Document:

Prepared by MERRILL CORPORATION

Exhibit

10.01

 

SETTLEMENT AGREEMENT AND MUTUAL RELEASE

 

This Settlement Agreement and Mutual

Release (the “Settlement Agreement”) is entered into by and among Lifescape,

LLC (“Lifescape”), ValueOptions,

Inc. (“ValueOptions”), FHC Health Systems, Inc. (“FHC”), and Zamba

Solutions (“Zamba”), as of the 1st day of October, 2001,

(the “Effective Date”).

 

WHEREAS, Zamba has provided to Lifescape

consulting services which have contributed to the creation of various computer

software applications and related intellectual property (the “Zamba Assets”);

and

 

WHEREAS, Lifescape has been and is

currently unable to pay Zamba for the services rendered in connection with the

creation of the Zamba Assets and Zamba has demanded that the Zamba Assets be

returned to it  until  full payment has been made; and

 

WHEREAS,

Zamba has provided to ValueOptions various consulting services; and

 

WHEREAS,

ValueOptions desires to acquire the Zamba Assets.

 

NOW, THEREFORE,   in consideration of the covenants contained herein, the parties

hereto agree as set forth below:

 

1.             Transfer

of Zamba Assets to ValueOptions. 

Zamba hereby directs  Lifescape

to transfer to ValueOptions the Zamba Assets.

 

2.             Consideration.  In consideration of the transfer of the Zamba Assets to

ValueOptions, FHC and ValueOptions jointly and severally agree to pay to Zamba

the sum of  $ 1, 680,000 as follows: $

280,000 on the Effective Date, and $ 280,000 on the first business day of each

of the next five (5) months.

 

3.             Default.  If any payment required to be made under

Section 2 of the Settlement Agreement is not made within five (5) days of the

delivery of a written notice that a required payment has not been made, via

facsimile to the chief financial officer of FHC at ******: (i) the aggregate

payment due under the Settlement Agreement shall be increased to $ 2,080,000

and the entire unpaid balance shall be due immediately and (ii) all right,

title and interest in the Zamba Assets shall be returned to Zamba until the

payment described in subsection (i) hereof has been paid in full.

 

4.             Mutual

Releases.

(a)           Release of Lifescape, FHC and

ValueOptions.  In consideration of

and upon the receipt of all amounts due under this Settlement Agreement, Zamba,

for itself and on behalf of its officers, directors, members, subsidiaries,

affiliates, parent companies, successors, assigns, agents, underwriters,

attorneys, sureties, insurers and representatives, does and shall irrevocably

and unconditionally remise, release and forever discharge Lifescape,  FHC, ValueOptions, their officers,

directors, members, subsidiaries, affiliates, parent companies, successors,

assigns, agents, underwriters, attorneys, sureties, insurers and

representatives from any and all claims, demands and causes of actions of any

nature whatsoever arising out of or related to the Zamba Assets.

(b)           Release of Zamba.  In consideration of and upon the receipt of

the Zamba Assets, each of Lifescape, FHC and ValueOptions, for itself and on

behalf of its officers, directors, members, subsidiaries, affiliates, parent companies,

successors, assigns, agents, underwriters, attorneys, sureties, insurers and

representatives, does and shall irrevocably and unconditionally remise, release

and forever discharge Zamba, its officers, directors, members, subsidiaries,

affiliates, parent companies, successors, assigns, agents, underwriters,

attorneys, sureties, insurers and representatives from any and all claims,

demands and causes of actions of any nature whatsoever arising out of or

related to the Zamba Assets.

 

5              Nonadmission of Liability.  The parties fully understand and agree that

this Settlement Agreement represents the compromise of disputed claims and is

not an admission of liability or concession of any legal position taken by any

party.

 

6.             Advice

of Counsel.  The parties to

this Settlement Agreement acknowledge that they have been fully advised by

counsel of their own choosing with respect to the terms of this Settlement

Agreement.

 

7.             Venue and Choice of Law.  Any dispute, claim, or cause of action

arising out of or related to the interpretation of or any default under this

Agreement shall be governed by the laws of the State of Minnesota, and the

parties to this Agreement hereby agree that venue for such action shall lie

solely in the State of Minnesota.  If

any part, term or provision of this Settlement Agreement is held by a court or

administrative body to be illegal or in conflict with any law, or by statute

becomes illegal or in conflict with any law, the validity of the remaining

provision shall not be affected and the rights and obligations of the parties

shall be construed and enforced as if this Settlement Agreement did not contain

the particular, invalid part, term or provision. The parties agree to submit to

personal jurisdiction of the courts of the State of Minnesota.

 

8.             Costs

of Collection.  In the event

either party commences litigation arising out of or related to this Settlement

Agreement, the prevailing party shall be entitled to its fees and costs

including reasonable attorney’s fees. and any fees and costs associated with

alternative dispute resolution, including reasonable attorney’s fees.

 

9.             Entire

Agreement.  This Settlement

Agreement and the attached Exhibits constitutes and

contains the entire agreement and understanding between the parties concerning

the subject matters addressed in this Settlement Agreement between the parties,

and supersedes and replaces all prior settlement negotiations and all

settlement agreements proposed or otherwise, whether written or oral,

concerning the subject matter of this Settlement Agreement.  Any statements, promises or inducements made

among the parties that are not contained in this Settlement Agreement shall be

invalid and nonbinding.  No waiver of

any breach of any term or provision of this Settlement Agreement shall be

construed to be, nor shall be, a waiver of any other breach of any term or

provision of the Settlement Agreement. 

No waiver shall be binding unless in writing and signed by the party

waiving the breach.

 

10.           Cooperation.  The parties agree to cooperate fully and

execute any and all supplementary documents and take all additional actions

which may be necessary and appropriate to give full force and effect to the

basic terms and intent of this Settlement Agreement.

 

11.           Counterparts.  This Agreement may be executed in multiple

counterparts, each of which shall constitute an original agreement, but all

such counterparts taken together shall constitute one and the same agreement.

 

 

IN

WITNESS WHEREOF, the parties have the caused this Settlement Agreement and

Mutual Release to be executed by them or on their behalf by their respective

representatives as of the Effective Date.

 

	

   

  	

  Lifescape, LLC

  
	

   

  	

   

  	

   

  
	

   

  	

  By: /s/

  	

  Ronald

  Dozoretz

  
	

   

  	

   

  	

  Ronald I. Dozoretz, Manager of FHC Internet Services, L.C.,

  
	

   

  	

   

  	

  the managing member of Lifescape, LLC

  
	

   

  	

   

  	

   

  
	

   

  	

  ValueOptions,

  Inc.

  
	

   

  	

   

  	

   

  
	

   

  	

  By: /s/ 

  	

  Elliot

  Gerson

  
	

   

  	

   

  	

  Elliot F. Gerson

  
	

   

  	

   

  	

   

  
	

   

  	

  Its

  President

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  FHC Health

  Systems, Inc.

  
	

   

  	

  By: /s/ 

  	

  Elliot

  Gerson

  
	

   

  	

   

  	

  Elliot Gerson,

  
	

   

  	

   

  	

   

  
	

   

  	

  Its  President

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Zamba

  Solutions

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By: /s/ Mike

  Carrel

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Its CFOPrepared by MERRILL CORPORATION

 

	

  Silicon

  Valley Bank

  	

  Exhibit

  10.44

  

 

Amendment to Loan

Documents

 

Borrower:             InVision

Technologies, Inc.

Date:                      October

12, 2001

 

THIS

AMENDMENT TO LOAN DOCUMENTS is entered into between Silicon Valley Bank (“Silicon”) and the

borrower named above (“Borrower”).

The Parties agree to amend the Loan and Security Agreement between

them, dated November 8, 2000 (as otherwise amended, if at all, the “Loan

Agreement”), as follows, effective as of the date hereof.  (Capitalized terms used but not defined in

this Amendment shall have the meanings set forth in the Loan Agreement.)

1.             Modified Audit Fees.  The sentence in Section 5.4 of the Loan Agreement that currently

reads as follows:

“The foregoing inspections

and audits shall be at Borrower’s expense and the charge therefor shall be $600

per person per day (or such higher amount as shall repre­sent Silicon’s then

current standard charge for the same), plus reasonable out of pocket expenses.”

is hereby amended to read as

follows:

“The foregoing inspections

and audits shall be at Borrower’s expense and the charge therefor shall be $700

per person per day (or such higher amount as shall repre­sent Silicon’s then

current standard charge for the same), plus reasonable out of pocket expenses.”

 

2.             Modified Foreign Exchange Contract

Sublimit.  The Foreign Exchange Contract

Sublimit set forth in Section 1 of the Schedule to Loan and Security Agreement

and which currently reads as follows:

	

   

  	

   

  	

   

  	

   

  
	

   

  	

  “Foreign Exchange

  Contract Sublimit:

  	

   

  	

  If there is availability under the Revolving Loans, then

  Borrower may enter into foreign exchange forward contracts with Silicon under

  which Borrower commits to purchase from or sell to Silicon a set amount of

  foreign currency more than one business day after the contract date (the “FX

  Forward Contract”).  Silicon will

  subtract 10% of each outstanding FX Forward Contract from the foreign

  exchange sublimit which is a maximum of $5,000,000 (the “FX Sublimit”).  The total FX Forward Contracts at any one

  time may not exceed 10 times the amount of the FX Sublimit.  Silicon may terminate the FX Forward

  Contracts if an Event of Default occurs.”

  

 

is hereby amended to read as follows:

	

   

  	

  “Foreign Exchange

  Contract Sublimit:

  	

   

  	

  $5,000,000.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Borrower may enter into foreign exchange forward contracts with

  Silicon, on its standard forms, under which Borrower commits to purchase from

  or sell to Silicon a set amount of foreign currency more than one business

  day after the contract date (the “FX Forward Contracts”); provided that (1)

  at the time the FX Forward Contract is entered into Borrower has Loans

  available to it under this Agreement in an amount at least equal to 10% of

  the amount of the FX Forward Contract; and (2) the total FX Forward Contracts

  at any one time outstanding may not exceed 10 times the amount of the Foreign

  Exchange Contract Sublimit set forth above. Silicon shall have the right to

  withhold, from the Loans otherwise available to Borrower under this

  Agreement, a reserve (which shall be in addition to all other reserves) in an

  amount equal to 10% of the total FX Forward Contracts from time to time

  outstanding. Silicon may, in its discretion, terminate the FX Forward

  Contracts at any time that an Event of Default occurs and is continuing.

  Borrower shall execute all standard form applications and agreements of

  Silicon in connection with the FX Forward Contracts, and without limiting any

  of the terms of such applications and agreements, Borrower shall pay all

  standard fees and charges of Silicon in connection with the FX Forward

  Contracts.”

  

 

3.             Modification to Interest Rate.  Section 2 of the Schedule to Loan and Security Agreement is hereby

amended to read as follows:

                “2.          INTEREST.

	

   

  	

  Interest

  Rate
 (Section

  1.2):

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  A rate equal to the “Prime Rate” in effect from time to time,

  plus 1.50%

  per annum; provided, however, if Borrower maintains with

  Silicon and/or invests through Silicon at least 80% of Borrower’s cash and

  cash equivalents, then a rate equal to the “Prime Rate” in effect from time

  to time, plus 1.25% per annum. 

  Such reduction(s) and increase(s) of the interest rate may be made

  throughout the term of this Agreement.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  The foregoing rate increase or decrease (as the case may be)

  will go into effect following Silicon’s review and approval of Borrower’s

  financial statements and will be effective as of the date of Borrower’s

  monthly financial statements showing that the interest rate should be

  increased or decreased, as the case may be, provided that such monthly

  financial statements are provided to Silicon in accordance with the terms

  hereof. Notwithstanding the foregoing, in no event shall an interest rate

  reduction go into effect if, at the date it is to go into effect, an Event of

  Default has occurred and is continuing.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  Interest shall be calculated on the basis of a 360-day year for

  the actual number of days elapsed. 

  "Prime Rate" means the rate announced from time to time by

  Silicon as its “prime rate;” it is a base rate upon which other rates charged

  by Silicon are based, and it is not necessarily the best rate available at

  Silicon.  The interest rate applicable

  to the Obligations shall change on each date there is a change in the Prime

  Rate.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  With respect to each of Term Loan #1 and Term Loan #2, the

  interest rate shall be a rate equal to the Prime Rate in effect from time to

  time, plus 1.5% per annum. Interest shall be calculated on the basis of

  a 360-day year for the actual number of days elapsed.  The interest rate applicable to the

  Obligations pertaining to the Term Loans shall change on each date there is a

  change in the Prime Rate.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  Minimum Monthly

  Interest (Section

  1.2):

  	

   

  	

  Not Applicable.”

  

4.             Modified Maturity Date. 

Section 4 of the Schedule to Loan and Security Agreement is hereby

amended to read as follows:

	

   

  	

  "4.  MATURITY

  DATE

  
	

   

  	

  (Section 6.1):

  	

   

  	

  October 20, 2002.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  The

  outstanding principal balance of Term Loan #1 will continue to be repaid in

  monthly principal payments of $11,041.72 each in accordance with the terms of

  the Existing Loan Documents until the earlier of:  (i) June 29, 2003, (ii) all Obligations related to Term Loan #1

  have been indefeasibly paid in full to Silicon or (iii) the date this

  Agreement terminates by its terms or is terminated by either party in

  accordance with its terms.  Interest

  on Term Loan #1 shall be payable monthly as provided for in Section 1.2 of

  this Agreement.

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  The outstanding principal balance of Term Loan #2 will continue

  to be repaid in monthly principal payments of $17,846.62 each in accordance

  with the terms of the Existing Loan Documents until the earlier of:  (i) November 29, 2001, (ii) all

  Obligations related to Term Loan #2 have been indefeasibly paid in full to

  Silicon or (iii) the date this Agreement terminates by its terms or is

  terminated by either party in accordance with its terms.  Interest on Term Loan #2 shall be payable

  monthly as provided for in Section 1.2 of this Agreement.”

  

 

5.             Fee.  In consideration for Silicon entering into this Amendment,

Borrower shall concurrently pay Silicon a fee in the amount of $25,000, which

shall be non-refundable and in addition to all interest and other fees payable

to Silicon under the Loan Documents. 

Silicon is authorized to charge said fee to Borrower’s loan account.

6.             Representations True.  Borrower represents and warrants to Silicon that all

representations and warranties set forth in the Loan Agreement, as amended

hereby, are true and correct.

7.             General Provisions.  This Amendment, the Loan Agreement, any prior

written amendments to the Loan Agreement signed by Silicon and Borrower, and the

other written documents and agreements between Silicon and Borrower set forth

in full all of the representations and agreements of the parties with respect

to the subject matter hereof and supersede all prior discussions,

representations, agreements and under­standings between the parties with

respect to the subject hereof.  Except

as herein expressly amended, all of the terms and provisions of the Loan

Agreement, and all other documents and agreements between Silicon and Borrower

shall continue in full force and effect and the same are hereby ratified and

confirmed.  

	

  Borrower:

  

  	

   

  	

  Silicon:

  
	

  INVISION

  TECHNOLOGIES, INC.

  	

   

  	

  SILICON VALLEY

  BANK

  
	

  By

  	

      /s/ 

  Ross Mulholland

  	

   

  	

  By

  	

      /s/ Milad Hanna

  
	

   

  	

  President or Vice

  President

  	

   

  	

  Title

  	

      Senior Vice President

  
	

  By

  	

      /s/ 

  Nancy Hsiang

  	

   

  	

   

  
	

   

  	

  Secretary or

  Ass't Secretary

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