Document:

Exhibit 10.29

 

COMMERCIAL SECURITY AGREEMENT

 

	
  Principal

  	
   

  	
  Loan Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No

  	
   

  	
  Call / Coll

  	
   

  	
  Account

  	
   

  	
  Officer

  	
   

  	
  Initials

  	
   

  
	
  $

  	
  100,000.00

  	
   

  	
  04-08-2002

  	
   

  	
  04-30-2004

  	
   

  	
  0100961001

  	
   

  	
  02

  	
   

  	
  103369

  	
   

  	
  232

  	
   

  	
  /s/ SK

  NR

  	
   

  
																	

 

References in the shaded area are for Lender’s use only and do not limit
the applicability of this document to any particular loan or item.

Any
Item above containing “***” has been omitted due to text length limitations.

 

	
  Borrower:

  	
   

  	
  primal solutions,
  inc.

  	
   

  	
  Lender:

  	
   

  	
  sunwest bank

  
	
   

  	
   

  	
  WIRELESS BILLING SYSTEMS

  	
   

  	
   

  	
   

  	
  Commercial Banking Department 

  
	
   

  	
   

  	
  18881 VON KARMAN, SUITE 450

  	
   

  	
   

  	
   

  	
  17542 EAST 17th STREET

  
	
   

  	
   

  	
  IRVINE, CA 92612

  	
   

  	
   

  	
   

  	
  TUSTIN, CA 92780

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grantor:

  	
   

  	
  wireless billing
  systems

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  18881 VON KARMAN, SUITE 450

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  IRVINE, CA 92612

  	
   

  	
   

  	
   

  	
   

  

 

THIS COMMERCIAL SECURITY AGREEMENT dated April 8, 2002, is
made and executed among WIRELESS BILLING SYSTEMS (“Grantor”); PRIMAL SOLUTIONS,
INC.; and WIRELESS BILLING SYSTEMS (“Borrower”); and SUNWEST BANK (“Lender”).

 

GRANT OF SECURITY INTEREST. For valuable consideration,
Grantor grants to Lender a security Interest in the Collateral to secure the
Indebtedness and agrees that Lender shall have the rights stated in this
Agreement with respect to the Collateral, in addition to all other rights which
Lender may have by law.

 

COLLATERAL DESCRIPTION.  The
word “Collateral” as used in this Agreement means the following described
property, whether now owned or hereafter acquired, whether now existing or
hereafter arising, and wherever located, in which Grantor is giving to Lender a
security interest for the payment of the indebtedness and performance of all
other obligations under the Note and this Agreement:

 

All present and future accounts, deposit accounts,
accounts receivable, lease receivables, chattel paper, security agreements and
debts secured thereby, documents, notes, drafts, Instruments, Inventory
proceeds and general Intangibles, together with all monies and other rights to
payment due or to become due thereunder and all repossessions and returns
thereunder; all inventory of debtor held by debtor for sale or lease or to be
furnished or leased under contracts of service and raw materials, supplies,
work in process, finished goods, and materials used or consumed in debtor’s
business and any other Inventory; and all equipment, including but not limited
to machinery, machine tools, with motors, controls, attachments, parts, tools
and accessories incidental thereto. All furniture, furnishings, fixtures, and
motor vehicles. All tools, dies, drawings, blueprints, catalogs and computer
programs. All goodwill, patents, tradenames and trademarks. All books and
records pertaining to the foregoing and the equipment containing said books and
records.

 

In
addition, the word “Collateral” also includes all the following, whether now
owned or hereafter acquired, whether now existing or hereafter arising, and
wherever located:

 

(A)  All
accessions, attachments, accessories, replacements of and additions to any ofthe collateral described herein, whether
added now or later.

 

(B)   All
products and produce of any of the property described in this Collateral
section.

 

(C)   All
accounts, general intangibles, instruments, rents, monies, payments, and all
other rights, arising out of a sale, lease, or other disposition of any of the
property described in this Collateral section.

 

(D)  All
proceeds (including insurance proceeds) from the sale, destruction, loss, or
other disposition of any of the property described in this Collateral section,
and sums due from a third party who has damaged or destroyed the Collateral or
from that party’s insurer, whether due to judgment, settlement or other
process.

 

(E)   All
records and data relating to any of the property described in this Collateral
section, whether in the form of a writing, photograph, microfilm, microfiche,
or electronic media, together with all of Grantor’s right, title, and interest
in and to all computer software required to utilize, create, maintain, and
process any such records or data on electronic media.

 

Despite
any other provision of this Agreement, Lender is not granted, and will not
have, a nonpurchase money security interest in household goods, to the extent
such a security interest would be prohibited by applicable law. In addition, if
because of the type of any Property, Lender is required to give a notice of the
right to cancel under Truth in Lending for the Indebtedness, then Lender will
not have a security interest in such Collateral unless and until such a notice
is given.

 

CROSS-COLLATERALIZATION.  In
addition to the Note, this Agreement secures all obligations, debts and
liabilities, plus interest thereon, of Borrower to Lender, or any one or more
of them, as well as all claims by Lender against Borrower or any one or more of
them, whether now existing or hereafter arising, whether related or unrelated
to the purpose of the Note, whether voluntary or otherwise, whether due or not
due, direct or indirect, determined or undetermined, absolute or contingent,
liquidated or unliquidated whether Borrower or Grantor may be liable individually
or jointly with others, whether obligated as guarantor, surely, accommodation
party or otherwise, and whether recovery upon such amounts may be or hereafter
may become barred by any statute of limitations, and whether the obligation to
repay such amounts may be or hereafter may become otherwise unenforceable,

	
  (Initial Here

  	
  /s/ JRS

  	
  )

  	
   

  	
   

  

 

BORROWER’S WAIVERS AND RESPONSIBILITIES.  Except
as otherwise required under this Agreement or by applicable law, (A) Borrower
agrees that Lender need not tell Borrower about any action or inaction Lender
takes in connection with this Agreement; (B) Borrower assumes the
responsibility for being and keeping informed about the Collateral; and (C)
Borrower waives any defenses that may arise because of any action or inaction
of Lender, including without limitation any failure of Lender to realize upon
the Collateral or any delay by Lender in realizing upon the Collateral; and
Borrower agrees to remain liable under the Note no matter what action Lender
takes or fails to take under this Agreement.

 

GRANTOR’S REPRESENTATIONS AND WARRANTIES. 
Grantor warrants that: (A) this Agreement is executed at Borrower’s
request and not at the request of Lender; (B) Grantor has the full right, power
and authority to enter into this Agreement and to pledge the Collateral to
Lender; (C) Grantor has established adequate means of obtaining from Borrower
on a continuing basis information about Borrower’s financial condition; and (D)
Lender has made no representation to Grantor about Borrower or Borrower’s
creditworthiness.

 

GRANTOR’S WAIVERS. 
Except, as prohibited by applicable law, Grantor waives any right to
require Lender to (A) make any presentment, protest, demand, or notice of any
kind, including notice of change of any terms of repayment of the Indebtedness,
default by Borrower or any other guarantor or surety, any action or nonaction
taken by Borrower, Lender, or any other guarantor or surety of Borrower, or the
creation of new or additional Indebtedness; (B) proceed against any person, including
Borrower, before proceeding against Grantor; (C) proceed against any collateral
for the indebtedness, including Borrower’s collateral, before proceeding
against Grantor; (d) apply any
payments or proceeds received against the Indebtedness in any order; (E) give
notice of the terms, time, and place of any sale of any collateral pursuant to
the Uniform Commercial Code or any other law governing such sale; (F) disclose
any information about the Indebtedness, the Borrower, any collateral, or any
other guarantor or surety, or about any action or nonaction of Lender; or (G)
pursue any remedy or course of action in Lender’s power whatsoever.

 

Grantor
also waives any and all rights or defenses arising by reason of (A) any
disability or other defense of Borrower, any other guarantor or surety or any
other person; (B) the cessation from any cause whatsoever, other than payment
in full, of the Indebtedness; (C) the application of proceeds of the
indebtedness by Borrower for purposes other than the purposes understood and
intended by Grantor and Lender; (D) any act of omission or commission by Lender
which directly or indirectly results in or contributes to the discharge of
Borrower or any other guarantor or surety, or the Indebtedness, or the loss or
release of any collateral by operation of law or otherwise; (E) any statute of
limitations in any action under this Agreement or on the Indebtedness; or (F)
any modification or change in terms of the Indebtedness, whatsoever, including
without limitation, the renewal, extension, acceleration, or other change in
the time payment of the Indebtedness is due and any change in the interest
rate.

 

Grantor
waives all rights and defenses arising out of an election of remedies by Lender
even though that election of remedies, such as a non–judicial foreclosure with
respect to security for a guaranteed obligation, has destroyed Grantor’s rights
of subrogation and reimbursement against Borrower by operation of Section 580d
of the California Code of Civil Procedure or otherwise.

 

Grantor
waives all rights and defenses that Grantor may have because Borrower’s
obligation is secured by real property. This means among other things: (1)
Lender may collect from Grantor without first foreclosing on any real property
collateral pledged by Borrower; and (2) If Lender forecloses on any real
property collateral pledged by the Borrower: (A) The amount of the Borrower’s
obligation may be reduced only by the price for which the collateral is sold at
the foreclosure sale, even if the collateral is worth more than the sale price;
(B) The Lender may collect from the Grantor even if the Lender, by foreclosing
on the real property collateral, has destroyed any right the Grantor may have
to collect from the borrower. This is an unconditional waiver of any rights and
defenses the Grantor may have because the Borrower’s obligation is secured by
real property. These rights and defenses include, but are not limited to, any
rights and defenses based upon Sections 580a, 580b, 580d, or 726 of the Code of
Civil Procedure.

 

Grantor
understands and agrees that the foregoing waivers are unconditional and
irrevocable waivers of substantive rights and defenses to which Grantor might
otherwise be entitled under state and federal law. Grantor further understands
and agrees that this Agreement is a separate and Independent contract between
Grantor and Lender, given for full and ample consideration, and is enforceable
on its own terms. Grantor acknowledges that Grantor has provided these waivers
of rights and defenses with the intention that they be fully relied upon by
Lender.  Until all indebtedness is paid
in full, Grantor waives any right to enforce any remedy Grantor may have
against Borrower or any other guarantor, surety, or other person, and further,

 

 

Grantor waives
any right to participate in any collateral for the indebtedness now or
hereafter held by Lender.

 

RIGHT OF SETOFF.  To the
extent permitted by applicable law, Lender reserves a right of setoff in all
Grantor’s accounts with Lender (whether checking, savings, or some other
account). This includes all accounts Grantor holds jointly with someone else
and all accounts Grantor may open in the future. However, this does not include
any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited
by law. Grantor authorizes Lender, to the extent permitted by applicable law,
to charge or setoff all sums owing on the Indebtedness against any and all such
accounts, and, at Lender’s option, to administratively freeze all such accounts
to allow Lender to protect Lender’s change and setoff rights provided in this
paragraph.

 

GRANTOR’S REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO THE COLLATERAL.  With respect to the Collateral, Grantor
represents and promises to Lender that:

 

Perfection or Security Interest. 
Grantor agrees to execute financing statements and to take whatever
other actions are requested by Lender to perfect and continue Lender’s security
interest in the Collateral. Upon request of Lender, Grantor will deliver to
Lender any and all of the documents evidencing or constituting the Collateral,
and Grantor will note Lender’s interest upon any and all chattel paper if not
delivered to Lender for possession by Lender. This
is a continuing Security Agreement and will continue in effect even though all
or any part of the indebtedness is paid in full and even though for a period of
time Borrower may not be Indebted to Lender.

 

Notices to Lender. 
Grantor will promptly notify Lender in writing at Lender’s address shown
above (or such other addresses as Lender may designate from time to time) prior
to any (1) change in Grantor’s name; (2) change in Grantor’s assumed business
name(s); (3) change in the management of the Corporation Grantor; (4) change in
the authorized signer(s); (5) change in Grantor’s principal office address; (6)
change in Grantor’s state of organization; (7) conversion of Grantor to a new
or different type of business entity; or (8) change in any other aspect of
Grantor that directly or indirectly relates to any agreements between Grantor
and Lender. No change in Grantor’s name or state of organization will take
effect until after Lender has received notice

 

No Violation.  The execution and delivery of
this Agreement will not violate any law or agreement governing Grantor or to which
Grantor is a party, and its certificate or articles of incorporation and bylaws
do not prohibit any term or condition of this Agreement.

 

Enforceability of Collateral.  To the
extent the Collateral consists of accounts, chattel paper, or general intangibles,
as defined by the Uniform Commercial Code, the Collateral is enforceable in
accordance with its terms, is genuine, and fully complies with all applicable
laws and regulations concerning form, content and manner of preparation and
execution, and all persons appearing to be obligated on the Collateral have
authority and capacity to contract and are in fact obligated as they appear to
be on the Collateral. There shall be no setoffs or counterclaims against any of
the Collateral, and no agreement shall have been made under which any
deductions or discounts may be claimed concerning the Collateral except those
disclosed to Lender in writing.

 

Location of the Collateral.  Except
in the ordinary course of Grantor’s business, Grantor agrees to keep the Collateral
at Grantor’s address shown above or at such other locations as are acceptable
to Lender. Upon Lender’s request, Grantor will deliver to Lender in form
satisfactory to Lender a schedule of real properties and Collateral locations
relating to Grantor’s operations, including without limitation the following:
(1) all real property Grantor owns or is purchasing; (2) all real property
Grantor is renting or leasing; (3) all storage facilities Grantor owns, rents,
leases, or uses; and (4) all other properties where Collateral is or may be
located.

 

Removal of the Collateral.  Except
in the ordinary course of Grantor’s business, Grantor shall not remove the
Collateral from its existing location without Lender’s prior written consent.
Grantor shall, whenever requested, advise Lender of the exact location of the
Collateral.

 

Transactions Involving Collateral.  Except
for inventory sold or accounts collected in the ordinary course of Grantor’s
business, or as otherwise provided for in this Agreement, Grantor shall not
sell, offer to sell, or otherwise transfer or dispose of the Collateral.
Grantor shall not pledge, mortgage, encumber or otherwise permit the Collateral
to be subject to any lien, security interest, encumbrance, or charge, other
than the security interest provided for in this Agreement, without the prior
written consent of Lender. This includes security interests even if Junior in
right to the security interests granted under this Agreement. Unless waived by
Lender, all proceeds from any disposition of the Collateral (for whatever
reason) shall be held in trust for Lender and shall not be commingled with any
other funds; provided however, this requirement shall not constitute consent by
Lender to any sale or other disposition. Upon receipt, Grantor shall
immediately deliver any such proceeds to Lender.

 

Title.  Grantor represents and warrants
to Lender that Grantor holds good and marketable title to the Collateral, free
and clear of all liens and encumbrances except for the lien of this Agreement.
No financing statement covering any of the Collateral is on file in any public
office other than those which reflect the security interest created by this
Agreement or to which Lender has specifically consented. Grantor shall defend
Lender’s rights in the Collateral against the claims and demands of all other
persons.

 

Repairs and Maintenance. 
Grantor agrees to keep and maintain, and to cause others to keep and
maintain, the Collateral in good order, repair and condition at all times while
this Agreement remains in effect. Grantor further agrees to pay when due all
claims for work done on, or services rendered or material furnished in
connection with the Collateral so that no lien or encumbrance may ever attach
to or be filed against the Collateral.

 

Inspection of Collateral.  Lender
and Lender’s designated representatives and agents shall have the right at all
reasonable times to examine and inspect the Collateral wherever located.

 

Taxes, Assessments and Liens. 
Grantor will pay when due all taxes, assessments and liens upon the
Collateral, its use or operation, upon this Agreement, upon any promissory note
or notes evidencing the indebtedness, or upon any of the other Related
Documents. Grantor may withhold any such payment or may elect to contest any
lien if Grantor is in good faith conducting an appropriate proceeding to
contest the obligation to pay and so long as Lender’s interest in the
Collateral is not jeopardized in Lender’s sole opinion. If the Collateral is
subjected to a lien which is not discharged within fifteen (15) days, Grantor
shall deposit with Lender cash, a sufficient corporate surety bond or other
security satisfactory to Lender in an amount adequate to provide for the
discharge of the lien plus any interest, costs, attorneys’ fees or other charges
that could accrue as a result of foreclosure or sale of the Collateral. In any
contest Grantor shall defend itself and Lender and shall satisfy any final
adverse Judgment before enforcement against the Collateral. Grantor shall name
Lender as an additional obligee under any surety bond furnished in the contest
proceedings. Grantor further agrees to furnish Lender with evidence that such
taxes, assessments, and governmental and other charges have been paid in full
and in a timely manner. Grantor may withhold any such payment or may elect to
contest any lien if Grantor is in good faith conducting an appropriate
proceeding to contest the obligation to pay and so long as Lender’s interest in
the Collateral is not jeopardized.

 

Compliance with Governmental Requirements. 
Grantor shall comply promptly with all laws, ordinances, rules and
regulations of all governmental authorities, now or hereafter in effect,
applicable to the ownership, production, disposition, or use of the Collateral,
including all laws or regulations relating to the undue erosion of
highly–credible land or relating to the conversion of wetlands for the
production of an agricultural product or commodity. Grantor may contest in good
faith any such law, ordinance or regulation and withhold compliance during any
proceeding, including appropriate appeals, so long as Lender’s Interest in the
Collateral, in Lender’s opinion, is not jeopardized.

 

Hazardous Substances. 
Grantor represents and warrants that the Collateral never has been, and
never will be so long as this Agreement remains a lien on the Collateral, used
in violation of any Environmental Laws or for the generation, manufacture,
storage, transportation, treatment, disposal, release or threatened release of
any Hazardous Substance. The representations and warranties contained herein
are based on Grantor’s due diligence in investigating the Collateral for
Hazardous Substances. Grantor hereby (1) releases and waives any future claims
against Lender for Indemnity or contribution in the event Grantor becomes
liable for cleanup or other costs under any Environmental Laws, and (2) agrees
to indemnify and hold harmless Lender against any and all claims and losses
resulting from a breach of this provision of this Agreement. This obligation to
indemnify shall survive the payment of the indebtedness and the satisfaction ofthis Agreement.

 

Maintenance of Casualty Insurance. 
Grantor shall procure and maintain all risks insurance, including
without limitation fire, theft and liability coverage together with such other
insurance as Lender may require with respect to the Collateral, in form,
amounts, coverages and basis reasonably acceptable to Lender and issued by a
company or companies reasonably acceptable to Lender. Grantor, upon request of
Lender, will deliver to Lender from time to time the policies or certificates
of insurance in form satisfactory to Lender, including stipulations that
coverages will not be cancelled or diminished without at least thirty (30)
days’ prior written notice to Lender and not including any disclaimer of the
insurer’s liability for failure to give such a notice. Each Insurance policy
also shall include an endorsement providing that coverage in favor of Lender
will not be impaired in any way by any act, omission or default of Grantor or
any other person. In connection with all policies covering assets in which
Lender holds or is offered a security interest, Grantor will provide Lender
with such loss payable or other endorsements as Lender may require. If Grantor
at any time fails to obtain or maintain any insurance as required under this
Agreement, Lender may (but shall not be obligated to) obtain such insurance as
Lender deems appropriate, including if Lender so chooses “single interest
insurance,” which will cover only Lender’s interest in the Collateral.

 

Application of Insurance Proceeds. 
Grantor shall promptly notify Lender of any loss or damage to the
Collateral. Lender may make proof of loss if Grantor falls to do so within
fifteen (15) days of the casualty. All proceeds of any insurance on the
Collateral, including accrued proceeds thereon, shall be held by Lender as part
of the Collateral. If Lender consents to repair or replacement of the damaged
or destroyed Collateral, Lender shall, upon satisfactory proof of expenditure,
pay or reimburse Grantor from the proceeds for the reasonable cost of repair or
restoration. If Lender does not consent to repair or replacement of the
Collateral, Lender shall retain a sufficient amount of the proceeds to pay all
of the indebtedness, and shall pay the balance to Grantor. Any proceeds which
have not been disbursed within six (6) months after their receipt and which
Grantor has not committed to the repair or restoration of the Collateral shall
be used to prepay the Indebtedness.

 

2

 

Insurance Reserves.  Lender
may require Grantor to maintain with Lender reserves for payment of insurance
premiums, which reserves shall be created by monthly payments from Grantor of a
sum estimated by Lender to be sufficient to produce, at least fifteen (15) days
before the premium due date, amounts at least equal to the insurance premiums
to be paid. If fifteen (15) days before payment is due, the reserve funds are
insufficient, Grantor shall upon demand pay any deficiency to Lender. The
reserve funds shall be held by Lender as a general deposit and shall constitute
a non-interest-bearing account which Lender may satisfy by payment of the
insurance premiums required to be paid by Grantor as they become due. Lender
does not hold the reserve funds in trust for Grantor, and Lender is not the
agent of Grantor for payment of the insurance premiums required to be paid by
Grantor. The responsibility for the payment of premiums shall remain Grantor’s
sole responsibility.

 

Insurance Reports. 
Grantor, upon request of Lender, shall furnish to Lender reports on each
existing policy of insurance showing such information as Lender may reasonably
request including the following: (1) the name of the insurer; (2) the risks insured;
(3) the amount of the policy; (4) the property insured; (5) the then current
value on the basis of which insurance has been obtained and the manner of
determining that value; and (6) the expiration date ofthe policy. In addition, Grantor shall upon request by Lender
(however not more often than annually) have an independent appraiser
satisfactory to Lender determine, as applicable, the cash value or replacement
cost of the Collateral.

 

Financing Statements. 
Grantor authorizes Lender to file a UCC-1 financing statement, or
alternatively, a copy of this Agreement to perfect Lender’s security interest.
At Lender’s request, Grantor additionally agrees to sign all other documents
that are necessary to perfect, protect, and continue Lender’s security interest
in the Property. Grantor will pay all filing fees, title transfer fees, and
other fees and costs involved unless prohibited by law or unless Lender is
required by law to pay such fees and costs. Grantor irrevocably appoints Lender
to execute financing statements and documents of title in Grantor’s name and to
execute all documents necessary to transfer title if there is a default. Lender
may file a copy of this Agreement as a financing statement. If Grantor changes
Grantor’s name or address, or the name or address of any person granting a
security interest under this Agreement changes, Grantor will promptly notify
the Lender of such change.

 

GRANTOR’S RIGHT TO POSSESSION.  Until
default, Grantor may have possession of the tangible personal property and
beneficial use of all the Collateral and may use it in any lawful manner not
inconsistent with this Agreement or the Related Documents, provided that
Grantor’s right to possession and beneficial use shall not apply to any
Collateral where possession of the Collateral by Lender is required by law to
perfect Lender’s security interest in such Collateral. If Lender at any time
has possession of any Collateral, whether before or after an Event of Default,
Lender shall be deemed to have exercised reasonable care in the custody and
preservation of the Collateral if Lender takes such action for that purpose as
Grantor shall request or as Lender, in Lender’s sole discretion, shall deem
appropriate under the circumstances, but failure to honor any request by Grantor
shall not of itself be deemed to be a failure to exercise reasonable care.
Lender shall not be required to take any steps necessary to preserve any rights
in the Collateral against prior parties, nor to protect, preserve or maintain
any security interest given to secure the indebtedness.

 

LENDER’S EXPENDITURES.  If any
action or proceeding is commenced that would materially affect Lender’s
interest in the Collateral or if Grantor fails to comply with any provision of
this Agreement or any Related Documents, including but not limited to Grantor’s
failure to discharge or pay when due any amounts Grantor is required to
discharge or pay under this Agreement or any Related Documents, Lender on
Grantor’s behalf may (but shall not be obligated to) take any action that
Lender deems appropriate, including but not limited to discharging or paying
all taxes, liens, security interests, encumbrances and other claims, at any
time levied or placed on the Collateral and paying all costs for insuring,
maintaining and preserving the Collateral. All such expenditures incurred or
paid by Lender for such purposes will then bear interest at the rate charged
under the Note from the date incurred or paid by Lender to the date of
repayment by Grantor. All such expenses will become a part of the indebtedness
and, at Lender’s option, will (A) be payable on demand; (B) be added to the
balance of the Note and be apportioned among and be payable with any
installment payments to become due during either (1) the term of any applicable
insurance policy; or (2) the remaining term of the Note; or (C) be treated as a
balloon payment which will be due and payable at the Note’s maturity. The
Agreement also will secure payment of these amounts. Such right shall be in
addition to all other rights and remedies to which Lender may be entitled upon
Default.

 

DEFAULT.  Each of the following shall
constitute an Event of Default under this Agreement:

 

Payment Default.  Borrower fails to make any
payment when due under the indebtedness.

 

Other Defaults.  Borrower
or Grantor fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Agreement or in any of the Related
Documents or to comply with or to perform any term, obligation, covenant or
condition contained in any other agreement between Lender and Borrower or
Grantor.

 

Default in Favor of Third Parties.  Should
Borrower or any Grantor default under any loan, extension of credit, security
agreement, purchase or sales agreement, or any other agreement, in favor of any
other creditor or person that may materially affect any of Grantor’s property
or Borrower’s or any Grantor’s ability to repay the indebtedness or perform
their respective obligations under this Agreement or any of the Related
Documents.

 

False Statements.  Any
warranty, representation or statement made or furnished to Lender by Borrower
or Grantor or on Borrower’s or Grantor’s behalf under this Agreement or the
Related Documents is false or misleading in any material respect, either now or
at the time made or furnished or becomes false or misleading at any time
thereafter.

 

Defective Collateralization.  This
Agreement or any of the Related Documents ceases to be in full force and effect
(including failure of any collateral document to create a valid and perfected
security interest or lien) at any time and for any reason.

 

Insolvency.  The dissolution or termination
of Borrower’s or Grantor’s existence as a going business, the insolvency of
Borrower or Grantor, the appointment of a receiver for any part of Borrower’s
or Grantor’s property, any assignment for the benefit of creditors, any type of
creditor workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Borrower or Grantor.

 

Creditor or Forfeiture Proceedings. 
Commencement of foreclosure or forfeiture proceedings, whether by
judicial proceeding, self-help, repossession or any other method, by any
creditor of Borrower or Grantor or by any governmental agency against any collateral
securing the indebtedness. This includes a garnishment of any of Borrower’s or
Grantor’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower
or Grantor as to the validity or reasonableness of the claim which is the basis
of the creditor or forfeiture proceeding and if Borrower or Grantor gives
Lender written notice of the creditor or forfeiture proceeding and deposits
with Lender monies or a surety bond for the creditor or forfeiture proceeding,
in an amount determined by Lender, in its sole discretion, as being an adequate
reserve or bond for the dispute.

 

Events Affecting Guarantor.  Any of
the preceding events occurs with respect to guarantor, endorser, surety, or
accommodation party of any of the indebtedness or guarantor, endorser, surety,
or accommodation party dies or becomes incompetent or revokes or disputes the
validity of, or liability under, any Guaranty of the indebtedness. 

 

Adverse Change.  A
material adverse change occurs in Borrower’s or Grantor’s financial condition,
or Lender believes the prospect of payment or performance of the indebtedness
is impaired.

 

Insecurity.  Lender in good faith believes itself insecure.

 

Cure Provisions.  If any
default, other than a default in payment is curable and if Grantor has not been
given a notice of a breach of the same provision of this Agreement within the
preceding twelve (12) months, it may be cured (and no event of default will
have occurred) if Grantor, after receiving written notice from Lender demanding
cure of such default: (1) cures the default within fifteen (15) days; or (2) if
the cure requires more than fifteen (15) days, immediately initiates steps
which Lender deems in Lender’s sole discretion to be sufficient to cure the default
and thereafter continues and completes all reasonable and necessary steps
sufficient to produce compliance as soon as reasonably practical.

 

RIGHTS AND REMEDIES ON DEFAULT.  If an
Event of Default occurs under this Agreement, at any time thereafter, Lender
shall have all the rights of a secured party under the California Uniform
Commercial Code. In addition and without limitation, Lender may exercise any
one or more of the following rights and remedies:

 

Accelerate Indebtedness.  Lender
may declare the entire indebtedness, including any prepayment penalty which
Borrower would be required to pay, immediately due and payable, without notice
of any kind to Borrower or Grantor.

 

Assemble Collateral.  Lender
may require Grantor to deliver to Lender all or any portion of the Collateral
and any and all certificates of title and other documents relating to the
Collateral. Lender may require Grantor to assemble the Collateral and make it
available to Lender at a place to be designated by Lender. Lender also shall have
full power to enter upon the property of Grantor to take possession of and
remove the Collateral. If the Collateral contains other goods not covered by
this Agreement at the time of repossession, Grantor agrees Lender may take such
other goods, provided that Lender makes reasonable efforts to return them to
Grantor after repossession.

 

Sell the Collateral.  Lender
shall have full power to sell, lease, transfer, or otherwise deal with the
Collateral or proceeds thereof in Lender’s own name or that of Grantor. Lender
may sell the Collateral at public auction or private sale. Unless the
Collateral threatens to decline speedily in value or is of a type customarily
sold on a recognized market, Lender will give Grantor, and other persons as
required by law, reasonable notice of the time and place of any public sale, or
the time after which any private sale or any other disposition of the
Collateral is to be made. However, no notice need be provided to any person
who, after Event of Default occurs, enters into and authenticates an agreement
waiving that person’s right to notification of sale. The requirements of
reasonable notice shall be met if such notice is given at least ten (10) days
before the time of the sale or disposition. All expenses relating to the disposition
of the Collateral, including without limitation the expenses of retaking,
holding, insuring, preparing for sale and selling the Collateral, shall become
a part of the indebtedness secured by this Agreement and shall be payable on
demand, with interest at the Note rate from date of expenditure until repaid.

 

Appoint Receiver.  Lender
shall have the right to have a receiver appointed to take possession of all or
any part of the Collateral, with the power

 

3

 

to protect and
preserve the Collateral, to operate the Collateral preceding foreclosure or
sale, and to collect the Rents from the Collateral and apply the proceeds, over
and above the cost of the receivership, against the indebtedness. The receiver
may serve without bond if permitted by law. 
Lender’s right to the appointment of a receiver shall exist whether or
not the apparent value of the Collateral exceeds the indebtedness by a
substantial amount.  Employment by Lender
shall not disqualify a person from serving as a receiver.

 

Collect Revenues, Apply Accounts.  Lender, either itself or through a receiver,
may collect the payments, rents, income, and revenues from the Collateral.  Lender may at any time in Lender’s discretion
transfer any Collateral into Lender’s own name or that of Lender’s nominee and
receive the payments, rents, income, and revenues therefrom and hold the same
as security for the indebtedness or apply it to payment of the indebtedness in
such order of preference as Lender may determine.  Insofar as the Collateral consists of
accounts, general intangibles, insurance policies, instruments, chattel paper,
choses in action, or similar property, Lender may demand, collect, receipt for,
settle, compromise, adjust, sue for, foreclose, or realize on the Collateral as
Lender may determine, whether or not indebtedness or Collateral is then
due.  For these purposes, Lender may, on
behalf of and in the name of Grantor, receive, open and dispose of mail
addressed to Grantor; change any address to which mail and payments are to be
sent; and endorse notes, checks, drafts, money orders, documents of title,
instruments and items pertaining to payment, shipment, or storage of any
Collateral.  To facilitate collection,
Lender may notify account debtors and obligors on any Collateral to make
payments directly to Lender.

 

Obtain Deficiency.  If Lender chooses to
sell any or all of the Collateral, Lender may obtain a judgment against
Borrower for any deficiency remaining on the indebtedness due to Lender after
application of all amounts received from the exercise of the rights provided in
this Agreement.  Borrower shall be liable
for a deficiency even if the transaction described in this subsection is a sale
of accounts or chattel paper.

 

Other Rights and Remedies.  Lender shall have
all the rights and remedies of a secured creditor under the provisions of the
Uniform Commercial Code, as may be amended from time to time.  In addition, Lender shall have and may
exercise any or all other rights and remedies it may have available at law, in
equity, or otherwise.

 

Election of Remedies.  Except as may be
prohibited by applicable law, all of Lender’s rights and remedies, whether
evidenced by this Agreement, the Related Documents, or by any other writing,
shall be cumulative and may be exercised singularly or concurrently.  Election by Lender to pursue any remedy shall
not exclude pursuit of any other remedy, and an election to make expenditures
or to take action to perform an obligation of Grantor under this Agreement,
after Grantor’s failure to perform, shall not affect Lender’s right to declare
a default and exercise its remedies.  

 

MISCELLANEOUS
PROVISIONS.  The
following miscellaneous provisions are a part of this Agreement:

 

Amendments. 
This Agreement, together with any Related
Documents, constitutes the entire understanding and agreement of the parties as
to the matters set forth in this Agreement. 
No alteration of or amendment to this Agreement shall be effective unless
given in writing and signed by the party or parties sought to be charged or
bound by the alteration or amendment.

 

Arbitration. 
Borrower and Grantor and Lender agree that all disputes, claims and
controversies between them whether individual, joint, or class in nature,
arising from this Agreement or otherwise, including without limitation contract
and tort disputes, shall be arbitrated pursuant to the Rules of the American
Arbitration Association in effect at the time the claim is filed, upon request
of either party.  No act to take or dispose
of any Collateral shall constitute a waiver of this arbitration agreement or be
prohibited by this arbitration agreement. 
This includes, without limitation, obtaining injunctive relief or a
temporary restraining order; invoking a power of sale under any deed of trust
or mortgage; obtaining a writ of attachment or imposition of a receiver; or
exercising any rights relating to personal property, including taking or
disposing of such property with or without judicial process pursuant to Article
9 of the Uniform Commercial Code.  Any
disputes, claims, or controversies concerning the lawfulness or reasonableness
of any act, or exercise of any right, concerning any Collateral, including any
claim to rescind, reform, or otherwise modify any agreement relating to the
Collateral, shall also be arbitrated, provided however that no arbitrator shall
have the right or the power to enjoin or restrain any act of any party.  Borrower and Grantor and Lender agree that in
the event of an action for judicial foreclosure pursuant to California Code of
Civil Procedure Section 726, or any similar provision in any other state, the
commencement of such an action will not constitute a waiver of the right to
arbitrate and the court shall refer to arbitration as much of such action,
including counterclaims, as lawfully may be referred to arbitration.  Judgment upon any award rendered by any
arbitrator may be entered in any court having jurisdiction.  Nothing in this Agreement shall preclude any
party from seeking equitable relief from a court of competent
jurisdiction.  The statute of
limitations, estoppel, waiver, laches, and similar doctrines which would
otherwise be applicable in an action brought by a party shall be applicable in
any arbitration proceeding, and the commencement of an arbitration proceeding
shall be deemed the commencement of an action for these purposes.  The Federal Arbitration Act shall apply to
the construction, interpretation, and enforcement of this arbitration provision.

 

Attorneys’ Fees; Expenses.  Grantor agrees to
pay upon demand all of Lender’s costs and expenses, including Lender’s
attorneys’ fees and Lender’s legal expenses, incurred in connection with the
enforcement of this Agreement. Lender may hire or pay someone else to help
enforce this Agreement, and Grantor shall pay the costs and expenses of such
enforcement.  Costs and expenses include
Lender’s attorneys’ fees and legal expenses whether or not there is a lawsuit,
including attorneys’ fees and legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services.  Grantor also shall pay all court costs and
such additional fees as may be directed by the court.

 

Caption Headings.  Caption headings in
this Agreement are for convenience purposes only and are not to be used to
interpret or define the provisions of this Agreement.

 

Governing Law.  This Agreement will be governed by, construed
and enforced in accordance with federal law and the laws of the State of
California.  This Agreement has been
accepted by Lender in the State of California.

 

Choice of Venue.  If there is a
lawsuit, Grantor agrees upon Lender’s request to submit to the jurisdiction of
the courts of ORANGE County, State of California.

 

Joint and Several Liability.  All obligations of
Borrower and Grantor under this Agreement shall be joint and several, and all
references to Grantor shall mean each and every Grantor, and all references to
Borrower shall mean each and every Borrower. 
This means that each Borrower and Grantor signing below is responsible
for all obligations in this Agreement. 
Where any one or more of the parties is a corporation, partnership,
limited liability company or similar entity, it is not necessary for Lender to
inquire into the powers of any of the officers, directors, partners, members,
or other agents acting or purporting to act on the entity’s behalf, and any
obligations made or created in reliance upon the professed exercise of such
powers shall be guaranteed under this Agreement.

 

Preference Payments.  Any monies Lender
pays because of an asserted preference claim in Borrower’s or Grantor’s
bankruptcy will become a part ofthe
indebtedness and, at Lender’s option, shall be payable by Borrower and Grantor
as provided in this Agreement.

 

No Waiver by Lender.  Lender shall not be deemed to have waived any
rights under this Agreement unless such waiver is given in writing and signed
by Lender.  No delay or omission on the
part of Lender in exercising any right shall operate as a waiver of such right
or any other right.  A waiver by Lender
of a provision of this Agreement shall not prejudice or constitute a waiver of
Lender’s right otherwise to demand strict compliance with that provision or any
other provision of this Agreement.  No
prior waiver by Lender, nor any course of dealing between Lender and Grantor,
shall constitute a waiver of any of Lender’s rights or of any of Grantor’s
obligations as to any future transactions. 
Whenever the consent of Lender is required under this Agreement, the
granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and
in all cases such consent may be granted or withheld in the sole discretion of
Lender.

 

Notices. 
Any notice required to be given under this
Agreement shall be given in writing, and shall be effective when actually
delivered, when actually received by telefacsimile (unless otherwise required
by law), when deposited with a nationally recognized overnight courier, or, if
mailed, when deposited in the United States mail, as first class, certified or
registered mail postage prepaid, directed to the addresses shown near the
beginning of this Agreement. Any party may change its address for notices under
this Agreement by giving formal written notice to the other parties, specifying
that the purpose of the notice is to change the party’s address.  For notice purposes, Grantor agrees to keep Lender
informed at all times of Grantor’s current address.  Unless otherwise provided or required by law,
if there is more than one Grantor, any notice given by Lender to any Grantor is
deemed to be notice given to all Grantors.

 

Power of Attorney.  Grantor hereby
appoints Lender as Grantor’s irrevocable attorney-in-fact for the purpose of
executing any documents necessary to perfect, amend, or to continue the
security interest granted in this Agreement or to demand termination of filings
of other secured parties.  Lender may at
any time, and without further authorization from Grantor, file a carbon,
photographic or other reproduction of any financing statement or of this
Agreement for use as a financing statement. 
Grantor will reimburse Lender for all expenses for the perfection and
the continuation of the perfection of Lender’s security interest in the
Collateral.

 

Waiver of Co-Obligor’s Rights.  If more than one
person is obligated for the indebtedness, Grantor irrevocably waives, disclaims
and relinquishes all claims against such other person which Grantor has or
would otherwise have by virtue of payment of the indebtedness or any part
thereof, specifically including but not limited to all rights of indemnity,
contribution or exoneration.

 

Severability. 
If a court of competent jurisdiction finds any
provision of this Agreement to be illegal, invalid, or unenforceable as to any
circumstance, that finding shall not make the offending provision illegal,
invalid, or unenforceable as to any other circumstance, if feasible, the
offending provision shall be considered modified so that it becomes legal,
valid and enforceable.  If the offending
provision cannot be so modified,

 

4

 

it shall be
considered deleted from this Agreement. 
Unless otherwise required by law, the illegality, invalidity, or
unenforceability of any provision of this Agreement shall not affect the
legality, validity or enforceability of any other provision of this Agreement.

 

Successors and Assigns.  Subject to any
limitations stated in this Agreement on transfer of Grantor’s interest, this
Agreement shall be binding upon and inure to the benefit of the parties, their
successors and assigns.  If ownership of
the Collateral becomes vested in a person other than Grantor, Lender, without notice
to Grantor, may deal with Grantor’s successors with reference to this Agreement
and the Indebtedness by way of forbearance or extension without releasing
Grantor from the obligations of this Agreement or liability under the
Indebtedness.

 

Survival of Representations and
Warranties.  All
representations, warranties, and agreements made by Grantor in this Agreement
shall survive the execution and delivery of this Agreement, shall be continuing
in nature, and shall remain in full force and effect until such time as
Borrower’s Indebtedness shall be paid in full.

 

Time is of the Essence.  Time is of the
essence in the performance of this Agreement.

 

Waive Jury. 
All parties to this Agreement hereby waive the right to any jury trial
in any action, proceeding, 

	
  or counterclaim brought by any party against any other party.  (Initial Here

  	
  /s/ JRS

  	
  )

  

 

 

DEFINITIONS.  The following
capitalized words and terms shall have the following meanings when used in this
Agreement.  Unless specifically stated to
the contrary, all references to dollar amounts shall mean amounts in lawful
money of the United States of America. 
Words and terms used in the singular shall include the plural, and the
plural shall include the singular, as the context may require.  Words and terms not otherwise defined in this
Agreement shall have the meanings attributed to such terms in the Uniform
Commercial Code:

 

Agreement. 
The word “Agreement” means this Commercial
Security Agreement, as this Commercial Security Agreement may be amended or
modified from time to time, together with all exhibits and schedules attached
to this Commercial Security Agreement from time to time.

 

Borrower. 
The word “Borrower” means PRIMAL SOLUTIONS,
INC.; and WIRELESS BILLING SYSTEMS, and all other persons and entities signing
the Note in whatever capacity.

 

Collateral. 
The word “Collateral” means all of Grantor’s
right, title and interest in and to all the Collateral as described in the
Collateral Description section of this Agreement.

 

Default. 
The word “Default” means the Default set forth
in this Agreement in the section titled “Default”.

 

Environmental Laws.  The words
“Environmental Laws” mean any and all state, federal and local statutes,
regulations and ordinances relating to the protection of human health or the
environment, Including without limitation the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended, 42 U.S.C.  Section 9601, et seq.  (“CERCLA”), the Superfund Amendments and
Reauthorization Act of 1986, Pub. 
L.  No.  99–499 (“SARA”), the Hazardous Materials
Transportation Act, 49 U.S.C.  Section
1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C.  Section 6901, et seq., Chapters 6.5 through
7.7 of Division 20 of the California Health and Safety Code, Section 25100, et
seq., or other applicable state or federal laws, rules, or regulations adopted
pursuant thereto.

 

Event of Default.  The words “Event of
Default” mean any of the events of default set forth in this Agreement in the
default section of this Agreement.

 

Grantor. 
The word “Grantor” means WIRELESS BILLING
SYSTEMS.

 

Guaranty. 
The word “Guaranty” means the guaranty from
guarantor, endorser, surety, or accommodation party to Lender, including
without limitation a guaranty of all or part of the Note.

 

Hazardous Substances.  The words “Hazardous
Substances” mean materials that, because of their quantity, concentration or
physical, chemical or infectious characteristics, may cause or pose a present
or potential hazard to human health or the environment when improperly used,
treated, stored, disposed of, generated, manufactured, transported or otherwise
handled.  The words “Hazardous
Substances” are used in their very broadest sense and include without limitation
any and all hazardous or toxic substances, materials or waste as defined by or
listed under the Environmental Laws.  The
term “Hazardous Substances” also includes, without limitation, petroleum and
petroleum by-products or any fraction thereof and asbestos.

 

Indebtedness. 
The word “Indebtedness” means the indebtedness
evidenced by the Note or Related Documents, including all principal and
interest together with all other Indebtedness and costs and expenses for which
Borrower is responsible under this Agreement or under any of the Related Documents.

 

Lender. 
The word “Lender” means SUNWEST BANK, its
successors and assigns.

 

Note.  The
word “Note” means any and all of Borrower’s Indebtedness to Lender and is used
in the most comprehensive sense and means and includes any and all of
Borrower’s liabilities, obligations and debts to Lender, now existing or
hereinafter incurred or created, together with all renewals of, extensions of,
modifications of, refinancings of, consolidations of, and substitution for the
Related Documents.

 

Property. 
The word “Property” means all of Grantor’s
right, title and interest in and to all the Property as described in the
“Collateral Description” section of this Agreement.

 

Related Documents.  The words “Related
Documents” mean all promissory notes, credit agreements, loan agreements,
environmental agreements, guaranties, security agreements, mortgages, deeds of
trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in
connection with the Indebtedness.

 

BORROWER
AND GRANTOR HAVE READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL
SECURITY AGREEMENT AND AGREE TO ITS TERMS. 
THIS AGREEMENT IS DATED APRIL 8, 2002.

 

	
  GRANTOR:

  
	
   

  
	
   

  
	
  WIRELESS BILLING SYSTEMS

  
	
   

  
	
  By:

  	
  /s/ Joseph R. Simrell

  	
   

  
	
   JOSEPH R. SIMRELL, Chief Financial
  Officer of

  
	
   WIRELESS BILLING SYSTEMS

  
	
   

  
	
  BORROWER

  
	
   

  
	
   

  
	
  PRIMAL SOLUTIONS, INC.

  
	
   

  
	
  By:

  	
  /s/ Joseph R. Simrell

  	
   

  
	
   JOSEPH R. SIMRELL, Vice President/CFO
  of

  
	
   PRIMAL SOLUTIONS, INC.

  
	
   

  
	
   

  
	
  WIRELESS BILLING SYSTEMS

  
	
   

  
	
  By:

  	
  /s/ Joseph R. Simrell

  	
   

  
	
   JOSEPH R. SIMRELL, Chief Financial
  Officer of

  
	
   WIRELESS BILLING SYSTEMS

  

 

5

 

	
  LENDER:

  
	
   

  
	
   

  
	
  SUNWEST BANK

  
	
   

  
	
   

  
	
  X

  	
  /s/ Scott Korsvik

  	
   

  
	
      Authorized Signer

  

 

6Exhibit 10.30

 

SUBORDINATION AGREEMENT

 

	
  Principal

  	
   

  	
  Loan Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No

  	
   

  	
  Call / Coll

  	
   

  	
  Account

  	
   

  	
  Officer

  	
   

  	
  Initials

  	
   

  
	
  $

  	
  100,000.00

  	
   

  	
  04–08–2002

  	
   

  	
  04–30–2004

  	
   

  	
  0100961001

  	
   

  	
  02

  	
   

  	
  103369

  	
   

  	
  232

  	
   

  	
    

  	
   

  
																	

 

References in the shaded area are for
Lender’s use only and do not limit the applicability of this document to any
particular loan or item.  Any item above
containing “***” has been omitted due to text length limitations.

 

	
  Borrower:

  	
  WIRELESS BILLING SYSTEMS

  	
  Lender:

  	
  SUNWEST BANK

  
	
   

  	
  18881 VON KARMAN, SUITE 450

  	
   

  	
  Commercial Banking Department

  
	
   

  	
  IRVINE, CA 92612

  	
   

  	
  17542 EAST 17th STREET

  
	
   

  	
   

  	
   

  	
  TUSTIN, CA 92780

  
	
  Creditor:

  	
  CORSAIR COMMUNICATION, INC.

  	
   

  	
   

  

 

THIS SUBORDINATION AGREEMENT dated
April 8, 2002, is made and executed among WIRELESS BILLING SYSTEMS, 18881
VON KARMAN, SUITE 450, IRVINE, CA 92612 (“Borrower”); CORSAIR COMMUNICATION,
INC.  (“Creditor”); and SUNWEST BANK,
Commercial Banking Department, 17542 EAST 17th STREET, TUSTIN, CA 92780
(“Lender”).

 

CURRENT INDEBTEDNESS OWING TO CREDITOR.  As of the date of
this Agreement, Borrower is indebted to Creditor in the aggregate amount of $1,722,417.00.  This amount is the total indebtedness of
every kind from Borrower to Creditor.

 

REQUESTED FINANCIAL ACCOMMODATIONS.  Borrower and
Creditor each want Lender to provide financial accommodations to Borrower in
the form of (A) new credit or loan advances, (B) an extension of time to pay or
other compromises regarding all or part of Borrower’s present indebtedness to
Lender, or (C) other benefits to Borrower. 
Borrower and Creditor each represent and acknowledge to Lender that
Creditor will benefit as a result of these financial accommodations from Lender
to Borrower, and Creditor acknowledges receipt of valuable consideration for
entering into this Agreement.  Based on the representations and acknowledgments
contained in this Agreement, Borrower and Creditor agree with Lender as
follows:

 

SUBORDINATED INDEBTEDNESS.  The words
“Subordinated Indebtedness” as used in this Agreement mean all present and
future indebtedness, obligations, liabilities, claims, rights, and demands of
any kind which may be now or hereafter owing from Borrower to Creditor. 
The term “Subordinated Indebtedness” is used in its broadest sense and
includes without limitation all principal, all interest, all costs, attorneys’
fees, all sums paid for the purpose of protecting the rights of a holder of
security, all contingent obligations of Borrower (such as a guaranty), and all
other obligations, secured or unsecured, of any nature whatsoever.

 

SUPERIOR INDEBTEDNESS.  The words “Superior
Indebtedness” as used in this Agreement mean and include all present and future
indebtedness, obligations, liabilities, claims, rights, and demands of any kind
which may be now or hereafter owing from Borrower
to Lender.  The term “Superior
Indebtedness” is used in its broadest sense and includes without limitation all
principal, all interest, all costs, attorneys’ fees, all sums paid for the
purpose of protecting Lender’s rights in security (such as paying for insurance
on collateral if the owner fails to do so), all contingent obligations of
Borrower (such as a guaranty), all obligations arising by reason of Borrower’s
accounts with Lender (such as an overdraft on a checking account), and all
other obligations of Borrower to Lender, secured or unsecured, of any nature
whatsoever.

 

SUBORDINATION.  All Subordinated
Indebtedness of Borrower to Creditor is and shall be subordinated in all
respects to all Superior Indebtedness of Borrower to Lender.  If Creditor holds one or more Security
Interests, whether now existing or hereafter acquired, in any of Borrower’s
real property or personal property, Creditor also subordinates all Creditor’s
Security Interests to all Security Interests held by Lender, whether now
existing or hereafter acquired.

 

PAYMENTS TO CREDITOR.  Except as provided
below, Borrower will not make and Creditor will not accept, at any time while
any Superior indebtedness is owing to Lender, (A) any payment upon any
Subordinated Indebtedness, (B) any advance, transfer, or assignment of assets
to Creditor in any form whatsoever that would reduce at any time or in any way
the amount of Subordinated Indebtedness, or (C) any transfer of any assets as
security for the Subordinated Indebtedness. 
Notwithstanding the foregoing, Borrower may make regularly scheduled
payments of interest only to Creditor so long as Borrower is not in default
under any agreement between Lender and Borrower. Creditor may not accelerate
any amounts owed to Creditor without Lender’s prior written consent.

 

In the event of any distribution, division, or application, whether
partial or complete, voluntary or involuntary, by operation of law or
otherwise, of all or any part of Borrower’s assets, or the proceeds of
Borrower’s assets, in whatever form, to creditors of Borrower or upon any
indebtedness of Borrower, whether by reason of the liquidation, dissolution or
other winding-up of Borrower, or by reason of any execution sale, receivership,
insolvency, or bankruptcy proceeding, assignment for the benefit of creditors,
proceedings for reorganization, or readjustment of Borrower or Borrower’s
properties, then and in such event, (A) the Superior Indebtedness shall be paid
in full before any payment is made upon the Subordinated Indebtedness, and (B)
all payments and distributions, of any kind or character and whether in cash,
property, or securities, which shall be payable or deliverable upon or in
respect of the Subordinated Indebtedness shall be paid or delivered directly to
Lender for application in payment of the amounts then due on the Superior
Indebtedness until the Superior Indebtedness shall have been paid in full.

 

In order that Lender may establish its right to prove claims and
recover for its own account dividends based on the Subordinated Indebtedness, Creditor
does hereby assign all its right, title, and interest in such claims to
Lender.  Creditor further agrees to
supply such information and evidence, provide access to and copies of such of
Creditor’s records as may pertain to the Subordinated Indebtedness, and execute
such instruments as may be required by Lender to enable Lender to enforce all
such claims and collect all dividends, payments, or other disbursements which
may be made on account of the Subordinated Indebtedness.  For such purposes, Creditor hereby
irrevocably authorizes Lender in its discretion to make and present for or on
behalf of Creditor such proofs of claims on account of the Subordinated
Indebtedness as Lender may deem expedient and proper and to vote such claims in
any such proceeding and to receive and collect any and all dividends, payments,
or other disbursements made thereon in whatever form the same may be paid or
issued and to apply the same on account of the Superior Indebtedness.

 

Should any payment, distribution, security, or proceeds thereof be
received by Creditor at any time on the Subordinated Indebtedness contrary to
the terms of this Agreement, Creditor immediately will deliver the same to
Lender in precisely the form received (except for the endorsement or assignment
of Creditor if necessary), for application on or to secure the Superior
Indebtedness, whether it is due or not due, and until so delivered the same
shall be held in trust by Creditor as property of Lender.  In the event Creditor fails to make any such
endorsement or assignment, Lender, or any of its officers on behalf of Lender,
is hereby irrevocably authorized by Creditor to make the same.

 

CREDITOR’S NOTES.  Creditor agrees to
deliver to Lender, at Lender’s request, all notes of Borrower to Creditor, or other
evidence of the Subordinated Indebtedness, now held or hereafter acquired by
Creditor, while this Agreement remains in effect.  At Lender’s request, Borrower also will
execute and deliver to Creditor a promissory note evidencing any book account
or claim now or hereafter owed by Borrower to Creditor, which note also shall
be delivered by Creditor to Lender. 
Creditor agrees not to sell, assign, pledge or otherwise transfer any of
such notes except subject to all the terms and conditions of this Agreement.

 

CREDITOR’S REPRESENTATIONS AND
WARRANTIES.  Creditor
represents and warrants to Lender that; 
(A) no representations or agreements of

 

 

any kind have been made to Creditor which would limit or qualify in any
way the terms of this Agreement; (B) this Agreement is executed at Borrower’s
request and not at the request of Lender; (C) Lender has made no representation
to Creditor as to the creditworthiness of Borrower; and (D) Creditor has
established adequate means of obtaining from Borrower on a continuing basis
information regarding Borrower’s financial condition.  Creditor agrees to keep adequately informed
from such means of any facts, events, or circumstances which might in any way
affect Creditor’s risks under this Agreement, and Creditor further agrees that
Lender shall have no obligation to disclose to Creditor Information or material
acquired by Lender in the course of its relationship with Borrower.

 

CREDITOR’S WAIVERS.  Creditor waives any
right to require Lender; (A) to make, extend, renew, or modify any loan to
Borrower or to grant any other financial accommodations to Borrower whatsoever;
(B) to make any presentment, protest, demand, or notice of any kind, including
notice of any nonpayment of the Superior Indebtedness or of any nonpayment related
to any Security Interests, or notice of any action or nonaction on the part of
Borrower, Lender, any surety, endorser, or other guarantor in connection with
the Superior Indebtedness, or in connection with the creation of new or
additional Superior Indebtedness; (C) to resort for payment or to proceed
directly or at once against any person, including Borrower; (D) to proceed
directly against or exhaust any Security Interests held by Lender from
Borrower, any other guarantor, or any other person; (E) to pursue any other
remedy within Lender’s power; or (F) to commit any act or omission of any kind,
at any time, with respect to any matter whatsoever.

 

LENDER’S RIGHTS.  Lender may take or
omit any and all actions with respect to the Superior Indebtedness or any
Security Interests for the Superior Indebtedness without affecting whatsoever
any of Lender’s rights under this Agreement. In particular, without limitation,
Lender may, without notice of any kind to Creditor, (A) make one or more
additional secured or unsecured loans to Borrower; (B) repeatedly alter,
compromise, renew, extend, accelerate, or otherwise change the time for payment
or other terms of the Superior Indebtedness or any part thereof, including
increases and decreases of the rate of Interest on the Superior Indebtedness;
extensions may be repeated and may be for longer than the original loan term;
(C) take and hold Security Interests for the payment of the Superior
Indebtedness, and exchange, enforce, waive, and release any such Security Interests,
with or without the substitution of new collateral; (D) release, substitute,
agree not to sue, or deal with any one or more of Borrower’s sureties,
endorsers, or guarantors on any terms or manner Lender chooses; (E) determine
how, when and what application of payments and credits, shall be made on the
Superior Indebtedness; (F) apply such security and direct the order or manner
of sale thereof, as Lender in its discretion may determine; and (G) assign this
Agreement in whole or in part.

 

DEFAULT BY BORROWER.  If Borrower becomes
insolvent or bankrupt, this Agreement shall remain in full force and
effect.  In the event of a corporate
reorganization or corporate arrangement of Borrower under the provisions of the
Bankruptcy Code, as amended, this Agreement shall remain in full force and
effect and the court having jurisdiction over the reorganization or arrangement
is hereby authorized to preserve such priority and subordination provided under
this Agreement in approving any such plan of reorganization or arrangement.

 

DURATION AND TERMINATION.  This Agreement will
take effect when received by Lender, without the necessity of any acceptance by
Lender, in writing or otherwise, and will remain in full force and effect until
Creditor shall notify Lender in writing at the address shown above to the
contrary.  Any such notice shall not
affect the Superior Indebtedness owed Lender by Borrower at the time of such
notice, nor shall such notice affect Superior Indebtedness thereafter granted
in compliance with a commitment made by Lender to Borrower prior to receipt of
such notice, nor shall such notice affect any renewals of or substitutions for
any of the foregoing.  Such notice shall
affect only Indebtedness of Borrower to Lender arising after receipt of such notice
and not arising from financial assistance granted by Lender to Borrower in
compliance with Lender’s obligations under a commitment Any notes lodged with
Lender pursuant to the section titled “Creditor’s Notes” above need not be
returned until this Agreement has no further force or effect.

 

MISCELLANEOUS PROVISIONS.  The following
miscellaneous provisions are a part of this Agreement:

 

Amendments. 
This Agreement, together with any Related
Documents, constitutes the entire understanding and agreement of the parties as
to the matters set forth in this Agreement. 
No alteration of or amendment to this Agreement shall be effective
unless given in writing and signed by the party or parties sought to be charged
or bound by the alteration or amendment.

 

Arbitration. 
Borrower and Creditor and Lender agree that all disputes, claims and
controversies between them whether individual, joint, or class in nature,
arising from this Agreement or otherwise, including without limitation contract
and tort disputes, shall be arbitrated pursuant to the Rules of the American
Arbitration Association in effect at the time the claim is filed, upon request
of either party.  No act to take or
dispose of any Collateral shall constitute a waiver of this arbitration
agreement or be prohibited by this arbitration agreement.  This includes, without limitation, obtaining
injunctive relief or a temporary restraining order; invoking a power of sale
under any deed of trust or mortgage; obtaining a writ of attachment or
imposition of a receiver; or exercising any rights relating to personal
property, including taking or disposing of such property with or without
judicial process pursuant to Article 9 of the Uniform Commercial
Code.  Any disputes, claims, or
controversies concerning the lawfulness or reasonableness of any act, or
exercise of any right, concerning any Collateral, including any claim to
rescind, reform, or otherwise modify any agreement relating to the Collateral,
shall also be arbitrated, provided however that no arbitrator shall have the
right or the power to enjoin or restrain any act of any party.  Borrower and Creditor and Lender agree that
in the event of an action for judicial foreclosure pursuant to California Code
of Civil Procedure Section 726, or any similar provision in any other
state, the commencement of such an action will not constitute a waiver of the
right to arbitrate and the court shall refer to arbitration as much of such
action, including counterclaims, as lawfully may be referred to arbitration.  Judgment upon any award rendered by any
arbitrator may be entered in any court having jurisdiction.  Nothing in this Agreement shall preclude any
party from seeking equitable relief from a court of competent jurisdiction.  The statute of limitations, estoppel, waiver,
laches, and similar doctrines which would otherwise be applicable in an action
brought by a party shall be applicable in any arbitration proceeding, and the
commencement of an arbitration proceeding shall be deemed the commencement of
an action for these purposes.  The
Federal Arbitration Act shall apply to the construction, interpretation, and
enforcement of this arbitration provision.

 

Attorneys’ Fees; Expenses.  Creditor agrees to
pay upon demand all of Lender’s costs and expenses, including Lender’s attorneys’
fees and Lender’s legal expenses, incurred in connection with the enforcement
of this Agreement.  Lender may hire or
pay someone else to help enforce this Agreement, and Creditor shall pay the
costs and expenses of such enforcement. 
Costs and expenses include Lender’s attorneys’ fees and legal expenses
whether or not there is a lawsuit, including attorneys’ fees and legal expenses
for bankruptcy proceedings (including efforts to modify or vacate any automatic
stay or injunction), appeals, and any anticipated post-judgment collection
services.  Creditor also shall pay all
court costs and such additional fees as may be directed by the court.

 

Authority. 
The person who signs this Agreement as or on
behalf of Creditor represents and warrants that he or she has authority to
execute this Agreement and to subordinate the Subordinated Indebtedness and the
Creditor’s security interests in Borrower’s property, if any.

 

Caption Headings.  Caption headings in
this Agreement are for convenience purposes only and are not to be used to
interpret or define the provisions of this Agreement.

 

Governing Law.  This Agreement will be governed by, construed
and enforced in accordance with federal law and the laws of the State of
California.  This Agreement has been accepted
by Lender in the State of California.

 

Choice of Venue.  If there is a
lawsuit, Creditor agrees upon Lender’s request to submit to the jurisdiction of
the courts of ORANGE County, State of California.

 

Interpretation.  In all cases where
there is more than one Creditor, then all words used in this Agreement in the
singular shall be deemed to have been used in the plural where the context and
construction so require; and where there is more than one Creditor named in
this Agreement or

 

2

 

when this Agreement is executed by more than one, the words “Creditor”
shall mean all and any one or more of them. 
Reference to the phrase “Creditor” includes the heirs, successors,
assigns, and transferees of each of them.

 

Successors and Assigns.  This Agreement shall
be understood to be for the benefit of Lender and for such other person or
persons as may from time to time become or be the holder or owner of any of the
Indebtedness or any interest therein, and this Agreement shall be transferable
to the same extent and with the same force and effect as any such indebtedness
may be transferable.

 

No Waiver by Lender.  Lender shall not be
deemed to have waived any rights under this Agreement unless such waiver is
given in writing and signed by Lender. 
No delay or omission on the part of Lender in exercising any right shall
operate as a waiver of such right or any other right.  A waiver by Lender of a provision of this
Agreement shall not prejudice or constitute a waiver of Lender’s right
otherwise to demand strict compliance with that provision or any other
provision of this Agreement.  No prior
waiver by Lender, nor any course of dealing between Lender and Creditor, shall
constitute a waiver of any of Lender’s rights or of any of Creditor’s
obligations as to any future transactions. 
Whenever the consent of Lender is required under this Agreement, the
granting of such consent by Lender in any instance shall not constitute
continuing consent to subsequent instances where such consent is required and
in all cases such consent may be granted or withheld in the sole discretion of
Lender.

 

DEFINITIONS. 
The following capitalized words and terms shall
have the following meanings when used in this Agreement.  Unless specifically stated to the contrary,
all references to dollar amounts shall mean amounts in lawful money of the
United States of America.  Words and
terms used in the singular shall include the plural, and the plural shall include
the singular, as the context may require. 
Words and terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code:

 

Agreement. 
The word “Agreement” means this Subordination
Agreement, as this Subordination Agreement may be amended or modified from time
to time, together with all exhibits and schedules attached to this
Subordination Agreement from time to time.

 

Borrower. 
The word “Borrower” means WIRELESS BILLING
SYSTEMS, and all other persons and entities signing the Note in whatever
capacity.

 

Creditor. 
The word “Creditor” means CORSAIR
COMMUNICATION, INC.

 

Indebtedness. 
The word “Indebtedness” means the Indebtedness
evidenced by the Note or Related Documents, including all principal and
interest together with all other indebtedness and costs and expenses for which
Borrower is responsible under this Agreement or under any of the Related
Documents.

 

Lender. 
The word “Lender” means SUNWEST BANK, its
successors and assigns.

 

Related Documents.  The words “Related
Documents” mean all promissory notes, credit agreements, loan agreements,
environmental agreements, guaranties, security agreements, mortgages, deeds of
trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in
connection with the Indebtedness.

 

Security Interest.  The words “Security
Interest” mean, without limitation, any and all types of collateral security,
present and future, whether in the form of a lien, charge, encumbrance, mortgage,
deed of trust, security deed, assignment, pledge, crop pledge, chattel
mortgage, collateral chattel mortgage, chattel trust, factor’s lien, equipment
trust, conditional sale, trust receipt, lien or title retention contract, lease
or consignment intended as a security device, or any other security or lien
interest whatsoever whether created by law, contract, or otherwise.

 

Subordinated Indebtedness.  The Words
“Subordinated Indebtedness” mean the indebtedness described in the
section of this Agreement titled “Subordinated Indebtedness”.

 

Superior Indebtedness.  The words “Superior
Indebtedness” mean the indebtedness described in the section of this
Agreement titled “Superior Indebtedness”.

 

BORROWER AND CREDITOR EACH ACKNOWLEDGE HAVING
READ ALL THE PROVISIONS OF THIS SUBORDINATION AGREEMENT, AND BORROWER AND
CREDITOR EACH AGREE TO ITS TERMS.  THIS
AGREEMENT IS DATED APRIL 8, 2002.

 

	
  BORROWER:

  
	
   

  
	
   

  
	
  WIRELESS BILLING SYSTEMS

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Joseph R. Simrell

  	
   

  
	
  JOSEPH R. SIMRELL,
  Chief Financial Officer of

  
	
  WIRELESS BILLING
  SYSTEMS

  
	
   

  
	
  CREDITOR:

  
	
   

  
	
   

  
	
  CORSAIR COMMUNICATION, INC.

  
	
   

  
	
  By:

  	
  /s/ Harlan
  Plumley      4/30/02

  	
   

  
	
  Authorized Signer
  for CORSAIR COMMUNICATION, INC.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Authorized Signer
  for CORSAIR COMMUNICATION, INC.

  
				

 

3

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