Document:

Exhibit

10.17

 

MODIFICATION

AND/OR EXTENSION AGREEMENT

 

Date:       April 29, 2002

 

Borrower (s):         Interactive Intelligence, Inc.

 

Lender:   KEYBANK NATIONAL ASSOCIATION

 

Note:  Dated December 21, 2000, in the principal

amount of $5,000,000, including any and all amendments thereto.

 

Loan #:   1-100429074-10001

 

FOR VALUE RECEIVED,

Borrower and Lender hereby agree to modify the above-referenced Loan and

Promissory Note and/or Loan Agreement as follows:

 

1.                                       MODIFICATIONS

AND/OR EXTENSION PROVISONS.

 

•                  The

maturity date of the Loan is hereby extended to June 22, 2002.

 

2.                                       CONDITIONS.  The modifications and/or extension

described above are subject to and conditioned upon Borrower’s full

satisfaction of all of the following conditions on or before the date first

stated above, time being of the essence.

 

A.           There

shall be no uncured event of Default under the Loan, nor any event of condition

which with notice or the passage of time would be an event of default

thereunder.

B.             Borrower

shall deliver to Lender a fully executed original of this Modification and/or

Extension Agreement.

C.             All

expenses incurred by Lender in connection with this Agreement (including

without limitation, attorney fees, recording charges, charges for title policy

update(s), escrow charges, costs of obtaining updated or additional

appraisal(s) or collateral valuation, if required by Lender shall be paid by

Borrower.

D.            Borrower

shall comply with the following additional conditions:

•                  No additional conditions apply.

 

3.                                       GENERAL

PROVISIONS.  Except as modified

above, all other provisions of the Promissory Note and any other documents

securing or relating to the loan (the “Loan Documents”) remain in full force

and effect.  All security given for the

Loan and all guarantees of the Loan (as applicable) shall continue  in full force.  Borrower warrants and represents to Lender that it has full

right, power and authority to enter into this agreement and to perform all its

obligations hereunder, and that all information and materials submitted to

Lender in connection with this modification are accurate and complete.  Borrower warrants that no default exists

under the loan Documents.  Borrower

reaffirms its obligation to pay the Loan in full and reaffirms the valdity and

enforceability of the Loan Documents, without set-off, counterclaim or defense.

 

	

  LENDER

  	

  BORROWER:

  
	

   

  	

   

  
	

  KEYBANK

  NATIONAL ASSOCIATION

  	

  Interactive

  Intelligence, Inc.

  
	

   

  	

   

  
	

  By:

  	

  /s/ Kevin Hipskind

  	

   

  	

  By:

  	

  /s/ Donald E. Brown

  	

   

  
	

  Authorized Officer

  	

  Donald E. Brown

  	

  President and CEO

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  By:

  	

  /s/Keith A. Midkiff

  	

   

  
	

   

  	

  Keith A. Midkiff

  	

  CFOExhibit 10.34

 

April 17, 2002

(revised April 25, 2002)

 

 

Michael E. Ford

Kaizersgracht 40

Apt. 6C

Amsterdam, The Netherlands

101 5CR

 

Dear Mike,

 

We regret to inform you

that your position with Interactive Intelligence, Inc. (“Interactive

Intelligence”) is being eliminated as part of a reduction in workforce

effective April 27, 2002.  This action

is being taken as part of an overall strategy to bring Interactive

Intelligence’s expenses more in line with its expected revenues.

 

In accordance with your

employment agreement with Interactive Intelligence, this letter serves as a ten

(10) day written notice of termination of employment.  Because this termination of employment is defined as ‘without

cause,” you are entitled, per your employment agreement, to a severance

compensation amount equal to one month of base salary, from the date of

termination.  This severance

compensation will be paid to you on Interactive Intelligence’s usual payroll

payment dates.  Severance checks are

contingent upon returning all Interactive Intelligence assets and company

equipment unless noted. All documents/folders/code should not be removed from

equipment.  The information is

Interactive Intelligence’s property and should not be removed.

 

In addition, you are

entitled to receive payments, subject to applicable withholdings, for:

•                  currently

unpaid commissions per the sales commission plan; paid pursuant to the plan.

•                  accrued

and unused vacation benefits paid on the next normal pay date,  and

•                  actual

2001 French taxes owed (payable directly to the French Government after

completion of 2001 tax return).

 

We understand that it is

important for you to begin a search for new employment immediately.  Therefore, April 17, 2002 is your last

official day of work.  However, your

regular pay and benefits will continue through April 27, 2002.

 

This packet includes a

separate notification regarding your rights under COBRA to continue your health

insurance coverage and important information regarding your stock option

program with Interactive Intelligence. 

If you are a participant in the Employee Stock Purchase Plan, the 401(k)

plan, or the voluntary life insurance plan, appropriate information is

included.  Deductions for 401(k) and

other voluntary benefits will continue through your notice period, April 27,

2002, unless you notify us otherwise prior to April 27, 2002.  I invite you to contact me if you have any

questions.

 

Mike, we further

understand and appreciate what you have done for us in your various roles at

Interactive Intelligence, and would like to end this relationship on a positive

and fair note.  As such, we are offering

you the following:

 

 

1)              Five additional

months of base salary as severance (to total six months), less:

•                  Automobile

Deposit - $8,000

•                  1998,

1999 Tax Equalization Amounts – $6,000

•                  2000,

2001 Tax Equalization Amounts – $15,000 (please note that 2000 and 2001 amounts

owed to Interactive Intelligence, excluding AMT amounts, are estimated at

approximately $85,000).

•                  2002

Recoverable Draws - $15,000

 

2)     The net amount, less applicable

withholdings, will be paid to you in a lump sum payment.

3)     We will pay you an amount of $10,000 for

relocation expenses.

4)     We will make an exception to allow you to

retain the 6,000 options that vest June 30, 2002.

 

The above described

benefits will be provided to you in exchange for:

1)     a full release of any and all claims

associated with your employment and the termination of that employment, as

detailed with other provisions in 

Attachment A, which is expressly made a part of this letter

agreement.  Your acceptance of the

provisions of Attachment A shall be confirmed by your signature on this letter

agreement.

2)     a promissory note for $50,000 related to

2000 and 2001 Tax Equalization amounts, as set forth  in Attachment B.  This is

interest-free, and payable at 50% of any refund obtained from a US Federal

Income Tax filing within the next five years. 

Any unpaid amount will be due at the end of five years.

3)     an acknowledgement that you are responsible

in whole for your 2002 global income taxes, which acknowledgement shall be

confirmed by signature on this letter agreement.

 

Mike, this offer can be

accepted by signing at the bottom of this letter agreement.  Please note that the offer will lapse at

12:00 midnight on Thursday, April 25, 2002. 

If we have not heard from you by then, the severance amount will revert

to our contractual obligation, and we will contact you as the first step to

making arrangements for repayment of all amounts owed.

 

If there are any other

matters you wish to discuss, do not hesitate to contact me at (317)

715-8432.   On behalf of the entire

team, I wish to thank you for your service and contributions to Interactive

Intelligence and wish you the best in your future endeavors.

 

Sincerely,

 

 

Debra L. Jones

Human Resources Manager,

Interactive Intelligence, Inc.

 

 

Offer Acceptance:

 

 

	

  /s/Michael E. Ford

  	

   

  	

  April 25, 2002

  	

   

  
	

  Michael E. Ford

  	

  Date

  
	

   

  	

   

  

 

 

Attachment A

 

General Release

In consideration of the

payment of the additional severance benefits described in the attached letter

agreement, you hereby generally, irrevocably and unconditionally release and

forever discharge and covenant not to sue Interactive Intelligence and/or any

of its predecessor, successor, and/or related entities and its or their current

and/or former employees, board members, shareholders, officers, directors,

representatives and attorneys (either in their individual or representative

capacities) and their successors, heirs, administrators and assigns, and/or any

persons acting by, through or under or in concert with any of them

(collectively the “Releasees”) from all charges, complaints, claims, demands,

liabilities, obligations, injuries, actions or rights of action of any nature

whatsoever, including claims for attorneys’ fees, interest and costs, whether

known or unknown, disclosed or undisclosed, administrative or judicial,

suspected or unsuspected, that exist in whole or in part as of the date you

execute the attached letter agreement, including, but not limited to any claims

based upon, arising out of or in any manner connected with your employment with

Interactive Intelligence or the termination of your employment with Interactive

Intelligence.  You acknowledge that this

release, discharge and covenant not to sue is to be construed as broadly as

possible and includes, but is not limited to, and constitutes a complete waiver

of, any and all possible claims under Title VII of the Civil Rights Act of

1964, as amended, and any and all other federal, state and local laws and

statutes, and also applies to any wrongful discharge, breach of contract,

or other state law claims.  You also

release and waive any rights you may have against any of the Releasees for

retirement or severance payments or benefits (other than those specifically

described in the attached letter agreement or Attachment).

 

Entire Agreement

The attached letter

agreement and Attachments  shall not

affect your obligations (and Interactive Intelligence’s rights and remedies

regarding such obligations) with respect to paragraphs 7, 8, 9, 10 and 11 of

your Employment Agreement dated June 30, 1997. 

Any such obligations, rights, and remedies shall remain in full force

and effect.  Other than with respect to

such aforementioned obligations, rights and remedies, the attached letter

agreement and Attachments set forth the entire agreement between you and

Interactive Intelligence and supersede any and all other prior agreements or

understandings, written or oral, between you and Interactive Intelligence.  The attached letter agreement and Attachments

can only be modified by a writing signed by you and an authorized official of

Interactive Intelligence.

 

No Admission

You acknowledge that the attached letter agreement and Attachments and

the actions taken pursuant thereto do not constitute an admission by

Interactive Intelligence of any wrongdoing or liability to you, and Interactive

Intelligence expressly denies any wrongdoing or liability.

 

Severability

Should any clause, portion or section of the attached letter agreement

or Attachments be unenforceable or invalid for any reason, you and Interactive

Intelligence acknowledge and agree that such unenforceability or invalidity

shall not affect the enforceability or validity of the remainder of the

attached letter agreement or Attachments. 

Should any particular covenant, provision or clause of the attached

letter agreement  or Attachments be held

unreasonable or contrary to public policy for any reason, you and Interactive

Intelligence acknowledge and agree that such covenant, provision or clause shall

automatically be deemed modified such that the 

 

 

contested covenant, provision or clause will have the closest effect

permitted by applicable law to the original form and shall be given effect and

enforced as so modified to whatever extent would be reasonable and enforceable

under applicable law.

 

Governing Law, Jurisdiction and Venue

You and Interactive Intelligence acknowledge and agree that the

attached letter agreement and Attachments shall be construed and enforced in

accordance with the laws of the State of Indiana, notwithstanding any state’s

or nation’s choice-of-law rules to the contrary.  You and Interactive Intelligence also agree that any legal action

relating to the attached letter agreement or Attachments shall be commenced and

maintained exclusively before any appropriate state court of record in Hamilton

County, Indiana, or, if subject matter jurisdiction is appropriate, the

United States District Court for the Southern District of Indiana,

Indianapolis Division, and you and Interactive Intelligence submit to the

jurisdiction of such courts and waive any right to challenge or otherwise raise

questions of personal jurisdiction or venue in any action commenced or

maintained in such courts.

 

Successors and Assigns

You acknowledge that Interactive Intelligence shall have the right to

assign the attached letter agreement and Attachments.  The attached letter agreement and Attachments shall inure to the

benefit of, and may be enforced by, any and all successors and assigns of

Interactive Intelligence, including without limitation by asset assignment,

stock sale, merger, consolidation or other corporate reorganization, and shall

be binding on you, your executors, administrators, personal representatives or

other successors in interest.  You shall

not have the right to assign the attached letter agreement or Attachments.

 

Modification

This attached letter agreement and Attachments may not be amended,

supplemented, or modified except by a written document signed by both you and

Interactive Intelligence.

 

Knowledge, Voluntariness and

Non-Reliance

You acknowledge that you

have had ample time to review the attached letter agreement and Attachments and

that you understand the meaning of the attached letter agreement and

Attachments.  You acknowledge that you

are voluntarily entering into the attached letter agreement and Attachments and

that in entering into such letter agreement and Attachments, you have not

relied  on any representations made by

Interactive Intelligence or any of the Releasees other than those specified in

the attached letter agreement and Attachments.

 

 

ATTACHMENT

B: PROMISSORY NOTE

 

 

	

  $50,000.00

  	

   

  	

  Indianapolis, Indiana

  	

   

  	

  April 17, 2002

  
	

   

  	

   

  	

   

  	

   

  	

  Scheduled Due Date:  April 16, 2007

  

 

FOR

VALUE RECEIVED, the undersigned, MICHAEL E. FORD (“Maker”),

promises to pay to the order of INTERACTIVE INTELLIGENCE, INC., an Indiana

corporation (hereinafter called the “Company,” which term shall include any

holder hereof) at such place as the Company may designate by written notice to

Maker or, in the absence of such designation, at the Company’s headquarters in

Indianapolis, Indiana, the sum of Fifty Thousand Dollars ($50,000.00)

(hereinafter referred to as the “Loan”), together with interest after the

Maturity Date as hereinafter provided and payable at the time and in the manner

hereinafter provided.

 

This Note shall mature on that date (the “Maturity Date”) which is the

earlier of:  (i) April 16, 2007; or (ii)

that date on which the Company accelerates payment of this Note.  On the Maturity Date, the principal balance

of the Loan outstanding on such date shall be due and payable in full.

 

The principal balance of the Loan outstanding from time to time from

and after the date of this Note (the “Closing Date”) shall bear interest

(computed on the basis of a 360-day year and actual days elapsed) as

follows:  (i) from and after the

Closing Date until the Maturity Date, at a rate equal to zero percent (0%) per

annum; and (ii) after the Maturity Date until paid in full, at rate of ten

percent (10%) per annum.

 

Maker shall pay to the Company, for application against the Loan fifty

percent (50%) of the gross amount of each United States income tax refund

received by Maker (whether such amounts are received individually or jointly)

at any time during the period from the date of this Note to the Maturity Date,

each such payment to be made within seven (7) days of the date of the receipt

by Maker of the corresponding income tax refund (each, a “Refund Payment”).

 

The remaining principal of the Loan and all interest accruing thereon,

shall be due and payable in full on the Maturity Date.  All amounts paid under this Note, as

received, shall be applied prior to any Event of Default as follows:  (i) first, to the payment of interest

accrued to the date of receipt of payment; and (ii) the balance, if any, to

principal of the Loan.  All amounts

payable under this Note shall be payable without relief from valuation and

appraisement laws, and with all collection costs and reasonable attorneys’

fees.  The principal of this Note may be

prepaid in whole or in part at any time and from time to time without penalty

or premium.

 

Maker covenants to the Company as follows (the “Reporting Covenants”):

 

(a)           Within thirty (30)

days after filing with the United States Internal Revenue Service, Maker shall

provide to the Company, together with a written statement signed by Maker

confirming the correctness of the copy provided, a complete copy of the signed

federal  personal income tax returns

filed by Maker (whether individually or jointly) for 2001 and for each calendar

year thereafter to and including 2006.

 

(b)           At the close of each

calendar year until this Note is paid in full, beginning with the close of  calendar year 2002, Maker shall certify to

the Company  the amount of United States

income tax refunds received by Maker at any time during that calendar year,

such certification to be made in a writing signed by Maker, dated as of

December 31 and delivered to the Company within thirty (30) days after the

close of each such calendar year.

 

 

Each of the following events shall constitute an “Event of Default” for

purposes of this Note and each such Event of Default shall be deemed to exist

and continue so long as, but only so long as, it shall not have been remedied:

 

(a)           Maker shall default

in the payment when due of any amount payable under this Note or in the payment

when due of any of the other obligations, liabilities or indebtedness of Maker

to the Company, and all renewals and extensions thereof.

 

(b)           Maker shall become

subject as a debtor to an order for relief under the United States Bankruptcy

Code.

 

(c)           Maker shall fail to

timely perform and satisfy any of the Reporting Covenants.

 

In the Event of Default, the entire unpaid balance of principal of this

Note shall become due and payable immediately, without notice or demand, at the

election of the holder of this Note.

 

Maker, and any endorser, surety hereby waives presentment, notice of

dishonor, protest, notice of protest, and diligence in bringing suit against

any party hereto, and any defenses of any accommodation maker and consent that

without discharging any of them, the time of payment of this Note may be

extended an unlimited number of times before or after maturity without notice

to Maker.  Maker agrees that no omission

or delay on the Company’s part in exercising any right against, or taking any

action to collect from or pursue the Company’s remedies against any party

hereto will release, discharge, or modify the duties of Maker to make payments

hereunder.

 

The obligations evidenced hereby may from time to time be evidenced by

another note or notes given in substitution, renewal or extension hereof.

 

If any of the terms or provisions of this Note shall be deemed

unenforceable, the enforceability of the remaining terms and provisions shall

not be affected.

 

MAKER AGREES THAT THE COURTS OF THE STATE OF INDIANA LOCATED IN

INDIANAPOLIS, INDIANA, AND THE FEDERAL COURTS LOCATED IN THE SOUTHERN DISTRICT

OF INDIANA, MARION COUNTY, HAVE EXCLUSIVE JURISDICTION OVER ANY AND ALL ACTIONS

AND PROCEEDINGS INVOLVING THIS NOTE AND MAKER HEREBY IRREVOCABLY AND

UNCONDITIONALLY AGREES TO SUBMIT TO THE JURISDICTION OF SUCH COURTS FOR

PURPOSES OF ANY SUCH ACTION OR PROCEEDING. MAKER HEREBY IRREVOCABLY AND

UNCONDITIONALLY WAIVES ANY OBJECTION THAT MAKER MAY NOW OR HEREAFTER HAVE TO

THE VENUE OF ANY SUCH ACTION OR PROCEEDING, INCLUDING ANY CLAIM THAT SUCH COURT

IS AN INCONVENIENT FORUM, AND CONSENTS TO SERVICE OF PROCESS PROVIDED THE SAME

IS IN ACCORDANCE WITH THE TERMS HEREOF. FINAL JUDGMENT IN ANY SUCH PROCEEDING

AFTER ALL APPEALS HAVE BEEN EXHAUSTED OR WAIVED SHALL BE CONCLUSIVE AND MAY BE

ENFORCED IN OTHER JURISDIC­TIONS BY SUIT ON THE JUDGMENT OR AS OTHERWISE

PROVIDED BY LAW.

 

Executed and delivered this 17th day of April, 2002.

 

	

   

  	

  /s/Michael E. Ford

  
	

   

  	

  Michael E. Ford

  
	

   

  	

   

  
	

   

  	

  (“Maker”)

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