Document:

ex10-1.htm

 

 

	 	  

 

 

Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

 

JOINT VENTURE AGREEMENT

This Joint Venture Agreement (the “Agreement”), is made and entered into to be effective for all purposes as of August 29, 2011, by and among Antero Payment Solutions, Inc., a Nevada corporation, (“Antero”), with its principal place of business located at 24328 Vermont Ave. #300 Harbor City, CA 90710, and Veritec Financial Systems, Inc., a Delaware corporation (“Veritec”), with its principal place of business at 2445 Winnetka Ave. N., Golden Valley, MN, 55427. Each of the Parties to this Agreement is individually referred to herein as a “Party” and collectively as the “Parties.”

WITNESSETH:

WHEREAS, Antero is in the business of, among other things, developing, promoting, licensing and supporting its Antero SVS Third Party Processing Platform designed for companies selling and/or licensing products and services in the credit, debit, prepaid, and/or gift card markets (the “Antero SVS”);

WHEREAS, Veritec is in the business of, among other things, developing, promoting, licensing and supporting its VTFS Account Management Platform (the “VTFS Platform”), MTCTM (mobile toggle debit card), blinx On-OffTM and other debit based products;

WHEREAS, the Parties desire to enter into a business relationship (the “Business Relationship”) whereby the Parties will utilize the other’s technology to further their own businesses, by entering into that certain Antero SVS Software License Agreement (the “License Agreement”), and that certain ISO/ Processor Agreement (the “ISO/Processor Agreement”) concurrently herewith;

 

WHEREAS, the foregoing recitals are true and correct and are incorporated in the Agreement by this reference.

 

NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants contained in this Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

AGREEMENT

 

	
  

	
1.

	
Reciprocal Agreements.  In furtherance of the Business Relationship, Antero will provide Veritec with a non-transferable, perpetual, exclusive right to use the Antero SVS and any supporting documentation as further set forth in the License Agreement, which is attached hereto as Exhibit A, in exchange Veritec will engage Antero under its Independent Sales Organization (“ISO”) and Processor Agreement with First California Bank (“FCB”) and Visa, as a strategic partner of Veritec as further set forth in the ISO/Processor Agreement, which is attached hereto as Exhibit B (collectively the License Agreement and the ISO/ Processor Agreement shall be referred to herein as the “Reciprocal Agreements”). Except for the payment of the Fee set forth herein, Veritec and Antero understand and agree to work out a fair and comparable arrangement with regards to the cost difference associated with the consideration provided by each of the Reciprocal Agreements; however, neither Party wishes to pay such cost difference upfront. Notwithstanding the foregoing, Antero currently has in place, and the same shall be excluded from the exclusivity provided hereunder, the following programs InforServ/Secopay, Refpay, GTP, Antero and FIS.

 

  

  

  

		  

 

 

Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

 

 

	
  

	
2.

	
Consideration. Antero shall pay Veritec a one-time, non-refundable Fee (the “Fee”) of twenty-five thousand dollars ($25,000), upon execution of this Agreement, in exchange for Veritec engaging Antero under the ISO/Processor Agreement as an affiliate (“Affiliate”).

 

	
  

	
3.

	
Term. This Agreement shall continue for a term of five (5) years which shall be automatically renewed for additional five (5) year terms, unless earlier terminated by the written consent of both Parties.

 

	
  

	
4.

	
Mediation or Arbitration of Disputes. If a dispute arises out of or relates to this Agreement, or the breach thereof, and if the dispute cannot be settled through negotiation, the Parties agree first to try in good faith to settle the dispute by mediation administered by the American Arbitration Association under its Commercial Mediation Procedures before resorting to arbitration, litigation, or some other dispute resolution procedure.

 

	
  

	
5.

	
Obligations of Antero. Antero represents and warrants that in furtherance of the Business Relationship, Antero will:

	
a)  

	
Identify those systems and functionality, including but not limited to Consumer, Administrative, Ordering, Loading, Fraud, Security and Reporting Interfaces and Systems as necessary to support multiple Veritec and Antero programs, which are currently working and available as distinguished from those components which require additional development time and resources;

	
b)  

	
Provide integration services to connect the Antero SVS with Veritec’s existing platforms and other such platforms as may be reasonably necessary;

	
c)  

	
Provide ongoing maintenance and updates of the Antero SVS as necessary and required to support Veritec’s use of the Antero SVS;

	
d)  

	
Offer additional development, consulting, and support as may be reasonably necessary, which shall be invoiced ad-hoc by Antero (upon quote and approval by Antero);

	
e)  

	
Review, evaluate, modify and otherwise possibly reconstitute programming, which has already been completed by Antero, as needed to best serve Veritec’s needs;

	
f)  

	
Provide the Antero SVS for multiplicity with functionality along with advanced applications and networks;

	
g)  

	
Manage all marketing aspects of Card of America exclusively;

	
h)  

	
Execute written documentation on all new business opportunities, which shall be directed to the issuing bank in conjunction with Veritec’s direction; and.

	
i)  

	
Antero will License the Antero SVS per the Antero SVS Software License Agreement.

	
  

	
6.

	
Obligations of Veritec. Veritec represents and warrants that in furtherance of the Business Relationship, Veritec will:

 

	
a)  

	
Engage Antero under the ISO/Processor Agreement  ;

	
b)  

	
Register a Payroll Plus card program (BIN) with VISA and FCB for Antero under the program name of Card of America (“Card of America Program”);

	
c)  

	
Establish Antero as an ISO with FCB;

	
d)  

	
Take responsibility for supporting its VTFS Platform, which shall be used in concert with Antero SVS and Card of America Programs;

	
e)  

	
Host and manage the Antero SVS at Veritec's existing data center;

	
f)  

	
Comply with all PCI level 1 Certifications as required by FCB, and supply a report on compliance (“ROC”) prior to the release of the Antero SVS;

	
g)  

	
Provide a “preferred rate” and/or competitive rate of its processing services to Antero; and.

	
h)  

	
Manage and process all of the card programs as well as provide customer services to cardholders.

  

  

  

		  

 

 

Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

 

7.     Representations, Warranties and Covenants of both Parties.

Each Party represents and warrants to the other Party hereto that, to the best of its knowledge:

	
a)  

	
it has full power and authority to carry on its business and to enter into this Agreement and any agreement or instrument referred to or contemplated by this Agreement;

	
b)  

	
neither the execution and delivery of this Agreement nor any of the Agreements referred to herein or contemplated hereby, nor the consummation of the transactions hereby contemplated conflict with, result in the breach of or accelerate the performance required by, any agreement to which it is a party, excepting only variances required under finance documents; and,

	
c)  

	
the execution and delivery of this Agreement and the agreements contemplated hereby will not violate or result in the breach of the laws of any jurisdiction applicable or pertaining thereto or of its constating documents.

Each Party covenants, warrants and agrees with the other Party:

	
a)  

	
to perform or cause to be performed its  obligations  and  commitments under this Agreement and the Exhibits hereto;

	
b)  

	
not to engage either alone or in association with others in any activity in respect of the Business Relationship between the parties, except as provided or authorized by this Agreement;

	
c)  

	
to be just and faithful in all its activities and dealings with the other Party;

	
d)  

	
that any information which the Parties may provide to each other or any permissible person or company will be accurate and complete in all material respects and not misleading, and will not omit to state any fact or information which would be material to the Parties or such permissible person or company;

	
e)  

	
that the representations, warranties and covenants set forth herein are conditions on which the Parties have relied in entering into this Agreement and each Party shall indemnify and save the other Party harmless from all loss, damage, costs, actions and suits arising out of or in connection with any breach of any representation, warranty, covenant, agreement or condition made by them and contained in this Agreement.

	
  

	
8.

	
Purpose and Creation of the Joint Venture. The Parties form this joint venture to form the Business Relationship with each other, whereby the Parties will utilize each other’s technologies, licenses, and solutions pursuant to the terms and conditions of the Reciprocal Agreements, in order to provide front-end payment solutions to the Parties’ customers.

	
  

	
10.

	
Right of First Refusal. In the event that Veritec receives or solicits any offer (the "Offer") from any person or entity relating to the sale of disposition of the company, then the Offer shall forthwith be sent to Antero. Upon receipt of notice of the Offer, Antero shall have twenty (20) days from the date of receipt within which to give Veritec notice that it desires and agrees to so purchase Veritec ("Intent to Buy") on the same terms and conditions as are contained in the Offer.

  

  

  

		  

 

 

Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

 

	
11.

	
Waiver. If any provision of this Agreement shall fail to be strictly enforced, or any Party shall consent to any action by any other Party, or shall waive any  provisions as set out  herein, such action by such Party shall not be construed as a general waiver  thereof but only a waiver for the specific  time that such waiver or failure to enforce takes place and shall at no time be construed as a consent, waiver, or excuse for any failure to perform and act in accordance  with this Agreement at any past or future occasion.

	
12.

	
Indemnity. The Parties shall each indemnify each other, and the other Parties’ directors, officers, partners, employees and ISOs (each such Person being called an “Indemnitee”) against, and to hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses, including reasonable counsel fees, charges and disbursements, incurred by or asserted against any Indemnitee arising out of in any way connected with, or as a result of (i) the execution or delivery of this Agreement or any instrument, certificate or document contemplated hereby, the performance by the Parties of their respective obligations hereunder or the consummation of the transactions contemplated hereby, and (ii) any claim, litigation, investigation or proceeding relating to any of the foregoing, whether or not any Indemnitee is a party thereto.

	
13.

	
Further Assurances. Each of the Parties hereto, shall from time to time and at all times, do all such further acts and execute and deliver all further deeds and documents as shall be  reasonably  required in order to fully  perform and carry out the terms of this Agreement. This section shall not be construed as imposing any obligation on any Party to provide guarantees.

	
14.

	
Use of Name. No Party shall,  except with written permission or when required by this Agreement,  or by any law, by-law,  ordinance, rule, order or regulation, use, suffer or permit to be used, directly or indirectly, the name of any other Party for any purpose related to this Agreement or the Reciprocal Agreements.

	
15.

	
Entire Agreement. This Agreement and the Reciprocal Agreements incorporated herein by reference embody the entire agreement and understanding among the Parties hereto and supersede all prior  agreements and undertakings, whether oral or written, relative to the subject matter hereof.

	
16.

	
Amendment. This Agreement may not be changed orally but only by an agreement in writing, executed by each of the Parties.

	
17.

	
Enurement. This Agreement shall enure to the benefit of and be binding upon the Parties hereto and their respective successors and permitted assigns.

	
18.

	

Governing Law. This Agreement and the rights and remedies of each Party arising out of or relating to this Agreement (including, without limitation, equitable remedies) shall (with the exception of any applicable federal laws) be solely governed by, interpreted under, and construed and enforced in accordance with the laws (without regard to the conflicts of law principles) of the State of Nevada, as if this Agreement were made, and as if its obligations are to be performed, wholly within the State of Nevada.

	
19.

	
Severability. If any one or more of the provisions contained herein should be invalid, illegal or unenforceable in any respect in any jurisdiction, the validity, legality and enforceability of such provision shall not in any way be affected or impaired thereby in any other jurisdiction, and the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

	
20.

	
Headings. The division of this Agreement into articles and sections and the insertion of headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.

 

 

  

  

  

		  

 

 

Antero Payment Solutions

24328 Vermont Ave #300

Harbor City, Ca. 90710

Office (310) 997-2482

Toll free (800) 499-0072

Fax (310) 954-9243

www.anteropaymentsolutions.com

 

 

 

 

IN WITNESS WHEREOF the Parties hereto have executed this Agreement as of the day, month and year first written above.

 

	Antero Payment Solutions, Inc.	 
	
 

 

	 
	 By:	Michael j Sinnwell Jr	 
	 Its:	
President

	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	
Veritec Financial Systems, Inc.

	 
	
 

 

	 
	 By:	Van Thuy Tran	 
	 Its:	CEOexhibit101.htm

AMENDMENT NO. 2

 

TO

 

REVOLVING CREDIT AND SECURITY AGREEMENT

 

THIS AMENDMENT NO. 2 (this “Amendment”) is entered into as of August 24, 2011, by and among PRESSTEK, INC., a corporation organized under the laws of the State of Delaware (“Borrower”), the financial institutions set forth on the signature pages hereto (each a “Lender” and collectively, “Lenders”) and PNC BANK, NATIONAL ASSOCIATION as agent for Lenders (in such capacity, “Agent”).

 

BACKGROUND

 

Borrower, Agent and Lenders are parties to a Revolving Credit and Security Agreement dated as of March 5, 2010 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which Agent and Lenders provide Borrower with certain financial accommodations.

 

Borrower has requested that Agent and Lenders make certain amendments to the Loan Agreement, and Agent and Lenders are willing to do so on the terms and conditions hereafter set forth.

 

NOW, THEREFORE, in consideration of any loan or advance or grant of credit heretofore or hereafter made to or for the account of Borrower by Agent and Lenders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1. Definitions.  All capitalized terms not otherwise defined herein shall have the meanings given to them in the Loan Agreement.

 

2. Amendment to Loan Agreement.  Subject to satisfaction of the conditions precedent set forth in Section 3 below, the Loan Agreement is hereby amended as follows:

 

(a) Section 1.2 is hereby amended by amending the following definitions in their entirety to provide as follows:

 

“Availability Block” shall mean an amount equal to (x) (i) for the period commencing on the Closing Date and ending on the date on which Borrowing Agent shall have delivered to Agent a Compliance Certificate showing compliance with the requirements imposed by Section 6.5 commencing with the fiscal quarter ending on January 1, 2011, $3,500,000, and (ii) for the period commencing on the earlier of (A) January 31, 2012 and (B) the date on which Borrower completes a Sale Leaseback Transaction, and ending on the last day of the Term, $2,000,000; provided, however, that if an Event of Default shall have occurred and is continuing, the amount of the Availability Block shall be $3,500,000, plus (y) upon the occurrence of the events described in clauses (i) - (iii) of Section 4.21(b) and Agent’s release of any Mortgage it has on the Real Property located in Hudson, New Hampshire, an amount equal to the lesser of (i) 35% of the net cash proceeds of the Sale Leaseback Transaction, and (ii) $5,000,000.”

 

“EBITDA” shall mean for any period, without duplication, the sum of (i) Earnings Before Interest and Taxes for such period plus (ii) depreciation expenses for such period, plus (iii) amortization expenses for such period, plus (iv) non-cash expenses of the Borrowers on a Consolidated Basis for such period, including non-cash stock compensation expenses and non-cash expenses incurred in connection with the Sale-Leaseback Transaction, plus (v) cash expenses incurred by Borrowers in connection with the Sale Leaseback Transaction in an aggregate amount not to exceed a one-time charge of $100,000, plus (vi) Restructuring Charges, plus (vii) solely for the purpose of calculating EBITDA through the fiscal quarter ending on or about June 30, 2012, expenses incurred by Borrowers through the fiscal quarter ending on or about June 30, 2012 in connection with the marketing of the 75DI printing press in an aggregate amount not to exceed $1,500,000 .”

 

“Restructuring Charges” shall mean, without duplication, (i) non-cash amounts included in restructuring and other non-cash charges, plus (ii) any separately identified non-cash charges for asset impairments or write-offs, plus (iii) cash out of pocket expenses incurred by Borrowers in connection with the closing of the Transactions, the LI Merger, lease termination payments and employee severance arrangements in an aggregate amount not to exceed $200,000 in any fiscal year, plus (iv) restructuring charges accrued during the fiscal year ending on or about December 31, 2011 in an aggregate amount not to exceed $1,400,000 (such expenses to be included in the definition of Restructuring Charges for the purpose of (x) calculating EBITDA during the fiscal year ending on or about December 31, 2011 and (y) calculating the Fixed Charge Coverage Ratio for all periods that include such expenses), plus (v) any such additional amounts as are acceptable to Agent in its sole discretion.”

 

(b) Section 1.2 is hereby amended by adding the following defined terms in their appropriate alphabetical order:

 

“Amendment No. 2” shall mean that certain Amendment No. 2 to Revolving Credit and Security Agreement dated as of August 24, 2011, among Borrowers, Lenders and Agent.”

 

“Amendment No. 2 Effective Date” shall mean the date on which each of the conditions set forth in Section 3 of Amendment No. 2 have been satisfied.”

 

(c) Article III is hereby amended by inserting a new Section 3.12 immediately following Section 3.11 thereof to provide as follows:

 

“3.12.           Sale Leaseback Fee.  Borrowers shall pay to the Agent for the ratable benefit of the Lenders a fee of $100,000 if the Borrowers fail to complete a Sale Leaseback Transaction on or before November 30, 2011.”

 

(d) Section 13.1 is hereby amended in its entirety to provide as follows:

 

“Term.  This Agreement, which shall inure to the benefit of and shall be binding upon the respective successors and permitted assigns of each Borrower, Agent and each Lender, shall become effective on the date hereof and shall continue in full force and effect until March 5, 2013 (the “Term”) unless sooner terminated as herein provided.  Borrowers may terminate this Agreement at any time upon thirty (30) days’ prior written notice upon payment in full of the Obligations.  In the event the Obligations are prepaid in full prior to the last day of the Term, Borrowers shall pay to Agent for the benefit of Lenders an early termination fee in an amount equal to $750,000.”

 

3. Conditions of Effectiveness.  This Amendment shall become effective upon Agent receiving (i) four (4) originals (or such lesser number of originals as Agent may require) of this Amendment executed by Borrower and Lenders and consented and agreed to by Guarantors and (ii) an amendment fee of $25,000, which shall be fully earned and payable on the Amendment No. 2 Effective Date, and which may be charged by Agent to Borrowers’ account.

 

4. Representations and Warranties.  Borrower hereby represents and warrants as follows:

 

(a) This Amendment and the Loan Agreement, as amended hereby, constitute legal, valid and binding obligations of Borrower and are enforceable against Borrower in accordance with their respective terms.

 

(b) Upon the effectiveness of this Amendment, Borrower hereby reaffirms all covenants, representations and warranties made in the Loan Agreement to the extent the same are not amended hereby and agree that all such covenants, representations and warranties shall be deemed to have been remade as of the effective date of this Amendment (except that any representations and warranties made as of a specific date shall be true and correct as of such date).

 

(c) No Event of Default or Default has occurred and is continuing or would exist after giving effect to this Amendment.

 

(d) No Borrower has any defense, counterclaim or offset with respect to the Loan Agreement.

 

5. Effect on the Loan Agreement.

 

(a) Upon the effectiveness of Section 2 hereof, each reference in the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” “herein” or words of like import shall mean and be a reference to the Loan Agreement as amended hereby.

 

(b) Except as specifically amended herein, the Loan Agreement, and all other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed.

 

(c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Agent or Lenders, nor constitute a waiver of any provision of the Loan Agreement, or any other documents, instruments or agreements executed and/or delivered under or in connection therewith.

 

6. Governing Law.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and shall be governed by and construed in accordance with the laws of the State of New York.

 

7. Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

8. Counterparts; Facsimile and Electronic Transmission.  This Amendment may be executed by the parties hereto in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same agreement.  Any signature delivered by a party by facsimile or electronic transmission (including by “.pdf” or other similar format) shall be deemed to be an original signature hereto.

 

 

  

  

  

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first written above.

 

PNC BANK, NATIONAL ASSOCIATION, as Agent and Lender

By:      /s/ Patrick McConnell

Name: Patrick McConnell

Title:   Vice President

PRESSTEK, INC.

                By:       /s/ Jeffrey A. Cook

Name:  Jeffrey A. Cook

Title:    Executive Vice President and Chief Financial Officer

             (Principal Financial Officer)

CONSENTED AND AGREED TO:

PRESSTEK EUROPE LIMITED

By:      /s/ Jeffrey A. Cook

Name: Jeffrey A. Cook

Title:   Director

PRESSTEK OVERSEAS CORP.

By:         /s/ Jeffrey A. Cook

Name:    Jeffrey A. Cook

Title:      Director

  

  

  

SDK REALTY CORP.

By:      /s/ Jeffrey A. Cook

Name: Jeffrey A. Cook

Title:   Director

ABD CANADA HOLDINGS, INC.

By:      /s/ Jeffrey A. Cook

Name: Jeffrey A. Cook

Title:   Director

PRESSTEK CANADA CORP.

By:      /s/ Jeffrey A. Cook

Name: Jeffrey A. Cook

Title:    Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]