<table>
<tbody><tr style="vertical-align: top">
    <td style="width: 5%; font-family: Times New Roman, Times, Serif; layout-grid-mode: line">&nbsp;</td>
    <td style="width: 5%; font-family: Symbol; layout-grid-mode: line">·</td>
    <td style="width: 90%; layout-grid-mode: line; text-align: justify">All outstanding loans will become due on November 23, 2012, provided that following the Company’s request, the Bank may in its sole discretion agree to one year extensions of the maturity date;</td></tr>
<tr style="vertical-align: top">
    <td style="font-family: Times New Roman, Times, Serif; layout-grid-mode: line">&nbsp;</td>
    <td style="font-family: Symbol; layout-grid-mode: line">·</td>
    <td style="layout-grid-mode: line; text-align: justify">Interest accrues on outstanding loans at a per annum rate equal to the greater of (i) 4.0%, and (ii) the Bank’s prime rate as from time to time in effect plus one percent;</td></tr>
<tr style="vertical-align: top">
    <td style="font-family: Times New Roman, Times, Serif; layout-grid-mode: line">&nbsp;</td>
    <td style="font-family: Symbol; layout-grid-mode: line">·</td>
    <td style="layout-grid-mode: line; text-align: justify">Aggregate loans outstanding at any time are limited to a borrowing base equal to 80% of the Company’s eligible accounts receivable, as determined by the Bank, provided that the advance rate is limited to 50% with respect to accounts receivable from customers of the Company whose receivables constitute more than 50% of the Company’s receivables in the aggregate; and</td></tr>
<tr style="vertical-align: top">
    <td style="font-family: Times New Roman, Times, Serif; layout-grid-mode: line">&nbsp;</td>
    <td style="font-family: Symbol; layout-grid-mode: line">·</td>
    <td style="layout-grid-mode: line; text-align: justify">The Company is required to comply with a number of affirmative, negative and financial covenants. Among other things, these covenants restrict the Company’s ability to pay dividends, provide that the Company’s debt service coverage ratio (as determined pursuant to the Loan Agreement) cannot be less than 1.25 to 1.0 as of the end of any fiscal year, and require that the Company have immediately available cash at all times, including borrowings under the Credit Facility, of at least $3 million. The Company was in compliance with these covenants at September 30, 2012.</td></tr>
</tbody></table>
<table>
<tbody><tr>
<td> </td>
<td>·</td>
<td>All outstanding loans will become due on November 23, 2012, provided that following the Company’s request, the Bank may in its sole discretion agree to one year extensions of the maturity date;</td></tr>
<tr>
<td> </td>
<td>·</td>
<td>Interest accrues on outstanding loans at a per annum rate equal to the greater of (i) 4.0%, and (ii) the Bank’s prime rate as from time to time in effect plus one percent;</td></tr>
<tr>
<td> </td>
<td>·</td>
<td>Aggregate loans outstanding at any time are limited to a borrowing base equal to 80% of the Company’s eligible accounts receivable, as determined by the Bank, provided that the advance rate is limited to 50% with respect to accounts receivable from customers of the Company whose receivables constitute more than 50% of the Company’s receivables in the aggregate; and</td></tr>
<tr>
<td> </td>
<td>·</td>
<td>The Company is required to comply with a number of affirmative, negative and financial covenants. Among other things, these covenants restrict the Company’s ability to pay dividends, provide that the Company’s debt service coverage ratio (as determined pursuant to the Loan Agreement) cannot be less than 1.25 to 1.0 as of the end of any fiscal year, and require that the Company have immediately available cash at all times, including borrowings under the Credit Facility, of at least $3 million. The Company was in compliance with these covenants at September 30, 2012.</td></tr>
</tbody></table>