Document:

Exhibit
10.13

 

	
  SPESCOM SOFTWARE

  	
   

  	
  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  10052 Mesa Ridge Ct., Suite 100

  
	
   

  	
   

  	
  San Diego, CA 92121-2616

  
	
   

  	
   

  	
  Tel: 858.625.3000

  
	
   

  	
   

  	
  Fax: 858.625.3010

  
	
   

  	
   

  	
  www.spescomsoftware.com

  
	
   

  	
   

  	
   

  

 

Summary
Agreement between:

Spescom
Software Inc (SSI) and Spescom DataVoice (SDV)

 

This letter serves as a summary of the agreement reached between SSI
& SDV for the employment and housing of a core eB development team in South
Africa.

 

Background

 

It is the desire of SSI to co-locate a development team in the premises
of SDV in Stellenbosch and enter into an agreement with SDV for the procurement
of services in South Africa to facilitate hosting this activity for SSI.

 

This move forms part of the SSI strategy to utilize South Africa as a
cost effective environment to house development resources.  SDV have extensive engineering development
resources and management skills located in Stellenbosch and it would be
beneficial to house the SSI development team within this environment.

 

It is also anticipated that co-operative development efforts between
the SSI and SDV product streams could result from this close relationship
between the business activities.

 

Agreement

 

As a result of discussions, SDV agree to:

•                  Employ
the individual developers that are being relocated to South Africa as part of
the eB Core development team

•                  Provide
office space, office furniture, lights, water and cleaning services within a
suitable engineering environment for the employees to conduct software
development work.

•                  Provide
access to suitable communication, Internet access and LAN/WAN infrastructure
for a software development team.

•                  Provide
HR, standard group benefits, General Management services, building security
access, parking etc. for the development team.

 

 

SSI agrees to:

•                  Pay SDV for the
actual salary costs, as agreed on the members’ employment letters

•                  Pay SDV for
direct benefit costs and payroll related expenses (such as the company portion
of the group provident fund and medical aid contributions)

•                  Pay SDV for
direct expenses as incurred, claimed as per standard expense claims and
approved by SSI.

•                  Pay SDV R 1 600
per month for Office space of 20 square metres including lights, water,
cleaning, security, tea & coffee, office furniture & parking.

•                   Pay SDV R500
per month for IT Infrastructure costs

•                  Pay SDV a
management fee of 10% of employees fixed payroll costs

•                  Pay SDV for
direct communication expenses incurred by the eB development team, against a
detailed usage report provide by SDV, from the central phone system.

•                  Provide the
employees with computers, software and the tools required for them to do
development work as required for SSI.

 

General
Items

 

The understanding is that is that the eB development team will work
exclusively for SSI and will be under guidance from the SSI management in the
USA.  They will report directly to the VP
Product Planning & Control based in San Diego.  Expansion of the eB team or termination of
individuals’ employment contracts will be decided by SSI, who will work
together with SDV according to Spescom Ltd. Human Resources Group practices in
South Africa.

 

Employee reviews for the eB core development team will be conducted on
an annual basis by SSI with input from SDV and Spescom Ltd Human Resources
Group.

 

All intellectual property and proprietary information relating to;
developed code, documents, and processes that the eB development team embarks
on, will remain as the sole ownership of SSI.

 

SSI will pay SDV for these services on a monthly basis against
invoice.  The payment will take place by
telegraphic transfer and will be sent by the 15th of
the month following the incurred costs.

 

The two companies (SSI & SDV) will cooperate wherever possible to
share and facilitate access to best of breed development practices,
international coding standards, documentation and the use of third party
tools.  This will serve in the best
interest of the Spescom group.

 

The agreement will be reviewed annually, with amendments and agreed
changes being included at this time.  The
agreement may be terminated by either party with a 90 day notice period.

 

 

	
  Date:

  	
  15th
  December 2004

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed:

  	
  /s/ JOHN W. LOW

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  On
  behalf of Spescom software Inc

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed:

  	
  /s/ PAUL
  FICK

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  On
  behalf of Spescom Data Voice (Pty) Ltd.Exhibit 10.17

 

Non-Employee Director Compensation

 

	
  Non-Employee Director

  	
   

  	
  Fee Per
  Board

  Meeting

  Attended

  	
   

  	
  Equity

  Compensation

  	
   

  	
  Committee

  Service Fees

  	
   

  	
  Other

  
	
  Michael
  Silverman

  	
   

  	
  $

  	
  1,250

  	
   

  	
  *

  	
   

  	
  $ 1,250 per Audit

  Committee

  meeting attended

  	
   

  	
  $ 25,000 annual

  chairman fee

  
	
  Larry Unruh

  	
   

  	
  $

  	
  1,250

  	
   

  	
  *

  	
   

  	
  $ 1,250 per
  Audit

  Committee

  meeting attended

  	
   

  	
  $ 10,000 annual

  Audit Committee

  chair fee

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $ 1,000 per

  Compensation

  Committee

  meeting attended

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $ 1,000 per Stock

  Option

  Committee

  meeting attended

  	
   

  	
   

  
	
  Hilton
  Isaacman (1)

  	
   

  	
  —

  	
   

  	
  *

  	
   

  	
  —

  	
   

  	
  None

  
	
  D. Ross Hamilton

  	
   

  	
  $

  	
  1,250

  	
   

  	
  *

  	
   

  	
  $ 1,250 per
  Audit

  Committee

  meeting attended

  	
   

  	
  None

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $ 1,000 per

  Compensation

  Committee

  meeting attended

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $ 1,000 per
  Stock

  Option

  Committee

  meeting attended

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  James Meyers

  	
   

  	
  $

  	
  1,250

  	
   

  	
  *

  	
   

  	
  $ 1,000 per

  Compensation

  Committee

  meeting attended

  	
   

  	
  None

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $ 1,000 per Stock

  Option

  Committee

  meeting attended

  	
   

  	
   

  

 

* 
Equity compensation is determined at the discretion of the Board of
Directors.

 

(1)  Mr. Isaacman is
a full time employee of Spescom Limited, South AfricaExhibit 10.18

 

Executive Officer Compensation

 

	
  Executive
  Officer

  	
   

  	
  Title

  	
   

  	
  Base

  Annual

  Salary

  	
   

  	
  Bonus Plan

  Compensation

  	
   

  	
  Other Annual

  Compensation

  
	
  Carl Mostert

  	
   

  	
  Chief
  Executive Officer

  	
   

  	
  $

  	
  230,000

  	
   

  	
  *

  	
   

  	
  None

  
	
  Johann
  Leitner

  	
   

  	
  VP,
  Strategic Marketing

  	
   

  	
  $

  	
  224,000

  	
   

  	
  *

  	
   

  	
  None

  
	
  John Low

  	
   

  	
  Chief
  Financial Officer

  	
   

  	
  $

  	
  195,000

  	
   

  	
  *

  	
   

  	
  None

  
	
  Alan Kiraly

  	
   

  	
  VP, Product
  Development

  	
   

  	
  $

  	
  135,000

  	
   

  	
  *

  	
   

  	
  None

  

 

* Bonus compensation is determined annually at the discretion of the
compensation committee of the Board of Directors.Exhibit 10.1

 

DESCRIPTION OF THE COMPANY’S
NON-EMPLOYEE DIRECTORS COMPENSATION POLICY

 

The following
is a summary description of the material terms of the Company’s Non-Employee
Directors Compensation Policy (which was effective with the fiscal year beginning
October 1, 2004):

 

•      The
Company shall pay each non-employee director a retainer of $5,000 per quarter.

•      Each
non-employee director will be paid $1,500 for each Board meeting scheduled to
be held in person and attended by such non-employee director.

•      Each
non-employee director will be paid $750 for each committee meeting scheduled to
be held in person and attended by such non-employee director.

•      The
Chairman of the Audit Committee will be paid a retainer of $2,500 per quarter.

•      The
Chairman of the Compensation Committee will be paid a retainer of $1,250 per
quarter.

•      Non-employee
directors will not be compensated for attendance at Board or committee meetings
scheduled to be held telephonically.

•      Upon
conclusion of the Annual Meeting of Stockholders each year, the Company will
grant each non-employee director immediately vested options to purchase 5,000
shares of Common Stock pursuant to the Company’s 1994 Director Stock Option
Plan.Exhibit
10.1

 

Associated Bank

PROMISSORY NOTE

	
  Borrower:

  	
  SOUTHWEST
  CASINO AND HOTEL CORP.

  2001 KILLEBREW DRIVE #350

  MINNEAPOLIS, MN 55425

  	
  Lender:

  	
  ASSOCIATED
  BANK MINNESOTA, NATIONAL ASSOCIATION

  1801 RIVERSIDE AVENUE

  MINNEAPOLIS, MN 55454

  

 

	
  Principal Amount: $500,000.00

  	
  Initial
  Rate: 5.750%

  	
  Date of Note: October 12, 2004

  

 

 

PROMISE TO PAY. SOUTHWEST
CASINO AND HOTEL CORP. (“Borrower”) promises to pay to ASSOCIATED BANK
MINNESOTA, NATIONAL ASSOCIATION (“Lender”), or order, in lawful money of the
United States of America, the principal amount of Five Hundred Thousand &
00/100 Dollars ($500,000.00) or so much as may be outstanding, together with
interest on the unpaid outstanding principal balance of each advance.  Interest shall be calculated from the date of
each advance until repayment of each advance.

 

PAYMENT. Borrower will pay
this loan in accordance with the following payment schedule:

 

Subject to any payment
changes resulting from changes in the Index, Borrower will pay this loan in 12
payments of $42,993.86 each payment. Borrower’s first payment is due NOVEMBER
12, 2004, and all subsequent payments are due on the same day of each month
after that. Borrower’s final payment will be due on OCTOBER 12, 2005, and will
be for all principal and accrued interest not yet paid. Payments include
principal and interest.

 

Unless otherwise agreed or
required by applicable law, payments will be applied first to any accrued
unpaid interest; then to principal; and then to any late charges. The annual
interest rate for this Note is computed on a 365/360 basis; that is, by
applying the ratio of the annual interest rate over a year of 360 days,
multiplied by the outstanding principal balance, multiplied by the actual
number of days the principal balance is outstanding. Borrower will pay Lender
at Lender’s address shown above or at such other place as Lender may designate
in writing.

 

VARIABLE INTEREST RATE. The
interest rate on this Note is subject to change from time to time based on
changes in an index which is the Lenders Prime Rate (the “Index’). This is the
rate Lender charges, or would charge, on short-term unsecured loans to its most
creditworthy commercial customers. This rate may or may not be the lowest rate
available from Lender at any given time. Lender will tell Borrower the current
Index rate upon Borrower’s request. The interest rate change will not occur
more often than each DAY. Borrower understands that Lender may make loans based
on other rates as well. The Index currently is 4.750% per annum. The interest
rate to be applied to the unpaid principal balance of this Note will be at a
rate of 1.000 percentage point over the Index, adjusted if necessary for any
minimum and maximum rate limitations described below, resulting in an initial
rate of 5.750% per annum. Notwithstanding the foregoing, the variable interest
rate or rates provided for in this Note will be subject to the following
minimum and maximum rates. NOTICE: Under no circumstances will the interest
rate on this Note be less than 5.750% per annum or more than the maximum rate
allowed by applicable law.

 

PREPAYMENT. Borrower agrees that all loan fees and other prepaid finance
charges are earned fully as of the date of the loan and will not be subject to
refund upon early payment (whether voluntary or as a result of default), except
as otherwise required by law. Except for the foregoing, Borrower may pay
without penalty all or a portion of the amount owed earlier than it is due.
Early payments will not, unless agreed to by Lender in writing, relieve
Borrower of Borrower’s obligation to continue to make payments of accrued
unpaid interest. Rather, early payments will reduce the principal balance due.
Borrower agrees not to send Lender payments marked “paid in full”, “without
recourse”, or similar language. If Borrower sends such a payment, Lender may
accept it without losing any of Lender’s rights under this Note, and Borrower
will remain obligated to pay any further amount owed to Lender.  All written communications concerning disputed
amounts, including any check or other payment instrument that indicates that
the payment constitutes “payment in full” of the amount owed or that is
tendered with other conditions or limitations or as full satisfaction of a
disputed amount must be mailed or delivered to: ASSOCIATED BANK, P.O. BOX
19097, GREEN BAY, WI 54307-9097.

 

LATE CHARGE. If a payment is 11 days or more late, Borrower will be
charged 5.000% of the unpaid portion of the regularly scheduled payment.

 

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon
final maturity, Lender, at its option, may, if permitted under applicable law,
increase the variable interest rate on this Note to 6.000 percentage points
over the Index. The interest rate will not exceed the maximum rate permitted by
applicable law.

 

DEFAULT. Each of the following shall constitute an event of default (“Event
of Default”) under this Note:

 

Payment Default. Borrower
fails to make any payment when due under this Note.

 

Other Defaults. Borrower
fails to comply with or to perform any other term, obligation, covenant or
condition contained in this Note or in any of the related documents or to
comply with or to perform any term, obligation, covenant or condition contained
in any other agreement between Lender and Borrower.

 

Default in Favor of Third
Parties. Borrower or any Grantor defaults under any loan, extension of credit,
security agreement,

 

 

purchase or sales agreement,
or any other agreement, in favor of any other creditor or person that may
materially affect any of Borrower’s property or Borrower’s ability to repay
this Note or perform Borrower’s obligations under this Note or any of the
related documents.

 

False Statements. Any
warranty, representation or statement made or furnished to Lender by Borrower
or on Borrower’s behalf under this Note or the related documents is false or
misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

 

Insolvency. The dissolution
or termination of Borrower’s existence as a going business, the insolvency of
Borrower, the appointment of a receiver for any part of Borrower’s property,
any assignment for the benefit of creditors, any type of creditor workout, or
the commencement of any proceeding under any bankruptcy or insolvency laws by
or against Borrower.

 

Creditor or Forfeiture
Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by
judicial proceeding, self-help, repossession or any other method, by any
creditor of Borrower or by any governmental agency against any collateral
securing the loan. This includes a garnishment of any of Borrower’s accounts,
including deposit accounts, with Lender. However, this Event of Default shall
not apply if there is a good faith dispute by Borrower as to the validity or
reasonableness of the claim which is the basis of the creditor or forfeiture
proceeding and if Borrower gives Lender written notice of the creditor or
forfeiture proceeding and deposits with Lender monies or a surety bond for the
creditor or forfeiture proceeding, in an amount determined by Lender, in its
sole discretion, as being an adequate reserve or bond for the dispute.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any
Guarantor of any of the indebtedness or any Guarantor dies or becomes
incompetent, or revokes or disputes the validity of, or liability under, any
guaranty of the indebtedness evidenced by this Note.

 

Change
In Ownership. Any change in ownership of twenty-five percent (25%) or more of
the common stock of Borrower.

 

Adverse Change. A material
adverse change occurs in Borrower’s financial condition, or Lender believes the
prospect of payment or performance of this Note is impaired.

 

Insecurity. Lender in good
faith believes itself insecure.

 

LENDER’S RIGHTS. Upon
default, Lender may declare the entire unpaid principal balance on this Note
and all accrued unpaid interest immediately due, and then Borrower will pay
that amount.

 

ATTORNEYS’ FEES; EXPENSES.
Lender may hire or pay someone else to help collect this Note if Borrower does
not pay. Borrower will pay Lender that amount. This includes, subject to any
limits under applicable law, Lender’s reasonable attorneys’ fees and Lender’s
legal expenses, whether or not there is a lawsuit, including reasonable attorneys’
fees, expenses for bankruptcy proceedings (including efforts to modify or
vacate any automatic stay or injunction), and appeals. If not prohibited by
applicable law, Borrower also will pay any court costs, in addition to all
other sums provided by law.

 

JURY WAIVER. Lender and
Borrower hereby waive the right to any jury trial in any action, proceeding, or
counterclaim brought by either Lender or Borrower against the other.

 

GOVERNING LAW. This Note will
be governed by, construed and enforced in accordance with federal law and the
laws of the State of Minnesota. This Note has been accepted by Lender in the
State of Minnesota.

 

DISHONORED ITEM FEE. Borrower
will pay a fee to Lender of $25.00 if Borrower makes a payment on Borrower’s
loan and the check or preauthorized charge with which Borrower pays is later
dishonored.

 

RIGHT OF SETOFF. To the
extent permitted by applicable law, Lender reserves a right of setoff in all
Borrower’s accounts with Lender (whether checking, savings, or some other
account). This includes all accounts Borrower holds jointly with someone else
and all accounts Borrower may open in the future. However, this does not
include any IRA or Keogh accounts, or any trust accounts for which setoff would
be prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the indebtedness against
any and all such accounts, and, at Lender’s option, to administratively freeze
all such accounts to allow Lender to protect Lender’s charge and setoff rights
provided in this paragraph.

 

COLLATERAL. Borrower
acknowledges this Note is secured by all security agreements, guarantees,
mortgages, and other security instruments previously granted, contemporaneously
granted, and granted in the future.

 

LINE OF CREDIT. This Note
evidences a straight line of credit. Once the total amount of principal has
been advanced, Borrower is not entitled to further loan advances. Advances
under this Note, as well as directions for payment from Borrower’s accounts,
may be requested orally or in writing by Borrower or by an authorized person.
Lender may, but need not, require that all oral requests be confirmed in
writing. Borrower agrees to be liable for all sums either: (A) advanced in
accordance with the instructions of an authorized person or (B) credited to any
of Borrower’s accounts with Lender. The unpaid principal balance owing on this
Note at any time may be evidenced by endorsements on this Note or by Lender’s
internal records, including daily computer print-outs. Lender will have no
obligation to advance funds under this Note if: (IA) Borrower or any guarantor
is in default under the terms of this Note or any agreement that Borrower or
any guarantor has with Lender, including any agreement made in connection with
the signing of this Note; (B) Borrower or any guarantor ceases doing business
or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to
limit, modify or revoke such guarantor’s guarantee of this Note or any other
loan with Lender; (D) Borrower has applied funds provided pursuant to this Note
for purposes other than those authorized by Lender;

 

 

or (E) Lender in good faith
believes itself insecure.

 

LETTER OF CREDIT LIMITATION.
In the event Lender either contemporaneously or hereafter issues a Letter of
Credit on behalf of Borrower (“Credit”), the amount of such Credit, or the
aggregate amount of all such Credits, shall be applied against the available
credit under this Note.  Such limitation
on available credit shall continue as long as Lender is obligated under any
outstanding Credit.

 

INITIAL NOTE RATE PROVISION.
The Initial Note Rate is as of OCTOBER 12, 2004.

 

FINANCIAL STATEMENT. Borrower
shall furnish to Lender annual financial statements within 90 days following
the close of Borrower’s fiscal or calendar year, as applicable, and such other
financial information respecting Borrower at such times and in such form as
Lender may request from time to time. In addition to being an Event of Default,
Borrower shall pay Lender a $25.00 fee for failure to provide the financial
statements within said 90 days or failure to provide such other financial
information within 30 days of the request therefore. The $25.00 fee shall
continue to be imposed thereafter for each additional 30 day period or part
thereof, that the financial statements or other financial information have not
been provided to Lender. If Borrower does not reimburse Lender for the fees
imposed by this section on demand therefore, Lender may add the fees to the
loan balance outstanding.

 

OTHER LOAN AGREEMENTS. If
Borrower and Lender have either previously or contemporaneously entered into a
Loan Agreement, it is agreed that this Note is subject to the terms and
conditions of such Loan Agreement. For purposes of this provision, Loan
Agreement shall include, but not be limited to, a Business Loan Agreement,
Agricultural Loan Agreement, Construction Loan Agreement, any other LASER PRO
Loan Agreement, and/or any attorney drafted lending agreement.

 

SUCCESSOR INTERESTS. The
terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs,
personal representatives, successors and assigns, and shall inure to the
benefit of Lender and its successors and assigns.

 

GENERAL PROVISIONS. Lender
may delay or forgo enforcing any of its rights or remedies under this Note
without losing them. Borrower and any other person who signs, guarantees or
endorses this Note, to the extent allowed by law, waive presentment, demand for
payment, and notice of dishonor. Upon any change in the terms of this Note, and
unless otherwise expressly stated in writing, no party who signs this Note,
whether as maker, guarantor, accommodation maker or endorser, shall be released
from liability. All such parties agree that Lender may renew or extend (repeatedly
and for any length of time) this loan or release any party or guarantor or
collateral; or impair, fail to realize upon or perfect Lender’s security
interest in the collateral; and take any other action deemed necessary by
Lender without the consent of or notice to anyone. All such parties also agree
that Lender may modify this loan without the consent of or notice to anyone
other than the party with whom the modification is made. The obligations under
this Note are joint and several.

 

SECTION DISCLOSURE. This loan is made under Minnesota Statutes, Section
48.195.

 

 

PRIOR TO SIGNING THIS NOTE,
BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. INCLUDING THE
VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES RECEIPT
OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

 

BORROWER:

 

 

   SOUTHWEST CASINO AND HOTEL CORP.

 

 

	
  By: 

  	
   

  
	
   

  	
  THOMAS E. FOX, Chief
  Financial Officer of

  
	
   

  	
  SOUTHWEST CASINO AND HOTEL
  CORP.

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