Exhibit 10.26(d)
SECOND AMENDMENT TO LOAN AGREEMENT
THIS SECOND AMENDMENT TO LOAN AGREEMENT (this "Amendment") is
entered into as of October 16, 1995, by and between IOMEGA
CORPORATION, a Delaware corporation ("Borrower"), and XXXXX FARGO
BANK, NATIONAL ASSOCIATION ("Lender").
RECITALS
WHEREAS, Borrower is currently indebted to Lender pursuant to
the terms and conditions of that certain Loan Agreement between
Borrower and Lender dated as of July 5, 1995, as amended ("the Loan
Agreement").
WHEREAS, Lender and Borrower have agreed to certain changes in
the terms and conditions set forth in the Loan Agreement and have
agreed to amend the Loan Agreement to reflect said changes.
NOW, THEREFORE, for valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto
agree that the Loan Agreement shall be amended as follows:
1. Section 2.1(a) of the Loan Agreement is hereby amended
by:
(A) deleting the period at the end of clause (iii) and
replacing it with ", and plus", and
(B) adding a new clause (iv) which reads as follows:
"(iv) up to and including January 15, 1996, an amount
equal to the lesser of (1) $5,000,000.00, or (2) ten
percent (10%) of Borrower's net borrowing base in effect
from time to time, as determined by Lender based on
Lender's review of Borrower's Collateral Activity
Report."
Revolving Loans made and Letter of Credit Obligations incurred
under clause (iv) are hereinafter referred to as "Overadvances".
2. Revolving Loans and Letter of Credit Obligations under
Facility A are hereby deemed to have been made or incurred first
against the Net Amount of Eligible Accounts and then as
Overadvances. Repayments of principal under Facility A shall be
applied first to Revolving Loans and Letter of Credit Obligations
made or incurred as Overadvances and then to Revolving Loans and
Letter of Credit Obligations made or incurred against the Net
Amount of Eligible Accounts.
3. The outstanding principal balance of Overadvances shall
bear interest at a variable rate per annum equal to one and one-quarter percent
(1.25%) above the Prime Rate in effect from time to
time. No LIBOR based interest rate option is available with
respect to Overadvances. Interest shall be paid at the times set
forth in the Facility A Revolving Credit Note. The outstanding
principal balance of Overadvances shall be due and payable in full
on January 15, 1996. All terms and conditions of the Facility A
Revolving Credit Note, other than those which are expressly
inconsistent with the terms of this Amendment, are hereby made
applicable to Overadvances.
4. Borrower shall pay a non-refundable fee of $12,500.00,
due and payable on the date of execution hereof, in consideration
for Lender's agreement set forth herein.
5. Overadvances are hereby deemed to be included in the
definition of Obligations and to be secured by all the Collateral.
6. Except as specifically provided herein, all terms and
conditions of the Loan Agreement remain in full force and effect,
without waiver or modification. All terms defined in the Loan
Agreement shall have the same meaning when used in this Amendment.
This Amendment and the Loan Agreement shall be read together, as
one document.
7. Borrower hereby remakes all representations and
warranties contained in the Loan Agreement and reaffirms all
covenants set forth therein. Borrower further certifies that as of
the date of this Amendment there exists no Event of Default as
defined in the Loan Agreement, nor any condition, act or event
which with the giving of notice or the passage of time or both
would constitute any such Event of Default.
IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed as of the day and year first written
above.
XXXXX FARGO BANK,
IOMEGA CORPORATION NATIONAL ASSOCIATION
By: /s/ Xxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxxxxxxxx
Title: Assistant Treasurer Title: Vice President
