranty, and although such Obligations may be
contingent or unmatured or denominated in a currency different from that of the applicable
Deposits.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>For the purposes of this Section, &#147;Deposits&#148; means any deposits (general or special, time or
demand, provisional or final, individual or joint) and any instruments owned by the Borrower
or any Obligor which come into the possession or custody or under the control of the Bank.
&#147;Obligations&#148; means all obligations, now or hereafter existing, of the Borrower to the Bank
under this Agreement and under any other agreement or instrument executed in connection with
this Agreement, and the obligations to the Bank of any Obligor.</TD>
</TR>

</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.8 <U>One Agreement</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement and any related security or other agreements required by this Agreement,
collectively:
</DIV>


<DIV style="margin-top: 6pt">
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(a)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>represent the sum of the understandings and agreements between the Bank and the Borrower
concerning this credit;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(b)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>replace any prior oral or written agreements between the Bank and the Borrower concerning
this credit; and</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR><TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">(c)</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>are intended by the Bank and the Borrower as the final, complete and exclusive statement of
the terms agreed to by them.</TD>
</TR>

</TABLE>
</DIV>
<DIV align="left" style="font-size: 10pt; margin-top: 6pt">In the event of any conflict between this Agreement and any other agreements required by this
Agreement, this Agreement will prevail. Any reference in any related document to a &#147;promissory
note&#148; or a &#147;note&#148; executed by the Borrower and dated as of the date of this Agreement shall be
deemed to refer to this Agreement, as now in effect or as hereafter amended, renewed, or restated.
</DIV>





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</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.9 <U>Indemnification</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower will indemnify and hold the Bank harmless from any loss, liability, damages,
judgments, and costs of any kind relating to or arising directly or indirectly out of (a)&nbsp;this
Agreement or any document required hereunder, (b)&nbsp;any credit extended or committed by the Bank to
the Borrower hereunder, and (c)&nbsp;any litigation or proceeding related to or arising out of this
Agreement, any such document, or any such credit; provided, however, that the Borrower shall not be
obligated to indemnify the Bank or any other person or entity for the Bank&#146;s own gross negligence
or willful misconduct. This indemnity includes but is not limited to attorneys&#146; fees (including
the allocated cost of in-house counsel). This indemnity extends to the Bank, its parent,
subsidiaries and all of their directors, officers, employees, agents, successors, attorneys, and
assigns. This indemnity will survive repayment of the Borrower&#146;s obligations to the Bank. All
sums due to the Bank hereunder shall be obligations of the Borrower, due and payable immediately
without demand.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.10 <U>Notices</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Unless otherwise provided in this Agreement or in another agreement between the Bank and the
Borrower, all notices required under this Agreement shall be personally delivered or sent by first
class mail, postage prepaid, or by overnight courier, to the addresses on the signature page of
this Agreement, or sent by facsimile to the fax numbers listed on the signature page, or to such
other addresses as the Bank and the Borrower may specify from time to time in writing. Notices and
other communications shall be effective (i)&nbsp;if mailed, upon the earlier of receipt or five (5)&nbsp;days
after deposit in the U.S. mail, first class, postage prepaid, (ii)&nbsp;if telecopied, when transmitted
if appropriate confirmation of receipt has been received, or (iii)&nbsp;if hand-delivered, by courier or
otherwise (including telegram, lettergram or mailgram), when delivered.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.11 <U>Headings</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">Article and Section headings are for reference only and shall not affect the interpretation or
meaning of any provisions of this Agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.12 <U>Counterparts</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement may be executed in as many counterparts as necessary or convenient, and by the
different parties on separate counterparts each of which, when so executed, shall be deemed an
original but all such counterparts shall constitute but one and the same agreement.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.13 <U>Prior Agreement Superseded; Guaranty Reaffirmed</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">This Agreement supersedes the Loan Agreement dated as of December&nbsp;5, 2007 by and between the Bank
and the Borrower, as amended, and any credit outstanding thereunder shall be deemed to be
outstanding under this Agreement. For the avoidance of doubt, the Continuing and Unconditional
Guaranty made by the Borrower in favor of the Bank guaranteeing the obligations of Graham Vacuum
and Heat Transfer Technology (Suzhou) Co., Ltd. to the Bank remains in full force and effect.
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">11.14 <U>Limitation of Interest and Other Charges</U>.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">If, at any time, the rate of interest, together with all amounts which constitute interest and
which are reserved, charged or taken by the Bank as compensation for fees, services or expenses
incidental to the making, negotiating or collection of the loan evidenced hereby, shall be deemed
by any competent court of law, governmental agency or tribunal to exceed the maximum rate of
interest permitted to be charged by the Bank to the Borrower under applicable law, then, during
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->26<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">such time as such rate of interest would be deemed excessive, that portion of each sum paid
attributable to that portion of such interest rate that exceeds the maximum rate of interest so
permitted shall be deemed a voluntary prepayment of principal. As used herein, the term
&#147;applicable law&#148; shall mean the law in effect as of the date hereof; provided, however, that in the
event there is a change in the law which results in a higher permissible rate of interest, then
this Agreement shall be governed by such new law as of its effective date.
</DIV>


<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Signature Page Follows&#093;
</DIV>




<P align="center" style="font-size: 10pt"><!-- Folio -->27<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="left" style="font-size: 10pt; margin-top: 6pt">The Borrower executed this Agreement as of the date stated at the top of the first page, intending
to create an instrument executed under seal.
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>

    <TD width="38%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
</TR>
<TR></TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top" colspan="2"><DIV style="margin-left:0px; text-indent:-0px">Bank of America, N.A.
</DIV></TD>
    <TD>&nbsp;</TD>

    <TD align="left" valign="top" colspan="3">Graham Corporation
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By:
</DIV></TD>
    <TD style="border-bottom: 1px solid #000000">/s/ Colleen M.
O'Brien&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD align="left" valign="top">By:
</TD>
    <TD style="border-bottom: 1px solid #000000">/s/ Jeffrey Glajch&nbsp;</TD>
    <TD align="left" valign="top"><B>(Seal)</B></TD>
</TR>


<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0"><DIV style="margin-left:0px; text-indent:-0px">Typed Name: Colleen M. O&#146;Brien
</DIV></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">Typed Name: Jeffrey Glajch
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0"><DIV style="margin-left:0px; text-indent:-0px">Title: Senior Vice President
</DIV></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">Title: Vice President-Finance &#038;
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0"><DIV style="margin-left:0px; text-indent:-0px">Administration
</DIV></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">and Chief Financial Officer
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0"><DIV style="margin-left:0px; text-indent:-0px">Address where notices to
</DIV></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">Address where notices to
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0"><DIV style="margin-left:0px; text-indent:-0px">the Bank are to be sent:
</DIV></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">the Borrower are to be sent:
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0"><DIV style="margin-left:0px; text-indent:-0px">One East Avenue
</DIV></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">20 Florence Avenue
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0"><DIV style="margin-left:0px; text-indent:-0px">Rochester, NY 14638
</DIV></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">Batavia, New York 14020
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">    <TD>&nbsp;</TD>
    <TD valign="top" colspan="0"><DIV style="margin-left:0px; text-indent:-0px">Facsimile: (585)&nbsp;546-9278
</DIV></TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">Telephone: (585)&nbsp;343-2216
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>    <TD>&nbsp;</TD>
    <TD align="left" valign="top" colspan="2">Facsimile: (585)&nbsp;815-2003
</TD>

    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt"><U>USA Patriot Act Notice</U>. Federal law requires all financial institutions to obtain, verify
and record information that identifies each person who opens an account or obtains a loan. The
Bank will ask for the Borrower&#146;s legal name, address, tax ID number or social security number and
other identifying information. The Bank may also ask for additional information or documentation
or take other actions reasonably necessary to verify the identity of the Borrower, guarantors or
other related persons.
</DIV>





<P align="center" style="font-size: 10pt"><!-- Folio -->28<!-- /Folio -->
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>Schedule&nbsp;8.7</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 12pt">Liens held by the Bank<br>
The following leases:
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000">Secured Party</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Financing Statement Date</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000">Filing Number</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Safeco Credit Co., Inc.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">08/14/01</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">d/b/a Safeline Leasing</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Toyota Motor Credit Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">09/07/07
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2007 3849360</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Toyota Motor Credit Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">09/07/07
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2007 3849402</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Toyota Motor Credit Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">11/09/07
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2007 4346499</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Toyota Motor Credit Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">11/09/07
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2007 4346507</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Toyota Motor Credit Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">11/09/07
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2007 4346531</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">GreatAmerica Leasing Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">06/12/08
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2008 2008413</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">GreatAmerica Leasing Corporation
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">08/15/08
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2008 2794269</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">IBM Credit, LLC
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">01/05/10
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">2010 0020069</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->29<!-- /Folio -->
</DIV>



</BODY>
</HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>l41251exv99w2.htm
<DESCRIPTION>EX-99.2
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="right" style="font-size: 10pt; margin-top: 12pt">Exhibit 99.2
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>TRADEMARK SECURITY AGREEMENT</U>
</DIV>


<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS TRADEMARK SECURITY AGREEMENT AMENDMENT 1 (&#147;Amendment&#148;), dated as of December&nbsp;3, 2010, is
made by and between Graham Corporation, a corporation formed under the laws of the State of
Delaware with offices at 20 Florence Avenue, Batavia, New York 14020 (the &#147;Debtor&#148;), and Bank of
America, N.A., a national banking association with offices at One East Avenue, Rochester, New York
14638 (the &#147;Secured Party&#148;).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This Amendment amends the Trademark Security Agreement (&#147;Security Agreement&#148;) made by the
Debtor in favor of the Secured Party dated as of December&nbsp;5, 2007. Capitalized terms not otherwise
defined herein have the meanings given to them in the Security Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Debtor and Secured Party hereby agree as follows:
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;<U>Schedule&nbsp;A</U> to the Security Agreement is hereby amended to add the information set
forth in <U>Schedule&nbsp;A</U> attached to and made a part of this Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;Debtor represents and warrants that a true and correct list of all of the existing
Collateral consisting of trademarks, trademark registrations or applications owned by Debtor, in
whole or in part, is set forth in <U>Schedule&nbsp;A</U> as amended by this Amendment.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;Except as provided in this Amendment, all of the terms and conditions of the Security
Agreement shall remain in full force and effect.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;This Amendment may be executed in counterparts, each of which when so executed shall be
deemed an original, but all such counterparts together shall constitute but one and the same
instrument. Delivery of an executed counterpart of this Agreement by facsimile or electronic
scanned copy shall be equally as effective as delivery of a manually executed counterpart. Any
party hereto delivering a counterpart of this Agreement by facsimile or electronic scanned copy
shall also deliver a manually executed counterpart, but the failure to so deliver a manually
executed counterpart shall not affect the validity, enforceability, or binding effect hereof.
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt">&#091;Signature Pages Follow&#093;
</DIV>



<P align="center" style="font-size: 10pt"><!-- Folio -->&nbsp;<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">




<DIV align="left" style="font-size: 10pt; margin-top: 6pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment, as of the date first
above written.
</DIV>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">Bank of America, N.A.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Colleen
M. O'Brien&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Colleen M. O&#146;Brien&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Senior Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="48%">&nbsp;</TD>
</TR>
<TR>
    <TD colspan="3" align="left">Graham Corporation<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top" align="left">&nbsp;</TD>
</TR><TR>
    <TD valign="top">By:&nbsp;&nbsp;</TD>

<TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/
Jeffrey
Glajch&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Jeffrey Glajch&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD colspan="2" align="left">Vice President-Finance &#038;<br>
Administration and Chief<br>
Financial Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt"><!-- Folio -->2<!-- /Folio -->
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV align="center" style="font-size: 10pt; margin-top: 18pt"><U>SCHEDULE A</U>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="7%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">COUNTRY<br></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">REFERENCE#<br></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">FILED</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 0px solid #000000">APPLICATION#</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" style="border-bottom: 0px solid #000000">REGDATE</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left" colspan="3" style="border-bottom: 0px solid #000000">REG#</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left">STATUS</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="left">CLASSES</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD colspan="15" valign="top" align="left"><B>GRAHAM ENGINEERING ANSWERS AND DESIGN</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000164<br>
37
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288203</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288203</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000170<br>
07
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288202</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">5/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288202</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000175<br>
40
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288204</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288204</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000178<br>
42
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288205</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288205</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000186<br>
11
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2/1/2007
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5882305</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2/14/2010
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5882305</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MEXICO<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000196<br>
11
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/17/2007
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">848887</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2/28/2008
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">1027534</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="right" valign="top">&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="15" valign="top" align="left"><B>GRAHAM VACUUM AND HEAT TRANSFER AND DESIGN</B></TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000165<br>
37
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288207</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288207</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000176<br>
40
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288208</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288208</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000179<br>
07
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288206</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/21/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288206</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000180<br>
42
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288209</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288209</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000187<br>
11
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2/1/2007
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5882304</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2/14/2010
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5882304</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>GVHT</B></DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000166<br>
37
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288211</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10/21/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288211</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000177<br>
40
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288186</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">9/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288186</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000182<br>
42
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288187</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">7/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288187</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000181<br>
07
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/14/2006
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288210</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">4/21/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5288210</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">CHINA<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000188<br>
11
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">2/1/2007
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5882574</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">11/28/2009
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">5882574</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD colspan="15" valign="top" align="left"><B>MICROMAX</B></TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">&nbsp;</TD>
    <TD valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom" style="background: #cceeff">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">United States<br>
REGISTERED
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">86038.000141<br>
11
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">12/17/2003
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">78/342,293</TD>
    <TD nowrap valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">6/17/2008
</TD>
    <TD>&nbsp;</TD>

    <TD colspan="2" align="left" valign="top">3,450,764</TD>
    <TD nowrap valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
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