Loan Modification Agreement between K-Tron America, Inc. and The Bank (July 9, 2003)

Contract Categories: Business Finance › Modification Agreements
Summary

K-Tron America, Inc. and The Bank have agreed to modify the terms of an existing $5,000,000 loan. The agreement extends the loan's maturity date to July 5, 2005, with monthly interest-only payments starting August 1, 2003. K-Tron America, Inc. must obtain the Bank's written consent before any merger or acquisition by its guarantor or subsidiaries involving more than $4 million. All other terms of the original loan remain in effect unless specifically changed by this agreement.

Read More Arrow
EX-10.1 4 w91549exv10w1.txt LOAN MODIFICATION AGREEMENT THE BANK Exhibit 10.1 LOAN MODIFICATION AGREEMENT K-TRON AMERICA, INC. Date: July 9, 2003 Loan #6039359-6600 Original Amount: $5,000,000.00 Annual Fee: $10,000.00 Current Commitment: $4,000,000.00 Maturity Date: July 05, 2005 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 $10,000.00, the above referenced note is extended and modified as follows: IT IS HEREBY AGREED THAT THE ABOVE NUMBERED NOTE SHALL BECOME DUE JULY 5,2005. DURING THE TERMS OF THE RENEWAL, PAYMENTS OF INTEREST ONLY SHALL BE DUE EACH MONTH BEGINNING AUGUST 1, 2003 AND SHALL BE APPLIED TO INTEREST AND THEN TO PRINCIPAL. BORROWER AGREES THAT UNTIL ALL OBLIGATIONS HEREUNDER ARE FULLY PAID AND DISCHARGED, BORROWER WILL NOT WITHOUT PRIOR WRITTEN CONSENT OF THE BANK: 1. Permit any merger or acquisition by Guarantor (K-Tron International, Inc.) or its subsidiaries involving consideration of more than $4 million without the written approval of The Bank. 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. /s/ Patricia M. Moore 7/9/03 ---------------------------------------- Patricia M. Moore/ VP Finance Date THE BANK By: /s/ David J. Hanrahan, Sr. ------------------------- /s/ Mary Vaccara 7/9/03 David J. Hanrahan, Sr. ---------------------------------------- Senior Vice President Mary Vaccara/Secretary Date