Document:

Prepared by R.R. Donnelley Financial -- Separation and Release Agreement

  Exhibit 10.16
 
 SEPARATION AND RELEASE AGREEMENT
        This SEPARATION AND RELEASE AGREEMENT (the “Agreement”) is made and entered into by and between ROGUE WAVE SOFTWARE, INC. (“Rogue Wave”) and
DAVID A. RICE, with a principal residence at principal residence at 240 Dixon Road, Boulder, Colorado 80302 (“Mr. Rice”) (collectively “Parties”) as of the Execution Date of this Agreement defined in paragraph 29
below.
        WHEREAS, effective as of April 25, 2002, Mr. Rice tendered his resignation as Vice President Business Development and any and all other
positions he may have held as an employee, officer, and director of Rogue Wave as well as any such positions he may have held with Rogue Wave’s corporate affiliates, parents or subsidiaries;
        WHEREAS, Rogue Wave has accepted the resignation tendered by Mr. Rice;
        WHEREAS, the
Parties wish to make the separation amicable but conclusive on the terms and conditions set forth herein; and
        WHEREAS, Mr. Rice accepts the benefits
of this Agreement with the acknowledgment that by its terms he has been fully and satisfactorily compensated and will receive no payment, compensation, or benefits relating in any manner to Mr. Rice’s employment with Rogue Wave or the
separation thereof except as set forth in this Agreement.
 II.              COVENANTS
        NOW THEREFORE, in consideration of the above set forth recitals which are incorporated herein by reference and the mutual promises and covenants contained in this
Agreement, it is hereby agreed by and between the Parties hereto as follows:
        1.
       RESIGNATION. Mr. Rice has tendered and Rogue Wave has accepted Mr. Rice’s resignation as Vice President Business Development and any and all other positions he may have held as an
employee, officer, and director of Rogue Wave as well as any such positions he may have held with any of Rogue Wave’s corporate affiliates, parents or subsidiaries, effective as of April 26, 2002 (“Separation Date”).

       2.       MODIFICATION AND SUBSTITUTION OF AGREEMENT. The Parties
agree that this Agreement shall replace, modify, and completely supercede any obligations set forth in any former agreement, whether written or oral concerning the terms of Mr. Rice’s employment with, or separation from, Rogue Wave. This
Agreement establishes the final agreement between the parties as to the obligations of Rogue Wave, and this Agreement may be altered only in a writing signed by the Chief Executive Officer of Rogue Wave Software, Inc.
        3.        CONSIDERATION. Although Rogue Wave has no policy or procedure requiring payment of any severance benefits,
Rogue Wave agrees to the following as part of this Agreement: Rogue Wave agrees to pay Mr. Rice $50,000.00 (Fifty Thousand Dollars), less all legally required deductions and required withholdings (“Lump Sum Payment”). The Lump
Sum

  Payment shall be made in a one-time payment within 14 days of the Execution Date of this Agreement. The Lump Sum Payment shall be by check and delivered by first class mail,
overnight delivery, or hand delivery (at the sole option of Rogue Wave) to Mr. Rice at the address of his principal residence set forth above.
        4.
       INSURANCE. To the extent permitted by the federal COBRA law, applicable state laws, and the insurance policies and rules applicable to Rogue Wave, Mr. Rice will be eligible to continue
his health insurance benefits. Mr. Rice acknowledges that Rogue Wave has provided him with a COBRA notification form setting forth Mr. Rice’s rights and responsibilities with regard to COBRA coverage. Should Mr. Rice timely elect to continue
coverage pursuant to COBRA, Rogue Wave agrees to pay the premiums in the amount of the premium to that which Rogue Wave paid immediately prior to the Separation Date for Mr. Rice’s insurance coverage for a period beginning May 1, 2002 and
concluding July 31, 2002 (“COBRA Payment Period”), unless this obligation is terminated earlier as set forth in this Agreement. Should Mr. Rice obtain employment during the COBRA Payment Period, Rogue Wave’s obligation under this
paragraph shall forever cease upon the expiration of the waiting period (if any) for entitlement to insurance coverage through Mr. Rice’s new employer. Mr. Rice agrees to notify Rogue Wave in writing in the event Mr. Rice obtains employment
during the COBRA Payment Period.
        5.       FORGIVENESS OF PAYMENTS UNDER LOAN AGREEMENT. Rogue Wave
and Mr. Rice acknowledge and agree that, as consideration for the releases set forth in this Agreement, Mr. Rice has no further obligations under the Loan Agreement executed February 19, 2001 between Mr. Rice and Rogue Wave, provided however,
that any taxes owing with respect to the forgiveness of any payments under the Loan Agreement will be the sole responsibility of Mr. Rice, and Rogue Wave may withhold any taxes due from such forgiveness from any other payment under this Agreement as
required by law. In addition, Mr. Rice agrees to fully indemnify and hold harmless Rogue Wave for any tax liability Rogue Wave may incur as a result of the forgiveness of payments under the Loan Agreement as set forth in this paragraph.

       6.        FORGIVENESS OF RELOCATION AMOUNTS. In consideration for the releases
set forth in this Agreement, Rogue Wave will forgive, and will not require repayment of, Mr. Rice’s obligation to repay amounts paid to Mr. Rice during his relocation to the Boulder, Colorado, area.
        7.        SHARES SUBJECT TO OPTION. Pursuant to your stock option grant(s) and the plan(s) governing those
grant(s) (the “Stock Plan”), vesting of your stock options will cease on your Separation Date. Any right to exercise any vested shares will be as set forth in your stock option grant notice, the stock option agreement, and the Stock
Plan.
        8.        OTHER COMPENSATION. Except as expressly provided herein, Mr. Rice
acknowledges and agrees that Mr. Rice will not receive (nor is Mr. Rice entitled to receive) any consideration, compensation, payments, bonuses, commissions, reimbursements, incentive payments, stock, equity interests, stock options, or benefits of
any kind. Mr. Rice further acknowledges and agrees that Rogue Wave has paid to Mr. Rice in full any and all wages, salary, accrued but unused vacation, floating holiday accrued but not taken, personal time off, commissions, bonuses, stock options,
incentive payments and compensation due and owing, if

 
 any, as of the Separation Date. The Parties also agree that, except as provided in paragraph 15 of this Agreement supercedes any and all prior agreements concerning the
obligations of Rogue Wave to Mr. Rice.
        9.        DENIAL OF LIABILITY. The Parties
acknowledge that any payment by Rogue Wave and any release by Mr. Rice pursuant to this Agreement are made to ensure that the separation is amicable, that in making any such payment or release, Rogue Wave and Mr. Rice in no way admit any liability
to each other and that they expressly deny any such liability.
        10.       NONDISPARAGEMENT. Mr.
Rice agrees that he will not at any time disparage Rogue Wave nor any of its officers or directors to third parties in any manner likely to be harmful to Rogue Wave, its business reputation, or the personal or business reputation of its officers,
directors, shareholders and/or employees. Notwithstanding the prohibition in the preceding sentence, Mr. Rice shall respond truthfully, accurately and fully to any question, inquiry, or request for information when required by legal
process.
        11.       ROGUE WAVE PROPERTY. Prior to the Separation
Date, Mr. Rice agrees to return to Rogue Wave all Rogue Wave documents in whatever form (and all copies thereof) and any and all other Rogue Wave property in Mr. Rice’s possession, custody or control, including, but not limited to, financial
information, customer information, customer lists, employee lists, Rogue Wave files, notes, contracts, contracts, drawings, records, business plans and forecasts, financial information, specifications, computer-recorded information, software,
tangible property, including any computer equipment, laptops, cellular telephones, pagers, credit cards, entry cards, identification badges and keys, and any materials of any kind which contain or embody any proprietary or confidential material of
Rogue Wave (and all reproductions thereof in any form including electronic or paper). Mr. Rice agrees that should he fail to comply with this paragraph of this Agreement, Rogue Wave may pursue any rights it has in law or in equity to recover such
information, to prevent Mr. Rice’s use, disclosure, or destruction of such property, and to recover damages for Mr. Rice’s retention, use, disclosure, or destruction of Rogue Wave property.
        12.       CONFIDENTIALITY/NON-DISCLOSURE. Mr. Rice acknowledges that confidentiality and nondisclosure of the
terms of this Agreement are material considerations for the Parties entering into this Agreement. Mr. Rice acknowledges, represents, and agrees that he has not and will not discuss the terms or provisions of the Agreement with any current or former
Rogue Wave employee except the Vice President of Human Resources and the Chief Executive Officer. As such, the provisions of this Agreement shall be held in strictest confidence by Mr. Rice and shall not be publicized or disclosed in any manner
whatsoever, including but not limited to, the print or broadcast media, any public network such as the Internet, any other outbound data program such as computer generated mail, reports or faxes, or any source likely to result in publication or
computerized access. Notwithstanding the prohibitions in this paragraph: (a) the Mr. Rice may disclose this Agreement in confidence to his attorneys, accountants, auditors, tax preparers, and financial advisors; and (b) Mr. Rice may disclose this
Agreement insofar as such disclosure may be necessary to enforce its terms or as otherwise required by law. Mr. Rice agrees and acknowledges that any breach of the foregoing provisions concerning confidentiality would cause damage to Rogue Wave in
an amount that would be extremely difficult or impossible to calculate. Accordingly, Mr. Rice agrees that, in the event of any breach by Mr.

  Rice, his spouse, attorneys, accountants, or tax advisors of the foregoing provisions, Rogue Wave shall be entitled to liquidated damages in the amount of Twenty Five Thousand
Dollars ($25,000). Mr. Rice explicitly agrees and acknowledges that this provision with respect to liquidated damages is reasonable under the circumstances existing at the time the Agreement was made.
        13.       BUSINESS EXPENSE REIMBURSEMENT. Rogue Wave agrees to reimburse Mr. Rice for those reasonable business
expenses he necessarily incurred in his capacity as a Rogue Wave employee prior the Separation Date to the extent such expenses are consistent with Rogue Wave’s policies in this regard. Mr. Rice acknowledges and agrees that Rogue Wave will not
reimburse him for any expenses he incurred after the Separation Date. Mr. Rice must submit the necessary documentation establishing the amount, date and reason for expenses he incurred and for which he seeks reimbursement no later than 15 days after
the Separation Date.
        14.       REFERENCES. To coordinate Rogue Wave’s response to any
inquiries from prospective employers seeking employment references concerning Mr. Rice, Mr. Rice agrees to direct such prospective employers exclusively to the Rogue Wave Vice President of Human Resources. Should the Vice President of Human
Resources receive an inquiry, the Vice President (or an authorized agent acting on behalf of the Vice President) shall confirm Mr. Rice’s period of employment with Rogue Wave, the position he held, and the latest salary that he received as an
employee and will state that company policy precludes the release of further information.
        15.       NONDISCLOSURE OF PROPRIETARY INFORMATION AND NON-COMPETITION AGREEMENT.
Mr. Rice agrees and acknowledges that he is bound, and will continue to be bound after the Execution Date of this Agreement, by the terms of the Employee Proprietary Information and Inventions Agreement (“Confidentiality Agreement”)
between Mr. Rice and Rogue Wave, executed by Mr. Rice on September 23, 1999, a copy of which is attached hereto as Exhibit A and which is incorporated herein as if set forth in full. Mr. Rice specifically acknowledges that, without
limitation, he remains bound by a covenant not to compete with Rogue Wave for the period of time specified in the Confidentiality Agreement. Mr. Rice acknowledges that this restriction prohibits him, without limitation, from engaging in the design,
development, marketing or sale of any product, service, process, system, or software that was marketed, sold, or under development by Rogue Wave (including Rogue Wave’s subsidiaries and divisions) at any time during Mr. Rice’s employment
with Rogue Wave. Mr. Rice also specifically acknowledges that, without limitation, he remains bound by a covenant not to solicit Rogue Wave customers, employees, and partners. Nothing in this paragraph should be construed to narrow the obligations
of Mr. Rice imposed by any other agreement, statute, case law or other source.
        16.       RELEASE OF
CLAIMS BY MR. RICE. For the consideration set forth in this Agreement and the mutual covenants of Rogue Wave and Mr. Rice, Mr. Rice hereby releases, acquits and forever discharges Rogue Wave, its
affiliated corporations and entities, its and their officers, directors, agents, representatives, servants, attorneys, employees, shareholders, successors and assigns of and from any and all claims, liabilities, demands, causes of action, costs,
expenses, attorneys’ fees, damages, indemnities and obligations of every kind and nature,

 
 in law, equity, or otherwise, known or unknown, suspected and unsuspected, disclosed and undisclosed, liquidated or contingent, arising out of or in any way related to
agreements, events, acts or conduct at any time prior to and including the Execution Date, including but not limited to: any and all such claims and demands directly or indirectly arising out of or in any way connected with Mr. Rice’s
employment with Rogue Wave or the conclusion of that employment; claims or demands related to salary, bonuses, commissions, incentive payments, stock, stock options, or any ownership or equity interests in Rogue Wave, vacation pay, personal time
off, fringe benefits, expense reimbursements, sabbatical benefits, severance benefits, or any other form of compensation; claims pursuant to any federal, any state or any local law, statute, common law or cause of action including, but not limited
to, the Federal Civil Rights Act of 1964, as amended; damages, attorney’s fees, court costs, or any expenses under Title VII of the Federal Civil Rights Act of 1964, as amended; the Federal Americans with Disabilities Act of 1990; the Family
and Medical Leave Act; the Employee Retirement Income Security Act; the Colorado Anti-Discrimination Act; the Age Discrimination in Employment Act; the Equal Pay Act of 1963, as amended; the Fair Labor Standard Act, as amended; tort law; contract
law; wrongful discharge; discrimination; harassment; fraud; misrepresentation; defamation; libel; emotional distress; breach of the implied covenant of good faith and fair dealing, or any other obligation arising under any statute, agreement or
source of law. Mr. Rice agrees that in the event he brings a claim or charge covered by this release, or does not dismiss with prejudice and withdraw any claim covered by this release, in which he seeks damages against Rogue Wave or in the event he
seeks to recover against Rogue Wave in any claim brought by a governmental agency on his behalf, this Agreement shall serve as a complete defense to such claims or charges.
        17.       TAX CONSEQUENCES. Mr. Rice expressly acknowledges that Rogue Wave has not made, nor herein makes, any representation
about the tax consequences of any consideration provided by Rogue Wave to Mr. Rice pursuant to this Agreement. Mr. Rice agrees to indemnify and hold Rogue Wave harmless for any and all claims or penalties asserted against Rogue Wave for failure to
pay taxes due on any consideration provided by Rogue Wave pursuant to this Agreement.
        18.       COOPERATION. Mr. Rice agrees to fully cooperate with Rogue Wave and make himself available to the company for any investigations or
lawsuits involving Rogue Wave or its successors or assigns. Except for time spent in depositions or trial, Mr. Rice will be paid an hourly rate based on his final base salary for time spent at the request of Rogue Wave. Rogue Wave agrees to provide
reasonable notice to Mr. Rice of the need to so participate in any investigation, deposition or trial and shall undertake in good faith to coordinate such time so as to not be a burden upon Mr. Rice’s new employment. Nothing in this Agreement
will restrict or preclude Mr. Rice from, or otherwise influence Mr. Rice in, testifying fully and truthfully in legal, administrative, or any other proceedings involving Rogue Wave, as required by law or formal legal process.
        19.       AGREEMENT NOT TO SEEK REEMPLOYMENT. As a free and voluntary
act, Mr. Rice agrees never to seek or accept direct or indirect employment or consulting or contracting employment with Rogue Wave for a period of five (5) years from the Execution Date of this Agreement. If this provision is breached by Mr. Rice,
the application will be rejected by Rogue Wave without any resulting liability for Rogue Wave. In the event Mr. Rice is employed as an

 
 employee, consultant, independent contractor, or otherwise, in contravention of the terms of this paragraph 19 of this Agreement, he shall be subject to summary dismissal
or discharge without any resulting liability for Rogue Wave. Notwithstanding the foregoing, Rogue Wave and Mr. Rice agree that Mr. Rice may seek or accept employment as an employee, consultant, independent contractor, or sub-contractor with any
person or entity that contracts with Rogue Wave, provided he does not work directly or indirectly on work related to Rogue Wave and that such employment does not violate Mr. Rice’s obligations under the Confidentiality Agreement or any state or
federal law, including but not limited to the protection of Rogue Wave’s trade secrets. Mr. Rice represents that he does not currently have any application for employment pending with Rogue Wave.
        20.       NO THIRD PARTY RIGHTS. The Parties agree that by making this Agreement, they do not
intend to confer any benefits, privileges, or rights to others. The Agreement is strictly between the Parties hereto, subject to the terms of paragraph 24 below, and that it shall not be construed to vest in any other the status of third-party
beneficiary.
        21.       VOLUNTARY AND KNOWINGLY. Mr. Rice acknowledges that, before
executing this Agreement, he has been advised and given the opportunity to consult with counsel and has in fact sought and received advice from counsel of his own choosing, and was fully advised of his rights under law. Mr. Rice further acknowledges
that he has reviewed this Agreement in its entirety, understands it, and voluntarily executes it.
        22.       DUTY TO EFFECTUATE. The Parties agree to perform any lawful additional acts, including the execution of additional
agreements, as are reasonably necessary to effectuate the purpose of this Agreement.
        23.       ENTIRE
AGREEMENT. Except for those agreements expressly referenced herein, this Agreement, including Exhibits A hereto, constitutes the complete, final and exclusive embodiment of the entire agreement between Mr. Rice and Rogue Wave with
regard to the subject matter hereof. This Agreement is entered into without reliance on any promise or representation, written or oral, other than those expressly contained herein. It may not be modified except in a writing signed by the Chief
Executive Officer of Rogue Wave.
        24.       SUCCESSORS AND ASSIGNS. This Agreement,
including Exhibit A, hereto, shall bind the heirs, personal representatives, successors, assigns, executors and administrators of each party, and insure to the benefit of each party, its heirs, successors and assigns.
        25.       APPLICABLE LAW. The Parties agree and intend that Colorado statutes and case law shall govern
any and all disputes arising between the Parties relating to, construing, interpreting, or enforcing this Agreement and relating to any other aspect of Mr. Rice’s employment with Rogue Wave.
        26.       ARBITRATION. The Parties agree, that to submit any dispute between them concerning or arising out of this Agreement, or concerning
or arising out of Mr. Rice’s employment with Rogue Wave, to resolution in final and binding arbitration in Denver, Colorado under the American Arbitration Association’s Rules for the Resolution of Employment Disputes

  before an arbitrator selected from the Judicial Arbiter Group located in Denver, Colorado. The parties agree that the arbitration proceedings shall not be open to the public.
The arbitrator will be selected by mutual agreement of the parties, and such agreement shall not be unreasonably withheld. The decision of the arbitrator shall be final and binding. The arbitration award may be enforced in any court of competent
jurisdiction. Each party will bear her/its own costs and attorneys’ fees incurred in connection with any arbitration, and no party or an attorney for any party shall seek or accept an award of attorneys’ fees under any
statute, rule or order of court in connection with the lawsuit. The Parties agree that nothing in this paragraph shall prevent Rogue Wave, at its discretion, from pursuing in a court of competent jurisdiction (i) any equitable claim against Mr.
Rice, or (ii) any claim concerning Mr. Rice’s obligation under paragraphs 10 and 11 of this Agreement and the Confidentiality Agreement, and (iii) any dispute concerning Mr. Rice’s fiduciary duty to Rogue Wave, Rogue Wave property, and
Rogue Wave trade secrets. A party bringing an action in contravention of this paragraph shall be liable to the other party for the costs, expenses and attorney’s fees incurred in successfully dismissing the action or successfully transferring
the action to arbitration under this paragraph.
        27.       SEVERABLE. If any provision of this
Agreement is determined to be invalid, void or unenforceable, in whole or in part, this determination will not affect any other provision of this Agreement, and the provision in question shall be modified so as to be rendered enforceable.

       28.       ENFORCE ACCORDING TO TERMS. The Parties intend this
Agreement to be enforced according to its terms.
        29.       EXECUTION DATE. This
Agreement is effective on the later of the dates that each of the Parties signed this Agreement (“Execution Date”).
        30.       COUNTERPARTS. This Agreement may be executed in one or more counterparts, any of which need not contain the signatures of more than
one party but all signed counterparts taken together will constitute one and the same argument.
        31.       SECTION HEADINGS. The section and paragraph headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement.
        32.       EXPIRATION.
Unless otherwise agreed to by Rogue Wave in writing signed by an authorized Rogue Wave representative, this agreement must be executed by Mr. Rice and delivered to Rogue Wave no later than May 6, 2002, to be effective or binding on Rogue
Wave.

 
        IN WITNESS WHEREOF, the Parties have duly authorized and caused this Agreement to be executed as follows:

	DAVID A. RICE, an individual	 	ROGUE WAVE SOFTWARE, INC., 
a Delaware corporation
	 	 	 
	/s/ David A.
Rice                                        
              	 	/s/ John
Floisand                                       
               
	David A. Rice	 	By: John Floisand 
Its: Chief Executive Officer
	 	 	 
	Date: May
6                                        
            ,  2002	 	Date: May
6                                        
            , 2002
	 	 	 

 Exhibit A: Employee Proprietary Information and Inventions Agreement, filed as Exhibit 10.13, Exhibit D, to the Registrant’s
quarterly report on Form 10-Q for the quarter ended December 31, 2001.<PAGE>

                                                                 Exhibit 10.139

[BANK ONE GRAPHIC]                                                    Term Note

                                                                     $342,000.00
Due: April 30, 2005                                         Date: April 30, 2002

Promise to Pay. On or before April 30, 2005, for value received, the undersigned
(the "Borrower") promises to pay to Bank One, NA, with its main office in
Chicago, IL, whose address is 1301 S. Bowen Rd., Arlington, TX 76013 (the
"Bank") or order, in lawful money of the United States of America, the sum of
Three Hundred Forty-Two Thousand and 00/100 Dollars ($342,000.00) plus interest
computed on the basis of the actual number of days elapsed in a year of 360 days
at the rate of 0.25% per annum above the Prime Rate (the "Note Rate"), and at
the rate of 3.00% per annum above the Note Rate, at the Bank's option, upon the
occurrence of any default under this Note, whether or not the Bank elects to
accelerate the maturity of this Note, from the date such increased rate is
imposed by the Bank. In this Note, "Prime Rate" means a rate per annum equal to
the prime rate of interest announced from time to time by the Bank or its parent
(which rate is not necessarily the lowest rate charged to any customer),
changing when and as the prime rate changes.

In no event shall the interest rate exceed the maximum rate allowed by law. Any
interest payment that would for any reason be unlawful under applicable law
shall be applied to principal.

The Borrower will pay this sum in consecutive monthly installments of Two
Thousand Seven Hundred Five and 00/100 Dollars ($2,705.00), including interest,
commencing May 30, 2002, and continuing on the same day of each calendar month
thereafter until April 30, 2005, at which time the entire balance of unpaid
principal plus accrued interest shall be due and payable immediately.

The Borrower will pay, without setoff, deduction, or counterclaim, the Bank at
the Bank's address above or at such other place as the Bank may designate in
writing. If any payment of principal or interest on this Note shall become due
on a day that is not a Business Day, the payment will be made on the next
succeeding Business Day. The term "Business Day" in this Note means a day other
than a Saturday, Sunday or any other day on which national banking associations
are authorized to be closed. Payments shall be allocated among principal,
interest and fees at the discretion of the Bank unless otherwise agreed or
required by applicable law. Acceptance by the Bank of any payment that is less
than the payment due at that time shall not constitute a waiver of the Bank's
right to receive payment in full at that time or any other time.

Late Fee. If any payment is not received by the Bank within ten (10) days after
its due date, the Bank may assess and the Borrower agrees to pay a late fee
equal to the greater of: (a) five percent (5.00%) of the past due amount or (b)
Twenty Five and 00/100 Dollars ($25.00), up to the maximum amount of One
Thousand Five Hundred and 00/100 Dollars ($1,500.00) per late charge.

Business Loan. The Borrower acknowledges and agrees that this Note evidences a
loan for a business, commercial, agricultural or similar commercial enterprise
purpose, and that all advances made under this Note shall not be used for any
personal, family or household purpose.

Liabilities. The term "Liabilities" in this Note means all obligations,
indebtedness and liabilities of the Borrower to any one or more of the Bank,
BANK ONE CORPORATION, and any of their subsidiaries, affiliates or successors,
now existing or later arising, including, without limitation, all loans,
advances, interest, costs, overdraft indebtedness, credit card indebtedness,
lease obligations, or obligations relating to any Rate Management Transaction,
all monetary obligations incurred or accrued during the pendency of any
bankruptcy, insolvency, receivership or other similar proceedings, regardless of
whether allowed or allowable in such proceeding, and all renewals, extensions,
modifications, consolidations or substitutions of any of the foregoing, whether
the Borrower may be liable jointly with others or individually liable as a
debtor, maker, co-maker, drawer, endorser, guarantor, surety or otherwise, and
whether voluntarily or involuntarily incurred, due or not due, absolute or
contingent, direct or indirect, liquidated or unliquidated. The term "Rate
Management Transaction" in this Note means any transaction (including an
agreement with respect thereto) now existing or hereafter entered into among the
Borrower, the Bank or BANK ONE CORPORATION, or any of its subsidiaries or
affiliates or their successors, which is a rate swap, basis swap, forward rate
transaction, commodity swap, commodity option, equity or equity index swap,
equity or equity index option, bond option, interest rate option, foreign
exchange transaction, cap transaction, floor transaction, collar transaction,
forward transaction, currency swap transaction, cross-currency rate swap
transaction, currency option or any other similar transaction (including any
option with respect to any of these transactions) or any combination thereof,
whether linked to one or more interest rates, foreign currencies, commodity
prices, equity prices or other financial measures.

Related Documents. The term "Related Documents" in this Note means all loan
agreements, credit agreements, reimbursement agreements, security agreements,
mortgages, deeds of trust, pledge agreements, assignments, guaranties, or any
other instrument or document executed in connection with this Note or in
connection with any of the Liabilities.

<PAGE>

Security. The term "Collateral" in this Note means all real or personal property
described in all security agreements, pledge agreements, mortgages, deeds of
trust, assignments, or other instruments now or hereafter executed in connection
with this Note or in connection with any of the Liabilities. If applicable, the
Collateral secures the payment of this Note and the Liabilities.

Bank's Right of Setoff. In addition to the Collateral, if any, the Borrower
grants to the Bank a security interest in, and the Bank is authorized to setoff
and apply, all Accounts, Securities and Other Property, and Bank Debt against
any and all Liabilities of the Borrower. This right of setoff may be exercised
at any time and from time to time, and without prior notice to the Borrower.
This security interest and right of setoff may be enforced or exercised by the
Bank regardless of whether or not the Bank has made any demand under this
paragraph or whether the Liabilities are contingent, matured, or unmatured. Any
delay, neglect or conduct by the Bank in exercising its rights under this
paragraph will not be a waiver of the right to exercise this right of setoff or
enforce this security interest. The rights of the Bank under this paragraph are
in addition to other rights the Bank may have in the Related Documents or by
law. In this paragraph: (a) the term "Accounts" means any and all accounts and
deposits of the Borrower (whether general, special, time, demand, provisional or
final) at any time held by the Bank (including all Accounts held jointly with
another, but excluding any IRA or Keogh Account, or any trust Account in which a
security interest would be prohibited by law); (b) the term "Securities and
Other Property" means any and all securities and other property of the Borrower
in the custody, possession or control of the Bank (other than property held by
the Bank in a fiduciary capacity); and (c) the term "Bank Debt" means all
indebtedness at any time owing by the Bank, to or for the credit or account of
the Borrower.

Prepayment Premium. Notwithstanding any contrary provision which may be
contained in this Note. Borrower shall have the right, at any time and from time
to time, to prepay all or any part of the principal of this Note, for which
right Borrower shall also pay a penalty equal to a percentage of the prepayment
amount. Prior to the first anniversary date of the Note, the penalty percentage
shall be 3%. On and after the first anniversary date of this Note and on and
after each successive anniversary date thereafter, the penalty previously in
effect shall reduce by one percent (1%). Partial prepayments shall be applied to
installments of principal in the inverse order of maturity and will not reduce
the amount or time of payment of the remaining installments.

Representations by Borrower. Each Borrower represents that: (a) the execution
and delivery of this Note and the performance of the obligations it imposes do
not violate any law, conflict with any agreement by which it is bound, or
require the consent or approval of any governmental authority or other third
party; (b) this Note is a valid and binding agreement, enforceable according to
its terms; and (c) all balance sheets, profit and loss statements, and other
financial statements furnished to the Bank in connection with the Liabilities
are accurate and fairly reflect the financial condition of the organizations and
persons to which they apply on their effective dates, including contingent
liabilities of every type, which financial condition has not changed materially
and adversely since those dates. Each Borrower, other than a natural person,
further represents that: (a) it is duly organized, existing and in good standing
pursuant to the laws under which it is organized; and (b) the execution and
delivery of this Note and the performance of the obligations it imposes (i) are
within its powers and have been duly authorized by all necessary action of its
governing body, and (ii) do not contravene the terms of its articles of
incorporation or organization, its by-laws, or any partnership, operating or
other agreement governing its affairs.

Events of Default/Acceleration. If any of the following events occurs this Note
shall become due immediately, without notice, at the Bank's option, and the
Borrower hereby waives notice of intent to accelerate maturity of this Note and
notice of acceleration of this Note upon any of the following events:

     1.   The Borrower, or any guarantor of this Note (the "Guarantor"), fails
          to pay when due any amount payable under this Note, under any of the
          Liabilities, or under any agreement or instrument evidencing debt to
          any creditor.

     2.   The Borrower or any Guarantor (a) fails to observe or perform any
          other term of this Note; (b) makes any materially incorrect or
          misleading representation, warranty, or certificate to the Bank; (c)
          makes any materially incorrect or misleading representation in any
          financial statement or other information delivered to the Bank; or (d)
          defaults under the terms of any agreement or instrument relating to
          any debt for borrowed money (other than the debt evidenced by this
          Note) and the effect of such default will allow the creditor to
          declare the debt due before its maturity.

     3.   In the event (a) there is a default under the terms of any Related
          Document, (b) any guaranty of the loan evidenced by this Note is
          terminated or becomes unenforceable in whole or in part, (c) any
          Guarantor fails to promptly perform under its guaranty, or (d) the
          Borrower fails to comply with, or pay, or perform under any agreement,
          now or hereafter in effect, between the Borrower and BANK ONE
          CORPORATION, or any of its subsidiaries or affiliates or their
          successors.

     4.   There is any loss, theft, damage, or destruction of any Collateral not
          covered by insurance.

     5.   A "reportable event" (as defined in the Employee Retirement Income
          Security Act of 1974 as amended) occurs that would permit the Pension
          Benefit Guaranty Corporation to terminate any employee benefit plan of
          the Borrower or any affiliate of the Borrower.

     6.   The Borrower or any Guarantor becomes insolvent or unable to pay its
          debts as they become due.

     7.   The Borrower or any Guarantor (a) makes an assignment for the benefit
          of creditors; (b) consents to the appointment of a custodian,
          receiver, or trustee for itself or for a substantial part of its
          assets; or (c) commences any proceeding under any bankruptcy,
          reorganization, liquidation, insolvency or similar laws of any
          jurisdiction.

                                       2

<PAGE>

     8.   A custodian, receiver, or trustee is appointed for the Borrower or any
          Guarantor or for a substantial part of its assets without its consent.

     9.   Proceedings are commenced against the Borrower or any Guarantor under
          any bankruptcy, reorganization, liquidation, or similar laws of any
          jurisdiction, and they remain undismissed for thirty (30) days after
          commencement; or the Borrower or the Guarantor consents to the
          commencement of those proceedings.

     10.  Any judgment is entered against the Borrower or any Guarantor, or any
          attachment, levy, or garnishment is issued against any property of the
          Borrower or any Guarantor.

     11.  The Borrower or any Guarantor, without the Bank's written consent (a)
          is dissolved, (b) merges or consolidates with any third party where
          Guarantor is not the survivor, (c) leases, sells or otherwise conveys
          a material part of its assets or business outside the ordinary course
          of its business, (d) leases, purchases, or otherwise acquires a
          material part of the assets of any other business entity, except in
          the ordinary course of its business, or (e) agrees to do any of the
          foregoing (notwithstanding the foregoing, any subsidiary may merge or
          consolidate with any other subsidiary, or with the Borrower, so long
          as the Borrower is the survivor).

     12.  There is a substantial change in the existing or prospective financial
          condition of the Borrower or any Guarantor that the Bank in good faith
          determines to be materially adverse.

     13.  The Bank in good faith deems itself insecure.

Remedies. If this Note is not paid at maturity, whether by acceleration or
otherwise, the Bank shall have all of the rights and remedies provided by any
law or agreement. The Bank is authorized to cause all or any part of the
Collateral to be transferred to or registered in its name or in the name of any
other person or business entity, with or without designating the capacity of
that nominee. Without limiting any other available remedy, the Borrower is
liable for any deficiency remaining after disposition of any Collateral. The
Borrower is liable to the Bank for all reasonable costs and expenses of every
kind incurred in the making or collection of this Note, including without
limitation reasonable attorneys' fees and court costs. These costs and expenses
include without limitation any costs or expenses incurred by the Bank in any
bankruptcy, reorganization, insolvency or other similar proceeding.

Waivers. Any party liable on this Note waives (a) to the extent permitted by
law, all rights and benefits under any laws or statutes regarding sureties, as
may be amended; (b) any right to receive notice of the following matters before
the Bank enforces any of its rights: (i) the Bank's acceptance of this Note,
(ii) any credit that the Bank extends to the Borrower, (iii) the Borrower's
default, (iv) any demand, diligence, presentment, dishonor and protest, or (v)
any action that the Bank takes regarding the Borrower, anyone else, any
Collateral, or any of the Liabilities, that it might be entitled to by law or
under any other agreement; (c) any right to require the Bank to proceed against
the Borrower, any other obligor or guarantor of the Liabilities, or any
Collateral, or pursue any remedy in the Bank's power to pursue; (d) any defense
based on any claim that any endorser or other parties' obligations exceed or are
more burdensome than those of the Borrower; (e) the benefit of any statute of
limitations affecting liability of any endorser or other party liable hereunder
or the enforcement hereof; (f) any defense arising by reason of any disability
or other defense of the Borrower or by reason of the cessation from any cause
whatsoever (other than payment in full) of the obligation of the Borrower for
the Liabilities; and (g) any defense based on or arising out of any defense that
the Borrower may have to the payment or performance of the Liabilities or any
portion thereof. Any party liable on this Note consents to any extension or
postponement of time of its payment without limit as to the number or period, to
any substitution, exchange or release of all or any part of the Collateral, to
the addition of any other party, and to the release or discharge of, or
suspension of any rights and remedies against, any person who may be liable for
the payment of this Note. The Bank may waive or delay enforcing any of its
rights without losing them. Any waiver affects only the specific terms and time
period stated in the waiver. No modification or waiver of any provision of this
Note is effective unless it is in writing and signed by the party against whom
it is being enforced.

Subordination. Any rights of any party liable on this Note, whether now existing
or hereafter arising, to receive payment on account of any indebtedness
(including interest) owed to any party liable on this Note by the Borrower, or
to withdraw capital invested by it in the Borrower, or to receive distributions
from the Borrower, shall at all times be subordinate to the full and prior
repayment to the Bank of the Liabilities. No party liable on this Note shall be
entitled to enforce or receive payment of any sums hereby subordinated until the
Liabilities have been paid in full and any such sums received in violation of
this paragraph shall be received by such party in trust for the Bank. Any party
liable on this Note agrees to stand still with regard to the Bank's enforcement
of its rights, including taking no action to delay, impede or otherwise
interfere with the Bank's rights to realize on the Collateral. The foregoing
notwithstanding, until the occurrence of any default, any party liable on this
Note is not prohibited from receiving distributions from the Borrower in an
amount equal to any income tax liability imposed on such party liable on this
Note attributable to an ownership interest in the Borrower, if any.

Rights of Subrogation. Any party liable on this Note waives and agrees not to
enforce any rights of subrogation, contribution or indemnification that it may
have against the Borrower, any person liable on the Liabilities, or the
Collateral, until the Borrower and such party liable on this Note have fully
performed all their obligations to the Bank, even if those obligations are not
covered by this Note.

Reinstatement. All parties liable on this Note agree that to the extent any
payment is received by the Bank in connection with the Liabilities, and all or
any part of such payment is subsequently invalidated, declared to be fraudulent
or preferential, set aside or

                                       3

<PAGE>

required to be repaid by the Bank or paid over to a trustee, receiver or any
other entity, whether under any bankruptcy act or otherwise (any such payment is
hereinafter referred to as a "Preferential Payment"), then this Note shall
continue to be effective or shall be reinstated, as the case may be, and whether
or not the Bank is in possession of this Note, and, to the extent of such
payment or repayment by the Bank, the Liabilities or part thereof intended to be
satisfied by such Preferential Payment shall be revived and continued in full
force and effect as if said Preferential Payment had not been made.

Governing Law and Venue. This Note is delivered in the State of Texas and
governed by Texas law (without giving effect to its laws of conflicts). The
Borrower agrees that any legal action or proceeding with respect to any of its
obligations under this Note may be brought by the Bank in any state or federal
court located in the State of Texas, as the Bank in its sole discretion may
elect. By the execution and delivery of this Note, the Borrower submits to and
accepts, for itself and in respect of its property, generally and
unconditionally, the non-exclusive jurisdiction of those courts. The Borrower
waives any claim that the State of Texas is not a convenient forum or the proper
venue for any such suit, action or proceeding.

Usury. The Bank does not intend to charge, collect or receive any interest that
would exceed the maximum rate allowed by law. If the effect of any applicable
law is to render usurious any amount called for under this Note or the other
Related Documents, or if any amount is charged or received with respect to this
Note, or if any prepayment by the Borrower results in the Borrower having paid
any interest in excess of that permitted by law, then all excess amounts
collected by the Bank shall be credited on the principal balance of this Note
(or, if this Note and all other indebtedness arising under or pursuant to the
other Related Documents have been paid in full, refunded to the Borrower), and
the provisions of this Note and the other Related Documents immediately shall be
deemed reformed and the amounts thereafter collectable reduced, without the
necessity of the execution of any new document, so as to comply with the then
applicable law. All sums paid, or agreed to be paid, by the Borrower for the
use, forbearance, or detention of money under this Note or the other Related
Documents shall, to the maximum extent permitted by applicable law, be
amortized, prorated, allocated and spread throughout the full term of such
indebtedness until payment in full so that the rate or amount of interest on
account of such indebtedness does not exceed the usury ceiling from time to time
in effect and applicable to such indebtedness for so long as such indebtedness
is outstanding. To the extent federal law permits the Bank to contract for,
charge or receive a greater amount of interest, the Bank will rely on federal
law instead of the Texas Finance Code. In no event shall Chapter 346 of the
Texas Finance Code apply to this Note. To the extent that Chapter 303 of the
Texas Finance Code is applicable to this Note, the "weekly ceiling" specified in
Chapter 303 is the applicable ceiling.

Miscellaneous. The Borrower, if more than one, is jointly and severally liable
for the obligations represented by this Note, the term "Borrower" means any one
or more of them, and the receipt of value by any one of them constitutes the
receipt of value by the others. This Note binds the Borrower and its successors,
and benefits the Bank, its successors and assigns. Any reference to the Bank
includes any holder of this Note. Section headings are for convenience of
reference only and do not affect the interpretation of this Note. Any notices
and demands under or related to this document shall be in writing and delivered
to the intended party at its address stated herein, and if to the Bank, at its
main office if no other address of the Bank is specified herein, by one of the
following means: (a) by hand, (b) by a nationally recognized overnight courier
service, or (c) by certified mail, postage prepaid, with return receipt
requested. Notice shall be deemed given: (a) upon receipt if delivered by hand,
(b) on the Delivery Day after the day of deposit with a nationally recognized
courier service, or (c) on the third Delivery Day after the notice is deposited
in the mail. "Delivery Day" means a day other than a Saturday, a Sunday, or any
other day on which national banking associations are authorized to be closed.
Any party may change its address for purposes of the receipt of notices and
demands by giving notice of such change in the manner provided in this
provision. This Note and any Related Documents embody the entire agreement
between the Borrower and the Bank regarding the terms of the loan evidenced by
this Note and supercede all oral statements and prior writings relating to that
loan. If any provision of this Note cannot be enforced, the remaining portions
of this Note shall continue in effect. The Borrower agrees that the Bank may
provide any information or knowledge the Bank may have about the Borrower or
about any matter relating to this Note or the Related Documents to BANK ONE
CORPORATION, or any of its subsidiaries or affiliates or their successors, or to
any one or more purchasers or potential purchasers of this Note or the Related
Documents. The Borrower agrees that the Bank may at any time sell, assign or
transfer one or more interests or participations in all or any part of its
rights and obligations in this Note to one or more purchasers whether or not
related to the Bank.

                 [THIS SPACE HAS BEEN INTENTIONALLY LEFT BLANK]

                                       4

<PAGE>

WAIVER OF SPECIAL DAMAGES. THE BORROWER WAIVES, TO THE MAXIMUM EXTENT NOT
PROHIBITED BY LAW, ANY RIGHT THE UNDERSIGNED MAY HAVE TO CLAIM OR RECOVER FROM
THE BANK IN ANY LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR
CONSEQUENTIAL DAMAGES.

JURY WAIVER. THE BORROWER AND THE BANK (BY ITS ACCEPTANCE HEREOF) HEREBY
VOLUNTARILY, KNOWINGLY, IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY RIGHT TO HAVE
A JURY PARTICIPATE IN RESOLVING ANY DISPUTE (WHETHER BASED ON CONTRACT, TORT, OR
OTHERWISE) BETWEEN THE BORROWER AND THE BANK ARISING OUT OF OR IN ANY WAY
RELATED TO THIS NOTE OR THE OTHER RELATED DOCUMENTS. THIS PROVISION IS A
MATERIAL INDUCEMENT TO THE BANK TO PROVIDE THE FINANCING EVIDENCED BY THIS NOTE.

<TABLE>
                                                  Borrower:
<S>       <C>                                     <C>

Address:  1000 Crawford Place, Suite 400          Mace Truck Wash, Inc. dba Red Baron Truck Wash
           Mt. Laurel, NJ 08054

                                                   By:   /s/ Gregory M. Krzemien
                                                      ---------------------------------------------------------
                                                      Gregory M. Krzemien                           Treasurer
                                                      ---------------------------------------------------------
                                                      Printed Name                                      Title

</TABLE>

Tracie L. Bush  TX12116

                                       5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]