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SUBORDINATION AGREEMENT

AMONG

IGX GLOBAL, INC.,

IGAMBIT INC.,

THOMAS DUFFY

AND

KELTIC FINANCIAL PARTNERS II, LP

Dated as of December ____, 2012

THIS   SUBORDINATION   AGREEMENT   is   made   as   of   December   ____,   2012   between   IGX

GLOBAL,   INC.,   a   corporation   organized   under   the   laws   of   the   State   of   New   Jersey   (“Seller”),

IGAMBIT   INC.,   a   corporation   organized   under   the   laws   of   the   State   of   Delaware   (“iGambit”),

THOMAS  DUFFY,  an  individual  residing  at  18  Jodi  Drive,  Wallingford,  Connecticut  06492  (“Seller

Shareholder”)   and   KELTIC   FINANCIAL   PARTNERS   II,   LP,   a   Delaware   limited   partnership

(“Senior Creditor”).

RECITALS:

On  the  date  of  this  Agreement  IGXGLOBAL,  CORP.,  a  corporation  organized  under  the  laws  of  the

State  of  Delaware  (“Borrower”),  is  acquiring  substantially  all  of  the  assets  of,  and  assuming  certain

liabilities  of,  Seller,  and  is  purchasing  all  of  the  issued  and  outstanding  stock  of  IGX  Global  UK  Limited

from  Seller  Shareholder,  pursuant  to  the  terms  of  an  Asset  and  Stock  Purchase  Agreement  dated  on  or

about  the  date  hereof  between  Borrower,  Seller,  Seller  Shareholder  and  the  other  parties  named  therein

(the  “Asset  Purchase  Agreement”),  and  pursuant  to  the  other  agreements,  documents  and  instruments

executed  and/or  delivered  in  connection  with  the  transactions  contemplated  by  such  Asset  Purchase

Agreement (collectively with the Asset Purchase Agreement, the “Asset Purchase Documents”).

Pursuant  to  the  terms  of  the  Asset  Purchase  Documents  Borrower  has  delivered  to  Seller  Shareholder  a

Promissory   Note   dated   December   ___,   2012   in   the   original   principal   amount   of   $1,000,000   (the

“Subordinated  Note”).   Additionally, pursuant to  the  Asset Purchase  Documents Seller may  be  entitled  to

certain  cash  distributions  from  Borrower  in  an  aggregate  amount  equal  to  Three  Million  Seven  Hundred

Fifty   Thousand   and   00/100   Dollars   ($3,750,000.00)   (the   “Earnout   Distributions”)   based   on   the

achievement  of  Borrower’s  “IT  Solutions  Business”  (as  defined  in  the  Asset  Purchase  Agreement)  of

certain revenue and financial targets as described in the Asset Purchase Agreement.

iGambit  owns  all  outstanding  and  issued  shares  of  stock  of  Borrower  (the  “Borrower  Stock”).   Pursuant

to  the  terms  of  Borrower’s  charter  and  organizational  documents  Borrower  may  be  obligated  to  pay

certain  dividends  and  distributions  to  iGambit.   Additionally  Borrower  may  be  required to  pay  to  iGambit

certain  management  fees  and  other  amounts  as  compensation  for  services  performed  by  iGambit,  and  for

reimbursable  costs  and  expenses  incurred  by  iGambit  in  the  ordinary  course  of  performing  services  for

Borrower (the “Management Fee Obligations”).

On  or  about  the  date  of  this  Agreement  Senior  Creditor  will  be  extending  certain  credit  facilities  to

Borrower   pursuant   to   the   terms   of   a   Loan   and   Security   Agreement   between   Senior   Creditor   and

Borrower,  one  or  more  promissory  notes,  collateral  assignment,  pledge  and/or  security  agreements,  and

such  other  agreements,  documents  and  instruments  executed  and/or  delivered  to  Senior  Creditor  (all  such

agreements, documents  and  instruments, together with  any  amendments, restatements, extensions  or other

modifications thereof, shall be collectively referred to herein as the “Senior Creditor Loan Documents”).

Each  of  Senior Creditor,  Seller, Seller Shareholder and iGambit  desires  to  establish  the  relative  priority  of

payment  of  the  indebtedness,  liabilities  and  obligations  of  Borrower  to  each  such  party,  and  requires  that

Borrower acknowledge the terms hereof.

AGREEMENT:

1.  Definitions.   All  capitalized  terms  not  defined  in  the  Recitals,  above,  in  this  Section  1,  or  in  the  body

of  this  Agreement  shall  have  the  meaning  ascribed  to  such  terms  in  the  Uniform  Commercial  Code  as  in

effect  in  the  State  of  New  York.   Each  term  defined  in  the  singular  shall  be  interpreted  in  a  collective

manner  when  used  in  the  plural,  and  each  term  defined  in  the  plural  shall  be  interpreted  in  an  individual

manner  when  used  in  the  singular.   All  references  to  dollar  amounts  shall  mean  amounts  in  lawful  money

of  the  United  States  of  America.    When  used  in  this  Agreement,  the  following  words  shall  have  the

following meanings:

“Borrower   Charter   Documents”   means   Borrower’s   Articles   of   Incorporation   and   Bylaws,   and   all

agreements,   documents    and    instruments    granting    any    individual,    organization    (whether    or    not

incorporated),  trust  or  any  combination  of  the  foregoing,  the  right  to  vote  or  control  any  share  or  share  of

Borrower’s  issued  and  outstanding  capital  stock,  the  right  to  participate  in  the  management  and  affairs  of

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Borrower, or the right to participate in the issuance, assignment, transfer, redemption or repurchase of any

of  Borrower’s  equity  interests,  whether  now  issued  or  issued  after  the  date  hereof,  and  whether  such  euity

interests  are  capital  stock,  options,  grants  or  other  rights  exchangeable  or  convertible  into  capital  stock  of

Borrower, and all amendments, restatements, extensions and other modifications thereof.

“Borrower  Stock  Obligations”  means  all  present  and  future  indebtedness,  obligations  (whether  fixed  or

contingent),  liabilities  (including  but  not  limited  to  fees,  costs  and  expenses)  and  claims  payable  by

Borrower   to   iGambit   in   connection   with   the   Borrower   Stock,   pursuant   to   the   Borrower   Charter

Documents,  by  operation  of  law  or  equitable  principles,  including  but  not  limited  to  all  dividends  payable

by  Borrower  to  iGambit,  whether  regularly  declared,  declared  by  special  vote,  election  or  meeting,  or

whether occasioned by the occurrence of any event or series of events.

“Business Day” means any day that commercial banks settle transactions in the State of New York.

“Collateral”  means all of Borrower’s currently  owned  and  hereafter acquired personal property, wherever

located,  and  all  rights  in  personal  property,  including  all  (as  such  terms  are  defined  in  the  New  York

Uniform  Commercial  Code):  “Money”  (as  specifically  defined  in  Section  1-201(24)  of  the  New  York

Uniform   Commercial   Code);   “Accessions”;   “Accounts”;   “Certificates   of   title”;   “Chattel   paper”;

“Commercial   tort   claims”;   “Deposit   accounts”;   “Documents”;   “Equipment”;   “General   intangibles”;

“Goods”;   “Health-care-insurance   receivables”;   “Instruments”;   “Inventory”;   “Investment   property”;

“Letter-of-credit  rights”;  “Proceeds”  (as  specifically  defined  in  Section  9-102(64)  of  the  New  York

Uniform Commercial Code); “Records”; “Software”; and “Supporting obligations”.

“Collateral  Distribution”  means  any  payment,  distribution,  advance,  assignment,  exchange,  transfer  or

other direct or indirect hypothecation to or for the benefit of a Creditor (i) by Borrower of Collateral, or of

“Proceeds”  (as  specifically  defined  in  Section  9-102(64)  of  the  UCC)  of  Collateral,  whether  of  “Money”

(as  specifically  defined  in  Section  1-201(24)  of  the  UCC),  cash,  securities  or  in  the  form  of  any  other

property,   or   (ii)   by   any   Senior   Guarantor   of   any   asset   or   property   that   secures   repayment   of   the

Obligations.

“Creditor”  means each of Senior Creditor and the Junior Creditors.

“Distribution”  means  (i)  any  payment,  whether  of  “Money”  (as  specifically  defined  in  Section  1-201(24)

of  the  UCC),  cash,  securities,  draft,  check,  note,  negotiable  instrument  or  other  fungible  property,  by

Borrower  or  any  Senior  Guarantor  to  or  for  the  benefit  of  a  Creditor  as  payment,  prepayment,  repayment

or   other   reduction   of   such   Creditor’s   Obligations,   whether   regularly   scheduled,   or   a   voluntary   or

involuntary  payment,  prepayment  or  repayment,  (ii)  any  credit  obtained  by  a  Creditor,  by  setoff  or

otherwise,  in  connection  with  such  Creditor’s  Obligations,  and  (iii)  any  Collateral  Distribution.    For

purposes  hereof,  a  Distribution  shall  specifically  include,  but  not  be  limited  to  any  payment  by  Borrower

to iGambit in order to fund Borrower Stock Obligations or Management Fee Obligations.

“iGambit  Obligations”   means  all  present  and  future  indebtedness,  obligations  (including  but  not  limited

to  obligations  for  borrowed  money  of  any  kind  or  nature,  whether  funded  or  unfunded,  contingent

obligations  under  guaranties,  letters  of  credit  or  obligations  for  the  acquisition  or  use  of  fixed  assets),

liabilities  (including  but  not  limited  to  fees,  costs  and  expenses,  even  if  such  amounts  are  added  to  the

principal  amount  of  such  obligations)  and  claims  owing  from  Borrower  to  iGambit,  and  all  rights  and

demands  of  iGambit  upon  or  against  Borrower,  any  Senior  Guarantor,  or  any  other  person  in  connection

with  the  indebtedness,  liabilities  and  obligations  of  Borrower  to  iGambit,  including  the  indebtedness,

liabilities  and  obligations  of  Borrower  to  iGambit  in  connection  with  the  Management  Fee  Obligations,

the Borrower Stock Obligations or under the Borrower Charter Documents.

“Junior Creditor” means each of Seller, Seller Shareholder and iGambit.

“Junior  Creditor  Documents”  means,  individually  and  collectively,  the  Asset  Purchase  Documents,  the

Borrower  Charter  Documents  and  the  Management  Agreement,  as  the  same  may  be  amended,  restated,

extended or otherwise modified.

“Junior  Obligations”  means,  individually  and  collectively,  the  Seller  Obligations,  the  Seller  Shareholder

Obligations and the iGambit Obligations.

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“Loan  Documents”  means,  individually  and  collectively,  the  Senior  Creditor  Loan  Documents  and  the

Junior Creditor Documents.

“Obligations” means, individually and collectively, the Senior Obligations and the Junior Obligations.

“Seller  Obligations”  means  all  present  and  future  indebtedness,  obligations  (including  but  not  limited  to

obligations   for   borrowed   money   of   any   kind   or   nature,   whether   funded   or   unfunded,   contingent

obligations  under  guaranties,  letters  of  credit  or  obligations  for  the  acquisition  or  use  of  fixed  assets),

liabilities  (including  but  not  limited  to  fees,  costs  and  expenses,  even  if  such  amounts  are  added  to  the

principal  amount  of  such  obligations)  and  claims  owing  from  Borrower  to  Seller,  and  all  rights  and

demands  of  Seller  upon  or  against  Borrower,  any  Senior  Guarantor,  or  any  other  person  in  connection

with   the  indebtedness,  liabilities  and   obligations  of  Borrower  to  Seller,  including   the  indebtedness,

liabilities  and  obligations  of  Borrower  to  Seller  in  connection  with  the  Earnout  Distributions  or  under  the

Asset Purchase Documents.

“Seller  Shareholder  Obligations”  means  all  present  and  future  indebtedness,  obligations  (including  but

not  limited  to  obligations  for  borrowed  money  of  any  kind  or  nature,  whether  funded  or  unfunded,

contingent  obligations  under  guaranties,  letters  of  credit  or  obligations  for  the  acquisition  or  use  of  fixed

assets), liabilities (including but not limited to fees, costs and expenses, even if such amounts are added to

the  principal  amount  of  such  obligations)  and  claims  owing  from  Borrower  to  Seller  Shareholder,  and  all

rights  and  demands  of  Seller  Shareholder  upon  or  against  Borrower,  any  Senior  Guarantor,  or  any  other

person  in  connection  with  the  indebtedness,  liabilities  and  obligations  of  Borrower  to  Seller  Shareholder,

including  the  indebtedness,  liabilities  and  obligations  of  Borrower  to  Seller  Shareholder  in  connection

with the Subordinated Note or under the Asset Purchase Documents.

“Senior   Guarantor”   means   any   individual,   partnership,   limited   liability   company,   limited   liability

partnership,  corporation,  joint  venture,  joint  stock  company,  land  trust,  business  trust  or  unincorporated

organization,  or  a  government  or  agency  or  political  subdivision  thereof,  that  is  a  co-borrower  with

Borrower  of  the  Senior  Obligations,  or  that  has  guaranteed  the  repayment of  the  Senior  Obligations  or  the

performance  by  the  Borrower  of  the  terms  and  conditions  of  the  Senior  Creditor  Loan  Documents  in

whole   or   in   part   or   that   has   provided   any   letter   of   credit,   pledge,   financial   instrument   or   other

accommodation to the Senior Creditor as security for or in support of the Senior Obligations.

“Senior  Obligations”  means  all  present  and  future  indebtedness,  obligations  (including  but  not  limited  to

obligations   for   borrowed   money   of   any   kind   or   nature,   whether   funded   or   unfunded,   contingent

obligations  under  guaranties,  letters  of  credit  or  obligations  for  the  acquisition  or  use  of  fixed  assets),

liabilities  (including  but  not  limited  to  fees,  costs  and  expenses,  even  if  such  amounts  are  added  to  the

principal  amount  of  such  obligations)  and  claims  owing  from  the  Borrower  to  Senior  Creditor,  and  all

rights  and  demands  of  Senior  Creditor  upon  or  against  the  Borrower,  any  guarantor,  or  any  other  person

in  connection  with  the  indebtedness,  liabilities  and  obligations  of  Borrower  to  Senior  Creditor,  including

the  indebtedness,  liabilities  and  obligations  of  Borrower  to  Senior  Creditor  under  the  Senior  Creditor

Loan Documents.

“UCC”  means,  individually  and  collectively,  the  New  York  Uniform  Commercial  Code,  the  Uniform

Commercial  Code  of  the  State  of  New  Jersey,  and  the  Uniform  Commercial  Code  of  each  State  in  which

Collateral is located.

2.  Consent.    Each  Junior  Creditor  hereby  consents  to  and  approves  of  the  execution,  delivery  and

performance  by  Borrower  of  the  Senior  Creditor  Loan  Documents,  the  consummation  of  the  transactions

contemplated  thereby,  the  incurrence  by  Borrower  of  the  Senior  Obligations  on  or  about  the  date  hereof

and  from  time  to  time  hereafter,  and  the  grant  by  Borrower  to  Senior  Creditor  of  security  interests  in,  to

and  on  the  Collateral  on  the  date  hereof  and  from  time  to  time  hereafter,  notwithstanding  anything  to  the

contrary contained in any of the Junior Creditor Documents.

3.  Subordination of Junior Obligations.

(a)  Subordination  of  Payment.    Each  Junior  Creditor  hereby  agrees  that  during  the  term  of  this

Agreement,  and  notwithstanding  anything  to  the  contrary  in  the  Junior  Creditor  Documents,  the  Junior

Obligations  are  subordinated  in  right  of  payment  to  the  prior  final  and  indefeasible  payment  in  cash  to

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Senior  Creditor  and  performance  of  the  Senior  Obligations  in  full,  in  the  manner  and  to  the  extent  as

provided  for  herein,  and  that  such  subordination  is  for  the  benefit  of  Senior  Creditor.    Each  Junior

Creditor  hereby  further  agrees  that  except  as  otherwise  specifically  permitted  in  this  Section  3,  prior  to

the  final  and  indefeasible  payment  in  cash  to  Senior  Creditor  and  performance  of  the  Senior  Obligations

in  full  such  Junior  Creditor  will  not  request,  demand,  take,  accept,  or  receive  any  Distribution  from  or  on

behalf of any Borrower or any Senior Guarantor.

(b)  Permitted  Payments  to  Junior  Creditors.   Subject  to  the  terms  and  conditions  contained  herein,

Senior Creditor hereby consents to:

(1)  cash   distributions   to   iGambit   to   fund   (A)   Borrower   Stock   Obligations,   but   not   any

extraordinary  dividend,  distribution,  payment  or  other  amount  with  respect  to  the  Borrower  Stock

Obligations  and  whether  mandatory,  voluntary  or  otherwise  under  the  terms  of  the  Borrower

Charter   Documents,   as   the   Borrower   Charter   Documents   are   in   effect   on   the   date   of   this

Agreement,  and  as  the  Borrower  Charter  Documents  may  be  amended,  restated,  extended  or

otherwise  modified  in  accordance  with  the  terms  hereof  (each,  a  “Permitted  Stock  Dividend”)  and

(B)   cash   Distributions   by   Borrower   to   iGambit   of   management   fees   and   other   amounts   as

compensation   for   services   performed   by   iGambit,   and   for   reimbursable   costs   and   expenses

incurred   by   iGambit   in   the   ordinary   course   of   performing   services   for   Borrower   (each,   a

“Permitted    Management    Fee    Payment”,    and    together    with    Permitted    Stock    Dividends,

“Permitted iGambit Distributions”); and

(2)  cash  Distributions  by  Borrower  to  Seller  Shareholder  in  amounts  equal  to  the  regularly

scheduled   payments   of   principal   and   of   interest   due   and   payable   under   the   terms   of   the

Subordinated  Note,  but  not  any  Distribution,  payment  or  other  amount  in  prepayment  of  any

obligations  or  liabilities  of,  under  or  with  respect  to  the  Subordinated  Note,  whether  mandatory,

voluntary  or  otherwise,  or  due  to  the  acceleration  of  maturity  thereof  for  any  reason  under  the

terms  of  the  Subordinated  Note  or  Asset  Purchase  Documents,  as  the  Subordinated  Note  and  the

Asset  Purchase  Documents  are  in  effect  on  the  date  of  this  Agreement,  and  disregarding  any

amendment,  modification,  restatement  or  replacement  of  the  Seller  Note  or  the  Asset  Purchase

Documents  after  the  date  of  this  Agreement  (each,  a  “Subordinated  Note  Permitted  Payment”);

and

(3)  cash  Distributions  by  Borrower  to  Seller  of  payments  of  the  Earnout  Distributions  due  and

payable  under  the  terms  of  the  Asset  Purchase  Documents   but  not  any  Distribution,  payment  or

other  amount  in  prepayment  of  any  obligations  or  liabilities  of,  under  or  with  respect  to  the

Earnout  Distributions,  whether  mandatory,  voluntary  or  otherwise,  or  due  to  the  acceleration  of

maturity  thereof  for  any  reason  under  the  terms  of  the  Asset  Purchase  Documents,  as  the  Asset

Purchase Documents are in effect on the date of this Agreement, and disregarding any amendment,

modification,  restatement  or  replacement  of  the  Asset  Purchase  Documents  after  the  date  of  this

Agreement (each, a “Permitted Earnout Distribution”).

(c)  Termination  of  Permitted  Payments.   Notwithstanding  anything  in  paragraph  (b)  immediately

above  to  the  contrary,  or  anything  in  the  Asset  Purchase  Documents,  the  Subordinated  Note,  or  the

Borrower Charter Documents to the contrary:

(1)  As a condition  to  making  any  Permitted  iGambit Distribution  Borrower shall have provided

Senior  Creditor  with  at  least  three  (3)  Business  Days’  prior  written  notice  of  the  amount  and  date

of   such   proposed   Permitted   iGambit   Distribution,   and   (except   as   specifically   provided   in

paragraph  3(d),  below)  Borrower  shall  not  make,  and  iGambit  shall  not  directly  or  indirectly

request,  demand,  take,  accept,  or  receive  from  or  on  behalf  of  Borrower  any  Permitted  iGambit

Distribution:

(A)   if  any  payment  of  principal  or  interest  then  due  with  respect  to  the  Senior  Obligations

shall not have been paid to Senior Creditor in full; or

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(B)   if  the  aggregate  amount  of  Permitted  iGambit  Distributions,  including  the  proposed

Permitted  iGambit  Distribution,  would  exceed  Five  Hundred  Thousand  and  00/100  Dollars

($500,000.00) in any calendar year; or

(C)   if  after  giving  effect  to  such  Permitted  iGambit  Distribution  the  remainder  of  the

“Borrowing  Capacity”  (as  such  term  is  defined  in  the  Senior  Creditor  Loan  Documents)  less

the aggregate amount of all  Senior Obligations relating to the “Revolving Credit” (as such term

is  defined  in  the  Senior  Creditor  Loan  Documents)  then  outstanding  would  not  exceed  Five

Hundred Thousand and 00/100 Dollars ($500,000.00) (as determined on a pro forma basis); or

(D)   if  after  giving  effect  to  such  Permitted  iGambit  Distribution  a  “Default”  or  “Event  of

Default” (as such terms are defined in the Senior Creditor Loan Documents) would occur under

the  Senior  Creditor  Loan  Documents  as  a  result  thereof  (as  determined  on  a  pro  forma  basis);

or

(E)   during  any  period  in  which  a  “Default”  or  “Event  of  Default”  (as  such  terms  are

defined in the Senior Creditor Loan Documents) has occurred and is continuing.

(2)  Except  as  specifically  provided  in  paragraph  3(d),  below,  Borrower  shall  not  make,  and

Seller  Shareholder  shall  not  directly  or  indirectly  request,  demand,  take,  accept,  or  receive  from  or

on behalf of Borrower any Subordinated Note Permitted Payment:

(A)   if  any  payment  of  principal  or  interest  then  due  with  respect  to  the  Senior  Obligations

shall not have been paid to Senior Creditor in full; or

(B)   if  after  giving  effect  to  such  Subordinated  Note  Permitted  Payment  the  remainder  of

the  “Borrowing  Capacity”  (as  such  term  is  defined  in  the  Senior  Creditor  Loan  Documents)

less  the  aggregate  amount  of  all  Senior  Obligations  relating  to  the  “Revolving  Credit”  (as  such

term  is  defined  in  the  Senior  Creditor  Loan  Documents)  then  outstanding  would  not  exceed

Five  Hundred  Thousand  and  00/100  Dollars  ($500,000.00)  (as  determined  on  a  pro  forma

basis); or

(C)   if  after  giving  effect  to  such  Subordinated  Note  Permitted  Payment  a  “Default”  or

“Event  of  Default”  (as  such  terms  are  defined  in  the  Senior  Creditor  Loan  Documents)  would

occur (as determined on a pro forma basis); or

(D)   during  any  period  in  which  a  “Default”  or  “Event  of  Default”  (as  such  terms  are

defined in the Senior Creditor Loan Documents) has occurred and is continuing.

(3)  As  conditions  to  making  any  Permitted  Earnout  Distribution  Borrower  shall  have  provided

Senior  Creditor  with  at  least  three  (3)  Business  Days’  prior  written  notice  of  the  amount  and  date

of  such  proposed  Permitted  Earnout  Distribution,  the  “IT  Solutions  Business”  of  Borrower  (as

such   term   is   defined   in   the   Asset   Purchase   Documents)   shall   have   achieved   the   “EBITDA

Threshold”  and  “Revenue  Threshold”  described  in  the  Asset  Purchase  Agreement  applicable  to

such proposed payment, and (except as specifically provided in paragraph 3(d), below)  Borrower

shall  not  make,  and  Seller  shall  not  directly  or  indirectly  request,  demand,  take,  accept,  or  receive

from or on behalf of Borrower any Permitted Earnout Distribution:

(A)   if  any  payment  of  principal  or  interest  then  due  with  respect  to  the  Senior  Obligations

shall not have been paid to Senior Creditor in full; or

(B)   if  after  giving  effect  to  such  Permitted  Earnout  Distribution  the  remainder  of  the

“Borrowing  Capacity”  (as  such  term  is  defined  in  the  Senior  Creditor  Loan  Documents)  less

the aggregate amount of all Senior Obligations relating to the “Revolving Credit” (as  such term

is  defined  in  the  Senior  Creditor  Loan  Documents)  then  outstanding  would  not  exceed  Five

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Hundred Thousand and 00/100 Dollars ($500,000.00) (as determined on a pro forma basis); or

(C)   if  after  giving  effect  to  such  Permitted  Earnout  Distribution  a  “Default”  or  “Event  of

Default”  (as  such  terms  are  defined  in  the  Senior  Creditor  Loan  Documents)  would  occur  (as

determined on a pro forma basis); or

(D)   during  any  period  in  which  a  “Default”  or  “Event  of  Default”  (as  such  terms  are

defined in the Senior Creditor Loan Documents) has occurred and is continuing.

(d)  Enforcement   of   Junior   Obligations   by   Senior   Creditor   following   Default.     Each   Junior

Creditor  will,  upon  the  written  request  of  Senior  Creditor  following  of  an  Event  of  Default  under  the

Senior  Creditor  Loan  Documents,  prove,  enforce  and  endeavor  to  obtain  payment  of  the  aggregate

outstanding  amount  of  all  unpaid  payments  due  and  payable  on  such  Junior  Creditor’s  Obligations,  or

thereafter  becoming  due  and  payable  from  Borrower  to  such  Junior  Creditor,  and  will  turn  over  to  Senior

Creditor  in  precisely  the  form  received,  any  payment  of  any  kind  or  character  on  account  of  the  Junior

Obligations  for  application  to  the  payment  of  any  Senior  Obligations  then  existing.   In  the  event  that  a

Junior  Creditor  shall  fail  to  take  any  such  action  requested  by  Senior  Creditor,  Senior  Creditor  may,  as

attorney-in-fact  for  such  Junior  Creditor,  take  such  action  on  behalf  of  Junior  Creditor  but  for  the  use  and

benefit  of  Senior  Creditor.   Each  Junior  Creditor  hereby  authorizes  and  empowers  (without  imposing  any

obligation on) Senior Creditor, under the circumstances referred to in this paragraph 3(d) to demand, sue

for,  collect  and  receive  every  such  payment  and  distribution  and  give  acquittance  therefor.   Each  Junior

Creditor  or  any  other  holder  of  the  Junior  Obligations  shall  execute  and  deliver  to  Senior  Creditor  or  its

representative  all  such  further  instruments  confirming  the  authorization  referred  to  in  this  paragraph

3(d),  and  any  powers  of  attorney  specifically  confirming  the  rights  of  Senior  Creditor  arising  hereunder,

and  all  such  proofs  of  claim,  assignments  of  claim  and  other  instruments  and  shall  take  all  such  other

actions  as  may  be  requested  by  Senior  Creditor  or  its  representative  in  order  to  enable  Senior  Creditor  or

its representative to enforce any and all claims upon or in respect of such Junior Obligations and to collect

and  give  any  and  all  Distributions  or  payments  which  may  be  payable  or  deliverable  at  any  time  upon  or

with respect to the Junior Obligations.

4.  Distributions; Payments in Trust.   Any Distribution received by  a Junior Creditor in contravention of

the  terms  of  this  Agreement  shall  not  be  commingled  with  any  asset  of such  Junior  Creditor,  shall  be  held

by  such  Junior  Creditor  in  trust  for  Senior  Creditor,  shall  be  delivered  by  such  Junior  Creditor  to  Senior

Creditor,   and   after   delivery   to   Senior   Creditor   may   be   applied   by   Senior   Creditor   to   the   Senior

Obligations  at  such  time  and  in  such  manner  in  Senior  Creditor’s  sole  discretion.    Should  a  Junior

Creditor  receive  any  Distribution  at  any  time  contrary  to  the  terms  of  this  Agreement,  such  Junior

Creditor  will  promptly  deliver  such  Distribution  to  Senior  Creditor  in  precisely  the  form  received  (except

for  the  endorsement  or  assignment  of  the  Junior  Creditor where  necessary)  whether  it  is  due  or  not  due  to

Senior  Creditor  under  the  terms  of  the  Senior  Creditor  Loan  Documents,  and  until  so  delivered  the  same

shall  be  held  in  trust  by  such  Junior  Creditor  as  property  of  Senior  Creditor.   A  Distribution  made  under

this  Agreement  to  a  Junior  Creditor  and  that  is  delivered  to  Senior  Creditor  by  a  Junior  Creditor  pursuant

to  the  foregoing,  is  not,  as  between  such  Junior  Creditor  and  Borrower,  a  payment  by  Borrower  of  or  on

the  Junior  Obligations  of  such  Junior  Creditor  and  the  amount  remitted  by  such  Junior  Creditor  to  Senior

Creditor  shall  be  added  back  to  the  amount  of such  Junior  Creditor’s  Obligations  if  such  Distribution  was

credited  by  such  Junior  Creditor  to  the  payment  of  such  Junior  Creditor’s  Obligations  prior  to  delivery  to

Senior Creditor.

5.  Enforcement of Security Interests.

(a)  Senior Creditor’s Rights and Remedies.   At all times prior to the final and indefeasible payment

in  cash  to  Senior  Creditor  and  performance  of  the  Senior  Obligations  in  full,  Senior  Creditor  shall  have

the  exclusive  right  to  enforce  rights  and  exercise  remedies  with  respect  to  the  Collateral.   In  exercising

rights  and  remedies  with  respect  to  the  Collateral,  Senior  Creditor  may  enforce  the  provisions  of  the

Senior  Creditor  Loan  Documents  and  exercise  remedies  thereunder,  all  in  such  order  and  in  such  manner

as  provided  in  the  Senior  Creditor  Loan  Documents,  provided  that  Senior  Creditor  is  not  otherwise

prohibited  from  taking  such  action  by  the  applicable  terms  of  the  UCC  or  other  applicable  law.   Such

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exercise  and  enforcement  shall  include,  without  limitation,  the  rights  to  sell,  lease,  license  or  otherwise

dispose  of  Collateral,  to  incur  expenses  in  connection  with  such  sale,  lease,  license  or  disposition  and  to

exercise  all  the  rights  and  remedies  of  a  mortgagor  under  applicable  law,  and  of  a  secured  lender  under

the  UCC  and  the  Uniform  Commercial  Code  of  any  applicable  jurisdiction.    Without  in  any  manner

limiting  the  foregoing,  Junior  Creditor  agrees  that  Senior  Creditor  may  exercise  its  remedies  against  or

with  respect  to  the  Collateral  in  any  order  permitted  under  the  terms  of  the  Senior  Creditor  Loan

Documents.

(b)  Right  to  Release;  Cooperation.   In  the  event  that  a  Junior  Creditor  shall,  despite  the  provisions

of paragraph 6(c), below, obtain any security interest, mortgage, lien, charge or encumbrance in, on or to

any   Collateral   pursuant   to   the   Junior   Creditor   Documents,   by   operation   of   law,   or   by   any   legal,

administrative,  judicial  or  quasi-judicial  action  or  proceeding  (collectively,  “Junior  Security  Interests”),

then  Senior  Creditor’s  rights  with  respect  to  the  Collateral  include,  following  the  occurrence  and  during

the  continuation  of  any  “Event  of  Default”  (as  such  term  is  defined  in  the  Senior  Loan  Documents)  the

right  to  release  any  or  all  of  the  Collateral  from  such  Junior  Security  Interests in  connection  with  the  sale,

lease,  license  or  other  disposition  of  such  Collateral,  notwithstanding  that  the  net  proceeds  of  any  such

disposition  may  not  be  sufficient  to  repay  the  Senior  Obligations  and/or  Junior  Obligations  in  full.    If

Senior   Creditor   shall   determine   in   connection   with   any   sale,   lease,   license   or   other   disposition   of

Collateral following the occurrence and during the continuation of any “Event of Default” (as such term is

defined in the Senior Loan Documents) that the termination of Junior Security Interests on  such Collateral

is  necessary  or  advisable,  Junior  Creditor  shall  execute  such  documents  and  instruments  and  shall  take

such  further  actions  as  Senior  Creditor  shall  reasonably  request  to  effectuate  the  release  and  termination

of  all  Junior  Security  Interests  on  such  Collateral.   Each  Junior  Creditor  hereby  irrevocably  constitutes

and  appoints Senior Creditor and  any  officer of Senior Creditor, with  full power of substitution, as its true

and  lawful  attorney-in-fact  with  full  irrevocable  power  and  authority  in  the  place  and  stead  of  such  Junior

Creditor  and  in  the  name  of  such  Junior  Creditor  or  in  Senior  Creditor’s  own  name,  from  time  to  time  in

Senior  Creditor’s  discretion,  for  the  purpose  of  carrying  out  the  terms  of  this  paragraph,  to  take  any  and

all  appropriate  action  and  to  execute  any  and  all  documents  and  instruments  which  may  be  necessary  or

desirable  to  accomplish  the  purposes  of  this  paragraph,  including,  without  limitation,  any  financing

statements,  endorsements,  assignments  or  other  instruments  of  transfer  or  release.   Each  Junior  Creditor

hereby  agrees  to  cooperate  in  all  reasonable  respects  with  the  Senior  Creditor  to  permit  the  orderly

liquidation of any Collateral by Senior Creditor pursuant to the terms hereof.

(c)  Assignment  of  Junior  Security  Interests.   In  the  event  that  a  Junior  Creditor  shall,  despite  the

provisions  of  paragraph  6(c),  below,  obtain  any  Junior  Security  Interest  in,  to  or  on  any  Collateral,  then

without  any  further  action  such  Junior  Creditor  such  Junior  Security  Interest  shall  be  deemed  assigned  to

Senior  Creditor  as  collateral  security  for  the  final  and  indefeasible  payment  in  cash  to  Senior  Creditor

and  performance  of  the  Senior  Obligations  in  full  as  provided  in  the  Senior  Creditor  Loan  Documents.

Additionally,  in  such  case  such  Junior  Creditor  agrees  that  prior  to  the  final  and  indefeasible  payment  in

cash  to  Senior  Creditor  and  performance  of  the  Senior  Obligations  in  full,  such  Junior  Creditor  shall  not

take  any  action,  whether  as  a  creditor,  secured  party  or  otherwise,  to  (1)  enforce  or  foreclose  upon  such

Junior  Security  Interests,  or  levy  upon,  execute  upon,  attach,  take  possession  of  (directly  or  indirectly)  or

otherwise  obtain  control  over  any  Collateral,  any  property,  real  or  personal,  of  any  Senior  Guarantor

securing  the  Senior  Obligations,  or  any  interest  in  any  of  the  foregoing  (including,  but  not  limited  to,

taking  possession  of,  selling,  leasing,  licensing,  assigning,  disposing  of  or  otherwise  hypothecating  any

Collateral),  whether  pursuant  to  the  Junior  Creditor  Documents,  applicable  law  (including,  but  not

limited  to,  the  UCC),  or  otherwise,  or  (2)  enforce  any  rights,  powers  or  remedies  with  respect  to  or

against  any  Collateral,  any  property,  real  or  personal,  of  any  Senior  Guarantor  securing  the  Senior

Obligations,  or  any  interest  in  any  of  the  foregoing,  whether  under  the  Junior  Creditor  Documents,

applicable  law  (including,  but  not  limited  to,  the  UCC)  or  otherwise  (including,  but  not  limited  to,

notifying  Account  Debtors  with  respect  to  any  accounts,  or  exercising  any  rights  of  setoff  affecting  the

Collateral).

(d)  Waiver  of  Claims.   To  the  maximum  extent  permitted  by  law,  each  Junior  Creditor  waives  any

claim it might have against Senior Creditor with respect to, or arising out of, any action or failure to act or

any  error  of  judgment,  negligence,  or  mistake  or  oversight  whatsoever  on  the  part  of  Senior  Creditor,  or

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its  directors,  officers,  employees  or  agents  with  respect  to  any  exercise  of  rights  or  remedies  under  the

Senior  Creditor  Loan  Documents  or  under  applicable  law,  the  process  or  procedure  elected  by  Senior

Creditor  to  sell,  lease,  license  or  otherwise  dispose  of  any  or  all  of  the  Collateral,  or  any  transaction

relating  to  the  Collateral,  except  with  respect  to  any  action,  failure  to  act,  error,  negligence,  mistake  or

oversight   by   Senior   Creditor   constituting   gross   negligence   or   willful   misconduct.     Neither   Senior

Creditor,  nor  any  of  its  directors,  officers,  employees  or  agents  shall  be  liable  to  any  Junior  Creditor  or

any  other  person  for  failure  to  demand,  collect  or  realize  upon  any  of  the  Collateral  or  for  any  delay  in

doing so or shall be under any obligation to sell or otherwise dispose of any Collateral upon the request of

Borrower  or  a  Junior  Creditor  or  any  other  person  or  to  take  any  other  action  whatsoever  with  regard  to

the Collateral or any part thereof.

6.  Restrictions  on  Junior  Creditors.    Prior  to  the  final  and  indefeasible  payment  in  cash  to  Senior

Creditor  and  performance  of  the  Senior  Obligations  in  full,  and  notwithstanding  anything  contained  in

any  of  the  Junior  Creditor  Documents  to  the  contrary,  no  Junior  Creditor  shall,  without  the  prior  written

consent   of   Senior   Creditor,   which   consent   may   be   granted   or   withheld   in   Senior   Creditor’s   sole

discretion, do any of the following:

(a)  amend,  modify,  restate  or  supplement  or  agree  to  any  amendment,  modification,  restatement  or

supplement  of,  or  to,  the  Junior  Obligations  or  any  of  the  Junior  Creditor  Documents  in  any  manner;

provided,  however,  nothing  contained  herein  shall  prohibit  iGambit  as  the  shareholder  of  Borrower  from

voting  to  or  taking  other  actions  to  amend,  restate  or  otherwise  modify  the  Borrower  Charter  Documents

if  such  amendment,  restatement  or  modification  does  not  (i)  increase  the  amount  of  the  Borrower  Stock

Obligations, or (ii) accelerate the payment of any Borrower Stock Obligations;

(b)  accelerate  the  maturity  of,  demand  repayment  of  or  collect  all  or  any  portion  of  the  Junior

Obligations, notwithstanding (1) the occurrence of any default or event of default under and as defined in

any of the Junior Creditor Documents or otherwise, or (2) any event, occurrence or condition, or series of

events,  occurrences  or  conditions,  that  would  permit  a  Junior  Creditor  to  accelerate  maturity  of,  or

demand  repayment  of, all  or  any  portion  of  the  Junior  Obligations, under  the Junior  Creditor  Documents,

applicable law or otherwise; or

(c)  obtain  any  security  interest,  lien,  charge,  mortgage  or  other  encumbrance  in,  on  or  to  any  of  the

Collateral.

7.  Protective  Actions  by  Subordinated  Creditors.   Notwithstanding  anything  to  the  contrary  contained

in  Section  6,  above,  but  subject  to  the  other  provisions  of  this  Agreement,  each  Subordinated  Creditor

may:

(a)  Specifically  subject  to  the  provisions  of  Sections  11  and  12,  below,  file  a  proof  of  claim,  or

statement  of  interest,  vote  on  a  plan  of  reorganization,  and  make  other  filings,  arguments  and  motions

with respect to the Subordinated Obligations in any insolvency proceeding, by or against the Borrower;

(b)  Take  action  as  may  be  necessary  to  preserve  such  Subordinated  Creditor’s  rights  to  enforce  the

Subordinated   Obligations   against   Borrower,   including   actions   necessary   to   preserve   the   right   to

accelerate the Subordinated Obligations, actions necessary to preserve the right to declare a default of the

Subordinated  Obligations,  actions  necessary  to  preserve  the  right  to  demand  payment  from  the  Borrower

of  the  Subordinated  Obligations,  and  actions  necessary  to  a  prevent  the  tolling  of  an  applicable  statute  of

limitations   on   such   Subordinated   Creditor’s   right   to   sue   for   payment   or   performance   of   such

Subordinated Creditor’s Subordinated Obligations;

(c)  File   necessary   pleadings   in   opposition   to   a   claim   objecting   to   or   otherwise   seeking   the

disallowance of such Subordinated Creditor’s Subordinated Obligations;

(d)  Specifically   subject   to   the   provisions   of  Sections   11   and   12,   below,  take   such   actions   as

generally  permitted  to  be  taken  by  unsecured  creditors  in  a  Bankruptcy  Proceeding,  provided  that  no

such actions are adverse to the rights of the Senior Lender under this Agreement; and

(e)  With  respect  to  the  Subordinated  Note,  impose  and  accrue  interest  at  the  default  rate  of  interest

under the Subordinated Note following a Subordinated Default under the Subordinated Note as permitted

by the terms of the Subordinated Note.

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8.  Senior  Creditor’s  Rights;  Continued  Effectiveness  of  this  Agreement.   Senior  Creditor  may  take,

refrain  from  taking  or  omit  to  take  any  and  all  actions  with  respect  to  the  Senior  Obligations  without

affecting  whatsoever  any  of  Senior  Creditor’s  rights  and  remedies  under  this  Agreement,  and  without

affecting   whatsoever   any   of   Junior   Creditors’   agreements,   liabilities   and   obligations   under   this

Agreement.   In  particular,  and  without  limitation,  the  subordination  effected  hereby,  and  the  rights  and

remedies  of  Senior  Creditor  and  the  agreements,  liabilities  and  obligations  of  each  Junior  Creditor  arising

hereunder,  shall  not  be  affected,  modified  or  impaired  in  any  manner  or  to  any  extent  by  Senior  Creditor

at any time and from time to time and without notice of any kind to any Junior Creditor:

(a)  making  one  or  more  additional  loans  to  Borrower  whether  pursuant  to  the  terms  of  the  Senior

Creditor Loan Documents or otherwise;

(b)  altering,  amending,  restating,  extending,  replacing  or  otherwise  modifying  any  or  all  of  the

Senior Creditor Loan Documents;

(c)  altering,  compromising,  renewing,  extending,  accelerating  or  otherwise  changing  the  time  for

payment  or  other  terms  of  the  Senior  Obligations  or  any  part  thereof,  including  but  not  limited  to

increasing   or   decreasing   of   the   principal   amount   of,   and   rate   of   interest   payable   on,   the   Senior

Obligations,  and  granting  one  or  more  extensions  of  the  Senior  Obligations  that  may  be  for  longer  than

the original loan term;

(d)  granting  or  refrain  from  granting  any  waiver,  consent,  release,  indulgence,  extension,  renewal,

modification,  or  taking,  delaying  in  taking  or  refraining  from  or  failing  to  take,  any  action  in  respect  of

the  Senior  Obligations  or  available  to  Senior  Creditor  under  any  of  the  Senior  Creditor  Loan  Documents

or under applicable law;

(e)  taking  and  holding  security  interests,  mortgages,  liens,  charges  and  encumbrances  in,  on  or  to

Collateral  and  other  properties  and  assets  for  the  payment  of  the  Senior  Obligations,  and  exchanging,

enforcing,  waiving,  surrendering  and/or  releasing  any  such  security  interests,  mortgages,  liens,  charges

and  encumbrances  in,  on  or  to  any  Collateral  subject  thereto,  with  or  without  the  substitution  of  new

collateral on any terms or manner in Senior Creditor’s sole discretion;

(f)  releasing,  substituting,  agreeing  not  to  sue,  or  dealing  with  any  one  or  more  of  Borrower’s

sureties, endorsers, or guarantors on any terms or manner in Senior Creditor’s sole discretion;

(g)  determining  how, when and what application of payments and credits shall be made with respect

to the Senior Obligations;

(h)  applying  any  Collateral  subject  to  any  Security  Interests  of  Senior  Creditor,  or  any  proceeds

thereof,  and  directing  the  order  or  manner  of  sale,  lease,  license  or  other  disposition  thereof,  as  Senior

Creditor in its sole discretion may determine; or

(i)  assigning  this  Agreement  in  whole  or  in  part,  or  any  interest  therein,  in  connection  with  an

assignment  in  whole  or  in  part  of  the  Senior  Obligations  and/or  the  Senior  Creditor  Loan  Documents;

provided,  however,  that  notwithstanding  anything  to  the  contrary  contained  in  this  Agreement,  after  any

such  assignment  the  assignee  thereof  shall  have  the  rights  and  obligations  of  Senior  Creditor  only  with

respect to the portion of the Senior Obligations and/or Senior Creditor Loan Documents so assigned.

9.  Creditor Representations.   Each Creditor represents that:

(a)  no representations or agreements of any kind have been made to such party which would limit or

qualify in any way the terms of this Agreement;

(b)  no  Creditor  has  made  any  representation  to  the  other  Creditor  as  to  the  creditworthiness  of

Borrower;

(c)  such  Creditor  has  established  adequate  means  of  obtaining  from  Borrower  on  a  continuing  basis

such  information  regarding  the  Borrower  as  it  deems  necessary.    Each  Creditor  agrees  that  no  other

Creditor  shall  have  any  obligation  to  disclose  to  it  information  or  material  acquired  by  such  Creditor  in

the course of its relationship with Borrower;

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(d)  nothing  contained  in  this  Agreement  or  otherwise  will  in  any  event  be  deemed  to  create  any

fiduciary  relationship  between  the  Creditors  or  to  constitute  any  Creditor  the  agent  of  the  other  Creditor

for  any  purpose.    Each  Creditor  shall  be  individually  responsible  for  managing  its  relationship  with

Borrower; and

(e)  notwithstanding   anything   to   the   contrary   contained   herein,   neither   Senior   Creditor’s   right

receive  repayment  of  the  Senior  Obligations  prior  to  repayment  of  the  Junior  Obligations  as  described  in

this  Agreement,  nor  Senior  Creditor’s  right  to  prohibit  Distributions  and  other  payments  in  connection

with the Junior Obligations pursuant to the terms of this Agreement, shall directly or indirectly require or

otherwise  obligate  any  Creditor  to  provide  any  loan,  financing  or  other  financial  accommodation  to

Borrower.

10.  Waivers of Creditors.  Each Creditor waives any right to require the other Creditor:

(a)  to  make,  extend,  renew,  replace  or  modify  any  loan  to  Borrower  or  to  grant  any  other  financial

accommodation to Borrower whatsoever;

(b)  to   make  or  deliver  to   Borrower  any   presentment,  protest,  demand,  or  notice  of  any   kind,

including notice of any nonpayment of any Obligations;

(c)  except as expressly  provided  by  the terms of this Agreement, to  make or deliver to  such  Creditor

notice  of  any  action,  non-action,  waiver  or  default  on  the  part  of  Borrower  in  connection  with  any

Obligations owed to such Creditor;

(d)  except as expressly provided by the terms of this Agreement, to make or deliver to such Creditor

notice  of  any  action,  non-action,  or  waiver  by  any  other  creditor  of  Borrower  or  any  surety,  endorser,  or

other guarantor in connection with any Obligations of such Creditor;

(e)  to resort for payment or to proceed directly or at once against any person, including Borrower;

(f)  to  proceed  directly  against  or  exhaust  any  security  interests,  mortgages,  liens,  charges  or  other

encumbrances  on  any  Collateral  or  any  other  assets  or  properties  securing  repayment  of  such  Creditor’s

Obligations, if any;

(g)  except  as  expressly  provided  by  the  terms  of  this  Agreement,  to  pursue  any  right  or  remedy

within such Creditor's power; or

(h)  to  commit  any  act  or  omit  to  take  any  action  of  any  kind,  at  any  time,  with  respect  to  any  matter

whatsoever, except as provided in this Agreement.

11.  Liquidation; Dissolution; Bankruptcy.  In the event of (x) any insolvency, bankruptcy, receivership,

custodianship,  liquidation,  reorganization,  readjustment  of  debt,  arrangement,  composition,  assignment

for  the  benefit  of  creditors,  or  other  similar  proceeding  relative  to  Borrower  or  its  creditors,  as  such,  or  its

property,  or  (y)  any  proceeding  of  Borrower  for  voluntary  liquidation,  dissolution,  winding  down  or

bankruptcy proceedings (collectively, an “Insolvency Event”), then and in any such event:

(a)  All  of  the  Senior  Obligations  shall  first  be  finally  and  indefeasibly  paid  in  cash  to  the  Senior

Creditor  in  full  before  any  Distribution  or  other  payment  or  distribution  of  any  kind  or  character  and

whether in cash, property, or securities, shall be made in respect of the Junior Obligations;

(b)  Until  the  Senior  Obligations  are  finally  and  indefeasibly  paid  in  cash  to  Senior  Creditor  in  full,

any  Distribution  or  other  payment  or  distribution  of  any  kind  or  character  and  whether  in  cash,  property,

or  securities,  which  shall  be  payable  or  deliverable  upon  or  in  respect  of  the  Junior  Obligations  to  any

Junior  Creditor  shall  be  paid  or  delivered  directly  to  Senior  Creditor  for  application  in  payment  of  the

amounts then due with respect to the Senior Obligations, and each Junior Creditor irrevocably authorizes,

empowers  and  directs  all  receivers,  custodians,  trustees,  liquidators,  conservators  and  others  having

authority in the assets, property or premises of Borrower to effect all such payments and deliveries;

(c)  Notwithstanding  any  statute,  including,  without  limitation,  the  United  States  Bankruptcy  Code

(the  “Bankruptcy  Code”),  any  rule  of  law  or  bankruptcy  procedures  to  the  contrary,  the  right  of  Senior

Creditor  hereunder  to  have  all  of  the  Senior  Obligations  paid  and  satisfied  in  cash  in  full  prior  to  the

payment  of  any  of  the  Junior  Obligations  shall  include,  without  limitation,  the  right  of  Senior  Creditor  to

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be paid in full all interest accruing on the Senior Obligations due to it after the filing of any petition by or

against  Borrower  in  connection  with  any  bankruptcy  or  similar  proceeding  or  any  other  proceeding

referred  to  in  this  paragraph,  hereof,  prior  to  the  payment  of  any  amounts  in  respect  to  the  Junior

Obligations,  including,  without  limitation,  any  interest  due  to  any  Junior  Creditor  accruing  after  such

date; and

(d)  Each  Junior  Creditor  hereby  authorizes  Senior  Creditor  to  file  an  appropriate  claim  for  and  on

behalf  of  such  Junior  Creditor  on  account  of  such  Junior  Creditor’s  Obligations,  if  such  Junior  Creditor

does not file, and there is not otherwise filed on behalf of such Junior Creditor, a proper claim or proof of

claim  in  connection  with  such  Junior  Creditor’s  Obligations  in  the  form  required  in  any  proceeding

relating  to  an  Insolvency  Event  prior  to  ten  (10)  days  before  the  expiration  of  the  time  to  file  such  claim,

claims  or  proof  of  claim.   In  connection  with  such  authorization,  each  Junior  Creditor hereby  irrevocably

authorizes,  empowers,  and  appoints  Senior  Creditor  as  such  Junior  Creditor’s  agent  and  attorney-in-fact

to  execute,  verify,  deliver  and  file  such  proofs  of  claim  and  to  receive  and  collect  any  and  all  dividends,

payments,  or  other  disbursements  made  thereon  in  whatever  form  the  same  may  be  paid  or  issued  and  to

apply the same on account of such Junior Creditor’s Obligations.

12.  Provisions Applicable After Bankruptcy.

(a)  This  Agreement  shall  continue  in  full  force  and  effect  after  the  filing  of  any  petition  (“Petition”)

by  or  against  Borrower  under  the  Bankruptcy  Code  and  all  converted  or  succeeding  cases  in  respect

thereof.   All  references  herein  to  Borrower,  any  subsidiary  or  any  Senior  Guarantor  shall  be  deemed  to

apply  to  Borrower,  any  subsidiary  or  such  Senior  Guarantor  as  debtor-in-possession  and  to  a  trustee  for

Borrower,  any  subsidiary  or  such  Senior  Guarantor.   The  Senior  Obligations  shall  continue  to  be  treated

as  Senior  Obligations  and  the  provisions  of  this  Agreement  shall  continue  to  govern  the  relative  rights

and  priorities  of  Senior  Creditor  and  the  Junior  Creditors  even  if  all  or  part  of  the  Senior  Obligations  or

the   Senior   Creditor’s   Security   Interests   in   any   Collateral   are   subordinated,   set   aside,   avoided   or

disallowed  in  connection  with  any  Insolvency  Event,  and  this  Agreement  shall  be  reinstated  if  at  any

time  any  payment  of  any  of  the  Senior  Obligations  is  rescinded  or  must  otherwise  be  returned  by  any

holder of all or any portion of the Senior Obligations or any representative of such holder.

(b)  Each  Creditor  agrees  not  to  initiate  or  prosecute  or  encourage  any  other  person,  group  of

persons,  any  organization  or  enterprise,  or  group  of  organizations  or  enterprises,  to  initiate  or  prosecute

any  claim,  action  or  other  proceeding  challenging  the  enforceability  of  the  Senior  Obligations  or  the

Junior Obligations, as applicable, or any Security Interests of Senior Creditor in any Collateral.

(c)  Each  Junior  Creditor  agrees  that  it  shall  not  propose  or  enter  into  any  debtor-in-possession

financing  that  benefits  from  any  Security  Interests  that  is  or  are  equal  to  or  prior  in  right  to  Senior

Creditor’s  Security  Interests  in  any  Collateral,  whether  arising  pre-Petition  or  post-Petition,  and  whether

all or any portion of the  Senior Obligations or all or any of the Senior Creditor’s Security Interests in any

Collateral are pre-Petition or post-Petition.

(d)  Each  Junior  Creditor  agrees  that  it  will  not  vote  for  any  plan  of  reorganization  or  propose  a  plan

of  reorganization  which  provides  for  other  than  payment  in  full  of  the  Senior  Obligations  in  cash  to

Senior Creditor at the time of the effective date of such plan of arrangement.

(e)  No  Junior  Creditor  shall  contest  (or  support  any  other  person  contesting)  (i)  any  request  by

Senior  Creditor  for  adequate  protection,  or  (ii)  any  objection  by  Senior  Creditor  to  any  motion,  relief,

action or proceeding based on Senior Creditor claiming a lack of adequate protection.

(f)  If  Borrower,  any  subsidiary  or  any  Senior  Guarantor  shall  become  subject  to  a  proceeding  under

the  Bankruptcy  Code, and  if  Senior  Creditor shall desire  to  permit the  use  of  cash  collateral or  to  provide

post-Petition  financing  to  Borrower  under  the  Bankruptcy  Code,  each  Junior  Creditor  agrees  as  follows:

(i)  adequate  notice  to  such  Junior  Creditor  shall  be  deemed  to  have  been  provided  for  such  consent  or

post-Petition  financing  if  such  Junior  Creditor  receives  notice  thereof  two  (2)  Business  Days  (or  such

shorter notice as is given to Senior Creditor) prior to the earlier of (a) any hearing on a request to approve

such  post-Petition  financing,  or  (b)  the  date  of  entry  of  an  order  approving  same,  and  (ii)  no  objection

will  be  raised  by  such  Junior  Creditor  to  any  such  use  of  cash  collateral  or  such  post-Petition  financing

from  Senior  Creditor  (and  such  Junior  Creditor  shall  be  deemed  to  have  consented  thereto)  and  such

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Junior  Creditor  will  not  request  adequate  protection  or  any  other  relief  in  connection  therewith, except as

expressly agreed upon in writing by Senior Creditor.

(g)  No  Junior  Creditor  shall  seek  relief  from  the  automatic  stay  or  any  other  stay  in  any  federal  or

state bankruptcy, insolvency or liquidation proceeding in respect of the Senior Obligations.

(h)  Each  Junior  Creditor  agrees  that  it  will  not  raise  any  objection  or  oppose  a  sale  or  other

disposition of any Collateral that is subject to any Security Interests of Senior Creditor in such Collateral,

whether  pre-  or  post-Petition,  free  and  clear  of  any  Security  Interests  of  such  Junior  Creditor  on  such

Collateral,  if  any  and  whether  pre-  or  post-Petition,  or  other  claims  under  Section  363  of  the  Bankruptcy

Code  if  Senior  Creditor  has  consented  to  such  sale  or  disposition  of  such  Collateral.    Each  Junior

Creditor will be deemed to have consented under Section 363 of the Bankruptcy Code to any such sale or

other   disposition   supported   by   Senior   Creditor   and   to   have   released   its   Security   Interests   in   such

Collateral,  if  any  and  whether  pre-  or  post-Petition,  provided  that  (i)  such  Junior  Creditor’s  Security

Interests in such Collateral, if any and whether pre- or post-Petition, attach to the proceeds of such sale or

disposition  with  the  same  priority  and  validity  as  such  Junior  Creditor’s  Security  Interests,  if  any  and

whether  pre-  or  post-Petition,  held  on  the  Collateral  disposed  of  in  such  sale  or  disposition,  and  (ii)  such

Junior  Creditor  will  not  be  deemed  to  have  waived  any  right  to  bid  in  connection  with  such  sale  or

disposition,  and  will  retain  its  right  to  credit  bid  on  the  Collateral  in  any  such  sale  or  disposition  in

accordance with Section 363 of the Bankruptcy Code.

13.  Subrogation.     After  the  Senior  Obligations  are  finally  and  indefeasibly  paid  in  cash  to  Senior

Creditor in full and until a Junior Creditor’s Obligations are finally and indefeasibly in cash to such Junior

Creditor  in  full,  such  Junior  Creditor  shall  be  subrogated  to  the  rights  of  Senior  Creditor  to  receive

Collateral  Distributions  applicable  to  the  repayment  of  the  Senior  Obligations  to  the  extent  that  Collateral

Distributions  otherwise  payable  to  such  Junior  Creditor  have  been  applied  to  the  payment  of  the  Senior

Obligations.    A  Distribution  made  under  this  Agreement  to  Senior  Creditor  on  account  of  the  Senior

Obligations  which  otherwise  would  have  been  made  to  a  Junior  Creditor,  or  that  is  made  to  a  Junior

Creditor  in  violation  of  any  term  or  provision  of  this  Agreement  and  that  is  delivered  to  Senior  Creditor

by  such  Junior  Creditor,  is  not,  as  between  such  Junior  Creditor  and  Borrower,  a  payment  by  the

Borrower of or on such Junior Creditor’s Obligations.

14.  Obligations  of  the  Borrower  Unconditional.   Subject  to  the  provisions  of  this  Agreement,  nothing

contained  in  this  Agreement  is  intended  to  or  shall  impair,  as  between  Borrower  and  any  Creditor,  the

obligations  of  Borrower,  which  are  absolute  and  unconditional,  to  pay  to  such  Creditor  all  Obligations  of

Borrower  to  such  Creditor,  as  and  when  the  same  shall  become  due  and  payable  in  accordance  with  such

Creditor’s  Loan  Documents,  or  is  intended  to  or  shall  affect  the  relative  rights  of  the  creditors  of  the

Borrower other than the Creditors.

15.  Duration  and  Termination;  Reinstatement.   This  Agreement  shall  remain  in  full  force  and  effect

until  (a)  the  final  and  indefeasible  payment  to  Senior  Creditor  in  cash  of  all  of  the  Senior  Obligations  in

full,  and  (b)  the  termination  of  Senior  Creditor’s  obligations  to  lend  to  Borrower  under  the  Senior

Creditor  Loan  Documents.   In  the  event  that  Senior  Creditor is  required,  pursuant  to  any  provisions  of  the

Bankruptcy   Code   or   any   successor   statute   thereto,   or   reason   of   any   bankruptcy,   reorganization,

arrangement,  composition  or  similar  proceeding  or  as  a  result  of  the  appointment  of  a  receiver,  intervenor

or  conservator  of,  or  trustee  or  similar  officer  for,  the  Borrower  or  any  substantial  part  of  Borrower’s

property,  or  otherwise,  to  repay  any  amount  of  any  Collateral  Distribution  paid  to  Senior  Creditor  by

Borrower  in  satisfaction  of  the  Senior  Obligations,  this  Agreement  will  be  revived  and  continue  in  full

force and effect, all as though such Collateral Distribution had not been made.

16.  Miscellaneous Provisions.

(a)  Further  Assurances.   Junior  Creditors  at  their  own  expense  and  at  any  time  from  time  to  time,

upon  the  written  request  of  Senior  Creditor  will  promptly  and  duly  execute  and  deliver  such  further

instruments  and  documents  and  take  such  further  actions  as  Senior  Creditor  reasonably  may  request  for

the  purposes  of  obtaining  or  preserving  the  full  benefits  of  this  Agreement  and  of  the  rights  and  powers

herein granted.

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(b)  Entire  Agreement;  Amendments.    This  Agreement  constitutes  the  entire  understanding  and

agreement  of  the  parties  as  to  the  matters  set  forth  in  this  Agreement.   To  the  extent  there  is  any  conflict

between  this  Agreement  and  any  Loan  Document  or  any  other  document  evidencing  the  Obligations,  this

Agreement  shall  control  among  the  Creditors,  but  shall  not  provide  the  Borrower  with  any  rights  in

connection  with  such  Loan  Document.    Notwithstanding  anything  contained  herein  to  the  contrary,  no

provision  of  this  Agreement  is  intended  to  benefit  any  party  other  than  the  signatories  hereto,  nor  shall

any  such  provision  be  enforceable  by  any  other  party.   The  provisions  of  this  Agreement  supersede  and

replace,  in  their  entirety,  any  other  intercreditor  agreement  or  subordination  agreement  entered  into

among  any  of  the  parties  hereto  with  respect  to  the  matters  set  forth  in  this  Agreement.   No  alteration  of

or  amendment  to  this  Agreement  shall  be  effective  unless  made  in  writing  and  signed  by  each  of  the

Creditors  and  Borrower;  provided  that  the  Creditors  may  enter  into  an  amendment  of  this  Agreement

without  the  consent  of  Borrower  in  the  event  that  such  amendment  does  not  in  any  way  affect  any

agreements or obligations of Borrower hereunder.

(c)  No  Third  Party  Beneficiaries.   The  terms  and  provisions  of  this  Agreement  are  solely  for  the

benefit  of  the  Creditors  and  their  respective  successors  and  assigns  and  shall  not  benefit  in  any  way  any

other  person  not  specifically  a  party  to  the  agreement,  including  but  not  limited  to  Borrower  or  any

guarantor  of  the  Obligations.  Nothing  in  this  Agreement  is  intended  to  effect,  limit,  or  in  any  way

diminish  the  interests  that  each  Creditor  claims  in  their  respective  Security  Interests  so  far  as  the  rights  of

Borrower and third parties are concerned. The Creditors specifically reserve any and all of their respective

rights,  security  interest,  and  right  to  assert  interest  against  Borrower  and  any  third  parties,  including

guarantors of the Obligations.

(d)  Rights  and  Remedies  Cumulative.   Senior  Creditor’s  rights  and  remedies  under  this  Agreement

shall  be  cumulative  and  not  alternative  or  exclusive,  irrespective  of  any  other  rights  or  remedies  that  may

be  available  to  Senior  Creditor  under  any  Senior  Creditor  Loan  Document,  by  operation  of  law  or

otherwise,  and  may  be  exercised  by  Senior  Creditor  at  such  time  or  times  and  in  such  order  as  Senior

Creditor  in  Senior  Creditor’s  sole  discretion  may  determine,  and  are  for  the  sole  benefit  of  Senior

Creditor.   Senior  Creditor’s  failure  to  exercise  or  delay  in  exercising  any  right  or  remedy  shall  not  (a)

preclude  Senior  Creditor  from  exercising  such  right  or  remedy  thereafter,  (b)  preclude  Senior  Creditor

from  exercising any other right or remedy of Senior Creditor, or (c) result in liability to Senior Creditor or

Senior   Creditor’s   affiliates   or   their   respective   members,   managers,   shareholders,   directors,   officers,

partners, employees, consultants or agents.

(e)  Strict  Performance.   The  failure  by  Senior  Creditor  at  any  time  to  require  any  Junior  Creditor’s

strict  compliance  with  or  performance  of  any  provision  of  this  Agreement  shall  not  waive,  affect,  impair

or diminish  any  right of Senior Creditor thereafter to  demand  Junior Creditors’ strict compliance  with  and

performance  of  such  provision.   Any  suspension  or  waiver  by  Senior  Creditor  of  any  default  by  a  Junior

Creditor  of  the  terms  of  this  Agreement  shall  not  suspend,  waive  or  affect  any  other  default  by  any  Junior

Creditor,  whether  the  same  is  prior  or  subsequent  to  such  suspension  or  waiver  and  whether  of  the  same

or a different type.

(f)  Successors  and  Assigns.   This  Agreement,  without  further  reference,  shall  pass  to  and  may  be

relied  on  and  enforced  by  any  assignee,  transferee  or  subsequent  holder  of  any  of  the  Obligations.   In  the

event  of  any  sale,  assignment,  disposition  or  other  transfer  of  any  of  the  Obligations,  the  transferring

Creditor   shall   cause   the   transferee   thereof   to   execute   and   deliver   to   the   other   Creditor   a   written

acknowledgment   of   the   binding   effect   of   this   Agreement   on   such   transferee   and   of   the   continued

effectiveness  of  all  of  the  rights  of  such  other  Creditor  arising  under  this  Agreement,  or  an  agreement

substantially  identical  with  this  Agreement  in  form  and  substance  acceptable  to  such  other  Creditor  in

such other Creditor’s reasonable discretion.

(g)  General  Waivers.   No  party  shall  be  deemed  to  have  waived  any  rights  granted  to  such  party

under  this  Agreement  unless  such  waiver  is  given  in  writing  and  signed  by  the  party  against  whom  such

waiver  is  enforced.   No  delay  or  omission  on  the  part  of  any  party  in  exercising  any  right  shall  operate  as

a  waiver  of  such  right  or  any  other  right.   A  waiver  by  any  party  of  any  provision  of  this  Agreement  shall

not  prejudice  or  constitute  a  waiver  of  such  party's  right  otherwise  to  demand  strict  compliance  with  that

provision  or  any  other  provision  of  this  Agreement.    No  prior  waiver  by  any  party,  nor  any  course  of

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dealing  between  any  of  the  parties,  shall  constitute  a  waiver  of  any  of  such  party's  rights  or  of  another

party's  obligations  as  to  any  further  transactions.   Whenever  the  consent  of  a  party  is  required  under  this

Agreement,  the  granting  of  such  consent  by  such  party  in  any  instance  shall  not  constitute  continuing

consent  to  subsequent  instances  where  such  consent  is  required  and  in  all  cases  such  further  consent  may

be granted or withheld in the sole discretion of such party.

(h)  Severability.   In  the  event  that  any  provision  of  this  Agreement  is  deemed  to  be  invalid,  illegal

or  unenforceable  by  reason  of  the  operation  of  any  law  or  by  reason  of  the  interpretation  placed  thereon

by   any   court   or   governmental   authority,   the   validity,   legality   and   enforceability   of   the   remaining

provisions  of  this  Agreement  shall  not  in  any  way  be  affected  or  impaired  thereby,  and  the  affected

provision  shall  be  modified  to  the  minimum  extent  permitted  by  law  so  as  most  fully  to  achieve  the

intention of this Agreement.

(i)  Notice.   Wherever  this  Agreement  provides  for  notice  to  any  party  (except  as  expressly  provided

to   the   contrary),   it   shall   be   given   by   messenger,   facsimile,   certified   U.S.   mail   with   return   receipt

requested,   or   nationally   recognized   overnight   courier   with   receipt   requested,   effective   when   either

received  or  receipt  rejected  by  the  party  to  whom  addressed,  and  shall  be  addressed  as  provided  in  the

Notice Schedule, or to such other address as the party affected may hereafter designate.

(j)  GOVERNING    LAW;    CONSENT    TO    JURISDICTION.

THIS    AGREEMENT    WAS

NEGOTIATED   IN   THE   STATE   OF   NEW   YORK,  AND   MADE   BY   SENIOR   CREDITOR   AND

ACCEPTED  BY  EACH  JUNIOR  CREDITOR  IN  THE  STATE  OF  NEW  YORK.  THE  PARTIES

AGREE  THAT  THE  STATE  OF  NEW  YORK  HAS  A  SUBSTANTIAL  RELATIONSHIP  TO  THE

PARTIES    AND    TO    THE    UNDERLYING    TRANSACTIONS    CONTEMPLATED    BY    THIS

AGREEMENT,    AND    IN    ALL    RESPECTS,    INCLUDING    MATTERS    OF    CONSTRUCTION,

VALIDITY   AND   PERFORMANCE,   THIS   AGREEMENT   AND   THE   OBLIGATIONS   ARISING

HEREUNDER  SHALL  BE  GOVERNED  BY,  AND  CONSTRUED  IN  ACCORDANCE  WITH,  THE

LAWS    OF    THE    STATE    OF    NEW    YORK    APPLICABLE    TO    CONTRACTS    MADE    AND

PERFORMED   ENTIRELY   IN   SUCH   STATE   WITHOUT   REGARD   TO   ITS   PRINCIPLES   OF

CONFLICTS  OF  LAWS.   TO  THE  FULLEST  EXTENT  PERMITTED  BY  LAW, SENIOR  CREDITOR

AND  EACH  JUNIOR  CREDITOR  HEREBY  UNCONDITIONALLY  AND  IRREVOCABLY  WAIVE

ANY  CLAIM  TO  ASSERT  THAT  THE  LAW  OF  ANY  OTHER  JURISDICTION  GOVERNS  THIS

AGREEMENT,  AND  THIS  AGREEMENT  SHALL  BE  GOVERNED  BY  AND  CONSTRUED  IN

ACCORDANCE   WITH   THE   LAWS   OF   THE   STATE   OF   NEW   YORK   APPLICABLE   TO

CONTRACTS  MADE  AND  PERFORMED  ENTIRELY  IN  SUCH  STATE  WITHOUT  REGARD  TO

ITS  PRINCIPLES  OF  CONFLICTS  OF  LAWS.    ANY  LEGAL  SUIT,  ACTION  OR  PROCEEDING

AGAINST  SENIOR  CREDITOR  OR  ANY  JUNIOR  CREDITOR  ARISING  OUT  OF  OR  RELATING

TO  THIS  AGREEMENT  SHALL  BE  INSTITUTED  IN  THE  SOLE  OPTION  OF  SENIOR  CREDITOR

IN  ANY  FEDERAL  OR  STATE  COURT  LOCATED  IN  WESTCHESTER  COUNTY,  NEW  YORK

PURSUANT   TO   SECTION   5-1402   OF   THE   NEW   YORK   GENERAL   OBLIGATIONS   LAW;

PROVIDED,   HOWEVER,   SENIOR   CREDITOR   MAY,   AT   ITS   OPTION,   COMMENCE   ANY

ACTION,  SUIT  OR  PROCEEDING  IN  ANY  OTHER  APPROPRIATE  FORUM  OR  JURISDICTION

TO   OBTAIN   POSSESSION   OF   OR   FORECLOSE   UPON   ANY   COLLATERAL,   TO   OBTAIN

EQUITABLE  RELIEF  OR  TO  ENFORCE  ANY  JUDGMENT  OR  ORDER  OBTAINED  BY  SENIOR

CREDITOR  AGAINST  ANY  JUNIOR  CREDITOR  OR  BORROWER  OR  WITH  RESPECT  TO  ANY

COLLATERAL,  TO  ENFORCE  ANY  RIGHT  OR  REMEDY  UNDER  THIS  AGREEMENT  OR  TO

OBTAIN  ANY  OTHER  RELIEF  DEEMED  APPROPRIATE  BY  SENIOR  CREDITOR,  AND  SENIOR

CREDITOR  AND  EACH  JUNIOR  CREDITOR  WAIVES  ANY  OBJECTION  WHICH  IT  MAY  NOW

OR   HEREAFTER   HAVE   TO   THE   LAYING   OF   VENUE   OF   ANY   SUCH   SUIT,   ACTION   OR

PROCEEDING,    AND    SENIOR    CREDITOR    AND    EACH    JUNIOR    CREDITOR    HEREBY

IRREVOCABLY   SUBMITS   TO   THE   JURISDICTION   OF   ANY   SUCH   COURT   IN   ANY   SUIT,

ACTION  OR  PROCEEDING.   EACH  OF  THE  PARTIES  ACCEPTS  FOR  ITSELF  THE  EXCLUSIVE

JURISDICTION  OF  THE  AFORESAID  COURTS  AND  WAIVES  ANY  DEFENSE  OF  FORUM  NON

CONVENIENS.   EACH  JUNIOR  CREDITOR  REPRESENTS  AND  ACKNOWLEDGES  THAT  IT  HAS

REVIEWED  THIS  CONSENT  TO  JURISDICTION  PROVISION  WITH  ITS  LEGAL  COUNSEL, AND

HAS  MADE  THIS  WAIVER  KNOWINGLY  AND  VOLUNTARILY,  WITHOUT  COERCION  OR

15 IGX Subord Agree Final.docx

Page 14 of 18

DURESS.

(k)  WAIVER  OF  JURY  TRIAL.   EACH  OF  THE  PARTIES  HERETO  WAIVES  THE  RIGHT  TO

A  JURY  IN  ANY  TRIAL  OF  ANY  CASE  OR  CONTROVERSY  WHICH  CASE  OR  CONTROVERSY

ARISES  OUT  OF  OR  IS  IN  RESPECT  OF  ANY  DEALINGS  AMONG  THEM  OR  ANY  ONE  OF

THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT.

(l)  Counterparts.    This  Agreement  may  be  executed  in  one  or  more  counterparts,  each  of  which

shall be deemed an original, but all of which together shall constitute one and the same instrument.

(m)  UCC  Notice.   Each Creditor hereby (i) acknowledges that this Agreement constitutes notice, for

the  purposes  of  Section  9-611  of  the  UCC,  that  the  other  Creditor  holds  a  security  interest  in,  on  or  to  its

respective  Collateral,  and  (ii)  waives  any  right  to  compel  any  marshaling  of  the  Collateral  by  such  other

Creditor.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

15 IGX Subord Agree Final.docx

Page 15 of 18

IN  WITNESS  WHEREOF,  each  of  the  parties  intending  to  be  bound  hereby  has  caused  this  Agreement

to be executed by its duly authorized representative as of the date first above written.

SENIOR CREDITOR:

KELTIC FINANCIAL PARTNERS II, LP

By:  KELTIC FINANCIAL SERVICES, LLC, its General Partner

By:

Name:

Its:

JUNIOR CREDITORS:

IGX GLOBAL, INC.

By:

Name:

Its:

IGAMBIT, INC.

By:

Name:

Its:

SELLER SHAREHOLDER

THOMAS DUFFY

15 IGX Subord Agree Final.docx

Page 16 of 18

NOTICE SCHEDULE

If to Senior Creditor:

Keltic Financial Partners II, LP

Attn: John P Reilly, President and CEO

580 White Plains Road, Suite 610

Tarrytown, NY  10591

Tel: (914) 921-3555 (ext. 208)

Fax: (914) 921-1154

Keltic Financial Partners II, LP

Attn: Oleh Szczupak, Executive Vice President and Chief

Credit Officer

580 White Plains Road, Suite 610

Tarrytown, NY  10591

Tel: (914) 921-3555 (ext. 221)

Fax: (914) 921-1154

With a copy to:

Terrence A. Greiner, Esq.

5687 Main Street

Williamsville, NY 14221

Tel: (716) 626-9993

Fax: (888) 234-4580

If to iGambit:

Elisa Luqman

Executive Vice President and General Counsel

iGambit Inc.

1050 W. Jericho Turnpike

Suite A

Smithtown, New York 11787

Tel: (631) 670-6777

Fax: (631) 670-6780

With a copy to:

Joel Mayersohn, Esq.

Roetzel & Andress

350  East Las Olas Boulevard

Las Olas Centre II, Suite 1150

Fort Lauderdale, FL 33303-0310

Tel: (954) 759-2763

Fax: (954) 462-4260

If to Seller:

Thomas Duffy

Chief Executive Officer

IGXGLOBAL, CORP.

50 Inwood Road

Rocky Hill, CT 06067

Tel: (860) 513-0112

Fax: (860) 513-1105

With a copy to:

Gregg Lallier, Esq.

Updike, Kelly & Spellacy, P.C.

100 Pearl Street - 17th Floor

Hartford, CT  06103

Tel: (860) 548-2600

Fax: (860) 548-2680

15 IGX Subord Agree Final.docx

Page 17 of 18

BORROWER ACKNOWLEDGMENT

IGXGLOBAL,  CORP.,  a  corporation  organized  under  the  laws  of  the  State  of  Delaware  (“Borrower”),

herby   acknowledges   and   agrees   that   it   has   read   and   understands   the   terms   and   provisions   of   the

Subordination   Agreement   (the   “Subordination   Agreement”)   dated   on   or   about   the   date   of   this

Acknowledgment  between  IGX  GLOBAL,  INC.,  a  corporation  organized  under  the  laws  of  the  State  of

New   Jersey   (“Seller”),   THOMAS   DUFFY,   an   individual   residing   at   18   Jodi   Drive,   Wallingford,

Connecticut  06492  (“Seller  Shareholder”),  IGAMBIT  INC.,  a  corporation  organized  under  the  laws  of

the  State  of  Delaware  (“iGambit”,  and  together  with  Seller,  the  “Junior  Creditors”)  and  KELTIC

FINANCIAL  PARTNERS  II,  LP,  a  Delaware  limited  partnership  (“Senior  Creditor”).   All  capitalized

terms   not   defined   in   this   Acknowledgment   shall   have   the   meanings   ascribed   to   such   terms   in   the

Subordination Agreement.

By   executing   this   Acknowledgment,   Borrower   confirms   that   payment   of   the   Junior   Obligations   is

subordinated to the prior final and indefeasible payment in cash to Senior Creditor and performance of the

Senior  Obligations  in  full  to  the  extent  and  in  the  manner  described  in  the  Subordination  Agreement,  and

that pursuant thereto:

1.

During  the  term  of  the  Subordination  Agreement,  Borrower  shall  not  make  any  Distribution  to  a

Junior  Creditor,  other  than  any  Distributions  specifically  permitted  under  the  provisions  of  Section  3  of

the Subordination Agreement;

2.

Nothing  contained  in  the  Subordination  Agreement  is  intended  to  or  shall  impair,  as  between

Borrower  and  any  Creditor,  the  obligations  of  Borrower,  which  are  absolute  and  unconditional,  to  pay  to

such  Creditor  all  Obligations  of  Borrower  to  such  Creditor,  as  and  when  the  same  shall  become  due  and

payable in accordance with such Creditor’s Loan Documents;

3.

Borrower  will,  at  its  own  expense  and  at  any  time  from  time  to  time,  promptly  and  duly  execute

and   deliver   such   further   instruments   and   documents   and   take   such   further   actions   as   any   Creditor

reasonably  may  request  for  the  purposes  of  obtaining  or  preserving  the  full  benefits  of  the  Subordination

Agreement and of the rights and powers granted to such Creditor therein;

4.

Borrower  agrees  to  pay  upon  demand  all  costs  and  expenses  of  Senior  Creditor  incurred  in

connection  with  the  enforcement  of  the  Subordination  Agreement.   Such  costs  and  expenses  shall  include

Senior Creditor’s reasonable attorney's fees and legal expenses whether or not there is a lawsuit, including

attorneys'  fees  and  legal  expenses  for  bankruptcy  proceedings  (and  including  efforts  to  modify  or  vacate

any   automatic   stay   or   injunction),   appeals,   and   any   anticipated   post-judgment   collection   services.

Borrower also shall pay all court costs and such additional fees as may be directed by the court in any suit

or legal proceeding instituted in connection with the enforcement of the Subordination Agreement; and

5.

The  terms  and  provisions  of  the  Subordination  Agreement  are  solely  for  the  benefit  of  the

Creditors  and  their  respective  successors  and  assigns  and  shall  not  benefit  in  any  way  any  other  person

not  specifically  a  party  to  the  agreement  including  but  not  limited  to  Borrower  or  any  guarantor  of  the

Obligations.    To  the  extent  there  is  any  conflict  between  the  Subordination  Agreement  and  any  Loan

Document  or  any  other  document  evidencing  the  Obligations,  the  Subordination  Agreement  shall  control

among  the  Creditors,  but  shall  not  provide  Borrower  with  any  rights  in  connection  with  such  Loan

Document.

BORROWER:

IGXGLOBAL, CORP.

By:

Name:

Its:

Date:

15 IGX Subord Agree Final.docx

Page 18 of 18Converted by EDGARwiz

PLEDGE AND SECURITY AGREEMENT

This  Pledge  and  Security  Agreement  (this  “Agreement”)  is  between  IGXGLOBAL,  CORP.,  corporation

organized under the laws of the State of Delaware (“Pledgor”) and  KELTIC  FINANCIAL  PARTNERS

II, LP, a Delaware limited partnership (“Secured Party”) and is dated December ___, 2012.

RECITALS:   Pledgor  has  executed  and  delivered  to  Secured  Party  a  Loan  and  Security  Agreement  dated

on   or   about   the   date   hereof   (the   “Obligation   Agreement”),   and   other   agreements,   documents   and

instruments  contemplated  by  the  transactions  contained  in  the  Obligation  Agreement.    The  Obligation

Agreement,   together   with   all   agreements,   documents   and   instruments   executed   and/or   delivered   to

Secured  Party  by  any  person  in  connection  therewith,  as  the  same  may  be  amended,  restated,  extended  or

otherwise  modified  from   time  to  time,  shall  be  referred  to  collectively  as  the  “Loan  Documents”.

Pursuant  to  the  terms  of  the  Obligation  Agreement  Pledgor  is  liable  for  the  payment  and  performance  of

the  “Obligations”  (as  such  term  is  defined  in  the  Obligation  Agreement)  as  further  described  therein.   For

purposes  of  this  Agreement,  Pledgor’s  obligations  to  repay  and  perform  the  Obligations  pursuant  to  the

terms  of  the  Obligation  Agreement  shall  be  referred  to  as  the  “Pledgor  Obligations”.    Pursuant  to  the

terms  of  this  Agreement  Pledgor  is  granting  to  Secured  Party  a  security  interest  in  and  to  the  “Pledged

Collateral” (as defined below) in order to secure repayment of the Pledgor Obligations.

AGREEMENT:

1.  Definitons.   Unless  defined  in  the  Recitals,  above,  in  the  body  of  this  Agreement,  or  in  the  Schedules

hereto,  capitalized  terms  have  the  meanings  given  to  such  terms  in  Obligation  Agreement.    Each  term

defined  in  the  singular  shall  be  interpreted  in  a  collective  manner  when  used  in  the  plural,  and  each  term

defined in the plural shall be interpreted in an individual manner when used in the singular.

2.  Grant  of  Security  Interest.   As  security  for  Pledgor’s  final  and  indefeasible  payment  to  Secured  Party

and performance of the  Pledgor Obligations in full Pledgor hereby pledges to Secured Party, and grants to

Secured  Party  a  continuing  general  lien  upon  and  security  interest  in  and  to  (collectively,  the  “Pledged

Collateral”)  (a)  the  personal  property  described  in  the  attached  Disclosure  Schedule,  all  Accessions  to,

substitutions  for  and  all  replacements,  products  and  cash  and  non-cash  Proceeds  of  the  foregoing  in  any

form,  (b)  all  dividends,  distributions,  income,  interest  and  other  monetary  amounts  earned  on  or  issued

with  respect  to  the  Pledged  Collateral,  and  (c)  any  and  all  property  of  Pledgor  which  is  or  may  hereafter

be  in  the  possession  or  control  of  Secured  Party  in  any  capacity  or  of  any  third  party  acting  on  behalf  of

Secured  Party,  including,  without  limitation,  all  Deposit  Accounts  and  other  accounts  and  all  Money

owed or to be owed by Secured Party to Pledgor.

3.  Nature  of  Security  Interest.    The  pledge,  lien  and  security  interest  granted  to  Secured  Party  shall

continue  in  full  force  and  effect  until  the  Pledgor  Obligations  have  been  finally  and  indefeasibly  paid  to

Secured  Party  and  performed  in  full,  notwithstanding  the  termination  of  any  Loan  Document  (in  whole  or

in  part),  the  termination  of  Secured  Party’s  obligations  to  extend  credit  to  “Borrower”  (as  such  term  is

defined  in  the  Loan  Agreement)  under  the  Loan  Agreement  or  any  other  Loan  Document,  the  full  or

partial  termination  (whether  by  prepayment,  demand  or  acceleration)  of  any  Loan,  that  the  Revolving

Credit  may  from  time  to  time  be  temporarily  in  a  credit  position,  or  any  state  of  facts  or  the  happening

any  event,  occurrence  or  condition,  or  series  of  events,  occurrences  or  conditions,  including,  without

limitation, any of the following, whether or not with notice to or the consent of Pledgor:

(a)      The   invalidity,   irregularity,   illegality   or   unenforceability   of,   or   any   defect   in   any   Loan

Document  or  any  lien,  charge,  mortgage,  pledge,  security  interest  or  other  encumbrance  granted  to

Secured Party in or to the Pledged Collateral or in or to the Property of any other Person; or

07 IGXGLOBAL Pledge Final.docx

Page 1 of 15

(b)      Any  present  or  future  law  or  order  of  any  Governmental  Unit  purporting  to  reduce,  amend  or

otherwise  affect  any  Loan  Document,  the  Obligations  or  Pledgor  Obligations  (in  whole  or  in  part),  any

obligations  or  liabilities  of  any  other  Obligor,  Secondary  Obligor  or  Person  providing  a  Supporting

Obligation with respect to the Obligations; or

(c)      The waiver, compromise, settlement, release or termination of (i) the Obligations, in whole or

in  part,  (ii)  any  right  or  remedy  of  Secured  Party  under  any  Loan  Document,  or  any  liability,  covenant,

agreement   or   other   obligation   of   Borrower   or   any   other   Person   to   Secured   Party   under   any   Loan

Document,  (iii)  any  right  or  remedy  of  Secured  Party  under  this  Agreement,  or  any  liability,  covenant,

agreement  or  other  obligation  of  Pledgor  to  Secured  Party  under  this  Agreement,  or  (iv)  the  Pledgor

Obligations  in  whole  or  in  part,  or  any  liability,  covenant,  agreement  or  other  obligation  of  any  Person

providing   a   Supporting   Obligation   (in   whole   or   in   part)   to   Secured   Party   in   connection   with   the

transactions  contemplated  by  the  Loan  Documents,  or  (v)  any  liability,  covenant,  agreement  or  other

obligation  of  any  other  party  who  has  given  Property  as  security  for  the  repayment  of  the  Loans  or  any

part thereof; or

(d)      The  failure  to  give  notice  to  Pledgor of the  occurrence  of an  Event of Default under any  Loan

Document; or

(e)      The  loss,  release,  sale,  lease,  license,  disposition,  exchange,  or  surrender  of,  or  other  change

in, any Collateral or Pledged Collateral; or

(f)      The   extension   of   the   time   for   payment   of   any   principal   of   or   interest   payable   on   the

Obligations   or   Pledgor   Obligations,   or   of   the   time   for   performance   of   the   Obligations   or   Pledgor

Obligations,  or  other  liabilities,  obligations,  covenants  or  agreements  under  or  arising  out  of  any  Loan

Document, or the extension or renewal of any thereof; or

(g)      The modification or amendment (whether material or otherwise) of any Loan Document; or

(h)      The  performance  of,  or  the  omission  to  perform,  any  of  the  actions  referred  to  in  any  Loan

Document; or

(i)

Secured  Party’s  failure,  omission  or  delay  on  the  part  of  Secured  Party  to  enforce,  assert  or

exercise any right, power, benefit or remedy conferred on Secured Party in any Loan Document; or

(j)

The  voluntary  or  involuntary  liquidation,  dissolution,  sale,  lease,  license  or  other  disposition

of   all  or   substantially   all  the   Collateral  or  Pledged   Collateral,  marshaling   of  Collateral  or  Pledged

Collateral  and  liabilities,  receivership,  insolvency,  bankruptcy,  assignment  for  the  benefit  of  creditors,

reorganization,  arrangement,  composition  with  creditors  or  readjustment  of,  or  other  similar  proceedings

affecting, Borrower or Pledgor or either of their Property; or

(k)      The  default  or  failure  of  Pledgor  to  fully  perform  any  agreement,  covenant  or  obligation  set

forth in this Agreement; or

(l)

Any  event  or  action  that  would,  in  the  absence  of  this  Section  3,  result  in  the  release  or

discharge  of  Pledgor  from  the  performance  or  observance  of  any  obligation,  covenant  or  agreement

contained in this Agreement (other than payment to Secured Party in cash and performance of the Pledgor

Obligations in full or a written release provided by Secured Party to Pledgor).

4.  Perfection and Protection of Security Interest.

(a)      Pledgor  will  execute  and  deliver  to  Secured  Party  security  agreements,  assignments,  control

agreements  and  other  documents  and  instruments  as  Secured  Party  may  at  any  time  reasonably  request  to

establish, attach, perfect, or protect any  pledge, lien, or security  interest granted to  Secured  Party  pursuant

to this Agreement.   Pledgor authorizes Secured Party to file all financing statements, and all continuations

or  amendments  thereof,  to  establish,  attach,  perfect  or  protect  any  pledge,  lien  or  security  interest  granted

to  Secured  Party  in  the  Pledged  Collateral.   Pledgor  agrees  that  subject  to  Pledgor’s  rights  under  Section

9-509(d)(2)  of  the  UCC,  Pledgor  is  not  and  shall  not  be  authorized  to  file  any  financing  statement  or

amendment,  termination  or  corrective  statement  with  respect  to  any  financing  statement  filed  by  Secured

07 IGXGLOBAL Pledge Final.docx

Page 2 of 15

Party,  or  with  respect  to  any  continuation  or  amendment  thereof,  without  the  prior  written  consent  of

Secured Party.

(b)      Pledgor   hereby   appoints   Secured   Party,   and   Secured   Party’s   designee(s),   as   Pledgor’s

attorney-in-fact (i) to execute and deliver notices of lien, financing statements, assignments, and any other

documents,  instruments,  notices,  and  agreements  necessary  for  the  establishment,  attachment,  perfection

or  protection  of  Secured  Party’s  security  interest  in  any  Pledged  Collateral,  (ii)  upon  the  occurrence  and

during  the  continuation  of  an  Event  of  Default,  to  endorse  the  name  of  Pledgor  on  any  checks,  notes,

drafts  or  other  forms  of  payment  or  security  consisting  of  Pledged  Collateral  that  may  come  into  the

possession  of  Secured  Party  or  any  Affiliate  of  Secured  Party,  and  (iii)  generally,  to  do  all  things

necessary  to  carry  out  the  purposes  and  intent  of  this  Agreement.    The  powers  granted  herein,  being

coupled  with  an  interest,  are  irrevocable,  and  Pledgor  approves  and  ratifies  all  acts  of  the  attorney(s)-in-

fact  consistent  with  the  foregoing.   Neither  Secured  Party  nor  any  attorney(s)-in-fact  shall  be  liable  for

any  act  or  omission,  error  in  judgment  or  mistake  of  law  so  long  as  the  same  does  not  constitute  gross

negligence or willful misconduct.

(c)      Pledgor  shall  cooperate  with  Secured  Party  in  obtaining  waivers  or  subordinations  in  favor  of

Secured  Party  as  Secured  Party  may  require  from  third  parties  having  any  interest  in  any  Pledged

Collateral  and  Pledgor  shall  cooperate  with  Secured  Party  in  obtaining  “control”  of  Pledged  Collateral

consisting  of  Deposit  Accounts,  electronic  Chattel  paper,  Investment  Property,  or  Letter-of-Credit  Rights

as provided in Sections 9-104 through 9-107, inclusive, of the UCC.

5.  Secured  Party’s  Right  to  Perform  Pledgor’s  Obligations.    In  the  event  that  Pledgor  shall  fail  to

purchase  or  maintain  insurance  that  covers  any  Pledged  Collateral,  or  to  pay  any  tax,  assessment,  charge

or  levy  of  any  Governmental  Unit  that  could  result  in  a  lien  or  other  encumbrance  over  any  Pledged

Collateral, except as the same may be otherwise permitted hereunder, or in the event that any lien, charge,

encumbrance  or  security  interest  on  any  Pledged  Collateral  not  specifically  permitted  by  the  terms  of  this

Agreement  shall  not  be  paid  in  full  or  discharged,  or  in  the  event  that  Pledgor  shall  fail  to  perform  or

comply  with  any  other  covenant,  promise  or  Obligation  to  Secured  Party  hereunder  or  under  any  other

Loan  Document,  upon  two  (2)  Banking  Days’  notice  to  Pledgor  Secured  Party  may,  but  shall  not  be

required  to,  perform,  pay,  satisfy,  discharge  or  bond  the  same  for  the  account  of  Pledgor,  and  Pledgor

shall  immediately  pay  to  Secured  Party  upon  demand,  and  shall  indemnify  and  hold  Secured  Party

harmless  from  and  against,  all  monies  so  paid  by  Secured  Party,  including  reasonable  attorneys’  fees  and

expenses  incurred  by  Secured  Party  in  connection  therewith,  and  until  fully  paid  by  Pledgor  to  Secured

Party   all   such   amounts   shall   be   added   to   the   Pledgor   Obligations   as   described   in   the   Obligation

Agreement.

6.  Representations.

(a)      Approval of Loan Documents.   Pledgor has reviewed and approved the form and substance of

each of the Loan Documents.

(b)      Validity  and  Enforceability.    Pledgor  has  the  capacity  to  enter  into  this  Agreement.    The

execution,  delivery  and  performance  of  this  Agreement,  and  the  creation  of  all  security  interests,  pledges,

liens,  charges,  mortgages  or  other  encumbrances  in  favor  of  Secured  Party  pursuant  to  this  Agreement  (i)

are  not  in  contravention  of  any  agreement  or  indenture  to  which  Pledgor  is  a  party  or  by  which  Pledgor  is

bound,  Pledgor’s  Charter  Documents,  any  provision  of  applicable  law,  and  (ii)  do  not  require  the  consent

or  approval  of  any  Governmental  Unit  or  any  other  Person  that  has  not  been  obtained,  and  each  such

consent  or  approval  obtained  by  Pledgor  has  been  furnished  to  Secured  Party  prior  to  the  date  of  this

Agreement,  (iii)  are  within  Pledgor’s  organizational  power,  and  (iv)  have  been  duly  authorized  by  all

necessary  or  proper  actions  of  or  pertaining  to  Pledgor  (including  the  consent  of  directors,  officers,

managers, partners, shareholders and/or members, as applicable).

(c)      Title  to  Pledged  Collateral.   Pledgor  is  the  sole  owner  of  the  Pledged  Collateral;  Pledgor  has

not  granted  to  any  other  party  any,  and  there  are  no,  liens,  security  interests,  charges,  mortgages  or  other

encumbrances   in,   to   or   on   the   Pledged   Collateral   except   as   described   in   the   attached   Disclosure

Schedule.

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(d)      No  Violation  or  Restrictions.    Neither  the  execution  and  delivery  of  this  Agreement,  the

consummation  of  the  transactions  contemplated  hereby  nor  the  fulfillment  of  or  compliance  with  the

provisions  of  this  Agreement  will  conflict  with  or  result  in  a  breach  of  any  of  the  terms,  covenants,

conditions  or  provisions  of  any  agreement,  indenture,  judgment  or  order  to  which  Pledgor  is  a  party  or  by

which  Pledgor  or  the  Pledged  Collateral  is  bound,  or  will  constitute  a  default  under  any  of  the  foregoing,

or   result   in   the   creation   or   imposition   of   any   lien,   security   interest,   charge,   mortgage   or   other

encumbrances of any nature whatsoever in, to or on the Pledged Collateral.

(e)      Compliance  with  Law.   Pledgor  is  not  in  violation  of  any  law,  ordinance,  governmental  rule,

regulation,  order  or  judgment  to  which  Pledgor  may  be  subject  which  is  likely  to  materially  affect  the

financial condition of Pledgor or Pledgor’s rights, title and interest in and to the Pledged Collateral.

7.  Covenants   of   Pledgor.     Until  the  final   and   indefeasible   payment   to   Secured   Party  in   cash   and

performance of the Pledgor Obligations in full, Pledgor:

(a)      will  defend  the  Pledged  Collateral  against  the  claims  and  demands  of  all  other  parties;  will

keep  the  Pledged  Collateral  free  from  all  security  interests  or  other  encumbrances,  except  the  security

interests,  liens,  charges  and  encumbrances  granted  to  Secured  Party  pursuant  to  this  Agreement;  and

except  as  specifically  permitted  herein  will  not  sell,  transfer,  assign,  deliver  or  otherwise  dispose  of  any

Pledged Collateral or any interest therein without the prior written consent of Secured Party;

(b)      will  notify  Secured  Party  promptly  in  writing  of  any  change  in  Pledgor’s  address,  specified

on the attached Disclosure Schedule;

(c)      in  connection  herewith,  will  execute  and  deliver  to  Secured  Party  such  financing  statements,

assignments and other documents and do such other things reasonably necessary that relate to the  Pledged

Collateral  and  the  Security  Interest  as  Secured  Party  may  request,  and  pay  all  costs  of  title  searches  and

filing  financing  statements,  assignments  and  other  documents  in  all  public  offices  requested  by  Secured

Party;

(d)      will  pay  all  taxes,  assessments  and  other  charges  of  every  nature  which  may  be  imposed,

levied  or  assessed  against  the  Pledged  Collateral,  except  for  taxes  that  are  being  diligently  contested  in

good faith;

(e)      with  respect  to  any  Pledged  Collateral  that  is  a  “Financial  Asset”  or  “Security  Entitlement”

(as  such  terms  are  defined  in  Article  8  of  the  UCC),  equity  security,  stock  (common  or  preferred),  a

security convertible into stock, a stock warrant, a right to subscribe for, or an option to purchase any stock

or  any  security  convertible  into  or  exchangeable  for  stock,  a  partnership  interest  or  profit  interest  in  any

partnership  (general  or  limited),  an  interest  in  a  limited  liability  company,  joint  venture  or  other  common

enterprise  (individually  and  collectively,  “Ownership  Interests”),  will  not  take  any  action,  directly  or

indirectly, to consent to, authorize or elect to (including, but not limited to, affirmatively voting any of the

Pledged  Collateral  consisting  of  Ownership  Interests),  or  permit  the  issuer  of  such  Ownership  Interest  to

elect  to  (including,  but  not  limited  to,  by  amending  or  otherwise  modifying  the  formation  documents  of

such  issuer),  treat  any  of  the  Collateral  consisting  of  Ownership  Interests  as  a    Financial  Asset  or

“Security”  (as  such  term  is  defined  in  Article  8  of  the  UCC)  under  the  UCC,  specifically  including

Section 8-103 of the UCC; and

(f)      with  respect  to  any  Pledged  Collateral  that  is  an  Ownership  Interest  that  is  delivered  to

Secured  Party  pursuant  to  the  terms  hereof  (if  certificated),  or  that  is  not  certificated,  will  not  take  any

action,  directly  or  indirectly,  (i)  to  deposit,  transfer  or  place  any  such  Ownership  Interest  in  a  “Securities

Account”  (as  such  term  is  defined  in  Article  8  of  the  UCC),  or  (ii)  to  deliver,  transfer,  assign  or  otherwise

hypothecate  any  such  Ownership  Interest  to  any  “Securities  Intermediary”  (as  such  term  is  defined  in

Article  8  of  the  UCC)  or  any  Person  other  than  to  Secured  Party,  or  (iii)  to  grant  to  any  Person  other  than

Secured  Party  a  “Securities  Entitlement”  (as  such  term  in defined  in  Article  8  of  the  UCC)  with  respect  to

any  such  Ownership  Interest,  unless  such  Securities  Intermediary  or  other  Person  has  executed  and

delivered  to  Secured  Party  an  agreement  in  form  and  content  satisfactory  to  Secured  Party  in  its  sole

discretion,  pursuant  to  which  Secured  Party  shall  be  granted  “Control”  (as  such  term  is  defined  in  Article

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8  of  the  UCC)  with  respect  to  such  Securities  Account  or  Ownership  Interest,  respectively,  upon  terms

and conditions satisfactory to Secured Party in its sole discretion.

8.  Income  from  and  Interest  on  Pledged  Collateral.    Prior  to  the  occurrence  and  continuation  of  an

Event of  Default,  Pledgor shall have  the  right to  receive  all income  from,  and  all interest  and  distributions

on,  the  Pledged  Collateral.   Following  the  occurrence  and  during  the  continuation  of any  Event of Default

and until the Pledgor Obligations are finally and indefeasibly paid in cash to Secured Party and performed

in  full,  Secured  Party  shall  have  the  right  to  receive  all  income  from,  and  all  interest  and  distributions  on,

the Pledged Collateral.

9.  Events  of  Default.    Any  of  the  following  events  or  conditions  shall  constitute  an  Event  of  Default

hereunder:

(a)      Pledgor  fails  to  perform  or  observe  any  agreement,  covenant  or  obligation  contained  in  this

Agreement; or

(b)      Any  representation  by  or  on  behalf  of  Pledgor  contained  in  this  Agreement  shall  have  been

breached or otherwise shall have been inaccurate when made; or

(c)      Pledgor purports to terminate this Agreement; or

(d)      Upon the cessation of business or operations of Pledgor; or

(e)      Pledgor  shall  (i)  cease  to  be  Solvent,  (ii)  make  an  assignment  for  the  benefit  of  its  creditors,

(iii)  call  a  meeting  of  its  creditors  to  obtain  any  general  financial  accommodation,  (iv)  suspend  business,

or   (v)   commence   any   case   under   any   provision   of   the   Bankruptcy   Code   including   provisions   for

reorganizations; or

(f)      If   any   case   under   any   provision   of   the   Bankruptcy   Code,   including   provisions   for

reorganizations, shall be commenced against Pledgor and such case remains undismissed, undischarged or

unbonded  for  a  period  of  sixty  (60)  calendar  days  from  the  date  of  commencement,  or  (ii)  if  a  receiver,

trustee  or  equivalent  officer  shall  be  appointed  for  all  or  any  of  Pledgor’s  Property  which  results  in  the

entry of an order for relief or such adjudication or appointment; or

(g)      The  occurrence  of  an  “Event  of  Default”  under  any  Loan  Document  (as  such  term  is  defined

in such Loan Document).

10.  Rights  and  Remedies  of  Secured  Party.   At  all  times  prior  to  the  final  and  indefeasible  payment  to

Secured  Party  in  cash  and  performance  of  the  Pledgor  Obligations  in  full,  Secured  Party  shall  have,  in

addition to all other rights and remedies of Secured Party under this Agreement (a) all rights and remedies

granted  to  a  Secured  party  in  the  UCC,  (b)  all  rights  and  remedies  with  respect  to  Pledged  Collateral

granted  to  Secured  Party  under  the  other  Loan  Documents,  and  (c)  all  rights  and  remedies  of  Secured

Party  with  respect  to  the  Pledged  Collateral  available  under  applicable  law.   Without  limiting  any  rights

or  remedies  Secured  Party  may  have  pursuant  to  this  Agreement,  under  applicable  law,  and  in  addition  to

all  rights  and  remedies  granted  to  Secured  Party  in  the  UCC,  upon  the  occurrence  and  during  the

continuation of an Event of Default:

(a)      Sale,  Lease,  etc.  of  Pledged  Collateral.   Secured  Party  may,  without  demand,  advertising  or

notice,  all  of  which  Pledgor  hereby  waives  (except  as  the  same  may  be  required  by  the  UCC  or  other

applicable  law),  at  any  time  or  times  in  one  or  more  public  or  private  sales  or  other  dispositions,  for  cash,

on  credit  or  otherwise,  at  such  prices  and  upon  such  terms  as  are  commercially  reasonable  (within  the

meaning  of  the  UCC)  (i)  sell,  lease,  license  or  otherwise  dispose  of  any  and  all  Pledged  Collateral,  and/or

(ii) deliver and grant options to a third party to purchase, lease, license or otherwise dispose of any and all

Pledged  Collateral.   Secured  Party  may  sell,  lease,  license  or  otherwise  dispose  of  any  Pledged  Collateral

in  its  then-present  condition  or  following  any  preparation  or  processing  deemed  necessary  by  Secured

Party  in  its  reasonable  discretion.   Secured  Party  may  be  the  purchaser  at  any  such  public  or  private  sale

or  other  disposition  of  Pledged  Collateral,  and  in  such  case  Secured  Party  may  make  payment  of  all  or

any   portion   of  the  purchase  price  therefor  by   the  application   of  all  or  any   portion   of  the   Pledgor

Obligations   due   to   Secured   Party   to   the   purchase   price   payable   in   connection   with   such   sale   or

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disposition. Secured Party may, if it deems it reasonable, postpone or adjourn any sale or other disposition

of  any  Pledged  Collateral  from  time  to  time  by  an  announcement  at  the  time  and  place  of  the  sale  or

disposition  to  be  so  postponed  or  adjourned  without  being  required  to  give  a  new  notice  of  sale  or

disposition;  provided,  however,  that  Secured  Party  shall  provide  Pledgor  with  written  notice  of  the  time

and  place  of  such  postponed  or  adjourned  sale  or  disposition.   Pledgor  hereby  acknowledges  and  agrees

that  Secured  Party’s  compliance  with  any  requirements  of  applicable  law  in  connection  with  a  sale,  lease,

license   or   other   disposition   of   Pledged   Collateral   will   not   be   considered   to   adversely   affect   the

commercial reasonableness of any sale, lease, license or other disposition of such  Pledged Collateral.

(b)      Application  of  Disposition  Proceeds.   Pledgor  shall  be  obligated  for,  and  the  Proceeds  of  any

sale,  lease,  license  or  other  disposition  of  Pledged  Collateral  pursuant  to  this  Section  10  shall  be  applied

(i)  first  to  the  costs  of  retaking,  holding,  preparing  for  disposition,  processing,  and  disposing  of  Pledged

Collateral,  including  the  fees  and  disbursements  of  attorneys,  auctioneers,  appraisers,  consultants  and

accountants  employed  by  Secured  Party  in  connection  with  the  foregoing,  and  then  (ii)  to  the  payment  of

the Pledgor Obligations in whatever order Secured Party may elect.  Secured Party shall pay any Proceeds

of   the   sale,   lease,   license   or   other   disposition   of   Pledged   Collateral  remaining   after   application   as

provided in clause (i) and (ii), above, in accordance with the applicable provisions of the UCC.

(c)      Warranties;  Sales  on  Credit.   Secured  Party  may  sell,  lease,  license  or  otherwise  dispose  of

the   Pledged   Collateral   without   giving   any   warranties   and   may   specifically   disclaim   any   and   all

warranties,   including   but   not   limited   to   warranties   of   title,   possession,   merchantability   and   fitness.

Pledgor  hereby  acknowledges  and  agrees  that  Secured  Party’s  disclaimer  of  any  and  all  warranties  in

connection  with  a  sale,  lease,  license  or  other  disposition  of  Pledged  Collateral  will  not  be  considered  to

adversely  affect  the  commercial  reasonableness  of  any  such  disposition  of  the  Pledged  Collateral.    If

Secured  Party  sells,  leases,  licenses  or  otherwise  disposes  of  any  of  the  Pledged  Collateral  on  credit,

Pledgor will be credited only with payments actually made by the recipient of such Pledged Collateral and

received  by  Secured  Party  and  applied  to  the  Pledgor  Obligations.   If  any  Person  fails  to  pay  for  Pledged

Collateral  acquired  pursuant  this  Section  10  on  credit,  Secured  Party  may  re-offer  the  Pledged  Collateral

for sale, lease, license or other disposition.

(d)      Secured  Party’s  Obligations.   Pledgor  agrees  that  Secured  Party  shall  not  have  any  obligation

to  preserve  rights  to  any  Pledged  Collateral  against  prior  parties  or  to  marshal  any  Pledged  Collateral  of

any  kind  for  the  benefit  of  any  other  creditor  of  Pledgor  or  any  other  Person.   Secured  Party  shall  not  be

responsible  to  Pledgor  for  loss  or  damage  resulting  from  Secured  Party’s  failure  to  enforce  its  security

interests  or  collect  any  Pledged  Collateral  or  Proceeds  or  any  monies  due  or  to  become  due  under  the

Pledgor Obligations or any other liability or obligation of Pledgor to Secured Party.

(e)      Waiver  of  Rights  by  Pledgor.    Except  as  may  be  otherwise  specifically  provided  in  this

Agreement,  Pledgor  waives,  to  the  extent  permitted  by  law,  all  bonds,  security  or  sureties  required  by  any

Governmental  Rule  or  otherwise  as  an  incident  to  Secured  Party’s  taking  of  possession  of,  or  sale,  lease,

license or other disposition of, any Pledged Collateral.

(f)      Rights  and  Remedies  Cumulative.   Secured  Party’s  rights  and  remedies  under  this  Agreement

shall  be  cumulative  and  not  alternative  or  exclusive,  irrespective  of  any  other  rights  or  remedies  that  may

be available to Secured  Party under any  other Loan  Document, by  operation  of law  or otherwise, and  may

be  exercised  by  Secured  Party at such  time  or times  and  in  such  order as  Secured  Party in  Secured  Party’s

sole  discretion  may  determine,  and  are  for  the  sole  benefit  of  Secured  Party.   Secured  Party’s  failure  to

exercise  or  delay  in  exercising  any  right  or  remedy  shall  not  (i)  preclude  Secured  Party  from  exercising

such  right  or  remedy  thereafter,  (ii)  preclude  Secured  Party  from  exercising  any  other  right  or  remedy  of

Secured  Party,  or  (iii)  result  in  liability  to  Secured  Party  or  Secured  Party’s  Affiliates  or  their  respective

members, managers, shareholders, directors, officers, partners, employees, consultants or agents.

11.  Irrevocable  Proxy.   Pledgor  irrevocably  constitutes  and  appoints  Secured  Party,  whether  or  not  the

Pledged  Collateral  consisting  of  Ownership  Interests  has  been  transferred  into  the  name  of  Secured  Party

or  its  nominee,  as  Pledgor’s  proxy  with  full  power,  in  the  same  manner,  to  the  same  extent  and  with  the

same effect as if Pledgor were to do the same:

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(a)      to  attend  all  meetings  of  equityholders  of  the  issuer(s)  of  any  of  such  Ownership  Interests

(each,  an  “Issuer”)  held  from  the  date  hereof  and  to  vote  the  Ownership  Interests  at  such  meeting  in  such

manner  as  Secured  Party  shall  reasonably  deem  appropriate  including,  without  limitation,  in  favor  of  the

liquidation of any Issuer;

(b)

to  consent,  in  the  reasonable  discretion  of  Secured  Party,  to  any  and  all  action  by  or  with

respect  to  any  Issuer  for  which  the  consent  of  the  stockholders  of  any  Issuer  is  or  may  be  necessary  or

appropriate;

(c)      without  limitation,  to  do  all  things  which  Pledgor,  acting  in  a  commercially  reasonable

manner,  can  or  could  do  as  an  owner  of  an  equity  or  profits  interest  of  any  Issuer,  giving  to  Secured  Party

full  power  of  substitution  and  revocation;  provided,  however,  that  this  proxy  shall  not  be  exercisable  by

Secured  Party  and  Pledgor  alone  shall  have  the  foregoing  powers  (whether  or  not  the  Ownership  Interests

have  been  transferred  into  the  name  of  Secured  Party  or  its  nominee)  until  Secured  Party  has  given  to

Pledgor  notice  in  writing  of  Secured  Party’s  election  to  exercise  this  proxy  and  an  Event  of  Default  has

occurred  and  is  continuing;  provided,  further,  that  Secured  Party  may,  at  its  option  upon  notice  to

Pledgor,  elect  to  postpone  having  this  proxy  become  exercisable  notwithstanding  the  occurrence  of  any

event  described  in  this  sentence  which  would  otherwise  cause  this  proxy  to  become  exercisable.   This

proxy  shall  terminate  when  this  Agreement  is  no  longer  in  full  force  and  effect  as  provided  in  this

Agreement.   Pledgor  hereby  revokes  any  proxy  or  proxies  heretofore  given  by  Pledgor  to  any  person  or

persons  whatsoever  and  agrees  not  to  give  any  other  proxies  in  derogation  hereof  until  this  Pledge

Agreement is no longer in full force and effect; and

(d)      Pledgor  shall  deliver  promptly  to  Secured  Party  copies  of  all  notices,  statements  or  other

communications  received  by  Pledgor  or  its  nominee  as  registered  owner  of  the  Ownership  Interests,  and

upon  demand  and  receipt  of  payment  of  necessary  expenses  thereof.   After  the  occurrence  and  during  the

continuation  of  an  Event  of  Default,  Pledgor  (i)  shall  give  to  Secured  Party  or  its  designee  a  proxy  or

proxies to vote and take all action with respect to such Ownership Interests, (ii) hereby authorizes Secured

Party  to  transfer  the  Ownership  Interests  or  any  part  thereof  into  Secured  Party’s  own  name  or  that  of

Secured  Party’s  nominee  so  that  Secured  Party  or  its  nominee  may  appear  of  record  as  the  sole  owner

thereof,  and  (iii)  hereby  waives  all  rights  to  be  advised  of  or  to  receive  any  notices,  statements  or

communications received by Secured Party or its nominee as record owner of the Ownership Interests.

12.  General Provisions.

(a)      Rights  and  Remedies  Cumulative.   Secured  Party’s  rights  and  remedies  under  this  Agreement

(specifically including all rights and remedies of Secured Party under Section 10) shall be cumulative and

not  alternative  or  exclusive,  irrespective  of  any  other  rights  or  remedies  that  may  be  available  to  Secured

Party  under  any  other  Loan  Document,  by  operation  of  law  or  otherwise,  and  may  be  exercised  by

Secured  Party  at  such  time  or  times  and  in  such  order  as  Secured  Party  in  Secured  Party’s  sole  discretion

may  determine,  and  are  for  the  sole  benefit  of  Secured  Party.   Secured  Party’s  failure  to  exercise  or  delay

in  exercising  any  right  or  remedy  shall  not  (a)  preclude  Secured  Party  from  exercising  such  right  or

remedy thereafter, (b) preclude Secured Party from  exercising any other right or remedy of Secured Party,

or  (c)  result  in  liability  to  Secured  Party  or  Secured  Party’s  Affiliates  or  their  respective  members,

managers, shareholders, directors, officers, partners, employees, consultants or agents.

(b)      Reinstatement.   The  agreements,  covenants,  liabilities  and  obligations  of  Pledgor  set  forth  in

this  Agreement  (including,  but  not  limited  to,  the  final  and  indefeasible  payment  to  Secured  Party  in  cash

and  performance  of  the  Pledgor  Obligations  in  full,  and  the  grant  to  Secured  Party  of  the  security

interests,  lien,  charges  and  encumbrances  described  in  this  Agreement)  shall  continue  to  be  effective,  or

be  reinstated,  as  the  case  may  be,  if  at  any  time  any  payment  in  respect  of  the  Pledgor  Obligations  is

rescinded  or  must  otherwise  be  restored  or  returned  by  Secured  Party  by  reason  of  any  bankruptcy,

reorganization,  arrangement,  composition  or  similar  proceeding  or  as  a  result  of  the  appointment  of  a

receiver, intervenor  or  conservator  of, or  trustee  or  similar  officer  for, Pledgor or  any  other  Person, or  any

Property of Pledgor or any other Person, or otherwise, all as though such payment had not been made.

(c)      Successors  and  Assigns.   This  Agreement  is  entered  into  for  the  benefit  of  the  parties  hereto

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and  their  successors  and  assigns  and  shall  be  binding  upon  the  parties,  their  successors  and  assigns.

Secured  Party  shall  have  the  right,  without  the  necessity  of  any  consent,  authorization  or  other  action  by

Pledgor,  to  sell,  assign,  securitize  or  grant  participations  in  all  or  a  portion  of  Secured  Party’s  interest  in

the  Loans  to  other  financial  institutions  of  Secured  Party’s  choice  and  on  such  terms  as  are  acceptable  to

Secured  Party  in   Secured  Party’s  sole  discretion.     Pledgor  shall  not  assign,  exchange  or  otherwise

hypothecate  any  rights,  liabilities  or  obligations  under  this  Agreement,  in  whole  or  in  part,  without  the

prior  written  consent  of  Secured  Party,  which  consent  may  be  granted  or  withheld  in  Secured  Party’s  sole

discretion,  and  any  attempted  assignment,  exchange  or  hypothecation  without  Secured  Party’s  written

consent shall be void and be of no effect.

(d)      Notice.    Wherever  this  Agreement  provides  for  notice  to  any  party  (except  as  expressly

provided  to  the  contrary),  it  shall  be  given  by  messenger,  facsimile,  certified  U.S.  mail  with  return  receipt

requested,   or   nationally   recognized   overnight   courier   with   receipt   requested,   effective   when   either

received  or  receipt  rejected  by  the  party  to  whom  addressed,  and  shall  be  addressed  as  provided  in  the

Disclosure Schedule, or to such other address as the party affected may hereafter designate.

(e)      Strict  Performance.    The  failure  by  Secured  Party  at  any  time  to  require  Pledgor’s  strict

compliance  with  or  performance  of  any  provision  of  this  Agreement  shall  not  waive,  affect,  impair  or

diminish   any   right   of   Secured   Party   thereafter   to   demand   Pledgor’s   strict   compliance   with   and

performance  of  such  provision.   Any  suspension  or  waiver  by  Secured  Party  of  any  Default  or  Event  of

Default shall not suspend, waive or affect any other Default or Event of Default, whether the same is prior

or subsequent to such suspension or waiver and whether of the same or a different type.

(f)      Waiver.   Pledgor  waives  presentment,  protest,  notice  of  dishonor  and  notice  of  protest  with

respect  to  any  Document  or  Instrument  on  or  for  which  it  may  be  liable  to  Secured  Party  as  maker,

endorser, guarantor or otherwise (including but not limited to this Agreement and each Note).

(g)      Construction  of  Agreement.   The  parties  hereto  agree  that  the  terms,  provisions  and  language

of  this  Agreement  were  the  result  of  negotiations  between  the  parties,  and,  as  a  result,  there  shall  be  no

presumption   that   any   ambiguities   in   this   Agreement   shall   be   resolved   against   either   party.     Any

controversy   over   the   construction   of   this   Agreement   shall   be   decided   without   regard   to   events   of

authorship or negotiation.

(h)      Expenses; Taxes.

(i)

Pledgor  shall  reimburse  Secured  Party  for  all  expenses  incurred  by  Secured  Party  in

connection with the transactions contemplated by this Agreement or the Obligation Agreement.

(ii)     If,  at  any  time  or  times  prior  or  subsequent  to  the  Effective  Date,  and  regardless  of

whether  any  of  the  transactions  contemplated  by  this  Agreement  are  concluded,  Secured  Party

reasonably  employs  counsel  for  advice  or  other  representation,  reasonably  incurs  legal  fees  or

expenses,  consulting  fees  or  expenses,  fees,  costs  or  expenses  of  external  professionals  engaged  by

Secured  Party,  or  reasonably  incurs  other  out-of-pocket  costs  or  expenses  in  connection  with:   (a)

the  exercise  of  any  right  or  remedy  of  Secured  Party  described  in  this  Agreement  or  any  other  Loan

Document  executed  by  Pledgor;  (b)  the  negotiation  and  preparation  of  this  Agreement  or  any  other

Loan  Document  executed  by  Pledgor,  or  any  amendment,  modification  or  restatement  of  this

Agreement   or   any   other   Loan   Document  executed   by   Pledgor;   (c)   the   administration   of   this

Agreement  or  any  other  Loan  Document  executed  by  Pledgor  and  the  transactions  contemplated

hereby and thereby; (d) any litigation, contest, dispute, suit, proceeding or action (whether instituted

by  Secured  Party,  Pledgor  or  any  other  Person)  in  any  way  relating  to  the  Pledged  Collateral,  this

Agreement  or  any  other  Loan  Document  executed  by  Pledgor;  (e)  the  establishment,  attachment,

perfection  or  protection  of  any  security  interest,  lien,  charge  or  encumbrance  on  the  Pledged

Collateral;  (f)  any  attempt  to  enforce  any  right  or  remedy  of  Secured  Party  against  Pledgor  or  any

other  Person  who  may  be  obligated  to  Secured  Party  by  virtue  of  this  Agreement  or  any  other  Loan

Document  executed  by  Pledgor  including,  without  limitation,  Account  Debtors;  or  (g)  any  attempt

to  inspect,  verify,  protect,  preserve,  restore,  collect,  sell,  lease,  license,  liquidate  or  otherwise

dispose  of  or  realize  upon  the  Pledged  Collateral;  then,  in  any  such  event,  all  reasonable  attorneys’

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fees  arising  from  such  services  and  all  expenses,  costs  and  charges  of  such  counsel,  all  fees,  costs,

expenses and charges of consultants and professionals engaged by Secured Party, and all other costs

and  out-of-pocket  expenses  of  Secured  Party  relating  to  any  of  the  events  or  actions  described

above  shall  be  payable  by  Pledgor  to  Secured  Party,  and  shall  be  additional  Pledgor  Obligations

under  the  Obligation  Agreement  secured  by  the  Pledged  Collateral.    Pledgor  acknowledges  and

agrees  that  upon  the  occurrence  and  during  the  continuation  of  any  Event  of  Default  Pledgor  shall

pay directly or reimburse Lender for all fees, costs, expenses and charges incurred by  Secured Party

in Secured Party’s sole discretion in connection with the foregoing matters.

(iii)    Additionally,  if  any  tax,  levy  or  charge  (including  any  intangibles  tax,  stamp  tax  or

recording  tax)  shall  be  imposed  upon  or  payable  by  Secured  Party  in  connection  with  the  execution

or  delivery  of  this  Agreement,  or  the  execution,  delivery,  issuance  or  recording  of  any  other  Loan

Document  executed   by   Pledgor,  or   the   creation   of   any   of   the   Pledgor   Obligations  under  the

Obligation  Agreement  (a)  Pledgor  will  pay  (or  will  promptly  reimburse  Secured  Party  for  the

payment  of)  all  such  taxes,  levies  and  charges  including,  but  not  limited  to,  any  interest  and

penalties  thereon,  (b)  following  receipt  of  notice  from  Secured  Party  regarding  the  claim   for

payment  of,  or  imposition  of,  any  such  tax,  levy  or  charge,  with  the  consent  of  Secured  Party,

which  consent  may  not  be  unreasonably  withheld,  conditioned  or  delayed,  Pledgor  shall  have  the

right, at its own cost and expense, to contest the imposition of such tax, levy or charge, and with the

consent  of  the  Secured  Party,  which  consent  may  not  be  unreasonably  withheld,  conditioned  or

delayed, to compromise or settle such claim for such tax, levy or charge and pay the same following

such  compromise  or  settlement,  and  (c)  in  any  circumstance  described  in  clause  (a)  or  (b)  above,

Pledgor  will  indemnify,  defend  and  hold  Secured  Party  harmless  from  and  against  any  liability  in

connection therewith.

(iv)     Pledgor’s  obligations  under  this  Section  12(h)  shall  survive  termination  of  the  Loans  and

the termination of this Agreement.

(i)

Waiver  of  Right  to  Jury  Trial.   Pledgor  and  Secured  Party  recognize  that  in  matters  related  to

the  Loans  and/or  this  Agreement,  and  as  it  may  be  subsequently  modified  and/or  amended,  either  party

may  be  entitled  to  a  trial  in  which  matters  of  fact  are  determined  by  a  jury  (as  opposed  to  a  trial  in  which

such  matters are  determined  by  a  judge, magistrate, referee  or other elected  or appointed  decider of  facts).

By  executing  this  Agreement,  Secured  Party  and  Pledgor  will  give  up  their  respective  right  to  a  trial  by

jury.  Pledgor  and  Secured  Party  each  hereby  expressly  acknowledges  that  this  waiver  is  entered  into  to

avoid delays, minimize trial expenses, and streamline the legal proceedings in order to accomplish a quick

resolution  of  claims  arising  under  or  in  connection  with  Agreement,  the  Loan(s),  the  Note(s)  and  the

transactions contemplated by this Agreement.

(i)   WAIVER  OF  JURY  TRIAL.   TO  THE  MAXIMUM  EXTENT  NOT  PROHIBITED  BY

LAW,  PLEDGOR  AND  SECURED  PARTY  EACH  HEREBY  KNOWINGLY,  VOLUNTARILY

AND  INTENTIONALLY  WAIVES  ANY  RIGHT  THAT  PLEDGOR  OR  SECURED  PARTY

MAY  HAVE  TO  A  TRIAL  BY  JURY  IN  RESPECT  TO  ANY  LITIGATION, ACTION, SUIT  OR

PROCEEDING,  DIRECTLY  OR  INDIRECTLY,  AT  ANY  TIME  ARISING  OUT  OF,  UNDER,

OR  IN  CONNECTION  WITH  THIS  AGREEMENT,  ANY  LOAN,  ANY  NOTE,  ANY  LOAN

DOCUMENT    OR    ANY    TRANSACTION    CONTEMPLATED    BY    THIS    AGREEMENT,

BEFORE OR AFTER MATURITY.

(ii)      CERTIFICATIONS.      PLEDGOR   HEREBY   CERTIFIES   THAT   NEITHER   ANY

REPRESENTATIVE    NOR    AGENT    OF    SECURED    PARTY    NOR    SECURED    PARTY’S

COUNSEL   HAS   REPRESENTED,   EXPRESSLY   OR   OTHERWISE,   OR   IMPLIED   THAT

SECURED  PARTY  WOULD  NOT, IN  THE  EVENT  OF  ANY  LITIGATION, ACTION  SUIT  OR

PROCEEDING,     SEEK     TO     ENFORCE     THE     FOREGOING     WAIVER.

PLEDGOR

ACKNOWLEDGES  THAT  SECURED  PARTY  HAS  BEEN  INDUCED  TO  ENTER  INTO  THIS

AGREEMENT  AND  THE  TRANSACTIONS  CONTEMPLATED  BY  THIS  AGREEMENT  BY,

AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATION HEREIN.

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(j)

Indemnification by Pledgor.   Pledgor hereby covenants and agrees to indemnify, defend (with

counsel  selected  by  Secured  Party)  and  hold  harmless  Secured  Party,  Secured  Party’s  Affiliates  and  their

respective    members,    managers,    directors,    shareholders,    officers,    partners,    employees,    attorneys,

consultants  and  agents  (collectively,  the  “Indemnitees”)  from  and  against  any  and  all  claims,  damages,

liabilities, costs  and  expenses  (including, without limitation, actual attorney’s fees  and  expenses  and  other

costs  of  investigation  or  defense,  including  those  incurred  upon  any  appeal),  which  may  be  incurred  by  or

asserted  against  any  Indemnitee  (whether  for  breach  of  contract,  in  tort  or  under  any  other  theory  of

liability)  in  connection  with  or  as  a  result  of  credit  having  been  extended,  suspended  or  terminated  under

any  other  Loan  Documents  or  with  respect  to  the  execution,  delivery,  enforcement,  performance  or

administration  of,  or  in  any  other  way  arising  out  of  relating  to,  this  Agreement  or  the  other  Loan

Documents  or  any  other  documents  or  transactions  contemplated  by  or  referred  to  in  this  Agreement,  or

any  action  or  failure  to  act  with  respect  to  any  of  the  foregoing,  including  any  and  all  product  liabilities,

environmental  liabilities,  taxes  and  legal  costs  and  expenses  arising  out  of  or  incurred  in  connection  with

disputes  between  or  among  any  parties  to  and  of  the  Loan  Documents,  the  correctness,  validity  or

genuineness  of  any  Instrument  or  Document  that  may  be  released  or  endorsed  to  Borrower  by  Secured

Party  (which  shall  automatically  be  deemed  to  be  without  recourse  to  Secured  Party  in  any  event),  the

existence,   character,   quantity,   quality,   condition,   value   or   delivery   of   any   Goods   purporting   to   be

represented  by  any  such  Instruments  or  Documents,  or  any  broker’s  commission,  finder’s  fee  or  similar

charge  or  fee  payable  by  Pledgor  in  connection  with  the  Loans  and  the  transactions  contemplated  by  this

Agreement  (collectively,  the  “Indemnified  Liabilities”),  except  to  the  extent  that  any  such  Indemnified

Liability  is  finally  determined  by  a  court  of  competent  jurisdiction  to  have  resulted  primarily  from  such

Indemnitee’s   gross   negligence   or   willful   misconduct.     PLEDGOR,   FOR   ITSELF   AND   FOR   ALL

SUCCESSORS,  ASSIGNS,  THIRD  PARTY  BENEFICIARIES  AND  ALL  OTHER  PERSONS  THAT

MAY  ASSERT  CLAIMS  DERIVATIVELY  THROUGH  SUCH  PARTY,  HEREBY  WAIVES  ANY

AND  ALL  CLAIMS  FOR  INDEMNIFIED  LIABILITIES  AGAINST  ALL  INDEMNITEES  EXCEPT

TO  THE  EXTENT  THAT  ANY  SUCH  INDEMNIFIED  LIABILITY  IS  FINALLY  DETERMINED  BY

A  COURT  OF  COMPETENT  JURISDICTION  TO  HAVE  RESULTED  PRIMARILY  FROM  SUCH

INDEMNITEE’S  GROSS  NEGLIGENCE  OR  WILLFUL  MISCONDUCT.   NO  INDEMNITEE  SHALL

BE RESPONSIBLE OR LIABLE TO PLEDGOR, ANY  SUCCESSOR, ASSIGNEE OR THIRD  PARTY

BENEFICIARY  OR  ANY  OTHER  PERSON  ASSERTING  CLAIMS  DERIVATIVELY  THROUGH

SUCH  PARTY,  FOR  ANY  ACT  OR  FAILURE  TO  ACT  UNDER  ANY  POWER  OF  ATTORNEY  OR

FOR  INDIRECT  PUNITIVE,  EXEMPLARY  OR  CONSEQUENTIAL  DAMAGES  THAT  MAY  BE

ALLEGED    AS    A    RESULT    OF    CREDIT    HAVING    BEEN    EXTENDED,    SUSPENDED    OR

TERMINATED  UNDER  ANY  OTHER  LOAN  DOCUMENT  OR  AS  A  RESULT  OF  ANY  OTHER

TRANSACTION   CONTEMPLATED   HEREUNDER   OR   THEREUNDER.   THE   PROVISIONS   OF

THIS    SECTION    12(j)    SHALL    SURVIVE    TERMINATION    OF    THE    LOANS    AND    THE

TERMINATION  OF  THIS  AGREEMENT.   Notwithstanding  the  foregoing,  in  no  event  shall  Pledgor  be

liable to any Indemnitee for any indirect, punitive, exemplary or consequential damages.

(k)      Savings  Clause  for  Indemnification.   To  the  extent  that  Pledgor’s  undertaking  to  indemnify,

pay  and  hold  harmless  set  forth  in  this  Section  12(j)  above  may  be  unenforceable  because  it  violates  any

law  or  public  policy,  Pledgor  shall  contribute  the  maximum  portion  which  it  is  permitted  to  pay  and

satisfy  under  applicable  law  to  the  payment  and  satisfaction  of  all  matters  referred  to  under  this  Section

12(j).

(l)

Entire  Agreement;  Amendments;  Secured  Party’s  Consent.   This  Agreement  (including  the

Schedules  and  Exhibits)  constitutes  the  entire  agreement  between  Secured  Party  and  Pledgor  with  respect

to  the  pledge  by  Pledgor  of  the  Pledged  Collateral  to  Secured  Party,  and  supersedes  all  prior  and

contemporaneous  agreements,  understandings,  inducements  or  conditions  between  Secured  Party  and

Pledgor,  whether  express  or  implied,  oral  or  written,  with  respect  to  the  subject  matter  hereof;  provided,

however,  if  there  is  any  conflict  between  the  terms  or  provisions  of  this  Agreement  and  the  Loan

Agreement,  the  terms  of  the  Loan  Agreement  shall  supersede  and  govern  such  conflicting  terms  or

provisions.  No amendment or waiver of any provision of this Agreement, nor consent to any departure by

Pledgor  therefrom,  shall  in  any  event  be  effective  unless  the  same  shall  be  Authenticated  by  Secured

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Party  in  a  Record,  and  then  such  amendment,  waiver  or  consent  shall  be  effective  only  in  the  specific

instance and for the specific purpose for which given.

(m)    Cross  Default;  Cross  Collateralization.    Pledgor  hereby  acknowledges  and  agrees  that  (a)

each  other  Loan  Document  and  agreement  between  Pledgor  and  Secured  Party  is  hereby  amended,  to  the

extent  necessary,  to  provide  that  a  Default  or  an  Event  of  Default  under  this  Agreement  is  a  default  or

event  of  default,  respectively,  under  each  such  Loan  Document  or  agreement,  and  a  default  or  event  of

default  under  any  Loan  Document  or  agreement  between  Pledgor  and  Secured  Party  is  a  Default  or  an

Event  of  Default,  respectively,  under  this  Agreement,  and  (b)  the  Pledged  Collateral  secures  the  final  and

indefeasible  payment  to  Secured  Party  in  cash  and  performance  of  the  Pledgor  Obligations  in  full,

whether  now  or  hereafter  outstanding  under  all  other  Loan  Documents  and  agreements  between  Pledgor

and  Secured  Party,  and  (c)  that  the  Collateral  and  any  other  Property  of  any  other  Person  pledged  to

Secured  Party  in  connection  with  the  transactions  contemplated  by  this  Agreement  under  any  other  Loan

Document  or  agreement  with  Secured  Party  secures  the  final  and  indefeasible  payment  to  Secured  Party

in cash and performance of the Pledgor Obligations in full.

(n)      Execution  in  Counterparts.   This  Agreement  may  be  executed  in  any  number  of  counterparts,

each  of  which  when  so  executed  shall  be  deemed  to  be  an  original  and  all  of  which  taken  together  shall

constitute but one and the same instrument.

(o)      Severability  of  Provisions.    Any  provision  of  this  Agreement  or  any  of  the  other  Loan

Documents  that  is  prohibited   or  unenforceable   in   any   jurisdiction   shall,  as   to   such   jurisdiction,  be

ineffective   to   the   extent   of   such   prohibition   or   unenforceability   without   invalidating   the   remaining

provisions  of  this  Agreement  or  the  other  Loan  Documents  or  affecting  the  validity  or  enforceability  of

such provision in any other jurisdiction.

(p)      Governing Law; Consent To Jurisdiction.

(i)    THIS  AGREEMENT  WAS  NEGOTIATED  IN  THE  STATE  OF  NEW  YORK,  AND

MADE  BY  SECURED  PARTY  AND  ACCEPTED  BY  PLEDGOR  IN  THE  STATE  OF  NEW

YORK.  THE  PARTIES  AGREE  THAT  THE  STATE  OF  NEW  YORK  HAS  A  SUBSTANTIAL

RELATIONSHIP   TO   THE   PARTIES   AND   TO   THE   UNDERLYING   TRANSACTIONS

CONTEMPLATED   BY   THIS   AGREEMENT,   AND   IN   ALL   RESPECTS,   INCLUDING

MATTERS  OF  CONSTRUCTION,  VALIDITY  AND  PERFORMANCE,  THIS  AGREEMENT

AND   THE  OBLIGATIONS  ARISING   HEREUNDER   SHALL  BE  GOVERNED   BY,  AND

CONSTRUED  IN  ACCORDANCE  WITH,  THE  LAWS  OF  THE  STATE  OF  NEW  YORK

APPLICABLE  TO  CONTRACTS  MADE  AND  PERFORMED  ENTIRELY  IN  SUCH  STATE

WITHOUT  REGARD  TO  ITS  PRINCIPLES  OF  CONFLICTS  OF  LAWS.   TO  THE  FULLEST

EXTENT    PERMITTED    BY    LAW,    SECURED    PARTY    AND    PLEDGOR    HEREBY

UNCONDITIONALLY  AND  IRREVOCABLY  WAIVE  ANY  CLAIM  TO  ASSERT  THAT

THE  LAW  OF  ANY  OTHER  JURISDICTION  GOVERNS  THIS  AGREEMENT,  AND  THIS

AGREEMENT  SHALL  BE  GOVERNED  BY  AND  CONSTRUED  IN  ACCORDANCE  WITH

THE  LAWS  OF  THE  STATE  OF  NEW  YORK  APPLICABLE  TO  CONTRACTS  MADE  AND

PERFORMED  ENTIRELY  IN  SUCH  STATE  WITHOUT  REGARD  TO  ITS  PRINCIPLES  OF

CONFLICTS OF LAWS.

(ii)   ANY  LEGAL  SUIT,  ACTION  OR  PROCEEDING  AGAINST  SECURED  PARTY  OR

PLEDGOR   ARISING   OUT   OF   OR   RELATING   TO   THIS   AGREEMENT   SHALL   BE

INSTITUTED   IN   THE   SOLE   OPTION   OF   SECURED   PARTY   IN   ANY   FEDERAL   OR

STATE  COURT  LOCATED  IN  WESTCHESTER  COUNTY,  NEW  YORK  PURSUANT  TO

SECTION   5-1402   OF   THE   NEW   YORK   GENERAL   OBLIGATIONS   LAW;   HOWEVER,

SECURED   PARTY   MAY,   AT   ITS   OPTION,   COMMENCE   ANY   ACTION,   SUIT   OR

PROCEEDING  IN  ANY  OTHER  APPROPRIATE  FORUM  OR  JURISDICTION  TO  OBTAIN

POSSESSION  OF  OR  FORECLOSE  UPON  ANY  PLEDGED  COLLATERAL,  TO  OBTAIN

EQUITABLE  RELIEF  OR  TO  ENFORCE  ANY  JUDGMENT  OR  ORDER  OBTAINED  BY

SECURED   PARTY   AGAINST   PLEDGOR   OR   WITH   RESPECT   TO   ANY   PLEDGED

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Page 11 of 15

COLLATERAL, TO ENFORCE ANY RIGHT OR REMEDY UNDER THIS AGREEMENT OR

ANY   OTHER   LOAN   DOCUMENT   OR   TO   OBTAIN   ANY   OTHER   RELIEF   DEEMED

APPROPRIATE  BY  SECURED  PARTY,  AND  SECURED  PARTY  AND  PLEDGOR  EACH

WAIVES  ANY  OBJECTION  WHICH  IT  MAY  NOW   OR  HEREAFTER  HAVE  TO  THE

LAYING  OF  VENUE  OF  ANY  SUCH  SUIT,  ACTION  OR  PROCEEDING,  AND  SECURED

PARTY    AND    PLEDGOR    EACH    HEREBY    IRREVOCABLY    SUBMITS    TO    THE

JURISDICTION   OF   ANY   SUCH   COURT   IN   ANY   SUIT,   ACTION   OR   PROCEEDING.

PLEDGOR   REPRESENTS   AND   ACKNOWLEDGES   THAT   IT   HAS   REVIEWED   THIS

CONSENT   TO   JURISDICTION   PROVISION   WITH   ITS   LEGAL   COUNSEL,   AND   HAS

MADE  THIS  WAIVER  KNOWINGLY  AND  VOLUNTARILY,  WITHOUT  COERCION  OR

DURESS.

(q)      Table  of  Contents;  Headings.   The  table  of  contents  and  headings  preceding  the  text  of  this

Agreement   are   inserted   solely   for   convenience   of   reference   and   shall   not   constitute   a   part   of   this

Agreement or affect its meaning, construction or effect.

[REMAINDER OF PAGE INTENTIONALLY  LEFT BLANK]

[SIGNATURE PAGE IMMEDIATELY FOLLOWS]

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IN  WITNESS  WHEREOF,  the  undersigned  have  executed  this  Agreement  on  the  day  and  year

first above written.

PLEDGOR:

IGXGLOBAL, CORP.

By:_________________________________

Name:

Title:

SECURED PARTY:

KELTIC FINANCIAL PARTNERS II, LP

By:  KELTIC FINANCIAL SERVICES, LLC,

its general partner

By:

Name:

Title:

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Page 13 of 15

DISCLOSURE SCHEDULE

PLEDGED COLLATERAL:

SIXTY  SIX  AND  TWO  THIRDS  (66  2/3)  OF  ALL  ISSUED  AND  OUTSTANDING  SHARES  OF

IGXGLOBAL  UK  LIMITED),  AND  SIXTY  SIX  AND  TWO  THIRDS  (66  2/3)  OF  ALL  SHARES  OF

IGXGLOBAL  UK  LIMITED  ISSUED  AFTER  THE  DATE  HEREOF  (WHETHER  NEWLY  ISSUED

BY  STOCK  SPLIT,  AS  A  DIVIDEND  OR  OTHERWISE),  ISSUED  OR  RECEIVED  IN  EXCHANGE

FOR  OR  REPLACEMENT  OF  THE  FOREGOING.  PLEDGOR  SHALL  DELIVER  TO  SECURED

PARTY  STOCK  CERTIFICATES  REPRESENTING  SIXTY  SIX  AND  TWO  THIRDS  (66  2/3)  OF

ALL  SHARES  OF  IGXGLOBAL  UK  LIMITED  ISSUED  OR  RECEIVED  AFTER  THE  DATE  OF

THIS AGREEMENT.

LIENS ON PLEDGED COLLATERAL:

None

NOTICE:

If to Secured Party:

Keltic Financial Partners II, LP

Attn: John P Reilly, President and CEO

580 White Plains Road, Suite 610

Tarrytown, NY  10591

Tel: (914) 921-3555 (ext. 208)

Fax: (914) 921-1154

Keltic Financial Partners II, LP

Attn: Oleh Szczupak, Executive Vice President and Chief Credit

Officer

580 White Plains Road, Suite 610

Tarrytown, NY  10591

Tel: (914) 921-3555 (ext. 221)

Fax: (914) 921-1154

With a copy to:

Terrence A. Greiner, Esq.

5687 Main Street

Williamsville, NY 14221

Tel: (716) 626-9993

Fax: (888) 234-4580

If to Pledgor:

IGXGLOBAL, CORP.

50 Inwood Road

Rocky Hill, CT 06067

Attn: President

Tel: (860) 513-0112

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Fax: (860) 513-1105

With a copy to:

Elisa Luqman

Executive Vice President and General Counsel

iGambit Inc.

1050 W. Jericho Turnpike

Suite A

Smithtown, New York 11787

Tel: (631) 670-6777

Fax: (631) 670-6780

And to:

Joel Mayersohn, Esq.

Roetzel & Andress

350  East Las Olas Boulevard

Las Olas Centre II, Suite 1150

Fort Lauderdale, FL 33303-0310

Tel: (954) 759-2763

Fax: (954) 462-4260

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00211-of-00352.parquet"}]]