Document:

Exhibit 10.6

 

		
        ADVANCE FORMULA AGREEMENT 

 

 

 

This Advance Formula Agreement (the "Agreement")
is made as of January 29, 2015, by PERCEPTRON, INC. ("Debtor"), unto COMERICA BANK ("Bank").

 

Debtor executed and delivered unto Bank
that certain Master Revolving Note dated as of January 6, 2012, made in the principal amount of Six Million Dollars ($6,000,000)
(as the same may be amended, modified, extended, renewed, restated, substituted and/or replaced from time to time, and whether
in a greater or lesser amount, the "Note"). Debtor's liabilities, obligations and indebtedness under or pursuant to the
Note are secured pursuant to certain collateral documents entered into from time to time between Debtor and Bank, including, without
limit, that certain Security Agreement dated October 24, 2002, executed and delivered by Debtor unto Bank (as the same may be amended,
modified, extended, renewed, restated, substituted and/or replaced from time to time, the "Security Agreement").

 

1.          FORMULA
LOANS. "Formula Loans" shall mean, collectively, loans, advances and other credit made or extended by Bank to or
in favor of Debtor under or pursuant to and evidenced by the Note, together with any letters of credit issued by Bank thereunder
or in connection therewith, subject to the terms and conditions of this Agreement, the Note, the Security Agreement and any other
agreement(s) between Debtor and Bank (as the same may be amended, modified, extended, renewed, restated, substituted and/or replaced
from time to time, the "Loan Documents").

 

2.          ADVANCE
FORMULA. For and in consideration of Bank making the Formula Loans available to Debtor, Debtor warrants and agrees that the
aggregate unpaid principal balance of Debtor's indebtedness to Bank outstanding under the Formula Loans shall not at any time exceed
the Advance Formula. The "Advance Formula" shall mean the lesser of (i) the face amount of the Note, or (ii) 80% of Debtor's
Eligible Accounts, as hereinafter defined.

 

3.          FORMULA
COMPLIANCE. If, at any time, the aggregate unpaid principal balance of Debtor's indebtedness to Bank outstanding under the
Formula Loans (plus, without duplication, the sum of the aggregate undrawn amounts of any such letters of credit and the aggregate
unreimbursed amount of all draws under such letters of credit honored by Bank) shall exceed the Advance Formula, Debtor shall immediately
pay Bank sums sufficient to reduce the Formula Loans by the amount of such excess, without the necessity of notice or demand by
Bank. The foregoing shall not limit, waive or otherwise affect any rights or remedies available to Bank, whether under this Agreement,
the Note, any other Loan Document(s), at law or otherwise.

 

4.          ELIGIBLE
ACCOUNT. "Eligible Account" shall mean an Account (as hereinafter defined) arising in the ordinary course of Debtor's
business which meets each of the following requirements:

 

		(a)	it is not due and payable more than ninety (90) days
from the date of the original invoice or other writing evidencing such Account; and it is not owing more than ninety (90) days
after the date of the original invoice or other writing evidencing such Account;

 

		(b)	it is not owing by an Account Debtor (as hereinafter
defined) who has failed to pay twenty five percent (25%) or more of the aggregate amount of its Accounts owing to Debtor within
ninety (90) days after the date of the respective invoices or other writings evidencing such Accounts;

 

		(c)	it arises from the sale or lease of goods and such goods
have been shipped or delivered to the Account Debtor under such Account for unconditional acceptance by such Account Debtor; or
it arises from services rendered and such services have been performed by Debtor and unconditionally accepted by the Account Debtor;

 

		(d)	it is evidenced by an invoice, dated not later than the
date of shipment or performance, rendered to such Account Debtor or some other evidence of billing acceptable to Bank;

 

    	 

    	 

    

 

		(e)	it is not evidenced by any note, trade acceptance, draft
or other negotiable instrument or by any chattel paper, unless such note or other document or instrument previously has been endorsed
and delivered by Debtor to Bank;

 

		(f)	it is a valid, legally enforceable obligation of the
Account Debtor thereunder, and is not subject to any offset, counterclaim or other defense on the part of such Account Debtor
or to any claim on the part of such Account Debtor denying liability thereunder in whole or in part;

 

		(g)	it is subject to a first priority, properly perfected
security interest in favor of Bank, and it is not subject to any sale of accounts, any rights of offset, assignment, lien or security
interest whatsoever other than to Bank;

 

		(h)	it is not owing by an officer, employee, partner, joint
venturer, agent, subsidiary or affiliate of Debtor, or by an Account Debtor that has common shareholders (unless (i) Debtor and
such Account Debtor are each publicly traded entities, or (ii) such common shareholder shall beneficially own less than five percent
(5%) of the outstanding common stock of Debtor), officers or directors with Debtor or is otherwise related to Debtor;

 

		(i)	it is not owing by an Account Debtor which (i) does not
maintain its chief executive office in the United States of America or Canada, or is not organized under the laws of the United
States of America or Canada, or any state or province thereof, as applicable, or (ii) is the government of any foreign country
or sovereign state, or of any state, province, municipality or other instrumentality thereof;

 

		(j)	it is not an Account owing by the United States of America
or any state or political subdivision thereof, or by any department, agency, public body corporate or other instrumentality of
any of the foregoing, unless all necessary steps are taken to comply with the Federal Assignment of Claims Act of 1940, as amended,
or with any comparable state or local law, if applicable, and all other necessary steps are taken to perfect Bank's security interest
in such Account;

 

		(k)	it is not owing by an Account Debtor for which (i) the
death of the Account Debtor or any partner of the Account Debtor has occurred, (ii) the dissolution, liquidation, termination
of existence, insolvency or business failure of the Account Debtor has occurred, (iii) the appointment of a receiver for any part
of the property of the Account Debtor has occurred, (iv) an assignment for the benefit of creditors, the filing of a petition
in bankruptcy, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against the Account Debtor
has occurred; or (v) Debtor shall have received notice of the imminent occurrence of any of the foregoing with respect to such
Account Debtor;

 

		(l)	it is not a contra Account or an Account owing by an
Account Debtor with respect to which Debtor is liable for good sold or leased or for services rendered by such Account Debtor;

 

		(m)	it strictly complies with all Debtor's representations
and warranties to Bank set forth in this Agreement, the Security Agreement and any other agreement(s) between Debtor and Bank;

 

		(n)	it is not an Account billed in advance, payable on delivery,
for consigned goods, for guaranteed sales, for unbilled sales, for progress billings, payable at a future date in accordance with
its terms, subject to a retainage or holdback by the Account Debtor or insured by a surety company; and

 

		(o)	it is not owing by any Account Debtor whose obligations
Bank, acting in its sole discretion, shall have notified Debtor are not deemed to constitute Eligible Accounts; nor is it an Account
that Bank, acting in its sole discretion, shall have deemed to not constitute an Eligible Account.

 

An Account which is at any time an Eligible
Account, but which subsequently fails to meet any of the foregoing requirements, shall forthwith cease to be an Eligible Account
and shall be immediately deducted from the calculation of Eligible Accounts.

 

    	2

    	 

    

 

For purposes of this Agreement, an “Account”
shall mean any right of Debtor to payment for goods sold or leased or for services rendered, but shall not include interest or
service charges; and “Account Debtor” shall mean the person who is obligated on or under an Account.

 

5.          CERTIFICATES,
SCHEDULES AND REPORTS. Debtor will deliver to Bank from time to time such agings, schedules, certificates and reports as may
be required by the Loan Documents. Debtor will deliver to Bank from time to time such additional schedules, certificates and reports
respecting all or any of the Collateral (as defined in the Security Agreement), the items or amounts received by Debtor in full
or partial payment of any of the Collateral, and any goods (the sale or lease of which by Debtor shall have given rise to any of
the Collateral) possession of which has been obtained by Debtor, all and as to such extent as Bank may request. Any such aging,
schedule, certificate or report shall be executed by a duly authorized officer of Debtor and shall be in such form and detail as
Bank may specify. Any such schedule identifying any Eligible Account shall be accompanied (if Bank so requests) by a true and correct
copy of the invoice evidencing such Eligible Account and by evidence of shipment or performance.

 

6.          INSPECTIONS;
COMPLIANCE. Debtor shall permit Bank and its designees from time to time to make such inspections and audits, and to obtain
such confirmations or other information, with respect to any of the Collateral or any Account Debtor as Bank is entitled to make
or obtain under the Security Agreement or other Loan Document(s), and shall reimburse Bank on demand for all costs and expenses
incurred by Bank in connection with such inspections and audits. Debtor shall further comply with all of the other terms and conditions
of the Security Agreement and each of the other Loan Documents. Notwithstanding any of the provisions contained this Agreement
or otherwise, Debtor hereby acknowledges and agrees that upon completion of any such inspection or audit Bank shall have the right
to modify the percentage of Eligible Accounts included within the Advance Formula under Section 2 above or the definition of Eligible
Accounts, in its sole and reasonable discretion, based on its review of the results of such inspection or audit.

 

7.          DEFAULT.
Any failure by Debtor to comply with this Agreement shall constitute a default under the Formula Loans and under the Note, the
Security Agreement and the Indebtedness, as defined therein, and each of the other Loan Documents, and Bank shall be entitled to
exercise any and all rights and remedies available to it as a result of such default, whether under this Agreement, the Note, any
other Loan Document(s), at law or otherwise.

 

8.          AMENDMENTS;
WAIVERS; OTHER DOCUMENTS. This Agreement may be amended, modified or terminated only in writing duly executed by Debtor and
Bank. No delay by Bank in requiring Debtor's compliance herewith shall constitute a waiver of such right. The rights granted to
Bank hereunder are cumulative, and in addition to any other rights Bank may have by agreement or under applicable law. This Agreement
shall supersede and replace in their entirety any prior advance formula agreements in effect between Bank and Debtor. Debtor acknowledges
and agrees that the Formula Loans are further subject to the terms and conditions of all other instruments, documents and agreements
evidencing, governing, securing or otherwise relating to the Formula Loans.

 

9.          GOVERNING
LAW. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Michigan, without
regard to conflict of laws principles.

 

10.         DISCRETIONARY/DEMAND
BASIS FORMULA LOANS. Notwithstanding anything to the contrary set forth in this Agreement, in the event that the Formula Loans
are at any time on a demand basis or advances are subject to the Bank's discretion, Debtor hereby acknowledges and agrees that
the Advance Formula set forth in Section 2 hereof is merely for advisory and guidance purposes and Bank shall not be obligated
to make any loans or advances under the Formula Loans, and, notwithstanding the terms of Section 3 above, Bank may at any time,
at its option, demand payment of any or all of the Formula Loans, whereupon the same shall become due and payable.

 

11.         DILUTION
OF ACCOUNTS. In the event that Bank, at any time in its sole discretion, determines that the dollar amount of Eligible Accounts
collectable by Debtor is reduced or diluted as a result of discounts or rebates granted by Debtor to the respective Account Debtor(s),
returned or rejected Inventory or services, or such other reasons or factors as Bank deems applicable, Bank may, in its sole discretion,
upon five (5) business days’ prior written notice to Debtor, reduce or otherwise modify the percentage of Eligible Accounts
included within the Advance Formula under Section 2(a) above and/or reduce the dollar amount of Debtor’s Eligible Accounts
by an amount determined by Bank in its sole discretion.

 

    	3

    	 

    

 

12.         JURY
WAIVER. DEBTOR AND BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED UNDER
CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT)
WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT WAIVES ANY RIGHT TO TRIAL BY JURY IN THE
EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE INDEBTEDNESS.

 

13.         SPECIAL
PROVISIONS: None.

 

[the rest of this page intentionally left
blank]

 

    	4

    	 

    

 

IN WITNESS WHEREOF, this Agreement has
been duly executed as of the day and year first above written.

 

	Debtor's Chief Executive Office Address:	DEBTOR:
	 	 
	Perceptron, Inc.	PERCEPTRON, INC.
	47827 Halyard Dr.	 
	Plymouth, MI 48170	 

 

	 	By:	/s/ Keith R. Marchiando
	 	 	SIGNATURE OF 

 

	 	Its:	Chief Financial Officer
	 	 	TITLE

 

Accepted and Approved:

 

COMERICA BANK

 

	By:	/s/ Robert A. Rosati	 
	 	SIGNATURE OF ROBERT A. ROSATI	 

 

Its: Vice President

 

[Signature Page to Advance Formula Agreement]EX-10.1

Exhibit 10.1

PROMISSORY NOTE

	 	 	 	 	 
	$	50,000.00	 	 	February 2, 2015

Miami, FL

FOR VALUE RECEIVED, the undersigned, Non-Invasive Monitoring Systems, Inc., a Florida
corporation with its principal place of business at 4400 Biscayne Blvd., Miami, FL 33137 (“Maker”),
promises to pay to the order of Jane Hsiao of 4400 Biscayne Blvd., 15th Floor Miami, FL
33137 (“Payee”), at such place as may be designated in writing by Payee, the principal sum of FIFTY
THOUSAND AND 00/XX ($50,000.00) (this “Note”).

1. The principal amount of the loan evidenced hereby, together with any accrued and unpaid
interest, and any and all unpaid costs, fees and expenses accrued, shall be due and payable on July
31, 2015 (the “Maturity Date”).

2. All amounts outstanding from time to time hereunder shall bear interest at the rate of
eleven percent (11%) per annum until such amounts are paid.

3. This Note may be prepaid in whole or in part without penalty or premium. All payments of
principal shall be made in lawful money of the United States which shall be legal tender in payment
of all debts, public and private, at the time of payment.

4. The Maker agrees to pay all costs of collection incurred in enforcing this Note, including
attorneys’ fees and costs at both trial and appellate levels and in any bankruptcy action. In the
event any legal proceedings are instituted in connection with, or for the enforcement of, this
Note, Payee shall be entitled to recover its costs of suit, including attorneys’ fees and costs, at
both trial and appellate levels and in any bankruptcy action.

5. Each maker, endorser and guarantor or any person, firm or corporation becoming liable under
this Note hereby consents to any extension or renewal of this Note or any part hereof, without
notice, and agrees that they will remain liable under this Note during any extension or renewal
hereof, until the debts represented hereby are paid in full.

6. All persons now or at any time liable for payment of this Note hereby waive presentment,
protest, notice of protest and dishonor. The Maker expressly consents to any extension or renewal,
in whole or in part, and all delays in time of payment or other performance which Payee may grant
at any time and from time to time without limitation and without any notice or further consent of
the undersigned. The remedies of Payee as provided herein shall be cumulative and concurrent and
may be pursued singularly, successively or together, at the sole discretion of Payee, and may be
exercised as often as the occasion therefor shall arise.

7. This Note is to be governed by and construed in accordance with the applicable laws of the
State of Florida. Any action brought upon the enforcement of this Note is hereby authorized to be
instituted and prosecuted in the state and federal courts located in Miami-Dade County, Florida, at
the election of Payee.

8. This Note may not be changed orally, but only by an agreement in writing, signed by the
party against whom enforcement of any waiver, change, modification or discharge is sought. This
Note shall not be assignable or transferable by Maker without the express written consent of Payee.

9. No delay on the part of Payee in exercising any right or remedy hereunder shall operate as
a waiver of such right or remedy. No single or partial exercise of a right or remedy shall
preclude other or further exercise of that or any other right or remedy. The failure of Payee to
insist upon strict performance of any term of this Note, or to exercise any right or remedy
hereunder, shall not be construed as a waiver or relinquishment by the Payee for the future use of
that term, right or remedy. No waiver of any right of the Payee is effective unless in writing
executed by the Payee.

10. The unenforceability or invalidity of any provision of this Note as to any person or
circumstances shall not render that provision or those provisions unenforceable or invalid as to
any other provisions or circumstances, and all provisions hereof, in all other respects, shall
remain valid and enforceable.

IN WITNESS WHEREOF, the undersigned has executed this Note on the date specified below.

DATE: February 2, 2015

MAKER:

NON-INVASIVE MONITORING SYSTEMS, INC.

By:       James J. Martin

Name: James J. Martin

Its: Chief Financial Officer

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]