Document:

Exhibit
10.12

SUBORDINATION AGREEMENT

THIS SUBORDINATION AGREEMENT (this “Agreement”) is
made as of July 13, 2007, by and among CAMOFI Master LDC and CAMHZN Master LDC,
each a Cayman Islands Limited Duration Company (collectively, the “Senior
Lender”), the lenders listed on Schedule A attached hereto (each a “Junior
Lender”, and collectively, the “Junior Lenders”), and SHEA DEVELOPMENT CORP., a
Nevada corporation and each of its subsidiaries (collectively, the “Borrower”).

RECITALS

A.  The Senior Lender has purchased certain
secured notes from the Borrower and pursuant to the terms and provisions of the
Securities Purchase Agreement and related documents, each dated as of July 13,
2007 (as amended, modified or amended and restated from time to time, the “Purchase
Agreement”), by and among the Senior Lender and the Borrower;

B.  The Junior Lenders have loaned certain monies
to the Borrower on terms between the Junior Lenders and the Borrower, each in
the principal amount set forth opposite the Junior Lenders’ name on Schedule A;
and

C.  It is a
condition to the Senior Lender’s obligations to purchase the secured notes from
the Borrower that the Junior Lenders enter into this Agreement;

NOW, THEREFORE, in consideration of the above recitals
and the provisions set forth herein, and other good and valuable
considerations, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto agree as follows, intending to be legally bound:

AGREEMENT

Section
1.              Definitions.  For purpose of this Agreement, the following
terms used herein shall have the following meanings:

“Collateral”
means any and all property which now constitutes or hereafter will constitute
collateral or other security for payment of the Senior Debt pursuant to the
Senior Loan Documents.

“Default” means a default or event of default under
the Junior Notes, or any of them, or under any other instrument or agreement
evidencing the Junior Debt.

“Junior Debt” means all indebtedness,
obligations, and liabilities of the Borrower or any guarantor to the Junior
Lenders, under any agreement of any kind, including, without limitation, all
principal and interest (including, without limitation, any interest accruing
after the filing of any petition in bankruptcy or the commencement of any
Proceeding, whether or not a claim for post-filing or post-petition interest is
allowed in such Proceeding) and late fees payable thereunder, and any
obligation to redeem, repurchase or otherwise acquire any Junior Securities.

“Junior Loan Documents” means any all documents
evidencing the Junior Debt.

“Junior Securities” means any securities
(including common stock, warrants or other equity securities) other than those
Securities issued to the Senior Lender.

“Person” means any corporation, association,
joint venture, partnership, limited liability company, organization, business,
individual, trust, government or agency or political subdivision thereof, or
any other legal entity.

“Proceeding” means (a) any insolvency,
bankruptcy, receivership, custodianship, liquidation, reorganization,
readjustment, composition, or other similar proceeding relating to Borrower or
any of its respective properties, whether under any bankruptcy, reorganization,
or insolvency laws or any law relating to relief of debtors, readjustment of indebtedness,
reorganization, composition, or extension; (b) any proceeding for the
liquidation, liquidating distribution, dissolution, or other winding up of Borrower,
voluntary or involuntary, whether or not involving insolvency or bankruptcy
proceedings; (c) any assignment for the benefit of creditors of Borrower; or
(d) any other marshalling of the assets of Borrower.

“Remedy” means, with respect to a Default, the
acceleration of any Junior Debt or the exercise of any remedies in respect of
such Default (including, without limitation, the right to sue the Borrower, to
exercise any right of set off, to put or otherwise tender for repurchase any
Junior Securities, and to file or participate in any involuntary bankruptcy
proceeding against the Borrower, and explicitly including the imposition of
default rate interest).

“Senior Debt” means all of the following:  (a) the aggregate principal indebtedness
outstanding from time to time under the Purchase Agreement, (b) all interest
accrued and accruing on such aggregate principal amounts from time to time
(including, without limitation, any interest accruing after the filing of any
petition in bankruptcy or the commencement of any Proceeding, whether or not a
claim for post-filing or post-petition interest is allowed in such Proceeding),
(c) all other costs, fees, and expenses owed from time to time under the Senior
Loan Documents and (d) all other liabilities, indebtedness and obligations of
Borrower to the Senior Lender, whether now existing or hereafter arising, direct
or indirect, contingent or non-contingent, secured or unsecured, due or not due.

“Senior Event of Default” means the occurrence
and continuance of an “Event of Default” under the Senior Loan Documents.

“Senior Loan Documents” means the Purchase
Agreement, the Senior Notes, and the other Loan Documents (as defined in the Purchase
Agreement), as they may be amended, modified, extended, or amended and restated
from time to time.

“Senior Notes” means the Notes (as defined in
the Purchase Agreement) and any other promissory note executed and delivered by
the Borrower to the Senior Lender from time to time, as amended, modified,
renewed or extended from time to time.

Section
2.              General.

The
Borrower and the Junior Lenders agree that on the terms and conditions herein
the payment of the Junior Debt by the Borrower is subordinated, to the extent
and in the manner provided in this Agreement, to the prior payment in full of
all the Senior Debt.

Section
3.              Subordination in the
Event of a Proceeding.

Upon
any distribution of assets of the Borrower upon any Proceeding:

(i)            the Senior Lender shall first be
entitled to receive payments in full of the Senior Debt in cash, property or
securities (with any such property or securities being valued based on its fair
market value after deducting liquidation and sale expenses) before any Junior
Lender is entitled to receive any payment on account of the Junior Debt;

(ii)           any payment or distribution of assets
of the Borrower of any kind or character, whether in cash, property, or
securities to which any Junior Lender would be entitled except for the
provisions of this Agreement, shall be paid by the liquidating trustee or agent
or other Person making such a payment or distribution, directly to the Senior
Lender, to the extent necessary to pay 
the Senior Debt in full in cash, property or securities (valued as
provided in subsection (i) above) after giving effect to all concurrent
payments and distributions; and

(iii)          in the event that, notwithstanding the
foregoing, any payment or distribution of assets of the Borrower of any kind or
character, whether in cash, property, or securities, shall be received by the Junior
Lenders on account of the Junior Debt before the Senior Debt is paid in full in
cash, property or securities (valued as provided in subsection (i) above), such
payment or distribution shall be received and held in trust by the Junior
Lenders for the benefit of the Senior Lender, to the extent necessary to pay
the Senior Debt in full in cash, property or securities (valued as provided in
subsection (i) above) after giving effect to all concurrent payments and
distributions.

The Borrower shall give
written notice to the Senior Lender and the Junior Lenders within three days of
receipt of notice of any Proceeding.

Section
4.              Remedy Standstill.

The
Junior Lenders shall not exercise any Remedy in respect of any Default until
the earliest of (i) the date the Senior Debt has been paid in full, (ii) the
date a Proceeding is commenced or (iii) the date the Senior Debt has been accelerated
in writing.

Section
5.              Payments Held in Trust,
Subrogation, Right to Cure and Purchase.

(i)            If any payment or distribution of
assets on account of the Junior Debt shall be made by the Borrower or received
by the Junior Lenders at a time when such payment or distribution was
prohibited by the provisions of this Agreement, then such payment or
distribution shall be received and held in trust by the Junior Lenders for the
benefit of the 

Senior Lender
and shall be paid or delivered by the Junior Lenders to the Senior Lender to
the extent necessary to enable payment in full of the Senior Debt.

(ii)           After the payment in full of all
Senior Debt, the Junior Lenders shall be subrogated to the rights of the
holders of such Senior Debt to receive payments or distributions of assets of
the Borrower applicable to the Senior Debt until all amounts owing on the
Junior Debt shall be paid in full, and for the purpose of such subrogation no
such payments or distributions to the holders of the Senior Debt by or on behalf
of the Borrower, or by or on behalf of the Junior Lenders by virtue of this
Agreement, that otherwise would have been made to the Junior Lenders shall, as
between the Borrower and the Junior Lenders, be deemed to be payment by the
Borrower to or on account of the Senior Debt in respect thereof, it being
understood that the provisions of this Agreement are and are intended solely
for the purpose of defining the relative rights of the Junior Lenders, on the
one hand, and the holders of such Senior Debt, on the other hand.  If any payment or distribution to which the Junior
Lenders would otherwise have been entitled but for the provisions of this
Agreement shall have been applied, pursuant to the provisions of this
Agreement, to the payment of amounts payable under the Senior Debt, then the Junior
Lenders shall be entitled to receive from the holders of the Senior Debt any
payments or distributions received by such holders of the Senior Debt in excess
of the amount sufficient to pay all amounts payable under or in respect of such
Senior Debt in full.

(iii)          The Senior Lender hereby grants the Junior
Lenders the right, but not the obligation, to cure any and all defaults under
the Senior Debt (to the extent any such defaults are curable) within the same
period of time afforded the Borrower for curing such defaults before the same
become Senior Events of Default.  The
Senior Lender shall have no obligation hereunder, however, to provide notice of
any Senior Event of Default to the Junior Lenders, and the lack of any such
notice shall not affect the existence or occurrence of any Event of Default.

Section
6.              No Prejudice or
Impairment.

Nothing
contained in this Agreement, is intended to or shall impair, as between the Borrower
and the Junior Lenders, the obligation of the Borrower, which is absolute and
unconditional, to pay to the Junior Lenders the Junior Debt as and when the
same shall become due and payable in accordance with its terms, or is intended
to or shall affect the relative rights of the Junior Lenders and creditors of
the Borrower (other than the holders of the Senior Debt).

Section
7.              Proofs of Claim.

In
connection with any Proceeding involving any Borrower, the Junior Lenders are
entitled to file proofs of claim in respect of the Junior Debt.  Upon the failure of the Junior Lenders to
take any such action as of the fifteenth Business Day preceding the bar date
for the filing of proofs of claims, the Senior Lender is hereby irrevocably
authorized and empowered, but shall have no obligation to file proofs of claim
with respect to the Junior Debt. 
Notwithstanding the foregoing, the Senior Lender shall not have any
right whatsoever to vote any claim that the Junior Lenders may have in the
Proceeding to accept or reject any plan or 

partial or complete liquidation,
reorganization, arrangement, composition, or extension; provided, that the Junior
Lenders shall not vote with respect to any such plan or take any other action
in any way so as to contest (i) the relative rights and duties of the Senior
Lender under the Senior Loan Documents with respect to any collateral or guaranties
or (ii) the Junior Lenders’ obligations and agreements set forth in this
Agreement.

Section
8.              Benefit of Agreement;
Amendments of Certain Documents; etc.

This
Agreement shall constitute a continuing offer to all Persons who, in reliance
upon such provisions, become a Senior Lender, and such provisions are made for
the benefit of each subsequent Senior Lender and each of them may enforce such
provisions.

The Senior Loan Documents may be amended,
supplemented, waived, altered, modified, or otherwise changed in any manner approved
by the Senior Lender and the Borrower without the consent or approval of the Junior
Lenders.  The Junior Loan Documents may not
be amended, supplemented, waived, altered, modified, or otherwise changed in
any manner without the prior written approval of the Senior Lender.

The Senior Lender shall have no obligation to preserve
rights in the Collateral against any prior parties or to marshal any of the
Collateral for the benefit of any Person. 
No failure to exercise, and no delay in exercising on the part of any
party hereto, any right, power, or privilege under this Agreement shall operate
as a waiver thereof; nor shall any single or partial exercise of any right,
power, or privilege under this Agreement preclude any other or further exercise
thereof or the exercise of any other right, power, or privilege.  The rights and remedies provided in this
Agreement are cumulative and shall not be exclusive of any rights or remedies
provided by law.

Except as expressly set forth herein, there shall be
no third party beneficiaries of this Agreement.

Section
9.              Further Agreements
Concerning the Collateral and Senior Debt.

Each
Junior Lender agrees that (i) it will not at any time contest the
validity, perfection, priority or enforceability of the security interests and
liens granted by the Borrower to the Senior Lender in the Borrower’s assets;
(ii) the Senior Lender may administer the Senior Debt and any of the
Senior Lender’s agreements with the Borrower in any way the Senior Lender deems
appropriate consistent with the terms and provisions of the Senior Loan
Documents, without regard to the Junior Lenders or the Junior Debt;
(iii) the Senior Lender shall have no obligation to preserve rights in the
Collateral against any prior parties or to marshal any of the Collateral for
the benefit of any Person; (iv) nothing in this Agreement shall impair or
adversely affect the manner or timing with which the Senior Lender enforces any
of its security; (vi) nothing in this Agreement shall impair or adversely
affect any right, privilege, power or remedy of the Senior Lender with respect
to the Senior Debt, the Borrower, or any assets of the Borrower, including
without limitation, the Senior Lender’s right to (x) waive or release any
of the Senior Lender’s security or rights, (y) waive or ignore any
defaults by the Borrower; and/or (z) restructure, renew, modify, or
supplement the Senior Debt or any portion thereof or any agreement with the
Borrower relating to the Senior Debt or to increase the outstanding principal
amount of the Senior Debt by extending additional credit to the Borrower; and
(vi) nothing contained herein is 

intended to alter or deprive
the Senior Lender of any of its rights as the senior secured creditor of the
Borrower to collect or otherwise foreclose upon any of the Borrower’s assets.

Section
10.            Instrument Legend.

Any
instrument evidencing any of the Junior Debt (including, without limitation,
the Junior Notes), or any portion thereof, will, on the date hereof, have
affixed to it a document conspicuously indicating that payment thereof is
subordinated to the claims of the Senior Creditor pursuant to the terms of this
Agreement:  “THIS INSTRUMENT IS SUBJECT
TO THE TERMS OF A SUBORDINATION AGREEMENT DATED AS OF JULY 13, 2007 BY AND
BETWEEN THE HOLDER HEREOF AND CAMOFI MASTER LDC AND CAMHZN MASTER LDC.”  Any instruments evidencing any of the Junior
Debt, or any portion thereof, which is hereafter executed by the Borrower,
will, on the date thereof, be inscribed with the aforesaid legend, and copies
of such instrument will be delivered to the Senior Lender on the date of its
execution or within five (5) business days thereafter and the original of such
instrument will be delivered to the Senior Lender upon request therefor to the
Senior Lender after the occurrence of a Senior Event of Default.

Section
11.            Representations and
Warranties.

Each of the parties hereto
hereby represents and warrants that (i) it has full power, authority and legal
right to make and perform this Agreement and (ii) this Agreement is its legal,
valid, and binding obligation, enforceable against it in accordance with its
terms.

Section
12.            Amendment.Neither
this Agreement nor any of the terms hereof may be amended, waived, discharged,
or terminated unless such amendment, waiver, discharge, or termination is in
writing signed by the Senior Lender and the Junior Lenders.

Section
13.            Successors and Assigns.  This Agreement and the terms, covenants, and
conditions hereof shall be binding upon and inure to the benefit of the parties
hereto, and their respective successors and assigns, and neither the Senior
Debt nor the Junior Debt shall be sold, assigned, or transferred unless the
assignee or transferee thereof expressly takes such debt subject to and agrees
to be bound by the terms and conditions of this Agreement.

Section
14.            Governing Law.  This Agreement will be construed in
accordance with and governed by the law of the State of New York, without regard
to the choice of law principles thereof.

Section
15.            Notices. Whenever it is provided
herein that any notice, demand, request, consent, approval, declaration, or
other communication shall or may be given to or served upon any of the parties
by another, or whenever any of the parties desires to give or serve upon
another any such communication with respect to this Agreement, each such
notice, demand, request, consent, approval, declaration, or other communication
shall be in writing and shall be deemed to have been duly given and received,
for purposes hereof, when (i) delivered by hand, (ii) four days after being
deposited in the mail, postage prepaid, and (iii) one Business Day after having
been sent by reputable overnight courier, in each case addressed as set forth
on Annex I hereto or at such address as may be substituted by notice given as
herein provided.  Failure to 

delay in delivering
copies of any communication to the persons designated to receive copies shall
in no way adversely affect the effectiveness of such communication.

Section
16.            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.

Section
17.            Final Agreement.  THIS AGREEMENT REPRESENTS THE FINAL AGREEMENT
BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR,
CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO ORAL AGREEMENTS BETWEEN THE
PARTIES.

Section
18.            WAIVER OF JURY TRIAL.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, THE SENIOR LENDER, THE JUNIOR LENDERS AND THE BORROWERS HEREBY IRREVOCABLY
AND EXPRESSLY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED UPON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR
RELATING TO THIS AGREEMENT OR THE TRANSACTION CONTEMPLATED THEREBY OR THE
ACTIONS OF THE SENIOR LENDER OR THE JUNIOR LENDERS IN THE NEGOTIATION,
ADMINISTRATION OR ENFORCEMENT HEREOF.

[REMAINDER OF PAGE LEFT BLANK
INTENTIONALLY; SIGNATURES PAGES FOLLOW.]

IN WITNESS WHEREOF, the
parties hereto have caused this Subordination Agreement to be duly executed by
their proper and duly authorized officers as of the day and year first above
written.

	
   

  	
  SENIOR LENDERS:

  
	
   

  	
   

  
	
   

  	
  CAMOFI MASTER
  LDC

  
	
   

  	
  CAMHZN MASTER
  LDC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  JUNIOR
  LENDERS:

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  SHEA DEVELOPMENT
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SUBSIDIARIES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
										

 

 

	
  

  	
  By:

  	
   

  	
   

  
	
   

  	
  Its:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
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ANNEX I

ADDRESSES FOR NOTICE

Senior
Lender

CAMOFI Master LDC

CAMHZN Master LDC

c/o Centrecourt Asset Management

350 Madison Avenue

New York NY 10017

Attn: Keith D. Wellner,
General Counsel

Junior
Lenders

Borrowers

with a copy to:Exhibit
10.13

THIS SECURITY HAS BEEN
ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR FOR SALE IN CONNECTION WITH,
ANY DISTRIBUTION THEREOF WITHIN THE MEANING OF THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”).

THE SECURITIES
REPRESENTED BY THIS NOTE HAVE NOT BEEN REGISTERED UNDER THE ACT OR REGISTERED
OR QUALIFIED UNDER ANY OTHER APPLICABLE FEDERAL OR STATE SECURITIES LAWS.  THESE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION UNDER
SUCH LAWS OR AN OPINION OF COUNSEL ACCEPTABLE TO THE PARENT TO THE EFFECT THAT
SUCH REGISTRATION IS NOT REQUIRED.

RIPTIDE
SOFTWARE, INC.

CONVERTIBLE SUBORDINATE NOTE

	
  US $                    

  	
               ,
  2007

  

 

Riptide Software,
Inc., a Florida corporation, with its registered office at 3452 Lake Lynda
Drive, #350, Orlando, Florida 32817 (the “Obligor”,
which term, as used herein, shall include any successor thereto), for value
received, hereby executes and delivers this Convertible Subordinate Note (this “Note”) in favor of                        
(the “Holder”), and hereby promises to
pay to Holder, his designees or his successors and permitted assigns, the
principal sum of US$              (the
“Principal Amount”) together with
any accrued and unpaid interest through and including the Maturity Date as
herein provided at a rate per annum equal to the Prime Rate (the “Accrued Interest”) in accordance
with Section 2 hereof. This Note is issued in connection with the transactions
described in that certain Agreement and Plan of Merger, dated as of April 4,
2007, by and among Shea Development Corp., a Nevada corporation (“Parent”), Shea Development
Acquisition No. 2 Corp., a Nevada corporation (“Merger
Sub”), Obligor, and holders of the outstanding capital stock of
Obligor including Holder (the “Merger Agreement”).  Interest hereunder shall be computed on the
basis of a 360-day year consisting of twelve 30-day months for the actual
number of days elapsed.

Capitalized terms
used and not otherwise defined herein shall have the respective meanings
ascribed to such terms in Section 10.

1.                                      Maturity
Date.

The then Principal
Balance, together with the Accrued Interest thereon as set forth above (subject
to any reductions per Section 8), shall become due and payable on                  (the
“Maturity Date”).

2.                                      Payment
Schedule

(a)           Principal
Payments.  Principal payments
in the amount of $             
shall be made by the Obligor to the Holder on the first anniversary and the
second anniversary of the Issue Date, with the remaining principal payment in
the amount of $            
being made by the Obligor to the Holder on the third anniversary of the Issue
Date.  Each such principal payment

shall, upon payment as provided in this paragraph, be subtracted from
the Principal Amount to arrive at the then outstanding principal balance
hereunder (the “Principal Balance”).

(b)           Interest
Payments.  Interest payments
hereunder shall accrue commencing on the Issue Date and shall be paid by the
Obligor to the Holder in the form of Parent Common Stock on each of the first,
second and third anniversary of the Issue Date. 
Interest hereunder will accrue commencing on the Issue Date and
thereafter on each applicable interest payment date pursuant to the foregoing
sentence and be paid by the Obligor to the Holder on each subsequent
anniversary date.  For the purpose of
calculating the number of shares of Parent Common Stock due to the Holder at
each interest payment date, the Accrued Interest shall be divided by the Note
Conversion Price.  Notwithstanding any
provision of this Note to the contrary, interest will accrue and be payable
under and pursuant to this Note until all indebtedness under this Note
(including, but not limited to, all unpaid principal and all accrued but unpaid
interest) is paid in full, unless Holder shall have otherwise converted this
Note in accordance with the terms set forth in Section 8 hereof.  In the event that any indebtedness under this
Note (including, but not limited to, all unpaid principal and all accrued but
unpaid interest) remains unpaid after the Maturity Date or Default Date, then
Obligor shall be in default under this Note and such indebtedness shall bear
interest at the rate of the Prime Rate plus         percent
(        %) per annum (the “Default Rate”) until such indebtedness
is paid in full.

3.                                      Acceleration.

Notwithstanding
any provision hereof to the contrary, the obligations of Obligor hereunder
shall forthwith mature and immediately accelerate and shall be immediately due
and payable on the Default Date (as hereinafter defined) in the event that any
of the following occurs (each, a “Default Event”):
(i) the business of Obligor is discontinued, sold, liquidated or otherwise
disposed of, including by merger, consolidation, sale of all or substantially
all of the assets, liquidation or dissolution; 
(ii) Obligor’s (A) admission in writing of its inability to pay its
obligations as they become due, (B) assignment for the benefit of its
creditors, or (C) application for, consent to or acquiescence in, the
appointment of a trustee, receiver or other custodian for Obligor, the property
of Obligor or any part thereof or, in the absence of any application, consent
or acquiescence, the appointment of a trustee, receiver or other custodian for
Obligor or a substantial part of the property of Obligor, which appointment is
not discharged within sixty (60) days; 
(iii) commencement of any case under Title 11 of the United States Code
or any other bankruptcy, reorganization, receivership, custodianship or similar
proceeding under any state or federal law by or against Obligor and, with
respect to any such case or proceeding that is involuntary, such case or
proceeding is not dismissed within ninety (90) days of the filing
thereof;  (iv) Obligor defaults in the
full, prompt and complete performance of all terms, conditions, covenants and
obligations contained in this Note (including Obligor’s failure to pay any
amounts under this Note when due), or instrument executed and delivered by
Obligor to Holder in connection with this Note; or  (v) commencement of any litigation or
proceeding before any court, government or governmental agency, body or
instrumentality (federal, state, local or foreign) against or affecting
Obligor, and such litigation or proceeding substantially impairs the ability of
Obligor to perform its obligations under this Note. The date on which any
Default Event occurs is referred to herein as the “Default
Date.”  No remedy herein
conferred upon or reserved to the Holders is intended to be exclusive of any
other remedy or remedies, and

 2
 

each and every such
remedy shall be cumulative, and shall be in addition to every other remedy
given hereunder, or now or hereafter existing at law or in equity.

4.                                      Prepayments.

The Principal
Amount or Principal Balance, as applicable, of this Note may be prepaid by
Obligor at any time.

5.                                      Method
of Payment.

Obligor shall pay
the Principal Amount and any other amounts payable in cash hereunder
(including, at Holder’s option, any amounts payable under the Default Rate) in
cash by wire transfer of immediately available funds to an account designated
by Holder or, if no account has been designated, by certified check delivered
to Holder at such place as Holder shall designate to Obligor in writing.

6.                                      Presentment
Waived.

Obligor hereby
expressly waives presentment for payment, demand, notice of dishonor, protest,
notice of protest, notice of default, notice of demand, notice of nonpayment,
notice of intent to accelerate and any other notice required to be given under
the law to Obligor in connection with the delivery, acceptance, performance
default or enforcement of this Note.  In
any action on this Note, Holder need not produce or file the original of this
Note but only need produce or file a photocopy of this Note certified by the
Holder to be a true and correct copy of this Note.  Acceptance by Holder of any payment that is
less than the full amount then due and owing hereunder shall not constitute a
waiver of Holder’s right to receive payment in full at such time or at any
prior or subsequent time.

7.                                      Order
of Priority.

Prior to the
Maturity Date, except for the obligations of Obligor upon any payment or
conversion of the Principal Amount or Principal Balance, as applicable, in
accordance with the terms of this Note, all indebtedness evidenced by this Note
shall be:

(a)           With respect to all money and property of
Obligor (the “Property”),
subordinated to (i) all other existing secured indebtedness of Obligor to
financial institutions (and specifically excluding trade debt, inter-company
debt or debt owing to affiliates), and (ii) to the extent consented to by the
Holder in writing, indebtedness incurred after the Issue Date but prior to the
Maturity Date (the “Senior Indebtedness”);

(b)           Not subject to any right of set-off; and

(c)           Except upon the Maturity Date or the Default
Date, Holder shall not claim, request, demand, sue for, take or receive
(whether by way of set-off or in any other manner and whether from Obligor or
any other person) any Property which is subject to any Senior Indebtedness.

 3
 

8.                                      Conversion
Rights.

(a)           Optional
Conversion.

(i)                                     At any time prior
to the Maturity Date, at the option of Holder in his sole discretion, all or
any portion of the Principal Amount or Principal Balance, as applicable, of
this Note may be converted (an “Optional
Conversion”) into a number of shares of Parent Common Stock (the
“Optional Conversion Shares”)
equal to the amount of the Principal Amount or Principal Balance, as
applicable, to be converted divided by the Note Conversion Price.

(ii)                                  In order to exercise
the right of Optional Conversion, Holder shall surrender this Note at the
principal office of Obligor and shall give written notice of such exercise,
substantially in the form of Appendix 1 attached hereto (the “Conversion Notice”), to Obligor at such
office.  Such Optional Conversion shall
be deemed to have been effected at the close of business on the date on which
such Conversion Notice, duly completed and executed, shall have been given as
aforesaid, and, at such time, such portion of the Principal Amount or Principal
Balance, as applicable, as is subject to such Optional Conversion shall be
applied by Parent for and on behalf of Obligor in full payment of the Optional
Conversion Shares to be issued by Parent to Holder as a result of the Optional
Conversion and such application shall discharge Obligor from all liability in
respect of such portion of the Principal Amount or Principal Balance, as
applicable, that is converted, and Holder shall be deemed for all purposes to
have become the holder of the Optional Conversion Shares.

(iii)                               As promptly as
practicable, but in no event later than five (5) Business Days, after an
Optional Conversion, (1) Obligor, at its expense, shall cause the Conversion
Notice presented by Holder to Obligor, and any other documents necessary for
such Optional Conversion, to be effected, (2) Parent shall cause the Optional
Conversion Shares to be issued to Holder and shall cause Holder’s name to be
entered in the Parent’s shareholders’ registry with respect to such Optional
Conversion Shares, (3) Obligor shall cause to be paid to Holder all Accrued
Interest through and including the date of the Optional Conversion on that
portion of the Principal Amount or Principal Balance, as applicable, subject to
such Optional Conversion and (4) Obligor shall cause to be delivered to Holder
a Convertible Subordinate Note, in form and substance identical to this Note,
for the remaining Principal Balance if such Optional Conversion was not for the
entire portion of the Principal Amount or Principal Balance, as
applicable.  Notwithstanding any
provision of this Note to the contrary, no Optional Conversion shall be deemed
to have occurred unless and until Obligor shall have complied with the
obligations set forth in this paragraph, whereupon such Optional Conversion
shall be deemed to have been effective as of the date the Conversion Notice is
given to Obligor; provided, however, that no failure by Obligor to so comply
with such

 4
 

obligations shall prohibit Holder from exercising his rights as the
holder of the Optional Conversion Shares.

(b)           Maturity
Conversion.

(i)                                     Upon the Maturity
Date, at the option of Holder in his sole discretion, the Holder may convert the
entire remaining Principal Balance and Accrued Interest of this Note (the “Maturity Conversion”) into a number of
shares of Parent Common Stock (the “Maturity
Conversion Shares”) equal to the amount of the Principal Balance
plus the Accrued Interest to be converted divided by the Note Conversion Price.

(ii)                                  In order to exercise
the right of Maturity Conversion, Holder shall surrender this Note at the
principal office of Obligor and shall give written notice of such exercise,
substantially in the form of the Conversion Notice, to Obligor at such
office.  Such Maturity Conversion shall
be deemed to have been effected at the close of business on the date on which
such Conversion Notice, duly completed and executed, shall have been given as
aforesaid, and, at such time, the entire remaining Principal Balance and
Accrued Interest as is subject to such Maturity Conversion shall be applied by
Parent for and on behalf of Obligor in full payment of the Maturity Conversion
Shares to be issued by Parent to the Holder as a result of the Maturity
Conversion and such application shall discharge Obligor from all liability in
respect of the Principal Balance of this Note, and Holder shall be deemed for
all purposes to have become the holder of the Maturity Conversion Shares.

(iii)                               As promptly as
practicable, but in no event later than five (5) business days, after a
Maturity Conversion, (1) Obligor, at its expense, shall cause the Conversion
Notice presented by Holder to Obligor, and any other documents necessary for
such Maturity Conversion, to be effected, (2) Parent shall cause the Maturity
Conversion Shares to be issued to Holder and shall cause Holder’s name to be
entered in the Parent’s shareholders’ registry with respect to such Maturity
Conversion Shares, and (3) Obligor shall cause to be paid to Holder all Accrued
Interest through and including the date of the Maturity Conversion on that
portion of the Principal Balance subject to such Maturity Conversion.  Notwithstanding any provision of this Note to
the contrary, no Maturity Conversion shall be deemed to have occurred unless
and until Obligor shall have complied with the obligations set forth in this
paragraph, whereupon such Maturity Conversion shall be deemed to have been
effective as of the Maturity Date; provided, however, that no failure by
Obligor to so comply with such obligations shall prohibit Holder from
exercising his rights as the holder of the Maturity Conversion Shares.

 5
 

9.                                      Miscellaneous.

(a)           Actions
by Obligor.  Prior to the
Maturity Date, any right, option, discretion, obligation, notice, approval,
consent, authorization or other action required or permitted to be exercised,
performed, given or taken by Obligor or its Board under this Note in order to
enforce Obligor’s rights under this Note shall be exercised, performed, given
or taken only pursuant to a resolution duly adopted by the Board.  Notwithstanding the foregoing, time shall be
of the essence with regard to each and every term, condition and obligation of
the Obligor under this Note.

(b)           No Dividends.  Obligor shall not pay any dividend or make any distribution on any shares of its
capital stock at any time during which any indebtedness under this Note
(including, but not limited to, all unpaid principal and all accrued but unpaid
interest) remains unpaid.

(c)           Issuance of Parent Common Stock; Reservation of Shares.  Parent
represents and warrants to Holder that: (i) all shares of Parent Common Stock
which may be issued to the Holder hereunder shall, upon issuance pursuant to
the terms hereof, be duly authorized, validly issued, fully paid, and
non-assessable shares of Parent Common Stock free from all taxes, liens and
charges with respect to the issue thereof; and (ii) at all times during which
any indebtedness under this Note (including, but not limited to, all unpaid
principal and all accrued but unpaid interest) remains unpaid, Parent shall
have authorized, and shall have reserved for issuance, a sufficient number of
shares of Parent Common Stock to accommodate Holder’s rights under Sections 2(b)
and 8 hereof.

(d)           Specific
Performance.  Obligor and
Holder acknowledge and agree that in the event of any breach of this Note, the
non-breaching party would be irreparably harmed and could not be made whole
solely by monetary damages. Obligor and Holder hereby agree that in addition to
any other remedy to which any party may be entitled at law or in equity, to the
extent permitted by applicable law, Obligor and Holder shall be entitled to
obtain an injunction or compel specific performance of this Note in any action
instituted in any Court.

(e)           Interpretation.  The headings and captions in this Note are
for convenience of reference only and shall not control or affect the meaning
or construction of any provisions hereof. When used in this Note, (i) the symbol
“$” shall refer to the lawful currency of the United States of America and (ii)
the words “including” and “include” shall be deemed followed by the words “without
limitation.”

(f)            Notices.  All notices and other communications required
or permitted to be given hereunder shall be in writing and shall be (i)
delivered by hand, (ii) delivered by a reputable commercial overnight delivery
service, or (iii) transmitted by facsimile, in each case, sent to the address
or telecopier number set forth below. Such notices shall be effective: (i) in
the case of hand deliveries, when received; (ii) in the case of an overnight
delivery service, when received; and (iii) in the case of facsimile
transmission, when electronic confirmation of receipt is received by the sender.
Any party may change its address and telecopy number by written notice to
another party in accordance with this provision, provided that such notice
shall be effective only upon receipt.

 6
 

If to Obligor, to:

Riptide Software, Inc.

C/O  Dunnington, Bartholow & Miller LLP

477 Madison Avenue, 12th
Floor

New York, NY 10022

Telephone:     212-682-8811

Facsimile:       212-661-7769

Attention:  Frank Mooney/Robert
T. Lincoln

If to Holder, to:

 

 

 

 

If to Parent, to:

Shea Development Corp.

1351 Dividend Drive,
Suite G

Marietta, GA 30067

Telecopy:  (408) 516-8239

Attention: Joe Vitetta

(g)           Governing
Law; Forum; Service of Process. 
This Note shall be governed by and construed in accordance with the laws
of the State of New York (without giving effect to conflicts of law principles)
as to all matters, including validity, construction, effect, performance and
remedies of and under this Note. Venue in any and all suits, actions and proceedings
between the parties hereto and relating to the subject matter of this Note
shall be in the courts located in the State of New York (the “Courts”), which shall have exclusive
jurisdiction for such purpose, and Holder, Obligor and Parent hereby irrevocably
submit to the exclusive jurisdiction of such Courts and irrevocably waive the
defense of an inconvenient forum to the maintenance of any such suit, action or
proceeding. Service of process may be made in any manner recognized by such
Courts.  Holder and Obligor each hereby
irrevocably waives its right to a jury trial arising out of any dispute in
connection with this Note or the transactions contemplated hereby.

(h)           Severability.  The invalidity, illegality or
unenforceability of one or more of the clauses or provisions of this Note in
any jurisdiction shall not affect the validity, legality or enforceability of
this Note in such jurisdiction or the validity, legality or enforceability of
this Note, including any such clause or provision, in any other jurisdiction,
it being intended that all rights and obligations of the parties hereunder
shall be enforceable to the fullest extent permitted by law.

(i)            Successors;
Assigns; Third-Party Beneficiaries. The provisions of this Note
shall be binding upon the parties hereto and their respective heirs, successors
and permitted assigns. Neither this Note nor the rights or obligations of
Obligor may be assigned by Obligor without the prior written consent of
Holder.  Holder may assign his rights or
obligations hereunder to any

 7
 

Affiliate, provided that any assignment to an Affiliate which is not a
wholly owned subsidiary of the Holder shall be subject to the prior written
consent of Obligor which consent shall not be unreasonably withheld or delayed.
Any attempted assignment in contravention of this Note shall be null and void
and of no effect.  This Note is for the
sole benefit of the parties hereto and their respective heirs, successors and
permitted assigns and no provision hereof, whether express or implied, is
intended, or shall be construed, to give any other Person any rights or
remedies, whether legal or equitable, hereunder.

(j)            Amendments.  This Note may not be amended, modified or
supplemented except in a writing signed by Obligor and Holder.

(k)           Waiver.  Any waiver (whether express or implied) of
any default or breach of or by any party to this Note shall not be effective
unless evidenced by a writing signed by the party against which such waiver is
sought to be enforced. No such waiver for any purpose shall constitute a waiver
of any other or subsequent default or breach, or for any other purpose.

(l)            Legality
of Interest.  Notwithstanding
any provision herein or in any document or instrument now or hereafter securing
this Note, the total liability for payments in the nature of interest shall not
exceed the limits now imposed by applicable law.  Any sums collected by Holder deemed to be
interest in excess of the legal rate shall, at the option of Holder, (a) be
returned to Obligor or (b) to the extent permitted by applicable law, be
applied by Holder in payment of the outstanding Principal Balance under this
Note.

(m)          Attorneys’
Fees.  If any suit or action
is instituted or attorneys are employed to collect this Note or any part
hereof, Obligor promises and agrees to pay all costs and expenses of
collection, including reasonable attorneys’ fees and court costs.

10.                               Definitions.

As used in this
Note, the following terms shall have the following meanings:

“Affiliate” has the meaning
specified in Rule 12b-2 promulgated under the United States Securities Exchange
Act of 1934, as amended, and the rules and regulations promulgated thereunder.

“Board” means the board of directors
of Obligor.

“Business Day” means any day other
than a Saturday, Sunday or other day on which banks in the City of New York,
State of New York, United States of America are required or authorized to be
closed.

“Conversion Notice” has the meaning
specified in Section 8(a)(ii).

“Convertible Subordinate Note” means
this Convertible Subordinate Note and all amendments made hereto in accordance
with the provisions hereof.

“Court” has the meaning specified in
Section 9(g).

 8
 

“Holder” has the meaning specified
in the Preamble.

“Issue Date” means the date of first
issuance of this Note as first set forth above.

“Maturity Conversion” has the
meaning specified in Section 8(b)(i).

“Maturity Conversion Shares” has the
meaning specified in Section 8(b)(i).

“Maturity Date” has the meaning
specified in Section 1.

“Note” means this Convertible
Subordinate Note and all amendments made hereto in accordance with the
provisions hereof.

“Note Conversion Price” means $       .

“Obligor” has the meaning specified
in the Preamble.

“Optional Conversion” has the
meaning specified in Section 8(a)(i).

“Optional Conversion Shares” has the
meaning specified in Section 8(a)(i).

“Parent” has the meaning specified
in the Preamble.

“Parent Common Stock” means the
common stock, par value           
per share, of Parent or the shares of common stock of any entity that succeeds
to the business of Parent, including without limitation, by merger, acquisition
or reorganization.

“Person” means any individual, firm,
corporation, proprietary, public or private company, partnership, limited
liability company, public liability company, trust or other entity, and shall
include any successor (by merger or otherwise) of such entity.

“Prime Rate” means the rate per
annum reported from time to time in The Wall Street Journal or the prime
rate charged by one or more banks in the United States in connection with loans
made to customers.

“Principal Amount” has the meaning
specified in the Preamble.

“Principal Balance” has the meaning
specified in Section 2(a).

 9
 

IN WITNESS
WHEREOF, Obligor has caused this Convertible Subordinate Note to be duly executed
and delivered as of the date first set forth above.

	
  

  	
  RIPTIDE SOFTWARE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name: Philip Loeffel

  
	
   

  	
   

  
	
   

  	
  Title: CEO

  
					

 

Parent hereby acknowledges and
agrees to the terms

of this Convertible Subordinate Note, including its

obligation to issue shares of its common stock, par

value $.           per share,
hereunder:

	
  SHEA DEVELOPMENT CORP.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Its:

  	
   

  	
   

  	
   

  
						

 

 10
 

APPENDIX
1

Form of

CONVERSION
NOTICE

To:   Riptide Software, Inc.

The undersigned
registered Holder of the attached Convertible Subordinate Note, dated as of           
2007, (the “Note”) originally executed by
Riptide Software, Inc., a company organized under the laws of the State of
Florida (the “Obligor”), in favor of Philip
Loeffel  (the “Holder”),
hereby irrevocably exercises the option to convert $          of
the Principal Amount or such lesser amount, or the Principal Balance, as
applicable, under the Note into the Optional Conversion Shares or Maturity Conversion
Shares, as applicable, in accordance with the terms of the Note, and directs
that the certificates representing such Optional Conversion Shares or Maturity
Conversion Shares, as applicable, issuable and deliverable upon such conversion
be issued and delivered to the registered Holder hereof unless a different name
has been indicated below. Capitalized terms used in this Conversion Notice and
not otherwise defined herein shall have the respective meanings ascribed to
such terms in the Note.

	
  

  	
  Dated:

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Signature(s)

  

 

 11

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