Document:

Unassociated Document

     

    THIRD
AMENDMENT TO

    SECOND
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     

     

    THIS THIRD AMENDMENT TO SECOND AMENDED
AND RESTATED LOAN AND SECURITY AGREEMENT (this “Amendment”)
is entered into as of January 31, 2010 by and among ARDINGER
FAMILY PARTNERSHIP, LTD., a Texas limited partnership (“Lender”),
VIEWCAST.COM, INC., F/K/A
MULTIMEDIA ACCESS CORPORATION, a Delaware corporation (“ViewCast”),
OSPREY TECHNOLOGIES,
INC., a Delaware corporation (“Osprey”),
and VIDEOWARE,
INC., a Delaware corporation (“VideoWare”,
and together with ViewCast and Osprey, “Borrower”).

    

    A.           Borrower
and Lender are party to that certain Second Amended and Restated Loan and
Security Agreement dated as of December 11, 2006 (as modified, amended, renewed,
extended, and restated from time to time, the “Loan
Agreement”).

    

    B.           Borrower
and Lender have agreed, upon the following terms and conditions, to amend the
Loan Agreement.

    

    NOW, THEREFORE, for good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Borrower and Lender agree as follows:

    

    1.           Terms and
References.  Unless otherwise stated in this Amendment (a)
terms defined in the Loan Agreement have the same meanings when used in this
Amendment, and (b) references to “Sections” are to sections of
the Loan Agreement.

    

    2.           Amendments
to Loan Agreement.

    

    (a)           Section 3(e)
is hereby amended to read as follows:

    

    “(e)           Payment
of Outstanding Obligation.  (i) Beginning the earlier of
(1) the date Borrower commences principal payments on any new line of credit
established after the date of this Amendment or (2) on and as of July 31, 2010,
Borrower shall make monthly principal payments in an amount equal to not less
than $21,422.34.  Such monthly payments shall be applied to the
Primary Principal Amount until the Primary Principal Amount is paid in full, and
such monthly payments shall thereafter be applied to the Secondary Principal
Amount.  (ii) Borrower shall repay all remaining outstanding
Unpaid Principal and all accrued and unpaid interest thereon on the Maturity
Date.”

    

    3.           Conditions
Precedent.  This Amendment shall not become effective until
each of the following conditions are fully satisfied, or waived in writing by
Lender; provided,
however, that upon such satisfaction or waiver, this Amendment shall
become effective as of the date set forth in the first paragraph hereof
(referred to as the “Effective
Date”):

    

    (a)            Lender
shall have received this Amendment, duly executed by Borrower;

    

    (b)           The
representations of each of Borrower as set forth in Section 5
(“Representations and
Warranties”) of the Loan Agreement shall be true in all material respects
on and as of the date of this Amendment as if made on and as of the date hereof
(except to the extent such representations expressly refer to an earlier date,
and except to the extent modified herein).  No Event of Default shall
have occurred and be continuing or will occur as a result of the execution of
this Amendment

    

    4.           Ratifications. Borrower (a)
ratifies and confirms all provisions of the Loan Documents as amended by this
Amendment, (b) ratifies and confirms that all Liens granted, conveyed, or
assigned to Lender under the Loan Documents are not released, reduced, or
otherwise adversely affected by this Amendment and continue to guarantee,
assure, and secure full payment and performance of the present and future
obligations, and (c) agrees to perform such acts and duly authorize, execute,
acknowledge, deliver, file, and record such additional documents, and
certificates as Lender may request in order to create, perfect, preserve, and
protect those guaranties, assurances, and Liens.

    
      
         

      

      
        1

        
          

        

      

      
         

      

    

    

    5.           Representations. Borrower
hereby represents and warrants to Lender that each of the representations and
warranties set forth in Section 5
(“Representations and
Warranties”) of the Loan Agreement is true and correct in all material
respects in each case as if made on and as of the date hereof (except to the
extent such representations expressly refer to an earlier date and except to the
extent modified herein) and Borrower expressly agrees that it shall be an
additional Event of Default under the Loan Agreement if this representation and
warranty shall prove to have been incorrect in any material
respect.

    

    6.           Release.  Borrower
hereby acknowledges and agrees that, as of the Effective Date, there are no
defenses, counterclaims, offsets, cross-complaints, claims or demands of any
kind or nature whatsoever to or against Lender or the terms and provisions of or
the obligations of Borrower under the Loan Documents and the other agreements,
instruments and documents evidencing, securing, governing, guaranteeing or
pertaining thereto, and that, as of the Effective Date, Borrower has no right to
seek affirmative relief or damages of any kind or nature from Lender with
respect to the transactions evidenced by the Loan Documents.  To the
extent any such defenses, counterclaims, offsets, cross-complaints, claims,
demands or rights exist, as of the Effective Date, Borrower hereby waives, and
hereby knowingly and voluntarily releases and discharges Lender and its
predecessors, officers, directors, agents, attorneys, employees, successors and
assigns, from all such claims, demands, actions, causes of action, defenses,
counterclaims, offsets, cross-complaints, damages, costs, expenses and
liabilities whatsoever, whether known or unknown, such waiver and release being
with full knowledge and understanding of the circumstances and effects of such
waiver and release and after having consulted legal counsel with respect
thereto.  Borrower hereby confirms and acknowledges that, as of the
Effective Date, the outstanding principal balance of the Indebtedness is Five
million one hundred forty one thousand three hundred sixty one dollars
($5,141,361.00).

    

    7.           Miscellaneous.  Unless
stated otherwise (a) the singular number includes the plural and vice versa and words of any
gender include each other gender, in each case, as appropriate, (b) headings and
captions may not be construed in interpreting provisions, (c) this Amendment
must be construed, and its performance enforced, under Texas law, and (d) if any
part of this Amendment is for any reason found to be unenforceable, all other
portions of it nevertheless remain enforceable.

    

    8.           Entireties.  The
Loan Agreement as amended by this Amendment represents the final agreement
between the parties about the subject matter of the Loan Agreement as amended by
this Amendment and may not be contradicted by evidence of prior,
contemporaneous, or subsequent oral agreements of the parties.  There
are no unwritten oral agreements between the parties.

    

    9.           Parties. This Amendment binds
and inures to Borrower, Lender, and their respective successors and
assigns.

    

    10.           Counterparts.  This
Amendment may be executed in two or more counterparts, each of which shall
constitute an original but all of which when taken together shall constitute but
one agreement.  Delivery of an executed counterpart of a signature
page to this Amendment by telecopier or by electronic mail shall be effective as
delivery of a manually executed counterpart of this Amendment.

    

    [Remainder
of Page Intentionally Left Blank; Signature Pages to Follow]

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

    EXECUTED
as of the date first stated above.

    

    
      	 
      	
              BORROWER:

            
	 
      	 
      	 
      
	 
      	
              VIEWCAST.COM,
      INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Laurie L. Latham

            
	 
      	 
      	
              Name:
      Laurie L. Latham

            
	 
      	 
      	
              Title:
      Chief Financial Officer

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              OSPREY
      TECHNOLOGIES, INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Laurie L. Latham

            
	 
      	 
      	
              Name:
      Laurie L. Latham

            
	 
      	 
      	
              Title:
      Chief Financial Officer

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              VIDEOWARE,
      INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Laurie L. Latham

            
	 
      	 
      	
              Name:
      Laurie L. Latham

            
	 
      	 
      	
              Title:
      Chief Financial Officer

            

    

    

     

    Signature
page to Third Amendment

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    LENDER:

    

    
      	
              ARDINGER FAMILY PARTNERSHIP,
      LTD.,

            	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
              By:

            	
              /s/ H.T. Ardinger, Jr.

            	 
      
	 
      	
              H.T.
      Ardinger, Jr.

            	 
      
	 
      	
              General
      Partner

            	 
      

    

    

    

    Signature
page to Third AmendmentEXHIBIT
10.1A

    

    SCHEDULE
A

    

    AGENT:

    

    
      	
              PRODUCTS:

            	
              All
      IDI Gear Products

            

    

    

    TERRITORY:

    

    
      	
              TRADE
      CHANNELS:

            	
              Retail
      Stores, Distributors

            

    

    

    
      	
              COMMISSION
      TERMS:

            	
              of
      net sales in the territory to be paid monthly by the 20th
      day of the month following the month of
payment.

            

    

    

    Commissions
to be reduced or reversed as follows:

    

    
      	
               
      

            	
              Bad
Debt:

            	
              Commission
      reduced to 1⁄2 (50%) on invoices paid 90 days after the due date. No
      commission paid on unpaid invoices.

            

    

     

    
      	
               
      

            	
              Returns:

            	
              Sales
      will be adjusted for all returns received during the
  month.

            

    

    

      	
               
      

            	
              Close-outs:

            	
              Commissions
      limited to XX%

            

    

    

    No
commissions paid on agent samples, donations, promotion, marketing use, or any
order not intended for resale.

    

    
      	
              Samples: 

            	
              Agent
      samples are at XX% off Master Distributor
  Pricing.

            

    

    

    
      
        
          
            	
                    Innovative
      Designs Inc.

                  	 
      	
                    Agent

                  
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	 
      	 
      	
                    By:

                  	 
      
	 
      	 
      	 
      	 
      	 
      
	
                    Name:
      Joseph Riccelli

                  	 
      	
                    Name:

                  
	
                    Title:
      Chief Executive Officer

                  	 
      	
                    Title:
      Sales Representative

                  
	
                    Date:

                  	 
      	
                    Date:

                  

          

        

      

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    SALES REPRESENTATIVE
AGREEMENT

    

    This
agreement is made as of __________ by and between Innovative Designs, Inc., a
Delaware corporation, (hereinafter referred to as “IDI”) and
____________________

    (hereinafter
referred to as “Agent”)

    

    
      	
               
      

            	
              1.

            	
              Agency:
      IDI hereby engages Agent as a sales representative to sell and promote
      certain IDI products (“Products”) in the territory and in the trade
      channels specified in Schedule A.

            

    

    
      	
               
      

            	
              2.

            	
              Duties
      of Agent: Agent shall solicit orders from prospective customers and
      promote sales of IDI’s products. Agent shall timely deliver to IDI any and
      all orders and any other information regarding prospective customers
      solicited or procured by Agent for IDI’s
  benefit.

            

    

    
      	
               
      

            	
              3.

            	
              Compensation
      of Agent: IDI shall pay to Agent, as compensation for Agent’s services,
      commissions on sales in Agent’s territory during the term of the Agreement
      as specified in Schedule A.

            

    

    
      	
               
      

            	
              4.

            	
              Term:
      The term of this Agreement shall be one (1) year from the date set forth
      above. Either party may terminate this Agreement upon (30) days’ written
      notice to the other. Upon termination, Agent shall promptly return all
      materials furnished by IDI to Agent, and not purchased from IDI by
      Agent.

            

    

    
      	
               
      

            	
              5.

            	
              Independent
      Contractor: Agent’s relationship with the Company hereunder shall be that
      of independent contractor, not an employee. Nothing contained in this
      Agreement shall make either party the agent of the other nor be construed
      to put the parties in the relationship of a fiduciary, co-partners or
      joint venture partners. Each party shall be responsible, without liability
      to the other, for the timely payment of its own taxes and other
      withholdings, deductions and payments required by
  law.

            

    

    
      	
               
      

            	
              6.

            	
              Limitations
      on Agent’s Authority: Agent shall make no representations to any person
      concerning the products or prices and terms under which IDI sells the
      products, except as authorized in writing by IDI. Agent and Agent’s
      employees, representatives, officers, directors, and subagents have no
      authority, either expressed or implied, to act on behalf of IDI to any
      contract or obligation, except as authorized in writing by IDI. Agent may
      employ salesman on such terms and conditions as Agent deems proper by
      Agent shall be solely and entirely responsible for such payment to Agent’s
      employees and subagents.

            

    

    
      	
               
      

            	
              7.

            	
              Indemnification:
      Agent shall hold harmless and indemnify IDI against any liability, loss,
      cost, expense or damage sustained by any person, party or entity, or to
      any property, which may result from any act or omission by Agent contrary
      to the provisions of this
paragraph.

            

    

    
      	
               
      

            	
              8.

            	
              Sales
      Expenses: Agent shall be responsible for, and shall pay, all costs and
      expenses associated with or related to Agent’s performances and
      obligations under this Agreement.

            

    

    
      	
               
      

            	
              9.

            	
              Controlling
      Law: the laws of the state of Pennsylvania shall govern this
      Agreement.

            

    

    
      	
               
      

            	
              10.

            	
              Assignment:
      Agent shall not assign the Agreement without the prior written consent of
      IDI, and any assignment made contrary to the provisions of this paragraph
      shall be null and void.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

    

    
      	
               
      

            	
              11.

            	
              Notice:
      All notices shall be sent via US mail and facsimile
  to:

            

    

    

    
      
        
          	
                	
                  If
      to IDI: 

                	
                  Innovative
      Designs, Inc.

                        
                    124
      Cherry Street

                    Pittsburgh,
      Pa  15223

                    FAX:
      412-782-5303

                  

                
	 	 	 
	 	
                  If
      to Agent:

                	As
      shown in Exhibit A

        

      

    

     

    
      	
               
      

            	
              12.

            	
              Entire
      Agreement and Subsequent Modifications: This agreement constitutes the
      entire agreement between the parties and superseded all prior and
      contemporaneous contracts, agreements, promises and understandings between
      the parties concerning the subject matter hereof. No part of this
      agreement may be altered, modified or otherwise changed in any respect by
      a subsequent writing executed by the parties or by their authorized
      representatives. No representations, circumstances or conditions occurring
      prior to this Agreement shall be used in any way by any party to modify
      this Agreement.

            

    

    

    IN WITNESS WHEREOF, the
parties have caused this agreement and Schedule A to be executed at Pittsburgh,
Pennsylvania on the date first above written.

    

    
      
        
          
            	
                    Innovative
      Designs, Inc

                  	 
      	
                    Agent

                  
	 
      	 
      	 
      	 
      	 
      
	
                    By:

                  	 
      	 
      	
                    By:

                  	 
      
	 
      	 
      	 
      	 
      	 
      
	
                    Name:
      Joseph Riccelli, CEO

                  	 
      	
                    Name:

                  
	 
      	 
      	 
      	 
      
	
                    Date:

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