Document:

Exhibit 10.1

 

THIRD AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

 

This THIRD AMENDMENT TO SECOND AMENDED AND
RESTATED CREDIT AGREEMENT (this “Amendment”) is made and entered into as
of this 18th day of February, 2009, by and among GOLDLEAF FINANCIAL SOLUTIONS,
INC., a Tennessee
corporation, as borrower (the “Borrower”), BANK OF AMERICA, N.A., a national banking association, as a
lender (“Bank of America”), THE PEOPLES BANK, as a lender (“Peoples Bank”) and WACHOVIA BANK, N.A., as a lender (“Wachovia”)
(collectively, with Bank of America and Peoples Bank, the “Lenders”).

 

W I T N E S S E T H:

 

WHEREAS, the Borrower and certain Lenders are parties to that
certain Second Amended and Restated Credit Agreement, dated as of November 30,
2006, as amended by that certain First Amendment dated as of January 17,
2008 and by that certain Second Amendment dated as of December 24, 2008
(as so amended, and as may be further amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”), pursuant
to which certain Lenders extended certain financial accommodations to the
Borrower; and

 

WHEREAS, the Borrower has requested that the Lenders amend
certain provisions of the Credit Agreement as more fully set forth herein.

 

NOW, THEREFORE, in consideration of the premises, the terms and
conditions contained herein, and other good and valuable consideration, the
receipt, adequacy and sufficiency of which are hereby acknowledged, the parties
hereto hereby agree as follows:

 

1.             Definitions. 
All capitalized terms used herein and not expressly defined herein shall
have the same respective meanings given to such terms in the Credit Agreement.

 

2.             Amendments to Credit Agreement.  Section 1.1 of the Credit Agreement is hereby amended by deleting
the first sentence in the definition of “EBITDA” in its entirety and replacing
it with the following text:

 

“‘EBITDA’ means, with
respect to any Person for any period, on a consolidated basis the sum of (a) net
income available to common stockholders plus (b) to the extent
deducted in arriving at net income, the sum of: 
(i) preferred stock dividends paid and preferred stock deemed
distributions, (ii) income tax expense (less income tax benefit), (iii) interest
expense, (iv) depreciation and amortization, (v) annual maintenance
fees that will be required to be excluded from deferred revenue and the profit
and loss statement in accordance with GAAP purchase accounting rules and (vi) any
non-cash charges and expenses, including goodwill impairment charges, minus
(c) to the extent included in arriving at net income, any (i) non-cash
gains and (ii) gains as a result of payments in connection with the sale
of the core data processing and teller system business disposed of by Borrower
including, without limitation, earnout payments; provided, however,
for calculation periods ending on or after December 31, 2008, to the
extent otherwise 

 

 

included for such
calculation period, EBITDA shall not include EBITDA from the core data
processing and teller system business disposed of by Borrower.”

 

3.             Representations and
Warranties.  The Borrower hereby represents and
warrants to and in favor of the Lender as follows:

 

(a)           each representation and warranty set
forth in Article 5 of the Credit Agreement, as amended hereby, is hereby
restated and affirmed as true and correct in all material respects as of the
date hereof, except to the extent (i) previously fulfilled in accordance
with the terms of the Credit Agreement, as amended hereby, (ii) the
Borrower has provided the Lender updates to information provided to the Lender
in accordance with the terms of such representations and warranties, or (iii) relating
specifically to the Closing Date or otherwise inapplicable.

 

(b)           the Borrower and each Guarantor has the
corporate power and authority (i) to enter into this Amendment, and (ii) to
do all acts and things as are required or contemplated hereunder to be done,
observed and performed by it;

 

(c)           this Amendment has been duly authorized,
validly executed and delivered by one or more Responsible Officers of the
Borrower and each Guarantor, and constitutes the legal, valid and binding
obligations of the Borrower, enforceable against the Borrower in accordance
with its terms, subject, as to enforcement of remedies, to the following qualifications:  (i) an order of specific performance and
an injunction are discretionary remedies and, in particular, may not be
available where damages are considered an adequate remedy at law, and (ii) enforcement
may be limited by bankruptcy, insolvency, liquidation, reorganization,
reconstruction and other similar laws affecting enforcement of creditors’
rights generally (insofar as any such law relates to the bankruptcy, insolvency
or similar event of the Borrower);

 

(d)           the execution and delivery of this
Amendment and performance by the Borrower under the Credit Agreement, as
amended hereby, does not and will not require the consent or approval of any
regulatory authority or governmental authority or agency having jurisdiction
over the Borrower which has not already been obtained, nor be in contravention
of or in conflict with the articles of incorporation or by-laws of the
Borrower, or any provision of any statute, judgment, order, indenture,
instrument, agreement, or undertaking, to which the Borrower is party or by
which the Borrower’s assets or properties are bound; and

 

(e)           no Default exists both before and after
giving effect to this Amendment, and there has been no Material Adverse Effect
both before and after giving effect to this Amendment.

 

4.             Conditions Precedent to
Effectiveness of Amendment.  The
effectiveness of this Amendment is subject to the following conditions
precedent:

 

(a)           Receipt by Lenders of this Amendment,
duly executed and delivered by Borrower, the Guarantors and the Lenders; and

 

2

 

(b)           the Borrower shall have paid all fees and
expenses required to be paid in connection with this Amendment on the date
hereof, including without limitation (i) an amendment fee of $5,000 for
each Lender and (ii) all reasonable fees, costs and expenses of closing,
including all reasonable legal fees of Lenders’ counsel, presented as of the
date of this Amendment.

 

5.             Guarantor
Acknowledgment.

 

(a)           Each of the Guarantors hereby
acknowledges that it has reviewed the terms and provisions of the Credit
Agreement and this Amendment.  Each of
the Guarantors hereby confirms that the Subsidiary Guaranty, as applicable, to
which it is a party or otherwise bound will continue to guarantee, as the case
may be, to the fullest extent possible in accordance with such Guarantee the
payment and performance of all “Guarantied Obligations” under each of
the Guarantees, as the case may be (in each case as such terms are defined in
the applicable Guarantee), including without limitation the payment and
performance of all such “Obligations” under each of the Guarantees, as
the case may be, in respect of the Obligations of the Borrower now or hereafter
existing under or in respect of the Credit Agreement and the Notes defined
therein.

 

(b)           Each of the Guarantors acknowledges and
agrees that any of the Guarantees to which it is a party or otherwise bound
shall continue in full force and effect and that all of its obligations
thereunder shall be valid and enforceable and shall not be impaired or limited
by the execution or effectiveness of this Amendment.  Each of the Guarantors represents and
warrants that all representations and warranties contained in the Credit
Agreement, this Amendment and the Guarantee to which it is a party or otherwise
bound are true, correct and complete in all material respects on and as of the
date hereof to the same extent as though made on and as of that date, except to
the extent such representations and warranties specifically relate to an earlier
date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

 

(c)           Each of the Guarantors acknowledges and
agrees that (i) notwithstanding the conditions to effectiveness set forth
in this Amendment, such Guarantor is not required by the terms of the Credit
Agreement or any other Loan Document to consent to the amendments of the Credit
Agreement effected pursuant to this Amendment and (ii) nothing in the
Credit Agreement, this Amendment or any other Loan Document shall be deemed to
require the consent of such Guarantor to any future amendments to the Credit
Agreement.

 

6.             Effect of Amendment; No Novation. 
Except as expressly set forth herein, the Credit Agreement shall remain
unchanged and in full force and effect and shall constitute the legal, valid,
binding and enforceable obligation of the Borrower to the Lender, and Borrower
hereby restates, ratifies and reaffirms each and every term and condition set
forth in the Credit Agreement, as amended hereby.  The terms of this Amendment are not intended
to and do not serve as a novation as to the Credit Agreement or any Note or the
indebtedness evidenced thereby.  The
parties hereto expressly do not intend to extinguish any debt or security
interest created pursuant to the Credit Agreement or any document executed in
connection therewith.  

 

3

 

Instead it is the express intention to affirm the Credit Agreement and
the security created thereby.

 

7.             Counterparts.  This
Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which, when so executed and
delivered, shall be deemed to be an original and all of which counterparts,
taken together, shall constitute but one and the same instrument.

 

8.             Successors and Assigns. 
This Amendment shall be binding upon and inure to the benefit of the
successors and permitted assigns of the parties hereto.

 

9.             Governing Law. 
THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF GEORGIA, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF
LAWS.

 

[Remainder of Page Intentionally
Left Blank]

 

4

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment
under seal as of the day and year first above written.

 

	
   

  	
  GOLDLEAF FINANCIAL SOLUTIONS, INC.,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Gregory Lynn
  Boggs

  
	
   

  	
   

  	
  Name:

  	
  Lynn Boggs

  
	
   

  	
   

  	
  Title:

  	
  President/CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.,

  
	
   

  	
  as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Thomas M.
  Paulk

  
	
   

  	
   

  	
  Name:

  	
  Thomas M. Paulk

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE PEOPLES BANK,

  
	
   

  	
  as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Rice

  
	
   

  	
   

  	
  Name:

  	
  Paul Rice

  
	
   

  	
   

  	
  Title:

  	
  1st VP

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, N.A.

  
	
   

  	
  as Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Elaine Eaton

  
	
   

  	
   

  	
  Name:

  	
  Elaine Eaton

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President

  

 

 

Third Amendment to
Second Amended and Restated Credit Agreement

Signature Page

 

 

	
  ACKNOWLEDGED AND CONSENTED

  	
   

  
	
  TO BY THE FOLLOWING GUARANTORS:

  	
   

  
	
   

  	
   

  
	
  GOLDLEAF TECHNOLOGIES, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Gregory Lynn
  Boggs

  	
   

  
	
   

  	
  Name:

  	
  G. Lynn Boggs

  	
   

  
	
   

  	
  Title:

  	
  CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TOWNE SERVICES, INC.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Gregory Lynn
  Boggs

  	
   

  
	
   

  	
  Name:

  	
  G. Lynn Boggs

  	
   

  
	
   

  	
  Title:

  	
  CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  FORSEON CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Gregory Lynn
  Boggs

  	
   

  
	
   

  	
  Name:

  	
  G. Lynn Boggs

  	
   

  
	
   

  	
  Title:

  	
  CEO

  	
   

  

 

 

Third Amendment to
Second Amended and Restated Credit Agreement

Signature Page

 

 

	
  GOLDLEAF LEASING, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Gregory Lynn
  Boggs

  	
   

  
	
   

  	
  Name:

  	
  G. Lynn Boggs

  	
   

  
	
   

  	
  Title:

  	
  CEO

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  GOLDLEAF INSURANCE, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/Gregory Lynn
  Boggs

  	
   

  
	
   

  	
  Name:

  	
  G. Lynn Boggs

  	
   

  
	
   

  	
  Title:

  	
  CEO

  	
   

  
					

 

 

Third Amendment to
Second Amended and Restated Credit Agreement

Signature PageExhibit 10.2

 

CHANGE IN
CONTROL SEVERANCE PAY AGREEMENT

 

                THIS
SEVERANCE PAY AGREEMENT is made as of May 13, 2009, by and
between Goldleaf Financial Solutions, Inc., a Tennessee corporation
(hereinafter the “Company”), and Daniel Owens, a resident of the State of
Georgia (the “Employee”).

 

                WHEREAS, the Company previously
has employed the Employee, either directly or through a wholly owned
subsidiary; and

 

                WHEREAS, the Company recognizes
that the Employee’s contribution to the Company’s growth and success has been
and continues to be substantial;

 

                WHEREAS, the Company wishes to
encourage the Employee to remain with and devote full time and attention to the
business affairs of the Company and wishes to provide income protection to the
Employee for a period of time in the event of a Change in Control of the
Company;

 

                NOW,
THEREFORE, in consideration of the mutual promises, covenants and
agreements made herein, the parties, intending to be legally bound hereby,
agree as follows:

 

                1.             Severance Pay.

 

                                A.            In the event there is a “Change in
Control” of the ownership of the Company, and if (i) the Company within
six (6) months preceding such Change of Control, terminates Employee’s
employment (or Employee resigns in such period and delivers notice to the
Company that such resignation constitutes a constructive discharge), (ii) the
Company within twelve (12) months following such Change in Control, terminates
Employee’s employment,   or (iii) Employee,
upon not less than ninety (90) days prior written notice, terminates his
employment, then Employee shall be entitled to receive as a severance payment
in a lump sum an amount equal to 100% of his annual base salary (not including
incentive compensation or benefits).  In
addition, any earned but unpaid base salary, unpaid incentive compensation from
prior years, and accrued vacation will be paid.

 

                                B.            A “Change in Control” shall be
deemed to have occurred if (i) a tender offer shall be made and
consummated for the ownership of more than 50% of the outstanding voting securities
of the Company, (ii) the Company shall be merged or consolidated (or agree
to be merged or consolidated) with another entity and as a result of such
merger or consolidation less than 50% of the outstanding voting securities of
the surviving or resulting entity shall be owned in the aggregate by the former
shareholders of the Company, as the same shall have existed immediately prior
to such merger or consolidation, (iii) the Company shall sell all or
substantially all (or agree to sell all or substantially all) of its assets to
another entity that is not a wholly-owned subsidiary,  (iv) a person, within the meaning of Section 3(a)(9) or
of Section 13 (d)(3) (as in effect on the date hereof) of the
Securities and Exchange Act of 1934 (“Exchange Act”), shall acquire more than
50% of the outstanding voting securities of the Company (whether directly,
indirectly, beneficially or of record), or (v) the individuals who, as of
the date of this Agreement, are members of the Board (the “Incumbent Board”)
cease for any reason to constitute 

 

 

at least a
majority of the Board; provided, however, that if the election or nomination
for election by the Company’s stockholders of any new director was approved by
at least two-thirds of the Incumbent Board, such new director shall, for
purposes of this Agreement, be considered a member of the Incumbent Board;
provided, further that notwithstanding any such two-thirds approval of the
Incumbent Board, any such new director shall not be considered a member of the
Incumbent Board if, within two years of such director’s initial election to the
Board, any person nominates an alternative slate of directors to any slate set
forth by the Incumbent Board.  For
purposes hereof, ownership of voting securities shall take into account and
shall include ownership as determined by applying the provisions of Rule 13d-3(d)(1)(i) (as
in effect on the date hereof) pursuant to the Exchange Act.

 

                2.             Compliance Programs.  The Employee will at all times while employed
with the Company comply fully with the Company’s “Guidelines of Company
Policies and Conduct” and any other compliance program, as such programs may be
amended from time to time, and acknowledges that his obligations under such
programs as an employee are contractual in nature.

 

                3.             Confidential Information.

 

                                A             As used in this Agreement, the term
“Confidential Information” means all technical and non-technical information of
Goldleaf or its customers, vendors or business partners, regardless of the
media or manner in which it is stored or conveyed to Employee, that relates to
the business of Goldleaf or its customers, vendors or business partners, and
that (a) Goldleaf has taken reasonable measures under the circumstances to
protect from unauthorized use or disclosure, or (b) which would under the
circumstances appear to a reasonable person to be confidential or
proprietary.  Confidential Information
includes information Employee learns or develops in connection with his
employment with Goldleaf, including, but not limited to; product information,
plans, specifications, designs and pricing; non-public financial information,
including forecasts, budgets and data; marketing and advertising plans, budgets
and studies; business strategies; the identities of the key decision makers at Goldleaf’s
customers, vendors or other business partners; the particular needs and
preferences of Goldleaf’s customers or other business partners, and Goldleaf’s
approaches and strategies for satisfying those needs and preferences;
contracts, credit procedures and terms; research and development plans;
software; hardware; employment and personnel information (including, without
limitation, the names, addresses, compensation, specific capabilities, and
performance evaluations of Goldleaf personnel; information regarding, and used,
in employee training; and information relating to employee stock ownership or
entitlement); information relating to Goldleaf stock or assets or proposed or
ongoing acquisitions or takeovers by or on behalf of Goldleaf; and know-how.  The foregoing are only examples of
Confidential Information.  If Employee is
uncertain as to whether any particular information or material constitutes
Confidential Information, he shall ask his direct supervisor or, if no longer
employed by Goldleaf, Goldleaf’s then General Counsel.

 

                                B.            Confidential Information does not
include information that can be shown by competent proof (a) was generally
known to the relevant public at the time of disclosure, or became generally
known after disclosure to me without breach of this Agreement; (b) was
lawfully received by Employee from a third party who was not under such
restrictions; (c) was known to Employee without such restrictions prior to
its receipt from Goldleaf; (d) was independently developed by Employee outside
the scope of his employment or independent third 

 

 

parties; or (e) is required to
be disclosed pursuant to judicial order or other compulsion of law, but only as
required by such order and provided that Employee provides to Goldleaf prompt
notice of any efforts to obtain such order and comply with any protective order
imposed on such disclosure.

 

                                C.            Employee acknowledges and agrees
that in the course of his employment with Goldleaf, he may gain access to
Goldleaf’s Confidential Information, that Confidential Information consists of
valuable, special and unique assets of Goldleaf and its affiliates’ businesses,
and that access to such Confidential Information is granted only for the
purpose of enabling Employee to perform duties for Goldleaf.

 

                                D.            Employee agrees that both during and
following the termination of employment with Goldleaf for any reason, he shall
hold in confidence all Confidential Information of Goldleaf furnished by
Goldleaf, or reproduced or developed by Employee.  Employee agrees that, except with Goldleaf’s
prior written permission or in furtherance of his duties for Goldleaf, he shall
not, directly or indirectly, use, disclose, reproduce, distribute, reverse
engineer, or otherwise misappropriate any Confidential Information, in whole or
in part.  Upon termination of employment
with Goldleaf for any reason, or upon any earlier request by Goldleaf, Employee
shall promptly return to Goldleaf or destroy all documents or materials, of any
nature, in my possession, custody or control containing Confidential
Information (regardless of the medium in which such information is stored) that
have been furnished by Goldleaf to him, or reproduced or developed by him.

 

                                E.             This Agreement (a) does not in
any way restrict my right or the right of Goldleaf to terminate my employment, (b) inures
to the benefit of successors and assigns of Goldleaf, and (c) is binding
upon my heirs and legal representatives. Goldleaf shall have the right to
enforce this Agreement and any of its provisions by injunction, specific
performance or other equitable relief, without bond and without prejudice to
any other rights and remedies that Goldleaf may have for a breach of this
Agreement.

 

                4.             General Release. 
As a condition to the payment described in Section 1 above,
Employee shall be required to execute a General Release in reasonable form
whereby Employee fully and forever releases the Company, its successors,
assigns, affiliates, insurers, officers, directors, employees and agents, from
any and all liability, causes of action, suits, damages, claims and demands
whatsoever that Employee may have and that arise from or relate in any way to
his employment with the Company or the conduct of the Company’s business
through the date thereof.  Any such
release shall also include a similarly situated release from the Company to
Employee.

 

                5.             Successors and Assigns.  The provisions hereof shall inure to the
benefit of and be binding upon the permitted successors and assigns of the
parties hereto.

 

                6.             Non-Assignability by the Employee.  Notwithstanding anything to the contrary set
forth herein, the rights and obligations of the Employee hereunder are not
assignable.

 

 

                7.             Governing Law. 
This Agreement shall be interpreted under, subject to and governed by
the laws of the State of Georgia and all questions concerning its validity,
construction, and administration shall be determined in accordance thereby.

 

                8.             Waivers. 
The waiver of a breach by either party of a term or provision of this
Agreement, at any time or times, shall not be deemed or construed to be a
waiver of any subsequent breach or breaches of the same or of any other terms
or provisions of this Agreement at any time or times.

 

                9.             Invalidity. 
The invalidity or unenforceability of any provision of this Agreement
shall not affect any other provision hereof, and this Agreement shall be
construed in all respects as if such invalid or unenforceable provision was
omitted.  Furthermore, in lieu of such
illegal, invalid or unenforceable provision there shall be added automatically
as a part of this Agreement a provision as similar in terms to such illegal,
invalid or unenforceable provision as may be possible and be legal, valid and
enforceable.

 

                10.           Exclusiveness. 
This Agreement constitutes the entire understanding and agreement
between the parties with respect to the employment or severance arrangements of
the Employee and supersedes any and all other agreements, oral or written,
between the parties.  This Agreement
replaces any prior change of control agreements between the parties.  No waiver, modification, or amendment to this
Agreement shall be valid unless the same be reduced to writing and signed by
the parties hereto.

 

                11.           Modification. 
This Agreement may not be modified or amended except in writing signed
by the parties.  No term or condition of
this Agreement will be deemed to have been waived except in writing by the
party charged with waiver.  A waiver
shall operate only as to the specific term or condition waived and will not
constitute a waiver for the future or act on anything other than that which is
specifically waived.

 

                12.           Consolidation, Merger or Sale of Assets.  Nothing in this Agreement shall preclude or
otherwise restrict the Company from consolidating or merging into or with, or
transferring all or substantially all of its assets to, another individual,
entity or business that assumes this Agreement and all obligations of the
Company hereunder.

 

[Signatures on the following page.]

 

 

                IN WITNESS
WHEREOF, the parties have executed this Agreement as of the date
first above written.

 

	
   

  	
  “COMPANY”

  
	
   

  	
   

  
	
   

  	
  GOLDLEAF FINANCIAL SOLUTIONS, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Gregory Lynn Boggs

  
	
   

  	
  Title:

  	
  President/CEO

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “EMPLOYEE”

  
	
   

  	
   

  
	
   

  	
  /s/Daniel Owens

  
	
   

  	
  Daniel Owens

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