Guaranty and Agreement between American Technical Ceramics Corp. and Svenska Handelsbanken AB for ATC Europe Term Loans

Summary

American Technical Ceramics Corp. has agreed to guarantee five term loans totaling 12,000,000 SEK (about $1.7 million) obtained by its subsidiary, ATC Europe, from Svenska Handelsbanken AB. The loans are unsecured, have fixed interest rates between 3.56% and 4.59%, and mature annually from 2006 to 2010. Under this agreement, the parent company guarantees repayment of all obligations if ATC Europe fails to pay.

EX-10.33 4 file004.htm FINANCIAL OBLIGATION ATCE

  EXHIBIT 10.33 On September 16, 2005, American Technical Ceramics Europe AB ("ATC Europe"), a wholly-owned subsidiary of American Technical Ceramics Corp. (the "Company"), obtained a series of five term loans aggregating 12,000,000 Swedish Krona ("SEK") (approximately $1,700,000) from Svenska Handelsbanken, AB (the "Bank"). The loans are unsecured and bear interest at fixed rates ranging from 3.56% to 4.59%. The five loans are each for a principal amount of 2,400,000 SEK and are fully amortizing. The loans mature in one to five years with the first maturing on September 30, 2006 and one other maturing on each succeeding September 30th through 2010. In connection with, and as an inducement for, the Bank's making the loans, the Company entered into a Guaranty and Agreement with the Bank whereby the Company has agreed to guarantee the payment of all of ATC Europe's obligations under the loans.