SIXTH AMENDMENT TO REVOLVING CREDIT AND TERMLOAN AGREEMENT
Exhibit 10.1
SIXTH AMENDMENT TO REVOLVING CREDIT
AND TERM LOAN AGREEMENT
This Sixth Amendment to Revolving Credit and Term Loan Agreement is dated as of August 29, 2008, between XETA TECHNOLOGIES, INC., an Oklahoma corporation (Borrower), and BANK OF OKLAHOMA, N.A. (Bank).
RECITALS
A. Reference is made to the Revolving Credit and Term Loan Agreement dated as of October 1, 2003, and amended June 7, 2004, September 30, 2005, December 21, 2005, September 28, 2006, and September 5, 2007 (as amended, the Credit Agreement) between Borrower and Bank, pursuant to which currently exists: (i) a term loan in the original principal amount of $3,374,734.33 (Term Loan), (ii) a real estate loan in the original principal amount of $2,238,333.48 (Real Estate Loan), and (iii) a revolving line of credit in the amount of $7,500,000 (Revolving Line). Terms used herein shall have the meanings ascribed to them in the Credit Agreement unless otherwise defined herein.
B. Borrower has requested that Bank extend the commitment under the Revolving Line to September 30, 2009; and Bank has agreed to accommodate such request, subject to the terms and conditions set forth below.
AGREEMENT
For valuable consideration received, it is agreed as follows:
1. AMENDMENTS TO THE CREDIT AGREEMENT. The Credit Agreement is hereby amended as follows:
1.1. The Revolving Line Note, attached to the Credit Agreement as Schedule 1.49 is hereby replaced by the $7,500,000 Promissory Note in form and content as set forth on Schedule 1.1 attached hereto (Renewal Note).
1.2. Section 1.53 (Termination Date) is hereby amended to reflect that the date September 28, 2008 shall now mean and read September 30, 2009.
1.3. Section 8.1 (Funded Debt to EBITDA Ratio) is hereby deleted and replaced with the following:
8.1 Funded Debt to EBITDA Ratio. Maintain at all times a Funded Debt to EBITDA Ratio of not greater than 2.75 to 1.
1.4. Section 8.2 (Minimum Tangible Net Worth) is hereby deleted and replaced with the following:
8.2 Minimum Tangible Net Worth. Maintain at all times a Tangible Net Worth of not less than Eleven Million and No/100 Dollars ($11,000,000).
1.5. Section 8.4 (Capital Expenditures) is hereby deleted and replaced with the following:
8.4 Capital Expenditures. Not make expenditures for fixed or capital assets if, after giving effect thereto, the aggregate of all such expenditures would exceed $1,500,000 during any fiscal year of the Borrower.
2. CONDITIONS PRECEDENT. Borrower shall deliver to Bank at or before closing:
2.1. This Amendment and all schedules hereto;
2.2. The Renewal Note; and
2.3. Any other instruments, documents or agreements reasonably requested by Bank in connection herewith.
3. Borrower Ratification. Borrower hereby ratifies and confirms the Credit Agreement, Security Agreement and all other instruments, documents and agreements executed by Borrower in connection with the Credit Agreement, and acknowledges and agrees that they remain in full force and effect, binding and enforceable against the Borrower in accordance with their terms.
4. Representations. Borrower represents and warrants that (i) no Event of Default exists under the Credit Agreement or any instruments, documents or agreements executed by Borrower in connection therewith (collectively, the Loan Documents), and (ii) all representations and warranties made in the Loan Documents remain true and correct as of the date hereof. Borrower further represents and warrants that all authority documents delivered to Bank in connection with the Credit Agreement remain in full force and effect and have not been modified or changed whatsoever.
5. Governing Law and Binding Effect. This document shall be governed by and construed in accordance with the laws of the State of Oklahoma, and shall inure to the benefit of and be binding upon the parties hereto, their successors and assigns.
6. No Change. Except as expressly amended hereby, the Credit Agreement, and all instruments, documents and agreements executed and/or delivered by Borrower to Bank in connection therewith, shall remain in full force and effect and unchanged.
7. Costs, Expenses and Fees. Borrower agrees to pay all costs, expenses and fees incurred by Bank or otherwise in connection herewith, including, without limitation, all reasonable attorney fees, costs and expenses of Riggs, Abney, Neal, Turpen, Orbison & Lewis.
8. Multiple Counterparts. This Amendment may be executed in multiple counterparts.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized, as of the date first above written.
[Signature Page to Follow]
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| Borrower | |
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| XETA TECHNOLOGIES, INC. | |
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| By | /s/ Robert B. Wagner |
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| Robert B. Wagner, Chief Financial Officer |
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| Bank | |
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| BANK OF OKLAHOMA, N.A. | |
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| By | /s/ David Lamb |
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| David Lamb, Senior Vice President |
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Schedule 1.1
(Renewal Note)
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