Amendment to Accounts Receivable Agreement between Beacon Bank and HEI, Inc.

Contract Categories: Business Finance › Financing Agreements
Summary

Beacon Bank confirms the continued availability of a $3,000,000 revolving credit facility for HEI, Inc. under the Accounts Receivable Agreement dated May 29, 2003. HEI, Inc. will receive 80% of invoice amounts, subject to verification, with specified discount rates applied. The agreement requires HEI, Inc. to maintain its primary deposit relationship with Beacon Bank and provides the bank with a first security interest in accounts, inventory, and intangibles. Personal guaranties from HEI’s President and CFO are required. The agreement is effective through January 1, 2005, with a 90-day recourse credit guarantee.

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EX-10.56 2 c90098exv10w56.htm AMENDMENT TO ACCOUNTS RECEIVABLE AGREEMENT exv10w56  

Exhibit 10.56

[Beacon Bank Letterhead]

July 1, 2004

Mr. Mack Traynor, President & CEO
HEI, Inc.
1495 Steiger Lake Lane
Victoria, MN 55386

Dear Mack:

     Thank you for the on-going opportunity to provide a revolving credit facility for HEI, Inc. This letter serves to confirm the continuing availability of the credit facility provided to HEI, Inc. by Beacon Bank pursuant to the Accounts Receivable Agreement dated May 29, 2003, on the following terms and conditions:

     
Maximum Client Account Limit:   $3,000,000
 
Discount:
  Immediate discount of .50% and a daily discount
of 1/25 of 1%
 
Part Payment:
  80% of invoice amount, subject to the completion
of appropriate verification due diligence
 
Terms of Contract:
  January 1, 2005
 
Account Relationship:
  That the primary deposit relationship for HEI, Inc.
be maintained with Beacon Bank while this credit
facility is in place
 
Credit Guarantee:
  90-day recourse
 
Collateral:
  First security interest in all accounts, inventory,
and general intangibles
 
Guaranty:
  Validity guaranty are required from:
       • Mack Traynor, President & CEO
       • Doug Nesbit, Chief Financial Officer

 

 

July 1, 2004
HEI, Inc. Commitment Letter
Page 2 of 2

     It has been our pleasure working with you and your staff during the last year. We congratulate your accomplishments this year, and look forward to future successes for HEI.

     As you know, we will also continue to provide HEI, Inc. accounts receivable credit and collection services, including the management of outstanding accounts receivable balances, assistance in the development of underwriting policies, credit approval procedures, and a full complement of accounts receivable and cash receipts reporting.

     All terms and conditions are covered in the Accounts Receivable Agreement. Please let me know if you have any questions, or if I can be of any further assistance. As always, we appreciate your business!

         
  Sincerely,
 		  
  /s/ Dave L. Peterka    
  Dave L. Peterka   
  Executive Vice President