Document:

ex10-3.htm

    
      

      

    

    
      

      

    

    
      

      

    

    EXHIBIT
      10.3

     

    EXECUTION
      COPY

     

    

     

    

     

    FIRST
      AMENDMENT

     

    TO
      THE

     

    SECURED
      PROMISSORY NOTE

     

    ISSUED
      ON
      APRIL 19, 2002

     

    BY
      ENTERPRISE INFORMATICS INC. (F/K/A ALTRIS SOFTWARE, INC.)

     

    TO
      SPESCOM LTD. AND ASSIGNED TO ERP2 HOLDINGS, LLC

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    FIRST
      AMENDMENT dated as of January 31, 2008 (this “First Amendment”) to the Secured
      Promissory Note (the “Note”), in the original principal amount of $500,000,
      issued on April 19, 2002 by Enterprise Informatics Inc., f/k/a Altris Software,
      Inc., a California corporation (the “Obligor”), in favor of Spescom Ltd., a
      United Kingdom corporation (the “Parent”).

    
       

      
        1

        
          

        

      

                                                  W
        I T N E S S E T H
        :

    

     

     

    WHEREAS,
      the Parent assigned the Note to ERP2 Holdings, LLC, a Delaware limited liability
      company (the “Holder”), pursuant to the Securities Purchase Agreement, dated as
      of September 30, 2007, by and among the Holder, the Parent, and Spescom Limited,
      a South African corporation (the “Securities Purchase Agreement”);

     

     

    WHEREAS,
      concurrently herewith the Obligor executed and delivered a Secured Promissory
      Note to the Holder, in the principal amount of up to $1,500,000 (the “New
      Note”); and

     

     

    WHEREAS,
      the Obligor and the Holder wish to amend the Note on the terms and conditions
      provided for herein.

     

     

    NOW,
      THEREFORE, in consideration of the mutual covenants and conditions set forth
      herein, the sufficiency of which is hereby acknowledged, the parties hereto
      agree as follows:

     

    ARTICLE
      I

     

    DEFINITIONS
      AND INTERPRETATION

     

    SECTION
      1.1  Definitions and
      Interpretation.

     

    
      	
               

            	
              (a)

            	
              All
                capitalized terms used herein which are not otherwise specifically
                defined
                herein shall have the respective meaning as ascribed thereto in the
                Note.
                

            

    

     

    
      	
               

            	
              (b)

            	
              Unless
                otherwise expressly indicated, all references contained herein to
                Sections
                or other subdivisions, Schedules, Annexes or Exhibits refer to the
                corresponding Sections and other subdivisions, Schedules, Annexes
                or
                Exhibits of the Note. 

            

    

     

    
      	
               

            	
              (c)

            	
              The
                sections and the headings in the sections in this First Amendment
                are for
                convenience only. Such sections and headings shall not be deemed
                to be
                part of this First Amendment and in no way define, limit, extend
                or
                describe the scope or intent of its provisions.

            

    

     

    ARTICLE
      II

     

    AMENDMENTS

     

    SECTION
      2.1  Amendment to
      Preamble. The preamble of the Note is hereby amended by inserting the
      following after the comma following the phrase “per annum” in the last line of
      the preamble:

     

    
      
        
           

        

         

      

      
        2

        
          

        

      

      
         

      

    

    “compounded
      annually, payable in arrears on the last calendar day of March, June, September
      and December of each calendar year, in cash or, at the option of the Obligor,
      in
      kind, capitalized as additional principal hereunder (which shall be treated
      in
      all respects as principal hereunder, including without limitation with respect
      to the accrual of interest), at the option of the Obligor,”

     

    

    SECTION
      2.2  Amendment to Section
      1.  Section 1 of the Note is hereby amended and restated in its
      entirety to read as follows:

     

    “All
      unpaid principal and accrued interest under this Note shall be immediately
      due
      and payable on January 31, 2010.”

    

    SECTION
      2.3  Amendment to Section
      5.  Section 5 of the Note is hereby amended by deleting the
      phrase “fourteen percent (14%)” in the third line and replacing it with the
      phrase “thirteen percent (13%)”.

     

    SECTION
      2.4  Amendment to Section
      8.  Section 8 of the Note is hereby amended and restated in its
      entirety to read as follows:

     

    “This
      Note is governed by and construed in accordance with the laws of the State
      of
      New York, irrespective of New York’s choice-of-law principles.”

     

    SECTION
      2.5  Amendment to Section
      10.  Section 10 of the Note is hereby amended and restated in
      its entirety to read as follows:

     

    “All
      actions and proceedings arising in connection with this Note must be tried
      and
      litigated exclusively in the Federal courts located in New York, New York,
      which
      courts have personal jurisdiction and venue over each of the parties to this
      Note for the purpose of adjudicating all matters arising out of or related
      to
      this Note.  Each party authorizes and accepts service of process sufficient
      for personal jurisdiction in any action against it as contemplated by this
      paragraph by registered or certified mail, return receipt requested, postage
      prepaid, to its address for the giving of notices set forth in this
      Note.”

     

    SECTION
      2.6  Amendment to Section
      16.  Section 16 of the Note is hereby amended by (i) inserting
      the phrase “sent by facsimile or electronic mail,” immediately following the
      phrase “personally delivered,” in the first sentence thereof and (ii) deleting
      that portion thereof beginning with “Holder: Spescom LTD” and ending with
“Attention: John Low” and replacing such portion with the following:

     

    
      	
              Holder:

            	
              ERP2
                Holdings, LLC

              c/o
                Richard Shorten

              694
                Weed Street

              New
                Canaan, CT 06840

              Attention:  Board
                of Managers

              Fax:  (702)
                995-4535

              Email:  rshorten@silverminecapital.com

            

    

      

    
      	
              with
                a copy to:

            	
              Stroock
                & Stroock & Lavan LLP

              180
                Maiden Lane

              New
                York, NY 10038

              Attention:  Brett
                Lawrence

              Fax:  (212)
                806-6006

              Email:  blawrence@stroock.com

            

    

    
      	
              Maker:

            	
              Enterprise
                Informatics Inc.

              10052
                Mesa Ridge Court, Suite 100

              San
                Diego, CA 92121

              Attention:  John
                W. Low

              Fax:  (858)
                625-3010

              Email:
                jlow@enterpriseinformatics.com

            

    

    

    
      	
              with
                a copy to:

            	
              Gibson,
                Dunn & Crutcher LLP

              1881
                Page Mill Road

              Palo
                Alto, CA 94304

              Attention:
                Russell C. Hansen

              Fax:  (650)
                849-5333

              Email:  rhansen@gibsondunn.com

            

    

    

    SECTION
      2.7  Addition of Section
      18.  The Note is hereby amended by inserting the following
      after Section 17:

     

    
      	
               

            	
              “18.  Events
                of
                Default.  Following the occurrence of an Event of Default
                (as such term is defined in the New Note), the Holder may declare
                the
                entire unpaid principal indebtedness evidenced by this Note immediately
                due and payable, without presentment, notice or demand, all of which
                are
                expressly waived by the Obligor (a “Demand”); provided,
however,
                the
                Holder may not declare a Demand prior to September 30, 2008.”
                

            

    

    

    SECTION
      2.8  Addition of Section
      19.  The Note is hereby amended by inserting the following
      after Section 18:

     

    “19.  Fees
      and
      Expenses.  The Obligor shall pay all reasonable fees and
      expenses of the Holder in connection with the negotiation, execution and
      delivery of this First Amendment.”

    

    ARTICLE
      III

     

    MISCELLANEOUS

     

    SECTION
      3.1  The
      Note.  Except as amended by this First Amendment, the Note
      shall remain in full force and effect in accordance with its
      terms.  This First Amendment shall be deemed to be part of the
      Note.

     

    SECTION
      3.2  Governing
      Law.  This First Amendment shall be governed by and construed
      in accordance with the laws of the State of New York without reference to choice
      of law doctrine.

     

    
      
        
           

           

        

         

      

      
        3

        
          

        

      

      
         

      

    

    SECTION
      3.3  Legal,
      Valid and Binding Obligation.  Each party hereto hereby
      represents and warrants that this First Amendment is a legal, valid and binding
      obligation of such party and is enforceable against such party in accordance
      with its terms.

     

    SECTION
      3.4  References to
      Note.  Whenever in any certificate, letter, notice or other
      instrument reference is made to the Note, such reference without more shall include
      reference to this First Amendment.

     

    SECTION
      3.5  Counterparts.  This
      First Amendment may be executed simultaneously in counterparts, each of which
      shall be deemed an original.

     

     

    [Signature
      Page Follows]

     

     

    

     

    
      
        
           

           

        

         

      

      
        4

        
          

        

      

      
         

      

    

    

     

    IN
      WITNESS WHEREOF this First Amendment has been executed by duly authorized
      representatives of the parties hereto as of the day, month, and year first
      above
      written.

     

    

                    ENTERPRISE
      INFORMATICS INC.

     

    
      
        	 	                            By:	 
/s/
                John W.
                Low	 

      
                   John
      W. Low

                     
Chief
      Financial
      Officer

                      

                    

    

    
      
        
          [Signature
            Page to April Note Amendment]

          

          

          

        

         

      

      
        5ex10-4.htm

    

      EXHIBIT
        10.4

       

      EXECUTION
        COPY

       

      

       

      AMENDED
        AND RESTATED
        SECURITY AGREEMENT

       

      This
        Amended and Restated Security Agreement (this “Agreement”) is executed as of
        January 31, 2008, between Enterprise Informatics Inc., f/k/a Altris Software,
        Inc., a California corporation (“Debtor”), and ERP2 Holdings, LLC, a Delaware
        limited liability company (the “Secured Party”).

       

      WHEREAS,
        on March 15, 2002, Debtor executed and delivered a Secured Promissory Note
        to
        Spescom Ltd., a United Kingdom corporation (“Parent”) in the original principal
        amount of $400,000 (the “March Note”);

       

      WHEREAS,
        concurrently therewith, in order to provide security for Debtor’s payment
        obligations under the March Note, and subsequent notes executed by the Debtor
        in
        favor of the Parent and its successors and assigns, Debtor entered into a
        Security Agreement (the “Original Security Agreement”) with Spescom Ltd., a
        United Kingdom corporation (“Parent”), pursuant to which Debtor granted a
        security interest in all its assets;

       

      WHEREAS,
        on April 19, 2002, Debtor executed and delivered a Secured Promissory Note
        to
        Parent in the original principal amount of $500,000 (the “April Note” and,
        together with the March Note, the “Old Notes”);

       

      WHEREAS,
        Parent assigned the Old Notes and the Original Security Agreement to the
        Secured
        Party pursuant to the Securities Purchase Agreement, dated as of September
        30,
        2007, by and between the Secured Party and Parent (the “Securities Purchase
        Agreement”);

       

      WHEREAS,
        concurrently herewith, Debtor executed and delivered a Secured Promissory
        Note
        to the Secured Party, in the principal amount of up to $1,500,000 (the “New
        Note”); and

       

      WHEREAS,
        Debtor and the Secured Party desire to amend the Original Security Agreement
        in
        order to reflect the assignment of the Old Notes to the Secured Party and
        the
        execution of the New Note.

       

      NOW
        THEREFORE, in consideration of the agreements and obligations set forth herein,
        and for other good and valuable consideration, the receipt and sufficiency
        of
        which are hereby acknowledged, the parties hereby amend and restate the Original
        Security Agreement to read in its entirety as follows:

       

      1.           
Definitions.  For
        purposes of this Agreement, the following definitions shall apply:

       

      1.1           
“Accounts”
        shall mean all “accounts” as defined in the UCC now owned or hereafter acquired
        by Debtor, including without limitation (a) all accounts receivable,
        contract

       

      
        
          
            

             

          

           

        

        
          1

          
            

          

        

        
           

        

      

      rights,
        notes, drafts and other obligations or indebtedness owing to Debtor and arising
        from whatever source; (b) all present and future monies, securities, credit
        balances, deposits, deposit accounts and other property of Debtor now or
        hereafter held or received by or in transit to the Secured Party or their
        affiliates or at any other depository or other institution from or for the
        account of Debtor, whether for safekeeping, pledge, custody, transmission,
        collection or otherwise, and all present and future liens, security interests,
        rights, remedies, title and interest in, to and in respect of Accounts and
        other
        Collateral, including (i) rights and remedies under or relating to guaranties,
        contracts of suretyship, letters of credit and credit and other insurance
        related to the Collateral, (ii) rights of stoppage in transit, replevin,
        repossession, reclamation and other rights and remedies of an unpaid vendor,
        lien holder or secured party, (iii) goods described in invoices, documents,
        contracts or instruments with respect to, or otherwise representing or
        evidencing, Accounts or other Collateral, including returned, repossessed
        and
        reclaimed goods, and (iv) deposits by and property of account debtors or
        other
        Persons securing the obligations of account debtors; (c) all of the rights
        of
        Debtor in, to and under all purchase orders for goods, services or other
        property; (d) all monies due to or to become due to Debtor under all contracts
        for the sale, ease or exchange of goods or other property and/or the performance
        of services by it (whether or not yet earned by performance on the part of
        Debtor) and (e) all of the rights of Debtor to any goods, services or other
        property represented by any of the foregoing, in each case whether now in
        existence or hereafter arising or acquired including, without limitation,
        the
        right to receive the proceeds of said purchase orders and contracts and all
        collateral security and guarantees of any kind given by any Person with respect
        to any of the foregoing.

       

      1.2           
“Collateral”
        has the meaning set forth in Section 3 of this Agreement, entitled “Security
        Interests.”

       

      1.3           
“Default”
        shall mean any Event of Default and any event which with the passing of time
        or
        the giving of notice would, unless cured or waived, constitute an Event of
        Default.

       

      1.4           
“Depository
        Account” shall mean each bank account (and the related lockbox, if any) of
        Debtor.

       

      1.5           
“Depository
        Account Control Agreement” shall mean any three-party agreement, in form and
        substance reasonably satisfactory to the Secured Party, among Debtor, the
        Secured Party and the bank maintaining a Depository Account (a) pursuant
        to
        which such bank agrees that, except in connection with chargebacks and payment
        of such bank’s usual and customary fees chargeable in connection with its
        administration of the applicable Depository Account, such bank has no Lien
        upon,
        or right of set off against, the Depository Account or any cash, checks,
        wires
        and other items from time to time on deposit therein and (b) which provides
        the
        Secured Party with control of the Depository Account.

       

      1.6           
“Documents”
        shall mean all “documents” as defined in the UCC or other receipts covering,
        evidencing or representing goods, now owned or hereafter acquired by
        Debtor.

       

      1.7           
“Equipment”
        shall mean all “equipment” as defined in the UCC (excluding motor vehicles, and
        railway rolling stock), now or hereafter used or acquired for use

       

      
        
          
             

             

          

           

        

        
          2

          
            

          

        

        
           

        

      

      in
        the
        business or otherwise of Debtor (together with all accessions thereto and
        all
        substitutions and replacements thereof and parts therefor), whether or not
        the
        same shall be deemed affixed to real property, and all rights under or arising
        out of present or future contracts relating to the acquisition or use of
        the
        above.

       

      1.8           
“Event
        of
        Default” shall mean any default by Debtor in the full and punctual performance
        of its obligations under this Agreement or the Loan.

       

      1.9           
“General
        Intangibles” shall mean all “general intangibles” as defined in the UCC now
        owned or hereafter acquired by Debtor, including without limitation (a) all
        obligations or indebtedness owing to Debtor (other than Accounts) from whatever
        source arising, (b) all registered and unregistered (i) patent licenses.
        (ii)
        patents, (iii) trademark licenses, (iv) trademarks, (v) rights in intellectual
        property, (vi) trade names, (vii) service marks, (viii) trade secrets, (ix)
        copyrights, (x) permits, (xi) licenses, and (xii) applications for the
        foregoing, (c) goodwill, processes, drawings, blueprints and customer lists,
        (d)
        all rights or claims in respect of refunds for taxes paid, (e) all rights
        in
        respect of any pension plan or similar arrangement maintained for employees
        of
        Debtor or any of its Subsidiaries, and (f) the Subsidiary Interests.

       

      1.10           
“Instruments”
        shall mean (a) all “instruments”, “chattel paper” or letters of credit”, each as
        defined in the UCC, evidencing, representing, arising from or existing in
        respect of, relating to, securing or otherwise supporting the payment of,
        any of
        the Accounts, including without limitation promissory notes, drafts, bills
        of
        exchange and trade acceptances, and (b) notes or other obligations or
        indebtedness owing to a Debtor (including without limitation obligations
        of
        Debtor to any other Debtor) from whatever source arising, in each case now
        owned
        or hereafter acquired by Debtor.

       

      1.11           
“Inventory”
        shall mean all “inventory” as defined in the UCC, now owned or hereafter
        acquired by Debtor, wherever located, including without limitation all raw
        materials and other materials and supplies, work-in-process and finished
        goods
        and any products made or processed therefrom and all substances, if any,
        commingled therewith or added thereto.

       

      1.12           
“Lien”
shall
        mean, with respect to any asset, any mortgage, lien, pledge, charge, security
        interest or encumbrance of any kind in respect of such asset, including the
        interest of a vendor or lessor under any conditional sale agreement, capital
        lease or other title retention agreement.

       

      1.13           
“Loan”
shall
        mean collectively, all loans made by the Secured Party to Debtor on March
        15,
        2002 or subsequent thereto, including without limitation the loans evidenced
        by
        the Old Notes and the New Note.

       

      1.14           
“Note”
shall
        mean, collectively, all promissory notes executed by Debtor in favor of the
        Secured Party on March 15, 2002 or subsequent thereto, including without
        limitation the Old Notes and the New Note.

       

      1.15           
“Proceeds”
        shall mean all products and proceeds of, and all other profits, rentals or
        receipts, in whatever form, arising from the collection, sale, lease, exchange,
        assignment, licensing or other disposition of, or realization upon, any item
        or
        portion of the Collateral, including without limitation all claims of Debtor
        against third parties for loss of,

       

      
        
          
             

             

          

           

        

        
          3

          
            

          

        

        
           

        

      

      damage
        to. destruction of, or for proceeds payable under, or unearned premiums with
        respect to, policies of insurance in respect of, any Collateral and any
        condemnation or requisition payments with respect to any Collateral, in each
        case whether now existing or hereafter arising.

       

      1.16           
“Security
        Interests” shall mean the security interests securing the Secured Obligations,
        including without limitation the Security Interests granted pursuant to this
        Agreement.

       

      1.17           
“Secured
        Obligations” shall mean the Note and all obligations, liabilities and
        indebtedness pursuant to the Loan, including, without limitation principal,
        interest, charges, fees, costs and expenses, however evidenced, whenever
        arising
        (including without limitation arising after the commencement of any case
        with
        respect to Debtor under the United States Bankruptcy Code or any similar
        statute
        and including the payment of interest and other amounts which would accrue
        and
        become due but for the commencement of such case, whether or not such amounts
        are allowed or allowable in whole or in part in such case).

       

      1.18           
“Site”
shall
        mean Debtor’s principal place of business located at the address set forth in
        the Paragraph in this Agreement titled “Notices”.

       

      1.19           
“Software”
        shall mean all computer software, programs and databases (including, without
        limitation, all related applications and data files), firmware and documentation
        and materials relating thereto, together with any substitutions, replacements,
        improvements, error corrections, updates and new versions of any of the
        foregoing, developed, marketed or supported by Debtor.

       

      1.20           
“Subsidiary”
        shall mean, with respect to any Person, any corporation or other entity of
        which
        securities or other ownership interests having ordinary voting power to elect
        a
        majority of the board of directors or other Person performing similar functions
        are at the time directly or indirectly owned by such Person.

       

      1.21           
“Subsidiary
        Interests” shall mean any and all of Debtor’s interest in any Person, as a
        member, partner, shareholder or otherwise.

       

      1.22           
“UCC”
shall
        mean the Uniform Commercial Code as in effect on the date hereof in the State
        of
        New York; provided that if by reason of mandatory provisions of law, the
        perfection or the effect of perfection or non-perfection of the Security
        Interest in any item or portion of the Collateral is governed by the Uniform
        Commercial Code as in effect in a jurisdiction other than the State of New
        York,
        then “UCC” shall mean the Uniform Commercial Code as in effect in such other
        jurisdiction for purposes of the provisions hereof relating to such perfection
        or effect of perfection or non-perfection.

       

      2.           
Representations
        and
        Warranties.  Except as set forth in writing to the Secured
        Party on even date herewith, Debtor represents and warrants to the Secured
        Party
        as follows (which shall survive the execution and delivery of this
        Agreement):

       

      
        
          
             

             

          

           

        

        
          4

          
            

          

        

        
           

        

      

      2.1           
Debtor
        has
        good and marketable title to all of the Collateral owned by it, free and
        clear
        of any Liens other than the Security Interests and Permitted Liens (as defined
        in the New Note).

       

      2.2           
Debtor
        has
        not performed any acts which might prevent the Secured Party from enforcing
        any
        of the terms and conditions of this Agreement or which would limit the Secured
        Party in any such enforcement. Other than financing statements or other similar
        or equivalent documents or instruments with respect to the Security Interests
        and Permitted Liens (as defined in the New Note), as of the date hereof and
        thereafter no financing statement, mortgage, security agreement or other
        similar
        or equivalent document or instrument covering all or any part of the Collateral
        is or will be on file or of record in any government office in any jurisdiction
        in which such filing or recording would be effective to perfect a Lien on
        such
        Collateral. No Collateral is in the possession of any Person or entity
        whatsoever (other than Debtor) which has taken action to assert any claim
        thereto or security interest therein, except that the Secured Party or their
        designee may have possession of Collateral as contemplated hereby.

       

      2.3           
The
        Security
        Interests constitute valid security interests under the UCC securing the
        Secured
        Obligations.

       

      2.4           
This
        Agreement has been duly authorized, executed and delivered by Debtor and
        constitutes a valid and binding agreement of Debtor. The execution, delivery
        and
        performance by Debtor of this Agreement, each filing, statement, supplementary
        assignment, pledge agreement or other document related to this Agreement
        to
        which Debtor is a party do not and will not contravene, or constitute (with
        or
        without the giving of notice or lapse of time or both) a default under, any
        provision of applicable law or regulation or of the charter or by-laws of
        Debtor
        or of any agreement, judgment, injunction, order, decree or other instrument
        binding upon it or result in the creation of any Lien (other than the Security
        Interests) on any asset of Debtor or any of its Subsidiaries.

       

      2.5           
Debtor
        has
        filed, or caused to be filed, in a timely manner all tax returns, reports
        and
        declarations which are required to be filed by it. All information in such
        tax
        returns, reports and declarations is complete and accurate in all material
        respects. Debtor has paid or caused to be paid all taxes due and payable
        or
        claimed due and payable in any assessment received by it, except taxes the
        validity of which are being contested in good faith by appropriate proceedings
        diligently pursued and available to Debtor and with respect to which adequate
        reserves have been set aside on its books. Adequate provision has been made
        for
        the payment of all accrued and unpaid Federal, State, county, local, foreign
        and
        other taxes whether or not yet due and payable and whether or not
        disputed.

       

      2.6           
There
        is no
        known present investigation by any governmental agency pending, or to the
        best
        of Debtor’s knowledge threatened, against or affecting Debtor, its assets or
        business and there is no action, suit, proceeding or claim by any Person
        or
        entity pending, or to the best of Debtor’s knowledge threatened, against Debtor
        or its assets or goodwill, or against or affecting any transactions contemplated
        by this Agreement, which would reasonably be expected to result in any material
        adverse change in the assets, business or prospects of Debtor or would impair
        the ability of Debtor to perform its obligations hereunder or under the Note
        or
        the Loan or of the Secured Party to enforce any Secured Obligations or realize
        upon any Collateral.

       

      
        
          
             

             

          

           

        

        
          5

          
            

          

        

        
           

        

      

      2.7           
Debtor
        is not
        in default in any material respect under, or in violation in any material
        respect of any of the terms of, any material agreement, contract, instrument,
        lease or other commitment to which it is a party or by which it or any of
        its
        assets are bound and Debtor is in compliance in all material respects with
        all
        applicable provisions of laws, rules, regulations, licenses, permits, approvals
        and orders of any foreign, Federal, Slate or local governmental
        authority.

       

      2.8           
All
        representations and warranties contained in this Agreement or any of the
        agreements concerning the Note or the Loan shall survive the execution and
        delivery of this Agreement and shall be deemed to have been made again to
        the
        Secured Party on the date of each additional borrowing or other credit
        accommodation hereunder and shall be conclusively presumed to have been relied
        on by the Secured Party regardless of any investigation made or information
        possessed by the Secured Party. The representations and warranties set forth
        herein shall be cumulative and in addition to any other representations or
        warranties which Debtor shall now or hereafter give, or cause to be given,
        to
        the Secured Party.

       

      3.           
Security
        Interests.  In order to secure the full and punctual payment
        and performance of the Secured Obligations in accordance with the terms thereof,
        Debtor hereby grants to the Secured Party a continuing security interest
        in and
        to all of the following property of Debtor, whether now owned or existing
        or
        hereafter acquired or arising and regardless of where located (collectively,
        “Collateral”):

       

      3.1           
        Accounts;

       

      3.2           
        Documents;

       

      3.3           
        Equipment,

       

      3.4           
General
        Intangibles;

       

      3.5           
        Instruments;

       

      3.6           
        Inventory;

       

      3.7           
Subsidiary
        Interests;

       

      3.8           
        Software;

       

      3.9           
All
        other
        personal property and assets of Debtor;

       

      3.10           
All
        books and
        records (including, without limitation, customer lists, supplier lists, credit
        files, computer programs, printouts and other computer materials and records)
        of
        such Debtor pertaining to any of the Collateral; and

       

      3.11           
All
        Proceeds
        of any of the Collateral described in the preceding clauses of this Paragraph,
        in any form, including without limitation insurance proceeds and all claims
        against third parties for loss or damage to or destruction of any or all
        of the
        foregoing.

       

      
        
          
             

             

          

           

        

        
          6

          
            

          

        

        
           

        

      

      4.           
Further
        Assurances;
        Covenants.

       

      4.1           
Debtor
        shall
        not change the location of (a) its chief executive office or chief place
        of
        business or (b) the locations where it keeps or holds any Collateral, or
        any
        records relating to such Collateral, from the Site unless it shall have given
        the Secured Party at least 45 days’ prior written notice. Debtor shall not in
        any event change the location of any Collateral if such change would cause
        the
        Security Interests in such Collateral to lapse or cease to be perfected.

       

      4.2           
Debtor
        shall
        maintain Inventory only at (a) the Site, (b) at a location in the United
        States
        of which the Secured Party have received at least 45 days’ prior written notice,
        or (c) in transit to a location specified in the preceding clauses.

       

      4.3           
Debtor
        shall
        not change its name, identity, any tradename used by it or its corporate
        structure in any manner unless it shall have given the Secured Party at least
        45
        days prior written notice.

       

      4.4           
Debtor
        shall
        cause the Secured Party to be named as an insured party and loss payee on
        each
        insurance policy covering risks relating to any of its Collateral. Such
        insurance shall be maintained against such risks as are insured against by
        companies of established repute in the same or similar lines of business
        as
        Debtor, in amounts, under policies, and with insurers reasonably acceptable
        to
        the Secured Party. Debtor will deliver to the Secured Party, upon request
        of the
        Secured Party the insurance policies for such insurance. Each such insurance
        policy shall include effective waivers by the insurer of all claims for
        insurance premiums against the Secured Party, shall provide that, for so
        long as
        any Event of Default shall have occurred and be continuing and the insurer
        shall
        have received notice thereof from the Secured Party, all insurance proceeds
        shall be adjusted with, and payable to the Secured Party and shall provide
        that
        no cancellation or termination thereof shall be effective until at least
        30 days
        after receipt by the Secured Party of written notice thereof.

       

      4.5           
Debtor
        will,
        promptly upon request, provide to the Secured Party all information and evidence
        it may reasonably request concerning the Collateral to enable the Secured
        Party
        to enforce the provisions of this Agreement.

       

      4.6           
At
        the
        request of the Secured Party, Debtor will join with the Secured Party in
        executing one or more (1) Financing Statements, (2) Copyright Registration
        Applications, and/or (3) Notices of Assignment of Copyright pursuant to any
        applicable law, in form satisfactory to the Secured Party.

       

      4.7           
Except
        in the
        ordinary course of business or otherwise in accordance with the New Note,
        Debtor
        shall not, without the prior written approval of the Secured Party sell,
        encumber or otherwise transfer any Collateral, or agree or attempt to do
        so.

       

      4.8

       

      (a)           
Debtor
        shall
        notify the Secured Party promptly of: (i) any material delay in Debtor’s
        performance of any of its obligations to any account debtor or the assertion
        of
        any class, offsets, defenses or counterclaims by any account debtor, or any
        disputes with account

       

      
        
          
             

             

          

           

        

        
          7

          
            

          

        

        
           

        

      

      debtors,
        or any settlement, adjustment or compromise thereof, (ii) all material adverse
        information relating to the financial condition of any account debtor and
        (iii)
        any event or circumstance which, to Debtor’s knowledge would cause any then
        existing Accounts to no longer be collected pursuant to their original terms.
        No
        credit, discount, allowance or extension or agreement for any of the foregoing
        shall be granted to any account debtor without the Secured Party’s consent,
        except in the ordinary course of Debtor’s business in accordance with practices
        and policies previously disclosed in writing to Debtor. So long as no Event
        of
        Default exists or has occurred and is continuing, Debtor shall settle, adjustor
        compromise any claim, offset, counterclaim or dispute with any account debtor.
        At any time that an Event of Default exists or has occurred and is continuing,
        the Secured Party shall, at their option, have the exclusive right to settle,
        adjust or compromise any claim, offset, counterclaim or dispute with account
        debtors or grant any credits, discounts or allowances.

       

      (b)           
The
        Secured
        Party shall have the right at any time or times, in the Secured Party’s name or
        in the name of a nominee of the Secured Party, to verify the validity, amount
        or
        any other matter relating to any Account or other Collateral, by mail,
        telephone, facsimile transmission or otherwise.

       

      (c)           
The
        Secured
        Party may, at any time or times that an Event of Default exists or has occurred
        and is continuing, (i) notify any or all account debtors that the Accounts
        have
        been assigned to the Secured Party and that the Secured Party has a security
        interest therein and the Secured Party may direct any or all accounts debtors
        to
        make payment of Accounts directly to the Secured Party, (ii) extend the time
        of
        payment of, compromise settle or adjust for cash, credit, return of merchandise
        or otherwise, and upon any terms or conditions, any and all Accounts or other
        obligations included in the Collateral and thereby discharge or release the
        account debtor or any other party or parties in any way liable for payment
        thereof without affecting any of the Obligations, (iii) demand, collect or
        enforce payment of any Accounts or such other obligations, but without any
        duty
        to do so, and the Secured Party shall not be liable for its failure to collector
        enforce the payment thereof nor for the negligence of its agents or attorneys
        with respect thereto and (iv) take whatever other action the Secured Party
        may
        deem necessary or desirable for the protection of its interests. At any time
        that an Event of Default exists or has occurred and is continuing, at the
        Secured Party’s request, all invoices and statements sent to any account debtor
        shall state that the Accounts and such other obligations have been assigned
        to
        the Secured Party and are payable directly and only to the Secured Party
        and
        Debtor shall deliver to the Secured Party such originals of documents evidencing
        the sale and delivery of goods or the performance of services giving rise
        to any
        Accounts as the Secured Party may require.

       

      4.9           
With
        respect
        to the Equipment:

       

      (a)           
upon
        the
        Secured Party’s request, Debtor shall, at its expense, at any time or times as
        the Secured Party may request on or after an Event of Default, deliver or
        cause
        to be delivered to the Secured Party written reports or appraisals as to
        the
        Equipment in form, scope and methodology acceptable to the Secured Party
        and by
        an appraiser acceptable to the Secured Party;

       

      
        
          
             

             

          

           

        

        
          8

          
            

          

        

        
           

        

      

      (b)           
Debtor
        shall
        keep the Equipment in good order, repair, naming and marketable condition
        (ordinary wear and tear excepted);

       

      (c)           
Debtor
        shall
        use the Equipment with all reasonable care and caution and in accordance
        with
        applicable standards of any insurance and in conformity with all material
        applicable laws;

       

      (d)           
the
        Equipment
        is and shall be used in Debtor’s business and not for personal, family,
        household or farming use;

       

      (e)           
the
        Equipment
        is now and shall remain personal property and Debtor shall use commercially
        reasonable efforts to not permit any of the Equipment to be or become a part
        of
        or affixed to real property; and

       

      (f)           
Debtor
        assumes all responsibility and liability arising from the use of the Equipment
        unless in the Secured Party’s possession.

       

      4.10           
With
        respect
        to the Inventory:

       

      (a)           
upon
        the
        Secured Party’s request, Debtor shall, at its expense, no more than once in any
        twelve (12) month period, but at any time or times as the Secured Party may
        request on or after an Event of Default, deliver or cause to be delivered
        to the
        Secured Party written reports or appraisals as to the Inventory in form,
        scope
        and methodology acceptable to the Secured Party and by an appraiser acceptable
        to the Secured Party, addressed to the Secured Party, upon which the Secured
        Party are expressly permitted to rely;

       

      (b)           
Debtor
        shall
        produce, use, store and maintain the Inventory with all reasonable care and
        caution and in accordance with applicable standards of any insurance and
        in
        conformity with applicable laws (including the requirements of the Federal
        Fair
        Labor Standards Act of 1938, as amended and all rules, regulations and orders
        related thereto);

       

      (c)           
Debtor
        assumes all responsibility and liability arising from or relating to the
        production, use, sale or other disposition of the Inventory; and

       

      (d)           
Debtor
        shall
        keep the Inventory in good and marketable condition.

       

      4.11           
Debtor
        shall
        duly pay and discharge all taxes, assessments contributions and governmental
        charges upon or against it or its properties or assets, except for taxes
        the
        validity of which are being contested in good faith by appropriate proceedings
        diligently pursued and available to Debtor and with respect to which adequate
        reserves have been set aside on its books. Debtor shall be liable for any
        tax or
        penalties (other than income taxes, franchise taxes and any penalties related
        thereto) imposed on the Secured Party as a result of the financing arrangements
        provided for herein and Debtor agrees to indemnify and hold the Secured Party
        harmless with respect to the foregoing, and to repay to the Secured Party
        on
        demand the amount thereof, and until paid by Debtor such amount shall be
        added
        and deemed part of the Loan. The foregoing indemnity shall survive the payment
        of the Secured Obligations and the termination or non-renewal of this
        Agreement.

       

      
        
          
             

             

          

           

        

        
          9

          
            

          

        

        
           

        

      

      4.12           
Except
        in the
        ordinary course of business or as otherwise permitted by the New Note, other
        than the Secured Obligations, Debtor shall not incur, create, assume, become
        liable in any manner with respect to, or permit to exist, any obligations
        or
        indebtedness.

       

      4.13           
As
        soon as
        practicable, but no later than thirty (30) days after the date hereof, Debtor
        shall deliver to the Secured Party evidence that the source code for the
        most
        recent versions, as of the date hereof, of all Software commercially released
        by
        Debtor has been delivered to an escrow agent (“Escrowed Source Code”) reasonably
        satisfactory to the Secured Party pursuant to an escrow agreement in form
        and
        substance reasonably satisfactory to the Secured Party.  Debtor shall,
        as soon as practicable following the date of delivery by Secured Party to
        Debtor
        of a written request that the source code escrow contemplated by this Section
        4.13 be updated, but in each case no later than thirty (30) days following
        such
        date, deliver to such escrow agent such additional source code as is necessary
        to ensure that any source code so delivered, together with all source code
        previously delivered to such escrow agent pursuant to this Section 4.13,
        includes the source code for the most recent versions, as of the date of
        delivery of such request, of all Software commercially released by Debtor;
        provided, however, that Debtor shall have no obligation under this sentence
        arising from any such request delivered to Debtor within ninety (90) days
        of the
        date hereof or within ninety (90) days of the most recent date on which any
        other such request has been delivered to Debtor.  Debtor shall not
        change such source code at any time that a Default or Event of Default has
        occurred and is continuing without furnishing to such escrow agent the new
        source code within sixty (60) days following the date of such change, once
        such
        source code has been delivered to such escrow agent pursuant to this Section
        4.13.

       

      5.           
General
        Authority.  Debtor hereby irrevocably appoints the Secured
        Party as its true and lawful attorney, with full power of substitution, in
        the
        name of Debtor, the Secured Party or otherwise, for the sole use and benefit
        of
        the Secured Party, but at such Debtor’s expense, to the extent permitted by law
        to exercise, at any time and from time to time while an Event of Default
        has
        occurred and is continuing all or any of the following powers with respect
        to
        all or any of the Collateral owned by Debtor, (a) to settle, compromise,
        compound, prosecute or defend any action or proceeding with respect to the
        Collateral, (b) to sell, transfer, assign otherwise deal in or with the same
        or
        the proceeds or avails thereof, as fully and effectually as if the Secured
        Party
        were the absolute owner of the Collateral; provided, that
        the
        Secured Party shall give Debtor not less than 10 days’ prior written notice of
        the time and place of any sale or other intended disposition of any of the
        Collateral except any Collateral which is perishable or threatens to decline
        speedily in value or is of a type customarily sold on a recognized market.
        Debtor agrees that such notice constitutes “reasonable notification” within the
        meaning of Section 9-504(3) of the UCC.

       

      6.           
Remedies
        Upon Event of
        Default.

       

      6.1           
If
        any Event
        of Default has occurred and is continuing, the Secured Party may exercise
        all
        other rights of a secured party under the UCC (whether or not in effect in
        the
        jurisdiction where such rights are exercised) and, in addition, the Secured
        Party may, without being required to give any notice, except as herein provided
        or as may be required by mandatory provisions of law sell the Collateral
        or any
        part thereof at public or private sale or at any broker’s board or on any
        securities exchange, for cash, upon credit or for future delivery and at
        such
        price

       

      
        
          
             

             

          

           

        

        
          10

          
            

          

        

        
           

        

      

      or
        prices
        as the Secured Party may deem satisfactory. The Secured Party may be the
        purchaser of any or all of the Collateral so sold at any public sale (or,
        if the
        Collateral is of a type customarily sold in a recognized market or is of
        a type
        which is the subject of widely distributed standard price quotations, at
        any
        private sale) and thereafter hold the same, absolutely, free from any right
        or
        claim of whatsoever kind. Debtor agrees to execute and deliver such documents
        and take such other action as the Secured Party deems necessary or advisable
        in
        order that any such sale may be made in compliance with law. Upon any such
        sale,
        the Secured Party shall have the right to deliver, assign and transfer to
        the
        purchaser thereof the Collateral so sold. Each purchaser at any such sale
        shall
        hold the Collateral so sold to it absolutely, free from any claim or right
        of
        whatsoever kind, including any equity or right of redemption of Debtor which
        may
        be waived and Debtor, to the extent permitted by law, hereby specifically
        waives
        all rights of redemption, stay or appraisal which it has or may have under
        any
        law now existing or hereafter adopted. The notice of sale shall, (1) in vase
        of
        a public sale, state the time and place fixed for such sale, and (2) in the
        case
        of a private sale, state the day after which such sale may be consummated.
        Any
        such public sale shall be held at such time or times within ordinary business
        hours and at such place or places as the Secured Party may fix in the notice
        of
        such sate. At any such sale the Collateral may be sold in one lot as an entirety
        or in separate parcels, as the Secured Party may determine. The Secured Party
        shall not be obligated to make any such sale pursuant to any such notice.
        The
        Secured Party may, without notice or publication, adjourn any public or private
        sale or cause the same to be adjourned from time to time by announcement
        at the
        time and place fixed for the sale, and such sale may be made at any time
        or
        place to which the same may be so adjourned, In case of any sale of all or
        any
        part of the Collateral on credit or for future delivery, the Collateral so
        sold
        may be retained by the Secured Party until the selling price is paid by the
        purchaser thereof, but the Secured Party shall not incur any liability in
        case
        of the failure of such purchaser to take up and pay for the Collateral so
        sold
        and, in case of any such failure, such Collateral may again he sold upon
        like
        notice. The Secured Party, instead of exercising the power of sale herein
        conferred upon them, may proceed by a suit or suits at law or in equity to
        foreclose the Security Interests and sell the Collateral, or any portion
        thereof
        under a judgment or decree of a court or courts of competent
        jurisdiction.

       

      6.2           
In
        addition
        to the other rights of the Secured Party described herein, if an Event of
        Default has occurred and is continuing, Debtor shall use commercially reasonable
        efforts to cause such depository institution to execute and deliver to the
        Secured Party a Depository Account Control Agreement with regard to each
        of the
        Depository Accounts of the Debtor.

       

      6.3           
For
        the
        purpose of enforcing any and all rights and remedies under this Agreement,
        if
        any Event of Default has occurred and is continuing, then the Secured Party
        may
        (a) require Debtor to, and Debtor agrees that it will, at its own expense,
        forthwith assemble all or any part of the Collateral as directed by the Secured
        Party and make it available at a place designated by the Secured Party which
        is,
        in its opinion, reasonably convenient to the Secured Party and Debtor, whether
        at the premises of Debtor or otherwise, (b) to the extent permitted by
        applicable law, enter, with or without process of law and without breach
        of the
        peace, any premise where any of the Collateral is or may be located, and
        without
        charge or liability to it seize and remove such Collateral from such premises,
        (c) have access to and use any of Debtor’s books and records relating to the
        Collateral and (d) prior to the disposition of the Collateral, process, repair
        or recondition it or otherwise prepare it for disposition in any manner and
        to
        the

       

      
        
          
             

             

          

           

        

        
          11

          
            

          

        

        
           

        

      

      extent
        the Secured Party deems appropriate and, in connection with such preparation
        and
        disposition, use without charge any trademark, trade name, copyright, patent
        or
        technical process used by Debtor.

       

      6.4           
Any
        laboratory which has possession of any of the Collateral is hereby constituted
        and appointed by Debtor as pledgeholder for the Secured Party and the Secured
        Party may authorize each such pledgeholder to sell all or any portion of
        the
        Collateral upon the order and direction of the Secured Party, and Debtor
        hereby
        waives any and all claims for damages, or otherwise, for any action taken
        by
        such pledgeholder.

       

      7.           
Application
        of
        Proceeds.  Upon the occurrence and during the continuance of an
        Event of Default, the proceeds of any sale of, or other realization upon,
        all or
        any part of the Collateral shall be applied by the Secured Party in the
        following order of priorities:

       

      7.1           
First,
        to
        payment of the expenses of such sale or other realization, including, on
        a pari passu basis, reasonable
        compensation to agents and counsel for the Secured Party and all expenses,
        liabilities and advances incurred or made by the Secured Party in connection
        therewith, and any other unreimbursed expenses for which the Secured Party
        is to
        be reimbursed under any other agreement or instrument entered into in connection
        with the Loan or this Agreement and unpaid fees owing to the Secured
        Party.

       

      7.2           
Next
        to the
        payment of the Secured Obligations, on a pari passu basis, in
        accordance with the provisions of the Loan, until all such amounts have been
        paid in fill.

       

      7.3           
Finally,
        to
        Debtor or its successors or assigns, or as a court of competent jurisdiction
        may
        direct, of any surplus then remaining from such proceeds.

       

      The
        Secured Party may make distributions hereunder in cash or in kind or in any
        combination thereof.

       

      8.           
Termination
        of Security
        Interest; Release of Collateral.  Upon the repayment in full of
        all Secured Obligations, the Security Interests shall terminate and all rights
        to the Collateral shall revert to Debtor. At any time and from time to time
        prior to such termination of the Security Interests, the Secured Party may
        release any of the Collateral or release Debtor of its obligations hereunder
        with the prior written consent of the Secured Party.

       

      9.           
Governing
        Law.  This Agreement is governed by and construed in accordance
        with the laws of the State of New York, irrespective of New York’s choice-of-law
        principles.

       

      10.           
Further
        Assurances.  Each party to this Agreement shall execute and
        deliver all instruments and documents and take all actions as may be reasonably
        required or appropriate to carry out the purposes of this Agreement.

       

      11.           
Counterparts
        and
        Exhibits.  This Agreement may be executed in counterparts, each
        of which is deemed an original and all of which together constitute one
        document. All exhibits attached to and referenced in this Agreement are
        incorporated into this Agreement.

       

      
        
          
             

             

          

           

        

        
          12

          
            

          

        

        
           

        

      

      12.           
Time
        of
        Essence.  Time and strict and punctual performance are of the
        essence with respect to each provision of this Agreement.

       

      13.           
Attorney’s
        Fees.  The prevailing party(ies) in any litigation,
        arbitration, mediation, bankruptcy insolvency or other proceeding (“Proceeding”)
        relating to the enforcement or interpretation of this Agreement may cover
        from
        the unsuccessful party(ies) all costs, expenses, and actual attorneys fees
        (including expert witness and other consultants’ fees and costs) relating to or
        arising out of (a) the Proceeding (whether or not the Proceeding proceeds
        to
        judgment), and (b) any post-judgment or post-award proceeding including,
        without
        limitation, one to enforce or collect any judgment or award resulting from
        the
        Proceeding. All such judgments and awards shall contain a specific provision
        for
        the recovery of all such subsequently incurred costs, expenses, and actual
        attorney’s fees.

       

      14.           
Modification.  This
        Agreement may be modified only by a contract in writing executed by the party
        to
        this Agreement against whom enforcement of the modification is sought.

       

      15.           
Headings.  The
        paragraph headings in this Agreement; (a) are included only for convenience,
        (b)
        do not in any manner modify or limit any of the provisions of this Agreement,
        and (c) may not be used in the interpretation of this Agreement.

       

      16.           
Prior
        Understandings.  This Agreement and all documents specifically
        referred to and executed in connection with this Agreement: (a) contain the
        entire and final agreement of the parties to this Agreement with respect
        to the
        subject matter of this Agreement, and (b) supersede all negotiations,
        stipulations, understandings, agreements representations and warranties if
        any,
        with respect to such subject matter, which precede or accompany the execution
        of
        this Agreement.

       

      17.           
Interpretation.  Whenever
        the context so requires in this Agreement, all words used in the singular
        may
        include the plural (and vice versa) and the word ‘Person’ includes a natural
        person, a corporation, a firm, a partnership, a joint venture, a trust, an
        estate or any other entity. The terms “includes” and “including” do not imply
        any limitation. For purposes of this Agreement, the term “day means any calendar
        day and the term “business day” means any calendar day other than a Saturday,
        Sunday or any other day designated as a holiday under California Government
        Code
        Sections 6700-6701. Any act permitted or required to be performed under this
        Agreement upon a particular day which is not a business day may be performed
        on
        the next business day with the same effect as if it bad been performed upon
        the
        day appointed. No remedy or election under this Agreement is exclusive, but
        rather, to the extent permitted by applicable law, each such remedy and election
        is cumulative with all other remedies at law or inequity.

       

      18.           
Partial
        Invalidity.  Each provision of this Agreement is valid and
        enforceable to the fullest extent permitted by law. If any provision of this
        Agreement (or the application of such provision to any Person or circumstance)
        is or becomes invalid or unenforceable, the remainder of this Agreement,
        and the
        application of such provision to Persons or circumstances other than those
        as to
        which it is held invalid or unenforceable, are not affected by such invalidity
        or unenforceability.

       

      
        
          
             

             

          

           

        

        
          13

          
            

          

        

        
           

        

      

      19.           
Successors-in-Interest
        and
        Assigns.  Debtor may not voluntarily or by operation of law
        assign, hypothecate, delegate or otherwise transfer or encumber all or any
        part
        of its rights, duties or other interests in this Agreement without the prior
        written consent of the Secured Party, which consent may be withheld in the
        Secured Party’s sole and absolute discretion. Any such transfer in violation of
        this paragraph is void. Subject to the foregoing and any other restrictions
        on
        transferability contained in this Agreement, this Agreement is binding upon
        and
        inures to the benefit of the successors-in-interest and assigns of each party
        to
        this Agreement.

       

      20.           
Notices.  All
        notices or other communications required or permitted to be given to a party
        to
        this Agreement shall be in writing and shall be personally delivered, sent
        by
        facsimile or electronic mail, sent by certified mail, postage prepaid, return
        receipt requested, or sent by an overnight express courier service that provides
        written confirmation of delivery, to such party at the following respective
        address:

       

      
        	
                Secured
                  Party:

              	
                ERP2
                  Holdings, LLC

                c/o
                  Richard Shorten

                694
                  Weed Street

                New
                  Canaan, CT 06840

                Attention:  Board
                  of Managers

                Fax:  (702)
                  995-4535

                Email:  rshorten@silverminecapital.com

              
	 	 
	
                with
                  a copy to:

              	
                Stroock
                  & Stroock & Lavan LLP

                180
                  Maiden Lane

                New
                  York, NY 10038

                Attention:  Brett
                  Lawrence

                Fax:  (212)
                  806-6006

                Email:  blawrence@stroock.com

              
	 	 
	
                Debtor:

              	
                Enterprise
                  Informatics Inc.

                10052
                  Mesa Ridge Court, Suite 100

                San
                  Diego, CA 92121

                Attention:  John
                  Low

                Fax:  (858)
                  625-3010

                Email:  jlow@enterpriseinformatics.com

              
	 	 
	
                with
                  a copy to:

              	
                Gibson,
                  Dunn & Crutcher LLP

                1881
                  Page Mill Road

                Palo
                  Alto, CA 94304

                Attention:
                  Russell C. Hansen

                Fax:  (650)
                  849-5333

                Email:
                  rhansen@gibsondunn.com

              

      

      

      Each
        such
        notice or other communication shall be deemed given, delivered and received
        upon
        its actual receipt, except that if it is sent by mail in accordance with
        this
        paragraph, then it shall be deemed given, delivered and received three days
        after the date such notice or other communication is deposited with the United
        States Postal Service in accordance with this

       

      
        
          
             

             

          

           

        

        
          14

          
            

          

        

        
           

        

      

      paragraph.
        Any party to this Agreement may give a notice of a change of its address
        to the
        other party(ies) to this Agreement.

       

      21.           
Waiver.  Any
        waiver of a default or provision under this Agreement must be in writing.
        No
        such waiver constitutes a waiver of any other default or provision concerning
        the same or any other provision of this Agreement. No delay or omission by
        a
        party in the exercise of any of its rights or remedies constitutes a waiver
        of
        (or otherwise impairs) such right or remedy. A consent to or approval of
        an act
        does not waive or render unnecessary the consent to or approval of any other
        or
        subsequent act.

       

      22.           
Drafting
        Ambiguities.  Each party to this Agreement has reviewed and
        revised this Agreement and has had the opportunity to have such party’s legal
        counsel review and revise this Agreement.  Each party to this
        Agreement acknowledges that this Agreement has been prepared by Stroock &
Stroock & Lavan LLP (“Stroock”) which represents only the Secured Party,
        that Debtor is not being represented by Stroock in relation to this Agreement
        and that Debtor has been advised to retain its own legal counsel. The rule
        of
        construction that ambiguities are to be resolved against the drafting party
        or
        in favor of the party receiving a particular benefit under an agreement may
        not
        be employed in the interpretation of this Agreement or any amendment to this
        Agreement.

       

      23.           
Third
        Party
        Beneficiaries.  Nothing in this Agreement is intended to confer
        any rights or remedies or any Person or entity other than the parties to
        this
        Agreement and their respective successors-in-interest and permitted assignees,
        unless such rights are expressly granted in this Agreement to another Person
        specifically identified as a “Third Party Beneficiary.”

       

      24.           
JURISDICTION.  WITHOUT
        LIMITING IN ANY WAY THE SECURED PARTY’S RIGHT TO ENFORCE ANY REMEDY AVAILABLE
        UNDER THE UCC WITHOUT FORMAL LEGAL OR JUDICIAL ACTION, BORROWER AND SECURED
        PARTY SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL DISTRICT COURTS
        LOCATED IN THE STATE OF NEW YORK.

       

      25.           
Fees
        and
        Expenses.  The Debtor shall pay all reasonable fees and
        expenses of the Secured Party in connection with the negotiation, execution
        and
        delivery of this Agreement.

       

      [Signature
        Page Follows]

       

      
        
          
             

             

          

           

        

        
          15

          
            

          

        

        
           

        

      

      IN
        WITNESS WHEREOF, Debtor and the Secured Party have each caused this Agreement
        to
        be executed by its duly authorized representative as of the day and year
        first
        written above.

       

      
        	
                DEBTOR:

              	
                ENTERPRISE
                  INFORMATICS INC.

              
	 	 
	 	 
	 	
                By:

              	
                
                    /s/  John
                    W. Low

                

              
	 	 	
                Name:  John
                  W. Low

              
	 	 	
                Title:  Chief
                  Financial Officer

              
	 
	 
	
                SECURED
                  PARTY:

              	
                ERP2
                  HOLDINGS, LLC

              
	 	 
	 	 
	 	
                By:

              	
                
                      /s/
                    Kevin Wyman

                

              
	 	 	
                Name:  Kevin
                  Wyman

              
	 	 	
                Title:    Majority
                  Manager

              
	 	 	 
	 	 	 
	 

      

      

      
        
          
            [Signature
              Page to Security Agreement]

            

            

            

            

             

          

           

        

        
          16

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