Exhibit 10.1
FOURTH AMENDMENT TO LOAN AGREEMENT
THIS Amendment to Loan Agreement made this 30th day of June, 2007, by
and between M-TRON INDUSTRIES, INC., a Delaware corporation ("M-TRON"), and
PIEZO TECHNOLOGY, INC., a Florida corporation (collectively, the "Borrowers"),
and FIRST NATIONAL BANK OF OMAHA (the "Bank"), a national banking association
established at Omaha, Nebraska.
WHEREAS, M-TRON has existing term loans with the Bank evidenced by
term note number 855891-1 with a due date of October 14, 2007, pursuant to an
existing additional loan agreement with the Bank, which shall remain in full
force in accordance with its terms; and
WHEREAS, M-TRON has an existing revolving line of credit with the Bank
evidenced by revolving note number 855893-1 with a due date of June 30, 2008
pursuant to an existing additional loan agreement with the Bank, which shall be
paid in full from the proceeds of the Revolving Note; and
WHEREAS, the Bank is willing to provide such credit facilities to the
Borrowers upon the terms and conditions herein set forth.
WHEREAS, BANK and BORROWER executed a written Loan Agreement dated
October 14, 2004 which was subsequently amended May 31, 2005, June 30, 2006 and
October 3, 2006 (the Loan Agreement together with all amendments is herein
called the "AGREEMENT"); and
WHEREAS, the parties hereto desire to amend the AGREEMENT.
Now, therefore, in consideration of the AGREEMENT, and their mutual
promises made herein, BANK and BORROWERS agree as follows:
1. Terms which are typed herein as all capitalized words and are not
defined herein shall have the same meanings as when described in the
AGREEMENT.
2. Article I Section 1.01 Defined Terms "Borrowing Base" subsection
(b) of the AGREEMENT is hereby amended to read, effective immediately:
The term "Tangible Net Worth" of the AGREEMENT is hereby
amended to read, effective immediately:
"Tangible Net Worth" means total assets less total
liabilities (but excluding Subordinated Debt existing on the Closing
Date, in an amount of not less than $4,200,000).
3. Article I Section 1.01. Defined Terms "Revolving Loan Termination
Date" (a) of the AGREEMENT is hereby amended to read, effective
immediately:
(a) June 30, 2008,
4. Article II Section 2.12, Repayment of Revolving Note is hereby
amended to read, effective immediately:
2.12 The Revolving Note shall be due and payable on June 30,
2008. Interest only shall be payable monthly on the Revolving
Note. All outstanding principal and interest shall be due and
payable on June 30, 2008.
5. BORROWER certifies by its execution hereof that all of the
representations and warranties set forth in the AGREEMENT are true as
of this date, and that no EVENT OF DEFAULT under the AGREEMENT, and no
event which, with the giving of notice or passage of time or both,
would become such an EVENT OF DEFAULT, has occurred as of execution
hereof, except as disclosed to BANK. All other terms and conditions of
the AGREEMENT not affected or amended by this AGREEMENT, are hereby
ratified and confirmed.
8. GUARANTOR acknowledges and consents to the foregoing amendment, and
agrees and confirms that his separate guarantee of BORROWER's
obligations to BANK are, and continue to be, valid and binding
obligations of GUARANTOR.
9. Except as herein amended, the AGREEMENT continues to be the valid,
binding obligation of BORROWER.
IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed by their respective officers thereunto duly authorized, as of the date
first above written.
M-TRON INDUSTRIES, INC. FIRST NATIONAL BANK OF OMAHA
By: /s/ Xxxxx Xxxx By: /s/ Xxxxxx Xxxxxxx
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Its: VP Its: Xxxxxx Xxxxxxx
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PIEZO TECHNOLOGY, INC.
By: /s/ Xxxxx Xxxx
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Its: VP
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ACKNOWLEDGED BY GUARANTOR:
XXXXX CORPORATION
By: /s/ Xxxxx Xxxx
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Its: Chief Financial Officer
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