REAFFIRMATION AND RATIFICATION AGREEMENT
Exhibit
10.5
November
30, 2005
Laurus
Master Fund, Ltd.
c/o
Laurus Capital Management, LLC
000
Xxxxx
Xxxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Ladies
and Gentlemen:
Reference
is made to the (a) Subsidiary Guaranty dated as of August 16, 2004 made by
each
of CSI Sub Corp., Inc., a Delaware corporation (the “CSI Sub”), XxXxxxx
Associates, LLC, a Delaware limited liability company (“XxXxxxx”), Evoke
Software Corporation, a Delaware corporation (“Evoke”) and XxXxxxxx Associates,
Inc., a Delaware corporation (“XxXxxxxx”) in favor of Laurus Master Fund, Ltd.,
a Cayman Islands company (“Laurus”) (as amended, modified or supplemented from
time to time, the “Subsidiary Guaranty”), (b) Master Security Agreement dated as
of August 16, 2004 by Conversion Services International, Inc. a Delaware
corporation (“CSII”), CSI Sub, XxXxxxx, Evoke and XxXxxxxx in favor of Laurus
(as amended, modified or supplemented from time to time, the “Master Security
Agreement”) and (c) Stock Pledge Agreement dated as of August 16, 2004 made by
CSII and XxXxxxxx, in favor of Laurus (as amended, modified or supplemented
from
time to time, the “Stock Pledge Agreement”). (the Subsidiary Guaranty, the
Master Security Agreement and the Stock Pledge Agreement, collectively, the
“Existing Security and Guaranty Agreements”).
1. To
induce
Laurus to provide additional financial accommodations to CSII pursuant to
that
certain Secured Revolving Note, dated August 16, 2004, amended and restated
on
July 28, 2005 and further amended and restated as of the date hereof, made
by
CSII in favor of Laurus (as amended and restated, amended, modified or
supplemented from time to time, the “2004 Laurus Revolving Note”), (ii) the
Security Agreement referred to in the 2004 Laurus Revolving Note (as amended,
modified or supplemented from time to time, the “2004 Laurus Security
Agreement”), (iii) the Ancillary Agreements referred to in, and defined in, the
2004 Laurus Security Agreement (the agreements set forth in the preceding
clauses (i) through (iii), inclusive, collectively, the “2004 Laurus
Agreements”), each of CSII, CSI Sub, XxXxxxx, Evoke and XxXxxxxx hereby:
(a) represents
and warrants to Laurus that it has reviewed and approved the terms and
provisions of each of the 2004 Laurus Agreements to which it is a party and
the
documents, instruments and agreements entered into in connection therewith;
(b) acknowledges,
ratifies and confirms that all indebtedness incurred by, and all other
obligations and liabilities of, each of CSII, CSI Sub, XxXxxxx, Evoke and
XxXxxxxx under each of the 2004 Laurus Agreements to which it is a party
are (i)
“Obligations” under, and as defined in the Subsidiary Guaranty, (ii)
“Obligations” under, and as defined in, the Master Security Agreement and (iii)
“Indebtedness” under, and as defined in, the Stock Pledge
Agreement;
(c) acknowledges,
ratifies and confirms that each of the 2004 Laurus Agreements to which it
is a
party are “Documents” under, and as defined in, each of the Subsidiary Guaranty,
the Master Security Agreement and the Stock Pledge Agreement;
(d) acknowledges,
ratifies and confirms that all of the terms, conditions, representations
and
covenants contained in the Existing Security and Guaranty Agreements are
in full
force and effect and shall remain in full force and effect after giving effect
to the execution and effectiveness of each of the 2004 Laurus Agreements
to
which it is a party, provided, however, that the transactions contemplated
by
the 2004 Laurus Agreements shall not be deemed to violate any of the terms,
conditions, representations and covenants contained in the Existing Security
and
Guaranty Agreements;
(e)
represents and warrants that no offsets, counterclaims or defenses exist
as of
the date hereof with respect to any of the undersigned’s obligations under any
Existing Security and Guaranty Agreement; and
(f)
acknowledges, ratifies and confirms the grant by each of CSII, CSI Sub, XxXxxxx,
Evoke and XxXxxxxx to Laurus of a security interest in the assets of (including
the equity interests owned by) each of CSII, CSI Sub, XxXxxxx, Evoke and
XxXxxxxx respectively, as more specifically set forth in the Existing Security
and Guaranty Agreements to which such entity is a party.
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remainder of this page is intentionally left blank]
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This
letter agreement shall be governed by and
construed in accordance with the laws of the State of New York.
Very truly yours, | |||
CONVERSION SERVICES INTERNATIONAL, INC. | |||
By: | /s/ Xxxxx Xxxxxx | ||
Name: |
Xxxxx
Xxxxxx
|
||
Title: |
Chief
Executive Officer
|
CSI SUB CORP., INC. | |||
By: | /s/ Xxxxx Xxxxxx | ||
Name: |
Xxxxx
Xxxxxx
|
||
Title: |
Chief
Executive
Officer
|
XXXXXXX ASSOCIATES, LLC | |||
By: | /s/ Xxxxx Xxxxxx | ||
Name: |
Xxxxx
Xxxxxx
|
||
Title: |
Chief
Executive
Officer
|
EVOKE SOFTWARE CORPORATION | |||
By: | /s/ Xxxxx Xxxxxx | ||
Name: |
Xxxxx
Xxxxxx
|
||
Title: |
Chief
Executive
Officer
|
XXXXXXXX ASSOCIATES, INC. | |||
By: | /s/ Xxxxx Xxxxxx | ||
Name: |
Xxxxx
Xxxxxx
|
||
Title: |
Chief
Executive
Officer
|
Acknowledged and Agreed to by:
LAURUS MASTER FUND, LTD.
By: | /s/ Xxxxx Grin | ||
Name: | Xxxxx Grin | ||
Title: | Director |
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