Document:

EXHIBIT
      10.36

    
 

    VOTING
      AGREEMENT

     

    This
      Voting Agreement (the “Agreement”)
      dated
      as of September 1, 2005 by and between ASOC Acquisition Corp., a Delaware
      corporation (the “Buyer”),
      and
      the undersigned holder (the “Stockholder”)
      of
      shares (the “Shares”)
      of
      common stock, par value $0.001 per share, of Axeda Systems Inc., a Delaware
      corporation (the “Company”).
      

     

    WHEREAS,
      the Buyer, the Company and certain of the Company’s direct and indirect
      subsidiaries have entered into an Asset Purchase Agreement dated as of the
      date
      hereof (as such agreement may be subsequently amended or modified, the
“Purchase
      Agreement”),
      providing for the sale by the Company and its subsidiaries, and the purchase
      by
      the Buyer, of substantially all of the assets of the Business (as defined in
      the
      Purchase Agreement) (the “Asset
      Sale”);
      

     

    WHEREAS,
      the Stockholder beneficially owns and has sole or shared voting power with
      respect to the number of Shares, and holds stock options or other rights to
      acquire the number of Shares indicated under the Stockholder’s name on the
      signature page hereto;

     

    WHEREAS,
      it is a condition to the Buyer’s execution and delivery to the Company of the
      Purchase Agreement that the undersigned execute and deliver to the Buyer this
      Agreement on a date even herewith; and

     

    WHEREAS,
      all capitalized terms used in this Agreement without definition herein shall
      have the meanings ascribed to them in the Purchase Agreement.

     

    NOW,
      THEREFORE, in consideration of, and as a condition to, the Buyer entering into
      the Purchase Agreement and proceeding with the transactions contemplated
      thereby, and in consideration of the expenses incurred and to be incurred by
      the
      Buyer in connection therewith, the Stockholder and the Buyer agree as
      follows:

     

    Agreement
      to Vote Shares.
      The
      Stockholder agrees that at any meeting of the stockholders of the Company or
      any
      adjournment thereof, or in connection with any written consent of the
      stockholders of the Company, with respect to the Asset Sale, the Purchase
      Agreement or any Acquisition Proposal, the Stockholder shall:

     

    appear
      at
      such meeting or otherwise cause the Shares to be counted as present thereat
      for
      purposes of calculating a quorum;

     

    vote
      (or
      cause to be voted), or deliver a written consent (or cause a consent to be
      delivered) covering all of the Shares that such Stockholder shall be entitled
      to
      so vote, whether such Shares are beneficially owned by such Stockholder on
      the
      date of this Agreement or are subsequently acquired, (i) in favor of adoption
      and approval of the Purchase Agreement, the Asset Sale and all other
      transactions contemplated by the Purchase Agreement as to which stockholders
      of
      the Company are called upon to vote or consent; (ii) against any action or
      agreement that would reasonably be expected to result in a breach in any
      material respect of any covenant, representation or warranty of the Stockholder
      contained in this Agreement; and (iii) against any Acquisition Proposal,
      or
      any agreement or transaction that is intended to, or could reasonably be
      expected to, materially impede, interfere with, delay, postpone, discourage
      or
      materially and adversely affect the consummation of the Asset Sale;
      and

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    not
      vote
      or execute any written consent to rescind or amend in any manner any prior
      vote
      or written consent approving or adopting the Purchase Agreement and/or the
      Asset
      Sale.

     

    Termination
      Date.
      This
      Agreement shall terminate upon the earlier to occur of (a) the consummation
      of
      the Asset Sale, (b) such date and time as the Purchase Agreement shall be
      terminated pursuant to Article XII thereof, or (c) upon mutual written agreement
      of the parties hereto to terminate this Agreement. Upon termination or
      expiration of this Agreement, no party shall have any further obligations or
      liabilities under this Agreement; provided,
      however, such
      termination or expiration shall not relieve any party from liability for any
      willful breach of this Agreement prior to termination hereof.

     

    Agreement
      to Retain Shares.
      From
      and after the date hereof, the Stockholder shall not directly or indirectly,
      and
      will not permit any company, trust or other entity controlled by the Stockholder
      to, sell, assign, transfer, or otherwise dispose of (including, without
      limitation, by the creation of a Lien (as defined in Section 4(c) below)),
      or enter into any contract, option, commitment or other arrangement or
      understanding with respect to the sale, transfer, assignment or other
      disposition of, any Shares owned by the Stockholder, whether such Shares are
      held by the Stockholder on the date of this Agreement or are subsequently
      acquired, whether by the exercise of any stock options to acquire Shares or
      otherwise. Notwithstanding the foregoing, the Stockholder may make transfers
      by
      will or by operation of law or other transfers for estate planning purposes,
      in
      which case this Agreement shall bind the transferee.

     

    Representations
      and Warranties of the Stockholder.
      The
      Stockholder hereby represents and warrants to the Buyer as follows:

     

    the
      Stockholder has the complete and unrestricted power and the unqualified right
      to
      enter into and perform the terms of this Agreement;

     

    this
      Agreement constitutes a valid and binding agreement with respect to the
      Stockholder, enforceable against the Stockholder in accordance with its terms,
      except as enforcement may be limited by general principles of equity whether
      applied in a court of law or a court of equity and by bankruptcy, insolvency
      and
      similar laws affecting creditors’ rights and remedies generally;

     

    the
      Stockholder beneficially owns the number of Shares (including options and rights
      to purchase Shares) indicated under such Stockholder’s name on the signature
      page hereto, free and clear of any liens, claims, charges or other encumbrances
      or restrictions of any kind whatsoever (“Liens”),
      and
      has sole or shared, and otherwise unrestricted, voting power with respect to
      such Shares; and

     

    the
      execution and delivery of this Agreement by the Stockholder does not, and the
      performance by the Stockholder of his obligations hereunder and the consummation
      by the Stockholder of the transactions contemplated hereby will not, violate
      or
      conflict with, or constitute a default under, any agreement, instrument,
      contract or other obligation or any order, arbitration award, judgment or decree
      to which the Stockholder is a party or by which the Stockholder is bound, or
      any
      statute, rule or regulation to which the Stockholder is subject or, in the
      event
      that the Stockholder is a corporation, partnership, trust or other entity,
      any
      bylaw or other organizational document of the Stockholder.

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    Irrevocable
      Proxy.
      By
      execution of this Agreement, the Stockholder does hereby appoint the Buyer,
      with
      full power of substitution and resubstitution, as the Stockholder’s true and
      lawful attorney and irrevocable proxy, to the fullest extent of the
      undersigned’s rights with respect to the Shares, to vote, if the Stockholder is
      unable, unwilling or otherwise fails, or is reasonably expected to be unable,
      unwilling or to fail, to perform his or her obligations under this Agreement,
      each of such Shares solely with respect to the matters set forth in Section
      1
      hereof. The Stockholder intends this proxy to be irrevocable and coupled with
      an
      interest hereunder until termination of this Agreement and hereby revokes any
      proxy previously granted by the Stockholder with respect to the Shares.

     

    No
      Solicitation.
      The
      Stockholder, in his or her capacity as a stockholder of the Company, shall
      not,
      and shall not permit any of his or her Representatives (to the extent applicable
      to the Stockholder) to, directly or indirectly, invite, initiate, solicit,
      encourage or facilitate (including by way of furnishing nonpublic information
      or
      assistance) any inquiries, proposals, discussions or negotiations or the making
      or implementation of any proposal or offer (including, without limitation,
      any
      proposal or offer to the stockholders of the Company) with respect to, or that
      may reasonably be expected to lead to, any direct or indirect Acquisition
      Proposal or engage in any discussions or negotiations with any Third Party
      with
      respect to, or that may reasonably be expected to lead to, an Acquisition
      Proposal, or enter into any letter of intent, agreement in principle or
      agreement relating to an Acquisition Proposal, or propose publicly to do any
      of
      the foregoing. 

     

    Specific
      Enforcement.
      The
      Stockholder has signed this Agreement intending to be legally bound thereby.
      The
      Stockholder expressly agrees that this Agreement shall be specifically
      enforceable in any court of competent jurisdiction in accordance with its terms
      against the Stockholder. All of the covenants and agreements contained in this
      Agreement shall be binding upon, and inure to the benefit of, the respective
      parties and their permitted successors, assigns, heirs, executors,
      administrators and other legal representatives, as the case may be.

     

    Counterparts.
      This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed an original but all of which together shall constitute one and the same
      instrument. 

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    No
      Waivers.
      No
      waivers of any breach of this Agreement extended by the Buyer to the Stockholder
      shall be construed as a waiver of any rights or remedies of the Buyer with
      respect to any other stockholder of the Company who has executed an agreement
      substantially in the form of this Agreement with respect to Shares held or
      subsequently held by such stockholder or with respect to any subsequent breach
      of the Stockholder or any other such stockholder of the Company. No waiver
      of
      any provisions hereof by either party shall be deemed a waiver of any other
      provisions hereof by any such party, nor shall any such waiver be deemed a
      continuing waiver of any provision hereof by such party. 

     

    Miscellaneous.
      This
      Agreement to be governed by the laws of the Commonwealth of Massachusetts,
      without giving effect to the principles of conflicts of laws thereof. If any
      provision hereof is deemed unenforceable, the enforceability of the other
      provisions hereof shall not be affected.

     

    Capacity
      as Stockholder.
      The
      Stockholder signs this Agreement solely in the Stockholder’s capacity as a
      stockholder of the Company, and not in the Stockholder’s capacity as a director,
      officer or employee of the Company or any of its subsidiaries or in the
      Stockholder’s capacity as a trustee or fiduciary of any ERISA plan or trust.
      Notwithstanding anything herein to the contrary, nothing herein shall in any
      way
      restrict a director and/or officer of the Company in the exercise of his or
      her
      fiduciary duties consistent with the terms of the Purchase Agreement as a
      director and/or officer of the Company or in his or her capacity as a trustee
      or
      fiduciary of any ERISA plan or trust or prevent or be construed to create any
      obligation on the part of any director and/or officer of the Company or any
      trustee or fiduciary of any ERISA plan or trust from taking any action in his
      or
      her capacity as a director of the Company. 

     

    No
      Agreement Until Executed.
      Irrespective of negotiations among the parties or the exchanging of drafts
      of
      this Agreement, this Agreement shall not constitute or be deemed to evidence
      a
      contract, agreement, arrangement or understanding between the parties hereto
      unless and until (a) the Board of Directors of the Company has approved, for
      purposes of any applicable anti-takeover laws and regulations, and any
      applicable provision of the Company’s certificate of incorporation, the Asset
      Sale by the Buyer pursuant to the Purchase Agreement and (b) the Purchase
      Agreement is executed by all parties thereto.

     

    Entire
      Agreement.
      This
      Agreement supersedes all prior agreements, written or oral, among the parties
      hereto with respect to the subject matter hereof and contains the entire
      agreement among the parties with respect to the subject matter hereof. This
      Agreement may not be amended, supplemented or modified, and no provisions hereof
      may be modified or waived, except by an instrument in writing signed by each
      party hereto.

     

    [Signature
      Page Follows Next]

    
 

    
      
         

      

      
        -4-

        
          

        

      

      
         

        
        

      

    

    

    EXECUTED
      as of the date first above written.

     

    STOCKHOLDER

     

    /s/
      David
      Bennett

      
        

      

    

    Full
      Legal Name: David Bennett

     

    No.
      of
      Shares: 7,800

     

    Options
      or other

    Rights
      to
      Purchase: 260,500

     

     

    ASOC
      ACQUISITION CORP. 

     

    By: 
      /s/
      Bradford Woloson

      
        

      

    

    Name: Bradford
      Woloson

    Title: President

     

    

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    

    EXECUTED
      as of the date first above written.

     

    STOCKHOLDER

     

    /s/
      Paul
      Vais

      
        

      

    

    Full
      Legal Name: Paul Vais

     

    No.
      of
      Shares: 0

     

    Options
      or other

    Rights
      to
      Purchase: 55,000

     

     

    ASOC
      ACQUISITION CORP. 

     

    By:  
      /s/
      Bradford Woloson

      
        

      

    

    Name: Bradford
      Woloson

    Title: President

    

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    

    EXECUTED
      as of the date first above written.

     

    STOCKHOLDER

     

    /s/
      Karen
      Kupferberg

      
        

      

    

    Full
      Legal Name: Karen Kupferberg

     

    No.
      of
      Shares: 0

     

    Options
      or other

    Rights
      to
      Purchase: 325,000

     

     

    ASOC
      ACQUISITION CORP. 

     

    By: 
      /s/
      Bradford Woloson

      
        

      

    

    Name: Bradford
      Woloson

    Title: President

     

    

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    

    EXECUTED
      as of the date first above written.

     

    STOCKHOLDER

     

    /s/
      James
      Hansen

      
        

      

    

    Full
      Legal Name: James Hansen

     

    No.
      of
      Shares: 12,400 + 5,142

     

    Options
      or other

    Rights
      to
      Purchase: 425,000

     

     

    ASOC
      ACQUISITION CORP. 

     

    By: 
      /s/
      Bradford Woloson

      
        

      

    

    Name: Bradford
      Woloson

    Title: President

     

    

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    

    EXECUTED
      as of the date first above written.

     

    STOCKHOLDER

     

    /s/
      Robert M. Russell, Jr.

      
        

      

    

    Full
      Legal Name: Robert M. Russell, Jr.

     

    No.
      of
      Shares: 122,900

     

    Options
      or other

    Rights
      to
      Purchase: 881,000

     

     

    ASOC
      ACQUISITION CORP. 

     

    By:  
      /s/
      Bradford Woloson

      
        

      

    

    Name: Bradford
      Woloson

    Title: President

     

    

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    

    EXECUTED
      as of the date first above written.

     

    STOCKHOLDER

     

    /s/
      Richard MacKeen

      
        

      

    

    Full
      Legal Name: Richard MacKeen

     

    No.
      of
      Shares: 12,300

     

    Options
      or other

    Rights
      to
      Purchase: 780,000

     

     

    ASOC
      ACQUISITION CORP. 

     

    By:  
      /s/
      Bradford Woloson

      
        

      

    

    Name: Bradford
      Woloson

    Title: President

     

    

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    

    EXECUTED
      as of the date first above written.

     

    STOCKHOLDER

     

    /s/
      Dale
      Calder

      
        

      

    

    Full
      Legal Name: Dale Calder

     

    No.
      of
      Shares: 158,741

     

    Options
      or other

    Rights
      to
      Purchase: 575,000

     

     

    ASOC
      ACQUISITION CORP. 

     

    By: 
      /s/
      Bradford Woloson

      
        

      

    

    Name: Bradford
      Woloson

    Title: President

    
 

     

    
      
         

      

        -11-EXHIBIT
      10.37

     

     

    SENIOR
      SUBORDINATED SECURED BRIDGE NOTE PURCHASE AGREEMENT

     

    This
      Senior Subordinated Secured Bridge Note Purchase Agreement, dated as of
      September 1, 2005 (the “Agreement”),
      by
      and among Axeda Systems Inc., a Delaware corporation (the “Company”),
      Axeda
      Systems Operating Company, Inc., a Massachusetts corporation and an indirect
      wholly owned subsidiary of the Company (“ASOC”),
      and
      Axeda IP, Inc., a Nevada corporation and an indirect wholly owned subsidiary
      of
      the Company (“AIP”
      and,
      together with ASOC, the “Guarantors”),
      and
      the persons listed on Schedule
      1
      hereto
      (the “Purchasers”):

     

    WITNESSETH:

    

    WHEREAS,
      pursuant to the terms of the Senior Secured Bridge Note Purchase Agreement,
      dated as of July 8, 2005 and as amended from time to time, among the Company,
      the Guarantors and the Purchasers (the “Senior
      Bridge Agreement”),
      the
      Purchasers made senior secured loans to, and received promissory notes
      representing an aggregate principal amount of $600,000 (the “Senior
      Bridge Notes”)
      from,
      the Company (the “Senior
      Bridge Debt”);

     

    WHEREAS,
      the Company, ASOC and AIP (“Sellers”)
      and
      ASOC Acquisition Corp., an affiliate of the Purchasers (“Buyer”),
      entered into the Asset Purchase Agreement dated as of the date hereof (as it
      may
      be amended from time to time, the “Asset
      Purchase Agreement”),
      pursuant to which the Buyer has agreed to purchase substantially all of the
      assets of Sellers’ device relationship management software and applications
      business subject to the terms and conditions set forth in the Asset Purchase
      Agreement; and

     

    WHEREAS,
      in connection with the execution of the Asset Purchase Agreement, the Purchasers
      have agreed to make senior subordinated secured loans of up to an aggregate
      principal amount of $900,000 to the Company and the Guarantors, upon the terms
      and subject to the conditions set forth herein;

     

    NOW,
      THEREFORE, in consideration of the foregoing premises and the mutual covenants
      hereinafter set forth, and for other good and valuable consideration, the
      receipt and sufficiency of which is hereby acknowledged, the parties hereto,
      intending to be legally bound, do hereby agree as follows:

     

    1.    The
      Notes and the Guaranty.
      

     

    (a)    The
      Company has authorized the issuance and sale, in accordance with the terms
      hereof, of the Company’s 7% Senior Subordinated Secured Bridge Notes in the
      original aggregate principal amount of up to $900,000 (each individually, a
      “Note”
      and
      collectively, the “Notes”).
      Each
      Note will be substantially in the form set forth in Exhibit A
      hereto.

     

    (b)    The
      Company’s obligations under the Notes shall be guarantied by the Guarantors. The
      Guarantors shall execute and deliver to the Purchasers the Amended and Restated
      Subsidiary Guaranty (the “Guaranty”)
      in
      substantially the form set forth in Exhibit B
      hereto.

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

    2.    Purchase
      and Sale of Notes.
      At the
      Closing (as defined below), the Company shall issue and sell to the Purchasers,
      and, subject to and in reliance upon the representations, warranties, terms
      and
      conditions contained herein, each Purchaser, severally and not jointly, shall
      purchase from the Company, a Note in up to the aggregate principal amount set
      forth opposite such Purchaser’s name on Schedule 1
      hereto
      under the heading “Maximum
      Principal Amount.”
      Subject to the terms and conditions hereof, the Maximum Principal Amount for
      each Purchaser shall be payable in separate installments by each Purchaser
      in
      the amounts set forth opposite such Purchaser’s name on Schedule
      1
      hereto
      under the headings “First
      Installment Amount”
      and
“Subsequent
      Installment Amount,”
      respectively (collectively for each Purchaser, the “Installment
      Amounts”).
      The
      Installment Amounts shall be payable in accordance with the terms of Sections
      3
      and 4 hereof. 

     

    3.    Closing.
      

     

    (a)    The
      consummation of the purchase and sale of the Notes (the “Closing”)
      shall
      be held at 10:00 a.m. on September 1, 2005 (the “Closing
      Date”),
      or
      such other date and time as shall be mutually agreed upon. At the Closing,
      (i)
      the Company shall issue the Notes, dated as of the Closing Date, payable to
      the
      order of each Purchaser in the aggregate principal amount set forth opposite
      such Purchaser’s name on Schedule
      1
      hereto
      under the heading “Maximum
      Principal Amount,”
      and
      (ii) the Guarantors shall execute and deliver to the Purchasers the Guaranty.
      Promptly following the Closing (but in any event within five (5) days following
      the Closing), in exchange for the issuance of the Notes and the Guaranty, each
      Purchaser shall deliver to the Company, by way of wire transfer of immediately
      available United States funds, the amount set forth opposite such Purchaser’s
      name on Schedule
      1
      hereto
      under the heading “First
      Installment Amount”
      (the
“First
      Installment”).
      

     

    (b)    The
      obligations of the Purchasers to purchase the Notes and pay the First
      Installment Amount at the Closing are subject to the following
      conditions:

     

    (i)    The
      representations and warranties of the Company set forth in this Agreement,
      the
      Security Agreement (defined below) and in the Asset Purchase Agreement shall
      be
      true and correct on and as of the date hereof and on and as of the Closing
      Date
      with the same effect as though such representations and warranties had been
      made
      on and as of such date, and the President of the Company shall have certified
      to
      the Purchasers in writing to such effect;

     

    (ii)  The
      Company shall have performed and complied with all agreements contained in
      this
      Agreement and the other Bridge Loan Documents (defined below) required to be
      performed or complied with by it prior to or at the date of such Closing, and
      the President of the Company shall have certified to the Purchasers in writing
      to such effect;

     

    (iii)  The
      Company and the Guarantors shall have duly executed and delivered to the
      Purchasers an Amended and Restated Security Agreement substantially in the
      form
      attached as Exhibit C
      (the
“Security
      Agreement”);

     

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (iv)  The
      Guarantors shall have duly executed and delivered to the Purchasers the
      Guaranty;

     

    (v)  The
      Purchasers shall have received evidence in form and substance reasonably
      satisfactory to them that all filings, recordings and registrations, including,
      without limitation, the filing of duly executed financing statements on form
      UCC-1 and the requisite filings with the U.S. Patent & Trademark Office,
      necessary or desirable to perfect the liens created by the Security Agreement
      shall have been completed; 

     

    (vi)  The
      Company shall have obtained and delivered to the Purchasers, in form
      satisfactory to the Purchasers, all necessary consents of governmental agencies
      and third parties (including Laurus Master Fund, Ltd. (“Laurus”))
      to
      permit the Company to enter into and perform its obligations under this
      Agreement, the other Bridge Loan Documents and the Asset Purchase Agreement;
      

     

    (vii)  All
      corporate and other proceedings to be taken by the Company in connection with
      the transactions contemplated hereby and all documents incident thereto shall
      be
      satisfactory in form and substance to the Purchasers, and the Purchasers shall
      have received all such counterpart originals or certified or other copies of
      such documents as they reasonably may request; 

     

    (viii)  The
      Company and Laurus shall have duly executed and delivered to the Purchasers
      an
      Amended and Restated Subordination Agreement substantially in the form attached
      as Exhibit D
      (the
“Subordination
      Agreement”);
      and

     

    (ix)  The
      Company and the Guarantors shall have (A) duly executed and delivered
      to
      the Buyer the Asset Purchase Agreement and (B) delivered to the Buyer
      the
      Voting Agreements (as defined in the Asset Purchase Agreement) (the Asset
      Purchase Agreement and the Voting Agreement collectively, the “Acquisition
      Documents”)
      duly
      executed and delivered by the parties thereto other than the Buyer.

     

    For
      purposes of this Agreement, “Bridge
      Loan Documents”
      shall
      mean this Agreement, the Notes, the Senior Bridge Agreement, the Senior Bridge
      Notes, the Security Agreement, the Guaranty, the Subordination Agreement and
      that certain Grant of Security Interest in Patents and Trademarks, dated as
      of
      July 8, 2005 (the “P&T
      Security Agreement”),
      in
      each case as may be amended from time to time.

     

    4.    Subsequent
      Installments.
      

     

    (a)    Each
      of
      the Purchasers shall, subject to the terms and conditions hereof, make one
      or
      more additional advances to the Company in the aggregate amount up to (and
      not
      to exceed) the amount set forth opposite such Purchaser’s name on Schedule
      1
      hereto
      under the heading “Subsequent
      Installment Amount,”
      in one
      or more fundings from time to time from the Closing Date through the business
      day immediately preceding the Maturity Date (as defined below) (each such
      advance, a “Subsequent
      Installment”
      and,
      collectively, the “Subsequent
      Installments”).
      

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (b)    If
      the
      Company desires the Purchasers to make a Subsequent Installment, it shall
      deliver a written request to the Purchasers, which request shall specify the
      amount of such Subsequent Installment (which shall be in minimum increments
      of
      no less than $100,000), the intended use of such Subsequent Installment funds
      and shall certify that the none of the events specified in clauses (i) through
      (iv) in Section 4(c) below shall have occurred (the “Funding
      Request Notice”);
      provided,
      however,
      that in
      no
      event shall the Company make a request for a Subsequent Installment sooner
      than
      fifteen (15) days following the funding of the most recent First Installment
      or
      any Subsequent Installment, as the case may be. 

     

    (c)    No
      Purchaser shall be obligated to fund any Subsequent Installment if any of the
      following shall have occurred: (i) any representation or warranty by the Company
      contained in the Bridge Loan Documents or in the Acquisition Documents shall
      be
      untrue or incorrect in any way on the date of such Subsequent Installment;
      (ii)
      the Company has not performed or has otherwise breached the covenants set forth
      in the Acquisition Documents required to be performed on or before the date
      of
      such Subsequent Installment; (iii) any breach or default (including an Event
      of
      Default (defined below)) shall have occurred and be continuing under this
      Agreement or any of the Bridge Loan Documents, or (iv) the Company shall
      have received any proposal or expression of interest relating to an Acquisition
      Proposal (as defined in the Asset Purchase Agreement) which Acquisition Proposal
      has not been rejected by the Company within five (5) business days of receipt
      (or prior to delivery of the Funding Request Notice (if earlier)). 

     

    (d)    Subject
      to the satisfaction of the conditions contained in this Section 4, the funding
      of any Subsequent Installment shall occur within five business days after the
      receipt of the applicable Funding Request Notice by delivery by Purchasers
      to
      the Company via wire transfer of immediately available United States funds,
      the
      amount listed in the Funding Request Notice delivered to such Purchaser. All
      Installment Amounts and all payments of principal and interest under each Note
      (or any portion, installment or drawdown thereon) shall be recorded by the
      applicable Purchaser and endorsed on the grid which is part of such Purchaser’s
      Note. The entries on the grid which is part of such Note shall be prima
      facie
      evidence
      of amounts outstanding thereunder. The failure to make any such endorsement
      or
      any error in any such endorsement shall not affect the obligations of the
      Company or the Guarantors in respect of the First Installment or any Subsequent
      Installment. In no event shall the aggregate amount of all Subsequent
      Installments advanced by any Purchaser exceed the amount set forth opposite
      such
      Purchaser’s name on Schedule
      1
      hereto
      under the heading “Subsequent
      Installment Amount.”
      On or
      before the date of any Subsequent Installment, the Company shall deliver to
      the
      Purchasers such documents as may be requested by them. 

     

    5.    Terms
      of the Notes.
      

     

    (a)    Maturity.
      The
      aggregate principal amount of the Notes, together with all accrued interest
      thereon, shall be due and payable in full (without notice, demand or
      presentment) on the earliest to occur of the following (the earliest of such
      events, the “Maturity
      Date”):
      (i)
      the date on which the Asset Purchase Agreement shall have been terminated (the
      payment in full of the Notes shall be a condition precedent to such termination
      of the Asset Purchase Agreement); (ii) the date on which the Company or any
      of
      its subsidiaries or affiliates enters into a letter of intent, written
      understanding or definitive agreement relating to an Acquisition Proposal or
      the
      Company otherwise takes any action adverse to the transactions contemplated
      under the Asset Purchase Agreement; (iii) the date on which the Asset
      Sale
      (as defined in the Asset Purchase Agreement) is consummated; (iv) the
      occurrence of an Event of Default (as defined below) and (v) December 15,
      2005.

     

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    (b)    Interest.
      The
      aggregate principal amount of the Notes, from time to time outstanding, shall
      bear interest at a rate per annum equal to seven percent (7%). All accrued
      interest on the Notes shall be due and payable on the Maturity Date. All
      interest shall be computed for the actual number of days elapsed on the basis
      of
      a 360-day year and shall compound annually. From and after the occurrence of
      an
      Event of Default, the unpaid principal balance of the Notes and, to the extent
      permitted by law, the overdue interest thereon, shall bear interest at a rate
      per annum equal to ten percent (10%). 

     

    (c)    Payment;
      Usury.
      

     

    (i)    All
      payments by the Company under this Agreement shall be made in United States
      dollars without set-off or counterclaim and be free and clear and without any
      deduction or withholding for any taxes or fees of any nature whatever, unless
      the obligation to make such deduction or withholding is imposed by law. The
      Company, to the extent permitted by applicable law, waives presentment for
      payment, protest and demand, and notice of protest, demand and/or dishonor
      and
      nonpayment of the Notes, notice of any Event of Default, and all other notices
      or demands otherwise required by law that the Company may lawfully waive. If
      any
      day on which a payment is due pursuant to the terms of this Note is not a day
      on
      which banks in the Commonwealth of Massachusetts are generally open (a
“Business
      Day”),
      such
      payment shall be due on the next Business Day following, and such extension
      of
      time shall in such case be included in the computation of payment of interest
      due.

     

    (ii)  For
      so
      long as any of the Notes remain outstanding, the Company covenants (to the
      extent that it may lawfully do so) that it will not at any time insist upon,
      plead, or in any manner whatsoever claim or take the benefit or advantage of
      any
      stay, extension or usury law wherever enacted, now or at any time hereafter
      in
      force, which may affect the covenants or the performance of this Agreement;
      and
      the Company (to the extent that it may lawfully do so) hereby expressly waives
      all benefit or advantage of any such law and covenants that it will not, by
      resort to any such law, hinder, delay or impede the execution of any power
      herein granted to the Purchasers, but will suffer and permit the execution
      of
      every such power as though no such law has been enacted. 

     

    (iii)  Notwithstanding
      anything herein or in the Notes which may be to the contrary, in no event,
      contingency, or circumstances whatsoever shall the interest or any amount deemed
      to be interest payable by the Company hereunder with respect to the Notes exceed
      the maximum amount permitted by applicable law and, to the extent that any
      payments in excess of such permitted amount are finally determined to have
      been
      received by the Purchasers, such excess shall be considered payments in respect
      of the principal of the Notes and, if the principal of the Notes has been paid
      in full, shall be refunded to the Company. 

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    (d)    Security.
      The
      Notes shall be secured by and entitled to the benefits of the Security Agreement
      and the P&T Security Agreement.

     

    6.    Use
      of
      Proceeds.
      The
      Company shall use, and shall cause it subsidiaries (including the Guarantors)
      to
      use, the proceeds from the sale of the Notes first to pay the accounts payable,
      operating expenses and other liabilities directly attributable to the operation
      of the Business (as defined in the Asset Purchase Agreement) and thereafter
      to
      pay such other expenses and liabilities of the Company and the Guarantors
      incurred or as may be incurred in the ordinary course of business; provided,
      that
      the Company and the Guarantors shall, and shall cause their respective
      subsidiaries to, use a portion of the proceeds to retain the services of
      employees and consultants involved in the Business to assure that the Business
      has sufficient personnel to continue operating in the ordinary course consistent
      with historical practice. If requested, the Company shall promptly provide
      the
      Purchasers with an accounting detailing the use of proceeds from the Senior
      Bridge Notes and the Notes. 

     

    7.    Priority.
      The
      Notes shall be subordinate only to the Senior Bridge Debt and shall be
pari
      passu
      with the
      Laurus Debt (defined below) pursuant to the Subordination Agreement. The Notes
      are senior in all other respects (including the right of payment) to all other
      indebtedness of the Company and the Guarantors, now existing or hereafter
      incurred. All other indebtedness for borrowed money of the Company or the
      Guarantors, now existing or hereafter incurred, shall be unsecured (other than
      the Senior Bridge Debt and the Laurus Debt) and shall be subordinated to the
      Notes.

     

    8.    No
      Prepayment.
      The
      Notes may not be prepaid by the Company. 

     

    9.    Representations
      and Warranties of the Company.
      The
      Company hereby represents and warrants to the Purchasers that as of the Closing
      Date and the date of each Subsequent Installment (a “Subsequent
      Installment Date”):

     

    (a)    The
      Company is a corporation duly organized, validly existing and in good standing
      under the laws of the State of Delaware. Each Guarantor is a corporation duly
      organized, validly existing and in good standing under the laws of the state
      of
      its incorporation. Each of the Company and the Guarantors is duly licensed
      or
      qualified to transact business as a foreign corporation and is in good standing
      in each jurisdiction in which the nature of the business transacted by it or
      the
      character of the properties owned or leased by it requires such licensing or
      qualification.

     

    (b)    The
      Bridge Loan Documents have been duly authorized, executed and delivered by
      each
      of the Company and the Guarantors (to the extent a party thereto) and constitute
      the legal, valid and binding obligations of the Company and the Guarantors
      (to
      the extent a party thereto), enforceable in accordance with their respective
      terms. 

     

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    (c)    Neither
      the execution and delivery of the Bridge Loan Documents nor the performance
      thereof has constituted or resulted in, nor will constitute or result in, a
      default or violation in any respect of any law or regulation applicable to
      the
      Company or the Guarantors or any term or provision of the organizational
      documents (including charter and by-laws) of the Company or the Guarantors,
      or
      any agreement or instrument by which either the Company or the Guarantors is
      bound or to which their properties or assets are subject.

     

    (d)    No
      authorization, consent, approval, license, exemption of, or filing or
      registration with, any court or governmental department, commission, board,
      bureau, agency or instrumentality, is or will be necessary for, or in connection
      with, the offer, issuance, sale, execution or delivery by the Company or the
      Guarantors of, or for the performance by the Company and the Guarantors of
      their
      obligations under, the Bridge Loan Documents.

     

    (e)    There
      is
      no litigation or governmental proceeding or investigation pending or, to the
      knowledge of the Company, threatened against the Company or the Guarantors
      or
      affecting any of their properties or assets, nor has there occurred any event
      or
      does there exist any condition on the basis of which any litigation, proceeding
      or investigation might properly be instituted, that would prevent, restrict
      or
      impair the transactions contemplated by the Bridge Loan Documents or the
      performance by the Company and the Guarantors of their obligations under the
      Bridge Loan Documents. 

     

    (f)    No
      person
      has or will have, as a result of the transactions contemplated by this Bridge
      Loan Documents, any right, interest or valid claim against or upon the Company
      for any commission, fee or other compensation as a finder or broker because
      of
      any act or omission by the Company or any agent of the Company.

     

    (g)    Other
      than indebtedness for borrowed money of the Company payable to Laurus pursuant
      to that certain Securities Purchase Agreement, dated as of October 4, 2004,
      between the Company and Laurus (the “Laurus
      Debt”)
      and
      the Senior Bridge Debt, there is no other indebtedness for borrowed money of
      the
      Company or the Guarantors.

     

    10.    Covenants
      of the Company.
      Each of
      the Company and the Guarantors hereby covenants and agrees that, as long as
      any
      of the Notes are outstanding, it will not, and will cause each of its direct
      and
      indirect subsidiaries (if any) not to: 

     

    (a) 
(i) Incur
      any additional
      indebtedness or (ii) repay any outstanding indebtedness for borrowed money
      other
      than cash payments on the Senior Bridge Debt, pro rata payment on the Laurus
      Debt in accordance with Section 5 of the Subordination Agreement or payments
      on
      the Laurus Debt in the form of equity permitted under Section 3 of the
      Subordination Agreement;

     

    (b)    Create,
      incur, assume or suffer to exist, or permit any subsidiary to create, incur,
      assume or suffer to exist, any mortgage, deed of trust, pledge, lien, security
      interest or other charge or encumbrance (including the lien or retained security
      title of a conditional vendor) of any nature, upon or with respect to any of
      its
      properties, now owned or hereinafter acquired, or assign or otherwise convey
      any
      right to receive income, except that the foregoing restrictions shall not apply
      to liens, security interests or other charges or encumbrances (i) granted to
      the
      Purchasers pursuant to the Notes, (ii) granted in connection with the incurrence
      of the Senior Bridge Debt or the Laurus Debt, (iii) for taxes, assessments
      or
      governmental charges or levies on property of the Company or any subsidiary
      if
      the same shall not at the time be delinquent or thereafter can be paid without
      penalty, or are being contested in good faith and by appropriate proceedings
      or
      (iv) imposed by law, such as carriers’, warehousemen’s and mechanics’ liens and
      other similar liens arising in the ordinary course of business;

     

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    (c)    Merge
      or
      consolidate with, or sell, assign, lease or otherwise dispose of or voluntarily
      part with the control of (whether in one transaction or in a series of
      transactions) any portion of its assets associated with the Business (whether
      now owned or hereinafter acquired) or sell, assign or otherwise dispose of
      (whether in one transaction or in a series of transactions) any of its accounts
      receivable associated with the Business (whether now in existence or hereinafter
      created), to, any person, or permit any subsidiary to do any of the foregoing
      (other than pursuant to the Asset Purchase Agreement); 

     

    (d)    Declare
      or pay any dividends, purchase, redeem, retire, or otherwise acquire for value
      any of its capital stock (or rights, options or warrants to purchase such
      shares) now or hereafter outstanding, return any capital to its stockholders
      as
      such, or make any distribution of assets to its stockholders as such, or permit
      any subsidiary to do any of the foregoing; 

     

    (e)    Enter
      into any transaction with any holder of 5% or more of any class of capital
      stock
      of the Company, or any member of their families or any corporation or other
      entity in which any one or more of such stockholders or members of their
      immediate families directly or indirectly holds five percent (5%) or more of
      any
      class of capital stock except in the ordinary course of business and on terms
      not less favorable to the Company or the subsidiary than it would obtain in
      a
      transaction between unrelated parties; or

     

    (f)    Amend
      or
      modify any of the terms of any of the agreements or instruments relating to
      any
      indebtedness for money borrowed, except the Senior Bridge Debt; provided,
      however,
      that
      the terms of the agreements and instruments relating to the Laurus Debt may
      be
      amended and modified solely in accordance with Section 6(c) of the Subordination
      Agreement.

     

    11.    Event
      of Default.
      If,
      while any part of the principal of or interest on the Notes remains unpaid,
      any
      one of the following “Events
      of Default”
      shall
      occur:

     

    (a)    the
      failure by the Company to pay the principal of or interest and expenses on
      the
      Notes when such payment is due;

     

    (b)    the
      Company’s breach of its obligations under any of the Bridge Loan Documents or
      the Acquisition Documents; 

     

    (c)    the
      Company shall (i) have a receiver, trustee or liquidator appointed for it or
      for
      all or a substantial part of its assets; (ii) from this date forward, admit
      in
      writing to its inability to pay its debts as they mature; (iii) make a general
      assignment for the benefit of creditors; (iv) be adjudicated bankrupt or
      insolvent; (v) file a voluntary petition in bankruptcy or a petition or an
      answer seeking reorganization or an arrangement with creditors to take advantage
      of any insolvency law; (vi) file any answer admitting the material allegations
      of a petition filed against it in any bankruptcy, reorganization or insolvency
      proceeding or fail to dismiss such petition within sixty (60) days after the
      filing thereof; or (vii) take any action for the purpose of effecting any of
      the
      foregoing;

     

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    (d)    a
      payment
      default by the Company with respect to indebtedness that results in the
      acceleration of such indebtedness; 

     

    (e)    any
      representation or warranty made by the Company in any of the Bridge Loan
      Documents or the Acquisition Documents or in any certificate, instrument or
      written statement contemplated by or made or delivered pursuant to or in
      connection with the Bridge Loan Documents or the Acquisition Documents, shall
      prove to have been incorrect when made in any material respect;

     

    (f)    except
      as
      set forth in Section 11(a), the failure by the Company to observe and perform
      any material covenant, condition and agreement under any of the Bridge Loan
      Documents or the Acquisition Documents which failure is not cured within fifteen
      (15) days after written notice from any Purchaser or discovery by the Company;
      or 

     

    (g)    an
      order,
      judgment or decree shall be entered by any court of competent jurisdiction,
      approving a petition seeking reorganization or liquidation of the Company,
      or
      appointing a receiver, trustee or liquidator of the Company of all or a
      substantial part of its assets, which such order, judgment or decree has not
      been effectively stayed within fifteen (15) days after entry; 

     

    then
      and
      in every such event, any Purchaser may, without notice to the Company, declare
      the Notes to be forthwith due and payable, whereupon the Notes shall forthwith
      become due and payable without presentment, demand, protest or further notice
      of
      any kind, all of which are expressly waived by the Company; provided,
      however,
      that
      upon the happening of any event under subsections (c) or (g) of this Section
      11,
      then the Notes shall, without the taking of any action by the Purchasers,
      immediately become due and payable. 

     

    12.    Amendments,
      Waivers, Etc.
      Any
      provision in this Agreement and the Notes to the contrary notwithstanding,
      changes in or additions to this Agreement or the Notes may be made, and
      compliance with any covenant or provision herein or therein set forth may be
      omitted or waived, if the Company shall obtain consent thereto in writing from
      the holder or holders of at least a majority in principal amount of all Notes
      then outstanding.

     

    13.    Choice
      of Law.
      This
      Agreement shall be governed by, and construed in accordance with, the laws
      of
      the Commonwealth of Massachusetts, without giving effect to the principles
      of
      conflicts of law thereof.

     

    14.    Expenses.
      Any
      expense incurred by the Purchasers (including, without limitation, reasonable
      attorneys’ fees and disbursements) in connection with the exercise of any right
      or remedy upon the occurrence of an Event of Default, or the enforcement of
      any
      rights under any of the Bridge Loan Documents, including costs of collection
      and
      reasonable attorneys’ fees and expenses, shall be paid by the Company within
      five days of receiving written notice thereof from a Purchaser. 

     

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    15.    Notices.
      All
      notices, requests, demands and other communications provided for hereunder
      shall
      be in writing (including telecopy communication) and telecopied or delivered:
      

     

    If
      to a
      Purchaser, at the address set forth in the signature pages hereto or at such
      other address as to which such Purchaser may inform the other parties in writing
      in compliance with the terms of this Section 15, with a copy to Goodwin
      Procter LLP, Exchange Place, 53 State Street, Boston, MA 02109, Attn: Mark
      H.
      Burnett, Fax. No.: (617) 523-1231.

    

    If
      to the
      Company or the Guarantors, at 21 Oxford Road, Mansfield, Massachusetts 02048,
      Fax No. (508) 337-9201 or at such other address as shall be designated by the
      Company in a written notice to the other parties complying as to delivery with
      the terms of this Section 15, with a copy to Arent Fox PLLC, 1675 Broadway,
      New York, NY 10019-5820, Attn: Steven D. Dreyer, Fax No. (212)
      484-3990.

    

    All
      such
      notices, requests, demands and other communications shall be in writing and
      shall be deemed to have been given (i) on the date of delivery, if personally
      delivered or telecopied to the party to whom notice is to be given, (ii) upon
      confirmed receipt after being deposited with a nationally recognized overnight
      delivery service for next business day delivery or (iii) on the third Business
      Day after mailing, if mailed to the party to whom notice is to be given, by
      certified mail, return receipt requested, postage prepaid, and addressed to
      the
      addressee at the address of the addressee set forth herein, or to the most
      recent address, specified by written notice, given to the sender pursuant to
      this paragraph.

     

    16.    Waiver
      of Jury Trial.
      THE
      COMPANY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION
      OR
      CLAIM ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS
      OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.
      EXCEPT AS PROHIBITED BY LAW, THE COMPANY HEREBY WAIVES ANY RIGHT WHICH IT MAY
      HAVE TO CLAIM OR RECOVER IN ANY LITIGATION REFERRED TO IN THE PRECEDING SENTENCE
      ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER
      THAN, OR IN ADDITION TO, ACTUAL DAMAGES. THE COMPANY (A) CERTIFIES THAT NO
      REPRESENTATIVE, AGENT OR ATTORNEY OF THE PURCHASERS HAS REPRESENTED, EXPRESSLY
      OR OTHERWISE, THAT THE PURCHASERS WOULD NOT, IN THE EVENT OF LITIGATION, SEEK
      TO
      ENFORCE THE FOREGOING WAIVERS AND (B) ACKNOWLEDGES THAT THE PURCHASERS HAVE
      BEEN
      INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE WAIVERS AND
      CERTIFICATIONS CONTAINED HEREIN.

     

    17.    Prior
      Agreements; Survivability.
      This
      Agreement, together with the other Bridge Loan Documents and the Acquisition
      Documents, constitute the entire agreement between the parties and supercedes
      any other prior understandings or agreements concerning the subject matter
      hereof. All representations and warranties made in this Agreement and the Bridge
      Loan Documents or any other instrument or document delivered in connection
      herewith or therewith, shall survive the execution and delivery hereof or
      thereof.

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    18.    Successors
      and Assigns.
      This
      Agreement shall be binding upon and inure to the benefit of the parties and
      their respective successors and permitted assigns. This Agreement, and the
      rights and obligations of each Purchaser hereunder, may be assigned by such
      Purchaser to any person or entity to which the Notes are transferred by such
      Purchaser, and such transferee shall be deemed a “Purchaser” for purposes of
      this Agreement; provided that the transferee provides written notice of such
      assignment to the Company. The Company may not assign its rights under this
      Agreement.

     

    19.    Counterparts.
      This
      Agreement may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, with the same effect as if all parties had
      signed the same document. All such counterparts shall be deemed an original,
      shall be construed together and shall constitute one and the same instrument.
      This Agreement shall become effective when each party hereto shall have received
      a counterpart, or facsimile of a counterpart, of this Agreement, signed by
      the
      other parties hereto.

     

    20.    No
      Waiver; Cumulative Remedies.
      No
      failure or delay on the part of any of the Purchasers, or any other holder
      of
      the Notes in exercising any right, power or remedy hereunder shall operate
      as a
      waiver thereof; nor shall any single or partial exercise of any such right,
      power or remedy preclude any other or further exercise thereof or the exercise
      of any other right, power or remedy hereunder. The remedies herein provided
      are
      cumulative and not exclusive of any remedies provided by law.

     

    21.    Severability.
      The
      invalidity or unenforceability of any provision hereof shall in no way affect
      the validity or enforceability of any other provision. 

     

    22.    Further
      Assurances.
      From
      and after the date of this Agreement, upon the request of a Purchaser, the
      Company and the Guarantors each shall execute and deliver such instruments,
      documents and other writings as may be necessary or desirable to confirm and
      carry out and to effectuate fully the intent and purposes of this Agreement
      and
      the other Bridge Loan Documents.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

    
 

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the undersigned have executed this Agreement as of the date
      first above written.

     

    COMPANY:

     

    AXEDA
      SYSTEMS INC.

     

    By:  
      /s/
      Robert M. Russell Jr.

      
        

      

    

    Name:
      Robert M. Russell Jr.

    Title:
      Chief Executive Officer

     

     

    GUARANTORS:

     

    AXEDA
      SYSTEMS OPERATING COMPANY, INC.

     

    By:  
      /s/
      Karen
      F. Kupferberg

      
        

      

    

    Name:
      Karen F. Kupferberg

    Title:
      Chief Financial Officer

     

     

    AXEDA
      IP,
      INC.

     

    By:  
      /s/
      Lynn
      Magnani

      
        

      

    

    Name:
      Lynn Magnani

    Title:
      Secretary

    

    

    
 

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

     

    PURCHASERS:

     

    JMI
      EQUITY
      FUND V, L.P.

    By:
      JMI
      Associates V, L.L.C.

    its
      General Partner

     

    By:  
      /s/
      Bradford D. Woloson

      
        

      

    

    Name:
      Bradford D. Woloson

    Title:
      Managing Member

     

    Address:      
      1119
      St.
      Paul Street

    Baltimore,
      MD 21202

     

    JMI
      EQUITY
      FUND V (AI), L.P.

    By:
      JMI
      Associates V, L.L.C.

    its
      General Partner

     

    By:  
      /s/
      Bradford D. Woloson

      
        

      

    

    Name:
      Bradford D. Woloson

    Title:
      Managing Member

     

    Address:      
      1119
      St.
      Paul Street

    Baltimore,
      MD 21202

     

     

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    Schedule
      1

     

    
      	
               

              Name
                of Purchaser

            	 	
              Maximum
                Principal Amount

            	 	
              First
                Installment Amount

            	 	
              Subsequent
                Installment
                Amount

            	 
	
              JMI
                Equity Fund
                V,
                L.P 

            	 	
              $

            	
              850,726.50

            	 	
              $

            	
              850,726.50

            	 	 	
              --

            	 
	
              JMI
                Equity Fund
                V
                (AI), L.P 

            	 	 	
              49,273.50

            	 	 	
              49,273.50

            	 	 	
              --

            	 
	
              Total:

            	 	
              $

            	
              900,000.00

            	 	
              $

            	
              900,000.00

            	 	 	
              --

            	 

    

    

    

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    EXHIBIT
      A

    

    THIS
      NOTE
      HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR APPLICABLE STATE
      SECURITIES LAWS. THIS NOTE MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
      HYPOTHECATED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THIS
      NOTE UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR AN OPINION OF
      COUNSEL REASONABLY SATISFACTORY TO COMPANY THAT SUCH REGISTRATION IS NOT
      REQUIRED.

    

    7%
      SENIOR
      SUBORDINATED SECURED BRIDGE NOTE

    

    [$______]         September
      1, 2005

    

    FOR
      VALUE
      RECEIVED, Axeda Systems, Inc., a Delaware corporation, with its principal
      executive offices located at 21 Oxford Road, Mansfield, Massachusetts 02048
      (“Company”),
      hereby promises to pay to the order of [___________] (“Holder”),
      at
      [______________] or at such other place as may be designated from time to time
      in writing by Holder, up to a maximum principal amount of _______ Dollars
      ($____) or, if less, the aggregate unpaid principal amount of the loans advanced
      by the Holder pursuant to the terms of the Senior Subordinated Secured Bridge
      Note Purchase Agreement, dated as of September 1, 2005, among the Company,
      Axeda Systems Operating Company, Inc., a Massachusetts corporation and an
      indirect wholly owned subsidiary of the Company and Axeda IP, Inc., a Nevada
      corporation and an indirect wholly owned subsidiary of the Company
      (collectively, the “Guarantors”),
      and
      the purchasers named therein (as may be amended, restated or modified from
      time
      to time, the “Agreement”),
      on
      the dates and terms set forth in the Agreement, together with interest thereon
      on the dates and at the rates set forth in the Agreement. All payments received
      by Holder hereunder will be applied first to costs of collection, if any, then
      to interest and the balance to principal. All principal and interest outstanding
      on this Note shall be payable in lawful money of the United States of
      America.

    

    This
      7%
      Senior Subordinated Secured Bridge Note is one of a duly authorized series
      of 7%
      Senior Subordinated Secured Bridge Notes (each, a “Note,”
      and
      collectively, the “Notes”)
      with
      an original aggregate principal amount of up to $900,000 issued pursuant to,
      and
      entitled to the benefits of, the Agreement, which Agreement sets forth certain
      terms and conditions of, and certain rights, limitations, duties and obligations
      relating to, the Notes. In the event any term of this Note conflicts with the
      terms of the Agreement, the terms of the Agreement shall govern. Capitalized
      terms used herein but not otherwise defined herein have the meanings given
      to
      them in the Agreement. This Note is entitled to the benefits of the Guaranty,
      the Security Agreement and the Subordination Agreement.

    

    The
      Notes
      will be senior in all respects (including the right of payment) to all other
      indebtedness of the Company, now existing or hereafter incurred; provided,
      however,
      that
      the Notes will be subordinate to the Senior Bridge Debt and pari
      passu
      with the
      Laurus Debt. 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    The
      Holder is authorized to endorse on the schedules annexed hereto and made a
      part
      hereof the date and amount of the First Installment and each Subsequent
      Installment made pursuant to the Agreement and the date and amount of each
      payment or prepayment (if permitted) of principal or interest thereon. Each
      such
      endorsement shall constitute prima
      facie
      evidence
      of the accuracy of the information endorsed. The failure to make any such
      endorsement or any error in any such endorsement shall not affect the
      obligations of the Company in respect of the First Installment or any Subsequent
      Installment.

    

    If
      this
      Note is not paid in accordance with its terms, Company shall pay to Holder,
      in
      addition to principal and accrued interest thereon, all costs of collection
      of
      the principal and accrued interest, including, but not limited to, reasonable
      attorneys’ fees, court costs and other costs for the enforcement of payment of
      this Note.

    

    This
      Note
      is delivered in and shall be enforceable in accordance with the laws of the
      Commonwealth of Massachusetts, without giving effect to the principles of
      conflicts of laws thereof, and shall be construed in accordance therewith,
      and
      shall have the effect of a sealed instrument.

    

    The
      Company hereby expressly waives presentment, demand, and protest, notice of
      demand, dishonor and nonpayment of this Note, and all other notices or demands
      of any kind in connection with the delivery, acceptance, performance, default
      or
      enforcement hereof, and hereby consents to any delays, extensions of time,
      renewals, waivers or modifications that may be granted or consented to by the
      holder hereof with respect to the time of payment or any other provision hereof
      or of the Agreement.

    

    In
      the
      event any one or more of the provisions of this Note shall for any reason be
      held to be invalid, illegal or unenforceable, in whole or in part or in any
      respect, or in the event that any one or more of the provisions of this Note
      operate or would prospectively operate to invalidate this Note, then and in
      any
      such event, such provision(s) only shall be deemed null and void and shall
      not
      affect any other provision of this Note and the remaining provisions of this
      Note shall remain operative and in full force and effect and in no way shall
      be
      affected, prejudiced, or disturbed thereby. This Note is assignable pursuant
      to
      the terms of the Agreement.

    

    IN
      WITNESS WHEREOF, Company has caused this Note to be executed and delivered
      as of
      the date first above written.

    

    AXEDA
      SYSTEMS, INC.

     

     

    By:

      
        

      

    

    Name:

    Title:

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

 

    
      	
               

               

              Date

            	 	
               

              Installment

              Amount

            	 	
              Amount
                of

              Principal

              Paid

            	 	
              Amount
                of

              Interest

              Paid

            	 	
              Outstanding

              Principal

              Balance

            	 	
               

              Notation

              Made
                By

            	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

    

    

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      B

    

     

    GUARANTY

    

    

     

     

     

    
 

    
      
         

      

      
         

        
          

        

      

      
         

        
        

      

    

    Exhibit
      C

    

     

    SECURITY
      AGREEMENT

    

    

     

     

    
 

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    Exhibit
      D

    

     

    SUBORDINATION
      AGREEMENT

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00090-of-00352.parquet"}]]