Document:

exv10w2

 

Exhibit 10.2

FINAL

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR THE LAWS OF ANY
STATE. THEY MAY NOT BE SOLD OR OTHERWISE TRANSFERRED UNLESS THEY ARE REGISTERED UNDER SUCH ACT AND
APPLICABLE STATE SECURITIES LAWS OR AN EXEMPTION FROM REGISTRATION IS AVAILABLE. THE SHARES
ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF
BY THE HOLDER EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND IN COMPLIANCE WITH APPLICABLE SECURITIES LAWS OF ANY STATE WITH RESPECT
THERETO OR IN ACCORDANCE WITH AN OPINION OF COUNSEL IN FORM AND SUBSTANCE SATISFACTORY TO THE
ISSUER THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE AND ALSO MAY NOT BE SOLD, TRANSFERRED
OR OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE WITH ANY APPLICABLE RULES OF THE SECURITIES AND
EXCHANGE COMMISSION.

[_________] Warrants

REGEN BIOLOGICS, INC.

WARRANT CERTIFICATE

Warrant to Purchase

Common Stock

Date of Issue: July 14, 2005

          This warrant certificate (“Warrant Certificate”) certifies that for value received
                                         or registered assigns (the “Holder”) is the owner of the number of warrants
(“Warrants”) specified above, each of which entitles the Holder thereof to purchase, at any time on
or before the Expiration Date (hereinafter defined) one fully paid and non-assessable share of
Common Stock, $0.01 par value (“Common Stock”), of ReGen Biologics, Inc., a Delaware corporation
(the “Company”), at a purchase price of $1.00 per share of Common Stock in lawful money of the
United States of America in cash or by certified or cashier’s check or a combination of cash and
certified or cashier’s check, subject to adjustment as hereinafter provided.

     1. Warrant; Exercise Price

          Each Warrant shall entitle the Holder to purchase one share of Common Stock of the Company and
the purchase price payable upon exercise of the Warrants shall initially be $1.00 per share of
Common Stock, subject to adjustment as hereinafter provided (the “Exercise

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Price”). The Exercise Price and number of shares of Common Stock issuable upon exercise of
each Warrant are subject to adjustment as provided in Article 6.

     2. Exercise; Expiration Date

          2.1 The Warrants are exercisable, at the option of the Holder, at any time after issuance and
on or before the Expiration Date, upon surrender of this Warrant Certificate to the Company
together with a duly completed Notice of Exercise, in the form attached hereto as Exhibit A, and
payment of an amount equal to the Exercise Price times the number of Warrants to be exercised. In
the case of exercise of less than all the Warrants represented by this Warrant Certificate, the
Company shall cancel the Warrant Certificate upon the surrender thereof and shall execute and
deliver a new Warrant Certificate for the balance of such Warrants.

          2.2
The term “Expiration Date” shall mean 5:00 p.m. New York time on July 14, 2010 or if such
date shall in the State of New York be a holiday or a day on which banks are authorized to close,
then 5:00 p.m. New York time the next following date which in the State of New York is not a
holiday or a day on which banks are authorized to close.

     3. Registration and Transfer on Company Books

          3.1 The Company shall maintain books for the registration and transfer of the Warrants and the
registration and transfer of the shares of Common Stock issued upon exercise of the Warrants.

          3.2 Prior to due presentment for registration of transfer of this Warrant Certificate, or the
shares of Common Stock issued upon exercise of the Warrants, the Company may deem and treat the
registered Holder as the absolute owner thereof.

          3.3 Neither this Warrant nor the shares of Common Stock issuable upon exercise hereof (the
“Warrant Shares”) have been registered under the Securities Act of 1933, as amended (the “Act”).
The Company will not transfer this Warrant or issue or transfer the shares of Common Stock issuable
upon exercise hereof unless (i) there is an effective registration covering such Warrant or such
shares, as the case may be, under the Act and applicable states securities laws, (ii) it first
receives a letter from an attorney, acceptable to the Company’s board of directors or its agents,
stating that in the opinion of the attorney the proposed issue or transfer is exempt from
registration under the Act and under all applicable state securities laws, or (iii) the transfer is
made pursuant to Rule 144 under the Act. Subject to the foregoing, this Warrant Certificate, the
Warrants represented hereby, and the shares of Common Stock issued upon exercise of the Warrants,
may be sold, assigned or otherwise transferred voluntarily by the Holder to officers or directors
of the Holder, to members of such persons’ immediate families, or to the Holder’s parent or
subsidiary corporations. The Company shall register upon its books any permitted transfer of a
Warrant Certificate, upon surrender of same to the Company with a written instrument of transfer
duly executed by the registered Holder or by a duly authorized attorney. Upon any such
registration of transfer, new Warrant Certificate(s) shall be issued to the transferee(s) and the
surrendered Warrant Certificate shall be canceled by the Company. A Warrant Certificate may also
be exchanged, at the option of the Holder, for new Warrant Certificates representing in the
aggregate the number of Warrants evidenced by the Warrant Certificate surrendered.

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     4. Reservation of Shares

          The Company covenants that it will at all times reserve and keep available out of its
authorized Common Stock, solely for the purpose of issue upon exercise of the Warrants, such number
of shares of Common Stock as shall then be issuable upon the exercise of all outstanding Warrants.
The Company covenants that all shares of Common Stock which shall be issuable upon exercise of the
Warrants shall be duly and validly issued and, upon payment for such shares as set forth herein,
fully paid and non-assessable and free from all taxes, liens and charges with respect to the issue
thereof, and that upon issuance such shares shall be listed on each national securities exchange,
if any, on which the other shares of outstanding Common Stock of the Company are then listed.

     5. Loss or Mutilation

          Upon receipt by the Company of reasonable evidence of the ownership of and the loss, theft,
destruction or mutilation of any Warrant Certificate and, in the case of loss, theft or
destruction, of indemnity reasonably satisfactory to the Company, or, in the case of mutilation,
upon surrender and cancellation of the mutilated Warrant Certificate, the Company shall execute and
deliver in lieu thereof a new Warrant Certificate representing an equal number of Warrants.

     6. Adjustments of Exercise Price and Shares

          (a) In the event of changes in the outstanding Common Stock of the Company by reason of stock
dividends, split-ups, recapitalizations, reclassifications, combinations or exchanges of shares,
separations, reorganizations, liquidations, consolidation, acquisition of the Company (whether
through merger or acquisition of substantially all the assets or stock of the Company), or the
like, the number and class of shares available under the Warrant in the aggregate and the Exercise
Price shall be correspondingly adjusted to give the Holder of the Warrant, on exercise for the same
aggregate Exercise Price, the total number, class, and kind of shares or other property as the
Holder would have owned had the Warrant been exercised prior to the event and had the Holder
continued to hold such shares until the event requiring adjustment. The form of this Warrant need
not be changed because of any adjustment in the number of Exercise Shares subject to this Warrant.

          (b) If at any time or from time to time the holders of all of the shares of Common Stock of
the Company (or the holders of all of the shares of stock or other securities at the time
receivable upon the exercise of this Warrant) shall, as a class, have received or become entitled
to receive, without payment therefor:

               (i) Common Stock or any shares of stock or other securities which are at any time directly or
indirectly convertible into or exchangeable for Common Stock, or any rights or options to subscribe
for, purchase or otherwise acquire any of the foregoing by way of dividend or other distribution
(other than a dividend or distribution covered in Section 6(a) above),

               (ii) any cash paid or payable otherwise than as a cash dividend; or

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               (iii) Common Stock or additional stock or other securities or property (including cash) by way
of spinoff, split-up, reclassification, combination of shares or similar corporate rearrangement
(other than shares of Common Stock pursuant to Section 6(a) above),

then and in each such case, the Holder hereof will, upon the exercise of this Warrant, be entitled
to receive, in addition to the number of shares of Common Stock receivable thereupon, and without
payment of any additional consideration therefor, the amount of stock and other securities and
property (including cash in the cases referred to in clauses (ii) and (iii) above) which such
Holder would hold on the date of such exercise had he been the holder of record of such Common
Stock as of the date on which holders of Common Stock received or became entitled to receive such
shares or all other additional stock and other securities and property.

               (iv) Whenever the number of Warrant Shares purchasable upon the exercise of each Warrant or
the Exercise Price of such Warrant Shares is adjusted, as herein provided, the Company shall mail
to the Holder, at the address of the Holder shown on the books of the Company, a notice of such
adjustment or adjustments, prepared and signed by the Chief Financial Officer or Secretary of the
Company, which sets forth the number of Warrant Shares purchasable upon the exercise of each
Warrant and the Exercise Price of such Warrant Shares after such adjustment, a brief statement of
the facts requiring such adjustment and the computation by which such adjustment was made.

     7. Subsequent Financings

               (i) If, at any time prior to the third (3rd) year anniversary of the date hereof,
the Company issues additional shares of Common Stock or rights, warrants, options or other
securities or debt convertible, exercisable or exchangeable for shares of Common Stock or otherwise
entitling any individual or entity to acquire shares of Common Stock for an effective net price to
the Company per share of Common Stock less than eight-five cents ($0.85) (as adjusted for any stock
dividends, combinations, splits, recapitalizations and the like after the date hereof) (any such
issuance, a “Trigger Issuance”), then the Exercise Price shall be reduced as of the close of
business on the effective date of the Trigger Issuance, to a price determined as follows; provided,
however, that in no event shall the Exercise Price after giving effect to such Trigger Issuance be
greater than the Warrant Price in effect prior to such Trigger Issuance:

	 	 	 	 	 	 	 
	 

	 	       Adjusted Exercise Price   = 
	 	(A x B) + D
	 	 
	 

	 	 	 	A+C	 	 

          where

               “A” equals a) the number of shares of Common Stock outstanding or issuable upon conversion or
exercise of outstanding convertible securities, options, warrants or other rights (whether or not
immediately convertible or exercisable) immediately preceding such Trigger Issuance, plus
b) Additional Shares of Common Stock (as defined below) already deemed to be issued hereunder, if
any, immediately preceding such Trigger Issuance;

               “B” equals the Exercise Price in effect immediately preceding such Trigger Issuance;

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               “C” equals the number of Additional Shares of Common Stock issued or deemed issued hereunder
as a result of the Trigger Issuance; and

               “D” equals the aggregate consideration, if any, received or deemed to be received by the
Company upon such Trigger Issuance.

          For purposes of this subsection, “Additional Shares of Common Stock” shall mean all shares of
Common Stock issued by the Company or deemed to be issued pursuant to this subsection, other than
excluded issuances described in (ii) below.

               (ii) Notwithstanding the foregoing, no adjustment will be made under this Section 7 in respect
to any issuance of Common Stock (A) upon exercise or conversion of any options or other securities
described in the SEC Documents (as defined in the Purchase Agreement) or Disclosure Schedule to the
Purchase Agreement or otherwise pursuant to any employee benefit plan of the Company or its
subsidiaries or hereafter adopted by the Company, (B) in connection with any grant of options to
employees, officers, directors or consultants of the Company pursuant to a stock option plan duly
adopted by the Company’s board of directors or in respect of the issuance of Common Stock upon
exercise of any such options, (C) capital stock or convertible securities issued in a joint
venture, strategic partnership or licensing arrangement, the primary purpose of which is not the
raising of capital, or (D) shares of Common Stock which result in an adjustment pursuant to Section
6.

     8. Conversion 

          8.1 In lieu of exercise of any portion of the Warrants as provided in Section 2.1 hereof, at
any time that there is no effective registration statement pursuant to the Act covering the re-sale
of the Warrant Shares, the Warrants represented by this Warrant Certificate (or any portion
thereof) may, at the election of the Holder, be converted into the nearest whole number of shares
of Common Stock equal to: (1) the product of (a) the number of Warrants to be so converted, (b)
the number of shares of Common Stock then issuable upon the exercise of each Warrant and (c) the
excess, if any, of (i) the Market Price Per Share (as determined pursuant to Section 9.2) with
respect to the date of conversion over (ii) the Exercise Price in effect on the business day next
preceding the date of conversion, divided by (2) the Market Price Per Share with respect to the
date of conversion.

          8.2 The conversion rights provided under this Section 8 may be exercised in whole or in part
and at any time and from time to time while any Warrants remain outstanding. In order to exercise
the conversion privilege, the Holder shall surrender to the Company, at its offices, this Warrant
Certificate accompanied by a duly completed Notice of Conversion in the form attached hereto as
Exhibit B. The Warrants (or so much thereof as shall have been surrendered for conversion) shall
be deemed to have been converted immediately prior to the close of business on the day of surrender
of such Warrant Certificate for conversion in accordance with the foregoing provisions. As
promptly as practicable on or after the conversion date, the Company shall issue and shall deliver
to the Holder (i) a certificate or certificates representing the number of shares of Common Stock
to which the Holder shall be entitled as a result of the conversion, and (ii) if the Warrant
Certificate is being converted in part only, a new certificate in principal amount equal to the
unconverted portion of the Warrant Certificate.

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     9. Fractional Shares and Warrants; Determination of Market Price Per Share

          9.1 Anything contained herein to the contrary notwithstanding, the Company shall not be
required to issue any fraction of a share of Common Stock in connection with the exercise of
Warrants. Warrants may not be exercised in such number as would result (except for the provisions
of this paragraph) in the issuance of a fraction of a share of Common Stock unless the Holder is
exercising all Warrants then owned by the Holder. In such event, the Company shall, upon the
exercise of all of such Warrants, issue to the Holder the largest aggregate whole number of shares
of Common Stock called for thereby upon receipt of the Exercise Price for all of such Warrants and
pay a sum in cash equal to the remaining fraction of a share of Common Stock, multiplied by its
Market Price Per Share (as determined pursuant to Section 9.2 below) as of the last business day
preceding the date on which the Warrants are presented for exercise.

          9.2 As used herein, the “Market Price Per Share” with respect to any date shall mean the
average closing price per share of Company’s Common Stock for the ten (10) trading days immediately
preceding such date during which the Common Stock has traded. The closing price for each such day
shall be the closing sale price or, in case no such sale takes place on such day, the average of
the closing bid and asked prices at the end of the last trading day, in either case on the
principal securities exchange on which the shares of Common Stock of the Company are listed or
admitted to trading, the last sale price, or in case no sale takes place on any such day, the
average of the closing bid and asked prices of the Common Stock on the Over-the-Counter Bulletin
Board (“OTCBB”), NASDAQ or any comparable system, or if the Common Stock is not reported on OTCBB,
the NASDAQ, or a comparable system, the average of the closing bid and asked prices as furnished by
two members of the National Association of Securities Dealers, Inc. selected from time to time by
the Company for that purpose. If such bid and asked prices are not available, then “Market Price
Per Share” shall be equal to the fair market value of the Company’s Common Stock as determined in
good faith by the Board of Directors of the Company.

     10. Governing Law

          This Warrant Certificate shall be governed by and construed in accordance with the laws of the
State of New York.

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          IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to be duly executed by its
officers thereunto duly authorized and its corporate seal to be affixed hereon, as of this 14th day of July, 2005

	 	 	 	 	 
	 	 	REGEN BIOLOGICS, INC.
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name: Brion D. Umidi
	 

	 	 	 	Title: Senior Vice President and Chief
Financial Officer

	 	 	 
	Attest:
	 	 
	 	 	 
	Name:
	 	 
	Title:
	 	 

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EXHIBIT A

NOTICE OF EXERCISE

          The undersigned hereby irrevocably elects to exercise, pursuant to Section 2 of the Warrant
Certificate accompanying this Notice of Exercise, ___Warrants of the total number of Warrants
owned by the undersigned pursuant to the accompanying Warrant Certificate, and herewith makes
payment of the Exercise Price of such shares in full.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name of Holder	 	 	 	 
	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Signature	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 
	 
	 	 	 	 	 	 
	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 

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EXHIBIT B

NOTICE OF CONVERSION

The undersigned hereby irrevocably elects to convert, pursuant to Section 8 of the Warrant
Certificate accompanying this Notice of Conversion,                      Warrants of the total number of
Warrants owned by the undersigned pursuant to the accompanying Warrant Certificate into shares of
the Common Stock of the Company (the “Shares”).

The number of Shares to be received by the undersigned shall be calculated in accordance with the
provisions of Section 7.1 of the accompanying Warrant Certificate.

	 	 	 	 	 
	 	 	 
	 

	 	Name of Holder	 	 
	 
	 
	 	 	 	 
	 	 	 
	 

	 	Signature	 	 
	 
	 	 	 	 
	 

	 	Address:	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	 
	 

	 	 	 	 

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EXHIBIT 10.1

Seventh Amendment to Revolving Loan Agreement

Between

MMAC Communications Corp. and Keltic Financial Partners, LP

Dated as of October 11, 2002

     This is a Seventh Amendment to the Revolving Loan Agreement, dated as of October 11, 2002, which
is made as of the 15th day of July, 2005, (this “Amendment”), between DELTA COMPUTEC INC. (formerly
known as MMAC Communications Corp.) (“Borrower”), a Delaware corporation, having an address at 900
Huyler Street, Teterboro, New Jersey 07608, and KELTIC FINANCIAL PARTNERS, LP (“Lender”), a
Delaware limited partnership, with a place of business at 555 Theodore Fremd Avenue, Suite C-207,
Rye, New York 10580.

WITNESSETH

     WHEREAS, Borrower and Lender are engaged in a continuing commercial lending relationship
pursuant to that certain Revolving Loan Agreement, dated as of October 11, 2002 (as previously
amended, modified or otherwise supplemented, the “Loan Agreement”), and other related documents,
whereby Lender agreed to advance certain sums to Borrower and Borrower agreed to repay same under
the terms and conditions therein set forth; and

     WHEREAS, MMAC Communications Corp. changed its name from MMAC Communications Corp. to Delta
Computec Inc., as evidenced by that certain Certificate of Amendment to Certificate of
Incorporation of MMAC Communications Corp. with the Secretary of State of the State of Delaware on
October 15, 2002; and

     WHEREAS, the Borrower has requested that the Lender extend the Termination Date; and

     WHEREAS, the Lender is willing to effect such requests, upon the condition that the Loan
Agreement shall be otherwise amended as provided herein and subject to certain other terms and
conditions herein contained; and

     WHEREAS, the parties wish to memorialize the terms of their agreements by this writing.

     NOW, THEREFORE, for and in consideration of the mutual covenants and agreements herein
contained, and for other good and valuable consideration, it is agreed as follows:

1. AMENDMENTS TO ARTICLE 1, DEFINITIONS.

     (a) Section 1 of the Loan Agreement, entitled “Definitions” is hereby amended by deleting
Section 1.51 (“Termination Date”) and replacing same with the following:

 

 

          “Termination Date” shall mean the earlier of October 11, 2005, or the date on which
the Lender terminates this Agreement pursuant to Section 12 hereof.

2. AMENDMENTS TO ARTICLE 3, LENDER’S COMPENSATION.

     (a) Section 3.6 (“Liquidated Damages”) is hereby deleted in its entirety and replaced with the
following:

          3.6 Liquidated Damages. If Borrower prepays all or any portion of the principal of the
Revolving Loan (other than from time to time for working capital or other payments required
hereunder), Borrower shall pay to Lender at the time of such prepayment, liquidated damages in an
amount equal to (a) three percent (3.00%) of the Maximum Facility if the Borrower elects to
terminate the availability of Revolving Loans as hereinafter provided and the prepayment is made
prior to October 11, 2005 or (b) three percent (3.00%) of the amount of any partial prepayment made
prior to October 11, 2005, provided, however, the requirements of Section 3.6(a)
shall be waived if (i) the termination of the availability of the Revolving Loans results from a
sale of substantially all of the assets of Borrower and (ii) Lender, pursuant to a new financing
arrangement, provides financing to the entity that acquires substantially all of the assets of
Borrower. Borrower shall give Lender as much advance written notice (the “Termination Notice”) of
Borrower’s election to terminate the availability of Revolving Loans hereunder prior to the
Termination Date as is practicable. The Termination Notice shall be irrevocable and shall specify
the effective date of such termination, but shall be in no event later than the Termination Date.

3. MISCELLANEOUS.

     (a) The amendments to the Loan Agreement provided for in Sections 1 and 2 of this Amendment
shall become effective on the date of this Amendment.

     (b) Any and all references to the Loan Agreement in any other Loan Document shall be deemed to
refer to the Loan Agreement as amended by this Amendment. This Amendment is deemed incorporated
into each of the other Loan Documents. Any initially capitalized terms used in this Amendment
without definition shall have the meanings assigned to those terms in the Loan Agreement. To the
extent that any term or provision of this Amendment is or may be inconsistent with any term or
provision in any Loan Document, the terms and provisions of this Amendment shall control.

     (c) Borrower hereby certifies that: (a) all of its representations and warranties in the Loan
Agreement, as amended hereby, are, except as may otherwise be stated in this Amendment: (i) true
and correct as of the date of this Amendment, (ii) ratified and confirmed without condition as if
made anew, and (iii) incorporated into this Amendment by reference; (b) after giving effect to this
Amendment, no Default or Event of Default exists; (c) no consent, approval, order or authorization
of, or registration or filing with, any third party is required in connection with the execution,
delivery and carrying out of this Amendment or, if required, has been obtained, (d) no sums are due
and owing to Lender under the Loan Agreement as of the effective date of this Amendment; and (e)
this Amendment has been duly authorized, executed and delivered so that it constitutes the legal,
valid and binding obligation of Borrower, enforceable

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in accordance with its terms. Borrower confirms that the Obligations remain outstanding without
defense, set off, counterclaim, discount or charge of any kind as of the date of this Amendment.

     (d) Borrower hereby confirms that all Collateral for the Obligations and all liens, security
interests, mortgages, and pledges granted by Borrower or third parties (if applicable) pursuant to
the Loan Documents, shall continue unimpaired and in full force and effect, and shall cover and
secure all of Borrower’s existing and future Obligations to Lender, as modified by this Amendment.

     (e) This Amendment may be signed in any number of counterpart copies and by the parties to
this Amendment on separate counterparts, but all such copies shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Amendment by facsimile
transmission shall be effective as delivery of a manually executed counterpart. Any party so
executing this Amendment by facsimile transmission shall promptly deliver a manually executed
counterpart, provided that any failure to do so shall not affect the validity of the counterpart
executed by facsimile transmission.

     (f) This Amendment will be binding upon and inure to the benefit of Borrower and Lender and
their respective successors and assigns.

     (g) This Amendment has been delivered to and accepted by Lender and will be deemed to be made
in the State of New York. This Amendment will be interpreted and the rights and liabilities of the
parties hereto determined in accordance with the laws of the State of New York, excluding its
conflict of laws rules.

     (h) Borrower hereby acknowledges its continuing obligation to deliver to Lender tax clearance
certificates from all applicable jurisdictions as set forth in the Loan Documents. Borrower shall
use commercially reasonable efforts in order to secure same.

     (i) Except as amended hereby, all of the terms and provisions of the Loan Agreement remain
unchanged, are and shall remain in full force and effect unless and until modified or amended in
writing in accordance with their terms, and are hereby ratified and confirmed. Except as expressly
provided herein, this Amendment shall not constitute an amendment, waiver, consent or release with
respect to any provision of the Loan Agreement or any other Loan Document, a waiver of any Default
or Event of Default, or a waiver or release of any of Lender’s rights and remedies (all of which
are hereby reserved). Borrower expressly ratifies and confirms the waiver of jury trial provisions
contained in the Loan Agreement and the other Loan Documents.

4. CONDITIONS TO EFFECTIVENESS OF THIS AMENDMENT.

     Lender’s willingness to agree to the waiver and the amendments set forth in this Amendment are
subject to the prior satisfaction of the following conditions:

3

 

     (a) Borrower and each guarantor shall execute and deliver this Amendment, incumbency
certificates, authorizing resolutions, all other documents or information required and requested by
Lender, in such form and substance as is satisfactory to Lender.

     (b) Borrower shall furnish to Lender a written status report regarding the escrowed funds and
“no tax due certificates” referenced in that certain Escrow Agreement dated as of October 11, 2002
by and among ViewCast.com, Inc., Delta Computec, Inc. n/k/a NQL Sub-Surving Corporation and The
Bank of New York,

5. FEES AND EXPENSES.

     (a) Borrower shall reimburse Lender for all fees and costs associated with the negotiation,
documenting and closing of this Amendment and all documentation related to this Amendment,
including, without limitation, the reasonable fees and out-of-pocket costs of counsel for Lender.
Lender may charge all such fees and costs by a charge to Borrower’s loan account with Lender.
Borrower hereby consents to such charge.

     (b) Borrower shall pay to Lender a modification fee (the “Modification Fee”) in the amount of
Three Thousand Five Hundred Dollars ($3,500.00). The Modification Fee is deemed earned in full on
the date that this Amendment is executed by Borrower and shall be paid on or before the execution
of this Amendment.

[End of Text; Signature Page Follows]

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     IN WITNESS WHEREOF, the undersigned have set their hands and seals or caused these presents to
be executed by their proper authorized representative as of the day and year first above
written.

	 	 	 	 	 
	 	DELTA COMPUTEC INC.

(formerly known as MMAC

Communications Corp.)

 	 
	 	By:  	/s/ John DeVito
 	 
	 	 	Name:  	John DeVito 	 
	 	 	Title:  	President 	 
	 
	 
	 	KELTIC FINANCIAL PARTNERS, LP

By: KELTIC FINANCIAL SERVICES, LLC,

its General Partner

 	 
	 	By:  	/s/ John P. Reilly
 	 
	 	 	Name:  	John P. Reilly 	 
	 	 	Title:  	Managing Partner 	 
	 

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