Document:

exv10w1

 

Exhibit 10.1

FOURTH AMENDMENT TO CREDIT AGREEMENT

     THIS FOURTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered into as of the
31st day of July, 2007 by and among the lenders listed on the signature pages hereof (the
“Lenders”), PENSON WORLDWIDE, INC., a Delaware corporation (“Borrower”), GUARANTY
BANK, as Administrative Agent, Swing Line Lender, Arranger and Letter of Credit Issuer for the
Lenders (the “Administrative Agent”), and Wachovia Bank, National Association, as
Documentation Agent (the “Documentation Agent”), each to the extent and in the manner
provided for in the Credit Agreement (defined below and herein so called).

BACKGROUND

     A. The Lenders, the Borrower, the Documentation Agent and the Administrative Agent are parties
to that certain Credit Agreement dated as of May 26, 2006, (as it may have been or may be amended,
extended, renewed, or restated from time to time, the “Credit Agreement”). Capitalized
terms defined in the Credit Agreement and not otherwise defined herein shall be used herein as
defined in the Credit Agreement.

     B. The Borrower has requested an amendment to the certain provisions of the Credit Agreement,
and the Administrative Agent and the Lenders have agreed to such amendment, subject to the terms
and conditions contained herein.

     NOW, THEREFORE, in consideration of the covenants, conditions and agreements hereafter set
forth, and for other good and valuable consideration, the receipt and adequacy of which are all
hereby acknowledged, the parties hereto covenant and agree as follows:

     1. AMENDMENTS TO THE CREDIT AGREEMENT. The Credit Agreement is hereby amended as
follows:

  (a) Section 1.01 of the Credit Agreement is hereby amended by deleting the
definition of “Broker Dealer Subsidiaries” in its entirety and replacing it with the
following:

“Broker Dealer Subsidiaries” means Penson Financial
Services, Inc., Penson Financial Service Canada, Inc., Penson
Financial Services Limited, Penson GHCO, Penson Financial Futures,
Inc., SAH, Inc. and each other broker dealer and/or futures
commission merchant direct or indirect Subsidiary of the Borrower
engaged in activities substantially similar to those of such Persons
(including subsets of such activities).

  (b) Section 1.01 of the Credit Agreement is hereby amended by deleting
sections (a) and (c) of the definition of “Change of Control” and replacing them with the
following:

FOURTH AMENDMENT TO CREDIT AGREEMENT — Page 1

 

 

“Change of Control” means an event or series of events by which:

(a) other than (i) the Current Management Group and (ii) J. Kelly
Gray, his immediate family, and their respective Affiliates, any
“person” or “group,” (as such terms are used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, but excluding any
employee benefit plan of such person or its subsidiaries, and any
person or entity acting in its capacity as trustee, agent or other
fiduciary or administrator of any such plan), becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Securities Exchange Act of 1934, except that a person or group shall
be deemed to have “beneficial ownership” of all securities that such
person or group has the right to acquire, whether such right is
exercisable immediately or only after the passage of time (such
right, an “option right”)), directly or indirectly, of 25% or more
of the equity securities of the Borrower entitled to vote for
members of the board of directors or equivalent governing body of
the Borrower on a fully-diluted basis (and taking into account all
such securities that such person or group has the right to acquire
pursuant to any option right);

(c) other than those Persons excluded under paragraph (a) above, any
Person or two or more Persons acting in concert shall have acquired
by contract or otherwise, or shall have entered into a contract or
arrangement that, upon consummation thereof, will result in its or
their acquisition of the power to exercise, directly or indirectly,
control over the management or policies of the Borrower, or control
over the equity securities of the Borrower entitled to vote for
members of the board of directors or equivalent governing body of
the Borrower on a fully-diluted basis (and taking into account all
such securities that such Person or group has the right to acquire
pursuant to any option right) representing 25% or more of the
combined voting power of such securities.

   (c)
Section 1.01 of the Credit Agreement is hereby amended by deleting
subsection (b) of the definition of “Permitted Acquisitions” in its entirety and replacing
it with the following:

(b) as soon as available, but not less than ten (10) Business Days
prior to any such acquisition, the Borrower has provided to the
Lenders (i) a copy of the information regarding such acquisition as
provided to the Borrower’s board of directors and (ii) a Compliance
Certificate (A) setting forth the covenant calculations both prior
to and after giving effect to the proposed acquisition, and (B)
certifying that no Default shall have occurred and be continuing
after giving effect to such acquisition;

FOURTH AMENDMENT TO CREDIT AGREEMENT — Page 2

 

 

  (d) Section 1.01 of the Credit Agreement is hereby amended by deleting the last
paragraph in the definition of “Permitted Acquisitions” (added by the First Amendment) in
its entirety and replacing it with the following:

Notwithstanding anything contained herein to the contrary,
acquisitions during any fiscal year for which the Cash Purchase
Consideration does not exceed an aggregate amount of $10,000,000
shall be considered “Permitted Acquisitions” whether or not the
Borrower has provided the notices, certificates and certifications
required by subsection (b) of this definition, so long as all such
notices, certificates and certifications are provided to the Lenders
within 30 days following the effective date of each such
acquisition.

  (e) Section 6.06 of the Credit Agreement is hereby amended by deleting it in
its entirety and replacing it with the following:

6.06 Maintenance of Properties. (a) Maintain, preserve and
protect all of its properties and equipment in the operation of its
business in good working order and condition, ordinary wear and tear
excepted; and (b) make all necessary repairs thereto and renewals
and replacements thereof, except in case of clauses (a) and (b) if
the failure to do so would not reasonably be expected to have a
Material Adverse Effect or would not violate Section 7.05
hereof.

     2. CONSENT TO REPURCHASE OF EQUITY INTERESTS. Notwithstanding anything contained in
Section 7.02, 7.03 and 7.06 of the Agreement, on or after August 1, 2007 the
Borrower shall be permitted to repurchase its Equity Interests in an amount required to purchase
shares of its capital stock valued (at the time of such purchase) of up to an aggregate amount of
$25,000,000.

     3. CONDITIONS OF EFFECTIVENESS. This Amendment shall not be effective until each of
the following conditions precedent shall have been met to the satisfaction of the Administrative
Agent:

     (a) Since the date of the most recent financial statements provided to the Lenders,
there shall have been no event or circumstance, either individually or in the aggregate,
that has had or would reasonably be expected to have a Material Adverse Effect;

     (b) No Default shall exist after giving effect to this Amendment;

     (c) The Administrative Agent shall have received confirmation that the Borrower has
paid all expenses and fees arising in connection with all matters undertaken or performed at
the request of the Administrative Agent; and

FOURTH AMENDMENT TO CREDIT AGREEMENT — Page 3

 

 

     (d) The Administrative Agent shall have received, in form and substance satisfactory to
the Administrative Agent, a duly executed copy of this Amendment and the other applicable
Loan Documents, together with such additional documents, instruments and certificates as the
Administrative Agent shall require in connection therewith, all in form and substance
satisfactory to the Administrative Agent.

     4. REPRESENTATIONS AND WARRANTIES. The representations and warranties contained
herein and in all other Loan Documents, as amended hereby, shall be true and correct as of the date
hereof as if made on the date hereof.

     5. REFERENCE TO CREDIT AGREEMENT. Upon the effectiveness of this Amendment, each
reference in the Credit Agreement to “this Agreement,” “hereunder,” or words of like import shall
mean and be a reference to the Credit Agreement, as affected and amended by this Amendment.

     6. COUNTERPARTS; EXECUTION VIA FACSIMILE OR ELECTRONIC TRANSMITTAL. This Amendment
may be executed in one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. This Amendment may be validly
executed and delivered by facsimile or other electronic transmission.

     7. GOVERNING LAW: BINDING EFFECT. This Amendment shall be governed by and construed
in accordance with the laws of the State of Texas and shall be binding upon the Borrower, the
Administrative Agent, the Documentation Agent, each Lender and their respective successors and
assigns.

     8. HEADINGS. Section headings in this Amendment are included herein for convenience
of reference only and shall not constitute a part of this Amendment for any other purpose.

     9. LOAN DOCUMENT. This Amendment is a Loan Document and is subject to all provisions
of the Credit Agreement applicable to Loan Documents, all of which are incorporated in this
Amendment by reference the same as if set forth in this Amendment verbatim.

     10. SEVERABILITY. Any provisions of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this
Amendment and the effect thereof shall be confined to the provisions so held to be invalid or
unenforceable.

     11. RATIFICATIONS. Except as expressly modified and superseded by this Amendment, the
terms and provisions of the Credit Agreement and the other Loan Documents are ratified and
confirmed and shall continue in full force and effect. The representations and warranties
contained herein and in all other Loan Documents, as amended hereby, shall be true and correct as
of, and as if made on, the date hereof. The Credit Agreement as amended hereby shall continue to
be legal, valid, binding and enforceable in accordance with its respective terms.

     12. NO ORAL AGREEMENTS. THIS WRITTEN AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT
THE FINAL AGREEMENT BETWEEN THE

FOURTH AMENDMENT TO CREDIT AGREEMENT — Page 4

 

 

PARTIES 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.

[Remainder of page left intentionally blank. Signature pages follow.]

FOURTH AMENDMENT TO CREDIT AGREEMENT — Page 5

 

 

     IN WITNESS WHEREOF, the Borrower, the Lenders, the Documentation Agent and the Administrative
Agent have executed this Amendment as of the date first above written.

	 	 	 	 	 
	 	BORROWER:

PENSON WORLDWIDE, INC.

 	 
	 	By:  	/s/ Roger J. Engemoen, Jr.
 	 
	 	 	Name:  	Roger J. Engemoen, Jr. 	 
	 	 	Title:  	Chairman 	 
	 

SIGNATURE PAGE TO FOURTH AMENDMENT TO CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	GUARANTY BANK,

as Administrative Agent, a Lender, Letter of Credit

Issuer and Swing Line Lender

 	 
	 	By:  	/s/Amanda Cone
 	 
	 	 	Name:  	Amanda Cone 	 
	 	 	Title:  	Vice President 	 

SIGNATURE PAGE TO FOURTH AMENDMENT TO CREDIT AGREEMENT

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	WACHOVIA BANK, NATIONAL

ASSOCIATION, as Documentation Agent

and a Lender

 	 
	 	By:  	/s/ Eric Habres
 	 
	 	 	Name:  	Eric Habres 	 
	 	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO FOURTH AMENDMENT TO CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Garfield Johnson
 	 
	 	 	Name:  	Garfield Johnson 	 
	 	 	Title:  	Senior Vice President 	 
	 

SIGNATURE PAGE TO FOURTH AMENDMENT TO CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	REGIONS BANK

 	 
	 	By:  	/s/ Robin Ingari
 	 
	 	 	Name:  	Robin Ingari 	 
	 	 	Title:  	Senior Vice President 	 

SIGNATURE PAGE TO FOURTH AMENDMENT TO CREDIT AGREEMENT

 

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 	 	SOVEREIGN BANK
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

SIGNATURE PAGE TO FOURTH AMENDMENT TO CREDIT AGREEMENTexv10w1

 

    Exhibit 10.1
    

    CHANGE IN TERMS
    AGREEMENT

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

    Principal

    $84,881.80

	
 
	
 
	
    Loan Date

    08-02-2007
	
 
	
 
	
    Maturity

    01-02-2008
	
 
	
 
	
    Loan No

    479195
	
 
	
 
	
    Call / Coll

     
	
 
	
 
	
    Account

     
	
 
	
 
	
    Officer

    025
	
 
	
 
	
    Initials

     

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

    References
    in the shaded area are for Lender’s use only and do not
    limit the applicability of this document to any particular loan
    or item.
    

    Any
    item above containing “***” has been omitted due to
    text length limitations.
    

 

	 	 	 
	

    Borrower:  Z-AXIS
    CORPORATION

    THE
    QUADRANT — 5445 DTC PARKWAY STE. 450

    GREENWOOD VILLAGE, CO 80111

    

	
 
	

    Lender:  COLORADO
    BUSINESS BANK

    DENVER

    821 17TH ST.

    DENVER, CO 80202 

 

 

 

	 	 	 
	

    Principal
    Amount:  $84,881.80

	
 
	
    Date of
    Agreement:  August 2,
    2007
    

 

    DESCRIPTION
    OF EXISTING
    INDEBTEDNESS.  AN
    ORIGINAL PROMISSORY NOTE DATED JUNE 2, 2003 IN THE
    PRINCIPAL AMOUNT OF $500,000.00 WITH AN ORIGINAL MATURITY DATE
    OF JULY 2, 2004 AND INCLUDING ANY AND ALL SUBSEQUENT
    EXTENSIONS OR MODIFICATIONS THEREFROM.
    

 

    DESCRIPTION
    OF CHANGE IN
    TERMS.  EXTENSION
    OF MATURITY DATE FROM AUGUST 2, 2007 TO JANUARY 2,
    2008. IN ADDITION, THIS PROMISSORY NOTE WILL NO LONGER EVIDENCE
    A REVOLVING LINE OF CREDIT. ALL OTHER TERMS AND CONDITIONS WILL
    REMAIN THE SAME.
    

 

    PROMISE
    TO
    PAY.  Z-AXIS
    CORPORATION (“Borrower”) promises to pay COLORADO
    BUSINESS BANK (“Lender”), or order, in lawful money of
    the United States of America, the principal amount of
    Eighty-four Thousand Eight Hundred Eighty-one & 80/100
    Dollars ($84,881.80), together with interest on the unpaid
    principal balance from August 2, 2007, until paid in
    full.

 

    PAYMENT.  Subject
    to any payment changes resulting from changes in the Index,
    Borrower will pay this loan in accordance with the following
    payment schedule: one principal payment of $14,881.80 on
    August 10, 2007, during which interest continues to accrue
    on the unpaid principal balances at an interest rate based on
    the COLORADO BUSINESS BANK PRIME RATE (currently 8.250%), plus a
    margin of 1.500 percentage points, resulting in an initial
    interest rate of 9.750%; 4 monthly consecutive principal
    payments of $15,000.00 each, beginning September 2, 2007,
    during which interest continues to accrue on the unpaid
    principal balances at an interest rate based on the COLORADO
    BUSINESS BANK PRIME RATE (currently 8.250%), plus a margin of
    1.500 percentage points, resulting in an initial interest
    rate of 9.750%; 4 monthly consecutive interest payments,
    beginning September 2, 2007, with interest calculated on
    the unpaid principal balances at an interest rate based on the
    COLORADO BUSINESS BANK PRIME RATE (currently 8.250%), plus a
    margin of 1.500 percentage points, resulting in an initial
    interest rate of 9.750%; and one principal and interest payment
    of $10,083.96 on January 2, 2008, with interest calculated
    on the unpaid principal balances at an interest rate based on
    the COLORADO BUSINESS BANK PRIME RATE (currently 8.250%), plus a
    margin of 1.500 percentage points, resulting in an initial
    interest rate of 9.750%. This estimated final payment is based
    on the assumption that all payments will be made exactly as
    scheduled and that the index does not change; the actual final
    payment will be for all principal and accrued interest not yet
    paid, together with any other unpaid amounts on this loan.
    Notwithstanding the foregoing, the rate of interest accrual
    described for any principal only payment stream applies only to
    the extent that no other interest rate for any other payment
    stream applies. Unless otherwise agreed or required by
    applicable law, payments will be applied first to any accrued
    unpaid interest; then to principal; then to any late charges;
    and then to any unpaid collection costs. Interest on this loan
    is computed on a
    365/360
    simple interest basis; that is, by applying the ratio of the
    annual interest rate over a year of 360 days, multiplied by
    the outstanding principal balance, multiplied by the actual
    number of days the principal balance is outstanding. Borrower
    will pay Lender at Lender’s address shown above or at such
    other place as Lender may designate in writing.

 

    VARIABLE
    INTEREST
    RATE.  The
    interest rate on this loan is subject to change from time to
    time based on changes in an index which is the COLORADO BUSINESS
    BANK PRIME RATE (the “Index”). Lender will tell
    Borrower the current Index rate upon Borrower’s request.
    The interest rate change will not occur more often than each
    DAY. Borrower understands that Lender may make loans based on
    other rates as well. The Index currently is 8.250% per
    annum. The interest rate or rates to be applied to the
    unpaid principal balance during this loan will be the rate or
    rates set forth herein the “Payment” section.
    Notwithstanding any other provision of this Agreement, after the
    first payment stream, the interest rate for each subsequent
    payment stream will be effective as of the last payment date of
    the just-ending payment stream. NOTICE: Under no circumstances
    will the interest rate on this loan be more than the maximum
    rate allowed by applicable law. Whenever increases occur in the
    interest rate, Lender, at its option, may do one or more of the
    following: (A) increase Borrower’s payments to ensure
    Borrower’s loan will pay off by its original final maturity
    date, (B) increase Borrower’s payments to cover
    accruing interest, (C) increase the number of
    Borrower’s payments, and (D) continue Borrower’s
    payments at the same amount and increase Borrower’s final
    payment.
    

 

    PREPAYMENT.  Borrower
    agrees that all loan fees and other prepaid finance charges are
    earned fully as of the date of the loan and will not be subject
    to refund upon early payment (whether voluntary or as a result
    of default), except as otherwise required by law. Except for the
    foregoing, Borrower may pay without penalty all or a portion of
    the amount owed earlier than it is due. Early payments will not,
    unless agreed to by Lender in writing, relieve Borrower of
    Borrower’s obligation to continue to make payments
    

 

    under
    the payment schedule. Rather, early payments will reduce the
    principal balance due and may result in Borrower’s making
    fewer payments. Borrower agrees not to send Lender payments
    marked “paid in full”, “without recourse”,
    or similar language. If Borrower sends such a payment, Lender
    may accept it without losing any of the Lender’s rights
    under this Agreement, and Borrower will remain obligated to pay
    any further amount owed to Lender. All written communications
    concerning disputed amounts, including any check or other
    payment instrument that indicates that the payment constitutes
    “payment in full” of the amount owed or that is
    tendered with other conditions or limitations or as full
    satisfaction of a disputed amount must be mailed or delivered
    to: COLORADO BUSINESS BANK, ATTN: LOAN OPERATIONS, P.O.
    BOX 8779, DENVER, CO 80201.
    

 

    LATE
    CHARGE.  If
    a payment is 11 days or more late, Borrower will be charged
    5.000% of the unpaid portion of the regularly scheduled
    payment.
    

 

    INTEREST
    AFTER
    DEFAULT.  Upon
    default, including failure to pay upon final maturity, the
    interest rate on this loan shall be increased by adding a
    5.000 percentage point margin (“Default Rate
    Margin”). The Default Rate Margin shall also apply to each
    succeeding interest rate change that would have applied had
    there been no default. After maturity, or after this loan would
    have matured had there been no default, the Default Rate Margin
    will continue to apply to the final interest rate described in
    this Agreement. However, in no event will the interest rate
    exceed the maximum interest rate limitations under applicable
    law.
    

 

    DEFAULT.  Each
    of the following shall constitute an Event of Default under this
    Agreement:
    

 

    Payment
    Default.  Borrower
    fails to make any payment when due under the Indebtedness.
    

 

    Other
    Defaults.  Borrower
    fails to comply with or to perform any other term, obligation,
    covenant or condition contained in this Agreement or in any of
    the Related Documents or to comply with or to perform any term,
    obligation, covenant or condition contained in any other
    agreement between Lender and Borrower.
    

 

    False
    Statements.  Any
    warranty, representation or statement made or furnished to
    Lender by Borrower or on Borrower’s behalf under this
    Agreement or the Related Documents is false or misleading in any
    material respect, either now or at the time made or furnished or
    becomes false or misleading at any time thereafter.
    

 

    Insolvency.  The
    dissolution or termination of Borrower’s existence as a
    going business, the insolvency of Borrower, the appointment of a
    receiver for any part of Borrower’s property, any
    assignment for the benefit of creditors, any type of creditor
    workout, or the commencement of any proceeding under any
    bankruptcy or insolvency laws by or against Borrower.
    

 

    Creditor
    or Forfeiture
    Proceedings.  Commencement
    of foreclosure or forfeiture proceedings, whether by judicial
    proceeding, self-help, repossession or any other method, by any
    creditor of Borrower or by any governmental agency against any
    collateral securing the Indebtedness. This includes a
    garnishment of any of Borrower’s accounts, including
    deposit accounts, with Lender. However, this Event of Default
    shall not apply if there is a good faith dispute by Borrower as
    to the validity or reasonableness of the claim which is the
    basis of the creditor or forfeiture proceeding and if Borrower
    gives Lender written notice of the creditor or forfeiture
    proceeding and deposits with Lender monies or a surety bond for
    the creditor or forfeiture proceeding, in an amount determined
    by Lender, in its sole discretion, as being an adequate reserve
    or bond for the dispute.
    

 

    Events
    Affecting
    Guarantor.  Any
    of the preceding events occurs with respect to any guarantor,
    endorser, surety, or accommodation party of any of the
    Indebtedness or any guarantor, endorser, surety, or
    accommodation party dies or becomes incompetent, or revokes or
    disputes the validity of, or liability under, any Guaranty of
    the Indebtedness evidenced by this Note.
    

 

    Change
    in
    Ownership.  Any
    change in ownership of twenty-five percent (25%) or more of the
    common stock of Borrower.
    

 

    CHANGE IN TERMS
    AGREEMENT

	 	 	 	 	 
	

    Loan No: 479195
    

	
 
	
    (Continued)
	
 
	
    Page 2
    

 

 

    Adverse
    Change.  A
    material adverse change occurs in Borrower’s financial
    condition, or Lender believes the prospect of payment or
    performance of the Indebtedness is impaired.
    

 

    Insecurity.  Lender
    in good faith believes itself insecure.
    

 

    LENDER’S
    RIGHTS.  Upon
    default, Lender may declare the entire unpaid principal balance
    under this Agreement and all accrued unpaid interest immediately
    due, and then Borrower will pay that amount.
    

 

    ATTORNEYS’
    FEES;
    EXPENSES.  Lender
    may hire or pay someone else to help collect this Agreement if
    Borrower does not pay.  Borrower will pay Lender the reasonable
    costs of such collection.  This includes, subject to any limits
    under applicable law, Lender’s attorneys’ fees and
    Lender’s legal expenses, whether or not there is a lawsuit,
    including without limitation attorneys’ fees and legal
    expenses for bankruptcy proceedings (including efforts to modify
    or vacate any automatic stay or injunction), and appeals. If not
    prohibited by applicable law, Borrower also will pay any court
    costs, in addition to all other sums provided by law.
    

 

    JURY
    WAIVER.  Lender and Borrower hereby waive the right to
    any jury trial in any action, proceeding, or counterclaim
    brought by either Lender or Borrower against the
    other.

 

    GOVERNING
    LAW.  This Agreement will be governed by federal law
    applicable to Lender and, to the extent not preempted by federal
    law, the laws of the State of Colorado without regard to its
    conflicts of law provisions. This Agreement has been accepted by
    Lender in the State of Colorado.

 

    DISHONORED
    ITEM
    FEE.  Borrower
    will pay a fee to Lender of $32.00 if Borrower makes a payment
    on Borrower’s loan and the check or preauthorized charge
    with which Borrower pays is later dishonored.
    

 

    RIGHT
    OF
    SETOFF.  To
    the extent permitted by applicable law, Lender reserves a right
    of setoff in all Borrower’s accounts with Lender (whether
    checking, savings, or some other account). This includes all
    accounts Borrower holds jointly with someone else and all
    accounts Borrower may open in the future. However, this does not
    include any IRA or Keogh accounts, or any trust accounts for
    which setoff would be prohibited by law. Borrower authorizes
    Lender, to the extent permitted by applicable law, to charge or
    setoff all sums owing on the debt against any and all such
    accounts.
    

 

    CONTINUING
    VALIDITY.  Except
    as expressly changed by this Agreement, the terms of the
    original obligation or obligations, including all agreements
    evidenced or securing the obligation(s), remain unchanged and in
    full force and effect. Consent by Lender to this Agreement does
    not waive Lender’s right to strict performance of the
    obligation(s) as changed, nor obligate Lender to make any future
    change in terms. Nothing in this Agreement will constitute a
    satisfaction of the obligation(s). It is the intention of Lender
    to retain as liable parties all makers and endorsers of original
    obligation(s), including accommodation parties, unless a party
    is expressly released by Lender in writing. Any maker or
    endorser, including accommodation makers, will not be released
    by virtue of this Agreement. If any person who signed the
    original obligation does not sign this Agreement below, then all
    persons signing below acknowledge that this Agreement is given
    conditionally, based on the representation to Lender that the
    non-signing party consents to the changes and provisions of this
    Agreement or otherwise will not be released by it. This waiver
    applies not only to any initial extension, modification or
    release, but also to all such subsequent actions.
    

 

    SUCCESSORS
    AND
    ASSIGNS.  Subject
    to any limitations stated in this Agreement on transfer of
    Borrower’s interest, this Agreement shall be binding upon
    and inure to the benefit of the parties, their successors and
    assigns. If ownership of the Collateral becomes vested in a
    person other than Borrower, Lender, without notice to Borrower,
    may deal with Borrower’s successors with reference to this
    Agreement and the indebtedness by way of forbearance or
    extension without releasing Borrower from the obligations of
    this Agreement or liability under the indebtedness.
    

 

    NOTIFY
    US OF INACCURATE INFORMATION WE REPORT TO CONSUMER REPORTING
    AGENCIES.  Please
    notify us if we report any inaccurate information about your
    account(s) to a consumer reporting agency. Your written notice
    describing the specific inaccuracy(ies) should be sent to us at
    the following address: COLORADO BUSINESS BANK ATTN: LOAN
    OPERATIONS 821 17TH STREET DENVER, CO 80202.
    

 

    MISCELLANEOUS
    PROVISIONS.  If
    any part of this Agreement cannot be enforced, this fact will
    not affect the rest of the Agreement. Lender may delay or forgo
    enforcing any of its rights or remedies under this Agreement
    without losing them. Borrower and any other person who signs,
    guarantees or endorses this Agreement, to the extent allowed by
    law, waive presentment, demand for payment, and notice of
    dishonor. Upon any change in the terms of this Agreement, and
    unless otherwise expressly stated in writing, no party who signs
    this Agreement, whether as maker, guarantor, accommodation maker
    or endorser, shall be released from liability. As such parties
    agree that Lender may renew or extend (repeatedly and for any
    length of time) this loan or release any party or guarantor or
    collateral; or impair, fail to realize upon or perfect
    Lender’s security interest in the collateral; and take any
    other action demand necessary by Lender without the consent of
    or notice to anyone. All such parties also agree that Lender may
    modify this loan without the consent of or notice to anyone
    other than the party with whom the modification is made. The
    obligations under this Agreement are joint and several.
    

 

    PRIOR
    TO SIGNING THIS AGREEMENT, BORROWER READ AND UNDERSTOOD ALL THE
    PROVISIONS OF THIS AGREEMENT, INCLUDING THE VARIABLE INTEREST
    RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE
    AGREEMENT.

 

 

    BORROWER:

 

    Z-AXIS
    CORPORATION

 

	 	 	 
	

    By: /s/  Alan
    Treibitz

    
ALAN
    TREIBITZ, CEO/CFO of Z-AXIS

    CORPORATION

    

	
 
	

    By: /s/  Stephanie
    S. Kelso

    
STEPHANIE
    S. KELSO, President of Z-AXIS CORPORATION

    

 

 

    DISBURSEMENT
    REQUEST AND AUTHORIZATION

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	

    Principal

    $84,881.80

	
 
	
 
	
    Loan Date

    08-02-2007
	
 
	
 
	
    Maturity

    01-02-2008
	
 
	
 
	
    Loan No

    479195
	
 
	
 
	
    Call / Coll

     
	
 
	
 
	
    Account

     
	
 
	
 
	
    Officer

    025
	
 
	
 
	
    Initials

     

	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 
	
 

    References
    in the shaded area are for Lender’s use only and do not
    limit the applicability of this document to any particular loan
    or item.
    

    Any
    item above containing “***” has been omitted due to
    text length limitations.
    

 

	 	 	 	 	 	 	 
	
    Borrower:
	
 
	
    Z-AXIS CORPORATION

    THE QUADRANT - 5445 DTC PARKWAY STE. 450

    GREENWOOD VILLAGE, CO 80111
	
 
	
    Lender:
	
 
	
    COLORADO BUSINESS BANK

    DENVER

    821 17TH ST.

    DENVER, CO 80202 

 

    LOAN
    TYPE.
    This
    is a Variable Rate Nondisclosable Loan to a Corporation for
    $84,881.80 due on January 2, 2008. The reference rate
    (based on COLORADO BUSINESS BANK PRIME RATE) is added to the
    margin of 1.500%, resulting in an initial rate of 9.750.
    

 

    PRIMARY
    PURPOSE OF LOAN.
    The
    primary purpose of this loan is for:
    

 

			
	 	    o 
    
	
    Personal,
    Family, or Household Purposes or Personal Investment.

 

    x Business
    (Including Real Estate Investment).

 

    SPECIFIC
    PURPOSE.
    The
    specific purpose of this loan is: CHANGE IN TERMS.
    

 

    DISBURSEMENT
    INSTRUCTIONS.
    Borrower
    understands that no loan proceeds will be disbursed until all of
    Lender’s conditions for making the loan have been
    satisfied. Please disburse the loan proceeds of $84,881.80 as
    follows:
    

 

	 	 	 	 	 
	

    Other Disbursements:

	
 
	
    $
	
    84,881.80
	
 

	

    $84,881.80 EXTEND & MODIFY
    LOAN #479195 (CURRENT BALANCE)
    

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	

    Note Principal:

	
 
	
    $
	
    84,881.80
	
 

 

    CHARGES
    PAID IN CASH.
    Borrower
    has paid or will pay in cash as agreed the following charges:
    

 

	 	 	 	 	 
	

    Prepaid Finance Charges Paid in
    Cash:

	
 
	
    $
	
    2,000.00
	
 

	

    $2,000.00 LOAN FEE
    

	
 
	
 
	
 
	
 

	

    Other charges Paid in
    Cash:

	
 
	
    $
	
    15,610.70
	
 

	

    $14,881.80 PRINCIPAL PAYDOWN AS OF
    8-10-07
    

	
 
	
 
	
 
	
 

	

    $728.90 INTEREST DUE TO 8-2-07
    

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	

    Total Charges Paid in
    Cash:

	
 
	
    $
	
    17,610.70
	
 

 

    AUTHORIZATION.
    BORROWER
    AUTHORIZES LENDER TO DISBURSE THE LOAN PROCEEDS BY WIRE TRANSFER
    WHERE APPROPRIATE AND THIS AUTHORIZATION SHALL CONSTITUTE A
    PAYMENT ORDER FOR SUCH TRANSFERS.
    

 

    FINANCIAL
    CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS
    AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS
    TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE
    CHANGE IN BORROWER’S FINANCIAL CONDITION AS DISCLOSED IN
    BORROWER’S MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS
    AUTHORIZATION IS DATED AUGUST 2, 2007.

 

    BORROWER:

 

    Z-AXIS
    CORPORATION

 

	 	 	 
	

    By: /s/  Alan
    Treibitz

    
ALAN
    TREIBITZ, CEO/CFO of Z-AXIS

    CORPORATION

    

	
 
	

    By: /s/  Stephanie
    S. Kelso

    
STEPHANIE
    S. KELSO, President of Z-AXIS CORPORATION

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00128-of-00352.parquet"}]]