$4,000,000 Term Promissory Note B between Enpath Medical, Inc. and M&I Marshall & Ilsley Bank (August 22, 2006)
Enpath Medical, Inc. has agreed to repay M&I Marshall & Ilsley Bank a loan of $4,000,000 under the terms set out in this promissory note. The loan accrues interest at a variable rate and is to be repaid in 84 monthly installments, with the final payment due January 31, 2014. The agreement references a broader loan agreement that includes provisions for early repayment, interest rate changes, and acceleration of the loan if certain events occur.
Exhibit 10.2
TERM PROMISSORY NOTE B
| $4,000,000.00 |
| Dated: August 22, 2006 |
For value received, Enpath Medical, Inc., a Minnesota corporation (the “Borrower”) promises to pay to the order of M&I Marshall & Ilsley Bank (the “Bank”), at its offices in Minneapolis, Minnesota, in lawful money of the United States of America, the principal amount of Four Million and no/100 Dollars ($4,000,000.00), or if less, the aggregate unpaid principal amount of Term Note B Advances made by the Bank to the Borrower pursuant to the Loan Agreement (as defined below); together with interest on any and all principal amounts remaining unpaid hereon from the date of this Note until such principal amounts are fully paid at a fluctuating annual rate equal to 2.50% above LIBOR (as defined in the Loan Agreement). Each change in the fluctuating interest rate shall take effect simultaneously with the corresponding change in LIBOR
The Borrower shall pay principal in 84 monthly installments payable on the last day of each month starting on February 28, 2007 and continuing on the last day of each month thereafter until January 31, 2014 when all remaining principal and accrued interest shall be due and payable in full. The monthly installment shall be equal to 1/84th of the principal balance of this Note on January 31, 2007. The Borrower shall pay accrued interest on this Note on the last day of each month starting on August 31, 2006 and at maturity.
This Note is Term Note B referred to in, and is entitled to the benefits of, the Revolving Credit and Term Loan Agreement dated as of October 17, 2003, as amended (the “Loan Agreement”) between the Borrower (under its former name of MedAmicus, Inc.) and the Bank,
which Loan Agreement, among other things, contains provisions for the acceleration of the maturity of this Note upon the happening of certain stated events, for an increase to the interest rate upon the happening of certain stated events, and for prepayments of the principal amount due under this Note upon stated terms and conditions.
| Enpath Medical, Inc. | |||
|
|
|
| |
|
|
|
| |
|
| By |
| |
|
| Its |
| |
2
