Document:

_

Exhibit 4.3

THESE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED AND MAY NOT BE TRANSFERRED UNTIL (i) A REGISTRATION STATEMENT UNDER THE ACT SHALL HAVE BECOME EFFECTIVE WITH RESPECT THERETO OR (ii) RECEIPT BY THE COMPANY OF AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO THE COMPANY TO THE EFFECT THAT REGISTRATION UNDER THE ACT IS NOT REQUIRED IN CONNECTION WITH SUCH PROPOSED TRANSFER NOR IS IN VIOLATION OF ANY APPLICABLE STATE SECURITIES LAWS. THIS LEGEND SHALL BE ENDORSED UPON ANY SECURITIES ISSUED IN EXCHANGE OR UPON EXERCISE OF THIS WARRANT.

Warrant No. _______

Date of Issuance: March ___, 2008

BAXL HOLDINGS, INC.

Common Stock Purchase Warrant

BAXL Holdings, Inc. (the “Company”), for value received, hereby certifies that ________________, or its registered assigns (the “Registered Holder”), is entitled, subject to the terms set forth below, to purchase from the Company, at any time after the date hereof and on or before the Expiration Date (as defined in Section 5 below), up to __________ shares (as adjusted from time to time pursuant to the provisions of this Warrant) of the Company’s common stock  at an exercise price of $1.88 per share.  The shares issuable upon exercise of this Warrant and the exercise price per share, as adjusted from time to time pursuant to the provisions of this Warrant, are sometimes hereinafter referred to as the “Warrant Stock” and the “Exercise Price,” respectively.

This Warrant is issued pursuant to a Securities Purchase Agreement dated March 5, 2008 between BAXL Holdings, Inc., a wholly owned subsidiary of the Company, and each of the Purchasers (as defined therein) (the “Purchase Agreement”) and is subject to the terms and conditions of the Purchase Agreement.

1.

Exercise.

(a)

Manner of Exercise.  This Warrant may be exercised by the Registered Holder, in whole or in part, by surrendering this Warrant, with the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or by such Registered Holder’s duly authorized attorney, at the principal office of the Company, or at such other office or agency as the Company may designate, accompanied by payment in full of the aggregate Exercise Price payable in respect of the number of shares of Warrant Stock purchased upon such exercise (the “Purchase Price”).  The Purchase Price may be paid by cash, check, wire transfer or 

by the surrender of promissory notes or other instruments representing indebtedness of the Company to the Registered Holder.  

(b)

Effective Time of Exercise.  Each exercise of this Warrant shall be deemed to have been effected immediately prior to the close of business on the day on which this Warrant shall have been surrendered to the Company as provided in Section 1(a) above.  At such time, the person or persons in whose name or names any certificates for Warrant Stock shall be issuable upon such exercise as provided in Section 1(d) below shall be deemed to have become the holder or holders of record of the Warrant Stock to be represented by such certificates.

(c)

Net Issue Exercise.

(i)

In lieu of exercising this Warrant in the manner provided above in Section 1(a), the Registered Holder may elect to receive shares equal to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant at the principal office of the Company together with notice of such election  on the purchase/exercise form appended hereto as Exhibit A duly executed by such Registered Holder or such Registered Holder’s duly authorized attorney, in which event the Company shall issue to such Registered Holder a number of shares of Common Stock computed using the following formula:

X = 

Y (A - B)

      A

Where

X = The number of shares of Common Stock to be issued to the Registered Holder.

Y = The number of shares of Common Stock purchasable under this Warrant (at the date of such calculation).

A = The fair market value of one share of Common Stock (at the date of such calculation).

B = The Exercise Price (as adjusted to the date of such calculation).

(ii)

For purposes of this Section 1(c), the fair market value of one share of Common Stock on the date of calculation shall mean:

(A)

if the Company’s Common Stock is traded on a securities exchange or The Nasdaq Stock Market, the fair market value shall be deemed to be the average of the closing prices over a 30 day period ending three days before the date of calculation; 

(B)

if the Company’s Common Stock is actively traded over-the-counter, the fair market value shall be deemed to be the average of the closing bid or sales price (whichever is applicable) over the 30 day period ending three days before the date of calculation; or

(C)

if neither (A) nor (B) is applicable, the fair market value shall be at the highest price per share which the Company could obtain on the date of calculation 

			
	 
	-2-

	 

from a willing buyer (not a current employee or director) for shares of Common Stock sold by the Company, from authorized but unissued shares, as determined in good faith by the Board of Directors, unless the Company is at such time subject to an acquisition as described in Section 5(b) below, in which case the fair market value per share of Common Stock shall be deemed to be the value of the consideration per share received by the holders of such stock pursuant to such acquisition.

(d)

Delivery to Registered Holder.  As soon as practicable after the exercise of this Warrant in whole or in part, and in any event within ten days thereafter, the Company at its expense will cause to be issued in the name of, and delivered to, the Registered Holder, or as such Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct:

(i)

a certificate or certificates for the number of shares of Warrant Stock to which such Registered Holder shall be entitled, and 

(ii)

in case such exercise is in part only, a new warrant or warrants (dated the date hereof) of like tenor and with the same date, calling in the aggregate on the face or faces thereof for the number of shares of Warrant Stock equal (without giving effect to any adjustment thereof) to the number of such shares called for on the face of this Warrant minus the number of such shares purchased by the Registered Holder upon such exercise as provided in Section 1(a) above (without giving effect to any adjustment thereof).

2.

Adjustments.

(a)

Stock Splits and Dividends.  If outstanding shares of the Company’s Common Stock shall be subdivided into a greater number of shares or a dividend in Common Stock shall be paid in respect of Common Stock, the Exercise Price in effect immediately prior to such subdivision or at the record date of such dividend shall simultaneously with the effectiveness of such subdivision or immediately after the record date of such dividend be proportionately reduced.  If outstanding shares of Common Stock shall be combined into a smaller number of shares, the Exercise Price in effect immediately prior to such combination shall, simultaneously with the effectiveness of such combination, be proportionately increased.  When any adjustment is required to be made in the Exercise Price, the number of shares of Warrant Stock purchasable upon the exercise of this Warrant shall be changed to the number determined by dividing (i) an amount equal to the number of shares issuable upon the exercise of this Warrant immediately prior to such adjustment, multiplied by the Exercise Price in effect immediately prior to such adjustment, by (ii) the Exercise Price in effect immediately after such adjustment.

(b)

Reclassification, Etc.  In case of any reclassification or change of the outstanding securities of the Company (or any other corporation the stock or securities of which are at the time receivable upon the exercise of this Warrant) or any similar corporate reorganization on or after the date hereof, then and in each such case the holder of this Warrant, upon the exercise hereof at any time after the consummation of such reclassification, change, reorganization, merger or conveyance, shall be entitled to receive, in lieu of the stock or other securities and property receivable upon the exercise hereof prior to such consummation, the stock or other securities or property to which such holder would have been entitled upon such 

			
	 
	-3-

	 

consummation if such holder had exercised this Warrant immediately prior thereto, all subject to further adjustment as provided in Section 2(a); and in each such case, the terms of this Section 2 shall be applicable to the shares of stock or other securities properly receivable upon the exercise of this Warrant after such consummation.

(c)

Adjustment Certificate.  When any adjustment is required to be made in the Warrant Stock or the Exercise Price pursuant to this Section 2, the Company shall promptly mail to the Registered Holder a certificate setting forth (i) a brief statement of the facts requiring such adjustment, (ii) the Exercise Price after such adjustment and (iii) the kind and amount of stock or other securities or property into which this Warrant shall be exercisable after such adjustment.

3.

Transfers.

(a)

Unregistered Security.  Each holder of this Warrant acknowledges that this Warrant and the Warrant Stock have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), and agrees not to sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this Warrant or any Warrant Stock issued upon its exercise in the absence of (i) an effective registration statement under the Securities Act as to this Warrant or such Warrant Stock and registration or qualification of this Warrant or such Warrant Stock under any applicable U.S. federal or state securities law then in effect or (ii) an opinion of counsel to the transferor, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of the Purchase Agreement and the Warrant.  Each certificate or other instrument for Warrant Stock issued upon the exercise of this Warrant shall bear a legend substantially to the foregoing effect. 

(b)

Transferability.  Subject to the provisions of Section 3(a) hereof, this Warrant and all rights hereunder are transferable, in whole or in part, upon surrender of the Warrant with a properly executed assignment (in the form of Exhibit B hereto) at the principal office of the Company.

(c)

Warrant Register.  The Company will maintain or will have maintained a register containing the names and addresses of the Registered Holders of this Warrant.  Until any transfer of this Warrant is made in the warrant register, the Company may treat the Registered Holder of this Warrant as the absolute owner hereof for all purposes; provided, however, that if this Warrant is properly assigned in blank, the Company may (but shall not be required to) treat the bearer hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.  Any Registered Holder may change such Registered Holder’s address as shown on the warrant register by written notice to the Company requesting such change.

4.

No Impairment.  The Company will not, by amendment of its charter or through reorganization, consolidation, merger, dissolution, sale of assets or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such action as may be necessary or appropriate in order to protect the rights of the holder of this Warrant against impairment.

			
	 
	-4-

	 

5.

Termination.  This Warrant (and the right to purchase securities upon exercise hereof) shall terminate upon the earliest to occur of the following (the “Expiration Date”): (a) March ___, 2013, or (b) the sale, conveyance or disposal of all or substantially all of the Company’s property or business or the Company’s merger with or into or consolidation with any other corporation (other than a wholly-owned subsidiary of the Company) or any other transaction or series of related transactions in which more than 50% of the voting power of the Company is disposed of, provided that this Section 5(b) shall not apply to a merger effected exclusively for the purpose of changing the domicile of the Company or to an equity financing in which the Company is the surviving corporation.

6.

Notices of Certain Transactions.  In case:

(a)

the Company shall set a record date for the holders of its Common Stock (or other stock or securities at the time deliverable upon the exercise of this Warrant) for the purpose of entitling or enabling them to receive any dividend or other distribution, or to receive any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right, or

(b)

of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or merger of the Company with or into another corporation (other than a consolidation or merger in which the Company is the surviving entity), or any transfer of all or substantially all of the assets of the Company, or 

(c)

of the voluntary or involuntary dissolution, liquidation or winding-up of the Company,

then, and in each such case, subject to compliance with applicable laws, the Company will mail or cause to be mailed to the Registered Holder of this Warrant a notice specifying, as the case may be, (i) the record date for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or (ii) the effective date on which such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up is to take place, and the time, if any is to be fixed, as of which the holders of record of Common Stock (or such other stock or securities at the time deliverable upon such reorganization, reclassification, consolidation, merger, transfer, dissolution, liquidation or winding-up) are to be determined.  Such notice shall be mailed at least ten days prior to the record date or effective date for the event specified in such notice.

7.

Reservation of Stock.  The Company will at all times reserve and keep available, solely for the issuance and delivery upon the exercise of this Warrant, such shares of Warrant Stock and other stock, securities and property, as from time to time shall be issuable upon the exercise of this Warrant.

8.

Exchange of Warrants.  Upon the surrender by the Registered Holder of any Warrant or Warrants, properly endorsed, to the Company at the principal office of the Company, the Company will, subject to the provisions of Section 3 hereof, issue and deliver to or upon the order of such Registered Holder, at the Company’s expense, a new Warrant or Warrants of like tenor, in the name of such Registered Holder or as such Registered Holder (upon payment by such Registered Holder of any applicable transfer taxes) may direct, calling in the aggregate on 

			
	 
	-5-

	 

the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant or Warrants so surrendered.

9.

Replacement of Warrants.  Upon receipt of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and (in the case of loss, theft or destruction) upon delivery of an indemnity agreement (with surety if reasonably required) in an amount reasonably satisfactory to the Company, or (in the case of mutilation) upon surrender and cancellation of this Warrant, the Company will issue, in lieu thereof, a new Warrant of like tenor.

10.

No Rights as Stockholder.  Until the exercise of this Warrant, the Registered Holder of this Warrant shall not have or exercise any rights by virtue hereof as a stockholder of the Company.

11.

No Fractional Shares.  No fractional shares of Common Stock will be issued in connection with any exercise hereunder.  In lieu of any fractional shares which would otherwise be issuable, the Company shall pay cash equal to the product of such fraction multiplied by the fair market value of one share of Common Stock on the date of exercise, as determined in good faith by the Company’s Board of Directors.

12.

Amendment or Waiver. Any term of this Warrant may be amended or waived upon written consent of the Company and the holders of at least a majority of the Common Stock issuable upon exercise of outstanding warrants purchased pursuant to the Purchase Agreement.  By acceptance hereof, the Registered Holder acknowledges that in the event the required consent is obtained, any term of this Warrant may be amended or waived with or without the consent of the Registered Holder; provided, however, that any amendment hereof that would materially adversely affect the Registered Holder in a manner different from the holders of the remaining warrants issued pursuant to the Purchase Agreement shall also require the consent of Registered Holder.

13.

Headings.  The headings in this Warrant are used for convenience only and are not to be considered in construing or interpreting any provision of this Warrant.

14.

Governing Law.  This Warrant shall be governed, construed and interpreted in accordance with the laws of the State of California, without giving effect to principles of conflicts of law.

15.

Successors and Assigns.  Unless otherwise provided in this Warrant, the terms and conditions of this Warrant shall inure to the benefit of and be binding upon the permitted successors and assigns of the parties.  Nothing in this Warrant, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and assigns any rights, remedies, obligations, or liabilities under or by reason of this Warrant, except as expressly provided in this Warrant.

16.

Counterparts.  This Warrant may be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

			
	 
	-6-

	 

17.

Severability.  If one or more provisions of this Warrant are held to be unenforceable under applicable law, such provision shall be excluded from this Warrant, the balance of this Warrant shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms.

18.

Delays or Omissions.  No delay or omission to exercise any right, power or remedy accruing to any party under this Warrant, upon any breach or default of any other party under this Warrant, shall impair any such right, power or remedy of such non-breaching or non-defaulting party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.  Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Warrant, or any waiver on the part of any party of any provisions or conditions of this Warrant, must be in writing and shall be effective only to the extent specifically set forth in such writing.  All remedies, either under this Warrant or by law or otherwise afforded to any party, shall be cumulative and not alternative.

19.

Notices.  Unless otherwise provided herein, any notice required or permitted by this Warrant shall be in writing and shall be deemed sufficient upon delivery, when delivered personally or by overnight courier or sent by facsimile, or 48 hours after being deposited in the U.S. mail, as certified or registered mail, with postage prepaid, addressed to the party to be notified at such party’s address as set forth on the signature page, or as subsequently modified by written notice.

			
	         

	BAXL HOLDINGS, INC.

	 
	 
	  

	 
	 
	 

	 
	By:

	/s/ Gus Bottazzi

	 
	 
	Gus Bottazzi

Chief Executive Officer

	 
	 

	 
	 
	 

	Address:

	6 Berkshire Blvd.

	 
	 
	Bethel, CT 06801

	 
	 
	 

	Facsimile  Number:  

	203-730-1797

			
	 
	-7-

	 

EXHIBIT A

PURCHASE/EXERCISE FORM

To:

BAXL Holdings, Inc.

Dated:

The undersigned, pursuant to the provisions set forth in the attached Warrant No. __, hereby irrevocably elects to (a) purchase _____ shares of the Common Stock covered by such Warrant and herewith makes payment of $ _________, representing the full purchase price for such shares at the price per share provided for in such Warrant, or (b) exercise such Warrant for _______ shares purchasable under the Warrant pursuant to the Net Issue Exercise provisions of Section 1(c) of such Warrant.

The undersigned acknowledges that it has reviewed the representations and warranties contained in Section 4 of the Purchase Agreement (as defined in the Warrant) and by its signature below hereby makes such representations and warranties to the Company. Defined terms contained in such representations and warranties shall have the meanings assigned to them in the Purchase Agreement, provided that the term “Purchaser” shall refer to the undersigned and the term “Securities” shall refer to the Warrant Stock.

					
	 
	 
	 
	Signature:

	 

	 
	 
	 
	Name (print):

	 

	 
	 
	 
	Title (if applic.):

	 

	 
	 
	 
	Company (if applic.):

	 

			
	 
	 
	 

EXHIBIT B

ASSIGNMENT FORM

FOR VALUE RECEIVED, _________________________________________ hereby sells, assigns and transfers all of the rights of the undersigned under the attached Warrant with respect to the number of shares of Common Stock covered thereby set forth below, to:

			
	Name of Assignee

	Address/Fax Number

	No. of Shares

					
	Dated:

	 
	 
	Signature:

	 

	 
	 
	 
	Witness:Exhibit 4.4

Exhibit 4.4

INTERCREDITOR AND SUBORDINATION AGREEMENT

This Intercreditor and Subordination Agreement effective as of the 5th day of March, 2008, (this “Subordination Agreement”) is entered into among  BAXL Technologies, Inc., a Delaware corporation (“Debtor”), and (i) each entity identified on the signature pages hereof which is a holder of the Debtor’s 10% Amended and Restated Senior Bridge Notes (each, in such capacity, an “Existing Secured Party”, and collectively, the “Existing Secured Parties”), and (ii) each entity identified on the signature pages hereof which is a holder of the Company’s 9% Senior Secured Convertible Promissory Notes (each, in such capacity, a “New Secured Party”, and collectively, the “New Secured Parties”). The Existing Secured Parties and the New Secured Parties are herein individually referred to as a “Secured Party” and collectively referred to as the “Secured Parties.”  

INTRODUCTION

Debtor issued to the Existing Secured Parties between October 12, 2005 and July 19, 2006, 10% Senior Bridge Conversion Notes in the aggregate principal amount of $2,500,000.  On August 10, 2006, each of such 10% Senior Bridge Conversion Notes were amended and restated as of its respective original date of issuance as 10% Amended and Restated Senior Bridge Notes in the aggregated principal amount of $2,500,000 due January 1, 2009 (individually an “Existing Note” and collectively, the “Existing Notes”).  The Existing Notes are secured by an Amended and Restated Security Agreement with the Existing Secured Parties (the “Existing Security Agreement”). 

From time to time following the date hereof, Debtor will issue 9% Senior Convertible Promissory Notes in an aggregate principal amount of up to $4,000,000 with a due date as defined therein (individually a “New Bridge Note” and collectively the “New Bridge Notes” and, together with the Existing Notes, the “Notes”).  In connection therewith, the New Secured Parties and the Debtor will enter into a Security Agreement (the “New Security Agreement” and, together with the Existing Security Agreement, the “Security Agreements”) the parties hereto desire to enter into this Intercreditor and Subordination Agreement to provide for, among other things, the subordination of the principal and accrued interest (including post-default interest) on the Existing Notes to the New Notes and to further provide for the intercreditor relationship among the Secured Parties.

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:

Section 1. Intercreditor Agreements.  The New Notes are being issued in the aggregate principal amount of up to $4,000,000 on or following the date hereof and each New Note does and will contain the same terms and conditions.  Notwithstanding Section 1 of each of the Existing Notes, the indebtedness evidenced by each of the Existing Notes shall be subordinated to the indebtedness evidenced by each of the New Notes and the New Notes shall be senior in right of payment to any and all other indebtedness of Debtor (including but not limited to the Existing Notes). Upon the repayment or conversion of the New Notes in accordance with the terms thereof, the Existing Notes will remain outstanding and shall be senior in right of payment to any and all indebtedness of Debtor.  

Section 2.  Subordination of the Existing Notes. The Existing Secured Parties hereby consent to Debtor issuing the New Notes and granting to the New Secured Parties a security interest in the Collateral (as defined in the Security Agreements). All obligations for the payment of principal and accrued interest (including post-default interest) on the Existing Notes and any other obligations with respect to the Existing Notes or under the Existing Security Agreement (the “Subordinated Obligations”) are  hereby  subordinated and subject to any and all obligations for the payment of the principal and accrued interest (including post-default interest) on the New Notes (the “Senior Obligations”). This Section 2 constitutes a continuing irrevocable subordination agreement which shall remain effective until (i) all of the Senior Obligations on the New Notes have been repaid in full, or (ii) all outstanding New Notes have been converted in their entirety to equity securities and all accrued and unpaid interest on the New Notes have been paid in full.  

1

Section 3.  Secured Party Obligations.  So long as any of the Senior Obligations remain unpaid, in whole or in part, each Existing Secured Party agrees: (i) not to collect, or to receive payment upon, by setoff or in any other manner, all or any portion of the Subordinated Obligations; (ii) not to sell, assign, transfer, pledge, or give a security interest in the Subordinated Obligations (except expressly pursuant to the Existing Security Agreement); (iii) not to enforce or apply, or take any steps to  enforce or apply, any security,  including  any of the Collateral, now or hereafter existing, for the Subordinated Obligations; (iv) not to  commence, prosecute  or  participate  in any  administrative,  legal or equitable action against Debtor or in any  administrative,  legal or equitable action  regarding the Subordinated Obligations that might adversely  affect Debtor; (v)  not to join in any  petition  for  bankruptcy, assignment for the benefit of creditors,  or creditors'  agreement  based on the Subordinated  Obligations; and (vi) except for the liens  granted by the Security Agreements, not to take any lien or security on any of Debtor’s property, real or personal to secure the Subordinated Obligations. 

Section 4. Priority of Payment. All of the Senior Obligations now or hereafter existing shall be first paid by Debtor before any payment shall be made by Debtor on the Subordinated Obligations.  This priority of payment shall apply at all times until all of the Senior Obligations have been repaid in full or converted to equity securities, and in the event of any assignment by Debtor for the benefit of the Debtor’s creditors, of any bankruptcy proceedings instituted by or against Debtor, of the appointment of any receiver for Debtor or Debtor’s business or assets,  or of any dissolution or other winding up of the affairs of Debtor or of Debtor's  business, the officers of Debtor and any  assignee, trustee in  bankruptcy, receiver, and other person or persons in charge, are hereby directed to pay to the New Secured Parties the full amount of the  Senior Obligations  before  making  any  payments on the Subordinated Obligations.

Section 5. Application of Proceeds Under the Security Agreements. Notwithstanding anything to the contrary contained in the Security Agreements, the Secured Parties agree that all proceeds realized from the Collateral under the Security Agreements shall be applied as follows:

 

(i)

first, to all obligations to the New Secured Parties for principal and accrued interest (including post-default interest) under the New Notes on a pari passu basis;

(ii)

second, to other now existing or hereafter arising obligations under the New Notes and the New Security Agreement, on a pari passu basis, including any extensions, modifications, substitutions, amendments and renewals of such obligations, whether for fees, expenses, indemnification, or otherwise in connection therewith;

(iii)

third, to all obligations to the Existing Secured Parties for principal and accrued interest (including post-default interest) under the Existing Notes on a pari passu basis; and

(iv)

fourth, to other now existing or hereafter arising obligations under the Existing Notes and the Existing Security Agreement, on a pari passu basis, including any extensions, modifications, substitutions, amendments and renewals of such obligations, whether for fees, expenses, indemnification, or otherwise in connection therewith.  

2

Section 6.  Miscellaneous.

The Agent    

(a)

Appointment.  Notwithstanding anything contained herein to the contrary, each Secured Party hereby irrevocably designates and appoints Edward H. Arnold (“Arnold”) and Barry Rubenstein, the representative of Wheatley Partners III, LLC, the general partner of Wheatley Partners III, LP,   (“Wheatley”, and together with Arnold, the “Agent”) as the Agent of such Secured Party under the Security Agreements and this Intercreditor and Subordination Agreement and each such Secured Party hereby irrevocably authorizes Arnold and Wheatley, collectively, as the Agent for such Secured Party, to take such action on its behalf as the Agent deems necessary or appropriate to enforce the rights of the Secured Parties under the provisions of the Security Agreements and to exercise such powers and perform such duties as are expressly delegated to the Agent by the terms hereof, together with such other powers as are reasonably incidental thereto.  Agent agrees to perform its duties and responsibilities in accordance with what it reasonably believes to be in the collective best interests of the Secured Parties, provided that each Secured Party agrees that the Agent shall not have any duties or responsibilities, except those expressly set forth herein, or any fiduciary relationship with any Secured Party, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into the Security Agreements or the Subordination Agreement or otherwise exist against the Agent.

(b)

Exculpatory Provisions.  Neither of the Agents nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates shall be liable for any action lawfully taken or omitted to be taken by it or such person under or in connection herewith (except for its own gross negligence or willful misconduct).  The Agent shall not be under any liability or responsibility whatsoever, as Agent, to any person as a consequence of any failure or delay in performance, or any breach, by any Secured Party of any of its obligations under the Security Agreements or this Intercreditor and Subordination Agreement.

    

(c)

Reliance by Agent.  The Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, resolution, notice, consent, certificate, affidavit, opinion, letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or other document or conversation reasonably believed by it to be genuine and correct and to have been signed, sent or made by the proper person or persons and upon advice and statements of legal counsel (including, without limitation, counsel to any Secured Party or the Debtor), independent accountants and other experts selected by the Agent.  The Agent may treat each Secured Party as the holder of all of the interests of such Secured Party in the Notes and the Security Agreements until written notice of transfer, signed by such Secured Party in form and substance satisfactory to the Agent, shall have been filed with the Agent.  The Agent shall not be under any duty to examine or pass upon the validity, effectiveness or genuineness of the Notes or any instrument, document or communication furnished pursuant thereto or in connection therewith, and the Agent shall be entitled to assume that the same are valid, effective and genuine, have been signed or sent by the proper parties and are what they purport to be.  The Agent shall be fully justified in failing or refusing to take any action under the Security Agreements or this Intercreditor and Subordination Agreement unless it shall first receive such advice or concurrence of the Secured Party as it deems appropriate.  The Agent shall in all cases be fully protected in acting, or in refraining from acting, hereunder in accordance with a request or direction of the Secured Party, and such request or direction and any action taken or failure to act pursuant thereto shall be binding upon the Secured Party and all future holders of the Notes.

    

(d)

Notice of Default.  The Agent shall not be deemed to have knowledge or notice of the occurrence of any default or Event of Default (as defined in the Security Agreements) unless the (i) Agent has received written notice thereof from a Secured Party or the Debtor, or (ii) the Agent shall have actual knowledge of such occurrence.  Upon a default or Event of Default of which the Agent has knowledge or notice, the Agent may take such action, or refrain from taking such action, with respect to such default or Event of Default as it shall deem to be in the best interests of the Secured Parties, in the Agent’s sole discretion.

(e)

Indemnification.  Each Secured Party agrees to indemnify and reimburse the Agent in its capacity as such (to the extent not promptly reimbursed by the Debtor), pro rata according to the proportion of the aggregate outstanding principal balance of its Notes to the aggregate outstanding principal balance of all Notes, from and against any and all liabilities, obligations, claims, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever including, without limitation, any amounts paid to the Secured Party (through the Agent) by the Debtor pursuant to the terms of the Notes, that are subsequently rescinded or avoided, or must otherwise be restored or returned) which may at any time (including, without limitation, at any time following the payment of the Notes) be imposed on, incurred by or asserted against the Agent in any way relating to or arising out of the Notes, the 

3

Security Agreements, this Intercreditor and Subordination Agreement or any other documents contemplated by or referred to therein or the transactions contemplated thereby or any action taken or omitted to be taken by the Agent under or in connection with any of the foregoing; provided, however, that no Secured Party shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements to the extent resulting solely from the gross negligence or willful misconduct of the Agent.  The agreements in this Section shall survive the payment of all amounts payable under the Notes.

(f)

Co-Agency.  Any actions authorized or within the powers or rights conferred upon the Agent by this agreement shall require the consent of each of Arnold and Wheatley in order for such action to be valid and binding.

(g)

Severability.   If any provision of this Subordination Agreement is rendered or declared illegal or unenforceable by reason of any existing or subsequently enacted legislation or by decree of a court of last resort, Debtor and the Secured Parties shall promptly meet and negotiate substitute provisions for those rendered or declared illegal or unenforceable, but all of the remaining provisions of this Intercreditor and Subordination Agreement shall remain in full force and effect.

(h)

Binding Effect and Assignment.   This Intercreditor and Subordination Agreement shall be binding upon and inure to the benefit of Debtor and Secured Parties and their respective permitted successors and assigns; but neither this Subordination Agreement nor any of the rights, benefits or obligations thereunder shall be assigned, by operation of law or otherwise, by Debtor without the prior written consent of a majority in interest of the Secured Parties.  Nothing in this Intercreditor and Subordination Agreement express or implied, is intended to confer upon any person or entity other than Debtor and Secured Parties and their respective permitted successors and assigns, any rights, benefits or obligations thereunder. 

(i)

Section Captions.  Section captions used in this Intercreditor and Subordination Agreement are for convenience of reference only, and shall not affect the construction of this Subordination Agreement.

(j)

Notices.  Any notice hereunder shall be in writing, and if given by hand delivery, telegram, telefax, or telex, shall be deemed to have been given when sent and, if mailed, shall be deemed to have been given three (3) business days after the date when sent, if sent by registered or certified mail, postage prepaid, and addressed as follows (or such other address for which all parties listed below have been notified):

If to Debtor:

BAXL Technologies, Inc.

Attn: Gus Bottazzi, CEO

6 Berkshire Boulevard

Bethel, Connecticut 06801

Telecopier: (203) 730-1797

If to the Secured Parties:

To the address provided on the signature page to this Subordination Agreement. 

(k)

Governing Law.  The provisions of this Subordination Agreement shall be governed by and construed in accordance with the laws of the State of New York.

(l)

No Oral Agreements.  This Subordination Agreement, in conjunction with the Notes and Security Agreements, represent the final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements of the parties.  There are no unwritten oral agreements between the parties.

4

IN WITNESS WHEREOF, the parties duly executed and delivered this Security Agreement as of the date first written above.

			
	 
	DEBTOR:

	 
	 

	         

	BAXL TECHNOLOGIES, INC.

	 
	 
	 

	 
	By:  

	/s/ Gus Bottazzi

	 
	 
	Gus Bottazzi

Chief Executive Officer

	 
	 

			
	 
	EXISTING SECURED PARTIES:

	 
	 

	         

	GUS BOTTAZZI

	 
	 
	 

	 
	By:  

	/s/ Gus Bottazzi

	 
	 
	Gus Bottazzi

22 Ocean View Drive 

Stamford, CT 06902

	 
	 

			
	         

	EDWARD H. ARNOLD

	 
	 
	 

	 
	By:  

	/s/ Edward H. Arnold

	 
	 
	Edward H. Arnold

815 Tudor Lane

Lebanon, PA 17042

	 
	 

			
	         

	DANIEL OCH

	 
	 
	 

	 
	By:  

	/s/ Daniel Och 

	 
	 
	Daniel Och

c/o Oz Capital

9 West 57th Street

39th Floor 

New York, NY 10019

	 
	 

			
	         

	TW8701 OPPORTUNITY FUND

	 
	 
	 

	 
	By:  

	/s/ TW8701 Opportunity Fund

	 
	 
	

c/o James Palmer

Legend Merchant Group

201 Mission St. 

2nd Floor 

San Francisco, CA 94105

	 
	 

5

			
	         

	MICHAEL JACOBSEN

	 
	 
	 

	 
	By:  

	/s/ Michael Jacobsen

	 
	 
	Michael Jacobsen

1474 Edgewood Dr.

Palo Alto, CA 94301

	 
	 

			
	         

	WHEATLEY PARTNERS, L.P.

	 
	 
	 

	 
	By:  

	/s/ Wheatley Partners, L.P.

	 
	 
	

80 Cuttermill Road

Suite 302

Great Neck, NY 11021

	 
	 

			
	         

	WHEATLEY PARTNERS II, L.P.

	 
	 
	 

	 
	By:  

	/s/ Wheatley Partners II, L.P.

	 
	 
	

80 Cuttermill Road

Suite 302

Great Neck, NY 11021

	 
	 

			
	         

	WHEATLEY PARTNERS III, L.P.

	 
	 
	 

	 
	By:  

	/s/ Wheatley Partners III, L.P.

	 
	 
	

80 Cuttermill Road

Suite 302

Great Neck, NY 11021

	 
	 

			
	         

	WHEATLEY FOREIGN PARTNERS, L.P.

	 
	 
	 

	 
	By:  

	/s/ Wheatley Foreign Partners, L.P.

	 
	 
	

80 Cuttermill Road

Suite 302

Great Neck, NY 11021

	 
	 

			
	         

	WHEATLEY FOREIGN PARTNERS III, L.P.

	 
	 
	 

	 
	By:  

	/s/ Wheatley Foreign Partners III, L.P.

	 
	 
	

80 Cuttermill Road

Suite 302

Great Neck, NY 11021

	 
	 

6

			
	         

	WHEATLEY ASSOCIATES III, L.P.

	 
	 
	 

	 
	By:  

	/s/ Wheatley Associates III, L.P.

	 
	 
	

80 Cuttermill Road

Suite 302

Great Neck, NY 11021

	 
	 

			
	         

	JOHN I. ROSE

	 
	 
	 

	 
	By:  

	/s/ John I. Rose

	 
	 
	John I. Rose

100 Warwick Road

Bronxville, NY 10708

	 
	 

			
	         

	NEW SECURED PARTIES:

	 
	 
	 

	 
	  

	 

	 
	 
	

	 
	 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00138-of-00352.parquet"}]]