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EXHIBIT 4.14
FIRST AMENDMENT TO CREDIT AUTHORIZATION AGREEMENT
THIS FIRST AMENDMENT TO CREDIT AUTHORIZATION AGREEMENT, dated as of
April 21, 1997 ( this "Amendment" ) by and between INTERFACE SYSTEMS, INC., a
Delaware Corporation, the ("Borrower" ) and NBD BANK, a Michigan banking
corporation ( the "Bank" ).
RECITALS
The Borrower and the Bank are parties to a Credit Authorization
Agreement dated as of February 19, 1997.( the "Agreement" ).
A. The Borrower has defaulted under the Agreement due to a breach of
the Net Worth covenant in section 9.3(i), for the month ended
March 31, 1997.
B. The Borrower has requested that the Bank waive such covenant
default, and the Bank is willing to do so strictly in accordance
with the terms hereof, and provided the Agreement is amended as
set forth herein, and the Borrower has agreed to such amendment.
AGREEMENT
Based upon these recitals, the parties agree as
follows:
1. Upon satisfaction of the conditions set forth in paragraph 4
hereof, the Agreement shall hereby be amended as of the effective
date hereof as follows:
A. The definition of " Net Worth " in section 9.3(i) shall be
deleted in its entirety and the following shall be
inserted in place thereof:
Net Worth . Permit its Net Worth to be less than
$17,900,000 at March 31, 1997 and increasing thereafter by 75% of monthly net
income, without reduction for any loss periods.
2. From and after the effective date of this Amendment, references to
the "Agreement" in the Credit Authorization Agreement, the Note, the Security
Documents, and all other documents executed pursuant to the Credit Authorization
Agreement shall be deemed references to the Credit Authorization Agreement as
amended hereby.
3. The Borrower represents to the Bank that:
(a) (i) The execution, delivery and performance of this
amendment by the Borrower and all agreements and documents
delivered pursuant hereto by the Borrower have been duly
authorized by all necessary action and do not and will not
require any consent or approval of its shareholders,
violate any provision of any law, rule, regulation, order,
writ, judgment, injunction, decree, determination or award
presently in effect having applicability to it or of its
articles of incorporation or by-laws; (ii) no
authorization, consent, approval, license, exemption of or
filing a registration with any court or governmental
department, commission, board, bureau, agency or
instrumentality, domestic or foreign, is or will be
necessary to the valid execution, delivery, or performance
by the Borrower of this amendment and all agreements and
documents delivered pursuant hereto and (iii) this
Amendment and all agreements and documents delivered
pursuant hereto by the Borrower are the legal, valid
binding obligations of the Borrower enforceable against it
in accordance with the terms thereof.
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(a) After giving effect to the amendment contained herein and
effected pursuant hereto, the representations and
warranties contained in Section 10.0 of the Agreement are
true and correct on and as of the effective date hereof
with the same force and effect as if made on and as of
such effective date.
(a) Other than the Existing Default, as defined in and to be
waived pursuant to paragraph 5, no Events of Acceleration
( as defined in Section 11.0 of the Agreement) and no
default shall have occurred and be continuing or will
exist under the Agreement as of the effective date hereof.
4. This Amendment shall not become effective until it shall be duly
executed by the Borrower and the Bank.
5. The Borrower acknowledges that an Events of Acceleration has
occurred because the Borrower has breached a covenant contained in
Section 9.3(i) of the Agreement for the month of the Borrower
ended March 31, 1997 ( the "Existing Default" ). The Borrower
acknowledges that the Bank has the ability to accelerate all
indebtedness and exercise all of its rights and remedies under the
Agreement. In consideration of the execution of this Amendment and
subject to the satisfaction of the condition required by Paragraph
4 hereof, the Bank agrees to waive the Existing Default, provided
that such waiver shall waive only the Existing Default and does
not waive any other Events of Acceleration, including without
limitation any future Events of Acceleration caused by any
violation of Section 9.3(i). This waiver shall not be deemed to be
a waiver, or a consent to any modification or amendment, of any
other term or condition of the Agreement or any term or condition
of any agreement, instrument, or document referred to therein or
executed pursuant thereto, or to prejudice any present or future
right or rights which the Bank now has or may have hereunder.
6. The terms used but not defined herein shall have the respective
meanings ascribed thereto in the Agreement. Except as expressly
contemplated hereby, the Agreement, and all related notes,
guaranties, certificates, instruments and other documents, are
hereby ratified and confirmed and shall remain in full force and
effect, and the Borrower acknowledges that it has no defense,
offset, or counterclaim thereunder.
7. This Amendment shall be governed by and in accordance with the
laws of the State of Michigan.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be duly executed and delivered as of the day and year first written
above.
INTERFACE SYSYEMS, INC.
By: _John Ternes____________________________
Its: _VP Finance_____________________
NBD BANK
By: ___Mike Kelly_________________________
Its: ___1 st VP___________________
