Document:

form8kex102_081910.htm

 

EXHIBIT 10.2

 

 

	 	 	 

 

DISBURSEMENT REQUEST AND AUTHORIZATION

 

	
Principal

$3,373,343.69

	
Loan Date

08-16 -2010

	
Maturity

01-10-2011

	
Loan No

1089922418

	
Call / Coll

410 / 4

	
Account

MACC  PE00

	
Officer

755

	
Initials

	  
	
References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	  

	
  

	
Borrower:

	
MACC PRIVATE EQUITIES INC.

	
Lender:

	
CEDAR RAPIDS BANK AND TRUST COMPANY

	 	
101 2ND ST SE SUITE 800

	
500 1ST AVENUE NE STE 100

	 	
CEDAR RAPIDS, IA 52401-1219

	
CEDAR RAPIDS, IA 52401

	
  

	 

 

 

	 

 

 

LOAN TYPE.  This is a Variable Rate Nondisclosable Loan to a Corporation for $3,373,343.69 due on January 10, 2011.

 

PRIMARY PURPOSE OF LOAN.  The primary purpose of this loan is for:

 

	 	 o	Personal, Family, or Household Purposes or Personal Investment.
	 	 	 
	 	 x	Business (Including Real Estate Investment).
	 	 	 

 

     

    

SPECIFIC PURPOSE. The specific purpose of this loan is: Consolidate #1089921655 and #1089921654 into one term note.

 

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be disbursed until all of Lender’s conditions for making the loan have been satisfied. Please disburse the loan proceeds of $3,373,343.69 as follows:

 

	 	
Other Disbursements:

$3,373,343.69 Existing Principal Balance as of 8/16/2010

	
$3,373,343.69

__________

	 	
Note Principal:

	
$3,373,343.69

 

 

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS DISBURSEMENT REQUEST AND AUTHORIZATION AND ALL OTHER DOCUMENTS RELATING TO THIS DEBT.

 

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER’S FINANCIAL CONDITION AS DISCLOSED IN BORROWER’S MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED AUGUST 16, 2010.

 

BORROWER:

 

 

 

 

	    MACC PRIVATE EQUITIES INC.	Company Name	 
	 	 	 	 
	    By:	 /s/ Michael W. Dunn	
 

	
By: 

	/s/Derek J. Gaertner	 	 
	 	 Michael W. Dunn, Chairman of the Board of MACC PRIVATE EQUITIES INC.  	 	Derek J. Gaertner, CFO & CCO of MACC PRIVATE EQUITIES INC.	 
	 	 	 	 	 
	 

 

 

	 

LASER PRO Lending, Ver. 5.52.10.001 Copr. Harland Financial Solutions, Inc. 1997, 2010. All Rights Reserved. - IA W:\CRBT\CFI\LPL\D20C.FC   TR-5224 PR-9form8kexh103_081910.htm

EXHIBIT 10.3

 

	 	 	 

 

 

NOTICE OF FINAL AGREEMENT

 

	
Principal

$3,373,343.69

	
Loan Date

08-16 -2010

	
Maturity

01-10-2011

	
Loan No

1089922418

	
Call / Coll

410 / 4

	
Account

MACC  PE00

	
Officer

755

	
Initials

	  
	
References in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing “***” has been omitted due to text length limitations.

	  

	
Borrower:

	
MACC PRIVATE EQUITIES INC.

	
Lender:

	
CEDAR RAPIDS BANK AND TRUST COMPANY

	 	
101 2ND ST SE SUITE 800

	
500 1ST AVENUE NE STE 100

	 	
CEDAR RAPIDS, IA 52401-1219

	
CEDAR RAPIDS, IA 52401

	
  

	 

 

 

	 

 

	
IMPORTANT: READ BEFORE SIGNING. THE TERMS OF THE LOAN AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE. NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THE WRITTEN LOAN AGREEMENT MAY BE LEGALLY ENFORCED. BORROWER MAY CHANGE THE TERMS OF THE LOAN AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.

 

 

As used in this Notice, the following terms have the following meanings:

 

Loan. The term “Loan” means the following described loan: a Variable Rate Nondisclosable Loan to a Corporation for $3,373,343.69 due on January 10, 2011.

Loan Agreement. The term “Loan Agreement” means one or more promises, promissory notes, agreements, undertakings, security agreements, deeds of trust or other documents, or commitments, or any combination of those actions or documents, relating to the Loan, including without limitation the following:

 

LOAN DOCUMENTS

Change In Terms Agreement                                               Disbursement Request and Authorization

Notice of Final Agreement                                                    Fourth Amendment to Business Loan Agreement

 

Parties. The term “Parties” means CEDAR RAPIDS BANK AND TRUST COMPANY and any and all entities or individuals who are obligated to repay the loan or have pledged property as security for the Loan, including without limitation the following:

Borrower:                     MACC PRIVATE EQUITIES INC.

 

	  

 

Each Party who signs below, other than CEDAR RAPIDS BANK AND TRUST COMPANY, acknowledges, represents, and warrants to CEDAR RAPIDS BANK AND TRUST COMPANY that it has received, read and understood this Notice of Final Agreement. This Notice is dated August 16, 2010.

 

BORROWER:

 

 

	MACC PRIVATE EQUITIES INC.	Company Name	 
	 	 	 	 
	By: 	 /s/ Michael W. Dunn	
 

	
By: 

	/s/Derek J. Gaertner	 	 
	 	 Michael W. Dunn, Chairman of the Board of MACC PRIVATE EQUITIES INC.  	 	Derek J. Gaertner, CFO & CCO of MACC PRIVATE EQUITIES INC.	 
	 	 	 	 	 
	 	 	 	 

 

LENDER:

 

	CEDAR RAPIDS BANK AND TRUST COMPANY	 
	 	 	 
	
By: 

	/s/ John Hall	 
	 	John Hall, Asst. Vice President	 
	 	 	 
	 	 	 

 

	 

LASER PRO Lending, Ver. 5.52.10.001 Copr. Harland Financial Solutions, Inc. 1997, 2010. All Rights Reserved. - IA W:\CRBT\CFI\LPL\D20C.FC   TR-5224 PR-9form8kex104_081910.htm

EXHIBIT 10.4

 

FOURTH AMENDMENT

TO

BUSINESS LOAN AGREEMENT

This FOURTH AMENDMENT TO BUSINESS LOAN AGREEMENT (“Fourth Amendment”) is dated as of August 16, 2010 (“Fourth Amendment Effective Date”), by and between CEDAR RAPIDS BANK & TRUST COMPANY (the “Lender”) and MACC Private Equities, Inc., f/k/a MorAmerica Capital Corporation (the “Borrower”).

RECITALS:

WHEREAS, the Borrower and the Lender are parties to (i) that certain Business Loan Agreement dated as of August 30, 2007 as amended by an Omnibus Amendment, Consent and Waiver dated April 29, 2008, and a Second Amendment to Business Loan Agreement and Security Agreements dated as of August  14, 2009, and a Third Amendment to Business Loan Agreement dated as of March 31, 2010 (the "Third Amendment") (collectively the “Loan Agreement”); (ii) the Commercial Security Agreement, dated as of August 30, 2007 as amended by an Omnibus Amendment, Consent and Waiver dated April 29, 2008 and a Second Amendment to Business Loan Agreement and Security Agreements dated as of August 14, 2009 (the “Commercial Security Agreement”); (iii) the Commercial Pledge and Security Agreement dated as of August 30, 2007, as amended by an Omnibus Amendment, Consent and Waiver dated April 29, 2008 and a Second Amendment to Business Loan Agreement and Security Agreements dated as of August 14, 2009 (the “Commercial Pledge and Security Agreement”); (iv) the Change in Terms Agreement dated March 31, 2010 (the “Change in Terms Agreement”); (v) the Disbursement Request and Authorization dated March 31, 2010 (the “Disbursement Request and Authorization”); (vi) the Notice of Final Agreement dated March 31, 2010 (the “Notice of Final Agreement”); and (vii) the Side Letter dated May 10, 2010 (the “Side Letter” and together with the Loan Agreement, the Commercial Security Agreement, Commercial Pledge and Security Agreement, Change in Terms Agreement, Disbursement Request and Authorization, Notice of Final Agreement, and Side Letter collectively, the “Operative Documents”);

WHEREAS, Borrower and the Lender desire to replace the Third Amendment and the Side Letter with the provisions of this Fourth Amendment.

AMENDMENTS

NOW, THEREFORE, for good and valuable consideration, the parties hereto agree as follows:

SECTION 1.                      DEFINITIONS.  All terms contained in this Fourth Amendment and not otherwise defined shall have the meanings assigned to them in the Loan Agreement.  After the Fourth Amendment Effective Date, all references in the Loan Agreement, as amended, to “this Agreement,” “herein,” “hereunder,” and words of similar import shall be deemed to be references to the Loan Agreement as amended hereby.  References in the Operative Documents to the Loan Agreement shall be deemed to refer to the Loan Agreement as so amended.

SECTION 2.                      AMENDMENTS TO THE LOAN AGREEMENT.  The Bank and Borrower hereby agree, effective upon the Fourth Amendment Effective Date, that the Loan Agreement shall be amended as follows:

2.0           The DEFINITIONS Section of the Loan Agreement is amended by inserting in the appropriate alphabetical order, the following definitions:

                                                        

  

-1 -

  

Capital Transaction.  The words “Capital Transaction” means one or more transactions for the issuance of common stock, preferred stock, convertible preferred stock or convertible debentures, or warrants, options or rights to subscribe to, convert to or purchase common stock, which transactions produce aggregate proceeds to Borrower of at least $1,000,000.

Liquidity.  The word “Liquidity” means the sum of Seventy Five Percent (75%) of the current value of all publicly traded stocks and other short-term, publicly traded liquid securities held in the name of the Borrower plus all of Borrower’s cash, cash deposits, and cash equivalents.

Fourth Amendment Effective Date.  The words “Fourth Amendment Effective Date” mean the effective date of the Fourth Amendment as set forth therein.

2.1           The Section entitled “Affirmative Covenants” is amended by adding the following paragraphs:

Minimum Liquidity:  At all times after completion of the Capital Transaction, the Company shall maintain minimum Liquidity in the amount of $500,000.  Liquidity shall be measured on the last day of each fiscal quarter and reported on a quarterly basis in a covenant compliance certificate supplied by Borrower to Lender at the same time as Borrower delivers its interim financial statements pursuant to the Loan Agreement.

Capital Transaction:  A meeting of the shareholders of the Company shall be held no later than October 31, 2010, at which the shareholders shall approve the Capital Transaction and the Capital Transaction shall be funded no later than December 31, 2010.

Deposit of Capital Transaction Proceeds:  Deposit a minimum of $150,000 of proceeds of the Capital Transaction in Borrower's primary deposit account with Lender.

SECTION 3                      EFFECT OF AMENDMENT.  This Fourth Amendment supersedes and replaces in full the provisions of the Third Amendment and the Side Letter.   Any terms of the Loan Agreement or any documents that have not been expressly modified or amended by this Fourth Amendment are hereby ratified and confirmed and shall remain in full force and effect between the parties.

SECTION 4.                      COUNTERPARTS.  This Fourth Amendment may be executed in any number of separate counterparts, each of which when so executed and delivered shall be an original, but all of which taken together shall constitute one (1) instrument.  Any of the parties hereto may execute this Fourth Amendment by signing any such counterpart.

SECTION 5.                      CONSTRUCTION.  This Fourth Amendment shall be governed by and construed in accordance with the law of the State of Iowa.  Section and paragraph headings contained herein are for the convenience of reference only, and shall not be construed as to affect the interpretation or construction of any substantive provision of this Fourth Amendment.

SECTION 6.                      Borrower hereby acknowledges receipt of a copy of this Agreement.

IMPORTANT:  READ BEFORE SIGNING.  THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE.  NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED.  YOU MAY CHANGE THE TERMS OF THIS AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.  THIS NOTICE ALSO APPLIES TO ANY OTHER LOAN AGREEMENTS NOW IN EFFECT BETWEEN YOU AND THIS LENDER.

[Signature Page Follows]

                                                           

  

-2 -

  

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as the day and year first above written.

 

	 MACC PRIVATE EQUITIES, INC. 	CEDAR RAPIDS BANK & TRUST	 
	 f/k/a MorAmerica Capital Corporation	COMPANY	 

 

	 	 	 
	 	 	 	 
	By:   	
/s/ Michael W. Dunn

	
 

	
By: 

	/s/ John Hall 	 	 
	 	Michael W. Dunn, its Chairman of the Board  	 	John Hall, its AVP	 
	 	 	 	 
	 	 	 	 

 

	By:	 /s/ Derek J. Gaertner	 
	 	 Derek J. Gaertner, its CFO	 
	 	 	 

 

                                                         

  

-3 -

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