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EIGHTH MODIFICATION TO LOAN DOCUMENTS

Addendum or Modifications

EIGHTH MODIFICATION TO LOAN DOCUMENTS | Document Parties: Chemfree Corporation | Fidelity Bank | Fidelity National Bank | Intelligent Systems Corporation | Newvisco, Inc | QS Technologies, Inc You are currently viewing:
This Addendum or Modifications involves

Chemfree Corporation | Fidelity Bank | Fidelity National Bank | Intelligent Systems Corporation | Newvisco, Inc | QS Technologies, Inc

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Title: EIGHTH MODIFICATION TO LOAN DOCUMENTS
Date: 8/11/2009
Industry: Software and Programming     Sector: Technology

EIGHTH MODIFICATION TO LOAN DOCUMENTS, Parties: chemfree corporation , fidelity bank , fidelity national bank , intelligent systems corporation , newvisco  inc , qs technologies  inc
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Exhibit 10.2

EIGHTH MODIFICATION TO LOAN DOCUMENTS

THIS EIGHTH MODIFICATION TO LOAN DOCUMENTS (herein the “ Modification” ) is made and entered into as of this 26th day of June, 2009, by and between Intelligent Systems Corporation, a Georgia corporation (herein the “ Borrower” ), QS Technologies, Inc., a Georgia corporation, Newvisco, Inc. , a Delaware corporation (formerly known as Visaer, Inc.), Corecard Software, Inc. , a Delaware corporation, and Chemfree Corporation , a Georgia corporation (the aforesaid four corporations being individually and collectively referred to herein as the “ Guarantors ”), and Fidelity Bank, a Georgia state chartered bank (f/k/a Fidelity National Bank ) (herein the “ Lender” ).

RECITALS :

WHEREAS, on October 1, 2003, Lender made a loan to Borrower in the original principal amount of One Million Five Hundred Thousand and No/100 Dollars ($1,500,000.00) (the “ Loan” ) evidenced by that certain Commercial Promissory Note dated October 1, 2003 executed by Borrower in favor of Lender (herein the “ Note” ).

WHEREAS, the Loan and the Note are secured and evidenced by, among other instruments, the following:

 

(a)

 

Security Agreement from Borrower in favor of Lender dated of even date with the Note (herein the “ Security Agreement” );

 

(b)

 

Loan Agreement by and between Borrower and Lender dated of even date with the Note (herein the “ Loan Agreement” );

 

 

(c)

 

Financing Statement filed in Gwinnett County, Georgia records, File no. 067-2003-010805 (herein the “ Borrower Financing Statement ”).

 

(d)

 

Negative Pledge Agreement by and between Borrower and Lender dated of even date with the Note (herein the “ Negative Pledge Agreement” );

 

 

(e)

 

Assignment of Policy as Collateral Security from Borrower in favor of Lender dated of even date with the Note (herein the “ Life Insurance Assignment” ); and

 

(f)

 

Subordination Agreements from Borrower and certain of the Guarantors in favor of Lender dated of even date with the Note (herein “ Subordination Agreements” ).

The Security Agreement, the Loan Agreement, the Financing Statement, the Negative Pledge Agreement, the Life Insurance Assignment and the Subordination Agreements are collectively referred to herein as the “ Loan Documents” .

WHEREAS, on October 1, 2003, each of the Guarantors executed a Guaranty in favor of Lender whereby each of the Guarantors guaranteed all of the obligations of Borrower to Lender contained under the Loan, Note and Loan Documents (herein collectively the “Guaranties”);

WHEREAS, in order to secure their obligations under the terms of the Guaranties, each of the Guarantors executed in favor of Lender certain Security Agreements dated October 1, 2003 (herein the “Guarantor Security Agreements”), which Guarantor Security Agreements are further evidenced by a Financing Statement filed in Gwinnett County, Georgia Records File No. 067-2003-010805 and that certain Financing Statement filed with the Delaware Department of State under Filing No. 20032749870 (herein collectively the “Guarantor Financing Statements”) (the Guaranties, the Guarantor Security Agreements and the Guarantor Financing Statements are herein collectively referred to herein as the “Guaranty Documents”);

 

 


 

WHEREAS, Lender, Borrower and the Guarantors entered into that certain First Modification of Loan Documents dated as of September 1, 2004 for the purpose of extending the Maturity Date of the Loan on the Note from September 1, 2004 to September 1, 2005 (all references to the Loan, Note, Loan Documents and Guaranty shall be as amended by the aforesaid First Modification of Loan Documents);

WHEREAS, Lender, Borrower and the Guarantors entered into that certain Second Modification of Loan Documents dated as of September 1, 2005 for the purpose of extending the Maturity Date of the Loan on the Note from September 1, 2005 to September 1, 2006 and to increase the maximum availability under the Loan and the Note from $1,500,000 to $2,000,000 (all references to the Loan, Note, Loan Documents and Guaranty shall be as amended by the aforesaid Second Modification of Loan Documents);

WHEREAS, Borrower requested and Lender agreed to increase the maximum availability under the Loan and the Note from $2,000,000 to $2,500,000 and Borrower, Guarantors and Lender entered into that certain Third Modification of Loan Documents dated as of June 16, 2006 in order to modify and ratify certain terms and provisions of the Note, the Loan Documents and the Guaranty Documents as more particularly set forth therein (all references to the Loan, Note, Loan Documents and Guaranty shall be as amended by the aforesaid Third Modification of Loan Documents);

WHEREAS, Borrower requested and Lender agreed to decrease the maximum availability under the Loan and the Note from $2,500,000 to $2,000,000 and to further extend the Maturity Date of the Loan and Note from September 1, 2006 to December 1, 2006, and Borrower, Guarantors and Lender entered into that certain Fourth Modification of Loan Documents dated on or about August 9, 2006 in order to modify and ratify certain terms and provisions of the Note, the Loan Documents and the Guaranty Documents as more particularly set forth therein (all references to the Loan, Note, Loan Documents and Guaranty shall be as amended by the aforesaid Fourth Modification of Loan Documents);

WHEREAS, Lender, Borrower and the Guarantors entered into that certain Fifth Modification of Loan Documents dated as of December 1, 2006 for the purpose of extending the Maturity Date of the Loan on the Note from December 1, 2006 to December 1, 2007 (all references to the Loan, Note, Loan Documents and Guaranty shall be as amended by the aforesaid Fifth Modification of Loan Documents);

WHEREAS, Lender, Borrower and the Guarantors entered into that certain Sixth Modification of Loan Documents dated as of December 1, 2007 for the purpose of extending the Maturity Date of the Loan on the Note from December 1, 2007 to December 1, 2008 (all references to the Loan, Note, Loan Documents and Guaranty shall be as amended by the aforesaid Fifth Modification of Loan Documents);

WHEREAS, Lender filed (i) a continuation statement i


 
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