Document:

Waiver Letter between the Company and RBC Bank (USA)

 Exhibit 10.1 
 May 12, 2009 
 RBC Bank (USA) 
 Attn: Mr. Charles Arndt 
 531 South Main Street, 2nd Floor 
 Greenville, SC 29601 
  

	 	Re:	Payment on Subordinated Notes 

 Dear Mr. Arndt: 
 This letter is being provided to you in connection with the Second Amended and Restated Loan and Security Agreement dated September 14, 2007 (the
“Loan Agreement”) and other documents described or contemplated therein or related thereto (the “Loan Documents”) between Computer Software Innovations, Inc. (the “Borrower” or “CSI”) and RBC Centura Bank (the
“Bank”). Specifically, this letter concerns potential defaults or violations of certain covenants under the Loan Documents arising out of our proposed amendment of and principal payments on certain Subordinated Debt as set forth on
Exhibit A attached hereto (collectively, the “Subordinated Debt Amendment”). The Subordinated Debt Amendment has not yet been consummated by the parties. 
 Capitalized terms otherwise not defined in this letter shall have the meanings ascribed to them in the Loan Agreement. 
 The terms of the Subordinated Debt Amendment generally provide: 
  

	 	•	 	 CSI will pay an aggregate of $200,000 in principal on the Subordinated Debt; 

  

	 	•	 	 The maturity of the Subordinated Debt will be extended from March 31, 2009 until August 30, 2009; 

  

	 	•	 	 Subject to the exercise by its board of director of fiduciary duties, CSI will exercise its commercially reasonable best efforts to obtain from the Bank financing
to refund the Subordinated Debt held by Barron Partners LP, in the event such Subordinated Debt has not been repaid by August 30, 2009; 

  

	 	•	 	 The Company and the holders of Subordinated Debt other than Barron Partners LP will strive to negotiate to restructure the Subordinated Debt owed to such
Noteholders on a mutually agreeable basis, in the event such Subordinated Debt remains outstanding as of August 30, 2009; 

  

	 	•	 	 The Company has agreed to apply the proceeds from any exercise of the common stock warrants held by Barron Partners LP to repayment of the Subordinated Debt, on a
basis of 75% to Barron Partners LP and 25% to the other holders of Subordinated Debt until Barron is paid in full, and thereafter 100% to the individual noteholders until they are paid in full; 

  

	 	•	 	 Until the new maturity, the Subordinated Debt will bear interest at the current default rate of fifteen percent (15%) per annum; 

 

	 	•	 	 All past payment defaults with respect to the Subordinated Debt will be waived; and 

  

	 	•	 	 Barron Partners LP shall exercise its commercially reasonable best efforts to exercise its CSI stock warrants upon CSI’s share price reasonably exceeding the
exercise price of such warrants. 

 Upon our execution and delivery of the Subordinated Debt Amendment and our payment on
such debt, certain covenants contained in the Loan Documents may be violated, including, but not necessarily limited to, the following: 
 (1) Section 7.13 of the Loan Agreement, restricting payments on Subordinated Debt and prohibiting any amendment of such debt without the Bank’s prior written consent; 
 (2) Covenants contained in the Loan Agreement that restrict our use of loan proceeds to purposes of funding short-term working capital and for general
corporate purposes. It is our intention to fund the principal payments relating to the Subordinated Debt Amendment, in whole or in part, with funds drawn under our Revolving Facility; 

 (3) Covenants contained in the Loan Documents making it an event of default if the Bank deems itself
insecure, if there is an impairment of the prospect of repayment or of value or priority of the Bank’s security interests, or if a material adverse change in our business or financial condition has occurred; 
 (4) Section 7.7 of the Loan Agreement, prohibiting Distributions; and 
 (5) Section 7.12 of the Loan Agreement, restricting transactions with Affiliates. 
 Violations of these
covenants may trigger defaults in the Loan Documents. To that end, we respectfully request that the Bank grant a waiver of any default provisions or covenants contained in the Loan Documents which would be triggered by the Subordinated Debt
Amendment, except for any financial covenants. 
 If our request is acceptable to the Bank, please indicate your assent by affixing your
signature and the date below, and returning a copy of this letter to me and our legal counsel, Smith Moore Leatherwood LLP, to the attention of William L. Pitman. Thank you in advance for your consideration of our request. Please call me if you have
any questions concerning any of the foregoing. 
  

	
	Yours very truly,
	
	 /s/ David D. Dechant

	David D. Dechant
	Chief Financial Officer

  

			
	ON BEHALF OF RBC CENTURA BANK, THE REQUEST FOR WAIVER ABOVE IS ACCEPTED.
	
	Date: May 12, 2009
	
	RBC BANK (USA)
		
	By:	 	 /s/ Charles Arndt

		 	Charles Arndt
		
	Its:	 	Market Executive – South Carolina MarketsExtension of Subordinated Notes and Waiver

 Exhibit 10.2 
 [CSI LETTERHEAD] 
 May 12, 2009 
  

			
	 Andrew Barron Worden
 Barron Partners LP
 730 Fifth Avenue, 25th Floor
 New York, NY 10019
  
 Joe G. Black
 204 Mt. Calvary Church Road
 Easley, SC 29642
	 	 Nancy K. Hedrick
 Beverly N. Hawkins
 Thomas P. Clinton
 William J. Buchanan
 Computer Software Innovations, Inc.
 900 East Main Street, Suite T

Easley, SC 29640

  

	 	Re:	Extension of Subordinated Notes and Waiver 

 Ladies and Gentlemen:

 Each of you is the holder of a separate Subordinated Promissory Note dated February 11, 2005 payable by Computer Software
Innovations, Inc. (the “Company”) in the original principal amount of $1,875,200.00 in the case of Barron Partners LP (“Barron”) and $375,000.00 in the case of all individual holders (collectively, as amended by the Prior
Extension (as hereinafter defined), the “Notes” and each a “Note”). The remaining principal amount owing on the Notes as of the date of this letter is $975,200.00 in the case of Barron and $195,040.00 in the case of all
individual holders. The Notes were originally due and payable in full on May 10, 2006, and pursuant to a letter agreement (the “Prior Extension”) dated April 23, 2008 between the Company and the holders of the Notes (the
“Noteholders”), the maturity date of the Notes was extended until March 31, 2009. The principal amount of the Notes was not paid at the March 31, 2009 maturity and, accordingly, the Notes are currently in default. Pursuant to the
Prior Extension and the original terms of the Notes, the Company has paid all accrued interest due and payable to date at the default rate of fifteen percent (15%) per annum (the “Default Rate”). 
 Following recent discussions with each of you, the Company is proposing the following amendments, payments and waiver with respect to the Notes
(collectively, the “Amendment and Waiver”): 
 1. With respect to the Note held by Barron, the maturity date will be extended from
March 31, 2009 until August 30, 2009 (the “New Maturity Date”), on which date all principal and accrued interest will be due and payable in full to Barron. 
 2. Prior to the New Maturity Date, the Company shall apply any proceeds from the exercise of the common stock warrants held by Barron to pay down the
outstanding principal on the Notes. The parties agree that any such proceeds shall be applied 75% toward the Note held by Barron and 25% to the Notes held by the individual Noteholders until Barron is paid in full, and thereafter 100% of such
proceeds shall be applied to the Notes held by the individual Noteholders. 
 3. Subject to the exercise by the Company’s board of
director of fiduciary duties, the Company shall utilize its commercially reasonable best efforts to obtain financing from its bank to refund all amounts owing under Barron’s Note, in the event such Note has not been repaid in full as of the New
Maturity Date. 
 4. With respect to the Notes held by the individual Noteholders, the maturity date of each of the Notes will be extended
until the New Maturity Date; provided, however, that the Company and the individual Noteholders agree that, if there remains principal outstanding under the individual Noteholders’ Notes on the New Maturity Date, they will strive to negotiate a
new mutually agreeable repayment schedule for the Notes held by the individual Noteholders. 
 5. The Company within five (5) days of
the date of this letter will make principal payments on the Notes (the “Principal Payments”), $100,000.00 in the case of the Note held by Barron and $20,000.00 each in the case of the other Noteholders. 

 6. As a result of the extension of the Notes described in paragraphs 1 and 4 above, the Notes will not be
in default with respect to principal payments. Further, each Noteholder hereby waives any existing or past default based on the Company failing to make any payment of interest or principal when due. 
 7. Despite the Notes not being in default, the Notes will continue to bear interest at the Default Rate until the New Maturity Date. 
 8. Barron shall exercise its commercially reasonable best efforts to exercise its Company common stock warrants upon the Company’s share price
reasonably exceeding the exercise price of such warrants. 
 To evidence your agreement with the Amendment and Waiver of the Notes set forth
above, please execute this letter in the signature space provided below and return the executed letter to me as soon as possible by facsimile or email. Upon receiving signed letters from all of the Noteholders, the Company will make the applicable
Principal Payments to each of you. The Amendment and Waiver shall become effective with respect to a particular Note only when the Noteholder receives his or her agreed Principal Payment. 
 Please call me if you have any questions. 
  

	
	Sincerely,
	
	 /s/ David D. Dechant

	David D. Dechant
	Chief Financial Officer

  

					
	BARRON PARTNERS LP
		
	By:	 	Baron Capital Advisors LLC,
		 	Its General Partner
			
		 	By:	 	 /s/ Andrew Barron Worden

		 		 	Andrew Barron Worden,
		 		 	Managing Member
	
	 /s/ Nancy K. Hedrick

	Nancy K. Hedrick
	
	 /s/ Beverly N. Hawkins

	Beverly N. Hawkins
	
	 /s/ Thomas P. Clinton

	Thomas P. Clinton
	
	 /s/ William J. Buchanan

	William J. Buchanan
	
	 /s/ Joe G. Black

	Joe G. Black

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