EXHIBIT 10.40
FIRST AMENDMENT TO REVOLVING CREDIT AND TERM
--------------------------------------------
LOAN AGREEMENT
--------------
This First Amendment to Revolving Credit and Term Loan Agreement (the
"Amendment") is made as of the 30th day of March, 2000 by and among
MFIC Corporation (the "Borrower"), a Delaware corporation with its
principal executive offices at 00 Xxxxxxx Xxxx, Xxxxxx, Xxxxxxxxxxxxx
00000; and
National Bank of Canada, a Canadian chartered bank (the "Lender") with a
place of business at Xxx Xxxxxxx Xxxxxx, Xxxxxx, Xxxxxxxxxxxxx 00000;
in consideration of the mutual covenants herein contained and benefits to be
derived herefrom.
W I T N E S S E T H:
WHEREAS, the Borrower and the Lender entered into a certain Revolving
Credit and Term Loan Agreement dated as of February 28, 2000 (the "Loan
Agreement"); and
WHEREAS, the Borrower and the Lender desire to modify and amend the Loan
Agreement as provided herein.
NOW, THEREFORE, it is hereby agreed as follows:
1. Definitions. All capitalized terms used herein and not otherwise
defined shall have the same meanings herein as in the Loan Agreement.
2. Amendments to Section 8.
(1) Section 8.1 of the Loan Agreement (Consolidated Tangible Net Worth)
is hereby amended by deleting the table therefrom and substituting
the following table in its stead:
Fiscal 2000 Fiscal 2001 Fiscal 0000
------------------------------------------------------------------------------------------------------
Xxxxxxx Xxx $ Amount Quarter End $ Amount Quarter End $ Amount
------------------------------------------------------------------------------------------------------
3/31/00 2,400,000 3/31/01 2,950,000 3/31/02 3,500,000
------------------------------------------------------------------------------------------------------
6/30/00 2,500,000 6/30/01 3,050,000 6/30/02 3,600,000
------------------------------------------------------------------------------------------------------
9/30/00 2,600,000 9/30/01 3,150,000 9/30/02 3,700,000
------------------------------------------------------------------------------------------------------
12/31/00 2,850,000 12/31/01 3,400,000 12/31/02 3,950,000
------------------------------------------------------------------------------------------------------
(2) Section 8.2 of the Loan Agreement (Liabilities to Worth
(Leverage) Ratio) is hereby amended by deleting the table
therefrom and substituting the following table in its stead:
Fiscal 2000 Fiscal 2001 Fiscal 0000
---------------------------------------------------------------------------------------------------
Xxxxxxx Xxx Ratio Quarter Ratio Quarter End Ratio
End
---------------------------------------------------------------------------------------------------
3/31/00 2.25 : 1.0 3/31/01 2.00 : 1.0 3/31/02 1.75 : 1.0
---------------------------------------------------------------------------------------------------
6/30/00 2.25 : 1.0 6/30/01 2.00 : 1.0 6/30/02 1.75 : 1.0
---------------------------------------------------------------------------------------------------
9/30/00 2.25 : 1.0 9/30/01 2.00 : 1.0 9/30/02 1.75 : 1.0
---------------------------------------------------------------------------------------------------
12/31/00 2.00 : 1.0 12/31/01 1.75 : 1.0 12/31/02 1.50 : 1.0
---------------------------------------------------------------------------------------------------
(3) Section 8.4 of the Loan Agreement (Minimum Debt Service) is
hereby amended by deleting the table therefrom and substituting
the following table in its stead:
Fiscal 2000 Fiscal 2001 Fiscal 0000
---------------------------------------------------------------------------------------------------
Xxxxxxx Xxx Ratio Quarter Ratio Quarter Ratio
End End
---------------------------------------------------------------------------------------------------
3/31/01 1.50 : 1.0 3/31/02 1.75 : 1.0
---------------------------------------------------------------------------------------------------
6/30/01 1.50 : 1.0 6/30/02 1.75 : 1.0
---------------------------------------------------------------------------------------------------
9/30/01 1.50 : 1.0 9/30/02 1.75 : 1.0
---------------------------------------------------------------------------------------------------
12/31/00 1.50 : 1.0 12/31/01 1.75: 1.0 12/31/02 2.00 : 1.0
---------------------------------------------------------------------------------------------------
3. Conditions to Effectiveness. This Amendment shall not be effective
until each of the following conditions precedent have been fulfilled
to the satisfaction of the Lender:
(1) This Amendment shall have been duly executed and delivered by the
respective parties hereto and, shall be in full force and effect
and shall be in form and substance satisfactory to the Lender.
(2) All action on the part of the Borrower necessary for the valid
execution, delivery and performance by the Borrower of this
Amendment shall have been duly and effectively taken and evidence
thereof satisfactory to the Lender shall have been provided to the
Lender. The Lender shall have received from the Borrower true
copies of the resolutions adopted by its board of directors
authorizing the transactions described herein, certified by the
Borrower's secretary to be true and complete.
(3) The Borrower shall have paid an amendment fee to the Lender in the
amount of Ten Thousand and 00/100 ($10,000.00) Dollars.
(4) The Borrower shall have paid to the Lender all fees and expenses
then due and owing pursuant to the Agreement, including, without
limitation, the Lender's attorneys' fees and expenses.
(5) No Default or Event of Default shall have occurred and be
continuing.
(6) The Borrower shall have provided such additional instruments and
documents to the Lender as the Lender and the Lender's counsel may
have reasonably requested.
4. Ratification of Loan Documents. Except as provided herein, all terms
and conditions of the Loan Agreement and the other Loan Documents
remain in full force and effect. The Borrower hereby ratifies,
confirms, and reaffirms all representations, warranties, and covenants
contained therein and acknowledges and agrees that the Liabilities,
are and continue to be secured by the Collateral. The Borrower further
acknowledges and agrees that Borrower does not have any offsets,
defenses, or counterclaims against the Lender thereunder, and to the
extent that any such offsets, defenses, or counterclaims may exist, the
Borrower hereby waives and releases the Lender therefrom.
5. Miscellaneous.
(1) This Amendment may be executed in several counterparts and by each
party on a separate counterpart, each of which when so executed and
delivered shall be an original, and all of which together shall
constitute one instrument.
(2) This Amendment expresses the entire understanding of the parties
with respect to the transactions contemplated hereby. No prior
negotiations or discussions shall limit, modify, or otherwise
affect the provisions hereof.
IN WITNESS WHEREOF, the undersigned have hereunto executed this Amendment
as a sealed instrument as of the date first above written.
MFIC CORPORATION
By: /s/ XXXXX X. XXXXXXXXX
-------------------------
Name: Xxxxx X. Xxxxxxxxx
Title: CEO
NATIONAL BANK OF CANADA,
a Canadian Chartered Bank
By: /s/ A. XXXXX XXXXXXX
-------------------------
Name: A. Xxxxx Xxxxxxx
Title: Vice President
By: /s/ XXXXXXX X. XXXXXXXXXX
-------------------------
Name: Xxxxxxx X. Xxxxxxxxxx
Title: Vice President
