Document:

exv10w1

 

Exhibit 10.1

PROMISSORY NOTE

			
	 	 	 
	$365,550
	 	July 2, 2007

     FOR VALUE RECEIVED, the undersigned, Sutura, Inc., a Delaware corporation (the “Maker”),
hereby promises to pay to the order of Whitebox Hedged High Yield Partners, L.P., a British Virgin
Islands limited partnership, or its assigns (the “Payee”), at such place as the Payee may designate
in writing, the principal sum of Three Hundred Sixty-Five Thousand Five Hundred Fifty Dollars
($365,550) under the terms set forth herein. This Note is one of a series of four Notes (together,
the “Series Notes") being issued by Maker on the date hereof.

1. Interest. The unpaid principal balance hereof from time to time outstanding shall bear
interest from the date hereof at the rate of twelve percent (12%) per annum.

2. Payment. Except as otherwise provided herein, and subject to any default hereunder, the
principal and interest hereof is payable as follows:

     (a) The entire outstanding principal amount of the Note together with all accrued but unpaid
interest shall be due and payable in cash or otherwise immediately available funds in one balloon
payment on the sixtieth (60th) month anniversary of this Note (the “Maturity Date”).

     (b) Maker may prepay this Note, in whole or in part, upon five (5) days prior written notice
to Payee at a cost equal to accrued interest plus the present value of the note discounted at a
rate equal to (x) the then U.S. Treasury rate for 5-year Notes as reported by Bloomberg on the date
of such Prepayment Notice, plus (y) 100 basis points. All Prepayments shall be applied
first to accrued but unpaid interest and then to principal.

3. Demand Right for Early Payment. Payee shall have the one-time right, in its sole and
absolute discretion, to require Maker to pay all outstanding principal amounts and accrued but
unpaid interest due under this Note by providing Maker with written notice of such payment
requirement no sooner than November 1, 2007, but no later than November 15, 2007 (the “Payment
Notice”). Upon receipt of such Payment Notice, Maker shall pay all such amounts in cash or
otherwise immediately available funds on or prior to November 20, 2007. The failure of Payee to
provide the Payment Notice within the required time period will constitute a waiver of such right
without further action of either party.

4. Mandatory Prepayment Upon Sale Transaction. If Maker or its controlling stockholders
enter into a definitive agreement relating to a Sale Transaction, Maker shall give Payee at least
fifteen (15) days prior written notice of the proposed date for consummation of the Sale
Transaction. Despite any other provisions hereof, the entire principal balance of this Note, and
all accrued but unpaid interest, shall be due and payable immediately prior to (and as a condition
of) the closing on the Sale Transaction. In addition to the payment of outstanding principal and
any accrued but unpaid interest, Maker shall also pay to Payee a prepayment penalty amount equal to
the present value of the remaining unpaid coupons that would otherwise by paid thru maturity but
for the Sale Transaction discounted at a rate equal to (x) the then U.S.

 

 

Treasury rate for 5-year Notes as reported by Bloomberg on the date of such Prepayment Notice,
plus (y) 100 basis points.

For purposes of this Note, a “Sale Transaction” shall mean the sale, license or other disposition
of all or substantially all of Maker’s assets, the sale or exchange of a majority of the
outstanding voting stock of Maker or the merger or consolidation of Maker into or with any other
entity (except in the case where the holders of Maker’s voting stock prior to consummation of such
merger or consolidation hold at least a majority of the outstanding voting securities of the
surviving entity).

4. Default. The occurrence of any one or more of the following events shall constitute an
event of default, upon which Payee may declare the entire principal amount of this Note, together
with all accrued but unpaid interest, to be immediately due and payable:

     (a) The Maker shall fail to make any required payment of principal or interest when due, and
such failure shall continue through five days after Payee gives written notice of such failure to
Maker.

     (b) The Maker shall be in default of any term or provision of any of the promissory notes sold
pursuant that certain Purchase Agreement dated September 7, 2005 among Maker, the Payee and the
other purchasers named therein (the “September 2005 Notes"), or any of the promissory notes sold
pursuant to that certain Purchase Agreement dated March 25, 2005 among Maker, the Payee and the
other purchasers named there (the “March 2005 Notes"), or any of the promissory notes sold pursuant
to that certain Purchase Agreement dated September 17, 2004 among Maker, the Payee and the other
purchasers named therein (the “September 2004 Notes"), "), or any of the promissory notes sold
pursuant to that certain Purchase Agreement dated December 13, 2006 among Maker, the Payee and the
other purchasers named therein (the “December 2006 Notes"), and such default is not cured within
five days after written notice from Payee to Sutura.

     (c) The Maker shall become insolvent or shall fail to pay, or become unable to pay, its debts
as they become due; or any bankruptcy, reorganization, debt arrangement or other proceeding under
any bankruptcy or insolvency law shall be instituted by or against the Maker.

     (d) The Maker incurs an event of default under the terms of any of the other Series Notes.

     Without limiting the above, the Maker acknowledges that payment on the scheduled due date in
Sections 2 is of essence and that any failure to timely pay any installment of principal or
interest (within any permitted grace period above) permits Payee to declare this Note immediately
due in cash in its entirety without any prior notice of any kind to Maker, except for the specific
notices provided above. Further, the Maker agrees that any event of default under this Note shall
constitute an event of default under each of the other Series Notes, the December 2006 Notes, the
September 2005 Notes, the March 2005 Notes and the September 2004 Notes.

5. Applicable Law. THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THE NOTE SHALL BE
GOVERNED BY THE INTERNAL LAWS OF THE STATE OF

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MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF.

6. Waivers. The Maker hereby waives presentment for payment, notice of dishonor, protest
and notice of payment and all other notices of any kind in connection with the enforcement of this
Note.

7. No Setoffs. The Maker shall pay principal and interest under the Note without any
deduction for any setoff or counterclaim.

8. Costs of Collection. If this Note is not paid when due, the Maker shall pay Payee’s
reasonable costs of collection, including reasonable attorney’s fees.

	 	 	 	 	 
	 	SUTURA, INC.

 
 	 
	 	By:  	 	 
	 	 	David Teckman, President and 	 
	 	 	Chief Executive Officer 	 
	 

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Exhibit 10.40

Amegy Bank National Association

PURCHASE AND SALE AGREEMENT/SECURITY AGREEMENT

     THIS PURCHASE AND SALE AGREEMENT/ SECURITY AGREEMENT (this “Agreement”) is made by and
among AMEGY BANK NATIONAL ASSOCIATION, a national banking association (“Purchaser”) and
VIEWCAST.COM, INC. also dba VIEWCAST CORPORATION and OSPREY TECHNOLOGIES, INC. and VIDEOWARE,
INC. (whether one or more, “Seller”).

     WHEREAS, Seller desires from time to time to sell accounts receivable and other rights to
Purchaser, thereby engaging in account purchase transactions as set forth in Sections 306.001(1)
and 306.103 of the Texas Finance Code; and

     WHEREAS, the parties desire to enter into an agreement which will control their course of
dealing with respect to the purchase and sale of such accounts receivable and other rights;

     NOW, THEREFORE, Purchaser and Seller do hereby agree, in consideration of the mutual promises
herein contained, as follows:

     Section 1. Purchase and Sale of Accounts Receivable and other Rights.

Seller hereby sells, assigns, transfers, conveys and delivers to Purchaser, and Purchaser
hereby purchases and receives from Seller free and clear of any liens or Disputes (as defined
below), all rights, title and interests of Seller in the accounts receivable and other forms of
rights to payment described on Schedule “A” attached hereto and made a part hereof (the specific
accounts receivable and rights to payment described on Schedule “A” being herein called the
“Receivables”). Seller represents and warrants that true and correct copies of the invoices for
the Receivables are attached to Schedule “A”. Future purchases and sales of accounts receivable
and other rights will be based on the completion and execution of additional schedules in form
similar to Schedule “A”. Upon execution by both Purchaser and Seller (or any one of Seller, if
more than one) of such a schedule, the accounts receivable or other rights described therein shall
become Receivables subject in all respects to the terms of this Agreement. Any amounts advanced by
Purchaser pursuant to any future purchase and sale of accounts receivable and other items will be
deemed to be a future advance by Purchaser, and the corresponding obligations of the Seller with
respect to such accounts receivable and other rights shall be deemed to be an obligation covered by
this Agreement. Notwithstanding the creation of a security interest herein, as defined below,
Purchaser shall not be a fiduciary of Seller, and the relationship of the parties hereto shall be
that of Purchaser and Seller of accounts, and not that of lender and borrower.

     Section 2. Charge-Back; Repurchase Obligation.

Purchaser shall have the right to charge back any Receivable to Seller and Seller shall have
the obligation to repurchase such Receivable (“Charge-Back”), if (a) the Receivable is not paid to
Purchaser within 90 days from date of purchase by Purchaser, or (b) any Dispute arises with
respect to such Receivable, or (c) Seller or Purchaser discovers or determines that any
representation or warranty made by Seller in this Agreement or in any document executed in
connection with this Agreement (the “Purchase Documents”) is false or misleading, or (d) Seller
breaches any covenant or agreement contained in this Agreement or in any Purchase Document or is
otherwise in default hereof. “Dispute,” as used herein, means any dispute, deduction, claim,
offset, defense or counterclaim of any kind pertaining to the Receivable or to the goods or
services giving rise thereto asserted by the party obligated thereon, regardless of the final
outcome or merit thereof. Upon Charge-Back of any Receivable, Seller shall pay to Purchaser on
demand an amount equal to the Gross Amount of the Receivable (the face amount of the Receivable),
less rebate of Discount, if any, less any payments made on such invoice to Purchaser. Purchaser
may, in its discretion, in addition to the right of setoff which is hereby retained, subtract all
or any portion of such amount from any refund, rebate or other obligation owed by Purchaser to
Seller, subtract such amount from the Purchase Price for the next Receivable sold, or otherwise
charge Seller for such amount. Upon Purchaser’s receipt of the amount required by this Section, in
collected funds, ownership of the Receivable shall re-vest in Seller, subject to Purchaser’s
security interest and rights of recoupment and/or setoff.

     Section 3. Invoices; Collection; Power of Attorney.

If requested by Purchaser, Purchaser shall mail all invoices to Seller’s customers in each
instance relating to any Receivable and any other accounts receivable of Seller, and Seller shall
provide the original invoice and one copy to Purchaser ready for mailing to the customers. All
invoices relating to any Receivable and any other accounts receivable of Seller shall plainly state
on their face in language acceptable to Purchaser that the amounts payable thereunder are to be
paid to a post office box owned and controlled by Purchaser, to be provided by Purchaser. If
requested by Purchaser, Seller agrees to furnish the original purchase order or other similar
documents from Seller’s customer, evidence of shipment of the related merchandise or performance of
services rendered and a written assignment of any Receivable, all in a form satisfactory to
Purchaser. If requested by Purchaser, all invoices relating to Receivables and any other accounts
receivable shall plainly state on their faces in language acceptable to Purchaser that the amounts
payable thereunder have been assigned to and are payable directly to Purchaser. If payment is made
to Seller under any circumstance, such payment shall be held in trust by Seller for Purchaser and
shall not be negotiated or commingled in any way with the Seller’s funds. Within one Business Day
after receipt thereof, Seller shall deliver any such payments to Purchaser in the original form as
received by Seller, endorsed as required by Purchaser. Purchaser is hereby irrevocably authorized
to open, cash, endorse and otherwise collect all

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checks and other forms of payment tendered in payment of each Receivable and in payment of any
other accounts receivable, in the name of and as attorney-in-fact for Seller, and to direct
Seller’s customers to make payment to a different name and/or location. This power of attorney is
coupled with an interest.

     Section 4. Recoupment Rights of Purchaser.

Regardless of whether Seller is in default under this Agreement, Purchaser shall have the right at
all times, in its discretion, to recoup all or any designated portion of the Obligations
(hereinafter defined) or any other amounts which Seller may owe to Purchaser in such a manner as
Purchaser may determine, at any time and without notice to Seller from: 

     (a) any and all deposits (general or special, time or demand, provisional or final) or other
sums at any time credited by or owing from Purchaser to Seller; and/or

     (b) all or any portion of such amount from any refund, rebate or other obligation owed by
Purchaser to Seller.

     The rights and remedies of Purchaser hereunder are in addition to other rights and remedies
(including, without limitation, to the rights of setoff) which Purchaser may have.

     Furthermore, in order to satisfy any of the Obligations hereunder, Purchaser is hereby
authorized by Seller to initiate electronic debit or credit entries through the ACH system to any
deposit account maintained by Seller wherever located.

     Section 5. Transfer of Related Interests.

In addition to the Receivables, Seller hereby sells, assigns, transfers, conveys and delivers to
Purchaser all other rights and interests (but not obligations) now or hereafter existing in
connection with the Receivables, including, but not limited to liens, security interests and
guarantees securing payment of the Receivables, Seller’s interest in returned goods arising with
respect to the Receivables, and other rights and remedies of Seller related to the Receivables such
as rights of stoppage in transit, replevin, reclamation and lawsuits to collect the Receivables.
If any Receivable is ever represented by a promissory note or other written evidence of obligation,
Seller shall deliver the same to Purchaser duly endorsed by Seller to Purchaser.

     Section 6. Further Assurances.

Seller agrees to execute and deliver to Purchaser such notices of assignment and other documents as
Purchaser may request to further document the sale and assignment of Receivables hereunder.

     Section 7. No Obligation to Purchase Further Receivables.

Notwithstanding anything to the contrary contained herein, Seller specifically acknowledges
and agrees that Purchaser has the right to approve or reject future accounts receivable or other
items of any kind proposed for sale under this Agreement IN ITS SOLE DISCRETION, and no course of
conduct shall establish any commitment to purchase future accounts receivable or other items of any
kind.

     Section 8.
Terms – Seller’s Customers.

Except as may otherwise be agreed to from time to time, the terms of all Receivables shall not
exceed thirty (30) days. Seller shall not modify or vary the terms of sale, terms of payment, or
location of payment set forth in the invoice relating to any Receivable without Purchaser’s written
consent.

     Section 9. Purchase Price; Discount.

The Purchase Price (herein so called) for the Receivables shall be the Gross Amount of the Invoice
minus the Discount. The “Gross Amount of the Invoice” shall mean the total invoice amount,
including any miscellaneous charges such as sales taxes and delivery charges, less any early
payment or special discounts offered to Seller’s customer. “Discount” means 15% of the
Gross Amount of the Invoice. The Purchase Price for any Receivable shall be paid only after
execution by Seller and acceptance by Purchaser of a Schedule “A” covering such Receivable. The
Discount shall be deemed fully earned upon purchase of each Receivable in consideration of the
overall manpower, effort and expense associated with Purchaser’s performance hereunder, which
Seller acknowledges is fair and reasonable consideration for the Discount. Furthermore, Seller
agrees to pay Purchaser a minimum monthly discount fee of two hundred fifty dollars and no
cents ($250.00), beginning the first full month after entering into this Purchase
and Sale Agreement / Security Agreement and funding occurs, as well as a minimum invoice fee of
$N/A. If, however, funding does not occur within 60 calendar days of execution of the
Agreement, the minimum monthly discount fee will nonetheless be paid by Seller and collected by
Purchaser for each month thereafter, as long as the Agreement is in force, and regardless of
whether or not funding occurs in any given month.

     Section 10. Rebate of Discount.

As an inducement for Seller to sell only invoices from which prompt payment can be expected,
Purchaser will remit a rebate of part of the Discount as follows:

If the Receivable is paid within 15 days of purchase by Purchaser, a rebate of
14.80% of the Gross Amount of the Invoice LESS a Variable Discount Amount (“Variable
Discount Amount”) will be remitted to Seller;
If the Receivable is paid within 30 days of purchase by Purchaser, a rebate of
14.60% of the Gross Amount of the Invoice LESS a Variable Discount Amount (“Variable
Discount Amount”) will be remitted to Seller;
If the Receivable is paid within 45 days of purchase by Purchaser, a rebate of
14.40% of the Gross Amount of the Invoice LESS a Variable Discount Amount (“Variable
Discount Amount”) will be remitted to Seller;

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If the Receivable is paid within 60 days of purchase by Purchaser, a rebate of
14.20% of the Gross Amount of the Invoice LESS a Variable Discount Amount (“Variable
Discount Amount”) will be remitted to Seller;
If the Receivable is paid within 75 days of purchase by Purchaser, a rebate of
14.00% of the Gross Amount of the Invoice LESS a Variable Discount Amount (“Variable
Discount Amount”) will be remitted to Seller;
If the Receivable is paid within 90 days of purchase by Purchaser, a rebate of
13.80% of the Gross Amount of the Invoice LESS a Variable Discount Amount (“Variable
Discount Amount”) will be remitted to Seller;
If the Receivable is paid within 120 days of purchase by Purchaser, a rebate of
8.80% of the Gross Amount of the Invoice LESS a Variable Discount Amount (“Variable
Discount Amount”) will be remitted to Seller.

The Variable Discount Amount shall be computed as Amegy Bank National Association, Prime Rate (the
“Index”) plus 1.50% multiplied by The Purchase Price of the Receivable divided by 360 multiplied by
the number of collection days. Being a general reference index, the Index is subject to change from
time to time as Amegy Bank National Association may deem appropriate. The Index change will not
occur more often than each day. The Index currently is 8.25%. Therefore, the initial Variable
Discount Amount shall be computed as 9.75% multiplied by The Purchase Price of the Receivable
divided by 360 multiplied by the number of collection days for such Receivable. The Index has a
floor and at no time shall it be less than 8.25% for the purposes of this agreement. The Variable
Discount Amount is subject to change, with prior notice by telephone or facsimile notice from
Purchaser to Seller. This amount shall in no way be interpreted or construed as interest but only
as a guideline to the Variable Discount Amount charged.

     Section 11. Security Interest.

For the purpose of securing Purchaser in the payment of the Obligations (hereinafter defined),
Seller hereby grants a lien and security interest to Purchaser in all assets of any kind or type,
now owned or hereafter acquired by Seller (the “Collateral”), including but not limited to the
following:

(a) All now owned or hereafter acquired accounts and accounts receivable, including
but not limited to contracts, notes, drafts, acceptances, instruments, chattel paper, documents,
money, deposit accounts, payment intangibles, commercial tort claims, and returned or repossessed
goods arising from or relating to any such accounts or accounts receivable and other rights
arising from or by virtue of, or from the voluntary or involuntary sale or other disposition of, or
collections with respect to, or insurance proceeds payable with respect to, or proceeds payable by
virtue of warranty or other claims against any other person or entity with respect to all or any
part of the property heretofore described, proceeds of inventory, and proceeds and products of any
of the foregoing in any form.

Terms used in clause (a) above have the meanings assigned in the Uniform Commercial Code as in
effect in the State of Texas (the “UCC”). Purchaser shall have all the rights and remedies
provided to a secured party under the UCC. Seller and Purchaser agree that to the extent Purchaser
exercises or is deemed to exercise its rights under this Agreement as a secured party, Purchaser
shall account for the proceeds of the accounts receivable and Receivables, deal with the
disposition of the accounts receivable and Receivables, and permit Seller to redeem the accounts
receivable and Receivables in the same manner provided for elsewhere in this Agreement. Purchaser’s
compliance with its obligations regarding collection and/or disposition of Receivables and
accounts receivable and other rights which are described in this Agreement shall fulfill
Purchaser’s duties and obligations as a secured party pursuant to Sections 9.601 through 9.604 of
the Texas Business and Commerce Code. Purchaser shall not be deemed to accept the accounts
receivable and Receivables in discharge of Seller’s obligations to Purchaser unless Purchaser sends
Seller express written notice of Purchaser’s intent to do so.

NOTICE
— Pursuant to an agreement between debtor and secured party, debtor has agreed not to grant
a security interest in the collateral, described herein and in any future commercial tort claims to
any other secured party. Accordingly, the acceptance of any such security interest, except as
authorized by secured party in writing, by anyone other than the above secured party is likely to
constitute the tortious interference with secured party’s rights.

In the
event that any entity is granted a security interest in debtor’s
accounts
and  accounts receivable, including but not limited to contracts, notes, drafts,
acceptances, instruments, chattel paper, documents, money, deposit accounts, payment intangibles,
commercial tort claims, and returned or repossessed goods arising from or relating to any such
accounts or accounts receivable and other rights contrary to the above security interest, the
secured party asserts a claim to any proceeds thereof received by such entity.

Seller authorizes the Purchaser at any time and from time to time to file any initial financing
statements and amendments thereto that:

          (a) indicate the Collateral as all assets of the Seller or words of similar effect, regardless
of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of
the UCC, or as being of an equal or lesser scope or with greater detail;

          (b) contain any other information required by part 5 of Article 9 of the UCC for the
sufficiency or filing office acceptance of any financing statement or amendment, including (i)
whether the Seller is an organization, the type of organization, and any organization
identification number issued to the Seller and, (ii) in the case of a financing statement filed as
a fixture filing or indicating Collateral as extracted collateral or timber to be cut, a sufficient
description of real property to which the Collateral relates;

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          (c) contain a notification that the Seller has granted a negative pledge to the Purchaser, and
that any subsequent lienholder or potential secured party may be tortiously interfering with
Purchaser’s rights; and

          (d) advises third parties that any notification of Seller’s account debtors will interfere
with Purchaser’s collection rights.

In recognition of the Purchaser’s right to have its attorneys’ fees and other expenses incurred in
connection with this Agreement secured by the Collateral, notwithstanding payment in full of all
Obligations by Seller, Purchaser shall not be required to record any terminations or satisfactions
of any of Purchaser’s liens on the Collateral unless and until Seller has executed and delivered to
Purchaser a general release in a form acceptable to Purchaser and substantially similar to that
Release attached hereto and made a part hereof as Exhibit “A”. Seller understands that this
provision constitutes a waiver of its rights under Section 9.513 of the UCC.

Seller shall maintain insurance on the Collateral and all other insurable property owned or leased
by Seller in the manner, to the extent and against at least such risks (in any event, including but
not limited to fire and business interruption insurance) as usually maintained by owners of similar
businesses and properties in similar geographic areas. All such insurance shall be in amounts and
form and with insurance companies acceptable to Purchaser in its sole discretion. Seller shall
furnish to Purchaser: (a) upon written request, any and all information concerning such insurance
carried; (b) as requested by Purchaser, loss payable endorsements (or their equivalent) in favor of
Purchaser. All policies of insurance shall provide for not less than thirty (30) day’s prior
written cancellation notice to Purchaser.

Notwithstanding the creation of a security interest herein, Purchaser shall not be a fiduciary of
Seller. The relationship of the parties hereto is that of Purchaser and Seller of accounts, and not
that of lender and borrower.

     Section 12.
Creation and Enforcement of Payment “Obligations”.

In the event that Purchaser determines in its sole discretion to Charge-Back any Receivable(s) in
accordance with Section 2 of this Agreement, the amount of the Charge-Back, together with any
costs incurred by Purchaser described in Section 34 of this Agreement, shall be an obligation
secured by the Security Interest contained in Section 11 of this Agreement. All of the obligations
described in this Section, as well as any other obligation of Seller to Purchaser whether created
heretofore, herewith or hereafter, are defined for purposes of this Agreement as Seller’s
“Obligations”.

     In the event of a Default under Section 13 of this Agreement the Obligations will bear
interest in accordance with Section 15 of this Agreement. Proceeds of disposition of the
Collateral shall be applied to pay the Obligations in the order specified in Texas Business and
Commerce Code Section 9.615.

     Section 13. Events of Default.

An “Event of Default” shall be deemed to exist under this Agreement in the event of any of the
following:

          (a) any of the events specified in clauses (a) through (d) of Section 2 occur, regardless of
whether Purchaser has exercised any right to recoup or Charge-Back in connection with such event,
or in the event Purchaser in good faith deems itself insecure;

          (b) Purchaser either does not have on hand or believes in good faith that Purchaser will not
have on hand sufficient funds of Seller to fully satisfy Seller’s Obligations;

          (c) Dissolution, cessation or termination of Seller’s business, or should Seller’s business
be placed in receivership or bankruptcy;

          (d) The loss, sale, levy, destruction, attachment, seizure or other encumbrance of the
Collateral should take place; or

          (e) Seller defaults in the payment or performance of any other agreement now or hereafter
entered into with Purchaser.

     The occurrence of any Event of Default under this Agreement shall be a “Default” which
entitles Purchaser to exercise any applicable rights and remedies under:

          (a) any security interest granted to Purchaser to secure payment and performance of the
obligations of Seller hereunder; and

          (b) all other applicable sections of this Agreement or any document executed in connection
herewith.

     Section 14. Purchaser’s Remedies upon Seller’s Default.

In the event Seller is in Default, Purchaser shall have the right, in addition to any other right
or remedy available under applicable law, but not the obligation, in Purchaser’s own name, or in
the name of Seller, to take any one or more of the following actions, simultaneously or in such
sequence as Purchaser shall determine in Purchaser’s sole discretion:

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	 	(a)	 	exercise all recoupment or setoff rights which Purchaser may
have under this Agreement or under applicable law;
	 
	 	(b)	 	require Seller to repurchase, for cash or cash equivalent,
all or any part of the Receivables sold to Purchaser under this Agreement for
the Purchase Price plus the Discount less: (1) any applicable rebates and (2)
any payments or collections received on any Receivable;
	 
	 	(c)	 	exercise all the rights of a “Financing Agency” who has
purchased the Receivables under UCC Section 2.506;
	 
	 	(d)	 	proceed, without additional notice to Seller, to foreclose
under the Security Agreement and to exercise all other legal and equitable
remedies against any Guarantor or other person who may be liable with Seller;
	 
	 	(e)	 	exercise all other rights and remedies available to
Purchaser.

Purchaser may use the Power of Attorney described in Section 3 of this Agreement in order to
exercise any of the remedies described in this Section, which are cumulative and not exclusive.

     Section 15. Interest on Obligations.

All Obligations of Seller to Purchaser which become due and unpaid upon Seller’s Default pursuant
to Sections 13 and 14 of this Agreement shall bear interest at the rate of 16% (Sixteen per cent)
per annum. Interest will accrue on unpaid Obligations during the period beginning on the tenth day
following the date on which Purchaser makes demand on Seller to repurchase the Receivable(s) and
ending on the date the Obligations are fully satisfied.

     Section 16. Verification of Receivables and Accounts; Collection by Purchaser

Purchaser is authorized, but not obligated, to collect, sue for and give releases for all monies
due on all Receivables. Purchaser is authorized to contact Seller’s account debtors at any time for
purposes of verification or collection of each Receivable and any of Seller’s other accounts
receivable. Seller shall cooperate with Purchaser to the maximum extent possible to provide
information necessary for Purchaser to accomplish this verification or collection. Upon request by
Purchaser, Seller shall provide all information requested by Purchaser pertaining to Receivables
and other accounts receivable of Seller, including but not limited to copies of invoices, account
balances, and names and addresses of account parties. Before or after Default hereunder, as to
both Receivables and other accounts receivable of Seller, Purchaser is authorized to forward
statements and invoices directly to account debtors, and to direct that payment be made to
Purchaser or any other address designated. Seller agrees to furnish Purchaser, upon request, any
and all papers, documents or records of whatever nature related directly or indirectly to any
Receivable and any other account receivable of Seller, and to cooperate generally in all matters
related to the collection of Receivables. In the event any merchandise represented by a Receivable
shall be returned to or repossessed by Seller, such merchandise shall be held by Seller in trust
for Purchaser, separate and apart from the Seller’s own property, and subject to Purchaser’s
directions and control.

	 	 	Section 17. Representations and Warranties of Seller.

Seller hereby represents, warrants and guarantees to Purchaser as follows:

          (a) that the information contained in the application previously or hereafter submitted by
Seller, Seller’s financial statements and all other materials previously or hereafter submitted in
connection herewith are true, correct and complete in all respects;

          (b) all federal, state and local tax returns and payments of any kind due or owing by Seller
have been timely filed and paid, and no part of the Purchase Price for any Receivable shall be used
to pay any wage or salary unless appropriate withholdings have been deposited;

          (c) execution of Schedule “A” by Purchaser will thereby vest in Purchaser absolute ownership
of each Receivable free from any security interests, liens, claims or equities of third parties;

          (d) Seller is the sole owner of and has good, free and unencumbered title to each Receivable
and the Collateral;

          (e) execution and performance of this Agreement has been duly authorized by all necessary
actions and this Agreement and all the other documents executed in connection herewith are legal,
valid and binding obligations of Seller, enforceable against Seller in accordance with their terms;

          (f) no other factoring, sale, assignment, lien, security interest or pledge exists against any
Receivable;

          (g) each Receivable is based upon a bona fide sale of goods or services and represents a
completed delivery or completed furnishing of property or services in fulfillment of all the terms
and provisions of a fully executed and unexpired contract with the account debtor and is a valid
and enforceable obligation of the account debtor;

          (h) each account debtor has accepted goods or services covered by the applicable Receivable;

5

 

          (i) all Receivables are current, are not past due, have not been paid in whole or in part, are
outstanding in the amounts reflected in Schedule “A” and are not and will not be subject to any
dispute or claim as to price, quality, quantity, workmanship, delay in shipment, set off,
counterclaim or other defense;

          (j) no product or service was provided on a guaranteed-sale basis or “buy-back” agreement, and
the account debtor has not and will not claim any defense of any kind or character or object for
any reason whatsoever against payment of such Receivable;

          (k) Seller’s chief executive office and the location where all books and records pertaining to
each Receivable are kept are at the address shown below for notice to Seller;

          (l) Seller is solvent, properly licensed and authorized to operate its business under the name
designated herein, and is in good standing with and duly organized under the laws of the
jurisdiction under which it was organized or incorporated, and has the requisite authority to
transact business in each state in which it is engaged in business;

          (m) Seller uses no trade name or pseudonym that has not been disclosed to Purchaser in
writing;

          (n) no petition in bankruptcy has been filed by or against Seller nor has Seller filed any
petition seeking an arrangement of its debts or for any other relief under the Bankruptcy Code of
the United States;

          (o) that no application for appointment of a receiver or trustee for all or a substantial part
of Seller’s property is pending;

          (p) Seller has made no assignment for the benefit of creditors;

          (q) Seller does not own, control or exercise dominion over, in any way whatsoever, the
business of any account debtor on any Receivable;

          (r) to the best of Seller’s knowledge, the account debtor is not insolvent or the subject of
any bankruptcy or insolvency proceeding and has not made an assignment for the benefit of
creditors, suspended normal business operations, dissolved, liquidated, terminated its existence,
ceased to pay its debts as they become due, or suffered a receiver or trustee to be appointed for
any of its assets or affairs;

          (s) a financing statement in favor of Purchaser in a form provided by Purchaser is of record
in all jurisdictions and filing offices necessary or appropriate to perfect Purchaser’s ownership
of the Receivables, subject to no other filings, and there is not of record, in any jurisdiction or
filing office, any financing statement, notice of lien, tax lien, notice of assessment, assessment,
assignment, charge, or other instrument of any kind covering any Receivable;

          (t) all Receivables arise from services rendered or products sold to commercial entities for
business purposes and not for personal, family, or household purposes;

          (u) Seller is not in default in any material respect under any loan agreement, indenture,
mortgage, security agreement, or other material agreement or obligation to which it is a party or
by which any of its properties may be bound;

          (v) there is no action, suit, investigation, or proceeding before any court, governmental
authority, or arbitrator pending, or to the knowledge of Seller, threatened against or affecting
Seller, that would, if adversely determined, have a material adverse effect on the financial
condition or operations of Seller;

          (w) there are no outstanding judgments against Seller;

          (x) all of Seller’s statements, representations and warranties contained in any applications
or other documents submitted to Seller in connection herewith are true, complete and correct in all
respects;

          (y) the Collateral is not related to transactions involving the sale of farm products; and

          (z) each of the Receivables was generated incident to a arm’s length transaction with the
party responsible for payment of the Receivable, and none of the Receivables are related to sales
to any entity which is affiliated with Seller in any way.

SELLER HAS CAREFULLY CONSIDERED THE REPRESENTATIONS AND WARRANTIES CONTAINED HEREIN AS THEY RELATE
TO EACH RECEIVABLE, AND UNDERSTANDS THAT ALL REPRESENTATIONS AND WARRANTIES MADE BY SELLER SHALL BE
DEEMED REAFFIRMED BY SELLER UPON EXECUTION OF EACH SUPPLEMENTAL SCHEDULE “A” HERETO. SELLER
ACKNOWLEDGES THAT ANY KNOWING OR RECKLESS ERROR OR OMISSION MADE BY SELLER IN THE REPRESENTATIONS
OR WARRANTIES MADE HEREIN MAY SUBJECT SELLER TO CIVIL AND CRIMINAL PENALTIES, IN ADDITION TO CIVIL
LIABILITY.

6

 

     Section 18. Certain Covenants of Seller.

Seller covenants and agrees that it will not, without prior, written notice to Purchaser

          (a) move either its chief executive office or the location where books and records pertaining
to the Receivables are kept to a location outside of Collin County in the State of Texas;

          (b) use any trade name;

          (c) change its name;

          (d) take or omit taking any actions that would render any of Seller’s representations and
warranties incorrect or incomplete;

          (e) merge or consolidate with any other corporation or entity;

          (f) dissolve or cease its operations as they are now conducted;

          (g) take any action that would cause or induce any account debtor on any Receivable to fail to
pay the Receivable in a timely manner; or

          (h) take any action that would result in any material change in ownership or operational
control of Seller.

          Seller covenants that it will notify Purchaser in writing immediately upon the imposition or
assessment of any, tax lien, assessment or similar levy against Seller or any of Seller’s assets,
and upon any Dispute arising with respect to any Receivable.

          Seller shall not at any time, without the prior written consent of Purchaser in each instance,
take any collection action with respect to the Receivables, including but not limited to the
following action, (a) granting any extension of time for payment of any of the Receivables, (b)
compromising or settling any of the Receivables for less than the full amount thereof, (c)
releasing in whole or in part any account debtor, or (d) granting any credits, discounts,
allowances, deductions, return authorizations or the like with respect to any of the Receivables.

     Section 19. Other Accounts Receivable.

At the request of Purchaser, Seller shall agree to direct its customers or otherwise cause payments
relating to all other accounts receivable (whether purchased hereunder or not) to be directed to
Purchaser for processing. Purchaser shall have the right to facilitate this processing by taking
all actions necessary to cause all of Seller’s Receivables and any other accounts receivable to be
directed to Purchaser and Purchaser may use that Special Power of Attorney described in Section 3
for that purpose. Purchaser may, from time to time, with or without notice, subtract from any such
collections any charges or Obligations as defined in this Agreement. Purchaser shall show any
collections on the Collection Report (as defined in Section 20) and shall from time to time release
the amounts collected to Seller, subject to any charges thereto properly made by Purchaser.
Purchaser shall charge no additional consideration for such processing and shall bear no
responsibility or obligation in connection therewith.

     Section 20.
Reports.

Purchaser shall prepare and send to Seller by mail or by telephone facsimile or by other means
of delivery periodic reports of Purchases & Advances (herein so called) detailing the Receivables
purchased. Such reports shall detail the Purchase Price of each Receivable. By similar means,
periodic Collection Reports (herein so called) shall be sent to Seller at the discretion of
Purchaser detailing for a specific period Receivables collected or charged back and other accounts
receivable collected, other debits and credits called for in this Agreement, Discounts charged,
rebate of Discounts and, in general, the balance of any amounts owed to or from Seller. Seller is
aware that such balance is reported in the column titled “Reserve Refund” of each Collection Report
and that Reserve Refund has no meaning other than it serves as the title for such column. By
similar means, Reserve Account Reports (herein so called) may be sent to Seller (at the discretion
of Purchaser) accounting for the balance owing to or from Seller as derived from all debits and
credits made in connection with this Agreement.

     Section 21. Resolution of Disputes; No Assumption of Liability by Purchaser.

     Seller shall immediately notify Purchaser of the assertion by any account debtor of any
Dispute. Seller shall settle, at its own expense, all Disputes, subject to Purchaser’s approval,
but Purchaser shall have the right, in its discretion, to settle any Dispute directly with the
account debtor involved upon such terms as Purchaser may deem advisable and at Seller’s expense
without waiving Purchaser’s right to Charge-Back any Receivable or to declare a Default, and any
deficiency resulting from such settlement shall be the responsibility of Seller.

     Seller authorizes Purchaser to accept, indorse and deposit on behalf of Seller any checks
tendered by an account debtor “in full payment” of its obligation to Seller. Seller shall not
assert against Purchaser any claim arising therefrom, irrespective of whether such action by
Purchaser effects an accord and satisfaction of Seller’s claims, under Section 3.311 of the UCC, or
otherwise.

7

 

     Seller specifically acknowledges and agrees that Purchaser is not assuming any liability or
obligation of any kind to Seller’s customers or in any way relating to the Receivables or any of
Seller’s other accounts receivable.

     Section 22. SELLER’S INDEMNITY OF PURCHASER. Seller           hereby unconditionally and
irrevocably, jointly and severally, agrees to indemnify, defend and hold harmless Purchaser, its
officers, servants, employees, agents, attorneys, principals, directors, affiliates, shareholders,
parents, subsidiaries, predecessors, successors, and assigns (collectively, the “Indemnified
Parties”) from and against any and all Losses (as hereinafter defined) that any Indemnified Party
may suffer, pay or incur as a result of, arising from or connected with any Claim (as hereinafter
defined) threatened or asserted against any Indemnified Party, by any person or entity.

For purposes hereof, “Claims” shall mean all, claims, demands, lawsuits, causes of action, choses
in action and other legal and administrative actions and proceedings of whatever nature or kind
threatened, brought, threatened or asserted against any Indemnified Party whether by reason or in
consequence of direct action, counterclaim, cross-claim, third party claim, intervention,
interpleader, or otherwise, even if groundless, false, meritless or fraudulent, and whether or not
caused directly or indirectly, by any error, omission, act or negligence of any Indemnified Party
so long as the claim, lawsuit, cause of action, chose in action or other legal action or proceeding
is alleged or determined, directly or indirectly, to arise out of, result from, relate to, or be
based upon, in whole or in part: (i) the obligations, duties, responsibilities, activities, acts or
omissions of any person or entity, including any Indemnified Party, in connection with this
Agreement or any Purchase Document; (ii) any relationship between any Indemnified Party and Seller
(or any predecessor or successor-in-interest to Seller); or (iii) any matter whatsoever relating to
any of the Receivables, including, without limitation, the use, ownership, sale, conversion,
disposition, or collection of all or any portion of the Receivables (including compliance with
laws).

For purposes hereof, “Losses” shall mean any losses, costs, damages, expenses, judgments,
liabilities, obligations and penalties of whatever nature or kind, including, without limitation,
attorneys’, accountants’ and other professional fees; litigation expenses and court costs and
expenses; amounts paid in settlement; amounts paid to discharge judgments, penalties, fines and
amounts payable to or incurred by any Indemnified Party to any other person or entity, directly or
indirectly, resulting from, arising out of or relating to one or more Claims.

In the event that Seller fails or refuses to defend any Indemnified Party as required herein, or
Seller fails or refuses to engage independent counsel to defend any Indemnified Party to avoid any
possible conflict of interest that results from joint representation of Seller and any Indemnified
Party by the same counsel, then, in such event, Indemnified Party, at its option, may engage
counsel to defend Indemnified Party and Seller consents, covenants and agrees to bear and pay all
such legal fees and related costs just as though Seller had incurred the same for its own account.

     Section 23. Books and Records.

Seller agrees to permit Purchaser access to all books and records of the Seller during normal
business hours.

     Section 24. Taxes.

All taxes and governmental charges imposed with respect to the sales of the goods related to
the Receivables shall be charged to Seller.

     Section 25. Termination.

Seller and Purchaser recognize that future purchases of Receivables are to be made only with mutual
consent, through joint execution of a supplemental Schedule “A”. Accordingly, either party may
terminate this Agreement at any time as it relates to future Receivables. As to Receivables at any
time purchased, however, Seller may terminate this Agreement only upon thirty (30) days prior
written notice to Purchaser, and subject to the following terms: Purchaser shall not be obligated
to release its security interest and execute releases of UCC filings until twenty (20) Business
Days (hereinafter defined) after all Receivables have been paid to Purchaser in full. At such
time, Purchaser shall also release to Seller the balance, if any, owed to Seller as derived from
all debits and credits made in connection with this Agreement. Termination of this Agreement shall
not terminate any of Seller’s other liabilities or obligations hereunder, including but not limited
to any obligations that may arise under Seller’s indemnification obligation described above.
Should Seller fail to give Purchaser the requisite thirty (30) days written notice prior to
termination as provided for herein, Seller shall pay to Purchaser a termination fee equal to the
sum of (a) the average minimum monthly discount fee collected over the previous calendar quarter,
plus (b) the average minimum monthly invoice fee collected over the previous calendar quarter. As
used in this Agreement, the term “Business Day” means any day on which commercial banks are not
authorized or required to close in Houston, Texas.

     Section 26. Waiver.

Any failure by Purchaser to exercise any of its rights hereunder shall not be deemed to be a
waiver by Purchaser of such or any other rights, nor in any manner impair the subsequent exercise
of the same or any other right, and any waiver by Purchaser of any Event of Default or Default
shall not constitute a waiver of any subsequent Event of Default or Default.

8

 

     Section 27. Choice of Law; Venue, Service of Process; Arbitration.

This Agreement shall be construed according to the laws of the State of Texas, and shall be wholly
performable in Harris County, Texas. Except as provided herein the following Arbitration Provision
(“Arbitration Provision”), any action or proceeding against Seller under or in connection with this
Agreement or any of the Purchase Documents may be brought in any state or federal court in Harris
County, Texas, and Seller hereby irrevocably submits to the nonexclusive jurisdiction of such
courts and waives any objection it may now or hereafter have as to the venue of any such court as
an inconvenient forum. Seller agrees that service of process upon it may be made by certified or
registered mail, return receipt requested, at its office specified in this Agreement, regardless of
whether said notice is claimed or received by Seller. Except as provided in the Arbitration
Provision, nothing herein or in any of the Purchase Documents shall affect the right of Purchaser
to serve process in any other manner permitted by law or shall limit the right of Purchaser to
bring any action or proceeding against Seller or with respect to any of its property in courts in
other jurisdictions. Except as provided in the Arbitration Provision, any action or proceeding by
Seller against Purchaser shall be brought only in a court located in Harris County, Texas.

     Section 28. ARBITRATION PROVISION. The Seller and Purchaser agree that all disputes,
claims and controversies arising from this document or any documents executed in connection
herewith or otherwise, including without limitation contract and tort disputes, shall be arbitrated
pursuant to the Rules of the American Arbitration Association, upon request of any party. No act to
take or dispose of any collateral securing the Obligations or covered by this instrument shall
constitute a waiver of this arbitration provision or be prohibited by this arbitration provision.
This includes, without limitation, obtaining injunctive relief or a restraining order; invoking a
power of sale under any deed of trust or mortgage; obtaining a writ of attachment or imposition of
a receiver; or exercising any rights relating to personal property, including taking or disposing
of such property with or without judicial process pursuant to Article 9 of the Uniform Commercial
Code. Any disputes, claims or controversies concerning the lawfulness or reasonableness of any act,
or exercise of any right concerning any collateral securing the Obligations or covered by this
instrument, including any claim to rescind, reform, or otherwise modify any agreement relating to
the collateral securing the Obligations or covered by this instrument, shall also be arbitrated,
provided however that no arbitrator shall have the right or the power to enjoin or restrain any act
of any party. Judgment upon any award rendered by any arbitrator may be entered in any court having
jurisdiction; provided, however, that nothing contained herein shall be deemed to be a waiver by
any party that is a bank of the protections afforded to it under 12 USC Section 91, Texas Finance
Code Sections 35.009 and 36.005, or any other protection provided banks by the laws of Texas or the
United States. The statute of limitations, estoppel, waiver, laches, and similar doctrines which
would otherwise be applicable in an action brought by a party shall be applicable in any
arbitration proceeding, and the commencement of an arbitration proceeding shall be deemed the
commencement of an action for these purposes. The Federal Arbitration Act shall apply to the
construction, interpretation, and enforcement of this arbitration provision. If the Federal
Arbitration Act is inapplicable to any such claim or controversy for any reason, such arbitration
shall be conducted pursuant to the Texas General Arbitration Act and in accordance with this
arbitration provision and the Commercial Arbitration Rules of the American Arbitration
Association.

     Section 29. Assignment; Successors and Assigns.

Purchaser may from time to time assign its rights under this Agreement, and the assignee shall
be entitled to all of the rights and remedies of Purchaser under this Agreement, including its
rights as a secured party. This Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective administrators, legal representatives, successors and assigns;
however, Seller may not assign its obligations or rights under this Agreement without the written
consent of Purchaser.

     Section 30. Severability.

If any provision of this Agreement shall, for any reason, be held to violate any applicable law,
then the remaining portion of this Agreement shall remain in full force and effect.

     Section 31. Headings, Construction.

The headings contained in this Agreement are for reference purposes only and shall not modify
or affect the terms of this Agreement in any manner.

     Section 32. Saturday, Sunday or Legal Holiday.

If any day provided in this Agreement for the performance of any obligation should fall on a
day which is not a Business Day, the compliance with such obligation or delivery shall be deemed
acceptable on the next Business Day following such day.

     Section 33. Notices.

Any notice, demand or request permitted, required or desired to be given under this Agreement
shall be in writing and shall be deemed effectively given when actually hand delivered, when sent
by facsimile to the number set forth below for each party or when sent by United States certified
or registered mail, return receipt requested, postage prepaid, or sent by private, receipted
carrier guaranteeing same-day or next-day delivery, addressed as follows:

9

 

If to Purchaser:

Amegy Bank National Association

Accounts Receivable Finance Division

P.O. Box 27459

Houston, Texas 77227-7459

Attention: Robin Gutierrez

Telephone No.: (713) 235-8800

Fax No.: (713) 232-2542

If to Seller:

VIEWCAST.COM, INC. also dba VIEWCAST CORPORATION and OSPREY TECHNOLOGIES, INC. and VIDEOWARE, INC.

3701 W. Plano Parkway, Suite 300

Plano, TX 75075

Attention: David T. Stoner

Telephone No.: 972-488-7200

Fax No.: 972-488-7299

     Section 34. Costs of Enforcement.

In the event of any default or breach by Seller under this Agreement, or any portion hereof,
whether or not such enforcement becomes necessary by reason of a breach or default by Seller
and/or in the event it becomes necessary for Purchaser to employ an attorney and incur other
expenses to collect any Receivable or Obligation, Seller agrees to pay to Purchaser on demand, from
time to time as such amounts are incurred by Purchaser, an amount or amounts equal to all fees,
expenses, attorneys’ fees and costs incurred by Purchaser including but not limited to court costs
and reasonable attorneys’ fees. The costs described in this section may become Obligations under
Section 12 of this Agreement. Furthermore, Seller agrees to reimburse Purchaser on demand for the
actual amount of all costs and expenses, including attorneys’ fees, which Purchaser has incurred or
may incur in:

          (a) negotiating, preparing, or administering this Agreement and any documents prepared in
connection herewith, all of which shall be paid contemporaneously with the execution hereof or upon
demand;

          (b) any way arising out of this Agreement;

          (c) protecting, preserving or enforcing any lien, security interest or other right granted by
Seller to Purchaser or arising under applicable law, whether or not suit is brought, including but
not limited to the defense of any claims or Disputes; and

          (d) complying with any subpoena or other legal process attendant to any litigation in which
Seller is a party, including photocopying and travel expenses.

     Section 35. Nature of Charges.

The Discounts, any additional Discounts, and commissions or other charges payable hereunder
constitute consideration for Purchaser’s services provided hereunder in connection with making
credit investigations, supervising the ledgering of accounts purchased, supervising the collection
of the accounts purchased, assuming certain risks and other services provided by Purchaser
hereunder. Nothing contained herein shall be construed to require the payment of interest for the
use, forbearance, or detention of money (except with respect to the interest that may be charged by
Purchaser under Section 15) ; however, should a court of competent jurisdiction rule that any part
of Purchaser’s discounts, additional discounts, and factoring commissions or any other charges
hereunder are in fact or in law to be treated as interest on funds advanced, in no event shall
Seller be obligated to pay that interest at a rate in excess of the maximum amount permitted by
law, and all agreements, conditions, or stipulations contained herein, if any, which may in any
event or contingency whatsoever operate to bind, obligate, or compel Seller to pay a rate of
interest exceeding the maximum rate of interest permitted by law shall be without binding force or
effect at law or in equity to the extent only of the excess of interest over such maximum rate of
interest permitted by law. Also in such event, Purchaser may “spread” all charges characterized as
interest over the entire term of all transactions with Seller and may refund to Seller the excess
of any payments made over the highest lawful rate. It is the intention of the parties hereto that
in the construction and interpretation of this Agreement, this paragraph shall be given precedence
over any other agreement, condition, or stipulation herein contained which is in conflict with
same.

     Section 36. Equitable Subrogation.

To the extent that Purchaser advances proceeds under this Agreement to Seller that are used to
pay any prior indebtedness secured by any outstanding lien, security interest, charge or prior
encumbrance against, in, on or to the Receivables, then such proceeds shall have been advanced by
Purchaser at Seller’s request; and Purchaser shall be fully subrogated to any and all rights,
titles, interests, powers, equities, liens, encumbrances, and security interests (collectively
“Liens”) owned or granted by any owner or holder of such Liens, irrespective of whether said Liens
are released of record, or otherwise, and all of said Liens shall fully inure to the benefit of
Purchaser.

10

 

     Section 37. Facsimile.

Seller agrees that any executed facsimile (faxed) copy of documents received by Purchaser relating
to this agreement, including but not limited to Schedules A, Invoices or Bills of Lading, shall be
deemed to be of the same force and effect as the original, manually executed documents.

     Section 38. Joint and Several Obligations.

If more than one party is executing this Agreement as Seller, each party agrees that its
obligations hereunder are joint and several. Each party constituting Seller agrees each party
constituting Seller warrants to Purchaser that (a) the value of the consideration received and to
be received by it as a result of its liability on the obligations of each other Seller is
reasonably worth at least as much as the liability and obligation it has hereunder, and (b) such
liability and obligation may reasonably be expected to benefit it, directly or indirectly. Each
party constituting Seller specifically agrees that execution by any one of them of any Schedule A,
bill of sale, or other instrument executed in connection herewith shall be deemed the fully
authorized act of each party constituting Seller, jointly and severally binding upon each.

     Section 39. Obligations Absolute.

Seller and (if more than one party) each party constituting Seller agrees that its obligations
shall not be released, diminished, impaired or affected by the occurrence of any one or more of the
following events, all of which may occur without notice to or consent of any other Seller:

     (a) Any release, partial release, subordination or loss of any security, guaranty or
collateral at any time existing in connection with the obligations contained herein;

     (b) The death, insolvency, bankruptcy, disability or incapacity of any Seller, any
guarantor, or any other party now or hereafter obligated hereon;

     (c) Any renewal, extension, and/or rearrangement of all or any portion of the
obligations contained herein;

     (d) Any neglect, delay, omission, failure or refusal of Purchaser to take or prosecute
any action for the collection of the obligations provided herein;

     (e) The unenforceability for any reason of all or any part of the obligations
contained herein against any Seller, guarantor or other party;

     (f) The finding of any payment by any Seller to constitute a preference under
bankruptcy or similar debtor relief law;

     (g) Any release or partial release of liability of any Seller, guarantor or other
party; or

     (h) Any other action that might impair rights in the nature of contribution or
subrogation that any Seller might otherwise have.

     Section 40. Seller’s Waiver of Notice.

Seller hereby waives notice of nonpayment of any Receivables as well as all other notices,
demands or presentations for payment under this Agreement. Seller further agrees that Purchaser may
extend, modify or renew from time to time the payment of any Receivable without notice to or
consent by Seller.

     Section 41. Entire Agreement; Amendment.

This Agreement and the other instruments executed and delivered by Seller and Purchaser in
connection herewith represents and embodies the final, entire agreement between the parties hereto
and supersedes any and all prior commitments, agreements, representations and understandings,
whether written or oral relating to the subject matter hereof and may not be contradicted or varied
by evidence of prior, contemporaneous or subsequent oral agreements or discussions of the parties
hereto. There are no oral agreements between the parties hereto. The provisions of this Agreement
may not be amended or modified except by a written instrument executed by Purchaser and Seller.

     Section 42. Release of Liability.

Seller hereby releases and exculpates Purchaser, its officers, employees, attorneys and designees,
from any liability arising from any acts under this Agreement or in furtherance thereof whether of
omission or commission, and whether based upon any error of judgment or mistake of law or fact,
except for willful misconduct. In no event will Purchaser have any liability to Seller for lost
profits or other special or consequential damages. Without limiting the generality of the
foregoing, Seller releases Purchaser from any claims which Seller may now or hereafter have arising
out of Purchaser’s endorsement and deposit of checks issued by Seller’s customers stating that they
were in full payment of an account, but issued for less than the full amount which may have been
owed on the account.

     Section 43. Conflict.

Unless otherwise expressly stated in any other agreement between Purchaser and Seller, if a
conflict exists between the provisions of this Agreement and the provisions of such other
agreement, the provisions of this Agreement shall control.

11

 

     DATED this        day of                     , 2007.

	 	 	 	 	 
	 	PURCHASER:

AMEGY BANK NATIONAL ASSOCIATION

 	 
	 	By:  	 	 
	 	 	Name : Robin Gutierrez 	 
	 	 	Title:  	Vice President 	 
	 
	 	SELLER:

VIEWCAST.COM, INC. also dba VIEW CAST CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	David T. Stoner 	 
	 	 	Title:  	President 	 
	 
	 	SELLER:

OSPREY TECHNOLOGIES, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	David T. Stoner 	 
	 	 	Title:  	President 	 
	 
	 	SELLER:

VIDEOWARE, INC.

 	 
	 	By:  	

 	 
	 	 	Name:  	David T. Stoner 	 
	 	 	Title:  	President 	 
	 

THE STATE OF TEXAS

COUNTY OF                     

     Before me,                     , a notary public, on this day personally appeared
David T. Stoner, President of VIEWCAST.COM, INC. dba VIEWCAST CORPORATION and
OSPREY TECHNOLOGIES, INC. and VIDEOWARE, INC., known to me to be the person whose name is
subscribed to the foregoing instrument and acknowledged to me that he/she executed the same for the
purposes and consideration therein expressed.

     Given under my hand and seal of office this        day of                       , 2007.

	 	 	 	 	 
	 	 	 
	 	 	 
	 	Notary Public — State of Texas 	 
	 	 	 
	 

12

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