Exhibit 10.2

 

FIRST AMENDMENT TO

CREDIT AGREEMENT AND REVOLVING CREDIT NOTES

 

THIS FIRST AMENDMENT TO CREDIT AGREEMENT AND REVOLVING CREDIT NOTES (this
“Amendment”) is made as of the 31st day of December, 2003 by and among MTC
TECHNOLOGIES, INC., a Delaware corporation (“MTCT”), MTC TECHNOLOGIES, INC.
(formerly known as MODERN TECHNOLOGIES CORP.), an Ohio corporation (together
with MTCT, collectively, “Borrowers” and, individually, each a “Borrower”); the
financial institutions listed on Schedule 1 to the Credit Agreement
(collectively, the “Banks” and, individually, each a “Bank”); and NATIONAL CITY
BANK, as lead arranger and administrative agent for the Banks (“Agent”) under
the following circumstances:

 

A. The Borrowers, the Agent and the Banks are parties to a Credit Agreement
dated as of January 31, 2003 (as the same may be amended, supplemented, modified
and/or restated from time to time, the “Credit Agreement”). Unless otherwise
defined herein, all capitalized terms used herein shall have the respective
meanings ascribed to those terms by the Credit Agreement.

 

B. Pursuant to the Credit Agreement, the Banks have provided the Revolving Loans
to the Borrowers which are evidenced by Revolving Credit Notes dated as of
January 31, 2003 (collectively, as the same may be amended, supplemented,
modified and/or restated from time to time, the “Original Revolving Credit
Notes”).

 

C. The Borrowers, the Agent and the Banks now desire to amend the Credit
Agreement and the Original Revolving Credit Notes for the reasons and upon the
terms and conditions hereinafter set forth.

 

NOW, THEREFORE, the Borrowers, the Agent and the Banks agree as follows:

 

Section 1. Amendment to Credit Agreement.

 

(a) Amendment to Preamble. Subsection (b) of the Preamble to the Credit
Agreement is hereby amended in its entirety to read as follows:

 

(b) and MTC TECHNOLOGIES, INC., formerly known as MODERN TECHNOLOGIES CORP., an
Ohio corporation, (together with MTCT, collectively, “Borrowers” and,
individually, each a “Borrower”);

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(b) Amendment to Article I. Article I to the Credit Agreement is amended by
adding the following new Section 1.4 immediately following Section 1.3:

 

1.4 USA Patriot Act Notification. The following notification is provided to the
Borrowers pursuant to Section 326 of the USA Patriot Act of 2001, 31 U.S.C.
Section 5318:

 

(a) IMPORTANT INFORMATION ABOUT PROCEDURES FOR OPENING A NEW ACCOUNT. To help
the government fight the funding of terrorism and money laundering activities,
Federal law requires all financial institutions to obtain, verify, and record
information that identifies each person or entity that opens an account,
including any deposit account, treasury management account, loan, other
extension of credit, or other financial services product. What this means for
the Borrowers: When a borrower opens an account, if borrower is an individual,
the applicable bank will ask for borrower’s name, taxpayer identification
number, residential address, date of birth and other information that will allow
such bank to identify borrower, and, if borrower is not an individual, such bank
will ask for borrower’s name, taxpayer identification number, business address,
and other information that will allow such bank to identify borrower. The bank
may also ask, if borrower is an individual, to see borrower’s driver’s license
or other identifying documents, and, if borrower is not an individual, to see
borrower’s legal organizational documents or other identifying documents.

 

(b) Government Regulation. The Borrowers shall not (a) be or become subject at
any time to any law, regulation, or list of any government agency (including,
without limitation, the U.S. Office of Foreign Asset Control list) that
prohibits or limits the Agent or Banks from making any advance or extension of
credit to the Borrowers or from otherwise conducting business with the
Borrowers, or (b) fail to provide documentary and other evidence of the borrower
identity as may be requested by Agent or Banks at any time to enable Agent or
Banks to verify the Borrowers’ identity or to comply with any applicable law or
regulation, including, without limitation, Section 326 of the USA Patriot Act of
2001, 31 U.S.C. Section 5318.

 

(c) Amendment to Section 1.1. Section 1.1 of the Credit Agreement is hereby
amended by deleting the current definitions of “Capital Distribution”, “Maximum
Commitment Amount” and “Total Commitment Amount” and replacing them with the
following new definitions:

 

“Capital Distribution” shall mean a payment made, liability incurred or other
consideration given by any Company to any Person that is not a Company, for the
purchase, acquisition, redemption, repurchase or retirement of any capital stock
or other equity interest of such Company or as a dividend, return of capital or
other distribution in respect of such Company’s capital stock or other equity
interest, but shall not include the following: (a) any stock dividend, stock
split or other equity distribution payable only in capital stock or other equity
of such Company, (b) any transaction pursuant to the 2002 Equity and Performance

 

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Incentive Plan of the Borrowers, (c) any dividend, return of capital or other
distribution in respect of such Company’s capital stock or other equity interest
so long as such Company shall have demonstrated to the satisfaction of Agent no
less than 5 Business Days prior to such distribution, evidence satisfactory to
Agent of compliance with the following: (i) no Default or an Event of Default
shall then exist, or immediately after giving effect to any such distribution
would exist, and (ii) the Leverage Ratio shall be less than 1.50 to 1.00 both
prior to and immediately after giving effect to any such distribution.

 

“Maximum Commitment Amount” shall mean Eighty Million Dollars ($80,000,000), or
such other amount as shall be determined pursuant to Section 2.11 hereof.

 

“Total Commitment Amount” shall mean Fifty-Five Million Dollars ($55,000,000),
as such amount may be increased up to the Maximum Commitment Amount pursuant to
Section 2.11(b) hereof, or decreased pursuant to Section 2.11(a) hereof.

 

(d) Amendment to Section 2.11(b). Section 2.11(b) of the Credit Agreement is
hereby amended in its entirety to provide as follows:

 

(b) Increase in Commitment. At any time during the Commitment Increase Period,
Administrative Borrower may request that Agent increase the Total Commitment
Amount to the Maximum Commitment Amount by either (i) increasing, for one or
more Banks, with and subject to their prior written consent, their respective
Revolving Credit Commitments, or (ii) with and subject to the prior written
consent of Agent, including one or more Additional Banks, each with a new
Revolving Credit Commitment, as a party to this Agreement (collectively, the
“Additional Commitment”). During the Commitment Increase Period, the Banks agree
that Agent, in its sole discretion, may permit one or more Additional
Commitments upon satisfaction of the following requirements: (A) each Additional
Bank, if any, shall execute an Additional Bank Assumption Agreement, (B) Agent
shall provide to each Bank a revised Schedule 1 to this Agreement, including
revised Commitment Percentages for each of the Banks, if appropriate, at least
three Business Days prior to the effectiveness of such Additional Commitments
(each an “Additional Bank Assumption Effective Date”), and (C) Borrowers shall
execute and deliver to Agent and the Banks such replacement or additional
Revolving Credit Notes as shall be required by Agent. The Banks hereby authorize
Agent to execute each Additional Bank Assumption Agreement on behalf of the
Banks. On each Additional Bank Assumption Effective Date, the Banks shall make
adjustments among themselves with respect to the Revolving Loans then
outstanding and amounts of principal, interest, commitment fees and other
amounts paid or payable with respect thereto as shall be necessary, in the
opinion of Agent, in order to reallocate among such Banks such outstanding
amounts, based on the revised Commitment Percentages and to otherwise carry out
fully the intent and terms of this subsection (b). It is a

 

3

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condition precedent to Borrowers’ ability to request any increase in the Total
Commitment Amount pursuant to this subsection (b) that Borrowers shall have
demonstrated to the satisfaction of the Agent compliance with each of the
following: (x) no Default or Event of Default shall then exist, or immediately
after giving effect to any such increase would exist, and (y) MTCT shall have
completed a secondary stock offering raising a minimum of $50,000,000 in
additional equity. Borrowers shall pay any attorneys’ fees or other expenses of
Agent in connection with the documentation of any such increase, as well as such
other fees as may be agreed upon between Borrowers and Agent.

 

(e) Amendment to Section 5.7(f). Section 5.7(f) of the Credit Agreement shall be
amended in its entirety to read as follows:

 

(f) Capital Expenditures. Borrowers will not make or commit to make Capital
Expenditures exceeding 1.5% of annual Consolidated revenues of Borrowers in any
fiscal year of Borrowers.

 

(f) Amendment to Section 5.13 of the Credit Agreement. Section 5.13 of the
Credit Agreement shall be amended in its entirety to read as follows:

 

Section 5.13. Acquisitions. No Company shall effect an Acquisition; provided,
however, that a Credit Party may effect an Acquisition so long as:

 

(a) in the case of a merger, amalgamation or other combination including a
Borrower, such Borrower shall be the surviving entity;

 

(b) in the case of a merger, amalgamation or other combination including a
Credit Party (other than a Borrower), a Credit Party shall be the surviving
entity;

 

(c) the business to be acquired shall be similar to the lines of business of the
Companies;

 

(d) the Acquisition is non-hostile;

 

(e) the entity which is the target of the Acquisition shall have projected
Consolidated EBITDA for the first 12-month period following the closing of such
Acquisition of not less than 10% of the total purchase price of such target (for
purposes of this subsection (e), any reference to “MTCT” in the definition of
“Consolidated EBITDA” or in the definition of any defined term comprising such
definition shall be a reference to the target of the Acquisition);

 

(f) no Default or Event of Default shall exist prior to or after giving effect
to such Acquisition;

 

4

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(g) Borrowers shall have provided to Agent and the Banks, at least ten (10) days
prior to such Acquisition, historical financial statements of the target entity
and a pro forma financial statement of the Companies accompanied by a
certificate of a Financial Officer of a Borrower showing pro forma compliance
with Section 5.7 hereof, both before and after the proposed Acquisition; and

 

(h) immediately after the consummation of such Acquisition, the amount equal to
(i) the Total Commitment Amount minus (ii) the Revolving Credit Exposure shall
be no less than Ten Million Dollars ($10,000,000).

 

(g) Amendment to Schedule 1 to the Credit Agreement. Schedule 1 to the Credit
Agreement shall be deleted and replaced with the new Schedule 1 attached hereto.

 

Section 2. Amendment to Original Revolving Credit Notes and Loan Documents.

 

(a) The “Revolving Credit Note” or “Revolving Credit Notes” referred to in the
Loan Documents shall mean the Amended and Restated Revolving Credit Notes in the
form attached hereto as Exhibits A-1, A-2, A-3, and A-4 respectively.

 

(b) Each and every reference in the Loan Documents to “Modern Technologies
Corp.” shall be a reference to “MTC Technologies, Inc.”

 

Section 3. Effective Date. This Amendment shall take effect immediately upon the
satisfaction, in the Agent’s sole discretion, of the following conditions
precedent:

 

(a) Agent’s receipt of an original counterpart of this Amendment executed by all
parties hereto;

 

(b) Agent’s receipt of the original Confirmation of Guarantees executed by
Amcomp Corporation, International Consultants, Inc. and Vitronics Inc.
(collectively, the “Guarantors”);

 

(c) Agent’s receipt of the Amended and Restated Revolving Credit Notes executed
by Borrowers;

 

(d) Agents’s receipt of the following, certified as true and correct and in full
force and effect by a duly authorized officer of each Borrower and each
Guarantor:

 

(i) resolutions of each of the Board of Directors of each Borrower and each
Guarantor authorizing execution, delivery and performance of this Amendment or
Confirmation of Guarantee, as applicable, and all other documents executed and
delivered in connection herewith to which each is a party;

 

(ii) the articles of incorporation of each Borrower and each Guarantor, as
certified by the Secretary of State of the state of incorporation of such
entity; and

 

5

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(iii) the bylaws or code of regulations of each Borrower and each Guarantor.

 

(e) Receipt by Agent of an opinion of counsel to Borrowers and Guarantors, in
form and substance satisfactory to Agent;

 

(f) Receipt by each Bank of an amendment fee in the amount equal to 12.5 bps
multiplied by the increase of each Bank’s Maximum Amount as set forth on
Schedule 1 over such Bank’s pro-rata portion of the Closing Commitment Amount;
and

 

(g) Receipt by Agent of all out-of-pocket costs and expenses incurred in making
the Loans and entering into this Agreement (including, without limitation, all
reasonable attorney fees, audit fees and filing fees incurred by Agent).

 

Section 4. Costs and Expenses. The Borrowers hereby agree to reimburse the Agent
and Banks for all costs and expenses incurred by Agent and Banks, in connection
with this Amendment and the transactions contemplated hereby, including its
respective legal fees and expenses.

 

Section 5. Miscellaneous. Agent, the Banks and each Borrower hereby agree that:

 

(a) The Credit Agreement, the Revolving Credit Notes and the other Loan
Documents, as amended hereby, remain otherwise unmodified and in full force and
effect.

 

(b) Each Borrower hereby represents and warrants to Agent and the Banks that (i)
no Default or Event of Default has occurred and is continuing (ii) the
representations and warranties of such Borrower in the Credit Agreement and the
other Loan Documents are true and correct in all material respects as if made on
the date hereof (except to the extent that any expressly relates to an earlier
date), and (iii) such Borrower has no cause of action, at law or in equity,
against Agent or the Banks, including, without limitation, any offset,
counterclaim or defense with respect to the Notes (including the Swing Line
Note) or the Loans evidenced thereby or any Loan Document.

 

(c) This Amendment is limited precisely as written and shall not (i) constitute
a consent under or waiver or modification of any other term or condition of the
Credit Agreement, the other Loan Documents or any other agreements, instruments
or documents referred to therein, or (ii) prejudice or otherwise affect any
right or privilege which Agent or the Banks now have or may have in the future
under the Credit Agreement, the other Loan Documents or under any of the other
agreements, documents or instruments therein.

 

(d) This Amendment may be executed in any one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument.

 

(e) This Amendment shall be governed by, and construed and enforced in
accordance with, the laws of the State of Ohio.

 

6

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IN WITNESS WHEREOF, the parties hereto have caused a counterpart of this
Amendment to be duly executed and delivered as of the date first above written.

 

Address:

 

4032 Linden Avenue

Dayton, OH 45432

Attention: David Gutridge

Fax: (937) 252-8240

 

MTC TECHNOLOGIES, INC., a Delaware corporation

 

     

By:

 

/s/ David S. Gutridge

--------------------------------------------------------------------------------

     

Name:

 

David S. Gutridge

     

Title:

 

Chief Executive Officer and Secretary

Address:

 

4032 Linden Avenue

Dayton, OH 45432

Attention: David Gutridge

Fax: (937) 252-8240

 

MTC TECHNOLOGIES, INC., formerly known as MODERN TECHNOLOGIES CORP., an Ohio
corporation

 

     

By:

 

/s/ David S. Gutridge

--------------------------------------------------------------------------------

     

Name:

 

David S. Gutridge

     

Title:

 

Chief Executive Officer and Secretary

Address:

 

629 Euclid Avenue

LOC. 01-3034

Cleveland, Ohio 44114

Attention: Capital Markets Division

- Loan Syndications

Fax: (216) 222-7079

 

NATIONAL CITY BANK as Agent and as a Bank

 

     

By:

 

/s/ Neal J. Hinker

--------------------------------------------------------------------------------

     

Name:

 

Neal J. Hinker

     

Title:

 

Senior Vice President

 

[SIGNATURES OF BANKS CONTINUE ON NEXT PAGE]

 

7

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Address:

 

34 North Main Street

Dayton Ohio 45402

Attention: Michael Dunlavey

Fax: (937) 586-7695

 

KEYBANK NATIONAL ASSOCIATION

 

     

By:

 

/s/ R. Michael Dunlavey

--------------------------------------------------------------------------------

     

Name:

 

R. Michael Dunlavey

     

Title:

 

Vice President

Address:

 

110 North Main Street

Dayton OH 45402

Attention: Neal Ratliff

Fax: (937) 227-3027

 

FIFTH THIRD BANK

 

     

By:

 

/s/ Neal R. Ratliff

--------------------------------------------------------------------------------

     

Name:

 

Neal R. Ratliff

     

Title:

 

Vice President

Address:

 

200 West Second Street

16th Floor

Winston-Salem,

North Carolina 27101

Attention: Roberts Bass

Fax: (336) 733-2740

 

BRANCH BANKING AND TRUST COMPANY

 

     

By:

 

/s/ Roberts A. Bass

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Name:

 

Roberts A. Bass

     

Title:

 

Senior Vice President

 

8

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SCHEDULE 1

 

BANKING

INSTITUTIONS

--------------------------------------------------------------------------------

  

COMMITMENT

PERCENTAGE

--------------------------------------------------------------------------------

 

REVOLVING

CREDIT

COMMITMENT

AMOUNT

--------------------------------------------------------------------------------

   MAXIMUM
AMOUNT

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National City Bank

   31.8181%   $17,500,000    $17,500,000

KeyBank National Association

   22.7272%   $12,500,000    $12,500,000

Fifth Third Bank

   22.7272%   $12,500,000    $12,500,000

Branch Banking and Trust Company

   22.7272%   $12,500,000    $12,500,000

Total Commitment Amount

   100%   $55,000,000    $55,000,000     

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     (approximately)         

 

9

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CONFIRMATION OF GUARANTY

 

The undersigned, AMCOMP CORPORATION, a California corporation (“Amcomp”),
INTERNATIONAL CONSULTANTS, INC., an Ohio corporation (“ICI”), and VITRONICS
INC., a New Jersey corporation (“Vitronics” and collectively with Amcomp and
ICI, the “Guarantors”), jointly and severally hereby:

 

(A) Acknowledge that MTC TECHNOLOGIES, INC., a Delaware corporation (“MTCT”),
MTC TECHNOLOGIES, INC. (formerly known as MODERN TECHNOLOGIES CORP.), an Ohio
corporation (together with MTCT, collectively, “Borrowers” and, individually,
each a “Borrower”), the financial institutions listed on Schedule 1 to the
Credit Agreement (defined herein) (collectively, the “Banks” and, individually,
each a “Bank”); and NATIONAL CITY BANK, as lead arranger and administrative
agent for the Banks (“Agent”) have entered into that certain Credit and Security
Agreement dated as of January 31, 2003, as amended by a First Amendment to
Credit Agreement dated as of December 31, 2003 (as so amended and as may be
further amended from time to time, the “Credit Agreement”), whereby the Banks
have extended financial accommodations to the Borrowers, and the Borrowers have
executed Notes (as defined in the Credit Agreement) in favor of the Banks, in
evidence thereof. Terms used but not defined herein shall have the meaning
ascribed thereto in the Credit Agreement.

 

(B) Acknowledge that the Amended and Restated Revolving Credit Notes evidencing
the Revolving Loans are each a “Note” under the Credit Agreement, along with the
Swing Line Note, and other notes delivered pursuant to the Credit Agreement.

 

(C) Acknowledge that the Guarantors have guaranteed payment of the principal and
interest of all Notes pursuant to a Guaranty of Payment of Debt dated as of
January 31, 2003 in the case of Amcomp, and a Guaranty of Payment of Debt dated
as of October 6, 2003 in the case of ICI, and a Guaranty of Payment of Debt
dated as of the date hereof in the case of Vitronics (collectively, the
“Guarantees”).

 

(D) Acknowledge that the Guarantors have each received and had an opportunity to
review the First Amendment to Credit Agreement referred to in the first
paragraph of this Confirmation of Guaranty and consent to the amendments to the
Credit Agreement, including without limitation the increase in the Total
Commitment Amount from $35,000,000 to $55,000,000, as such amount may be further
increased in accordance with the Credit Agreement, and the Maximum Commitment
Amount from $50,000,000 to $80,000,000, as such amount may be further increased
in accordance with the Credit Agreement.

 

(E) Represent and warrant to the Agent and the Banks that the undersigned have
no defenses, offsets or counterclaims, either individually or jointly, with
respect to their obligations under the Guarantees and the Guarantees remain
unmodified and in full force and effect.

 

[REMAINDER OF PAGE IS INTENTIONALLY BLANK.]

 

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This Confirmation of Guaranty is executed as of the 31st day of December, 2003.

 

AMCOMP CORPORATION, a California corporation

By:

 

/s/ David S. Gutridge

--------------------------------------------------------------------------------

Name:

 

David S. Gutridge

Title:

  Chief Financial Officer, Vice President and Secretary INTERNATIONAL
CONSULTANTS, INC., an Ohio corporation

By:

 

/s/ David S. Gutridge

--------------------------------------------------------------------------------

Name:

 

David S. Gutridge

Title:

  Chairman, Executive Vice President and CFO

VITRONICS INC., a New Jersey corporation

By:

 

/s/ David S. Gutridge

--------------------------------------------------------------------------------

Name:

 

David S. Gutridge

Title:

 

President

 

11

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EXHIBIT A-1

 

AMENDED AND RESTATED

REVOLVING CREDIT NOTE

 

$17,500,000.00

  Dayton, Ohio     December 31, 2003

 

FOR VALUE RECEIVED, the undersigned, MTC TECHNOLOGIES, INC., a Delaware
corporation, and MTC TECHNOLOGIES, INC., (formerly known as MODERN TECHNOLOGIES
CORP.), an Ohio corporation (collectively, “Borrowers” and, individually, each a
“Borrower”), jointly and severally, promise to pay, on the last day of the
Commitment Period, as defined in the Credit Agreement (as hereinafter defined),
to the order of NATIONAL CITY BANK (“Bank”) at the main office of NATIONAL CITY
BANK, as Agent, as hereinafter defined, 1900 East 9th Street, Cleveland, Ohio
44114-3484, the principal sum of SEVENTEEN MILLION FIVE HUNDRED THOUSAND DOLLARS
($17,500,000.00) or the aggregate unpaid principal amount of all Revolving Loans
made by Bank to Borrowers pursuant to Section 2.2 of the Credit Agreement,
whichever is less, in lawful money of the United States of America.

 

As used herein, “Credit Agreement” means the Credit and Security Agreement dated
as of January 31, 2003, among Borrowers, the Banks, as defined therein, and
National City Bank, as lead arranger and administrative agent for the Banks
(“Agent”), as amended by the First Amendment to Credit Agreement and Revolving
Credit Notes dated as of December 31, 2003, and as the same may be further
amended, restated or otherwise modified from time to time. Each capitalized term
used herein that is defined in the Credit Agreement and not otherwise defined
herein shall have the meaning ascribed to it in the Credit Agreement. This Note
amends, restates and replaces that certain Revolving Note dated as of January
31, 2003 by Borrowers in favor of the Bank in its entirety.

 

Borrowers also promise to pay interest on the unpaid principal amount of each
Revolving Loan from time to time outstanding, from the date of such Revolving
Loan until the payment in full thereof, at the rates per annum that shall be
determined in accordance with the provisions of Section 2.5 of the Credit
Agreement. Such interest shall be payable on each date provided for in such
Section 2.5; provided, however, that interest on any principal portion that is
not paid when due shall be payable on demand.

 

The portions of the principal sum hereof from time to time representing Base
Rate Loans and LIBOR Loans, and payments of principal of any thereof, shall be
shown on the records of Bank by such method as Bank may generally employ;
provided, however, that failure to make any such entry shall in no way detract
from the obligations of Borrowers under this Note.

 

If this Note shall not be paid at maturity, whether such maturity occurs by
reason of lapse of time or by operation of any provision for acceleration of
maturity contained in the Credit Agreement, the principal hereof and the unpaid
interest thereon shall bear interest, until paid, at a rate per annum equal to
the Default Rate. All payments of principal of and interest on this Note shall
be made in immediately available funds. In the event of a failure to pay
interest or principal, when the same becomes due, Bank may collect and Borrowers
agree to pay a late charge of an amount equal to the greater of (a) ten percent
(10%) of the amount of such late payment, or (b) Twenty-Five Dollars ($25).

 

12

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This Note is one of the Revolving Credit Notes referred to in the Credit
Agreement. Reference is made to the Credit Agreement for a description of the
right of the undersigned to anticipate payments hereof, the right of the holder
hereof to declare this Note due prior to its stated maturity, and other terms
and conditions upon which this Note is issued.

 

Except as expressly provided in the Credit Agreement, Borrowers expressly waive
presentment, demand, protest and notice of any kind.

 

Each of the undersigned, to the extent permitted by law, hereby waives any right
to have a jury participate in resolving any dispute, whether sounding in
contract, tort or otherwise, between the undersigned (or any of them) and the
holder of this Note arising out of, in connection with, related to, or
incidental to the relationship established between them in connection with this
Note and the Credit Agreement or the transactions related thereto.

 

MTC TECHNOLOGIES, INC., a Delaware corporation

By:

 

 

--------------------------------------------------------------------------------

Name:

 

 

--------------------------------------------------------------------------------

Title:

 

 

--------------------------------------------------------------------------------

MTC TECHNOLOGIES, INC., formerly known as MODERN TECHNOLOGIES CORP., an Ohio
corporation

By:

 

 

--------------------------------------------------------------------------------

Name:

 

 

--------------------------------------------------------------------------------

Title:

 

 

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13

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EXHIBIT A-2

 

AMENDED AND RESTATED

REVOLVING CREDIT NOTE

 

$12,500,000.00

  Dayton, Ohio     December 31, 2003

 

FOR VALUE RECEIVED, the undersigned, MTC TECHNOLOGIES, INC., a Delaware
corporation, and MTC TECHNOLOGIES, INC., (formerly known as MODERN TECHNOLOGIES
CORP.), an Ohio corporation (collectively, “Borrowers” and, individually, each a
“Borrower”), jointly and severally, promise to pay, on the last day of the
Commitment Period, as defined in the Credit Agreement (as hereinafter defined),
to the order of KEYBANK NATIONAL ASSOCIATION (“Bank”) at the main office of
NATIONAL CITY BANK, as Agent, as hereinafter defined, 1900 East 9th Street,
Cleveland, Ohio 44114-3484, the principal sum of TWELVE MILLION FIVE HUNDRED
THOUSAND DOLLARS ($12,500,000.00) or the aggregate unpaid principal amount of
all Revolving Loans made by Bank to Borrowers pursuant to Section 2.2 of the
Credit Agreement, whichever is less, in lawful money of the United States of
America.

 

As used herein, “Credit Agreement” means the Credit and Security Agreement dated
as of January 31, 2003, among Borrowers, the Banks, as defined therein, and
National City Bank, as lead arranger and administrative agent for the Banks
(“Agent”), as amended by the First Amendment to Credit Agreement and Revolving
Credit Notes dated as of December 31, 2003, and as the same may be further
amended, restated or otherwise modified from time to time. Each capitalized term
used herein that is defined in the Credit Agreement and not otherwise defined
herein shall have the meaning ascribed to it in the Credit Agreement. This Note
amends, restates and replaces that certain Revolving Note dated as of January
31, 2003 by Borrowers in favor of the Bank in its entirety.

 

Borrowers also promise to pay interest on the unpaid principal amount of each
Revolving Loan from time to time outstanding, from the date of such Revolving
Loan until the payment in full thereof, at the rates per annum that shall be
determined in accordance with the provisions of Section 2.5 of the Credit
Agreement. Such interest shall be payable on each date provided for in such
Section 2.5; provided, however, that interest on any principal portion that is
not paid when due shall be payable on demand.

 

The portions of the principal sum hereof from time to time representing Base
Rate Loans and LIBOR Loans, and payments of principal of any thereof, shall be
shown on the records of Bank by such method as Bank may generally employ;
provided, however, that failure to make any such entry shall in no way detract
from the obligations of Borrowers under this Note.

 

If this Note shall not be paid at maturity, whether such maturity occurs by
reason of lapse of time or by operation of any provision for acceleration of
maturity contained in the Credit Agreement, the principal hereof and the unpaid
interest thereon shall bear interest, until paid, at a rate per annum equal to
the Default Rate. All payments of principal of and interest on this Note

 

14

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shall be made in immediately available funds. In the event of a failure to pay
interest or principal, when the same becomes due, Bank may collect and Borrowers
agree to pay a late charge of an amount equal to the greater of (a) ten percent
(10%) of the amount of such late payment, or (b) Twenty-Five Dollars ($25).

 

This Note is one of the Revolving Credit Notes referred to in the Credit
Agreement. Reference is made to the Credit Agreement for a description of the
right of the undersigned to anticipate payments hereof, the right of the holder
hereof to declare this Note due prior to its stated maturity, and other terms
and conditions upon which this Note is issued.

 

Except as expressly provided in the Credit Agreement, Borrowers expressly waive
presentment, demand, protest and notice of any kind.

 

Each of the undersigned, to the extent permitted by law, hereby waives any right
to have a jury participate in resolving any dispute, whether sounding in
contract, tort or otherwise, between the undersigned (or any of them) and the
holder of this Note arising out of, in connection with, related to, or
incidental to the relationship established between them in connection with this
Note and the Credit Agreement or the transactions related thereto.

 

MTC TECHNOLOGIES, INC., a Delaware corporation

By:

 

 

--------------------------------------------------------------------------------

Name:

 

 

--------------------------------------------------------------------------------

Title:

 

 

--------------------------------------------------------------------------------

MTC TECHNOLOGIES, INC., formerly known as MODERN TECHNOLOGIES CORP., an Ohio
corporation

By:

 

 

--------------------------------------------------------------------------------

Name:

 

 

--------------------------------------------------------------------------------

Title:

 

 

--------------------------------------------------------------------------------

 

15

--------------------------------------------------------------------------------

EXHIBIT A-3

 

AMENDED AND RESTATED

REVOLVING CREDIT NOTE

 

$12,500,000.00

  Dayton, Ohio     December 31, 2003

 

FOR VALUE RECEIVED, the undersigned, MTC TECHNOLOGIES, INC., a Delaware
corporation, and MTC TECHNOLOGIES, INC., (formerly known as MODERN TECHNOLOGIES
CORP.), an Ohio corporation (collectively, “Borrowers” and, individually, each a
“Borrower”), jointly and severally, promise to pay, on the last day of the
Commitment Period, as defined in the Credit Agreement (as hereinafter defined),
to the order of FIFTH THIRD BANK (“Bank”) at the main office of NATIONAL CITY
BANK, as Agent, as hereinafter defined, 1900 East 9th Street, Cleveland, Ohio
44114-3484, the principal sum of TWELVE MILLION FIVE HUNDRED THOUSAND DOLLARS
($12,500,000.00) or the aggregate unpaid principal amount of all Revolving Loans
made by Bank to Borrowers pursuant to Section 2.2 of the Credit Agreement,
whichever is less, in lawful money of the United States of America.

 

As used herein, “Credit Agreement” means the Credit and Security Agreement dated
as of January 31, 2003, among Borrowers, the Banks, as defined therein, and
National City Bank, as lead arranger and administrative agent for the Banks
(“Agent”), as amended by the First Amendment to Credit Agreement and Revolving
Credit Notes dated as of December 31, 2003, and as the same may be further
amended, restated or otherwise modified from time to time. Each capitalized term
used herein that is defined in the Credit Agreement and not otherwise defined
herein shall have the meaning ascribed to it in the Credit Agreement. This Note
amends, restates and replaces that certain Revolving Note dated as of January
31, 2003 by Borrowers in favor of the Bank in its entirety.

 

Borrowers also promise to pay interest on the unpaid principal amount of each
Revolving Loan from time to time outstanding, from the date of such Revolving
Loan until the payment in full thereof, at the rates per annum that shall be
determined in accordance with the provisions of Section 2.5 of the Credit
Agreement. Such interest shall be payable on each date provided for in such
Section 2.5; provided, however, that interest on any principal portion that is
not paid when due shall be payable on demand.

 

The portions of the principal sum hereof from time to time representing Base
Rate Loans and LIBOR Loans, and payments of principal of any thereof, shall be
shown on the records of Bank by such method as Bank may generally employ;
provided, however, that failure to make any such entry shall in no way detract
from the obligations of Borrowers under this Note.

 

If this Note shall not be paid at maturity, whether such maturity occurs by
reason of lapse of time or by operation of any provision for acceleration of
maturity contained in the Credit Agreement, the principal hereof and the unpaid
interest thereon shall bear interest, until paid, at a

 

16

--------------------------------------------------------------------------------

rate per annum equal to the Default Rate. All payments of principal of and
interest on this Note shall be made in immediately available funds. In the event
of a failure to pay interest or principal, when the same becomes due, Bank may
collect and Borrowers agree to pay a late charge of an amount equal to the
greater of (a) ten percent (10%) of the amount of such late payment, or (b)
Twenty-Five Dollars ($25).

 

This Note is one of the Revolving Credit Notes referred to in the Credit
Agreement. Reference is made to the Credit Agreement for a description of the
right of the undersigned to anticipate payments hereof, the right of the holder
hereof to declare this Note due prior to its stated maturity, and other terms
and conditions upon which this Note is issued.

 

Except as expressly provided in the Credit Agreement, Borrowers expressly waive
presentment, demand, protest and notice of any kind.

 

Each of the undersigned, to the extent permitted by law, hereby waives any right
to have a jury participate in resolving any dispute, whether sounding in
contract, tort or otherwise, between the undersigned (or any of them) and the
holder of this Note arising out of, in connection with, related to, or
incidental to the relationship established between them in connection with this
Note and the Credit Agreement or the transactions related thereto.

 

MTC TECHNOLOGIES, INC., a Delaware corporation

By:

 

 

--------------------------------------------------------------------------------

Name:

 

 

--------------------------------------------------------------------------------

Title:

 

 

--------------------------------------------------------------------------------

MTC TECHNOLOGIES, INC., formerly known as MODERN TECHNOLOGIES CORP., an Ohio
corporation

By:

 

 

--------------------------------------------------------------------------------

Name:

 

 

--------------------------------------------------------------------------------

Title:

 

 

--------------------------------------------------------------------------------

 

17

--------------------------------------------------------------------------------

EXHIBIT A-4

 

AMENDED AND RESTATED

REVOLVING CREDIT NOTE

 

$12,500,000.00

  Dayton, Ohio     December 31, 2003

 

FOR VALUE RECEIVED, the undersigned, MTC TECHNOLOGIES, INC., a Delaware
corporation, and MTC TECHNOLOGIES, INC., (formerly known as MODERN TECHNOLOGIES
CORP.), an Ohio corporation (collectively, “Borrowers” and, individually, each a
“Borrower”), jointly and severally, promise to pay, on the last day of the
Commitment Period, as defined in the Credit Agreement (as hereinafter defined),
to the order of BRANCH BANKING AND TRUST COMPANY (“Bank”) at the main office of
NATIONAL CITY BANK, as Agent, as hereinafter defined, 1900 East 9th Street,
Cleveland, Ohio 44114-3484, the principal sum of TWELVE MILLION FIVE HUNDRED
THOUSAND DOLLARS ($12,500,000.00) or the aggregate unpaid principal amount of
all Revolving Loans made by Bank to Borrowers pursuant to Section 2.2 of the
Credit Agreement, whichever is less, in lawful money of the United States of
America.

 

As used herein, “Credit Agreement” means the Credit and Security Agreement dated
as of January 31, 2003, among Borrowers, the Banks, as defined therein, and
National City Bank, as lead arranger and administrative agent for the Banks
(“Agent”), as amended by the First Amendment to Credit Agreement and Revolving
Credit Notes dated as of December 31, 2003, and as the same may be further
amended, restated or otherwise modified from time to time. Each capitalized term
used herein that is defined in the Credit Agreement and not otherwise defined
herein shall have the meaning ascribed to it in the Credit Agreement. This Note
amends, restates and replaces that certain Revolving Note dated as of January
31, 2003 by Borrowers in favor of the Bank in its entirety.

 

Borrowers also promise to pay interest on the unpaid principal amount of each
Revolving Loan from time to time outstanding, from the date of such Revolving
Loan until the payment in full thereof, at the rates per annum that shall be
determined in accordance with the provisions of Section 2.5 of the Credit
Agreement. Such interest shall be payable on each date provided for in such
Section 2.5; provided, however, that interest on any principal portion that is
not paid when due shall be payable on demand.

 

The portions of the principal sum hereof from time to time representing Base
Rate Loans and LIBOR Loans, and payments of principal of any thereof, shall be
shown on the records of Bank by such method as Bank may generally employ;
provided, however, that failure to make any such entry shall in no way detract
from the obligations of Borrowers under this Note.

 

If this Note shall not be paid at maturity, whether such maturity occurs by
reason of lapse of time or by operation of any provision for acceleration of
maturity contained in the Credit Agreement, the principal hereof and the unpaid
interest thereon shall bear interest, until paid, at a

 

18

--------------------------------------------------------------------------------

rate per annum equal to the Default Rate. All payments of principal of and
interest on this Note shall be made in immediately available funds. In the event
of a failure to pay interest or principal, when the same becomes due, Bank may
collect and Borrowers agree to pay a late charge of an amount equal to the
greater of (a) ten percent (10%) of the amount of such late payment, or (b)
Twenty-Five Dollars ($25).

 

This Note is one of the Revolving Credit Notes referred to in the Credit
Agreement. Reference is made to the Credit Agreement for a description of the
right of the undersigned to anticipate payments hereof, the right of the holder
hereof to declare this Note due prior to its stated maturity, and other terms
and conditions upon which this Note is issued.

 

Except as expressly provided in the Credit Agreement, Borrowers expressly waive
presentment, demand, protest and notice of any kind.

 

Each of the undersigned, to the extent permitted by law, hereby waives any right
to have a jury participate in resolving any dispute, whether sounding in
contract, tort or otherwise, between the undersigned (or any of them) and the
holder of this Note arising out of, in connection with, related to, or
incidental to the relationship established between them in connection with this
Note and the Credit Agreement or the transactions related thereto.

 

MTC TECHNOLOGIES, INC., a Delaware corporation

By:

 

 

--------------------------------------------------------------------------------

Name:

 

 

--------------------------------------------------------------------------------

Title:

 

 

--------------------------------------------------------------------------------

MTC TECHNOLOGIES, INC., formerly known as MODERN TECHNOLOGIES CORP., an Ohio
corporation

By:

 

 

--------------------------------------------------------------------------------

Name:

 

 

--------------------------------------------------------------------------------

Title:

 

 

--------------------------------------------------------------------------------

 

19