Document:

Promissory Note

    Exhibit
      10.2

    PROMISSORY
      NOTE

     

    
      	FACE AMOUNT 	$780,000 
	PRICE 	$650,000 
	INTEREST RATE 	0% per month 
	NOTE NUMBER 	December-2006-101 
	ISSUANCE DATE 	December 6, 2006 
	MATURITY DATE 	December 6,
              2007 

    

     

    FOR
      VALUE
      RECEIVED, Seawright Holdings, Inc., a Delaware corporation, and all of its
      subsidiaries (the “Company”) (OTC BB: SWRI) hereby promises to pay to the order
      of DUTCHESS
      PRIVATE EQUITIES FUND, L.P. (the
      “Holder”) by the Maturity Date, or earlier, the Face Amount of Seven Hundred and
      Eighty Thousand Dollars ($780,000) U.S., (this "Note") in such amounts, at
      such
      times and on such terms and conditions as are specified herein (sometimes
      hereinafter the Company and the Holder are referred to collectively as "the
      Parties").

    

    Any
      capitalized terms not defined in this Note are defined in the Investment
      Agreement for the Equity Line of Credit between Dutchess Private Equities Fund,
      LP (as the “Investor”) and the Company (the "Equity Line"), which definitions
      the Company and the Holder incorporate herein by reference.

    

    Article
      1    Method
      of
      Payment

    

    Section
      1.1    Payments made to the
      Holder by the Company in satisfaction of this Note (referred to as a "Payment,"
      or "Payments"). The Company shall make payments to the Holder in the amount
      of
      the greater of a) one hundred percent (100%) of each Put (as defined in the
      Investment Agreement between the Company and the Investor dated September 12,
      2005) given to the Investor from the Company; or, b) made in monthly increments
      of sixty-five thousand dollars ($65,000.00) (the “Payment Amount”) until the
      Face Amount is paid in full, minus any fees due. The first Payment will be
      due
      on January 6, 2007 and each subsequent Payment will be paid on the sixth (6th)
      day of each month thereafter (the "Payment Date" or "Payment Dates").
      Notwithstanding any provision to the contrary in this Note, the Company may
      pay
      in full to the Holder the Face Amount, or any balance remaining thereon, in
      readily available funds at any time and from time to time without
      penalty.

    

    Section
      1.2    Payments pursuant to
      this Section 1.2, shall be drawn directly from the closing of each Put and
      shall
      be wired directly to the Holder on the Closing Date and shall be included in
      the
      calculation of the Threshold Amount (as defined in Section 1.4, below). The
      Company agrees to fully execute and diligently carry out Puts to the Investor,
      on the terms set forth in the Investment Agreement. The Company agrees that
      the
      Put Amount shall be for the maximum amount allowed under the Investment
      Agreement. Further, the Company agrees to issue Puts to the Investor for the
      maximum frequency allowed under the Investment Agreement. Failure
      to comply with the terms of the Investment Agreement with respect to the Puts
      will result
      in an
      Event of Default as defined in this Agreement in Article 4.

     

    
      
        
        

      

      
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    Section
      1.3    In
      order to assist the Company in meeting its obligations under this Note, the
      Company hereby authorizes the Investor to transfer funds from any Put directly
      to the Holder. A Put shall be deemed closed after the funds are transferred
      to
      the Holder.

    

    Section
      1.4    After Closing, the
      Company must make a prepayment to the Holder when the aggregate amount of
      financing ("Financing") received by the Company is in excess of five hundred
      thousand dollars ($500,000) (“Threshold Amount”). The Company agrees to pay one
      hundred percent (100%) of any proceeds raised by the Company over the Threshold
      Amount toward the prepayment of the Note, Interest and any penalties until
      the
      Face Amount is paid in full. The prepayments shall be made to the Holder within
      one (1) business day of the Company’s receipt of the Financing. Failure to do so
      will result in an Event of Default. The Threshold Amount shall also pertain
      to
      any assets sold, transferred or disposed of by the Company and any cash balances
      in the Company bank or brokerage accounts at the end of each month.

    

    Section
      1.5    Notwithstanding
      any provision to the contrary in this Note, within the sixty (60) days of the
      Issuance Date, the Company may pay in full to the Holder ninety percent (90%)
      of
      the balance due on the Face Amount or within ninety (90) days of the Issuance
      Date,
      the
      Company may pay in full to the Holder ninety-five percent (95%) of the balance
      due on
      the Face
      Amount, in readily available funds at any time and from time to time without
      penalty.

     

    Article
      2    Collateral

    

    Section
      2.1    The
      Company does hereby agree to issue to the Holder for use as collateral fifty
      (50) signed Put Notices. In the event, each of the Put Notices are used, the
      Holder uses the Collateral in full, the Company shall immediately deliver to
      the
      Holder additional Put Noticess as requested by the Holder..

    

    Section
      2.2    Upon
      the completion of the Company's obligation to the Holder of the Face Amount
      of
      this Note, all remaining Put Notices shall be marked “VOID” by the Holder and
      returned to the Company at the Company's request.

     

    Article
      3    Unpaid
      Amounts

    

    Section
      3.1    In
      the event that on the Maturity Date the Company has any remaining amounts unpaid
      on this Note (the "Residual Amount"), the Holder can exercise its right to
      increase the Face Amount by ten percent (10%) as an initial penalty and
      an
      additional two and one-half percent (2.5%) per month paid, pro rata for partial
      periods, compounded daily, as liquidated damages ("Liquidated Damages"). If
      a
      Residual Amount remains, the Company is in Default and the Holder may elect
      remedies as set forth in Article 4, below. The Parties acknowledge that
      Liquidated Damages are not interest and should not constitute a
      penalty.

     

    
      
        
        

      

      
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    Article
      4    Defaults
      and Remedies

    

    Section
      4.1    Events
      of Default. An
“Event
      of Default” occurs if any one of the following occur:

    

    (a)    The
      Company does not make a Payment within two (2) business days of (i) a Payment
      Date; or (ii) the closing of a Put; or, (iii) a Residual Amount on the Note
      exists on the Maturity Date; or

    

    (b)    The
      Company, pursuant to or within the meaning of any Bankruptcy Law (as hereinafter
      defined): (i) commences a voluntary case; (ii) consents to the entry of an
      order
      for relief against it in an involuntary case; (iii) consents to the appointment
      of a Custodian (as hereinafter defined) of the Company or for its property;
      (iv)
      makes an assignment for the benefit of its creditors; or (v) a court of
      competent jurisdiction enters an order or decree under any Bankruptcy Law that:
      (A) is for relief against the Company in an involuntary case; (B) appoints
      a
      Custodian of the Company or for its property; or (C) orders the liquidation
      of
      the Company, and the order or decree remains unstayed and in effect for sixty
      (60) calendar days; or

    

    (c)    The
      Company’s $0.001 par value common stock (the "Common Stock") is suspended or is
      no longer listed on any recognized exchange, including an electronic
      over-the-counter bulletin board, for in excess of two (2) consecutive trading
      days; or

    

    (d)    The
      registration statement for the underlying shares in the Equity Line is not
      effective for any reason and is not cured within five (5) days; or,

    

    (e)    Any
      of
      the Company’s representations or warranties contained in this Agreement were
      false when made; or,

    

    (f)    The
      Company breaches this Agreement, and such breach, if and only if such breach
      is
      subject to cure, continues for a period of five (5) business days.

    

    As
      used
      in this Section 4.1, the term “Bankruptcy Law” means Title 11 of the United
      States Code or any similar federal or state law for the relief of debtors.
      The
      term “Custodian” means any receiver, trustee, assignee, liquidator or similar
      official under any Bankruptcy Law.

    

    Section
      4.2    Remedies.
      In
      the
      Event of Default, the Holder shall fully enforce the Security Agreements of
      this
      date, between the Holder and the Company and between the Holder and Joel Patrick
      Sens ("Sens").

    

    For
      each and every Event
      of
      Default that has not been cured within five (5) business days, as outlined
      in
      this Agreement, the Holder can exercise its right to increase the Face Amount
      of
      the Note by ten percent (10%) as an initial penalty. In addition, the Holder
      may
      elect to increase the Face Amount of the Note by two and one-half percent (2.5%)
      as Liquidated Damages, compounded daily. The Parties acknowledge that Liquidated
      Damages are not interest under the terms of this Agreement, and shall not
      constitute a penalty.

     

    
      
        
        

      

      
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    In
      an
      Event of a Default has occurred hereunder, the Holder, at its sole election,
      shall have the right, but not the obligation, to either:

    

    a)    Switch
      the Residual Amount to a three-year (“Convertible Maturity Date”), eighteen
      percent (18%) interest bearing convertible debenture at the terms described
      hereinafter (the "Convertible Debenture"). In the Event of Default, the
      Convertible Debenture shall be considered closed (“Convertible Closing Date”),
      as of the date of the Event of Default. If the Holder chooses to convert the
      Residual Amount to a Convertible Debenture, the Company shall have twenty (20)
      business days after notice of default from the Holder (the "Notice of
      Convertible Debenture") to file a registration statement covering an amount
      of
      shares equal to three hundred percent (300%) of the Residual Amount. Such
      registration statement shall be declared effective under the Securities Act
      of
      1933, as amended (the “Securities Act”), by the Securities and Exchange
      Commission (the “Commission”) within ninety (90) business days the Convertible
      Closing Date. In the event the Company does not file such registration statement
      within twenty (20) business days of the Holder's request, or such registration
      statement is not declared effective by the Commission under the Securities
      Act
      within the time period described herein, the Residual Amount shall increase
      by
      five thousand dollars ($5,000) per day. In the event the Company is given the
      option for accelerated effectiveness of the registration statement, the Company
      will cause such registration statement to be declared effective as soon as
      reasonably practicable and will not take any action to delay the registration
      to
      become effective. In the event that the Company is given the option for
      accelerated effectiveness of the registration statement, but chooses not to
      cause such registration statement to be declared effective on such accelerated
      basis, the Residual Amount shall increase by five thousand dollars ($5,000)
      per
      day commencing on the earliest date as of which such registration statement
      would have been declared to be effective if subject to accelerated
      effectiveness; or

    

    b)    The
      Holder may increase the Payment Amount described under Article 1 to fulfill
      the
      repayment of the Residual Amount and the Company shall provide full cooperation
      to the Holder in directing funds owed to the Holder on any Put made by the
      Company to the Investor. The Company agrees to diligently carry out the terms
      outlined in the Equity Line for delivery of any such shares. In the event the
      Company is not diligently fulfilling its obligation to direct funds owed to
      the
      Holder from Puts to the Investor, as reasonably determined by the Holder, the
      Holder may, after giving the Company two (2) business days advance notice to
      cure the same, elect to increase the Face Amount of the Note by 2.5% each day,
      compounded daily, in additional to and on top of additional remedies available
      to the Holder under this Note.

    

    Section
      4.3    Conversion
      Privilege

    

    (a)    The
      Holder
      shall have the right to convert the Convertible Debenture into shares of Common
      Stock at any time following the Convertible Closing Date and before the close
      of
      business on the Convertible Maturity Date. The number of shares of Common Stock
      issuable upon the conversion of the Convertible Debenture shall be determined
      pursuant to Section 4.4, but the number of shares issuable shall be rounded
      up
      to the nearest whole share.

     

    
      
        
        

      

      
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    (b)    The
      Holder may convert the Convertible Debenture in whole or in part, at any time
      and from time to time.

     

    (c)    In
      the
      event all or any portion of the Convertible Debenture remains outstanding on
      the
      Convertible Maturity Date (the "Debenture Residual Amount"), the unconverted
      portion of such Convertible Debenture will automatically be converted into
      shares of Common Stock on such date in the manner set forth in Section
      4.4.

     

    Section
      4.4    Conversion
      Procedure.

     

    (a)    The
      Holder may elect to convert the Residual Amount in whole or in part any time
      and
      from time to time following the Convertible Closing Date. Such conversion shall
      be effectuated by providing the Company, or its attorney, with that portion
      of
      the Convertible Debenture to be converted together with a facsimile or
      electronic mail of the signed notice of conversion (the "Notice of Conversion").
      The date on which the Notice of Conversion is effective (“Conversion Date”)
      shall be deemed to be the date on which the Holder has delivered to the Company
      a facsimile or electronically mailed the Notice of Conversion. The Holder can
      elect to either reissue the Convertible Debenture, or continually convert the
      existing Debenture. Any Notice of Conversion faxed or electronically mailed
      by
      the Holder to the Company on a particular day shall be deemed to have been
      received no later than the previous business day (receipt being via a
      confirmation of the time such facsimile or electronic mail to the Company is
      received).

     

    (b)    Common
      Stock to be Issued. Upon
      the
      conversion of any Convertible Debentures by the Holder, the Company shall
      instruct its transfer agent to issue stock certificates without restrictive
      legends or stop transfer instructions, if, at that time, the aforementioned
      registration statement described in Section 4.2 has been declared effective
      (or
      with proper restrictive legends if the registration statement has not as yet
      been declared effective), in specified denominations representing the number
      of
      shares of Common Stock issuable upon such conversion. In the event that the
      Debenture is deemed saleable under Rule 144 of the Securities Exchange Act
      of
      1933, the Company shall, upon a Notice of Conversion, instruct the transfer
      agent to issue free trading certificates without restrictive legends, subject
      to
      other applicable securities laws. The Company is responsible to for all costs
      associated with the issuance of the shares, including but not limited to the
      opinion letter, FedEx of the certificates and any other costs that arise. The
      Company shall act as registrar of the Shares of Common Stock to be issued and
      shall maintain an appropriate ledger containing the necessary information with
      respect to each Convertible Debenture. The Company warrants that no instructions
      have been given or will be given to the transfer agent which limit, or otherwise
      prevent resale and that the Common Stock shall otherwise be freely resold,
      except as may be set forth herein or subject to applicable law.

     

    (c)    Conversion
      Rate. The
      Holder is entitled to convert the Debenture Residual
      Amount, plus accrued interest and penalties, anytime following the Convertible
      Closing
      Date, at
      the lesser of either (i) seventy-five percent (75%) of the lowest closing bid
      price during the
      fifteen (15) trading days immediately preceding the Notice of Conversion, or
      (ii) 100% of the
      lowest
      bid price for the twenty (20) trading days immediately preceding the Convertible
      Closing Date
      (“
Conversion Price”). No fractional shares or scrip representing fractions of
      shares will be issued on conversion, but the number of shares issuable shall
      be
      rounded up to the nearest whole share.

    

    
      
        
        

      

      
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    (d)    Nothing
      contained in the Convertible Debenture shall be deemed to establish or require
      the Company to pay interest to the Holder at a rate in excess of the maximum
      rate permitted by applicable law. In the event that the rate of interest
      required to be paid exceeds the maximum rate permitted by governing law, the
      rate of interest required to be paid thereunder shall be automatically reduced
      to the maximum rate permitted under the governing
      law and such excess shall be returned with reasonable promptness by the Holder
      to the
      Company.
      In the event this Section 4.4(d) applies, the Parties agree that the terms
      of
      this Note shall remain in full force and effect except as is necessary to make
      the interest rate comply with applicable law.

    

    (e)    It
      shall
      be the Company’s responsibility to take all necessary actions and to bear all
      such costs to issue the Common Stock as provided herein, including the
      responsibility and cost for delivery of an opinion letter to the transfer agent,
      if so required. The Holder shall be treated as a shareholder of record on the
      date the Company is required to issue the Common Stock to the Holder. If prior
      to the issuance of stock certificates, the Holder designates another person
      as
      the entity in the name of which the stock certificates requesting the
      Convertible Debenture are to be issued, the Holder shall provide to the Company
      evidence that either no tax shall be due and payable as a result of such
      transfer or that the applicable tax has been paid by the Holder or such person.
      If the Holder converts any part of the Convertible Debentures, or will be,
      the
      Company shall issue to the Holder a new Convertible Debenture equal to the
      unconverted amount, immediately upon request by the Holder.

    

    (f)    Within
      three (3) business days after receipt of the documentation referred to in this
      Section, the Company shall deliver a certificate, for the number of shares
      of
      Common Stock issuable upon the conversion. In the event the Company does not
      make delivery of
      the
      Common Stock as instructed by Holder within three (3) business days after the
      Conversion
      Date,
      the Company shall pay to the Holder an additional five percent (5%) per day
      in
      cash of the full dollar value of the Debenture Residual Amount then remaining
      after conversion, compounded daily.

    

    (g)    The
      Company shall at all times reserve (or make alternative written arrangements
      for
      reservation or contribution of shares) and have available all Common Stock
      necessary to meet conversion of the Convertible Debentures by the Holder of
      the
      entire amount of Convertible Debentures then outstanding. If, at any time,
      the
      Holder submits a Notice of Conversion and the Company does not have sufficient
      authorized but unissued shares of Common Stock (or alternative shares of Common
      Stock as may be contributed by stockholders of the Company) available to effect,
      in full, a conversion of the Convertible Debentures (a “Conversion Default,” the
      date of such default being referred to herein as the “Conversion Default Date”),
      the Company shall issue to the Holder all of the shares of Common Stock which
      are available. Any Convertible Debentures, or any portion thereof, which cannot
      be converted due to the Company's lack of sufficient authorized common stock
      (the “Unconverted Debentures”), may be deemed null and void upon written notice
      sent by the Holder to the Company.
      The Company shall provide notice of such Conversion Default (“Notice of
      Conversion Default”) to the Holder, by facsimile, within one (1) business days
      of such default.

     

    
      
        
        

      

      
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    (h)    The
      Company agrees to pay the Holder payments for a Conversion Default (“Conversion
      Default Payments”) in the amount of (N/365) multiplied by .24 multiplied by the
      initial issuance price of the outstanding or tendered but not converted
      Convertible Debentures held by the Holder where N = the number of days from
      the
      Conversion Default Date to the date (the “Authorization Date”) that the Company
      authorizes a sufficient number of shares of Common Stock to effect conversion
      of
      all remaining Convertible Debentures. The Company shall send notice
      (“Authorization Notice”) to the Holder that additional shares of Common Stock
      have been authorized, the Authorization Date, and the amount of Holder’s accrued
      Conversion Default Payments. The accrued Conversion Default shall be paid in
      cash or shall be convertible into Common Stock at the conversion rate set forth
      in the first sentence of this paragraph, upon written notice sent by the Holder
      to the Company, which Conversion Default shall be payable as follows: (i) in
      the
      event the Holder elects to take such payment in cash, cash payment shall be
      made
      to the Holder within five (5) business days, or (ii) in the event Holder elects
      to take such payment in stock, the Holder may convert at the conversion rate
      set
      forth in the first sentence of this paragraph until the expiration of the
      conversion period.

    

    (i)    The
      Company acknowledges that its failure to maintain a sufficient number of
      authorized but unissued shares of Common Stock to effect in full a conversion
      of
      the Convertible Debentures in full will cause the Holder to suffer irreparable
      harm, and that the actual damages to the Holder will be difficult to ascertain.
      Accordingly, the parties agree that it is appropriate to include in this
      Agreement a provision for liquidated damages. The Parties acknowledge and agree
      that the liquidated damages provision set forth in this section represents
      the
      parties’ good faith effort to quantify such damages and, as such, agree that the
      form and amount of such liquidated damages are reasonable, and under the
      circumstances, do not constitute a penalty. The payment of liquidated damages
      shall not relieve the Company from its obligations to deliver the Common Stock
      pursuant to the terms of this Convertible Debenture.

    

    (j)    If,
      by
      the third (3rd) business day after the Conversion Date, any portion of the
      shares of the Convertible Debentures have not been delivered to the Holder
      and
      the Holder purchases, in an open market transaction or otherwise, shares of
      Common Stock (the "Covering Shares") necessary to make delivery of shares which
      would had been delivered if the full amount of the shares to be converted had
      been delivered to the Holder, then the Company shall pay to the Holder, in
      addition to any other amounts due to Holder pursuant to this Convertible
      Debenture, and not in lieu thereof, the Buy-In Adjustment Amount (as defined
      below). The "Buy In Adjustment Amount" is the amount equal to the excess, if
      any, of (x) the Holder's total purchase price (including brokerage commissions,
      if any) for the Covering Shares minus (y) the net proceeds (after brokerage
      commissions, if any) received by the Holder from the sale of the Sold Shares.
      The Company shall pay the Buy-In Adjustment Amount to the Holder in immediately
      available funds within five (5) business days of written demand by the Holder.
      By way of illustration and not in limitation of the foregoing, if the Holder
      purchases shares of Common Stock having a total purchase price (including
      brokerage commissions) of $11,000 to cover a Buy-In with respect to shares
      of
      Common Stock it sold for net proceeds of $10,000, the Buy-In
      Adjustment Amount which the Company will be required to pay to the Holder will
      be $1,000.

     

    
      
        
        

      

      
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    Article
      5    Additional
      Financing and Registration Statements

    

    Section
      5.1    The
      Company will not enter into any additional financing agreements whether for
      debt
      or equity, without prior expressed written consent from the Holder. The Company
      shall be permitted to complete a financing using restricted stock, with no
      registration rights, and sellable only under Rule 144 of the 1933 Securities
      Act, as amended. Any monies raised under the financing described herein shall
      be
      included in the calculation of the Threshold Amount as outlined in Section
      1.4

    

    Section
      5.2    The
      Company agrees that it shall not file any registration statement which includes
      any of its Common Stock, including those on Form S-8, until such time as the
      Note is paid off in full ("Lock-Up Period") or without the prior written consent
      of the Holder.

    

    Section
      5.3    If,
      at any time, while this Note is outstanding, the Company issues or agrees to
      issue to any entity or person ("Third Party") for any reason whatsoever, any
      common stock or securities convertible into or exercisable for shares of common
      stock (or modify any such terms in effect prior to the execution of this Note)
      (a "Third Party Financing"), at terms deemed by the Holder to be more favorable
      to the Third Party, then the Company grants to the Holder the right, at the
      Holder's election, to modify the terms of this Note to match or conform to
      the
      more favorable term or terms of the Third Party Financing. The rights of the
      Holder in this Section 5.3 are in addition to all other rights the Holder has
      pursuant to this Note and the Security Agreement between the Holder and the
      Company.

    

    Section
      5.4    During the period of
      time that this Note is in force, the Company's shall use it's commercially
      reasonable best efforts, for its officers, insiders, affiliates or other related
      parties shall refrain from selling any Stock, with the exception of private
      transactions.

    

    Violation
      of any Section under this Article 5 will result in an Event of Default and
      the
      Holder may elect to take the action or actions outlined in Article
      4.

    

    Article
      6    Notice.

    

    Section
      6.1    Any
      notices, consents, waivers or other communications required or permitted to
      be
      given under the terms of this Note must be in writing and will be deemed to
      have
      been delivered (i) upon delivery, when delivered personally; (ii) upon receipt,
      when sent by facsimile (provided a confirmation of transmission is mechanically
      or electronically generated and kept on file by the sending party); or (iii)
      one
      (1) day after deposit with a nationally recognized overnight delivery service,
      so long as it is properly addressed. The addresses and facsimile numbers for
      such communications shall be:

     

    
      
        
        

      

      
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    If
      to the
      Company:

    

    Joel
      Sens

    Seawright
      Holdings

    600
      Cameron St

    Alexandria,
      VA 22314 Telephone: 703-340-1629 Facsimile: 703-576-9888

    

    With
      copy
      to: If to the Holder:

    

    Dutchess
      Capital Management, LLC

    Douglas
      Leighton

    50
      Commonwealth Ave, Suite 2

    Boston,
      MA 02116 (617) 301-4700 (617) 249-0947

    

    Section
      6.2    The
      Parties are required to provide each other with five (5) business days prior
      notice to the other party of any change in address, phone number or facsimile
      number.

    

    Article
      7    Time

    

    Where
      this Note authorizes or requires the payment of money or the performance of
      a
      condition or obligation on a Saturday or Sunday or a holiday on which the United
      States Stock Markets (“US Markets”) are closed (“Holiday”), such payment shall
      be made or condition or obligation performed on the last business day preceding
      such Saturday, Sunday or Holiday. A “business day” shall mean a day on which the
      US Markets are open for a full day or half day of trading.

     

    Article
      8    No
      Assignment.

    

    This
      Note
      and the obligations hereunder shall not be assigned, except as
      otherwise
      provided
      herein.

    

    Article
      9    Rules
      of
      Construction.

    

    In
      this
      Note, unless the context otherwise requires, words in the singular number
      include the plural, and in the plural include the singular, and words of the
      masculine gender include the feminine and the neuter, and when the tense so
      indicates, words of the neuter gender may refer to any gender. The numbers
      and
      titles of sections contained in the Note are inserted for convenience of
      reference only, and they neither form a part of this Note nor are they to be
      used in
      the
      construction or interpretation hereof. Wherever, in this Note, a determination
      of the Company is required or allowed, such determination shall be made by
      a
      majority of the Board of Directors of the Company and, if it is made in good
      faith, it shall be conclusive and binding upon the Company.

     

    
      
        
        

      

      
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    Article
      10    Governing
      Law

    

    The
      validity, terms, performance and enforcement of this Note shall be governed
      and
      construed by the provisions hereof and in accordance with the laws of the
      Commonwealth of Massachusetts applicable to agreements that are negotiated,
      executed, delivered and performed solely in the Commonwealth of
      Massachusetts.

    

    Article
      11    Disputes
      Subject to Arbitration

    

    The
      parties to this Note will submit all disputes arising under it to arbitration
      in
      Boston, Massachusetts before a single arbitrator of the American Arbitration
      Association (“AAA”). The arbitrator shall be selected by application of the
      rules of the AAA, or by mutual agreement of the parties, except that such
      arbitrator shall be an attorney admitted to practice law in the Commonwealth
      of
      Massachusetts. No party to this agreement will challenge the jurisdiction or
      venue provisions as provided in this section. Nothing in this section shall
      limit the Holder's right to obtain an injunction for a breach of this Agreement
      from a court of law.

    

    Article
      12    Conditions
      to Closing

    

    The
      Company shall have delivered the proper Collateral to the Holder before Closing
      of this Note.

    

    Article
      13    Closing
      Costs

    

    The
      Company agrees to pay for related expenses associated with the proposed
      transaction of $50,000. This amount shall cover, but is not limited to, the
      following: due diligence expenses, UCC-1 filing
      fees,
      document creation expenses, closing costs, and transaction administration
      expenses. All such structuring and administration expenses shall be deducted
      from the first
      closing.

    

    Article
      14    Indemnification

    

    In
      consideration of the Holder's execution and delivery of this Agreement and
      the
      acquisition and funding by the Holder of this Note and in addition to all of
      the
      Company's other obligations under the documents contemplated hereby, the Company
      shall defend, protect, indemnify and hold harmless the Holder and all of its
      shareholders, officers,
      directors,
      employees, counsel, and direct or indirect investors and any of the foregoing
      person's agents or other representatives (including, without limitation, those
      retained in connection with the transactions contemplated by this Agreement)
      (collectively, the "Indemnities") from and against any and all actions, causes
      of action, suits, claims, losses, costs, penalties, fees, liabilities and
damages,
      and expenses in connection therewith (irrespective of whether any such
      Indemnitee is a party to the action for which indemnification hereunder is
      sought), and including, without limitation, reasonable attorneys' fees and
      disbursements (the “Indemnified Liabilities"), incurred by any Indemnitee as a
      result of, or arising out of, or relating to (i) any misrepresentation or breach
      of any representation or warranty made by the Company in the Note, or any other
      certificate, instrument or document contemplated hereby or thereby (ii) any
      breach of any covenant, agreement or obligation of the Company contained in
      the
      Note or any other certificate, instrument or document contemplated hereby or
      thereby, except insofar as any such misrepresentation, breach or any untrue
      statement, alleged untrue statement, omission or alleged omission is made in
      reliance upon and in conformity with written information furnished to the
      Company by, or on behalf of, the Holder or is based on illegal trading of the
      Common Stock by the Holder. To the extent that the foregoing undertaking by
      the
      Company may be unenforceable for any reason, the Company shall make the maximum
      contribution to the payment and satisfaction of each of the Indemnified
      Liabilities that is permissible under applicable law. The indemnity provisions
      contained herein shall be in addition to any cause of action or similar rights
      the Holder may have, and any liabilities the Holder may be subject
      to.

    

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

     

    Article
      15    Incentive
      Shares

    

    The
      Company shall issue two hundred and fifty thousand (250,000) shares of
      unregistered, restricted Common Stock to the Holder as an incentive for the
      investment (“Incentive Shares”). The Incentive Shares shall be issued and
      delivered immediately to the Holder and shall carry piggyback registration
      rights. In the event the Incentive Shares are not registered in the next
      registration statement, the Company shall pay to the Holder, as a penalty,
      two
      hundred and fifty thousand (250,000) additional shares of common stock for
      each
      time a registration statement is filed and the Shares are not included. The
      Holder at its sole discretion may waive such penalty. The Company's failure
      to
      issue the Incentive Shares constitutes an Event of Default and the Holder may
      elect to enforce the remedies outlined in Article 4. The Company's obligation
      to
      provide the Holder with the Incentive Shares, as set forth herein, shall survive
      the operation of the Agreement and any default on this obligation shall provide
      the Holder with all rights, remedies and default provisions set forth in this
      Note, or otherwise available by law. It shall be the Company’s responsibility to
      take all necessary actions and to bear all such costs to issue the Common Stock
      as provided herein, including the responsibility and cost for delivery of an
      opinion letter to the transfer agent, if so required. The Holder shall retire
      fifty thousand (50,000) Incentive Shares in the event the Company repays the
      full Face Amount of the Note within sixty (60) days from the Issuance
      Date.

    

    Article
      16    Use
      of
      Proceeds

    

    The
      Company shall use the funds for general corporate purposes. 

     

    Article
      17           
Waiver

    

    The
      Holder's delay or failure at any time or times hereafter to require strict
      performance by Company of any obligations, undertakings, agreements or covenants
      shall not waive, affect, or diminish any right of the Holder under this Note
      to
      demand strict compliance and performance herewith.
      Any waiver by the Holder of any Event of Default shall not waive or affect
      any
      other Event of Default, whether such Event of Default is prior or subsequent
      thereto and whether of the same or a different type. None of the undertakings,
      agreements and covenants of the Company contained in this Note, and no Event
      of
      Default, shall be deemed to have been waived by the Holder, nor may this Note
      be
      amended, changed or modified, unless such waiver, amendment, change or
      modification is evidenced by a separate instrument in writing specifying such
      waiver, amendment, change or modification and signed by the Holder.

    

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

     

    Article
      18    Senior
      Obligation

    

    The
      Company shall cause this Note to be senior in right of payment to all other
      current or future debt of the Company. The Company warrants that it has taken
      all necessary steps to subordinate its other obligations to the rights of the
      Holder in this Note.

    

    Article
      19    Transactions
      With Affiliates

    

    The
      Company shall not, and shall cause each of its Subsidiaries to not enter into,
      amend, modify or supplement, or permit any Subsidiary to enter into, amend,
      modify or supplement, any agreement, transaction, commitment or arrangement
      with
      any of its or any Subsidiary's officers, directors, persons who were officers
      or
      directors at any time during the previous two years, shareholders who
      beneficially own five percent (5%) or more of the Common Stock, or affiliates
      or
      with any individual related by blood, marriage or adoption to any such
      individual or with any entity in which any such entity or individual owns a
      five
      percent (5%) or more beneficial interest (each a “Related Party”) during the
      Lock Up Period.

    

    Article
      20    Equity
      Line Obligations

     

    At
      the
      request of the Holder, at any time after the Company's current effective
      registration statement for the Equity Line of Credit with Dutchess Private
      Equities, LP (File No: 333-135810), has five hundred thousand (500,000) shares
      or less remaining for issuance, the Company shall immediately execute a new
      Investment Agreement for an Equity Line of Credit under the same terms and
      conditions as the previous Equity Line, if so required. The Company shall
      immediately prepare and file a registration statement for the registration
      of
      shares as set forth in the new Investment Agreement. The Holder shall also
      retain the right to determine the date of the filing of such registration
      statement, but in no event sooner than twenty (20) days prior to a notice being
      given to the Company. The Company shall respond to any and all SEC comments
      or
      correspondence, whether written or oral, direct or indirect, formal or informal
      ("Comments"), within seven (7) business days of receipt by the Company of such
      Comments. The seven (7) business day period provided herein shall be extended
      as
      may be required by delays
      caused by Investor; and, provided
      further, that
      such
      seven (7) business day period shall be
      extended
      two (2) business days for responses to SEC staff accounting comments. The
      Company shall cause the Registration Statement relating to the Registrable
      Securities to become effective no later than two (2) business days after notice
      from the SEC that the Registration Statement has been cleared of all comments.
      Failure to do any action outlined in this Article will result in an Event of
      Default and the Holder may seek to take actions as outlined in Article
      4.

    

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    Article
      21    Security

    

    The
      Holder shall have full right to exercise the Security Agreements between the
      Company and the Holder of this date and between Sens and the Holder of this
      date.

    

    Article
      22    Miscellaneous

    

    Section
      22.1    This Note may be
      executed in two or more counterparts, all of which taken together shall
      constitute one instrument. Execution and delivery of this Note by exchange
      of
      facsimile copies bearing the facsimile signature of a party shall constitute
      a
      valid and binding execution and delivery of this Note by such party. Such
      facsimile copies shall constitute enforceable original documents.

    

    Section
      22.2    The
      Company warrants that the execution, delivery and performance of this Note
      by
      the Company and the consummation by the Company of the transactions contemplated
      hereby and thereby will not (i) result in a violation of the Articles of
      Incorporation, any Certificate of Designations, Preferences and Rights of any
      outstanding series of preferred stock of the Company or the By-laws or (ii)
      conflict with, or constitute a material default (or an event which with notice
      or lapse of time or both would become a material default) under, or give to
      others any rights of termination, amendment, acceleration or cancellation of,
      any material agreement, contract, indenture mortgage, indebtedness or instrument
      to which the Company or any of its Subsidiaries is a party, or result in a
      violation of any law, rule, regulation, order, judgment or decree, including
      United States federal and state securities laws and regulations and the rules
      and regulations of the principal securities exchange or trading market on which
      the Common Stock is traded or listed (the “Principal Market”), applicable to the
      Company or any of its Subsidiaries or by which any property or asset of the
      Company or any of its Subsidiaries is bound or affected. Neither the Company
      nor
      its Subsidiaries is in violation of any term of, or in default under, the
      Articles of Incorporation, any Certificate of Designations, Preferences and
      Rights of any outstanding series of preferred stock of the Company or the
      By-laws or their organizational charter or by-laws, respectively, or any
      contract, agreement, mortgage, indebtedness, indenture, instrument, judgment,
      decree or order or any statute, rule or regulation applicable to the Company
      or
      its Subsidiaries, except for possible conflicts, defaults, terminations,
      amendments, accelerations, cancellations and violations that would not
      individually
      or in
      the aggregate have a Material Adverse Effect as defined below. The business
      of
      the Company and its Subsidiaries is not being conducted, and shall not be
      conducted, in violation of any law, statute, ordinance, rule, order or
      regulation of any governmental authority or agency, regulatory or
      self-regulatory agency, or court, except for possible violations the sanctions
      for which either individually or in the aggregate would not have a Material
      Adverse Effect. The Company is not required to obtain any consent,
      authorization, permit or order of, or make any filing or registration (except
      the filing of a registration statement) with, any court, governmental authority
      or agency, regulatory or self-regulatory agency or other third party in order
      for it to execute, deliver or perform any of its obligations under, or
      contemplated by, this Note in accordance with the terms hereof or thereof.
      All
      consents, authorizations, permits, orders, filings and registrations which
      the
      Company is required to obtain pursuant to the preceding sentence have been
      obtained or effected on or prior to the date hereof and are in full force and
      effect as of the date hereof. The Company and its Subsidiaries are unaware
      of
      any facts or circumstances which
      might give rise to any of the foregoing. The Company is not, and will not be,
      in
      violation of the listing requirements of the Principal Market as in effect
      on
      the date hereof and on each of the Closing Dates and is not aware of any facts
      which would lead to delisting of the Common Stock by the Principal
      Market.

    

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    Section
      22.3    The
      Company and its “Subsidiaries” (which for purposes of this Note means any entity
      in which the Company, directly or indirectly, owns capital stock or holds an
      equity or similar interest) are corporations duly organized and validly existing
      in good standing under the laws of the respective jurisdictions of their
      incorporation, and have the requisite corporate power and authorization to
      own
      their properties and to carry on their business as
      now
      being conducted. Both the Company and its Subsidiaries are duly qualified to
      do
      business
      and are
      in good standing in every jurisdiction in which their ownership of property
      or
      the nature of the business conducted by them makes such qualification necessary,
      except to the extent that the failure to be so qualified or be in good standing
      would not have a Material Adverse Effect. As used in this Note, “Material
      Adverse Effect” means any material adverse effect on the business, properties,
      assets, operations, results of operations, financial condition or prospects
      of
      the Company and its Subsidiaries, if any, taken as a whole, or on the
      transactions contemplated hereby or by the agreements and instruments to be
      entered into in connection herewith, or on the authority or ability of the
      Company to perform its obligations under the Note.

    

    Section
      22.4    Authorization;
      Enforcement; Compliance with Other Instruments. (i) The Company has the
      requisite corporate power and authority to enter into and perform its
      obligations under this Note, and to issue this Note and Incentive Shares in
      accordance with the terms hereof and thereof, (ii) the execution and delivery
      of
      this Note by the Company and the consummation by it of the transactions
      contemplated hereby and thereby, including without limitation the reservation
      for issuance and the issuance of the Incentive Shares pursuant to this Note,
      have been duly and validly authorized by the Company's Board of Directors and
      no
      further consent or authorization is required by the Company, its Board of
      Directors, or its shareholders, (iii) this Note has been duly and validly
      executed and delivered by the Company, and (iv) the Note constitutes the valid
      and binding obligations of the Company enforceable against the Company in
      accordance with their terms, except as such enforceability may be limited by
      general principles of equity or applicable bankruptcy, insolvency,
      reorganization, moratorium, liquidation or similar laws relating to, or
      affecting generally, the enforcement of creditors' rights and
      remedies.

    

    Section
      22.5    The
      execution and delivery of this Note shall not alter the prior written agreements
      between the Company and the Holder. This Note is the FINAL AGREEMENT between
      the
      Company and the Holder with respect to the terms and conditions set forth
      herein, and, the terms of this Note may not be contradicted by evidence of
      prior, contemporaneous, or subsequent oral agreements of the Parties. The
      execution and delivery of this Note is done in conjunction with the execution
      of
      the Security Agreement, as defined in Article 21.

    

    Section
      22.6    There
      are
      no disagreements of any kind presently existing, or reasonably anticipated
      by
      the Company to arise, between the Company and the accountants, auditors
      and lawyers formerly or presently used by the Company, including but not limited
      to disputes or conflicts over payment owed to such accountants, auditors or
      lawyers.

    

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

       

    

    Section
      22.7    All
      representations made by or relating to the Company of a historical nature and
      all undertakings described herein shall relate and refer to the Company, its
      predecessors, and the Subsidiaries.

    

    Section
      22.8    The
      only officer, director, employee and consultant stock option or stock incentive
      plan currently in effect or contemplated by the Company has been submitted
      to
      the Holder or is described or within past filings with the United States
      Securities and Exchange Commission. The Company aggress not to initiate or
      institute any such plan or to issue stock options.

    

    Section
      22.9    The
      Company acknowledges that its failure to timely meet any of its obligations
      hereunder, including, but without limitation, its obligations to make Payments,
      deliver shares and, as necessary, to register and maintain sufficient number
      of
      Shares, will cause the Holder to suffer irreparable harm and that the actual
      damage to the Holder will be difficult to ascertain. Accordingly, the parties
      agree that it is appropriate to include in this Note a provision for liquidated
      damages. The parties acknowledge and agree that the liquidated damages provision
      set forth in this section represents the parties’ good faith effort to quantify
      such damages and, as such, agree that the form and amount of such liquidated
      damages are reasonable and do not constitute a penalty. The payment of
      liquidated damages shall not relieve the Company from its obligations to deliver
      the Common Stock pursuant to the terms of this Note.

    

    Section
      22.10   In the
      event that any rules, regulations, interpretations or comments from the SEC
      or
      other governing body, hinder any operation of this Agreement or the underlying
      Transaction Documents dated September 12, 2005 the Parties hereby agree that
      those specific terms and conditions shall be negotiated on similar terms within
      five (5) business days, and shall not alter, diminish or affect any other
      rights, duties or covenants in this Note and that all terms and conditions
      will
      remain in full force and effect except as is necessary to make those specific
      terms and conditions comply with applicable rule, regulation, interpretation
      or
      Comment. Failure for the Company to agree to such new terms, shall constitute
      and Event of Default herein, as outlined in Article 4, and the Holder may elect
      to take actions as outlined in the Note.

     

     

    *
      * *

     

     

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      OF PAGE LEFT BLANK INTENTIONALLY]

    

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    Any
      misrepresentations shall be considered a breach of contract and an Event of
      Default under this Agreement and the Holder may seek to take actions as
      described under Article 4 of this Agreement.

    

    IN
      WITNESS WHEREOF, the Company has duly executed this Note as of the date
first
      written
      above.

     

    SEAWRIGHT
      HOLDINGS, INC.

    

    

    By:                       
      /s/ Joel P.
      Sens                                   

    Name:   
      Joel P. Sens

    Title:    
      Chief Executive Officer

    

    DUTCHESS
      PRIVATE EQUITIES FUND, L.P. 

    BY
      ITS
      GENERAL PARTNER DUTCHESS 

    CAPITAL
      MANAGEMENT, LLC

    

    

    By:                /s/
      Douglas H.
      Leighton                         
 

    Name:
      Douglas H. Leighton Title: A Managing Member

     

     

     

    16Security Agreement

    Exhibit
      10.3

    SECURITY
      AGREEMENT

    

    SECURITY
      AGREEMENT (this “Agreement”), dated as of December 6, 2006, by and among
      Seawright Holdings, Inc., a Delaware corporation (“Company”), and Dutchess
      Private Equities Fund, LP, a Delaware Limited partnership, as the secured
      parties signatory hereto and their
      respective endorsees, transferees and assigns (collectively, the “Secured
      Party”) (sometimes
      hereinafter the Company and the Secured Party are collectively referred to
      as
      the “parties”).

    

    W
      I T N E
      S S E T H:

    

    WHEREAS,
      pursuant to Note Agreement, dated the date hereof between Company and
the
      Secured Party (the “Note Agreement”), the Company has agreed to issue to the
      Secured Party
      and the
      Secured Party has agreed to purchase from Company certain of Company’s 0%
      Secured Note, due one year from the date of issue (the “Note”)

    

    WHEREAS,
      in order to induce the Secured Party to purchase the Note, the Company has
      agreed to execute and deliver to the Secured Party this Agreement for the
      benefit of the Secured Party and to grant to it a first priority security
      interest in certain property of Company to secure the prompt payment,
      performance and discharge in full of all of Company’s obligations under the
      Note.

    

    WHEREAS,
      the Secured Party recognizes that they shall not be first lien on those
      properties with an outstanding mortgage as of this date, and with respect to
      those properties.

    

    NOW,
      THEREFORE, in consideration of the agreements herein contained and for other
      good and valuable consideration, the receipt and sufficiency of which is hereby
      acknowledged, the parties hereto hereby agree as follows:

    

    1.
      Certain
      Definitions. As used in this Agreement, the following terms shall have the
      meanings set forth in this Section 1. Terms used but not otherwise defined
      in
      this Agreement that are defined in Article 9 of the UCC (such as “general
      intangibles” and “proceeds”) shall have the respective meanings given such terms
      in Article 9 of the UCC.

    (a)
      “Collateral” means the collateral in which the Secured Party is granted a
      security interest by this Agreement and which shall include the following,
      whether presently owned or existing or hereafter acquired or coming into
      existence, and all
      additions and accessions thereto and all substitutions and replacements thereof,
      and all
      proceeds, products and accounts thereof, including, without limitation, all
      proceeds from the sale or transfer of the Collateral and of insurance covering
      the same and of any tort claims in connection therewith:

    

    (i)
      All
      Goods of the Company, including, without limitation, all machinery, equipment,
      computers, motor vehicles, trucks, tanks, boats, ships, appliances, furniture,
      special and general tools, fixtures, test and quality control devices and other
      equipment of every kind and nature and wherever situated, together with all
      documents of title and documents

     

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    

    representing
      the same, all additions and accessions thereto, replacements therefor, all
      parts
      therefor, and all substitutes for any of the foregoing and all other items
      used
      and useful in connection with the Company’s businesses and all improvements
      thereto (collectively, the “Equipment”); and

    

    (ii)  All
      Inventory, land or buildings of the Company including the property located
      at
      Route 262 (Woodrow Wilson Parkway), Plat of A Tract Land, Staunton, Virginia
      and
      all property and mineral rights associated with the Seawright Springs, LLC
      property.

    

    (iii)  All
      of
      the Company’s contract rights and general intangibles, including, without
      limitation, all partnership interests, stock or other securities, licenses,
      distribution and other agreements, computer software development rights, leases,
      franchises, customer lists, quality control procedures, grants and rights,
      goodwill, trademarks, service marks, trade styles, trade names, patents, patent
      applications, copyrights, deposit accounts, and income tax refunds
      (collectively, the “General Intangibles”); and

    

    (iv)  All
      Receivables of the Company including all insurance proceeds, and rights to
      refunds or indemnification whatsoever owing, together with all instruments,
      all
      documents of title representing any of the foregoing, all rights in any
      merchandising, goods, equipment, motor vehicles and trucks which any of the
      same
      may represent, and all right, title, security and guaranties with respect to
      each Receivable, including any right of stoppage in transit;
      and

    

    (v)  All
      of
      the Company’s documents, instruments and chattel paper, files, records, books of
      account, business papers, computer programs and the products and proceeds of
      all
      of the foregoing Collateral set forth in clauses (i)-(iv)
      above.

    

    (b)  “Company”
      shall mean, collectively, Company and all of the subsidiaries of Company, a
      list
      of which is contained in Schedule A,
      attached
      hereto.

    

    (c)  “Obligations”
      means all of the Company’s obligations under this Agreement and the Note, in
      each case, whether now or hereafter existing, voluntary or involuntary, direct
      or indirect, absolute or contingent, liquidated or unliquidated, whether or
      not
      jointly owed with others, and whether or not from time to time decreased or
      extinguished and later decreased, created or incurred, and all or any portion
      of
      such obligations or liabilities that are paid, to the extent all or any part
      of
      such payment is

     

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    avoided
      or recovered directly or indirectly from the Secured Party as a preference,
      fraudulent transfer or otherwise as such obligations may be amended,
      supplemented, converted, extended or modified from time to time.

     

    (d)  “UCC”
      means the Uniform Commercial Code, as currently in effect in the Commonwealth
      of
      Massachusetts.

     

    2.   Grant of Security Interest.
      As an
      inducement for the Secured Party to purchase the Note and to secure the complete
      and timely payment, performance and discharge in full, as the case may be,
      of
      all of the Obligations, the Company hereby, unconditionally and irrevocably,
      pledges, grants and hypothecates to the Secured Party, a continuing security
      interest in, a continuing first lien upon, an unqualified right to possession
      and disposition of and a right of set-off against, in each case to the fullest
      extent permitted by law, all of the Company’s right, title and interest of
      whatsoever kind and nature in and to the Collateral (the “Security
      Interest”).

     

    3.   Representations, Warranties, Covenants and Agreements of the
      Company. The Company represents and warrants to, and covenants and agrees
      with, the Secured Party as follows:

     

    (a)  The
      Company has the requisite corporate power and authority to enter into this
      Agreement and otherwise to carry out its obligations thereunder. The execution,
      delivery and performance by the Company of this Agreement and the filings
      contemplated therein have been duly authorized by all necessary action on the
      part of the Company and no further action is required by the Company. This
      Agreement constitutes a legal, valid and binding obligation of the Company
      enforceable in accordance with its terms,
      except as enforceability may be limited by bankruptcy, insolvency,
      reorganization,
      moratorium or similar laws affecting the enforcement of creditor’s rights
      generally.

     

    (b)  The
      Company represents and warrants that it has no place of business or offices
      where its respective books of account and records are kept (other than
      temporarily at the offices of its attorneys or accountants) or places where
      Collateral is stored or located, except as set forth on Schedule A
      attached
      hereto;

     

    (c)  The
      Company is the sole owner of the Collateral, free and clear of any liens,
      security interests, encumbrances, rights or claims, and is fully authorized
      to
      grant the Security Interest in and to pledge the Collateral. There is not on
      file in any governmental or regulatory authority, agency or recording office
      an
      effective financing statement, security agreement, license or transfer or any
      notice of any of the foregoing (other than those that have been filed in favor
      of the Secured Party pursuant to this Agreement) covering or affecting any
      of
      the Collateral. So long as this Agreement shall

     

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    

    be
      in
      effect, the Company shall not execute and shall not knowingly permit to be
      on
      file in any such office or agency any such financing statement or other document
      or instrument (except to the extent filed or recorded in favor of the Secured
      Party pursuant to the terms of this Agreement).

    

    (d)  No
      part
      of the Collateral has been judged invalid or unenforceable. No written claim
      has
      been received that any Collateral or the Company’s use of any Collateral
      violates the rights of any third party. There has been no adverse decision
      to
      the Company’s claim of ownership rights in or exclusive rights to use the
      Collateral in any jurisdiction or to the Company’s right to keep and maintain
      such Collateral in full force and effect, and there is no proceeding involving
      said rights pending or, to the best knowledge of the Company, threatened before
      any court, judicial body, administrative or regulatory agency, arbitrator or
      other governmental authority.

    

    (e)  The
      Company shall at all times maintain its books of account and records relating
      to
      the Collateral at its principal place of business and its Collateral at the
      locations set forth on Schedule A
      attached
      hereto and may not relocate such books of account and records or tangible
      Collateral unless it delivers to the Secured Party at least 30 days prior to
      such relocation (i) written notice of such relocation and the new location
      thereof (which must be within the United States) and (ii) evidence that
      appropriate financing statements and other necessary documents have been filed
      and recorded and other steps have been taken to perfect the Security Interest
      to
      create in favor of the Secured Party valid, perfected and continuing first
      priority liens in the Collateral.

    

    (f)  This
      Agreement creates in favor of the Secured Party a valid security interest in
      the
      Collateral securing the payment and performance of the Obligations and, upon
      making the filings described in the immediately following sentence, a perfected
      first priority security interest in such Collateral. Except for the filing
      of
      financing statements on Form-1 under the UCC with the jurisdictions indicated
      on
Schedule B,
      attached
      hereto, no authorization or approval of or filing with or notice to any
      governmental authority or regulatory body is required either (i) for the grant
      by the Company of, or the effectiveness of, the Security Interest granted hereby
      or for the execution, delivery and performance of this Agreement by the Company
      or (ii) for the perfection of or exercise by the Secured Party of its rights
      and
      remedies hereunder.

    

    (g)  On
      the
      date of execution of this Agreement, the Secured Party shall file in the proper
      jurisdictions, one or more executed UCC financing statements on Form-1 with
      respect to the Security Interest for filing with the jurisdictions indicated
      on
Schedule B,
      attached
      hereto and in such other jurisdictions as may be requested by the Secured
      Party.

     

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    

    (h)  The
      execution, delivery and performance of this Agreement does not
      conflict with or cause a breach or default, or an event that with or without
      the
      passage
      of time
      or notice, shall constitute a breach or default, under any agreement to which
      the Company is a party or by which the Company is bound. No consent (including,
      without limitation, from stock holders or creditors of the Company) is required
      for the Company to enter into and perform its obligations
      hereunder.

     

    (i)  The
      Company shall at all times maintain the liens and Security Interest provided
      for
      hereunder as valid and perfected first priority liens and security interests
      in
      the Collateral in favor of the Secured Party until this Agreement and the
      Security Interest hereunder shall terminate pursuant to Section 11. The Company
      hereby agrees to defend the same against any and all persons. The Company shall
      safeguard and protect all Collateral for the account of the Secured Party.
      At
      the request of the Secured Party,
      the Company will sign and deliver to the Secured Party at any time or from
      time
      to
      time one
      or more financing statements pursuant to the UCC (or any other applicable
statute)
      in form reasonably satisfactory to the Secured Party and will pay the cost
      of
      filing
      the same
      in all public offices wherever filing is, or is deemed by the Secured Party
      to
      be, necessary or desirable to effect the rights and obligations provided for
      herein. Without limiting the generality of the foregoing, the Company shall
      pay
      all fees, taxes and other amounts necessary to maintain the Collateral and
      the
      Security Interest hereunder, and the Company shall obtain and furnish to the
      Secured Party from time to time, upon demand, such releases and/or
      subordinations of claims and liens which may be required to maintain the
      priority of the Security Interest hereunder.

     

    (j)  The
      Company will not transfer, pledge, hypothecate, encumber, license, sell or
      otherwise dispose of any of the Collateral without the prior written consent
      of
      the Secured Party, unless within the normal course of business.

     

    (k)  The
      Company shall keep and preserve its Equipment, Inventory and other tangible
      Collateral in good condition, repair and order and shall not operate or locate
      any such Collateral (or cause to be operated or located) in any area excluded
      from insurance coverage.

     

    (l)  The
      Company shall, within ten (10) days of obtaining knowledge thereof, advise
      the
      Secured Party promptly, in sufficient detail, of any substantial change
in
      the
      Collateral, and of the occurrence of any event which would have a material
      adverse
      effect
      on the value of the Collateral or on the Secured Party’s security interest
      therein.

     

    (m)  The
      Company shall promptly execute and deliver to the Secured Party such further
      deeds, mortgages, assignments, security agreements, financing statements or
      other instruments, documents, certificates and assurances and take such further
      action as the Secured Party may from time to time request and may in its
      sole

     

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    

    discretion
      deem necessary to perfect, protect or enforce its security interest in the
      Collateral including, without limitation, the execution and delivery of a
      separate security agreement with respect to the Company’s intellectual property
(“Intellectual Property Security Agreement”) in which the Secured Party
      has been granted a security interest hereunder, substantially in a form
      acceptable to the Secured Party, which Intellectual Property Security Agreement,
      other than as stated therein, shall be subject to all of the terms and
      conditions hereof.

    

    (n)  The
      Company shall permit the Secured Party and its representatives and agents to
      inspect the Collateral at any time, and to make copies of records pertaining
      to
      the Collateral as may be requested by the Secured Party from time to
      time.

    

    (o)  The
      Company will take all steps reasonably necessary to diligently pursue and seek
      to preserve, enforce and collect any rights, claims, causes of action and
      accounts receivable in respect of the Collateral.

    

    (p)  The
      Company shall promptly notify the Secured Party in sufficient detail upon
      becoming aware of any attachment, garnishment, execution or other legal process
      levied against any Collateral and of any other information received by the
      Company that may materially affect the value of the Collateral, the Security
      Interest or the rights and remedies of the Secured Party
      hereunder.

    

    (q)  All
      information heretofore, herein or hereafter supplied to the Secured Party by
      or
      on behalf of the Company with respect to the Collateral is accurate and complete
      in all material respects as of the date furnished.

    

    (r)  Schedule A
      attached
      hereto contains a list of all of the subsidiaries of Company.

    

    4. Defaults.
      The
      following events shall be “Events of
      Default”:

    

    (a)  The
      occurrence of an Event of Default (as defined in the Note Agreement) under
      the
      Note Agreement, or breach of the terms of the Note Agreement.

    

    (b)  Any
      representation or warranty of the Company in this Agreement shall prove to
      have
      been incorrect in any material respect when made;

     

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    

    (c)  The
      failure by the Company to observe or perform any of its obligations hereunder
      or
      in the Intellectual Property Security Agreement for ten (10) days after
      receipt
      by the Company of notice of such failure from the Secured Party.

     

    5.   Duty To Hold In Trust.
      Upon the
      occurrence of any Event of Default and during the continuance of any Event
      of
      Default for a period of five
      (5)
      days,
      the Company shall, upon receipt by it of any revenue, income or other sums
      subject to the Security Interest, whether payable pursuant to the Note or
      otherwise, or of any check, draft,
      note,
      trade acceptance or other instrument evidencing an obligation to pay any such
      sum, hold the same in trust for the Secured Party and shall forthwith endorse
      and transfer any such sums or instruments, or both, to the Secured Party for
      application to the satisfaction of the Obligations.

     

    6.   Rights and Remedies Upon Default.
      Upon the
      occurrence of any Event of Default and during the continuance of any Event
      of
      Default for a period of five
      (5)
      days,
      the Secured Party shall have the right to exercise all of the remedies conferred
      hereunder and under the Note, and the Secured Party shall have all the rights
      and remedies of a secured party under the UCC and/or any other applicable law
      (including the Uniform Commercial Code of any jurisdiction in which any
      Collateral is then located). Without limitation, the Secured Party shall have
      the following rights and powers:

     

    (a)  The
      Secured Party shall have the right to take possession of the Collateral and,
      for
      that purpose, enter, with the aid and assistance of any person, any premises
      where the Collateral, or any part thereof, is or may be placed and remove the
      same, and the Company shall assemble the Collateral and make it available to
      the
      Secured Party at places which the Secured Party shall reasonably select, whether
      at the Company’s
      premises
      or elsewhere, and make available to the Secured Party, without rent, all of
      the
Company’s
      respective
      premises and facilities for the purpose of the Secured Party taking possession
      of, removing or putting the Collateral in saleable or disposable
      form.

     

    (b)  The
      Secured Party shall have the right to operate the business of the Company using
      the Collateral and shall have the right to assign, sell, lease or otherwise
      dispose of and deliver all or any part of the Collateral, at public or private
      sale or otherwise, either with or without special conditions or stipulations,
      for cash or on credit or for future delivery, in such parcel or parcels and
      at
      such time or times and at such place or places, and upon such terms and
      conditions as the Secured Party may deem commercially reasonable, all without
      (except as shall be required by applicable statute and cannot be waived)
      advertisement or demand upon or notice to the Company or right of redemption of
      the Company, which are hereby expressly waived. Upon each such sale, lease,
      assignment or other transfer of Collateral, the Secured Party may, unless
      prohibited by applicable law which cannot be waived, purchase all or any part
      of
      the

     

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    

    Collateral
      being sold, free from and discharged of all trusts, claims, right of redemption
      and equities of the Company, which are hereby waived and released.

    

    

    (c)
      The
      Secured Party shall have the right to require the Company to use
      any
      and all commercially reasonable means to draw on any equity in the
      Collateral,
      from a
      banking institution or other, in order to repay the Note. The Company shall
      be
      required to use the assets, as detailed on the balance sheet, in order to obtain
      additional funding to repay the Secured Party of all Obligations.

     

    7.   Applications of Proceeds.
      The
      proceeds of any such sale, lease or other disposition of the Collateral
      hereunder shall be applied first, to the expenses of retaking, holding, storing,
      processing and preparing for sale, selling, and the like (including,
without
      limitation, any taxes, fees and other costs incurred in connection therewith)
      of
      the
      Collateral, to the reasonable attorneys’ fees and expenses incurred by the
      Secured Party in enforcing its rights hereunder and in connection with
      collecting, storing and disposing of the Collateral, and then to satisfaction
      of
      the Obligations, and to the payment of any other amounts required by applicable
      law, after which the Secured Party shall pay to the Company any surplus
      proceeds. If, upon the sale, license or other disposition of the Collateral,
      the
      proceeds thereof are insufficient to pay all amounts to which the Secured Party
      is legally entitled, the Company will be liable for the deficiency, together
      with interest thereon, at the rate of 18% per annum (the “Default Rate”), and
      the reasonable fees of any attorneys employed by the Secured Party to collect
      such deficiency. To the extent permitted by applicable law, the Company waives
      all claims, damages and demands against the Secured Party arising out of the
      repossession, removal, retention or sale of the Collateral, unless due to the
      gross negligence or willful misconduct of the Secured Party.

    

    8.   Costs and Expenses.
      The
      Company agrees to pay all out-of-pocket fees, costs and expenses incurred in
      connection with any filing required hereunder, including without limitation,
      any
      financing statements, continuation statements, partial releases and/or
      termination statements related thereto or any expenses of any searches
      reasonably required by the Secured Party. The Company shall also pay all other
      claims and charges which in the reasonable opinion of the Secured Party might
      prejudice, imperil or otherwise affect the Collateral or the Security Interest
      therein. The Company will also, upon demand, pay to the Secured Party the amount
      of any and all reasonable expenses, including the reasonable fees and expenses
      of its counsel and of any experts and agents, which the Secured Party may incur
      in connection with (i) the enforcement of this Agreement, (ii) the custody
      or
      preservation of, or the sale of, collection from, or other realization upon,
      any
      of the Collateral, or (iii) the exercise or enforcement of any of the rights
      of
      the Secured Party under the Note. Until so paid, any fees payable hereunder
      shall be added to the principal amount of the Note and shall bear interest
      at
      the Default Rate.

     

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    9.   Responsibility for Collateral.
      The
      Company assumes all liabilities and responsibility in connection with all
      Collateral, and the obligations of the Company hereunder or under the
      Transaction Documents shall in no way be affected or diminished by reason of
      the
      loss, destruction, damage or theft of any of the Collateral or its
      unavailability for any reason.

     

    10.   Security Interest Absolute.
      All
      rights of the Secured Party and all Obligations of the Company hereunder, shall
      be absolute and unconditional, irrespective of: (a) any lack of validity or
      enforceability of this Agreement, the Note, the Equity Line or any agreement
      entered into in connection with the foregoing, or any portion hereof or thereof;
      (b) any change in the time, manner or place of payment or performance of, or
      in
      any other term of, all or any of the Obligations, or any other amendment or
      waiver of or any consent to any departure from the Note, the Equity Line or
      any
      other agreement entered into in connection with the foregoing; (c) any exchange,
      release or nonperfection of any of the Collateral, or any release or amendment
      or waiver of or consent to departure from any other collateral for, or any
      guaranty, or any other security, for all or any of the Obligations; (d) any
      action by the Secured Party to obtain, adjust, settle and cancel in its sole
      discretion any insurance claims or matters made or arising in connection with
      the Collateral; or (e) any other circumstance which might otherwise constitute
      any legal or equitable defense available to the Company, or a discharge of
      all
      or any part of the Security Interest granted hereby. Until the Obligations
      shall
      have been paid and performed in full, the rights of the Secured Party shall
      continue even if the Obligations are barred for any reason, including, without
      limitation, the running of the statute of limitations or bankruptcy. The Company
      expressly waives presentment, protest, notice of protest, demand, notice of
      nonpayment and demand for performance. In the event that at any time any
      transfer of any Collateral or any payment received by the Secured Party
      hereunder shall be deemed by final order of a court of competent jurisdiction
      to
      have been a voidable preference or fraudulent conveyance under the bankruptcy
      or
      insolvency laws of the United States, or shall be deemed to be otherwise due
      to
      any party other than the Secured Party, then, in any such event, the Company’s
      obligations hereunder shall survive cancellation of this Agreement, and shall
      not be discharged or satisfied by any prior payment thereof and/or cancellation
      of this Agreement, but shall remain a valid and binding obligation enforceable
      in accordance with the terms and provisions hereof. The Company waives all
      right
      to require the Secured Party to proceed against any other person or to apply
      any
      Collateral which the Secured Party may hold at any time, or to marshal assets,
      or to pursue any other remedy. The Company waives any defense arising by reason
      of the application of the statute of limitations to any obligation secured
      hereby.

     

    11.   Term of Agreement.
      This
      Agreement and the Security Interest shall terminate on the date on which all
      payments under the Note have been made in full and all other Obligations of
      the
      Company have been paid or discharged. Upon such termination, the Secured Party,
      at the request and at the expense of the Company, will join in executing any
      termination statement with respect to any financing statement executed and
      filed
      pursuant to this Agreement.

     

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    

    12. Power of Attorney; Further Assurances.

     

    (a)  The
      Company authorizes the Secured Party, and does hereby make, constitute and
      appoint it, and its respective officers, agents, successors or assigns with
      full
      power of substitution, as the Company’s true and lawful attorney-in-fact, with
      power, in its own name or in the name of the Company, to, after the occurrence
      and during the continuance of an Event of Default (i) endorse any notes, checks,
      drafts, money orders, or other instruments of payment (including payments
      payable under or in respect of any policy of insurance) in respect of the
      Collateral that may come into possession of the Secured Party; (ii) to sign
      and
      endorse any UCC financing statement or any invoice, freight or express bill,
      bill of lading, storage or warehouse receipts, drafts against debtors,
      assignments, verifications and notices in connection with accounts, and other
      documents relating to the Collateral; (iii) to pay or discharge taxes, liens,
      security interests or other encumbrances at any time levied or placed on or
      threatened against the Collateral;
      (iv) to demand, collect, receipt for, compromise, settle and sue for monies
      due
      in
      respect of the Collateral; and (v) generally, to do, at the option of the
      Secured Party, and at the Company’s expense, at any time, or from time to time,
      all acts and things which the Secured Party deems necessary to protect, preserve
      and realize upon the Collateral and the Security Interest granted therein in
      order to effect the intent of this Agreement, the Note, all as fully and
      effectually as the Company might or could do; and the
      Company hereby ratifies all that said attorney shall lawfully do or cause to
      be
      done by
      virtue
      hereof. This power of attorney is coupled with an interest and shall be
      irrevocable for the term of this Agreement and thereafter as long as any of
      the
      Obligations shall be outstanding.

     

    (b)  On
      a
      continuing basis, the Company will make, execute, acknowledge, deliver, file
      and
      record, as the case may be, in the proper filing and recording places in any
      jurisdiction, including, without limitation, the jurisdictions indicated
      on Schedule B,
      attached
      hereto, all such instruments, and take all such action as
      may
      reasonably be deemed necessary or advisable, or as reasonably requested by
      the
      Secured Party, to perfect the Security Interest granted hereunder and otherwise
      to carry out the intent and purposes of this Agreement, or for assuring and
      confirming to the Secured Party the grant or perfection of a security interest
      in all the Collateral.

     

    (c)  The
      Company hereby irrevocably appoints the Secured Party as the Company’s
      attorney-in-fact, with full authority in the place and stead of the Company
      and
      in the name of the Company, from time to time in the Secured Party’s discretion,
      to take any action and to execute any instrument which the Secured Party may
      deem necessary
      or advisable to accomplish the purposes of this Agreement, including the
      filing,
      in its
      sole discretion, of one or more financing or continuation statements and
      amendments thereto, relative to any of the Collateral without the signature
      of
      the Company where permitted by law.

     

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    

    13.   Notices.
      All
      notices, requests, demands and other communications hereunder shall be in
      writing, with copies to all the other parties hereto, and shall be deemed
      to
      have been duly given when (i) if delivered by hand, upon receipt, (ii) if sent
      by
      facsimile, upon receipt of proof of sending thereof, (iii) if sent by nationally
      recognized overnight delivery service (receipt requested), the next business
      day
      or (iv) if mailed by first-class registered or certified mail, return receipt
      requested, postage prepaid, four days after posting in the U.S. mails, in each
      case if delivered to the following addresses:

    

    

    If
      to the
      Company:              
      Joel Sens

    Seawright
      Holdings

    600
      Cameron St

    Alexandria,
      VA 22314 Telephone: 703-340-1629 Facsimile: 703-576-9888

     

    If
      to the
      Secured Party:       Dutchess
      Capital Management, LLC

    Douglas
      Leighton

    50
      Commonwealth Ave, Suite 2

    Boston,
      MA 02116 (617) 301-4700 (617) 249-0947

    

    14.   Other
      Security. To the extent that the Obligations are now or hereafter secured by
      property other than the Collateral or by the guarantee, endorsement or property
      of any other person, firm, corporation or other entity, then the Secured Party
      shall have the right, in its sole discretion, to pursue, relinquish,
      subordinate, modify or take any other action with respect thereto, without
      in
      any way modifying or affecting any of the Secured Party’s rights and remedies
      hereunder.

    

                    15.  Miscellaneous.

    

    (a)  No
      course
      of dealing between the Company and the Secured Party, nor any failure to
      exercise, nor any delay in exercising, on the part of the Secured Party, any
      right, power or privilege hereunder or under the Note shall operate as a waiver
      thereof; nor shall any single or partial exercise of any right, power or
      privilege hereunder or thereunder preclude any other or further exercise thereof
      or the exercise of any other right, power or privilege.

    

    (b)  All
      of
      the rights and remedies of the Secured Party with respect to the Collateral,
      whether established hereby or by the Note or by any other
      agreements,

     

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    

    instruments
      or documents or by law shall be cumulative and may be exercised singly or
      concurrently.

     

    (c)  This
      Agreement constitutes the entire agreement of the parties with respect to the
      subject matter hereof and is intended to supersede all prior negotiations,
      understandings and agreements with respect to the subject matter hereof. Except
      as specifically set forth in this Agreement, no provision of this Agreement
      may
      be modified or amended except by a written agreement specifically referring
      to
      this Agreement and signed by the parties hereto.

     

    (d)  In
      the
      event that any provision of this Agreement is held to be invalid, prohibited
      or
      unenforceable in any jurisdiction for any reason, unless such provision is
      narrowed by judicial construction, this Agreement shall, as to such
      jurisdiction, be construed as if such invalid, prohibited or unenforceable
      provision had been more narrowly drawn so as not to be invalid, prohibited
      or
      unenforceable. If, notwithstanding the foregoing, any provision of this
      Agreement is held to be invalid, prohibited or unenforceable in any
      jurisdiction, such provision, as to such jurisdiction, shall be ineffective
      to
      the extent of such invalidity, prohibition or unenforceability without
      invalidating the remaining portion of such provision or the other provisions
      of
      this Agreement and without affecting the validity or enforceability of such
      provision or the other provisions of this Agreement in any other
      jurisdiction.

     

    (e)  No
      waiver
      of any breach or default or any right under this Agreement shall be considered
      valid unless in writing and signed by the party giving such waiver, and no
      such
      waiver shall be deemed a waiver of any subsequent breach or default or right,
      whether of the same or similar nature or otherwise.

     

    (f)  This
      Agreement shall be binding upon and inure to the benefit of each party hereto
      and its successors and assigns.

     

    (g)  Each
      party shall take such further action and execute and deliver such further
      documents as may be necessary or appropriate in order to carry out the
      provisions and purposes of this Agreement.

     

    (h)  The
      validity, terms, performance and enforcement of this Agreement shall be governed
      and construed by the provisions hereof and in accordance with the laws of the
      Commonwealth of Massachusetts applicable to agreements that are negotiated,
      executed, delivered and performed solely in the Commonwealth of
      Massachusetts.

     

     

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    

    (i)  All
      disputes arising under this agreement shall be governed by and interpreted
      in
      accordance with the laws of the Commonwealth of Massachusetts, without regard
      to
      principles of conflict
      of
      laws.
      The parties to this agreement will submit all disputes arising under this
      agreement to arbitration in Boston, Massachusetts before a single arbitrator
      of
      the American Arbitration Association (“AAA”). The arbitrator shall be
      selected by application of the rules of the AAA, or by mutual agreement of
      the
      parties,
      except
      that such arbitrator shall be an attorney admitted to practice law in the
      Commonwealth of Massachusetts. No party to this agreement will challenge the
      jurisdiction or venue provisions as provided in this section.

     

    (j)  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 one and the same Agreement. In the event that any signature
      is
delivered
      by facsimile transmission, such signature shall create a valid binding
      obligation
      of the
      party executing (or on whose behalf such signature is executed) the same with
      the same force and effect as if such facsimile signature were the original
      thereof.

     

    [REMAINDER
      OF PAGE INTENTIONALLY LEFT BLANK]

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

    

    

      

          IN
        WITNESS
        WHEREOF, the parties hereto have caused this Security Agreement to be duly
        executed on the day and year first
        above
        written.

       

      

        
          	
                   

                	
                  SEAWRIGHT
                    HOLDINGS, INC.

                
	 	 
	 	 
	
                   

                	
                  By
                    ____________________________

                
	
                   

                	
                  Name:
                    Joel P. Sens

                
	
                   

                	
                  Title:
                    Chief Executive Officer

                
	 	 
	
                   

                	 
	
                   

                   

                	
                  DUTCHESS
                    PRIVATE EQUITIES FUND, II, L.P. BY ITS GENERAL PARTNER DUTCHESS
                    CAPITAL
                    MANAGEMENT, LLC 

                   

                
	 	
                  By:
                    ______________________________

                   

                
	 	
                  Name:
                    Douglas H. Leighton

                  Title:
                    A Managing Member

                   

                

        

      

    

      

    
      
        
        

      

      
        14

        
          

        

      

      
        
        

      

    

     

    

      SCHEDULE
        A 

       

      Principal
        Place of Business of the Company:

       

       

       

      Locations
        Where Collateral is Located or Stored: 

       

       

       

      List
        of Subsidiaries of the Company:

       

       

       

      
        
          
          

        

        
          15

          
            

          

        

        
          
          

        

      

    

     

     

    

       

      SCHEDULE
        B 

       

       

      Jurisdictions:

       

       

       

      16

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