EXHIBIT 10.1
AMENDMENT TO
CONCORD GROWTH CORPORATION LOAN AGREEMENT
Amendment #5
Dated July 1, 1995
The CONCORD GROWTH CORPORATION LOAN AGREEMENT dated May 1, 1994 (the
"Agreement"), between Concord Growth Corporation, a California Corporation, and
Advanced Materials, Inc., a California Corporation is hereby amended in the
specific section(s) as follows:
Section 6.12.1 Borrower shall maintain a positive cash flow (as determined in
accordance with generally accepted accounting principles, in
effect on the date hereof, consistently applied) for each
calendar quarter, beginning September 30, 1995, and shall not
have more than one month of negative cash flow in a row.
Section 6.12.2 Borrower shall be profitable (as determined in accordance with
generally accepted accounting principles, in effect on the date
hereof, consistently applied) for each calendar year, beginning
on March 31, 1996, and shall not have a net loss for more than
one quarter in a row.
Section 7.2.6 Upon an event of default, Borrower shall pay Lender a fee equal
to 1% per month times the average daily balance of the
outstanding Obligation for the immediately preceding month (or
part thereof) in which Borrower is in default, in addition to the
interest and fees due under Section 3 of the Agreement. This fee
shall be due on the first day of the following month.
Section 9.2.4 The maximum early termination fee shall not exceed $50,000.
Section 9.11 PARTICIPATIONS; SECURITIZATION. Buyer may assign and sell
participations in its rights and obligations under this Agreement
and any other agreements. Buyer may include the Advances made
pursuant to this Agreement and the other agreements in a pool of
Advances in which Buyer sells undivided interests as part of a
securitization program.
(a) Seller understands that Buyer may from time to time transfer
and assign its rights under this Agreement to one or more
assignees. Seller hereby consents to these transfers and
assignments by Buyer to one or more assignees. Seller hereby
consents that any such assignee may exercise the rights of Buyer
hereunder. Seller hereby consents and acknowledges that any and
all defenses, claims or counterclaims that it may have against
Buyer shall be limited to, and may only be brought against,
Buyer and shall not extend to any assignee, including but not
limited to funding obligations.
(b) Seller and Buyer intend that any and all direct or indirect
assignees of the Buyer of the type set forth above shall be third
party beneficiaries of this Agreement.
Section 10.1.1 Maximum Credit.............................................. $2,000,000.
Section 10.1.2 Sublimit for Inventory (as described in Inventory Rider).... $600,000.
Section 10.4.1 Interest Rate............................................... Prime Rate plus 4% per
annum.
Section 10.4.3 Facility Fee................................................ 1% of Section 10.1.1.
Section 10.4.7 Monthly Minimum Fee......................................... $10,000.
Section 10.9.3 Renewal Term................................................ 12 months
THE AMENDMENT AFFECTS ONLY THE ABOVE LISTED SECTION(S) OF THE AGREEMENT AND ALL
OTHER PROVISIONS OF THE AGREEMENT SHALL REMAIN UNCHANGED AND IN FORCE AS WRITTEN
OR THEREAFTER AMENDED IN WRITING.
Signatures appear on the following page.
This Amendment shall become effective when it is accepted and executed by an
authorized officer of Lender.
AGREED:
BORROWER:
ADVANCED MATERIALS, INC.
BY: /s/ X.X. Xxxxxxxxx
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V.P. Controller CGC WITNESS
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(PRINT NAME AND TITLE)
DATE: 7/14/95
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ACCEPTED:
LENDER:
CONCORD GROWTH CORPORATION
BY: /s/ X.X. XxXxxxxx
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X.X. XxXxxxxx VP
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(PRINT NAME AND TITLE)
DATE: 7-17-95
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Rates effective 7-1-95
