On May 6, 2013, ViewCast.com Inc., Osprey Technologies, Inc. and Videoware, Inc. entered into a loan and security agreement effective April 30, 2013 with Ardinger Family Partnership Ltd. whereby Ardinger agreed to make a term loan to the borrower in an amount not to exceed $550,000.00. The current interest rate on the unpaid principal amount under the loan agreement is 7.5% per annum. Interest on the unpaid principal amount under the loan agreement is due in full at maturity.

Within 15 days after each month end, beginning with the month ending May 31, 2013, the borrower shall pay a portion of the indebtedness under the loan agreement in an amount equal to 5.0% of the borrower's total revenue or income earned during such prior month before any deductions or allowances. Within 3 business days of the borrower receiving the net proceeds of any asset sale that is not in the ordinary course of business, the borrower shall pay a portion of the indebtedness under the loan agreement in an amount equal to 100% of the net proceeds of such sale. The maturity date is April 30, 2015, subject to certain exceptions.

Absent approval from Ardinger, the loan agreement prohibits the borrower from taking certain actions, including, but not limited to incurring any lien on any of its assets, subject to certain exceptions; incurring indebtedness in excess of $250,000 in any fiscal year, subject to certain exceptions; granting any dividends on any equity interest of borrower; liquidating, merging, or consolidating with or into any entity; making capital expenditures in excess of $100,000 in any fiscal year; or creating, incurring, assuming, or suffering, to exist, any obligations as lessee under any lease, except leases in an aggregate amount less than $500,000 in any fiscal year and with lease terms of 36 months or less. The borrower ratified and confirmed existing liens previously granted by the borrower to Ardinger and granted to Ardinger a first priority lien and security interest in and to all of the collateral granted under the prior loan agreement between the same parties, which loan agreement is still in existence.