$7,500,000 Term Note between Presstek, Inc. and KeyBank National Association (October 15, 2003)

Summary

Presstek, Inc. has issued a $7,500,000 term note to KeyBank National Association, with Citizens Bank New Hampshire acting as Administrative Agent. Under this agreement, Presstek promises to repay the loan according to the terms set out in a related Credit Agreement, including specified payment dates and interest rates. The note is governed by New Hampshire law and includes provisions for default, replacement of lost notes, and waiver of certain formalities. The agreement is effective as of October 15, 2003.

EX-10.7 9 exhibit10-7_12278.txt TERM NOTE EXHIBIT 10.7 ------------ TERM NOTE --------- $7,500,000.00 Manchester, New Hampshire October 15, 2003 FOR VALUE RECEIVED, PRESSTEK, INC, a Delaware corporation having its chief executive offices at 55 Executive Drive, Hudson, New Hampshire 03051 (the "Borrower") HEREBY PROMISES TO PAY to the order of KEYBANK NATIONAL ASSOCIATION ("Lender"), at the offices of CITIZENS BANK NEW HAMPSHIRE, a guaranty savings bank chartered under the laws of the State of New Hampshire (the "Administrative Agent"), at 875 Elm Street, Manchester, New Hampshire 03101, or at such other place as Administrative Agent may designate from time to time in writing, in lawful money of the United States of America and in immediately available funds, the amount of SEVEN MILLION FIVE HUNDRED THOUSAND DOLLARS ($7,500,000.00). All capitalized terms used but not otherwise defined herein have the meanings given to them in the Credit Agreement (as hereinafter defined). This Term Note is one of the Term Notes issued pursuant to that certain Credit Agreement dated as of October 15, 2003, by and among the Borrower, Lasertel Inc., as Guarantor, Administrative Agent, Lender and the other Persons signatory thereto from time to time as Lenders (including all annexes, exhibits and schedules thereto and as from time to time amended, restated, supplemented or otherwise modified, the "Credit Agreement"), and is entitled to the benefit and security of the Credit Agreement, the Collateral Documents, and all of the other Loan Documents referred to therein. Reference is hereby made to the Credit Agreement for a statement of all of the terms and conditions under which the Loans evidenced hereby are made and are to be repaid. The principal balance of the Term Loan, the rates of interest applicable thereto and the date and amount of each payment made on account of the principal thereof, shall be recorded by Administrative Agent on its books; provided that the failure of Administrative Agent to make any such recordation shall not affect the obligations of the Borrower to make a payment when due of any amount owing under the Credit Agreement or this Term Note. The principal amount of the indebtedness evidenced hereby shall be payable in the amounts and on the dates specified in the Credit Agreement. Interest on the principal amount of the indebtedness evidenced hereby shall be paid until such principal amount is paid in full at such interest rates and at such times, and pursuant to such calculations, as are specified in the Credit Agreement. The terms of the Credit Agreement are hereby incorporated herein by reference. If any payment on this Term Note becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such extension. Upon and after the occurrence of any Event of Default, this Term Note may, as provided in the Credit Agreement, and without demand, notice or legal process of any kind, be declared, and immediately shall become, due and payable. Time is of the essence of this Term Note. Demand, presentment, protest and notice of nonpayment and protest are hereby waived by the Borrower. Except as provided in the Credit Agreement, this Term Note may not be assigned by Lender to any Person. Upon receipt of an affidavit of an officer of Lender as to the loss, theft, destruction or mutilation of the Note or any other security document which is not of public record, and, in the case of any such loss, theft, destruction or mutilation, upon cancellation of such Note or other security document, Borrower will issue, in lieu thereof, a replacement note or other security document in the same principal amount thereof and otherwise of like tenor. THIS TERM NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW HAMPSHIRE APPLICABLE TO CONTRACTS MADE AND PERFORMED IN THAT STATE. IN WITNESS WHEREOF, the Borrower has executed and delivered this Term Note as of the date first set forth above. BORROWER: PRESSTEK, INC. /s/ James F. Scafide By: /s/ Moosa E. Moosa - ----------------------------- ----------------------------------- Witness Moosa E. Moosa, Vice President - Finance/Chief Financial Officer -2-