Document:

Principal Amount $____________

 

EXHIBIT

10.22

 

Principal

Amount: $200,000.00

Dated:

April 27, 2001

NOTE

 

This Note is made and entered into effect as of this

27th day of April, 2001 by and between ATSI Communications, Inc., a

Delaware corporation (“ATSI”) with its principal place of business located at

6000 Northwest Parkway, Suite 110, San Antonio, Texas, and TeleSpan, Inc.

(“Accomodation Maker”), a Texas corporation and wholly-owned subsidiary of ATSI

located at 6000 Northwest Parkway, San Antonio, Texas, and GlobalSCAPE, Inc.

(“Lender”), located at 6000 Northwest Parkway, Suite 100, San Antonio, Texas.

 

For value received, ATSI promises to pay TWO HUNDRED

THOUSAND U.S. Dollars ($200,000) to the order of Lender at 6000 Northwest

Parkway, Suite 100, San Antonio, Texas, or such other place in San Antonio,

Texas as Lender may designate in writing, with interest on the unpaid principal

amount at the rate of twelve percent (12%) per annum until paid in full with a

final maturity of May 31, 2001. Lender may charge interest on overdue amounts at

the lesser of one percent (1.0%) per month or the highest non-usurious rate

permitted by applicable law.

 

TeleSpan executes this Note as Accomodation Maker as

defined in the Texas Uniform Commercial Code and has simultaneously executed

the Security Agreement dated this date to secure its obligation under this

Note.

 

Upon and at any time after any Default (as defined

below) all amounts due under this Note, at the option of Lender and without

demand, notice or legal process of any kind, may be declared and immediately

shall become due and payable.  

“Default” shall mean the occurrence or existence of any one or more of

the following events or conditions:  (i)

ATSI fails to pay when due any amount due under this Note and fails to cure

such late payment within five (5) days following written receipt of notice of

the late payment; or (ii) ATSI makes an assignment for the benefit of

creditors, or any proceeding is filed or commenced by or against ATSI under any

bankruptcy, reorganization, arrangement of debt, insolvency, readjustment of

debt or receivership law or statute, and any such proceeding remains

undismissed or unstayed for a period of 30 days, or any of the actions sought

in any such proceeding (including, without limitation, the entry of an order

for relief against, or the appointment of a receiver, trustee, custodian or

other similar official for, ATSI or for any substantial part of its property)

shall occur, or ATSI shall take any action to authorize any of the actions set

forth above in this subsection.

 

ATSI hereby waives presentment, demand of payment,

protest or notice with respect to the indebtedness evidenced by this Note

including, without limitation, notice the Note, or any portion thereof, is due.

 

 

If Lender prevails in any action to collect on or

enforce this Note or claims arising from the execution of this Note, then

Lender’s reasonable attorneys’ fees and costs will also be payable under this

Note.

 

Neither party may assign this Note without the prior

written consent of the other, which shall not be unreasonably withheld.

 

This Note may be modified only by a written document

that refers specifically to this Note and is signed by both parties.  A party’s failure or delay in enforcing any

provision of this Note will not be deemed a waiver of that party’s rights with

respect to that provision or any other provision of this Note.  A party’s waiver of any of its rights under

this Note is not a waiver of any of its other rights with respect to a prior,

contemporaneous or future occurrence, whether similar in nature or not. This

Note shall be binding upon and inure to the benefit of the successors and

assigns of the parties hereto.

 

THIS NOTE SHALL BE GOVERNED BY THE LAWS OF THE STATE

OF TEXAS, AND LENDER AGREES TO SUBMIT TO THE JURISDICATION OF THE COURTS OF THE

STATE OF TEXAS FOR ALL PURPOSES.  SOLE

AND EXCLUSIVE VENUE FOR ANY DISPUTE OR DISAGREEMENT ARISING UNDER OR RELATING

TO THIS NOTE SHALL BE IN A COURT SITTING IN BEXAR COUNTY, SAN ANTONIO, TEXAS.

 

MADE this 27th day of April, 2001.

 

	

  ATSI

  Communications, Inc.

  	

  GlobalSCAPE,

  Inc.

  
	

   

  	

   

  
	

  By:  

  	

  /s/ H. Douglas Saathoff

  	

  By:  

  	

  /s/ Tim Nicolaou

  
	

   

  	

   

  
	

  TeleSpan,

  Inc. as Accomodation

  Maker

  	

   

  
	

   

  	

   

  
	

  By: 

  	

   /s/ H.

  Douglas SaathoffCOMMERCIAL SECURITY AGREEMENT

EXHIBIT 10.23

SECURITY

AGREEMENT

 

	

  Borrower:

  	

   

  	

  TeleSpan, Inc.

  
	

   

  	

   

  	

  6000 Northwest Pkwy., Suite 110

  
	

   

  	

   

  	

  San Antonio, TX 78249

  
	

   

  	

   

  	

   

  
	

  Lender:

  	

   

  	

  TeleSpan, Inc.

  
	

   

  	

   

  	

  Northwest Pkwy., Suite 100

  
	

   

  	

   

  	

  San Antonio, TX 78249

  	

   

  

 

Principal Amount:  $200,000.00

Date of Note:  April 27, 2001

Maturity:  May 31, 2001

 

 

THIS SECURITY AGREEMENT is entered into

between TeleSpan, Inc. (referred to below as “Grantor”); and GlobalSCAPE, Inc.

(referred to below as “Lender”).  For

valuable consideration, Grantor grants to Lender a security interest in the

Collateral to secure the Indebtedness and agrees that Lender shall have the

rights stated in this Agreement with respect to the Collateral, in addition to

all other rights which Lender may have by law.

 

DEFINITIONS. 

The following words shall have the following meanings when used in this

Agreement.  Terms not otherwise defined

in this Agreement shall have the meanings attributed to such terms in the

Uniform Commercial Code.  All references

to dollar amounts shall mean amounts in lawful money of the United States of

America.

 

Agreement.  

The word “Agreement” means this Security Agreement, as this Security

Agreement may be amended or modified from time to time, together with all

exhibits and schedules attached to this Security Agreement from time to time.

 

Collateral. 

The word “Collateral” means the following described property of Grantor,

whether now owned or hereafter acquired, whether now existing or hereafter

arising, and wherever located:

 

Grantor’s Accounts, as that definition may be

amended from time to time, under that Carrier Service Agreement for

International Terminating Traffic dated November 25, 1998 between Grantor and

Qwest Communications, and;

 

 In addition, the word

“Collateral” includes all the following, whether now owned or hereafter

acquired, whether now existing or hereafter arising, and wherever located:

 

(a) 

All attachments, accessions, accessories, tools, parts, supplies,

increases, and additions to and all replacements of and substitutions for any

property described above.

 

(b) 

All products and produce of any of the property described in this

Collateral section.

 

1

 

(c) 

All accounts, general intangibles, instruments, rents, monies, payments,

and all other rights, arising out of a sale, lease, or other disposition of any

of the property described in this Collateral section.

 

(d) 

All proceeds (including insurance proceeds) from the sale, destruction,

loss, or other disposition of any of the property described in this Collateral

section.

 

(e) 

All records and data relating to any of the property described in this

Collateral section, whether in the form of a writing, photograph, microfilm,

microfiche, or electronic media, together with all of Grantor’s right, title,

and interest in and to all computer software required to utilize, create,

maintain, and process any such records or data on electronic media.

 

Event of Default. 

The words “Event of Default” mean and include without limitation any of

the Events of Default set forth below in the section titled “Events of Default.”

 

Grantor. 

The word “Grantor” means American TeleSource International, Inc., its

successors and assigns.

 

Guarantor. 

The word “Guarantor” means and includes without limitation each and all

of the guarantors, sureties, and accommodation parties in connection with the

Indebtedness.

 

Indebtedness. 

The word “Indebtedness” means the Indebtedness evidenced by the Note,

including all principal and earned interest, together with all other

Indebtedness and costs and expenses for which Grantor is responsible under this

Agreement or under any of the Related Documents.  In addition, the word “Indebtedness” includes all other

obligations, debts and liabilities, plus interest thereon, of Grantor, or any

one or more of them, to Lender, as well as all claims by Lender against

Grantor, or any one or more of them, whether existing now or later; whether

they are voluntary or involuntary, due or not due, direct or indirect, absolute

or contingent, liquidated or unliquidated; whether Grantor may be liable

individually or jointly with others; whether Grantor may be obligated as

guarantor, surety, accommodation party or otherwise.

 

Lender. 

The word “Lender” means GlobalSCAPE, Inc., its successors and assigns.

 

Note. 

The word “Note” means the note dated April 27, 2001, in the principal

amount of $200,000.00 from Grantor to Lender, together with all renewals of,

extensions of, modifications of, refinancings of, consolidations of and

substitutions for the note or credit agreement.

 

Related Documents. 

The words “Related Documents” mean and include without limitation all

promissory notes, credit agreements, loan agreements, environmental agreements,

guaranties, security agreements, mortgages, deeds of trust, and all other

instruments, agreements and documents, whether now or hereafter existing,

executed in connection with the Indebtedness.

 

2

 

OBLIGATIONS OF GRANTOR. 

Grantor warrants and covenants to Lender as follows:

 

Perfection of Security Interest. 

Grantor agrees to execute such financing statement and to take whatever

other actions are requested by Lender to perfect and continue Lender’s security

interest in the Collateral.  Upon

request of Lender, Grantor will deliver to Lender any and all of the documents

evidencing or constituting the Collateral, and Grantor will note Lender’s

interest upon any and all chattel paper if not delivered to Lender for

possession by Lender.  Grantor hereby

appoints Lender as its irrevocable attorney-in-fact for the purpose of

executing any documents necessary to perfect or to continue the security

interest granted in this Agreement. 

Lender may at any time, and without further authorization from Grantor,

file a carbon, photographic or other reproduction of any financing statement or

of this Agreement for use as a financing statement. Grantor will reimburse

Lender for all expenses for the perfection and the continuation of the

perfection of Lender’s security interest in the Collateral.  Grantor promptly will notify Lender before

any change in Grantor’s name including any change to the assumed business names

of Grantor.  This is a continuing

Security Agreement and will continue in effect even though all or any part of

the Indebtedness is paid in full and even though for a period of time Grantor

may not be indebted to Lender.

 

No Violations. 

The execution and delivery of this Agreement will not violate any law or

agreement governing Grantor or to which Grantor is a party, and its certificate

or articles of incorporation and bylaws do not prohibit any term or condition

of this Agreement.

 

Enforceability of Collateral. 

To the extent the Collateral consists of accounts, chattel paper, or

general intangibles, the Collateral is enforceable in accordance with its

terms, is genuine, and complies with applicable laws concerning form, content

and manner of preparation and execution, and all persons appearing to be

obligated on the Collateral have authority and capacity to contract and are in

fact obligated as they appear to be on the Collateral.

 

Location of the Collateral. 

Grantor, upon request of Lender, will deliver to Lender in form

satisfactory to Lender a schedule of real properties and Collateral locations

relating to Grantor’s operations, including without limitation the following:

(a) all real property owned or being purchased by Grantor; (b) all real

property being rented or leased by Grantor; (c) all storage facilities owned,

rented, leased, or being used by Grantor; and (d) all other properties where

Collateral is or may be located.  Except

in the ordinary course of its business, Grantor shall not remove the Collateral

from its existing locations without the prior written consent of Lender.

 

Removal of Collateral. 

Grantor shall keep the Collateral (or to the extent the Collateral

consists of intangible property such as accounts, the records concerning the

Collateral) at Grantor’s address shown above, or at such other locations as are

acceptable to Lender.  Except in the

ordinary course of its business, including the sales of inventory, Grantor

shall not remove the Collateral from its existing locations without the prior

written consent of Lender.  To the

extent that the Collateral consists of vehicles, or other titled property,

Grantor shall not take or permit any action which would require application for

certificates of title for the vehicles outside the State of Texas, without the

prior written consent of Lender.

 

Transactions Involving Collateral. 

Except for inventory sold or accounts collected in the ordinary course

of Grantor’s business, Grantor shall not sell, offer to sell, or otherwise

transfer or 

 

3

 

dispose of the Collateral. 

While Grantor is not in default under this Agreement, Grantor may sell

inventory, but only in the ordinary course of its business and only to buyers

who qualify as a buyer in the ordinary course of business.  A sale in the ordinary course of Grantor’s

business does not include a transfer in partial or total satisfaction of a debt

or any bulk sale.  Grantor shall not

pledge, mortgage, encumber or otherwise permit the Collateral to be subject to

any lien, security interest, encumbrance, or charge, other than the security

interest provided for in this Agreement, without the prior written consent of

Lender.  This includes security

interests even if junior in right to the security interests granted under this

Agreement.  Unless waived by Lender, all

proceeds from any disposition of the Collateral (for whatever reason) shall be

held in trust for Lender and shall not be commingled with any other funds;

provided however, this requirement shall not constitute consent by Lender to

any sale or other disposition.  Upon

receipt, Grantor shall immediately deliver any such proceeds to Lender.

 

Title. 

Grantor represents and warrants to Lender that it holds good and

marketable title to the Collateral, free and clear of all liens and

encumbrances except for the lien of this Agreement.  No financing statement covering any of the Collateral is on file

in any public office other than those which reflect the security interest

created by this Agreement or to which Lender has specifically consented.  Grantor shall defend Lender’s rights to the

Collateral against the claims and demands of all other persons.

 

 Collateral Schedules and

Locations.  Insofar as the

Collateral consists of inventory, Grantor shall deliver to Lender, as often as

Lender shall require, such lists, descriptions, and designations of such

Collateral as Lender may require to identify the nature, extent, and location

of such Collateral.  Such information

shall be submitted for Grantor and each of its subsidiaries or related

companies.

 

Maintenance and Inspection of Collateral. 

Grantor shall maintain all tangible Collateral in good condition and

repair.  Grantor will not commit or permit

damage to or destruction of the Collateral or any part of the Collateral.  Lender and its designated representatives

and agents shall have the right at all reasonable times to examine, inspect,

and audit the Collateral wherever located. 

Grantor shall immediately notify Lender of all cases involving the

return, rejection, repossession, loss or damage of or to any Collateral; of any

request for credit or adjustment or of any other dispute arising with respect

to the Collateral; and generally of all happenings and events affecting the

Collateral or the value or the amount of the Collateral.

 

Taxes, Assessments and Liens. 

Grantor will pay when due all taxes, assessments and liens upon the

Collateral, its use or operation, upon this Agreement, upon any promissory note

or notes evidencing the Indebtedness, or upon any of the other Related

Documents.  Grantor may withhold any

such payment or may elect to contest any lien if Grantor is in good faith

conducting an appropriate proceeding to contest the obligation to pay and so

long as Lender’s interest in the Collateral is not jeopardized in Lender’s sole

opinion.  If the Collateral is subjected

to a lien which is not discharged within fifteen (15) days, Grantor shall deposit

with Lender cash, a sufficient corporate surety bond or other security

satisfactory to Lender in an amount adequate to provide for the discharge of

the lien plus any interest, costs, attorneys’ fees or other charges that could

accrue as a result of foreclosure or sale of the Collateral.  In any contest Grantor shall defend itself

and Lender and shall satisfy any final adverse judgment before enforcement

against the Collateral.  Grantor shall

name Lender as an additional obligee under any surety bond furnished in the

contest proceedings.

 

4

 

Compliance with Governmental Requirements. 

Grantor shall comply promptly with all laws, ordinances, rules and

regulations of all governmental authorities, nor or hereafter in effect,

applicable to the ownership, production, disposition, or use of the

Collateral.  Grantor may contest in good

faith any such law, ordinance or regulation and withhold compliance during any

proceeding, including appropriate appeals, so long as Lender’s interest in the

Collateral, in Lender’s opinion, is not jeopardized.

 

EXPENDITURES BY LENDER. 

If not discharged or paid when due, Lender may (but shall not be

obligated to) discharge or pay any amounts required to be discharged or paid by

Grantor under this Agreement, including without limitation all taxes, liens,

security interests, encumbrances, and other claims, at any time levied or

placed on the Collateral.  Lender also

may (but shall not be obligated to) pay all costs for insuring, maintaining and

preserving the Collateral.  All such

expenditures incurred or paid by Lender for such purposes will then bear

interest at the Note rate from the date incurred or paid by Lender to the date

of repayment by Grantor.  All such

expenses shall become a part of the Indebtedness and, at Lender’s option, will

(a) be payable on demand, (b) be added to the balance of the Note and be

apportioned among and be payable with any installment payments to become due

during either (i) the term of any applicable insurance policy or (ii) the

remaining term of the Note, or (c) be treated as a balloon payment which will

be due and payable at the Note’s maturity. 

This Agreement also will secure payment of these amounts.  Such right shall be in addition to all other

rights and remedies to which Lender may be entitled upon the occurrence of an

Event of Default.

 

EVENTS OF DEFAULT. 

Each of the following shall constitute an Event of Default under this

Agreement:

 

Default on Indebtedness. 

Failure of Grantor to make any payment when due on the Indebtedness.

 

Other Defaults. 

Failure of Grantor to comply with or to perform any other term,

obligation, covenant or condition contained in this Agreement of in any of the

Related Documents or in any other agreement between Lender and Grantor.

 

Default in Favor of Third Parties. 

Should Borrower or any Grantor default under any loan, extension of

credit, security agreement, purchase or sales agreement, or any other

agreement, in favor of any other creditor or person that may materially affect

any of Borrower’s property or Borrower’s or Grantor’s ability to repay the

Loans or perform their respective obligations under this Agreement or any of

the Related Documents.

 

False Statements. 

Any warranty, representation or statement made or furnished to Lender by

or on behalf of Grantor under this Agreement, the Note or the Related Documents

is false or misleading in any material respect, either now or at the time made

or furnished.

 

Defective Collateralization. 

This Agreement or any of the Related Documents ceases to be in full

force and effect (including failure of any collateral documents to create a

valid and perfected security interest or lien) at any time and for any reason.

 

5

 

Insolvency. 

The dissolution or termination of Grantor’s existence as a going

business, the insolvency of Grantor, the appointment of a receiver for any part

of Grantor’s property, any assignment for the benefit of creditors, and type of

creditor workout, or the commencement of any proceeding under any bankruptcy or

insolvency laws by or against Grantor.

 

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 Grantor or by any governmental agency against the Collateral or any

other collateral securing the Indebtedness. 

This includes a garnishment of any of Grantor’s deposit accounts with

Lender.

 

Events Affecting Guarantor. 

Any of the preceding events occurs with respect to any Guarantor of any

of the Indebtedness or such Guarantor dies or becomes incompetent.

 

Adverse Change. 

A material adverse change occurs in Grantor’s financial condition, or

Lender believes the prospect of payment or performance of the Indebtedness is

impaired.

 

Insecurity. 

Lender, in good faith, deems itself insecure.

 

RIGHTS AND REMEDIES ON DEFAULT. 

If an Event of Default occurs under this Agreement, at any time

thereafter, Lender shall have all the rights of a secured party under the Texas

Uniform Commercial Code.  In addition

and without limitation, Lender may exercise any one or more of the following

rights and remedies:

 

Accelerate Indebtedness. 

Lender may declare the entire Indebtedness immediately due and payable,

without notice.

 

Assemble Collateral. 

Lender may require Grantor to deliver to Lender all or any portion of

the Collateral and any and all certificates of title and other documents

relating to the Collateral.  Lender may

require Grantor to assemble the Collateral and make it available to Lender at a

place to be designated by Lender. 

Lender also shall have full power to enter, provided Lender does so

without a breach of the peace or a trespass, upon the property of Grantor to

take possession of and remove the Collateral. 

If the Collateral contains other goods not covered by this Agreement at

the time of the repossession, Grantor agrees Lender may take such other goods,

provided that Lender makes reasonable efforts to return them to Grantor after

repossession.

 

Sell the Collateral. 

Lender shall have full power to sell, lease, transfer, or otherwise deal

with the Collateral or proceeds thereof in its own name or that of

Grantor.  Lender may sell the Collateral

at public auction or private sale. 

Unless the Collateral threatens to decline speedily in value or is of a

type customarily sold on a recognized market, Lender will give Grantor

reasonable notice of the time after which any private sale or any other

intended disposition of the Collateral is to be made.  The requirements of reasonable notice shall be met if such notice

is given at least ten (10) days before the time of the sale or

disposition.  All expenses relating to

the disposition of the Collateral, including without limitation the expenses of

retaking, holding, insuring, preparing for sale and selling the Collateral,

shall become a part of the Indebtedness secured by this Agreement and shall be

payable on demand, with interest at the Note rate from date of expenditure

until repaid.

 

6

 

Appoint Receiver. To the extent permitted by

applicable law, Lender shall have the following rights and remedies regarding

the appointment of a receiver:  (a)

Lender may have a receiver appointed as a matter of right, (b) the receiver may

be an employee of Lender and may serve without bond, and (c) all fees of the

receiver and his or her attorney shall become part of the Indebtedness secured

by this Agreement and shall be payable on demand, with interest at the Note

rate from date of expenditure until repaid.

 

Collect Revenues, Apply Accounts. 

Lender, either itself or through a receiver, may collect the payments,

rents, income, and revenues from the Collateral.  Lender may at any time in its discretion transfer any Collateral

into its own name or that of its nominee and receive the payments, rents,

income, and revenues therefrom and hold the same as security for the

Indebtedness or apply it to payment of the Indebtedness in such order of

preference as Lender may determine. 

Insofar as the Collateral consists of accounts, general intangibles,

insurance policies, instruments, chattel paper, choses in action, or similar

property, Lender may demand, collect, receipt for, settle, compromise, adjust,

sue for, foreclose, or realize on the Collateral as Lender may determine,

whether or not Indebtedness or Collateral is then due.  For these purposes, Lender may, on behalf of

and in the name of Grantor, receive, open and dispose of mail addressed to

Grantor; change any address to which mail and payments are to be sent; and

endorse notes, checks, drafts, money orders, documents of title, instruments

and items pertaining to payment, shipment, or storage of any Collateral.  To facilitate collection, Lender may notify

account debtors and obligors on any Collateral to make payments directly to

Lender.

 

Obtain Deficiency. 

If Lender chooses to sell any or all of the Collateral, Lender may

obtain a judgment against Grantor for any deficiency remaining on the

Indebtedness due to Lender after application of all amounts received from the

exercise of the rights provided in this Agreement.  Grantor shall be liable for a deficiency even if the transaction

described in this subsection is a sale of accounts or chattel paper.

 

Other Rights and Remedies. 

Lender shall have all the rights and remedies of a secured creditor

under the provisions of the Uniform Commercial Code, as may be amended from

time to time.  In addition, Lender shall

have and may exercise any or all other rights and remedies it may have

available at law, in equity, or otherwise.

 

Cumulative Remedies. 

All of Lender’s rights and remedies, whether evidenced by this Agreement

or the Related Documents or by any other writing, shall be cumulative and may

be exercised singularly or concurrently. 

Election by Lender to pursue any remedy shall not exclude pursuit of any

other remedy, and an election to make expenditures or to take action to perform

an obligation of Grantor under this Agreement, after Grantor’s failure to

perform, shall not affect Lender’s right to declare a default and to exercise

its remedies.

 

MISCELLANEOUS PROVISIONS. 

The following miscellaneous provisions are a part of this Agreement:

 

Amendments. 

This Agreement, together with any Related Documents, constitutes the

entire understanding and agreement of the parties as to the matters set forth

in this Agreement.  No alteration of or

amendment to this Agreement shall be effective unless given in writing and

signed by the party or parties sought to be charged or bound by the alteration

or amendment.

 

7

 

Applicable Law. 

This Agreement has been delivered to Lender and accepted by Lender in

the State of Texas.  If there is a

lawsuit, and if the transaction evidenced by this Agreement occurred in Bexar

County, Grantor agrees upon Lender’s request to submit to the jurisdiction of

the courts of Bexar County, the State of Texas.  This Agreement shall be governed by and construed in accordance

with the laws of the State of Texas and applicable Federal laws.

 

Attorneys’ Fees and Other Costs. 

Lender may hire an attorney to help collect the Note if Grantor does not

pay, and Grantor will pay Lender’s reasonable attorneys’ fees.  Grantor also will pay Lender all other

amounts actually incurred by Lender as court costs, lawful fees for filing,

recording, or releasing to any public office any instrument securing the Note;

the reasonable cost actually for repossessing, storing, preparing for sale, and

selling any security; and fees for noting a lien on or transferring a

certificate of title to any motor vehicle offered as security for the Note, or

premiums or identifiable charges received in connection with the sale of

authorized insurance.

 

Caption Headings. 

Caption headings in this Agreement are for convenience purposes only and

are not to be used to interpret or define the provisions of this Agreement.

 

Notices. 

All notices required to be given under this Agreement shall be given in

writing, may be sent by telefacsimile (unless otherwise required by law) and

shall be effective when actually delivered or when deposited with a nationally

recognized overnight courier or deposited in the United States mail, first

class, postage prepaid, addressed to the party to whom the notice is to be

given at the address shown above.  Any

party may change its address for notices under this Agreement by giving formal

written notice to the other parties, specifying that the purpose of the notice

is to change the party’s address.  To

the extent permitted by applicable law, if there is more than one Grantor,

notice to any Grantor will constitute notice to all Grantors.  For notice purposes, Grantor will keep

Lender informed at all times of Grantor’s current address(es).

 

Power of Attorney. 

Grantor hereby appoints Lender as its true and lawful attorney-in-fact,

irrevocably, with full power of substitution to do the following:  a) to demand, collect, receive, receipt for,

sue and recover all sums of money or other property which may now or hereafter

become due, owing or payable from the Collateral; (b) to execute, sign and

endorse any and all claims, instruments, receipts, checks, drafts or warrants

issued in payment for the Collateral; (c) to settle or compromise any and all

claims arising under the Collateral, and, in the place and stead of Grantor, to

execute and deliver its release and settlement for the claim; and (d) to file

any claim or claims or to take any action or institute or take part in any

proceedings, either in its own name or in the name of Grantor, or otherwise,

which in the discretion of Lender may seem to be necessary or advisable.  This power is given as security for the

Indebtedness, and the authority hereby conferred is and shall be irrevocable

and shall remain in full force and effect until renounced by Lender.

 

Severability. 

If a court of competent jurisdiction finds any provision of this

Agreement to be invalid or unenforceable as to any person or circumstance, such

finding shall not render that provision invalid or unenforceable as to any

other persons or circumstances.  If

feasible, any such offending provision shall be deemed to be modified to be

within the limits of enforceability or validity;  however, if the offending provision cannot be so modified, it

shall be stricken and all other provisions of this Agreement in all other respects

shall remain valid and enforceable.

 

8

 

Successor Interests. 

Subject to the limitations set forth above on transfer of the

Collateral, this Agreement shall be binding upon and inure to the benefit of

the parties, their successors and assigns.

 

Waiver. 

Lender shall not be deemed to have waived any rights under this

Agreement unless such waiver is given in writing and signed by Lender.  No delay or omission on the part of Lender

in exercising any right shall operate as a waiver of such right or any other

right.  A waiver by Lender of a

provision of this Agreement shall not prejudice or constitute a waiver of

Lender’s right otherwise to demand strict compliance with that provision or any

other provision of this Agreement.  No

prior waiver by lender, nor any course of dealing between Lender and Grantor,

shall constitute a waiver of any of Lender’s rights or of any of Grantor’s

obligations as to any future transactions. 

Whenever the consent of Lender is required under this Agreement, the

granting of such consent by Lender in any instance shall not constitute

continuing consent to subsequent instances where such consent is required and

in all cases such consent may be granted or withheld in the sole discretion of

Lender.

 

FACSIMILE DOCUMENTS AND SIGNATURES. 

For purposes of negotiating and finalizing this document, if this

document is transmitted by facsimile machine (“fax”), it shall be treated for

all purposes as an original document. 

Additionally, the signature of any party on this document transmitted by

way of a fax machine shall be considered for all purposes as an original

signature.  Any such faxed document

shall be considered to have the same binding legal effect as an original

document.  At the request of any party,

any faxed document shall be re-executed by each signatory party in an original

form.

 

GRANTOR ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS SECURITY

AGREEMENT, AND GRANTOR AGREES TO ITS TERMS. 

THIS AGREEMENT IS DATED APRIL 27, 2001.

 

	

  GRANTOR:

  	

  LENDER

  
	

   

  	

   

  
	

   

  	

   

  
	

  TeleSpan, Inc.

  	

  GlobalSCAPE, Inc.

  
	

   

  	

   

  
	

  /s/ H. Doulgas Saathoff

  	

   

  	

  /s/ Tim Nicolaou

  	

   

  
	

   

  	

   

  
	

  H. Douglas Saathoff

  	

  Tim Nicolaou

  
	

  Chief Financial Officer

  	

  Chief Executive Officer

  
				

 

9

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