Document:

Vectra Bank Loan Agreement

 
EXHIBIT 10.47

 
VECTRA BANK REVOLVING CREDIT & TERM LOAN AGREEMENT

REVOLVING CREDIT AND TERM LOAN AGREEMENT 
 
THIS REVOLVING CREDIT AND TERM LOAN AGREEMENT
(“Agreement”) is entered into as of October 16, 2002, by and among VECTRA BANK COLORADO, NATIONAL ASSOCIATION (“Bank”), and ACT TELECONFERENCING, INC., a Colorado corporation (“Borrower”), and ACT
VIDEOCONFERENCING INC., a Minnesota corporation, and ACT TELECONFERENCING SERVICES, INC., a Minnesota corporation (collectively, the “Guarantors”). 
 
This Agreement is made with respect to the following facts: 
 
A. Bank and Borrower wish to enter into this Agreement, which
provides for a revolving line of credit to Borrower for working capital purposes and a term loan to finance the purchase of business assets. 
 
B. The Bank is willing to provide this financing for the purposes and on the conditions set forth in this Agreement. 
 
NOW, THEREFORE, in consideration of the covenants and
conditions, representations and warranties, and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by all parties hereto, Borrower and Bank hereby promise and agree as
follows: 
 
 
SECTION 1 
DEFINITIONS 
 
The following capitalized terms, when used in this Loan
Agreement, shall have the meanings set forth below (such meanings to be applicable, except to the extent otherwise indicated in a definition of a particular term, both to the singular and the plural of the terms defined): 
 
1.1    “Advances” shall
mean disbursements under the Line pursuant to the terms of this Loan Agreement. 
 
1.2    “Affiliate” when used with reference to any Person, (a) each Person that, directly or indirectly, controls, is controlled by or is under common control with,
the Person referred to, (b) each Person which beneficially owns or holds, directly or indirectly, five percent (5%) or more of the fully diluted shares of the Person referred to (or if the Person referred to is not a corporation, five percent
(5%) or more of the equity interest therein), (c) each Person, five percent (5%) or more of the voting stock (or if such Person is not a corporation, five percent (5%) or more of the equity interest therein) of which is
beneficially owned or held, directly or indirectly, by the Person referred to, and (d) each of the Person’s officers, directors, joint venturers and partners. The term “control” (including the terms “controlled by” and
“under common control with”) means the possession, directly, of the power to direct or cause the direction of the management and policies of the Person in question. 

1.3    “Agreement” or “Loan
Agreement” shall mean this Revolving Credit and Term Loan Agreement, as the same may be modified, amended, extended, supplemented or restated. 
 
1.4    “Authorized Officer” shall mean the following officers: (i) with respect to Borrower, Gerald
D. Van Eeckhout; (ii) with respect to ACT Teleconferencing Services, Inc., Gerald D. Van Eeckhout; and (iii) with respect to ACT Videoconferencing Inc., Gerald D. Van Eeckhout. The term “Authorized Officer” shall further include any other
officer(s) of Borrower and Guarantors as certified by Borrower or Guarantors, respectively, to the Bank for purpose of making certifications, including requests for Advances required by this Loan Agreement. 
 
1.5    “Bank” shall mean
Vectra Bank Colorado, National Association, its successors and assigns and participants, if any, in the Line or Term Loan. 
 
1.6    “Borrower” shall mean ACT TELECONFERENCING, INC., a Colorado corporation, its permitted
successors or assigns. 
 
1.7    “Borrowing Base” shall mean eighty percent (80%) of Eligible Accounts. 
 
1.8    “Borrowing Base Certificate” means a certificate showing the calculation of the Borrowing Base
executed by the Authorized Officer of Borrower in the form attached hereto as Exhibit B. 
 
1.9    “Business Day” shall mean a day on which the main office of the Bank is fully open for business. 
 
1.10    “Closing Date” shall’ mean the Business Day selected by
Borrower and Bank for the closing of the Loans. Bank shall have no obligation to close under this Agreement until and unless all conditions precedent to such closing have been satisfied. 
 
1.11    “Code” shall mean the Internal Revenue Code of 1986, as amended.

 
1.12    “Collateral” shall mean, individually or collectively, the property and interests owned by Borrower and encumbered by the Loan Documents in connection with the Loans, whether owned by the
Borrower at the time of the Closing of the Loans or subsequent hereto, all of which is described and intended to be encumbered by the Loan Documents, and as more fully described in Section 4.1 of this Agreement. 
 
1.13    “Commitment
Amount” shall mean an amount equal to $2,000,000.00. 
 
1.14    “Commitment Expiration Date” shall mean September 30, 2003, unless extended by written agreement between Borrower and Bank prior to that date; provided, however, that Bank may accelerate
the Commitment Expiration Date at any time provided in Section 2.4 or SECTION 11 or otherwise as provided for in this Agreement. 
 
1.15    “Compliance Certificate” shall mean a certificate demonstrating Borrower’s compliance
with the Financial Covenants set forth in this Agreement, executed by the Authorized Officer of Borrower. 

1.16    “Draw Request” shall mean a request for an
Advance in the form attached as Exhibit A. 
 
1.17    “Eligible Accounts” shall mean all accounts receivable arising in the ordinary course of Borrower’s and Guarantor’s business, excluding (a) any account for which no invoice has
been sent or delivered to the account debtor; (b) any account which is unpaid more than ninety (90) days after the original invoice date; (c) any account or part thereof which is disputed, or against which any defense, counterclaim or right of
setoff has been threatened or asserted, or upon which the account creditor’s right to payment is contingent upon any matter whatsoever, including retainage, or any contra account; (d) any account of a person or entity which controls or is
controlled by or is under common control with the account creditor or any account of an employee of the account creditor (any such person, entity or employee being an “affiliate”); (e) all accounts of any account debtor if 10% or more of
the total amount owed the account creditor by such account debtor is ninety (90) days or more past due; and (f) all accounts of any account debtor if Bank reasonably believes such accounts to be of doubtful collateral value due to the lack of
creditworthiness or financial condition of the account debtor; (g) any account in which the Bank does not have a perfected, first priority security interest; (h) any portion of an account arising pursuant to finance or other service charges; and (i)
all accounts of any foreign account debtor. 
 
1.18    “Event of Default” shall mean the occurrence of any of the events or conditions described in SECTION 11. 
 
1.19    “Fees” shall mean, collectively, the Line Fee, the Term Loan
Fee, and the Unused Commitment Fee. 
 
1.20    “Financial Covenants” shall have the meaning set forth in SECTION 8. 
 
1.21    “GAAP” shall mean generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in any other statements by any other entity as may be
approved by a significant segment of the accounting profession, which are applicable to the circumstances as of any date of determination. 
 
1.22    “Guarantors” shall mean, collectively, ACT Videoconferencing Inc., a Minnesota corporation,
and ACT Teleconferencing Services, Inc., a Minnesota corporation. 
 
1.23    “Governmental Entity” shall mean any federal, state, or local governmental or quasi-governmental entity, agency, board, commission or organization having jurisdiction over any
Collateral or Person relevant to this Agreement. 
 
1.24    “Governmental Requirements” shall mean all laws, statutes, codes, ordinances, and governmental rules, regulations and requirements applicable to Borrower, Guarantors, Bank and/or any
Collateral. 

1.25    “Indebtedness” shall mean the outstanding
principal balance, from time to time, and at any time, advanced under the Notes and the terms of this Agreement, together with any and all interest accrued but unpaid, and other charges due and owing under the Notes, this Agreement and the Loan
Documents. 
 
1.26    “Line” shall mean the revolving line of credit made by Bank to Borrower pursuant to the terms of this Agreement. 
 
1.27    “Line Fee” shall have the meaning set forth in Section 2.10.

 
1.28    “Line
Interest Rate” shall have the meaning set forth in Section 2.5(a). 
 
1.29    “Line Maturity Date” shall mean September 30, 2003, unless sooner accelerated as permitted in this Agreement. 
 
1.30    “Line Note” shall
mean the Revolving Promissory Note of even date herewith in the stated amount of $2,000,000.00, made by the Borrower to the order of the Bank, as the same may be modified, amended, extended, replaced, or restated. 
 
1.31    “Loan Documents”
shall mean all documents and instruments executed and delivered in connection with, and evidencing and securing the Loans. 
 
1.32    “Loan Quarter” shall mean each period of three (3) consecutive calendar months, ending on
March 31, June 30, September 30 and December 31, respectively. 
 
1.33    “Loans” shall mean, collectively, the Line and the Term Loan. 
 
1.34    “Notes” shall mean, collectively, the Line Note and the Term Note. 
 
1.35    “Obligations”
shall mean Borrower’s obligations in respect of the due and punctual payment of principal and interest on the Notes when and as due, whether by acceleration or otherwise, and all Fees, expenses, indemnities, reimbursements and other obligations
of Borrower under this Agreement or any other Loan Document, in all cases whether now existing or hereafter arising or incurred. 
 
1.36    “Person” shall mean any natural person, corporation, limited liability company, partnership,
joint venture, firm, association, trust, unincorporated organization, government or governmental agency or political subdivision or any other entity, whether acting in an individual, fiduciary or other capacity. 
 
1.37    “Prime Rate”
shall mean the base commercial lending rate established and published daily by the Wall Street Journal. When a range of rates is published, the higher of the rates will be used (the “Index”). If the Index becomes unavailable during the
term of the Loan, the Bank may designate a substitute Index after notice to Borrower. The Prime Rate is not necessarily the lowest rate charged to Bank’s customers and Bank may make loans at, above or below this stated Index rate. 

 
1.38    “Regulatory Change” shall mean any change after the Closing Date in federal, state or foreign laws or regulations or the adoption or making after that date of any interpretations,
directives or requests applying to a class of banks including Bank under any federal, state or foreign laws or regulations (whether or not having the force of law) by any court or governmental or monetary authority charged with the interpretation or
administration thereof. 
 
1.39    “Related Entity” shall mean, as to any Person, any corporation, partnership, joint venture, limited liability company, trust, or other legal entity in which the Person owns or controls,
directly or indirectly, (a) either ten percent (10%) or more of the issued and outstanding shares of capital stock or ten percent (10%) or more of the issued and outstanding capital stock having ordinary voting power to elect a majority of the Board
of Directors of such entity (irrespective of whether or not at the time capital stock of any other class or classes of such entity shall or might have voting power upon the occurrence of any contingency) or (b) a ten percent (10%) or greater
interest in any partnership, joint venture or other entity, whether such interest is an interest in the capital, profits, losses or distributions of such partnership, joint venture or other entity. 
 
1.40    “Revolving
Commitment” shall mean the obligation of Bank to make Advances to Borrower in an aggregate principal amount outstanding at any time not to exceed the Commitment Amount upon the terms and subject to the conditions and limitations of this
Agreement. 
 
1.41    “Security Documents” shall mean the security agreements, pledge agreements, UCC-1 Financing Statements and other documents which secure the Obligations and all amendments thereto and
supplements thereof. 
 
1.42    “Subsidiary” shall mean a corporation, partnership, joint venture or other entity in which Borrower, one or more of its Affiliates, one or more other Subsidiaries, or any combination of
the foregoing own, directly or indirectly, (a) either fifty percent (50%) or more of the issued and outstanding shares of capital stock or fifty percent (50%) or more of the issued and outstanding capital stock having ordinary voting power to
elect a majority of the Board of Directors of such entity (irrespective of whether or not at the time capital stock of any other class or classes of such entity shall or might have voting power upon the occurrence of any contingency) or (b) a fifty
percent (50%) or greater interest in any partnership, joint venture or other entity, whether such interest is an interest in the capital, profits, losses or distributions of such partnership, joint venture or other entity. 
 
1.43    “Term Loan” shall
mean the term loan made by Bank to Borrower pursuant to the terms of this Agreement. 
 
1.44    “Term Loan Fee” shall have the meaning set forth in Section 3.7. 
 
1.45    “Term Loan Interest Rate” shall have the meaning set forth in Section 3.3(a). 
 
1.46    “Term Loan Maturity
Date” shall mean October 16, 2005, unless sooner accelerated pursuant to the terms of this Agreement. 

1.47    “Term Note” shall mean the Term Promissory
Note of even date herewith in the stated amount of $2,500,000.00, made by the Borrower to the order of the Bank, as the same may be modified, amended, extended, replaced, or restated. 
 
1.48    “UCC-1 Financing Statement” shall mean a UCC-1 financing
statement in form and substance satisfactory to the Bank. 
 
1.49    “Unmatured Event of Default” shall mean an event or condition that, after the giving of notice, failure to cure within the applicable cure period, or both, would constitute an Event of
Default. 
 
1.50    “Unused Commitment Fee” shall have the meaning set forth in Section 2.10(b) hereof. 
 
1.51    “Accounting Terms and Calculations:” Except as may be expressly provided to the contrary
herein, all accounting terms used herein shall be interpreted and all accounting determinations hereunder shall be made in accordance with GAAIP. 
 
1.52    Computation of Time Periods. In this Agreement, in the computation of a period of time from a specified
date to a later specified date, unless otherwise stated the word “from” means “from and including” and the word “to” or “until” each means “to but excluding”. 
 
1.53    Other Definitional Terms.
The words “hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. References to
Sections, Exhibits, schedules and like references are to this Agreement unless otherwise expressly provided. The words “include”, includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” 
 
 
SECTION 2 
REVOLVING LINE; REPAYMENTS; ADVANCES 
 
2.1    Commitment. Subject to and
in accordance with the provisions of this Agreement, Bank agrees to make Advances of the Line, and Borrower may draw upon and borrow, in the manner and upon the terms and conditions expressed in this Agreement, amounts, that shall not exceed in the
aggregate, at any one time, the lesser of (i) then current Borrowing Base, or (ii) the outstanding Commitment Amount. All amounts hereafter advanced or accruing, including, without limitation, any amounts (including principal amounts) advanced or
outstanding hereunder in excess of the Commitment Amount, shall be outstanding under the Line hereunder and shall be evidenced and secured by the Loan Documents. Borrower shall immediately make principal and other payments required so that the
outstanding principal balance of the Line does not exceed the lesser of the Borrowing Base or the Commitment Amount, as they may exist from time to time. 
 
2.2    Revolving Credit. The Line shall be a revolving credit, against which Advances may be made to Borrower,
repaid by Borrower and additional Advances made to Borrower, subject to the limitations contained in this Agreement, provided that Bank shall have no 

obligation to make any Advance that would cause the outstanding principal balance of the Line to exceed
the lesser of the Commitment Amount or the Borrowing Base, as each may exist from time to time. 
 
2.3    The Line Note. The Line is evidenced by the Line Note. All funds advanced under this Agreement shall be evidenced by and repayable in accordance with the Line Note and
this Agreement. 
 
2.4    Expiration Date of Commitment: Extension of Line. 
 
(a) Expiration. The Bank shall be committed to advance funds under this Agreement. Bank’s obligation to
approve Advances shall expire on the Commitment Expiration Date. 
 
(b) Commitment Expiration Date. The Commitment Expiration Date shall occur upon any of the following events: (i) the occurrence of the scheduled Commitment Expiration Date described in Section
1.14, without extension by written agreement between Borrower and Bank; (ii) the acceleration of the Commitment Expiration Date (whether or not previously extended) pursuant to the Bank’s remedies set forth in SECTION 11 below; or (iii) the
acceleration of the Commitment Expiration Date (whether or not previously extended) as a consequence of breach of the Financial Covenants which is not cured within the applicable cure period. The Bank may accelerate the Commitment Expiration Date
if, as and when expressly provided in this Agreement and the Loan Documents. 
 
2.5    Line Interest Rate: Usury. 
 
(a) Line Interest Rate. The outstanding principal balance of the Line shall bear interest at a rate equal to one
and one-quarter percent (1.25%) in excess of the Prime Rate (“Line Interest Rate”), except to the extent that the Default Rate (defined in Section 2.10(b) below) may apply. The Line Interest Rate shall change from time to time on the
effective date of, and in conformity with, changes in the Prime Rate. Changes in the Line Interest Rate shall be effective without prior notice to Borrower. Line Interest shall be calculated on a three hundred sixty (360) day year, for the actual
number of days in the period for which interest is charged. Thus, interest payable for a thirty-one (31) day calendar month shall be computed by multiplying the outstanding principal balance of the Line by the Line Interest Rate and then multiplying
the result by a fraction, the numerator of which is thirty-one (31) days and the denominator of which is three hundred sixty (360) days. 
 
(b) Limitations on Interest. All agreements between Borrower or Guarantors and Bank, whether now existing or
hereafter arising and whether written or oral, are expressly limited so that in no contingency or event whatsoever, whether by acceleration of the maturity of the Line or otherwise, shall the amount paid or agreed to be paid to Bank for the use,
forbearance or detention of the money to be loaned hereunder or otherwise, or for the performance or payment of any covenant or obligation contained herein or in any other Loan Document, exceed the maximum amount permissible under Colorado law. If,
from any circumstances whatsoever, fulfillment of any provision hereof or of any such other Loan Document, at the time performance of such provision shall be due, shall exceed the limit of validity prescribed by law, then, ipso 

facto, the obligation to be fulfilled shall be reduced to the limit of such validity, and, if from any
such circumstance, Bank shall ever receive anything of value which is deemed to be interest by Colorado law which would exceed interest at the highest lawful rate, an amount equal to any excessive interest shall be applied to the reduction of the
principal amount of the Line or on account of any other principal indebtedness of Borrower to Bank and to the payment of interest thereon or, if such excessive interest exceeds the unpaid balance of principal of the Line and such other indebtedness,
such excess shall be refunded to Borrower. All sums paid or agreed to be paid to Bank for the use, forbearance or detention of the Line shall, to the extent permitted by Colorado law, be amortized, prorated, allocated and spread throughout the full
term of the Line until payment in full, so that the rate of interest on account of such indebtedness is uniform throughout the term thereof. The terms and provisions of this Section 2.5(b) shall control every provision of all agreements
between Borrower or Guarantors and Bank. 
 
2.6    Payments. Accrued interest on the outstanding principal balance of the Line, as it may exist from time to time, shall be due and payable monthly on the sixteenth (16d1) day of each month, for the immediately preceding calendar month. The first payment on the Line shall be due November 16, 2002. In addition,
Borrower shall make payments of principal at the times and in the manner provided in this Agreement and, if no time period is specifically provided, within three (3) Business Days after notice from Bank, so that the outstanding principal balance of
the Line at no time exceeds the lesser of the Commitment Amount or the Borrowing Base, as it may exist from time to time. 
 
2.7    Time and Place of Payments. Payments required under this Line shall be made in cash or other good funds
immediately available at the offices of Bank at 2000 5. Colorado Boulevard, Suite 2-1200, Denver, Colorado 80222, or any other address specified in writing to the Borrower, prior to 1:00 p.m., Denver, Colorado, time, on the date due. Payments
received after said time shall be deemed received on the next Business Day. If any payment date falls on any day that is not a Business Day, such payment date shall be extended to the next Business Day. 
 
2.8    Prepayment: Application of
Payments. 
 
(a)
Prepayment. Borrower may prepay the entire outstanding Indebtedness of Borrower to Bank under the Line at any time without penalty; provided, however, that any prepayment of principal in connection with a reduction in the Commitment Amount,
in whole or in part, shall include interest accrued but unpaid on the amount prepaid. 
 
(b) Application of Payments. All sums received by Bank under the Line from whatever source shall be applied (i)
when no Unmatured Event of Default or Event of Default has occurred and is continuing, for the specific purpose for which it was remitted under this Loan Agreement and otherwise to the principal balance of the Line; and (ii) after the occurrence of
an Unmatured Event of Default or Event of Default, and while such Unmatured Event of Default or Event of Default continues, to fees, charges, interest or principal under the Line, in such manner and order as Bank may direct, in its sole and absolute
discretion. 
 
(c) Mandatory
Prepayments. Borrower shall make prepayments of principal on the Line within three (3) Business Days after demand by Bank if the total amount of 

outstanding Advances exceeds the lesser of the Borrowing Base or the Commitment Amount, in an amount equal
to such excess. 
 
2.9    Other Loans Discretionary. Borrower acknowledges that Bank is not obligated to lend money to Borrower, except in accordance with the provisions of this Agreement or other written agreements in effect
from time to time between Bank and Borrower. 
 
2.10    Fees. 
 
(a) Line Fee. Borrower shall pay Bank, at closing, a fee equal to $20,000.00 (the “Line Fee”) for the Line. The Line Fee shall be payable and deemed fully earned by Bank upon the execution of this Agreement.

 
(b) Unused Commitment
Fee. Borrower shall pay the Bank an unused commitment fee equal to the average daily Commitment Amount in effect during the immediately preceding calendar quarter (or portion thereof), minus the daily average amount of the Line Balance during
the immediately preceding calendar quarter (or portion thereof), multiplied by (ii) the product of: (y) one-quarter of one percent (.25%), and (z) a fraction, the numerator of which is the number of days in the applicable calculation period
and the denominator of which is 360 (the “Unused Commitment Fee”). The Unused Commitment Fee shall be payable on a quarterly basis in arrears on the last Business Day of each Loan Quarter. 
 
(c) Default Rate and Late Charges.
After the occurrence of an Event of Default, the Indebtedness outstanding on the Line shall bear interest at the rate of five percent (5%) per annum above the Line Interest Rate, adjusted from time to time on the effective date of, and in
conformity with, changes in the Prime Rate (“Default Rate”). In addition, Borrower shall pay, if charged by Bank, a late charge of five percent (5%) of (i) any interest installment, (ii) any principal payment, and (iii) any other
charges under this Agreement not paid in full on or before the expiration of the cure period described in Section 10.1 (“Late Charge”). 
 
2.11    Borrower’s Accounts. Borrower shall maintain with Bank, during the term of the Line, its primary
operating account, through which Line funds shall be advanced, repaid and readvanced, from time to time, in accordance with the terms and provisions of this Agreement. 
 
2.12    Requirements for Advances. Every request for an Advance shall be
accompanied by the following: 
 
(a) a Draw Request in the form of Exhibit A 
 
(b) if requested by Bank, a certification by an Authorized Officer, on behalf of Borrower: (i) that neither an Unmatured Event of Default nor an Event of Default exists; and (ii) that the outstanding
principal balance of the Line after the requested Advance will not exceed the Commitment Amount. 
 
2.13    Conditions Precedent to the Making of All Advances. The obligations of Bank to make each Advance are subject to the satisfaction of each and every of the following
additional conditions: 

 
(a) Draw Request. Bank shall have received a timely Draw Request under Section 2.12. 
 
(b) Regulatory Change. There shall not have been any Regulatory Change after the date hereof which would render the
transactions contemplated hereby unlawful. 
 
(c) No Default. No Unmatured Event of Default shall have occurred and be continuing or will exist upon making the requested Advance. 
 
(d) Representations and Warranties. All representations and warranties set forth in SECTION 5 of this
Agreement shall be true and correct in all material respects as though made on and as of the date of the Advance or Bank has approved any exceptions to or changes in such representations or warranties arising after the date hereof. 
 
(e) Payment of Fees. Bank shall have
received all fees and other amounts due and payable by Borrower, including any due and payable Unused Commitment Fee. 
 
(f) Compliance. Borrower shall have performed and complied in all material respects with all agreements, terms and
conditions contained in this Agreement required to be performed or complied with by Borrower prior to or on the date of each Advance. 
 
2.14    Filing of Bankruptcy by Borrower. Borrower acknowledges and agrees that in the event of the filing by
or against Borrower of any proceeding under the federal bankruptcy laws now or hereafter existing or any other similar statute now or hereafter in effect, or the appointment of a receiver, trustee, custodian or conservator of all or any part of the
assets of Borrower, Bank shall have no obligation to continue to make Advances under the Line. Borrower further acknowledges and agrees that Advances are financial accommodations pursuant to Title 11 U.S.C. Section 365. 
 
 
SECTION 3 
TERM LOAN; REPAYMENT 
 
3.1    Commitment. Subject to and in accordance with the provisions of this
Agreement and the Loan Documents, Bank agrees to loan Borrower $2,500,000.00 (the “Term Loan”). The Term Loan is a non-revolving, single advance, loan which may not be reborrowed after being repaid, in whole or in part. 
 
3.2    The Term Note. The Term Loan
is evidenced by the Term Note. All funds advanced on the Term Loan under this Agreement shall be evidenced by and repayable in accordance with the Term Note and this Agreement. 
 
3.3    Term Loan Interest Rate: Usury. 
 
(a) Term Loan Interest Rate. The
outstanding principal balance of the Term Loan shall bear interest at the rate of seven percent (7.00%) per annum (“Term Loan Interest Rate”). 

(b) Limitations on Term Loan Interest. All agreements between
Borrower or Guarantors and Bank, whether now existing or hereafter arising and whether written or oral, are expressly limited so that in no contingency or event whatsoever, whether by acceleration of the maturity of the Term Loan or otherwise, shall
the amount paid or agreed to be paid to Bank for the use, forbearance or detention of the money to be loaned hereunder or otherwise, or for the performance or payment of any covenant or obligation contained herein or in any other Loan Document,
exceed the maximum amount permissible under Colorado law. If, from any circumstances whatsoever, fulfillment of any provision hereof or of any such other Loan Document, at the time performance of such provision shall be due, shall exceed the limit
of validity prescribed by law, then, ipso facto , the obligation to be fulfilled shall be reduced to the limit of such validity, and, if from any such circumstance, Bank shall ever receive anything of value which is deemed to be
interest by Colorado law which would exceed interest at the highest lawful rate, an amount equal to any excessive interest shall be applied to the reduction of the principal amount of the Term Loan or on account of any other principal indebtedness
of Borrower to Bank and to the payment of interest thereon or, if such excessive interest exceeds the unpaid balance of principal of the Term Loan and such other indebtedness, such excess shall be refunded to Borrower. All sums paid or agreed to be
paid to Bank for the use, forbearance or detention of the Term Loan shall, to the extent permitted by Colorado law, be amortized, prorated, allocated and spread throughout the full term of the Term Loan until payment in full, so that the rate of
interest on account of such indebtedness is uniform throughout the term thereof. The terms and provisions of this Section 3.3(b) shall control every provision of all agreements between Borrower or Guarantors and Bank. 
 
3.4    Payments. A payment of
interest only on the unpaid principal balance of this Note shall be due and payable in advance on the date hereof in an amount equal to interest accrued from and including the date hereof through November 16, 2002. Borrower shall make monthly
installment payments of sixty-nine thousand four hundred forty four and 44/100 Dollars ($69,444.44) of principal plus interest on the sixteenth (16th) day of November, 2002 and on the same day of each succeeding month through and including the Term Loan Maturity Date, on which date all unpaid principal and interest, together with any other sums due
under the terms of Term Note shall be due and payable. 
 
3.5    Time and Place of Payments. Payments required under the Term Loan shall be made in cash or other good funds immediately available at the offices of Bank at 2000 S. Colorado Boulevard, Denver,
Colorado 80222, or any other address specified in writing to the Borrower, prior to 1:00 p.m., Denver, Colorado, time, on the date due. Payments received after said time shall be deemed received on the next Business Day. If any payment date falls on
any day that is not a Business Day, such payment date shall be extended to the next Business Day. 
 
3.6    Prepayment: Application of Payments. Borrower may prepay the outstanding Indebtedness of Borrower to
Bank under the Term Loan at any time, in whole or in part, without any prepayment penalty or premium. 
 
3.7    Term Loan Fee. Borrower shall pay Bank, at closing, a fee of $25,000.00 (the “Term Loan Fee”)
in consideration of Bank making the Term Loan. The Term Loan Fee shall be payable and deemed fully earned by Bank upon the execution of this Agreement. 

3.8    Default Rate and Late Charges. After the occurrence of
an Event of Default, the Indebtedness outstanding on the Term Loan shall thereafter bear interest at five percent (5%) per annum above the Term Loan Interest Rate (“Term Loan Default Rate”). In addition, Borrower shall pay, if
charged by Bank, a late charge of two percent (5%) of (i)any interest installment, (ii) ally principal payment, and (iii) any other charges under this Loan Agreement not paid in full on or before the expiration of the cure period described in
Section 10.1 (“Late Charge”). 
 
 
SECTION 4 
COLLATERAL 
 
4.1    Collateral. The repayment of
all of Borrower’s indebtedness to Bank shall be secured by first priority (except as may be agreed to by Bank prior to the date hereot) security interests (the “Security Interests”) in all accounts, general intangibles, inventory and
equipment (all such terms having the meanings given them in the Colorado Uniform Commercial Code) now owned or hereafter acquired by Borrower and Guarantors and in all proceeds thereof. The Security Interests shall be created and perfected by
security agreements, UCC-1 Financing Statements, assignments and any other collateral documents deemed necessary or advisable by Bank in its sole discretion, each in form satisfactory to Bank, duly executed by Borrower and Guarantors. Hereafter,
Borrower and Guarantors shall from time to time execute and deliver to Bank such other documents in form and substance satisfactory to Bank, and perform such other acts, as Bank may reasonably request, to perfect and maintain valid Security
Interests in the Collateral. In addition, Borrower hereby grants to Bank a security interest in all Borrower’s deposit accounts at Bank to secure all obligations of Borrower to Bank now or hereafter arising. 
 
 
SECTION 5 
REPRESENTATIONS AND WARRANTIES 
 
To induce Bank to enter into this Agreement, to extend the
Revolving Commitment and to make Advances hereunder and to make the Term Loan, Borrower and Guarantor, represent and warrant to Bank as of the date hereof, and as of each date on which Borrower receives any Advance, except as hereinafter expressly
provided, and unless Borrower and Guarantor have notified Bank, in writing, prior to or simultaneously with its submission of any Draw Request of any change in the facts covered thereby: 
 
5.1    Borrower Organization. Borrower is a Colorado corporation, duly organized
and incorporated and validly existing and in good standing under the laws of its state of organization, is qualified to do business in, and is in good standing under the laws of, each state in which it carries on business, and has all requisite
corporate power and authority to carry on its business as now conducted, to enter into, deliver and perform this Agreement and the other Loan Documents, to make and deliver the Notes and to perform its obligations under each Loan Document to which
the Borrower is a party. Borrower holds all certificates of authority, licenses and permits necessary to carry on its business as presently conducted (a) in each jurisdiction in which Collateral owned by it is located, and (b) in each other
jurisdiction in which it is carrying on such business, except where the failure to hold such certificates, licenses or permits would not have a material adverse effect on the business, operations, property, assets or condition, financial or
otherwise, of the Borrower. 

5.2    Borrower Authorization and Validity. The execution,
delivery and performance by the Borrower of each of the Loan Documents to which it is a party have been duly authorized by all necessary corporate action by the Borrower, and this Agreement constitutes, and the Line Note, the Term Note and such
other Loan Documents constitute, or when executed will constitute, the legal, valid and binding obligations of the Borrower, enforceable against the Borrower in accordance with their respective terms, subject to limitations as to enforceability
which might result from bankruptcy, insolvency, moratorium and other similar laws affecting creditors’ rights generally and subject to limitations on the availability of equitable remedies. 
 
5.3    Guarantor Organization. Each
Guarantor is a Minnesota corporation, duly organized and incorporated and validly existing and in good standing under the laws of the State of Minnesota, each is qualified to do business in, and is in good standing under the laws of, the state or
states in which each carries on business, and each Guarantor has all requisite corporate power and authority to carry on its business as now conducted, to enter into, deliver and perform this Agreement and the other Loan Documents to which the
Guarantor is a party. Each Guarantor holds all certificates of authority, licenses and permits necessary to carry on its business as presently conducted in each jurisdiction in which it is carrying on such business, except where the failure to hold
such certificates, licenses or permits would not have a material adverse effect on the business, operations, property, assets or condition, financial or otherwise, of the Guarantor. 
 
5.4    Guarantor Authorization and Validity. The execution, delivery and
performance by each Guarantor of each of the Loan Documents to which it is a party have been duly authorized by all necessary corporate action by such Guarantor, and each Loan Document to which a Guarantor is a party constitutes the legal, valid and
binding obligations of such Guarantor, enforceable against the Guarantor in accordance with its respective terms, subject to limitations as to enforceability which might result from bankruptcy, insolvency, moratorium and other similar laws affecting
creditors’ rights generally and subject to limitations on the availability of equitable remedies. 
 
5.5    No Violation of Other Agreements: No Default. The execution, delivery and performance by the Borrower
and Guarantors, as applicable, of the Loan Documents will not (a) violate any provision of any Governmental Regulation or any order, writ, judgment, injunction, decree, determination or award of any court, governmental agency or arbitrator presently
in effect having applicability to the Borrower or (3uarantors, (b) violate or contravene any provision of the Articles of Incorporation or Bylaws of the Borrower or Guarantors, or (c) result in a breach of, or constitute an event of default under,
any indenture, deed of trust, mortgage, loan or credit agreement, note or any other agreement, lease or instrument to which the Borrower or Guarantors is a party or by which it or any of its properties may be bound or result in the creation of any
lien or security interest thereunder. Neither the Borrower nor the Guarantors is in default under or in violation of any such Governmental Requirement, order, writ, judgment, injunction, decree, determination or award or any such indenture, loan or
credit agreement (other than indentures, loans or credit agreements which are nonrecourse to the debtor as to principal and interest) or other agreement, lease or instrument in any case in which the consequences of such default or violation could
have a material adverse effect on the business, operations, properties, assets or condition (financial or otherwise) of the Borrower or Guarantors. 

 
5.6    Government Consents. No order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by, any Governmental Entity is required on
the part of either the Borrower or Guarantors to authorize, or is required in connection with the execution, delivery and performance of, or the legality, validity, binding effect or enforceability of, the Loan Documents, except for any necessary
filing or recordation of or with respect to any of the Security Documents. 
 
5.7    Borrower and Guarantor Financial Statements and Condition. The financial statements of the Borrower and Guarantors delivered to the Bank in connection with this
transaction fairly present the financial condition of the Borrower and Guarantors as of the date of such statements. As of the dates of such financial statements, the Borrower or either Guarantor had no material obligation, contingent liability,
liability for taxes or long-term lease obligation which is not reflected in such financial statements or in the notes thereto. Since the date of such financial statements, there has been no material adverse change in the financial condition of the
Borrower or the Guarantors. 
 
5.8    Borrower Litigation. Except as disclosed on Exhibit D attached hereto and hereby made a part hereof, there are no actions, suits or proceedings pending or, to the knowledge of Borrower or
Guarantors, threatened against or affecting Borrower or Guarantors or any of their properties before any court or arbitrator, or any governmental department, board, agency or other instrumentality which, if determined adversely to the Borrower or
Guarantors, would have a material adverse effect on the business, operations, property or condition (financial or otherwise) of the Borrower or Guarantors or on the ability of Borrower or Guarantors to perform their respective obligations under the
Loan Documents to which they are a party. 
 
5.9    Capitalization of Borrower. All of the common stock heretofore issued by Borrower and Guarantors is validly issued. 
 
5.10    No Subsidiaries. There are no Subsidiaries or other subsidiaries owned
directly or indirectly by Borrower, other than those identified in Exhibit E attached hereto and incorporated herein by reference. 
 
5.11    Accuracy of Information. All reports, inventories, schedules, statements, verifications and other
information provided by Borrower and Guarantors to Bank pursuant to this Agreement shall, to the best of Borrower’s and Guarantors’ knowledge and belief, be true, accurate, complete and correct in all material respects as of the dates same
are provided to Bank. Borrower and Guarantors agree to promptly notify Bank in the event that any of such documentation or information is later discovered by Borrower or Guarantors to be materially inaccurate. 
 
5.12    Solvency. The. fair
value of Borrower’s assets is greater than its debts, and the fair value of Borrower’s assets will continue to be greater than its debts after the transactions contemplated in the Loan Documents. 
 
5.13    Good Faith.
Bankruptcy. This Agreement is executed in good faith by Borrower and Guarantors and is not given or intended to hinder, delay or defraud any creditor or to 

contravene any of the bankruptcy laws of the United States (11 U.S.C. Section 101 et seq.), or any other
applicable laws. As of the date of the execution of this Loan Agreement, neither Borrower nor either Guarantor is the subject of a pending bankruptcy case. Borrower and Guarantors are not aware of any threatened bankruptcy case, nor are Borrower or
Guarantors presently intending to file such a case. 
 
5.14    Environmental. Health and Safety Laws. Neither Borrower nor Guarantors have received notice of or have actual knowledge of any violation by Borrower or Guarantors of any applicable
Governmental Requirement or order of any government, governmental department, board, agency or other instrumentality relating to environmental, pollution, health or safety matters which will or threatens to impose a material liability on Borrower or
Guarantors or which would require a material expenditure by Borrower or Guarantors to cure. Neither Borrower nor Guarantors have received any notice to the effect that any part of Borrower’s operations or properties is not in material
compliance with any such Governmental Requirement or any order or notice that it or its property is the subject of any governmental investigation evaluating whether any remedial action is needed to respond to any release of any Hazardous Substance
into the environment, which non-compliance or remedial action could reasonably be expected to have a material adverse effect on the business, operations, properties, assets or condition (financial or otherwise) of Borrower or Guarantors.

 
5.15    Federal
Reserve Regulations. Neither Guarantors nor Borrower is engaged principally or as one of its important activities in the business of extending credit for the purpose of purchasing or carrying margin stock (as defined in Regulation U of the
Board). The value of all margin stock owned by Guarantors and by Borrower does not constitute more than twenty-five percent (25%) of the value of the assets of the Guarantors or Borrower. 
 
5.16    Taxes. Borrower and
Guarantors have filed all federal, state and local tax returns required to be filed and has paid or made provision (as required by GAAP) for the payment of all taxes due and payable pursuant to such returns and pursuant to any assessments made
against it or any of its property and all other taxes, fees and other charges imposed on it or any of its property by any governmental authority (other than taxes, fees or charges the applicability, amount or validity of which is currently being
contested in good faith by appropriate proceedings and with respect to which reserves in accordance with GAAP have been provided on the books of the Borrower or Guarantors). No tax liens have been filed and no material claims are being asserted with
respect to any such taxes, fees or charges. The charges, accruals and reserves on the books of the Borrower and Guarantors in respect of taxes and other governmental charges are adequate, and Borrower and Guarantors know of no proposed material tax
assessment against it or any basis therefor. 
 
5.17    Trademarks. Patents. The Borrower possesses or has the right to use all of the patents, trademarks, trade names, service marks and copyrights, and applications therefor, and all technology,
know-how, processes, methods and designs used in or necessary for the conduct of its business, without known conflict with the rights of others. 
 
5.18    Representations and Warranties Continuing. Each request by Borrower for an Advance shall
constitute an affirmation on the part of Borrower that the representations and warranties contained in this SECTION 5 are true and correct as of the time of such request as to 

itself and Guarantors except as otherwise previously disclosed to Bank in a notice. All representations
and warranties made in this Agreement shall be continuing so long as Bank has any commitment to lend to Borrower hereunder and until the Loans and all Indebtedness of Borrower to Bank under this Agreement have been paid in full and all of
Borrower’s Obligations under this Agreement have been fully discharged. 
 
 
SECTION 6 
AFFIRMATIVE COVENANTS 
 
Borrower covenants and agrees with Bank as follows: 
 
6.1    Payment of Taxes and Claims. To promptly file all tax returns and reports ~. which are required by law to be filed by it and pay promptly all lawful taxes and assessments imposed upon
Borrower or Borrower’s assets, including without limitation federal, state and local employee benefits and taxes, income taxes, sales or use taxes, general and special assessments; to pay promptly all claims for labor and materials furnished
with respect to any property of the Borrower and to prevent the filing of liens therefor; provided, however, that Borrower need not pay any such tax or claim so long as the validity thereof is being contested in good faith and provision for the
payment thereof is made in form and manner satisfactory to Bank, and as long as Borrower’s title to its property is not materially adversely affected, its use of such property in the ordinary course of its business is not materially interfered
with. 
 
6.2    Inspections
- Books and Records. To permit the duly authorized agents of Bank at any reasonable time to enter upon and inspect the books and records of Borrower during normal business hours. 
 
6.3    Inspections. To permit the duly authorized agents of Bank, no less
frequently than once in every twelve (12) month period, to conduct an examination, appraisal, or other inspection of the Collateral. Borrower and Guarantors shall reasonably cooperate with Bank, make such Collateral reasonably available to Bank for
such examinations, and pay upon demand such reasonable fees and costs Bank may incur in conducting the examinations, appraisals, or other inspections. 
 
6.4    Headquarters. Borrower shall maintain its headquarters in the State of Colorado. 
 
6.5    Notice to Bank. To
advise Bank promptly of any Unmatured Event of Default, Event of Default or any notices by any lien or other claimant received by Borrower or Guarantors affecting title to Borrower’s property. 
 
6.6    Complying with the Loan
Documents and Other Documents. To comply with and perform all of its agreements and obligations under the Loan Documents, and under all other contracts and agreements to which Borrower is a party and all Governmental Requirements relating to the
ownership, occupancy, use, development, construction or management of Borrower’s property (unless Borrower’s obligation to comply therewith is being contested by Borrower in good faith, with due diligence and in compliance with all
applicable requirements, if any, relating to such contests set forth in the Loan Documents). 

 
6.7    Existence. To maintain its corporate existence in good standing under the laws of its jurisdiction of formation and its qualification to transact business in each jurisdiction where failure to
qualify would permanently preclude Borrower from enforcing its rights with respect to any material asset or would expose Borrower to any material liability. 
 
6.8    Compliance. To comply with all Governmental Requirements and all orders, writs, judgments, injunctions,
decrees or awards to which it may be subject; provided, however, that failure to comply shall not be a breach of this covenant if such failure does not relate to any Collateral and does not have, or is not reasonably expected to have, a materially
adverse effect on the properties, business, prospects or condition (financial or otherwise) of the Borrower or Guarantors, and Borrower or Guarantors are acting in good faith and with reasonable dispatch to cure such noncompliance. 
 
6.9    Notice of Litigation. To
give prompt written notice to Bank of the commencement of any action, suit or proceeding before any court or arbitrator or any governmental department, board, agency or other instrumentality affecting it or its property or to which it is a party,
stating the nature and status of such action, suit or proceeding, if the potential liability that is not covered by insurance in any such action, suit or proceeding could reasonably be expected to exceed $100,000.00. 
 
6.10    Notices ofDefault. To give
Bank prompt written notice upon the occurrence of any event which constitutes an Unmatured Event of Default or an Event of Default hereunder. 
 
6.11    Lockbox. To establish, pursuant to separate written service agreement between Borrower and Bank, a
lockbox into which Borrower shall direct all payments from all present and future account debtors of Borrower. Borrower shall pay Banks regular and customary fee for such lockbox service. 
 
 
SECTION 7 
NEGATIVE COVENANTS 
 
Borrower and Guarantors covenant and agree with Bank as follows: 
 
7.1    Organizational Matters. Borrower shall not change its form or suffer its
life or ‘— power to expire or become impaired. 
 
7.2    No Assignment. Borrower shall not assign this Agreement, any of the Loan Documents or any interest in disbursements or Advances to be made hereunder. Any attempted assignment shall be void and shall
constitute an Event of Default under the Loan Documents. 
 
7.3    Sales. Mergers, and other Fundamental Changes. Except as may be permitted by the Bank in its reasonable discretion, Borrower and Guarantors shall not cause, suffer or permit, voluntarily or
involuntarily, Borrower or Guarantors, or a Subsidiary of either to enter into or offer or agree to: (a) any sale, lease, sublease, assignment, transfer, conveyance, exchange, spin off or other disposition of, individually or in a series of related
transactions, assets or properties of Borrower or its Subsidiary except in the ordinary course of business; or (b) any purchase or 

other acquisition by Borrower or any of its Subsidiaries of all or substantially all of the business,
property or assets of, or equity interest in, any person or entity. 
 
7.4    Nature of Business. Borrower and Guarantors shall not cause, suffer or permit itself or any Subsidiary to enter into or offer or agree to enter into one or more businesses or investments
other than audio, video, data and internet conferencing services and related businesses, without bank’s prior written consent. 
 
7.5    Guarantees. Borrower and Guarantors shall not guarantee, directly or indirectly, the debt of any
entity other than Borrower or a Subsidiary without the prior consent of the Bank, which consent shall not be unreasonably withheld. 
 
7.6    Merger. Borrower shall not merge or consolidate or enter into any analogous reorganization or
transaction with any Person, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution). 
 
7.7    Negative Pledges. Borrower and Guarantors shall not enter into any agreement, bond, note or other
instrument with or for the benefit of any Person other than Bank which would prohibit Borrower from granting, or otherwise limit the ability of Borrower to grant, to Bank any lien on any Collateral. 
 
7.8    Secured Indebtedness.
Borrower or Guarantors shall not directly or indirectly make, create, incur, assume or permit to exist any assignment, pledge, mortgage, security interest or other lien or encumbrance of any nature in, to or against the Collateral, other than the
lien created by the Security Documents or such liens or encumbrances as are expressly permitted by Bank. 
 
7.9    Loan Proceeds. Borrower shall not use any part of the proceeds of the Loans or any Advance directly or
indirectly, and whether immediately, incidentally or ultimately, (a) to purchase or carry margin stock (as defined in Regulation U of the Board) or to extend credit to others for the purpose of purchasing or carrying margin stock or to refund
Indebtedness originally incurred for such purpose, or (b) for any purpose which entails a violation of, or which is inconsistent with, the provisions of Regulations G, U or X of the Board. 
 
 
SECTION 8 
FINANCIAL COVENANTS 
 
8.1    Special Definitions. In this Article, the following terms shall have the following meanings as to any
Person: 
 
(a) Adjusted Debt to
Net Worth Ratio shall be the quotient of dividing (a) Liabilities less Subordinated Indebtedness by (b) the difference of (i) the sum of Net Worth plus Subordinated Indebtedness and (ii) Intangible Assets. 
 
(b) Assets. Shall have the meaning
given such term in accordance with GAAP. 

 
(c) Capital Expenditure. Shall mean an expenditure for an Asset that must be depreciated or amortized under GAAP, for goodwill, or for any Asset that under GAAP must be treated as a capital asset. The term “Capital
Expenditure” shall exclude fixed Assets (a) acquired in any acquisition, and (b) which are financed through a Capital Lease or through purchase money Indebtedness. 
 
(d) Capital Lease. Shall mean any lease that has been or should be capitalized under
GAAP. 
 
(e) Debt Service
Coverage Ratio. Shall mean, for any period of calculation, the quotient of dividing (a) EBITDA by (b) Mandatory Debt Retirement and Interest Payments. 
 
(f) EBITDA. Shall mean, for any period of calculation, an amount equal to the sum of (i) Net Income, (ii) federal,
state and local income tax expense, (iii) Interest Expense, (iv) losses on the sale or other disposition of assets, (v) depreciation, (vi) amortization, and (vii) extraordinary losses, minus (a) gains on the sale or other disposition of assets
outside of the ordinary course of business, and (b) extraordinary gains, each calculated for such period. 
 
(g) Indebtedness. Shall mean, as to any Person at any particular date, any contractual obligation enforceable
against such Person (i) to repay borrowed money; (ii) to pay the deferred purchase price of property or services; (iii) with respect to which there is any security interest in any property of such Person; (iv) to make any payment or contribution to
a Multi-Employer Plan; (v) that is evidenced by a note, bond, debenture or similar instrument; and (vi) under any conditional sale agreement or title retention agreement. 
 
(h) Indirect Obligation. Shall mean, as to any Person, (a) any guaranty by such Person
of any obligation of another Person; (b) any security interest in any property of such Person that secures any obligation of another person; (c) any enforceable contractual requirement that such person (i) purchase an obligation of another Person or
any property that is security for such obligation; (ii) advance or contribute funds to another Person for the payment of an obligation of such other Person or to maintain the working capital, net worth or solvency of such other Person as required in
any documents evidencing an obligation of such other Person; (iii) purchase property, securities or services from another person for the purpose of assuring the beneficiary of any obligation of such other Person that such other Person has the
ability to timely pay or discharge such obligation; (iv) grant a security interest in any property of such Person to secure any obligation of another Person; or (v) otherwise assure or hold hannless the beneficiary of any obligation of another
Person against loss in respect thereof; and (d) any other contractual requirement enforceable against such person that has the same substantive effect as any of the foregoing. The term “Indirect Obligation” does not, however, include the
endorsement by a Person of instruments for deposit or collection in the ordinary course of business or the liability of a general partner of a partnership for obligations of such partnership. The amount of any Indirect Obligation of a Person shall
be deemed to be the stated or detenninable amount of the obligation in respect to which such Indirect Obligation is made or, if not stated or determinable, the maximum reasonable anticipated liability in respect thereof as determined by such Person
in good faith. 

 
(i) Intangible Assets. Means: (a) patents, copyrights, trademarks, tradenames, franchise, license agreements, goodwill, and other similar intangibles; (b) unamortized debt discount and expenses; and (c) fixed assets to the
extent of any write-up in the book value thereof resulting from a revaluation effective after the date of this Loan Agreement. 
 
(j) Interest Expense. Means, for any period of calculation, all interest, whether paid in cash or accrued as a
liability, without duplication, on Indebtedness or Indirect Obligations of any Person during such period. 
 
(k) Liabilities. Shall have the meaning given that term in accordance with GAAP. 
 
(1) Mandatory Debt Retirement. Shall
mean, at any date of determination, the sum of all mandatory payments of principal due during the period of twelve (12) months from the date of determination. 
 
(m) Mandatory Debt Retirement and Interest Payments. Shall mean, at any date of determination, the sum of all
mandatory payments of principal and interest due during the period of twelve (12) months from the date of determination. 
 
(n) Net Income. Shall have the meaning given that term in accordance with GAAP. 
 
(o) Net Worth. Means, as of any date,
total Assets of the Person as determined in accordance with GAAP, minus Liabilities. 
 
(p) Senior Indebtedness. Shall mean any Indebtedness of Borrower that is not Subordinated Indebtedness.

 
(o) Subordinated
Indebtedness. Shall mean as of any date, any Indebtedness of Borrower that is expressly subordinated to the Indebtedness owed by Borrower to the Bank. 
 
8.2    Borrower’s Financial Covenants. Until the Loans and all indebtedness hereunder have been paid in
full and all Obligations hereunder have been fully discharged, Borrower covenants and agrees as follows: 
 
(a) Debt Service Coverage Ratio. Debt Service Coverage Ratio, as determined quarterly on a rolling four (4) Loan
Quarter basis (“Senior Cash Flow Coverage Ratio”), shall not fall below 1.5:1. The initial determination shall be made for the Loan Quarter ending December 31, 2002. For such initial Loan Quarter ending December 31, 2002, the
determination shall be based on the two Loan Quarters ending September 30, 2002 and December 31, 2002. Commencing with the Loan Quarter ending June 30, 2003, the Debt Service Coverage Ratio shall not fall below 1.75:1. 
 
(b) Minimum Net Worth. Borrower shall
not cause, suffer or permit Borrower’s Net Worth to fall below $30,000,000.00 (“Minimum Net Worth”). Such Minimum Net Worth requirement shall increase each Loan Quarter, commencing with the Loan Quarter 

 
ending March
31, 2003, an amount equal to 50% of Borrower’s quarterly Net Income for the previous Loan Quarter. In the event that Net Income shall be negative for any Loan Quarter, Borrower’s Minimum Net Worth requirement shall remain unchanged.

 
(c) Adjusted Debt to Net
Worth Ratio. Borrower shall not cause, suffer or permit Borrower’s Adjusted Debt to Net Worth Ratio to exceed 1.5:1. 
 
(d) Maximum Capital Expenditures. Borrower shall not incur a Capital Expenditure in excess of $3,000,000 per annum
without the prior written consent of the Bank. 
 
(e) Investment Account. Borrower shall maintain its primary operating, cash management and investment accounts with Bank. 
 
8.3    Financial Statements and Other Reports. Borrower and Guarantors shall cause the following to be
delivered to Bank: 
 
(a)
Audited Annual Statements. Within ninety (90) days after the end of each fiscal year of the Borrower, annual audited financial statements of Borrower, prepared on a consolidated basis, showing the financial condition of Borrower as of the
close of such fiscal year and the results of its operations during such year, all the foregoing financial statements to be audited by independent accountants reasonably acceptable to Bank and to include the statement of such independent accountants
that such financial statements present fairly the financial position and results of operations of the Borrower, and have been prepared in accordance with GAAP, together with Borrower’s income and expense projections for the current fiscal year.

 
(b) Monthly Statements.
Within forty-five (45) days after the end of each Loan Quarter, balance sheets and statements of income, showing the financial condition and results of operations of Borrower as of the end of each such Loan Quarter and for the then elapsed
portion of the fiscal year, prepared in accordance with GAAP consistently applied, in each case subject to normal year-end adjustments. 
 
(c) Tax Returns. Within ten (10) days of filing, a copy of Borrower’s federal and state income tax returns,
with all exhibits, schedules and addenda. 
 
(d) Accounts Receivable Aging. Within fifteen (15) days after the end of each month, a report of Borrower’s accounts receivable, in form and substance satisfactory to Bank. 
 
(e) Unbilled Accounts Receivable.
Within fifteen (15) days after the end of each month, a report of Borrower’s unbilled accounts receivable, in form and substance satisfactory to Bank. 
 
(f) Borrowing Base Certificate. As soon as available, and in any event within fifteen
(15) days after the end of each month, a Borrowing Base Certificate in the form of Exhibit B. 

 
(g) Compliance Certificate. Within forty-five (45) days after the end of each Loan Quarter, a Compliance Certificate in the form of Exhibit C. 
 
(h) Other Information. From time to time, with reasonable promptness, such further
information regarding the business, operations, properties or financial condition of Borrower and Guarantors as Bank may reasonably request. 
 
 
SECTION 9 
REQUIREMENTS OF CLOSING 
 
9.1    Closing Documents. On or before the Closing Date, Borrower shall deliver to Bank, or obtain the delivery
to Bank of the following items, all in form and substance satisfactory to Bank in its reasonable discretion, at the expense of Borrower: 
 
(a) This Agreement, duly executed by Bank, Borrower and Guarantors; 
 
(b) The Notes, duly executed by Borrower and
Guarantors; 
 
(c) The Security
Documents, duly executed by Bank, Borrower and Guarantors; 
 
(d) A Deposit Account Agreement executed by Borrower and Bank; 
 
(e) The Entity Documents described in Section 9.3; 
 
(f) The legal opinions of Borrower’s counsel described in Section 9.4; 
 
(g) A Subordination and Standstill Agreement
executed by David Holden, Leonard Walter Holden and Rondal Neil Holden; 
 
(h) A Subordination and Standstill Agreement executed by Sirrom Capital Corporation and Equitas, L.P.; 
 
(i) Resolutions and authorizations of Borrower, satisfactory to Bank, authorizing the Loans; 
 
(j) Current certified financial information
for Borrower and Guarantors; 
 
(k)
The Line Fee and Term Loan Fee; 
 
(1) Such other documents and information as Bank may reasonably require. 
 
9.2    Loan Expenses. Borrower shall be solely responsible for all costs and expenses of Bank, if any, in connection with the preparation, execution and delivery of this Loan
Agreement and the other Loan Documents, and, subsequently, with respect to any modification, amendment, extension, restatement or other transaction related thereto, including, but not limited to, documentary and other taxes, recording costs and
expenses, lockbox fees, copying, mailing, long 

distance telephone and reasonable attorneys fees of Bank, surveys, premiums for Title Policies and
endorsements thereto, insurance premiums and license and permit fees. Borrower shall indemnify and hold harmless Bank from and against any and all costs, losses, liabilities and expenses arising in connection with any of the foregoing and shall
reimburse Bank for the same or pay directly the same on or before the fifteenth (15th) Business Day after receipt of any statement rendered by Bank to Borrower with respect thereto; provided, however, that such fees and costs incurred prior
to the Closing Date shall be payable on the Closing Date. Borrower hereby acknowledges that, if any such amounts are not timely paid, Bank, at Bank’s option, may use proceeds of the Loans or make Advances under the Line Loan to satisfy any or
all of such costs, expenses and fees. 
 
9.3    Entity Documents. On or before the Closing Date, Borrower and Guarantor, respectively, shall provide Bank with the following information with respect to each: 
 
(a) Certificate of good standing from the
corporation’s state of incorporation and the State of Colorado; 
 
(b) Resolution of the Board of Directors authorizing it to enter into this Loan Agreement and to execute and deliver the Loan Documents to be delivered by it and designating certain named persons to
execute the documents on its behalf, certified by its corporate secretary or assistant secretary; 
 
(c) Incumbency certificate for the corporation’s officers, certified by its corporate secretary or assistant
secretary; 
 
(d) Articles of
Incorporation and Bylaws, and any amendments certified by its corporate secretary or assistant secretary; and 
 
(e) Such other documents as Bank may reasonably request. 
 
9.4    Legal Opinion of Borrower’s and Guarantors’ Counsel. On or before
the Closing Date, Borrower and Guarantors’ shall supply Bank with an opinion of counsel, in form and content satisfactory to Bank, stating that (a) counsel has reviewed the Loan Documents; (b) Borrower and Guarantors have the authority to enter
into this transaction and all actions required for such authorization have been duly and validly taken; (c) all Loan Documents executed by Borrower and Guarantors are valid and binding obligations of Borrower and Guarantor, respectively, fully
enforceable in accordance with their respective terms, under all applicable laws, subject to customary qualifications and assumptions acceptable to the Bank; (d) Borrower and Guarantors are duly organized, existing, and in good standing under the
laws of the jurisdictions in which each is incorporated and have duly qualified to transact business in all states in which it transacts business or its property is located, except where the failure to be so qualified would not have a material
adverse effect on the business, operations, property, assets or condition, financial or otherwise, of the Borrower or the Guarantors, respectively; and (e) any other matters reasonably requested by Bank, if any. 

 
SECTION 10

EVENTS OF DEFAULT 
 
The occurrence of any of the following events or conditions shall constitute an Event of Default by Borrower under this Loan Agreement and
under all other Loan Documents: 
 
10.1    Non-Payment. The non-payment of any installment of principal, interest or other amount due under this Agreement when due, or the nonpayment of any amounts due under the Loans on the date the unpaid
principal balance of the Loans become fully due and payable. 
 
10.2    Cross-Default. The occurrence of a default not cured within any applicable cure period under the terms of any material indebtedness of Borrower or its Subsidiaries to the Bank other than the Loans.

 
10.3    Financial
Condition. Borrower or Guarantors shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding
shall be instituted by Borrower or Guarantors seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a custodian, receiver, trustee, or other similar official for it or for any substantial and material part of its
property; or Borrower or Guarantors shall take any action to authorize any of the actions set forth above in this Section 10.3. 
 
10.4    Involuntary Bankruptcy. The commencement of a proceeding against Borrower or Guarantors seeking to
adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of
debtors, or seeking the entry of an order for relief or the appointment of a custodian, receiver, trustee, or other similar official for it or for any substantial part of its property that is not stayed or dismissed within ninety (90) days after
receipt by Borrower or Guarantors of written notice thereof. 
 
10.5    Breach of Warranty. Any representation or warranty made by Borrower or Guarantors in this Loan Agreement or the other Loan Documents or in any certificate delivered to Bank pursuant to any of the
Loan Documents shall have been false or misleading in any material respect and (a) shall have been known to be such at the time made; or (b) Borrower or Guarantors shall fail to so inform Bank as soon as reasonably possible after Borrower or
Guarantors learns of the false or misleading nature of such representation or warranty; or (c) Bank shall have delivered to Borrower or Guarantors written notice that an Event of Default has been declared based on such false or misleading
representation or warranty. The failure of Bank to declare an Event of Default with respect to any false or misleading representation or warranty shall not constitute a waiver of Bank’s right to declare an Event of Default with respect to any
other false or misleading representation or warranty. 
 
10.6    Financial Reporting. Borrower or Guarantors shall fail to deliver to the Bank the financial reports described in Section 8.3 on or before the dates specified for delivery of such reports.

 
10.7    Financial Covenant Default. Borrower shall fail to comply with the financial covenants contained in SECTION 8 hereof or in the Bank’s judgment, reasonably exercised, the overall financial
condition of Borrower or Guarantors or the total value of the security for the Loans is affected in a material adverse manner (“Financial Covenants”). 
 
10.8    Other Default. Borrower fails to comply with any covenant or agreement
contained in this Loan Agreement, or in any other Loan Document (other than those events described in Sections 10.1 through 10.7) and such failure or breach remains uncured beyond the applicable cure period provided with respect to the covenant or
agreement, if any. 
 
 
SECTION 11 
BANK’S RIGHTS AND REMEDIES 
 
Upon the occurrence of an Unmatured Event of Default or an
Event of Default, as specified, and subject to the specific provisions of Section 11.3, Bank may exercise any or all of the following rights and remedies: 
 
11.1    Terminate Advances. Bank may refuse to make further Advances under this Agreement upon the occurrence
of any Unmatured Event of Default or Event of Default after notice to Borrower of such Unmatured Event of Default or Event of Default; provided, however, that Bank will not refuse to make further Advances as a consequence of an Unmatured Event of
Default so long as Borrower is diligently pursuing cure of the Unmatured Event of Default pursuant to a proposed cure which has received the Bank’s written approval and the time period for cure under this Agreement has not expired. If an
Unmatured Event of Default occurs, Bank shall have the right to cease honoring Advance requests and funding Advances under the Note, with or without declaring an Event of Default, and, without declaring an Event of Default, even if the permitted
grace periods have expired. 
 
11.2    Accelerate Indebtedness. Upon the occurrence of an Event of Default, any outstanding Indebtedness of Borrower to Bank under the Loan Documents, together with all accrued interest thereon and all
other sums payable in connection therewith, may be declared immediately due and payable by written notice from Bank to Borrower, without presentment, demand, protest or other requirements of any kind (other than such written notice), all of which
are hereby expressly waived by Borrower. 
 
11.3    Automatic Acceleration. Should there occur an Unmatured Event of Default which would, with the giving of notice, the passage of time, or both, constitute an Event of Default hereunder and if a
petition under the United States Bankruptcy Code thereafter is filed by or against Borrower while such event remains uncured, all obligations hereunder shall be automatically accelerated and due and payable and the default rate of interest provided
for herein shall automatically apply as of the date of the first occurrence of the event which would, with the giving of notice, the passage of time, or both, constitute an Event of Default, without any notice, demand or action of any type on the
part of Bank (including any action evidencing the acceleration or imposition of the default rate of interest). The fact that the Bank has, prior to the filing of the voluntary petition under the United States Bankruptcy Code, acted in a manner which
is inconsistent with the acceleration and imposition of the default rate of interest provided 

for in the Note, shall not constitute a waiver of this Section 11.3 or estop Bank from asserting or
enforcing Bank’s rights hereunder. 
 
11.4    Accelerate Commitment Expiration Date. Upon the occurrence of an Event of Default, the Bank shall be entitled to accelerate the then-effective Commitment Expiration Date to the date specified by
written notice from the Bank to Borrower. 
 
11.5    Rights. Remedies. Powers. Each and every right, remedy and power granted to Bank under the Loan Documents shall be cumulative and in addition to every other right, remedy or power herein
specifically granted or now or hereafter existing in equity, at law, by statute or otherwise and may be exercised by Bank from time to time, concurrently or independently, and as often and in such order as Bank may deem expedient. No failure or
delay on the part of Bank in exercising any such right, remedy or power, and no abandonment or discontinuance of steps to enforce the same, shall operate as a waiver thereof or affect Bank’s right thereafter to exercise the same or any other
exercise of such right, remedy or power. In the event Bank shall have proceeded to enforce any such right, remedy or power and such proceeding shall have been determined adyersely to Bank, then in each such event Borrower, Guarantors and Bank shall
be restored to their former positions, taking into account such adverse determination, and all other rights, remedies and powers of Bank shall continue as if no such proceedings had been taken. 
 
11.6    Other Rights. Bank may
exercise any right contained in any Loan Document and any rights and remedies permitted by law or in equity. 
 
11.7    Proof of Sums Due on Any Note. In any action or proceeding brought by Bank to collect the sums owed
under the Note, a certificate signed by an officer of Bank setting forth the unpaid balances of principal, and any accrued interest, default interest, attorneys’ fees and late charges owed shall be prima facie evidence of the accuracy of the
same and shall be admissible in evidence for the purpose of establishing the truth of what it asserts. 
 
11.8    Costs and Expenses. Borrower and Guarantors shall pay all costs and expenses, including, without
limitation, costs of title searches and title policy commitments, appraisals, environmental audits, foreclosure certificates, uniform commercial code searches, court costs and reasonable attorneys’ fees of Bank incurred in enforcing payment and
performance of the Loans and the other indebtedness and obligations of Borrower under the Loan Documents or in exercising the rights and remedies of Bank under the Loan Documents or in the negotiation or documentation of any further material
amendment or modifications of the Loan Documents. All such costs and expenses shall be secured by the Loan Documents. Borrower shall indemnify and hold harmless Bank from and against any and all costs, losses, liabilities and expenses arising in
connection with any of the foregoing and shall reimburse Bank for the same upon demand. 
 
11.9    Participation. Bank shall have the right, without the consent of the Borrower, to sell participations to one or more other lenders (a “Participant”) in or
to all or a portion of its rights and obligations under the Loans and the Loan Documents; provided, however, that (i) Bank’s obligations under this Agreement (including without limitation its Revolving Commitment to Borrower hereunder) shall
remain unchanged, (ii) Bank shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) the Borrower 

shall continue to deal solely and directly with the Bank in connection with Bank’s rights and
obligations under this Agreement and with regard to any and all payments to be made under this Agreement, and (iv) the holder of any such participation shall not be entitled to voting rights under this Agreement or the other Loan Documents (but such
holder may contract with the Bank selling such Participant its interest in Bank’s share of the Loans as to voting of Bank’s interest), provided that any such agreement by Bank shall bind only such Participant and Bank alone and not
Borrower, the other Participants or the Bank as administrative agent). 
 
11.10    Information. Borrower and Guarantors acknowledge and agree that the Bank may provide to any Participant originals or copies of this Agreement, any other Loan Document and any other
documents, instruments, certificates, opinions, insurance policies, letters of credit, reports, requisitions and other materials and information of every nature or description, and may communicate all oral information, at any time submitted by or on
behalf of Borrower or Guarantors or received by the Bank in connection with the Loans or with respect to Borrower or Guarantors, provided that prior to any such delivery or communication, such Participants shall agree to preserve the confidentiality
of any of the foregoing to the same extent that the Bank agreed to preserve such confidentiality. In order to facilitate sales to Participants, Borrower shall execute such further documents, instruments or agreements as the Bank may reasonably
require; provided, that Borrower shall not be required (i) to execute any document or agreement which would materially decrease its rights, or materially increase its obligations, relative to those set forth in this Agreement or any of the other
Loan Documents (including financial obligations, personal recourse, representations and warranties and reporting requirements), or (ii) to expend more than incidental sums of money or incidental administrative time for which it does not receive
reasonable reimbursement in order to comply with any requests or requirements of the Bank in connection with such assignment or sale arrangement. In addition, Borrower agrees to cooperate fully with Bank in the exercise of Banks’ rights
pursuant to this Section including providing such information and documentation regarding Borrower as any potential Participant may reasonably request and to meet with potential Participants. 
 
 
SECTION 12 
OTHER TERMS AND CONDITIONS 
 
12.1    Legal Representation. Bank
shall have the right to commence or to appear in or to defend any actions or proceedings affecting or purporting to affect the rights or duties of Bank under the Loan Documents. Borrower shall promptly pay all costs and expenses including, without
limitation, reasonable attorneys’ fees, incurred by Bank in exercising its rights under this Section 12.1 subject to the limitations specified in Section 12.5. 
 
12.2    Governing Law: Submission to Jurisdiction. This Loan Agreement, the Notes
and any and all other Loan Documents shall be governed by and construed in accordance with the law of the State of Colorado. Each of Bank, Borrower and Guarantors hereby consent to the exercise of jurisdiction over it by any federal court sitting in
Colorado or any Colorado District Court in the Denver, Colorado, metropolitan area selected by Bank, for the purposes of any and all legal proceedings arising out of or relating to the Loans, this Loan Agreement and all other Loan Documents. Each of
Bank, Borrower and Guarantors irrevocably waive, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of venue of any such proceeding brought in any such court, any claim based on the consolidation
of 

proceedings in such courts in which proper venue may lie in divergent jurisdictions, and any claim that
any such proceeding brought in any such court has been brought in an inconvenient forum. 
 
12.3    Bank’s Rights Optional. Wherever in the Loan Documents Bank is authorized or given the right to take any action, Bank may exercise or refrain from exercising
such right at its sole option and shall not be obligated to exercise such right. Bank shall not be liable for any failure to exercise any such right or for any delay in exercising any such right. 
 
12.4    Modification. Waiver. Consent.
Failure to Exercise. No modification or waiver of any provision of this Loan Agreement or any Loan Document, and no consent to any departure by Borrower therefrom, shall be effective or binding Bank unless the same is made in writing and signed
by Bank. Any such modification, waiver or consent made in writing by Bank shall be effective only in the specific instance and for the specific purpose given, and no such waiver, modification or consent shall be a waiver, modification or consent for
any other purpose, or for the same purpose in any other instance. No notice to or demand on Borrower not specifically required of Bank under any Loan Document shall entitle Borrower to any other or further notice or demand in the same, similar or
other circumstances. No failure by Bank to exercise any right or remedy under any circumstance shall impair the right of Bank to the exercise of such right or remedy or any other right or remedy in that circumstance or in any other circumstance. No
Advance made under this Agreement and no other continued performance by Bank hereunder shall constitute a waiver of (a) any of the conditions to Bank’s obligations to make further Advances or otherwise continue its performance, (b)any right of
Bank to suspend its performance, or (c) any right or remedy available to Bank. If Borrower is unable to satisfy any such condition, no waiver of such condition shall have the effect of precluding Bank from thereafter declaring a subsequent similar
inability to be an Uninatured Event of Default or an Event of Default, as the case may be. 
 
12.5    Indemnification. Borrower and Guarantors shall indemnify and hold Bank harmless from and against all claims, costs, expenses, actions, suits, proceedings, losses,
damages and liabilities of any kind whatsoever, including but not limited to reasonable attorneys fees and expenses, arising out of any matter relating, directly or indirectly, to the Loans, to the ownership or sale of the Collateral, whether
resulting from internal disputes of Borrower, disputes between Borrower, Guarantors and/or any Affiliate or Related Entity, or whether involving other third persons or entities, including, without limitation, construction contractors, or out of any
other matter whatsoever related to this Agreement, the Loan Documents, or any property encumbered thereby, including, without limitation, mechanic’s liens, nonpayment of taxes and construction defects, but excluding any claim or liability which
arises out of any regulatory violation by Bank or Participants or any of them, which arises out of any disputes between Participants, Bank or any of them or which is the result of the gross negligence or willful misconduct of Bank or a successful
suit against the Bank for breach of Bank’s obligations under this Agreement. This indemnity provision shall continue in full force and effect and shall survive not only the making of the Loans and all Advances but shall also survive the
repayment of the Loans and the performance of all of Borrower’s other obligations hereunder. 

 
12.6    Notices. Any notice, request, demand, consent, approval, bill, invoice or other communication required or permitted under the Loan Documents (a “notice”) shall be in writing and will be
deemed given (a) upon personal delivery or upon confirmed transmission by telecopier and similar facsimile transmission device, (b) on the first Business Day after receipted delivery to a courier service which guarantees next-business-day delivery,
or (c) on the day of actual receipt after mailing by United States first class mail, registered or certified, postage prepaid, addressed to the party for whom it is intended at the following addresses: 
 
If to Borrower: 
ACT Teleconferencing, Inc. 
1658 Cole Blvd., Suite 130 
Golden, Colorado 80401 
Telecopy No.: (303) 233-0895 
Attn: Gavin Thompson 
 
With Copy to: 
Faegre and Benson 
2500 Republic Plaza 
370 Seventeenth Street 
Denver, CO 80202 
Attention: William J. Campbell, Esq. 
Telecopy No.: (303 607-3600 
 
If to Guarantors 
ACT Videoconferencing, Inc. 
1658 Cole Blvd. Suite 130 
Golden, Colorado 80401 
Telecopy No.: (303) 233-0895 
Attn: Gavin Thompson 
 
ACT Teleconferencing Service, Inc. 
1658 Cole Blvd., Suite 130 
Golden, Colorado 80401 
Telecopy No.: (303) 233-0895 
Attn: Gavin Thompson 
 
With Copy to: 
Faegre and Benson 
2500 Republic Plaza 
370 Seventeenth Street 
Denver, CO 80202 
Attention: William J. Campbell 
Telecopy No.:              
 
If to Bank: 
Vectra Bank Colorado, National Association 
2000 South Colorado Boulevard, Suite 2-1200 
Denver, Colorado 80222 
Telecopy No.: 720-947-7760 
Attention: Steven Griffith 

With a copy to: 
Gorsuch Kirgis LLP 
Tower One, Suite 1000 
1515 Arapahoe Street 
Denver, Colorado 80202 
Telecopy No.: 303-376-5001 
Attention: Randall F. Komisarek, Esq. 
 
Any party may change its address or the person designated to receive any
notice by giving ten (10) days’ prior written notice of such change to the other parties in the manner above prescribed. 
 
12.7    Non-Business Day: Computation of Time. If any action under the Loan Documents is to occur on a holiday
or other day that is not a Business Day, then such action shall occur on the next Business Day. In computing any period of time under the Loan Documents by days, the date of the act, event or default from which the designated period of time begins
to run shall not be included but the last day of the period so computed shall be included. If the last day of the period is not a Business Day, the period shall run until the end of the next day that is a Business Day. 
 
12.8    Time of Essence. Time is of
the essence of each and every provision of the Loan Documents. 
 
12.9    Exhibits. Exhibits A through E attached to this Loan Agreement are incorporated in and made a part of this Loan Agreement. 
 
12.10    Severability; Titles. This Agreement is intended as the complete
integration of understandings between the parties with respect to the matters described in this Agreement, the Loan Documents and documents and instruments described in this Agreement and contains material terms bargained-for by the parties. If any
provision of this Loan Agreement or of any other Loan Document securing or executed in connection with this Loan Agreement is, for any reason and to any extent, invalid or unenforceable, then neither the remainder of the Loan Document in which such
provision is contained, or the application of the provision to other persons, entities or circumstances, nor any other document referred to in this Loan Agreement, shall be affected by such invalidity or unenforceabiity, and there shall be deemed
substituted for the invalid unenforceable provision the most similar provision which would be valid and enforceable under applicable law. The titles of the Sections of this Loan Agreement are for reference purposes only and do not constitute a part
of this Loan Agreement. Reference in this Loan Agreement to any Section or subsection shall be to the stated Section or subsection of this Loan Agreement, unless otherwise indicated, 
 
12.11    Counterparts. This Loan Agreement may be executed in any number of
counterparts, each of which shall be an original but all of which together shall constitute one agreement. 

 
12.12    Entire Agreement. This Agreement and the other Loan Documents contain the entire agreement between Bank, Borrower and Guarantors with respect to the Loans and supersede and cancel any prior
understandings and agreements between Bank, Borrower and Guarantors with respect to the Loans, except as otherwise specifically set forth herein. This Agreement may be modified only by a writing executed by Bank and Borrower. 
 
12.13    Binding Effect. This Loan
Agreement shall be binding upon and shall inure to the benefit of Bank, Guarantors and Borrower and their respective successors and permitted assigns. 
 
12.14    Waiver of Jury Trial. Borrower, Guarantors and Bank, each for itself, hereby irrevocably waive, to the
fullest extent permitted by law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement, the other Loan Documents or the transactions contemplated thereby. 
 
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 
IN WITNESS WHEREOF, Borrower, Guarantors and
Bank have executed this Loan Agreement as of the day and year first above written. 
 
BORROWER: 
 

	 ACT TELECONFERENCING, INC., a
 Colorado corporation

	
	 By:
	 	 /s/ Gerald Van Eeckhout    

	 Name:
	 	 Gerald Van Eeckhout

	 Title:
	 	 Chairman

 

	 GUARANTORS:
  
 ACT VIDEOCONFERENCING INC., a
 Minnesota corporation

	
	 By:
	 	 /s/ Gerald Van Eeckhout    

	 Name:
	 	 Gerald Van Eeckhout

	 Title:
	 	 Chairman

 

	 ACT TELECONFERENCING SERVICES,
 INC., a Minnesota corporation

	
	 By:
	 	 /s/ Gerald Van Eeckhout    

	 Name:
	 	 Gerald Van Eeckhout

	 Title:
	 	 Chairman

	 BANK:

	  
 VECTRA BANK COLORADO,
NATIONAL
 ASSOCIATION

	
	 By:
	 	 /s/ Steven Griffith

	 	 	 Steven Griffith, Senior Vice PresidentVectra Bank Security Agreement

 
EXHIBIT 10.48

 
VECTRA BANK SECURITY AGREEMENT 

	

SECURITY AGREEMENT 
 
THIS SECURITY AGREEMENT (the “Security Agreement”) is entered into as of October 16, 2002, between
VECTRA BANK COLORADO, NATIONAL ASSOCIATION (“Bank”) and ACT TELECONFERENCING, INC., a Colorado corporation (“Borrower”), ACT VIDEOCONFERENCING, INC., a Minnesota corporation (“Videoconferencing”) and ACT
TELECONFERENCING SERVICES, INC., a Minnesota corporation (“Services”). Borrower, Videoconferencing and Services are hereinafter collectively referred to as “Debtor”. 
 
 
RECITALS 
 
A. Bank and Debtor wish to enter into a Revolving Credit and
Term Loan Agreement, which provides for a revolving line of credit (the “Line Loan”) to Borrower for working capital purposes and a term loan (the “Term Loan”) to refinance existing debt. 
 
B. As a condition precedent to the Bank’s obligation to
extend credit under the Loan Agreement, Debtor is required to execute and deliver this Security Agreement to create a security interest in certain property of the Debtor. 
 
NOW, THEREFORE, in consideration of the covenants and conditions, representations and warranties, and
agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by all parties hereto, Debtor and Bank hereby promise and agree as follows: 
 
1. Grant of Security Interest and Collateral
Assignment. As collateral security for the due and punctual payment and performance of the Obligations (defined below), the Debtor hereby grants to Bank, with full power and authority to exercise all rights and powers granted by the Debtor
hereunder, a lien upon, and a security interest under the Uniform Commercial Code in effect in the State of Colorado, as from time to time amended (the “UCC”), to the extent that the same shall apply, in and to, and hereby collaterally
assigns to Bank, all of Debtor’s right, title and interest in and to Debtor’s property, as more particularly described on Exhibit A, attached hereto (the “Collateral”). 
 
2. Obligations Secured. “Obligations” shall mean the Indebtedness and all other obligations
of Debtor in connection with the Line Loan and the Term Loan, as evidenced by that certain (a) Revolving Credit and Term Loan Agreement dated as of the date hereof, executed by Debtor and the Bank (the “Loan Agreement”), (b) Revolving
Promissory Note in the principal amount of $2,000,000.00, dated the date hereof, payable by Borrower to the order of Bank (the “Line Note”), (c) Term Promissory Note in the principal amount of $2,500,000.00, dated the date hereof, payable
by Borrower to the order of Bank (the “Term Note”), and the performance and fulfillment by Borrower of all of the terms, conditions, promises, covenants, and provisions contained in this Security Agreement, the Loan Agreement, the Line
Note, the Term Note, and in any present or future agreement or instrument between Borrower and Bank evidencing or securing the Line Note and/or the Term Note. Capitalized terms not otherwise defined 

herein shall have the meaning given to them in the Loan Agreement, as it may be amended, restated,
extended, renewed, or otherwise modified from time to time. 
 
3. Warranties and Covenants of the Debtor. 
 
(a) The Debtor has all power, statutory and otherwise, to execute and deliver this Agreement, to perform its obligations hereunder and to subject the Collateral to the security interest created hereby,
all of which has been duly authorized by all necessary action. The execution and delivery of this Agreement, and the performance of this Agreement and the enforcement of the security interest granted hereby, will not result in any violation of or be
in conflict with or constitute a default under any term of any agreement or instrument, or, to the best of the knowledge of the Debtor, any judgment, decree, order, law, statute, rule or governmental regulation applicable to this Debtor or the
Collateral. 
 
(b) The Debtor is
the sole record and beneficial owner of the Collateral, and neither the Collateral nor the proceeds thereof are subject to any pledge, lien, security interest, charge or encumbrance except (i) the lien created pursuant to this Agreement, and (ii)
the lien of the UCC Financing Statement delivered by the Debtor to Bank with respect thereto, and the liens in favor of Wells Fargo being paid off with the proceeds of the Term Loan. The Debtor shall defend the Collateral against all claims and
demands of all persons at any time claiming any interest therein. 
 
(c) Debtor shall pay all taxes and assessments of every nature which may be levied or assessed against the Collateral. 
 
(d) The Debtor shall keep the Collateral at all times insured against risk of loss or damage
as more particularly described in and required by the terms of the Loan Agreement. 
 
(e) The Collateral is in good condition. At Debtor’s expense, Debtor shall keep the same in good condition, ordinary
wear and tear excepted, and from time to time shall replace and repair all such parts of the Collateral as may be broken, worn out, or damaged without allowing any lien to be created upon the Collateral on account of such replacement or repairs, and
shall not waste or destroy the Collateral. Bank may examine and inspect the Collateral at any time, upon prior written notice to Debtor and provided such inspection does not unreasonably interfere with Debtor’s use of the Collateral.

 
(f) Except to the extent
expressly permitted under the Loan Agreement, Debtor shall not sell, lease, convey, encumber or in any manner transfer, without the prior written consent of Bank, any tangible or intangible personal property now or hereafter owned by Debtor (except
such tangible personal property as is discarded as obsolete or damaged and is replaced by substitute items having equivalent or greater book value). 
 
(g) Debtor shall not use the Collateral in violation of any applicable statutes, regulations or ordinances. 

(h) The Debtor’s bylaws do not prohibit any term or condition of this
Agreement, and when executed, this Agreement shall be a binding obligation of the Debtor. 
 
(i) The Debtor agrees that Bank may, to the extent permitted by applicable law, prepare and file financing statements,
amendments thereto, and continuation statements without the signature of the Debtor and file any financing statement, amendment thereto or continuation statement electronically. 
 
(j) Without giving at least fifteen (15) days’ prior written notice to Bank, the
Debtor shall not: (a) change its name, identity structure, or jurisdiction of organization; (b) change the location of its place of business (or chief executive office if more than one place of business); or (c) add to or change any location at
which any of the Collateral is stored, held or located. 
 
(k) The Collateral is used or bought primarily for use in business. 
 
(1) After an Event of Default as defined in the Loan Agreement or the appointment of a receiver, Debtor agrees that Bank
shall have full power to notify tenants, purchasers and any other Person, collect, compromise, endorse, sell or otherwise deal with the Collateral and proceeds thereof in its own name or that of Debtor at any time. Bank may apply cash proceeds to
the payment of any Obligations, or may release such cash proceeds to Debtor. 
 
(m) Except to the extent that the effect of such payment would be to render any loan or forbearance of money usurious or otherwise illegal under any applicable law, the Debtor shall pay the Bank on
demand the amount of all monies expended and all costs and expenses (including reasonable attorney’s fees) incurred by the Bank in connection with or as a result of the Bank’s exercising its rights under Section 5, together with
interest thereon from the date expended or incurred by the Bank at the highest rate then applicable to any of the Obligations. 
 
4. Events of Default. The occurrence of a default by Debtor hereunder or under the Loan Agreement shall be an “Event of
Default” hereunder. 
 
5. Rights Upon
Default. Upon the occurrence of an Event of Default and at any time thereafter, and whether or not Bank shall declare any or all of the Obligations to be immediately due and payable in the manner and with the effect stated in the Loan Agreement,
then and in such event: 
 
(a) Bank
may foreclose upon and take possession of the Collateral and may exclude the Debtor, and all Persons claiming by, through or under the Debtor, from possession thereof, and may assign the Collateral to a nominee or a third party. In connection
herewith Bank or any third party assignee or nominee of Bank shall have the right to exercise, in the name of the Debtor, the Debtor’s rights and powers with respect to the Collateral. 

(b) Bank shall have all rights and remedies of a Bank available under the
UCC and any other rights and remedies available under this Agreement and under the Loan Agreement and any other documents evidencing or securing repayment of the Obligations or at law or in equity. 
 
(c) The Debtor hereby agrees that if notice of
sale or other disposition of the Collateral is given in the manner and to the address or addresses then required pursuant to the Loan Agreement at least fifteen (15) business days before the time of the sale or other disposition, such notice shall
be deemed reasonable and shall fully satisfy any requirement for the giving of said notice, whether required by the UCC, any other law or otherwise. Any sale or disposition may occur by private proceedings at Bank’s election, and Debtor
acknowledges that, due to the nature of the Collateral and its essential relationship to the operation of the facility, Bank may buy at any such private sale. 
 
(d) Bank shall have the right, power and authority to sell the Collateral or any part thereof at public or private sale
for cash, upon credit, or for future delivery, and at such price or prices as Bank may deem best, and Bank may be the purchaser of any and all of the Collateral so sold, in such manner and order as Bank may in its sole discretion elect. Upon any
such sale, Bank shall have the right to deliver, assign and transfer to the purchaser thereof the Collateral so sold. Any such public sale shall be held at such time or times, within ordinary business hours, and at such place or places, as Bank may
fix in the notice of such sale. At any sale the Collateral may be sold in one lot as an entirety or in separate parcels as Bank may determine. Bank shall not be obligated to make any sale pursuant to any such notice. Bank may, without notice or
publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at any time and place fixed for the sale, and such sale may be made at any time or place to which the same may be so adjourned. In
case of any sale of all or any part of the Collateral on credit or for future delivery, the Collateral so sold may be retained by Bank until the selling price is paid by the purchaser thereof, but Bank shall incur no liability in case of the failure
of such purchaser to take up and pay for the Collateral so sold, and in case of any such failure, such Collateral may again be sold upon like notice. Each and every method of disposition described in this paragraph shall constitute disposition in a
commercially reasonable manner. In conjunction therewith, in addition to or in substitution for those rights and remedies and the rights and remedies provided for herein: 
 
(e) It shall not be necessary that the Collateral or any part thereof be present at the
location of such sale. 
 
(f) The
sale by Bank of less than the whole of the Collateral shall not exhaust the rights of Bank hereunder or with respect to the Collateral, and Bank is specifically empowered to make successive sales hereunder until the whole of the Collateral shall be
sold; and, if the proceeds of such sale of less than the whole of the Collateral shall be less than the aggregate of the Obligations secured hereby, this Security Agreement and the security interest created hereby shall remain in full force and
effect as to the unsold portion of the Collateral just as though no sale had been made. 

(g) In the event any sale hereunder is not completed or is defective in
the opinion of Bank, such sale shall not exhaust the rights of Bank hereunder and Bank shall have the right to cause a subsequent sale or sales to be made hereunder. 
 
(h) Any and all statements of fact or other recitals made in any bill of sale or assignment
or other instrument evidencing any sale hereunder as to nonpayment of the Indebtedness or as to the occurrence of an Event of Default, or as to Bank having declared all of the Obligations to be due and payable, or as to notice of time, place and
terms of sale and the properties to be sold having been duly given, as to any other act or thing having been duly done by Bank shall be taken as prima facie evidence of the truth of the facts so stated and recited. 
 
(i) Bank may appoint or delegate any one or
more persons as agent to perform any act or acts necessary or incident to any such sale held by Bank, including the sending of notices and the conduct of sale, but in the name and on behalf of Bank. 
 
(j) The proceeds of any sale or other
disposition or collection of or other realization upon all or any part of the Collateral shall be applied in the following order of priority: first, to pay the costs and expenses of collection, custody, sale or other disposition or delivery
(including, without limitation, reasonable legal costs and attorneys’ fees) and all other charges incurred by Bank with respect to the Collateral; second, to the payment of the Obligations in such order as Bank may, in its sole discretion,
determine; and third, to pay any surplus to the Debtor or to any person or party lawfully entitled thereto, or as a court of competent jurisdiction may direct. 
 
(k) Bank may use or operate the Collateral for the purpose of preserving it or its value. Bank may require Debtor to
assemble the Collateral and make it available to Bank at a place to be designated by Bank which is reasonably convenient to both parties. Expenses of retaking, holding, preparing for sale, selling, or costs and expenses in enforcing this Agreement,
or the like shall include reasonable attorneys’ fees and legal expenses incurred by Bank, and the same, together with all advances made by Bank on behalf of the Debtor, shall be part of the Obligations secured hereby. Debtor shall be liable to
Bank for any deficiency. 
 
6. Release of
Collateral. If the Obligations are fully paid, performed and discharged, all Collateral held hereunder shall be returned to the Debtor by Bank promptly upon demand, all requisite termination statements under the UCC shall be executed and
delivered to the Debtor by Bank, and Bank shall take such other action in connection with such discharge as the Debtor may reasonably request. 
 
7. Further Agreements. The Debtor has on the Closing Date executed and delivered to Bank financing statements pursuant to the UCC
covering that portion of the Collateral for which a security interest may be perfected by filing. The Debtor shall, upon request of Bank as provided in the Loan Agreement, promptly make, execute and deliver to Bank, from time to time, a listing of
the specific Collateral, including personal property, goods, equipment, furnishings, furniture acquired and/or owned by Debtor and such other and further financing statements, instruments, documents and certificates, and 

perform such other and further acts and assurances, as Bank may reasonably request to perfect, to maintain
the priority of, or from time to time, to renew, such security interests, to confirm or more fully perfect the rights granted hereby, or in any way to assure Bank all of its rights hereunder. The Debtor shall pay the costs of all filings and
recordings in public offices of record, and shall, upon request of Bank, make, execute and deliver such other and further instruments, and take such other and further actions, as Bank may deem reasonably necessary or appropriate to enable it to
realize upon the Collateral, to exercise fully its rights hereunder. 
 
8. Indemnification: Waivers. The Debtor shall indeninify and hold harmless Bank from any and all liability or damage which Bank may incur in the exercise and performance, in good faith, of any of its powers and duties
specifically set forth herein; provided, however, that Debtor shall not indemnify Bank from and against claims asserted by third parties as a consequence of Bank’s gross negligence or willful misconduct of Bank. No delay or omission on the part
of Bank in exercising any right hereunder shall operate as a waiver of such right or of any other right hereunder. Any waiver of any such right on any one occasion shall not be construed as a bar to or waiver of any such right on any such future
occasion. No course of dealing between the Debtor and Bank nor any failure to exercise, nor any delay in exercising, on the part of Bank, any right, power or privilege hereunder or under any of the Obligations, shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, power or privilege hereunder or thereunder preclude any other or further exercise thereof or in the exercise of any other right, power or privilege. Bank shall be under no duty or liability with
respect to the Collateral other than to use reasonable care in the custody of any Collateral while in its possession and shall not be liable for any failure to take action necessary to preserve rights against prior or other parties on any instrument
constituting the Collateral. 
 
9. Further
Transfers Prohibited. The Debtor covenants and agrees that it will not, at any time during the term of this Agreement, except as contemplated by paragraph 3(t) hereof, further convey or encumber the Collateral in any manner whatsoever; and the
Debtor agrees that it will do all things necessary to maintain the enforceability and priority of Bank’s security interest in the Collateral. 
 
10. Notices. Any and all notices, demands, consents, and other communications required or permitted under this Agreement shall be
deemed adequately given only if given in the manner and to the addresses provided in the Loan Agreement. 
 
11. General Provisions. 
 
(a) No waiver by Bank of any default shall operate as a waiver of any other default or of the same default on a future
occasion. The taking of this Security Agreement shall not waive or impair any other security Bank may have or hereafter acquire for the payment of the Obligations, nor shall the taking of any such additional security waive or impair this Security
Agreement; but Bank may. resort to any security Bank may have in the order it may deem proper, and notwithstanding any collateral security, Bank shall retain its rights of setoff against Debtor. 

(b) At its option, but without obligation to do so, Bank, may, upon
written notice to Debtor in the event Debtor shall have failed to do so, discharge taxes, liens, or security interests or other encumbrances at any time levied or placed on the Collateral, may place and pay for insurance thereon, may order and pay
for the repair, maintenance and preservation thereof and may pay any necessary filing or recording fees. The Debtor agrees to reimburse Bank on ten (10) days written demand for payment made or any expense incurred by Bank pursuant to the foregoing
authorization. 
 
(c) Until the
occurrence of an Event of Default, Debtor may have possession of the Collateral and use it in any lawful manner not inconsistent with this Agreement or any policy of insurance thereon, and upon the occurrence of an Event of Default, Bank shall have
immediate right to possession of the Collateral. 
 
(d) Time is of the essence hereof. All rights of Bank hereunder shall inure to the benefit of its successors and assigns; and all promises and duties of Debtor shall bind its successors or assigns. 
 
(e) Except as otherwise provided by the UCC,
Debtor releases Bank from all claims for loss or damage caused by any act or omission on the part of Bank, its officers, agents and employees, except for violations of this Security Agreement, gross negligence or willful misconduct. 
 
(f) This Agreement shall be governed by and
interpreted in accordance with the laws of the State of Colorado. Further, the place where this Agreement is entered into and the place of performance and transaction of business shall be deemed to be the State of Colorado, and in the event of
litigation, the exclusive forum, venue and jurisdiction shall be the State of Colorado. 
 
(g) Unless the context otherwise requires, all terms used herein which are defined in the UCC, shall have the meaning
therein stated. 
 
 
[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 

IN WITNESS WHEREOF, Debtor has executed this Security Agreement as of the day and year
first above written. 
 

	
	 DEBTOR:
  
 ACT TELECONFERENCING, INC., a
Colorado corporation

	
	 By:
	 	 /S/    GERALD VAN
EECKHOUT        

	 Name:
	 	       Gerald Van
Eeckhout        

	 Title:
	 	       Chairman        

	
	 ACT VIDEOCONFERENCING, INC., a
Minnesota corporation

	
	 By:
	 	 /S/    GERALD VAN
EECKHOUT        

	 Name:
	 	       Gerald Van
Eeckhout        

	 Title:
	 	       Chairman        

	
	 ACT TELECONFERENCING SERVICES,
INC., a Minnesota corporation

	
	 By:
	 	 /S/    GERALD VAN
EECKHOUT        

	 Name:
	 	       Gerald Van
Eeckhout        

	 Title:
	 	       Chairman        

	
	 BANK:
  
 VECTRA BANK COLORADO, NATIONAL ASSOCIATION

	
	 By:
	 	 /S/    STEVEN
GRIFFITH        

	 	 	 Steven Griffith, Senior Vice President

EXHIBIT A 
Collateral 
 
1. Inventory: All of Borrower’s inventory, as such term in defined in the UCC, whether now owned or hereafter acquired, whether consisting of whole goods, spare parts or components,
supplies or materials, whether acquired, held or furnished for sale, for lease or under service contracts or for manufacture or processing, and wherever located; 
 
2. Accounts And Other Rights To Payment: Each and every right of the Borrower to the payment of money,
whether such right to payment now exists or hereafter arises, whether such right to payment arises out of a sale, lease or other disposition of goods or other property, out of a rendering of services, out of a loan, out of the overpayment of taxes
or other liabilities, or otherwise arises under any contract or agreement, whether such right to payment is created, generated or earned by the Borrower or by some other person who subsequently transfers such person’s interest to the Borrower,
whether such right to payment is or is not already earned by performance, and howsoever such right to payment may be evidenced together with all other rights and interests (including all liens and security interests) which the Borrower may at any
time have by law or agreement against any account borrower or other obligor obligated to make any such payment or against any property of such account borrower or other obligor; all including but not limited to all present and future accounts,
contract rights, loans and obligations receivable, chattel papers, bonds, notes and other debt instruments, tax refunds and rights of payment in the nature of general intangibles; 
 
3. Equipment: All of the Borrower’s equipment, as such term is defined in the UCC, whether now
owned or hereafter acquired, including but limited to all present and future machinery, vehicles, furniture, fixtures, manufacturing equipment, shop equipment, office and recordkeeping equipment, parts, tools, supplies, and including specifically
(without limitation) the goods described in any equipment schedule or list herewith or hereafter furnished to the Bank by the Borrower; 
 
4. General Intangibles: All of the Borrower’s general intangibles, as such term is defined in the UCC, whether now owned or
hereafter acquired, including (without limitation) all present and future patents, patents applications, copyrights, licenses, software interests, intellectual property and property rights, trade names, trade secrets, customer or supplier lists and
contracts, manuals, operating instructions, permits, franchises, insurance proceeds, the right to use the Borrower’s name, and the goodwill of the Borrower’s business.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00051-of-00352.parquet"}]]