Document:

Unassociated Document

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                       

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              	 	

                                                                                      LOAN
      NUMBER

                                                                                    	

                                                                                      ACCT.
      NUMBER

                                                                                    	

                                                                                      NOTE
      DATE

                                                                                    	

                                                                                      CREDIT
      LIMIT

                                                                                    	

                                                                                      MATURITY
      DATE

                                                                                    
	
                                                                                      PR/OR

                                                                                    	 	 	 	 	 
	
                                                                                      OBLIGATION

                                                                                    	

                                                                                      CL522040275-1

                                                                                    	 	

                                                                                      01/02/08

                                                                                    	

                                                                                      $5,000,000.00

                                                                                    	

                                                                                      06/01/10

                                                                                    
	
                                                                                      INFORMATION

                                                                                    	 	 	 	 	 
	 	 	 	 	 	 
	 	
                                                                                      LOAN
      NUMBER

                                                                                    	
                                                                                      ACCT.
      NUMBER

                                                                                    	
                                                                                      MODIFICATION
      DATE

                                                                                    	
                                                                                      CREDIT
      LIMIT

                                                                                    
	 	 	 	 	 
	 	

                                                                                      CL522040275-1

                                                                                    	 	
                                                                                      05/25/10

                                                                                    	

                                                                                      $5,000,000.00

                                                                                    
	
                                                                                      AMENDED

                                                                                    	 	 	 	 
	
                                                                                      OBLIGATION

                                                                                    	

                                                                                      MATURITY
      DATE

                                                                                    	
                                                                                      INDEX
      (w/margin)

                                                                                    	
                                                                                      INTEREST
      RATE

                                                                                    	

                                                                                      INITIALS

                                                                                    
	

                                                                                      /NFORMATION

                                                                                    	 	 	 	 
	 	

                                                                                      09/01/10

                                                                                    	
                                                                                      Wall
      Street Journal Prime 

                                                                                      plus
      0.500%

                                                                                    	
                                                                                      5.0%

                                                                                    	 
	 	 	 	 	 
	 	 	 	 	 
	 	

                                                                                      Creditor
      Use
Only

                                                                                    

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

       

    
    

    DEBT
MODIFICATION AGREEMENT

    
      
        
          

        

      

       

      DATE AND PARTIES. The date of
this Debt Modification Agreement (Modification) is May 25, 2010. The parties and
their addresses are:

    

     

    LENDER:

    CARDINAL
BANK

    8270
Greensboro Drive

    Suite
500

    McLean,
VA 22102

    Telephone:
(703) 584-3430

    

    BORROWER:

    WIDEPOINT CORPORATION a
Delaware Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100

    Oakbrook
Terrace, IL 60181

    

    WIDEPOINT
IL, INC.

    an
Illinois Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100 Oakbrook Terrace, IL 60181

    

    WP
NBIL, INC.

    an
Illinois Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100 Oakbrook Terrace, IL 60181

    

    CHESAPEAKE
GOVERNMENT TECHNOLOGIES, INC.

    a
Delaware Corporation

    One
Lincoln Centre

    18W140
Butterfield Road, Suite 1100

    Oakbrook
Terrace, IL 60181

     

     

    
       

      
        
           

            
              

            

          

          
            
              
                
                  
                    
                      
                        
                          
                            	
                                    
                                      WidePoint
      Corporation

                                      Debt
      Modification Agreement 

                                      VA/4symathon00149300006929010052510N

                                    

                                  	
                                    
                                      Wolters
      Kluwer Financial Services ©1996,
      2010 Bankers

                                    

                                  	
                                    Initials            
      

                                     

                                    Page
1

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

        
           

        

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    OPERATIONAL RESEARCH CONSULTANTS,
INC. a Virginia Corporation

    1 1250
Waples Mills, South Tower

    Suite
250

    Fairfax,
VA 22030

    

    ISYS,
LLC

    a
Virginia Limited Liability Company One Lincoln Center

    18W140
Butterfield Road, Suite 1100 Oakbrook Terrace, IL 60181

     

    1. DEFINITIONS. In this
Modification, these terms have the following meanings:

    A. Pronouns. The pronouns "I,"
"me," and "my" refer to each Borrower signing this Modification, individually
and together with their heirs, executors, administrators, successors, and
assigns. "You" and "your" refer to the Lender, with its participants or
syndicators, successors and assigns, or any person or entity that acquires an
interest in the Modification or the Prior Obligation.

     

    B. Amended Obligation. Amended
Obligation is the resulting agreement that is created when the Modification
amends the Prior Obligation. It is described above in the AMENDED OBLIGATION
INFORMATION section.

     

    C. Credit Limit. Credit Limit
means the maximum amount of principal you will permit me to owe you under this
Line of Credit, at any one time. My Credit Limit is stated at the top of this
Modification.

     

    D. Loan. Loan refers to this
transaction generally. It includes the obligations and duties arising from the
terms of all documents prepared or submitted in association with the Prior
Obligation and this modification, such as applications, security agreements,
disclosures, notes, agreements, and this Modification.

    E. Modification. Modification
refers to this Debt Modification Agreement.

    F. Prior Obligation. Prior
Obligation refers to my existing agreement described above in the PRIOR
OBLIGATION INFORMATION section, and any previous extensions, renewals,
modifications or substitutions of it.

     

    2. BACKGROUND. You and I have
previously entered into a Prior Obligation. As of the date of this Modification,
the outstanding, unpaid balance of the Prior Obligation is $0.00. Conditions
have changed since the execution of the Prior Obligation instruments. In
response, and for value received, you and I agree to modify the terms of the
Prior Obligation, as provided for in this Modification.

     

    3. TERMS. The Prior Obligation
is modified as follows:

    A. Interest. Our agreement for
the payment of interest is modified to read:

    (1)
INTEREST. Interest will accrue on the unpaid Principal balance of the Loan at
the rate of 5.0 percent
(Interest Rate) until May 26, 2010, after which time it may change as
described in the Variable Rate subsection.

    (a) Maximum
Interest Amount. Any amount assessed or collected as interest under the terms of
the Loan will be limited to the maximum lawful amount of interest allowed by
state or federal law, whichever is greater. Amounts collected in excess of the
maximum lawful amount will be applied first to the unpaid Principal balance. Any
remainder will be refunded to me.

    (b) Statutory
Authority. Rate statute for Virginia is not provided yet.

    (c) Accrual.
Interest accrues using an Actual/360 days counting method.

    (d) Variable
Rate. The Interest Rate may change during the term of this
transaction.

    (1) Index.
Beginning with the first Change Date, the Interest Rate will be based on the
following index: the base rate on corporate loans posted by at least 70% of the
10 largest U.S. banks known as the Wall Street Journal U.S. Prime
Rate.

    The
Current Index is the most recent index figure available on each Change Date. You
do not guaranty by selecting this Index, or the margin, that the Interest Rate
on the Loan will be the same rate you charge on any other loans or class of
loans you make to me or other borrowers. If this Index is no longer available,
you will substitute a similar index. You will give me notice of your
choice.

    (2) Change
Date. Each date on which the Interest Rate may change is called a Change Date.
The Interest Rate may change May 26, 2010 and daily thereafter.

    (3) Calculation
Of Change. On each Change Date you will calculate the Interest Rate, which will
be the Current Index plus 0.500 percent. The result of this calculation will be
rounded to the nearest .001 percent. Subject to any limitations, this will be
the Interest Rate until the next Change Date. The new Interest Rate will become
effective on each Change Date. The Interest Rate and other charges on the Loan
will never exceed the highest rate or charge allowed by law for the
Loan.

    (4)  Limitations.
The Interest Rate changes are subject to the following limitations: Lifetime.
The Interest Rate will never be less than 5.000 percent.

    (5) Effect Of
Variable Rate. A change in the Interest Rate will have the following effect on
the payments: The amount of scheduled payments will change.

    B. Maturity and Payments. The
maturity and payment provisions are modified to read:

    
      
        
          

        

        
          
            
              
                
                  
                    
                      
                        
                          	
                                  
                                    WidePoint
      Corporation

                                    Debt
      Modification Agreement 

                                    VA/4symathon00149300006929010052510N

                                  

                                	
                                  
                                    Wolters
      Kluwer Financial Services ©1996,
      2010 Bankers

                                  

                                	
                                  Initials            
      

                                   

                                  Page
2

                                

                        

                      

                    

                  

                

              

            

          

        

        
           

          
            
              
              

            

            
              
              

              
                

              

            

            
              
              

            

          

        

      

    

     

    (1) PAYMENT.
I agree to pay all accrued interest on the balance outstanding from time to time
in regular payments beginning June 1, 2010, then on the same day of each month
thereafter. Any payment scheduled for a date falling beyond the last day of the
month, will be due on the last day. A final payment of the entire unpaid
outstanding balance of Principal and interest will be due September 1,
2010.

     

    Payments
will be rounded to the nearest $.01. With the final payment I also agree to pay
any additional fees or charges owing and the amount of any advances you have
made to others on my behalf. Payments scheduled to be paid on the 29th, 30th or
31st day of a month that contains no such day will, instead, be made on the last
day of such month.

    (2) Maturity.
The maturity provision is modified to read:

    (a) Maturity Date.
Consistent with our existing periodic payment arrangement, except any scheduled,
final payment, I agree that the entire outstanding balance of Principal and
accrued interest is due on, or before, September 1, 2010.

    C. Fees and Charges. As
additional consideration for your consent to enter into this Modification, I
agree to pay, or have paid these additional fees and charges:

    (1) Stop
Payment Fee. A(n) Stop Payment Fee equal to $30.00.

    (2) Late
Charge. If a payment is more than 10 days late, I will be
charged 5.000 percent of
the Unpaid Portion of Payment. I will pay this late charge promptly but only
once for each late payment.

    (3) Returned
Check Charge. I agree to pay a fee not to exceed $32.00 for each check,
negotiable order of withdrawal or draft I issue in connection with the Loan that
is returned because it has been dishonored.

     

    4. CONTINUATION OF TERMS. Except
as specifically amended by this Modification, all of the terms of the Prior
Obligation shall remain in full force and effect.

     

    5. WAIVER. I waive all claims,
defenses, setoffs, or counterclaims relating to the Prior Obligation, or any
document securing the Prior Obligation, that I may have. Any party to the Prior
Obligation that does not sign this Modification, shall remain liable under the
terms of the Prior Obligation unless released in writing by you.

     

    6. REASON(S) FOR MODIFICATION.
Modification of the maturity date as described herein.

     

    7. ADDITIONAL TERMS. PRIOR
OBLIGATION. This agreement is a modification of certain terms and conditions of
the indebtedness evidenced by a Promissory Note from Borrower to Lender dated
August 16, 2007 in the principal amount of $2,000,000.00, as modified under the
following agreements between Borrower and Lender: a Promissory Note dated
January 2, 2008 in the amount of $5,000,000 and a Debt Modification Agreement
dated March 17, 2009 in the amount of $5,000,000.00.

    

    LOAN
AGREEMENT. This agreement is subject to that certain Commercial Loan Agreement
between Borrower and Lender dated March 17, 2009, all terms and conditions of
which, notwithstanding anything herein to the contrary, are incorporated and
made a part herein.

     

    COLLATERAL.
In addition to any other collateral that may be pledged, either now or in the
future, the indebtedness evidenced by this agreement is secured by all rights,
title, and security interest granted under that certain Security Agreement from
Borrower to Lender dated August 16, 2007.

     

    8. SIGNATURES. By signing under
seal, I agree to the terms contained in this Modification. I also acknowledge
receipt of a copy of this Modification.

    
       

       

       

       

       

       

       

       

       

      
        
          
            
              
                
                  
                    
                      
                        	
                                
                                  WidePoint
      Corporation

                                  Debt
      Modification Agreement 

                                  VA/4symathon00149300006929010052510N

                                

                              	
                                
                                  Wolters
      Kluwer Financial Services ©1996,
      2010 Bankers

                                

                              	
                                Initials            
      

                                 

                                Page
3

                              

                      

                    

                  

                

              

            

          

        

      

      
         

      

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    BORROWER:

    WidePoint
Corporation

     

    By   /s/ James T.
McCubbin                                             (Seal)

    James T.
McCubbin, Vice President

    Widepoint
IL, Inc.

     

    By  /s/ James T.
McCubbin                                             
(Seal) 

    James T.
McCubbin, Vice President

    WP NBIL,
Inc.

     

    By  /s/ James T.
McCubbin                                             
(Seal) 

    James T.
McCubbin, Vice President

    Chesapeake
Government Technologies, Inc.

     

    By  /s/ James T.
McCubbin                                             
(Seal) 

    James T.
McCubbin, Vice President

    Operational
Research Consultants, Inc.

     

    By  /s/ James T.
McCubbin                                             
(Seal) 

    James T.
McCubbin, Vice President

    iSYS,
LLC

     

    By  /s/ James T.
McCubbin                                             
(Seal) 

    James T.
McCubbin , Vice President

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

    
      
        

      

      
        
          
            
              
                
                  
                    
                      
                        	
                                
                                  WidePoint
      Corporation

                                  Debt
      Modification Agreement 

                                  VA/4symathon00149300006929010052510N

                                

                              	
                                
                                  Wolters
      Kluwer Financial Services ©1996,
      2010 Bankers

                                

                              	
                                Initials            
      

                                 

                                Page
4THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE

    SECURITIES
ACT OF 1933, AS AMENDED, OR ANY APPLICABLE

    STATE
SECURITIES LAW, INCLUDING THE

    STATE
OF NEW YORK,

    AND
MAY NOT BE SOLD, ASSIGNED, PLEDGED, HYPOTHECATED

    OR
OTHERWISE DISPOSED OF EXCEPT IN COMPLIANCE

    WITH
APPLICABLE FEDERAL AND STATE SECURITIES LAWS

    AND
THE OTHER RESTRICTIONS ON TRANSFER SET FORTH HEREIN.

     

    
      
        

      

    

    

    SUBORDINATED
PROMISSORY NOTE

    

    
      	
              $500,000

            	
              New
      York, New York

            
	 
      	
              May
      25, 2010

            

    

    

    FOR VALUE RECEIVED, Zanett, Inc., a
Delaware corporation (the “Company”), hereby unconditionally promises to pay to
the order of Rockport Investments Ltd. or its permitted assigns, (the “Holder”),
on or before July 27, 2010, the principal amount of Five Hundred Thousand
Dollars ($500,000), together with interest as set forth below, until the date on
which the principal amount is paid in full, in accordance with the terms of this
promissory note (the “Note”).

    

     The principal balance of this
Note and all accrued but unpaid interest theron shall be due and payable on July
27, 2010 (the “Maturity Date”).

    

    During the period beginning on the date
hereof and ending on the Maturity Date, interest shall accrue daily on the
outstanding principal amount hereunder at the simple rate of 1.5% per
month.  Interest shall be calculated on the basis of actual days
elapsed based on a 30-day month, and shall be paid monthly in arrears on the
fifth business day of each month, beginning on June 7, 2010.  Interest
shall continue to accrue on the principal balance hereof at the then-applicable
simple rate of interest specified in this Note, notwithstanding any demand for
payment or the entry of any judgment against the Company, until all principal
owing hereunder is paid in full.

    

    The Company will pay or cause to be
paid all sums becoming due hereon for principal and interest in lawful money of
the United States of America by wire transfer sent to an account for which the
Holder provides information to the Company or check sent to the Holder’s address
on file with the Company or to such other address as Holder may designate for
such purpose from time to time by written notice to the Company, without any
requirement for the presentation of this Note or making any notation thereon
except that the Holder hereof agrees that payment of the final amount due shall
be made only upon surrender of this Note to the Company for
cancellation.

    

    The Company may prepay this Note in
whole or in part at any time without premium or penalty.  Any partial
prepayment shall be applied to the unpaid installments of principal in the
inverse order of their maturity.

    

    The Note will be an unsecured
obligation of the Company.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    The occurrence of any of the following
shall constitute an Event of Default hereunder: (a) default in any payment
by the Company hereunder when due; (b) sale of all or substantially all of
the Company’s assets, or any formal action in contemplation of the dissolution,
liquidation or termination of the Company’s existence; (c) entry of a
judgment in an amount in excess of $100,000 against the Company or attachment or
seizure of or levy upon any material property of the Company; (d) acceleration
of the maturity of any of the Company’s liabilities for borrowed money; or
(e) institution of any proceedings by or against the Company under any law
relating to bankruptcy, insolvency, reorganization or other form of debtor
relief or the Company’s making an assignment for the benefit of creditors, or
the appointment of a receiver, trustee, conservator or other judicial
representative for the Company or the Company’s property.

    

    Upon the occurrence of an Event of
Default hereunder, the entire principal amount of this Note and any accrued but
unpaid interest thereon shall be immediately due and
payable.  Further, if an Event of Default shall occur hereunder due to
the Company’s default in payment of any amounts due hereunder on the Maturity
Date, then for each calendar day that elapses after the Maturity Date until such
time as all amounts due and payable by the Company hereunder are paid in full,
the Company shall issue to the Holder 10,000 shares (as adjusted for stock
splits, dividends or similar events) of the Company’s common stock, par value
$0.001 per share (the “Common Stock”); provided that if the Company is
prohibited by Rule 5635(d) of the NASDAQ Listing Rules, or any successor or
similar rule, or the rules or regulation of any other securities exchange on
which the Common Stock is then listed or traded, from issuing a number of shares
of Company Stock pursuant to this paragraph in excess of a prescribed amount,
without stockholder approval or otherwise (the “Cap Amount”), then the Company
shall not issue shares pursuant to this paragraph in excess of the Cap
Amount.  Assuming solely for the purposes of this paragraph that such
Rule 5635(d) or a similar rule is applicable, the Cap Amount shall be the number
of shares equal to 19.99% of the number of shares of Common Stock outstanding
immediately prior to the issuance of this Note.

    

    No failure or delay on the part of the
Holder to insist on strict performance of the Company’s obligations hereunder or
to exercise any remedy shall constitute a waiver of the Holder’s rights in that
or any other instance.  No waiver of any of the Holder’s rights shall
be effective unless in writing, and any waiver of any default or any instance of
non-compliance shall be limited to its express terms and shall not extend to any
other default or instance of non-compliance.

    

    This Note shall be construed in
accordance with and governed by the laws of the State of New York, without
giving effect to conflict of laws principles.  The Company hereby
submits to the personal jurisdiction in the State of New York, consents to the
jurisdiction of any competent state or federal district court sitting in New
York City, New York, and waives any and all rights to raise lack of personal
jurisdiction as a defense in any action, suit or proceeding in connection with
this Note or any related matter.  Because of the greater time and
expense required therefor, the Company hereby waives, to the extent permitted by
law, a trial by jury.

    

    The Company shall pay all reasonable
costs and expenses (including attorneys’ fees) incurred by the Holder relating
to the enforcement of this Note.

    

    Any provision hereof found to be
illegal, invalid or unenforceable for any reason whatsoever shall not affect the
validity, legality or enforceability of the remainder hereof.

    

    If the effective interest rate on this
Note would otherwise violate any applicable usury law, then the interest rate
shall be reduced to the maximum permissible rate and any payment received by the
Holder in excess of the maximum permissible rate shall be treated as a
prepayment of the principal of this Note.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    This Note shall be binding upon the
Company’s successors and assigns and shall inure to the benefit of each holder
of this Note and such holder’s successors, endorsees and assigns.

    

    No recourse whatsoever, either directly
or through the Company or any trustee, receiver or assignee, shall be had in any
event or in any manner against any past, present or future stockholder, director
or officer of the Company for the payment of, principal of or interest on this
Note or any of them or for any claim based thereon or otherwise in respect this
Note, this Note being a corporate obligation only.

     

    The Company shall consider and treat
the person in whose name this Note shall be registered as the absolute owner
thereof for all purposes whatsoever, and the Company shall not be affected by
any notice to the contrary.  This Note shall be transferable by the
Holder in whole but not in part upon the written consent of the
Company.

     

    All communications provided hereunder
shall be in writing and, if to the Company, delivered or mailed by registered or
certified mail addressed to Zanett, Inc., 635 Madison Avenue, 15th Floor,
New York, NY  10022, Attention:  Chief
Executive Officer, or, if to the Holder to the address on file with the
Company.

    

    [Signature
Page Follows]

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    IN WITNESS WHEREOF, the undersigned has
caused this Note to be executed on behalf of the Company as of the day and year
first written above.

    

    
      
        	 
      	
                ZANETT,
      INC.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ Dennis Harkins

              
	 
      	 
      	
                Name:
      Dennis Harkins

              
	 
      	 
      	
                Title:
      Chief Financial Officer

              

      

    

    

    By signing below, intending to be
legally bound, the Holder agrees that, except as and to the extent hereinafter
provided, the obligations of the Company to the Holder under this Note (the
“Subordinated Obligations”) are and shall be subordinate and subject in right of
payment to the prior indefeasible payment in full in cash of all of the
Company’s obligations to Bank of America, N.A. (or, in the event the Company’s
obligations to Bank of America, N.A. are refinanced with another senior lender,
to the Company’s obligations to such senior lender) pursuant to that certain
Loan and Security Agreement (the “Loan Agreement”), dated as of December 21,
2005, by and between the Company and the other parties named therein, as amended
(such obligations, the “Senior Obligations”), whether or not the Senior
Obligations have been voided, disallowed or subordinated pursuant to Section 548
of the United States Bankruptcy Code (11 USC §101, et seq.) or any applicable
state fraudulent conveyance laws, whether asserted directly or under Section 544
of the United States Bankruptcy Code.  Without limiting the foregoing,
the Holder also hereby agrees that (a) except as otherwise set forth below, it
will not ask, demand, sue for, take or receive from the Company (other than
directing the Company to make payment directly to the holder of the Senior
Obligations for the purpose of causing the Senior Obligations to be paid), by
set-off or in any other manner, payment of the whole or any part of the
Subordinated Obligations, or any security therefor, and (b) without limiting the
generality of clause (a) of this paragraph, it will not take any action to
collect, demand payment of or accelerate all or any portion of the Subordinated
Obligations other than the filing of appropriate proofs of claim or any other
similar action necessary to preserve its claim against the Holder (provided that
the Holder may accelerate the Subordinated Obligations if all outstanding Senior
Obligations shall have been previously accelerated), take, foreclose or
otherwise realize upon any security therefor or exercise any of its other rights
or remedies against the Holder that it may have in respect of the Subordinated
Obligations, in each case unless and until all of the Senior Obligations shall
have been indefeasibly paid in full in cash, whether or not such Senior
Obligations have been voided, disallowed or subordinated pursuant to Section 548
of the United States Bankruptcy Code or any applicable state fraudulent
conveyance laws, whether asserted directly or under Section 544 of the United
States Bankruptcy Code.  Notwithstanding the foregoing, so long as no
Event of Default (as defined in the Loan Agreement) has occurred and is
continuing, or would be caused thereby, the Holder may from time to time receive
from the Company and the Company may pay to the Holder the payments of principal
and interest called for by the terms of this Note (the “Permitted
Payments”).  Nothing in this Agreement shall limit the right of the
Holder to receive any payments (whether Permitted Payments or otherwise) on or
in respect of the Subordinated Obligations at any time after the Senior
Obligations shall have been indefeasibly paid in full in cash.

    

    
      
        	 
      	
                ROCKPORT
      INVESTMENTS LTD.

              
	 
      	 
      	 
      
	 
      	
                By:

              	
                /s/ J. Pickles

              
	 
      	 
      	
                Name:
      J. Pickles

              
	 
      	 
      	
                Title:
      Portfolio Manager

              

      

    

    

    [Signature
Page to Promissory Note]

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