Document:

Second Loan Modification Agreement

 
Exhibit 10.25

 
SECOND LOAN MODIFICATION AGREEMENT

 
This Second Loan Modification Agreement is
entered into as of April 24, 2003, by and between Optio Software, Inc. (“Borrower”) and Silicon Valley Bank (“Bank”). 
 
1.    DESCRIPTION OF EXISTING INDEBTEDNESS:    Among other indebtedness which may be owing by Borrower to
Bank, Borrower is indebted to Bank pursuant to, among other documents, a Loan and Security Agreement, dated April 25, 2002, as amended by a First Loan Modification Agreement, dated September 12, 2002, as may be further amended from time to time,
(the “Loan Agreement”). The Loan Agreement provides for, among other things, a Committed Revolving Line in the amount of Five Million Dollars ($5,000,000). Defined terms used but not otherwise defined herein shall have the same meanings as
in the Loan Agreement. 
 
Hereinafter, all
indebtedness owing by Borrower to Bank shall be referred to as the “Indebtedness.” 
 
2.    DESCRIPTION OF COLLATERAL AND GUARANTIES.    Repayment of the Indebtedness is secured by the Collateral as described in the Loan Agreement.

 
Hereinafter, the above-described security
documents and guaranties, together with all other documents securing repayment of the Indebtedness shall be referred to as the “Security Documents”. Hereinafter, the Security Documents, together with all other documents evidencing or
securing the Indebtedness shall be referred to as the “Existing Loan Documents”. 
 
3.    DESCRIPTION OF CHANGE IN TERMS. 
 

	 	A.	 	Section 2.3(a) of the Loan Agreement, entitled “Interest Rate,” shall be amended to read as follows: 

 
“So long as Borrower’s Quick Ratio exceeds
2.00:1.00, Advances shall accrue interest on the outstanding principal balance at a per annum rate equal to the Prime Rate. From and after any month where Borrower’s Quick Ratio is less than 2.00:1.00 and continuing until such time as
Borrower’s Quick Ratio exceeds 2.00:1.00, Advances shall accrue interest on the outstanding principal balance at a per annum rate equal of .75 percentage points above the Prime Rate. After an Event of Default, Obligations accrue interest at 5
percent above the rate effective immediately before the Event of Default. The interest rate increases or decreases when the Prime Rate changes. Interest is computed on a 360 day year for the actual number of days elapsed.” 
 

	 	B.	 	Section 6.7(i) of the Loan Agreement, entitled “Quick Ratio,” shall be amended to read as follows: 

 
“A monthly (for intra-quarter months only) ratio of
Quick Assets to Current Liabilities minus Deferred Revenue of at least 1.25 to 1.00, and a quarterly ratio of Quick Assets to Current Liabilities minus Deferred Revenue of at least 1.40 to 1.00.” 
 

	 	C.	 	A Section 6.7(ii) on the agreement shall be deleted in its entirety and replaced with the following: 

 
“(ii) EBIDTA. A monthly EBIDTA of no less than
$1.00. 
 

	 	C.	 	The definitions of “Borrowing Base,” “Committed Revolving Line” and “Revolving Maturity Date” in Section 13.1 of the Loan Agreement
shall be amended, and a new definition of “EBIDTA” shall added to such Section, read as follows: 

 
“Borrowing Base” is 80% of Eligible Accounts as determined by Bank from Borrower’s most recent Borrowing Base
Certificate; provided, however, that, in either instance, Bank may lower the percentage of the Borrowing Base after performing an audit of Borrower’s Collateral that is not satisfactory to the Bank.” 
 
“Committed Revolving Line” is an Advance, or
Advances, of up to $4,000,000.” 
 
 

-1- 

 
“EBIDTA” is earnings before interest expense, taxes, depreciation and amortization expense, calculated in accordance with GAAP, for the previous three months, on a rolling basis.” 
 
“Revolving Maturity Date” is April 23, 2004.

 

	 	D.	 	Subsection (f) of the definition of “Eligible Accounts” in Section 13.1 of the Loan Agreement shall be amended to read as follows:

 
“(f) Accounts for which the
account debtor is a federal, state or local government entity or any department, agency, or instrumentality except for Accounts of the United States if the payee has assigned its payment rights to Bank and the assignment has been acknowledged under
the Assignment of Claims Act of 1940 (31 U.S.C. 3727)” 
 

	 	E.	 	Borrower’s Borrowing Base Certificate and Compliance Certificate shall be amended in the form of Exhibits A and B, respectively, hereto.

 
4.    CONSISTENT
CHANGES.    The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above. 
 
5.    PAYMENT OF LOAN AND DOCUMENTATION FEES.    Borrower shall pay Bank a Loan Fee of Twenty Thousand
Dollars ($20,000) and a Legal Documentation Fee in the amount of Six Hundred Fifty Dollars ($650.00), plus all out-of-pocket expenses. 
 
6.    NO DEFENSES OF BORROWER.    Borrower agrees that, as of the date hereof, it has no defenses against
the obligations to pay any amounts under the Indebtedness. 
 
7.    CONTINUING VALIDITY.    Borrower understands and agrees that in modifying the existing Indebtedness, Bank is relying upon Borrower’s representations, warranties, and
agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s agreement to
modifications to the existing Indebtedness pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Indebtedness. Nothing in this Loan Modification Agreement shall constitute a satisfaction
of the Indebtedness. It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker, endorser, or guarantor will be
released by virtue of this Loan Modification Agreement. The terms of this paragraph apply not only to this Loan Modification Agreement, but also to all subsequent loan modification agreements. 
 
8.    CONDITIONS.    The
effectiveness of this Loan Modification Agreement is conditioned upon the following: 
 

	 	A.	 	Bank’s receipt of this Second Loan Modification duly executed by the Borrower; and 

	 	B.	 	Bank’s receipt of payment of the Loan and Legal Documentation Fees. 

 

-2- 

 
This Loan Modification
Agreement is executed as of the date first written above. 
 

	 BORROWER:
  
 OPTIO SOFTWARE, INC.
	 	 	 	 BANK:
  
 SILICON VALLEY BANK

	
	 By:
	 	 /S/    C. WAYNE
CAPE

	 	 	 	 By:
	 	 /S/    STEVEN
DIPASQUALE

	 	 	 Name: C. Wayne Cape
 Title: President and CEO
	 	 	 	 	 	 Name: Steven DiPasquale
 Title: Vice President

 

-3- 

 
SILICON
VALLEY BANK 
 
PRO FORMA INVOICE FOR LOAN
CHARGES 
 

	 BORROWER:
	  	 OPTIO SOFTWARE, INC.
	  	 	 
	
	 LOAN OFFICER:
	  	 Steve DiPasquale
	  	 	 
	
	 DATE:
	  	 April 24, 2003
	  	 	 
	
	 	  	 Bank Fees:
	  	 	 
	 	  	 Loan Fee
	  	 $
	 20,000.00

	
	 	  	 Outside Counsel Fees:
	  	 	 
	 	  	 Documentation Fee
	  	 $
	 650.00

	
	 	  	 TOTAL FEE DUE
	  	 $
	 20,650.00

	 	  	 	  	
	

 
Please indicate the
method of payment: 
 
{    } A check for the total amount is attached. 
 
{    } Debit DDA #                         for the
total amount. 
 
{    }
Loan proceeds 
 

	
	
	    	

	 Borrower
	    	 (Date)

	
	
	    	

	 Silicon Valley Bank
 Account Officer’s Signature
	    	 (Date)

 
 
 

-4- 

 
EXHIBIT A

 
BORROWING BASE CERTIFICATE

 

Borrower:    Optio Software, Inc.                           
                                        
                                        
         Bank:    Silicon Valley Bank 
 
Commitment Amount:    $4,000,000 

 

	 ACCOUNTS RECEIVABLE
	  	 	 
	   1.    Accounts Receivable Book Value as of
                        
	  	 $
	  

	 	  	
	

	   2.    Additions (please explain on
reverse)
	  	 $
	  

	 	  	
	

	   3.    TOTAL ACCOUNTS RECEIVABLE
	  	 $
	  

	 	  	
	

	
	 ACCOUNTS RECEIVABLE DEDUCTIONS (without duplication)
	  	 	 
	   4.    Amounts over 90 days due (120 days for
McKesson)
	  	 $
	  

	 	  	
	

	   5.    Balance of 50% over 90 day accounts (120 days for
McKesson)
	  	 $
	  

	 	  	
	

	   6.    Credit balances over 90 days
	  	 $
	  

	 	  	
	

	   7.    Concentration Limits*
	  	 $
	  

	 	  	
	

	   8.    Foreign Accounts
	  	 $
	  

	 	  	
	

	   9.    Governmental Accounts (other than assigned under
31 U.S.C. 3727)
	  	 $
	  

	 	  	
	

	 10.    Contra Accounts
	  	 $
	  

	 	  	
	

	 11.    Promotion or Demo Accounts
	  	 $
	  

	 	  	
	

	 12.    Intercompany/Employee Accounts
	  	 $
	  

	 	  	
	

	 13.    Other (please explain on reverse)
	  	 $
	  

	 	  	
	

	 14.    TOTAL ACCOUNTS RECEIVABLE DEDUCTIONS
	  	 $
	  

	 	  	
	

	 15.    Eligible Accounts (#3 minus #14)
	  	 $
	  

	 	  	
	

	 16.    LOAN VALUE OF ACCOUNTS (80% #15)
	  	 $
	  

	 	  	
	

	
	 BALANCES
	  	 	 
	 17.    Maximum Loan Amount
	  	 $
	 4,000,000

	 	  	
	

	 18.    Total Funds Available [Lesser of #17 or #16]
	  	 $
	  

	 	  	
	

	 19.    Present balance owing on Line of Credit
	  	 $
	  

	 	  	
	

	 20.    RESERVE POSITION (#18 minus #19)
	  	 $
	  

	 	  	
	

 
The undersigned
represents and warrants that this is true, complete and correct in all material respects, and that the information in this Borrowing Base Certificate complies with the representations and warranties in the Loan and Security Agreement between the
undersigned and Silicon Valley Bank. 
 

	 	  	

	 COMMENTS:
	  	 BANK USE ONLY

	
	 	  	 Rec'd By:                   

	 Optio Software, Inc.
	  	 Auth. Signer

	 	  	 Date:                         

	
	 By:
                                        
                                        
    
	  	 Verified:                   

	         Authorized Signer
	  	 Auth. Signer

	 	  	 Date:                         

	 	  	

 

-5- 

 
EXHIBIT B

 
COMPLIANCE CERTIFICATE 
 

	TO:	 	SILICON VALLEY BANK 

 

	FROM:	 	OPTIO SOFTWARE, INC. 

 
The undersigned authorized officer of Optio Software, Inc. (“Borrower”) certifies that under the terms and conditions of the
Loan and Security Agreement between Borrower and Bank (the “Agreement”), (i) Borrower is in complete compliance for the period ending
                             with all required covenants except as noted below and (ii) all
representations and warranties in the Agreement, to the knowledge of Borrower, are true and correct in all material respects on this date. Attached are the required documents supporting the certification. The Officer certifies that these are
prepared in accordance with Generally Accepted Accounting Principles (GAAP) consistently applied from one period to the next except as explained in an accompanying letter or footnotes. The Officer acknowledges that no borrowings may be requested at
any time or date of determination that Borrower is not in compliance with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered. 
 
Please indicate compliance status by circling Yes/No under
“Complies” column. 
 

	 Reporting Covenant

	    	 Required

	    	 	  	 Complies

	 Monthly financial statements + CC
	    	 Monthly within 30 days (except FQE)
	  	 Yes
	  	 No

	 Quarterly + 10-Q + CC
	    	 FQE within 45 days (except FYE)
	  	 Yes
	  	 No

	 Annual (Audited) + 10-K + CC
	    	 FYE within 90 days
	  	 Yes
	  	 No

	 A/R Agings
	    	 Monthly within 30 days
	  	 Yes
	  	 No

	 A/R Audit
	    	 Initial and Annual
	  	 Yes
	  	 No

	 Borrowing Base Certificate
	    	 Monthly within 30 days
	  	 Yes
	  	 No

	
	 Financial Covenant

	    	 Required

	    	 Actual

	  	 Complies

	 Maintain:
	    	 	    	 	  	 	  	 
	     Monthly Minimum Quick Ratio
	    	 1.25:1.00
	    	                  :1.00
	  	 Yes
	  	 No

	     Quarterly Minimum Quick Ratio
	    	 1.40:1.00
	    	                  :1.00
	  	 Yes
	  	 No

	     Monthly Minimum EBIDTA:
	    	 $1.00
	    	 $
                      
	  	 Yes
	  	 No

 
Have there been updates
to Borrower’s intellectual property, if appropriate? Yes / No 
 

	 	  	

	 Comments Regarding Exceptions: See Attached.
	  	 BANK USE ONLY

	
	 Sincerely,
	  	 Received by:
                                        
                

	
	 Optio Software, Inc.
	  	 AUTHORIZED SIGNER        

	
	
	  	 Date:
                                        
                              

	 SIGNATURE
	  	 Verified:
                                        
                        

	
	
	  	 AUTHORIZED SIGNER        

	 TITLE
	  	 Date:
                                        
                              

	
	
	  	 Compliance Status:
                            Yes     No

	 DATEBusiness Consulting Agreement

 
Exhibit
10.27 
 
BUSINESS CONSULTING AGREEMENT

 
This Agreement is entered into between Optio Software,
Inc., a Georgia corporation with its principal place of business at 3015 Windward Plaza, Windward Fairways II, Alpharetta, GA 30005 hereinafter referred to as “Company”, and Steven Kaye, with his principal place of business at 171
Hightower Lake Trail, Ball Ground, GA 30107 hereinafter referred to as “Consultant”. 
 
1. SERVICES PERFORMED BY CONSULTANT. Consultant agrees to provide to Company the following services: 
 

	 	•	 	Planning and Strategy for Company 2004-2006 

 

	 	•	 	Market Assessment (Industries - Segments - Gap Analysis) 

 

	 	•	 	Recommendations for Value Proposition / Competitive Positioning / Analyst and Press Relations / Etc. 

 

	 	•	 	Analysis of all Marketing Deliverables including web site, collateral, presentations, multimedia, PR etc. 

 

	 	•	 	Recommendations for new Marketing Deliverables and execution as approved in accordance with the operating budget or as approved by Optio’s CEO.

 

	 	•	 	Work closely with executive staff and establish broad lines of internal communication as strategies are rolled out and programs are executed

 

	 	•	 	Potentially help organize “quality circles” and/or “customer advisory” panels to transition company into true “Market-Driven” status

 

	 	•	 	All work done with the goal of returning Optio to a leadership position in its selected markets. 

 

	 	•	 	Such other items as agreed to by the parties during the term of the agreement. 

 
2. FEES and COMMISSIONS. Consultant shall provide these services to Company for a three (3) month period
commencing March 15, 2003 and terminating June 15, 2003. Consultant will be compensated as follows: 
 

	 	•	 	One Thousand Dollars ($1,000.00) per day 

 

	 	•	 	Billings for any of the individual one month periods shall not exceed Ten Thousand Dollars ($10,000.00) without the express written authorization of the
Company’s CEO. 

 
3. INVOICES.
Consultant shall submit invoices for all services rendered bi-weekly (every two weeks) along with a status report as outlined by the Company. Company shall pay the amounts due within two (2) weeks of receipt by Company. 
 
4. EXPENSES. Company shall reimburse Consultant for all
reasonable travel and lodging expenses necessarily incurred by Consultant while away from Consultant’s regular place of business to perform services under this Agreement at Company’s direction. Consultant shall submit an itemized statement
of such expenses and receipts in a form acceptable to the Company. Company shall reimburse Consultant within two (2) weeks of receipt by Company. 

 
5. MATERIALS.
Company shall make available to Consultant, at Company’s expense, any materials, technology or documentation necessary in supporting the efforts of the Consultant. Additionally the Company shall provide the Consultant with suitable office space
at the Company’s headquarters location and a Company e-mail ID so that the Consultant can work effectively while onsite. 
 
6. TERM OF AGREEMENT. This Agreement will become effective on the March 15, 2003 and remain in effect until June 15, 2003. This Agreement
shall continue in full force and effect for the duration of Consultant’s work with the Company (the “Period of Work”) and shall terminate on the last day of the agreement as stipulated above unless extended as mutually agreed to by
both parties. 
 
7. TERMINATING THE AGREEMENT.

 
(a) Upon the termination of relationship
with the Company or promptly upon the Company’s request, Consultant shall surrender to the Company all equipment, tangible Proprietary Information, documents, books, notebooks, records, reports, notes, memoranda, drawings, sketches, models,
maps, contracts, lists, computer disks (and other computer-generated files and data), any other data and records of any kind, and copies thereof (collectively, “Company Records”), created on any medium and furnished to, obtained by, or
prepared by Consultant in the course of or incident to Consultant work, that are in the possession or under control of the Consultant. 
 
(b) Consultant representations, warranties, and obligations as to confidentiality contained in this Agreement shall survive the
termination of the Period of Work. 
 
(e) Upon
termination of the Period of Work and at the Company’s request, Consultant will execute a document acknowledging compliance with this Agreement in the form reasonably provided by the Company. 
 
8. CONSULTANT AN INDEPENDENT CONTRACTOR. Consultant is an
independent contractor, and neither Consultant nor Consultant’s personnel are, or shall be deemed, Company’s employees. Nothing contained in this Agreement shall create or imply an agency relationship, joint venture or partnership between
the parties. In its capacity as an independent contractor, Consultant agrees and represents, and Company agrees, as follows: 
 
(a) Company shall not provide insurance coverage of any kind for Consultant or Consultant’s personnel. Consultant will provide
Worker’s Compensation insurance for all personnel who are employees of Consultant but provided to Company hereunder, as well as such General Liability and Automobile Insurance coverage as it deems necessary. 
 
(b) Company shall not withhold from Consultant’s
compensation any amount that would normally be withheld from an employee’s pay. 
 
(c) Consultant is providing the services detailed hereinabove on a non-exclusive basis and is free to provide similar services to other organizations without any restrictions other than those
specifically set forth in this agreement. 
 
9.
CONFIDENTIALITY – This provision shall survive the termination of this agreement and remain in effect for a period of two (2) years thereafter. 
 
(a) Definitions “Proprietary Information” is all information and any idea whatever form,
tangible or intangible, pertaining in any manner to the business of the Company, or any of its Affiliates, or its employees, clients, consultants, or business associates, which was produced by 
 

	 Business Consulting Agreement
	  	 Page 2

any employee or consultant of the Company in the course of his or her work or consulting
relationship or otherwise produced or acquired by or on behalf of the Company. All Proprietary Information not generally known outside of the Company’s organization, and all Proprietary Information so known only through improper means, shall be
deemed “Confidential Information.” By example and without limiting the foregoing definition, Proprietary and Confidential Information shall include, but not be limited to: 
 
(1) formulas, research and development techniques, processes, trade secrets, computer programs, software,
electronic codes, mask works, inventions, innovations, patents, patent applications, discoveries, improvements, data, know-how, formats, test results, and research projects; 
 
(2) information about costs, profits, markets, sales, contracts and lists of customers, and distributors;

 
(3) business, marketing, and strategic plans;

 
(4) forecasts, unpublished financial
information, budgets, projections, and customer identities, characteristics and agreements; and 
 
(5) employee personnel files and compensation information. 
 
Confidential Information is to be broadly defined, and includes all information that has or could have commercial value or other utility
in the business in which the Company is engaged or contemplates engaging, and all information of which the unauthorized disclosure could be detrimental to the interests of the Company. Confidential and Proprietary Information will be clearly marked
as such by the Company. 
 
(b) Existence of
Confidential Information The Company owns and has developed and compiled, and will develop and compile, certain trade secrets, proprietary techniques and other Confidential Information which have great value to its business. This Confidential
Information includes not only information disclosed by the Company to Consultant, but also information developed or learned by Consultant during the course of Consultant’s work with the Company. 
 
(c) Protection of Confidential Information. Consultant
will not, directly or indirectly, use, make available, sell, disclose or otherwise communicate to any third party, other than in Consultant’s assigned duties and for the benefit of the Company, any of the Company’s Confidential
Information, either during or after Consultant works with the Company. In the event Consultant desires to publish the results of Consultant’s work with the Company through literature or speeches, Consultant will submit such literature or
speeches to the President of the Company at least 10 days before dissemination of such information for a determination of whether such disclosure may alter trade secret status, may be highly prejudicial to the interests of the Company, or may
constitute an invasion of its privacy. Consultant agrees not to publish, disclose or otherwise disseminate such information without prior written approval of the President of the Company. Consultant acknowledges that Consultant is aware that the
unauthorized disclosure of Confidential Information of the Company may be highly prejudicial to its interests, an invasion of privacy, and an improper disclosure of trade secrets. 
 
(d) Delivery of Confidential Information Upon request or when Consultant’s work with the Company
terminates, Consultant will immediately deliver to the Company all copies of any and all materials and writings received from, created for, or belonging to the Company including, but not limited to, those which relate to or contain Confidential
Information. 
 

	 Business Consulting Agreement
	  	 Page 3

 
(e)
Location and Reproduction Consultant shall maintain at Consultant’s work station and/or any other place under Consultant’s control only such Confidential Information as Consultant has a current “need to know.” Consultant
shall return to the appropriate person or location or otherwise properly dispose of Confidential Information once that need to know no longer exists. Consultant shall not make copies of or otherwise reproduce Confidential Information unless there is
a legitimate business need of the Company for reproduction. 
 
(f) Prior Actions and Knowledge Consultant represents and warrant that from the time of Consultant’s first contact with the Company Consultant held in strict confidence all Confidential Information and have not disclosed
any Confidential Information, directly or indirectly, to anyone outside the Company, or used, copied, published, or summarized any Confidential information, except to the extent otherwise permitted in this Agreement. 
 
(g) Third-Party Information Consultant acknowledges
that the Company has received and in the future will receive from third parties their confidential information subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited
purposes. Consultant agrees that, during the Period of Work and thereafter, Consultant will hold all such confidential information in the strictest confidence and not to disclose or use it, except as necessary to perform Consultant’s
obligations hereunder and as is consistent with the Company’s agreement with such third parties. 
 
(h) Third Parties Consultant represents that to the best of his knowledge, Consultant’s work with the Company does not and
will not breach any agreements with or duties to a former employer or any other third party. Consultant will not disclose to the Company or use on its behalf any confidential information belonging to others and Consultant will not bring onto the
premises of the Company any confidential information belonging to any such party unless consented to in writing by such party. 
 
10. NO USE OF NAME Consultant shall not at any time use the Company’s name or any of the Company trademark(s) or trade name(s)
in any advertising or publicity without the prior written consent of the Company. However, Consultant may list Company’s name and the general scope of work performed for the Company on his resume and work history and disclose same to other
third parties. 
 
11. REPRESENTATIONS and
WARRANTIES Consultant represents and warrants that to the best of his knowledge (i) that Consultant has no obligations, legal or otherwise, inconsistent with the terms of this Agreement or with Consultant’s undertaking a relationship
with the Company; (ii) that the performance of the services called for by this Agreement do not and will not violate any applicable law, rule or regulation or any proprietary or other right of any third party; and (iii) that Consultant has not
entered into or will enter into any agreement (whether oral or written) in conflict with this Agreement. 
 
(a) Consultant warrants that all services performed under this Agreement shall be performed in a manner consistent with generally
prevailing professional or industry standards. Company must report any deficiencies in Consultant’s services to Consultant in writing within ten (10) days of performance to receive warranty remedies. 
 
Company’s exclusive remedy for any breach of the above
warranty shall be the re-performance of Consultant’s services. If Consultant is unable to re-perform the services, Company shall be entitled to recover the fees paid to Consultant for the deficient services. 
 
THIS WARRANTY IS EXCLUSIVE AND IN LIEU OF ALL OTHER WARRANTIES, WHETHER
EXPRESSED OR IMPLIED, INCLUDING ANY IMPLIED WARRANTIES OF MERCHANTABILITY OR 
 

	 Business Consulting Agreement
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FITNESS FOR A PARTICULAR PURPOSE AND ANY ORAL OR WRITTEN REPRESENTATIONS, PROPOSALS OR STATEMENTS MADE
PRIOR TO THIS AGREEMENT. 
 
12. INJUNCTIVE
RELIEF Both parties acknowledge that the other’s failure to carry out any obligation under this Agreement, or a breach by either party of any provision herein, may constitute immediate and irreparable damage to the other, which cannot
be fully and adequately compensated in money damages and which may warrant preliminary and other injunctive relief, an order for specific performance, and other equitable relief. The parties further agree that no bond or other security shall be
required in obtaining such equitable relief and both parties hereby consent to the issuance of such injunction and to the ordering of specific performance. Both parties also understand that other action may be taken and remedies enforced.

 
13. MODIFICATION No modification of this
Agreement shall be valid unless made in writing and signed by both parties. 
 
14. BINDING EFFECT This Agreement shall be binding upon Consultant, Consultant’s heirs, executors, assigns and administrators and is for the benefit of the Company and its successors and assigns.

 
15. GOVERNING LAW This Agreement shall be
construed in accordance with, and all actions arising under or in connection therewith shall be governed by, the internal laws of the State of Georgia (without reference to conflict of law principles). 
 
16. INTEGRATION This Agreement sets forth the
parties’ mutual rights and obligations with respect to proprietary information, prohibited competition, and intellectual property. It is intended to be the final, complete, and exclusive statement of the terms of the parties’ agreements
regarding these subjects. This Agreement supersedes all other prior and contemporaneous agreements and statements on these subjects, and it may not be contradicted by evidence of any prior or contemporaneous statements or agreements. To the extent
that the practices, policies, or procedures of the Company, now or in the future, apply to Consultant and are inconsistent with the terms of this Agreement, the provisions of this Agreement shall control unless changed in writing by the Company.

 
17. ATTORNEYS’ FEES Should either
Consultant or the Company, or any heir, personal representative, successor or permitted assign of either party, resort to legal proceedings to enforce this Agreement, the prevailing party (as defined in Florida statutory law) in such legal
proceeding shall be awarded, in addition to such other relief as may be granted, attorneys’ fees and costs incurred in connection with such proceeding. 
 
18. ASSIGNMENT This Agreement may not be assigned without the Company’s prior written consent. 
 
19. COMPLIANCE with LAW Consultant agrees to abide by all
federal, state, and local laws, ordinances and regulations. 
 
20. INDEPENDENT CONTRACTOR ACKNOWLEDGMENT Consultant acknowledges that Consultant has had the opportunity to consult legal counsel in regard to this Agreement, that Consultant has read and understand this
Agreement, that Consultant is fully aware of its legal effect, and that Consultant has entered into it freely and voluntarily and based on Consultant’s own judgment and not on any representations or promises other than those contained in this
Agreement. 
 
21. NON-SOLICITATION.
During the term of this Agreement and for the twelve (12) month period following its termination, neither party shall directly or indirectly solicit, offer employment, employ or retain as a consultant any employee of the other without the consent of
such other party. 
 

	 Business Consulting Agreement
	  	 Page 5

 
22. LIMITATION ON
CONSULTANT’S LIABILITY TO COMPANY. 
 

	 	(a)	 	In no event shall consultant be liable to Company for lost profits of Company, or special, incidental or consequential damages (even if Consultant has been advised
of the possibility of such damages). 

 

	 	(b)	 	Consultant’s total liability under this Agreement for damages, cost and expenses, regardless of cause, shall not exceed the total amount of fees paid to
Consultant by Company under this Agreement. 

 

	 	(c)	 	Company shall indemnify Consultant against all claims, liabilities and costs, including reasonable attorney fees, or defending any third party claim or suit, other
than for infringement of intellectual property rights, arising out of or in connection with Company’s performance under this Agreement. Consultant shall promptly notify Company in writing of such claim or suit and Company shall have the right
to fully control the defense and any settlement of the claim or suit. 

 
23. FORCE MAJEURE. Consultant shall not be liable for and is excused from any failure to deliver or perform or delay in delivery or performance, due to causes beyond its reasonable control or due to failure of
Company to provide sufficient information, resources, cooperation or personnel to support the project. The period of performance shall be extended to such extent as may be appropriate after the cause of the delay or non-performance has been removed.

 
24. ACCEPTANCE. Work submitted by Consultant to
Company for approval will be deemed accepted unless specifically rejected in writing within ten(10) working days. Any such rejection must identify the basis for this action, including documentation for any claims of non-conformance. 
 
25. DISPUTE RESOLUTION. If a dispute arises under this
Agreement, the parties agree to first try to resolve the dispute with the help of a mutually agreed upon mediator in the following location: Georgia. Any costs and fees other than attorney fees associated with the mediation shall be shared equally
by the parties. 
 
If it proves impossible to arrive at a mutually
satisfactory solution through mediation, the parties agree to submit the dispute to binding arbitration in the following location: Georgia. The parties agree that the binding arbitration will be conducted under the rules of the American Arbitration
Association. Judgment upon the award rendered by the arbitrator may be entered in any court with jurisdiction to do so. 
 
26. GENERAL PROVISIONS. 
 
(a) Notices: All notices and other communications given in connection with this Agreement shall be in writing and shall be deemed given as follows:

 
(1) When delivered personally to the
recipient’s address as appearing in the introductory paragraph in this Agreement. 
 
(2) Five days after being deposited in the United States mail, postage prepaid to the recipient’s address as appearing in the introductory paragraph to this Agreement, or 
 
(3) When sent by fax or telex to the last fax or telex number
of the recipient known to the party giving notice. Notice is effective upon receipt provided that a duplicate copy of the notice is promptly given by first-class or certified mail, or the recipient delivers a written confirmation of receipt.

 

	 Business Consulting Agreement
	  	 Page 6

 
Any party may change its
address appearing in the introductory paragraph to this Agreement by giving notice of the change in accordance with this paragraph. 
 
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of the date set forth below. CAUTION: THIS AGREEMENT CREATES IMPORTANT OBLIGATIONS OF
TRUST AND AFFECTS THE INDEPENDENT CONTRACTOR’S RIGHTS TO INVENTIONS AND OTHER INTELLECTUAL PROPERTY THE INDEPENDENT CONTRACTOR MAY DEVELOP DURING HIS OR HER WORK. 
 

	 Company:
	 	 	 	 Consultant: Steven Kaye

	
	 By:
	 	 /s/    WAYNE
CAPE      

	 	 	 	 By:
	 	 /s/    STEVE
KAYE      

	 	 	 Wayne Cape – CEO
	 	 	 	 	 	 Steve Kaye

	 Date: March 17, 2003
	 	 	 	 Date: March 17, 2003

 

	 Business Consulting Agreement
	  	 Page 7

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