Document:

Unassociated Document

    
      

       

      SEVERANCE
AND GENERAL RELEASE AGREEMENT

       

      

      

      In
accordance with the terms and provisions of the Employment Agreement (the
“Employment Agreement”) made as of June 1, 2008, between Thomas D. Christopoul
(the “Executive”) and Resources Connection, Inc., (the “Company”) and in
exchange and consideration of the covenants undertaken and releases contained in
this Severance and General Release Agreement (“Agreement”), the Executive and
the Company enter into this Agreement on this 22nd day of July, 2009 (the
“Separation Date”), and agree as follows:

       

      1.           Resignation:  Executive
hereby resigns from employment by, and from any and all of his positions with
(including without limitation, as a member of the Board of Directors of the
Company and as President and Chief Executive Officer of the Company), the
Company and each of its affiliates effective
immediately.  Accordingly, the Company and Executive acknowledge that
any contractual (except as expressly provided herein) or employment relationship
between them terminates immediately, and that they have no further contractual
relationship (except as may arise out of or be expressly provided for in this
Agreement) or employment relationship hereafter.

      

      2.           Severance:  The
Company shall pay to or provide for the Executive the following:

       

      A.           A
lump sum cash payment, payable within ten (10) business days after the
Separation Date, equal to the sum of (i) any accrued but unpaid Base Salary as
of the Separation Date (including any accrued but unpaid personal time off),
plus the Base Salary that the Executive would have earned had he remained
employed through July 31, 2009, (ii) the Earned/Unpaid Annual Bonus, if any, and
(iii) an amount equal to seven times Executive’s current Base Salary of
$500,000, less such federal, state and local taxes as may be required to be
withheld pursuant to any applicable law or regulation.  A summary of
payments to be made to the Executive (other than any payments other than accrued
but unpaid personal time off required by clause (i) of this Section 2(A)) is
annexed as Exhibit 1.

       

      B.           Continued
participation in the Company’s group health insurance plans for Executive and
Executive’s dependents, including the group medical, vision and dental plans, at
the Company’s expense until the earlier of (i) the expiration of three (3) years
from August 1, 2009, or (ii) Executive’s eligibility for participation in the
substantially comparable group health plan of a subsequent employer or
entity.  For the avoidance of doubt, in the event that Executive shall
become eligible to participate in a subsequent employer’s or entity’s
substantially comparable benefits plan(s) offering one or more, but not all, of
the benefits herein described (for example, group medical, but not vision and
dental), Executive shall be entitled to continue to receive from the Company the
benefits that are not offered, and/or for which he is not eligible, under the
subsequent employer’s or entity’s benefits plan(s) until the earliest of the
expiration of three (3) years from August 1, 2009 or he becomes so eligible (if
at all).

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

       

      Except as
set forth above in this Section 2 and below in Section 3,  and except
for Executive’s vested benefits under the Company’s 401(k) plan: (i) Executive
will not be entitled to any other benefits in connection with the termination of
his employment, and (ii) Executive represents and agrees that he has received
all compensation and other benefits which he is due from the Company and its
affiliates and no other compensation or benefits are or will be due to Executive
from the Company or any of its affiliates.

      

      3.           Stock
Options:  As of the date of Executive’s termination of
employment, any remaining unvested stock options or restricted stock received
during the term of his employment, shall automatically be deemed vested and
remain exercisable for the duration of the term of such award, notwithstanding
any other provision of this Agreement or applicable plans.

      

      4.           Company
Property:  Executive warrants and represents that he has
returned any and all property belonging to the Company, provided, however, the
Company agrees to allow Executive to keep his Blackberry device and laptop
computer.  In connection with and conditioned upon the retention of
these devices, Executive shall agree in writing to delete permanently or return
any and all Company confidential information stored thereon.  The
Company and Executive further agree that Executive may use the Company’s e-mail
system through August 31, 2009 for professional and reasonable
transition.  Effective September 1, 2009 through December 31, 2009,
the Company will set up auto-forwarding on his email account to redirect
incoming e-mail to an address provided by Executive.  Executive may
also retain his personal cell phone number following his separation from the
Company, and the Company shall provide such reasonable assistance as is
necessary in order to cause the transfer of such number to
Executive.

      

      5.           No
Admission of Liability:  The Company expressly denies any
violation of any of its policies, procedures, state or federal laws or
regulations.  Accordingly, while this Agreement resolves all issues
between Executive and the Company relating to alleged violation of the Company’s
policies or procedures or any state or federal law or regulation, if any, this
Agreement does not constitute an adjudication or finding on the merits and it is
not, and shall not be construed as, an admission by the Company of any violation
of its policies, procedures, state or federal laws or
regulations.  Moreover, neither this Agreement nor anything in this
Agreement shall be construed to be or shall be admissible in any proceeding as
evidence of or an admission by the Company of any violation of its policies,
procedures, state or federal laws or regulations.  This Agreement may
be introduced, however, in any proceeding to enforce the
Agreement.  Such introduction shall be pursuant to an order protecting
its confidentiality.  The Company acknowledges that, as of the
Separation Date, the Company is not aware of any violation by Executive during
the course of his employment by the Company of any of its policies, procedures,
rules of governance, corporate compliance plans or similar corporate governing
documents or any state or federal laws or regulations.

      

      6.           Release:

      

      BY
EXECUTIVE:  Except for those obligations created by or arising out of
this Agreement, Executive, on behalf of himself, his descendants, dependents,
heirs, executors, administrators, assigns, and successors, and each of them,
hereby acknowledges the full and complete satisfaction by the Company of its
obligations under the Employment Agreement, and hereby releases and discharges
and covenants not to sue the Company, its divisions, affiliated corporations,
past and present, and each of them, as well as its and their directors,
officers, managers, shareholders, representatives, assignees, successors, agents
and executives, past and present, and each of them (individually and
collectively, the “Releasees”).  This release applies to any and all
claims, wages, agreements, obligations, demands, rights, causes of action and
liabilities of whatever kind or nature in law, equity or otherwise, whether now
known or unknown, suspected or unsuspected (collectively “Claims”), arising out
of or in any way connected with Executive’s employment relationship with, or his
resignation, separation or termination from, the Company, including, without
limitation, any Claims for severance pay, bonus or similar benefit, sick leave,
personal time off, retirement, vacation pay, holiday pay, life insurance, health
or medical insurance or any other non-ERISA fringe benefit, workers’
compensation or disability, or any other Claims resulting from any act or
omission by or on the part of Releasees committed or omitted prior to the
Separation Date, including, without limitation, any Claims under Title VII of
the Civil Rights Act of 1964, the Age Discrimination in Employment Act, the
Americans with Disabilities Act, the New Jersey antidiscrimination laws, or any
other federal, state or local law, regulation or ordinance.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      BY THE
COMPANY: Except for (i) those obligations created by or arising out of this
Agreement or (ii) any and all claims, agreements, obligations, demands, rights,
causes of action and liabilities arising out of Executive’s intentional
misconduct, the Company, on behalf of itself and on behalf of the Company’s
divisions, affiliated corporations, past and present, and each of them, as well
as on behalf of its and their directors, officers, managers, shareholders,
representatives, assignees, successors, agents and executives, past and present,
and each of them, hereby acknowledges the full and complete satisfaction by
Executive of his obligations under the Employment Agreement, and hereby releases
and discharges and covenants not to sue Executive, his descendants, dependents,
heirs, executors, administrators, assigns, and successors, and each of
them.  This release applies to any and all claims, agreements,
obligations, demands, rights, causes of action and liabilities of whatever kind
or nature, in law, equity or otherwise, whether now known or unknown, suspected
or unsuspected, arising out of or in any way connected with any acts or
omissions by Executive engaged in during the course of Executive’s employment by
the Company and/or arising out of or in any way connected with Executive’s
employment relationship with, or his resignation, separation or termination
from, the Company.

      

      7.           Bar to
Claims:  It is a further condition of the consideration hereof
and is the intention of both parties in executing this instrument that the same
shall be effective as a bar as to each and every claim, demand and cause of
action hereinabove specified and, in furtherance of this intention, Executive
hereby expressly consents that this Agreement shall be given full force and
effect according to each and all of its express terms and conditions, including
those relating to unknown and unsuspected claims, demands and causes of actions,
if any, as well as those relating to any other claims, demands and causes of
actions hereinabove specified.  Nothing contained in this Agreement
shall be interpreted to prevent any governmental agency from pursuing any matter
which it deems appropriate or to prevent Executive from filing a charge or
administrative complaint with any governmental administrative agency; provided,
however, that any and all remedies available on behalf of Executive are covered
by the releases in this Agreement.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      8.           Unknown
Claims:  It is the intention of Executive in executing this
instrument that the same shall be effective as a bar to each and every claim,
demand and cause of action hereinabove specified.  In furtherance of
this intention, Executive hereby expressly waives any and all rights and
benefits conferred upon him by the provisions of SECTION 1542 OF THE CALIFORNIA
CIVIL CODE and expressly consents that this Agreement shall be given full force
and effect according to each and all of its express terms and provisions,
including those related to unknown and unsuspected claims, demands and causes of
action, if any, as well as those relating to any other claims, demands and
causes of action hereinabove specified.  SECTION 1542
provides:

      

      “A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR
SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH
IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH
THE DEBTOR.”

      

      Executive
acknowledges that he may hereafter discover claims or facts in addition to or
different from those which he now knows or believes to exist with respect to the
subject matter of this Agreement and which, if known or suspected at the time of
executing this Agreement, may have materially affected this
Agreement.  Nevertheless, Executive hereby waives any right, claim or
cause of action that might arise as a result of such different or additional
claims or facts.  Executive acknowledges that he understands the
significance and consequence of such release and such specific waiver of SECTION
1542.

      

      9.           ADEA
Waiver:  Executive expressly acknowledges and agrees that, by
entering into this Agreement, he is waiving any and all rights or claims that he
may have arising under the Age Discrimination in Employment Act of 1967, as
amended, which have arisen on or before the Separation Date. Executive further
expressly acknowledges and agrees that:

      

      
        	
                 
      

              	
                A.

              	
                In
      return for this Agreement he will receive compensation beyond that which
      he already was entitled to receive before entering into this
      Agreement;

              

      

      
        	
                 
      

              	
                B.

              	
                He
      is hereby advised in writing by this Agreement to consult with an attorney
      before signing this Agreement;

              

      

      
        	
                 
      

              	
                C.

              	
                He
      was given a copy of this Agreement on July 20, 2009, and informed that he
      had 21 days within which to consider the Agreement; however, Executive may
      waive the 21-day period; and

              

      

      
        	
                 
      

              	
                D.

              	
                He
      was informed that he has seven (7) days following the Separation Date in
      which to revoke the Agreement.

              

      

      

      Any
revocation pursuant to clause D above should be in writing, expressly reference
the Agreement, and be addressed and delivered as provided in Section 23 so that
it is received prior to the expiration of such 7-day period.

      

      10.           Non-Disparagement:
Executive and the Company agree that they will not make any defamatory or
disparaging oral or written comments or statements (hereinafter, “Disparaging
Comments”) concerning the other, his or its business, reputation, executives, or
past or present directors or affiliates or subsidiaries.  The parties
agree that this non-disparagement clause is a material term of the Agreement
and, if breached, damages would be difficult to
ascertain.  Accordingly, either party found in breach of this
provision shall pay to the non-breaching party liquidated damages in the amount
of $25,000.00 per occurrence, plus reasonable attorneys’ fees incurred to
enforce this provision.  For purposes of this provision, “Disparaging
Comments” is defined to include any verbal, electronic, or written statement
which would affirmatively discredit, belittle, or ridicule Executive or the
Company, as the case may be, either personally or professionally.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      11.           Severability:  If
any provision of this Agreement or its application is held invalid, the
invalidity shall not affect other provisions or applications of the Agreement
which can be given effect without the invalid provisions or application and,
therefore, the provisions of this Agreement are declared to be
severable.

      

      12.           Restrictive
Covenants:  In accordance with the terms of his Employment
Agreement, for a period of two years following the Separation Date, the
Executive will continue to be bound by the provisions of paragraph 14, Restrictive Covenants, in the
Employment Agreement.

      

      13.           Confidentiality:
In accordance with paragraph 15, Confidentiality, of the
Executive’s Employment Agreement, Executive will not at any time, unless
compelled by lawful process, disclose or use for his own benefit or purposes or
the benefit or purposes of any other person, firm, partnership, joint venture,
association, corporation or other business organization, entity or enterprise
other than the Company and any of its subsidiaries or affiliates, any trade
secrets, or other confidential data or information relating to customers,
development programs, costs, marketing, trading, investment, sales activities,
promotion, credit and financial data, manufacturing processes, financing
methods, plans, or the business and affairs of the Company generally, or of any
subsidiary or affiliate of the Company; provided that the
foregoing shall not apply to information which is not unique to the Company or
which is generally known to the industry or the public other than as a result of
Executive’s breach of this covenant.  Executive agrees that upon
termination of his employment with the Company for any reason, he will return to
the Company immediately all memoranda, books, papers, plans, information,
letters and other data, and all copies thereof or therefrom, in any way relating
to the business of the Company and its affiliates, except that he may retain
personal notes, notebooks and diaries that do not contain confidential
information of the type described in the preceding
sentence.  Executive further agrees that he will not retain or use for
his account at any time any trade names, trademark or other proprietary business
designation used or owned in connection with the business of the Company or its
affiliates.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
 

      14.           Entire
Agreement:  This Agreement embodies the entire agreement of the
parties hereto respecting the matters within its scope.  This
Agreement supersedes all prior agreements of the parties hereto on the subject
matter hereof.  Any prior negotiations, correspondence, agreements,
proposals, or understandings relating to the subject matter hereof shall be
deemed to be merged into this Agreement and to the extent inconsistent herewith,
such negotiations, correspondence, agreements, proposals, or understandings
shall be deemed to be of no force or effect.  There are no
representations, warranties, or agreements, whether express or implied, or oral
or written, with respect to the subject matter hereof, except as set forth
herein.  Notwithstanding the foregoing, this Agreement is not intended
to modify or extinguish any rights or obligations contained in (i) any stock
option, restricted stock or other equity or equity-based award agreement between
Executive and the Company that was executed prior to the Separation Date or (ii)
any indemnification agreement between Executive and the Company prior to
Separation Date.

       

      

      15.           No
Assignment:  Executive warrants and represents that he has not
heretofore assigned or transferred to any person not a party to this Agreement
any released matter or any part or portion thereof and Executive shall defend,
indemnify and hold harmless the Company from and against any claim based on or
in connection with or arising out of any such assignment or transfer made,
purported or claimed.

      

      16.           Non-Binding
Mediation:  Except as provided otherwise herein, before
commencing any legal proceeding in any court of law, any controversy arising out
of or relating to this Agreement, its enforcement or interpretation, or because
of an alleged breach, default, or misrepresentation in connection with any of
its provisions, or any other controversy arising out of Executive’s employment,
including, but not limited to, any state or federal statutory claims, shall
first be submitted to non-binding mediation in Orange County, California, before
a sole mediator selected from Judicial Arbitration and Mediation Services, Inc.,
Orange County, California, or its successor (“JAMS”), or if JAMS is no longer
able to supply the mediator, such mediator shall be selected from the American
Arbitration Association, provided, however, that provisional injunctive relief
may, but need not, be sought by either party to this Agreement in a court of law
while mediation proceedings are pending.

      

      17.           Telecopied
Signatures:  In order to expedite the execution of this
Agreement, telecopied signatures may be used in place of original signatures on
this Agreement or any document delivered pursuant hereto.  Executive
and the Company intend to be bound by the signatures on the telecopied document,
are aware that the other party will rely on the telecopied signatures, and
hereby waive any defenses to the enforcement of the terms of this Agreement
based on the use of and reliance upon telecopied
signatures.  Following any facsimile transmittal, the respective party
shall deliver the original instrument by reputable overnight courier in
accordance with the notice provisions of this Agreement.

      

      18.           Governing
Law:  The rights and obligations of the parties hereunder shall
be construed and enforced in accordance with, and governed by, the laws of the
State of California without regard to principles of conflict of
laws.

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      
 

      19.           Drafting
of Agreement:  Each party has cooperated in the drafting and
preparation of this Agreement.  Hence, this Agreement shall not be
construed against any party on the basis that the party was the drafter, and
Executive waives the benefits of any statutory or other presumption to the
contrary.

      

      20.           Advice of
Counsel:  In entering this Agreement, the parties represent
that they have relied upon (or been given an opportunity to rely upon) the
advice of their attorneys, who are attorneys of their own choice, and that the
terms of this Agreement have been completely read and explained to them by their
attorneys (or they have chosen to forgo such advice and explanation), and that
those terms are fully understood and voluntarily accepted by them.

      

      21.           Waiver of
Breach:  No waiver of any breach of any term or provision of
this Agreement shall be construed to be, or shall be, a waiver of any other
breach of this Agreement.  No waiver shall be binding unless in
writing and signed by the party waiving the breach.

      

      22.           Supplementary
Documents:  All parties agree to cooperate fully and to execute
any and all supplementary documents and to take all additional actions that may
be necessary or appropriate to give full force to the basic terms and intent of
this Agreement and which are not inconsistent with its terms.

      

      23.           Notice:  Any
notice required to be given to the Company pursuant to this Agreement, shall be
in writing and shall be deemed to have been sufficiently given either when
served personally or via facsimile and addressed to the appropriate
party.  Any notice required to be given to Executive pursuant to this
Agreement shall be in writing and shall be deemed to have been sufficiently
given when served personally, by first class mail or via facsimile.

      

      Notices
to the Company shall be effective only when addressed to:

      Kate W.
Duchene, Chief Legal Officer

       Resources
Connection, Inc.

      17101
Armstrong Avenue

      Irvine,
California 92614

      

      With a
copy to:

      David A. Krinsky, Esq.

      O’Melveny & Myers, LLP

      610 Newport Center Drive, Suite
1700

      Newport Beach, CA 92660

      

      

      Notices
to Executive shall be effective only when addressed to:

      Thomas D. Christopoul

      392 Saddle Back Trail

      Franklin Lakes, NJ 07417

      

      With a
copy to:

      Steven A. Holt, Esq.

      Mandelbaum Salsburg, PC

      155 Prospect Avenue

      West Orange, NJ 07052

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
 

      24.           Headings
Not Controlling:  Headings are used only for ease of reference
and are not controlling.

      

      

      The
undersigned have read and understand the consequences of this Agreement and
voluntarily sign it.  The undersigned declare under penalty of perjury
that the foregoing is true and correct.

      

      EXECUTED
on the Separation Date in Irvine, Orange County, California.

      

      _____/s_____________________

      Kate W.
Duchene

      Chief
Legal Officer

      For
Resources Connection, Inc.

      

      

      EXECUTED
on the Separation Date in Franklin Lakes, Bergen County, New
Jersey.

      

      

      _________/s__________________

      Thomas D.
Christopoul

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ACKNOWLEDGMENT AND
WAIVER

       

       

       

      I, Thomas
D. Christopoul, hereby acknowledge that I was given 21 days to consider the
foregoing Agreement and voluntarily chose to sign the Agreement prior to the
expiration of the 21-day period.

       

      I declare
under penalty of perjury under applicable law that the foregoing is true and
correct.

       

      EXECUTED
this 22nd day of
July,  2009, at Bergen County, New Jersey.

       

      ___________/s_______________

      Thomas D.
Christopoul

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      

        Exhibit
1

         

        EXHIBIT
1

        

        CASH  PAYOUT

        

        
          	
                  Base
      Salary Payout:

                	
                  $3,500,000,
      less applicable withholding taxes

                
	
                  (Computed
      on a Base Salary of $500,000)

                	 
      
	 
      	 
      
	
                  FY
      2009 Bonus Award:

                	
                  $281,250

                
	 
      	 
      
	
                  Accrued
      & Unpaid Time Off:

                	
                  $
      53,845.12

                

        

        

        

        

        
          	
                  TOTAL
      CASH PAYOUT:

                	
                  $3,835,095.12,
      less applicable withholding

                

        

        

        

        ACCERATION OF EQUITY
AWARDS

        

        
          	
                  Grant
      No.

                	
                  Award
      Amount

                	
                  Price

                	
                  Term

                
	
                  G0006090

                	
                  150,000

                	
                  $20.46

                	
                  June
      2, 2018

                
	
                  G0006372

                	
                  90,000

                	
                  $14.48

                	
                  February
      19,
2019FINANCING  AND  SECURITY
AGREEMENT

     

    

    This
Financing and Security Agreement is dated for purposes of reference July __,
2009, is by and between the undersigned, Lattice Incorporated whose address is
7150 North Park Drive, Suite 500, Pennsauken, NJ, Ricciardi Technologies, Inc.
whose address is 2411 Dulles Corner Park, Suite 220, Herndon, VA, System
Management Engineering, Inc. whose address is 2411 Dulles Corner Park, Suite
200, Herndon, VA (hereinafter collectively referred to as “CLIENT”) and ACTION
CAPITAL CORPORATION (hereinafter referred to as “ACTION”), which has its
executive office and principal place of business at 230 Peachtree St. NW, Suite
910, Atlanta, GA  30303.  CLIENT and ACTION agree as
follows:

     

     

    I.           PURPOSE
OF AGREEMENT

    

    CLIENT
desires to obtain short-term financing by transferring and assigning to
ACTION  acceptable accounts receivable.  The purpose of this
financing is commercial in nature, and not for household, family, and/or
personal use.  In the event CLIENT and ACTION are currently operating
under an earlier agreement, this agreement is and shall be a modification and
continuation of such earlier agreement and in the event of any inconsistencies
or contradictions within the agreements, CLIENT and ACTION agree that the terms
of this agreement shall control.

     

     

    II.           DEFINITIONS

    

    
      	
              2.1

            	
              “ACCOUNT” means both
      present and future accounts, contract rights and other forms of
      obligations for the payment of money arising out of the sale by CLIENT of
      goods or the performance by CLIENT of
services.

            

    

    

    
      	
              2.2

            	
              “ACCEPTABLE ACCOUNT”
      means an account offered by CLIENT to ACTION for transfer and assignment
      which account ACTION has reviewed and has, in its sole discretion,
      approved for purchase in whole or in part, and which account conforms to
      the warranties and terms set forth herein and in the Agreement for the
      Assignment of Invoices form accompanying each offer to transfer and
      assign.

            

    

    

    
      	
              2.3

            	
              “AFFILIATE” means any
      entity that CLIENT or any officer, shareholder, director or other
      principal of CLIENT or any spouse or other familial relative of such
      person shall have the power to direct the management and policies of such
      entity, directly or indirectly, whether through ownership of voting
      securities or otherwise.

            

    

    

    
      	
              2.4

            	
              “CUSTOMER” means
      CLIENT’s customer or the account
debtor.

            

    

    

    
      	
              2.5

            	
              “INVOICE” means the
      document evidencing any ACCOUNT referenced in and made subject to any
      Agreement for the Assignment thereof entered into between the CLIENT and
      ACTION.

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    III.           WARRANTIES
AND COVENANTS BY CLIENT

    

    
      	
              3.1

            	
              CLIENT’s
      business is solvent, and CLIENT is presently paying its
      debts.  CLIENT has never filed for bankruptcy under federal or
      state law or had an involuntary bankruptcy petition filed against
      it.  CLIENT is presently and shall continue to be compliant with
      all required tax payments and payment agreements and shall continue to
      make timely payment of all required
taxes.

            

    

    

    
      	
              3.2

            	
              Each
      ACCOUNT offered for transfer and assignment to ACTION hereunder is and
      shall be, as of the time of such offer, a bona fide and existing
      obligation of CLIENT’s CUSTOMER for the payment of money arising out of
      the sale by CLIENT of goods or the performance by CLIENT of services,
      which is owed to CLIENT, and is, to the best of CLIENT’s knowledge, free
      from any liens, claims, disputes, off-sets or equities of third parties,
      that CLIENT is the lawful owner of and has good and undisputed title to
      the ACCOUNTs offered for transfer and assignment to ACTION hereunder, and
      that no ACCOUNT offered or to be offered for transfer and assignment to
      ACTION hereunder represents consigned or guaranteed sales, and that no
      ACCOUNT offered or to be offered for transfer and assignment shall be due
      from an AFFILIATE..

            

    

    

    
      	
              3.3

            	
              CLIENT
      has not transferred, pledged or granted a security interest in CLIENT’s
      ACCOUNTs to any other party and CLIENT will not transfer, pledge or grant
      a security interest to any other party in said ACCOUNTs for the term of
      this Agreement and for as long as CLIENT is indebted to ACTION
      hereunder.  Additionally, CLIENT will not transfer or assign
      ACCOUNTs except to ACTION for the period of this Agreement, and/or for as
      long as any indebtedness whatsoever remains owing by CLIENT to
      ACTION.

            

    

    

    
      	
              3.4

            	
              FINANCIAL
      INFORMATION: CLIENT will furnish ACTION financial statements as reasonably
      required by ACTION from time to time and will furnish ACTION, satisfactory
      proof of payment and/or compliance with all Federal, State and/or local
      tax requirements.  ACTION will keep any information it receives
      with respect to the financial or other records of CLIENT or CLIENT’s
      CUSTOMERS strictly confidential.  This covenant of
      confidentially survives this
Agreement.

            

    

    

    
      	
              3.5

            	
              All
      financial records, statements, books or other documents shown to ACTION by
      CLIENT at any time, either before or after the signing of this Agreement,
      are true and accurate, to the best of CLIENT’s
  knowledge.

            

    

    

    
      	
              3.6

            	
              ACTION
      or any person designated by ACTION shall have the right at any time to
      inspect, audit, check and make copies or extracts from CLIENT’s books,
      records, journals, orders, receipts, and other correspondence and other
      data relating to CLIENT’s business and any other transaction between
      ACTION and CLIENT without hindrance or
delay.

            

    

    

    
      	
              3.7

            	
              CLIENT
      will not, under any circumstances or in any manner whatsoever, interfere
      with any of ACTION’s rights under this
  Agreement.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              3.8

            	
              CLIENT
      will promptly notify ACTION in writing of any change in the location of
      CLIENT’s place(s) of business, name, identity, legal entity, corporate
      structure, officers, principals, partners, and/or owners of
      CLIENT.

            

    

    

    
      	
              3.9

            	
              CLIENT
      has full power and authority to execute, deliver and perform this
      Agreement.

            

    

     

     

    IV.           FURTHER
PROMISES

    

    
      	
              4.1  

            	
              SECURITY
      INTEREST/COLLATERAL: CLIENT gives to ACTION, as collateral for the
      repayment of any and all obligations and liabilities whatsoever of CLIENT
      to ACTION, a security interest, under the Uniform Commercial Code, in the
      following described property (hereinafter collectively called
      “Collateral”): All presently existing or hereafter arising, now owned or
      hereafter acquired accounts, accounts receivable, contract rights, chattel
      paper, documents, instruments, general intangibles, reserves, reserve
      accounts, rebates, and all books and records (including without
      limitation, customer lists, computer programs, print outs, and other
      computer material and records) pertaining to the foregoing and all
      proceeds of the foregoing
      property.

            

    

    

    
      	
              4.2

            	
              NOTIFICATION:  ACTION
      will have the right under to notify any CUSTOMER to make payments directly
      to ACTION using the form of notification attached hereto as Exhibit
      A.

            

    

    

    
      
        	
                4.3

              	
                ASSIGNMENT:
      CLIENT shall from time to time at CLIENT’s option, transfer and assign
      ACCEPTABLE ACCOUNTs to ACTION, to be identified on a form known as
      ACTION’s Agreement for the Assignment of Invoices together with an exact
      copy of the original invoice and all supporting documents appropriate to
      CLIENT’s business and to the extent required an electronic file of the
      invoice information.

              
	 	 
	4.4  	INTEREST
      AND FEES:  ACTION agrees to provide financing to CLIENT for the
      fees as indicated
      below:

      

    

    

    
      	
              (a)

            	
              with
      respect advances outstanding hereunder, interest at a per annum rate equal
      to the Prime Rate of Wachovia Bank, N.A. (as such rate is announced from
      time to time, with changes in such rate to be effected on the first day of
      each month based on the Prime Rate in effect on the last business day of
      the prior month) plus one percent (1%) plus a monthly fee equal to
      three-quarters of one percent (0.75%), both to be billed monthly in
      arrears with payment due on the billing
date.

            

    

    

    
      	
              (b)

            	
              all
      other out of pocket costs and expenses incurred by ACTION;
      nothwithstanding the foregoing, ACTION as of the date of this Agreement
      does not anticipate incurring any out-of-pocket costs except for any
      expenses it incurs relating to searches of public records in the State of
      Georgia related to public filings and costs associated with recordation of
      UCC-1 filings and costs incurred by ACTION for bank wire transfers if
      requested by CLIENT.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              4.5

            	
              ADVANCE
      RATE: CLIENT may obtain from ACTION, subject to ACTION’s sole discretion,
      advances of up to ninety  percent (90%) of the net amount of
      ACCEPTABLE ACCOUNTs  transferred and assigned to ACTION
      hereunder.  Any amounts not advanced by ACTION hereunder may be
      held by ACTION and applied against charge-backs or any obligation of
      CLIENT to ACTION, known or anticipated, and shall not be due and payable
      to CLIENT until any and all obligations of CLIENT to ACTION are fully paid
      and/or satisfied.

            

    

    

    
      	
              4.6

            	
              RECOURSE:
      ACTION shall have full recourse against CLIENT when an ACCOUNT is
      not    paid by CUSTOMER when due, including without
      limitation, the right to charge-back any such ACCOUNT, if not paid within
      90 days of the date of purchase.

            

    

    

    
      	
              4.7

            	
              DISPUTED
      ACCOUNTS: CLIENT will immediately notify ACTION and accept back from
      ACTION any ACCOUNT subject to a dispute between CUSTOMER and CLIENT of any
      kind whatsoever.

            

    

    

    
      	
              4.8

            	
              HOLD
      IN TRUST: CLIENT will hold in trust and safekeeping, as the property of
      ACTION, and immediately turn over to ACTION the identical check or other
      form of payment received by CLIENT, whenever any payment on any ACCOUNT
      comes into CLIENT’s possession; any failure by CLIENT in this regard
      constitutes a default under this Agreement (pursuant to SECTION V
      hereinbelow) and may result in civil and/or criminal actions against
      CLIENT and /or the person(s) responsible for such
  failure.

            

    

    

    
      	
              4.9

            	
               RESPONSIBILITY
      FOR TAXES: All taxes and governmental charges with respect to goods or
      services represented by ACCOUNTs purchased by ACTION shall be the
      obligation and responsibility of CLIENT.  CLIENT has no
      obligation for ACTION’s income or property taxes or any other taxes with
      respect to ACTION’s business.

            

    

    

    
      	
              4.10
      

            	
              NOTICE
      OF LEVY: CLIENT will promptly notify ACTION of any material attachment,
      tax assessment or other legal process levied against CLIENT or any of
      CLIENT’s CUSTOMERS.

            

    

    

    
      	
              4.11

            	
              LEGAL
      FEES: Except as is prohibited by law, CLIENT shall pay to ACTION all
      reasonable costs and expenses, including without limitation attorney’s
      fees and expenses, and costs incurred by ACTION in the prosecution or
      enforcement of any of ACTION’s rights, claims or courses of action which
      arise out of, relate to or pertain to this
  Agreement.

            

    

    

    
      	
              4.12

            	
              POWER
      OF ATTORNEY: CLIENT hereby names, appoints, and constitutes ACTION
      and   its designees as CLIENT’s true and lawful
      attorney-in-fact, and does hereby request, authorize, empower and direct
      ACTION or its designee, for and in the name and instead of CLIENT, either
      in CLIENT’s name or ACTION’s name
to:

            

    

    

    
      	
              (a)

            	
              compromise,
      adjust or settle any claim of a customer with respect to an
      ACCOUNT;

            

    

    

    
      	
              (b)

            	
              demand,
      sue for, collect and give release for any and all monies due or to become
      due on ACCOUNTs;

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (c)

            	
              make
      any and all corrections or completions on any of the invoices or other
      documents constituting the
ACCOUNTS;

            

    

    

    
      	
              (d)

            	
              endorse
      CLIENT’s name an any checks, drafts, instruments or other evidences of
      payment with respect to any ACCOUNT or to otherwise collect the
      same;

            

    

    

    
      	
              (e)

            	
              receive,
      open and dispose of all mail addressed to CLIENT with respect to any
      ACCOUNT; and

            

    

    

    
      	
              (f)

            	
              do
      all other acts and things necessary to carry out the purpose and intent of
      this agreement. All acts of ACTION as attorney-in-fact are hereby ratified
      and approved and ACTION shall not be liable for any errors of commission
      or omission nor for any error of or mistake of law or fact excepting acts
      constituting gross negligence or willful misconduct.  This power
      of attorney in coupled with an interest and is irrevocable for so long as
      CLIENT is indebted to ACTION; provided it shall be exercised only upon an
      event of default and the serving of written notice to CLIENT of ACTION’s
      invoking of the prescribed remedies for default .  The authority
      granted ACTION shall remain in full force and effect until all assigned
      accounts are paid in full and any indebtedness of CLIENT to ACTION is
      discharged.

            

    

     

    
      
        	
                4.13 

              	
                ACH
      AUTHORIZATION:  In order to satisfy any of the obligations to
      ACTION under this Agreement, CLIENThereby
      authorizes ACTION to initiate electronic debit or credit entries through
      the Automated Clearing House system to any bank account maintained by
      CLIENT wherever
located.

              

      

    

     

     

    V.           DEFAULT

     

    
      	
              5.1

            	
              EVENTS
      OF DEFAULT: Any one or more of the following shall be a default
      hereunder:

            

    

    

    
      	
              (a)

            	
              CLIENT’s
      breach of any promise, covenant or warranty under this Agreement or any
      other agreements between CLIENT and ACTION or obligation of CLIENT to
      ACTION, including without limitation, payment of any indebtedness to
      ACTION when due;

            

    

    

    
      	
              (b)

            	
              the
      appointment of any receiver or trustee of all or a substantial portion of
      the assets of CLIENT; insolvency or inability to pay debts as they mature;
      a general assignment for the benefit of creditors; the voluntary or
      involuntary filing of a petition for relief under any bankruptcy or
      similar law;

            

    

    

    
      	
              (c)

            	
              issuance
      of any levies of attachment, executions, tax assessments or similar
      process against the Collateral;

            

    

    

    
      	
              (d)

            	
              CLIENT’s
      tender to ACTION of information that is knowingly false or incorrect in
      any material respect.

            

    

    

    
      	
              5.2

            	
              REMEDIES
      AFTER DEFAULT: In the event of any default, and upon serving written
      notice to CLIENT of such default and ACTION’s intent to avail itself of
      its remedies hereunder, ACTION may do any one or more of the
      following:

            

    

    

    
      	
              (a)

            	
              declare
      any indebtedness including outstanding ACCOUNTS purchased by ACTION,
      immediately due and payable;

            

    

    

    
      	
              (b)

            	
              notify
      any CUSTOMER of CLIENT to make payments directly to ACTION with respect to
      any and all ACCOUNTS of CLIENT;

            

    

    

    
      	
              (c)

            	
              require
      CLIENT to send copies of records and files pertaining to ACCOUNTs to
      ACTION and enter the premises of CLIENT and make copies of the COLLATERAL
      and the records pertaining to the ACCOUNTs and any other
      COLLATERAL;

            

    

    

    
      	
              (d)

            	
              hold
      CLIENT liable for any deficiency.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
              (e)

            	
              Invoke
      its authority under Sections 4.12 (a), (b), and (c)  above and
      exercise its power of attorney in CLIENT’s stead to take any action set
      forth therein ACTION deems
necessary.

            

    

     

     

    VI.           MISCELLANEOUS

     

    
      	
              6.1

            	
              MAXIMUM
      ACCOUNT: The outstanding amount of CLIENT’s account with ACTION (that is,
      at any time, the unpaid and owing principal amount of advances made by
      ACTION to CLIENT) shall not exceed
  $3,000,000.00.

            

    

    

    
      
        	
                6.2

              	
                TERMINATION:
      This Agreement shall continue in full force and effect until terminated
      upon written notice of such termination by either
party.

              
	 	 
	6.3	POST-TERMINATION:
      After termination CLIENT shall be liable to ACTION for the full and prompt
      payment of the full amount of ACCOUNTs which have been assigned to
      ACTION
      and are then outstanding and unpaid, disputed or undisputed, as well as
      any
      other indebtedness whatsoever.  ACTION
      shall continue to have a security interest in the COLLATERAL of CLIENT
      until any existing indebtedness of CLIENT to ACTION is paid in
      full.

      

    

    

    
      	
              6.4

            	
              APPLICABLE
      LAW: This Agreement shall be governed by and construed in accordance with
      the laws of the State of Georgia and shall be binding upon the successors,
      assigns and representatives of the parties hereto.  CLIENT and
      ACTION hereby agree that any suit, action, or proceeding arising out the
      subject matter hereof, or the interpretation, performance or breach of
      this Agreement shall be instituted in the Superior Court of the State of
      Georgia located in Atlanta, Fulton County, Georgia (hereinafter, “Fulton
      County Superior Court”).  CLIENT and ACTION hereby agree that
      Fulton County Superior Court is convenient to each party hereto and CLIENT
      and ACTION irrevocably submit to such jurisdiction, irrevocably agree to
      be bound by any judgment rendered thereby in connection with this
      Agreement, and forever waive any and all objections to jurisdiction or
      venue that each party may have under the laws of the State of Georgia or
      otherwise in those courts in any such suit, action or
      proceeding.  If any such proceeding is initiated in any other
      jurisdiction, CLIENT hereby waives any right to oppose any motion or
      application made by ACTION as a consequence of such proceeding having been
      commenced in a jurisdiction other than Fulton County Superior
      Court

            

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    
      	
              6.5 

            	
              ENTIRE
      AGREEMENT-AMENDMENT: This document contains the entire
      Agreement   between the parties as of the date specified
      below. This Agreement may be modified only by a written instrument
      executed by the parties hereto.

            

    

    

    

    

    Executed
and accepted this 17th day of July, 2009.

     

    
      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        
                                          
                                            
                                              
                                                
                                                  
                                                    
                                                      
                                                        
                                                          
                                                            
                                                              
                                                                
                                                                  
                                                                    
                                                                      
                                                                        
                                                                          
                                                                            
                                                                              
                                                                                
                                                                                  
                                                                                    
                                                                                      
                                                                                        
                                                                                          
                                                                                            
                                                                                              
                                                                                                
                                                                                                  
                                                                                                    
                                                                                                      
                                                                                                        
                                                                                                          
                                                                                                            
                                                                                                              	Attested
      By:	 	CLIENT:
      LATTICE INCORPORATED	 
	
                                                                                                                       

                                                                                                                    	 	 	 	
                                                                                                                       

                                                                                                                    	 
	
                                                                                                                      Corporate
      Secretary

                                                                                                                    	 	 	 	
                                                                                                                       

                                                                                                                    	 
	
                                                                                                                       

                                                                                                                    	 	 	BY:	
                                                                                                                      /s/ Paul Burgess

                                                                                                                    	 
	 	 	 	 	 	 
	SEAL 	 	 	TITLE:  
      	Chief
      Executive Officer	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Attested
      By: 	 	CLIENT:
      RICCIARDI TECHNOLOGIES, INC.	 
	 	 	 	 	 	 
	Corporate
      Secretary  	 	 	BY:	 /s/	 
	 	 	 	 	 	 
	SEAL	 	 	TITLE:	Vice
      President	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	Attested
      By:  	 	CLIENT:
      SYSTEM MANAGEMENT ENGINEERING, INC.	 
	 	 	 	 	 	 
	Corporate
      Secretary 	 	 	BY:	/s/	 
	 	 	 	 	 	 
	SEAL	 	 	TITLE:	President	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	ACTION:
      ACTION CAPITAL CORPORATION	 
	 	 	 	 	 	 
	 	 	 	BY:	/s/	 
	 	 	 	 	 	 
	 	 	 	TITLE:	President	 

                                                                                                            

                                                                                                          

                                                                                                        

                                                                                                      

                                                                                                    

                                                                                                  

                                                                                                

                                                                                              

                                                                                            

                                                                                          

                                                                                        

                                                                                      

                                                                                    

                                                                                  

                                                                                

                                                                              

                                                                            

                                                                          

                                                                        

                                                                      

                                                                    

                                                                  

                                                                

                                                              

                                                            

                                                          

                                                        

                                                      

                                                    

                                                  

                                                

                                              

                                            

                                          

                                        

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

    

     

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    EXHIBIT
A

    

     

    INSTRUMENT
OF ASSIGNMENT

    

    

    FOR VALUE
RECEIVED and pursuant to the Assignment of Claims Act of 1940, as amended, 31
U.S. C. 3727, 41 U. S. C.
15, the undersigned contractor hereby assigns to:

    

    Action Capital
Corporation  (DUNS 04 547 0622) (CAGE CODE 0Z006)

    P.
O. Box 56346

    Atlanta,
GA  30343 
EFT
PAYMENT INFORMATION: Wachovia Bank N.A.  

    Routing
#  061000227  Checking Acct # 2000124210282

    

    All
monies now due or to become due to from, and not already paid the United States
of America to the undersigned under the following Contract:

    

    CONTRACT  NUMBER:

    

    THIS
CONTRACT WAS ISSUED BY:

    

    THIS
CONTRACT WAS ISSUED TO:

    

    THIS
CONTRACT WAS ISSUED FOR:

     

    _________________is
hereby requested to remit all payments due under this Contract to the
assignee.  We hereby certify that no other assignment has been made
and that no additional assignment will be made.  Assignor authorizes
payment of moneys now due or to become due to be made to the
Assignee.

    

    IN
WITNESS WHEREOF, the undersigned Assignor has caused this assignment to be
executed this ___th day of
_____ , 2009.

     

    
      
        
          
            
              	 	 	 
	 	 	 	(Assignor)
	 	 	 	 
	
                       

                    	
                      By:
      

                    	 	(Signature)
	 	 	 	(Print
      Name)
	 	 	 	(Title)
	 	 	 	 

            

          

        

      

    

     

    

    AUTHORITY TO MAKE
ASSIGNMENT

     

    I,
_____________________________________, certify that I am the Secretary of the
corporation  named as Assignor herein; that
_____________________________who executed this Assignment on behalf of the
said  corporation was then President & CEO of the said
corporation, acting for and on its behalf by authority of its governing
body.

     

    
      
        
          	 	 	 	 	 
	
                   

                	 	 	
                   

                	 
	
                  (Date) 

                	 	 	
                   (Signature)

                	 

        

      

    

                   

    (Corporate Seal)

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