EXHIBIT 10.15
AMENDMENT TO BUSINESS LOAN AGREEMENT
AND MASTER REVOLVING NOTE
This Fifth Amendment to Business Loan Agreement and Master Revolving
Note (this "Amendment") is entered into by and between COMERICA BANK-CALIFORNIA
("Bank") and TAITRON COMPONENTS INCORPORATED, a California corporation
("Borrower") as of this 9th day of June, 1999.
RECITALS
A. Bank and Borrower are parties to that certain Business Loan
Agreement dated as of May 6, 1997 (the "Agreement"), and in connection with the
Agreement, Borrower executed that certain Master Revolving Note in the maximum
principal amount of $16,000,000 together with the Addendum attached thereto and
made a part thereof, each dated as of May 6, 1997 (hereinafter, the "Revolving
Note"). The Agreement, the Revolving Note and all other documents and
instruments executed in connection therewith are sometimes collectively referred
to as the "Loan Documents".
B. The Revolving Note and/or the Agreement were previously amended
by the following: (i) that certain Amendment to Business Loan Agreement dated
as of June 2, 1997, (ii) that certain Amendment To Business Loan Agreement
dated as of December 29, 1997, (iii) that certain Amendment To Business Loan
Agreement And Master Revolving Note dated as of June 22, 1998, and (iv) that
certain Amendment To Business Loan Agreement dated as of November 24, 1998,
collectively, the "Amendments".
C. Borrower has requested, and Bank has agreed, to make certain
additional amendments to the Agreement and the Revolving Note, all as more
specifically set forth below.
NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows:
AGREEMENT
1. RECITALS. The foregoing recitals of facts and understandings of
the parties are incorporated herein as the agreement of Bank and Borrower.
2. ADDENDUM TO AGREEMENT. Section 2(a) of the Addendum to the
Agreement is hereby deleted in its entirety, and replaced with the following:
"(a) Tangible Effective Net Worth in an amount not less than
$28,000,000 at any time prior to December 31, 1999, increasing to $29,000,000 at
12/31/99, and thereafter increasing by a sum of $1,000,000 at each fiscal year
end of Borrower."
3. REVOLVING NOTE. The Revolving Note is hereby amended by
changing the Maturity Date from June 2, 2000 to May 18, 2001.
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Taitron Components Incorporated
Amendment
Page 2.
4. INCORPORATION BY REFERENCE. The Loan Documents, as
previously amended by the Amendments, are incorporated herein by this reference
as though set forth in full herein, and shall remain in full force and effect.
All terms not otherwise defined herein shall have the meanings given in the Loan
Documents.
5. INTEGRATED AGREEMENT. This Amendment and the Loan Documents
constitute the entire agreement between the parties with respect to the subject
matter hereof, and supersedes all previous negotiations, discussions and
agreements between the parties. Any amendments hereto shall be in writing and be
signed by Bank and Borrower.
6. COUNTERPARTS. This Amendment may be executed in counterparts
which together shall constitute but one and the same original.
7. SUCCESSORS AND ASSIGNS. This Amendment shall be binding on
and inure to the benefit of the successors and assigns of Bank and Borrower.
IN WITNESS WHEREOF, Borrower and Bank have duly executed and delivered
this Amendment as of the date first written above.
BORROWER:
TAITRON COMPONENTS INCORPORATED
BY: /s/ XXXXXXX XXXX
-------------------------
Xxxxxxx Xxxx
Its: President & CEO
BANK:
COMERICA BANK-CALIFORNIA
BY: /s/ XXXXX XXXXX
------------------------
Xxxxx X. Xxxxx
Its: Assistant Vice President
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