Loan Modification and Renewal Agreement between K-Tron America, Inc. and The Bank (June 9, 2004)

Contract Categories: Business Finance › Modification Agreements
Summary

K-Tron America, Inc. and The Bank have agreed to modify and renew an existing $5,000,000 loan. The agreement extends the loan's maturity date to July 5, 2006, with monthly interest-only payments starting July 1, 2004. All other terms from the original note, commitment letter, and security agreement remain in effect unless specifically changed by this agreement. The borrower will pay an annual fee of $12,500 for the renewal. This modification does not affect the bank's lien priority.

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EX-10.2 4 w00582exv10w2.txt LOAN MODIFICATION/RENEWAL AGREEMENT Exhibit 10.2 THE BANK LOAN MODIFICATION/RENEWAL AGREEMENT K-TRON AMERICA, INC. Routes 55 & 553 Pitman, NJ 08071 Date: June 9, 2004 Loan #6039359-6600 Original Amount: $5,000,000.00 Annual Fee: $12,500.00 Current Balance: $3,230,000.00 Maturity Date: July 05, 2006 WHEREAS, the undersigned borrower executed the note referred to above on June 24, 1998, and, WHEREAS, the note, security agreement and commitment letter executed by the borrower allow a modification of interest rate, due date or other terms or conditions without affecting the priority of The Bank's lien. NOW, therefore, in consideration of an annual fee of $12,500.00, the above referenced note is extended and modified as follows: IT IS HEREBY AGREED THAT THE ABOVE NUMBERED NOTE SHALL BECOME DUE JULY 5, 2006. DURING THE TERMS OF THE RENEWAL, PAYMENTS OF INTEREST ONLY SHALL BE DUE EACH MONTH BEGINNING July 1, 2004 AND SHALL BE APPLIED TO INTEREST AND THEN TO PRINCIPAL. All terms and conditions of the original note, commitment letter and any security thereto attached is fully incorporated herein and fully ratified except as specifically modified by this modification agreement. ACCEPTED BY: K-TRON AMERICA, INC. THE BANK /s/ Kevin C. Bowen 6/9/04 --------------------------------------- By: /s/ David J. Hanrahan Kevin C. Bowen, President Date - ---------------------------------- David J. Hanrahan, Sr. /s/ Mary Vaccara 6-9-04 Executive Vice President --------------------------------------- Mary Vaccara, Secretary Date