First AMENDMENT TO LOAN AGREEMENT
Exhibit 10.2
First AMENDMENT
TO
This First Amendment to Loan Agreement is entered into as of January 14, 2011 (the “Amendment”), by and between Xxxxx Xxxxxxx Foundation (“Lender”) and PEPPERBALL TECHNOLOGIES, INC., a Colorado corporation (“Borrower”).
RECITALS
Borrower and Lender are parties to that certain Loan Agreement dated as of January 15, 2010, and as may be further amended from time to time (collectively, the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment.
NOW, THEREFORE, the parties agree as follows:
1.
Section 1(a) (Closing) of this Agreement to read as follows:
(a)
Upon execution of the amendment of this Loan Agreement, Lender shall deliver to Borrower $136,000 ($200,000 credit facility - $64,000 principal balance as of amendment date).
2.
Section 1(b) (Interest) of the Agreement to read as follows:
(b)
The Credit Facility shall begin amortizing on January 31, 2011 at $16,667 per month (in addition to the 15% monthly interest payments) through Maturity (See Amortization of Principal Schedule below).
3.
Section 1(c) (Maturity Date) of the Agreement to read as follows:
(c)
All amounts of outstanding hereunder are due and payable on December 31, 2011.
4.
Section 1(d) (Amortization of Principal) of the Agreement to read as follows:
(d)
The amortization of principal associated with this Credit Facility shall be made as follows:
Month
Amortization of Principal
January 31
$16,667
February 28
16,667
March 31
16,667
April 30
16,667
May 31
16,667
June 30
16,667
July 31
16,667
August 31
16,667
September 30
16,667
October 31
16,667
November 30
16,667
December 31
16,663
5.
Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective terms and hereby is ratified and confirmed in all respects. Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Lender under the Agreement, as in effect prior to the date hereof. Borrower ratifies and reaffirms the continuing effectiveness of all instruments, documents and agreements entered into in connection with the Agreement.
6.
This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one instrument.
7.
As a condition to the effectiveness of this Amendment, Lender shall have received, in form and substance satisfactory to Lender, the following:
i)
this Amendment, duly executed by Borrower;
ii)
Corporate Resolutions to Borrow;
IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.
By: /s/ Xxxx Xxxxxx
Title: Chief Executive Officer
Xxxxx Xxxxxxx Foundation
By: /s/ Xxxxx Xxxxxxx
Title: Manager
