EXHIBIT 10.12
ADDENDUM #2 TO SETTLEMENT AGREEMENT
International Microcomputer Software, Inc. and XxxXxxxx.xxx, Inc.
(hereinafter collectively "IMSI") and Imageline, Inc., Xxxxxx X.
Xxxxxxx, III, and any assignees (hereinafter collectively "Imageline")
hereby agree to amend the Settlement Agreement dated July 27, 2001 and
amended September 24, 2001 as follows:
Imageline and IMSI hereby agree that in the event IMSI defaults on any payments
pursuant to the Settlement Agreement and IMSI does not cure the default within
30 days of notice from Imageline; then interest on the remaining amounts due
shall begin to accrue at the rate of 12% per annum and be payable to Imageline
until such default is cured. In addition, a one-time penalty of 5% of the
remaining amounts due at the time of default shall be due to Imageline within
fifteen (15) business days of any uncured default.
IMSI further agrees to begin the monthly payments to Imageline on Friday,
October 5, 2001 by wire transfer to an account designated by Imageline, and to
continue to make monthly payments on or before the 5th of each month thereafter.
The effective date of the settlement with Imageline shall be 9/30/01.
All other terms and conditions of the Settlement Agreement shall remain as
originally written and are hereby confirmed.
Dated: 10\5\01 Dated: 10\5\01
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By: /s/ XXXXXX XXXXXX By: /s/ XXXXXX X. XXXXXXX III
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IMSI Imageline
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