----

| ARTICLE      ONE INTERPRETATION                        | 1                                               |
|--------------------------------------------------------|-------------------------------------------------|
| Section      1.01                                      | Definitions                                     | 1 |
| Section      1.02                                      | United      States Currency                     | 9 |
| Section      1.03                                      | Interest      Calculation                       | 9 |
| Section      1.04                                      | Headings      and Table of Contents             | 9 |
| Section      1.05                                      | References                                      | 9 |
| Section      1.06                                      | Number      and Gender                          | 9 |
| Section      1.07                                      | Maximum      Interest Rate                      | 9 |
| Section      1.08                                      | Schedules                                       | 10 |
|                                                   |                                            |
| ARTICLE      TWO CREDIT FACILITY                       | 11                                              |
| Section      2.01                                      | Credit      Facility.                           | 11 |
| Section      2.02                                      | Illegality                                      | 11 |
|                                                   |                                            |
| ARTICLE      THREE PROCEDURES APPLICABLE TO BORROWINGS | 11                                              |
| Section      3.01                                      | Written      Instructions                       | 11 |
| Section      3.02                                      | Drawdown      Procedure                         | 11 |
|                                                   |                                            |
| ARTICLE      FOUR PAYMENTS                             | 12                                              |
| Section      4.01                                      | Repayment                                       | 12 |
| Section      4.02                                      | Prepayment                                      | 12 |
| Section      4.03                                      | Payments      Generally                         | 13 |
| Section      4.04                                      | No      Credit for Trust Funds                  | 13 |
| Section      4.05                                      | Payments      of Principal and Interest         | 13 |
| Section      4.06                                      | Use      of Proceeds                            | 13 |
| Section      4.07                                      | The      Credit Facility and the Note           | 14 |
| Section      4.08                                      | Other      Payment Terms                        | 14 |
|                                                   |                                            |
| ARTICLE      FIVE INTEREST, FEES AND EXPENSES          | 14                                              |
| Section      5.01                                      | Interest      on Overdue Amounts                | 14 |
| Section      5.02                                      | Reimbursement      of Expenses                  | 14 |
| Section      5.03                                      | Reimbursement      for Expenses                 | 14 |
|                                                   |                                            |
| ARTICLE      SIX CONDITIONS PRECEDENT                  | 15                                              |
| Section      6.01                                      | Conditions      - Credit Facility               | 15 |
| Section      6.02                                      | Waiver                                          | 17 |
|                                                   |                                            |
| ARTICLE      SEVEN REPRESENTATIONS AND WARRANTIES      | 17                                              |
| Section      7.01                                      | Representation      and Warranties              | 17 |
| Section      7.02                                      | Compliance      with Securities Laws            | 21 |
| Section      7.03                                      | Disclosure                                      | 21 |
| Section      7.04                                      | Lender      Representations and Warranties      | 21 |
| Section      7.05                                      | Survival      of Representations and Warranties | 22 |

----

| ARTICLE      EIGHT COVENANTS              | 22                                          |
|-------------------------------------------|---------------------------------------------|
| Section      8.01                         | Positive      Covenants                     | 22 |
| Section      8.02                         | Restrictive      Covenants                  | 26 |
|                                      |                                        |
| ARTICLE      NINE SECURITY                | 29                                          |
| Section      9.01                         | Security                                    | 29 |
| Section      9.02                         | Further      Assurances                     | 29 |
|                                      |                                        |
| ARTICLE      TEN EVENTS OF DEFAULT        | 29                                          |
| Section      10.01                        | Events      of Default                      | 29 |
| Section      10.02                        | Lender      May Waive                       | 32 |
| Section      10.03                        | Remedies      are Cumulative                | 32 |
| Section      10.04                        | Set-Off                                     | 33 |
|                                      |                                        |
| ARTICLE      ELEVEN ENVIRONMENTAL MATTERS | 33                                          |
| Section      11.01                        | Representations      and Warranties         | 33 |
| Section      11.02                        | Environmental      Covenants                | 33 |
|                                      |                                        |
| ARTICLE      TWELVE GENERAL               | 34                                          |
| Section      12.01                        | Notices                                     | 34 |
| Section      12.02                        | Performance      of Covenants by the Lender | 34 |
| Section      12.03                        | Indemnity                                   | 34 |
| Section      12.04                        | No      Set-Off or Counterclaim             | 35 |
| Section      12.05                        | Severability                                | 35 |
| Section      12.06                        | Time      of Essence                        | 35 |
| Section      12.07                        | Assignment                                  | 35 |
| Section      12.08                        | Entire      Agreement                       | 35 |
| Section      12.09                        | Amendments                                  | 35 |
| Section      12.10                        | Governing      Law                          | 35 |
| Section      12.11                        | Conflict                                    | 36 |
| Section      12.12                        | Successors      and Assigns                 | 36 |
| Section      12.13                        | Counterparts                                | 36 |
| Section      12.14                        | Waiver      of Trial by Jury.               | 36 |

----

| Schedule                      |                      | Description                             |
|-------------------------------|---------------------------|-----------------------------------------|
| Schedule “A” |   -   | Form of Opinion               |
| Schedule “B” | -                         | Litigation                              |
| Schedule “C” | -                         | Owned Properties                   |
| Schedule “D” | -                         | Leased Properties                  |
| Schedule “E” | -                         | Form of Promissory Note  |
| Schedule “F” | -                         | Form of Drawdown Request |
| Schedule “G” | -                         | Permitted Encumbrances             |
| Schedule “H” | -                         | Location of Assets            |
| Schedule “I” | -                         | Intellectual Property              |
| Schedule “J” | -                         | Licenses                                |
| Schedule “K” | -                         | Subsidiaries                            |
| Schedule “L” | -                         | Predecessor/Trade Names            |

----

|   | (1) | “Affiliate” of a Person      means any other Person which, directly or indirectly, controls or is      controlled by or is under common control with the first Person, and for      purposes of this definition, “control” (including with      correlative meanings the terms “controlled by” and      “under common control      with”) means the power to direct or cause the direction of the      management and policies of any Person, through the ownership of shares or      similar equity interests. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | “Agreement” means this      agreement and the schedules hereto and any amendments, restatements,      modifications or supplements to this agreement or the schedules at any      time and from time to time. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | “Applicable Law” means,      at any time, with respect to any Person, property, transaction or event,      all applicable laws, statutes, regulations, treaties, judgments and      decrees and (insofar as they have the force of law) all applicable      official directives, rules, consents, approvals, by-laws, permits,      authorizations, guidelines, orders and policies of any Governmental      Authority or Persons having authority over any of the parties      hereto. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (4) | “Average Daily Balance”      means, over any given period of time, the sum of the daily principal      balances of the Outstanding Borrowings as of 5:00 p.m. New York time for      each day during such time period, divided by the number of days in such      time period. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | “Books and Records” mean      all books, records, files, papers, disks, documents and other repositories      of data recording in any form or medium, evidencing or relating to the      collateral charged by the Security which are at any time owned by the      Borrower or to which the Borrower (or any Person on the Borrower’s behalf)      has access. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | “Borrower” means Diligent      Board Member Services, Inc. |
|--------|-----|------------------------------------------------------------------------|

|   | (7) | “Borrowings” means      advances of money under the CreditFacility. |
|--------|-----|---------------------------------------------------------------------------------|

|   | (8) | “Business Day” means a      day on which banks are open for business in New York City, New York, other      than a Saturday, Sunday, statutory or legal  holiday. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | “Capitalized Lease      Obligations” means monetary obligations under any agreements for      the lease or rental of real or personal property that in accordance with      GAAP are required to be classified and accounted for as capital      leases. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | “Closing Date” means      March 12, 2010 or such earlier or later date as may be mutually agreed      upon by the Lender and theBorrower. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | “Commitment” means the      commitment of the Lender to advance to the Borrower the principal amount      of up to US$1,000,000 pursuant to the terms of this    Agreement. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | “Commitment Fee” means a      fee of 0.5% per annum of the unused portion of the      Commitment.  For any given time period, the Commitment Fee shall      be calculated by taking the product of (x) 0.5%, (y) [the number      of days in such time period divided by 360], and (z) [$1,000,000      minus the Average Daily Balance during such time period].  The      Commitment Fee shall accrue daily inarrears. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | “Consolidated” means when      used to describe the calculation of any amount relating to the Borrower,      consolidated, in accordance withGAAP. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | “Contaminant” includes,      but is not limited to, any pollutant, dangerous, toxic or hazardous      substance or waste of any description whatsoever, hazardous materials or      contaminants including any of the foregoing as defined in any      Environmental Law. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | “Credit Facility” means      the Credit Facility made available by the Lender to the Borrower pursuant      to the terms of this Agreement. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (16) | “Default” means any of      the events described in Section 10.01 regardless of whether any      requirement in connection with such event for the giving of notice, the      lapse of time, or both, has been satisfied or  met. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (17) | “Default Rate” means the      per annum rate of interest equal to the Interest Rate plus, to the extent      permitted by law, 5.0% per annum, but in no event shall such rate exceed      the maximum rate permitted by ApplicableLaw. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (18) | “Demand” means any      communication of demand for payment of all or any portion of the      Outstanding Obligations, made in writing by the  Lender. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (19) | “Drawdown” means the      Lender’s advance of funds to the Borrower in accordance with this      Agreement and a drawdown request (each, a “Drawdown Request”) made      by the Borrower in the form of that set forth as Schedule “F”      hereto. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (20) | “Environmental Activity”      means any past, present or future activity, event or circumstance in      respect of a Contaminant, including, without limitation, its storage, use,      holding, collection, purchase, accumulation, assessment, generation,      manufacture, construction, processing, treatment, stabilization,      disposition, handling or transportation or its Release into the natural      environment including the movement through or in the air, soil, subsoil,      surface water or groundwater. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (21) | “Environmental Laws”      means any and all federal, provincial, state, municipal, local and foreign      statutes, laws, regulations, ordinances, rules, judgments, orders,      decrees, permits, licenses, agreements or other governmental restrictions      having the force of law relating to the environment, occupational health      and safety, health protection or any Environmental    Activity. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (22) | “Event of Default” means      any of the events specified in Section 10.01, provided that any      requirement in connection with such event for the giving of notice, the      lapse of time or both, has been satisfied or  met. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (23) | “Financial Year” of an      entity means the 12-month period ending on the fiscal year end of that      entity in each year. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------|

|   | (24) | “GAAP” means generally      accepted accounting principles which are in effect in the United States      from time to time and applied in a consistent manner from period to      period. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (25) | “Governmental Authority”      means any nation or government, any province, state, municipality, local      or other political subdivision thereof and any agency, instrumentality or      other entity thereof exercising executive, legislative, judicial,      regulatory or administrative functions of or pertaining to      government. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (26) | “Guarantee” means, with      respect to a Person, any absolute or contingent liability of that Person      under any guarantee, agreement, endorsement (other than for collection or      deposit in the ordinary course of business), discount with recourse or      other obligation to pay, purchase, repurchase or otherwise be or become      liable or obligated upon or in respect of any Indebtedness of any other      Person and including any absolute or contingent obligations      to: |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | advance      or supply funds for the payment or purchase of any Indebtedness of any      other Person, |
|--------|-----|--------------------------------------------------------------------------------------------------------|

|   | (ii) | purchase,      sell or lease (as lessee or lessor) any property, assets, goods, services,      materials or supplies primarily for the purpose of enabling any other      Person to make payment of Indebtedness or to assure the holder thereof      against loss, or |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | indemnify      or hold harmless any other Person from or against any losses, liabilities      or damages, in circumstances intended to enable such other Person to incur      or pay any Indebtedness or to comply with any agreement relating thereto      or otherwise to assure or protect creditors against loss in respect of      such Indebtedness. |
|--------|-------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (27) | “Indebtedness” of a      Person means, without duplication, |
|--------|------|-------------------------------------------------------------------------|

|   | (i) | all      debts, liabilities and obligations, direct, indirect, liquidated,      unliquidated, contingent and other, including principal, interest, charges      and fees, which in accordance with GAAP would be classified upon the      Person’s balance sheet as liabilities including, without limitation, all      Capitalized Lease Obligations and all Guarantees of such debts,      liabilities and obligations; and |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | all      obligations secured by any Security Interest, including principal,      interest, charges and fees, existing on property owned or acquired by the      Person subject to such Security Interest whether or not the Person has      assumed or otherwise become liable for the payment of such      obligations. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (28) | “Intellectual Property”      means for the Borrower and, if applicable, each of its      Subsidiaries: |
|--------|------|--------------------------------------------------------------------------------------------------------------------|

|   | (i) | inventions,      discoveries, methods, letters patent, applications for letters patent,      renewals, reissues, extensions, divisions, continuations and      continuations-in-part; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | trademarks      and service marks (and the goodwill pertaining thereto), trade names or      corporate names and any application, registration, or renewal pertaining      thereto; |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | copyright      in works, including, but not limited to, computer software, documentation,      source code, object code and all registrations and recordals thereof and      any programmable media, paper or other media on which such works are      fixed; |
|--------|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | industrial      designs, integrated circuit topographies and any registration      thereof; |
|--------|------|---------------------------------------------------------------------------------------------|

|   | (v) | trade      secrets, including know-how, ideas, plans, algorithms, hardware, firmware      and architectures, whether in written, graphic or oral    form; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | applications      or registrations set out in Schedule“I”; |
|--------|------|------------------------------------------------------------------------|

|   | (vii) | any      future developments or improvements relating to intellectual and      industrial property set out in (i) to (vi)  above; |
|--------|-------|-----------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | the      right to take action for any infringement of rights in intellectual and      industrial property prior to execution of this Agreement;    and |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ix) | any      option or right to make, use, sell, copy, modify, distribute, have made,      create derivative works from or sublicense any intellectual or industrial      property, including, without limitation, all rights acquired under any      License Agreement |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (29) | “Interest Payment Date”      means the first Business Day of each April, July, October and January      during the Term. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (30) | “Interest Rate” means an      interest rate of 9.50% per      annum. |
|--------|------|---------------------------------------------------------------------------------------|

|   | (31) | “Interim Interest” means      the interest payable at the Interest Rate for the period, if any, between      the Closing Date and the first Interest Payment  Date. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (32) | “Lender” means Spring      Street Partners, L.P. |
|--------|------|--------------------------------------------------------------|

|   | (33) | “License Agreements”      means all agreements pursuant to which the Borrower has obtained rights or      an option to acquire rights or has granted to a Person rights or an option      to acquire rights to use any Intellectual Property owned by a Person or      the Borrower, respectively. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (34) | “LLC Agreement” means      that certain Prepayment and Amendment Agreement, dated February 9, 2010,      by and between the Borrower and Services Share Holding  LLC. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (35) | “Maturity Date” means the      date which is eighteen (18) months from the Closing  Date. |
|--------|------|-------------------------------------------------------------------------------------------------------|

----

|   | (36) | “Note” means the      promissory note of the Borrower substantially in the form set forth in      Schedule “E”. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | (37) | “Outstanding Borrowings”      means, at the time of determination, the outstanding principal amount of      the Credit Facility. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------|

|   | (38) | “Outstanding Obligations”      means the aggregate of (i) Outstanding Borrowings, (ii) all unpaid      interest and fees thereon as herein provided, (iii) all other      indebtedness, liabilities and obligations (including without limitation      under any indemnities) and all other fees (including Commitment Fees),      charges and expenses required to be paid by the Borrower to the Lender      hereunder or pursuant to the Security or any other written agreements now      or hereafter entered into between the Borrower and the Lender pertaining      to the Credit Facility. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (39) | “Permitted Asset Sale”      means (a) any license of Intellectual Property in the ordinary course of      the Borrower’s business or (b) a sale, transfer, lease, contribution or      other conveyance by the Borrower of any asset, real or personal, excluding      Intellectual  Property, which satisfies any one of the following      conditions: |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | such      sale, transfer, lease, contribution or conveyance is in the ordinary      course of its business; |
|--------|-----|-------------------------------------------------------------------------------------------------------------|

|   | (ii) | such      sale, transfer, lease, contribution or conveyance is between the Borrower      and any Affiliate of the Borrower;or |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | the      net proceeds from any sale, transfer, lease, contribution or conveyance      are applied to acquire replacements of any assets which are the subject of      such sale, transfer, lease, contribution or  conveyance. |
|--------|-------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (40) | “Permitted Encumbrances”      means: |
|--------|------|--------------------------------------------------|

|   | (i) | inchoate      or statutory priorities, liens or trust claims for taxes, assessments and      other governmental charges or levies which are not delinquent or the      validity of which are currently being contested in good faith by      appropriate proceedings provided that there shall have been set aside a      reserve to the extent required by GAAP in an amount which is reasonably      adequate with respect thereto; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      right reserved to, or vested in, any municipality or Governmental      Authority by the terms of any lease, license, franchise, grant, or permit,      or by any statutory provision, to terminate any such lease, license,      franchise, grant or permit, or to require annual or periodic payments as a      condition of the continuancethereof; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | inchoate      or statutory liens of contractors, subcontractors, mechanics, suppliers,      material men and others in respect of construction, maintenance, repair or      operation of assets or properties, or other like possessory liens and      public utility liens provided the same are being contested by the Borrower      in good faith by appropriate and timely  proceedings; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (iv) | security      given to a public utility or other Governmental Authority or other public      authority when required by such utility or Governmental Authority in      connection with the operations of the Borrower in the ordinary course of      business; |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | title      defects which are of a minor nature and in the aggregate will not      materially impair the value or use of the property for the purposes for      which it is held; |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | the      Security; |
|--------|------|--------------------|

|   | (vii) | Security      Interests securing Purchase Money Obligations up to a maximum aggregate      amount of US$300,000, provided the Security Interest charges only the      asset which is the subject of the Purchase Money Obligations and no other      asset; |
|--------|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (viii) | Security      Interests identified in Schedule “G” annexed  hereto; |
|--------|--------|---------------------------------------------------------------------------------|

|   | (ix) | Security      Interests, other than those described in this subsection 1.01(40), the      existence of which have been disclosed in writing to the Lender and      consented to by the Lender in writing;and |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (x) | Security      Interests securing Capitalized Lease  Obligations. |
|--------|-----|------------------------------------------------------------------|

|   | (41) | “Permitted Indebtedness”      means the following Indebtedness of the  Borrower: |
|--------|------|----------------------------------------------------------------------------------------------|

|   | (i) | the      Outstanding Obligations; |
|--------|-----|-----------------------------------|

|   | (ii) | current      accounts payable arising in the ordinary course of business from the      purchase of goods and services; |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | any      other Indebtedness specifically permitted  hereunder; |
|--------|-------|----------------------------------------------------------------|

|   | (iv) | Capitalized      Lease Obligations and Purchase Money Obligations, including, without      limitation, Indebtedness to non-vendor third parties incurred to finance      the acquisition of new assets; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | Subordinated      Debt; and |
|--------|-----|-----------------------------|

|   | (vi) | Indebtedness      in respect of which the Lender has given its prior written consent as to      existence and ranking. |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | (42) | “Person” includes an      individual, a partnership, a joint venture, a trust, an unincorporated      organization, a company, a corporation, an association, a government or      any department or agency thereof and any other incorporated or      unincorporated entity. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (43) | “Property” means any      personal or real property owned, leased, occupied or under the charge,      management or control of theBorrower. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (44) | “Purchase Money      Obligations” means the outstanding balance of the purchase price of      real and/or personal property, title to which has been acquired or will be      acquired upon payment of such purchase price, or Indebtedness to      non-vendor third parties incurred to finance the acquisition of such new      or replacement real and/or personal property or any refinancing of such      Indebtedness or outstandingbalance. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (45) | “Release” includes      discharge, spray, inject, inoculate, abandon, deposit, spill, leak, seep,      pour, emit, empty, throw, dump, place, escape, leach, disperse, migrate      and exhaust, and when used as a noun (as applicable) has the same      meaning. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (46) | “Security” means the      security and agreements described in Article Nine and any additional      security issued from time to time by any Person in support of the      liabilities and obligations of the Borrower  hereunder. |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (47) | “Security Interest”      includes a mortgage, charge, floating charge, pledge, hypothecation,      assignment, lien, encumbrance, conditional sale agreement or other title      retention agreement, subordination trust or other security interest or      arrangement of any kind or character intended to create a security      interest in substance regardless of whether the person creating the      interest retains an equity of redemption, and any agreement to provide or      enter into at any time or on the happening of any event such a security      interest or arrangement. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (48) | “Subordinated Debt” means      (i) Indebtedness (and any related Security Interest) which has been      validly and absolutely postponed and subordinated in right of security,      payment and collection and in all other respects to the repayment in full      of the Outstanding Obligations and any refinancing thereof which is      subordinated and postponed to the same extent and (ii) all other debt      subordinated to the Outstanding Obligations which the Lender is prepared      to include within the definition of “Subordinated Debt” in      its sole and unfettered discretion. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (49) | “Subsidiary” means a body      corporate which is a subsidiary of  the  Borrower or      another body corporate. |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (50) | “Tax” and “Taxes” include all      present and future taxes, levies, imposts, stamp taxes, duties, charges to      tax, fees, deductions, withholdings and any restrictions or conditions      resulting in a charge to tax and all penalties, interest and other      payments on or in respect thereof. |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (51) | “Term” means a period of      eighteen (18) months from and after the Closing  Date. |
|--------|------|--------------------------------------------------------------------------------------------------|

----

|   | (52) | “United States Dollars”,      “US Dollars” and      “US$” each means      lawful money of  the United States of  America. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (53) | “Written” and “In Writing” shall      include printing, typewriting or any electronic means of communication      capable of being visibly reproduced at the point of reception      including  telecopy. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | In      the event that any provision of this Agreement would oblige the Borrower      to make any payment of interest or any other payment which is construed by      a court of competent jurisdiction to be interest in an amount or      calculated at a rate which would be prohibited by law or would result in a      receipt by the Lender of interest at a criminal rate, then notwithstanding      such provision, such amount or rate shall be deemed to have been adjusted      nunc pro tunc to      the maximum amount or rate of interest, as the case may be, as would not      be so prohibited by law or so result in a receipt by the Lender of      interest at a criminal rate, such adjustment to be effected, to the extent      necessary, as follows: |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (i) | firstly,      by reducing the amount or rate of interest required to be paid under      Section 5.01 of this Agreement; and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | thereafter,      by reducing any fees, commissions, premiums and other amounts which would      constitute interest for the purposes of the Applicable  Law; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | If,      notwithstanding the provisions of clause (1) of this Section and after      giving effect to all adjustments contemplated thereby, the Lender shall      have received an amount in excess of the maximum permitted by such clause,      then such excess shall be applied by the Lender to the reduction of the      principal balance of the Outstanding Borrowings and not to the payment of      interest or if such excessive interest exceeds such principal balance,      such excess shall be refunded to the Borrower;  and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Any      amount or rate of interest referred to in this Section shall be determined      in accordance with GAAP at an effective annual rate of interest over the      term of this Agreement on the assumption that any charges, fees or      expenses that fall within the meaning of “interest” (as defined under      Applicable Law) shall, if they relate to a specific period of time, be      prorated over that period of time and otherwise be prorated over the Term      of this Agreement and, in the event of dispute, a certificate of a      nationally recognized independent auditor appointed by the Lender shall be      conclusive for the purposes of such  determination. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Schedule                      |                            | Description                             |
|-------------------------------|---------------------------------|-----------------------------------------|
|                          |                            |                                    |
| Schedule “A” |   –   | Form of Opinion               |
| Schedule “B” | –                         | Litigation                              |
| Schedule “C” | –                         | Owned Properties                   |
| Schedule “D” | –                         | Leased Properties                  |
| Schedule “E” | –                         | Form of Promissory Note  |
| Schedule “F” | –                         | Form of Drawdown Request |
| Schedule “G” | –                         | Permitted Encumbrances             |
| Schedule “H” | –                         | Location of Assets            |
| Schedule “I” | –                         | Intellectual Property              |
| Schedule “J” | –                         | Licenses                                |
| Schedule “K” | –                         | Subsidiaries                            |
| Schedule “L” | –                         | Predecessor/Trade Names            |

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|   | (1) | if      applicable, by way of a payment of Interim Interest on the Average Daily      Balance at the Interest Rate in arrears, for the period commencing on the      Closing Date, through and including the day preceding the first Interest      Payment Date; |
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|   | (2) | by      way of quarterly interest-only payments, made in arrears, each such      payment to be made on the applicable Interest Payment Date and in the      amount calculated by taking the product of (i) the Average Daily Balance      since the prior Interest Payment Date and (ii) the Interest Rate, and      dividing that number by 4; and |
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|   | (3) | by      way of quarterly payments, made in arrears on each Interest Payment Date,      of the Commitment Fee, in each case calculated over the period of time      since the most recent payment of the Commitment  Fee. |
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|   | (1) | Representations and      Warranties True.  The representations and warranties      contained in Section 7.01 of this Agreement are true and correct as of the      Closing Date, and shall continue to be true and correct in every material      respect during the Term as if made by the Borrower on the Closing      Date. |
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|   | (2) | Resolutions and      Certificates.  The Lender shall have received, duly      executed and in form and substance satisfactory to  it: |
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|   | (i) | a      copy of the Certificate of Incorporation and by-laws of the Borrower and a      copy of the resolutions of the board of directors of the Borrower      authorizing the execution, delivery and performance of this Agreement, the      Security and any other instruments contemplated hereunder, certified by an      appropriate officer of the Borrower (with such resolutions and consents to      evidence the consent of a disinterested majority of the Borrower’s Board      of Directors and approval of not less than 60% of the shares of the      Borrower’s Series A preferred stock) (delivered on Closing Date      only); |
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|   | (ii) | a      Certificate of Good Standing from the Secretary of State of the State of      Delaware (delivered on Closing Dateonly); |
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|   | (iii) | a      certificate of incumbency for the Borrower showing the names, offices and      specimen signatures of the officers who will execute this Agreement, the      Security and any other instruments contemplated hereunder and thereunder      (delivered on Closing Date only);and |
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|   | (iv) | such      additional supporting documents as the Lender or its counsel may      reasonably request. |
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|   | (3) | Delivery of      Security.  The Lender shall have received the Security      (together with any necessary consents, estoppels, confirmations,      priorities agreements or subordinations of third parties as may be      required by the Lender) duly executed by the issuer thereof and in form      and substance satisfactory to the Lender and its  counsel. |
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|   | (4) | Registration.  The      Security has been registered, recorded or filed in all jurisdictions      deemed necessary by the Lender and itscounsel. |
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|   | (5) | Indebtedness.  Except      for the Permitted Indebtedness, the Borrower shall not have any other      Indebtedness. |
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|   | (6) | Legal Opinions.      The Lender shall have received from Robert Norton, general counsel to the      Borrower, a favorable legal opinion in connection with this Agreement, and      the Security, substantially in the form of the opinion annexed as Schedule      “A” hereto (delivery on Closing Dateonly). |
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|   | (7) | No      Default.  No Default or Event of Default has occurred and      is continuing. |
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|   | (8) | Organization and      Capital Structure.  The Lender shall be satisfied with      the organizational and capital structure of the Borrower.  The      Lender agrees and confirms that it is satisfied with the Borrower’s      organizational and capital structure as of the Closing Date for purposes      of this subsection (8). |
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|   | (9) | Material Adverse      Change.  Nothing shall have occurred nor any fact become      known to the Lender of which the Lender was not aware at the date of this      Agreement and which is reasonably likely to have a material adverse effect      on the  general affairs, financial condition, business, property      or assets of the Borrower or creates a material impairment in the prospect      of repayment of any portion of the Credit Facility to be advanced by the      Lender or results in a material impairment of the value or priority of the      Lender’s Security Interest. |
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|   | (10) | Transaction      Expenses.  The Lender shall have received payment in full      of all reasonable fees and out of pocket expenses payable to the Lender      which have become due on or before the Closing Date (including payment of      all fees and expenses of counsel to theLender). |
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|   | (11) | Insurance.  The      Lender shall have received certificates of insurance in accordance with      Section 8.01(8). |
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|   | (12) | Material      Contracts. Lender shall be satisfied that all material agreements,      contracts, permits, licenses and leases of the Borrower are in full force      and effect and that the Borrower and the other parties thereto are not in      default thereunder. |
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|   | (13) | Security      Interests.  All Security Interests or secured convertible      debentures charging any asset of the Borrower, other than Security      Interests in favor of the Lender and Permitted Encumbrances, shall have      been (i) discharged, (ii) fully subordinated and postponed in right of      security and payment in favor of the Lender’s Security and the Outstanding      Obligations, or (iii) if applicable, converted into equity securities of      the Borrower. |
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|   | (14) | Financial      Performance.  The Lender shall have received a      certificate from the Borrower, and any supporting financial documentation      that the Lender may reasonably request, indicating that the Borrower has      achieved in the aggregate projected quarterly annualized license fees      during its two (2) most recent fiscal quarters, and has maintained its      expenses, all in accordance with the Borrower’s most recent annual      budget. |
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|   | (1) | Due      Incorporation.  The Borrower is a corporation duly      incorporated, organized and in good standing under the laws of the State      of Delaware.  The Borrower has all necessary corporate power and      authority to own its properties and assets and to carry on business as now      conducted and is duly licensed or registered or otherwise qualified to      carry on business in all jurisdictions wherein the nature of its assets or      the business transacted makes such licensing, registration or      qualification necessary, including, without limitation, the States of      Delaware, New York and the nation of New Zealand, except where failure to      do so would not have a material adverse effect on such assets or the      ability of the Borrower to perform its obligations    hereunder. |
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|   | (2) | Power.  The      Borrower has full corporate power and capacity to enter into, deliver and      perform its obligations under this Agreement, the Note, the Security and      all other instruments contemplatedhereunder. |
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|   | (3) | Due Authorization and      No Conflict.  The execution, delivery and performance by      the Borrower of this Agreement, the Note, the Security, and all other      instruments contemplated hereunder and the consummation of the      transactions contemplated hereby andthereby: |
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|   | (i) | have      been duly authorized by all necessary corporate  action; |
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|   | (ii) | do      not and will not conflict with, result in any breach or violation of, or      constitute a default under the Certificate of Incorporation or by-laws of,      or any Applicable Laws, determination or award presently in effect and      applicable to the Borrower, or of any commitment, agreement or any other      instrument to which the Borrower is now a party or is otherwise      bound; |
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|   | (iii) | do      not (except for the Security) result in or require the creation of any      Security Interest upon or with respect to any of the properties or assets      of the Borrower; and |
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|   | (iv) | do      not require the consent or approval (other than those consents or      approvals already obtained and copies of which have been delivered to the      Lender) of, or registration or filing with, any other party (including      shareholders or directors of the Borrower) or any Governmental Authority      having jurisdiction except for filings in connection with the perfection      of the Security Interests created by the  Security. |
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|   | (4) | Valid and Enforceable      Obligations.  This Agreement, the Note, the Security and      all other instruments contemplated hereunder to which the Borrower is a      party, are, or when executed and delivered to the Lender will be, legal,      valid and binding obligations of the Borrower enforceable by the Lender in      accordance with their respectiveterms. |
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|   | (5) | Title.  Subject      only to Permitted Encumbrances, the Borrower has good and marketable title      to its real and personal property, free and clear of all Security      Interests. |
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|   | (6) | Validity and Priority      of Security.  Subject only to Permitted Encumbrances, the      Security creates a valid first priority, charge, lien and security      interest on the accounts receivable of the  Borrower. |
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|   | (7) | No      Actions.  Save as set forth in Schedule “B”, there are no      actions, suits, proceedings, inquiries or investigations existing or, to      the knowledge of the Borrower, pending, threatened or affecting the      Borrower in any court or before or by any federal, state or municipal or      other governmental department, commission, board, tribunal, bureau or      agency, domestic or foreign, which are reasonably likely to affect      adversely the financial condition, property, assets, operations or      business of the Borrower, the ability of the Borrower to repay the      Outstanding Obligations or any part thereof or which are reasonably likely      to affect adversely the ability of the Borrower to perform any of its      obligations under this Agreement, the Note, the Security or any other      instrument contemplated hereunder, or the validity or enforceability of      this Agreement or the Security. |
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|   | (8) | No Material Adverse      Change or Event of Default.  No event has occurred and is      continuing, and no circumstance exists which has not been waived, and      which constitutes a Default or Event of Default hereunder or, to the best      of the Borrower’s knowledge, a default or event of default in respect of      any material commitment, agreement or any other instrument to which the      Borrower is now a party or is otherwise bound, entitling any other party      thereto to accelerate the maturity of amounts of principal owing      thereunder, or terminate any such material commitment, agreement or      instrument, or which would have a material adverse effect upon the general      affairs, financial condition, property, assets, operations or business of      the Borrower. |
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|   | (9) | Compliance with      Law.  The Borrower is not in violation of any terms of      its Certificate of Incorporation or by-laws or, to the best of the      Borrower’s knowledge, of any law, regulation, rule, order, judgment, writ,      injunction, decree, determination or award presently in effect and      applicable to it, the violation of which would have a material adverse      effect on the general affairs, financial condition, property, assets,      operations or business of theBorrower. |
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|   | (10) | Location of      Assets.  Schedule “C” contains the legal description of      all real property owned by the Borrower. Set out in Schedule “D” is a list      of all real property locations leased by the Borrower. Set out in Schedule      “H” is a list of all real property locations in which any material asset      owned by the Borrower is located and which locations are neither owned nor      leased by the Borrower. |
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|   | (11) | Subsidiaries.  Other      than as set out in Schedule “K” to this Agreement, the Borrower does not      own any shares or voting securities of any Person and has no      Subsidiaries.  The Subsidiaries, collectively, do not have      assets in excess of $150,000. |
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|   | (12) | Taxes.  The      Borrower has filed all foreign, federal, state and local tax returns which      are required to be filed and has paid all Taxes due pursuant to such      returns or pursuant to any assessment received by the Borrower except such      Taxes, if any, as are being contested in good faith and as to which      adequate reserves have been provided.  The charges, accruals and      reserves on the books of the Borrower in respect of any Taxes or other      governmental charges are adequate. |
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|   | (13) | Intellectual      Property. |
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|   | (i) | The      Borrower solely owns or licenses pursuant to a License Agreement all      Intellectual Property, necessary for the conduct in all material respects      of its business as now conducted without any conflict known to the      Borrower with the rights of others, and in each case free from any      Security Interest except for Permitted Encumbrances and the Security. No      Intellectual Property of the Borrower has been dedicated to the      public.  Set out in Schedule “I” are all registered or applied      for patents, patent applications, trademarks, trade names, copyrights,      licenses and rights with respect to the Intellectual Property owned by the      Borrower. |
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|   | (ii) | Any      Intellectual Property that is not owned by the Borrower is used with the      consent of or license from the rightful owner through the License      Agreements set forth in Schedule “J” hereto; such License Agreements are      valid and subsisting and in good standing and there are no defaults      thereunder by the Borrower or, if applicable, its Subsidiaries. The      Borrower has all rights necessary to use the Intellectual      Property  described in the License Agreements set out in      Schedule “J” hereto, free from any Security Interest, except for Permitted      Encumbrances and the Security. |
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|   | (14) | Supplier and Trade      Relations. There is not any actual or, to the best of the      Borrower’s knowledge and belief, threatened termination or cancellation      of, or any material adverse change in, the business relationship between      the Borrower and any supplier or vendor material to the operations of the      Borrower. |
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|   | (15) | Labor      Matters.  To the best of the Borrower’s knowledge, there      are no strikes or other labor disputes against the Borrower that are      pending or threatened.  All payments due from the Borrower on      account of workers compensation, social security, employment insurance,      employee health plans and insurance of every kind and employee income tax      source deductions and vacation pay have been paid.  The Borrower      does not have any obligation under any collective bargaining agreement      nor, to the best of the Borrower’s knowledge, is there any organizing      activity involving the Borrower  by any labor union or group of      employees.  All employee and employer contributions under any      pension plan operated by the Borrower have been made and the fund or funds      established under such plans are funded in accordance with applicable      regulatory requirements and there exists no going concern unfunded      liabilities or solvency deficienciesthereunder. |
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|   | (16) | Accuracy of      Information. All factual information previously or      contemporaneously furnished to the Lender by or on behalf of the Borrower      in writing for purposes of or in connection with this Agreement or any      transaction contemplated hereby, including, without limitation, any      financial statement, budget, balance sheet or business plan, is true and      accurate in every material respect and such information is not incomplete      by the omission of any material fact necessary to make such information      not misleading. |
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|   | (17) | Solvency.  The      Borrower is solvent and is generally able to pay its debts as they become      due and will be able to do so after giving effect to the transactions      contemplated in this Agreement. |
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|   | (18) | Chief Executive      Office. The chief executive office, principal place of business and      place where the Borrower keeps its non-financial Books and Records is      located at 39 West 37th Street, 8th floor, New York City, New York      10018. |
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|   | (19) | Financial Year      End. The financial year end of the Borrower is the last day of      December. |
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|   | (20) | Guarantees. The      Borrower has not guaranteed the obligations of any Person in respect of      Indebtedness for borrowed money other than in connection with Permitted      Indebtedness. |
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|   | (21) | Authorized and Issued      Capital. The authorized capital of the Borrower consists of      250,000,000 shares of common stock, par value $0.001 per share, of which      90,440,000 shares are (as of the Closing Date) issued and outstanding, and      50,000,000 shares of preferred stock, all designated as Series A      Preferred Stock, par value $0.001 per share, of which 32,667,123 shares      are (as of the Closing Date) issued and  outstanding. |
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|   | (22) | No Required      Disposition. Except as set forth in Schedule “J”, there is no      existing agreement, option, right or privilege capable of becoming an      agreement or option pursuant to which the Borrower would be required to      sell or otherwise dispose of any of its personal property, including,      without limitation, IntellectualProperty. |
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|   | (23) | Predecessor Names and      Trade Names.  Since the date of its incorporation, the      Borrower has not used nor does it now use any name other than its current      corporate name and any other names set out in Schedule “L” annexed      hereto. |
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|   | (24) | No Consumer      Goods.  The Borrower does not own any consumer goods      which are material in value or which are material to the business,      operations, property, condition or prospects (financial or otherwise) of      the Borrower. |
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|   | (25) | Partnership.  The      Borrower is not in partnership with any Person nor is the Borrower and any      of its Subsidiaries a participant in any joint  venture. |
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|   | (26) | No      Claims.  The Borrower does not have any existing claims      against the Lender. |
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|   | (1) | the      Lender is a limited partnership whose primary place of business is located      in New York City, New York, and all necessary approvals to authorize the      execution of this Agreement on behalf of the Lender have been      obtained; |
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|   | (2) | the      Lender has the right and authority to enter into this Agreement and make      the advances of credit contemplatedhereby; |
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|   | (3) | the      Lender is acquiring the Note as principal for its own account and not for      the benefit of any other person; |
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|   | (4) | the      Lender is (i) an “accredited investor” within the meaning of the      Securities Act of 1933; (ii) is acquiring the Note as an investment and      not for resale, and (iii) is able to evaluate its investment in the      Borrower on the basis of general business information respecting the      Borrower presented by the Borrower; |
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|   | (5) | the      Lender has had the opportunity to ask and have answered any and all      questions which the Lender wished to have answered with respect to the      business and affairs of theBorrower; |
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|   | (1) | Existence.  The      Borrower will do or cause to be done all such things as are necessary to      maintain its corporate existence in good standing, to ensure that it has,      at all times, the right and is duly qualified to conduct its business and      to obtain and maintain all rights, privileges and licenses necessary for      the conduct of its business. |
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|   | (2) | Conduct of      Business.  The Borrower will maintain, operate and use      its properties and assets, and will carry on and conduct its business so      as to preserve and protect such properties and assets and business and the      profits thereof. |
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|   | (3) | Payment of Principal,      Interest and Expenses. The Borrower will duly and punctually pay or      cause to be paid to the Lender the Outstanding Obligations at the times      and places and in the manner provided for  herein. |
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|   | (4) | Payment of Taxes and      Claims.  The Borrower will pay and discharge promptly      when due all Taxes, assessments and other governmental charges or levies      imposed upon it or upon its properties or assets or upon any part thereof,      as well as all claims of any kind (including claims for labor, materials      and supplies) which, if unpaid, would by law become a lien, charge, trust      or other claim upon any such properties or assets; but the Borrower shall      not be required to pay any such Tax, assessment, charge or levy or claim      if the amount, applicability or validity thereof shall be contested in      good faith by appropriate proceedings and if the Borrower shall have set      aside on its books a reserve to the extent required by GAAP in an amount      which is reasonably adequate with respect  thereto. |
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|   | (5) | Use of      Proceeds.  The Borrower shall use the proceeds of all      Borrowings exclusively for the purposes set forth in subsection      4.06. |
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|   | (6) | Reserves.  The      Borrower will maintain appropriate reserves for Taxes and other contingent      expenses or liabilities in accordance withGAAP. |
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|   | (7) | Other      Information.  The Borrower shall furnish to the Lender      promptly on written request therefor such other information in its      possession respecting its financial condition and its business and affairs      as the Lender may from time to time reasonably  require. |
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|   | (8) | Insurance. |
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|   | (i) | Borrower      shall obtain and maintain for the Term, at its own expense, and present      Lender with certificates evidencing the following    coverages: |
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|   | (A) | “All      Risk” property damage insurance against loss or damage.  The      coverage limit shall be at least equal to the balance sheet value of the      tangible personal property of the Borrower.  The deductible      shall not exceed US$25,000. |
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|   | (B) | Commercial      General Liability Insurance (including contractual liability, products and      completed operations coverage) reasonably satisfactory to      Lender.  The limit of liability shall be at least equal to      US$1,000,000 per occurrence (inclusive of any excess umbrella liability      coverage).  The policy shall be without deductible, except for      the products liability coverage which may have a deductible up to      US$10,000. |
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|   | (ii) | Such      other insurance against risks of loss and with terms as shall be      reasonably required by Lender.  All policies of insurance shall      be placed with financially sound, commercial insurers reasonably      satisfactory to the Lender. |
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|   | (9) | Books and      Records.  The Borrower will, at all times, maintain      proper records and books of account in accordance with GAAP (except that      the unaudited financial statements may not be in accordance with GAAP      because of the absence of footnotes normally contained therein and are      subject to normal year-end adjustments which in the aggregate will not be      material) and therein make true and correct entries of all dealings and      transactions relating to its business and, if requested in writing by the      Lender, will make the same available for inspection by the Lender or any      agent of the Lender at all reasonable times during normal business hours      following reasonable notice. |
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|   | (10) | Reporting      Requirements.  Borrower shall furnish to the      Lender: |
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|   | (i) | Financial      Statements.  Promptly as they are available and in any      event: (i) within sixty (60) days of the end of each fiscal quarter of the      Borrower,  consolidated quarterly financial statements of the      Borrower and any Subsidiaries; and (ii) within thirty (30) days of each      month end, the unaudited, consolidated internal financial statements of      the Borrower and any Subsidiaries. |
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|   | (ii) | Notice of      Defaults.  As soon as possible, and in any event within      three (3) Business Days after the discovery of a Default or Event of      Default, provide the Lender with an officer’s certificate setting forth      the facts relating to or giving rise to such Default or Event of Default      and the remedial action which the Borrower has taken or proposes to take      with respect thereto. |
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|   | (iii) | Miscellaneous.  Such      other information as the Lender may reasonably request from time to      time. |
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|   | (11) | Access.  The      Borrower will permit the Lender through its officers or employees or      through any agents or consultants retained by it, upon request following      reasonable notice, to have reasonable access during normal business hours      and from time to time (but not more often than twice per year, unless the      Lender has a good faith belief or concern regarding the Borrower’s ability      to meet its financial projections or repay the Outstanding Obligations, in      which case the foregoing limitation shall not apply), to any of the      Borrower’s premises and, as reasonably requested by the Lender, to any      records, information or data in its possession so as to enable the Lender      to ascertain the state of the Borrower’s operations, and will permit the      Lender, to make copies of and abstracts from such records, information or      data and will, upon request of the Lender and at Lender’s expense (if such      expenses are not immaterial), deliver to the Lender copies of such      records, information or data. |
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|   | (12) | Notice of Material      Adverse Change.  The Borrower will give to the Lender      prompt written notice, and in any event within three (3) Business Days of      the occurrence thereof, of any material adverse change in the general      affairs, business, condition (financial or otherwise) of the Borrower or      any of its Subsidiaries, or of any material loss, destruction or damage to      its properties and assets, or if there is a material impairment of the      prospect of repayment of any portion of the Outstanding Obligations owing      to the Lender or a material impairment of the value or priority of the      Lender’s Security Interest in theProperty. |
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|   | (13) | Notice of      Litigation.  The Borrower will give to the Lender prompt      written notice, and in any event within five (5) Business Days of the      occurrence thereof, of any material action, suit, litigation, or other      proceeding which is commenced or threatened against it and which has a      claimed amount in excess ofUS$100,000. |
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|   | (14) | Registration of      Security.  The Borrower will provide the Lender with such      assistance and do such things as the Lender may from time to time request      so that the Security and any other instruments of conveyance or assignment      effected pursuant to this Agreement or otherwise will be and remain      registered, recorded or filed from time to time in such manner and in such      places as may in the opinion of the Lender be necessary or advisable in      perfecting the Security Interests constituted  thereby. |
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|   | (15) | Material      Contracts.  The Borrower shall perform all material      obligations of the Borrower pursuant to all documents, contracts and      agreements material to the operations of the Borrower, subject to any good      faith disputes by the Borrower with respect  thereto. |
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|   | (16) | Compliance with      Laws.  The Borrower shall comply in all respects with all      Applicable Laws, non-compliance with which could have a material adverse      effect on Borrower’s business oroperations. |
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|   | (17) | New      Locations.  The Borrower shall advise the Lender in      writing not less than thirty (30) days’ prior to the Borrower: (i)      changing the location of its registered office, principal place of      business or the location of its records or acquiring any such new      locations; (ii) establishing new places of business; (iii) keeping,      maintaining or storing inventory at any location other than the locations      listed in Schedules “C”, “D” or “H” ; or (iv) changing its corporate name      or domicile.  Upon any event described in subparagraph (iii)      above, Schedules “C”, “D” or “H”, as applicable, shall be deemed to be      amended to reflect such occurrence without the requirement of any further      action. |
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|   | (18) | Maintenance of      Equipment and Similar Assets.  The Borrower, in      accordance with commercially reasonable standards, shall keep and maintain      all items of equipment and other similar types of personal property in      good operating condition and repair and shall make all necessary      replacements thereof and renewals thereto so that the value and operating      efficiency thereof shall, at all times, be maintained and preserved,      ordinary wear and tear excepted. |
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|   | (19) | Maintenance of      Intellectual Property.  The Borrower shall pay all fees      and take all commercially reasonable steps necessary in a prompt and      diligent manner to keep and maintain the Intellectual Property in force,      updated, valid and enforceable and to maintain the confidential,      proprietary nature of all trade secrets, know how and other unregistered      Intellectual Property. |
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|   | (20) | Additional      Security.  In the event that the Borrower acquires or      incorporates a Subsidiary with assets, rights or property with a book      value (as determined by the financial statements of such Subsidiary) in      excess of US$100,000 or an existing Subsidiary (or any Subsidiary of a      Subsidiary), acquires assets, rights or property with a book value (as      determined by the financial statements of such Subsidiary) in excess of      US$100,000 outside of the ordinary course of business, the Borrower shall      forthwith deliver to the Lender, in form and substance satisfactory to the      Lender and its counsel, |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | an      instrument or instruments of the Subsidiary in favor of the Lender and      pursuant to which the Subsidiary shall guarantee the Outstanding      Obligations of the Borrower, postpone the indebtedness, liabilities and      obligations of the Borrower to such Subsidiary to the Outstanding      Obligations of the Borrower, grant a general security interest in favor of      the Lender as security for its obligations to the Lender pursuant to such      guarantee and represents and warrants substantially as to the matters      referred to in Section 7.01 as they would relate to such      Subsidiary; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | certified      copies of the certificate of incorporation and by-laws of each of such      Subsidiary and of the resolutions of the board of directors of each of      such Subsidiary approving the aforesaid instruments and approving the      giving of any financial assistance and of all documents evidencing other      necessary corporate action of each such Subsidiary and any shareholder      agreement to which the Borrower may be a party with respect to its      shareholding in such Subsidiary and government approvals, if any, with      respect to the aforesaidinstruments; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iii) | a      certificate of a senior officer of the Subsidiary certifying the      jurisdiction of incorporation of the Subsidiary, a description of each      type of material property or assets, whether tangible or intangible, of      the Subsidiary and its location, the legal description of all property,      owned or leased, and the location of each place of business, the chief      executive office and the registered office or head office of the      Subsidiary; |
|--------|-------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (iv) | a      certificate of status or good standing with respect to the Subsidiary and      issued by the jurisdiction of incorporation of the    Subsidiary; |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (v) | a      favorable legal opinion of such Subsidiary’s counsel as to such matters as      the Lender may reasonably request;and |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------|

|   | (vi) | such      other certificates and documentation as the Lender may reasonably      request. |
|--------|------|-------------------------------------------------------------------------------------------|

----

|   | (1) | Not to Merge,      etc.  The Borrower and each of its Subsidiaries shall not      enter into any transaction or series of related transactions (whether by      way of merger, conversion, winding-up, consolidation, reorganization,      reconstruction, combination, continuance, transfer, sale, lease or      otherwise) whereby all or substantially all of its undertaking,      properties, rights or assets would become the property of any other Person      or, in the case of merger or conversion, of the continuing corporation      resulting therefrom without the prior written consent of the      Lender. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Indebtedness.  The      Borrower shall not create, assume, issue or permit to exist, directly or      indirectly, any Indebtedness except for Permitted Indebtedness without the      prior written consent of theLender. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Negative      Pledge.  Except for Permitted Encumbrances or Purchase      Money Obligations, the Borrower shall not create, assume, incur or suffer      to exist any Security Interest in or upon any of the property charged by      the Security, including, without limitation, Intellectual Property,      without the prior written consent of theLender. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | No      Guarantees.  The Borrower shall not be or become liable,      directly or indirectly, contingently or otherwise, for any obligation of      any other Person by Guarantee other than as permitted hereunder, without      the prior written consent of theLender. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Restrictions on      Subsidiaries, Investments and Loans.  The Borrower shall      not, without the prior written consent of the Lender, directly or      indirectly, (i) acquire or form any Subsidiary after the date hereof,      unless it has complied with the provisions of Section 8.01(20) in      connection therewith; or (ii) make any loan or loans to or an equity      investment or investments (a “Permitted Investment”)      in excess of US$50,000 in, or purchase or otherwise acquire or hold any      shares or securities of any single Person.  For greater      certainty, nothing contained in this Agreement shall restrict the ability      of the Borrower to enter into any type or amount of treasury bill      investment and other term deposits with financial institutions in the      ordinary course of business. Except where such business association is in      the ordinary course of its business and does not materially or adversely      affect the assets of the Borrower or the Security, the Borrower shall not      become a partner in any partnership or a participant in any joint venture      without the prior written consent of theLender. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Transactions with      Affiliates.  The Borrower shall not enter into or      consummate a transaction of any kind with any of its Affiliates or any of      their respective Affiliates other than (i) compensation and      employment arrangements with directors or officers in the ordinary course      of business, provided that no payment of any bonus shall be permitted if a      Default or Event of Default has occurred and remains in effect or would be      caused by or result from such payment; (ii) transactions with the      Lender or any Affiliate of the Lender; (iii) payments permitted under      and pursuant to written agreements entered into by and between the      Borrower and one or more Affiliates that both (A) reflect and constitute      an arm’s length transaction between unrelated parties of equal bargaining      power, (B) are subject to such terms and conditions as determined by      the Lender in its sole discretion, and (C) are, collectively, not      more than $50,000; (iv) carrying out the transactions contemplated by      the LLC Agreement; and (v) transactions with a Subsidiary in the      ordinary course of business (in relation to what is ordinary as of the      Closing Date). |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (7) | Relocation of      Assets.  The Borrower shall not locate or permit to be      situated any of its present or after-acquired property or assets in any      jurisdiction other than as set out in Schedule “C”,  Schedule      “D” or Schedule “H” or assets in transit in the ordinary course of      business without having first notified the Lender in    writing. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Disposition of      Assets.  The Borrower and each of its Subsidiaries shall      not sell, assign, transfer, convey, lease (as lessor), license, contribute      or otherwise dispose of, or grant options, warrants or other rights with      respect to the property charged by the Security, other than Permitted      Asset Sales and non-exclusive licenses of Intellectual Property in the      ordinary course of business, without the prior written consent of the      Lender. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | Material      Contracts.  The Borrower shall not cancel or terminate      any material contract or amend nor otherwise modify any material contract,      or waive any default or breach under any material contract, or take any      other action in connection with any contract that would have a material      adverse effect on the business or affairs of the  Borrower. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Charter Documents;      Name; Jurisdiction of Organization.  The Borrower shall      not (i) amend, modify, restate or change its certificate of      incorporation or formation or bylaws or similar charter documents in a      manner that would be adverse to the Lender, (ii) without at least      thirty (30) days prior written notice to the Lender, change its name or      jurisdiction of incorporation, or (iii) wind up, liquidate, dissolve      (voluntarily or involuntarily) or commence or suffer any proceedings      seeking or that would result in any of the  foregoing. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Intellectual Property      Escrow.  Except as set forth in Schedule “J”, the      Borrower hereby covenants with the Lender that it has not, and shall not,      place any of its Intellectual Property, including, without limitation, any      source code (the “Escrowed Intellectual Property”) in escrow, without      first ensuring that the beneficiary of such escrow would only be able to      use the Escrowed Intellectual Property to update, maintain and internally      use such beneficiary’s internal software and not be able to modify such      Escrowed Intellectual Property (except as may be reasonably required for      internal purposes only) or license, sell, assign, transfer, distribute or      otherwise dispose of such Escrowed Intellectual  Property. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | Dividends and      Extraordinary Bonuses. The Borrower shall not, without the prior      written consent of the Lender, (i) pay any cash dividends or make any cash      distributions on its equity securities, (ii) purchase, redeem, retire or      otherwise acquire any of its shares (other than repurchases pursuant to      the terms of employee stock option plans, up to an aggregate annual amount      not to exceed US$100,000 per year, or pursuant to the LLC Agreement),      (iii) return any capital to any holder of its equity securities or (iv)      pay any extraordinary bonuses to employees or management, provided      however, that the Borrower may pay dividends payable solely in common      stock. |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (1) | a      security agreement issued by the Borrower creating a Security Interest in      all present and after-acquired accounts receivable of the Borrower (as      such accounts receivable are more fully described in the security      agreement); and |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | all      such other security agreements with respect to the aforementioned      collateral which the Lender may reasonably  require. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------|

|   | (i) | the      Outstanding Obligations shall, at the option of the Lender, become      immediately due and payable to the Lender and the Lender may without      notice to the Borrower apply any amounts outstanding to the credit of the      Borrower to repayment of the Outstanding  Obligations; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (ii) | the      interest rate on all Outstanding Obligations may, at Lender’s option,      become the Default Rate; and |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

----

|   | (iii) | the      Security shall, at the option of the Lender, become immediately      enforceable, |
|--------|-------|--------------------------------------------------------------------------------------------|

|   | (1) | Failure to Pay      Principal or Interest – if the Borrower fails to make punctual      payment when due of any principal amount or interest payable hereunder and      if such payment is not made within five (5) Business Days of the day on      which such payment is due; |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Failure to Pay Other      Amounts – if the Borrower fails to make punctual payment when due      of any amount payable hereunder other than principal or interest and if      such payment is not made within five (5) Business Days of the day on which      the Borrower receives notice that such payment is  due; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | False Representations,      Etc. – if any representation or warranty made or given herein, in      any certificate delivered pursuant hereto or in any financial statements,      budgets, balance sheets or business plans delivered pursuant hereto is      false or misleading in any materialrespect; |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Default in Certain      Covenants – if there is any default or failure in the observance or      performance of any covenant contained in Section 8.02 provided that such      default or failure is continuing five (5) Business Days after written      notice thereof is given to the Borrower by the  Lender. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (5) | Default in Other      Covenants – if, other than in respect of covenants contained in      Section 8.02, or any covenant to pay, there is any default or failure in      the observance or performance of any other act required to be done or any      other covenant or condition required to be observed or performed under      this Agreement or the Security, and the default or failure continues for      five (5) Business Days after written notice by the Lender to the Borrower      specifying such default or failure; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Default under      Security – if there is any default, event of default or failure in      the observance or performance of any covenant in the    Security; |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Insurance Lapse      – if any insurance on the properties or assets of the Borrower lapses and      such coverage shall not be reinstated within fifteen (15) Business Days of      such lapse; |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Insolvency – if      the Borrower or any of its material Subsidiaries is unable to pay its      debts as such debts become due or is adjudged or declared to be, or admits      to being, bankrupt or insolvent; |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (9) | Voluntary      Proceedings – if the Borrower makes a general assignment for the      benefit of creditors; or any proceeding or filing is instituted or made by      the Borrower seeking relief on its behalf as debtor, or to adjudicate it a      bankrupt or insolvent, or seeking liquidation, winding-up, reorganization,      arrangement, adjustment or composition of it or its debts under any      similar law relating to bankruptcy, insolvency, reorganization or relief      of debtors, or seeking appointment of a receiver, trustee, custodian or      other similar official for it or for any substantial part of its      properties or assets; or the Borrower takes any corporate action to      authorize any of the actions set forth in this subsection      10.01(9); |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | Involuntary      Proceedings – if any notice of intention is filed or any proceeding      or filing is instituted or made against the Borrower in any jurisdiction      seeking to have an order for relief entered against it as debtor or to      adjudicate it a bankrupt or insolvent, or seeking liquidation, winding-up,      reorganization, arrangement, adjustment or composition of it or its debts      under any law relating to bankruptcy, insolvency, reorganization or relief      of debtors, or seeking appointment of a receiver, trustee, custodian or      other similar official for it or for any substantial part of its      properties or assets or seeking possession, foreclosure or retention, or      sale or other disposition of, or other proceedings to enforce security      over, all or a substantial part of the assets of the Borrower unless the      same is being contested actively and diligently in good faith by      appropriate and timely proceedings and is dismissed, vacated or stayed      within thirty (30) days of institutionthereof; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | Receiver, etc.      – if a receiver, liquidator, trustee, sequestrator or other officer with      like powers is appointed with respect to, or an encumbrancer pursuant to a      Security Interest or otherwise takes possession of, or forecloses or      retains, or sells or otherwise disposes of, or otherwise proceeds to      enforce security over any of the properties or assets of the Borrower or      gives notice of its intention to doso; |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | Execution,      Distress – if any writ, attachment, execution, sequestration,      extent, distress or any other similar process becomes enforceable against      the Borrower or if a distress or any analogous process is levied against      any of the properties or assets of the Borrower, except where the same is      being contested actively and diligently in good faith by appropriate and      timely proceedings and the enforcement or levy has been      stayed; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (13) | Suspension or      Termination of Business – if the Borrower or any of its material      Subsidiaries suspends or ceases or threatens to suspend or cease its      business, dissolves, liquidates, or undertakes to carry out any of the      foregoing; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (14) | Sale      –  if the Borrower or any of its material Subsidiaries sells or      otherwise disposes of, or threatens to sell or otherwise dispose of, all      or a substantial part of its undertaking and property and assets to any      arm’s length third party, whether in one transaction or a series of      related transactions, other than pursuant to a Permitted Asset      Sale; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (15) | Change in      Control – if the Borrower or any of its material Subsidiaries      engage in a merger, sale of stock, share exchange, reorganization,      conversion, or similar event following which the beneficial owners of the      Borrower or Subsidiary (as the case may be) prior to such transaction      control less than fifty percent (50%) of the voting or economic interests      in the Borrower or Subsidiary (as the case may  be); |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (16) | Assignment – if      the Borrower assigns or attempts to assign its rights under this Agreement      or any of the Security or any interest herein or therein to a third party      without the prior consent of theLender; |
|--------|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (17) | Value of      Security – if the value of the Borrower's average accounts      receivable is, over the course of twenty (20) consecutive Business Days,      less than seventy-five percent (75%) of the Outstanding Obligations during      such time; |
|--------|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (18) | Cross-Default –      if the Borrower defaults in the payment, when due, of any indebtedness for      borrowed money in the principal amount of US$25,000 or greater, and such      default has not been waived within the applicable cure period, if any, or      if such indebtedness is accelerated or otherwise becomes due and payable      prior to the stated maturity thereof;and |
|--------|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (19) | Material Adverse      Change – if (i) there occurs a material adverse change in the      general affairs, business, property, assets, management or condition      (financial or otherwise) of the Borrower or any of its Subsidiaries or      (ii) there is, in the Lender’s good faith business judgment acting      reasonably, a material impairment of the prospect of repayment of any      portion of the Outstanding Obligations owing to the Lender or an      impairment of the value or priority of the Lender’s Security Interest      (each, an “Impairment”). If the      Borrower disputes whether an Impairment has occurred, then the Borrower      can request that such determination be made by an auditor of national      reputation selected by the Borrower and reasonably acceptable to the      Lender. The fees and expenses of such independent determination shall be      borne by (a) the Borrower if the auditor determines that an Impairment has      occurred or (b) the Lender if the auditor determines that an Impairment      has not occurred. |
|--------|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (1) | the      business of the Borrower has been operated in compliance in all material      respects with all applicable Environmental Laws and with all permits,      licenses and authorizations issued pursuant to Environmental Laws;      and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | there      are no claims, investigations, litigation, administrative proceedings,      whether pending or threatened relating to any Contaminants, Releases or      other forms of pollution or alleged violation of applicable Environmental      Laws (collectively, “Environmental Matters”)      that may reasonably be expected to have a material adverse effect upon the      Borrower. The Borrower has not assumed any material liability of any other      Person for response, removal, remediation, investigation, clean up,      compliance or required capital expenditures in connection with any      Environmental Matter arising prior to the date  hereof. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (1) | Compliance.  The      Borrower shall comply in all material respects with the requirements of      any Environmental Law applicable toit. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Notification.  The      Borrower shall promptly forward to the Lender copies of all material      orders, notices, permits, applications or other communications and reports      in its possession in connection with any Environmental Law affecting or      relating to the Property or the operations and activities of the      Borrower. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (1) | In      the case of the Borrower: |
|--------|-----|-----------------------------------|

|   | (2) | In      the case of the Lender: |
|--------|-----|---------------------------------|

----

----

----

| BORROWER:                                 |
|-------------------------------------------|
|                                      |
| DILIGENT      BOARD MEMBER SERVICES, INC. |
|                                      |   |   |
| By:                                       | /s/ Alessandro Sodi |
| Name:  Alessandro      Sodi     |
| Title:  CEO      and President  |
|                                      |   |   |
| LENDER:                                   |
|                                      |
| SPRING      STREET PARTNERS, L.P.         |
|                                      |   |
| By:                                       | Spring      Street Partners, Inc. |
| Its:                                      | General      Partner |
|                                      |   |   |
|                                      | By:  |   /s/ David  Liptak |
|                                      |   | David      Liptak,President |

----

|   | A. | The      Amended and Restated Certificate of Incorporation of the Company (the      "Amended      Certificate"). |
|--------|----|------------------------------------------------------------------------------------------------------------------|

|   | B. | The      Credit Agreement, executed by the Company and the    Purchasers. |
|--------|----|---------------------------------------------------------------------------|

|   | C. | The      Security Agreement, dated March 12, 2010 executed by    Company. |
|--------|----|---------------------------------------------------------------------------|

|   | D. | The      Revolving Promissory Note, dated March 12, 2010, executed by Company (the      “Note”). |
|--------|----|--------------------------------------------------------------------------------------------------------------|

|   | E. | The      Financing Statement naming the Borrower as debtor and naming the Lender as      secured party, which I understand and assume has been duly filed and      indexed in the office of the Secretary of State of the State of      Delaware. |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | F. | A      copy of the Amended and Restated Bylaws of the  Company. |
|--------|----|-----------------------------------------------------------------|

|   | G. | A      copy of the Written Consent in Lieu of Meeting executed by all of the      Directors of the Company. |
|--------|----|-------------------------------------------------------------------------------------------------------------|

|   | H. | A      Certificate of the Delaware Secretary of State with respect to the      Company’s good standing in such jurisdiction.  Our opinions as      to the good standing of the Company are based solely upon such      certificate. |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Respectfully      yours,                  |
|-------------------------------------------|
|                                      |
| DILIGENT      BOARD MEMBER SERVICES, INC. |
|                                      |
|                                      |
| Robert      Norton                        |
|                                      |
| General      Counsel                      |

----

----

----

----

| U.S.$1,000,000 | Dated:      March 12, 2010. |
|----------------|-----------------------------|

----

| DILIGENT      BOARD MEMBER SERVICES, INC. |
|-------------------------------------------|
|                                      |
| By:                             |   |
|                                      | Name:  Alessandro      Sodi |
|                                      |   |
|                                      | Title:  CEO      and President |

----

| DILIGENT      BOARD MEMBER SERVICES, INC. |
|-------------------------------------------|
|                                      |
| By:                                       |   |
|                                      | Name:  Alessandro      Sodi |
|                                      |   |
|                                      | Title:  CEO      and President |

----

| Collateral                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | SecuredParty                                   |   | Debtor                                       |   | UCCFiling |   | UCC Filing # |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------|--------|----------------------------------------------|--------|-----------|--------|------------------------|
| NOTICE      FILING:  The ‘Collateral’ defined below is covered by this      financing statement only to the extent such Collateral is provided to or      obtained by Debtor in connection with present or future:  (i)      leases, loans, conditional sale agreements or other agreements with      Secured Party, or (ii) obligations funded by Secured Party on behalf of or      at the direction of Debtor.  Copies of applicable agreements      with specific Collateral listings can be obtained from Secured      Party.  To the extent listed in applicable agreements,      Collateral consist of all Debtor’s right, title and interest in the listed      licenses, equipment, inventory and goods (including, without limitation,      attachments, accessories, accessions and replacements), wherever located      and whether now or hereafter acquired or existing, together with all      related:  (a) contracts, documents of title, investment      property, chattel paper, notes and instruments (b) accounts, contract      rights and general intangibles (c) records, data, information and      documentation (d) proceeds, whether cash or non-cash, and products of the      foregoing in any form and (e) all rights, claims and remedies of Debtor      arising in connection with any of the foregoing.  Debtor has no      independent or separate power, right or authority to encumber, transfer or      dispose of such Collateral or of any interest therein except as expressly      directed by Secured Party. |   | Key      Equipment Finance, Inc.               |   | Diligent      BoardMemberServices,      LLC  |   | YES       |   | 6315973-8              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                           |   |                                         |   |      |   |                   |
| All      of the following equipment together with all related software, whether now      owned or hereafter acquired and wherever located (all as more fully      described on IBM Credit LLC Supplement(s) # D37186) IBM Equipment Type      8849 9992 9993 9994  All additions, attachments, accessories,      accessions and upgrades thereto and any and all substitutions,      replacements or exchanges for any such item of equipment or software and      any and all proceeds of any of the foregoing, including, without      limitations, payments under insurance or any indemnity or warranty      relating to loss or damage to such equipment and software.  IBM      Credit LLC files this notice as a precautionary filing.  See UCC      9-505.  (12/11/06) UCC Log      Number:  CPVP0D37186   2566587                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   | IBM      Credit LLC                            |   | Diligent      BoardMemberServices,      LLC  |   | YES       |   | 6432384-6              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                           |   |                                         |   |      |   |                   |
| All      equipment and other personal property, including but not limited to      furniture, fixtures and equipment subject to that certain Agreement Number      LA#092607JE2-003 dated September 26, 2007, between Secured Party as      Lessor/Creditor and Debtor as Lessee/Debtor, and subject to any and all      existing and future schedule entered into pursuant to and incorporating      said Agreement, together with all accessories, parts, attachments and      appurtenances appertaining or attached to any of the Equipment, and all      substitutions, trade-ins, proceeds, renewals and replacements of, and      improvements and accessions to the Equipment.  LA      #092607JE2-003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Envision      Capital Group, LLC               |   | Diligent      BoardMemberServices,      LLC  |   | YES       |   | 2007-3898516           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |                                           |   |                                         |   |      |   |                   |
| All      equipment and other personal property, including but not limited to      furniture, fixtures and equipment subject to that certain Agreement Number      LA#092607JE3-004 dated September 26, 2007, between Secured Party as      Lessor/Creditor and Debtor as Lessee/Debtor, and subject to any and all      existing and future schedule entered into pursuant to and incorporating      said Agreement, together with all accessories, parts, attachments and      appurtenances appertaining or attached to any of the Equipment, and all      substitutions, trade-ins, proceeds, renewals and replacements of, and      improvements and accessions to the Equipment.  LA      #092607JE3-004.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | Envision      Capital Group, LLC     |   | Diligent      Board MemberServices,      LLC |   | YES       |   | 2007-3898524           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   | Assignment      to: Marlin Leasing Corporation |   |                                         |   |      |   | 2007-4367610           |

----

| Collateral                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   | SecuredParty                      |   | Debtor                                       |   | UCCFiling |   | UCC Filing # |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|--------|----------------------------------------------|--------|-----------|--------|------------------------|
| (1)      Catalyst 3750 24 10/100/1000T+4, SFP enhanced multiplayer, (1)      CON-SNTP-3750G24T: Smartnet 24x7x4 CAT 3750 24 enhanced multilayer, (1)      ASA 5520 appliance with SW, HA, 4GE+FE, 3DES/AES, New (1) ASA 5520      appliance with SW, HA 4GE+FE, 3DES/AES, New (1) CON-SNTP-AS2BUNK9 Smartnet      24x7x4 (1) CON SNTP-AS2BUNK9 Smartnet 24x7x4, (1) ASA 5500 AIP security      services module-10, (1) ASA 5500 AIP security services odule-10, (1)      CON-SU1-ASIP10K9 IPS SVC, AR NBD ASA AIP, (1) CON-SU1-ASIP10K9 IPS SVC AR      NBD.  “and all replacements, substitutions, accessions, add-ons,      and all proceeds and accounts of the Debtor arising out of or related to      the foregoing.  This Financing Statement relates to an Equipment      Lease between the Debtor (as Lessee) and the Secured Party (as      Lessor).  The Lease is a “true lease”, and this Financing      Statement is filed to give notice of Secured Party’s ownership interest in      the collateral and also as a precautionary measure in the event the Lease      is determined to be other than a true lease.”  |   | Marlin      Leasing Corp          |   | Diligent      BoardMemberServices,      LLC  |   | YES       |   | 2007-4333422           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |                              |   |                                         |   |      |   |                   |
| All      computer equipment and peripherals (collectively “Equipment”), wherever      located, heretofore or hereafter financed to DILIGENT BOARD MEMBER      SERVICES, INC / DILIGENT PARTNERS, LLC by Creditor pursuant to that      certain revolving credit Account #6879450205000223512, dated March 7, 2008      (the “Account”) and all of Lessee’s rights, title and interest in and to      use any software and services (collectively, “Software”) financed under      and described in the Account, along with any additions, financed amounts,      modifications or supplements to the Account, and all substitutions,      additions, accessions and replacements to the Equipment and Software, now      or hereafter installed in, affixed to, or used in, conjunction with the      Equipment and Software and the proceeds thereof together with all      payments, insurance proceeds, any refunds or credits obtained by Debtor      from a manufacturer, licensor or service provider, or other proceeds and      payments due and to become due and arising from or relating to said      Equipment, Software or the Account. |   | Dell      Financial Services L.P. |   | Diligent      BoardMemberServices,      Inc. |   | YES       |   | 2008-0859817           |

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| Collateral                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |         | SecuredParty                          |         | Debtor                                       |         | UCCFiling |         | UCC Filing # |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------|---------------------------------------|--------------|----------------------------------------------|--------------|-----------|--------------|------------------------|
| See      attached equipment listing: 1      CMODEMUS EMC Clarion Service Modum US 2 20 CX4G15450 EMC 146 GB 15K 4GB FC      3 2 CS4PDAE EMC 4G DAE Factory Install 4 1 CS4SPS EMC CK4-120 Optional      Second SPS 5 1 CX412CKIT EMC CS4-120 Common RTU & PowerPath Docs 6 1      CX412OC EMC CX4-120C SPE with Single SPS 7 1 FSBUNDEMCCX4120 WEMC Clarion      Storage Array 8 1 MPRESW001 EMC Premium SW Support Open SW 36 Mths 9 1      MPRESW004 EMC Premium SW Support Open SW Mths 10 2 NAVAGTWINKIT EMC      Navisphere Agent for Windows Kit 11 1 NAVAYZ4KIT EMC Navisphere Analyzer      CX4 Media Kit 12 1 NAVAY24120 EMC Navisphere Analyzer for the CX4-120 13 1      NAV4KIT EMC Navisphere Manager CX4 Media Kit 14 1 NAV4120 EMC Navisphere      Manager fort he CX4-120 15 1 VCX414615K EMC 145GB 15K 4G Drives Vault pack      Qty 5 16 1 VP4KIT EMC VirtualProvisioning for the CX4-120 18 1 EMC Virtual      Provisioning for the CX-120 18 1 WUPRESHW001 Premium HW Support Warr UPG      36mths All      of the equipment and personal property and all modifications and additions      thereto and replacements and substitutions therefore, together with all      accessories, accessions, attachments, in whole or in part, leased or be      leased by Lessor to Lessee pursuant to Schedule No. 637846 to Master Lease      Agreement dated October 1, 2009 between Presidio Technology Capital, LLC      f/k/a Solarcom Capital, LLC (Lessor) and Diligent Board Member Services,      Inc. (Lessee) together with the proceeds thereof.  This filing      for precautionary purposes in connection with equipment leasing and is not      to be construed as indicating the transaction is other than a true      lease. |         | Presidio      Technology Capital, LLC |         | Diligent      BoardMemberServices,      Inc. |         | YES       |         | 2009-3291959           |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |         |                                  |         |                                         |         |      |         |                   |
| See      attached equipment listing: 1      CMODEMUS EMC Clarion Service Modum US 2 20 CX4G15450 EMC 146 GB 15K 4GB FC      3 2 CS4PDAE EMC 4G DAE Factory Install 4 1 CS4SPS EMC CK4-120 Optional      Second SPS 5 1 CX412CKIT EMC CS4-120 Common RTU & PowerPath Docs 6 1      CX412OC EMC CX4-120C SPE with Single SPS 7 1 FSBUNDEMCCX4120 WEMC Clarion      Storage Array 8 1 MPRESW001 EMC Premium SW Support Open SW 36 Mths 9 1      MPRESW004 EMC Premium SW Support Open SW Mths 10 2 NAVAGTWINKIT EMC      Navisphere Agent for Windows Kit 11 1 NAVAYZ4KIT EMC Navisphere Analyzer      CX4 Media Kit 12 1 NAVAY24120 EMC Navisphere Analyzer for the CX4-120 13 2      NAV4KIT EMC Navisphere Manager CX4 Media Kit 14 1 NAV4120 EMC Navisphere      Manager fort he CX4-120 15 1 VCX414615K EMC 145GB 15K 4G Drives Vault pack      Qty 5 16 1 VP4KIT EMC VirtualProvisioning for the CX4-120 18 1 EMC Virtual      Provisioning for the CX-120 18 1 WUPRESHW001 Premium HW Support Warr UPG      36mths All      of the equipment and personal property and all modifications and additions      thereto and replacements and substitutions therefore, together with all      accessories, accessions, attachments, in whole or in part, leased or be      leased by Lessor to Lessee pursuant to Schedule No. 637848 to Master Lease      Agreement dated October 1, 2009 between Presidio Technology Capital, LLC      f/k/a Solarcom Capital, LLC (Lessor) and Diligent Board Member Services,      Inc. (Lessee) together with the proceeds thereof.  This filing      for precautionary purposes in connection with equipment leasing and is not      to be construed as indicating the transaction is other than a true      lease. |    | Presidio      Technology Capital, LLC |    | Diligent      BoardMemberServices,      Inc. |    | YES       |    | 2009-3292015           |

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