Document:

EXHIBIT 10.5.1

 

AMENDMENT

TO

AMENDED AND RESTATED EXECUTIVE EMPLOYMENT
AGREEMENT

 

This First Amendment (this “Amendment”) is dated August 31,
2004 (the “Effective Date”) and is made to the Amended and Restated Executive Employment
Agreement referenced below by and between Bioject Inc. and Bioject Medical
Technologies Inc. (“Company” or “Employer”), and John Gandolfo, an individual (“Executive”)
(together the “Parties”).

 

RECITALS

 

WHEREAS, the
Parties entered into an Amended and Restated Executive Employment Agreement on March 14,
2002 (the “Employment Agreement”); and

 

WHEREAS, the
Parties now want to further amend the Employment Agreement to provide certain
additional benefits to Executive and to make such changes as are specifically
covered herein.

 

AGREEMENT

 

NOW,
THEREFORE, for good
and valuable consideration, and in consideration of the mutual covenants and
conditions herein set forth, the receipt and sufficiency of which is hereby
acknowledged, the Parties agree as follows:

 

1.                                      Restricted Stock Unit Grant.

 

As consideration for the execution of this Amendment
by Executive, the Company will grant Executive a restricted stock unit award
(the “Award”) under the Bioject Restated 1992 Stock Incentive plan, as amended September 13,
2001 and March 13, 2003 (the “Plan”), with each unit representing the
right to receive one (1) share of BMT Common Stock, subject to certain
vesting conditions and forfeiture provisions. Following the Effective Date, BMT
will provide Executive with a Restricted Stock Unit Grant Agreement that
evidences the Award.  The Restricted
Stock Unit Grant Agreement sets forth the specific terms and conditions of the
Award, including, without limitation, the certain time and performance-based
vesting conditions as well as the terms under which Executive will forfeit the
Award (including termination of Executive’s employment with the Company).  The Award is subject to Board approval and
Executive’s execution of the Restricted Stock Unit Grant Agreement.

 

2.                                      Termination By the Company.

 

Subparagraph (ii) of Section 4.2(b) (Termination
by the Company) of the Employment Agreement shall be deleted in its entirety and
replaced with the following:

 

“(ii) 
Pursuant to Section 4.2(a)(ii) (Termination by the Company), Section 2.3
(Location of Employment), Section 4.1 (Duration) or Section 4.5
(Change in

 

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Control), and subject to
Executive’s execution of the Release of Claims (as defined in paragraph C,
below):

 

A.  The Company will pay Executive as severance
pay, an amount equal to one (1) year of Executive’s annual base pay at the
rate in effect immediately prior to the date of termination (hereafter “Additional
Pay”) from which payment usual and customary
withholdings and deductions will be subtracted.  The Company may pay such Additional Pay on
dates generally coinciding with its regular payroll schedule or in a
single lump sum payment, in its sole discretion.  Payment of such Additional Pay will
commence on the next regularly scheduled Company payday following the Effective
Date of the Release of Claims (as those terms are defined in paragraph C
below).  All other compensation and benefits shall cease on Executive’s
termination date; and

 

B.  Executive is entitled to extend coverage
under any group health plan in which he and his dependents are enrolled at the
time of termination of employment under the Consolidated Omnibus Budget
Reconciliation Act (COBRA) as long
as Executive remains eligible under COBRA. 
Should Executive
elect to exercise his right of continued coverage under COBRA, The Company will pay the full cost of
Executive’s premium under COBRA (including medical, dental and vision, but
excluding medical flexible spending account) for a period of twelve (12) months following cessation of the
group health plan and dental plan coverage provided by Company (the “Additional
Benefits”).  Payment of the
Additional Benefits will be paid by the Company directly to the third party
provider following the Effective Date of the Release of Claims (as those terms
are defined in paragraph C below).

 

C.  As a condition precedent to the Company’s
obligation to pay Executive the Additional Pay and the Additional Benefits,
Executive shall be required
to sign, deliver to the Company, and not revoke a release of claims in a form
to be provided by the Company at the time of Executive’s termination (the “Release
of Claims”).  The Release of Claims shall
be effective on the eighth (8th) day after delivery of the executed
Release of Claims by Executive to the Company, provided that Executive has not
revoked acceptance or rescinded the Release of Claims (the “Effective Date”).”

 

3.                                      Compliance with Company Policies;
Applicable Legal Requirements.

 

Executive shall comply with the Company’s policies
and procedures to the extent they are not inconsistent with the Employment
Agreement, as amended by this Amendment, in which case the provisions of the Employment
Agreement, as amended, shall prevail.  Executive
shall comply with all legal requirements applicable to Executive’s position,
including without limitation, requirements arising out of the Sarbanes-Oxley
Act of 2002.

 

4.                                      Stock Options.

 

Section 5 of the
Employment Agreement shall be amended by adding new Sections 5.3, 5.4 and 5.5,
as set forth below:

 

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“5.3                           Stock Options.  In the event of a (A) termination of
Executive’s employment pursuant to Section 4.5 (Change of Control), (B) termination
of Executive’s employment pursuant to Section 4.2(a) (ii) (Termination
by the Company)( including deemed termination pursuant to Section 4.1
(Term), or (C) the Executive’s having opted to receive a severance package
in lieu of relocating pursuant to Section 2.3 (Location of Employment), subject
to Executive’s compliance with the requirements set forth in Section 5.5
below, all stock options which have been previously awarded to Executive, but
are not yet vested, will be 100% vested on the Effective Date of the Release of
Claims (as those terms are defined in Section 5.5, below).  Notwithstanding
the foregoing, all the other conditions and restrictions in the Incentive Stock
Option Agreement and the Bioject Medical Technologies Inc. Restated 1992 Stock
Incentive Plan, as amended September 13, 2001 and March 13, 2003,
shall remain in effect.”

 

5.4                                 Restricted Stock Units.  In the event of (A) termination of Executive’s employment
pursuant to Section 4.2(a)(ii) (Termination by the Company) (including
deemed termination pursuant to Section 4.1) or (B) the Executive’s having opted to receive a
severance package in lieu of relocating pursuant to Section 2.3 (Location
of Employment) of the Employment Agreement, subject to Executive’s
compliance with the requirements set forth in Section 5.5, below, all
Restricted Stock Units which have been previously awarded to Executive will
immediately be deemed earned and 100% vested on the Effective Date of the
Release of Claims (as those terms are defined in Section 5.5, below).  Notwithstanding the foregoing, all the other
conditions and restrictions in the Restricted Stock Unit Grant Agreement and
Notice of Grant shall remain in effect, including without limitation, the
Executive’s obligation to pay the Company such amount of cash as the Company
may require, under all applicable federal, state, local or other laws or
regulations, to withhold and pay over as income or other withholding taxes for
all Restricted Stock Units which vest on the Effective Date of the Release of
Claims.

 

5.5                                 Release of Claims.  As a condition precedent to the accelerated vesting
of stock options pursuant to Section 5.3, above and restricted stock units
pursuant to Section 5.4, above, Executive shall be required to sign,
deliver to the Company and not revoke a release of claims in a form to be
provided by the Company at the time of termination (the “Release of Claims”).   Such accelerated vesting of stock options and
restricted stock units shall be effective on the eighth (8th) day
after delivery of the executed Release of Claims by Executive to the Company,
provided that Executive has not revoked acceptance or rescinded the Release of
Claims (the “Effective Date”).”

 

5.                                      Amendment to Employment Agreement;
Order of Precedence.

 

This Amendment constitutes an amendment to the Employment
Agreement between the Parties, within the meaning of Section 6.6 of the Employment
Agreement.  Except as set forth in this
Amendment, the Employment Agreement shall remain in full force and effect and
references in the Employment Agreement to “this Agreement”, “hereunder,”

 

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“herein,” “hereof,” and
words of like effect shall mean the Employment Agreement as so amended by this
Amendment.  In the event of any conflicts
between the provisions contained in this Amendment and the provisions of the Employment
Agreement, the provisions contained in this Amendment shall prevail. Any
defined terms used in the Employment Agreement which are wholly or partially
redefined by this Amendment shall be interpreted in such Employment Agreement
as being so redefined.

 

6.                                      Counterparts.

 

This Amendment may be executed in one or more
counterparts and/or by facsimile, each of which shall be deemed an original and
all of which signed, taken together, shall constitute one instrument.

 

IN
WITNESS WHEREOF, the Parties have executed this Amendment effective on the day
and year first written above.

 

	
  ACCEPTED AND AGREED:

  
	
   

  
	
   

  
	
  /s/ John Gandolfo

  	
   

  
	
  John Gandolfo, Executive

  
	
   

  
	
   

  
	
  BIOJECT INC

  
	
   

  
	
  By:

  	
  /s/Christine Farrell

  	
   

  
	
   

  
	
  Name:

  	
    Christine Farrell

  	
   

  
	
   

  
	
  Title:

  	
  Controller

  	
   

  
	
   

  
	
   

  
	
  BIOJECT MEDICAL TECHNOLOGIES INC.

  
	
   

  
	
  By:

  	
  /s/Christine Farrell

  	
   

  
	
   

  
	
  Name:

  	
    Christine Farrell

  	
   

  
	
   

  
	
  Title:

  	
  Controller

  	
   

  
						

 

4Exhibit 10(o)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  AMENDED AND RESTATED SECURED CONVERTIBLE PROMISSORY
  NOTE

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  $4,000,000

  	
   

  	
  March 28, 2005

  	
   

  

 

 

The
undersigned, Hyperfeed Technologies, Inc., a Delaware corporation (“Borrower”), and PICO
Holdings, Inc., a California corporation (“Lender”), are parties to that certain
Secured Convertible Promissory Note, dated November 2, 2004, (the “Prior Note”), pursuant to which $1,095,000 + interest remains outstanding and unpaid as of the date hereof, which
amount includes all accrued interest and all other amounts owing from Borrower
to Lender (the “Prior Balance”).  The Borrower and Lender hereby agree to amend
and restate the Prior Note though this Amended and Restated Secured Convertible
Promissory Note, and Borrower hereby promises to pay to Lender the principal
sum or so much of the principal sum of Four Million Dollars ($4,000,000) as may
from time to time have been advanced and be outstanding, together with accrued
interest as provided herein.  Borrower
and Lender acknowledge that the Prior Balance hereby remains outstanding
pursuant to the terms of this Amended and Restated Secured Convertible
Promissory Note (herein after the “Note”) and no additional amounts remaining
owing from Borrower to Lender pursuant to either this Note or the Prior Note as
of the date hereof.  Section M of
this Note contains certain defined terms used in this Note.

 

A.                                   Principal.

 

1.                                       Advances.  Borrower may from time to time request
advances from Lender (individually an “Advance” and collectively the “Advances”) by giving
written notice to Lender in accordance with the terms hereof, which notice
shall indicate the amount of the Advance requested and the proposed use of the
Advance proceeds.  Provided that no Event
of Default is in existence and that the requested Advance would not cause an
Event of Default to occur, Lender shall make the Advance to Borrower within
five (5) days of receipt of Borrower’s notice.  Lender shall not be obligated to make an
Advance to the extent that such Advance when aggregated with all Advances would
exceed Four Million Dollars ($4,000,000) in the aggregate.  Borrower shall not have the right to
re-borrow any Advance to the extent that it has been repaid.

 

2.                                       Use
of Proceeds.  The proceeds of
Advances shall be used exclusively for working capital and operating expenses
of the Borrower, and may not be used for payment of the Senior Indebtedness (as
defined below).

 

B.                                     Interest.  Interest on the unpaid principal balance of
this Note shall accrue at the prime rate plus two and three-quarters percent
(2.75%) per annum compounded monthly commencing on the date Lender first makes
an Advance to Borrower, and shall be payable in a single installment at
maturity as set forth below.

 

 

C.                                     Payment.

 

1.                                       Scheduled
Payment.  Subject to the provisions
of Section C.4. and section F below, the entire unpaid balance of
principal (subject to conversion of such principal as provided below) and all
accrued and unpaid interest shall be due and payable (i) on the day prior
to the first anniversary of the date hereof, or (ii) in Lender’s sole
discretion, any date after and including the first anniversary date as Lender
may declare by providing written notice to Borrower; (the “Maturity Date”).  If Lender elects the Maturity Date provided
in (ii) above, and not exercise its Conversion Rights (as defined herein),
Borrower shall have ten (10) business days in which to make payment of
principal and interest hereunder. 
Payment of principal and interest hereunder shall be made by check
delivered to the Lender at the address furnished to the Borrower for that
purpose.

 

2.                                       Prepayment.  Subject to the provisions of Section C.4.
below, Borrower shall have the right at any time and from time to time to
prepay, in whole or in part, the principal of this Note, without payment of any
premium or penalty.  Any principal
prepayment shall be accompanied by a payment of all interest accrued on the
amount prepaid through the date of such prepayment.

 

3.                                       Form of
Payment.  Principal and interest and all
other amounts due hereunder are to be paid in lawful money of the United States
of America in federal or other immediately available funds.

 

4.                                       Notice
Prior to Repayment.  Borrower shall
provide Lender with ten (10) business days prior written notice of its
intention to make repayment of this Note, whether before or after the Maturity
Date, so that Lender may elect, in its sole discretion, to exercise its
Conversion Rights.

 

D.                                    Conditions
of Advances.

 

1.                                       Conditions
Precedent to Initial Advance.  The
obligation of Lender to make the initial Advance is subject to the condition
precedent that Lender shall have received, in form and substance satisfactory
to Lender, the following:

 

(a)                                  this
Note;

 

(b)                                 a
certificate of the Secretary of Borrower with respect to incumbency and
resolutions authorizing the execution and delivery of this Note;

 

(c)                                  UCC
National Form Financing Statement;

 

(d)                                 payment
of the fees and Lender Expenses in an amount up to $20,000;

 

(e)                                  to
provide evidence of insurance which satisfies the requirements of Section 7
hereof; and

 

(f)                                    a
stock certificate representing the number of shares of Common Stock of the
Borrower equal to: (1) $75,000; 
divided by (2) the five-day moving average price

 

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per share of the Common Stock
of the Borrower on the date of this Note (such shares the “Commitment Shares”) .

 

(g)                                 such
other documents, and completion of such other matters, as Lender may reasonably
deem necessary or appropriate.

 

2.                                       Conditions
Precedent to all Advances.  The obligation
of Lender to make any Advance, is further subject to the following conditions:

 

(a)                                  the
representations and warranties contained herein shall be true and correct in
all material respects on and as of the date of such request for Advance and on
the effective date of each Advance as though made at and as of each such date,
and no Event of Default shall have occurred and be continuing, or would exist
after giving effect to such Advance (provided, however, that those
representations and warranties expressly referring to another date shall be
true, correct and complete in all material respects as of such date).  The making of each Advance shall be deemed to
be a representation and warranty by Borrower on the date of such Advance as to
the accuracy of the facts referred to in this Section.

 

(b)                                 Borrower
has borrowed the maximum amount permissible under the Senior Loan Documents (as
defined below), as amended, such amount has been outstanding for as least forty
five (45) days and Borrower has provided evidence of the foregoing reasonably
satisfactory to Lender.  Lender may waive
the requirements of this Section D.2.(b) by providing writing of such
waiver to Borrower.

 

(c)                                  Borrower’s
tangible net worth, as determined in accordance with U.S. general accepted accounting
principals, at the end of the calendar month prior such Advance is at least
$3,000,000.

 

(d)                                 Borrower’s  ratio of EBITDA (earnings before interest,
taxes, depreciation and amortization) to debt service at the end of the
calendar month prior to such Advance is at least 3.00 to 1.00.

 

Notwithstanding
the foregoing, Lender may waive the requirements of Section D.2.(c) and
Section D.2.(d) by providing writing of such waiver to Borrower.

 

E.                                      Security
Interest.

 

1.                                       Grant
of Security Interest.  Borrower
grants and pledges to Lender a continuing security interest in all presently
existing and hereafter acquired or arising Collateral in order to secure prompt
repayment of any and all Secured Obligations and in order to secure prompt
performance by Borrower of each of its covenants and duties under the Loan
Documents. Such security interest constitutes a valid, perfected security
interest in the presently existing Collateral, and will constitute a valid,
perfected security interest in Collateral acquired after the date hereof, in
each case, subject to any Lien permitted hereunder and Permitted Liens.

 

F.                                      Subordination.  Except as provided in the immediately
following sentence, for as long as no event of default on the Senior
Indebtedness (as defined below) has occurred and is continuing,

 

3

 

, Borrower shall
make no payment of principal on account of the Senior Indebtedness until prior
payment in full of the Secured Obligations. 
Notwithstanding the preceding sentence, if for any period the Borrower
does not maintain (1) tangible net worth, as determined in accordance with
U.S. general accepted accounting principals (as determined as the end of each
calendar month) of at least $3,000,000 and (2) a ratio of EBITDA (earnings
before interest, taxes, depreciation, and amortization) to debt service (as
determined at the end of each calendar month) of at least 3.00 to 1.00,
Borrower shall not be prohibited hereunder from making payments of principal on
account of the Senior Indebtedness prior to payment in full of the Secured
Obligations during such period.  After,
and during the continuance of, an event of default on the Senior Indebtedness,
the indebtedness evidenced by this Note is expressly subordinate and subject in
right of payment to the prior payment in full of all Senior Indebtedness of
Borrower.

 

1.                                       Definition
of Senior Indebtedness.  “Senior Indebtedness”
means the principal of (and premium, if any), unpaid interest on and amounts
reimbursed, fees, expenses, costs of enforcement and other amounts due in
connection with any indebtedness of Borrower with respect to that certain
Promissory Note and that certain Security Agreement, each dated as of June 1,
2004, by and between Borrower and Lakeside Bank (the “Senior Loan Documents”).
[

 

2.                                       Insolvency
Proceedings.  If there shall occur
any receivership, insolvency, assignment for the benefit of creditors,
bankruptcy, reorganization, or arrangements with creditors (whether or not
pursuant to bankruptcy or other insolvency laws), sale of all or substantially
all of the assets, dissolution, liquidation, or any other marshaling of the
assets and liabilities of Borrower, no amount shall be paid by Borrower in
respect of the principal of, interest on or other amounts due with respect to
this Note at the time outstanding, unless and until the principal of and
interest on the Senior Indebtedness then outstanding shall be paid in full.

 

3.                                       Subrogation.  After, and during the continuance of, an
event of default on the Senior Indebtedness, subject to the payment in full of
all Senior Indebtedness, Lender’s rights under this Note shall be subrogated to
the rights of the holder(s) of such Senior Indebtedness (to the extent of the
payments or distributions made to the holder(s) of such Senior Indebtedness
pursuant to the provisions of this Section) to receive payments and
distributions of assets of  Borrower
applicable to the Senior Indebtedness. 
No such payments or distributions applicable to the Senior Indebtedness
shall, as between Borrower and its creditors, other than the holders of Senior
Indebtedness and Lender, be deemed to be a payment by Borrower to or on account
of this Note; and for purposes of such subrogation, no payments or
distributions to the holders of the Senior Indebtedness to which Lender would
be entitled except for the provisions of this Section shall, as between
Borrower and its creditors, other than the holders of Senior Indebtedness and
Lender, be deemed to be a payment by Borrower to or on account of the Senior
Indebtedness.

 

G.                                     Representations
and Warranties.  Borrower represents
and warrants to Lender that:

 

1.                                       Collateral.  Borrower is the true and lawful owner of the
Collateral, having good and marketable title thereto, free and clear of any and
all Liens other than Liens and security interests granted to Lender hereunder
and the Permitted Liens set forth on the Schedule.  Borrower shall not create or assume or permit
to exist any such Lien on or against any of the

 

4

 

Collateral except as
created or permitted by the Loan Documents and Permitted Liens, and Borrower
shall promptly notify Lender of any such other Lien against the Collateral and
shall defend the Collateral against, and take all such action as may be necessary
to remove or discharge, any such Lien.

 

2.                                       Due
Authorization; No Conflict.  The
execution, delivery, and performance of the Loan Documents are within Borrower’s
powers, have been duly authorized, and are not in conflict with nor constitute
a breach of any provision contained in Borrower’s Certificate of Incorporation
or Bylaws, nor will they constitute an event of default under any material
agreement to which Borrower is a party or by which Borrower is bound.  Borrower is not in default under any material
agreement to which it is a party or by which it is bound.

 

3.                                       Intellectual
Property Collateral.  Borrower is the
sole owner of the Intellectual Property Collateral, except for non-exclusive
licenses granted by Borrower to its customers in the ordinary course of
business.  No part of the Intellectual
Property Collateral has been judged invalid or unenforceable, in whole or in
part, and no claim, to the knowledge of Borrower, has been made that any part
of the Intellectual Property Collateral violates the rights of any third
party.  Except as set forth in the Schedule of
Exceptions, Borrower is not a party to, or bound by, any agreement that
restricts the grant by Borrower of a security interest in Borrower’s rights
under such agreement.

 

4.                                       Name;
Location of Chief Executive Office. 
Except as set for in this Section 4, Borrower has not done business
under any name other than that specified on the signature page hereof and
under the names of PCQuote.com and PCQuote, Inc. (through June 30,
2003) and under the name of HYPRWare, Inc. since June 30, 2003.  The chief executive office of Borrower is
located at the address listed in Section M.3. hereof.  All Borrower’s inventory and equipment are
located at the address located in Section M.3 and the addresses in New
York (50 Broadway, Suite 2900, New York, NY 10004), California (388 Market
St, Suite 1050, San Francisco, CA 94111), Aurora (600 N. Commons Drive, Suite 100,
Aurora, IL 60504) and 4313 Western Avenue, Lisle, IL 60532.

 

5.                                       Litigation.  There are no actions or proceedings pending
by or against Borrower before any court or administrative agency in which an
adverse decision could have a material adverse effect, or a material adverse
effect on the business assets or financial condition of Borrower, or a material
adverse effect on Borrower’s interest or Lender’s security interest in the
Collateral (collectively, a “Material Adverse Effect”).

 

6.                                       Solvency,
Payment of Debts.  Borrower is
solvent and able to pay its debts (including trade debts) as they mature.

 

7.                                       Taxes.  Borrower has filed or caused to be filed all
tax returns required to be filed by Borrower, and has paid, or has made
adequate provision for the payment of, all taxes reflected in such tax returns.

 

8.                                       Government
Consents.  Borrower has obtained all
consents, approvals and authorizations of, made all declarations or filings
with, and given all notices to, all governmental

 

5

 

authorities that are
necessary for, and the absence of which would not cause a material adverse
effect upon, the continued operation of Borrower’s business as currently
conducted.

 

H.                                    Affirmative
Covenants. Borrower covenants and agrees that, until payment in full of all
Secured Obligations, and until such time that Lender has no further obligation
to make an Advance, Borrower shall do all of the following

 

1.                                       Repayment
of Other Indebtedness.  Borrower
hereby agrees that it will not make any payment of principal in connection with
the Senior Indebtedness, or permit any of its subsidiaries to make any such
payment, except in accordance with Section F hereof.  With respect to indebtedness other than the
Senior Indebtedness, Borrower hereby agrees that it will not repay any
indebtedness, or permit any of its subsidiaries to make any such payment,
incurred after the date hereof.

 

2.                                       Perfection
of Security Interest.  Borrower
agrees to take all actions requested by Lender and reasonably necessary to
perfect, to continue the perfection of, and to otherwise give notice of, the
Lien granted hereunder, including, but not limited to, execution of financing
statements.

 

3.                                       Good
Standing.  Borrower shall maintain
its corporate existence in its jurisdiction of incorporation and maintain
qualification in each jurisdiction in which the failure to be so qualified
could have a material adverse effect upon the Borrower. -  Borrower shall maintain in force all
licenses, approvals and agreements, the loss of which could have a Material
Adverse Effect.

 

4.                                       Government
Compliance.  Borrower shall meet the
minimum funding requirements of ERISA with respect to any employee benefit
plans subject to ERISA.  Borrower shall
comply with all statutes, laws, ordinances and government rules and
regulations to which it is subject, noncompliance with which could have a
Material Adverse Effect.

 

5.                                       Financial
Statements, Reports, Certificates. 
Borrower shall deliver to Lender such budgets, projections, operating
plans, financial statements and other financial information as Lender may
reasonably request from time to time, including, but not limited to monthly
variance reports and monthly cash flow reports.

 

6.                                       Taxes.  Borrower shall make due and timely payment or
deposit of all federal and state taxes, and all material local taxes,
assessments, or contributions required of it by law.

 

7.                                       Insurance.

 

(a)                                  Borrower,
at its expense, shall keep the Collateral insured against loss or damage in
such amounts as ordinarily insured against by other owners in similar
businesses conducted in the locations where Borrower’s business is conducted on
the date hereof.  Borrower shall also
maintain insurance relating to Borrower’s business, ownership and use of the
Collateral in amounts and of a type that are customary to businesses similar to
Borrower’s.

 

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(b)                                 All
such policies of insurance shall be in such form, with such companies, and in
such amounts as are reasonably satisfactory to Lender.  Subject to the Lien in favor of the Senior
Indebtedness, all such policies of property insurance shall contain a lender’s
loss payable endorsement, in a form satisfactory to Lender, showing Lender as
an additional loss payee thereof, and all liability insurance policies shall
show Lender as an additional insured and shall specify that the insurer must
give at least twenty (20) days notice to Lender before canceling its policy for
any reason.  Upon Lender’s request,
Borrower shall deliver to Lender certified copies of such policies of insurance
and evidence of the payments of all premiums therefor.  All proceeds payable under any such policy
shall, at the option of Lender, be payable to Lender to be applied on account
of the obligations under the Loan Documents.

 

8.                                       Registration
of Intellectual Property Rights.

 

(a)                                  (intentionally
left blank)

 

(b)                                 Borrower
shall (i) protect, defend and maintain the validity and enforceability of
the Trademarks, Patents and Copyrights which are necessary to the conduct of
its business, (ii) use its reasonable efforts to detect infringements of
the Trademarks, Patents and Copyrights and promptly advise Lender in writing of
infringements detected and (iii) not allow any Trademarks, Patents or
Copyrights to be abandoned, forfeited or dedicated to the public without the
written consent of Lender, which shall not be unreasonably withheld.

 

(c)                                  Lender
may audit Borrower’s Intellectual Property Collateral to confirm compliance
with this Section, provided such audit may not occur more often than twice per
year, unless an Event of Default has occurred and is continuing.  Lender have the right, but not the
obligation, to take, at Borrower’s sole reasonable expense, any actions that
Borrower is required under this Section to take but which Borrower fails
to take, after fifteen (15) calendar days’ notice to Borrower.  Borrower shall reimburse and indemnify Lender
for all reasonable costs and reasonable expenses incurred in the exercise of
its rights under this Section.

 

9.                                       Filings.  Borrower shall file all reports and other
information and documents which it is required to file with the Securities and
Exchange Commission or the over-the-counter market, in connection with this
Note or otherwise.

 

10.                                 Further
Assurances.  At any time and from
time to time Borrower shall execute and deliver such further instruments and
take such further action as may reasonably be requested by Lender to effect the
purposes of this Note.

 

I.                                         Negative
Covenants. Borrower covenants and agrees that, until payment in full of all
Secured Obligations, and until such time as Lender has no further obligation to
make an Advance, Borrower will not do any of the following without express
written consent of Lender:

 

1.                                       Dispositions.  Convey, sell, lease, transfer or otherwise
dispose of (collectively, a “Transfer”), all or any part of its business or property,
other than:  (i) Transfers of
inventory in the ordinary course of business; (ii) Transfers of
non-exclusive licenses for the use of the

 

7

 

property of Borrower in
the ordinary course of business; or (iii) Transfers of worn-out or
obsolete equipment.

 

2.                                       Change
in Business; Change in Control or Executive Office.  Engage in any business other than the
businesses currently engaged in by Borrower and any business substantially
similar or related thereto (or incidental thereto); or without thirty (30) days
prior written notification to Lender, relocate its chief executive office or
state of incorporation; or without Lender’s prior written consent, change the
date on which its fiscal year ends.

 

3.                                       Mergers
or Acquisitions.  Merge or
consolidate or agree to merge or consolidate, with or into any other business
organization, or acquire all or substantially all of the capital stock or
property of another Person.

 

4.                                       Indebtedness.
Create, incur, assume or be or remain liable with respect to any indebtedness
for borrowed money (other than trade debt), other than the Senior Indebtedness
and the indebtedness evidenced by this Note.

 

5.                                       Encumbrances.  Create, incur, assume or suffer to exist any
Lien with respect to any of its property, or assign or otherwise convey any
right to receive income, including the sale of any accounts, except for
Permitted Liens and Liens disclosed on the Schedule.  Agree with any Person other than Lender not
to grant a security interest in, or otherwise encumber, any of its property.

 

6.                                       Distributions.  Pay any dividends or make any other
distribution or payment on account of or in redemption, retirement or purchase
of any capital stock, except that Borrower may repurchase the stock of former
employees pursuant to stock repurchase agreements as long as an Event of
Default does not exist prior to such repurchase or would not exist after giving
effect to such repurchase.

 

7.                                       Investments.  Directly or indirectly acquire or own, or
make any investment in or to any Person, or permit any of its subsidiaries so
to do, other than investments set forth on the Schedule; or maintain or invest
any of its property with a Person unless such Person has entered into a control
agreement with Lender, in form and substance satisfactory to Lender; or suffer
or permit any subsidiary to be a party to, or be bound by, an agreement that
restricts such subsidiary from paying dividends or otherwise distributing
property to Borrower.

 

8.                                       Transactions
with Affiliates.  Directly or
indirectly enter into or permit to exist any material transaction with any
affiliate of Borrower except for transactions that are in the ordinary course
of Borrower’s business, upon fair and reasonable terms that are no less
favorable to Borrower than would be obtained in an arm’s length transaction
with a non-affiliated Person.

 

9.                                       Negative
Pledge Agreements.  Other than Senior
Loan Documents, permit the inclusion in any contract to which it becomes a
party of any provisions that could restrict or invalidate the creation of a
security interest in any of Borrower’s property.

 

8

 

J.                                        Events
of Default.

 

1.                                       Definition
of Event of Default.  The occurrence
of any one or more of the following events shall constitute an “Event of Default”
hereunder:

 

(a)                                  Borrower’s
breach of the obligation to pay any amount of the Secured Obligations on the
date that it is due and payable;

 

(b)                                 Borrower’s
failure to perform, keep or observe any of its covenants, conditions, promises,
agreements or obligations under any of the Loan Documents or any other
agreement with any Person if such failure may have a material adverse effect on
Borrower’s assets, operations or condition, financial or otherwise;

 

(c)                                  Borrower’s
commencement of voluntary bankruptcy proceedings, or Borrower’s filing of a
petition or answer or consent seeking reorganization or release, under the
federal Bankruptcy Code, or any other applicable federal or state law relating
to creditor rights and remedies, or Borrower’s consent to the filing of any
such petition or the appointment of a receiver, liquidator, assignee, trustee
or other similar official of Borrower or of any substantial part of its
property, or Borrower’s making of an assignment for the benefit of creditors,
or the taking of corporate action in furtherance of such action;

 

(d)                                 the
loss, theft, damage or destruction of, or sale (other than in the ordinary
course of business), lease or furnishing under a contract of service of, any
material portion of the Collateral;

 

(e)                                  the
creation (whether voluntary or involuntary) of, or any attempt to create, any
Lien upon any of the Collateral, other than the Permitted Liens, or any levy,
seizure or attachment of any material portion thereof;

 

(f)                                    the
occurrence and continuance of any default under any lease or agreement for
borrowed money that gives the lessor or the creditor of such indebtedness, as
applicable, the right to accelerate the lease payments or the  indebtedness, as applicable, or the right to
exercise any rights or remedies with respect to any of the Collateral; or

 

(g)                                 the
entry of any judgment or order against Borrower which remains unsatisfied or
undischarged and in effect for thirty (30) days after such entry without a stay
of enforcement or execution.

 

2.                                       Rights
and Remedies on Event of Default.

 

(a)                                  During
the continuance of an Event of Default, Lender shall have the right, itself or
through any of its agents, with or without notice to Borrower (as provided
below), as to any or all of the Collateral, by any available judicial
procedure, or without judicial process (provided, however, that it is in
compliance with the UCC), to exercise any and all rights afforded to a secured
party under the UCC or other applicable law. 
Without limiting the generality of the foregoing, Lender shall have the
right to sell or otherwise dispose of all or any part of the Collateral, either
at public or private sale, in lots or in bulk, for cash or for credit, with or
without warranties or representations, and upon such terms and conditions, all
as Lender, in its reasonable discretion, may deem advisable, and it shall have
the right to purchase at any such

 

9

 

sale.  Borrower agrees that a notice sent at least
fifteen (15) days before the time of any intended public sale or of the time
after which any private sale or other disposition of the Collateral is to be
made shall be reasonable notice of such sale or other disposition.  The proceeds of any such sale, or other
Collateral disposition shall be applied, first to the expenses of retaking,
holding, storing, processing and preparing for sale, selling, and the like, and
to Lender’s reasonable attorneys’ fees and legal expenses, and then to the
Secured Obligations and to the payment of any other amounts required by
applicable law, after which Lender shall account to Borrower for any surplus
proceeds.  If, upon the sale or other
disposition of the Collateral, the proceeds thereof are insufficient to pay all
amounts to which Lender is legally entitled, Borrower shall be liable for the
deficiency, together with interest thereon, and the reasonable fees of any
attorneys Lender’s employs to collect such deficiency; provided, however,
that the foregoing shall not be deemed to require Lender to resort to or
initiate proceedings against the Collateral prior to the collection of any such
deficiency from Borrower.  To the extent
permitted by applicable law, Borrower waives all claims, damages and demands
against Lender arising out of the retention or sale or lease of the Collateral
or other exercise of Lender’s rights and remedies with respect thereto.

 

(b)                                 To
the extent permitted by law, Borrower covenants that it will not at any time
insist upon or plead, or in any manner whatever claim or take any benefit or
advantage of, any stay or extension law now or at any time hereafter in force,
nor claim, take or insist upon any benefit or advantage of or from any law now
or hereafter in force providing for the valuation or appraisal of the
Collateral or any part thereof, prior to any sale or sales thereof to be made
pursuant to any provision herein contained, or the decree, judgment or order of
any court of competent jurisdiction; or, after such sale or sales, claim or
exercise any right under any statute now or hereafter made or enacted by any
state or otherwise to redeem the property so sold or any part thereof, and, to
the full extent legally permitted, hereby expressly waives all benefit and
advantage of any such law or laws, and covenants that it will not invoke or
utilize any such law or laws or otherwise hinder, delay or impede the execution
of any power herein granted and delegated to Lender, but will suffer and permit
the execution of every such power as though no such power, law or laws had been
made or enacted.

 

(c)                                  Any
sale, whether under any power of sale hereby given or by virtue of judicial
proceedings, shall operate to divest all Borrower’s right, title, interest,
claim and demand whatsoever, either at law or in equity, in and to the
Collateral sold, and shall be a perpetual bar, both at law and in equity,
against Borrower, its successors and assigns, and against all persons and
entities claiming the Collateral sold or any part thereof under, by or through
Borrower, its successors or assigns.

 

(d)                                 Borrower
appoints Lender, and any officer, employee or agent of Lender, with full power
of substitution, as Borrower’s true and lawful attorney-in-fact, effective as
of the date hereof, with power, in its own name or in the name of Borrower,
during the continuance of an Event of Default, to endorse any notes, checks,
drafts, money orders, or other instruments of payment in respect of the
Collateral that may come into Lender’s possession, to sign and endorse any
drafts against debtors, assignments, verifications and notices in connection
with accounts, and other documents relating to Collateral; to pay or discharge
taxes or Liens at any time levied or placed on or threatened against the
Collateral; to demand, collect, issue receipt for, compromise, settle and sue for
monies due in respect of the Collateral; to notify persons and

 

10

 

entities obligated with
respect to the Collateral to make payments directly to Lender; and, generally,
to do, at Lender’s option and at Borrower’s expense, at any time, or from time
to time, all acts and things which Lender deems necessary to protect, preserve
and realize upon the Collateral and Lender’s security interest therein to
effect the intent of the Loan Documents, all as fully and effectually as
Borrower might or could do; and Borrower hereby ratifies all that said attorney
shall lawfully do or cause to be done by virtue hereof.  This power of attorney shall be irrevocable
as long as any of the Secured Obligations are outstanding.

 

(e)                                  All
of Lender’s rights and remedies with respect to the Collateral, whether
established hereby or by any other agreements, instruments or documents or by
law shall be cumulative and may be exercised singly or concurrently.

 

K.                                    Conversion
Right.

 

1.                                       Conversion
Right.  Lender shall have the right
(the “Conversion Right”),
in its sole discretion, at any time and from time to time to elect to convert
all or any part of the Secured Obligations into that number of shares of Common
Stock of Borrower as is obtained by dividing (a) the total amount of
Secured Obligations by (b) the lesser of the (i) eighty percent (80%)
of the five-day moving average price per share of the Common Stock on the date
of the Lender’s election to exercise its Conversion Right or (ii) eighty
percent (80%) of the five-day moving average price per share of the Common
Stock on the date hereof.

 

2.                                       Exercise
of Conversion Right.  To convert any
of the Secured Obligations into shares of Common Stock, Lender shall deliver to
Borrower a written notice of election to exercise the Conversion Right (the “Conversion Notice”).  Borrower shall, as soon as practicable
thereafter, issue and deliver to Lender a certificate or certificates,
registered in Lender’s name, for the number of shares of Common Stock to which
Lender shall be entitled by virtue of such exercise.  The conversion of the Secured Obligations
shall be deemed to have been made on the date that Borrower receives the
Conversion Notice (the “Conversion
Date”) and Lender shall be treated for all purposes as the
record holder of the Conversion Shares as of such date.

 

3.                                       Fractional
Shares.  Borrower shall not issue
fractional shares of Common Stock or scrip representing fractional shares of
Common Stock upon exercise of the Conversion Right.  As to any fractional share of Common Stock
which Lender would otherwise be entitled to purchase from Borrower upon such
exercise, Borrower shall purchase from Lender such fractional share at a price
equal to an amount calculated by multiplying such fractional share (calculated
to the nearest 1/100th of a share) by the price per share of Common Stock on
the Conversion Date.  Payment of such
amount shall be made in cash or by check payable to the order of Lender at the time
of delivery of any certificate or certificates arising upon such exercise.

 

L.                                      Registration
Rights.  Concurrent with the
execution and delivery of this Note, Borrower shall take all actions necessary
to cause Lender, upon the exercise of the Conversion Right provided for herein,
to have similar registration and similar liquidity rights as the rights granted
to the participants in HyperFeed’s Private Placement dated May 15, 2003,
and during the term of this Note no stockholder of Borrower shall have more
favorable registration or other liquidity rights than the rights granted to
Lender pursuant to this Section.

 

11

 

M.                                 Other
Provisions.

 

1.                                       Definitions.  As used herein, the following terms shall
have the following meanings:

 

“Lender Expenses” means
all reasonable costs or expenses (including reasonable attorneys’ fees and
expenses) incurred in connection with the preparation, negotiation,
administration, and enforcement of the Loan Documents; reasonable Collateral
audit fees; and Lender’s reasonable attorneys’ fees and expenses incurred in
amending, enforcing or defending the Loan Documents (including fees and
expenses of appeal), incurred before, during and after an Insolvency
Proceeding, whether or not suit is brought.

 

“Collateral” means the
Intellectual Property Collateral and the property described on Exhibit A
attached hereto.

 

“Copyrights” means any
and all copyright rights, copyright applications, copyright registrations and
like protections in each work or authorship and derivative work thereof,
whether published or unpublished and whether or not the same also constitutes a
trade secret, now or hereafter existing, created, acquired or held.

 

“Intellectual Property Collateral”
means all of Borrower’s right, title, and interest in and to the following:

 

(a)                                  Copyrights,
Trademarks and Patents;

 

(b)                                 Any
and all trade secrets, and any and all intellectual property rights in computer
software and computer software products now or hereafter existing, created,
acquired or held;

 

(c)                                  Any
and all design rights which may be available to Borrower now or hereafter
existing, created, acquired or held;

 

(d)                                 Any
and all claims for damages by way of past, present and future infringement of
any of the rights included above, with the right, but not the obligation, to
sue for and collect such damages for said use or infringement of the
intellectual property rights identified above;

 

(e)                                  All
licenses or other rights to use any of the Copyrights, Patents or Trademarks,
and all license fees and royalties arising from such use to the extent
permitted by such license or rights;

 

(f)                                    All
amendments, renewals and extensions of any of the Copyrights, Trademarks or
Patents; and

 

(g)                                 All
proceeds and products of the foregoing, including without limitation all
payments under insurance or any indemnity or warranty payable in respect of any
of the foregoing.

 

12

 

“Insolvency Proceeding”
means any proceeding commenced by conforms to J.1(c) any Person under any
provision of the United States Bankruptcy Code, as amended, or under any other
bankruptcy or insolvency law, including assignments for the benefit of
creditors, formal or informal moratoria, compositions, extension generally with
its creditors, or proceedings seeking reorganization, arrangement, or other
relief.

 

“Lien” means any lien
(statutory or other), mortgage, pledge, hypothecation, assignment, deposit
arrangement, security interest, charge, claim or other encumbrance of any kind
(including any conditional sale or other title retention agreement, any lease
in the nature thereof, and any agreement to give any security interest) and any
agreement to give or refrain from giving a lien, mortgage, pledge,
hypothecation, assignment, deposit arrangement, security interest, charge,
claim or other encumbrance of any kind.

 

“Loan Documents”
means, collectively, this Note, any note or notes executed by Borrower and
issued to Lender, and any other agreement entered into in connection with this
Note, all as amended or extended from time to time.

 

“Patents” means all
patents, patent applications and like protections including without limitation
improvements, divisions, continuations, renewals, reissues, extensions and
continuations-in-part of the same.

 

“Permitted Liens”
means:  (i) Liens imposed by law,
such as carriers’, warehousemen’s, materialmen’s and mechanics’ liens, or Liens
arising out of judgments or awards against Borrower with respect to which
Borrower at the time shall currently be prosecuting an appeal or proceedings
for review; (ii) Liens for taxes not yet subject to penalties for
nonpayment and Liens for taxes the payment of which is being contested in good
faith and by appropriate proceedings and for which, to the extent required by
U.S. generally accepted accounting principles then in effect, proper and
adequate book reserves relating thereto are established by Borrower;  (iii) Liens securing the Senior
Indebtedness (iv) liens securing the purchase price or lease of any goods,
which liens attached only to the goods being purchased or leased, (v) liens
securing security bonds, bid bonds, performance bonds, and other similar items,
(vi) liens in the form of deposits or pledges in connection with worker’s
compensation, social security unemployment compensation or other similar matter,
and (vii) liens existing as of the date hereof.

 

“Person” means any
individual, sole proprietorship, partnership, limited liability company, joint
venture, trust, unincorporated organization, association, corporation,
institution, public benefit corporation, firm, joint stock company, estate,
person or governmental agency.

 

“Secured Obligations”
means all debt, principal, interest, Lender Expenses and other amounts owed to
Lender by Borrower pursuant to the Loan Documents, whether absolute or contingent,
due or to become due, now existing or hereafter arising, including any interest
that accrues after the commencement of an Insolvency Proceeding and including
any debt, liability, or obligation owing from Borrower to others that Lender
may have obtained by assignment or otherwise.

 

13

 

“Trademarks” means any
trademark and servicemark rights, whether registered or not, applications to
register and registrations of the same and like protections, and the entire
goodwill of the business of Borrower connected with and symbolized by such
trademarks.

 

“UCC” means the
Uniform Commercial Code in effect from time to time in the relevant
jurisdiction.

 

2.                                       Governing
Law; Venue.  The Loan Documents shall
be governed by the laws of the State of California, without giving effect to
conflicts of law principles.  Borrower
and Lender agree that all actions or proceedings arising in connection with the
Loan Documents shall be tried and litigated only in the state and federal courts
located in the City of San Diego, County of San Diego, State of California or,
at Lender’s option, any court in which Lender determines it is necessary or
appropriate to initiate legal or equitable proceedings in order to exercise,
preserve, protect or defend any of its rights and remedies under the Loan
Documents or otherwise or to exercise, preserve, protect or defend its Lien,
and the priority thereof, against the Collateral, and which has subject matter
jurisdiction over the matter in controversy. 
Borrower waives any right it may have to assert the doctrine of forum
non conveniens or to object to such venue, and consents to any court ordered
relief.  Borrower waives personal service
of process and agrees that a summons and complaint commencing an action or
proceeding in any such court shall be promptly served and shall confer personal
jurisdiction if served by registered or certified mail to Borrower.    The choice of forum set forth herein shall
not be deemed to preclude the enforcement of any judgment obtained in such
forum, or the taking of any action under the Loan Documents to enforce the
same, in any appropriate jurisdiction.

 

3.                                       Notices.  Any notice or communication required or
desired to be served, given or delivered hereunder shall be in the form and
manner specified below, and shall be addressed to the party to be notified as
follows:

 

	
  If to Lender:

  	
  James F. Mosier, Esq.

  General Counsel
  and Secretary

  PICO Holdings, Inc.

  875 Prospect
  Street, Suit 301

  La Jolla, CA
  92037

  Phone:  858.456.6022

  Fax:  858.456.6480

  

 

	
  If to Borrower:

  	
  Randall J.
  Frapart

  Senior Vice
  President and Chief Financial Officer

  Hyperfeed
  Technologies, Inc.

  300 South Wacker
  Drive, #300

  Chicago, IL
  60606

  

 

or to such other address
as each party designates to the other by notice in the manner herein
prescribed.  Notice shall be deemed given
hereunder if (i) delivered personally or otherwise actually received, (ii) sent
by overnight delivery service, (iii) mailed by first-class United States

 

14

 

mail, postage prepaid,
registered or certified, with return receipt requested, or (iv) sent via
telecopy machine with a duplicate signed copy sent on the same day as provided
in clause (ii) above.  Notice mailed
as provided in clause (iii) above shall be effective upon the expiration
of three (3) business days after its deposit in the United States mail,
and notice telecopied as provided in clause (iv) above shall be effective
upon receipt of such telecopy if the duplicate signed copy is sent under clause
(iv) above.  Notice given in any
other manner described in this section shall be effective upon receipt by
the addressee thereof; provided, however, that if any notice is
tendered to an addressee and delivery thereof is refused by such addressee,
such notice shall be effective upon such tender unless expressly set forth in
such notice.

 

4.                                       Lender’s
Rights; Borrower Waivers.  Lender’s
acceptance of partial or delinquent payment from Borrower hereunder, or Lender’s
failure to exercise any right hereunder, shall not constitute a waiver of any
obligation of Borrower hereunder, or any right of Lender hereunder, and shall
not affect in any way the right to require full performance at any time
thereafter.   Borrower waives
presentment, diligence, demand of payment, notice, protest and all other
demands and notices in connection with the delivery, acceptance, performance,
default or enforcement of this Note.  In
any action on this Note, Lender need not produce or file the original of this
Note, but need only file a photocopy of this Note certified by Lender be a true
and correct copy of this Note in all material respects.

 

5.                                       Enforcement
Costs.  Borrower shall pay all
reasonable costs and expenses, including, without limitation, reasonable
attorneys’ fees and expenses Lender expends or incurs in connection with the
enforcement of the Loan Documents, the collection of any sums due thereunder,
any actions for declaratory relief in any way related to the Loan Documents, or
the protection or preservation of any rights of the holder thereunder.

 

6.                                       Severability.  Whenever possible each provision of this Note
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision is prohibited by or invalid under
applicable law, it shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of the provision or the
remaining provisions of this Note.

 

7.                                       Amendment
Provisions.  This Note may not be
amended or modified, nor may any of its terms be waived, except by written
instruments signed by Borrower and Lender.

 

8.                                       Binding
Effect.  This Note shall be binding
upon, and shall inure to the benefit of, Borrower and the holder hereof and
their respective successors and assigns; provided, however, that
Borrower’s rights and obligations shall not be assigned or delegated without
Lender’s prior written consent, given in its sole discretion, and any purported
assignment or delegation without such consent shall be void ab  initio.

 

9.                                       Time
of Essence.  Time is of the essence
of each and every provision of this Note.

 

10.                                 Headings.  Section headings used in this Note have
been set forth herein for convenience of reference only.  Unless the contrary is compelled by the
context, everything contained in each section hereof applies equally to
this entire Note.

 

15

 

[The remainder of this page is intentionally left
blank.]

 

16

 

IN WITNESS WHEREOF, the parties hereto have caused
this Note to be executed as of the date first above written.

 

 

	
   

  	
  BORROWER:

  HYPERFEED TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Randall J. Frapart

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  SVP & CFO

  	
   

  
	
   

  	
   

  
	
   

  	
  LENDER:

  
	
   

  	
  PICO HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Max Webb

  	
   

  
	
   

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  
					

 

 

	
  DEBTOR:

  	
  Hyperfeed
  Technologies, Inc.

  
	
  SECURED PARTY:

  	
  PICO Holdings, Inc.

  

 

EXHIBIT A

 

COLLATERAL DESCRIPTION ATTACHMENT

TO AMENDED AND RESTATED SECURED CONVERTIBLE PROMISSORY NOTE

 

All personal property of Borrower (herein referred to
as “Borrower” or “Debtor”) whether presently existing or hereafter created or
acquired, and wherever located, including, but not limited to:

 

(a)                                  all
accounts (including health-care-insurance receivables), chattel paper
(including tangible and electronic chattel paper), deposit accounts, documents
(including negotiable documents), equipment (including all accessions and
additions thereto), general intangibles (including payment intangibles and
software), goods (including fixtures), instruments (including promissory notes),
inventory (including all goods held for sale or lease or to be furnished under
a contract of service, and including returns and repossessions), investment
property (including securities and securities entitlements), letter of credit
rights, money, and all of Debtor’s books and records with respect to any of the
foregoing, and the computers and equipment containing said books and records;

 

(b)                                 all
common law and statutory copyrights and copyright registrations, applications
for registration, now existing or hereafter arising, in the United States of
America or in any foreign jurisdiction, obtained or to be obtained on or in
connection with any of the forgoing, or any parts thereof or any underlying or
component elements of any of the forgoing, together with the right to copyright
and all rights to renew or extend such copyrights and the right (but not the
obligation) of Secured Party to sue in its own name and/or in the name of the
Debtor for past, present and future infringements of copyright;

 

(c)                                  all
trademarks, service marks, trade names and service names and the goodwill
associated therewith, together with the right to trademark and all rights to
renew or extend such trademarks and the right (but not the obligation) of
Secured Party to sue in its own name and/or in the name of the Debtor for past,
present and future infringements of trademark;

 

(d)                                 all
(i) patents and patent applications filed in the United States Patent and
Trademark Office or any similar office of any foreign jurisdiction, and
interests under patent license agreements, including, without limitation, the
inventions and improvements described and claimed therein, (ii) licenses
pertaining to any 0patent whether Debtor is licensor or  licensee, (iii) income, royalties,
damages, payments, accounts and accounts receivable now or hereafter due and/or
payable under and with respect thereto, including, without limitation, damages
and payments for past, present or future infringements thereof, (iv) right
(but not the obligation) to sue in the name of Debtor and/or in the name of
Secured Party for past, present and future infringements thereof, (v) rights
corresponding thereto throughout the world in all jurisdictions in which such
patents have been issued or applied for, and (vi) reissues, divisions,
continuations, renewals, extensions and continuations-in-part with respect to
any of the foregoing; and

 

(e)                                  any
and all cash proceeds and/or noncash proceeds of any of the foregoing,
including, without limitation, insurance proceeds, and all supporting
obligations and the security therefor or for any right to payment.  All terms above have the meanings given to
them in the California Uniform Commercial Code, as amended or supplemented from
time to time, including revised Division 9 of the Uniform Commercial
Code-Secured Transactions, added by Stats. 1999, c.991 (S.B. 45), Section 35,
operative July 1, 2004.

 

 

EXHIBIT B

Copyrights

 

	
  Description

  	
   

  	
  Registration

  Number

  	
   

  	
  Registration

  Date

  	
   

  
	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT C

Patents

 

	
  Description

  	
   

  	
  Registration/

  Application

  Number

  	
   

  	
  Registration/

  Application

  Date

  	
   

  
	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

EXHIBIT D

Trademarks

 

	
  Description

  	
   

  	
  Registration/

  Application

  Number

  	
   

  	
  Registration/

  Application

  Date

  	
   

  
	
  None

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule of
Exceptions

 

Section G3

 

Borrower is a party to Senior Indebtedness (as defined
in F1) which is secured by Intellectual Property Collateral, among other
things.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00082-of-00352.parquet"}]]