Document:

ex10-16.htm

 

 

Exhibit 10.16

 

 

 

AMENDMENT NO. 1 TO REVOLVING LOAN AGREEMENT

 

THIS AMENDMENT is dated March 26, 2014 and made between:

 

(1)           ASTEA INTERNATIONAL INC., a Delaware corporation, as borrower (“Borrower”); and

 

(2)           ZACK BERGREEN, an individual residing in Gwynedd Valley, Pennsylvania, as lender (“Lender”).

 

WITNESSETH

 

WHEREAS, Borrower and Lender have entered into a Revolving Loan Agreement, dated as of May 29, 2013 (as amended, restated, supplemented or otherwise modified prior to the date hereof in accordance with its provisions, the “Loan Agreement”);

 

WHEREAS, the parties hereto desire to amend the Loan Agreement on the terms and subject to the conditions set forth herein;

 

WHEREAS, Borrower has requested, and Lender has agreed, to amend the Loan Agreement to increase the Maximum Principal Amount (as defined in the Loan Agreement) from Two Million Dollars ($2,000,000) to Three Million Dollars ($3,000,000); and

 

WHEREAS, pursuant to Section 6(f) of the Loan Agreement, the amendments requested by Borrower must be contained in a written agreement signed by Borrower and Lender.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the premises set forth above and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

	
1.  

	
Definitions and Interpretation

 

	 	
1.1.  

	
Definitions.  Capitalized terms used but not defined in this Amendment shall have the meaning ascribed thereto in the Loan Agreement.

 

	 	
1.2.  

	
Interpretation.  The principles of construction set out in the Loan Agreement shall have effect as if set out in this Agreement.

 

	
2.  

	
Amendment to the Loan Agreement.  The Loan Agreement is hereby amended by replacing the second “WHEREAS” clause in its entirety with the following:

 

“WHEREAS, Borrower has requested that Lender make advances to Borrower from time to time on a revolving basis in an aggregate principal amount at any time thereof not to exceed Three Million Dollars ($3,000,000) (the “Maximum Principal Amount”) as a bridge financing; and”

 

	
3.  

	
Conditions Precedent.  This Amendment shall become effective upon the date (the “Effective Date”) on which Lender shall have received:

 

	 	
3.1.  

	
This Amendment, duly executed and delivered by Borrower;

 

	 	
3.2.  

	
A duly executed Revolving Promissory Note of Borrower to Lender in an original principal amount equal to $3,000,000 in the form attached to the Loan Agreement as Exhibit A (the “New Note”), issued in renewal and substitution of Borrower’s existing $2,000,000 Revolving Promissory Note made payable to Lender (the “Existing Note”).  Upon receipt of the New Note, Lender shall return the Existing Note to Borrower marked “cancelled.”  All references in the Loan Agreement to the “Note” shall be understood to refer to the “New Note.”

 

 

 

 

  

  

  

 

 

	 	
3.3.  

	
Such other information and documents as may reasonably be required by Lender in connection with this Amendment.

 

	
4.  

	
Representations and Warranties.  Borrower hereby represents and warrants to Lender (before and after giving effect to this Amendment) that:

 

	 	
4.1.  

	
All of the representations and warranties set forth in Section 3 of the Loan Agreement are true and correct in all material respects as of the Effective Date as if made on the Effective Date.

 

	 	
4.2.  

	
No Event of Default has occurred and is continuing on the date hereof under the Loan Agreement.

 

	 	
4.3.  

	
This Amendment constitutes or will constitute, when issued and delivered, valid and binding obligations of Borrower, enforceable in accordance with its terms, subject to bankruptcy, insolvency and other similar laws affecting the enforcement of creditors’ rights in general, and general principles of equity.

 

	 	
4.4.  

	
Borrower is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware.  Borrower has the requisite corporate power and authority to execute, deliver and perform this Amendment and to consummate the transactions contemplated thereby.  The execution, delivery and performance by Borrower of this Amendment and the consummation of the transactions contemplated thereby have been duly authorized by all necessary corporate action on the part of Borrower.

 

	 	
4.5.  

	
Neither the execution and the delivery of this Amendment, nor the consummation of the transactions contemplated hereby, will (a) violate any injunction, judgment, order, decree, ruling, charge or any provision of Borrower’s certificate of incorporation, bylaws or other charter documents, or, to Borrower’s knowledge, any restriction of any government, governmental agency or court to which Borrower is subject, or (b) conflict with, result in a material breach of, constitute a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify, or cancel, any material agreement, contract, lease, license, instrument, or other arrangement to which Borrower is a party or by which it is bound or to which any of its assets are subject.

 

	 	
4.6.  

	
As of the Effective Date, the outstanding principal amount of the Loan Advances is $2,000,000.

 

	
5.  

	
Expenses.  Borrower agrees to pay or reimburse Lender for all of its reasonable out-of-pocket costs and expenses incurred in connection with this Amendment, any other documents prepared in connection herewith and the transactions contemplated hereby, including, without limitation, the reasonable fees and disbursements of counsel to Lender.

 

	
6.  

	
Miscellaneous.

 

	 	
6.1.  

	
Except as expressly amended, amended and restated, supplemented or otherwise modified by this Amendment, all of the terms, provisions, and conditions of the Loan Agreement and the other Loan Documents are and shall remain unchanged and in full force and effect.  Except as specifically amended, amended and restated, supplemented or otherwise modified by this Amendment, the Loan Agreement and the other Loan Documents are (a) hereby ratified and confirmed by the parties and (b) shall remain in full force and effect according to their terms.  The amendments contained herein shall not be construed as a waiver or amendment of any other provision of the Loan Agreement or the other Loan Documents or for any purpose except as expressly set forth herein or a consent to any further or future action on the part of Borrower that would require the waiver or consent of Lender.

 

 

 

 

  

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6.2.  

	
Each of Borrower and Lender designate this Amendment as a Loan Document.

 

	
7.  

	
Severability of Provisions.  Each provision of this Amendment is severable from every other provision of this Amendment in determining the enforceability of any provision.

 

	
8.  

	
Successors and Assigns.  This Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and permitted assigns.

 

	
9.  

	
GOVERNING LAW.  THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE SUBSTANTIVE LAWS OF THE STATE OF DELAWARE WITHOUT REGARD TO ANY CONFLICTS OF LAW CONCEPTS WHICH WOULD APPLY THE SUBSTANTIVE LAW OF SOME OTHER JURISDICTION.

 

	
10.  

	
Counterparts.  This Amendment may be executed in one or more counterparts, all of which when taken together shall constitute but one instrument, and in the event any signature is delivered by facsimile or “pdf” transmission, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “pdf” were an original thereof.

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

  

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

 

	  	
ASTEA INTERNATIONAL INC.,

	  	
as Borrower

	 	 
	 	 
	  	
By:  /s/Fredric Etskovitz

	  	
Fredric Etskovitz

	  	
Chief Financial Officer

	  	  
	  	
By:  /s/Zack Bergreen

	  	
Zack Bergreen

	  	
Chief Executive Officer,

	  	
as Lenderex10-17.htm

 

 

Exhibit 10.17

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR ANY APPLICABLE STATE SECURITIES LAWS AND MAY NOT BE TRANSFERRED UNLESS (I) THERE IS AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR SUCH APPLICABLE STATE SECURITIES LAWS, OR (II) IN THE OPINION OF COUNSEL REASONABLY ACCEPTABLE TO ASTEA INTERNATIONAL, INC., REGISTRATION UNDER THE SECURITIES ACT OR SUCH APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED IN CONNECTION WITH SUCH TRANSFER.

 

REVOLVING PROMISSORY NOTE

 

	Up to $3,000,000	 March 26, 2014

 

 

FOR VALUE RECEIVED, ASTEA INTERNATIONAL INC., a Delaware corporation, (“Borrower”), hereby absolutely, irrevocably, unconditionally promises to pay to the order of Zack Bergreen, an individual residing in Gwynedd Valley, Pennsylvania 19437 (“Lender”), in United States dollars and in immediately available funds, the principal sum of THREE MILLION DOLLARS ($3,000,000), or such lesser amount as may be advanced by Lender to Borrower from time to time in accordance with that certain Revolving Loan Agreement, dated as of May 29, 2013, between Borrower and Lender (as it may be amended, modified, extended or restated from time to time, the “Loan Agreement”), together with interest thereon, as provided in the Loan Agreement.  This Note is subject to all of the terms and conditions set forth in, and such terms and conditions are hereby incorporated herein by reference to, the Loan Agreement.  All capitalized terms not otherwise defined herein shall have the meanings set forth in the Loan Agreement.  In the event of any conflict between the provisions of this Note and the Loan Agreement, the provisions of the Loan Agreement shall prevail.

 

Except as otherwise provided in the Loan Documents, all outstanding principal and interest with respect to Loan Advances shall be due and payable in full in cash on the Maturity Date.  The daily unpaid principal balance outstanding under this Note shall bear interest at the rate(s) set forth in the Loan Agreement.  The Loan Advances may be prepaid in whole or in part at any time without premium or penalty and amounts repaid may be re-borrowed in accordance with the provisions of the Loan Agreement.

 

Upon the occurrence and during the continuance of an Event of Default, Lender shall have, and shall be entitled to exercise, all of the rights and remedies set forth in the Loan Documents.

 

All payments in respect of amounts outstanding under this Note shall be paid in immediately available funds to the account(s) specified by Lender from time to time.  Any payment due in respect of this Note which falls due on a day other than a Business Day shall be made on the next Business Day.

 

Borrower hereby waives presentment and demand for payment, notice of dishonor, protest and notice of protest of this Note.  No extension of time for payment of this Note, and no alteration, amendment or waiver of any provision of this Note made by agreement between Lender and any other Person shall release, discharge, modify, change or affect the liability of Borrower under this Note.

 

 

 

 

  

  

  

 

 

Each right, power and remedy of Lender under this Note, the Loan Agreement, any other Loan Document, or under applicable laws shall be cumulative and concurrent, and the exercise of any one or more of them shall not preclude the simultaneous or later exercise by Lender of any or all such other rights, powers or remedies.  No failure or delay by Lender to insist upon the strict performance of any one or more provisions of this Note, the Loan Agreement, any other Loan Document, or to exercise any right, power or remedy consequent upon an Event of Default shall constitute a waiver thereof, or preclude Lender from exercising any such right, power or remedy.  No modification, change, waiver or amendment of this Note shall be deemed to be made unless in writing signed by Borrower and Lender.  This Note shall inure to the benefit of and be binding upon Borrower and Lender and their respective successors and assigns; provided that except as set forth in the Loan Agreement, Borrower shall have no right to assign any of its rights or delegate any of its obligations under this Note and Lender shall have no right to assign any of its rights or delegate any of its obligations under the Loan Documents.  The invalidity, illegality or unenforceability of any provision of this Note shall not affect or impair the validity, legality or enforceability of any other provision.  This Note shall be deemed to be made in, and shall be governed by the laws of, the State of Delaware (without regard to its conflicts of laws principles).  BORROWER HEREBY CONSENTS TO THE JURISDICTION OF THE COURTS OF THE COMMONWEALTH OF PENNSYLVANIA, AND THE UNITED STATES DISTRICT COURT FOR THE EASTERN DISTRICT OF PENNSYLVANIA, AS WELL AS TO THE JURISDICTION OF ALL COURTS FROM WHICH AN APPEAL MAY BE TAKEN FROM SUCH COURTS, FOR THE PURPOSE OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF ANY OF ITS OBLIGATIONS UNDER THIS NOTE OR ANY OTHER RELATED DOCUMENTS OR WITH RESPECT TO THE TRANSACTIONS CONTEMPLATED HEREBY.  BORROWER EXPRESSLY WAIVES ANY CLAIM THAT SUCH COURTS ARE AN INCONVENIENT FORUM OR AN IMPROPER FORUM BASED UPON LACK OF VENUE.  BORROWER FURTHER WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT, AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY MESSENGER, CERTIFIED MAIL OR REGISTERED MAIL DIRECTED TO BORROWER AT THE ADDRESS SET FORTH IN SECTION 6(G) OF THE LOAN AGREEMENT AND SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED UPON THE EARLIER OF ACTUAL RECEIPT OR THREE (3) BUSINESS DAYS AFTER THE SAME SHALL HAVE BEEN POSTED TO BORROWER’S ADDRESS.

 

BORROWER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION.  BORROWER AND LENDER HEREBY KNOWINGLY AND VOLUNTARILY WAIVE TRIAL BY JURY AND THE RIGHT THERETO IN ANY ACTION OR PROCEEDING OF ANY KIND, ARISING UNDER OR OUT OF, OR OTHERWISE RELATED TO OR OTHERWISE CONNECTED WITH, THIS NOTE AND OR ANY RELATED DOCUMENT.  BORROWER FURTHER ACKNOWLEDGES THAT IT HAS HAD AN OPPORTUNITY TO REVIEW THIS NOTE AND THE OTHER DOCUMENTS EXECUTED IN CONNECTION HEREWITH WITH ITS COUNSEL AND THAT BORROWER ON ITS OWN HAS MADE THE DETERMINATION TO EXECUTE THIS NOTE AND ALL OTHER DOCUMENTS TO WHICH BORROWER IS A PARTY AFTER CONSIDERATION OF ALL OF THE TERMS OF THIS NOTE AND SUCH OTHER DOCUMENTS (INCLUDING THE INTEREST RATE) AND OF ALL OTHER FACTORS WHICH BORROWER CONSIDERS RELEVANT.

 

UPON THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT AS THAT TERM IS DEFINED IN THE LOAN AGREEMENT, BORROWER HEREBY IRREVOCABLY AUTHORIZES AND EMPOWERS THE PROTHONOTARY OR ANY ATTORNEY OF ANY COURT OF THE COMMONWEALTH OF PENNSYLVANIA TO APPEAR AT ANY TIME FOR BORROWER IN ANY ACTION BROUGHT AGAINST BORROWER ON THIS NOTE AT THE SUIT OF LENDER, WITH OR WITHOUT DECLARATION FILED, AS OF ANY TERM, AND THEREIN TO CONFESS OR ENTER JUDGMENT AGAINST BORROWER FOR THE ENTIRE UNPAID PRINCIPAL OF THIS NOTE AND ALL OTHER SUMS PAYABLE BY OR ON BEHALF OF LENDER PURSUANT TO THE TERMS OF THIS NOTE OR THE LOAN AGREEMENT, AND ALL ARREARAGES OF INTEREST THEREON, TOGETHER WITH COSTS OF SUIT, ATTORNEYS' COMMISSION FOR COLLECTION OF FIVE PERCENT (5%) OF THE TOTAL AMOUNT THEN DUE BY LENDER TO BORROWER (BUT IN ANY EVENT NOT LESS THAN FIVE THOUSAND DOLLARS ($5,000.00)), AND FOR SO DOING THIS NOTE OR A COPY HEREOF VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT.  THE AUTHORITY GRANTED HEREIN TO CONFESS JUDGMENT SHALL NOT BE EXHAUSTED BY ANY EXERCISE THEREOF BUT SHALL CONTINUE FROM TIME TO TIME AND AT ALL TIMES UNTIL PAYMENT IN FULL OF ALL AMOUNTS DUE HEREUNDER.

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

  

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IN WITNESS WHEREOF, this Revolving Promissory Note has been duly executed by the undersigned as of the day and year first above written.

 

 

	  	
BORROWER:

	  	  
	  	
ASTEA INTERNATIONAL INC.

	 	 
	 	 
	  	
By: /s/Rick Etskovitz

	  	
      Rick Etskovitz

	  	
      Chief Financial Officer

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