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” ).
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:
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(a)
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Security Agreement from Borrower in
favor of Lender dated of even date with the Note (herein the
“ Security Agreement” );
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(b)
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Loan Agreement by and between
Borrower and Lender dated of even date with the Note (herein the
“ Loan Agreement” );
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(c)
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Financing Statement filed in
Gwinnett County, Georgia records, File no. 067-2003-010805 (herein
the “ Borrower Financing Statement
”).
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(d)
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Negative Pledge Agreement by and
between Borrower and Lender dated of even date with the Note
(herein the “ Negative Pledge Agreement”
);
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(e)
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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
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(f)
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Subordination Agreements from
Borrower and certain of the Guarantors in favor of Lender dated of
even date with the Note (herein “ Subordination
Agreements” ).
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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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