Document:

Exhibit 4.7

THIS SUBORDINATED PROMISSORY NOTE HAS NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933, AS AMENDED
(THE “ACT”).  IN ADDITION, THIS NOTE HAS
NOT BEEN REGISTERED UNDER APPLICABLE STATE SECURITIES LAWS IN RELIANCE UPON
EXEMPTIONS PROVIDED UNDER SUCH LAWS. 
THIS NOTE MAY NOT BE PLEDGED, SOLD OR TRANSFERRED IN THE ABSENCE OF (1)
AN EFFECTIVE REGISTRATION STATEMENT COVERING THE NOTE FILED UNDER THE ACT, (2)
AN OPINION OF QUALIFIED COUNSEL, WHICH OPINION AND COUNSEL ARE SATISFACTORY TO
THE BOARD OF DIRECTORS, THAT REGISTRATION IS NOT REQUIRED OR (3) OTHER EVIDENCE
SATISFACTORY TO THE BOARD OF DIRECTORS THAT SUCH REGISTRATION IS NOT REQUIRED.

SUBORDINATED PROMISSORY NOTE

	
  $

  	
  July 31, 2006

  

 

For value received
IT&E International Group, Inc., a Delaware corporation (“Payor”), promises to pay to                     
(“Holder”), the principal sum of $                
with simple interest on the outstanding principal amount accruing at the prime
rate of interest set forth in the Wall Street Journal, New York edition (the “Prime Rate”) as of the date hereof and as annually adjusted
hereunder for each calendar year for the term of this Note based on the Prime
Rate set forth on the first day of each such calendar year that the Wall Street
Journal, New York edition publishes a Prime Rate.  Interest shall be computed on the basis of a
year of 365 days for the actual number of days elapsed.

This Subordinated
Promissory Note (this “Note”) is
issued pursuant to that certain Agreement and Plan of Merger dated as of even
date herewith among the Payor, the Holder and the other parties thereto (the “Merger Agreement”), which is incorporated herein by
reference as though fully set forth herein. 
Capitalized terms not otherwise defined herein shall have the meanings
ascribed to them under the Merger Agreement.

1.             Repayment.  Interest shall be payable in monthly
installments of interest only beginning thirty (30) days after the date of this
Note and continuing on the same day of each and every month thereafter
continuing the first to occur of (i) July 31, 2011, or (ii) an Event of Default
(as defined below), at which time all principal and accrued and unpaid interest
due on this Note shall be all due and payable (the “Maturity Date”).  Payor may prepay all or any portion of the
outstanding balance of unpaid principal and any accrued but unpaid interest
thereon at any time without penalty, fee or acceleration.

2.             Right
of Offset.

(i)            Each of Holder and Payor hereby
acknowledge and agree that Payor shall be entitled to offset against the
principal amount owed under this Note any amounts to which Payor is entitled
based on Article VII of the Merger Agreement and that the principal amount of
this Note will be appropriately reduced in the event Payor asserts such right
of offset.  Holder agrees to return this
Note to the Payor for cancellation and reissuance to reflect the

 
 

 

adjusted principal amount
hereunder and the adjustments to Schedule 1 resulting from such offset.

(ii)           It is acknowledged and agreed that the
acquisition of the existing workforce of Averion Inc. (the “Company”),
including without limitation, Philip T. Lavin, Ph.D. (“Lavin”) by Payor
pursuant to the Merger Agreement constitutes a significant element in
connection with the valuation of the Company pursuant thereto.  Accordingly, it is acknowledged and agreed
that should Lavin voluntarily resign as an employee of the Payor (or its
affiliates) during the term of this Note, then certain adjustments to the
purchase price paid by the Payor via this Note pursuant to the Merger Agreement
shall be made by an offset against the outstanding balance of unpaid principal
and any accrued but unpaid interest thereon as follows:

(a)           if
Lavin resigns from the date hereof prior to the first anniversary of the date
of this Note, Payor shall be entitled to offset one hundred percent (100%) of
the outstanding balance of unpaid principal and any accrued but unpaid interest
thereon;

(b)           if
Lavin resigns after the first anniversary of the date of this Note but prior to
the second anniversary of the date of this Note, Payor shall be entitled to
offset eighty percent (80%) of the outstanding balance of unpaid principal and any
accrued but unpaid interest thereon;

(c)           if
Lavin resigns after the second anniversary of the date of this Note but prior
to the third anniversary of the date of this Note, Payor shall be entitled to
offset sixty percent (60%) of the outstanding balance of unpaid principal and any
accrued but unpaid interest thereon;

(d)           if
Lavin resigns after the third anniversary of the date of this Note but prior to
the fourth anniversary of the date of this Note, Payor shall be entitled to
offset forty percent (40%) of the outstanding balance of unpaid principal and any
accrued but unpaid interest thereon; and

(e)           if
Lavin resigns after the fourth anniversary of the date of this Note but prior
to the fifth anniversary of the date of this Note, Payor shall be entitled to
offset twenty percent (20%) of the outstanding balance of unpaid principal and any
accrued but unpaid interest thereon.

This provision shall be of no effect in the event of a
voluntary resignation by Lavin more than twelve (12) months after a public
offering of shares of the Payor has been completed where the aggregate value of
the shares sold in the offering was at least One Hundred Million Dollars
($100,000,000).  This provision shall not
apply if (x) the Company terminates Lavin’s employment without Cause (as such
term is defined in the Employment Agreement between Payor and Lavin dated as of
the date hereof (the “Employment Agreement”)), (y) Lavin resigns as an employee
of the Company for Good Reason (as such term is defined in the Employment
Agreement), or (iii) Lavin is determined to have become Disabled (as such term
is defined in the Employment Agreement).

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(iii)         Notwithstanding
the foregoing, the Payor shall be entitled to pursue any other remedy in law or
equity, in addition to the offset of this Note, for any breach of the Merger
Agreement, the Non-Competition Agreement or the Employment Agreement,
including, without limitation, pursuit of damages in excess of the amount
offset pursuant to this Section 2 subject to any limitation contained in those
agreements.

3.             Place
of Payment.  All amounts payable
hereunder shall be payable at the address of the Holder in the corporate books
of the Payor, unless another place of payment shall be specified in writing by
the Holder.

4.             Representations
of Payor.  This Note, when
executed and delivered by Payor, shall constitute a valid and binding
obligation of Payor enforceable in accordance with its terms, subject to laws
of general application relating to bankruptcy, insolvency, the relief of
debtors and, with respect to rights to indemnity, subject to federal and state
securities laws.

5.             Default.  Each of the following events shall be an “Event of Default” hereunder:

(i)            Payor fails to pay timely any of the
principal amount or any other amounts due under this Note within five (5) days
after such payment is due;

(ii)           Payor files any petition or action for
relief under any bankruptcy, reorganization, insolvency or moratorium law or
any other law for the relief of, or relating to, debtors, now or hereafter in
effect, or makes any assignment for the benefit of creditors; or

(iii)         An involuntary petition is filed against
Payor (unless such petition is dismissed or discharged within ninety (90) days)
under any bankruptcy statute now or hereafter in effect, or a custodian,
receiver, trustee, assignee for the benefit of creditors (or other similar
official) is appointed to take possession, custody or control of any property
of Payor.

Upon the occurrence of an
Event of Default hereunder, all unpaid principal and accrued but unpaid
interest and other amounts (if any) owing hereunder shall, at the option of the
Holder, be immediately due, payable and collectible by the Holder pursuant to
applicable law and Section 2(ii) shall be null and void.

6.             Transfer;
Assignment.  The terms of this
Note shall apply to, inure to the benefit of, and bind all parties hereto,
their heirs, legatees, devisees, administrators, executors, successors,
assigns.  Notwithstanding any provision
of this Note to the contrary, in addition to complying with applicable
securities laws, the Holder must obtain the written consent of the Payor prior
to assigning this Note.  Upon the
assignment of this Note, the assignee shall acknowledge and accept, in writing
and addressed to Payor, the right of offset set forth in Section 2 of this Note
and the other terms and conditions of this Note.  This Note is registered on the books of the
Payor and is transferable only by surrender thereof at the principal office of
the Payor duly endorsed or accompanied by a written instrument of transfer duly
executed by the registered Holder of this Note or his attorney duly authorized
in writing.  Payor and any and all
successors, assignees, transferees and participants thereof may not assign this
Note without the prior written consent of Holder, which shall not be unreasonably
withheld.

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7.             Usury
Exemption.  Notwithstanding any
provision of this Note, Payor shall not and will not be required to pay
interest at a rate or any fee or charge in an amount prohibited by applicable
law.  If interest or any fee or charge
payable on any date would be prohibited, then such interest, fee or charge will
be automatically reduced to the maximum amount that is not prohibited.  In the event that Holder receives payment of
any interest, fee, or charge that would cause the amount so received to exceed
the maximum amount permitted under applicable law, then, to the extent that the
amount so received exceeds the maximum amount permitted under applicable
law:  (a) in the first instance, the
amount received shall be applied to principal and (b) in the second instance,
in the event that the principal amount of this Note has been paid in full, the
remaining amount so received shall be deemed to be a loan from Payor to Holder,
repayable upon the demand of the Payor with interest at the legal rate from the
date of Holder’s receipt of each payment in excess interest, fees, or charges.

8.             Subordination.  The Holder of this Note acknowledges and
agrees that the rights of Holder under this Note shall be subordinate and
junior in right and priority to any and all senior institutional lenders (and
any and all successors, assignees, transferees and participants thereof) of
Payor, and Holder hereby agrees to execute and delivery any subordination
agreement that may be required by any such current or future institutional
lender to evidence such subordination. 
The rights of Holder under this Note shall be not be subordinate or
junior in right and priority to subordinated or mezzanine lenders.

9.             Governing
Law.  This Note shall be governed
by and construed under the laws of the State of Delaware, as applied to
agreements among Delaware residents, made and to be performed entirely within
the State of Delaware, without giving effect to conflicts of law principles.

10.          No
Rights as Stockholder.  The
Holder will not be entitled to vote, receive dividends or exercise any of the
rights of the holders of the Payor’s equity securities for any purpose.

11.          Amendments.  This Note may be amended or a provision
hereof waived only in a writing signed by the Payor and the Holder.

 

[Remainder of Page Intentionally
Left Blank]

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  IT&E INTERNATIONAL GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Alastair McEwan

  
	
   

  	
   

  	
  Title: Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Acknowledge and Agreed to:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  [Name]

  

 

[Signature
Page to Subordinated Promissory Note]

 

 5Exhibit 10.24

AMENDMENT TO REGISTRATION RIGHTS AGREEMENT

This Amendment (this “Amendment”), dated as of July 31, 2006, is
entered into by and between IT&E INTERNATIONAL GROUP, INC., a Delaware
corporation (the “Company”), COMVEST INVESTMENT PARTNERS II LLC, a Delaware
limited liability company (“ComVest”)
and the purchasers set forth on the signature pages attached hereto
(collectively with ComVest, the “Purchasers”),
for the purpose of amending the terms of the Registration Rights Agreement,
dated as of November 9, 2005 between the Company and the Purchasers (as
amended, modified and/or supplemented from time to time, the “Registration Rights Agreement”).  Capitalized terms used herein without
definition shall have the meanings ascribed to such terms in the Registration
Rights Agreement.

WHEREAS,
pursuant to that certain Securities Purchase Agreement between the Company and
the Purchasers dated November 9, 2005 (the “Purchase
Agreement”), the Purchaser entered into such Purchase Agreement for
the purchase of (i) up to 11,500 shares of the Company’s Series D Preferred
Convertible Stock (“Series D Preferred”),
(ii) warrants to purchase up to 81,142,788 shares of the Company’s common
stock, par value $0.001 per share, and (iii) a six month option for ComVest to invest
an additional $5,000,000 on the same terms as set forth in (i) and (ii) above
(the “ComVest Option”), for up to an
aggregate purchase price of $11,500,000;

WHEREAS,
the Purchase Agreement was amended on May 8, 2006 to provide that the ComVest
Option shall be extended and that ComVest shall have until November 9, 2006 to
invest up to an additional $5,000,000 for the purchase of up to 5,000 shares of
Series D Preferred and warrants for the purchase of up to 32,142,829 shares of
the Company’s common stock;

WHEREAS,
Section 2(a) of the Registration Rights Agreement provides that the Company shall
file a registration statement with the Securities and Exchange Commission (“SEC”) registering all the shares of common stock underlying
the warrants and the common stock underlying the Series D Preferred that are
related to the Registration Rights Agreement (the “Registerable
Securities”) within fifteen (15) days of the earliest to occur of:
(i) ComVest exercising the ComVest Option in full; or (ii) the expiration of
the ComVest Option (the “Filing Date”);

WHEREAS, on
July 31, 2006, ComVest notified the Company of its intent to immediately
exercise the ComVest Option and purchase the 5,000 shares of Series D Preferred
and warrants for the purchase of 32,142,829 shares of the Company’s common
stock for an aggregate purchase price of $5,000,000; and

WHEREAS, the
parties desire to amend the Registration Rights Agreement to provide that the
Filing Date shall be extended such that the Company shall be obligated to file
a registration statement with the SEC within sixty (60) days after ComVest
provides written notice to the Company of its desire to have the Company
register the Registerable Securities.

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

 

 

1.             Section
2(a) of the Registration Rights Agreement is hereby amended and restated in its
entirety as follows:

“(2) (a)                    Mandatory
Registration.  The Company shall
prepare, and, within sixty (60) calendar days after the date on which ComVest
provides written notice to the Company of its desire to have the Company
register the Registerable Securities (the “Filing Date”), file with the SEC a
Registration Statement on Form S-3 (or, if Form S-3 is not then available, on
such form of Registration Statement as is then available to effect a
registration of the Registerable Securities, subject to the consent of ComVest,
which consent will not be unreasonably withheld) covering the resale of the
Registerable Securities, which Registration Statement, to the extent allowable
under the 1933 Act and the rules and regulations promulgated thereunder
(including Rule 416), shall state that such Registration Statement also covers
such indeterminate number of additional shares of Common Stock as may become
issuable upon conversion of or otherwise pursuant to the Preferred Stock and
exercise of the Warrants to prevent dilution resulting from stock splits, stock
dividends or similar transactions.  The
number of shares of Common Stock initially included in such Registration
Statement shall be no less than an amount equal to the sum of the number of
shares of Common Stock that are then issuable upon conversion of the Preferred
Stock (based on the Conversion Price), and the number of shares of Common Stock
that are then issuable upon exercise of the Warrants, without regard to any
limitation on ComVest’s ability to convert the Preferred Stock or exercise the
Warrants but in each case that relates to Registerable Securities.  The Company acknowledges that the number of
shares initially included in the Registration Statement represents a good faith
estimate of the maximum number of shares issuable upon conversion of the
Preferred Stock and upon exercise of the Warrants but in each case that relates
to Registerable Securities.  ComVest
acknowledges and agrees that such initial Registration Statement to be filed on
or prior to the Filing Date shall include shares in accordance with the
registration rights set forth in subsection (ii) and (iii) of the definition of
Existing Registration Rights Agreements, subject to the Lock-Up Agreements
being entered into by such parties.”

2.             ComVest
understands that the Company has an affirmative obligation to make prompt
public disclosure of material agreements and material amendments to such
agreements.  The Company hereby covenants
that it shall file this Amendment on a Form 8-K within four (4) business days
of the date hereof, in accordance with the Securities Exchange Act of 1934, as
amended, and the regulations promulgated thereunder.

3.             Except
as specifically set forth in this Amendment, there are no other amendments or
modifications to the Registration Rights Agreement, and all of the other forms,
terms and provisions of the Registration Rights Agreement remain in full force
and effect.

4.             From
and after the Amendment Effective Date, all references to the Registration
Rights Agreement shall be deemed to be references to the Registration Rights
Agreement, as the case may be, as modified hereby.

 

 

5.             This
Amendment shall be binding upon the parties hereto and their respective
successors and permitted assigns and shall inure to the benefit of and be
enforceable by each of the parties hereto and their respective successors and
permitted assigns.  THIS
AMENDMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY
THE LAW OF THE STATE OF NEW YORK. 
This Amendment may be executed in any number of counterparts, each of
which shall be an original, but all of which shall constitute one instrument.

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

IN
WITNESS WHEREOF, each of the Company and the Purchasers has
caused this Amendment to the Registration Rights Agreement to be signed in its
name effective as of the date first above written.

	
  

  	
  IT&E INTERNATIONAL GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alastair McEwan

  	
   

  
	
   

  	
  Name:

  	
  Alastair McEwan

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PURCHASER:

  
	
   

  	
   

  
	
   

  	
  COMVEST
  INVESTMENT PARTNERS II

  
	
   

  	
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Cecilio Rodriguez

  	
   

  
	
   

  	
   

  	
  Name: Cecilio
  Rodriguez

  
	
   

  	
   

  	
  Title: Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Charles McCall

  	
   

  
	
   

  	
   

  	
  Charles McCall

  
	
   

  	
   

  
	
   

  	
   

  	
  /s/ Matthew Dontzin

  	
   

  
	
   

  	
   

  	
  Matthew Dontzin

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