Document:

Unassociated Document

    SETTLEMENT AGREEMENT AND
RELEASE

    

    THIS
SETTLEMENT AGREEMENT is made this 23rd day of
December, 2009, by and between AICCO, INC. (hereinafter “AICCO”) and ClearPoint
Business Resources, Inc. (hereinafter “ClearPoint”), said entities referred to
as the “Parties.”

     

    WHEREAS,
ClearPoint executed and delivered to AICCO an Insurance Premium Finance
Agreement and Disclosure Statement dated September 12, 2007, bearing AICCO
Account No. 15-005-038461-8 (hereinafter the “Finance Agreement”);
and

     

    WHEREAS, in accordance with the terms
of the Finance Agreement, AICCO financed the premiums of certain insurance
policies procured by ClearPoint in consideration for ClearPoint’s promise to
repay to AICCO the principal sum of $646,214.00 together with finance charges
within the time and manner set forth in the Finance Agreement; and

     

    WHEREAS, AICCO alleges that ClearPoint
has defaulted on its payment obligations to AICCO under the Finance Agreement;
and

     

    WHEREAS, AICCO has commenced a legal
action in the Court of Common Pleas of Bucks County, Pennsylvania, entitled
AICCO, Inc. v. ClearPoint
Business Resources, Inc., bearing Civil Action No. 0811757 (“the Legal
Action”) to recover all sums due and owing under the Finance Agreement (the
“AICCO Claims”); and

     

    WHEREAS, ClearPoint has filed an Answer
denying the allegations contained in AICCO’s Complaint and a Third Party
Complaint against third party defendants, American Marine, LLC and AMS
Outsourcing, Inc. (collectively “Third Party Defendants”) alleging that Third
Party Defendants are liable (a) for the AICCO Claims (hereafter the “Third Party
Claims” and (b) for the other claims between ClearPoint and Third Party
Defendants that are not related to the AICCO Claims (the “Unrelated Third Party
Claims”); and

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    WHEREAS,
on or about October 21, 2009, AICCO was granted summary judgment against
ClearPoint in the Legal Action in the amount of $166,586.88, together with
interest at the contract rate of 6.57% per annum until the judgment is paid in
full, plus AICCO’s reasonable attorneys’ fees and costs (collectively the
“Judgment”); and

     

    WHEREAS, AICCO and ClearPoint now
desire to resolve and settle their differences regarding the Finance Agreement,
the AICCO Claims, the Legal Action and Judgment, and to memorialize the
resolution thereof in this Settlement Agreement (the “Agreement”).

     

    NOW, THEREFORE, in consideration of the
mutual promises, releases and agreements herein contained and, intending to be
legally bound, IT HEREBY IS STIPULATED AND AGREED by and between AICCO and
ClearPoint that all issues and/or disputes relating to the Finance Agreement,
the AICCO Claims, the Legal Action and the Judgment shall be settled and
resolved in accordance with the following terms and conditions:

     

    1.      PAYMENT

     

    a.      For
purposes of this Agreement only, AICCO and ClearPoint agree that ClearPoint
presently owes AICCO the sum of $195,329.55, which sum includes the unpaid
judgment, together with accrued interest and AICCO’s attorneys’ fees as of
November 11, 2009 (the “Total Indebtedness”).

     

    b.      ClearPoint
agrees to pay to AICCO, and AICCO agrees to accept from ClearPoint, the
compromise sum of $190,000.00 (the “Compromise Sum”) in full and final
settlement of all claims between AICCO and ClearPoint that were or could have
been asserted in the Legal Action, including those related to the Finance
Agreement, the AICCO Claims and the Judgment.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    c.      ClearPoint
shall pay the Compromise Sum by making the following payments in accordance with
the terms hereof:

     

    
      	
               
      

            	
              (1)

            	
              Four
      (4) monthly installment payments each in the amount of $15,000.00
      commencing five (5) business days from the date of this Agreement and
      continuing on the fifteenth (15th)
      day of each month thereafter to and including March 15, 2010;
      and

               

            

    

    
      	
               
      

            	
              (2)

            	
              Twelve
      (12) monthly installment payments each in the amount of $10,833.34,
      commencing April 15, 2010 and continuing on the fifteenth (15th)
      day of each month thereafter to and including March 15, 2011 (collectively
      the “Settlement Payments”).

            

    

     

    d.      In
the event that any of the dates on which payments are to be made shall fall on a
Saturday, Sunday, or national holiday, said payment shall be deemed owed on the
next business day following the date on which such payment was to be
made.

     

    e.      ClearPoint
shall remit each of the Settlement Payments by making its checks payable to
“AICCO, Inc.” and
delivering same, in sufficient time to be received on or before the due dates
thereof, to the following location:

     

    Norris
McLaughlin & Marcus, P.A.

    P.O. Box
5933

    Bridgewater,
NJ 08807-5933

    Attn:
Jerome F. Gallagher, Jr., Esq.

     

    
      	
               
      

            	
              f.

            	
              ClearPoint
      shall have the right to prepay the Compromise Sum without
      penalty.

            

    

     

    2.      SECURITY
FOR FUTURE PAYMENTS

     

    In
consideration for AICCO’s agreement to accept payment of the Compromise Sum over
a period of time, ClearPoint agrees as follows:

     

    
      
        
        

      

      
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    a.      In
the event that ClearPoint fails to make any payment pursuant to the schedule and
terms set forth above in ¶1(c), AICCO shall provide ClearPoint, with a copy to
counsel for ClearPoint, with notice of default by first class mail and facsimile
transmission, permitting ClearPoint five (5) days from such notice in which to
cure said default.

     

    b.      In
the event that ClearPoint fails to cure the default within said five (5) day
period, Judgment may be entered against ClearPoint in the amount of the Total
Indebtedness, together with interest at a rate of six percent (6%) per annum,
said interest to accrue on the unpaid balance of the Total Indebtedness as of
the date on which payment was due, as well as actual attorneys’ fees and costs
associated with the entry and execution of such Consent Order of Judgment, less
payments made.

     

    c.      As
a condition of this Settlement Agreement and Release, ClearPoint agrees that it
will execute a Consent Order of Judgment in the full amount of the Total
Indebtedness, together with interest at a rate of six percent (6%) per annum,
said interest to accrue on the unpaid balance of the Total Indebtedness as of
the date on which payment was due, as well as actual attorneys’ fees and costs
associated with the entry and execution of such Consent Order of Judgment, less
any payments made prior to default of any payment.  AICCO agrees to
hold the Consent Order of Judgment in escrow and not seek to have it executed by
the Court of Common Pleas of Bucks County, Pennsylvania

     

    
      	
               
      

            	
              (1)

            	
              until
      any payment is in default for thirty days beyond its due date;
      and

               

            

    

    
      	
               
      

            	
              (2)

            	
              without
      five calendar days’ notice of the intent to seek execution of the Consent
      Order of Judgment.

               

            

    

     

    
      
        
        

      

      
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    d.      Should
any payment be in default in excess of thirty (30) days from its due date, AICCO
shall have the option of declaring ClearPoint responsible to make payment and
move to execute the Consent Order of Judgment that is to be signed as part of
this Settlement Agreement and Release.

     

    3.      RECOVERY
ON THIRD PARTY CLAIMS

     

    a.      ClearPoint
agrees that in the event that it recovers a Judgment on its Third Party Claims
against the Third Party Defendants and effects collection thereon, either
involuntarily through the exercise of lawful post-judgment collection levy or
execution or by means of a negotiated settlement with one or both of the Third
Party Defendants in partial or complete satisfaction of the Third Party Claims,
then all such payments (the “Third Party Claim Payments”) will be assigned over
and paid directly to AICCO, in care of its counsel at the address noted in
Paragraph 2(e) above within fifteen (15) days of ClearPoint’s receipt
thereof.

     

    b.      Any
and all Third Party Claim Payments that ClearPoint remits to AICCO shall be
credited against the Settlement Payments set forth in Paragraph 3 in the reverse
order thereof, i.e., first against the payment due on March 15, 2011 and
thereafter to each preceding payment.

     

    c.      The
tendering of any and all Third Party Claim Payments by ClearPoint to AICCO shall
not act to satisfy or discharge any balance which remains due and owing on the
Compromise Sum after all Third Party Claim Payments have been
credited.

     

    d.      In
the event that any and all Third Party Claim Payments shall, collectively,
exceed the Compromise Sum, such excess shall remain for the benefit of
ClearPoint.  Accordingly, nothing in this provision as to recovery of
Third Party Claim Payments is to be construed as entitling AICCO with an amount
in excess of the Compromise Sum.

     

    
      
        
        

      

      
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    e.      Nothing
contained in this Agreement shall be construed as requiring ClearPoint to remit
any payments that it recovers from Third Party Defendants in connection with the
Unrelated Third Party Claims.

     

    4.      WAIVER OF
CLAIMS

     

    ClearPoint
hereby and forever waives all claims, defenses, offsets and counterclaims of any
kind and nature whatsoever, both known and unknown, realized or contingent,
which exist against AICCO with respect to the Finance Agreement and which were
capable of assertion in the Legal Action.

     

    5.      CANCELLATION
OF INSURANCE COVERAGE

     

    ClearPoint
acknowledges that the insurance coverages financed through the Finance Agreement
have been canceled in accordance with the provisions of the Finance Agreement
and that AICCO shall have no obligation to request reinstatement
thereof.

     

    6.      PREMIUM
REFUND

     

    AICCO
agrees that in the event it receives any return premiums that have not
previously been credited to ClearPoint’s Account, AICCO shall promptly advise
ClearPoint and credit any and all such additional return premiums against the
Settlement Payments due hereunder in reverse order thereof; or refund such
additional return premiums to ClearPoint if received after the date on which all
Settlement Payments have been tendered by ClearPoint to AICCO.

     

    7.      BINDING
EFFECT

     

    This
Settlement Agreement and Release shall be binding upon the parties hereto, and
upon their respective officers, directors, agents, successors, assignees,
executors, administrators and beneficiaries.

     

    
      
        
        

      

      
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    8.      LIMITED
TO FINANCE AGREEMENT

     

    ClearPoint
agrees and understands that this Settlement Agreement and Release is
specifically limited to the Finance Agreement that is a subject of the Legal
Action, and nothing contained herein shall be construed as applying to or
affecting any other agreement, for financing or otherwise, that may now or
hereafter exist between AICCO and ClearPoint.  AICCO agrees that
nothing contained herein shall be construed as applying to or affecting
ClearPoint’s right to pursue the Unrelated Third Party Claims that ClearPoint
has asserted in the Legal Action against Third Party Defendants.

     

    9.      RELEASE

     

    In
exchange for the foregoing consideration, and except as otherwise set forth or
required by this Agreement, each of the Parties hereto, by and on behalf of
themselves and their subsidiaries, heirs, employees, affiliates, and/or agents,
hereby releases, acquits and forever discharges the other party and its
subsidiaries, including without limitation its shareholders, respective present
and former officers, directors, members, employees, agents, attorneys,
predecessors and successors in interests, assigns, personal representatives,
heirs, affiliates, and trustees from any and all past, present or future claims,
liabilities, demands, causes of action, obligations, defenses, set-offs, costs,
expenses, damages and compensation of any kind or nature, whether based on tort,
contract, statute or other theory of recovery whether known or unknown or
suspected or claimed, that each Party ever had, now has or may have against the
other including, but not limited to, those arising out of or in any way related
to the Finance Agreement, the AICCO Claims, the Legal Action and the
Judgment.

     

    
      
        
        

      

      
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    10.           AMENDMENT

     

    AICCO and
ClearPoint agree that the terms and conditions of this Settlement Agreement and
Release shall not be changed, amended or modified, except in a writing executed
by AICCO and ClearPoint, or their duly authorized representatives.

     

    11.           CONFIDENTIALITY

     

    The
Parties agree that the terms of this Settlement Agreement and Release shall be
kept confidential, and that they shall not communicate, directly or indirectly,
the terms of this Settlement Agreement and Release to any third party, except as
may be required in the routine course of business, as necessary to implement or
perform this Settlement Agreement and Release, or as required by
law.  The Parties further agree that, if a third party seeks
disclosure of the terms of this Settlement Agreement and Release, the Party
requested to make such disclosure shall give the other Party written notice and
a reasonable period to review and comment upon the disclosure prior to making
the disclosure.

     

    12.           WITHDRAWAL
OF ACTION

     

    The
Parties mutually agree that AICCO shall withdraw its claims in the Legal Action
identified above, with prejudice, within ten (10) days of the date of the full
and final execution of this Settlement Agreement and Release.  The
Parries further agree that the terms of this Settlement Agreement and Release
may be enforced as provided herein, and/or through a request to enforce the
terms hereof through proceedings filed in the pending Action, which may be
re-activated through the submission of a petition to enforce or other
appropriate pleading.

     

    13.           AUTHORITY
TO EXECUTE AGREEMENT

     

    AICCO and
ClearPoint represent that they enter into this Settlement Agreement and Release
freely and voluntarily, and with and upon the advice of counsel and further
represent and warrant that the persons executing this Settlement Agreement and
Release are authorized to sign and bind them pursuant to the terms of this
Settlement Agreement and Release.

     

    
      
        
        

      

      
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    14.           JURISDICTION

     

    This
Settlement Agreement and Release shall be construed and enforced under the
substantive law of the Commonwealth of Pennsylvania without reference to
conflicts of law principals.  Any action to enforce the terms and
conditions of this Settlement Agreement and Release shall be initiated in the
Court of Common Pleas for Bucks County, Pennsylvania.

     

    15.           ENTIRETY
OF AGREEMENT

     

    No
covenants, agreements, representations or warranties of any kind have been made
by any Party hereto, except as expressly set forth herein.  This
Settlement Agreement and Release constitutes the entire agreement between the
Parties relating to the subject matter hereof, and all prior discussions and
negotiations have been and are merged and integrated into, and superseded by
this Settlement Agreement and Release.

     

    16.           ASSIGNMENT

     

    This
Settlement Agreement and Release, and all terms contained herein, shall not be
assigned by either Party without the prior written consent of the other Party
hereto.

     

    17.           COUNTERPARTS

     

    This
Settlement Agreement and Release may be signed in counterpart copies, each of
which shall be deemed to be an original document, and all of which shall
together be deemed to constitute a single document.

     

    18.           ADDRESSES

     

    ClearPoint
represents and warrants that its current business address is at the following
location:  1600 Manor Drive, Chalfont, Pennsylvania
18914.  Any and all notices to ClearPoint under this Agreement shall
be to: Jack Phillips, Chief Financial Officer, ClearPoint Business Resources,
Inc., 1600 Manor Drive, Suite 110, Chalfont, Pennsylvania 18914 (telecopy
215-997-7711).  A copy of such notice (which shall not constitute
notice to ClearPoint) shall be to:  Alan L. Zeiger, Esquire, Blank
Rome, LLP, One Logan Square, 130 North 18th Street,
Philadelphia, Pennsylvania, 19103 (telecopy 215-832-5754).  ClearPoint
shall notify Norris McLaughlin & Marcus, P.A. in writing within fifteen (15)
days of any change of address, by written notice sent to Norris McLaughlin &
Marcus, P.A. by certified mail, return receipt requested, to the address set
forth in paragraph 4 hereof.

     

    
      
        
        

      

      
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    IN WITNESS WHEREOF, the
Parties have executed this Settlement Agreement and Release as of the dated
stated at the outset.

     

    
      
        	
                ATTEST:

              	
                AICCO,
      Inc.

              	 
	 	 	 	 
	
                
                  December
      23, 2009

                

              	
                By:
      

              	/s/ Joan
      Stratton	 
	 	 	 	 
	
                ATTEST:

              	
                ClearPoint
      Business Resources, Inc.

              	 
	 	 	 	 
	
                December
      23, 2009

              	By:	/s/
      John G. PhillipsUnassociated Document

    JUDGMENT
NOTE

     

    $195,329.55

    Chalfont,
Pennsylvania

    December
23, 2009

     

    FOR VALUE RECEIVED, CLEARPOINT
BUSINESS RESOURCES, INC. (herein after referred to as “Maker”), a
corporation with an address at 1600 Manor Drive, Chalfont, Pennsylvania 18914,
promises to pay to the order of AICCO, INC. (hereinafter
referred to as “Payee”), a corporation with an address at 101 Hudson Street,
33rd
Floor, Jersey City, New Jersey 07302, at such address of Payee, or such other
address as Payee may designate from time to time in writing, the principal sum
of One Hundred Ninety-Five Thousand, Three Hundred Twenty-Nine Dollars and
Fifty-Five Cents ($195,329.55) lawful money of the United States of America
payable as hereinafter provided.  The payment of this amount shall be
governed by the terms of the Settlement Agreement, attached hereto (“Settlement
Agreement”).

     

    1.           Modifications.  No
waiver or modification of the terms of this Note shall be valid unless in
writing, signed by Maker and Payee.  Any modification shall be valid
only to the extent set forth in the writing.

     

    2.           Waiver of Trial by
Jury.  Each party, including the Maker and any endorser,
surety, accommodation party, or guarantor, waives all right to trial by jury in
any action or proceeding instituted in respect to this Note.

     

    3.           Notices.  All
notices, statements and requests to, and demands made upon, a party in
accordance with the provisions of this Note shall be in writing and shall be
deemed to have been given or made when presented for delivery, by United States
certified mail, return receipt requested, with postage prepaid, or by Federal
Express or other recognized same-day or overnight delivery service, or
hand-delivered by messenger, addressed to the party to receive the notice at the
address stated in the introductory paragraph of this Note or to such other
address as any party hereto shall from time to time direct by written notice
given in like manner.

     

    4.           Captions; Governing
Law.  The captions or headings of the paragraphs in this Note
are for convenience only and shall not control or affect the meaning or
construction of any of the terms or provisions of this Note.  This
Note shall be governed by and construed in accordance with the laws of the
Commonwealth of Pennsylvania.

     

    5.           Remedies.  Upon
the occurrence of any Event of Default, the entire unpaid principal sum
hereunder plus all interest accrued thereon together with all other sums due and
payable to Payee under the Note, at the option of Payee, shall become due and
payable immediately without presentment, demand, notice of nonpayment, protest,
notice of protest or other notice of dishonor, all of which are hereby expressly
waived by Maker, except as otherwise provided in this Note.  Upon the
occurrence of any Event of Default, Payee shall have the option to confess
judgment against Maker, and execute immediately upon said judgment.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    6.           CONFESSION
OF JUDGMENT.

     

    THE FOLLOWING PARAGRAPH SETS FORTH A
WARRANT OF MAKER FOR AN ATTORNEY TO CONFESS JUDGMENT AGAINST MAKER IN GRANTING
THIS WARRANT OF ATTORNEY TO CONFESS JUDGMENT, MAKER HEREBY KNOWINGLY,
INTENTIONALLY, AND VOLUNTARILY, AND, ON THE ADVICE OF COUNSEL UNCONDITIONALLY
WAIVES ANY AND ALL RIGHTS MAKER HAS OR MAY HAVE TO PRIOR NOTICE AND AN
OPPORTUNITY FOR HEARING PRIOR TO ENTRY OF JUDGMENT AND THE LEVY OR ATTACHMENT OF
ANY EXECUTION ISSUED ON SUCH JUDGMENT AS PROVIDED UNDER THE CONSTITUTIONS AND
LAWS OF THE UNITED STATES AND THE COMMONWEALTH OF
PENNSYLVANIA.

     

    UPON THE OCCURRENCE OF AN EVENT OF
DEFAULT, MAKER HEREBY EMPOWERS THE PROTHONOTARY OR CLERK OF COURTS OR ANY
ATTORNEY OF ANY COURT OF RECORD WITHIN THE COMMONWEALTH OF PENNSYLVANIA OR
ELSEWHERE TO APPEAR FOR PAYEE AND CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS,
AGAINST MAKER IN FAVOR OF PAYEE FOR THE THEN UNPAID PRINCIPAL BALANCE OF THIS
NOTE, TOGETHER WITH ACCRUED INTEREST THEREON, ACCRUED LATE CHARGES (IF ANY),
COSTS OF SUIT, AND REASONABLE ATTORNEYS’ FEES AS SET FORTH IN THE SETTLEMENT
AGREEMENT.  ONE OR MORE EXECUTIONS MAY ISSUE FORTHWITH UPON SUCH
JUDGMENT OR JUDGMENTS.  MAKER HEREBY WAIVES AND RELEASES ALL
PROCEDURAL ERRORS IN SAID PROCEEDINGS, WAIVES STAY OF EXECUTION, AND WAIVES ALL
EXEMPTIONS FROM EXECUTION AND SALE NOW OR HEREAFTER PROVIDED BY
LAW.  NO SINGLE EXERCISE OF THE FOREGOING POWER TO CONFESS A JUDGMENT
OR A SERIES OF JUDGMENTS, SHALL BE DEEMED TO EXHAUST THIS POWER, WHETHER OR NOT
ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO BE VALID, VOIDABLE, OR VOID; BUT
THIS POWER SHALL CONTINUE UNDIMINISHED AND MAY BE EXERCISED FROM TIME TO TIME AS
OFTEN AS PAYEE SHALL ELECT UNTIL SUCH TIME AS PAYEE SHALL HAVE RECEIVED PAYMENT
IN FULL OF THIS NOTE, INCLUDING PRINCIPAL, INTEREST, LATE CHARGES, COSTS OF
SUIT, AND ATTORNEY’S FEES, PAYEE HEREBY WAIVES AND RELEASES ALL BENEFITS THAT
MIGHT ACCRUE TO PAYEE BY VIRTUE OF ANY PRESENT OR FUTURE LAWS EXEMPTING THE SAID
PROPERTY OR ANY OTHER PROPERTY, REAL OR PERSONAL, OR ANY PART OF THE PROCEEDS
ARISING FROM ANY SALE OF ANY SUCH PROPERTY, FROM ATTACHMENT, LEVY OR SALE UNDER
EXECUTION, EXEMPTION FROM CIVIL PROCESS OR EXTENSION OF TIME FOR PAYMENT, AS
WELL AS THE RIGHT OF INQUISITION ON ANY REAL ESTATE THAT MAY BE LEVIED UPON
UNDER A JUDGMENT OBTAINED BY VIRTUE HEREOF; AND THEY VOLUNTARILY CONDEMN THE
SAME.  MOREOVER, MAKER WAIVES PRESENTMENT FOR PAYMENT OF PRINCIPAL,
DEMAND, NOTICE OF NON-PAYMENT, PROTEST, AND NOTICE OF PROTEST
HEREUNDER.

     

    
      
        
        

      

      
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    IN
WITNESS WHEREOF and intending to be legally bound hereby, Maker has executed
this Note the day and year first above written.

     

    
      
        	WITNESS:	 	 	MAKER:	 
	 	 	 	 	 
	
                /s/
      Deegan Fardon

              	 	 	
                J.
      Phillips

              	 
	
                 

              	 	 	
                CLEARPOINT
      BUSINESS RESOURCES, INC.

              	 
	
                 

              	 	 	
                By:  /s/ John G.
      Phillips

              	 

      

    

     

    
      	COMMONWEALTH OF
      PENNSYLVANIA   	)	 	 
	 	)	ss.:	 
	COUNTY OF
      BUCKS    	)	 	 

    

     

    On this,
the 23rd day of
December, 2009, before me, the undersigned officer, personally appeared JACK
PHILLIPS, known to me (or satisfactorily proved) to be the person whose name is
subscribed to the within instrument, and acknowledged that he/she executed the
same for the purpose therein contained.

     

    IN
WITNESS WHEREOF, I have hereunto set my hand and official seal.

     

    
      
        	
                 

              	
                By:
      

              	/s/
      Deegan Fardon	 
	 	 	NOTARY
      PUBLIC

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