Document:

Amendment to Commercial Loan Agreement and Loan Documents

 Exhibit 10.1 
 AMENDMENT TO 
 COMMERCIAL LOAN AGREEMENT AND LOAN DOCUMENTS 

THIS AMENDMENT TO COMMERCIAL LOAN AGREEMENT AND LOAN DOCUMENTS (this “Amendment”), made effective as of September 19, 2011
(the “Effective Date”), is by and among RBS CITIZENS NATIONAL ASSOCIATION, a national banking association and successor by merger to Citizens Bank New Hampshire with a place of business at 875 Elm Street, Manchester, New Hampshire 03101
(the “Bank”); MICRONETICS, INC., a Delaware corporation with an executive office at 26 Hampshire Drive, Hudson, New Hampshire 03051 (the “Borrower”); MICROWAVE & VIDEO SYSTEMS, INC., a Connecticut corporation with an
executive office at 160B Shelton Road, Monroe, Connecticut 06468, MICROWAVE CONCEPTS, INC., and STEALTH MICROWAVE, INC., each a Delaware corporation, and all with an executive office at 26 Hampshire Drive, Hudson, New Hampshire 03051; and MICA
MICROWAVE CORPORATION, a Delaware corporation with an executive office at 1096 Mellon Avenue, Manteca, California 95337 and formerly known as “Del Merger Subsidiary, Inc.” (individually, a “Guarantor”, and collectively, the
“Guarantors”). 
 R E C I T A L S: 

WHEREAS, the Bank has extended to the Borrower certain credit facilities consisting of a revolving line of credit loan in the principal
amount of up to Seven Million Five Hundred Thousand Dollars ($7,500,000.00) (the “Revolving Line of Credit Loan”), and a term loan in the original principal amount of Six Million Five Hundred Thousand Dollars ($6,500,000.00) (the
“Term Loan”), all pursuant to a certain Commercial Loan Agreement dated March 30, 2007 by and among the Bank, the Borrower and the Guarantors, as amended to date (the “Loan Agreement”) and the Loan Documents as defined
therein; and 
 WHEREAS, the Bank, at the request of the Borrower and the Guarantors, has agreed to amend the Loan Agreement in
certain respects, all upon and subject to the terms and conditions of this Amendment. 
 NOW, THEREFORE, in consideration of the
foregoing premises and the mutual covenants, agreements and promises contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as follows: 

1. Capitalized Terms. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Loan
Agreement. 

 2. Amendments to Loan Agreement. 

(a) The introductory paragraph of Section I, and Sections I.A and I.B, of the Loan Agreement shall be, and hereby are, deleted in their
entirety and replaced with the following new introductory paragraph and Sections I.A and I.B: 
 “I. REVOLVING LINE OF
CREDIT LOAN. The Revolving Line of Credit Loan shall be made available by the Bank to the Borrower pursuant and subject to the terms and conditions set forth in this Agreement, and all advances and readvances thereunder shall be evidenced by the
Borrower’s revolving credit note in the principal amount of $10,000,000 (as such Note may be amended, restated or replaced, the “Revolving Credit Note”). 
 A. Revolver Expiration Date. Pending an Event of Default, the Bank shall extend the Revolving Line of Credit Loan to Borrower for the period from the date hereof through and until
September 30, 2015 (the “Revolver Expiration Date”). THE ENTIRE AMOUNT OF OUTSTANDING PRINCIPAL, ACCRUED INTEREST AND OTHER CHARGES PAYABLE UNDER THE REVOLVING LINE OF CREDIT LOAN SHALL BE DUE AND PAYABLE BY BORROWER ON THE REVOLVER
EXPIRATION DATE. BORROWER ACKNOWLEDGES AND AGREES THAT THE BANK HAS NO OBLIGATION OR COMMITMENT TO RENEW THE REVOLVING LINE OF CREDIT LOAN ON THE REVOLVER EXPIRATION DATE. 
 B. Maximum Available Amount. The maximum amount available to the Borrower from time to time under the Revolving Line of Credit Loan (the “Maximum Available Amount”) shall be
$10,000,000.” 
 (b) Section IX.B of the Loan Agreement shall be, and hereby is, deleted in its entirety and replaced with
the following new Section IX.B: 
 “B. Additional Indebtedness. Incur indebtedness for borrowed money (including
Capital Leases) or provide any guaranties except: (1) borrowings under the Loans; (2) other Obligations to the Bank or obligations to Affiliates of the Bank; (3) unsecured trade accounts payable incurred in the ordinary course of
business; (4) indebtedness of the Guarantors to the Borrower; and (5) purchase money financings or Capital Leases, provided that the aggregate amount outstanding at any time under all such financings or Capital Leases not provided by RBS
Asset Finance, an Affiliate of the Bank, shall not exceed $1,000,000 (the financing described in clause (5) being a “Permitted Financing”).” 
 (c) The first paragraph of Section I of Schedule B of the Loan Agreement shall be, and hereby is, deleted in its entirety and replaced with the following new first paragraph: 

“Unused Revolving Line of Credit Loan Fee: Borrower shall pay to Bank an unused Revolving Line of Credit Loan Fee equal to
0.20% per annum of the daily average of unadvanced amounts under Revolving Line of Credit Loan (based upon full availability of the Maximum Available Amount), determined and payable quarterly in arrears.” 

  
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 (d) Section III of Schedule B of the Loan Agreement shall be, and hereby is, deleted in its
entirety and replaced with the following new Section III: 
 “III. Financial Covenants. Borrower shall not breach or
fail to comply with any of the following covenants, each of which shall be calculated in accordance with GAAP consistently applied: 
 A. Borrower shall have Debt Service Coverage of not less than 1.25:1 as of the end of each Fiscal Quarter for the twelve (12) month period then ending. 

B. Borrower shall have a ratio of Total Funded Debt to EBITDA for the twelve (12) month period then ending of not greater than 2.5:1
at all times. 
 C. Borrower shall have a Current Ratio of not less than 1.25:1 at all times. 

Unless otherwise specifically provided herein, any accounting term used in the Agreement shall have the meaning customarily given such
term in accordance with GAAP, and all financial computations hereunder shall be computed in accordance with GAAP consistently applied, except to the extent otherwise specifically provided under this Agreement. That certain items or computations are
explicitly modified by the phrase “in accordance with GAAP” shall in no way be construed to limit the foregoing. If any “Accounting Changes” (as defined below) occur and such changes result in a change in the calculation of the
financial covenants, standards or terms used in the Agreement any other Loan Document, then Borrower and Bank agree to enter into negotiations in order to amend such provisions of the Agreement so as to equitably reflect such Accounting Changes with
the desired result that the criteria for evaluating Borrower’s financial condition shall be the same after such Accounting Changes as if such Accounting Changes had not been made. “Accounting Changes” means (a) changes in
accounting principles required by the promulgation of any rule, regulation, pronouncement or opinion by the Financial Accounting Standard Board of the American Institute of Certified Public Accountants (or successor thereto or any agency with
similar functions), (b) changes in accounting principles concurred in by Borrower’s certified public accountants; (c) purchase accounting adjustments under APB 16 and/or 17 and EITF 88-16, and the application of the accounting
principles set forth in FASB 109, including the establishment of reserves pursuant thereto and any subsequent reversal (in whole or in part) of such reserves; and (d) the reversal of any reserves established as a result of purchase accounting
adjustments. All such adjustment resulting from expenditures made subsequent to the Closing Date (including capitalization of costs and expenses or payment of pre-Closing Date liabilities) shall be treated as expenses in the period the expenditures
are made and deducted as part of the calculation of EBITDA in such period. If Borrower and Bank agree upon the required amendments, then after appropriate amendments have been executed and the underlying Accounting Change with respect thereto has
been implemented, any reference to GAAP contained in the Agreement or in any other Loan Document shall, only to the extent of such Accounting Change, refer to GAAP, consistently applied after given effect to the implementation of such Accounting
Change. If Borrower and 

  
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Bank cannot agree upon the required amendments within thirty (30) days following the date of implementation of any Accounting Change, then all Financial Statements delivered and all
calculations of financial covenants and other standards and terms in accordance with the Agreement and other Loan Documents shall be prepared, delivered and made without regard to the underlying Accounting Change.” 

3. Amended and Restated Revolving Credit Note. Contemporaneously with the execution of this Amendment, the Borrower shall execute
and deliver to the Bank for its benefit an amended and restated revolving credit note in substantially the form attached hereto as Exhibit A (the “Note”). 
 4. Reaffirmation of Representations and Warranties. The Borrower and the Guarantors hereby confirm, reassert, and restate all of their respective representations and warranties under the Loan
Agreement and the Loan Documents as of the date hereof. 
 5. Reaffirmation of Affirmative Covenants. The Borrower and
the Guarantors hereby confirm, reassert, and restate all of their respective affirmative covenants as set forth in the Loan Agreement and the Loan Documents as of the date hereof. 

6. Reaffirmation of Negative Covenants. The Borrower and the Guarantors hereby confirm, reassert, and restate all of their
respective negative covenants as set forth in the Loan Agreement and the Loan Documents as of the date hereof. 
 7. Further
Representation and Warranties. The Borrower and the Guarantors, jointly and severally, further represent and warrant to the Bank as follows: 
 (a) The execution, delivery and performance of this Amendment and the documents executed and delivered pursuant hereto (collectively, the “Amendment Documents”) are within the power of the
Borrower and the Guarantors and are not in contravention of law, the Borrower’s or the Guarantor’s Articles or Certificates of Incorporation or By-laws, or the terms of any other documents, agreements or undertaking to which the Borrower
or the Guarantors are a party or by which any of the Borrower or the Guarantors are bound. No approval of any person, corporation, governmental body or other entity not provided herewith is required as a prerequisite to the execution, delivery and
performance by any of the Borrower and the Guarantors of the Amendment Documents or any of the documents submitted to the Bank in connection with the Amendment Documents to ensure the validity or enforceability thereof. 

(b) All necessary corporate and other action has been taken by each of the Borrower and the Guarantors to authorize the execution,
delivery and performance of this Amendment and the Amendment Documents to which each is a party which, when executed on behalf of the Borrower and/or the Guarantors, as the case may be, will constitute the legally binding obligations of the Borrower
and the Guarantors, enforceable in accordance with their respective terms. 

  
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 8. No Other Modifications. Except as specifically modified or amended herein or
hereby, all of the terms and conditions of each of the Loans, the Loan Agreement, and the Loan Documents, remain otherwise unchanged, and in full force and effect, all of which are hereby confirmed and ratified by the parties hereto. 

9. Bank Fee. For and in consideration of the Bank entering into this Amendment, the Borrower shall pay to the Bank a fee in the
amount of $3,125.00, due, payable in full, and earned in full on the Effective Date. The Borrower consents to the Bank charging Borrower’s Revolving Line of Credit Loan account for such fee. 

10. Costs and Expenses of Bank. The Borrower agrees to reimburse the Bank for all reasonable costs, expenses, and fees, including
attorneys’ fees, associated with the documentation of this Amendment. The Borrower consents to the Bank charging the Borrower’s Revolving Line of Credit Loan account for any such costs, expenses and fees. 

11. Counterparts. This Amendment may be executed in several counterpart copies. Each such counterpart copy shall be deemed an
original, but all of such copies together shall constitute one and the same agreement. 
 [SIGNATURE PAGE FOLLOWS] 

  
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 IN WITNESS WHEREOF, the parties have executed and delivered this Amendment effective as of
the Effective Date. 
  

							
		 		 	BANK:
		 		 	RBS CITIZENS NATIONAL ASSOCIATION
				
	  
	 		 	By:	 	 /s/ Timothy J. Whitaker

	Witness	 		 		 	Timothy J. Whitaker, Senior Vice President
			
		 		 	BORROWER:
		 		 	MICRONETICS, INC.
				
	  
	 		 	By:	 	 /s/ David Robbins

	Witness	 		 		 	David Robbins, Chief Executive Officer
			
		 		 	GUARANTORS:
		 		 	MICA MICROWAVE CORPORATION
		 		 	MICROWAVE & VIDEO SYSTEMS, INC.
		 		 	MICROWAVE CONCEPTS, INC.
		 		 	STEALTH MICROWAVE, INC.
				
	  
	 		 	By:	 	 /s/ David Robbins

	Witness	 		 		 	David Robbins, PresidentAmended and Restated Revolving Credit Note

 Exhibit 10.2 
 AMENDED AND RESTATED 
 REVOLVING CREDIT NOTE 

 

			
		  	Nashua, New Hampshire
	$10,000,000.00 U.S.	  	September 19, 2011

 FOR VALUE RECEIVED, the undersigned, MICRONETICS, INC., a Delaware corporation with an executive office
at 26 Hampshire Drive, Hudson, New Hampshire 03051 (the “Borrower”), hereby promises to pay to the order of RBS CITIZENS NATIONAL ASSOCIATION, a national banking association and successor by merger to Citizens Bank New Hampshire, with a
place of business at 875 Elm Street, Manchester, New Hampshire 03101 (the “Bank”), at such office, or such other place or places as the holder hereof may designate in writing from time to time hereafter, in lawful currency of the United
States of America and in immediately available funds, the principal sum of up to TEN MILLION and 00/100 DOLLARS ($10,000,000.00), or so much thereof as may be advanced or readvanced by the Bank to the Borrower from time to time hereafter (such
amounts defined as the “Debit Balance” below), pursuant and subject to the terms, conditions, and limitations of this Note and the Commercial Loan Agreement dated of even date among the Borrower, the Guarantors, and the Bank, as the same
may be amended and/or restated from time to time hereafter (the “Loan Agreement”), together with interest thereon, all as provided in the Loan Agreement and herein below. All payments shall be made without counterclaim or setoff, and free
and clear of, and without any deduction or withholding for, any taxes or other payments. 
 The Borrower’s “Debit
Balance” (sometimes hereinafter referred to as the “Loan”) shall mean the debit balance in an account on the books of the Bank, maintained in the form of a ledger card, computer records or otherwise in accordance with the Bank’s
customary practice and appropriate accounting procedures wherein there shall be recorded the date and the principal amount of each advance and readvance made by the Bank to the Borrower hereunder, each principal payment made by the Borrower to the
Bank hereunder, and all other appropriate debits and credits. The Bank shall render to the Borrower a statement of account with respect thereto on a monthly basis. The statement shall be considered correct and accepted by the Borrower, unless
Borrower notifies the Bank to the contrary within thirty (30) days after the date of mailing. 
 The holder of this Note is
entitled to all of the benefits and rights, and is subject to all of the obligations, of the Bank under the Loan Agreement. However, neither this reference to the Loan Agreement nor any provision thereof shall impair the absolute and unconditional
obligation of the Borrower to pay the principal and interest of this Note as herein provided. Terms not otherwise defined herein shall have the meanings ascribed to them in the Loan Agreement. This Note is identified in the Loan Agreement as the
“Revolving Credit Note”. 
 This Note evidences the Borrower’s continuing obligation to pay the Debit Balance
(identified as the “Revolving Line of Credit Loan” in the Loan Agreement), plus interest and any other applicable charges as determined from time to time, and Borrower acknowledges that it shall continue to be so obligated despite the
occurrence of intervals when the Borrower has paid the Debit Balance down to zero. 

 The Debit Balance shall be payable in the amounts and on the dates specified in the Loan
Agreement, the terms of which are hereby incorporated herein by reference. Interest hereon shall accrue and be paid until such Debit Balance is paid in full at such interest rates and at such times, and pursuant to such calculations, as are
specified in the Loan Agreement. The entire principal balance evidenced by this Note, together with all accrued and unpaid interest hereon and other charges related hereto, shall be due and payable on the Revolver Expiration Date. 

Upon and after the occurrence of any Event of Default, this Revolving Credit Note may, as provided in the Loan Agreement, and without
demand, notice or legal process of any kind, be declared, and immediately shall become, due and payable in full. 
 Time is of
the essence under this Revolving Credit Note. Demand, presentment, protest and notice of nonpayment and protest are hereby waived by Borrower. 
 The payment and performance of the obligations contained herein and in the other Loan Documents are secured by a security interest in all of Borrower’s and Guarantors’ assets and property
interests granted to the Bank pursuant to the Security Agreement and other Loan Documents. 
 Borrower hereby grants to Bank, a
continuing lien, security interest and right of setoff as security for all liabilities and obligations to Bank, whether now existing or hereafter arising, upon and against all deposits, credits, collateral and property, now or hereafter in the
possession, custody, safekeeping or control of Bank or any entity under the control of Citizens Financial Group and its successors and assigns or in transit to any of them. At any time after the occurrence of a Default (subject to any applicable
cure period) or Event of Default, without demand or notice (any such notice being expressly waived by Borrower), Bank may setoff the same or any part thereof and apply the same to any liability or obligation of Borrower even though unmatured and
regardless of the adequacy of any other collateral securing the Loan. ANY AND ALL RIGHTS TO REQUIRE BANK TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE LOAN, PRIOR TO EXERCISING ITS RIGHT OF SETOFF WITH
RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWLINGLY, VOLUNTARILY AND IRREVOCABLY WAIVED. 

No delay or omission on the part of the holder in exercising any right, privilege or remedy shall impair such right, privilege or remedy
or be construed as a waiver thereof or of any other right, privilege or remedy. No waiver of any right, privilege or remedy or any amendment to this Note shall be effective unless made in writing and signed by the holder. Under no circumstances
shall an effective waiver of any right, privilege or remedy on any one occasion constitute or be construed as a bar to the exercise of or a waiver of such right, privilege or remedy on any future occasion. 

The acceptance by the holder hereof of any payment after any default hereunder shall not operate to extend the time of payment of any
amount then remaining unpaid hereunder or constitute a waiver of any rights of the holder hereof under this Note. 

  
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 All rights and remedies of the holder, whether granted herein or otherwise, shall be
cumulative and may be exercised singularly or concurrently. 
 This Note and the provisions hereof shall be binding upon the
Borrower and the Borrower’s successors, legal representatives and assigns and shall inure to the benefit of the Bank and the Bank’s successors, legal representatives and assigns. 

The word “holder” as used herein shall mean the payee or endorsee of this Note who is in possession of it, or the bearer, if
this Note is at the time payable to the bearer. 
 Upon receipt of an affidavit of an officer of Bank as to the loss, theft,
destruction or mutilation of this Note, and, in the case of any such loss, theft, destruction or mutilation, upon cancellation of this Note, Borrower will issue in lieu hereof, a replacement note in the same principal amount hereof and otherwise of
like tenor. 
 This Note may not be amended, changed or modified in any respect except by a written document which has been
executed by each party. This Note constitutes a New Hampshire contract to be governed by the laws of such state and to be paid and performed therein. 
 BORROWER AND BANK (BY ACCEPTANCE OF THIS NOTE) MUTUALLY HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE THE RIGHT TO A TRIAL BY JURY IN RESPECT OF ANY CLAIM BASED HEREON, ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS NOTE OR ANY OTHER LOAN DOCUMENTS CONTEMPLATED TO BE EXECUTED IN CONNECTION HEREWITH OR ANY COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY, INCLUDING, WITHOUT LIMITATION, ANY
COURSE OF CONDUCT, COURSE OF DEALINGS, STATEMENTS OR ACTIONS OF BANK RELATING TO THE ADMINISTRATION OF THE LOAN OR ENFORCEMENT OF THE LOAN DOCUMENTS, AND AGREE THAT NEITHER PARTY WILL SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN
WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. EXCEPT AS PROHIBITED BY LAW, BORROWER HEREBY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LITIGATION ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN,
OR IN ADDITION TO, ACTUAL DAMAGES. BORROWER CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF BANK HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT BANK WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER. THIS WAIVER
CONSTITUTES A MATERIAL INDUCEMENT FOR BANK TO ACCEPT THIS NOTE AND MAKE THE LOAN. 

  
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 This Note is executed and delivered in replacement of, but not in novation or discharge of,
the Borrower’s amended and restated revolving credit promissory note dated August 13, 2010 payable to the order of the Bank in the original principal amount of Seven Million Five Hundred Thousand and 00/100 Dollars ($7,500,000.00) (as
amended, restated, supplemented or otherwise modified, the “Prior Note”). The indebtedness originally evidenced by the Prior Note is a continuing indebtedness now evidenced by this Note, and secured by all of the collateral securing the
Prior Note. Nothing herein contained shall be construed to deem such Prior Note paid, or to release or terminate any lien, mortgage or security interest given to secure such Prior Note. 

Executed and delivered the day and year first above written. 

 

							
		 		 	BORROWER:
			
		 		 	MICRONETICS, INC.
				
	  
	 		 	By:	 	 /s/ David Robbins

	Witness	 		 		 	David Robbins
		 		 		 	Chief Executive Officer

  
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