Document:

Raining Data Corporation

 

Exhibit 10.1          

SETTLEMENT AGREEMENT AND MUTUAL RELEASES

I.

PARTIES

The following persons enter into this Settlement Agreement (the “Agreement”):

	       	A.	  	General Automation, Inc. dba GA eXpress (“GA”); and
	 
	       	B.	  	Raining Data, U.S., Inc. fka Pick Systems (“Raining
Data”)

(individually, a “Party”; collectively, the “Party/ies”).

II.

RECITALS

The Parties enter into this Agreement with reference to the following facts:

	       	A.	  	On or about August 2, 2000, GA and Pick Systems entered
into an Asset Purchase Agreement (the “APA”);
	 
	       	B.	  	Dispute arose under the APA;
	 
	       	C.	  	Due to such disputes under APA, on or about May 25, 2001,
GA filed a complaint initiating the action entitled General
Automation, Inc. dba GA eXpress v. Raining Data etc., et al., Case
No. 01CC06836 in the Orange County Superior Court (the “Action”);
	 
	       	D.	  	On or about July 13, 2001, Raining Data filed a
cross-complaint in the Action against GA; and
	 
	       	E.	  	To avoid the costs and burdens of further litigation, the
Parties wish to settle the disputes between them on the terms set
forth in this Agreement.

III.

AGREEMENT

The Parties agree as follows:

	       	A.	  	Incorporation of Recitals.

The Parties acknowledge that the statements in Sections I and II of this
Agreement constitute part of this Agreement and are true.

	       	B.	  	Closing/Effectiveness of Agreement.

	       	     1.	  	Closing.

	 	The Parties will execute duplicate originals of this Agreement and deliver
one such original to each Party on or before July
 26, 2002 (the “Effective
Date”).

	       	     2.	  	Effective Date.

	 	This Agreement will take effect on the Effective Date.

	       	C.	  	Performances of the Parties.

	       	     1.	  	Survival of the APA.

 

 

	       	          a.	  	The APA shall remain in full force
and effect, per its terms; provided, however, that the
unpaid royalties, past present and future, shall be in
the amounts and paid at the time and the manner as set
forth in Section III.C.2 hereof.

	       	     2.	  	Royalty Payments.

	 	Raining Data shall pay GA the following sums (the “Royalty Payments”) in the following manners:

	       	          a.	  	For attorneys’ fees, all royalties
(past, present and future based on good faith estimates
for the remaining term), and other sums due under the
APA, Raining Data shall pay GA the following sums in the
following manners:

	       	               (1)	  	the amount of One Million
Dollars and No Cents (US$1,000,000.00) on or
before July 26, 2002 to be paid by wire transfer
sent to the following account (the “GA Account”):

	 	 	 
	 	 	
Paythrough: Harris Bank International Corporation

     New York, NY

     Fedwire ABA 026007760
	 
	 	 	
Account with Institution: Bank of Montreal

     595 Burrard Street

     Vancouver, BC V7X 1L7

     604/665-7374
	 
	 	 	
Beneficiary: General Automation, Inc. d/b/a

          GA eXpress, Inc.

     17595 Harvard St., C515

     Irvine, CA 92614

     949/250-4800
	 
	 	 	
Account #: 0004-4694-162

	       	               (2)	  	the amount of Four
Hundred Thousand Dollars and No Cents
(US$400,000.00) on or before December 23, 2002 to
be paid by wire transfer sent to the GA Account.
	 
	       	               (3)	  	the amount of Six Hundred
Thousand Dollars and No Cents (US$600,000.00) on
or before June 30, 2003 to be paid by wire
transfer sent to the GA Account.

	       	          b.	  	The payment obligations of Raining
Data to GA under this Section III.C.2 shall be
immediately due and payable in full, without notice, on
the occurrence of any of the following events:

	       	               (1)	  	Raining Data (i) makes an
assignment for the benefit of creditors, or (ii)
applies for or consents to the appointment of a
receiver, trustee, or similar officer for it or
for all or any substantial part of its property or
business, or such receiver, trustee or similar
officer is appointed, and such appointment shall
continue undischarged for a period of thirty (30)
days after such appointment; or
	 
	       	               (2)	  	any bankruptcy,
insolvency, reorganization or liquidation
proceeding or other proceeding for relief under
any bankruptcy law or any law for the relief of
debtors is instituted by or against Raining Data
and, if instituted against Raining Data, is not
discharged within thirty (30) days after such
institution; or
	 
	       	               (3)	  	Raining Data assigns or
purports to assign its rights or obligations under
this Agreement; or
	 
	       	               (4)	  	Raining Data shall merge,
consolidate, sell all or substantially all of its
assets pursuant to which more than 50% of Raining
Data’s voting power is transferred; or

 

 

	       	               (5)	  	Raining Data shall
dissolve, cease active conduct of the business in
which it is engaged as of the date of this
Agreement, or abandon all or and substantial part
of its assets or the business which it conducts as
of the date of this Agreement.

	       	     3.	  	Notice of Settlement/Stipulation of Entry of
Judgment/Request for Dismissals in Action.

	       	          a.	  	Notice of Settlement. On or before
July 26, 2002, GA shall cause its counsel to execute and
file a Notice of Settlement in the Action substantially
in the form attached hereto as Exhibit “A.”
	 
	       	          b.	  	Stipulation for Entry of Judgment.
Concurrently with the execution of this Agreement,
Raining Data and GA shall execute a Stipulation for
Entry of Judgment in the form attached hereto as Exhibit
“B.” If Raining Data defaults by failing to make the
payments required by this Settlement Agreement, GA is
entitled to obtain judgment in its favor and against
defendant Raining Data in the amount of $2,000,000, less
any amounts previously paid under this Settlement
Agreement. Ten (10) calendar days prior to seeking entry
of judgment, GA shall serve notice by mail and facsimile
on Raining Data’s counsel of the alleged amount of
default and of GA’s intent to enter the judgment. If
Raining Data does not cure the default within ten (10)
calendar days after receipt of such notice, GA will be
entitled to obtain judgment, ex parte, in its favor
against Raining Data in the amount of $2,000,000, less
any amount previously paid under this Settlement
Agreement. If Raining Data cures such specified default
by making the required payment within ten (10) calendar
days after receipt of such notice, no judgment shall be
entered.
	 
	       	          c.	  	Contingent Dismissal of Complaint.
Within ten (10) days of payment of the balance of all of
the Royalty Payments, GA shall file a dismissal of its
Complaint and the entire Action with prejudice.
	 
	       	          d.	  	Dismissal of Cross-Complaint.
Concurrently with the execution of this Settlement
Agreement, Raining Data shall cause its counsel to
execute and deliver to GA’s counsel a Request for
Dismissal of the Cross-Complaint in the Action with
Prejudice in the form attached hereto as Exhibit “C.”
GA may file that Request forthwith.
	 

	       	D.	  	Releases.

	       	     1.	  	Release by GA.

	 	 	 
	 	 	
Effective upon payment of the Royalty Payments described in Section
III.C.2 hereof, GA, on behalf of itself and its predecessors, successors,
assignors, assignees, trustees, and administrators, past, present, and
future, hereby fully releases and discharges Raining Data, and its parent,
affiliated, and subsidiary corporations, past, present, and future, and
each of their respective directors, officers, partners, agents,
representatives, attorneys, servants, and employees, past, present, and
future, and each of their predecessors, successors, assignors, assignees,
heirs, executors, trustees, and administrators, past, present, and future
(collectively, the “GA Releasees”), with respect to any and all claims,
actions, causes of action, set-offs, and defenses, of any kind or nature
whatsoever, in law, equity, or otherwise, whether fixed or contingent,
whether now known or unknown, whether suspected or unsuspected, and
whether concealed or hidden, which now exist, or which existed before the
Effective Date, or which may exist after the Effective Date, relating to
or arising out of the Action or any act, transaction, occurrence, event,
error, or omission by any of the GA Releasees, whether acting for
themselves personally, jointly or severally, or on behalf of others,
jointly or severally, prior to the Effective Date with respect to the APA
or the assets and liabilities or royalty payments associated therewith,
other than the obligations under this Agreement.

	       	     2.	  	Release by Raining Data.

	 	 	 
	 	 	
Effective on the Effective Date, Raining Data, on behalf of itself and its
affiliated, and subsidiary corporations, and each of its predecessors,
successors, assignors, assignees, trustees, and administrators, past,
present, and future, hereby fully releases and discharges GA, and its
parent, affiliated, and subsidiary corporations, past, present, and
future, and each of their respective parent, affiliated, and subsidiary
corporations, past, present, and future, and each of their directors,
officers, partners, agents, representatives, attorneys, servants, and
employees, past, present, and future, and each of their predecessors,
successors, assignors, assignees, heirs, executors, trustees, and
administrators, past, present, and future (collectively, the “Raining Data
Releasees”), with respect to any and all claims, actions, causes of
action, set-offs, and defenses, of any kind or nature whatsoever,
including, but not limited to, derivative claims by shareholder and
creditors of Raining Data, in law, equity, or otherwise, whether fixed or
contingent, whether now known or unknown, whether suspected or
unsuspected, and

 

 

	 	 	 
	 	 	
whether concealed or hidden, which now exist, which existed before the
Effective Date, or which may exist after the Effective Date, relating to
or arising out of the Action or any act, transaction, occurrence, event,
error, or omission by any of the Raining Data Releasees, whether acting
for themselves personally, jointly or severally, or on behalf of others,
jointly or severally, prior to the Effective Date with respect to the APA
or the assets and liabilities or royalty payments associated therewith,
other than the obligations under this Agreement.

(The releases set forth in the preceding paragraphs 1 and 2 are collectively
referred to herein as the “Released Claims”).

	       	     3.	  	Section 1542 Waiver.

With respect to the Released Claims, the Parties waive and relinquish, to the
fullest extent that the law permits, the provisions, rights, and benefits of
California Civil Code section 1542 and other statutes or common law principles
of similar effect. The Parties acknowledge that they are familiar with, and/or
have been advised by their legal counsel of, the provisions of California Civil
Code section 1542, which provides as follows:

	 	 	 
	 	 	
[Certain claims not affected by general release.] A general release
does not extend to claims which the creditor does not know or
suspect to exist in his favor at the time of executing the release,
which if known by him must have materially affected his settlement
with the debtor.

	       	     4.	  	Limitation on Releases.

None of the Released Claims includes:

	       	          a.	  	any cause of action, claim, set-off,
or defense against either Party for any act,
transaction, occurrence, event, error, or omission by
either Party arising out of, or relating to, the
performance of this Agreement;
	 
	       	          b.	  	any cause of action, claim, set-off,
or defense against any non-party, third-party, or any
prior creditor or claimant of either Party; and
	 
	       	          c.	  	the right of either Party to seek
discovery from the other Party in any subsequent action
or proceeding, whether between the Parties or between
either Party and any non-party, any third party, or any
prior creditor or claimant of either Party for which the
law would otherwise provide if the Parties had not
entered into this Agreement.
	 

	       	E.	  	Consideration.

The consideration recited in this Agreement is the sole and only consideration
for this Agreement, which each Party acknowledges is legally sufficient.

	       	F.	  	Taxes.

Each Party will bear all taxes, including, but not limited to, customs, excise,
luxury, sales, use, value added, and/or income, necessary for such Party to
perform this Agreement.

	       	G.	  	Mutual Representations and Warranties.

Each Party represents and warrants to the other Party that:

	       	     1.	  	          The Party has all necessary power and
authority to execute, deliver, perform, and/or comply with,
this Agreement;
	 
	       	     2.	  	          The Party, or the Party’s authorized agent,
has duly authorized, executed, and delivered this Agreement,
and that this Agreement constitutes a legal and binding
agreement, enforceable against the Party in accord with the
terms of this Agreement;

 

 

	       	     3.	  	          The Party’s execution, delivery, performance
of, and compliance with, this Agreement will not violate or
conflict with the terms of any agreement, instrument, order,
judgment, or applicable law, statute, regulation, or rule to
which the Party or any assets of the Party is bound and will
not require the Party to file or register with, or obtain
any permit, authorization, consent, or approval of any
governmental or regulatory authority;
	 
	       	     4.	  	          There is no action or proceeding, judicial or
non-judicial, by which any third-party, prior creditor or
claimant of the Party, or non-party seeks to restrain,
prohibit, or invalidate the Party’s execution, delivery,
performance of, and/or compliance with, this Agreement; and
	 
	       	     5.	  	Financial Representations.

	       	          a.	  	GA represents that the representation
GA made to Raining Data in the APA that its annual
revenues for the three fiscal years prior to August 1,
2000 derived from GA’s line of PR Database Management
Products and related service agreements was at least
$8,000,000 per year is materially true (the “GA past
revenue representation”).
	 
	       	          b.	  	Raining Data represents that the
information Raining Data provided to GA on or about June
24, 2002 (a true copy of which is attached hereto as
Exhibit D; the parties also have included in Exhibit D a
2-page Summary Sheet prepared in connection with this
Agreement), about its received GAAP revenue, APB 16
adjustments, estimated GAAP revenue, and balance due on
the GA Note (the “Note Balance”), calculated with
respect to Raining Data’s sales to the customers listed
on Schedule 1(a)(i) to the APA and the list of European
customers attached to the letter from Jane Christie
dated October 12, 2000, is materially true (the “Raining
Data royalty and note representation”). Based on the
Raining Data royalty and note representation, the net
royalties on such GAAP revenue, after the APB 16
adjustment, at the agreed 20% royalty rate, totals
approximately $1,812,700. GA understands that Raining
Data disputed and continues to dispute any obligation to
pay royalties to GA as to many of the categories listed
on Exhibit D, and that Raining Data drafted and provided
Exhibit D to GA only to facilitate settlement
discussions. Raining Data understands that GA disputed
and continues to dispute Raining Data’s right to an APB
16 adjustment. By “materially true” as set forth in
sections III.G.5.a and b above, the parties mean that
the GA past revenue representation and the Raining Data
royalty and note representation are correct within a
factor of 5%, that is, GA’s annual revenues for the
three fiscal years prior to August 1, 2000 derived from
GA’s line of PR Database Management Products and related
service agreements was at least 95% of $8,000,000 per
year, and the net royalties that Raining Data owes to
GA on Raining Data’s GAAP revenue, after the APB 16
adjustment, at the agreed 20% royalty rate, totals no
more than 105% of $1,812,700. Both parties reserve
the right to demand an audit by an independent firm of
certified public accountants, paid for by the party
requesting the audit, of the other party’s financial
representation, with which audit request(s) both parties
will cooperate. The party requesting the audit shall
designate the auditor, who must be independent. However
any such audit must be completed by October 25, 2002.
	 
	       	          c.	  	If an audit is conducted under this
section, the following shall apply:

	       	               (1)	  	If the audit confirms
that the GA past revenue representation or the
Raining Data royalty and note representation was
correct within a factor of 5% (i.e., GA annual
revenue of at least $7,600,000 for each of three
fiscal years prior to August 1, 2000, or actual
royalties owed by Raining Data (after the APB 16
adjustments) and Note Balance of less than
$1,903,335), then the party requesting the audit
will pay the other party $50,000, which amount
shall be subtracted from (if GA requests the
audit) or added to (if Raining Data requests the
audit) the final payment due under this Agreement
on June 30, 2003.
	 
	       	               (2)	  	If, in the case of any
audit requested by Raining Data, the audit
establishes that the lowest annual revenue for any
of the three fiscal years prior to August 1, 2000
derived from GA’s line of PR Database Management
Products and related service agreements was less
than $7,600,000, then the June 30, 2003 payment
from Raining Data to GA will be reduced by the
percentage that the annual revenue falls below
$8,000,000 minus 5%, multiplied against the total
consideration paid by Raining Data under this
Agreement. For example, if the audit establishes
that the annual revenue for one of the years was
$6,800,000 (15% below $8,000,000), then a 10%
reduction (15% shortfall minus 5%)

 

 

	       	                   	  	against total consideration, or $200,000 (10%
multiplied by $2,000,000), will be deducted from the
June 30, 2003 payment. If the deduction under this
section exceeds the $600,000 June 30, 2003 payment,
GA will pay Raining Data the difference on June 30,
2003.

	       	               (3)	  	If, in the case of any
audit requested by GA, the audit establishes that
the actual royalties owed by Raining Data (after
the APB 16 adjustment) plus the Note Balance
exceed 105% of $1,812,700, to wit, $1,903,335,
then the amount in excess of $1,903,335, will be
added to the June 2003 payment. For example, if
the audit discloses that actual royalties owed by
Raining Data (after the APB 16 adjustment) plus
the Balance Due on the Note equals $2,003,335,
then $100,000 will be added to the June 2003
payment.
	 

	       	          d.	  	If an audit under this section
results in a finding of more than a 5% variance in the
GA past revenue representation or the Raining Data
royalty and note representation, and the party that was
audited disputes the auditors’ finding, then the
parties’ dispute will be submitted to binding
arbitration before JAMS. The arbitrator shall be
authorized only to determine the actual variance from
the party’s representation (the $8,000,000 by GA and the
$1,812,700 by Raining Data) from the amount that the
arbitrator finds (if different than the what the
auditors find) and to award the corresponding payment or
credit owed in connection with the June 30, 2003 payment
pursuant to the methodologies in sections III.G.5.d(2),
and (3) hereof. (Without limiting the foregoing, the
arbitrator shall not determine what categories of goods
or customers were covered by the APA or whether under
the APA, Raining Data was entitled to the APB 16
adjustment; those issues are to be deemed determined per
Exhibit D, that is, the categories of goods and
customers in Exhibit D are to be included and the APB 16
adjustment is to be taken.) The prevailing party in the
arbitration shall be entitled to recover its attorneys’
fees, expert fees, fees of the arbitrator and JAMS, and
all other costs.
	 
	       	          e.	  	This section III.G.6 is intended to
create rights only for GA and Raining Data. The rights
under this section III.G.6 are not assignable in any way
and do not create any rights or claims in any third
parties; provided, however, that GA may assign the right
to any additional royalties to Pacific Mezzanine Fund.
The parties expressly disclaim all third party
beneficiary rights.
	 

	       	H.	  	Indemnification.

	       	     1.	  	          Each Party will protect, defend, indemnify,
and hold harmless the other Party from and against any and
all accounts, actions, attorneys’ fees, expenses, and costs,
causes of action, claims, costs, damages, debts, demands,
encumbrances, expenses, expert witness fees and expenses,
liabilities, liens, losses, judgments, obligations, and
orders arising from any representation by such Party made in
this Agreement that turns out to be untrue.
	 
	       	     2.	  	          Each Party will bear its own commission,
finder’s fee, or similar payment arising out of, or relating
to, this Agreement and will protect, defend, indemnify, and
hold harmless the other Party from such commission, finder’s
fee, or similar payment arising out of, or relating to, this
Agreement.
	 

	       	I.	  	Assignability.

GA may assign its rights to the unpaid balance of Royalty Payments, which
assignment shall be effective upon Raining Data’s receipt of written notice
thereof.

	       	J.	  	Confidentiality.

The Parties agree that this Agreement and its terms and provisions are
confidential and may not be disclosed to any third parties other than the
Parties’ accountants, attorneys, or investment advisors and their agents for
the purposes of enabling said persons to render professional advice, or as may
be required by law, or to potential acquirors of or investors in either Party
pursuant to an executed non-disclosure agreement, or as required to effectuate
the terms of this Agreement or to enforce rights hereunder; however, the
Parties agree that after the Effective Date either Party may disclose: (i) the
fact that the Action has been amicably resolved and the case dismissed to avoid
further litigation; (ii) the total monetary consideration and payment terms of
the settlement including all provisions under Section III.C.2; and (iii) such
other terms, including the filing of this entire Agreement, to the extent such
disclosure is required under the Federal Securities Laws or other similar such
laws and regulations.

 

 

	       	K.	  	Survival.

All disclaimers, representations, and warranties in this Agreement will
survive, remaining fully enforceable and effective after, the Effective Date
and performance of this Agreement.

	       	L.	  	Notices.

The Parties will send all notices or other communications necessary under this
Agreement, and any agreement, instrument, or paper to be delivered or served on
the Parties for which this Agreement expressly provides, in writing by first
class United States mail, or any equivalent or better means of delivery,
including, but not limited to, personal delivery or courier delivery services,
with all delivery charges prepaid. Such notices or communications will be
deemed given, and such agreements, instruments, or papers will be deemed
delivered, served, or received (as appropriate) on the date sent. The Parties
will send all such notices or other communications and all such agreements,
instruments, or papers to the following addresses:

	 	 	 	 	 
	To GA:	 	 	 	
Jane Christie

          General Automation, Inc.

          P. O. Box 15510

          Irvine, CA 92623-5510

	 
	 	 	 	 	          Richard Cutshall

          General Automation, Inc.

          P. O. Box 15510

          Irvine, CA 92623-5510
	 
	 	 	 	 	          Henry S. David

           B. Abel

          Squire, Sanders & Dempsey L.L.P.

          801 So. Figueroa Street, 14th Floor

          Los Angeles, CA 90017-5554
	 
	To Raining Data:	 	 	 	
Geoffrey Wagner

          Rockport Group

          6600 SW 92nd Avenue

          Suite 370

          Portland, OR 97223

	 
	 	 	 	 	          Benjamin K. Riley

          Cooley Godward LLP

          One Maritime Plaza

          20th Floor

          San Francisco, CA 94111-3580

The Parties may change the addresses above by giving notice of such change
pursuant to this Section.

	       	M.	  	Choice of Law.

The laws of the State of California, including laws regarding statutes of
limitation and/or laches, but not including conflicts of laws principles, will
govern the interpretation, application, and enforcement of this Agreement
except to the extent that the laws of the United States of America pre-empt the
laws of the State of California.

	       	N.	  	Attorneys’ Fees.

Except as encompassed in Section III.C.2.a hereof, the Parties waive all rights
to recover attorneys’ fees, expenses, and costs, including expert witness fees
and expenses, arising out of, or relating to, the Action and the preparation
and closing of this Agreement. In any further action or proceeding arising out
of, or related to, this Agreement, after the Effective Date, but not including
any Ex Parte Application for Entry of the Stipulated Judgment, the prevailing
party will recover reasonable attorneys’ fees, expenses, and costs, including
expert witness fees and expenses, incurred or paid for such action or
proceeding from the losing party.

 

	       	O.	  	Advice of Counsel.

Each Party acknowledges and agrees that the Party has given mature and careful
thought to this Agreement, has had the opportunity to review this Agreement
independently with legal counsel of its choice, and/or has the requisite
experience and sophistication to understand, interpret, and agree to the
particular language of this Agreement. In the event of any ambiguity in, or
dispute regarding the interpretation of, this Agreement, the Parties agree that
no one will resolve any ambiguity in, or dispute regarding the interpretation
of, this Agreement by any rule providing for interpretation against the Party
that causes the uncertainty to exist or against the draftsman.

	       	P.	  	Waiver, Modification, and Amendment.

The Parties may not waive any provision of this Agreement except by an express
written agreement that expressly identifies the provision/s waived, uses the
term “waive” or “waiver” as to such provision/s, and states the
scope/extent/duration of the waiver, and that all Parties to be charged have
signed; no Party shall be deemed to waive implicitly any provision/s of this
Agreement by any action or writing; and a waiver of any provision of this
Agreement will not constitute a waiver of any other provision. The Parties may
modify or amend this Agreement only by an express written agreement that
expressly states that the Parties intend to modify or amend this Agreement,
that expressly sets forth the modification or amendment, and that all Parties
to be charged have signed.

	       	Q.	  	Assumption of Possible Difference in Facts.

Except as otherwise provided herein, each party fully understands that if the
facts with respect to which this Agreement is executed be found hereafter to be
different from the facts now believed to be true, it expressly accepts and
assumes the risk of such possible difference in facts and agrees that this
Agreement shall be and remain effective notwithstanding such difference in
facts.

	       	R.	  	Titles and Captions.

The Parties have inserted the section titles in this Agreement only as a matter
of convenience and for reference, and the section titles in no way define,
limit, extend, or describe the scope of this Agreement or the intent of the
Parties in including any particular provision in this Agreement.

	       	S.	  	No Third Party Beneficiaries.

This Agreement does not constitute a contract for the benefit of any third
party, any prior creditor or claimant of either Party, or any non-party in any
manner whatsoever. Neither Party has the right to commit the other Party to
any agreement with any third party, any prior creditor or claimant of either
Party, or any non-party without the prior written consent of that Party.

	       	T.	  	Integration.

This Agreement sets forth the entire agreement between the Parties. This
Agreement supersedes any and all prior or contemporaneous agreements or
understandings, whether written or oral, between the Parties.

	       	U.	  	Further Assurances.

The Parties agree to execute any and all documents or take any actions, in a
timely manner, that are, or may be, necessary to give full effect to this
Agreement. The Parties agree to execute all documents reasonably necessary to
effectuate the terms of this Agreement.

	       	V.	  	Execution.

The Parties may execute this Agreement in one or more counterparts, each of
which constitutes an original, and all of which constitute one and the same
Agreement. A facsimile or copy of this Agreement executed by the Parties,
whether complete or in counterparts, will constitute sufficient evidence of the
originals of this Agreement for all purposes.

	       	W.	  	Authorization.

Each signatory represents that he has been authorized to execute this Agreement
and that any necessary Board approval has been obtained.

 

IV.

SIGNATURES

	 	 	 
	DATED: July  25, 2002	
GENERAL AUTOMATION, INC., dba GA eXpress

 

	 	 	 
	 	By: 	
      /s/ Jane Christie
	 	 	

	 	Name:  	     Jane Christie
	 	 	

	 	Title: 	     
 President and CEO
	 	 	

	 	 	 
	DATED: July 26, 2002	
RAINING DATA, U.S., INC., fka PICK SYSTEMS

	 	 	 
	 	By: 	
      /s/ Carlton H. Baab
	 	 	

	 	Name: 	
      Carlton H. Baab
	 	 	

	 	Title: 	
      President and CEO
	 	 	

APPROVAL AS TO FORM:

     Each of the undersigned attorneys states that the terms of the foregoing
Agreement have been read by and explained to his or her clients.

	 	 	 
	SQUIRE, SANDERS & DEMPSEY L.L.P.	 	
COOLEY GODWARD LLP

 

	 	 	 
	By:   /s/  David Abel	 	
By:   /s/  Benjamin K. Riley
	
	 	

	                    David B. Abel	 	
                   Benjamin K. Riley

	 	 	 
	Attorneys for General Automation, Inc.	 	
Attorneys for Raining Data, U.S., Inc.
	 
	Date: July 25, 2002	 	
Date: July 26, 2002

 

 

FIRST AMENDMENT TO SETTLEMENT AGREEMENT AND MUTUAL RELEASES

V.

PARTIES

The following persons enter into this First Amendment to Settlement Agreement
and Mutual Releases (the “First Amendment”):

	       	A.	  	General Automation, Inc. dba GA eXpress (“GA”); and
	 
	       	B.	  	Raining Data, U.S., Inc. fka Pick Systems (“Raining
Data”)

(individually, a “Party”; collectively, the “Party/ies”).

VI.

RECITALS

The Parties enter into this First Amendment with reference to the following
facts:

	       	A.	  	Effective July 26, 2002, the Parties entered into a
Settlement Agreement and Mutual Releases (the “Settlement
Agreement”) of certain disputes between them;
	 
	       	B.	  	Pursuant to Section III.C.2.a.1 of the Settlement
Agreement, Raining Data was to wire transfer the sum of One
Million Dollars and No Cents ($1,000,000.00) to the GA Account (as
that term is defined in the Settlement Agreement) on July 26,
2002; and
	 
	       	C.	  	The Parties have agreed that Raining Data may and will
satisfy its obligation under Section III.C.2.a.1 of the Settlement
Agreement by delivering to General Automation on July 26, 2002, a
cashier’s check as provided below instead of by wire transfer.

VII.

AGREEMENT

The Parties agree as follows:

	       	A.	  	Amendment of Section III.C.2.a.1 of the Settlement
Agreement

Section III.C.2.a.1 of the Settlement Agreement shall be deleted and shall be
amended to read as follows:

	 	 	 
	 	 	
“(1) the amount of One Million Dollars and No Cents
(US$1,000,000.00) on or before July 26, 2002 to be paid by a
cashier’s check made payable to “General Automation, Inc. d/b/a
GA eXpress, Inc.” and delivered in person on July 26, 2002, to
General Automation.”

	       	B.	  	Amendment of Section III.C.2.a.2 of the Settlement
Agreement

Section III.C.2.a.2 of the Settlement Agreement shall be deleted and shall be
amended to read as follows:

	 	 	 
	 	 	
“(2) the amount of Four Hundred Thousand Dollars and No
Cents (US$400,000.00) on or before December 23, 2002 to be paid
by wire transfer sent to the following account (the “GA
Account”):

	 
	Paythrough: Harris Bank International Corporation

               New York, NY

               Fedwire ABA 026007760

	 
	Account with Institution: Bank of Montreal

               595 Burrard Street

               Vancouver, BC V7X 1L7

               604/665-7374

 

 

	 
	Beneficiary: General Automation, Inc. d/b/a

                   GA eXpress, Inc.

              17595 Harvard St., C515

              Irvine, CA 92614

              949/250-4800

	 	 	 
	Account #:	 	
0004-4694-162”

	       	C.	  	Balance of Settlement Agreement to Remain in Full Force
and Effect.

Except as expressly provided in this First Amendment, the Settlement Agreement
and its terms shall remain in full force and effect.

	       	D.	  	Execution.

The Parties may execute this First Amendment in one or more counterparts, each
of which constitutes an original, and all of which constitute one and the same
Agreement. A facsimile or copy of this First Amendment executed by the
Parties, whether complete or in counterparts, will constitute sufficient
evidence of the originals of this First Amendment for all purposes.

	       	E.	  	Authorization.

Each signatory represents that he has been authorized to execute this First
Amendment and that any necessary Board approval has been obtained.

VIII.

SIGNATURES

	 	 	 
	DATED: July 26, 2002	 	
GENERAL AUTOMATION, INC., dba GA eXpress

 

	 	 	 
	 	 	
By:      /s/ Jane Christie
	 	 	

	 	 	
Name:      Jane Christe
	 	 	

	 	 	
Title:      President and CEO
	 	 	

	 	 	 
	DATED: July 26, 2002	 	
RAINING DATA, U.S., INC., fka PICK SYSTEMS

 

	 	 	 
	 	 	
By:      /s/ Brian C. Bezdek
	 	 	

	 	 	
Name:      Brian C. Bezdek
	 	 	

	 	 	
Title:      Vice President, Finance
	 	 	

 

APPROVAL AS TO FORM:

     Each of the undersigned attorneys states that the terms of the foregoing
First Amendment have been read by and explained to 

his or her clients.

	 	 	 
	SQUIRE, SANDERS & DEMPSEY L.L.P.	 	
COOLEY GODWARD LLP

	 	 	 
	By:   /s/  David Abel	 	
By:   /s/  Monica K. Hoppe
	
	 	

	David B. Abel	 	
Monica K. Hoppe

	 	 	 
	Attorneys for General Automation, Inc.	 	
Attorneys for Raining Data, U.S., Inc.

	 	 	 
	Date: July 31, 2002	 	
Date: July 26, 2002<PAGE>

                                  EXHIBIT 10.1

                       THIRD AMENDMENT TO CREDIT AGREEMENT

                  THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this "Amendment" or
"Third Amendment") has been executed as of the 3rd day of July, 2002, (the
"Third Amendment Effective Date"), by INDIAN-MARTIN AG, a Swiss corporation,
("Company"), and BANK ONE, INDIANA, NATIONAL ASSOCIATION, a national banking
association ("Bank").

                                    RECITALS

                  1. Company and Bank (collectively, the "Parties") are parties
to a Credit Agreement, dated as of May 15, 2000, which has been amended by a
First Amendment to Credit Agreement dated as of May 14, 2001, and a Second
Amendment to Credit Agreement dated as of May 13, 2002 (as in effect immediately
prior to the execution of this Amendment, the "Existing Agreement").

                  2. The Parties have determined that it is in their best
interests to amend the Existing Agreement, effective as of the Third Amendment
Effective Date, as set forth in this Third Amendment, and subject to the terms
and conditions of this Third Amendment.

                                    AGREEMENT

                  NOW THEREFORE, in consideration of the Recitals and for other
good and valuable considerations, the receipt and sufficiency of which are
hereby acknowledged by each of the Parties to this Third Amendment, it is agreed
as follows:

                  1. DEFINITIONS. Terms which are defined in the Existing
Agreement shall have the same meanings in this Amendment as are ascribed to them
in the Existing Agreement, as amended hereby, excepting only those terms which
are expressly defined in this Amendment, which shall have the meanings ascribed
to them in this Amendment.

                  2. AMENDMENTS TO EXISTING AGREEMENT.

                  (a) AMENDMENTS TO DEFINITIONS. The following definitions,
which are set forth in Section 1.02 of the Existing Agreement, are amended and
restated in their entirety as of the Third Amendment Effective Date to read as
follows:

                  "BORROWING BASE" means, at any date a determination thereof is
                  made, an amount equal to the sum of: eighty percent (80%) of
                  the book value of the Eligible Accounts PLUS one hundred
                  percent (100%) of the Pledged Cash, LESS the amount of excess,
                  if any, by which the aggregate Eligible Accounts outstanding
                  at any time from any account debtor and its Affiliates exceeds
                  fifteen percent (15%) of aggregate Eligible Accounts on such
                  date of determination; provided however, that such
                  concentration

<PAGE>

                  limitation shall not apply to Eligible Accounts owed by Sears
                  Roebuck, Inc. so long as such account debtor is rated at least
                  BBB/Baa2, or better on the senior unsecured debt ratings
                  established from time to time by S&P and Moody's,
                  respectively. For purposes of the Borrowing Base calculations
                  provided herein, the Parties acknowledge and agree that from
                  time to time there may be discrepancies (attributable to
                  write-offs, incomplete payments, returns, disputes, discounts
                  and other assorted credit memo balances) as to the amount of
                  the Eligible Accounts shown by the Company on the Borrowing
                  Base Certificate and the consolidated total of summary agings
                  as to all Purchased Accounts Receivable which are prepared by
                  each of the Escalade Domestic Subsidiaries, as servicing
                  agents for the Company, both of which reports are submitted to
                  the Bank as of the same date and are meant to define the same
                  body of Eligible Accounts at that point in time. The effect of
                  such discrepancies is such that the amount of Eligible
                  Accounts shown on the Company's Borrowing Base Certificate is
                  occasionally and unwittingly shown to be a greater amount than
                  the amount to which Eligible Accounts then actually total.
                  From and after the Third Amendment Effective Date, the Parties
                  agree that the Bank shall be authorized and entitled to
                  calculate the Company's Borrowing Base as of any given date to
                  the amount which is the lesser of (i) the amount of Eligible
                  Accounts shown by the Company on the Borrowing Base
                  Certificate, and (ii) the aggregate total of Purchased
                  Accounts Receivable shown on the summary agings prepared and
                  submitted as of even date by the Escalade Domestic
                  Subsidiaries. Stated alternatively, to the extent that an
                  otherwise Eligible Account is subject to any claimed set-off,
                  offset, credit or other reduction right held by the account
                  receivable debtor, then for purposes of determining the
                  Borrowing Base the amount of such Eligible Account shall be
                  reduced by the sum of all such claimed offsets, credits and
                  reductions to the extent not covered by the Escalade Domestic
                  Subsidiary, or Subsidiaries, that sold the Eligible Accounts
                  to the Company.

                  "BORROWING BASE CERTIFICATE" means a certificate (in form and
                  substance substantially the same as EXHIBIT "B" attached to
                  the Third Amendment) which is required to be delivered to the
                  Bank in accordance with Section 5.01(c)(6) of this Agreement.

                  "MAXIMUM AVAILABILITY" means as of the date any determination
                  thereof is to be made, the lesser of: (i) the Borrowing Base
                  as of such date, and (ii) the following amounts during the
                  respective time periods described:

                                       2
<PAGE>

<TABLE>
<CAPTION>

                 <S>              <C>
                 $15,000,000.00   Third Amendment Effective Date through July 14, 2002
                 $20,000,000.00   July 15, 2002 through August 31, 2002
                 $30,000,000.00   September 1, 2002 through December 31 , 2002
                 $20,000,000.00   January 1, 2003 through January 31, 2003
                 $10,000,000.00   February 1, 2003 through May 31, 2003
                 $20,000,000.00   June 1, 2003 through Scheduled Maturity Date

</TABLE>

                  "SCHEDULED MATURITY DATE" means July 15, 2003 and any
                  subsequent date to which the Commitment may be extended by
                  Bank pursuant to the terms of Section 2.01(d).

                  (b) NEW DEFINITIONS. Section 1.02 of the Existing Agreement is
hereby amended, effective as of the Third Amendment Effective Date, by adding
thereto in appropriate alphabetical sequence the following new definitions:

                  The term "COMMITMENT" has the meaning ascribed to such term in
                  Section 2.01(a) of this Agreement.

                  The term "PARTIES" means the Company and the Bank.

                  The term "THIRD AMENDMENT" means the Third Amendment to Credit
                  Agreement, dated as of the Third Amendment Effective Date,
                  executed by and between the Parties.

                  The term "THIRD AMENDMENT EFFECTIVE DATE" is used as defined
                  in the Preamble of the Third Amendment.

                  The term "UNUSED COMMITMENT FEE PERCENTAGE" means twenty-five
                  (25) B.P. PER ANNUM.

                  The term "UNUSED LOAN COMMITMENT" has the meaning ascribed to
                  such term in Section 2.01(h) of this Agreement.

                  (c) PARTIAL AMENDMENT OF SECTION 2.01(a). Section 2.01(a) of
the Existing Agreement is amended in part as of the Third Amendment Effective
Date by adding to the end of the first sentence thereof immediately before the
period the additional phrase . . . "(the "Commitment")."

                  (d) PARTIAL AMENDMENT OF SECTION 2.01(b). Section 2.01(b) of
the Existing Agreement is amended in part as the Third Amendment Effective Date
by amending and restating the first sentence thereof to read as follows:

                  "(b) METHOD OF BORROWING. The Obligation of the Company to
                  repay the Loan shall be evidenced by a promissory note (the
                  "NOTE") of the Company (in form and substance substantially
                  the same as EXHIBIT "I" attached to the Third Amendment)."

                                       3
<PAGE>

                  (e) PARTIAL AMENDMENT OF SECTION 2.01. Section 2.01 of the
Existing Agreement is amended in part as of the Third Amendment Effective Date
by adding thereto a new Section 2.01(h) which reads as follows:

                  "(h) UNUSED COMMITMENT FEE. In addition to interest on the
                  Loan, the Company shall pay to the Bank an unused commitment
                  fee for each partial or full fiscal quarter during which
                  Advances under the Loan are available equal to the Unused
                  Commitment Fee Percentage in effect at the close of such
                  partial or full fiscal quarter times the daily average "Unused
                  Loan Commitment" (as defined in the following sentence) for
                  such partial or full fiscal quarter multiplied by a fraction,
                  the numerator of which shall be the number of calendar days in
                  such partial or full fiscal quarter and the denominator of
                  which is 360. As used herein, the term "UNUSED LOAN
                  COMMITMENT" means, as of the close of each calendar day for
                  which a determination thereof is to be made, the positive
                  difference, if any, which results from subtracting from the
                  authorized Maximum Availability under the Commitment the
                  outstanding principal balance of the Loan at the close of such
                  calendar day. Unused commitment fees for each fiscal quarter
                  shall be due and payable within ten (10) days following the
                  Bank's submission, following the close of such quarter, of a
                  statement of the amount due. Such fees may be debited by the
                  Bank when due to any demand deposit account of the Company
                  carried with the Bank without further authority, notice or
                  demand.

                  (f) PARTIAL AMENDMENT OF SECTION 5.01(c). Section 5.01(c) of
the Existing Agreement is amended in part as of the Third Amendment Effective
Date by amending and restating subsections (6), (7), (8) and (9) to read as
follows:

                           "(6) BORROWING BASE CERTIFICATE. A Borrowing Base
                  Certificate evidencing the Borrowing Base as of the close of
                  the last prior Banking Day, on the date of the initial
                  Advance. For each four (4) week period, the Company shall also
                  provide a Borrowing Base Certificate as of the last Banking
                  Day of such four (4) week period by the tenth (10th) Banking
                  Day of the next successive four (4) week period.

                           (7) AGINGS. Summary agings as to all Purchased
                  Accounts Receivable which are outstanding on the books and
                  records of the Company as of the last Banking Day of each four
                  (4) week period, which agings shall be provided to the Bank by
                  the tenth (10th) Banking Day of the next successive four (4)
                  week period.

                           (8) TOP TEN LIST. A list of the Company's ten (10)
                  largest account debtors, determined based upon the balance of
                  account receivable then owed, as of the last Banking Day of
                  each

                                       4
<PAGE>

                  four (4) week period, which list shall be provided to the Bank
                  by the tenth (10th) Banking Day of the next successive four
                  (4) week period.

                           (9) OTHER INFORMATION. From time to time all such
                  other information, data and documents concerning the Company
                 as the Bank may reasonably request."

                  (g) AMENDMENT OF SECTION 5.01(h)(i). Section 5.01(h)(i) of the
Existing Agreement is amended as of the Third Amendment Effective Date by
restating same to read as follows:

                           "(i) MINIMUM TANGIBLE CAPITAL BASE. The Company shall
                  at all times from and after the Third Amendment Effective Date
                  maintain a Tangible Capital Base of not less than Five Million
                  Dollars ($5,000,000) through and including the payment and
                  satisfaction in full of all Obligations and termination of
                  this Agreement."

                  3. REPRESENTATIONS AND WARRANTIES. Company represents and
warrants to Bank that:

                  (a) (i) The execution, delivery and performance of this
Amendment and all agreements and documents delivered pursuant hereto by Company
have been duly authorized by all necessary corporate action and do not and will
not violate any provision of any law, rule, regulation, order, judgment,
injunction or writ presently in effect applying to Company, or its articles of
incorporation, or result in a breach of or constitute a default under any
material agreement, lease or instrument to which Company is a party or by which
it or any of its properties may be bound or affected; (ii) no authorization,
consent, approval, license, exemption or filing of a registration with any court
or governmental authority, department, agency or instrumentality is or will be
necessary to the valid execution, delivery or performance by Company of this
Amendment and all agreements and documents delivered pursuant hereto; and (iii)
this Amendment and all agreements and documents delivered pursuant hereto by
Company are the legal, valid and binding obligations of Company, as a signatory
thereto, and are enforceable against Company in accordance with the terms
thereof.

                  (b) After giving effect to the amendments contained in this
Amendment, the representations and warranties contained in Article III of the
Agreement are true and correct on and as of the Third Amendment Effective Date
with the same force and effect as if made on and as of the Third Amendment
Effective Date, except that the representation in Section 3.01(d) of the
Agreement shall be deemed to refer to the Financial Statements of Company most
recently delivered to Bank prior to the Third Amendment Effective Date.

                  (c) No Event of Default has occurred and is continuing or will
exist under the Agreement as of the Third Amendment Effective Date.

                                       5
<PAGE>

                  4. CONDITIONS. The obligation of Bank to execute and to
perform this Amendment shall be subject to full satisfaction of the following
conditions precedent on or before the Third Amendment Effective Date:

                  (a) Copies, certified as of the Third Amendment Effective
Date, of such corporate documents of Company, as Bank may request evidencing
necessary corporate action by Company with respect to this Third Amendment.

                  (b) This Amendment and the Note dated as of the Third
Amendment Effective Date shall have been duly executed and delivered by Company
to Bank and this Amendment shall have been executed by Bank.

                  (c) Bank shall have received such additional agreements,
documents and certifications, fully executed by Company as may be reasonably
requested by Bank.

                  5. CONSENT TO DIVIDEND. Company has requested, and Bank hereby
agrees, that Company may at any time during the ninety (90) day period following
the Third Amendment Effective Date pay a one-time only dividend in an amount not
to exceed $7,000,000 to Escalade, notwithstanding the prohibition otherwise
contained in Section 5.02(a) of the Existing Agreement.

                  6. WAIVER OF DEFAULT. Bank hereby waives as of the Third
Amendment Effective Date each covenant violation committed by Company and
arising pursuant to the terms and provisions of Section 5.01(c)(7) of the
Existing Agreement from and after the Second Amendment Effective Date and
continuing through the Third Amendment Effective Date in respect of Company's
failed Obligation to provide summary agings of Purchased Accounts Receivable
with the frequency and timeliness as required by such Section 5.01(c)(7).

                  7. SUPPLEMENTAL DOCUMENTS AND FURTHER ASSURANCES. Company
shall at any time on or after the Third Amendment Effective Date, and upon the
request of Bank, execute and deliver, or cause to be executed and delivered,
such additional documents, agreements and instruments as may be reasonably
required by Bank or appropriate to give full force and effect to the intents and
purposes of this Amendment and the Agreement. Company's failure to comply with
the terms of this Section 7 within thirty (30) days after Bank's request shall
at Bank's sole discretion and election be deemed an Event of Default under
Section 7.01 of the Agreement.

                  8. BINDING ON SUCCESSORS AND ASSIGNS. All of the terms and
provisions of this Amendment shall be binding upon and inure to the benefit of
the Parties and each of their respective successors, assigns and legal
representatives.

                  9. GOVERNING LAW/ENTIRE AGREEMENT/SURVIVAL. This Amendment is
a contract made under, and shall be governed by and construed in accordance
with, the laws of the State of Indiana applicable to contracts made and to be
performed entirely within such state and without giving effect to the choice or
conflicts of laws, rules or principles of any foreign or domestic jurisdiction.
This Amendment constitutes and expresses the entire understanding between the
Parties with respect to the subject matter hereof, and supersedes all prior
agreements and understandings, commitments, inducements or conditions, whether
express or implied, oral or written. All covenants, agreements, undertakings,
representations and warranties made in this

                                       6
<PAGE>

Amendment shall survive the execution and delivery of this Amendment, and shall
not be affected by any investigation made by any Person. Except as expressly
provided otherwise in this Amendment, the Existing Agreement, as amended hereby,
remains in full force and effect in accordance with its terms and provisions.

                  IN WITNESS WHEREOF, the Parties have caused this Amendment to
be duly executed and delivered by their respective duly authorized signatories
as of the Third Amendment Effective Date.

INDIAN-MARTIN AG,                               BANK ONE, INDIANA,
a corporation organized and existing              NATIONAL ASSOCIATION
under the laws of Switzerland

By:   Lars Haussmann                              By:   Steven P. Clemens
   ------------------------                          ---------------------------
   Lars Haussmann (Director)                         Steven P. Clemens, First
                                                      Vice President

           ("Company")                                       ("Bank")

                                       7
<PAGE>

                           BORROWING BASE CERTIFICATE

                  INDIAN-MARTIN AG ("Borrower"), by its duly Authorized officer
and in accordance with the requirements of that certain Credit Agreement, dated
as of May 15, 2000, as amended, restated and/or supplemented from time to time
and at any time (the "Agreement'), between Borrower and BANK ONE, INDIANA,
NATIONAL ASSOCIATION ("Bank") hereby certifies to Bank that: (a) Borrower's
Borrowing Base is $ _______, as of _______, (the "Report Date"); and (b)
attached to this Borrowing Base Certificate is a calculation of Borrower's
Eligible Accounts and Pledged Cash as of the Report Date, together with
supporting information and data showing Borrower's determination of the
Borrowing Base. Terms which are defined in the Agreement shall have the same
meanings herein.

                  Date:                           , 200__.
                       ---------------------------

                                                  INDIAN-MARTIN AG

                                                  By:
                                                     ---------------------------
                                                     Lars Haussmann (Director)

                                  Exhibit "B"
<PAGE>

<TABLE>
<CAPTION>

                                            CALCULATION OF BORROWING BASE

<S>                                                            <C>                      <C>
Gross Accounts Receivable                                                               $                   (1)
                                                                                         ------------------

Less:    (a)   61 or more days Delinquent
                                                               -----------------
         (b)   Account Debtor Bankrupt
                                                               -----------------
         (c)   Account Not Invoiced
                                                               -----------------
         (d)   Unshipped Goods
                                                               -----------------
         (e)   Conditional Obligation
                                                               -----------------
         (f)   No Security Interest
                                                               -----------------
         (g)   Affiliate/Governmental A/R
                                                               -----------------
         (h)   Evidenced by Instrument
                                                               -----------------
         (i)   Charged-off Accounts
                                                               -----------------
         (j)   10% "Taint" Rule Accounts
                                                               -----------------
               (less amount included on line (a))
         (k)   Adjustment due to Escalade Domestic
               Subsidiaries' aggregate agings being less than
               Gross Receivables above (amount of difference)
                                                               -----------------

Subtotal of Exclusions from Eligible Accounts (a though k)                            - $                   (2)
                                                                                         ------------------

Eligible Accounts (Line 1, minus Line 2)                                                $                   (3)
                                                                                         ------------------

Eligible Accounts Component of Borrowing Base (Line 3 X 80%)                            $                   (4)
                                                                                         ------------------

Pledged Cash (Valued @ 100%)                                                            $                   (5)
                                                                                         ------------------

Other Account Exclusions from Borrowing Base
         (l)   Any claimed set-offs, offsets, credits
               or other reduction rights held by an
               account debtor respecting an Eligible
               Account
                                                               -----------------
         (m)   Excess >15% of aggregate Eligible
               Accounts of any account debtor (other
               than Sears Roebuck, Inc.)                       -----------------

                                                              SUBTOTAL                  $                   (6)
                                                                                         ------------------

Borrowing Base (Line 4, plus Line 5, minus Line 6)                                      $                   (7)
                                                                                         ------------------

Less:    Outstanding Loan Balance                                                     - $                   (8)
                                                                                         ------------------

Available Credit, or (repayment required)                                               $                   (9)
                                                                                         ------------------
         (Line 7 minus Line 8)

</TABLE>

<PAGE>

                                 REVOLVING NOTE

$30,000,000.00                                              Dated:  July 3, 2002
                                                             Due:  July 15, 2003

                  FOR VALUE RECEIVED, on or before July 15, 2003, INDIAN-MARTIN
AG, a corporation organized and existing under the laws of Switzerland
("COMPANY"), unconditionally promises to pay to the order of BANK ONE, INDIANA,
NATIONAL ASSOCIATION, a national banking association ("BANK"), at Bank One
Tower, Mail Code IN 1-0046, 111 Monument Circle, Indianapolis, IN 46277, or such
other place as Bank may designate by written notice to Company, the principal
sum of Thirty Million Dollars and 00/100 ($30,000,000.00), or so much of such
amount as may be disbursed by Bank as Advances made on the Loan under the terms
of the Credit Agreement (as hereinafter defined), together with interest thereon
at the rates and calculated as provided in the Credit Agreement. Interest
accruing on the principal balance of this Note outstanding from time to time
shall be due and payable by Company on such dates and in accordance with the
terms of the Credit Agreement. All amounts paid on this Note shall be applied in
accordance with the terms of the Credit Agreement.

                  This Note is the "Note" referred to in the Credit Agreement,
to which reference is made for the conditions and procedures under which
Advances, payments, readvances and repayments may be made prior to the maturity
of this Note, for the terms upon which Company may make prepayments from time to
time and at any time prior to the maturity of this Note and the terms of any
prepayment premiums, penalties and other charges which may be due and payable in
connection therewith, and for the terms and conditions upon which the maturity
of this Note may be accelerated and the unpaid balance of principal and accrued
interest thereon declared immediately due and payable.

                  If any installment of principal or interest due under the
terms of this Note prior to maturity is not paid in full within ten (10) days of
the date when due, then Bank at its option and without prior notice to Company,
may assess a late payment fee in an amount equal to the greater of Twenty Five
and 00/100 Dollars ($25.00) or Five Percent (5%) of the amount past due up to
the maximum of $1,500.00 per late charge. Each late payment fee assessed shall
be due and payable on the earlier of the next regularly scheduled interest
payment date or the maturity of this Note. Waiver by Bank of any late payment
fee assessed, or the failure of Bank in any instance to assess a late payment
fee shall not be construed as a waiver by Bank of its right to assess late
payment fees thereafter.

                  If any installment of interest due under the terms of this
Note falls due on a day which is not a Banking Day, the due date shall be
extended to the next succeeding Banking Day and interest will be payable at the
applicable rate for the period of such extension.

                  All amounts payable under this Note shall be payable without
relief from valuation and appraisement laws, and with all collection costs and
attorneys' fees.

                                  Exhibit "I"
<PAGE>

                  The holder of this Note, at its option, may make extensions of
time for payment of the indebtedness evidenced by this Note, or approve
reductions of the payments thereon, release any Collateral securing payment of
such indebtedness or accept a renewal Note or Notes therefor, all without notice
to Company or any endorser(s), and Company and all endorsers hereby severally
consent to any such extensions, reductions, releases and renewals, all without
notice, and agree that any such action shall not release or discharge any of
them from any liability hereunder. Company and endorser(s), jointly and
severally, waive demand, presentment for payment, protest, notice of protest and
notice of nonpayment or dishonor of this Note and each of them consents to all
extensions of the time of payment thereof.

                  As used in this Note, the term "Credit Agreement" means that
certain Credit Agreement, dated as of May 15, 2000, by and between Company and
Bank, as the same hereafter may be amended, modified and/or restated from time
to time and at any time. Terms which are defined in the Credit Agreement and
which are not otherwise defined in this Note shall have the same meanings in
this Note as are ascribed to them in the Credit Agreement. The principal amount
of this Note outstanding from time to time shall be determined by reference to
the books and records of Bank on which shall be recorded each Advance under the
Loan evidenced by this Note, and all payments by Company on account of such
Loan. Such books and records shall be deemed PRIMA FACIE to be correct as to
such matters, absent demonstrative or manifest error.

                  This Note is made under and will be governed in all cases by
the substantive laws of the State of Indiana without reference to the choice or
conflicts of laws rules or principles of any foreign or domestic jurisdiction.

                                INDIAN-MARTIN AG, a corporation organized
                                     and existing under the laws of Switzerland

                                By:
                                   ---------------------------------------------
                                   Lars Haussmann (Director)

                                       2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00041-of-00352.parquet"}]]