Document:

Amendment No. 1 to Outside Directors' Stock Option Plan

 Exhibit 10.4 
  
 AMENDMENT NO. 1 TO 
 OPTIO SOFTWARE, INC. 
 OUTSIDE DIRECTORS’ STOCK OPTION PLAN 
  
 Section 6.2(b) of the plan is amended and restated in its entirety to read as follows: 
  
 “(b) OPTIONS AFTER EACH YEAR OF SERVICE. As of the end of each completed year of service
as an Eligible Director after the effective date, an individual shall be granted an option to purchase 10,000 shares, with such option subject to the provisions of Section 7 below.”Fourth Loan Modification Agreement

 Exhibit 10.24 
  
 FOURTH LOAN MODIFICATION AGREEMENT 
  
 This Fourth Loan Modification Agreement is entered into as of December 4, 2003, by and between Optio Software, Inc.
(“Borrower”) and Silicon Valley Bank (“Bank”). 
  
 1.
DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other documents, a Loan and Security Agreement, dated April 25, 2002, as amended by a First
Loan Modification Agreement, dated September 12, 2002, as amended by a Second Loan Modification Agreement, dated April 24, 2003, as amended by a Third Loan Modification Agreement, dated June 4, 2003, as may be further amended from time to time, (the
“Loan Agreement”). The Loan Agreement provides for, among other things, a Committed Revolving Line in the amount of Four Million Dollars ($4,000,000). Defined terms used but not otherwise defined herein shall have the same meanings as in
the Loan Agreement. 
  
 Hereinafter, all indebtedness owing by Borrower to Bank
shall be referred to as the “Indebtedness.” 
  
 2. DESCRIPTION OF
COLLATERAL AND GUARANTIES. Repayment of the Indebtedness is secured by the Collateral as described in the Loan Agreement. 
  
 Hereinafter, the above-described security documents and guaranties, together with all other documents securing repayment of the Indebtedness shall be referred to as the
“Security Documents”. Hereinafter, the Security Documents, together with all other documents evidencing or securing the Indebtedness shall be referred to as the “Existing Loan Documents”. 
  
 3. DESCRIPTION OF CHANGE IN TERMS. 
  

	 	A.	The definition of “EBIDTA” in Section 13.1 of the Loan Agreement is hereby amended to read as follows: 

  
 “EBIDTA” is earnings before interest
expense, taxes, depreciation and amortization expense, calculated in accordance with GAAP, for the previous three months, on a rolling basis; provided, however, that the EBIDTA calculation shall not include any non-cash impairment charges associated
with Borrower’s note receivable from M2 Systems Corporation, dated March 1, 2003, to be amended from time to time. 
  
 This amended definition of EBIDTA shall be effective for the period ending October 31, 2003, and thereafter. 
  
 4. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever
necessary to reflect the changes described above. 
  
 5. PAYMENT OF LOAN
VARIANCE AND DOCUMENTATION FEES. Borrower shall pay Bank a Loan Variance Fee in the amount of Five Hundred Dollars ($500.00) and a Legal Documentation Fee in the amount of Three Hundred Seventy Five Dollars ($375.00), plus all out-of-pocket
expenses. 
  
 6. NO DEFENSES OF BORROWER. Borrower agrees that, as of the
date hereof, it has no defenses against the obligations to pay any amounts under the Indebtedness. 
  
 7. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Indebtedness, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the
Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s agreement to modifications to the existing
Indebtedness pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Indebtedness. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Indebtedness. It is the
intention of Bank and Borrower to retain as liable parties all makers and endorsers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker, endorser, or guarantor will be released by virtue of this Loan
Modification Agreement. The terms of this paragraph apply not only to this Loan Modification Agreement, but also to all subsequent loan modification agreements. 

 8. CONDITIONS. The effectiveness of this Loan Modification Agreement is conditioned upon the following:

  

	 	•	Bank’s receipt of this Fourth Loan Modification duly executed by the Borrower; and 

  

	 	•	Payment of Loan Variance and Legal Documentation fees. 

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

									
	 BORROWER:
	 	 	 	 BANK:

			
	 OPTIO SOFTWARE, INC.
	 	 	 	 SILICON VALLEY BANK

					
	By:	 	/s/    Caroline Bembry        	 	 	 	By:	 	/s/    Steven DiPasquale        
	 	 	
	 	 	 	 	 	

	 Name:
	 	Caroline Bembry	 	 	 	 Name:
	 	Steven DiPasquale
					
	 Title:
	 	Chief Financial Officer	 	 	 	 Title:
	 	Vice PresidentFifth Loan Modification Agreement

 Exhibit 10.25 
  
 FIFTH LOAN MODIFICATION AGREEMENT 
  
 This Fifth Loan Modification Agreement is entered into as of April 8, 2004, by and between Optio Software, Inc.
(“Borrower”) and Silicon Valley Bank (“Bank”). 
  
 1.
DESCRIPTION OF EXISTING INDEBTEDNESS: Among other indebtedness which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to, among other documents, a Loan and Security Agreement, dated April 25, 2002, as amended by a First
Loan Modification Agreement, dated September 12, 2002, as amended by a Second Loan Modification Agreement, dated April 24, 2003, as amended by a Third Loan Modification Agreement, dated June 4, 2003, as amended by a Fourth Loan Modification
Agreement, dated December 4, 2003, as may be further amended from time to time, (the “Loan Agreement”). The Loan Agreement provides for, among other things, a Committed Revolving Line in the amount of Four Million Dollars ($4,000,000).
Defined terms used but not otherwise defined herein shall have the same meanings as in the Loan Agreement. 
  
 Hereinafter, all indebtedness owing by Borrower to Bank shall be referred to as the “Indebtedness.” 
  
 2. DESCRIPTION OF COLLATERAL AND GUARANTIES. Repayment of the Indebtedness is secured by the Collateral as described in the Loan Agreement. 
  
 Hereinafter, the above-described security documents and guaranties, together with all other
documents securing repayment of the Indebtedness shall be referred to as the “Security Documents”. Hereinafter, the Security Documents, together with all other documents evidencing or securing the Indebtedness shall be referred to as the
“Existing Loan Documents”. 
  
 3. DESCRIPTION OF CHANGE IN
TERMS. 
  

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

  
 “A monthly (for intra-quarter months only) ratio of Quick Assets to
Current Liabilities minus Deferred Revenue of at least 1.40 to 1.00, and a quarterly ratio of Quick Assets to Current Liabilities minus Deferred Revenue of at least 1.75 to 1.00.” 
  

	 	B.	The definition of “Revolving Maturity Date” in Section 13.1 of the Loan Agreement shall be amended to read as follows: 

  
 “Revolving Maturity Date” is April 22, 2005.

  

	 	C.	Borrower’s Borrowing Compliance Certificate shall be amended in the form of Exhibit A hereto. 

  
 4. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.

  
 5. PAYMENT OF LOAN AND DOCUMENTATION FEES. Borrower shall pay Bank a
Loan Fee of Fifteen Thousand Dollars ($15,000.00) and a Legal Documentation Fee in the amount of Five Hundred Fifty Dollars ($550.00), plus all out-of-pocket expenses. 
  
 6. NO DEFENSES OF BORROWER. Borrower agrees that, as of the date hereof, it has no defenses against the obligations to pay any
amounts under the Indebtedness. 
  
 7. CONTINUING VALIDITY. Borrower
understands and agrees that in modifying the existing Indebtedness, Bank is relying upon Borrower’s representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan
Modification Agreement, 

 the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank’s agreement to
modifications to the existing Indebtedness pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Indebtedness. Nothing in this Loan Modification Agreement shall constitute a satisfaction
of the Indebtedness. It is the intention of Bank and Borrower to retain as liable parties all makers and endorsers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker, endorser, or guarantor will be
released by virtue of this Loan Modification Agreement. The terms of this paragraph apply not only to this Loan Modification Agreement, but also to all subsequent loan modification agreements. 
  
 8. CONDITIONS. The effectiveness of this Loan Modification Agreement is conditioned
upon the following: 
  

	 	•	Bank’s receipt of this Fifth Loan Modification duly executed by the Borrower; and 

  

	 	•	Payment of Loan and Legal Documentation fees. 

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

									
	 BORROWER:
	 	 	 	 BANK:

			
	 OPTIO SOFTWARE, INC.
	 	 	 	 SILICON VALLEY BANK

					
	By:	 	/s/    Caroline Bembry        	 	 	 	By:	 	/s/    Steven DiPasquale        
	 	 	
	 	 	 	 	 	

	 Name:
	 	Caroline Bembry	 	 	 	 Name:
	 	Steven DiPasquale
	 Title:
	 	Chief Financial Officer	 	 	 	 Title:
	 	Vice President

 EXHIBIT A 
 COMPLIANCE CERTIFICATE 
  

			
	 TO:
	  	SILICON VALLEY BANK
		
	 FROM:
	  	OPTIO SOFTWARE, INC.

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

							
	 Reporting Covenant

	  	 Required

	  	Complies

	 Monthly financial statements + CC
	  	Monthly within 30 days (except FQE)	  	Yes	  	No
	 Quarterly + 10-Q + CC
	  	FQE within 45 days (except FYE)	  	Yes	  	No
	 Annual (Audited) + 10-K + CC
	  	FYE within 90 days	  	Yes	  	No
	 A/R Agings
	  	Monthly within 30 days	  	Yes	  	No
	 A/R Audit
	  	Initial and Annual	  	Yes	  	No
	 Borrowing Base Certificate
	  	Monthly within 30 days	  	Yes	  	No

  

									
	 Financial Covenant

	    	Required

	    	Actual

	  	Complies

	 Maintain:
	    	 	    	 	  	 	  	 
	 Monthly Minimum Quick Ratio
	    	1.40:1.00	    	            :1.00	  	Yes	  	No
	 Quarterly Minimum Quick Ratio
	    	1.75:1.00	    	            :1.00	  	Yes	  	No
	 Monthly Minimum EBIDTA:
	    	$1.00	    	$                  	  	Yes	  	No

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

					
	 	 	 	 	

	 	 	 	  	BANK USE ONLY
	 Comments Regarding Exceptions: See Attached.
	 	 	  	 
	 	 	 	  	Received by:                                   
                                        
              
	 Sincerely,
	 	 	  	AUTHORIZED SIGNER
			
	 Optio Software, Inc.
	 	 	  	Date:                                     
                                        
                           
	  

	 	 	  	  
 Verified:                                     
                                        
                    

	 SIGNATURE
	 	 	  	AUTHORIZED SIGNER
	
	 	 	  	Date:                                     
                                        
                           
	 TITLE
	 	 	  	 
	
	 	 	  	Compliance Status:                         
                    Yes     No
	 	 	 	 	

	 DATE

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