FIRSTAMENDMENT TO LOAN ANDSECURITY AGREEMENT

FIRST AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

 

This First Amendment to Loan & Security Agreement is entered into as of August 3, 2010 (the “Amendment”) by and between PENINSULA BANK BUSINESS FUNDING, a division of THE PRIVATE BANK OF THE PENINSULA (“Bank”) and OPTEX SYSTEMS, INC. (“Borrower”)

 

RECITALS

 

Borrower and Bank are parties to that certain Loan & Security Agreement dated March 4, 2010 as amended from time to time (the “Agreement”).  The parties desire to amend the Agreement in accordance with the terms of this Amendment.

NOW THEREFORE, the parties agree as follows:

1.	Section 6.8(c) and 6.8(d) EBITDA are amended in their entirety to read as follows:

(c) as of the last day of Borrower’s fourth fiscal quarter ending October 2, 2010, twenty thousand dollars ($20,000); and (d) as of the last day of Borrower’s first fiscal quarter ending January 2, 2011, two hundred thousand dollars ($200,000).

2.            Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement.  The Agreement, as amended hereby, shall remain in full force and effect in accordance with its terms.  Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as a waiver of, or as an amendment of, any right, power, or remedy of Bank under the Agreement, as in effect prior to the date hereof, or the Security Agreement.

3.           This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute but one and the same Amendment.  In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.  Notwithstanding the foregoing, Borrower shall deliver all original signed documents requested by Bank no later than ten (10) Business Days following the date of this Amendment.

 

5.            As a condition to the effectiveness of this Amendment, Bank shall have received, in form and substance satisfactory to Bank, the following:

 

 

 

 

 

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the first date above written.