Modification Agreement dated November 5, 2010



  
 Exhibit 10.2

 Return to: 
 Erika B.
Newsom, Esq. 
 Smith Moore Leatherwood, LLP 
 300 E. McBee Avenue, Suite 500 
 Greenville, South Carolina 29601 

 

					
	  
	 	Space Above Line for Processing Data	 	  



 

					
	RBC Bank (USA)	 		  	 Modification Agreement
 (Cover Page)

			
		 		  	 Prepared by:
 Erika B.
Newsom, Esq.
 Smith Moore Leatherwood, LLP
 300 E. McBee Avenue, Suite 500
 Greenville, South Carolina 29601



 

					
	State of South Carolina	 		  	County of Greenville

  

			
	From:	  	COMPUTER SOFTWARE INNOVATIONS, INC., a Delaware corporation (“Borrower”), with a business/mailing address of 900 East Main Street, Suite T, Easley, South Carolina
29640.
		
	To:	  	RBC BANK (USA) (“Bank”), with a business address of 134 N. Church Street, Rocky Mount, North Carolina 27804 and a mailing address of Post Office Box 1220, Rocky Mount,
North Carolina 27802-1220, which mailing address is the place to which all notices and communications should be sent to Bank regarding this Modification Agreement.
		
	Date:	  	November 5, 2010

  

			
	 Cross Reference to Recorded
 Documents Modified:
	  	N/A
		
	Original Principal Debt:	  	$1,112,827.00
		
	Current Principal Debt:	  	$1,112,827.00








  
 Customer No. 

Loan No. 
  

					
	RBC Bank (USA)	 		  	 MODIFICATION
 AGREEMENT


 THIS MODIFICATION AGREEMENT (“Modification
Agreement”), entered into as of November 5, 2010, by COMPUTER SOFTWARE INNOVATIONS, INC. (“Borrower”) with a mailing address of 900 East Main Street, Suite T, Easley, South Carolina 29640, and RBC BANK (USA) (“Bank”),
with a mailing address of Post Office Box 1220, Rocky Mount, North Carolina 27802-1220. 
  

	A.	Borrower has made and issued to Bank a promissory note (the “Note”) in the original principal amount and dated as indicated on Attachment 1 attached
hereto. 

  

	B.	As indicated on Attachment 1, the Note is secured and the security is set forth in that certain Second Amended and Restated Loan and Security Agreement dated
September 14, 2007, as amended, by and between Borrower and Bank (the “Loan and Security Agreement”). 

  

	C.	The Note, the Loan and Security Agreement and any security documents described on Attachment 1 and any other loan and security documents that are outstanding
with respect to the extension of credit evidenced by the Note, even if not listed on Attachment 1, are hereinafter collectively referred to as the “Contract” and the Contract is hereby incorporated herein as a part of this
Modification Agreement. 

  

	D.	Bank and Borrower mutually desire to modify the provisions of the Contract in the manner hereinafter set out, it being specifically understood and agreed that, except
as herein modified, the terms and provisions of the Contract and the individual instruments, documents and agreements that make up the Contract shall remain unchanged and the Contract, as herein modified, shall continue in full force and effect as
therein and herein written. 

 NOW, THEREFORE, Bank and Borrower, in consideration of the premises and the sum of One Dollar
($1.00) to each in hand paid by the other, receipt and sufficiency of which are hereby acknowledged by each, do hereby agree as follows: 

Section 1. Modification. The Contract as it relates to the Note and the Loan and Security Agreement shall be, and the same is, modified in
the manner set forth in Attachment 2. 
 Section 2. Effect of Modification. Nothing contained in this Modification Agreement
shall in any way impair the security now held for the indebtedness evidenced by the Contract or the lien priority thereof, nor waive, annul, vary or affect any provision, condition, covenant and agreement contained in the Contract, nor affect or
impair any rights, powers and remedies under the Contract, except as herein specifically modified to do any one or more of the foregoing. If any provision in this Modification Agreement shall be interpreted or applied by a court or other tribunal
with personal and subject matter jurisdiction over the parties hereto and the Contract, as modified, so as to impair the security now held for the indebtedness or lien priority thereof, or do any one or more of any of the foregoing, such provision
shall be ineffective to the extent it causes an impairment of such security or the lien priority thereof or causes any of such other consequences, or the application thereof shall be in a manner and to an extent which does not impair such security
or the lien priority thereof, or result in the occurrence of any of the other consequences. This Modification Agreement does not extend the expiration dates or enlarge the terms of any property, physical damage, credit and any other insurance
written in connection with or financed by said Contract. 
 Section 3. Financing Statements. Borrower irrevocably authorizes Bank to
file such financing statements as may be necessary to protect, in Bank’s opinion, Bank’s security interests and liens and, to the extent Bank deems necessary or appropriate, to sign the name of Borrower with the same force and effect as if
signed by Borrower and to make public in financing statements and other public filings such information regarding Borrower as Bank deems necessary or appropriate, including, without limitation, federal tax identification numbers, social security
numbers and other identifying information. 







  
 Section 4. Credit
Investigations; Bank’s Responsibilities. Bank is irrevocably authorized by Borrower to make and have made such credit investigations as it deems appropriate to evaluate Borrower’s credit, personal and financial standing and employment,
and Borrower authorizes Bank to share with consumer reporting agencies and creditors its experiences with Borrower and other information in Bank’s possession relative to Borrower. Bank shall not have any obligation or responsibility to do any
of the following: (1) protect and preserve any collateral and other security given or to be given in connection with the Contract, as herein modified, against the rights of third persons having an interest therein; (2) provide information
to third persons relative to the Contract, as herein modified, Bank’s liens and security interests in any collateral and other security, or otherwise with respect to Borrower; and (3) subordinate its liens and security interests in any
collateral and other security to the interests of any third persons or to enter into control agreements relative to such collateral and other security. 
 Section 5. Usury. Bank does not intend to and shall not reserve, charge and collect interest, fees and charges under the Contract, as herein modified, in excess of the maximum rates and
amounts permitted by applicable law. If any interest, fees and charges are reserved, charged and collected in excess of the maximum rates and amounts, it shall be construed as a mutual mistake, appropriate adjustments shall be made by Bank and to
the extent paid, the excess shall be returned to the person making such a payment. 
 Section 6. Documentary Stamps, etc. To the
extent not prohibited by law and notwithstanding who is liable for payment of the taxes and fees, Borrower shall pay, on Bank’s demand, all intangible taxes, documentary stamp taxes, excise taxes and other similar taxes assessed, charged and
required to be paid in connection with this Modification Agreement, and any future extension, renewal and modification of the Contract, or assessed, charged and required to be paid in connection with any of the loan documents which make up the
Contract. 
 Section 7. Anti-Terrorism. Borrower represents, warrants and covenants to Bank as follows: (1) Borrower
(a) is not and shall not become a person whose property or interest in property is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions With
Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (b) does not engage in and shall not engage in any dealings or transactions prohibited by Section 2 of such executive order, and is not and shall not
otherwise become associated with any such person in any manner violative of Section 2, (c) is not and shall not become a person on the list of Specially Designated Nationals and Blocked Persons, and (d) is not and shall not become
subject to the limitations or prohibitions under any other U.S. Department of Treasury’s Office of Foreign Assets Control regulation or executive order; (2) Borrower is and shall remain in compliance, in all material respects, with
(a) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order
relating thereto, and (b) the Uniting And Strengthening America By Providing Appropriate Tools Required To Intercept And Obstruct Terrorism (USA Patriot Act of 2001); and (3) Borrower has not and shall not use all or any part of the
extension of credit evidenced by the Note, directly or indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977, as amended. 
 Section 8. Costs and Expenses. All of the costs and expenses incurred by Bank in connection with this Modification Agreement shall be paid by Borrower upon the request of and at the time of
demand for payment thereof made by Bank on Borrower. As used herein, “costs and expenses” include, without limitation, reasonable attorneys’ fees and fees of legal assistants, and reasonable fees of accountants, engineers, surveyors,
appraisers and other professionals or experts – and all references to attorneys’ fees or fees of legal assistants, or fees of accountants, engineers, surveyors, appraisers or other professionals or experts shall mean reasonable fees.

 Section 9. Modification Fee. Upon the execution of this Modification Agreement, Borrower shall pay to Bank a fee for the
modification of the Equipment Facility of Five Thousand and No/100ths Dollars ($5,000.00) 







  
 Section 10. Maintenance of
Records. Bank is authorized to maintain, store and otherwise retain this Modification Agreement and the other documents constituting the Contract in their original, inscribed tangible forms or records thereof in an electronic medium or other
non-tangible medium which permits such records to be retrieved in perceivable forms. 
 Section 11. Waiver of Jury Trial.
Borrower, to the extent permitted by law, waives any right to a trial by jury in any action arising from or related to this Modification Agreement and waives any right to a trial by jury in any action or proceeding arising from or related to the
Contract, as herein modified. 
 Section 12. Governing Law. This Agreement shall be governed and construed in accordance with
the laws of the State whose laws govern the Contract, excepting, however, its conflict of law provisions. 
 Section 13. Reservation of
Rights; Entire Agreement. Bank does hereby reserve all rights and remedies it may have against all parties secondarily liable for repayment of the indebtedness evidenced by the Contract. The Contract, as herein modified, contains the entire
agreement of the parties and the undersigned do hereby ratify and confirm the terms of the Contract, all of which shall remain in full force and effect, as modified herein. This Modification Agreement shall be binding upon any assignee and successor
in interest of the parties hereto. Borrower waives and will not assert against any transferee and assignee of Bank any claims, defenses, set-offs and rights of recoupment which Borrower could assert against Bank, except defenses which Borrower
cannot waive. All references herein to the “Modification Agreement” include any supplemental agreements filed of record to reflect modifications of any of the instruments, documents and other agreements making up the Contract that are of
record. 
 (Signatures On Next Page) 







  
 The undersigned have executed this
Modification Agreement under seal as of the day and year first above stated. 
  

	
	BANK:
	
	RBC BANK (USA)
	
	 /s/ Charles H. Arndt

	Charles H. Arndt, Senior Vice President

  

									
	COMPUTER SOFTWARE INNOVATIONS, INC.	 	Witness:	 	
				
	By:	 	 /s/ David B. Dechant
	 		 	 /s/ Wendy S. Metcalf

		 	David B. Dechant, Chief Financial Officer	 		 	Print Name:	 	Wendy S. Metcalf








  
 Attachment 1

 To 
 Modification Agreement 
  

	1.	Describe Note (Date, Original Amount, Current Amount and all Modifications): 


 

	 	A.	Amended and Restated Commercial Promissory Note from Computer Software Innovations, Inc. to RBC Bank (USA) dated November 5, 2010, in the original principal amount
of $1,112,827.00, with a current outstanding balance of $1,112,827.00. 

  

	2.	Describe Security Documents (Type, Date and if recorded, Recording Information): 


 

	 	A.	Second Amended and Restated Loan and Security Agreement by and between Computer Software Innovations, Inc. and RBC Centura Bank (now known as RBC Bank (USA)) dated
September 14, 2007; as amended by a Modification to Revolving Facility dated June 30, 2008; as further amended by a Modification Agreement dated September 11, 2008; as further amended by a Modification Agreement dated
December 21, 2009; and as further amended by a Modification Agreement dated June 25, 2010. 

  

	 	B.	UCC-1 Financing Statement, filed on January 31, 2007 in the Department of State for Delaware as No. 2007 0088061. 








  
 Attachment 2

 to 
 Modification Agreement 
 The Contract shall be, and the same is, modified as follows:

 1. Section 2.1(b) of the Loan and Security Agreement is hereby modified so that after modification, it shall read as
follows: 
 (b) Equipment Facility. Bank has made a term loan to Borrower, evidenced by that certain Amended and Restated
Promissory Note dated November 5, 2010, in the principal amount of One Million One Hundred Twelve Thousand Eight Hundred Twenty Seven and No/100 Dollars ($1,112,827.00). The Equipment Facility shall be fully funded as of November 5, 2010.

 2. Exhibit A to the Loan and Security Agreement is hereby modified so that after modification, the following definitions
shall be added or modified, as applicable, to read as follows: 
 “Equipment Facility” means the Credit
Extension for equipment financing and other authorized purposes in the principal amount of $1,112,827.00. 
 3. The Promissory Note of Borrower
entitled Commercial Promissory Note and dated January 2, 2007 in the amount of $800,000.00, as amended by that certain Modification Agreement dated November 14, 2008 between Bank and Borrower, is amended and restated by the Note described
in Attachment 1. No novation is intended. 
 Except as modified herein, each of the loan and security documents outstanding with respect to the
extension of credit evidenced by the Note set forth on Attachment 1, remains in full force and effect and legally binding and enforceable against the Borrower.