Document:

<PAGE>

                                                                    Exhibit 10.9

(WESTON SOLUTIONS(R) LOGO)   WESTON SOLUTIONS OF NEW YORK, INC
                             85 Wellington Court
                             Yorktown Heights, NY 10598
                             732-417-5800 - Fax 732-417-5801
                             www.westonsolutions.com

                                                                    May 29, 2003

Mr. William A. Gildea, Jr.
ECAP, LLC
137 Newbury Street
Seventh Floor
Boston, MA 02116

RE:  Mining Organics Management
     Harlem River Yard Facility Design

Dear Mr. Gildea:

WESTON Solutions of New York, Inc. (WESTON(R)) is pleased to provide the
attached Scope of Work (SOW) for the design of the Harlem River Yard organic
waste to fertilizer manufacturing facility. The attachment outlines our scope,
assumptions, and exclusions.

As previously discussed, WESTON has estimated our design effort will be a lump
sum amount of Five Hundred Thousand Dollars ($500,000) for these services.

We are prepared to proceed upon your authorization and receipt of appropriate
information from the technology provider, International BioRecovery (IBR).
Acceptance of this proposal and the attached Terms and Conditions can be made by
signing in the space provided below. We appreciate the opportunity to submit
this proposal and look forward to the opportunity to provide the design services
for this project. If you have any questions, please feel free to contact us at
your convenience.

                                        Very Truly Yours,

                                        WESTON SOLUTIONS, INC.

                                        /s/ Donald (Buzz) Grogan
                                        ----------------------------------------
                                        Donald (Buzz) Grogan, P.E., DEE
                                        Vice President/General Manager

cc: Greg C. Miller, WESTON

Enclosures

<PAGE>

(WESTON SOLUTIONS(R) LOGO)

Mr. William A. Gildea, Jr.
ECAP, LLC                              2                            May 29, 2003

AUTHORIZATION TO PROCEED

This proposal is hereby approved and the General Terms and Conditions as
outlined above agreed upon.

/s/ John (Illegible)
-------------------------------------
Authorized Representative
Mining Organic Management

May 30, 2003
Date

<PAGE>

1. SCOPE OF WORK

Weston Solutions, Inc. (WESTON(SM)) will receive a generic design for an organic
waste processing facility from IBR. It is expected that the generic design will
include all of the basic elements required to construct a facility to convert
the organic waste into a pelletized solid fertilizer and a concentrated liquid
fertilizer. In general, it is assumed that the IBR design package will include
the following:

     -    Process flow diagrams and mass balance.

     -    Process and instrumentation diagrams.

     -    Equipment list.

     -    Hydraulic profiles.

     -    Dimensions and specifications for all unit processes.

     -    Specifications for pelletizer, evaporator, reactors, dryer, Fournier
          press, aerators, pumps, blowers, etc.

     -    Operations and maintenance manual for the facility suitable for
          permitting requirements.

     -    Generic engineering drawings.

It is assumed that all drawings will be provided in AutoCADD version 14 (or
compatible) electronic format, and all text will be provided in Microsoft Word
(or compatible) electronic format. A more detailed list of our assumptions with
regard to the contents of the generic design package is included in Attachment
A.

WESTON's Scope of Work for design (WO# 13083.001.001) will include modifying the
IBR furnished documentation as follows:

     -    Modifying the IBR Basis of Design Document.

     -    Evaluating alternate technologies that can be used to concentrate the
          liquid fertilizer (based on previous IBR evaluations and research).

     -    Revising the process flow diagrams to be specific to the Harlem River
          Site.

                                       1                             3 JUNE 2003
<PAGE>

     -    Revising the process and instrumentation diagrams to be specific to
          the Harlem River Site.

     -    Revising hydraulic profiles to be specific to the Harlem River Site.

     -    Preparing layouts for equipment, tanks, and piping at the Harlem River
          Site.

     -    Modifying the IBR design for pre-engineered metal panel buildings to
          house the process equipment.

     -    Modifying the IBR design for mezzanines and catwalks.

     -    Modifying the IBR design for a biofilter for air emissions treatment.

     -    Modifying the IBR design for the HVAC system for the buildings.

     -    Modifying the IBR design for sizing and specifying the boiler(s) for
          process and heating.

     -    Modifying the IBR design for the building electrical, lighting, and
          plumbing.

     -    Modifying the IBR design for mechanical work, including all pumps,
          aerators, reactors, processing equipment, etc.

     -    Modifying the IBR design for electrical work, including electrical
          distribution, motor control, power supply to all equipment.

     -    Modifying the IBR design for process instrumentation and control work.

     -    Modifying the IBR design for process safety documentation.

Tasks that are not presently included in WESTON's Scope of Work, but will need
to be performed to implement and support the Design Phase include the following:

     -    Surveying the site and producing an existing conditions site plan.

     -    Conducting geotechnical investigations and a geotechnical evaluation
          for designing foundations for the buildings and tanks.

     -    All permitting, including state, local, and federal environmental
          permitting; and local building, zoning, community permitting or
          obtaining variances (if necessary).

     -    Environmental Impact Study.

                                        2                            3 JUNE 2003

<PAGE>

     -    Visual screening of facility.

     -    Fuel cell evaluation.

The following Scopes of Work will be considered Construction Phase tasks and are
not included in the Design Phase.

Scope of Work for Procurement (WO# 13083.001.002) will include:

     -    Preparing an RFQ and evaluating Statements of Qualifications and
          Experience for a minimum of 3 general contractors.

     -    Selecting a general contractor based on qualifications.

     -    Preparing an RFP (with design package) for construction of building
          and installation of equipment, piping, electrical, controls,

     -    Conducting price negotiations with general contractor.

     -    Preparing RFPs and soliciting of prices for the major equipment.

     -    Procuring miscellaneous equipment and supplies for construction of the
          facility.

Scope of Work for Construction Administration (WO# 13083.001.003) will include:

     -    Preparing a Health & Safety Plan for the project.

     -    Providing a minimum of one full-time construction inspector at the
          construction site to oversee construction activities.

     -    Providing a second construction inspector at the construction site
          when required to ensure proper QA of work.

     -    Mobilization to the site, including provision of a construction
          trailer with phone, fax, and utilities for the duration of
          construction.

     -    Reviewing shop drawing submittals.

     -    Conducting Health & Safety Inspections to facilitate worker safety and
          compliance with OSHA requirements.

     -    Approval of contractor pay estimates.

     -    Preparing punch lists and ensuring contractor's work is completed
          satisfactorily.

                                        3                            3 JUNE 2003
<PAGE>

                       WESTON GENERAL TERMS AND CONDITIONS

     1. PARTIES. References herein to WESTON mean the entity, division,
affiliate or subsidiary corporation of WESTON SOLUTIONS, INC. (WESTON(R))
identified in the Proposal to which these General Terms and Conditions are
attached or have been incorporated by reference therein.

     2. DEFINITIONS.

          Agreement - The Agreement consists of the Contract Documents as
described in Article 3 below.

          Access Agreements - All necessary approvals, permits, licenses,
easements and consents that relate to or are necessary for performance of
WESTON's services.

          Change Order - CLIENT'S written request for services differing from
the services described in the Scope of Work.

          Modification - A written amendment to the Agreement modifying the
Scope of Work, the compensation and/or the terms and conditions of the Agreement
signed by CLIENT and WESTON.

          Days - A day as used herein means a business day unless otherwise
described.

          Project Records - Information in documentary, electronic medium or
other form relating to performance of WESTON's obligations under this Agreement.

          Proposal - The letter or document, signed by WESTON, to which these
General Terms and Conditions are attached or made a part of and which sets forth
WESTON's technical and/or cost proposal for the Work.

          Scope of Work or Work - The services and products WESTON has agreed in
its Proposal to provide to CLIENT pursuant to this Agreement.

          Underground Facilities - Equipment and material beneath the ground
surface including but not limited to buried or concealed pipes, tanks, cables,
instruments, utilities, and other man-made objects which may affect or be
affected by WESTON's services.

     3. CONTRACT DOCUMENTS/ORDER OF PRECEDENCE. The Contract Documents include
Modifications, Proposal, WESTON General Terms and Conditions, Scope of Work,
Special Terms and Conditions, Specifications and Drawings. In the event of any
ambiguity, inconsistency, or conflict between or among the respective Contract
Documents, the Contract Documents shall govern in the following descending order
of precedence:

          (a)  Modifications.

          (b)  Proposal.

          (c)  Special Terms and Conditions.

          (d)  General Terms and Conditions.

          (e)  Scope of Work.

          (f)  Specifications and Drawings.

     In the event of any ambiguity and/or inconsistency between or among
Contract Documents having the same caption, a later dated document will take
precedence over an earlier dated document.

     4. CHANGES. CLIENT, by Change Order furnished to WESTON, may request
changes within the general scope of the Agreement in the Work to be performed.
In order to be an effective request for such a change, any oral request for
change in the Work must be confirmed in writing by a Change Order. If any such
changes cause an increase in WESTON's costs and/or increase the time required
for, or the nature of performance of the Agreement, WESTON shall so notify
CLIENT within a reasonable time following receipt of the Change Order and an
equitable adjustment in compensation shall be made through a Modification.
WESTON shall have no obligation with respect to such changes, nor will WESTON be
considered to be in default for failure or refusal to proceed with such changes
until agreement on such cost or time impact has been incorporated into a signed
Modification. In the event the Parties fail to agree upon an equitable
adjustment to price or schedule resulting from changes sought by CLIENT in the
Scope of Work, WESTON may at its sole option cease the Work without liability,
or terminate or suspend this Agreement should WESTON determine that it would not
be in its best interest to agree to such changes.

     5. EXCLUDED SERVICES. CLIENT acknowledges that the services and/or products
to be provided by WESTON under this Agreement include only those services and/or
products that are expressly listed in the Scope of Work. WESTON shall have no
responsibility to provide any services and/or products that are not expressly
listed in the Scope of Work. CLIENT has made its own determination that any
services and/or products that are not listed in the Scope of Work are either
unnecessary or will be obtained by CLIENT from sources other than WESTON.

     6. FORCE MAJEURE. WESTON will not be responsible for delays, such as, but
not limited to, those attributable to acts of God, acts of the CLIENT or third
Parties, weather, intervention of public authorities, work stoppages, changes in
applicable laws or regulations after the date of commencement of performance
hereunder or any other acts or omissions or events which are beyond the
reasonable control of WESTON. Costs and schedule commitments shall be subject to
renegotiation for unreasonable delays caused by CLIENT'S or third Party's
failure to provide specified facilities or information. The time for performance
shall be equitably adjusted in the event WESTON is delayed in the performance of
this Agreement by such causes and an equitable adjustment in compensation shall
be made in accordance with the provisions of Article 4 hereof.

     7. INVOICES.

     (A) Invoices will be submitted on WESTON's standard invoice format
periodically (customarily on a monthly basis), and terms are net cash in U.S.
dollars, due and payable upon CLIENT'S receipt of each invoice.

     (B) When the contract payment is based on a cost reimbursement, time and
material, labor hour, or fixed rate schedule, the following provisions shall
apply:

          (i) Where applicable, rental charges will be applied to the Project to
cover the cost of pilot-scale facilities, equipment, apparatus, instrumentation
or other technical machinery. When such charges are applicable, CLIENT will be
advised at the start of an assignment, task or phase.

          Analyses performed in WESTON's laboratories will be billed in
accordance with the laboratory's standard billing practices unless specified
otherwise in the Agreement.

          (ii) Reimbursable expenses shall include but are not limited to:
travel and subsistence expenses of personnel (which may be charged on a per diem
basis) when away from their home office on business directly or indirectly
connected with the Project; identifiable communication, shipping, printing, and
reproduction costs; subcontractors; identifiable drafting and stenographic
supplies; computer time and software; and expendable materials and supplies
purchased specifically for the Work. A ten percent (10%) handling and
administrative charge will be added to each reimbursable expense item (as more
fully described in WESTON's Hourly Charge Rates, if applicable). When WESTON,
after commencement of the Work, determines that specialized equipment is needed
to perform the services, it will notify CLIENT of such requirement and purchase
the equipment for CLIENT as a reimbursable expense.

          (iii) Invoices will be submitted on WESTON's standard invoice format
which will state labor hours worked and total expenses, but will not include
original documentation (such as time sheets and expense receipts). If additional
detail or actual invoice documentation is requested by CLIENT, the labor and
expenses associated with retrieval, gathering, sorting, highlighting, mailing
and copying supporting documentation will be paid by CLIENT and will be billed
to CLIENT on subsequent invoice(s).

     (C) When the method of contract payment is based on a fixed price/lump sum
Agreement, invoices will be submitted based on the billing schedule proposed by
WESTON and agreed to by the Parties.

     8. PAYMENTS. Time is of the essence in the payment of invoices. Timely
payment of invoices is a material part of the consideration of the Agreement and
failure to pay invoices shall therefore constitute a material breach. Invoices
not paid within thirty (30) calendar days of receipt by CLIENT arc considered
overdue and shall be subject to an interest charge at a rate equal to the
greater of one and one-half percent (1-1/2%) per month on the overdue balance or
the maximum charge permitted by applicable law. CLIENT agrees that in the event
litigation is instituted by WESTON for payment of its invoices, WESTON shall be
entitled to receive, in addition to all unpaid invoice amounts, interest at the
above rate, filing and service costs and reasonable attorney's fees and
expenses. In addition, CLIENT agrees that WESTON may, after giving ten (10) days
written notice to CLIENT, suspend services without liability until CLIENT has
paid in full all amounts due WESTON on account of ser vices rendered and
expenses incurred, including interest on overdue invoices. Invoices shall not be
subject to any discount.

     Invoice amounts in dispute hereunder shall not affect CLIENT'S obligation
to pay remaining invoice charges and CLIENT shall not offset or deduct from
amounts payable hereunder any amounts for the purpose of satisfying any other
claims CLIENT may have against WESTON under this or any other Agreement.

     9. PAYMENT OF INVOICES. CLIENT shall remit all invoices for more than
twenty-five thousand dollars ($25,000.00) through electronic wire transfer of
funds to WESTON's bank account, identified below:

     Account Number 94292-23574
     ABA Number: 011900571
     Swift BIC: FNBBUS33 (For International Accounts)

                                   Page 1 of 4
<PAGE>

                 WESTON GENERAL TERMS AND CONDITIONS (CONTINUED)

     CLIENT may remit payment of invoices for less than twenty-five thousand
dollars ($25,000.00) to WESTON'S lockbox account identified below:

     Weston Solutions, Inc.
     P.O. Box 538253
     Atlanta, GA 30353-8253
     10.(A) TERMINATION FOR DEFAULT.

     Either Party ("Terminating Party") may terminate this Agreement, in
writing, if the other Party ("Breaching Party") fails to fulfill its obligations
under the Agreement ("breaches") through no fault of the Terminating Party. In
such event the Terminating Party may, after giving the Breaching Party an
opportunity to cure (as described in the next sentence of this Article 10(A)),
declare the Breaching Party in default by issuing a Declaration of Default and
terminate the Agreement for cause. Before issuing such Declaration of Default,
the Terminating Party shall advise the Breaching Party that a Declaration of
Default is imminent by sending the Breaching Party a written notice ("Notice of
Imminent Default") by registered or certified mail, return receipt requested,
including a description of the conditions constituting breach of the Agreement
and providing the Breaching Party a period of time of not less than five (5)
days and not more than twenty (20) days within which to correct such conditions
to the satisfaction of the Terminating Party. In the event that the Breaching
Party docs not correct such conditions contained in the Notice of Imminent
Default to the satisfaction of the Terminating Party within the designated
period of time, the Terminating Party may issue a Declaration of Default and
terminate the Agreement effective on the date specified in the Declaration of
Default (the "Effective Date"). Disputes arising under this Article, including
final payment to WESTON, if unresolved amicably, shall proceed in accordance
with Article 25 hereof. In the event this Agreement is terminated for default,
the Parties shall comply with the Orderly Transfer of responsibility provisions
contained in Article 10(C) below.

     (B) TERMINATION/SUSPENSION FOR CONVENIENCE OF CLIENT. The Work may be
terminated or suspended by CLIENT in accordance with this Article 10(B) when
CLIENT determines that such termination or suspension is in CLIENT'S best
interests. Any such termination or suspension shall be instituted by delivery
to WESTON of a written Notice of Termination/Suspension for Convenience
specifying the Agreement is being terminated or suspended for the convenience of
CLIENT and directing WESTON to cease the performance of services under the
Agreement upon the date of WESTON'S receipt of such notification (the "Effective
Date"). After receipt of the Notice of Termination/Suspension for the
Convenience of CLIENT, WESTON shall upon the Effective Date cease performing
services under the Agreement and as soon as practicable thereafter, WESTON
shall:

          (1) Terminate or suspend all orders and subcontracts to the extent
that they relate to the performance of the Work terminated or suspended by the
Notice of Termination/Suspension for Convenience.

          (2) Assign to CLIENT all of WESTON'S rights, title and interest under
the orders and subcontracts so terminated or suspended.

          (3) Transfer to CLIENT (and CLIENT will accept responsibility for) the
obligation to satisfy all outstanding liabilities and all unresolved claims
arising out of termination/suspension of orders and subcontracts associated with
such termination or suspension; CLIENT shall release WESTON from all such
outstanding liabilities and unresolved claims, and CLIENT shall indemnify, hold
harmless and defend WESTON from all losses, costs, damages and expenses,
including attorneys' fees and expenses, arising out of or in connection with
such outstanding liabilities and unresolved claims.

          (4) Transfer the responsibility for site management from WESTON to
CLIENT in accordance with Article 10(C) below.

          (5) Submit to CLIENT and CLIENT shall pay WESTON'S termination or
suspension invoice including, but not necessarily limited to, the total of:

               (a)  The cost and fees associated with such Work.

               (b)  The cost of settling and paying claims arising out of the
                    termination or suspension of Work under subcontracts or
                    purchase orders.

               (c)  Reasonable demobilization costs.

               (d)  A reasonable allowance for profit.

               (e)  All costs incurred under Article 10(C) below.

     (C) ORDERLY TRANSFER OF RESPONSIBILITY. To the extent the Work involves
WESTON-directed activity on site and the Work is terminated or suspended,
whether for Convenience of CLIENT or for Default, the Parties hereto understand
and agree that certain steps (hereinafter referred to as "Orderly Transfer")
must be taken to properly implement the termination or suspension. CLIENT agrees
that all costs of the Orderly Transfer will be borne by CLIENT.

     Upon notification of termination or suspension, WESTON will prepare a
memorandum of Orderly Transfer, which will advise CLIENT of the steps necessary
to shut down the job site or otherwise effect a transition.

     Upon completion of the Orderly Transfer, WESTON will provide written
notification to CLIENT. Upon notification by WESTON, CLIENT agrees to accept all
responsibility for the Work and site, including but not limited to, continued
maintenance and protection of the Work and site in accordance with all federal,
state, and local laws and regulations.

     In the event of termination or suspension of Work under this Agreement,
whether for convenience, for default or as otherwise specifically permitted
under this Agreement, CLIENT accepts full responsibility for continuing
operations on the site and to the fullest extent permitted by law, CLIENT shall
indemnify, hold harmless and defend WESTON and its agents and employees from and
against any and all claims, liabilities, costs, losses, damages and expenses,
including attorneys' fees and expenses, arising out of or resulting from site
maintenance, protection and operation of the site following the Orderly Transfer
in accordance with this Article 10(C).

     11. HEALTH AND SAFETY. WESTON has established and maintains a Health and
Safety program for its employees. A copy of this Health and Safety plan is
available for review upon request from CLIENT. WESTON specifically disclaims any
authority or responsibility for general job site safety and health and safety of
persons who are not WESTON'S employees. Unless otherwise specifically included
in the Scope of Work, WESTON is not responsible for the work site safety or the
safety of any persons on the project site other than WESTON'S employees.

     12. STANDARD OF CARE. When WESTON serves as the professional representative
of CLIENT or provides any professional services to CLIENT under this Agreement,
WESTON will endeavor to do so in accordance with generally accepted professional
standards and practices as applied to similar projects performed under similar
conditions prevailing in the community where services are rendered at the time
such advice, consultation and/or services are provided by WESTON.

     The Parties intend that the duty owed by WESTON is solely for the benefit
of the CLIENT and that there is no other Party contemplated to benefit from the
Work performed hereunder.

     13. INDEPENDENT CONTRACTOR. Unless provided otherwise elsewhere in this
Agreement, WESTON shall provide its services under this Agreement as an
independent contractor and its employees shall not be considered to be employees
of CLIENT in any respect or for any purpose whatsoever.

     14. NO WARRANTY/GUARANTEE. Estimates of cost, approvals, recommendations,
opinions and decisions by WESTON are made on the basis of WESTON'S experience,
qualifications and professional judgment and are not nor should they be
considered or construed as warranties or guarantees. WESTON MAKES NO WARRANTY OR
GUARANTEE, EXPRESSED OR IMPLIED, REGARDING THE WORK TO BE PROVIDED UNDER THIS
AGREEMENT.

     15. HAZARDOUS MATERIALS. CLIENT bears full responsibility and liability for
the creation, existence or presence of any toxic, hazardous, radioactive,
infectious or other dangerous substances existing at the site at the time WESTON
commences performance of services at the site. CLIENT recognizes that when it is
known, assumed or suspected that hazardous materials exist on or beneath the
surface of the site of the Project or within any structure thereon, certain
sampling materials or residues, such as drill cuttings and drilling fluids or
asbestos removed for sampling, should be handled as if hazardous or contaminated
and CLIENT shall so notify WESTON and all appropriate federal, state and local
public agencies in writing as required that such materials or residues may
present a potential danger to the public health, safety and/or the environment.
Accordingly, when sampling is included in the Scope of Work and when determined
by WESTON in its sole discretion to be necessary based on WESTON'S assessment of
the degree of contamination, hazard and risk, WESTON will promptly inform CLIENT
that containerization and labeling of wastes or residues will be performed.
WESTON will appropriately containerize and label such materials and will leave
such containers on the site for proper and lawful removal, transport and
disposal by CLIENT. CLIENT waives any claim against WESTON and agrees to
indemnify, defend and hold WESTON harmless from any claim, cost, loss, damage,
expense or liability, including attorneys' fees and expenses, which may

                                   Page 2 of 4
<PAGE>

                 WESTON GENERAL TERMS AND CONDITIONS (CONTINUED)

arise as a result of or in connection with the drill cuttings, drilling fluids
or other assumedly hazardous materials being left on the site of the Project
after containerization by WESTON except where due solely to WESTON'S negligent
acts or omissions. The Parties do not intend for WESTON to take title to,
control or have final authority with respect to the disposition of any hazardous
substance or waste. Accordingly, WESTON will not be considered to be a
generator, arranger, storer, transporter, operator or disposer of hazardous
substances or wastes as a result of activities performed in connection with this
Agreement. CLIENT shall select and arrange for lawful disposal of any hazardous
substance, including but not limited to, samples obtained in connection with
work under this Agreement WESTON may execute any manifests or forms in
connection with such activity in the name of and on behalf of CLIENT.

     If and to the extent that WESTON is notified of claims in connection with
or arising out of the handling, transportation, treatment, storage or disposal
of hazardous substances or wastes in connection with the performance of this
Agreement, CLIENT shall defend, indemnify and hold WESTON harmless from and
against any and all such claims and any liabilities, costs, losses, damages and
expenses, including attorneys' fees and expenses, for or associated with such
claims.

     16. INSURANCE. WESTON agrees to maintain, at its own expense, Worker's
Compensation, Commercial General Liability, Automobile Liability, and
Professional Liability insurances as follows:

<TABLE>
<CAPTION>
 TYPES OF INSURANCE       LIMITS OF LIABILITY
 ------------------    ------------------------
<S>                    <C>
Worker's               Statutory Worker's
Compensation           Compensation $1,000,000
Employer's Liability   Employer's Liability

Commercial             $1,000,000 each
General Liability      occurrence $2,000,000
                       aggregate

Automobile Liability   $1,000,000 each accident
                       or loss All vehicles
                       including hired and
                       non-owned

Professional           $1,000,000 per
Liability              single claim/aggregate
(including
Pollution Errors
and Omissions)

Contractor Pollution   $ 1,000,000 per single
Liability Insurance    claim/aggregate
</TABLE>

     WESTON will, upon request, furnish appropriate insurance certificates to
CLIENT. WESTON agrees to indemnify CLIENT for the hazards covered by WESTON's
insurance subject to the limitation of liability contained in Article 18. WESTON
agrees to purchase such additional insurance as may be requested by CLIENT (if
such insurance is available), provided the costs (including WESTON's
administrative costs) for such additional insurance are reimbursed by CLIENT.

     17. INDEMNITY. Subject to the Limitation of Liability contained in Article
18 of this Agreement, WESTON shall defend, indemnify and hold CLIENT harmless
from liability for claims, liabilities, losses, costs, damages and expenses,
including attorneys' fees and expenses, for bodily injuries or death, property
loss or damage, caused solely by the negligent acts or omissions or willful
misconduct of WESTON, provided that WESTON shall not be responsible for and
CLIENT shall defend, indemnify and hold WESTON harmless from any such claims,
liabilities, losses, costs, damages and expenses, including attorneys' fees and
expenses, arising from the negligence, acts or omissions of CLIENT, or CLIENT'S
agents, representatives or employees.

     CLIENT shall defend, indemnify and hold WESTON harmless from all liability,
claims, losses, costs, damages and expenses, including attorneys' fees and
expenses, for personal injuries, including death, property loss or damage,
injuries to others (including employees of CLIENT, WESTON, and their
subcontractors), and air, water or ground pollution or environmental impairment
arising out of or in any manner connected with or related to the performance of
the Agreement, unless such injury, loss or damage is caused solely by the
negligent acts or omissions or willful misconduct of WESTON. CLIENT shall
indemnify, defend, and hold WESTON, its subsidiaries and affiliates, its
employees and agents harmless against all claims, liabilities, losses, costs,
damages and expenses, including attorneys' fees and expenses (other than
liability caused solely by WESTON's negligent acts or willful misconduct)
arising from or in connection with the violation or alleged violation of
CLIENT'S or any third Party's trade secrets, proprietary information, trademark,
copyright or patent rights in connection with the performance of the Work
hereunder. CLIENT'S obligation to indemnify, defend and hold harmless WESTON or
any employee or agent under this or any other provision of this Agreement will
survive the expiration or termination of this Agreement. WESTON shall promptly
notify CLIENT of any third Party claim known to WESTON and CLIENT may, at its
option, participate in the defense of any such third Party action and WESTON
shall cooperate with such defense.

     Claims against WESTON under this Indemnity provision are considered
disputes and shall be subject to Article 25 hereunder.

     18. LIMITATION OF LIABILITY. Notwithstanding any other provision of these
General Terms and Conditions, and unless a higher limit of liability is
expressly provided elsewhere in this Agreement in a provision making specific
reference to this Article 18, WESTON's total liability to CLIENT for any loss or
damage from claims under, arising out of or in connection with this Agreement
from any cause, matter or event, including but not limited to WESTON's strict
liability, breach of contract, tort or professional negligence, errors or
omissions and/or any other basis, shall not exceed the lesser of (a) the total
amount paid by CLIENT to WESTON under this Agreement or (b) the proceeds, if
any, available from WESTON's liability insurance as specified in Article 16
hereof. CLIENT hereby releases WESTON from any liability exceeding such limited
amount. In no event shall either Party be liable to the other for special,
indirect, punitive, incidental or consequential damages whether or not such
damages were foreseeable at the time of the commencement of the Work.

     19. WESTON EMPLOYEES. During the term of this Agreement and for a period of
six (6) months after completion or termination of this Agreement, CLIENT shall
not offer to employ or actually employ any WESTON employee assigned to the Work.
CLIENT agrees that WESTON may utilize employees of any of WESTON's subsidiary
companies and affiliates in the performance of this Agreement

     20. SITE CONDITIONS/SITE ACCESS. CLIENT will provide WESTON access to the
site. Before the start of work, CLIENT shall provide WESTON or advise WESTON of
the location of any and all existing environmental information, including but
not limited to, studies, reports, laboratory analyses and underground facilities
known to CLIENT or in CLIENT'S possession or control or which it has reason to
believe exist which may be pertinent to the Work. WESTON shall not be liable for
damage, or bodily injury or death arising from damage, to subterranean
structures (e.g., pipes, tanks, cables, etc.) when such structures are not
called to WESTON's attention and/or accurately shown on plans furnished to
WESTON by CLIENT in connection with the Work performed under this Agreement
CLIENT represents that it has obtained or will obtain permission on behalf of
WESTON to enter all property required for inspection and performance of WESTON's
services hereunder, including any access agreements, from all necessary Parties
before start of the Work on such property.

     21. CONFIDENTIALITY. WESTON shall maintain as confidential and not disclose
to others without CLIENT'S prior written consent, any information or documents
obtained from CLIENT expressly designated by the CLIENT in writing to be
"CONFIDENTIAL." The provisions of this Article shall not apply to information in
any form which (a) is published or comes into the public domain, (b) is already
known to or by the receiving Party, (c) is furnished by or obtained from a third
Party which is under no obligation to keep the information confidential, or (d)
is required to be disclosed by law or pursuant to a court order or subpoena of a
court, administrative agency or other authority with proper jurisdiction.

     Notwithstanding anything to the contrary set forth herein, it is understood
by CLIENT that WESTON is or may be subject to certain legal and ethical
considerations and obligations depending upon the nature and Scope of Work
rendered hereunder which may require WESTON to disclose facts observed by WESTON
to third Parties. In such event, WESTON shall advise CLIENT, but shall, subject
to any legal or professional obligation as determined by WESTON's counsel to
immediately disclose such facts, refrain from making any such disclosure until
WESTON and CLIENT have conferred with respect to such facts. If for any reason
the Parties are unable to confer or if WESTON believes on the advice of counsel
that it must disclose such facts, WESTON shall notify CLIENT of its intention to
disclose such information prior to actual disclosure to third Parties. Any such
disclosure shall not be deemed a violation or breach of this Agreement and
CLIENT agrees that WESTON shall be and is hereby released from any liability,
claim or cause of action whatsoever with respect to such disclosure.

     CLIENT agrees that WESTON may use and publish CLIENT'S name and a general
description of WESTON's services with respect to the Work in describing WESTON's
experience and qualifications to other clients

                                   Page 3 of 4
<PAGE>

                 WESTON GENERAL TERMS AND CONDITIONS (CONTINUED)

and potential clients.

     WESTON's technical and pricing information contained in the Proposal or
Agreement is considered confidential, proprietary information constituting a
trade secret and is not to be disclosed or otherwise made available to third
Parties without the prior written consent of WESTON.

     22. USE OF PROJECT RECORDS. All Project Records, including but not limited
to, drawings and specifications, prepared or furnished by WESTON (including
WESTON's independent professional associates, consultants and subcontractors)
pursuant to this Agreement are instruments of service regarding the Work. CLIENT
may make and retain copies for information and reference in connection with the
Work; however, Project Records are not intended or represented to be suitable
for any use other than the use specified in the Contract Documents. Any reuse of
Project Records without prior written verification or adaptation by WESTON for
the specific purpose intended in this Agreement will be at CLIENT'S sole risk
and exposure and without liability or legal exposure to WESTON, or to WESTON's
independent professional associates, consultants or subcontractors. CLIENT shall
indemnify, defend and hold harmless WESTON and WESTON's independent professional
associates, consultants and subcontractors from and against any and all claims,
liabilities, losses, costs, damages and expenses whatsoever, including
attorneys' fees and expenses, arising out of or resulting from reuse of any such
Project Records without WESTON's express, prior written approval of reuse. Any
verification or adaptation agreed to by WESTON will entitle WESTON to
compensation at rates to be agreed upon by CLIENT and WESTON at that time.

     23. RECORDS RETENTION. It is WESTON's practice and policy to retain Project
Records including reports, drawings and correspondence developed during
performance of the Agreement for a period of three (3) years after project
completion. Such records may be maintained on electronic or other media, as
WESTON may deem appropriate. In the event CLIENT desires Project Records to be
maintained for an additional period of time or in specific media, upon CLIENT'S
written request to WESTON, such records shall either (a) be delivered to CLIENT
or (b) be retained by WESTON for additional period(s) of time for a reasonable
additional charge.

     24. SERVICES. It is understood and agreed that the Work performed and
related products furnished to CLIENT under this Agreement are not subject to any
provision of any Uniform Commercial Code.

     25. DISPUTES. Unless the law provides a shorter limitations period (in
which event that shorter limitations period shall apply), all disputes between
the Parties arising out of or in connection with this Agreement must be brought
within three (3) years of the commencement of the Work hereunder. All disputes
between the Parties arising out of or in connection with this Agreement shall be
resolved by submission to Mediation and Arbitration in Philadelphia, PA, or such
other place as otherwise agreed in writing by the Parties as described below:

     (A) MEDIATION

     The Parties shall attempt in good faith to mediate each dispute and use
their best efforts to reach agreement on the matters in dispute. Either Party
may make written request for non-binding mediation, which shall specify in
reasonable detail the facts of the dispute, and within ten (10) days from the
date of delivery of the demand, the matter shall be submitted to Mediation in
accordance with the American Arbitration Association Construction Industry
Mediation Rules. The Mediator shall hear the matter and, if requested by the
Parties, provide an informal opinion and advice, none of which shall be binding
upon the Parties, but is expected by the Parties to help resolve the dispute.
Said informal opinion and advice shall be submitted to the Parties within twenty
(20) days following written request for same. The Mediator's fee shall be shared
equally by the Parties. If the dispute has not been resolved within 120 days of
submission of the request for Mediation, the matter shall then be submitted to
Arbitration in accordance with Article 25(B) below:

     (B) ARBITRATION

     All claims, counterclaims, disputes and other matters in dispute between
the Parties hereto arising out of or relating to this Agreement or the breach
thereof not otherwise resolved in accordance with Article 25(A) hereof shall be
decided by Arbitration in Philadelphia, PA, or such other places as otherwise
agreed in accordance with the Construction Industry Arbitration Rules of the
American Arbitration Association then obtaining, subject to the limitations and
restrictions stated in Article 25(B)(1) and Article 25(B)(2) below. This
Agreement to so arbitrate and any other agreement or consent to arbitrate will
be specifically enforceable under the prevailing arbitration law by any court
having jurisdiction.

          (1) Notice of demand for arbitration must be filed in writing with the
other Party or Parties to this Agreement and with the American Arbitration
Association. The demand must be made within a reasonable time after the claim,
dispute or other matter in question has arisen. In no event may the demand for
Arbitration be made after the time when institution of legal or equitable
proceedings, based on such claim, dispute or other matter in question, would be
barred by this Agreement or by the applicable statute of limitations or statute
of repose.

          (2) No arbitration arising out of or relating to this Agreement may
include, by consolidation, joinder or in any other manner, any person or entity
who is not a Party to this Agreement.

          (3) Only by written consent signed by all the Parties to this
Agreement and containing a specific reference thereto, may the limitations and
restrictions contained in Article 25(B)(1) and Article 25(B)(2) be waived in
whole or in part as to any claim, counterclaim, dispute or other matter.

          (4) The award rendered by the arbitrators will be final, not subject
to appeal, and judgment may be entered upon it in any court having jurisdiction
thereof.

          (5) In the event of any disputes between the Parties to this Agreement
the Arbitrator shall award the prevailing party, in addition to all other
appropriate relief, its reasonable costs and attorney's fees.

     26. NO THIRD PARTY BENEFICIARY. WESTON's services are performed for the
sole and exclusive benefit of CLIENT. This Agreement does not create, and is not
intended to create, any right or benefit for anyone other than CLIENT and
WESTON.

     27. SALES AND USE TAX. Pending a final ruling by appropriate tax
authorities with respect to the imposition of a State Sales and Use Tax
applicable to WESTON's professional services, CLIENT acknowledges that the
obligation to pay sales and use tax, if ruled applicable to WESTON's services,
is CLIENT'S obligation as purchaser. CLIENT agrees to pay such sales and use tax
and hereby releases, indemnifies and holds WESTON harmless from any and all
claims related to sales and use tax as it applies to WESTON's professional
services provided under this Agreement.

     28. SEVERABILITY/SAVINGS. The provisions of this Agreement shall be deemed
severable and the invalidity or unenforceability of any of the provisions hereof
shall not affect the validity and enforceability of the other provisions hereof.
If any provision of this Agreement is unenforceable, for any reason whatsoever,
such provision shall be appropriately limited and given effect to the extent
that it may be enforceable.

     29. ASSIGNMENT. Neither Party shall assign, or otherwise transfer this
Agreement or any rights or obligations hereunder to a subsidiary, successor,
affiliate or any third Party, except as expressly provided herein, without the
prior written consent of the other Party. Any attempted assignment will be null
and void and without force and effect. Nothing hereunder shall prevent WESTON
from employing such professional associates, subcontractors and consultants as
WESTON deems appropriate to assist WESTON in the performance of services.

     30. LITIGATION SERVICES. CLIENT and WESTON agree that the Work performed
hereunder may involve some form of legal process or proceedings during or after
performance of the project. Such legal process or proceedings may include
production of records, forms of discovery such as depositions and
interrogatories, filings and court testimony.

     CLIENT agrees that if WESTON is required to participate in or otherwise
respond to such legal process or proceedings in which WESTON is not a Party,
CLIENT shall compensate WESTON for its efforts in so doing, including but not
limited to, expenses, labor, document reproduction costs, travel expenses, legal
fees, etc., reasonably incurred in connection with its efforts in responding to
such legal process or proceedings.

     31. GOVERNING LAW. The interpretation and enforcement of this Agreement is
to be governed by and construed in accordance with the laws of the Commonwealth
of Pennsylvania.

     32. ENTIRE AGREEMENT. This Agreement represents the entire and integrated
Agreement between the Parties and supersedes all other prior negotiations,
representations or agreements, either written or oral.

     Any terms and conditions set forth in CLIENT'S purchase order, requisition,
or other notice of authorization to proceed are inapplicable to the Work, except
when specifically provided for in full on the face of such purchase order,
requisition, or notice or authorization and specifically accepted in writing by
WESTON. WESTON's acknowledgment of receipt of any purchase order, requisition,
notice or authorization or WESTON's performance of Work subsequent to receipt
thereof does not constitute acceptance of any terms or conditions other than
those set forth in this Agreement.

                                                   (WESTON SOLUTIONS, (TM) LOGO)
WS09-O5-002/A-O7/01      (C) 1991, 1995, 1999, 2001, 2002 Weston Solutions, Inc.
                                                                       02P -0926

                                   Page 4 of 4
<PAGE>

Scope of Work for Facility Startup (WO# 13083.001.004) will include:

     -    Startup, troubleshooting, and optimization of process operations.

     -    A trip to IBR for process training.

     -    Customizing IBR's generic O&M manual to make it specific to the
          processing operations and equipment at the Harlem River Site.

     -    Preparing as-built drawings.

                                        4                            3 JUNE 2003

<PAGE>

<TABLE>
<CAPTION>
                                        INVOICE AMOUNT   TOTAL INVOICED
                                        --------------   --------------
<S>                    <C>              <C>              <C>
PROJECT # 13083.001
12/10/2003             DEC2003-002632      70,000.00        70,000.00
3/5/2004               MAR2004-02298      132,300.00       202,300.00
6/1/2004               JUN2004-02006       20,000.00       222,300.00
8/30/2004              SEP2004-02180       53,680.00       275,980.00
10/18/2004             OCT2004-03659      124,896.00       400,876.00
12/2/2004              DEC2004-02821      103,578.00       504,454.00
1/7/2005               JAN2005-02212       50,040.00       554,494.00
2/10/2005              2005-02983           2,753.48       557,247.48
3/1/2005               MAR2005-02823        1,709.00       558,956.48

PROJECT # 13083.002
4/26/2005              APR2005-02822       13,500.00        13,500.00

PROJECT # 13083.003
5/26/2005              MAY2005-04483       22,885.81        22,885.81
                                                          -----------
   TOTAL INVOICED                                          595,342.29
      pd MOHRRY 2003                                       (75,376.00)
      pd COI 4/28/06                                       (40,000.00)
                                                          -----------
   TOTAL PAID                                             (115,376.00)
   BALANCE DUE                                             479,966.29
                                                          ===========
</TABLE>
<PAGE>

                             WESTON SOLUTIONS, INC.
                                 ONE WALL STREET
                              MANCHESTER, NH 03101

                 AUTHORIZATION FOR CONTRACT MODIFICATION NO.: 01

Project Description: Harlem River Yard Facility Design Weston Solutions Project
No.: 13083.001.001

This document describes the extra effort that has been and continues to be
required to complete the design of the Harlem River Yard Food Waste Processing
Facility (now known as the Woodbridge Facility), above and beyond which was
included in Weston Solutions, Inc.'s (WESTON(R)) original Scope of Work.
WESTON's original Scope of Work was based on a set of assumptions regarding the
information that we would receive from IBR. (See attached list of missing IBR
documentation).

In addition to these clearly defined omissions, several design issues have come
to light while performing the initial design tasks.

     1.   The IBR facility in Vancouver currently does not have a process for
          effectively concentrating the liquid product. Therefore, IBR has
          provided no information on how this could effectively be accomplished.
          As WESTON has investigated the use of an evaporator to concentrate the
          filtrate, we have uncovered some serious issues relating to
          corrosivity of the filtrate (particularly at high temperatures) and
          the production of a high BOD wastewater (BOD = approximately 3,000
          milligrams per liter) that would need to be treated prior to discharge
          to the sewer.

     2.   The only information that IBR has been able to give us regarding
          membrane filtration is that US Filter was unable to use membrane
          filtration for this application because the filtrate rapidly blinded
          the membrane. As a result, WESTON has had to perform a considerable
          amount of research to design a process that will successfully
          concentrate the filtrate, including pilot testing of membrane
          filtration, corrosion testing of metals, and design of a method of
          handling the wastewater generated by the process.

     3.   While performing research on the corrosion hazards in the evaporator,
          WESTON discovered that other equipment such as the digesters may be
          subject to stress corrosion cracking because of the chloride
          concentrations and the high temperatures experienced in these tanks.
          More research has been required to determine if 316L stainless steel
          is appropriate for these tanks.

     4.   It has become apparent that shearators are not suitable for aeration
          of all tanks because they cannot operate effectively unless the tank
          is full. Tanks that are typically undergoing filling and emptying
          cycles (i.e., filter press feed tank) must be modified somehow to
          accommodate the shearators.

                                       1                         October 6, 2004

<PAGE>

     5.   There is inadequate information available for sizing of the dryer. An
          accurate heat transfer coefficient is required to size the dryer. IBR
          cannot provide this information.

     6.   To determine if membrane filtration is a viable technology for
          concentrating the liquid product, WESTON is conducting pilot testing.
          This is an additional cost.

WESTON's current estimate for the additional engineering costs is $150,000. This
includes $60,000 to perform the basic engineering tasks to fill in the
information not supplied by IBR and $90,000 for the research and conceptual
engineering for the liquid product concentration system and associated
wastewater treatment.

<TABLE>
<S>                                                       <C>
TOTAL Contract Modification No. 1:                        $150,000
Original Contract Sum (including any previous changes):   $500,000
NEW CONTRACT SUM:                                         $650,000
</TABLE>

Approved for Mining Organics Management:   Approved for Weston Solutions, Inc.
Mr. Willam Gildea                          Donald (Buzz) Grogan, P.E., DEE
President                                  Vice President, General Manager

/s/ Willam Gildea                10/6/04   /s/ Donald (Buzz) Grogan      10/6/04
------------------------------   Date      ---------------------------   Date
Signature                                  Signature

                                       2                         October 5, 2004<PAGE>
                                                                    Exhibit 10.1

                       SECOND LOAN MODIFICATION AGREEMENT

     This Second Loan Modification Agreement (this "Loan Modification
Agreement") is entered into as of June 15, 2006, by and between SILICON VALLEY
BANK, a California-chartered bank, with its principal place of business at 3003
Tasman Drive, Santa Clara, California 95054 and with a loan production office
located at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton,
Massachusetts 02462 ("Bank") and APPLIX, INC., a Massachusetts corporation with
its chief executive office located at 289 Turnpike Road, Westboro, Massachusetts
01581 ("Borrower").

1.   DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other
indebtedness and obligations which may be owing by Borrower to Bank, Borrower is
indebted to Bank pursuant to a loan arrangement dated as of March 19, 2004,
evidenced by, among other documents, a certain Loan and Security Agreement dated
as of March 19, 2004, between Borrower and Bank, as amended by that certain
First Loan Modification Agreement dated as of April 14, 2005 (as amended, the
"Loan Agreement"). Capitalized terms used but not otherwise defined herein shall
have the same meaning as in the Loan Agreement.

2.   DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the
Collateral as described in the Loan Agreement (together with any other
collateral security granted to Bank, the "Security Documents"). Hereinafter, the
Security Documents, together with all other documents evidencing or securing the
Obligations shall be referred to as the "Existing Loan Documents".

3.   DESCRIPTION OF CHANGE IN TERMS.

     A. Modifications to Loan Agreement.

          1.   The Loan Agreement shall be amended by adding the following new
               subsections to Section 2.4 thereof:

                    "(e) Termination Fee. If, pursuant to this Agreement, the
                    Borrower is acquired prior to the Term Loan Maturity Date,
                    Borrower shall promptly pay bank an early termination fee
                    equal to Sixty-Five Thousand Dollars ($65,000.00).

                    (f) Term Loan Commitment Fee. A fully earned, non-refundable
                    facility fee of thirty thousand ($30,000.00) is due and
                    payable on June 15, 2006."

          2.   The Loan Agreement shall be amended by inserting the following
               new section, Section 2.1.7, in its appropriate numerical place
               therein:

               "2.1.7 TERM LOAN.

               (a) Availability. Bank shall make one (1) loan available to
               Borrower in an amount up to the Term Loan on June 15, 2006,
               subject to the satisfaction of the terms and conditions of this
               Agreement.

               (b) Interest Rate. The principal amount outstanding under the
               Term Loan shall accrue interest at a floating per annum rate
               equal to the Term Loan Interest Rate.

               (c) Interest Payments. Commencing on July 1, 2006, and continuing
               on the Term Loan Payment Date of each month thereafter, Borrower
               shall make monthly payment of interest only, at the rate set
               forth in Section 2.1.7(b).

<PAGE>

               (d) Repayment. Commencing on October 1, 2006, and continuing on
               the Term Loan Payment Date of each month thereafter, Borrower
               shall repay the Term Loan in (i) thirty-six (36) equal
               installments of principal, plus (ii) monthly payments of accrued
               interest (the "TERM LOAN PAYMENT"). Borrower's final Term Loan
               Payment, due on the Term Loan Maturity Date, shall include all
               outstanding principal and accrued and unpaid interest under the
               Term Loan."

          3.   The Loan Agreement shall be amended by deleting the following
               provision appearing as subsection (a) of Section 6.2 thereof:

                    "(a) Borrower shall deliver to Bank: (i) as soon as
                    available, but no later than thirty (30) days after the last
                    day of each month, a company prepared consolidated balance
                    sheet and income statement covering Borrower's consolidated
                    operations during the immediately preceding month certified
                    by a Responsible Officer and in a form reasonably acceptable
                    to Bank; (ii) as soon as available, but no later than one
                    hundred twenty (120) days after the last day of Borrower's
                    fiscal year, audited consolidated financial statements
                    prepared under GAAP, consistently applied, together with an
                    unqualified opinion on the financial statements from an
                    independent certified public accounting firm reasonably
                    acceptable to Bank; (iii) within five (5) Business Days of
                    filing, copies of all statements, reports and notices made
                    available to Borrower's security holders or to any holders
                    of Subordinated Debt and all reports on Form 10-K, 10-Q and
                    8-K filed with the Securities and Exchange Commission; (iv)
                    a prompt report of any legal actions pending or threatened
                    against Borrower or any Subsidiary that is reasonably likely
                    to result in damages or costs to Borrower or any Domestic
                    Subsidiary of One Hundred Thousand Dollars ($100,000.00) or
                    more; and (v) annually, and as revised, Board approved
                    quarterly financial and operating plans and (vi) other
                    financial information reasonably requested by Bank."

               and inserting in lieu thereof the following:

                    "(a) Borrower shall deliver to Bank: (i) as soon as
                    available, but no later than thirty (30) days after the last
                    day of each month, a company prepared consolidated balance
                    sheet and income statement covering Borrower's consolidated
                    operations during the immediately preceding month certified
                    by a Responsible Officer and in a form reasonably acceptable
                    to Bank; (ii) as soon as available, but no later than one
                    hundred twenty (120) days after the last day of Borrower's
                    fiscal year, audited consolidated financial statements
                    prepared under GAAP, consistently applied, together with an
                    unqualified opinion on the financial statements from an
                    independent certified public accounting firm reasonably
                    acceptable to Bank; (iii) within five (5) Business Days of
                    filing, copies of all statements, reports and notices made
                    available to Borrower's security holders or to any holders
                    of Subordinated Debt and all reports on Form 10-K, 10-Q and
                    8-K filed with the Securities and Exchange Commission; (iv)
                    a prompt report of any legal actions pending or threatened
                    against Borrower or any Subsidiary that is reasonably likely
                    to result in damages or costs to Borrower or any Domestic
                    Subsidiary of One Hundred Thousand Dollars ($100,000.00) or
                    more; and (v) annually, and as revised, but no later than
                    thirty (30) days after the date of Board approval, Board
                    approved quarterly financial and operating plans and (vi)
                    other financial information reasonably requested by Bank."

<PAGE>

          4.   The Loan Agreement shall be amended by inserting the following
               sentence to appear at the end of Section 6.6(a) thereof:

               "Any Guarantor shall maintain all depository, operating and
               securities accounts with Bank, or SVB Securities."

          5.   The Loan Agreement shall be amended by deleting the following
               first sentence in Section 6.7 entitled "Financial Covenants" in
               its entirety:

                    "Borrower shall maintain at all times, to be tested as of
                    the last day of each month, unless otherwise noted:"

               and inserting in lieu thereof the following:

                    "Borrower shall maintain at all times, to be tested as of
                    the last day of each month, unless otherwise noted, on a
                    consolidated basis:"

          6.   The Loan Agreement shall be amended by deleting the following
               provision appearing as subsection (b) of Section 6.7 thereof:

                    "(b) EBITDA. Borrower shall have: (i) quarterly EBITDA
                    losses not to exceed: (A) Five Hundred Thousand Dollars
                    ($500,000.00) for the quarter ending March 31, 2005, and (B)
                    One Hundred Thousand Dollars ($100,000.00) for the quarter
                    ending June 30, 2005; and (ii) quarterly positive EBITDA of
                    at least: (A) Two Hundred Fifty Thousand Dollars
                    ($250,000.00) for the quarter ending September 30, 2005, and
                    (B) Two Million Dollars ($2,000,000.00) for the quarter
                    ending December 31, 2005; and (C) the greater of either (i)
                    One Dollar ($1.00) or (ii) fifty (50.0%) percent of the
                    Borrower's board of director's approved operating plan for
                    Borrower for the quarter ending March 31, 2006 and as of the
                    last day of each quarter thereafter."

               and inserting in lieu thereof the following:

                    "(b) EBITDA. Borrower shall have: (i) quarterly positive
                    EBITDA of at least: (A) One Million Dollars ($1,000,000.00)
                    for the quarter ending June 30, 2006, (B) Seven Hundred
                    Fifty Thousand Dollars ($750,000.00) for the quarter ending
                    September 30, 2006, (C) One Million Five Hundred Thousand
                    Dollars ($1,500,000.00) for the quarter ending December 31,
                    2006, and (D) the greater of either: (i) One Million Dollars
                    ($1,000,000.00) or (ii) seventy-five percent (75.0%) of the
                    Borrower's board of director's approved operating plan for
                    Borrower for the quarter ending March 31, 2007 and as of the
                    last day of each quarter thereafter."

          7.   The Loan Agreement shall be amended by inserting the following
               new provision to appear as Section 8.9 thereof:

               "8.9 GUARANTY. (a) Any guaranty of any Obligations terminates or
               ceases for any reason to be in full force and effect; (b) any
               Guarantor does not perform any obligation or covenant under any
               guaranty of the Obligations; (c) any circumstance described in
               Sections 8.3, 8.4, 8.5, 8.7, or 8.8. occurs with respect to any
               Guarantor; (d) the liquidation, winding up, or termination of
               existence of any Guarantor; or (e) a material adverse change in
               the general affairs,

<PAGE>

               management, results of operation, condition (financial or
               otherwise) or the prospect of repayment of the Obligations occurs
               with respect to any Guarantor."

          8.   The Loan Agreement shall be amended by deleting the following
               definitions appearing in Section 13.1 thereof:

                    ""CREDIT EXTENSION" is each Advance, Equipment Advance,
                    Letter of Credit, F/X Forward Contract, or any other
                    extension of credit by Bank for Borrower's benefit."

                    ""EBITDA" means earnings before interest, taxes,
                    depreciation and amortization in accordance with GAAP."

                    ""GUARANTOR" is any present or future guarantor of the
                    Obligations."

                    ""REVOLVING MATURITY DATE" is March 18, 2007."

               and inserting in lieu thereof:

                    ""CREDIT EXTENSION" is any Advance, Equipment Advance,
                    Letter of Credit, Term Loan, FX Forward Contract, amount
                    utilized for Cash Management Services, or any other
                    extension of credit by Bank for Borrower's benefit."

                    ""EBITDA" means earnings before interest, taxes,
                    depreciation and amortization in accordance with GAAP, plus
                    non-cash stock compensation expenses, foreign exchange gains
                    or losses, adjustments for purchase accounting, and other
                    non-cash expenses as reasonably determined by Borrower and
                    allowed by Bank."

                    ""GUARANTOR" is any present or future guarantor of the
                    Obligations, including, without limitation, Applix
                    Securities Corp."

                    ""REVOLVING MATURITY DATE" is June 18, 2007."

          9.   The Loan Agreement shall be amended by inserting the following
               definitions in their appropriate alphabetical order in Section
               13.1 thereof:

                    ""TERM LOAN" is an aggregate amount equal to Six Million
                    Five Hundred Thousand Dollars ($6,500,000.00) outstanding at
                    any time."

                    ""TERM LOAN INTEREST RATE" is the floating per annum rate
                    equal to three-quarters of one percentage points (0.75%)
                    above the Prime Rate."

                    ""TERM LOAN MATURITY DATE" is September 1, 2009."

                    ""TERM LOAN PAYMENT" is defined in Section 2.1.7(c)."

                    ""TERM LOAN PAYMENT DATE" is the first day of each calendar
                    month."

          10.  The Compliance Certificate appearing as Exhibit D to the Loan
               Agreement is hereby replaced with the Compliance Certificate
               attached as Exhibit A hereto.

<PAGE>

4.   FEES. Borrower shall pay to Bank a modification fee equal to Three Thousand
Seven Hundred and Fifty Dollars ($3,750.00) due and payable on the date hereof.
Borrower shall also reimburse Bank for all legal fees and expenses incurred in
connection with this amendment to the Existing Loan Documents.

5.   RATIFICATION OF NEGATIVE PLEDGE. Borrower hereby ratifies, confirms and
reaffirms, all and singular, the terms and conditions of a certain Negative
Pledge Agreement dated as of March 19, 2004, between Borrower and Bank, and
acknowledges, confirms and agrees that said Negative Pledge Agreement shall
remain in full force and effect.

6.   CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
necessary to reflect the changes described above.

7.   RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and
reaffirms all terms and conditions of all security or other collateral granted
to the Bank, and confirms that the indebtedness secured thereby includes,
without limitation, the Obligations.

8.   NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that
Borrower has no offsets, defenses, claims, or counterclaims against Bank with
respect to the Obligations, or otherwise, and that if Borrower now has, or ever
did have, any offsets, defenses, claims, or counterclaims against Bank, whether
known or unknown, at law or in equity, all of them are hereby expressly WAIVED
and Borrower hereby RELEASES Bank from any liability thereunder.

9.   CONTINUING VALIDITY. Borrower understands and agrees that in modifying the
existing Obligations, Bank is relying upon Borrower's representations,
warranties, and agreements, as set forth in the Existing Loan Documents. Except
as expressly modified pursuant to this Loan Modification Agreement, the terms of
the Existing Loan Documents remain unchanged and in full force and effect.
Bank's agreement to modifications to the existing Obligations pursuant to this
Loan Modification Agreement in no way shall obligate Bank to make any future
modifications to the Obligations. Nothing in this Loan Modification Agreement
shall constitute a satisfaction of the Obligations. It is the intention of Bank
and Borrower to retain as liable parties all makers of Existing Loan Documents,
unless the party is expressly released by Bank in writing. No maker will be
released by virtue of this Loan Modification Agreement.

10.  COUNTERSIGNATURE. This Loan Modification Agreement shall become effective
only when it shall have been executed by Borrower and Bank.

            [The remainder of this page is intentionally left blank]

<PAGE>

     This Loan Modification Agreement is executed as a sealed instrument under
the laws of the Commonwealth of Massachusetts as of the date first written
above.

BORROWER:                                          BANK:

APPLIX, INC.                                       SILICON VALLEY BANK

By: /s/ Milton A. Alpern                           By: /s/ Michael J. Fell
    --------------------                              --------------------

Name: Milton A. Alpern                             Name: Michael J. Fell
      -----------------                                  -----------------

Title: Chief Financial Officer                     Title: Relationship Manager
       -----------------------                            --------------------

<PAGE>

                                    EXHIBIT A
                             COMPLIANCE CERTIFICATE

TO: SILICON VALLEY BANK
FROM: APPLIX, INC.

The undersigned authorized officer of Applix, Inc. certifies that under the
terms and conditions of the Loan and Security Agreement between Borrower and
Bank (the "Agreement"), (i) Borrower is in complete compliance for the period
ending _______________ with all required covenants except as noted below and
(ii) all representations and warranties in the Agreement are true and correct in
all material respects on this date. Attached are the required documents
supporting the certification. The Officer certifies that these are prepared in
accordance with Generally Accepted Accounting Principles (GAAP) consistently
applied from one period to the next except as explained in an accompanying
letter or footnotes. The Officer acknowledges that no borrowings may be
requested at any time or date of determination that Borrower is not in
compliance with any of the terms of the Agreement, and that compliance is
determined not just at the date this certificate is delivered.

..PLEASE INDICATE COMPLIANCE STATUS BY CIRCLING YES/NO UNDER "COMPLIES" COLUMN.

<Table>
<Caption>

REPORTING COVENANT                                           REQUIRED                                 COMPLIES
------------------                                           --------                                 --------

<S>                                                          <C>                                     <C>
Monthly financial statements with CC                         Monthly within 30 days                   Yes   No
Annual (CPA Audited) with CC                                 FYE within 120 days                      Yes   No
Board Approved Financial Plans                               Annually, as revised within 30 days      Yes   No
BBC A/R Agings                                               Monthly within 30 days                   Yes   No
Audit                                                        Annually                                 Yes   No

</TABLE>

<Table>
<Caption>
FINANCIAL COVENANT                                               REQUIRED          ACTUAL             COMPLIES
------------------                                               --------          ------             --------

<S>                                                              <C>               <C>               <C>
Maintain on a Monthly Basis:
  Minimum Quick Ratio                                            1.50:1.0          _____:1.0          Yes   No

  Maintain on a Quarterly Basis
  Minimum EBITDA                                                 $_______*         $_______           Yes   No
* As set forth in Section 6.7(b) of the Agreement
</Table>

<Table>
<Caption>
<S>                                                              <C>
                                                                 ----------------------------------
                                                                 BANK USE ONLY
COMMENTS REGARDING EXCEPTIONS:  See Attached.                    Received by: _____________________
Sincerely,                                                                      AUTHORIZED SIGNER

_____________________________                                    Date:    _________________________
SIGNATURE

_____________________________                                    Verified: ________________________
TITLE                                                                           AUTHORIZED SIGNER

_____________________________                                    Date:    _________________________
DATE
                                                                 Compliance Status:      Yes     No
                                                                 ----------------------------------
</Table>

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