Document:

VOTING
      AGREEMENT

     

    This
      Voting Agreement (this “Agreement”) is made as of May 7, 2008, by and among GCA
      I Acquisition Corp., a Delaware corporation (“Parent”) and Robert A. Walker, a
      principal stockholder of Bixby Energy Systems, Inc., a Delaware corporation
      (the
“Company”)(the “Company Principal Stockholder”).

     

    WHEREAS,
      concurrently with the execution and delivery of this Agreement, Parent, Bixby
      Energy Acquisition Corp., a Delaware corporation and wholly-owned subsidiary
      of
      Parent (“Merger Sub”) and the Company are entering into an Agreement and Plan of
      Merger of even date herewith (the “Merger Agreement”), pursuant to which Merger
      Sub will be merged with and into the Company, and the Company shall be the
      surviving corporation following the merger (the “Merger”);

     

    WHEREAS,
      as of the date hereof, the Company Principal Stockholder is a Beneficial Owner
      (as defined below) of the Subject Shares (as defined
      below); and

     

    WHEREAS,
      in order to induce Parent to enter into the Merger Agreement, the Company
      Principal Stockholder has agreed to enter into this Agreement.

     

    NOW,
      THEREFORE, in consideration of the foregoing premises and of the covenants
      and
      agreements set forth herein and in the Merger Agreement, and intending to be
      legally bound hereby, the parties agree as follows:

     

    1. Definitions.

     

    (a) “Beneficially
      Own” or “Beneficial Owner”
      with
      respect to any securities means having “beneficial ownership” as determined
      pursuant to Rule 13d-3 under the Securities Exchange Act of 1934, as
      amended (the “Exchange Act”).

     

    (b) “Company
      Capital Stock”
      means
      shares of common stock, par value $0.001 per share, of the
      Company.

     

    (c) “Company
      Options and Other Rights”
      means
      options, warrants and other rights to acquire, directly or indirectly, shares
      of
      Company Capital Stock.

     

    (d) “Expiration
      Date”
      means
      the earlier to occur of (i) the Effective Time (as defined in the Merger
      Agreement) or (ii) the date on which the Merger Agreement is terminated
      pursuant to its terms.

     

    (e) “Subject
      Shares”
      means
      (i) all shares of Company Capital Stock Beneficially Owned by the Company
      Principal Stockholder as of the date of this Agreement and (ii) all
      additional shares of Company Capital Stock of which the Company Principal
      Stockholder acquires Beneficial Ownership during the period from the date of
      this Agreement through the Expiration Date.

     

    2. Voting.

     

    (a)  The
      Company Principal Stockholder hereby reresents that it is an “accredited
      investor” as such term is defined within Rule 501 of Regulation D promulgated
      under the Securities Act of 1933, as amended (the “Securities Act”);

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    (b)  The
      Company Principal Stockholder hereby agrees that, prior to the Expiration Date,
      at any meeting of the stockholders of the Company, however called, and in any
      written action by consent of stockholders of the Company, unless otherwise
      directed in writing by Parent, the Company Principal Stockholder shall cause
      to
      be counted as present thereat for purposes of establishing a quorum and, subject
      only to Parent’s compliance with applicable securities laws, shall vote, or
      cause to be voted, any and all Subject Shares Beneficially Owned by the
      Company Principal Stockholder as of the record date of such meeting or written
      consent:

     

    (i) for
      the
      execution and delivery by the Company of the Merger Agreement and the adoption
      and approval of the Merger Agreement and the terms thereof, in favor of each
      of
      the other actions contemplated by the Merger Agreement and in favor of any
      action in furtherance of any of the foregoing;

     

    (ii) against
      any action or agreement that would result in a breach of any representation,
      warranty, covenant or obligation of the Company in the Merger
      Agreement; and

     

    (iii) against
      the following actions (other than the Merger and the transactions contemplated
      by the Merger Agreement): (A) any extraordinary corporate transaction, such
      as a merger, consolidation or other business combination involving the Company
      or any subsidiary of the Company; (B) any sale, lease, sublease, license,
      sublicense or transfer of a material portion of the rights or other assets
      of
      the Company or any subsidiary of the Company; (C) any reorganization,
      recapitalization, dissolution or liquidation of the Company or any subsidiary
      of
      the Company; (D) any change in the individuals who serve as members of the
      board of directors of the Company; (E) any amendment to the Company’s
      certificate of incorporation or bylaws; (F) any material change in the
      capitalization of the Company or the Company’s corporate structure; and
      (G) any other action which is intended, or could reasonably be expected, to
      impede, interfere with, delay, postpone, discourage or adversely affect the
      Merger or any of the other transactions contemplated by the Merger Agreement
      or
      this Agreement.

     

    (c) No
      provision contained in this Agreement shall prohibit the Company Principal
      Stockholder from voting in his capacity as a director of the Company in any
      manner whatsoever.

     

    (d) Prior
      to
      the Expiration Date, the Company Principal Stockholder shall not enter into
      any
      other agreement or understanding with any Person requiring him to vote in his
      capacity as a stockholder or give instructions in any manner inconsistent with
      clause “(i),” clause “(ii)” or clause “(iii)” of this
      Section 2(a).

     

    (e) The
      Company Principal Stockholder hereby waives and agrees not to exercise any
      applicable “appraisal rights” under the Delaware General Corporation Law with
      respect to the Subject Shares in connection with the Merger and the Merger
      Agreement.

     

    3. Written
      Consent of Stockholders.  Upon
      the U.S. Securities and Exchange Commission’s declaration of the
      effectiveness of the Registration Statement on Form S-4 filed by Parent in
      connection with the Merger, if at all, the Company Principal Stockholder shall
      deliver to Parent a written consent in favor of the adoption of the Merger
      Agreement and the Merger.

     

    4. Representations
      and Warranties of Stockholder.  The
      Company Principal Stockholder represents and warrants to Parent as
      follows:

     

    (a) As
      of the
      date of this Agreement and at all times through the Expiration
      Date:

    

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (i) He
      is the
      Beneficial Owner (free and clear of any encumbrances or restrictions) of the
      outstanding shares of Company Capital Stock set forth under the heading “Shares
      of Company Capital Stock Beneficially Owned”, on the signature page
      hereof;

     

    (ii) He
      is the
      Beneficial Owner (free and clear of any encumbrances or restrictions) of the
      outstanding Company Options and Other Rights set forth under the heading
“Company Options and Other Rights Beneficially Owned” on the signature page
      hereof; and

     

    (iii) He
      does
      not directly or indirectly Beneficially Own any shares of Company Capital Stock
      or Company Options or Other Rights or other securities of the Company, other
      than the shares of Company Capital Stock and Company Options and Other Rights
      set forth on the signature page hereof.

     

    (b) The
      Company Principal Stockholder has the legal capacity, power and authority to
      enter into and perform all of its obligations under this Agreement. This
      Agreement has been duly executed and delivered by the Company Principal
      Stockholder, and upon its execution and delivery by Parent, will constitute
      a
      legal, valid and binding obligation of the Company Principal Stockholder,
      enforceable against him in accordance with its terms, except as enforceability
      may be limited by bankruptcy, insolvency, reorganization, moratorium or other
      similar laws affecting or relating to creditors rights generally, and the
      availability of injunctive relief and other equitable remedies.

     

    (c) The
      execution, delivery and performance by the Company Principal Stockholder of
      this
      Agreement will not (i) conflict with, require a consent, waiver or approval
      under, or result in a breach of or default under, any of the terms of any
      contract, commitment or other obligation (written or oral) to which such Company
      Principal Stockholder is a party or by which any of his assets may be
      bound.

     

    (d) No
      filing
      with, and no permit, authorization, consent or approval of, any state or federal
      public body or authority is necessary for the execution of this Agreement by
      the
      Company Principal Stockholder and the consummation by Company Principal
      Stockholder of the transactions contemplated hereby.

    

    5. Covenants
      of Stockholder.  The
      Company Principal Stockholder covenants and agrees for the benefit of Parent
      that, until the Expiration Date, he shall not:

     

    (a) sell,
      transfer, pledge, hypothecate, encumber, assign, tender or otherwise dispose
      of,
      or enter into any contract, option or other arrangement or understanding with
      respect to the sale, transfer, pledge, hypothecation, encumbrance, assignment,
      tender or other disposition of, (i) any Subject Shares or any interest
      therein, or (ii) any Company Options and Other Rights or any interest
      therein; provided,
      however,
      that
      Stockholder may convert, exercise or exchange Company Options and Other Rights
      into or for shares of Company Capital Stock in which event such shares of
      Capital Stock shall become and be deemed Subject Shares subject to all the
      terms
      and conditions of this Agreement;

     

    (b) acquire
      any shares of the stock of Parent except pursuant to existing Company Options
      and Other Rights or unless such shares shall become subject to the terms of
      this
      Agreement;

     

    (c) grant
      any
      powers of attorney or proxies or consents in respect of any of the Subject
      Shares, deposit any of such Subject Shares into a voting trust, or enter into
      a
      voting agreement with respect to any of such Subject Shares; or

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    (d) take
      any
      other action with respect to the Subject Shares that would in any way restrict,
      limit or interfere with the performance of Stockholder’s obligations hereunder
      or the transactions contemplated hereby and the Merger Agreement.

     

    6. Adjustments;
      Additional Shares.  In
      the event (a) of any stock dividend, stock split, merger, recapitalization,
      reclassification, combination, exchange of shares or the like of the capital
      stock of the Company on, of or affecting the Subject Shares, or (b) that
      Stockholder shall become the Beneficial Owner of any additional shares of
      Company Capital Stock or other securities entitling the holder thereof to vote
      or give consent with respect to the matters set forth in Section 2(a), then
      the terms of this Agreement shall apply to the shares of Company Capital Stock
      or other instruments or documents held by Stockholder immediately following
      the
      effectiveness of the events described in clause (a) or Stockholder becoming
      the Beneficial Owner thereof as described in clause (b), as though, in
      either case, they were Subject Shares hereunder. The foregoing shall apply
      (mutatis
      mutandis)
      to the
      Parent Shares and Section 3 of this Agreement.

     

    7. Amendments
      and Waivers.  Any
      provision of this Agreement may be amended or waived if, and only if, such
      amendment or waiver is in writing and is signed, in the case of an amendment,
      by
      each party to this Agreement, or in the case of a waiver, by the party against
      whom the waiver is to be effective. No failure or delay by any party in
      exercising any right or privilege hereunder shall operate as a waiver thereof,
      nor shall any single or partial exercise thereof preclude any other or further
      exercise thereof or the exercise of any other right, power or privilege. To
      the
      maximum extent permitted by law, (a) no waiver that may be given by a party
      shall be applicable except in the specific instance for which it was given
      and
      (b) no notice to or demand on one party shall be deemed to be a waiver of
      any obligation of such party or the right of the party giving such notice or
      demand to take further action without notice or demand.

     

    8. Assignment.  This
      Agreement may not be assigned by any party hereto without the prior written
      consent of the other parties. Subject to the foregoing, all of the terms and
      provisions of this Agreement shall inure to the benefit of and be binding upon
      the parties hereto and their respective executors, heirs, personal
      representatives, successors and assigns.

     

    9. Entire
      Agreement.  This
      Agreement and the documents, instruments and other agreements specifically
      referred to herein or delivered pursuant hereto, set forth the entire
      understanding of the parties with respect to the subject matter hereof. Any
      and
      all previous agreements and understandings between or among the parties
      regarding the subject matter hereof, whether written or oral, are superseded
      by
      this Agreement.

     

    10. Notices.  Any
      notice, request, demand, waiver, consent, approval or other communication which
      is required or permitted hereunder shall be in writing and shall be deemed
      given
      (a) on the date established by the sender as having been delivered
      personally; (b) on the date delivered by a private courier as established
      by the sender by evidence obtained from the courier; (c) on the date sent
      by facsimile, with confirmation of transmission, if sent during normal business
      hours of the recipient, if not, then on the next business day; or (d) on
      the fifth day after the date mailed, by certified or registered mail, return
      receipt requested, postage prepaid. Such communications, to be valid, must
      be
      addressed as follows:

     

    If
      to
      Parent, to:

     

    GCA
      I Acquisition Corp. 

    115
      East
      57th
      Street,
      Suite 1006

    New
      York,
      New York 10022

    Attn:
      Michael M. Membrado

     

    Facsimile:
      646-486-9771

    
      

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

    

     

    With
      a
      required copy to:

     

    M.M.
      Membrado, PLLC

    115
      East
      57th
      Street,
      Suite 1006

    New
      York,
      New York 10022

    Attn:
      Michael M. Membrado

    

    Facsimile:
      646-486-9771

     

    If
      to any
      of the Company Principal Stockholder:

     

    Robert
      A.
      Walker

    c/o Bixby
      Energy Systems, Inc.

    6893
      139th
      Lane NW

    Ramsey,
      MN 55303

    

    Facsimile:
      763-428-7903

     

    With
      a
      required copy to:

     

    Davisson
      & Associates, PA

    3649
      Brunswick Avenue North

    Minneapolis,
      MN 55422

    Attn:
      Peder Davisson, Esq.

    

    Facsimile:
      763-535-4090

     

    or
      to
      such other address or to the attention of such person or persons as the
      recipient party has specified by prior written notice to the sending party
      (or
      in the case of counsel, to such other readily ascertainable business address
      as
      such counsel may hereafter maintain). If more than one method for sending notice
      as set forth above is used, the earliest notice date established as set forth
      above shall control.

     

    11. 
      Captions.  
      All captions contained in this Agreement are for convenience of reference only,
      do not form a part of this Agreement and shall not affect in any way the meaning
      or interpretation of this Agreement.

     

    12. 
      Severability;
      Enforcement.  Any
      provision of this Agreement which is invalid or unenforceable in any
      jurisdiction shall be ineffective to the extent of such invalidity or
      unenforceability without invalidating or rendering unenforceable the remaining
      provisions hereof, and any such invalidity or unenforceability in any
      jurisdiction shall not invalidate or render unenforceable such provision in
      any
      other jurisdiction.

     

    13. 
      Specific
      Performance.  The
      Company Principal Stockholder acknowledges that the agreements contained in
      this
      Agreement are an integral part of the transactions contemplated by the Merger
      Agreement, and that, without these agreements, Parent would not enter into
      the
      Merger Agreement, and acknowledges that damages would be an inadequate remedy
      for any breach by the Company Principal Stockholder of the provisions of this
      Agreement. Accordingly, the Company Principal Stockholder agrees that his
      obligations hereunder shall be specifically enforceable and he shall not take
      any action to impede the other from seeking to enforce such right of specific
      performance.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    14. 
      Consent
      to Jurisdiction.  Each
      party irrevocably submits to the exclusive jurisdiction of (a) New York
      County, New York, and (b) the United States District Court for the Southern
      District of New York, for the purposes of any action, suit or proceeding arising
      out of this Agreement or any transaction contemplated hereby. Each party agrees
      to commence any such action, suit or proceeding either in the United States
      District Court for the Southern District of New York or if such action, suit
      or
      proceeding may not be brought in such court for jurisdictional reasons, in
      the
      Supreme Court sitting in New York County (including its Appellate Division).
      Each party further agrees that service of any process, summons, notice or
      document by U.S. registered mail to such party’s respective address set
      forth above shall be effective service of process for any action, suit or
      proceeding in New York with respect to any matters to which it has submitted
      to
      jurisdiction in this Section 14. Each party irrevocably and unconditionally
      waives any objection to the laying of venue of any action, suit or proceeding
      arising out of this Agreement or the transactions contemplated hereby in
      (i) the United States District Court for the Southern District of New York,
      or (ii) the Supreme Court sitting in New York County (including its
      Appellate Division), and hereby further irrevocably and unconditionally waives
      and agrees not to plead or claim in any such court that any such action, suit
      or
      proceeding brought in any such court has been brought in an inconvenient forum.
      EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION
      (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO
      THIS AGREEMENT OR THE ACTIONS OF SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION,
      PERFORMANCE AND ENFORCEMENT HEREOF.

     

    15. 
      Governing
      Law.  This
      Agreement shall be governed by and interpreted and enforced in accordance with
      the laws of the State of New York, without giving effect to any choice of law
      or
      conflict of laws rules or provisions (whether of the State of New York or any
      other jurisdiction) that would cause the application of the laws of any
      jurisdiction other than the State of New York, except to the extent that the
      voting of the Subject Shares is subject to the corporate law of the State of
      Delaware.

     

    IN
      WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto
      all
      as of the day and year first above written.

    

    GCA
      I
      ACQUISITION CORP.

    

      
        	
                By:
                  

              	 
	
                Name: 
                  Michael
                  M. Membrado

              
	
                Title:   
                  President
                  and Chief Executive Officer

              

      

    

    

    COMPANY
      PRINCIPAL STOCKHOLDER: 

    

      
        	
                 

              
	
                ROBERT
                  A. WALKER

              

      

    

    
    

     

    Number
      of
      shares of Company Common Stock:   1,800,002  
               

     

    Number
      of
      shares of Company Series _ Preferred Stock:    
 -0-               
      

    

    Number
      of
      Company Stock Options and/or Warrants:      
2,255,000      
      

     

    
      
        
        

      

      
        6Exhibit
      4.1

    

    PARAGON
      COMMERCIAL BANK

    3535
      Glenwood Avenue, Raleigh, North Carolina 27612

    

    Loan
      #3866 

    COMMERCIAL
      NOTE

    

      
        	
                Loan
                  Officer

              	
                JST

              	
                /s/
                  John S. Towles

              
	 	 	
                John
                  S. Towles, Senior Vice
                  President

              

      

    

                        

    
      	
              Date:     February
                20, 2008

            	
              Borrower:     Smart
                Online, Inc.

            
	 	 
	
              Loan
                Amount:     $2,470,000.00

            	
              x
                Revolving Line of
                Credit

            

    

     

    FOR
      VALUE
      RECEIVED, the undersigned, promise(s) to pay to PARAGON COMMERCIAL BANK
      (“Bank”), or order, the sum of Two
      Million Four Hundred Seventy Thousand and 00/100 Dollars
      ($2,470,000.00)
      or so
      much as shall have been disbursed from time to time and remains unpaid,
      including or together with interest at the rate and payable in the manner
      hereinafter stated. Principal and interest shall be payable at Bank at the
      address indicated above, or such other place as the holder of this Note may
      designate.

    
      
        

      

    

    INTEREST
      RATE

    All
      payments made on this Note will be applied first to accrued interest and then
      to
      principal. Interest will accrue on the unpaid principal balance at the rate
      set
      forth below until maturity and will accrue on any unpaid past due interest
      before maturity and on any unpaid balance after maturity as set forth on the
      reverse side of this Note. 

    Interest
      payable on this Note will be at the per annum rate of:

    

     x 
Wall
      Street Journal Prime minus one half percent variable.

    

    As
      used
      in this Note “Wall Street Journal Prime” shall mean the prime rate most recently
      published in the “Money Rates” section specified in the Eastern Edition of the
Wall
      Street Journal;
      provided that if more than one such “Prime Rate” is published, the higher of
      such rate shall be applicable. The term “One Year Treasury Bill” shall mean the
      annualized interest rate for treasury bills (one year), most recently reported
      by the Federal Reserve Board on a weekly-average basis, which yield is adjusted
      for a constant maturity. The term “Three Year Treasury Bill” shall mean the
      annualized interest rate for treasury notes (three year), most recently reported
      by the Federal Reserve Board on a weekly-average basis, which yield is adjusted
      for a constant maturity. The term “Five Year Treasury Bill” shall mean the
      annualized interest rate for treasury notes (five year), most recently reported
      by the Federal Reserve Board on a weekly-average basis, which yield is adjusted
      for a constant maturity. As used in this Note, the term “LIBOR (1 Month)” and/or
“LIBOR” shall mean the London Interbank Offered Rates for one month for U.S.
      Dollar deposits, as most recently published in the “Money Rates” section of the
Wall
      Street Journal
      on the
      last Tuesday of each month. If the Bank should at any time determine that it
      is
      not possible to determine LIBOR or that LIBOR is no longer available, then
      the
      Note shall continue to bear interest at the rate in effect during at the last
      rate reset until the LIBOR is available or determinable. The term “Libor (3
      Months)” shall mean the London interbank offered rates (“LIBOR”) for three
      months as most recently published in the “Money Rates” section of the
Wall
      Street Journal.

    

    Interest
      will be calculated on the basis of:  x Actual
      days/360 day year

    

    All
      rates
      except the “Fixed” rate will be subject to change without prior notice at the
      sole option of Bank and will be effective: 

    x
      As of the date the base rate (Prime or
      Treasury Bill) changes

    

    Effect
      of Variable Rate:
      A
      change in the interest rate will have the following effect on the payments:
      

    

    x
      The amount of each scheduled payment and
      the final payment will change.

     

    
      
        

      

    

    

    PRINCIPAL
      PAYMENT TERMS 

    Principal
      (and interest if indicated under Interest Payment Terms below) shall be payable
      as follows:

    

    x
      Payable in one single payment on
February
      19, 2009
      (herein
      referred to as “Maturity”).

    

    
      
        
INTEREST
        PAYMENT TERMS

    

    Interest
      shall be payable in arrears, as follows:

    

    x
      Payable monthly beginning March
      10, 2008
      and
      consecutively on the same calendar day of each such calendar period
      thereafter.

    

    
      
        

      

    

    ADVANCES

    o
      See Advance Addendum
      (Exhibit A) attached hereto and made a part hereof for an explanation of the
      line of credit advance terms and conditions.

    
      
        

      

    

    LATE
      CHARGE

    If
      any scheduled payment is in default 15 days or more (unless interest on this
      Note is payable in advance, in which case such period shall be 30 days or more),
      Obligors agree to pay a late charge equal to 4% of the amount of the payment
      that is in default, but not more than maximum amount allowed by applicable
      law.

    
      

      
        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

      

       

      
        
          

        

        PREPAYMENT

        x
          This Note may be prepaid in whole or in
          part any time without premium.

        

        For
          partial prepayments, the Bank may, in its sole discretion, apply the prepayment
          to principal and recalculate the installment payment amount so that equal
          payments of principal and interest will cause this Promissory Note to be
          paid in
          full with the same Maturity date (set forth above). If the Bank decides
          not to
          recalculate the installment payment amount, then such prepayment will be
          applied
          to the most remote installment then unpaid and shall not otherwise reduce
          the
          installment payments coming due prior thereto.

      

    

    
      
        
COLLATERAL

    

    x
      SECURED. This Note is secured by
      collateral described in the following security instruments:

    

    
      	
            	x	
              Letter
                of Credit dated February
                19, 2008
                securing Paragon Commercial Bank as beneficiary the sum of Two
                Million Five
                Hundred Thousand and 00/100 Dollars
                ($2,500,000.00)

            

    

    

    
      	
              1)

            	
              At
                maturity of this Note, or upon default, Bank is authorized and empowered
                to apply to the payment hereof, any and all money deposited in Bank
                in the
                name of or to the credit of each party, without advance notice, and
                is
                authorized to offset any obligation of Bank to any party to the payment
                hereof.

            

    

    

    Collateral
      securing other loans of each party with Bank may also secure this loan and
      this
      loan.

     

      
        

      

    

     

    SIGNATURES

    The
      undersigned party is liable for the payment of this Note and has subscribed
      its
      name hereto. The provisions printed below are a part of this Note. The
      provisions of this Note are binding on the heirs, executors, administrators,
      successors and assigns of the party and shall inure to the benefit of the
      holder, its successors and assigns. This Note is executed under the seal of
      the
      party.

    

    
      	 	
              Smart
                Online, Inc.

            	 
	 	 	 
	
              By:

            	
              /s/
                David Colburn

            	
              (SEAL)

            
	 	
              David
                Colburn, President

            	 
	 	 	 
	
              By:

            	
              /s/
                Nicholas Sinigaglia

            	
              (SEAL)

            
	 	
              Nicholas
                Sinigaglia, Chief Financial Officer

            	 

    

    

    Additional
      Terms and Provisions of Note

    

    DEFAULT.
      Any of
      the following shall constitute an event of default: (1) the failure to make
      when
      due any payment described herein, whether of principal, interest, or otherwise;
      (2) the dissolution or termination of existence of the borrower, or any merger,
      consolidation or other transaction pursuant to which persons or entities owning
      on the date hereof, voting shares of the borrower, singly or in the aggregate,
      of 50% or more of the voting shares (3) the application for the appointment
      of a
      receiver for any party or the filing of a petition under any provisions of
      the
      Bankruptcy Code or Act by or against any party or any assignment for the benefit
      of creditors by or against any party; (4) the failure of the borrower to furnish
      from time to time, at Bank’s reasonable request, financial information requested
      with respect to such party without undue delay; (5) a determination by Bank
      that
      it deems itself insecure or that a material adverse change in the financial
      condition of the borrower has occurred since the date hereof; (6) the failure
      of
      the borrower to perform any other obligation to Bank; (7) the termination of
      the
      letter of credit referenced to above.

    LATE
      CHARGES, EXPENSES AND ACCELERATION.
      The
      borrower agrees to pay any late charges permitted by applicable law that Bank
      may, in its discretion, charge for late payments. If this Note is not paid
      in
      full whenever it becomes due and payable, each party agrees to pay all costs
      and
      expenses of collection, including a reasonable attorney’s fee up to the amount
      of fifteen (15) percent of the then outstanding balance. Upon the occurrence
      of
      an event of default, the entire unpaid balance of this Note shall, at the option
      of Bank, become immediately due and payable, without notice or demand. Failure
      to exercise the option to accelerate shall not constitute a waiver of the right
      to exercise same in the event of any subsequent default.

    INTEREST.
      Upon
      the nonpayment of any payment of interest described herein, the Bank, at its
      option and without accelerating this Note, may accrue interest on such unpaid
      interest at the rate(s) applicable hereunder from time to time until maturity
      of
      this Note. After maturity of this Note, whether by acceleration or otherwise,
      interest will accrue on the unpaid principal of this Note and any accrued but
      unpaid interest shall bear interest at the lesser of (i) the highest contract
      rate, if any, permitted by applicable law (ii) a rate per annum equal to 2%
      per
      annum above the contract interest rate payable immediately prior to maturity.
      Such interest rate shall apply both before and after any judgment
      hereon.

    WAIVER.
      The
      borrower waives presentment, demand, protest and notice of dishonor, waives
      any
      rights which they may have to require Bank to proceed against any other person
      or property, agrees that without notice to any party and without affecting
      the
      borrower’s liability, Bank, at any time or times, may grant extensions of the
      time for payment or other indulgences to any party or permit the renewal,
      amendment or modification of this Note, the Loan Agreement or any security
      instrument(s), or permit the substitution, exchange or release of any security
      for this Note and may add or release any party primarily or secondarily liable,
      and agrees that Bank may apply all moneys made available to it from any part
      of
      the proceeds from the disposition of any security for this Note either to this
      Note or to any other obligation of any of the parties to Bank, as Bank may
      elect
      from time to time.

    PARTIES.
      The
      signatory of this Note is herein sometimes referred to as “Party” or as
“Borrower” and agrees to be liable hereunder. This Note shall apply to and bind
      the borrower’s, successors and assigns. All references in this Note to Bank
      shall include the holder hereof and this Note shall inure to the benefit of
      any
      holder, its successors and assigns.

    PARTIES
      DUE DILIGENCE.
      The
      undersigned acknowledges and represent that it has relied upon its own due
      diligence in making their own independent evaluations of the purposes for which
      the proceeds of this Note will be used and of the business affairs and financial
      condition of the borrower, and it will continue to be responsible for making
      its
      own appraisals of such matters. The undersigned has not relied upon and will
      not
      hereafter rely upon Bank for such information for such appraisal or other
      assessment or review and, further, will not rely upon any such information
      which
      may now or hereafter be prepared by Bank.

    CREDIT
      INVESTIGATION.
      The
      Bank is authorized to investigate from time to time the credit of the borrower
      and to answer questions relating to the Bank’s credit experience with the
      borrower.

    
      
        
        

      

      
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