AMENDMENT TO CREDIT AGREEMENT
THIRD AMENDMENT TO CREDIT AGREEMENT
THIS THIRD AMENDMENT is entered into as of June 25, 1996 by and between
MADE2MANAGE SYSTEMS, INC. f/k/a Teksyn, Inc. (the "Borrower") and NBD Bank, N.A.
(the "Bank").
WITNESSETH:
WHEREAS, Borrower and Bank have entered into a certain Credit Agreement
dated as of June 9, 1995 as amended by First Amendment dated September 27, 1995,
as amended by Second Amendment dated March 27, 1996, as amended (the
"Agreement"); and
WHEREAS, the Borrower has requested and the Bank has agreed to an extension
of the maturity date of Facility A described in the Agreement; and
NOW THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows:
(1) The maturity date of the Facility A set for expiration on
July 1, 1996 is hereby extended to July 1, 1997.
(2) Upon execution of this agreement, the Borrower shall pay the
Bank the following fees, all of which the Borrower
acknowledges have been earned by the Bank: A Documentation
Fee of 0.2% totaling Two Thousand and 00/100 Dollars
($2,000.00).
(3) The maximum amount of the Credit Facility A as originally
set forth in Section 1.1 of the Agreement is hereby
increased to $1,000,000.00.
(4) Section 3.1 of the Agreement is hereby amended to read as
follows:
3.1 BORROWING BASE. Notwithstanding any other provision of this
agreement, the aggregate principal amount outstanding at any one time
under Facility A shall not exceed the lesser of the Borrowing Base or
$1,000,000.00. "Borrowing Base" means 80% of the Borrower's trade
accounts receivable in which the Bank has a perfected, first priority
security interest, excluding accounts more than 90 days past due from
the date of invoice, accounts subject to offset or defense,
government, bonded, affiliate and foreign accounts, accounts from
trade debtors of which more than 50% is more than 90 days past due,
and accounts otherwise unacceptable to the Bank.
(5) Section 7.4 of the Agreement is hereby amended to read as
follows;
7.4 COLLATERAL AUDITS. Permit the Bank or its agents to perform an annual
audit of the Collateral (only when there is a balance in excess of
$250,000.00 on Facility A). The Borrower shall compensate the Bank
for such audits in accordance with the Bank's schedule of fees as may
be amended from time to time. The Bank shall retain the right to
inspect the Collateral and business records related to it at such
times and at such intervals as the Bank may reasonably require.
(6) Except as modified herein, the Agreement, as heretofore
amended, shall remain unchanged and in full force and
effect.
IN WITNESS WHEREOF, the parties have caused this Third Amendment to be
entered into and effective as of the date first hereinabove written.
MADE2MANAGE SYSTEMS, INC.
By: /s/ Xxxxx X. Xxxxxxx
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Xxxxx X. Xxxxxxx President
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Printed Name Title
NBD BANK, N.A.
By: /s/ Xxxxxx X. Xxxx
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Xxxxxx X. Xxxx VP
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Printed Name Title
