Document:

global12310810kex10100.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT10.100

SECOND AMENDMENT 

TO LOAN AND SECURITY AGREEMENT

     This SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 3rd day of March, 2009, by and between SILICON VALLEY BANK (“Bank”) and GLOBAL MED TECHNOLOGIES, INC., a Colorado corporation (“Global Med”), and PEOPLEMED.COM, INC., a Colorado corporation (“PeopleMed” and, together with Global Med, the “Borrower”).

RECITALS

     A.    Bank and Borrower have entered into that certain Loan and Security Agreement with an Effective Date of June 17, 2008 as modified by that certain Consent to Loan and Security Agreement dated as of July 17, 2008 and that certain First Amendment to Loan and Security Agreement dated as of October 3, 2008 (as the same may from time to time be amended, modified, supplemented or restated, the “Loan Agreement”). Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

     B.    Borrower is currently in default of the Loan Agreement for failing (1) to comply with the covenants set forth in Sections 6.7(a) and 6.7(b) of the Loan Agreement (the “Existing Defaults”).

     C.    Borrower has requested that Bank waive its rights and remedies against Borrower, limited specifically to the Existing Defaults. Although Bank is under no obligation to do so, Bank is willing to not exercise its rights and remedies against Borrower related to the specific Existing Defaults on the terms and conditions set forth in this Amendment, so long as Borrower complies with the terms, covenants and conditions set forth in this Amendment

     D.    Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, and subject to the conditions set forth below and in reliance upon the representations and warranties set forth below.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

     1.    Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

     2.    Waiver of Covenant Default.

        Bank hereby waives Borrower's existing default under the Loan Agreement by virtue of Borrower's failure to comply with the Section 6.7(a) (Free Cash Flow) of the Loan Agreement for the six month period ending December 31, 2008 and Borrower’s failure to comply with Section 6.7(b) (Liquidity Ratio) of the Loan Agreement for the period beginning December 1, 2008 through December 31, 2008. Bank's waiver of Borrower's compliance of these covenants shall apply only to the foregoing period. Accordingly, hereinafter, Borrower shall be in compliance with these covenants, as hereby amended.

 

       Bank's agreement to waive the above-described default (1) in no way shall be deemed an agreement by the Bank to waive Borrower's compliance with the above-described covenants as of all other dates and (2) shall not limit or impair the Bank's right to demand strict performance of such covenants as of all other dates and (3) shall not limit or impair the Bank's right to demand strict performance of all other covenants as of any date.

	     3.      	
Amendments to Loan Agreement.

	 
	 	
3.1   Section 2.1.5(b) is amended in its entirety and replaced with the following:

              (b)   Repayment. Borrower shall pay monthly payments of accrued interest beginning on the date of each Term Loan Advance through December 31, 2008. Provided that no Amortization Trigger has occurred, the Term Loan Advances outstanding on December 31, 2008 shall be payable in sixty (60) consecutive monthly installments of principal equal to $83,333.33 plus accrued interest, beginning on January 1, 2009 and ending on the Term Loan Maturity Date, at which time all outstanding principal and all accrued unpaid interest and other amounts owing in connection with the Term Loan Advances shall be immediately due and payable. Upon the occurrence of an Amortization Trigger, the Term Loan Advances shall be repaid in monthly installments of principal equal to $133,333.33 plus accrued interest, beginning on the date the Amortization Trigger has occurred and ending on the Term Loan Maturity Date, at which time all outstanding principal and all accrued unpaid interest and other amounts owing in connection with the Term Loan Advances shall be immediately due and payable. An Amortization Trigger shall have been deemed to occur upon Borrowers’ failure to maintain a minimum cumulative Free Cash Flow in the amount set forth in the definition of “Amortization Period” in Section 13.1 of this Agreement for the corresponding cumulative period.

               3.2   Sections 2.3(a)(i) and 2.3(a)(ii) are each hereby amended in their entirety and replaced with the following:

              (i)   Advances. Subject to Section 2.3(b), the principal amount outstanding under the Revolving Line shall accrue interest at a floating per annum rate equal to the greater of one percentage point (1.0%) above the Prime Rate, or 6.00%, which interest shall be payable monthly in accordance with Section 2.3(f) .

               (ii)   Term Loan. Subject to Section 2.3(b), the principal amount outstanding under the Term Loan shall accrue interest at a per annum rate equal to 7.50%, which interest shall be payable monthly in accordance with Section 2.3(f) .

               3.3   Section 6.7(a) is amended in its entirety and replaced with the following:

 

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                   (a)   Free Cash Flow. A minimum cumulative Free Cash Flow in the amount set forth below for the corresponding cumulative period, as follows:

	  	  	Cumulative Period  	  	Amount  
	·	  	Three (3) months ending March 31, 2009  	  	$400,000  
	·	  	Six (6) months ending June 30, 2009  	  	$600,000  
	·	  	Nine (9) months ending September 30, 2009  	  	$1,000,000  
	·	  	Twelve (12) months ending December 31, 2009  	  	$2,000,000  
			   		   
	· 		The requisite minimum cumulative Free Cash Flow Each for each fiscal quarter thereafter shall be determined by Bank based on Borrower’s 2010 forecast which Borrower shall deliver to Bank prior to November 30, 2009.

                 3.4   Section 6.7(b) is amended in its entirety and replaced with the following:

            (b)   Liquidity Ratio. A ratio of unrestricted cash, Cash Equivalents and marketable securities plus net billed Accounts to total consolidated Funded Debt of not less than the following, tested monthly:

	Period  	  	Ratio  
	January 31, 2009 through and including December 31, 2009 	  	1.10:1.00  
	Each month thereafter  	  	1.25:1.00  

                 3.5   Further Amendment to Section 6.7: The last paragraph of Section 6.7 which previously read “During the intra-quarter months only, a violation of the applicable minimum Liquidity Ratio in a particular intra-quarter month will not constitute an Event of Default if as of that month end, Borrower maintains greater than Two Million Five Hundred Thousand Dollars ($2,500,000) of unrestricted cash with Bank and Bank’s Affiliate” is hereby deleted in its entirety.

                 3.6   Section 13.1 (Definitions). The following term and its respective definition is hereby added to Section 13.1 to read as follows:

                       “Amortization Trigger” means Borrower’s failure to maintain a minimum cumulative Free Cash Flow in the amount set forth below for the corresponding cumulative period, as follows:

	  	  	Cumulative Period  	  	Amount  
	·  	  	Three (3) months ending March 31, 2009  	  	$600,000  
	·  	  	Six (6) months ending June 30, 2009  	  	$1,000,000  
	·  	  	Nine (9) months ending September 30, 2009  	  	$1,800,000  
	·  	  	Twelve (12) months ending December 31, 2009  	  	$2,400,000  
	  
	·  	  	Each fiscal quarter thereafter will replicate the quarterly requirement for the 2009 fiscal year.  

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                 3.7 Section 13.1 (Definitions). The following term and its respective definition set forth in Section 13.1 is amended in its entirety and replaced with the following:

     “Term Maturity Date” is the earliest of (a) December 1, 2013 if the Amortization Trigger has not occurred, or (b) if the Amortization Trigger has occurred, such earlier date that Borrowers shall have repaid the Term Loan Advances in accordance with the repayment terms set forth in Section 2.1.5(b), or (c) the occurrence of an Event of Default.

      4.   Limitation of Amendments.

                 4.1 The amendments set forth in Section 3, above, are effective for the purposes set forth herein and shall be limited precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future under or in connection with any Loan Document.

                 4.2 This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect.

      5.   Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

                 5.1 Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default other than the Existing Defaults has occurred and is continuing;

                 5.2 Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

                 5.3 The organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

                 5.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, have been duly authorized by all necessary action on the part of Borrowers;

                 5.5 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower;

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                 5.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding on either Borrower, except as already has been obtained or made; and

                 5.7 This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights.

       6.  Prior Agreement. Except as expressly provided for in this Amendment, the Loan Documents are hereby ratified and reaffirmed and shall remain in full force and effect. This Amendment is not a novation and the terms and conditions of this Amendment shall be in addition to and supplemental to all terms and conditions set forth in the Loan Documents. In the event of any conflict or inconsistency between this Amendment and the terms of such documents, the terms of this Amendment shall be controlling, but such document shall not otherwise be affected or the rights therein impaired.

       7.   Release by Borrowers.

                 7.1 FOR GOOD AND VALUABLE CONSIDERATION, each Borrower hereby forever relieves, releases, and discharges Bank and its present or former employees, officers, directors, agents, representatives, attorneys, and each of them, from any and all claims, debts, liabilities, demands, obligations, promises, acts, agreements, costs and expenses, actions and causes of action, of every type, kind, nature, description or character whatsoever, whether known or unknown, suspected or unsuspected, absolute or contingent, arising out of or in any manner whatsoever connected with or related to facts, circumstances, issues, controversies or claims existing or arising from the beginning of time through and including the date of execution of this Amendment (collectively “Released Claims”). Without limiting the foregoing, the Released Claims shall include any and all liabilities or claims arising out of or in any manner whatsoever connected with or related to the Loan Documents, the Recitals hereto, any instruments, agreements or documents executed in connection with any of the foregoing or the origination, negotiation, administration, servicing and/or enforcement of any of the foregoing.

                 7.2 In furtherance of this release, each Borrower expressly acknowledges and waives any and all rights under Section 1542 of the California Civil Code, which provides as follows:

“A general release does not extend to claims which the creditor does not know or expect to exist in his favor at the time of executing the release, which if known by him must have materially affected his settlement with the debtor.” (Emphasis added.)

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                 7.3  By entering into this release, each Borrower recognizes that no facts or representations are ever absolutely certain and it may hereafter discover facts in addition to or different from those which it presently knows or believes to be true, but that it is the intention of Borrowers hereby to fully, finally and forever settle and release all matters, disputes and differences, known or unknown, suspected or unsuspected; accordingly, if a Borrower should subsequently discover that any fact that it relied upon in entering into this release was untrue, or that any understanding of the facts was incorrect, Borrowers shall not be entitled to set aside this release by reason thereof, regardless of any claim of mistake of fact or law or any other circumstances whatsoever. Each Borrower acknowledges that it is not relying upon and has not relied upon any representation or statement made by Bank with respect to the facts underlying this release or with regard to any of such party’s rights or asserted rights.

                 7.4  This release may be pleaded as a full and complete defense and/or as a cross-complaint or counterclaim against any action, suit, or other proceeding that may be instituted, prosecuted or attempted in breach of this release. Each Borrower acknowledges that the release contained herein constitutes a material inducement to Bank to enter into this Amendment, and that Bank would not have done so but for Bank’s expectation that such release is valid and enforceable in all events.

                 7.5  Each Borrower hereby represents and warrants to Bank, and Bank is relying thereon, as follows:

                                  (a)   Except as expressly stated in this Amendment, neither Bank nor any agent, employee or representative of Bank has made any statement or representation to Borrower regarding any fact relied upon by Borrower in entering into this Amendment.

                                  (b)   Borrower has made such investigation of the facts pertaining to this Amendment and all of the matters appertaining thereto, as it deems necessary.

                                  (c)   The terms of this Amendment are contractual and not a mere recital.

                                  (d)   This Amendment has been carefully read by Borrower, the contents hereof are known and understood by Borrower, and this Amendment is signed freely, and without duress, by Borrower.

     Each Borrower represents and warrants that it is the sole and lawful owner of all right, title and interest in and to every claim and every other matter which it releases herein, and that it has not heretofore assigned or transferred, or purported to assign or transfer, to any person, firm or entity any claims or other matters herein released. Borrowers shall indemnify Bank, defend and hold it harmless from and against all claims based upon or arising in connection with prior assignments or purported assignments or transfers of any claims or matters released herein.

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     8.    Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

     9.    Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, and (b) Bank’s receipt of an amount equal to all Bank Expenses incurred through the date of this Amendment.

     10. Governing Law. This Amendment and the rights and obligations of the parties hereto shall be governed by and construed in accordance with the laws of the State of California.

[reminder of page intentionally left blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

BORROWERS:

GLOBAL MED TECHNOLOGIES, INC. 

By  /s/  Karen B. Davis 

Name:  Karen B. Davis

Title:  CFO 

PEOPLEMED.COM, INC.

By  /s/  Karen B. Davis 

Name:  Karen B. Davis

Title:  CFO 

BANK:

SILICON VALLEY BANK

By  /s/  Ryan Lee 

Name:  Ryan Lee

Title: Relationship Manager

Effective Date: 3/19/2009

8global12310810kex10101.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

EXHIBIT 10.101

LIMITED WAIVER AND AMENDMENT NO. 2

TO

LOAN AND SECURITY AGREEMENT

     THIS LIMITED WAIVER AND AMENDMENT NO. 2 TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into this 2nd day of March, 2009, by and among each of Global Med Technologies, Inc. and PeopleMed, Inc., each with its principal place of business at 12600 West Colfax Avenue, Suite C-420, Lakewood, CO 80215 (individually and collectively, "Borrower") and PARTNERS FOR GROWTH II, L.P. (“PFG”). Capitalized terms used herein without definition shall have the same meanings given them in the Loan Agreement (as defined below).

RECITALS

     A. Borrower and PFG have entered into that certain Loan and Security Agreement dated as of July 18, 2008 (as amended, restated, or otherwise modified, the “Loan Agreement”, and together with such documents, instruments and security agreements as were executed reasonably contemporaneously with or in connection with the Loan Agreement, the “Loan Documents”).

     B.  Borrower and PFG entered into that certain Amendment No. 1 to Loan and Security Agreement dated as of October 1, 2008 (the ‘First Amendment).

     C.  Borrower is unable to comply with the Minimum Monthly Liquidity and Free Cash Flow financial covenants set forth in the Schedule to the Loan Agreement (the “Specified Defaults”).

     D.  The parties mutually desire to set forth the conditions under which PFG will (i) conditionally waive the Specified Defaults for the period ending December 31, 2008, and (ii) amend the Loan Agreement so as to allow Borrower to maintain compliance with the terms of the Loan Agreement.

     E.  Subject to the representations and warranties of Borrower herein and upon the terms and conditions set forth in this Amendment, PFG is willing to modify the Loan Agreement as set forth herein.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing Recitals, incorporated by reference herein, and intending to be legally bound, the parties hereto agree as follows:

     1.  LIMITED WAIVER. Subject to each of the following conditions: (a) satisfaction of the terms of Section 5 hereof; (b) there being no Default or Event of Default under the Loan Documents other than the Specified Defaults, PFG hereby agrees to waive the Specified Defaults for the period ending December 31, 2008.

     2.    AMENDMENTS TO LOAN AGREEMENT. The Loan Agreement is hereby amended as set forth below with prospective effect (subject to any conditions set forth below with respect to any specific amendment):

             2.1  The “Amortization Trigger” provision in Section 1 of the Schedule is hereby amended to read in its entirety as follows:

	
“ Amortization Trigger:

	 	
If at any time and from time to time Borrower fails maintain the minimum Free Cash Flow thresholds set forth in the table immediately following this paragraph, PFG shall have the right, but not the obligation, to require Borrower to amortize the loan (the “Amortization Right”) as if it were, ab initio, a thirty-six month fully-amortized term loan, with the first payment on the first Business Day of the month following Borrower’s receipt of PFG’s written election to amortize the Loan (the “Amortization Election” and such first payment due date, the “Amortization Date”). Each such payment shall equal to the monthly principal payment that would be due if the Loan were a term loan amortized over thirty-six months, plus accrued interest on outstanding principal thereon for each such month. For example, if Borrower failed to meet the minimum Free Cash Flow test 6 months after the date hereof and PFG delivered an Amortization Election to Borrower, Borrower would have to pay PFG on the Amortization Date and each month thereafter until the Maturity Date the sum of $41,667, plus interest thereon. At the Maturity Date, Borrower would pay any and all remaining outstanding principal (approximately $250,002 [$41,667 x 6 months]) together with any unpaid interest thereon and all other monetary Obligations. For the avoidance of doubt, the thresholds below determine PFG’s right to require Borrower to amortize the Loan, and such provisions and right are distinct from the minimum Free Cash Flow financial covenant set forth in Section 5 of this Schedule.”

		 			
		 	Cumulative Period		Amount
		 			
		 	Three (3) months ending March 31, 2009  	  	$600,000  
		 	Six (6) months ending June 30, 2009  	  	$1,000,000  
		 	Nine (9) months ending September 30, 2009  	  	$1,800,000  
		 	Twelve (12) months ending December 31, 2009  	  	$2,400,000  

 

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		 	Three (3) months ending March 31, 2010  	  	$600,000  
		 	Six (6) months ending June 30, 2010  	  	$1,000,000  
		 	Nine (9) months ending September 30, 2010  	  	$1,800,000  
		 	Twelve (12) months ending December 31, 2010  	  	$2,400,000  
			Three (3) months ending March 31, 2011  		$600,000  
			Six (6) months ending June 30, 2011  		$1,000,000  
			Nine (9) months ending September 30, 2011  		$1,800,00
			Twelve (12) months ending December 31, 2011  		$2,400,000  

             2.2   The Minimum Monthly Liquidity Ratio set forth in Section 5 of the Schedule is hereby amended to read, together with its associated definitions, as follows:

	         Minimum Monthly  	  	  	  	  
	         Liquidity Ratio:  	  	A Monthly Liquidity Ratio of not less than the ratios set forth  
	  	  	  	  	below for the corresponding periods:  	  	  
	  
	  	  	  	  	Period  	  	Ratio  
	  
	  	  	  	  	Through December 31, 2009, inclusive  	  	1.10 : 1.00  
	  
	  	  	  	  	January 1, 2010 through the Maturity Date  	  	1.25 : 1.00  
	  
	  
	Liquidity Ratio Definition:  	  	The term “Monthly Liquidity Ratio” means, as measured  
	  	  	  	  	monthly, a ratio of cash, Cash Equivalents and marketable  
	  	  	  	  	securities, plus net billed Accounts to total consolidated  
	  	  	  	  	Funded Debt, tested on a monthly basis.  	  	  
	  
	  
		  	

             2.3  The Minimum Monthly Liquidity Ratio set forth in Section 5 of the Schedule is hereby amended to read, together with its associated definitions, as follows:

	“ Minimum Free Cash Flow: 	  	Tested on a calendar quarterly basis, Borrower shall maintain  
	  	  	  	  	minimum “Free Cash Flow” in the amounts set forth below for the
	  	  	  	  	corresponding cumulative periods:
		  	

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			Cumulative Period  		Amount 
	  				
			Three (3) months ending March 31, 2009		$400,000
	  				
	  	  	Six (6) months ending June 30, 2009  	  	$600,000  
	  
	  	  	Nine (9) months ending September 30, 2009  	  	$1,000,000  
	  
	  	  	Twelve (12) months ending December 31, 2009  	  	$2,000,000  
	  
	  	  	Each quarter thereafter to be determined based  	  	TBD  
	  	  	on Borrower’s 2010 financial forecast, to be  	  	  
	  	  	delivered to PFG not later than November 30,  	  	  
	  	  	2009.  	  	  
	  
	Free Cash  	  	  	  	  
	Flow Definition:  	  	“Free Cash Flow” means EBITDA, less (ii) capital  
	  	  	expenditures, including capitalized software development  
	  	  	costs.”  	  	  

     3.   BORROWER’ REPRESENTATIONS, WARRANTIES AND COVENANTS. Borrower represents, warrants and covenants that:

     (a) immediately upon giving effect to this Amendment (i) the representations and warranties contained in the Loan Documents, including without limitation, the Representations, are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (ii) no Default or Event of Default has occurred and is continuing, other than the Existing Defaults;

     (b) Borrower has the corporate power and authority to execute and deliver this Amendment and to perform its obligations under the Loan Agreement, as amended by this Amendment;

     (c) the certificate of incorporation, bylaws and other organizational documents of Borrower delivered to PFG on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect, without further amendment or other Board of Directors or stockholder action;

     (d) the execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as amended, has been duly authorized by all necessary corporate action on the part of Borrower, including any and all requisite stockholder consents;

     (e) this Amendment has been duly executed and delivered by Borrower and constitutes the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’ rights;

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     (f) as of the date hereof, it has no defenses against the obligations to pay any amounts under the Obligations and it has no claims of any kind against PFG. Borrower acknowledges that PFG has acted in good faith and has conducted in a commercially reasonable manner its relationship with Borrower in connection with this Amendment and in connection with the Loan Documents; and

     (g) Any update to Borrower’s Representations delivered to PFG in connection with this Amendment is true and correct in all material respects.

     Borrower understands and acknowledges that PFG is entering into this Amendment in reliance upon, and in partial consideration for, the above representations and warranties, and agrees that such reliance is reasonable and appropriate.

     4.  LIMITATION. The amendments set forth in this Amendment shall be limited precisely as written and shall not be deemed (a) to be a forbearance, waiver or modification of any other term or condition of the Loan Agreement or of any other instrument or agreement referred to therein or to prejudice any right or remedy which PFG may now have or may have in the future under or in connection with the Loan Agreement or any instrument or agreement referred to therein; (b) to be a consent to any future amendment or modification, forbearance or waiver to any instrument or agreement the execution and delivery of which is consented to hereby, or to any waiver of any of the provisions thereof; (c) to be a waiver of any Default under than the Specified Defaults; or (d) to limit or impair PFG’s right to demand strict performance of all terms and covenants as of any date. The Loan Agreement, as amended hereby, shall continue in full force and effect, and the amendment of the Loan Agreement shall not be deemed to be a forbearance or waiver of any Default under the Loan Agreement, other than the Specified Defaults.

     5.  EFFECTIVENESS. Subject to the satisfaction of the conditions set forth below (whether performance is required on or after the date hereof) and any additional conditions set forth in the amendments to the Loan Agreement set forth in Section 1 hereof, this Amendment shall become effective on the date hereof, but shall continue to be subject to the satisfaction of all the following conditions:

             5.1 No Default Under Senior Loan. Borrower shall be in full compliance with the Senior Loan Documents, as amended, and the Senior Lender shall not have exercised any remedies under the Senior Loan Documents or given notice of the intention to do so and Borrower shall have promptly provided evidence of any waiver, forbearance or amendment of the Senior Loan Documents by the Senior Lender.

             5.2 Authorization, Execution and Delivery. Borrower shall have duly authorized, executed and delivered to PFG this Amendment and any other documents PFG may require in connection with this Amendment.

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             5.3 Payment of PFG Expenses. Borrower shall pay upon demand all PFG Expenses (including all reasonable attorneys’ fees and reasonable expenses) incurred in connection with this Amendment.

             5.4 Amended and Restated Warrant. Borrower shall have taken all corporate actions required to and shall have authorized, executed and delivered that certain Amended and Restated Warrant of even date herewith, amending and restating the Warrant issued to PFG on the Original Issue Date (as defined in the Amended and Restated Warrant).

             5.5 Priority of Liens. PFG shall have on the date hereof a first-priority security interest and lien in Collateral, subject only to the lien of the Senior Lender and other Permitted Liens.

             5.6 Waiver Fee and Warrant Amendment Fee. Borrower shall have paid PFG a Waiver Fee equal to $2,500 and a Warrant Amendment Fee equal to $23,100, with the Warrant Amendment Fee representing the difference between the Exchange Price of $0.72 (as amended on March 2, 2009) and $.050, the estimated fair market value of Borrower’s Common Stock on or about the amendment date times 105,000, the number of shares of Warrant Stock exchangeable under the Amended and Restated Warrant.

     For the avoidance of doubt, the failure whenever occurring of any of the foregoing conditions shall result in the termination of (i) any express or implied forbearances or waivers of non-compliance of Borrower prior to the date hereof, all of which shall be deemed rescinded, and (ii) at the election of PFG, any conditional amendments to the Loan Agreement made in Section 1 hereof shall be deemed rescinded.

     6.  COUNTERPARTS. This Amendment may be signed in any number of counterparts, and by different parties hereto in separate counterparts, with the same effect as if the signatures to each such counterpart were upon a single instrument. All counterparts shall be deemed an original of this Amendment.

     7.  INTEGRATION; CONSTRUCTION. The Loan Documents, the First Amendment, this Amendment, the Amended and Restated Warrant and any documents executed in connection herewith or pursuant hereto contain the entire agreement between the parties with respect to the subject matter hereof and supersede all prior agreements, understandings, offers and negotiations, oral or written, with respect thereto and no extrinsic evidence whatsoever may be introduced in any judicial or arbitration proceeding, if any, involving this Amendment; except that any financing statements or other agreements or instruments filed by PFG with respect to Borrower shall remain in full force and effect. The title of this Agreement and section headings are for the readers’ convenience only and shall be ignored for purposes of integration into the Loan Agreement. The term “Schedule” means the Schedule to the Loan Agreement. Quotation marks, if any, around amended provisions to the Loan Agreement are for the convenience of reading only and are not to be construed substantively. The General Provisions set forth in Section 8 of the Loan Agreement are incorporated herein by reference.

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     8.  GOVERNING LAW; VENUE. THIS AMENDMENT SHALL BE GOVERNED BY AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF CALIFORNIA. Borrower and PFG each submit to the exclusive jurisdiction of the State and Federal courts in San Francisco County, California.

[SIGNATURE PAGE FOLLOWS]

 

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first written above.

	Borrower:  	PFG:  
	Global Med Technologies, Inc.  	PARTNERS FOR GROWTH II, L.P.  
	  
	  
	By /s/ Karen B. Davis  	 By  /s/ Lorraine Nield
	            President or Vice President/CFO  	
	  
	
By  /s/ Kim Geist

      Secretary or Ass't Secretary

	
Name: Lorraine Nield

Title:  Manager, Partners for Growth II, LLC 

           Its General Partner

	
Borrower:

PeopleMed.com, Inc.

By  /s/ Karen B. Davis

      President or Vice President/CFO

By  /s/ Kim Geist

      Secretary or Ass't Secretary

	

8

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