Document:

Exhibit 10.1

ALLSTATE
LIFE INSURANCE COMPANY

ALLSTATE INSURANCE COMPANY

INTERCOMPANY
NOTE

	
   

  	
  Amount: $500,000,000.00

  
	
   

  	
  Date of Issuance: December 27, 2006

  
	
   

  	
  Northbrook, Illinois

  

 

Allstate Life Insurance Company (the “Borrower”), for
value received, promises to pay to the order of Allstate Insurance Company (the
“Lender”), or its assigns, the outstanding balance of the principal sum of FIVE
HUNDRED MILLION DOLLARS ($500,000,000.00) in cash upon demand of the Lender
and, in any event, by March 30, 2007, and to pay interest on the unpaid
principal amount of this Note outstanding from the date of issuance until this
Note is paid in full at a rate equal to the rate that would be paid by The
Allstate Corporation on the date of issuance of this Note for 30 day commercial
paper.  All principal and interest shall
be paid at the principal corporate office of the Lender or such other place,
which shall be acceptable to the Borrower, as the Lender shall designate in
writing to the Borrower, in collected and immediately available funds in the lawful
money of the United States of America.

The Borrower shall have the right at any time and from
time to time to prepay all or any part of the principal balance of this Note
without penalty provided that any and all such prepayments shall include
accrued interest on the amount prepaid.

This note shall be governed by and construed in
accordance with the laws of the State of Illinois.

IN WITNESS WHEREOF, the Borrower has caused this Note
to be executed in its name and attested to by its authorized officer, and its
corporate seal to be hereunto affixed, all as of the date first written above.

	
  

  	
  ALLSTATE LIFE INSURANCE
  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
  (CORPORATE SEAL)

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven C. Verney

  	
   

  
	
   

  	
   

  	
  Name: Steven C.
  Verney

  
	
   

  	
   

  	
  Title: Treasurer

  

 

Attest:
Mary J. McGinnExhibit 4.1

11% PROMISSORY NOTE

	
  $250,000

  	
  December 27, 2006

  

 

FOR
VALUE RECEIVED, Primal Solutions, Inc., a Delaware corporation (the “Company”),
unconditionally promises to pay to the order of Special Situations Private
Equity Fund, L.P. (the “Holder”), having an address at 527 Madison
Avenue, 26th Floor, New York, NY 10022, at such address or
at such other place as may be designated in writing by the Holder, or its
assigns, the aggregate principal sum of Two Hundred Fifty Thousand United
States Dollars ($250,000), together with interest from the date set forth above
on the unpaid principal balance of this Note outstanding at a rate equal to
eleven percent (11.0%) (computed on the basis of the actual number of days
elapsed in a 360-day year) per annum and continuing on the outstanding
principal until this 11% Promissory Note (the “Note”) is indefeasibly
and irrevocably paid in full by the Company. 
Subject to the other provisions of this Note, the principal of this Note
and all accrued and unpaid interest hereon shall mature and become due and
payable on June 27, 2007 (the “Stated Maturity Date”).  Except as provided herein, all payments of
principal and interest by the Company under this Note shall be made in United
States dollars in immediately available funds to an account specified by the
Holder.

In
the event that any amount due hereunder is not paid when due, such overdue
amount shall bear interest at an annual rate of fifteen percent (15%) until
paid in full.  In no event shall any
interest charged, collected or reserved under this Note exceed the maximum rate
then permitted by applicable law and if any such payment is paid by the
Company, then such excess sum shall be credited by the Holder as a payment of
principal.

1.                                       Definitions.  Unless the context otherwise requires, when
used herein the following terms shall have the meaning indicated:

“Affiliate”
shall mean, with respect to any Person, any other Person which directly or
indirectly through one or more intermediaries Controls, is controlled by, or is
under common control with, such Person.

“Board” shall mean the Board of Directors of
Company.

“Business Day” other than a Saturday or
Sunday, on which banks in New York City are open for the general transaction of
business.

“Company” has the meaning set forth in the first paragraph hereof.

“Control”
(including the terms “controlling”, “controlled by” or “under common control
with”) means the possession, direct or indirect, of the power to direct or
cause the direction of the management and policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.

“Event of Default” has the meaning set forth in Section 5
hereof.

“First Regional”  means First Regional Bank, a California
banking corporation, its successors and assigns.

 

“First Regional
Note” means the Change in Terms Agreement among the Company, its Subsidiary
and First Regional, dated February 14, 2006 (amending and restating the
Promissory Note, dated February 14, 2005, in the original principal amount of
$100,000.

“Hedging Agreement”
means any interest rate swap, collar, cap, floor or forward rate agreement or
other agreement regarding the hedging of interest rate risk exposure executed
in connection with hedging the interest rate exposure of any Person and any
confirming letter executed pursuant to such agreement, all as amended,
supplemented, restated or otherwise modified from time to time.

“Holder” has the meaning set forth in the first paragraph hereof.

“Indebtedness” means any liability or obligation (i) for borrowed
money, other than trade payables incurred in the ordinary course of business,
(ii) evidenced by bonds, debentures, notes, or other similar instruments, (iii)
in respect of letters of credit or other similar instruments (or reimbursement
obligations with respect thereto), except letters of credit or other similar
instruments issued to secure payment of trade payables or obligations in
respect of workers’ compensation, unemployment insurance and other social
security laws or regulation, all arising in the ordinary course of business
consistent with past practices, (iv) to pay the deferred purchase price of
property or services, except trade payables arising in the ordinary course of
business consistent with past practices, (v) as lessee under capitalized
leases, (vi) secured by a Lien on any asset of the Company or a Subsidiary,
whether or not such obligation is assumed by the Company or such Subsidiary.

“Investment”
means, for any Person: (a) the acquisition (whether for cash, property,
services or securities or otherwise) of capital stock, bonds, notes,
debentures, partnership or other ownership interests or other securities of any
other Person or any agreement to make any such acquisition (including, without
limitation, any “short sale” or any sale of any securities at a time when such
securities are not owned by the Person entering into such sale); (b) the making
of any deposit with, or advance, loan or other extension of credit to, any
other Person (including the purchase of property from another Person subject to
an understanding or agreement, contingent or otherwise, to resell such property
to such Person), but excluding any such advance, loan or extension of credit
having a term not exceeding 90 days arising in connection with the sale of
inventory or supplies by such Person in the ordinary course of business; (c)
the entering into of any guarantee of, or other contingent obligation with
respect to, Indebtedness or other liability of any other Person and (without
duplication) any amount committed to be advanced, lent or extended to such
Person; or (d) the entering into of any Hedging Agreement.

“Lien”
means any lien, mortgage, deed of trust, pledge, security interest, charge or
encumbrance of any kind (including any conditional sale or other title
retention agreement, any lease in the nature thereof and any agreement to give
any of the foregoing).

“Lightbridge”
means Lightbridge, Inc., its successors and assigns.

“Lightbridge
Note” means WBS’s 2006 Amended and Restated Secured Promissory Note, dated
March 31, 2006, in the original principal amount of $982,243.40.

“Material
Adverse Effect” means a material adverse effect on (i) the assets, results
of operations, condition (financial or otherwise), business, or prospects of
the Company

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and its Subsidiaries
taken as a whole, or (ii) the ability of the Company to perform its obligations
hereunder.

“Note” has the meaning set forth in the first paragraph hereof.

“Permitted Indebtedness” means:

(a)                                  Indebtedness existing on the Closing Date and
refinancings, renewals and extensions of any such Indebtedness if (i) the
average life to maturity thereof is greater than or equal to that of the
Indebtedness being refinanced or extended (ii) if the principal amount thereof
or interest payable thereon is not increased, (iii) no additional Liens are
granted and (iv) the terms thereof are not less favorable to the Company or the
Subsidiary incurring such Indebtedness than the Indebtedness being refinanced,
renewed or extended;

(b)                                 Guaranties by any Subsidiary of any “Permitted
Indebtedness” of the Company or another Subsidiary;

(c)                                  Indebtedness
representing the deferred purchase price of
property and capital lease obligations which collectively does not
exceed $1,500,000 in aggregate principal amount; and

(d)                                 Indebtedness of the Company to any wholly owned
Subsidiary and Indebtedness of any wholly owned Subsidiary to the Company or
another wholly owned Subsidiary which constitutes “Permitted Indebtedness.”

“Permitted
Investments” means:

(a)                                   direct
obligations of the United States of America, or of any agency thereof, or
obligations guaranteed as to principal and interest by the United States of
America, or of any agency thereof, in either case maturing not more than 90
days from the date of acquisition thereof;

(b)                                  certificates
of deposit issued by any bank or trust company organized under the laws of the
United States of America or any State thereof and having capital, surplus and
undivided profits of at least $500,000,000, maturing not more than 90 days from
the date of acquisition thereof; and

(c)                                   commercial
paper rated A-1 or better or P-1 by Standard & Poor’s Ratings
Services or Moody’s Investors Services, Inc., respectively, maturing not more
than 90 days from the date of acquisition thereof; in each case so long as the
same (x) provide for the payment of principal and interest (and not principal
alone or interest alone) and (y) are not subject to any contingency regarding
the payment of principal or interest.

“Permitted Liens” means:

(a)                                  restrictions on transfers of securities imposed
by applicable securities laws;

(b)                                 Liens on the property of a Person existing at the
time such Person became a Subsidiary or such property was acquired from such
Person in a transaction permitted hereunder securing Indebtedness permitted
hereby; provided, however, that any such Lien may not extend to any other
property (other than accessions to and proceeds thereof) provided, further,
that any such Lien was not created in anticipation of or in connection with the

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transaction
or series of transactions pursuant to which such Person became a Subsidiary or
such property was acquired from such Person;

(c)                                  assignments of insurance or condemnation proceeds
provided to landlords (or their mortgagees) pursuant to the terms of any lease
and Liens or rights reserved in any lease for rent or for compliance with the
terms of such lease;

(d)                                 Liens imposed by law for taxes that are not yet
due or are being contested in good faith and for which adequate reserves have
been established on the Company’s books and records in accordance with U.S.
generally accepted accounting principles, consistently applied;

(e)                                  carriers’, warehousemen’s, mechanics’,
materialmen’s, repairmen’s and other like Liens imposed by law, arising in the
ordinary course of business and securing obligations that are not overdue by
more than 30 days or that are being contested in good faith and by appropriate
proceedings;

(f)                                    pledges and deposits made in the ordinary course
of business in compliance with workers’ compensation, unemployment insurance
and other social security laws or regulations;

(g)                                 deposits to secure the performance of bids, trade
contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in each case in the ordinary
course of business;

(h)                                 easements, zoning restrictions, rights-of-way and
similar encumbrances on real property imposed by law or arising in the ordinary
course of business that do not secure any monetary obligations and do not materially
detract from the value of the affected property or interfere with the ordinary
conduct of business of the Company or any of its Subsidiaries; and

(i)                                     Liens granted to secure the obligations of the
Company or any Subsidiary under any Indebtedness permitted under clause (c) of
the definition of “Permitted Indebtedness” provided the Lien is limited to the
property acquired or so financed (and any accessions thereto and proceeds
thereof).

(j)                                     Liens granted to secure the Lightbridge Note; and

(k)                                  Liens granted to secure the First Regional Note
provided such Liens are limited to the Company’s right, title and interest in
the $100,000 savings account currently on deposit with First Regional.

“Person”
means an individual, corporation, partnership, limited liability company,
trust, business trust, association, joint stock company, joint venture, sole
proprietorship, unincorporated organization, governmental authority or any
other form of entity not specifically listed herein.

“Restricted
Payment” has the meaning set forth in
Section 4(b)(iv) hereof.

“Stated Maturity Date” has the meaning set forth in the first
paragraph hereof.

“Subsidiary”
of any Person means another Person, an amount of the voting securities, other
voting ownership or voting partnership interests of which is sufficient to
elect at least a majority of its Board of Directors or other governing body
(or, if there are no such voting

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interests, 50% or more of
the equity interests of which) is owned directly or indirectly by such first
Person.

“WBS” means
Wireless Billing Systems, a California corporation.

2.                                       Transfer.  This Note is transferable and assignable to
any Person to whom such transfer is permissible under applicable law.  The Company agrees to issue from time to time
a replacement Note in the form hereof to facilitate such transfers and
assignments.  In addition, after delivery
of an indemnity in form and substance reasonably satisfactory to the Company,
the Company also agrees to promptly issue a replacement Note if this Note is
lost, stolen, mutilated or destroyed.

3.                                       Prepayment.  This Note and all accrued interest hereon
may, at the option of the Company, be prepaid in whole, but not in part, at any
time prior to the Stated Maturity Date, without penalty.

4.                                       Covenants.

(a)                                  So
long as any amount due under this Note is outstanding and until indefeasible
payment in full of all amounts payable by the Company hereunder:

(i)                                     The
Company shall and shall cause each of its Subsidiaries to (A) carry on and
conduct its business in substantially the same manner and in substantially the
same fields of enterprise as it is presently conducting, (B) do all things
necessary to remain duly organized, validly existing, and in good standing as a
domestic corporation under the laws of its state of incorporation and (C)
maintain all requisite authority to conduct its business in those jurisdictions
in which its business is conducted.

(ii)                                  The
Company shall promptly notify the Holder in writing of any change in the
business or the operations the Company or any Subsidiary which could reasonably
be expected to have a Material Adverse Effect.

(iii)                               The
Company shall promptly notify the Holder of the occurrence of any Event of
Default or any event which, with the giving of notice, the lapse of time or
both would constitute an Event of Default, which notice shall include a written
statement as to such occurrence, specifying the nature thereof and the action
(if any) which is proposed to be taken with respect thereto.

(iv)                              The
Company shall promptly notify the Holder of any action, suit or proceeding at
law or in equity or by or before any governmental instrumentality or other
agency against the Company or any Subsidiary or to which the Company or any
Subsidiary may be subject which alleges damages in excess of One Hundred
Thousand United States Dollars ($100,000).

(v)                                 The
Company shall promptly notify the Holder of any default in the performance,
observance or fulfillment of any of the obligations, covenants or conditions
contained in any agreement or instrument to which the Company or any Subsidiary
is a party which default could reasonably be expected to have a Material
Adverse Effect.

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(vi)                              The
Company shall and shall cause each Subsidiary to pay when due all taxes,
assessments and governmental charges and levies upon it or its income, profits
or property, except those that are being contested in good faith by appropriate
proceedings and with respect to which adequate reserves have been set aside.

(vii)                           The
Company shall and shall cause each Subsidiary to comply with all laws, rules,
regulations, orders, writs, judgments, injunctions, decrees or awards to which
they may be subject except where the failure to so comply could not reasonably
be expected to have a Material Adverse Effect.

(viii)                        The
Company shall and shall cause each Subsidiary to use commercially reasonable
efforts to do all things necessary to maintain, preserve, protect and keep its
properties in good repair, working order and condition and use commercially
reasonable efforts to make all necessary and proper repairs, renewals and
replacements so that its business carried on in connection therewith may be
properly conducted.

(ix)                                Promptly
after the occurrence thereof, the Company shall and shall cause each Subsidiary
to inform the Holder of the following material developments: (i) entering into
material agreements outside the ordinary course of business consistent with
past practice, (ii) any issuance of debt securities by the Company or any
Subsidiary, (iii) the incurrence of any Indebtedness by the Company or any
Subsidiary, (iv) a change in the number of the Board of Directors of the
Company, (v) a sale, lease or transfer of any material portion of the assets of
the Company or any Subisdiary and (vi) any change in ownership of any
Subsidiary (specifying the details of any such change, including the identity
and ownership amount of any new owner).

(b)                                 So
long as any amount due under this Note is outstanding and until indefeasible
payment in full of all amounts payable by the Company hereunder, without the prior
written consent of the Holder:

(i)                                     The
Company shall not and shall cause each Subsidiary not to create, incur,
guarantee, issue, assume or in any manner become liable in respect of any
Indebtedness, other than Permitted Indebtedness.

(ii)                                  The
Company shall not and shall cause each Subsidiary not to create, incur, assume
or suffer to exist any Lien upon any of its property, whether now owned or
hereafter acquired other than Permitted Liens. 
The Company shall not, and shall cause each Subsidiary not to, be bound
by any agreement which limits the ability of the Company or any Subsidiary to
grant Liens.

(iii)                               The
Company shall not and shall cause each Subsidiary not to, directly or
indirectly, enter into or permit to exist any transaction or series of related
transactions (including, without limitation, the purchase, sale, lease or
exchange of any property or the rendering of any service) with, or for the
benefit of, any of its Affiliates other than a wholly owned Subsidiary, except
for consulting arrangements with directors approved by the Board.

(iv)                              The
Company shall not, and shall cause each of its Subsidiaries not to, directly or
indirectly, declare or pay any dividends on account of any shares of any class
or series of its capital stock now or hereafter outstanding, or set aside or
otherwise deposit or invest any

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sums for such
purpose, or redeem, retire, defease, purchase or otherwise acquire any shares
of any class of its capital stock (or set aside or otherwise deposit or invest
any sums for such purpose) for any consideration or apply or set apart any sum,
or make any other distribution (by reduction of capital or otherwise) in
respect of any such shares or pay any interest, premium if any, or principal of
any Indebtedness or redeem, retire, defease, repurchase or otherwise acquire
any Indebtedness (or set aside or otherwise deposit or invest any sums for such
purpose) for any consideration or apply or set apart any sum, or make any other
payment in respect thereof or agree to do any of the foregoing (each of the
foregoing is herein called a “Restricted Payment”); provided, that (i)
the Company may make payments of interest, premium if any, and principal of the
Notes in accordance with the terms hereof, (ii) provided that no Event of
Default or event which, with the giving of notice, the lapse of time or both
would constitute an Event of Default has occurred and is continuing, the
Company and its Subsidiaries may make regularly scheduled payments of interest
and principal of any Permitted Indebtedness, (iii) any Subsidiary directly or
indirectly wholly owned by the Company may pay dividends on its capital stock
and (iv) the Company may repurchase capital stock from a former employee in
connection with the termination or other departure of such employee, strictly
in accordance with the terms of any agreement entered into with such employee
and in effect on the date of this Note, provided that (A) such repurchase is
approved by a majority of the Board, (B) payments permitted under this clause
(iv) shall not exceed $1,000,000 in the aggregate, and (C) no such payment may
be made if an Event of Default or an event which, with the giving of notice,
the lapse of time or both would constitute an Event of Default has occurred and
is continuing or would result from such payment.

(v)                                 The
Company shall not and shall cause each Subsidiary not to make or own any
Investment in any Person, including without limitation any joint venture, other
than (A) Permitted Investments, (B) operating deposit accounts with banks, (C)
Hedging Agreements entered into in the ordinary course of the Company’s
financial planning and not for speculative purposes and (D) investments by the
Company in the capital stock of any wholly owned Subsidiary.

(vi)                              The
Company shall not and shall cause each Subsidiary not to, directly or
indirectly, become or remain liable as lessee or as a guarantor or other surety
with respect to any lease of any property (whether real, personal or mixed),
whether now owned or hereafter acquired, which the Company or any Subsidiary
(a) has sold or transferred or is to sell or to transfer to any other Person,
or (b) intends to use for substantially the same purpose as any other property
which has been or is to be sold or transferred by the Company or any Subsidiary
to any Person in connection with such lease.

(vii)                           The
Company shall not and shall cause each Subsidiary not to settle, or agree to
indemnify or defend third parties against, any material lawsuit, except as may
be required by judicial or regulatory order or by agreements entered into prior
to the date hereof on a basis consistent with past practice.  A material lawsuit shall be any lawsuit in
which the amount in controversy exceeds $100,000.

(viii)                        The
Company shall not and shall cause each Subsidiary not to amend its bylaws,
certificate of incorporation or other charter document in a manner adverse to
the Holder.

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5.                                       Event
of Default.  The occurrence of any of
following events shall constitute an “Event of Default” hereunder:

(a)                                  the
failure of the Company to make any payment of principal on this Note when due,
whether at maturity, upon acceleration or otherwise;

(b)                                 the
failure of the Company to make any payment of interest on this Note, or any
other amounts due hereunder when due, whether at maturity, upon acceleration or
otherwise, and such failure continues for more than five (5) days;

(c)                                  the
Company and/or its Subsidiaries fail to make a required payment or payments on
Indebtedness of One Hundred Thousand United States Dollars ($100,000) or more
in aggregate principal amount and such failure continues for more than ten (10)
days;

(d)                                 there
shall have occurred an acceleration of the stated maturity of any Indebtedness
of the Company or its Subsidiaries of One Hundred Thousand United States
Dollars ($100,000) or more in aggregate principal amount (which acceleration is
not rescinded, annulled or otherwise cured within ten (10) days of receipt by
the Company or a Subsidiary of notice of such acceleration);

(e)                                  the
Company makes an assignment for the benefit of creditors or admits in writing
its inability to pay its debts generally as they become due; or an order,
judgment or decree is entered adjudicating the Company as bankrupt or
insolvent; or any order for relief with respect to the Company is entered under
the Federal Bankruptcy Code or any other bankruptcy or insolvency law; or the
Company petitions or applies to any tribunal for the appointment of a
custodian, trustee, receiver or liquidator of the Company or of any substantial
part of the assets of the Company, or commences any proceeding relating to it
under any bankruptcy, reorganization, arrangement, insolvency, readjustment of
debt, dissolution or liquidation law of any jurisdiction; or any such petition
or application is filed, or any such proceeding is commenced, against the
Company and either (i) the Company by any act indicates its approval thereof,
consents thereto or acquiescence therein or (ii) such petition application or
proceeding is not dismissed within sixty (60) days;

(f)                                    a
final, non-appealable judgment which, in the aggregate with other outstanding
final judgments against the Company and its Subsidiaries, exceeds One Hundred
Thousand United States Dollars ($100,000) shall be rendered against the Company
or a Subsidiary and within sixty (60) days after entry thereof, such judgment
is not discharged or execution thereof stayed pending appeal, or within sixty
(60) days after the expiration of such stay, such judgment is not discharged;
provided, however, that a judgment that provides for the payment of royalties
subsequent to the date of the judgment shall be deemed to be discharged so long
as the Company or the Subsidiary affected thereby is in compliance with the
terms of such judgment;

(g)                                 the
Company is in breach of the requirements of Section 4(b) hereof;

Upon the occurrence of any such Event of Default all unpaid principal and
accrued interest under this Note shall become immediately due and payable (A)
upon election of the Holder, with respect to (a) through (d) and (f) through
(g), and (B) automatically, with

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respect
to (e).  Upon the occurrence of any Event
of Default, the Holder may, in addition to declaring all amounts due hereunder
to be immediately due and payable, pursue any available remedy, whether at law
or in equity.  If an Event of Default
occurs, the Company shall pay to the Holder the reasonable attorneys’ fees and
disbursements and all other reasonable out-of-pocket costs incurred by the
Holder in order to collect amounts due and owing under this Note or otherwise
to enforce the Holder’s rights and remedies hereunder.

6.                                       No
Waiver.  No delay or omission on the
part of the Holder in exercising any right under this Note shall operate as a
waiver of such right or of any other right of the Holder, nor shall any delay,
omission or waiver on any one occasion be deemed a bar to or waiver of the same
or any other right on any future occasion.

7.                                       Waivers.  The Company hereby forever waives
presentment, demand, presentment for payment, protest, notice of protest,
notice of dishonor of this Note and all other demands and notices in connection
with the delivery, acceptance, performance and enforcement of this Note.

8.                                       Waiver
of Jury Trial.  THE COMPANY HEREBY WAIVES ITS RIGHT TO A JURY TRIAL OF
ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS NOTE OR ANY
CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL
OTHER CLAIMS.  EACH OF THE COMPANY AND
WBS HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

9.                                       Governing
Law; Consent to Jurisdiction.  This
Note shall be governed by and construed under the law of the State of New York,
without giving effect to the conflicts of law principles thereof.  The Company and, by accepting this Note, the
Holder, each irrevocably submits to the exclusive jurisdiction of the courts of
the State of New York located in New York County and the United States District
Court for the Southern District of New York for the purpose of any suit,
action, proceeding or judgment relating to or arising out of this Note and the
transactions contemplated hereby. 
Service of process in any such suit, action or proceeding may be given
anywhere in the world by the same method as for the giving notices
hereunder.  The Company and, by accepting
this Note, the Holder, each irrevocably consents to the jurisdiction of any
such court in any such suit, action or proceeding and to the laying of venue in
such court.  The Company and, by
accepting this Note, the Holder, each irrevocably waives any objection to the
laying of venue of any such suit, action or proceeding brought in such courts
and irrevocably waives any claim that any such suit, action or proceeding
brought in any such court has been brought in an inconvenient forum.

10.                                 Notices.  Any notice required or permitted under this
Note shall be given in writing and shall be deemed effectively given as
hereinafter described (i) if given by personal delivery, then such notice shall
be deemed given upon such delivery, (ii) if given by telex or telecopier, then
such notice shall be deemed given upon receipt of confirmation of complete
transmittal, (iii) if given by mail, then such notice shall be deemed given
upon the earlier of (A) receipt of such notice by the recipient or (B) three
days after such notice is deposited in first class mail, postage prepaid, and
(iv) if given by an internationally recognized overnight air courier, then such
notice shall be deemed given one business day after delivery to such
carrier.  All

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notices shall be addressed to the party to be notified
at the address as follows, or at such other address as such party may designate
by ten days’ advance written notice to the other party:

If to the Company:

Primal Solutions, Inc.

18881 Von Karman Avenue

Suite 500

Irvine, California 92612

Attention:  Joseph R. Simrell

Fax:  (949)
221-8590

If to the Holder:

Special Situations
Private Equity Fund, L.P.

527 Madison Avenue, Suite
2600

New York, New York 10022

Attention:  Austin W. Marxe

Fax:  (212)
319-6595

11.                                 Costs.  If action is instituted to collect on this
Note, the Company promises to pay all reasonable costs and expenses, including
reasonable attorney’s fees, incurred in connection with such action.

12.                                 Successors
and Assigns.  This Note shall be
binding upon the successors or assigns of the Company and shall inure to the
benefit of the successors and assigns of the Holder.

[Remainder of Page
Intentionally Left Blank]

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IN
WITNESS WHEREOF, the Company has caused this 11% Promissory Note to be signed
in its name effective as of the date first above written.

	
   

  	
  PRIMAL SOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Joseph R. Simrell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Joseph R. Simrell

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
					

 

 11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00115-of-00352.parquet"}]]