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EXHIBIT 10.1

                           PRISM SOFTWARE CORPORATION
                    CONVERTIBLE PROMISSORY NOTE (OPEN-ENDED)

                                                         Lake Forest, California
                                                                   June 14, 2002

         FOR VALUE RECEIVED, the undersigned, Prism Software Corporation, a
Delaware corporation ("Maker"), promises to pay to the order of the Conrad von
Bibra Revocable Trust ("Payee"), at such place as Payee may from time to time
designate, an amount equal to all sums advanced by Payee to Maker after the date
of this Note, with simple interest on the principal balance from time to time
owing at the rate of 8% per annum, all principal and interest on each advance
due and payable one year from the date of the advance.

         1. PREPAYMENT. Maker may prepay all or any portion of the principal
balance of this Note, plus accrued interest, at any time without premium or
penalty. Any such payment shall be credited first to interest then due and the
remainder to principal. To the extent that the Maker receives funding from other
parties and there are excess funds available, the Maker will make a good faith
effort to pre-pay all or a portion of this note.

         2. USURY LIMITATION. In no event shall the interest rate payable
pursuant to this Note be higher than permitted by applicable law.

         3. DEFAULT AND ACCELERATION. Upon the occurrence of any Event of
Default (as defined below), this Note shall be in default and Payee shall have
the right, at Payee's sole option, to declare all amounts owed under this Note
immediately due and payable. Each of the following is an "Event of Default": (a)
the failure of Maker to pay any portion of principal or interest when due, which
failure is not cured within three calendar days after written notice, (b) the
entry of a decree or order for relief in respect of Maker under Title 11 of the
United States Code, as now constituted or hereafter amended, or any other
applicable Federal or state bankruptcy, insolvency or similar law, or appointing
a receiver, trustee, or custodian of Maker or for any substantial part of
Maker's property, which decree or order is not stayed or set aside within 60
days thereafter, or (c) the filing by Maker of a petition, answer or consent
seeking relief under Title 11 of the United States Code, as now constituted or
hereafter amended, or the consent by Maker to the institution of proceedings
thereunder or to the appointment of a receiver, trustee or custodian.

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         4. CONVERSION RIGHT.

                  (a) CONVERSION ON DEFAULT. In the event Maker defaults under
this Note, then Payee may thereafter from time to time convert all or any
portion of the unpaid principal balance of this Note, and any accrued interest,
into shares of the Company's common stock ("Common Stock") at a price of $0.05
per share (the "Conversion Price"). The Conversion Price is subject to
adjustment as set forth below.

                  (b) MECHANICS OF CONVERSION. Conversion shall be effected by
giving the Company written notice at its principal executive office of the
election to convert (the "Conversion Notice") and by delivering this Note to
such office for endorsement by the Company to reflect the principal amount
converted to shares of Common Stock. The Conversion Notice shall state the name
or names of the parties to whom the certificate or certificates for shares of
common stock should be issued and the address to which the certificates are to
be sent. As soon as practicable thereafter, the Company shall issue and deliver
to Payee at the address or addresses designated in the Conversion Notice the
certificate or certificates for the number of shares of common stock to which
such parties are entitled. At its election, the Company may issue fractional
shares or, in lieu thereof, make a cash payment to Payee in an amount equal to
the number of fractional shares to be issued multiplied by the then fair market
value of one share of the Company's Common Stock as determined in good faith by
the Company's Board of Directors. Conversion shall be deemed to have occurred on
the close of business on the date the Conversion Notice and this Note are
received by the Company.

         (c) CONVERSION PRICE. In order to prevent dilution of the conversion
rights granted under this Note, the Conversion Price will be subject to
adjustment from time to time as follows:

                           (i) If the Company at any time subdivides (by any
stock split, stock dividend or otherwise) its outstanding shares of Common Stock
into a greater number of shares, the Conversion Price will be proportionately
reduced, and if the Company at any time combines (by reverse stock split, or
otherwise) its outstanding shares of Common Stock into a smaller number of
shares, the Conversion Price will be proportionately increased.

                           (ii) If any capital reorganization, reclassification,
consolidation or merger or any sale of substantially all of the Company's assets
(collectively, the "Corporate Transactions") is effected in such a way that the
holders of Common Stock become entitled to receive stock, securities or assets
with respect to or in exchange for Common Stock, then, as a condition to such
Corporate Transaction, lawful and adequate provision will be made whereby the
Payee will thereafter have the right to acquire and receive in lieu in shares of
Common Stock, such shares, securities or assets as would have been issuable to
the Payee if it had converted the principal amount of this Note immediately
prior to such Corporate Transaction.

                                       2

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                           (iii) In the event Maker issues additional shares of
Common Stock for a purchase price of less that $0.05 per share, or issues
securities convertible or exercisable into Common Stock at a price of less than
$0.05 per share, then the conversion price of this note shall be automatically
adjusted to such lower conversion price; provided, however, that no adjustment
shall be made (i) in connection with issuances of securities for services,
whether to employees or others, or in cancellation of outstanding obligations or
indebtedness, (ii) in connection with any stock option plan or employee benefit
plan, or (iii) in connection with any acquisition by the Maker.

         5. ISSUANCE OF WARRANT ON CONVERSION. Upon the conversion of this Note
in all or in part into Common Stock, Maker shall issue to Payee a Warrant to
purchase additional shares of Common Stock of Maker (equal to the number of
shares issued upon such conversion), at an exercise price of $0.12 per share, in
the form of Exhibit A hereto.

         6. ADVANCES. Maker shall maintain an account of all advances under this
Note, as well as all payments made, and shall deliver copies of such account to
Payee upon request.

         7. ATTORNEYS' FEES. In the event any judicial proceedings are
instituted to enforce or interpret the rights and obligations of the Company and
the Lender under this Note, the prevailing party in such proceeding shall be
entitled to reasonable attorneys' fees and costs, as well as related costs of
collection and appeal.

         8. GOVERNING LAW. This Note and all transactions hereunder and/or
evidenced hereby shall be governed by, construed under, and enforced in
accordance with the laws of the State of California, without regard to any
choice of law or conflict of law provisions thereof.

         9. SEVERABILITY. Should any provision of this Note be declared or be
determined by any court to be invalid, illegal or unenforceable, such provision
shall be severable from the remainder of this Note, and the legality, validity
and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

         10. WAIVER OF PROTEST. Maker hereby waives presentment, demand for
payment, notice of presentment, notice of dishonor, protest and demand.

                                      Prism Software Corporation

                                      By /s/ E. Ted Daniels
                                         ---------------------------------------
                                         E. Ted Daniels, Chief Executive Officer<PAGE>
EXHIBIT 10.2

THE SECURITIES EVIDENCED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED,
PLEDGED OR OTHERWISE DISPOSED OF UNLESS THERE IS AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES OR THE ISSUER RECEIVES AN
OPINION OF COUNSEL STATING THAT SUCH DISPOSITION IS EXEMPT FROM THE REGISTRATION
AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

                        WARRANT TO PURCHASE COMMON STOCK
                          OF PRISM SOFTWARE CORPORATION

         This certifies that ___________________ (the "Holder"), and the
Holder's registered successors and assigns, are entitled, subject to the terms
and conditions set forth below, to purchase from Prism Software Corporation, a
Delaware corporation (the "Company"), the number of shares of the Common Stock
of the Company set forth below at an exercise price of $0.12 per share (the
"Exercise Price"), as such may have been adjusted as of the time of exercise
pursuant to the provisions of paragraph 2 below.

         The term "Warrant Shares" as used herein includes the shares of the
Company's Common Stock (and such other securities or property into which such
shares of Common Stock may hereafter be changed) which are at the time
receivable by the Holder upon exercise of this Warrant. The term "Warrant" as
used herein shall include this Warrant and any Warrant delivered in substitution
or exchange herefor.

         1. EXERCISE AND EXPIRATION. This Warrant may be exercised in whole or
in part at any time or times on or after the date of original issuance hereof,
but must be exercised prior to three years from the date of issuance, at which
time this Warrant shall expire. This Warrant shall be exercisable by delivery by
the holder hereof to the Company of (i) the original of this Warrant, (ii)
payment in form acceptable to the Company of the Exercise Price of the Warrant
being exercised, and (iii) written instructions as to the number of Warrant
shares covered by the exercise.

         2. ADJUSTMENT OF EXERCISE PRICE. The Exercise Price shall be subject to
adjustment from time to time as follows:

                  (a) In the event the Company should at any time or from time
to time fix a record date for the effectuation of a split or subdivision of the
outstanding shares of Common Stock or the determination of holders of Common
Stock entitled to receive a dividend or other distribution payable in additional
shares of Common Stock or other securities or rights convertible into, or
entitling the holder thereof to receive directly or indirectly, additional
shares of Common Stock (hereinafter referred to as "Common Stock Equivalents")
without payment of any consideration by such holder for the additional shares of
Common Stock or the Common Stock Equivalents (including the additional shares of
Common Stock issuable upon conversion or exercise thereof), then, as of such
record date (or the date of such dividend distribution, split or subdivision if
no record date is fixed), the Exercise Price shall be appropriately decreased so
that the number of shares of Common Stock issuable on exercise hereof shall be
increased in proportion to such increase of the aggregate of shares of Common
Stock outstanding.

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                  (b) If the number of outstanding shares of Common Stock is
decreased by a combination of the outstanding shares of Common Stock, then,
following the record date of such combination, the Exercise Price shall be
appropriately increased so that the number of shares of Common Stock issuable on
exercise hereof shall be decreased in proportion to such decrease in outstanding
shares.

                  (c) If at any time or from time to time there shall be a
recapitalization of the Common Stock, provision shall be made so that the holder
hereof shall thereafter be entitled to receive upon exercise of this Warrant the
number of shares of stock or other securities or property of the Company or
otherwise, to which a holder of Common Stock deliverable upon exercise would
have been entitled on such recapitalization. In any such case, appropriate
adjustment shall be made in the application of the provisions of this paragraph
2 with respect to the rights of the holder hereof after the recapitalization to
the end that the provisions of this paragraph 2 (including adjustment of the
Exercise Price then in effect and the number of shares purchasable upon exercise
hereof) shall be applicable after that event as nearly equivalent as may be
practicable.

                  (d) If at any time after the date of issuance of this Warrant
the Company shall issue additional warrants at an exercise price below the
Exercise Price, then the Exercise Price of this Warrant shall be adjusted to the
lower exercise price.

         3. TRANSFER OF WARRANT. This Warrant shall be registered on the books
of the Company and, subject to compliance with applicable securities laws, shall
be transferable in whole or in part on such books upon surrender of this Warrant
by the registered Holder hereof in person or by a duly authorized attorney.

         4. RESERVATION OF COMMON STOCK. The Company hereby covenants and agrees
that it shall at all times reserve and keep authorized and available for
issuance, free of any preemptive rights or rights of first refusal, a sufficient
number of Warrant Shares for the purpose of issuance upon exercise of this
Warrant to permit the exercise of this Warrant in whole.

         5. MISCELLANEOUS. The holder of this Warrant shall not be entitled to
any rights of a shareholder of the Company prior to the exercise hereof.

         IN WITNESS WHEREOF, the Company has caused this Warrant to be duly
executed and delivered by its duly authorized officers as of _________________
____, ________.

No. of Shares __________________
                                     Prism Software Corporation

                                     By
                                         ---------------------------------------
                                         E. Ted Daniels, Chief Executive Officer

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