Document:

EXHIBIT
10.35

AMENDED
AND RESTATED SECURITY AGREEMENT

This
Amended and Restated Security Agreement (the “Security
Agreement”), dated
as of March 16, 2005, is by and among Solomon Technologies, Inc., a Delaware
corporation (the “Debtor”),
Woodlaken, LLC, a Connecticut limited liability company (“Woodlaken”),
Jezebel Management Corporation, a Florida corporation (“Jezebel”) and
the other investors listed on Schedule A hereto (each of Woodlaken, Jezebel and
such other investors being referred to herein individually as a “Secured
Party” and
collectively as the “Secured
Parties”).

Background

	1.  	
      Woodlaken
      purchased a promissory note dated March 7, 2005 in the aggregate original
      principal amount of $40,000 issued by the Debtor (the “Woodlaken
      Note”).

	2.  	
      To
      induce Woodlaken to purchase the Woodlaken Note, the Debtor and Woodlaken
      entered into a Security Agreement dated as of March 7, 2005 (the
      “Orignal
      Agreement”)
      to provide Woodlaken with a first priority security interest in its assets
      under the terms and conditions set forth in the Security
      Agreement.

	3.  	
      Jezebel
      purchased a promissory note dated March 16, 2005 in the aggregate original
      principal amount of $100,000 issued by the Debtor on the same terms as the
      Woodlaken Note (the “Jezebel
      Note”
      and, together with the Woodlaken Note, the “Notes”).

	4.  	
      To
      induce Jezebel to purchase the Jezebel Note, the Debtor agreed to amend
      and restate the Security Agreement to include Jezebel as a secured party
      under the Security Agreement.

	5.  	
      The
      Debtor, Woodlaken and Jezebel wish to permit the Debtor to issue
      additional promissory notes having substantially the same principal terms
      as the Notes in a maximum aggregate principal amount of up to $110,000,
      and to amend the Security Agreement to enable the Debtor to add the
      purchasers of such promissory notes as additional Secured
      Parties.

N O W, T
H E R E F O R E ,

In
consideration of the premises and the mutual covenants and agreements herein set
forth, and in order to induce the Secured Parties to purchase the Notes, the
Debtor hereby agrees with the Secured Parties that the Original Agreement is
amended and restated in its entirety as follows:

 

Section
1. Grant
of Security Interest. The
Debtor hereby grants to the Secured Parties, on the terms and conditions
hereinafter set forth, a first priority security interest in the collateral
hereinafter identified (the “Collateral”).

Section
2. Collateral. The
Collateral is all tangible and intangible assets of the Debtor of whatever kind
and nature (including without limitation all accounts, chattel paper, commercial
tort claims, documents, equipment, farm products, general intangibles,
instruments, inventory, investment property, patents, trademarks tradenames,
copyrights and all other intellectual property and the stock of all of Debtor’s
subsidiaries), in each case whether now owned or hereafter acquired and wherever
located, and all proceeds thereof, together with all proceeds, products,
replacements and renewals thereof.

Section
3. Representations
and Warranties; Covenants. The
Debtor hereby warrants and covenants as follows:

	(a)  	
      The
      Debtor has title to the Collateral free from any lien, security interest,
      encumbrance or claim.

	(b)  	
      The
      Debtor will maintain the Collateral so as to preserve its
      value.

	(c)  	
      The
      Debtor is a corporation duly organized, validly existing and in good
      standing under the laws of the State of Delaware.

	(d)  	
      The
      Debtor will pay when due all existing or future charges, liens, or
      encumbrances on the Collateral, and will pay when due all taxes and
      assessments now or hereafter imposed on or affecting it unless such taxes
      or assessments are diligently contested by the Debtor in good faith and
      reasonable reserves are established therefor.

	(e)  	
      All
      information with respect to the Notes and the Collateral and account
      debtors set forth in any schedule, certificate or other writing at any
      time heretofore or hereafter furnished by the Debtor to the Secured
      Parties, and all other written information heretofore or hereafter
      furnished by the Debtor to the Secured Parties, is or will be true and
      correct in all material respects, as of the date
  furnished.

	(f)  	
      As
      soon as practicable following the date of execution of this Security
      Agreement, the Debtor will prepare, execute and file in Delaware an
      amendment on Form UCC-3 to the UCC-1 Financing Statement covering all
      Collateral filed in connection with the Original Agreement, which
      amendment shall add Jezebel as a secured party thereunder. As soon as
      practicable following any amendment of this Security Agreement to add one
      or more Secured Parties in the manner set forth in Section 20 below, the
      Debtor will prepare, execute and file in Delaware an amendment on Form
      UCC-3 to the UCC-1 Financing Statement naming such additional Secured
      Parties as additional secured parties thereunder.

 

 

2

 

 

	(g)  	
      The
      Debtor will maintain accurate records concerning the Collateral. Such
      records will be of such character as to enable the Secured Parties or
      their representatives to determine at any time the status
      thereof.

	(h)  	
      The
      Debtor will permit the Secured Parties and their representatives at any
      reasonable time to inspect any and all of the Collateral, and to inspect,
      audit and make copies of and extracts from all records and all other
      papers in possession of the Debtor pertaining to the Notes and the
      Collateral.

Section
4. Disposition
of Collateral in Ordinary Course. Nothing
herein shall prevent the Debtor from selling, trading in, or replacing any of
the Collateral in the ordinary course of its business.

Section
5. Secured
Parties May Perform. Upon the
occurrence of an “event of default” under the Notes, at the election of the
Secured Parties holding a majority of the aggregate principal amount of Notes
then outstanding (the “Majority
Holders”), the
Secured Parties may discharge taxes, liens or security interests, or other
encumbrances at any time hereafter levied or placed on the Collateral; and may
pay for the maintenance and preservation of the Collateral. Until default, the
Debtor may have possession of the Collateral and use it in any lawful manner not
inconsistent with this Security Agreement.

Section
6. Obligations
Secured; Certain Remedies. This
Security Agreement secures the payment and performance of all obligations of the
Debtor to the Secured Parties under the Notes, whether now existing or hereafter
arising and whether for principal, interest, costs, fees or otherwise
(collectively, the “Obligations”). Upon
the occurrence of an event of default under the Notes, the Majority Holders may,
on behalf of all of the Secured Parties, declare all obligations secured hereby
immediately due and payable and may exercise the remedies of a secured party
under the Uniform Commercial Code. Without limiting the foregoing, the Majority
Holders may require the Debtor to assemble the Collateral and make it available
to the Secured Parties at a place to be designated by the Majority Holders that
is reasonably convenient to all parties or to execute appropriate documents of
assignment, transfer and conveyance, in each case, in order to permit the
Secured Parties to take possession of and title to the Collateral. Unless the
Collateral is perishable or threatens to decline rapidly in value or is of a
type customarily sold on a recognized market, the Majority Holders will give the
Debtor reasonable notice of the time and place of any public sale thereof or of
the time after which any private sale or any other intended disposition thereof
is to be made. The requirements of reasonable notice shall be met if such notice
is mailed to the Debtor via registered or certified mail, postage prepaid, at
least fifteen (15) days before the time of sale or disposition. Expenses of
retaking, holding, preparing for sale, selling or the like, shall include the
Secured Parties’ reasonable attorneys’ fees and legal expenses.

3

 

Section
7. Debtor
Remains Liable.
Anything herein to the contrary notwithstanding:

	(a)  	
      Notwithstanding
      the exercise of any remedy available to the Secured Parties hereunder or
      at law in connection with an event of default, the Debtor shall remain
      liable to repay the balance, if any, remaining unpaid and outstanding
      under the Notes after the value or proceeds received by the Secured
      Parties in connection with such remedy is subtracted. The Secured Parties
      shall promptly deliver and pay over to the Debtor any portion of the value
      or proceeds received in connection with such remedy that remains after the
      unpaid and outstanding portion of the Notes is paid in
    full.

	(b)  	
      The
      Debtor shall remain liable under the contracts and agreements included in
      the Collateral to the extent set forth therein, and shall perform all of
      its duties and obligations under such contracts and agreements to the same
      extent as if this Security Agreement had not been
  executed;

	(c)  	
      The
      exercise by the Secured Parties of any of their rights hereunder shall not
      release the Debtor from any of its duties or obligations under any such
      contracts or agreements included in the Collateral;
and

	(d)  	
      The
      Secured Parties shall not have any obligation or liability under any such
      contracts or agreements included in the Collateral by reason of this
      Security Agreement, nor shall the Secured Parties be obligated to perform
      any of the obligations or duties of the Debtor thereunder or to take any
      action to collect or enforce any claim for payment assigned
      hereunder.

Section
8. Security
Interest Absolute. All
rights of the Secured Parties and the security interests granted to the Secured
Parties hereunder shall be absolute and unconditional, to the maximum extent
permitted by law, irrespective of:

	(a)  	
      Any
      lack of validity or enforceability of the Notes or any other document or
      instrument relating thereto;

	(b)  	
      Any
      change in the time, manner or place of payment of, or in any other term
      of, all or any part of the Obligations or any other amendment to or waiver
      of or any consent to any departure from the Notes or any other document or
      instrument relating thereto;

	(c)  	
      Any
      exchange, release or non-perfection of any collateral (including the
      Collateral), or any release of or amendment to or waiver of or consent to
      or departure from any guaranty, for all or any of the Obligations;
      or

 

 

4

 

	(d)  	
      Any
      other circumstance that might otherwise constitute a defense available to,
      or a discharge of, the Debtor, a guarantor or a third party grantor of a
      security interest.

Section
9. Additional
Assurances. At the
request of the Majority Holders, the Debtor will join in executing or will
execute, as appropriate, all necessary financing statements in a form
satisfactory to the Majority Holders, and the Debtor will pay the cost of filing
such statements, including all statutory fees. The Debtor will further execute
all other instruments deemed necessary by the Majority Holders and pay the cost
of filing such instruments. 

Section
10. Representations,
Warranties and Covenants Concerning Debtor’s Legal
Status.

The
Debtor covenants with the Secured Parties as follows:

	
      
	
      
	
      
	
      (i)
	
      without
      providing 15 days’ prior written notice to each of the Secured Parties,
      Debtor will not change its name, its place of business, or, if more than
      one, its chief executive offices or its mailing address;
    and

		(ii)	
      without
      providing 15 days’ prior written notice to each of the Secured Parties,
      Debtor will not change its type of organization, jurisdiction of
      organization or other legal structure.

Section
11. Expenses. The
Debtor will upon demand by the Majority Holders pay to the Secured Parties the
amount of any and all reasonable expenses, including the reasonable fees and
disbursements of one counsel representing such Secured Parties and of any
experts and agents, that the Secured Parties may incur in connection with (i)
the custody, preservation, use or operation of, or the sale of, collection from,
or other realization upon, any of the Collateral upon the occurrence of an event
of default, (ii) the exercise or enforcement of any of the rights of the Secured
Parties hereunder, or (iii) the failure by the Debtor to perform or observe any
of the provisions hereof.

Section
12. Notices
of Loss or Depreciation. The
Debtor will immediately notify each of the Secured Parties of any claim, suit or
proceeding against any Collateral or any event causing loss or depreciation in
the value of Collateral, including the amount of such loss or
depreciation.

Section
13.  No
Waivers. No
waiver by the Secured Parties of any default shall operate as a waiver of any
other default or of the same default on any subsequent occasion. 

Section
14. Continuing
Security Interest. This
Agreement shall create a continuing security interest in the Collateral and
shall (i) remain in full force and effect until the payment in full of the
Obligations, (ii) be binding upon Debtor, its successors and assigns, and (iii)
inure to the benefit of, and be enforceable by, the Secured Parties and their
successors, transferees and assigns. Upon the payment in full of the
Obligations, the security interest granted hereby shall terminate and all rights
to the Collateral shall revert to the Debtor. Upon any such termination, the
Secured Parties will execute and deliver to the Debtor such documents as the
Debtor shall reasonably request to evidence such termination.

5

 

Section
15. Governing
Law. This
Security Agreement shall be governed by the laws of the State of New York,
without giving effect to such jurisdiction’s principles of conflict of laws,
except to the extent that the validity or the perfection of the security
interest hereunder, or remedies hereunder, in respect of any particular
Collateral are governed by the laws of a jurisdiction other than the State of
New York.

Section
16. Counterparts. This
Security Agreement may be executed in any number of counterparts, each of which
will be deemed an original, but all of which together shall constitute one and
the same instrument.

Section
17.  Remedies
Cumulative. The
rights and remedies herein are cumulative, and not exclusive of other rights and
remedies which may be granted or provided by law. 

Section
18. Notices. Any
demand upon or notice to the Debtor hereunder shall be effective when delivered
by hand or when properly deposited in the mails postage prepaid, or sent by
electronic facsimile transmission, receipt acknowledged, or delivered to an
overnight courier, in each case addressed to the Debtor at the address shown
below or such other address as the Debtor advises the Secured Party in writing.
Any notice by the Debtor to the Secured Party shall be given as aforesaid,
addressed to the Secured Party at the address shown below or such other address
as the Secured Party may advises the Debtor in writing:

If to a
Secured Party to it at its address set forth on Schedule
A
hereto.

	If to Debtor:	Solomon Technologies, Inc.	 
	 	1400 L&R Industrial Boulevard	 
	 	
      Tarpon
      Springs, FL 34689
	 
	 	
      Attn:
      Peter W. DeVecchis, Jr., President
	 
	 	 	 
	With a copy to:	Davis & Gilbert LLP	 
	 	1740 Broadway	 
	 	New York, New York 10019	 
	 	
      Attn:
      Ralph W. Norton, Esq.
	 
	 	 	 

      

Section
19. Entire
Agreement. This
Security Agreement and the documents and instruments referred to herein embody
the entire agreement entered into between the parties relating to the subject
matter hereof, and may not be amended, waived, or discharged except by an
instrument in writing executed by the party against whom enforcement of said
amendment, waiver, or discharge is sought.

6

 

Section
20. Additional
Secured Parties. The
Debtor, Woodlaken and Jezebel acknowledge that the Debtor may sell up to an
additional $110,000 aggregate principal amount of promissory notes having
substantially the same terms as the Notes (for a maximum aggregate principal
amount of $250,000 with the Woodlaken Note and the Jezebel Note) and such
parties, and all persons who become Secured Parties after the date hereof, agree
that upon the sale of a promissory note and the execution of a joinder agreement
in the form of Schedule
B hereto
by the purchaser thereof, (i) such purchaser shall be deemed as “Secured Party”
hereunder, (ii) the promissory note so purchased shall be deemed a Note
hereunder, and (iii) Schedule
A hereto
shall be amended to include all relevant information pertaining to such
purchaser and the Note purchased by him, her or it. Schedule
A as so
amended shall be initialed or signed by the President of the
Debtor.

[THE
REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY]

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IN
WITNESS WHEREOF, the parties hereto, by their duly authorized agents, have
executed this Security Agreement as of the date set forth above.

SOLOMON
TECHNOLOGIES, INC.

By:
/s/
Peter W. DeVecchis, Jr.

Name:
Peter W. DeVecchis, Jr.

Title:
President

WOODLAKEN,
LLC

By:
/s/
Gary Laskowski

Name:
Gary Laskowski 

Title:
Manager 

JEZEBEL
MANAGEMENT CORPORATION

By:
/s/
Michael A. D’Amelio

Name:
Michael A. D’Amelio 

Title:
President 

8

SCHEDULE
A

SECURED
PARTIES

	
      Name
      and Address of Secured Party
	 	
      Note
      Issuance Date
	 	
      Principal
      Amount of Note
	 
	 	 	 	 	 	 
	
      Woodlaken,
      LLC

      Mill
      Crossing

      Building
      A

      1224
      Mill Street

      East
      Berlin, CT 06037

      Attn:
      Gary M. Laskowski
	 	 	
      March
      7, 2005
	 	
       
	
      $40,000
	 
	 	 	 	 	 	 	 	 
	
      Jezebel
      Management Corporation

      c/o
      JMC Venture Partners LLC

      2
      Oliver Street, Suite 203

      Boston,
      MA 02109

      Attn:
      Michael D’Amelio
	 	 	
      March
      16, 2005
	 	
       
	
      $100,000
	 
	 	 	 	 	 	 	 	 
	
       

       

       

       
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	
       

       

       

       
	 	 	 	 	 	 	 

SCHEDULE
B

FORM
OF JOINDER AGREEMENT

Joinder
Agreement, dated as of this ___ day of ____________, 2005, by and between
Solomon Technologies, Inc., a Delaware corporation (the “Debtor”), and
the undersigned (the “Investor”).

Reference
is made to that certain Amended and Restated Security Agreement, dated as of
March 16, 2005, by and among the Debtor, Woodlaken, LLC, Jezebel Management
Corporation and the other investors listed on Schedule
A thereto
(the “Security
Agreement”).
Capitalized terms used but not otherwise defined herein shall have the meanings
ascribed thereto in the Security Agreement.

Investor
has purchased a Senior Secured Promissory Note in the principal amount of
$_______ from the Debtor. As a condition to permitting the Investor to share in
the security interest in the Debtor’s assets described in the Security
Agreement, the Debtor has required that the Investor execute this Joinder
Agreement for the purpose of binding the Investor to the Security Agreement.

With the
execution of this Joinder Agreement by the Investor, (i) the Investor hereby
agrees to be bound by the terms of the Security Agreement as if the Investor was
an original signatory to such agreement, (ii) the Investor shall be deemed to be
a “Secured Party” under such agreement, and (iii) the Senior Secured Promissory
Note purchased by the Investor shall be deemed to be a “Note” under such
agreement.

IN
WITNESS WHEREOF, the parties hereto have executed this Joinder Agreement as of
the date first above written.

DEBTOR:

SOLOMON
TECHNOLOGIES, INC.

By:_____________________________

Name:

Title:

INVESTOR:

________________________________

(Print
name of investor)

By:_____________________________

Name:

Title:EXHIBIT
10.36

SOLOMON
TECHNOLOGIES, INC.

SENIOR
SECURED PROMISSORY NOTE

THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER SUCH ACT AND LAWS.

 

	$100,000	
      March
      16, 2005

 

FOR VALUE
RECEIVED, SOLOMON TECHNOLOGIES, INC., a Delaware corporation (“Company”), with
its principal office at 1400 L&R Industrial Boulevard, Tarpon Springs,
Florida 34689, hereby promises to pay to the order of Jezebel Management
Corporation, a Florida corporation (“Holder”), with its principal office at c/o
JMC Venture Partners LLC, 2 Oliver Street, Suite 203, Boston MA 02109 (the
“Holder’s Office”), or its assigns, on May 6, 2005 (the “Maturity Date”), the
principal amount of ONE HUNDRED THOUSAND DOLLARS ($100,000) (the “Principal
Amount”), in such coin or currency of the United States of America as at the
time of payment shall be legal tender for the payment of public or private
debts, together with interest on the unpaid balance of said Principal Amount
from time to time outstanding at the rate of twelve percent (12%) per annum
(“Interest”). The unpaid Principal Amount, together with the then accrued unpaid
Interest and all other amounts owed hereunder, shall be due and payable on the
Maturity Date. Payment of the Principal Amount and Interest hereunder shall be
made by check to the Holder at the Holder’s office or wire transfer of
immediately available good funds to such bank account as the Holder may
designate by notice to the Company prior to any such payment.

In
connection with the issuance of this Note, the Company has executed a security
agreement dated as of March 16, 2005 (as amended, restated or modified from time
to time, the “Security Agreement”), pursuant to which the Holder has been
granted a first priority security interest in the “Collateral” identified
therein.

 

This Note
is one of a series of substantially similar notes of the Company with an
aggregate principal amount of up to $250,000 (collectively, the “Notes”). The
Notes shall be payable pari passu with
each other but shall at all times be senior to any other indebtedness of the
Company in right of payment of principal, interest and all other sums due or
payable, and all other present and future indebtedness and obligations of the
Company, other than accrued taxes or taxes due and payable. 

 

This Note
is subject to prepayment in whole or in part at any time and from time to time
without penalty or premium, but with Interest on the amount prepaid to the date
of prepayment. All prepayments will first be applied to the repayment of accrued
fees and expenses, then to Interest accrued on this Note through the date of
such prepayment until all then outstanding accrued Interest has been paid, and
then shall be applied to the repayment of the Principal Amount.

 

1.    Default.

1.1    Events
of Default. Upon
the occurrence of any of the following events (herein “Events of
Default”):

(i)    The
Company shall fail to pay the Principal Amount and Interest on this or any other
Note on the Maturity Date;

(ii)    (A) The
Company shall commence any proceeding or other action relating to it in
bankruptcy or seek reorganization, arrangement, readjustment of its debts,
receivership, dissolution, liquidation, winding-up, composition or any other
relief under any bankruptcy law, or under any other insolvency, reorganization,
liquidation, dissolution, arrangement, composition, readjustment of debt or any
other similar act or law, of any jurisdiction, domestic or foreign, now or
hereafter existing; or (B) the
Company shall admit the material allegations of any petition or pleading in
connection with any such proceeding; or (C) the
Company shall apply for, or consent or acquiesce to, the appointment of a
receiver, conservator, trustee or similar officer for it or for all or a
substantial part of its property or admit generally an inability to pay its
debts as they become due; or (D) the
Company shall make a general assignment for the benefit of
creditors;

(iii)    (A) The
commencement of any proceedings or the taking of any other action against the
Company in bankruptcy or seeking reorganization, arrangement, readjustment of
its debts, liquidation, dissolution, arrangement, composition, or any other
relief under any bankruptcy law or any other similar act or law of any
jurisdiction, domestic or foreign, now or hereafter existing and the continuance
of any of such event for thirty (30) days undismissed, unbonded or undischarged;
or (B) the
appointment of a receiver, conservator, trustee or similar officer for the
Company for any of its property and the continuance of any of such event for
thirty (30) days undismissed, unbonded or undischarged; or (C) the
issuance of a warrant of attachment, execution or similar process against any of
the property of the Company and the continuance of such event for thirty (30)
days undismissed, unbonded and undischarged;

(iv)    Any of
the Company’s representations or warranties contained herein is determined by a
court of competent jurisdiction as false or misleading in any material respect;
or

(v)    The
Company shall breach or fail to perform or observe any obligation, covenant,
term, condition, provision or agreement of the Company contained in this Note or
in any of the other Notes, after giving effect to any applicable notice
provisions and cure periods; provided, however, that with respect to a failure
to comply with any of the provisions of Sections 2.2(a) and (c) of this Note,
such failure is not remedied within twenty (20) days after the Company’s receipt
of written notice of same; 

 

then, and
in any such event, the Holder, at its option and without written notice to the
Company, may declare the entire Principal Amount of this Note then outstanding
together with any accrued Interest thereon immediately due and payable, and the
same shall forthwith become immediately due and payable without presentment,
demand, protest, or other notice of any kind, all of which are expressly waived,
and exercise any and all other legal or equitable rights resulting therefrom.
Upon the occurrence of an Event of Default that remains uncured as set forth
herein and the placement of this Note in the hands of an attorney for
collection, the Company agrees to pay reasonable collection costs and expenses,
including reasonable attorneys’ fees and interest from the date of the Event of
Default at the rate of eighteen percent (18%) per annum computed on the unpaid
principal balance. The Events of Default listed herein are solely for the
purpose of protecting the interests of the Holder of this Note.

2

 

1.2    Non-Waiver
and Other Remedies. No
course of dealing, delay or omission on the part of the Holder of this Note in
exercising any right hereunder shall operate as a waiver or otherwise prejudice
the right of the Holder of this Note. Holder shall not be deemed to have waived
any of its rights under this Note unless such waiver is in writing and signed by
Holder. A waiver in writing by Holder on one occasion shall not be construed as
a consent to or a waiver of any right or remedy on any future occasion. No
remedy conferred hereby shall be exclusive of any other remedy referred to
herein or now or hereafter available at law, in equity, by statute or
otherwise.

2.    Obligation
to Pay Principal and Interest; Covenants. No
provision of this Note shall alter or impair the obligation of the Company,
which is absolute and unconditional, to pay the Principal Amount of and Interest
on this Note at the place, at the respective times, at the rates, and in the
currency or securities herein prescribed.

2.1    In no
event shall the amount or rate of interest due and payable under this Note
exceed the maximum amount or rate of interest allowed by applicable law and, in
the event any such excess payment is made by Company or received by Holder, such
excess sum shall be credited as a payment of Principal Amount (or if no
Principal Amount remains outstanding, shall be refunded to the Company). It is
the express intent hereof that the Company shall not pay and Holder not receive,
directly or indirectly or in any other manner, interest in excess of that which
may be lawfully paid under applicable law. All Interest (including all charges,
fees or other amounts deemed to be Interest) that is paid or charged under this
Note shall, to the maximum extent permitted by applicable law, be amortized,
allocated and spread on a pro rata basis
throughout the actual term of this Note.

2.2    Covenants. The
Company covenants and agrees that, while this Note is outstanding, it
shall:

(a)    Pay and
discharge all taxes, assessments and governmental charges or levies imposed upon
it or upon its income and profits, or upon any properties belonging to it before
the same shall be in default; provided, however, that the Company shall not be
required to pay any such tax, assessment, charge or levy that is being contested
in good faith by proper proceedings and adequate reserves for the accrual of
same are maintained if required by generally accepted accounting principles;

(b)    Preserve
its corporate existence and continue to engage in business of the same general
type as conducted as of the date hereof;

(c)    Comply in
all respects with all statutes, laws, ordinances, orders, judgments, decrees,
injunctions, rules, regulations, permits, licenses, authorizations and
requirements (“Requirement(s)”) of all governmental bodies, departments,
commissions, boards, companies or associations insuring the premises, courts,
authorities, officials, or officers, that are applicable to the Company; except
when the failure to comply would not have a material adverse effect on the
Company; provided that nothing contained herein shall prevent the Company from
contesting in good faith the validity or the application of any
Requirements.

 

3

 

3.    Miscellaneous.

3.1    Required
Consent. The
Company may not modify any of the terms of this Note without the prior written
consent of the Holder.

3.2    Lost
Documents. Upon
receipt by the Company of evidence satisfactory to it of the loss, theft,
destruction or mutilation of this Note or any Note exchanged for it, and (in the
case of loss, theft or destruction) of indemnity satisfactory to it, and upon
surrender and cancellation of such Note, if mutilated, the Company will make and
deliver in lieu of such Note a new Note of like tenor and unpaid principal
amount and dated as of the original date of the Note.

3.3    Legend. This
Note shall be imprinted with a legend in substantially the following
form:

THIS NOTE
HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, OR ANY OTHER STATE SECURITIES LAWS AND MAY NOT BE SOLD OR OTHERWISE
TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED THERETO OR AN
OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE ISSUER THAT SUCH REGISTRATION
IS NOT REQUIRED UNDER SUCH ACT AND LAWS. 

3.4    Benefit. This
Note shall be binding upon and inure to the benefit of the parties hereto and
their legal representatives, successors and assigns.

3.5    Notices
and Addresses. All
notices, offers, acceptances and any other acts under this Note (except payment)
shall be in writing, and shall be sufficiently given if delivered to the
addressee in person, by overnight courier service or similar receipted delivery,
or, if mailed, postage prepaid, by certified mail, return receipt requested, as
follows:

 

	 	
      To
      the Holder:
	
      To
      the Holder’s address on page 1 of this Note,

      Attn.:
      Michael D’Amelio, President

	 	 	 
	 	
      To
      the Company:

       
	
      To
      the Company’s address on page 1 of this Note,

      Attn:
      Peter W. DeVecchis, Jr., President

	 	 	 
	 	
      With
      a copy to:
	
      Davis
      & Gilbert LLP

      1740
      Broadway

      New
      York, New York 10019

      Attn: Ralph
      W. Norton, Esq.

or to
such other address as any party, by notice to the other parties, may designate
from time to time. Time shall be counted to, or from, as the case may be, the
delivery in person or five business days after mailing. 

4

 

3.6    Governing
Law. This
Note will be deemed to have been made and delivered in New York and will be
governed as to validity, interpretation, construction, effect and in all other
respects by the internal laws of the State of New York. 

3.7    Section
Headings. Section
headings herein have been inserted for reference only and shall not be deemed to
limit or otherwise affect, in any matter, or be deemed to interpret in whole or
in part any of the terms or provisions of this Note.

3.8    Interpretation.
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
of this Note shall be prohibited by or invalid under applicable law, such
provision shall be ineffective only to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the
remaining provisions of this Note.

3.9    Assignment. All
rights of Holder under this Note may be assigned by Holder to any third party
and all rights of Holder hereunder shall inure to the benefit of its
transferees, successors and assigns.

 

IN
WITNESS WHEREOF, this Note has been executed and delivered on the date specified
above by the duly authorized representatives of the Company and the
Holder.

SOLOMON
TECHNOLOGIES, INC.

By:
/s/
Peter W. DeVecchis, Jr.

Name:
Peter W.
DeVecchis, Jr. 

Title:
President 

Accepted
and Agreed:

JEZEBEL
MANAGEMENT CORPORATION

By:
/s/
Michael A. D’Amelio

Name:
Michael
A. D’Amelio

Title:
President

	 	 	 	 
	 	 	 	 
	
      5

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