Document:

Promissory Note

 Exhibit 10.1 
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES
ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR PRESCIENT APPLIED INTELLIGENCE, INC. SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE
SECURITIES LAWS IS NOT REQUIRED. 
 PRESCIENT APPLIED INTELLIGENCE, INC. 
  

					
		 	Promissory Note	 	
	U.S. $2,558,348.00	 		 	Issuance Date: August 25, 2006
		 		 	Maturity Date: August 25, 2009

 FOR VALUE RECEIVED, the undersigned, Prescient Applied Intelligence, Inc., a Delaware
corporation (the “Company”), hereby promises to pay to the order of Tak Investments, LLC, or any future permitted holder of this promissory note (the “Payee”), at the principal office of the Payee set forth herein,
or at such other place as the holder may designate in writing to the Company, the principal sum of Two Million Five Hundred Fifty Eight Thousand Three Hundred Forty Eight Dollars ($2,558,348.00), together with all accrued but unpaid interest, on or
before August 25, 2009 (the “Maturity Date”), as such amount may be reduced as set forth in Paragraph 1 below (the “Note”). 
 1. Principal and Interest Payments. 
 (a) Interest on the outstanding principal balance of this Note
shall accrue from August 25, 2006 at a rate of prime plus two percent (2%) per annum, as reported in the Wall Street Journal from time to time. Interest on the outstanding principal balance of the Note shall be computed on the basis of the
actual number of days elapsed and a year of three hundred and sixty-five (365) days and shall be payable on the Maturity Date by the Company in cash. 
 (b) The Company shall pay Payee the sum of Thirty Thousand Dollars ($30,000) on or before the tenth day of each month after the date hereof, through the Maturity Date; provided, however, the first payment on or before
the tenth day of the month following the date hereof shall be deemed previously paid as a result of the $30,000 payment to Payee on June 19, 2006. In addition, in the event the Company closes any equity or equity based financing following the
date hereof, with gross proceeds totaling at least $1,000,000 (“Qualified Financing”), the Company shall pay Payee fifteen percent (15%) of the proceeds from such Qualified Financing, up to Five Hundred Thousand Dollars ($500,000) in
the aggregate. Any such payment to the Payee as a result of a Qualified Financing shall not affect the obligation of the Company to continue to pay Payee the sum of Thirty Thousand Dollars ($30,000) on or before the tenth day of each month after the
date hereof, through the Maturity Date. 
  

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 (c) Each payment made under Section 1(b) shall be applied first to accrued and unpaid interest on
this Note, then to payment of the principal of this Note. 
 (d) Any unpaid principal together with all accrued and unpaid interest shall be
payable in full on the Maturity Date. 
 (e) In addition, at the Company’s sole option, the Company may prepay in cash the principal
amount of this Note in whole or in part at any time without penalty or premium. Each such prepayment of principal shall be accompanied by all accrued and unpaid interest on the amount of principal so prepaid. 
 2. Seniority and Ranking. Except for the amounts outstanding under that certain Financing Agreement, dated May 25, 2006, by and between the
Company and Sand Hill Finance, LLC, or any such replacement financing agreement providing working capital to the Company (the “Senior Debt”), in an aggregate principal amount not to exceed $1,000,000 without the consent of the Payee, this
Note shall rank senior to all the Company’s current and future indebtedness; except that (a) this Note shall rank pari passu in right of payment with any indebtedness incurred by the Company on terms which are reasonably acceptable to the
Payee in connection with any corporate or other acquisition or merger transaction involving the Company, which indebtedness shall not exceed an aggregate of $1,000,000 (the “Acquisition Debt”), and (b) the Acquisition Debt may, at the
option of the Company, (i) be secured on a pari passu basis with this Note on terms (including an intercreditor agreement with the Payee) which are reasonably acceptable to the Payee (including the Payee acting as collateral agent for the
Collateral and having full control over the exercise of all remedies relating to the Collateral) and (ii) share equally in the collateral proceeds from any enforcement of the lien securing this Note. In addition, Payee agrees that a senior
security interest may be created in the separate assets (the “Acquired Assets”) acquired in connection with any acquisition, merger or similar transaction and held in a special purpose subsidiary of the Company (the “Separate
Subsidiary”) to secure indebtedness of such Separate Subsidiary incurred or assumed in such acquisition, merger or similar transaction (the “Acquired Debt”), provided that (w) the lender of the Acquired Debt shall be
entitled to look solely to the Acquired Assets and the Separate Subsidiary for payment of the Acquired Debt, (x) the Company and its other subsidiaries shall not guaranty or otherwise be obligated in any manner for the Acquired Debt,
(y) unless all payments required under this Note are fully paid on a current basis, the Company may not use any of its funds or revenues from other subsidiaries to make any payments on the Acquired Debt and (iv) the Company shall provide
the Payee with a copy of the documentation for the Acquired Debt which shall be in compliance with the requirements set forth in this sentence. The Company shall not assign, sell or otherwise transfer any of its assets to the entity owning the
Acquired Assets. The Company shall not incur any additional secured indebtedness (other than the Senior Debt and the Acquisition Debt), and shall not incur any additional unsecured indebtedness for borrowed money unless such additional unsecured
indebtedness is subordinated to the payment of the indebtedness evidenced by this Note pursuant to a subordination agreement with the Payee on terms which are reasonably acceptable to the Payee. The Payee shall at all times recognize the priority of
the lien securing the Senior Debt, and the collateral proceeds of any enforcement of the lien securing this Note shall first be applied to pay the Senior Debt in full before any application of such collateral proceeds to the indebtedness evidenced
by this Note, and by acceptance of this Note, the Payee hereby agrees to such subordination for the benefit of the holder of the Senior Liens. 
  

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 3. Non-Business Days. Whenever any payment to be made shall be due on a Saturday, Sunday or a
public holiday under the laws of the Commonwealth of Pennsylvania, such payment may be due on the next succeeding business day and such next succeeding day shall be included in the calculation of the amount of accrued interest payable on such date.

 4. Representations and Warranties of the Company. The Company represents and warrants to the Payee as follows: 
 (a) The Company has been duly incorporated and is validly existing and in good standing under the laws of the state of Delaware, with full corporate
power and authority to own, lease and operate its properties and to conduct its business as currently conducted. 
 (b) This Note has been
duly authorized, validly executed and delivered on behalf of the Company and is a valid and binding obligation of the Company enforceable against the Company in accordance with its terms, subject to limitations on enforcement by general principles
of equity and by bankruptcy or other laws affecting the enforcement of creditors’ rights generally, and the Company has full power and authority to execute and deliver this Note and to perform its obligations hereunder. 
 (c) The execution, delivery and performance of this Note will not conflict with or result in a breach of or a default under any of the terms or
provisions of, (A) the Company’s certificate of incorporation or by-laws, or (B) any material provision of any indenture, mortgage, deed of trust or other material agreement or instrument to which the Company is a party or by which it
or any of its material properties or assets is bound. 
 (d) The common stock of the Company is registered pursuant to Section 12(b) or
12(g) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the Securities and
Exchange Commission (the “Commission”) pursuant to the reporting requirements of the Exchange Act, including pursuant to Sections 13, 14 or 15(d) thereof (all of the foregoing and all exhibits included therein and financial
statement and schedules thereto, including filings incorporated by reference therein being referred to herein as the “Commission Documents”). At the times of their respective filings, the Form 10-QSB for the fiscal quarters ended
June 30, 2006, March 31, 2006, September 30, 2005 and June 30, 2005 (collectively, the “Form 10-QSB”) and the Form 10-KSB for the fiscal year ended December 31, 2005 (the “Form
10-KSB”) complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the Commission promulgated thereunder, and the Form 10-QSB and Form 10-KSB at the time of their respective filings did not
contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. As of
their respective dates, the financial statements of the Company included in the Commission Documents comply with applicable accounting requirements and the published rules and regulations of the 
  

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 Commission or other applicable rules and regulations with respect thereto. Such financial statements have been prepared
in accordance with accounting principles generally accepted in the United States (“GAAP”) applied on a consistent basis during the periods involved (except (i) as may be otherwise indicated in such financial statements or the
Notes thereto or (ii) in the case of unaudited interim statements, to the extent they may not include footnotes or may be condensed or summary statements), and fairly present in all material respects the financial position of the Company and
its Subsidiaries as of the dates thereof and the results of operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments). 
 (e) No Material Adverse Change. Since June 30, 2006, the Company has not experienced or suffered any Material Adverse Effect, except as
disclosed in the Commission Documents. For the purposes of this Note, “Material Adverse Effect” means any effect on the business, results of operations, prospects, assets or condition (financial or otherwise) of the Company that is
material and adverse to the Company and its subsidiaries and/or any condition, circumstance, or situation that would prohibit or otherwise materially interfere with the ability of the Company from entering into and performing any of its obligations
under this Note in any material respect. 
 (f) No Undisclosed Liabilities. Except as disclosed in the Commission Documents, since
June 30, 2006, neither the Company nor any of its subsidiaries has incurred any liabilities, obligations, claims or losses (whether liquidated or unliquidated, secured or unsecured, absolute, accrued, contingent or otherwise) other than those
incurred in the ordinary course of the Company’s or its subsidiaries respective businesses or which, individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect. Since June 30, 2006, except as disclosed in
Commission Documents, none of the Company or any of its Subsidiaries has participated in any transaction material to the condition of the Company which is outside of the ordinary course of its business. 
 (g) No Undisclosed Events or Circumstances. Since June 30, 2006, except as disclosed in the Commission Documents, no event or circumstance
has occurred or exists with respect to the Company or its subsidiaries or their respective businesses, properties, operations or financial condition, which, under applicable law, rule or regulation, requires public disclosure or announcement by the
Company but which has not been so publicly announced or disclosed. 
 5. Events of Default. The occurrence of any of the following
events shall be an “Event of Default” under this Note: 
 (a) the Company shall (i) fail to make the payment of any
amount of any principal outstanding for a period of five (5) days after the date such payment shall become due and payable hereunder, and (ii) shall further fail to make such principal payment within five (5) days after notice of such
failure under clause (i) is given by Payee; or 
 (b) the Company shall (i) fail to make the payment of any amount of any interest
outstanding for a period of five (5) days after the date such payment shall become due and payable hereunder, and (ii) shall further fail to make such interest payment within five (5) days after notice of such failure under clause
(i) is given by Payee; 
  

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 (c) any representation, warranty or certification made by the Company herein shall prove to have been
false or incorrect or breached in a material respect on the date as of which made; or 
 (d) any event or condition shall occur which
(i) results in the acceleration of the maturity of any secured debt of the Company (including any Senior Debt or any Acquisition Debt) or of any unsecured debt of the Company with an aggregate principal amount in excess of $250,000, unless such
acceleration is unconditionally rescinded and waived in writing by the holder of such debt with a copy provided to the Payee, (ii) consists of the failure of the Company to pay any such debt at its scheduled maturity or as required by any
mandatory prepayment, unless such maturity date is extended in writing by the holder of such debt with a copy provided to the Payee or such mandatory prepayment is unconditionally waived in writing by the holder of such debt with a copy provided to
the Payee, or (iii) enables the holder of any such debt or any person acting on such holder’s behalf to accelerate the maturity thereof unless the holder of such debt taken not taken any enforcement action and has entered into a written
standstill agreement with the Company which is in full force and effect with a copy provided to the Payee. 
 (e) the Company shall
(i) become insolvent or admit in writing its inability to pay its debts, (ii) apply for or consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial
part of its property or assets, (iii) make a general assignment for the benefit of its creditors, (iv) commence a voluntary case under the Bankruptcy Code or under the comparable laws of any jurisdiction (foreign or domestic), (v) an
involuntary case or other proceeding shall be commenced against the Borrower seeking liquidation, reorganization or other relief with respect to it or its debts under any he Bankruptcy Code or under the comparable laws of any jurisdiction (foreign
or domestic) or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed and unstayed for a
period of 60 days; or an order for relief shall be entered against the Borrower under the Bankruptcy Code or under the comparable laws of any jurisdiction (foreign or domestic); (vi) file a petition seeking to take advantage of any bankruptcy,
insolvency, moratorium, reorganization or other similar law affecting the enforcement of creditors’ rights generally, (vii) acquiesce in writing to any petition filed against it in an involuntary case under the Bankruptcy Code or under the
comparable laws of any jurisdiction (foreign or domestic), or (viii) take any action under the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing. 
 6. Remedies Upon An Event of Default. Upon the occurrence of an Event of Default, the Payee shall have the right to cause the entire unpaid
principal balance of this Note, together with all accrued interest thereon, reasonable attorneys’ and all fees, charges, costs and expenses, if any, owed by the Company to the Payee, to become immediately due and payable in full by giving
written notice to the Company. No course of delay on the part of the Payee shall operate as a waiver thereof or otherwise prejudice the right of the Payee. No remedy conferred hereby shall be exclusive of any other remedy referred to herein or now
or hereafter available at law, in equity, by statute or otherwise. 
  

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 7. Parties in Interest, Transferability. This Note shall be binding upon the Company and its
successors and assigns and the terms hereof shall inure to the benefit of the Payee and its successors and permitted assigns. This Note may not be transferred or sold, or pledged, hypothecated or otherwise granted as security by the Payee, without
the written consent of the Company, which consent shall not be unreasonably withheld. 
 8. Amendments. This Note may not be modified
or amended in any manner except in writing executed by the Company and the Payee. 
 9. Notices. Any notice, demand, request, waiver
or other communication required or permitted to be given hereunder shall be in writing and shall be effective (a) upon hand delivery by telecopy or facsimile at the address or number designated below (if delivered on a business day during
normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. 
  

			
	Address of the Payee:	  	Tak Investments, LLC
		  	400 Professional Drive, Suite 420
		  	Gaithersburg, Maryland 20879
		  	Attention: Sharad Tak
		
	With a copy to:	  	Pillsbury Winthrop Shaw Pittman LLP
		  	1650 Tysons Boulevard
		  	Suite 1400
		  	McLean, Virginia 22102
		  	Attention: Steven L. Meltzer
		  	Tel. No.: (703)770-7950
		  	Fax No.: (703) 770-7901
		
	Address of the Company:	  	Prescient Applied Intelligence, Inc.
		  	1247 Ward Avenue (Suite 200)
		  	West Chester, PA 19380
		  	Attention: Chief Financial Officer
		  	Tel. No.: (610) 719-1600
		  	Fax No.: (610) 719-6161

 10. Governing Law. This Note shall be governed by and construed in accordance with the
internal laws of the Commonwealth of Pennsylvania, without giving effect to the choice of law provisions. This Note shall not be interpreted or construed with any presumption against the party causing this Note to be drafted. 
  

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 11. Headings. Article and section headings in this Note are included herein for purposes of
convenience of reference only and shall not constitute a part of this Note for any other purpose. 
 12. Failure or Indulgence Not
Waiver. No failure or delay on the part of the Payee in the exercise of any power, right or privilege hereunder shall operate as a waiver with respect to the same or any other Event of Default thereof, nor shall any single or partial exercise of
any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 
 13.
Enforcement Expenses. The Company agrees to pay all reasonable costs and expenses of enforcement of this Note incurred by Payee, whether or not suit has been filed or any other action instituted or other action taken to enforce or collect
under this Note, including, without limitation, reasonable attorneys’ fees and expenses. 
 14. Limitations of Applicable Law. In
the event the operation of any provision of this Note results in an effective rate of interest transcending the limit of the usury or any other law applicable to the loan evidenced hereby, all sums in excess of those lawfully collectible as interest
for the period in question shall, without further agreement or notice by any party to this Note, be applied to the unpaid principal balance of this Note immediately upon receipt of such monies by the Payee, with the same force and effect as though
the Company had specifically designated such extra sums to be so applied to the unpaid principal balance and the Payee had agreed to accept such extra payment(s) as a prepayment. 
 15. Binding Effect. The obligations of the Company and the Payee set forth herein shall be binding upon the successors and assigns of each such
party, whether or not such successors or assigns are permitted by the terms hereof. 
 16. Compliance with Securities Laws. The Payee
of this Note acknowledges that this Note is being acquired solely for the Payee’s own account and not as a nominee for any other party, and for investment, and that the Payee shall not offer, sell or otherwise dispose of this Note other than in
compliance with the laws of the United States of America and as guided by the rules of the Securities and Exchange Commission. This Note and any Note issued in substitution or replacement therefore shall be stamped or imprinted with a legend in
substantially the following form: 
 “THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), OR ANY STATE SECURITIES LAW AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR PRESCIENT APPLIED INTELLIGENCE, INC. SHALL
HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.” 
  

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 17. Severability. The provisions of this Note are severable, and if any provision shall be held
invalid or unenforceable in whole or in part in any jurisdiction, then such invalidity or unenforceability shall not in any manner affect such provision in any other jurisdiction or any other provision of this Note in any jurisdiction. 

18. Debtor-Creditor Relationship. The Payee shall in no event be construed for any purpose to be a partner, joint venturer or associate of the
Company, it being the sole intention of the parties to establish a relationship of debtor and creditor 
 19. Time of the Essence. It
is expressly agreed that time is of the essence in the performance of the obligations set forth in this Note. 
 IN WITNESS WHEREOF,
the Company has executed and delivered this Note as of the date first written above. 
  

			
	PRESCIENT APPLIED INTELLIGENCE, INC.
		
	By:	 	 /s/ Thomas W. Aiken

	Name:	 	Thomas W. Aiken
	Title:	 	CFO

  

			
	AGREED TO AND ACCEPTED ON THIS 25th DAY OF August, 2006:
	TAK INVESTMENTS, LLC
		
	By:	 	 /s/ Sharad Tak

	Its:	 	  

  

 8Security Agreement

 Exhibit 10.2 
 SECURITY AND SUBORDINATION AGREEMENT 
 This SECURITY AND SUBORDINATION AGREEMENT (the
“Agreement”), dated as of August 25, 2006, by and between Prescient Applied Intelligence, Inc., a Delaware corporation (the “Grantor”), and TAK Investments, LLC, a Delaware limited liability company (the
“Secured Party”). 
 WHEREAS, the Grantor has issued a separate promissory note to the Secured Party on the date hereof in
the principal amount of $2,558, 348.00 (the “Note”); and 
 WHEREAS, the Secured Party and the Grantor agree that the
Grantor execute and deliver to the Secured Party a security and subordination agreement providing for the grant to the Secured Party of a continuing security interest in all personal property and assets of the Grantor, all in substantially the form
hereof to secure all obligations of Grantor under the terms of the Note. 
 NOW, THEREFORE, the parties agree as follows: 
 ARTICLE I. Definitions 
 Section 1.1. Definition of Terms Used Herein. All capitalized terms used herein and not defined herein have the meanings provided therefore in the Note. All terms defined in the Uniform Commercial Code (hereinafter defined) as in effect
from time to time and used herein and not otherwise defined herein (whether or not such terms are capitalized) have the same definitions herein as specified therein. 
 Section 1.2. Definition of Certain Terms Used Herein. As used herein, the following terms have the following meanings: 
 “Collateral” means all accounts receivable of the Grantor and all personal and fixture property of every kind and nature, including, without limitation, all furniture, fixtures, equipment, raw
materials, inventory, or other goods, accounts, contract rights, rights to the payment of money, insurance refund claims and all other insurance claims and proceeds, tort claims, chattel paper, documents, instruments, securities and other investment
property, deposit accounts, rights to proceeds of letters of credit and all general intangibles including, without limitation, all tax refund claims, license fees, patents, patent licenses, patent applications, trademarks, trademark licenses,
trademark applications, trade names, copyrights, copyright licenses, copyright applications, rights to sue and recover for past infringement of patents, trademarks and copyrights, computer programs, computer software, engineering drawings, service
marks, customer lists, goodwill, and all licenses, permits, agreements of any kind or nature pursuant to which the Grantor possesses, uses or has authority to possess or use property (whether tangible or intangible) of others or others possess, use
or have authority to possess or use property (whether tangible or intangible) of the Grantor, and all recorded data of any kind or nature, regardless of the medium of recording including, without limitation, all books and records, software,
writings, plans, specifications and schematics; and all proceeds and products of each of the foregoing. 

 “Default” means any event or circumstance which, with the giving of notice, the
lapse of time, or both, would (if not cured, waived, or otherwise remedied during such time) constitute an Event of Default. 
 “Event of Default” has the meaning specified in the Note. 
 “Indemnitees” has the
meaning specified in Section 7.5(b). 
 “Lien” means: (i) any interest in property securing an obligation
owed to, or a claim by, a Person other than the owner of the property, whether such interest is based on the common law, statute, or contract, and including a security interest, charge, claim, or lien arising from a mortgage, deed of trust,
encumbrance, pledge, hypothecation, assignment, deposit arrangement, agreement, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes; (ii) to the extent not included under
clause (i), any reservation, exception, encroachment, easement, right-of-way, covenant, condition, restriction, lease or other title exception or encumbrance affecting property; and (iii) any contingent or other agreement to provide
any of the foregoing. 
 “Note” has the meaning assigned to such term in the first recital of this Agreement.

 “Obligations” means all obligations of Grantor to Secured Party under the terms of the Note. 
 “Security Interest” has the meaning specified in Section 2.1 of this Agreement. 
 “Uniform Commercial Code” means the Uniform Commercial Code from time to time in effect in the Commonwealth of Pennsylvania.

 ARTICLE II. Security Interest 
 Section 2.1. Security Interest. As security for the payment and performance, in full of the Obligations, and any extensions, renewals, modifications or refinancings of the Obligations, the Grantor hereby
bargains, sells, conveys, assigns, sets over, mortgages, pledges, hypothecates and transfers to the Secured Party, and hereby grants to the Secured Party, their successors and assigns, a security interest in, all of such Grantor’s right, title
and interest in, to and under the Collateral (the “Security Interest”). The parties agree and acknowledge that the Security Interest granted hereunder to the Secured Party in and to the Collateral shall at all times be subordinate
(“the “Subordination Obligation”) in priority to the lien (the “Senior Lien”) of (a) Sand Hill Finance, LLC, for up to $1.0 million of debt incurred under that certain Financing Agreement, dated May 25, 2006, with
the Grantor (the “SHF Financing”), or (b) if the SHF Financing has been repaid in full, up to $1.0 million of debt incurred by the Grantor in connection with any line of credit or similar financing with another financial institution.
Secured Party shall at all times recognize the priority of the Senior Lien, and any proceeds of the Collateral received by Secured Party in respect of the Security Interest shall first be applied to pay the indebtedness secured by the Senior Lien in
full before any application of such proceeds to the Obligations, and by acceptance of the Note, the Payee hereby agrees to such subordination for the benefit of the 
  

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 holder of the Senior Lien. The parties further agree and acknowledge that nothing contained herein shall prohibit Grantor
from pledging or otherwise placing in escrow the source code to any of its software, where such pledge or placement is required in the ordinary course of Grantor’s business. 
 Section 2.2. No Assumption of Liability. The Security Interest is granted as security only and shall not subject the Secured Party to, or in any
way alter or modify, any obligation or liability of the Grantor with respect to or arising out of the Collateral. 
 ARTICLE III.
Representations and Warranties 
 The Grantor represents and warrants to the Secured Party that: 
 Section 3.1. Title and Authority. The Grantor has good and valid rights in and title to the Collateral with respect to which it has purported to
grant a security interest hereunder and has full power and authority to grant to the Secured Party the Security Interest and to execute, deliver and perform its obligations in accordance with the terms of this Agreement, without the consent or
approval of any other Person other than any consent or approval which has been obtained. 
 Section 3.2. Filings; Actions to Achieve
Perfection. At the request of Secured Party, Grantor shall deliver to Secured Party fully executed Uniform Commercial Code financing statements (including fixture filings, as applicable) or other appropriate filings, recordings or registrations
containing a description of the Collateral for filing in each United States governmental, municipal or other office specified by Secured Party in writing. All costs associated with such filings, recordings or registrations shall be paid by Secured
Party. The Grantor’s name is listed in the preamble of this Agreement identically to how it appears on its certificate of incorporation or other organizational documents. 
 Section 3.3. Validity of Security Interest. Upon filing of all necessary filings, recordings or registrations set forth in Section 3.2 above,
the Security Interest will constitute a legal and valid security interest in all the Collateral securing the payment and performance of the Obligations. 
 Section 3.4. Absence of Other Liens. The Grantor’s Collateral is owned by the Grantor free and clear of any Lien other than the SHF Lien, the liens held by North Sound Legacy Fund LLC, North Sound Legacy
International Ltd, and North Sound Legacy International Fund LLC (collectively the “NSL Lien”) and certain other existing liens on equipment (the “Equipment Liens”) listed on Schedule 3.4 hereto. Other than the Equipment Liens
and the SHF Lien, the Grantor will cause each of these liens to be released as soon as possible, but in no event later than September 15, 2006. The Grantor further represents that all obligations of the Grantor or of The ViaLink Company to the
North Sound Legacy Fund LLC, including any outstanding indebtedness, have been satisfied in full. Without limiting the foregoing, the Grantor has not filed or consented to any filing in favor of any Person other than the Secured Party, nor permitted
the granting or assignment of a security interest or permitted perfection of any security interest in the Collateral in favor of any Person other than the Secured Party. 
  

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 Section 3.5. Valid and Binding Obligation. This Agreement constitutes the legal, valid and binding
obligation of the Grantor, enforceable against the Grantor in accordance with its terms, except (i) as limited by applicable bankruptcy, insolvency, reorganization, moratorium, and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief, or other equitable remedies, and (iii) to the extent the indemnification provisions contained in this
Agreement may be limited by applicable federal or state securities laws. 
 ARTICLE IV. Covenants 
 Section 4.1. Records. The Grantor shall maintain, at its own cost and expense, such complete and accurate records with respect to the Collateral
owned by it as is consistent with its current practices and in accordance with such prudent and standard practices used in industries that are the same as or similar to those in which the Grantor is engaged, but in any event to include complete
accounting records indicating all payments and proceeds received with respect to any part of the Collateral, and, at such time or times as the Secured Party may reasonably request, promptly to prepare and deliver to the Secured Party a duly
certified schedule or schedules in form and detail satisfactory to the Secured Party showing the identity, amount and location of any and all Collateral. 
 Section 4.2. Protection of Security. The Grantor shall, at its own cost and expense, take any and all actions necessary to defend title to the Collateral against all persons and to defend the Security Interest
of the Secured Party in the Collateral and the priority thereof against any Lien, other than the Senior Lien and the lien securing any Acquisition Debt (as defined therein) as permitted by the Note. 
 Section 4.3. Inspection and Verification. The Secured Party and such persons as the Secured Party may reasonably designate shall have the right to
inspect the Collateral, all records related thereto (and to make extracts and copies from such records) and the premises upon which any of the Collateral is located, to discuss the Grantor’s affairs with the officers of the Grantor and its
independent accountants and to verify under reasonable procedures the validity, amount, quality, quantity, value, condition and status of, or any other matter relating to, the Collateral. 
 Section 4.4. Use and Disposition of Collateral. Other than the Senior Lien permitted hereby and the lien securing any Acquisition Debt (as defined
therein) as permitted by the Note, the Grantor shall not, directly or indirectly, make or permit to be made an assignment, transfer, pledge or hypothecation of any Collateral nor grant any other Lien in respect of the Collateral without the prior
written consent of the Secured Party. 
 Section 4.5. Insurance/Notice of Loss. Grantor, at its own expense, shall maintain or cause
to be maintained insurance covering physical loss or damage to the Collateral. Such insurance shall not be terminated, cancelled or not renewed for any reason, including non-payment of insurance premiums, unless the Grantor shall have provided the
Secured Party at least 30 days prior written notice. In the event that Grantor at any time or times shall fail to obtain or maintain any of the policies of insurance required hereby or to pay any premium in whole or part relating thereto, the
Secured Party may, without waiving or releasing any obligation or liability of Grantor hereunder, in their sole discretion, obtain and maintain such policies of insurance and pay such premium and take any other actions with respect thereto as the
Secured Party deem advisable. Grantor shall promptly notify the Secured Party if any material portion of the Collateral owned or held by Grantor is damaged or destroyed. 
  

 4 

 ARTICLE V. Further Assurances 
 Section 5.1. Further Assurances. Grantor and Secured Party shall execute, acknowledge, deliver and cause to be duly filed all such further
instruments and documents and take all such actions as the Secured Party, and Grantor, as the case may be, may from time to time reasonably request to better assure, preserve, protect and perfect the Security Interest and the rights and remedies
created hereby, or the Subordination Obligations, as the case may be. All costs and expense associated with the foregoing shall be paid by Secured Party, including the payment of any fees and taxes required in connection with the execution and
delivery of this Agreement, the granting of the Security Interest and the filing of any financing statements (including fixture filings) or other documents in connection herewith or therewith. 
 ARTICLE VI. Remedies 
 Section 6.1. Remedies upon Default. Upon
the occurrence and during the continuance of an Event of Default, Secured Party may exercise any and all rights afforded to a secured party under the Uniform Commercial Code or other applicable law, including without limitation foreclosing upon and
selling the Collateral. 
 ARTICLE VII. Miscellaneous 
 Section 7.1. Notices. All communications and notices hereunder to the Grantor and to the Secured Party shall (except as otherwise expressly
permitted herein) be in writing and delivered to the Grantor or the Secured Party, as the case may be, as provided in the Note. 
 Section
7.2. Survival of Agreement. All covenants, agreements, representations and warranties made by a party herein and in the certificates or other instruments prepared or delivered in connection with or pursuant to this Agreement shall be
considered to have been relied upon by the other party herein, and shall survive the execution and delivery to the Secured Party of the Note, regardless of any investigation made by the Secured Party or on their behalf; and shall continue in full
force and effect until this Agreement shall terminate. 
 Section 7.3. Binding Effect; Several Agreement; Successors and Assigns. This
Agreement shall become effective as to Grantor when a counterpart hereof executed on behalf of Grantor shall have been delivered to the Secured Party and a counterpart hereof shall have been executed on behalf of the Secured Party, and thereafter
shall be binding upon Grantor and the Secured Party and their respective successors and assigns, and shall inure to the benefit of Grantor, the Secured Party and their respective successors and assigns. 
 Section 7.4. Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the Commonwealth of
Pennsylvania, without giving effect to any of the conflicts of law principles which would result in the application of the substantive law of another jurisdiction. This Agreement shall not be interpreted or construed with any presumption against the
party causing this Agreement to be drafted. 
  

 5 

 Section 7.5. Waivers; Amendment. 
 (a) No failure or delay of a party in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of a party hereunder are
cumulative and are not exclusive of any rights or remedies that it would otherwise have. No notice to or demand on Grantor in any case shall entitle Grantor to any other or further notice or demand in similar or other circumstances. 
 (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except pursuant to an agreement or agreements, in writing entered
into by the Secured Party and Grantor. 
 Section 7.6. Severability. In the event any one or more of the provisions contained in this
Agreement should be held invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace the invalid, illegal or
unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the invalid, illegal or unenforceable provisions. 
 Section 7.7. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute but one contract. Each
party shall be entitled to rely on a facsimile signature of any other party hereunder as if it were an original. 
 Section 7.8.
Jurisdiction; Consent to Service of Process. 
 (a ) Grantor hereby irrevocably and unconditionally submits, for itself
and its property, to the nonexclusive jurisdiction of any Pennsylvania State court or Federal court of the United States of America sitting in Pennsylvania, and any appellate court from any thereof, in any action or proceeding arising out of or
relating to this Agreement, or the Note, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in Pennsylvania or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on
the judgment or in any other manner provided by law. Nothing in this Agreement shall affect any right that a party hereto may otherwise have to bring any action or proceeding relating to this Agreement, against the other party hereto, or its
properties in the courts of any jurisdiction. 
 (b) Each party hereby irrevocably and unconditionally waives, to the fullest
extent it may legally and effectively do so, any objection which it may now or hereafter 
  

 6 

 have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement, or the Note, in any Pennsylvania or Federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any
such court. 
 Section 7.9. Termination. This Agreement and the Security Interest shall terminate when all the Obligations have been
paid in full, at which time the Secured Party shall execute and deliver to Grantor, at Grantor’s expense, all Uniform Commercial Code termination statements and similar documents which Grantor shall reasonably request to evidence such
termination. Any execution and delivery of termination statements or documents pursuant to this Section shall be without recourse to or warranty by the Secured Party. 
 IN WITNESS WHEREOF, the parties have duly executed this Security Agreement as of the day and year first written above. 
  

			
	 PRESCIENT APPLIED INTELLIGENCE, INC.

		
	 By:
	 	 /s/ Thomas W. Aiken

	 Name:
	 	 Thomas W. Aiken

	 Title:
	 	 SVP & CFO

	
	 TAK INVESTMENTS, LLC

		
	 By:
	 	 /s/ Sharad Tak

	 Name:
	 	
	 Title:
	 	

  

 7 

 SCHEDULE 3.4 
 Existing Liens 
 Sand Hill Finance, LLC 
 NSF Lien-The Vialink Company 
 North Sound Legacy International LTD 
 53 Forest Avenue 
 Old Greenwich, CT 
 North Sound Legacy Fund LLC 
 53 Forest Avenue 
 Old Greenwich, CT 
 North Sound Legacy Institutional Fund LLC 
 53 Forest Avenue 
 Old Greenwich, CT 
 Equipment Liens-Prescient Applied Intelligence, Inc. 
 Imagenet Capital DFW LTD 
 3223 Commander Drive 
 Carrollton, TX 
 Wells Fargo Financial Leasing, Inc. 
 800 Walnut Street 
 Des Moines, IA 
 Citicapital Technology Finance, Inc. 
 1255 Wrights Lane 
 West Chester, PA 
 Sand Hill Finance, LLC 
 20573 Stevens Creek Blvd Suite 200 
 Cupertino CA 
 Equipment Liens-The Vialink Company 
 Southwestern Bank 
 Oklahoma City, OK 
 SDS Capital Group SPC, LTD 
 53 Forest Avenue 
 Old Greenwich, CT 
  

 8

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