Document:

cfc 8k 91906 exhibit 10.34

    Exhibit
      10.34

    
 

    SUBJECT
      TO THAT CERTAIN SUBORDINATION AGREEMENT DATED AS OF DECEMBER 19, 2002 FROM
      BORROWER AND LENDER TO NATIONAL CITY BANK, A NATIONAL BANKING ASSOCIATION

     

    PROMISSORY
      NOTE ($370,000)

     

    
      
        	 $370,000.00	
                 Louisville,
                  Kentucky

              
	 	
                 September
                  19,
                  2006

              

      

    

     

    FOR
      VALUE RECEIVED,
      the
      undersigned, CITIZENS
      FINANCIAL CORPORATION,
      a
      Kentucky corporation, (“Borrower”),
      having an address of Suite 300, The Marketplace, 12910 Shelbyville Road,
      Louisville, Kentucky 40243, hereby promises and agrees to pay to the order
      of
      Darrell R. Wells (“Lender”),
      having an address of Suite 310, 4310 Brownsboro Road, Louisville, Kentucky
      40207, the aggregate principal sum of THREE
      HUNDRED SEVENTY THOUSAND DOLLARS
      ($370,000.00), or so much thereof as may be advanced hereunder, together with
      interest hereon as hereinafter provided, in lawful money of the United States
      of
      America, in the manner set forth herein, on or before June 30, 2007 (the
“Final
      Maturity Date”).

     

    The
      principal of this Note shall bear interest on the unpaid balance thereof at
      a
      rate per annum equal to the greater
      of [i]
      six percent (6%) or [ii] one percent (1%) in excess of the Prime Rate at the
      opening of business on the date of this Note. The rate per annum shall be reset
      at the opening of business on the first day of each April, July, October and
      January hereafter (each an “Adjustment
      Date”)
      so
      that for the calendar quarter beginning on that day the rate per annum shall
      equal the greater
      of [i]
      six
      percent (6%) or [ii] one percent (1%) in excess of the Prime Rate at the opening
      of business on that day. The “Prime
      Rate,”
as
      used in this Note, shall mean that rate of interest announced from time to
      time
      by National City Bank, a national banking association (the “Bank”)
      to be
      its prime rate at its principal office in Louisville,
      Kentucky, it being understood and agreed that such rate shall not necessarily
      be
      the lowest rate the Bank then offers to its most creditworthy borrowers. As
      of
      the date of this Note, the Prime Rate of the Bank is eight
      and
      one-quarter percent (8-1/4%),
      and
      accordingly the interest rate per annum on this Note until the first Adjustment
      Date shall be nine and one-quarter percent (9-1/4%).

     

    All
      interest on this Note shall be computed daily on the basis of the actual number
      of days elapsed over a year assumed to consist of three hundred sixty (360)
      days.

     

    Principal
      of this Note shall be paid in a single payment on the Final Maturity Date.
      All
      accrued and unpaid interest shall be paid on each Adjustment Date for the
      preceding calendar quarter and also on the Final Maturity Date or any other
      date
      on which the principal balance of this Note is paid in full. 

     

    The
      holder of this Note shall have the right to require repayment in full of this
      Note in whole or in part and all accrued and unpaid interest hereon by giving
      written notice to Borrower at the address first set forth above specifying
      a
      date for repayment that shall be not less than ninety (90) days after the date
      Borrower receives such notice. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Borrower
      reserves the right to repay the principal of this Note in whole or in part
      without penalty or premium at any time; provided, however, that Borrower shall
      have no right to reborrow any amounts so repaid. 

     

    Notwithstanding
      any other provision of this Note, the rights and obligations of Borrower and
      Lender hereunder to demand, pay or receive payments and prepayments of the
      principal hereof, interest hereon, and other sums payable hereunder are subject
      to the terms and conditions of a Subordination Agreement from Borrower and
      Lender to the Bank dated as of December 19, 2002, as it may be amended, modified
      or replaced from time to time. In particular, Borrower’s failure to pay any
      installment of principal of or interest on this Note that it is not permitted
      to
      pay in order to comply with the Subordination Agreement shall not constitute
      a
      default on this Note nor shall it give rise to any obligation to pay any
      increased interest or late payment charges in respect of any such unpaid
      installment until ten (10) days after the Bank notifies Borrower that it may
      pay
      such installment. 

     

    All
      payments of principal and interest and any other sums due under this Note shall
      be made in immediately available funds to Lender at its address set forth above
      in this Note or to such other person or at such other address as may be
      designated in writing by the holder of this Note. All payments on this Note
      shall be applied first to the payment of any expenses or charges payable
      hereunder, and next to accrued interest, and then to the principal balance
      hereof, or in such other order as Lender may elect in its sole discretion.
      

     

    Any
      payment on this Note that is overdue for more than five (5) days from its due
      date shall, if requested by and at the sole option of the holder of this Note,
      in order to compensate the holder for the inconvenience and administrative
      expense incident to such delinquency and not as a penalty, be increased by
      an
      amount equal to five percent (5%) of the overdue payment, unless such increase
      would exceed the maximum increase permitted by law, in which event the overdue
      payment shall be increased by such lesser increment, if any, as would not exceed
      the maximum increase permitted by law. The charging or collection of a late
      charge shall not be deemed a waiver of any of the holder’s other rights and
      remedies hereunder, including, if applicable, the right to exercise the remedies
      of the holder upon a default under this Note as hereinafter provided.

     

    The
      occurrence of any one or more of the following shall constitute a default under
      this Note: [i] Borrower does not pay any installment of principal of, or
      interest on, this Note as and when due or within five (5) days thereafter;
      [ii]
      a proceeding is filed or commenced against Borrower for dissolution or
      liquidation that is not dismissed within sixty (60) days after filing; [iii]
      Borrower becomes insolvent, or a custodian, trustee, liquidator or receiver
      is
      appointed for Borrower or for any of its property, or Borrower makes an
      assignment for the benefit of its creditors, files a petition under bankruptcy,
      insolvency or debtor’s relief law or for any readjustment of indebtedness,
      composition or extension or [iv] any such proceeding is filed against Borrower
      and is not dismissed within sixty (60) days). 

     

    Whenever
      there is a default under this Note, the entire principal balance of and all
      accrued interest on this Note, shall, at the option of Lender, become forthwith
      due and payable, without presentment, notice, protest or demand of any kind
      (all
      of which are expressly waived by

     

    
      
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    Borrower).
      Upon any such default, the rate of interest applicable to the entire unpaid
      principal balance of this Note shall, at the sole and exclusive option of the
      holder of this Note, be increased by four percent (4%) per annum, unless the
      resulting rate would exceed the maximum rate permitted by law, in which event
      the rate of interest shall be increased to a rate that shall not exceed such
      maximum rate. 

     

    This
      Note
      is hereby expressly limited so that in no event whatsoever, whether by reason
      of
      acceleration of the maturity hereof or otherwise, shall the amount paid or
      agreed to be paid to the holder of this Note for the use, forbearance or
      retention of money loaned hereunder exceed the maximum amount permissible under
      applicable law. If from any circumstance the holder of this Note shall ever
      receive anything of value deemed by applicable law to be interest in any amount
      that would exceed the highest lawful rate payable hereunder, an amount equal
      to
      any excessive interest shall be applied to the reduction of the principal amount
      owing hereunder and not to the payment of the interest, and if the amount that
      would be excessive interest exceeds the principal balance then owing, such
      excess shall be refunded to the party paying the same. 

     

    Failure
      of the holder of this Note to exercise any of its rights and remedies shall
      not
      constitute a waiver of the right to exercise the same at that or any other
      time.
      All rights and remedies of the holder for default under this Note shall be
      cumulative to the greatest extent permitted by law. Time shall be of the essence
      in the payment of all installments of interest and principal on this Note and
      the performance of Borrower’s other obligations under this Note. 

     

    If
      there
      is any default under this Note, and this Note is placed in the hands of an
      attorney for collection or is collected through any court, including any
      bankruptcy court, Borrower promises to pay to the holder hereof its reasonable
      attorneys’ fees and court costs incurred in collecting or attempting to collect
      or securing or attempting to secure this Note or enforcing the holder’s rights
      in any collateral securing this Note, provided the same is legally allowed
      by
      the laws of the Commonwealth of Kentucky or any state where the collateral
      or
      part thereof is situated. 

     

    If
      any
      provision, or portion thereof, of this Note, or the application thereof to
      any
      persons or circumstances shall to any extent be invalid or unenforceable, the
      remainder of this Note, or the application of such provision, or portion
      thereof, to any other person or circumstances shall not be affected thereby,
      and
      each provision of this Note shall be valid and enforceable to the fullest extent
      permitted by law. 

     

    This
      Note, including matters of construction, validity and performance, and the
      obligations arising hereunder, shall be construed in accordance with and
      otherwise governed in all respects by the laws of the Commonwealth of Kentucky
      applicable to contracts made and performed in such state and any applicable
      law
      of the United States of America. 

     

    Borrower
      and any other party who may become primarily or secondarily liable for any
      of
      the obligations of Borrower hereunder hereby jointly and severally waive
      presentment, demand, notice of dishonor, protest, notice of protest, and
      diligence in collection, and further waive all exemptions to which they may
      now
      or hereafter be entitled under the laws of the Commonwealth of Kentucky or
      any
      other state or of the United States, and further agree that the holder of this
      Note shall have the right without notice, to deal in any way, at any time,
      with
      Borrower, or with

     

    
      
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    any
      other
      party who may become primarily or secondarily liable for, or pledge any
      collateral as security for, any of the obligations of Borrower under this Note
      and to grant any extension of time for payment of this Note or any other
      indulgence or forbearance whatsoever, and may release any security for the
      payment of this Note and/or modify the terms of the any other
      documents securing or pertaining to this Note, without in any way affecting
      the
      liability of Borrower, or such other party who may pledge any collateral as
      security for, or become primarily or secondarily liable for, the obligations
      of
      Borrower hereunder and without waiving any rights the holder may have hereunder
      or by virtue of the laws of this state or any other state of the Unites States.
      

     

    Borrower
      hereby consents to the jurisdiction of any state or federal court located within
      the County of Jefferson, Commonwealth of Kentucky, and irrevocably agrees that,
      subject to Lender’s sole and absolute election, any case or proceeding relating
      to Title 11 of the United States Code and any actions relating to the
      indebtedness evidenced hereby shall be litigated in such courts, and Borrower
      waives any objection that it may have based on improper venue or forum non
      conveniens to the conduct of any proceeding in any such court. Nothing contained
      in this paragraph shall affect the right of Lender to bring any action or
      proceeding against Borrower or its property in the courts of any other
      jurisdiction. 

     

    LENDER
      AND BORROWER ACKNOWLEDGE THAT THE TIME AND EXPENSE REQUIRED FOR TRIAL BY JURY
      EXCEED THE TIME AND EXPENSE REQUIRED FOR A BENCH TRIAL AND HEREBY KNOWINGLY
      AND
      VOLUNTARILY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, AND AFTER HAVING
      CONSULTED OR HAVING HAD AMPLE OPPORTUNITY TO CONSULT THEIR RESPECTIVE LEGAL
      COUNSEL CONCERNING THE CONSEQUENCES OF SUCH WAIVER, TRIAL BY JURY IN ANY ACTION
      OR OTHER PROCEEDING BROUGHT TO ENFORCE OR DEFEND AGAINST COLLECTION OF OR
      OTHERWISE IN CONNECTION WITH THIS NOTE OR ANY RELATED DOCUMENTS.

     

     

    
      	 	
               CITIZENS FINANCIAL
                CORPORATION

               

               

            
	 	 By: /s/ Len E.
              Schweitzer
	 	 	
              Len
                E. Schweitzer

              Vice
                President, Accounting, and Chief Financial
                Officer

            

    

     

     

     

     

    15172293.4

     

     

    
      - 4
        -Consulting Services Agreement

     

    Exhibit
      10.1

     

    Execution
      Copy

     

     

    CONSULTING
      SERVICE AGREEMENT

    

    This
      Consulting Service Agreement (this “Agreement”) is made this 13th day of
      September, 2006 (the “Commencement Date”) by and between MTM Technologies, Inc.
      (the “Company”), with offices at 1200 High Ridge Road, Stamford, Connecticut
      06905, and Michael El-Hillow (the “Consultant”), who is domiciled at 171 Wharf
      Road, Yarmouth, Maine, 04096.

     

    1.      
Engagement.

     

    The
      Company hereby engages Consultant to render to the Company the services
      described in Section 2, below, during the term described in Section 3,
      below.

     

    2.      
Services.

     

    The
      scope
      of the services to be performed by Consultant will consist of (i) during the
      first sixty (60) days following the date of this Agreement, advice and
      consultation regarding the transition of the management and oversight of the
      finance operations of the Company, and (ii) following such sixty (60) day period
      to the end of the Term (as defined below), such
      services as
      the
      Company and the Consultant shall agree upon from time to time (together, the
      “Services”), provided that clause (ii) above shall not require Consultant to
      make any minimum time commitment to providing Services to the
      Company.

     

    3.      
Term
      and Termination.

     

    (a)    This
      Agreement will be effective, and Consultant will provide the Services,
      commencing on the Commencement Date, and continuing thereafter through and
      including June 13th, 2007 (the “Term”). 

     

    (b)     This
      Agreement may be terminated by the parties prior to its expiration, as
      follows:

     

    (i)    
 By
      the
      Company: If Consultant, (1) commits willful or grossly negligent acts to the
      substantial detriment of the Company; or (2) breaches any provision of Section
      10 of the Severance Agreement he entered into with the Company, dated as of
      December 12, 2005 (the “Severance Agreement”), as modified by the Agreement and
      General Release entered into by the Company and Consultant dated as of September
      13th, 2006 (the “Release Agreement”), or if he breaches any provision of the
      Release Agreement.

     

    (ii)     By
      Consultant: If the Company breaches any material term or provision of this
      Agreement and such breach is not cured within ten (10) days after Consultant
      gives the Company written notice complaining of such breach. 

     

    (c)     This
      Agreement and Consultant’s Services hereunder will terminate automatically upon
      Consultant’s death. In such event, the Company shall pay to
      Consultant’s

     

    
      
        
        

      

      
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    estate
      all compensation that would have been owed to Consultant under this Agreement
      through the Term of this Agreement, had Consultant lived. Such compensation
      shall be paid on a quarterly basis, in accordance with Section 4(a) of this
      Agreement.

     

    4.       Compensation.

     

    (a)     Compensation.
      For
      services rendered under this Agreement, the Company will pay Consultant fees
      at
      the rate of Twenty Four Thousand One Hundred Sixty-Six Dollars and Sixty-Six
      Cents ($24,166.66) per month, payable in arrears in twice monthly payments
      of
      Twelve Thousand Eighty-Three Dollars and Thirty Three Cents ($12,083.33) (with
      the initial payment beginning September 30, 2006 and ending with the final
      payment on June 15, 2007) in accordance with the normal payroll practices of
      the
      Company. Payments made under this Section 4(a) shall be made by wire transfer
      of
      immediately available funds to such account as designated in writing from time
      to time by the Consultant to the Company.

     

    (b)     Equity
      Grants.
      The
      parties agree that notwithstanding any provision of the Severance Agreement,
      the
      Release Agreement, or any provision of either of the following named agreements
      to the contrary that (i) the Stock Option Agreement, dated January 3, 2006
      between Consultant and the Company shall be considered null and void and the
      250,000 stock options granted thereby shall be immediately forfeited upon the
      eighth (8th)
      day
      following the delivery to the Company of the Release Agreement provided that
      Consultant has not revoked the Release Agreement prior to such time, and (ii)
      the 35,000 restricted stock units granted to Consultant pursuant to the
      Restricted Stock Unit Agreement dated January 3, 2006 between Consultant and
      the
      Company shall become immediately vested in full upon the eighth (8th)
      day
      following the delivery to the Company of the Release Agreement provided that
      Consultant has not revoked the Release Agreement prior to such time.

     

    (c)     Expenses.
      During
      the Term, the Company shall not be obligated to reimburse the Consultant for
      any
      business expenses Consultant incurs in the performance of the Services, unless
      the Company, in its sole discretion, approves reimbursement of such business
      expenses, in advance, and in writing.

     

    5.       Independent
      Contractor.

     

    The
      relationship between the Company and Consultant is that of independent
      contractors, and both the Company and Consultant will represent, and will cause
      their officers, employees, agents and representatives, if any, to represent
      to
      third parties that Consultant’s capacity hereunder is that of a “consultant” or
“advisor”. Neither party will be the agent of the other for any purpose
      whatsoever, have power or authority to make or give any promise, to execute
      any
      contract or otherwise create, or to assume any liability or obligation in the
      name of or on behalf of the other party. Neither party will misrepresent, and
      each party will cause their officers, employees, agents and representatives,
      if
      any, not to misrepresent, to any third party that it has any power or authority
      which is denied to it by the preceding sentence. The making of any such
      misrepresentation is a breach of a material term of this Agreement, is not
      capable of cure, and is sufficient reason for termination of this Agreement
      pursuant to Section 3(b)(i). As an independent contractor, Consultant will
      not
      (except as otherwise provided in the Release

     

    
      
        
        

      

      
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    Agreement
      and this Agreement) be entitled to participate in any Company-sponsored employee
      benefits programs, and will be wholly and fully responsible for any taxes owed
      to any governmental authority with respect to the fees set forth in Section
      4,
      above. Consultant represents and warrants that Consultant will pay any such
      taxes as and when due.

     

    6.       Assignment.

     

    This
      Agreement is personal to the parties hereto and neither party may assign its
      rights or delegate its obligations hereunder without the prior written consent
      of the other party, which may be withheld without cause or explanation. Any
      purported assignment or delegation in violation of this Section shall be
      void.

     

    7.       Notice.

     

    All
      notices, requests and other communications pursuant to this Agreement shall
      be
      in writing and shall be deemed effective upon (a) personal delivery, if
      delivered by hand, (b) the next business day, if sent by a prepaid overnight
      courier service, or (c) three days after the date of deposit in the mails,
      if
      mailed by registered or certified mail, and in each case addressed as
      follows:

     

    If
      to
      Consultant:          Michael
      El-Hillow
171
      Wharf
      Road

    Yarmouth,
      ME 04096

    

    If
      to the
      Company:        MTM
      Technologies, Inc.

    1200
      High
      Ridge Road

    Stamford,
      Connecticut 06905

    Attn.:
      Chief Executive Officer

    

    With
      a
      copy to:        MTM
      Technologies, Inc.

    Stamford,
      CT 06905

    Attn:
      General Counsel

    

    Either
      party may change the address to which notices to such party are to be sent
      by
      giving notice of such change of address in the manner provided by this Section
      7.

     

    8.       Waiver
      of Breach.

     

    Any
      waiver of any breach of this Agreement shall not be construed to be a continuing
      waiver or consent to any subsequent breach on the part either of Consultant
      or
      of the Company.

     

    9.       Severability.

     

    To
      the
      extent any provision of this Agreement or portion thereof shall be invalid
      or
      unenforceable, it shall be considered deleted therefrom and the remainder of
      such provision and of this Agreement shall be unaffected and shall continue
      in
      full force and effect.

     

    
      
        
        

      

      
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    10.      Counterparts.

     

    This
      Agreement may be executed in one or more counterparts, each of which shall
      be
      deemed to be an original but all of which together will constitute one and
      the
      same instrument.

     

    11.      Governing
      Law.

     

    This
      Agreement shall be construed, interpreted and enforced in accordance with the
      laws of the State of New York, without giving effect to the choice of law
      principles thereof.

     

    12.      Entire
      Agreement. 

     

    This
      Agreement contains the entire agreement between the Company and Consultant
      with
      respect to Consultant’s provision of future personal services to the
      Company.

     

    13.      Amendment.

     

    No
      provision of this Agreement may be canceled or amended by the parties hereto
      except by an instrument in writing signed on behalf of each of the parties
      hereto. A provision of this Agreement may be waived only by a written instrument
      signed by the party against whom or which enforcement of such waiver is
      sought.

     

    14.      Dispute
      Resolution.

     

    (a)    Except
      as
      specifically provided herein, any dispute or controversy arising under or in
      connection with this Agreement shall be, upon the demand of either party,
      subject to a non-binding mediation proceeding before a mediator on the panel
      of
      the CPR Institute for Dispute Resolution, such mediator to be agreed upon by
      the
      parties. 

     

    (b)     If
      a
      mediator is not agreed upon or if mediation is not successful, any dispute
      or
      controversy between the Company and Consultant arising under or in connection
      with this Agreement (except any claim by the Company relating to Consultant’s
      breach of Section 10 of the Severance Agreement, shall be settled by binding
      arbitration before a single arbitrator in New York, New York pursuant to the
      Employment Dispute Resolution Rules of the American Arbitration Association
      (“AAA”). Each party shall bear its own costs, expenses and fees, including,
      without limitation, attorneys’ fees and experts’ fees with respect to any such
      arbitration. The parties shall share equally the fees of the arbitrator and
      the
      AAA. Judgment upon any resulting arbitration award may be entered in any court
      of competent jurisdiction.

     

    (c)     Neither
      party shall be required to mediate or arbitrate any dispute arising between
      it
      and the other party relating to any breach of Section 10 of the Severance
      Agreement, but shall have the right to institute judicial proceedings in the
      United States District Court for the Southern District of New York or in a
      state
      court having jurisdiction located in the State of New York, County of New York,
      with respect to such dispute or claim. Each party hereby consents to, and waives
      any objection to, the personal jurisdiction and venue of the aforesaid courts,
      and waives any claim that the aforesaid courts constitute

     

    
      
        
        

      

      
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    an
      inconvenient forum and any right to trial by jury. If such judicial proceedings
      are instituted, the parties agree that such proceedings shall not be stayed
      pending the outcome of any arbitration proceedings hereunder.

     

    15.      Insider
      Trading.

     

    Consultant
      acknowledges and agrees that he is subject to the terms and conditions of the
      Company’s Insider Trading Policy, as the same exists from time to time, and that
      he will comply with the terms of such policy.

     

    16.      Other
      Activities.

     

    Subject
      to the restrictions imposed upon Consultant by the provisions of Section 10
      of
      the Severance Agreement, the parties agree that Consultant may enter into
      agreements to provide consulting services to other persons or
      entities.

     

     

    

     

    

     

    [REMAINDER
      OF PAGE INTENTIALLY LEFT BLANK]

     

     

     

     

    
      
        
        

      

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

     

     

    MTM
      TECHNOLOGIES, INC.

     

    
      
        	
                By:

              	/s/
                Francis J. Alfano	 	 /s/
                Michael El-Hillow
	 	
                Name:
                  Francis J. Alfano

              	 	
                MICHAEL
                  EL-HILLOW

              
	 	
                Title:  
                  Chief Executive Officer

              	 	 

      

    

     

     

     

     

     

    (Signature
      page to El-Hillow Consulting Agreement)

     

     

     

    
      
        
        

      

      
        6

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