Document:

Demand Note dated Feb. 13, 2003

Exhibit 10.4 
 
 
DEMAND NOTE 
 

	  $1,200,000
	  	  Cary, North Carolina

	  	  	  February 13, 2003

 
        FOR VALUE RECEIVED, Tangram Enterprise Solutions, Inc., a Pennsylvania corporation (the “Borrower”), having an office at 11000 Regency Parkway, Suite 301, Cary,
North Carolina 27511-8504, hereby promises to pay to the order of TBBH Investments Europe AG (the “Lender”), at the Lender’s address located at 160 Jan Smuls Avenue, Rosebank 2196 South Africa or at such other place in
the continental United States as the Lender may designate in writing, in lawful money of the United States, and in immediately available funds, the principal sum of One Million Two Hundred Thousand Dollars ($1,200,000), together with interest
accruing on the outstanding principal balance from the date hereof, as provided below: 
 
        1. Note Exchange. This Note is being issued in replacement of that certain Promissory Note, dated February 13, 2001 made by the Borrower in favor
of the Lender (as successor in interest to Axial Technology Holding AG (the “Original Note”). The indebtedness evidenced by the Original Note (the “Original Indebtedness”) is continuing indebtedness of the Borrower
and all such outstanding Original Indebtedness is hereby transferred to, and deemed to be outstanding under, this Note, and the Original Note shall be deemed to have been cancelled as of the date of this Note. 
 
        2. Rate of
Interest. The amount outstanding under this Note will bear interest at a rate equal to the announced prime rate of PNC Bank, N.A. (the “Prime Rate”) plus one percent (1%); provided, however, that interest shall
accrue only on $500,000 of principal until the first anniversary of the date of the Note and thereafter shall accrue interest on the entire outstanding principal. Interest will be calculated on the basis of a year of 360 days for the actual number
of days in each interest period. 
 
        3. Payment Terms. Accrued interest on this Note shall be due and payable by the Borrower quarterly in arrears on the first business day of January, April, July and October of
each year. 
 
        All outstanding principal and accrued but unpaid interest on this Note shall be due and payable upon the earlier to occur of the date (the “Maturity Date”): (i) six
months after the date of demand by Lender, which demand shall not occur early then one (1) year from the date of this Note or (ii) on which the acquisition of the Borrower by an unaffiliated third party, other than Safeguard Scientifics, Inc., or
any of its wholly-owned subsidiaries, in a bona fide change of control transaction (i.e. not a recapitalization or reincorporation for the purpose of changing corporate domicile or other similar transaction) is consummated, regardless of the form of
the transaction (e.g., merger, consolidation, sale of assets or sale of stock). In addition, upon the closing of a sale of debt or equity securities by the Borrower to any third party, the Borrower shall apply the proceeds (net of underwriting
discounts and commissions) in excess of $2,500,000 first to the repayment of the then outstanding obligations under that certain Revolving Note, dated February 13, 2003 made by Borrower in favor of Safeguard Delaware, Inc. (“Revolving
Note”) and then to the repayment of the then outstanding obligations under this Note. 
 
        Any payments, except payments made on demand of Lender, on this Note shall be made prorata
to that certain Note, dated as of the date hereof made by Borrower in favor of Safeguard Delaware, Inc. (“Safeguard”). Payments to be made on demand of Lender shall be prorata only to the extent Safeguard has also demanded payment.
Borrower shall notify Safeguard of Lender’s demand for payment. 

 
        Notwithstanding anything in this Note, the interest rate charged hereon shall not exceed the maximum rate allowable by applicable law. If any stated interest rate herein exceeds the
maximum allowable rate, then the interest rate shall be reduced to the maximum allowable rate, and any excess payment of interest made by the Borrower at any time shall be applied to the unpaid balance of any outstanding principal of this Note.

 
        4. Prepayment. Unless there amounts outstanding under Revolving Note, the outstanding principal amount of this Note may be prepaid in whole or in part by the Borrower upon notice
to the Lender at any time or from time to time without any prepayment penalty or premium; provided, that upon such payment any interest due to the date of such prepayment on such prepaid amount shall also be paid. 
 
        5.
Default. For purposes of this Note, an “Event of Default” shall consist of: 
 

	  	 a.	  	 a default in the payment by the Borrower to the Lender of principal or interest under this Note as and when the same shall become due and payable;

 

	  	 b.	  	 an event of default by the Borrower under any other obligation, instrument, note or agreement for borrowed money, that remains uncured beyond any applicable notice
and/or grace period; 

 

	  	 c.	  	 institution of any proceeding by or against the Borrower under any present or future bankruptcy or insolvency statute or similar law and, if involuntary, if such
proceeding is not stayed or dismissed within sixty (60) days, or the Borrower’s assignment for the benefit of creditors or the appointment of a receiver, trustee, conservator or other judicial representative for the Borrower or the
Borrower’s property or the Borrower’s being adjudicated bankrupt or insolvent; or 

 

	  	 d.	  	 the liquidation, dissolution or winding up of the Borrower; provided that, solely for the purposes of this Section 7, a liquidation, dissolution or winding up of
the Borrower shall include (i) the Borrower’s sale of all or substantially all of its assets, or (ii) any acquisition of the Borrower or a change of control of the Borrower by another entity by means of any transaction or series of related
transactions (including, without limitation, any stock sale, merger, consolidation or other corporate reorganization, but excluding any merger effected primarily for the purpose of changing the domicile of the Borrower) that results in the transfer
of 50% or more of the outstanding voting power of the Corporation. 

 
        Upon the occurrence of any Event of Default, interest shall accrue on the outstanding balance of this Note at the Prime Rate plus three percent (3%), the
entire unpaid principal amount of this Note and all unpaid interest accrued thereon shall, at the sole option of the Lender, without notice, become immediately due and payable, and the Lender shall thereupon have all the rights and remedies provided
hereunder or now or hereafter available at law or in equity. 
 
        6. Legal Proceedings; Arbitration. Any action, suit or proceeding where the amount in controversy as to at least one party, exclusive of interest and costs, exceeds $1,000,000
(“Summary Proceeding”), arising out of or relating to this Note, or the breach, termination or validity thereof, shall be litigated exclusively in the Superior Court of the State of Delaware (the “Delaware Superior
Court”) as a 
 

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summary proceeding pursuant to Rules 124-131 of the Delaware Superior Court, or any successor rules (the
“Summary Proceeding Rules”). Each of the parties hereto hereby irrevocably and unconditionally (i) submits to the jurisdiction of the Delaware Superior Court for any Summary Proceeding, (ii) agrees not to commence any Summary
Proceeding except in the Delaware Superior Court, (iii) waives, and agrees not to plead or to make, any objection to the venue of any Summary Proceeding in the Delaware Superior Court, (iv) waives, and agrees not to plead or to make, any claim that
any Summary Proceeding brought in the Delaware Superior Court has been brought in an improper or otherwise inconvenient forum, (v) waives, and agrees not to plead or to make, any claim that the Delaware Superior Court lacks personal jurisdiction
over it, (vi) waives its right to remove any Summary Proceeding to the federal courts except where such courts are vested with sole and exclusive jurisdiction by statute, and (vii) understands and agrees that it shall not seek a jury trial or
punitive damages in any Summary Proceeding based upon or arising out of or otherwise related to this Agreement waives any and all rights to any such jury trial or to seek punitive damages. 
 
        In the event any action, suit or proceeding where the amount
in controversy as to at least one party, exclusive of interest and costs, does not exceed $1,000,000 (a “Proceeding”), arising out of or relating to this Note or the breach, termination or validity thereof is brought, the
parties to such Proceeding agree to make application to the Delaware Superior Court to proceed under the Summary Proceeding Rules. Until such time as such application is rejected, such Proceeding shall be treated as a Summary Proceeding and all of
the foregoing provisions of this Section relating to Summary Proceedings shall apply to such Proceeding. 
 
        If a Summary Proceeding is not available to resolve any dispute hereunder, the controversy
or claim shall be settled by arbitration conducted on a confidential basis, under the U.S. Arbitration Act, if applicable, and the then current Commercial Arbitration Rules of the American Arbitration Association (the
“Association”) strictly in accordance with the terms of this Note and the substantive law of the State of Delaware. The arbitration shall be conducted at the Association’s regional office located closest to the
Lender’s principal place of business by three arbitrators, at least one of whom shall be knowledgeable in general business matters and one of whom shall be an attorney. Judgment upon the arbitrators’ award may be entered and enforced in
any court of competent jurisdiction. Neither party shall institute a proceeding hereunder unless at least 60 days prior thereto such party shall have given written notice to the other party of its intent to do so. 
 
        Neither party
shall be precluded hereby from securing equitable remedies in courts of any jurisdiction, including, but not limited to, temporary restraining orders and preliminary injunctions to protect its rights and interests but such remedies shall not be
sought as a means to avoid or stay arbitration or a Summary Proceeding. 
 
        7. Demand Waiver; Offset. The Borrower hereby waives presentment, demand, protest and notice of dishonor and protest, and also waives all other exemptions; and agrees
that extension or extensions of the time of payment of this Note or any installment or part thereof may be made before, at or after maturity by agreement by the Lender. Upon default hereunder, the Lender shall have the right to offset the amount
owed by the Borrower against any amounts owed by the Lender in any capacity to the Borrower, whether or not due, and the Lender shall be deemed to have exercised such right of offset and to have made a charge against any such account or amounts
immediately upon the occurrence of an Event of Default even though such charge is made or entered on the books of the Lender subsequent thereto. 
 
        8. Attorneys Fees; Costs and Expenses. The Borrower shall pay to the Lender, upon
demand, all costs and expenses, including, without limitation, attorneys’ fees and legal expenses that may be incurred by the Lender in connection with the enforcement of this Note. Borrower will bear the attorney’s fees and legal expenses
of Lender in connection with this Note, not to exceed $25,000. 
 

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        9. Notices. Notices required to be given hereunder shall be deemed validly given (i) three business days after sent, postage prepaid, by certified mail, return receipt requested,
(ii) one business day after sent, charges paid by the sender, by next day delivery or other guaranteed delivery service, (iii) when sent by facsimile transmission, or (iv) when delivered by hand: 
 

	  If to the Lender:
	   	  TBBH Investments Europe AG
  160 Jan Smuls Avenue
  Rosebank 2196
  South Africa
  Attn: Chief Financial Officer

	
	  If to the Borrower:
	   	  Tangram Enterprise Solutions, Inc.
  11000 Regency Parkway
  Suite 301
  Cary, North Carolina 27511-8504
  Attn: Chief Financial Officer

 
or to such other
address, or in care of such other person, as the holder or the Borrower shall hereafter specify to the other from time to time by due notice. 
 
        10. Miscellaneous. Any failure by the Lender to exercise any right hereunder shall
not be construed as a waiver of the right to exercise the same or any other right at any time. No amendment to or modification of this Note shall be binding upon the Lender unless in writing and signed by it. Any provision hereof found to be
illegal, invalid or unenforceable for any reason whatsoever shall not affect the validity, legality or enforceability of the remainder hereof. This Note shall apply to and bind the successors of the Borrower and shall inure to the benefit of the
Lender, its successors and assigns. 
 
        11. Governing Law. This Note shall be governed by and interpreted in accordance with the laws of the State of Delaware. 
 
        IN WITNESS
WHEREOF, the Borrower, by its duly authorized officer intending to be legally bound hereby, has duly executed this Note as of the date first written above. 
 

	  TANGRAM ENTERPRISE SOLUTIONS, INC.

	
	  By:
	  	  /s/ Norman L. Phelps

	  	  	  Name: Norman L. Phelps

	  	  	  Title: President and CEO

 

4SHARE AGREEMENT made this 2nd day of April, 2002

BETWEEN:

The Shareholders of Aquentium, Inc. (herein called the "Shareholders");

Aquentium, Inc., a corporation incorporated under the laws of the State of
Nevada, United States; and

Aries Ventures, Inc., a corporation organized and existing under the laws of
the State of Nevada (herein called "Aries").

WITNESS that in consideration of the sum of 1,000,000 post-split shares of
common stock of WaterPur International, Inc., a Delaware corporation
("WaterPur"), to be renamed Aquentium, Inc., which represents approximately
25% of the common stock to be outstanding immediately subsequent to the
completion of the transaction contemplated herein (which will be the only
equity security outstanding), it is agreed as follows:

1.    The issuance of the common shares completely satisfies any and all
outstanding debts or claims that Aries has or may have against WaterPur.

2.    Upon the completion of the transaction contemplated herein, no preferred
stock or convertible debt will be outstanding.  If WaterPur subsequently
issues any non-convertible preferred stock, it will not have any voting
rights.  If WaterPur subsequently issues any convertible preferred stock or
convertible debt that includes voting rights (whether directly or on an "as if
converted" basis), the total amount of common shares issuable under such
instruments will be included in outstanding shares in the anti-dilution
calculation described below.  In addition, any convertible preferred stock or
convertible debt conversion price below $1.00 per common share will adjust
downward the exercise price of the common stock purchase warrants issued to
Aries as described below.

3.    Upon the completion of the transaction contemplated herein, there will
be approximately 5,250,000 shares of common stock outstanding, as follows:
existing Aquentium, Inc. shareholders   4,000,000 shares; WaterPur
shareholders   approximately 250,000; Aries   1,000,000 shares.

4.    The common shares received by Aries will be unlegended.  These shares
will be available to trade under a lock-up/leak-out agreement with WaterPur.
Aries will have the right to sell up to 250,000 shares in quarter one of 2002;
up to 500,000 shares cumulative in quarter 2 of 2002; up to 750,000 shares
cumulative in quarter 3 of 2002; and up to 1,000,000 shares cumulative in
quarter 4 of 2002; and thereafter unlimited.

5.    WaterPur hereby agrees and confirms that the holding period for the
securities received by Aries will tack from September 1997, and that upon the
written request of Aries, WaterPur will provide Aries with a copy of valid
legal opinion confirming this position. WaterPur shall endeavor to permit all
of the securities issued herein, including the shares issuable upon exercise
of the warrants, to be tradable within the shortest period of time legally
permissible.

6.    Aries will receive 250,000 common stock purchase warrants, exercisable
for a period of three years at $1.00 per share.  Both the warrants and the
underlying common stock will have unlimited piggyback registration rights.
These warrants will contain standard anti-dilution provisions.  During the
exercise period, the warrant exercise price will be reset downward if any
financings or transactions are done that provide for the issuance of common
stock, directly or indirectly, at less than $1.00 per share.  Aries may
transfer the warrants, in whole or in part, at any time to an affiliated or an
unaffiliated party.  The warrants shall contain "net cashless exercise"
provisions.  As an example of "net cashless exercise" provisions, assuming
that Aries owns warrants to purchase 250,000 shares of WaterPur common stock
at $1.00 per share, then Aries, at its option, may exercise the warrants by
returning sufficient WaterPur common shares to pay the exercise price (in this
case, 250,000 x $1.00) divided by $5.00 equals 50,000 shares), or by reducing
the net shares that Aries is entitled to receive upon exercise of the warrants
by 50,000 shares, from 250,000 shares to 200,000 shares.  To the extent
legally permissible, the parties shall characterize the exercise of the
warrants as a 3(a)9 exchange, with the underlying shares being considered as
if registered or exempt from registration.

7.    At any time during the three year exercise period of the warrants, if
any portion of the warrants are outstanding and unexercised, should WaterPur
make application for listing of its common stock on the American Stock
Exchange or on the NASDAQ SmallCap or National Market System, and should such
application be approved, WaterPur will have the right to call the remaining
outstanding warrants, upon 30 days written notice, for a payment of $0.01 per
warrant.  Upon the issuance of such written notice by WaterPur, Aries, and/or
any subsequent holder of all or any portion of the remaining outstanding
warrants, will have the right to exercise such warrants for a period of 20
days thereafter.  The 20 day period shall expire before the 30 day period
expires.  The notice shall be issued, and the 20 day period and the 30 day
period shall both commence, only upon the formal written approval of the AMEX
or NASDAQ application.

8.    Aries will receive anti-dilution protection with respect to its common
stock, which will be calculated separately on December 31, 2002 and on
December 31, 2003, as long as it continues to own such shares, and if the
aggregate market value of WaterPur's common stock and all spin-off's common
stock owned by Aries, is less than $12,000,000, as described below.  If Aries
sells or otherwise transfers such shares, the anti-dilution protection based
on $12,000,000 will be reduced pro rata, until such time as Aries owns less
than 250,000 shares, at which time the anti-dilution protection will
terminate.  If the aggregate market value of the 1,000,000 shares of WaterPur
common stock received by Aries, combined with the aggregate market value of
any common stock received by Aries through one or more spin-off transactions
that WaterPur may conduct, is less than $12,000,000, then Aries will be
entitled to receive, without the payment of any additional consideration, a
sufficient number of newly-issued common shares of WaterPur such that it will
own 10% of the outstanding shares of WaterPur common stock.  The calculation
for purposes of the market value test will be based on the weighted average
price for WaterPur common stock for the 30 consecutive calendar days during
the calendar year at which the common stock traded at its highest level, as
well as the weighted average price for any spin-off's common stock during the
30 consecutive calendar days in that calendar year that such spin-off's common
stock traded at its highest level.  The highest price period chosen must
represent at least an aggregate market value of the common stock trading of
$100,000 for WaterPur and for each spin-off, excluding transaction
double-counting by market makers.

9.    All parties hereto do jointly agree to sign and deliver any further
assurances required to more fully carry out the intent of this Share
Agreement.

10.   This Share Agreement shall be construed and enforced under the Laws of
the State of California.

11.   This Share Agreement shall inure to the benefit of and be binding upon
the respective parties hereto and respective heirs, executors, administrators,
successors, and assignees.

IN WITNESS WHEREOF the parties hereunto have executed this document as of the
date first written above.

SHAREHOLDERS

/s/ Mark Taggatz
_________________________
Mark Taggatz

AQUENTIUM, INC.

/s/ Mark Taggatz
_________________________
Mark Taggatz
President

ARIES VENTURES, INC.

/s/ Robert N. Weingarten
__________________________
Robert N. Weingarten
Chief Financial Officer

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