EXHIBIT 10.38

 
AMENDMENT NO. 1
TO
SENIOR SECURED BRIDGE NOTE PURCHASE AGREEMENT

THIS AMENDMENT NO. 1 to the Senior Secured Bridge Note Purchase Agreement (the
“Amendment”) is entered into effective as of September 1, 2005, by and among
Axeda Systems Inc., a Delaware corporation (the “Company”), Axeda Systems
Operating Company, Inc., a Massachusetts corporation (“ASOC”), and JMI Equity
Fund V, L.P., a Delaware limited partnership, and JMI Equity Fund V (AI), L.P.,
a Delaware limited partnership (collectively, the “Purchasers”).

WHEREAS, the Company, ASOC and the Purchasers have entered into that certain
Senior Secured Bridge Note Purchase Agreement, dated as of July 8, 2005 (the
“Bridge Loan Agreement”).

WHEREAS, the Company, ASOC and the Purchasers desire to amend the provisions of
the Bridge Loan Agreement to modify the definition of Maturity Date.

NOW, THEREFORE, in consideration of the foregoing and the mutual promises and
conditions of the Amendment, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

1.    Maturity Date. Section 5(a)(vi) of the Bridge Loan Agreement is hereby
amended by removing “October 31, 2005” and inserting “December 15, 2005”.

2.    Amendment of Bridge Loan Agreement. This Amendment hereby amends the
Bridge Loan Agreement. Except as explicitly provided in this Amendment, the
Bridge Loan Agreement will remain unchanged and in full force and effect. The
term “Bridge Loan Agreement” as used in the Bridge Loan Agreement and all other
instruments and agreements executed thereunder shall for all purposes refer to
the Bridge Loan Agreement as amended by this Amendment.

3.    Counterparts. This Amendment may be executed in several counterparts, each
of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

4.    Capitalized Terms. Capitalized terms used but not otherwise defined herein
shall have the meaning ascribed to them in the Bridge Loan Agreement.

5.    Continued Effect; Conflict of Terms. Each of the parties hereto hereby
confirms that the Security Agreement, except as expressly amended by this
Amendment, remains in full force and effect. To the extent there is any conflict
between the terms of the Bridge Loan Agreement and this Amendment, the terms of
this Amendment shall take precedence.

6.    Governing Law. This Amendment shall be governed by and construed under the
laws of the Commonwealth of Massachusetts, without giving effect to the
principles of conflict of laws thereof.

 
 

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IN WITNESS WHEREOF, the parties hereto have executed this Amendment effective as
of the day and year first written above.

AXEDA SYSTEMS INC.
 
By:  /s/ Robert M. Russell Jr.

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Name: Robert M. Russell Jr.
Title: Chief Executive Officer
 
 
AXEDA SYSTEMS OPERATING COMPANY, INC.
 
By:   /s/ Karen F. Kupferberg

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Name: Karen F. Kupferberg
Title: Chief Financial Officer
 
 
JMI EQUITY FUND V, L.P.
 
By:  JMI Associates V, L.L.C.
its General Partner
 
By:   /s/ Bradford D. Woloson

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Name: Bradford D. Woloson
Title: Managing Member
 
JMI EQUITY FUND V (AI), L.P.
 
By:  JMI Associates V, L.L.C.
its General Partner
 
By:  /s/ Bradford D. Woloson

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Name: Bradford D. Woloson
Title: Managing Member
 
 
 
 

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