Document:

SECOND LOAN MODIFICATION AGREEMENT

SECOND LOAN MODIFICATION AGREEMENT 

 This Second Loan Modification Agreement (this "Loan Modification Agreement") is entered into as of March 22, 2005, by and between SILICON VALLEY BANK, a California-chartered bank, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at One Newton Executive Park, Suite 200, 2221 Washington Street, Newton, Massachusetts 02462, doing business under the name "Silicon Valley East" ("Bank") and CHYRON CORPORATION, a New York corporation with offices at 5 Hub Drive, Melville, New York 11747 ("Borrower").
1. DESCRIPTION OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and obligations which may be owing by Borrower to Bank, Borrower is indebted to Bank pursuant to a loan arrangement dated as of April 29, 2004, evidenced by, among other documents, a certain Loan and Security Agreement dated as of April 29, 2004 between Borrower and Bank, as amended by a certain First Loan Modification Agreement (the "First Modification") dated as of February 24, 2005 (as amended, the "Loan Agreement"). Capitalized terms used but not otherwise defined herein shall have the same meaning as in the Loan Agreement.

2. DESCRIPTION OF COLLATERAL. Repayment of the Obligations is secured by the Collateral as described in the Loan Agreement and a certain Intellectual Property Security Agreement dated April 29, 2004 (the "IP Agreement") (together with any other collateral security granted to Bank, the "Security Documents"). 

Hereinafter, the Security Documents, together with all other documents evidencing or securing the Obligations shall be referred to as the "Existing Loan Documents".
3. DESCRIPTION OF CHANGE IN TERMS.

Modification to Loan Agreement. 
A. Section 5a.(i) of the Schedule to the Loan Agreement is hereby amended by deleting the following text appearing therein:
 "(i) (a) $2,000,000, as of the last day of each January, February, April, May, July, August,     October and November during the term of this Agreement; and

  (b) $3,000,000, as of the last day of each March, June, September and December during     the term of this Agreement;"

  and substituting the following text therefor:

  "(i) (A) $2,000,000.00, at February 28, 2005;

   (B) $2,000,000.00, at March 31, 2005;

   (C) $1,500,000.00, at April 30, 2005;

   (D) $1,500,000.00, at May 31, 2005;

   (E) $2,000,000.00, at June 30, 2005;

   (F) $2,000,000.00, at July 31, 2005;

   (G) $2,000,000.00, at August 31, 2005;

   (H) $3,000,000.00, at September 30, 2005;

    (I) $2,000,000.00, at October 31, 2005;

    (J) $2,000,000.00, at November 30, 2005;

   (K) $3,000,000.00, at December 31, 2005;

   (L) $2,000,000.00, at January 31, 2006;

   (M) $2,000,000.00, at February 28, 2006;

   (N) $3,000,000.00, at March 31, 2006 and thereafter."
  

B. Section 7(3) of the Schedule to the Loan Agreement is hereby amended by deleting the following  text appearing therein:
 "Notwithstanding the terms and conditions of the subordination terms set forth in the Borrower's Series C 7% Convertible Subordinated Debentures due December 31, 2005, the Borrower shall be permitted to make regularly scheduled principal and interest payments on account thereof in an aggregate amount not to exceed $2,700,000 on or after December 31, 2005 provided that (i) at the time of making any such payment, the Borrower has no outstanding Obligations to Silicon, and (ii) there is no then existing Default under this Agreement and no Default will exist after giving effect to any such payment."

 and substituting the following text therefor:

 "Notwithstanding the terms and conditions of the subordination terms set forth in the Borrower's Series C 7% Convertible Subordinated Debentures, as amended, due April 30, 2006, the Borrower shall be permitted to make regularly scheduled principal and interest payments on account thereof in an aggregate amount not to exceed $1,261,000 on or after March 31, 2005 plus an additional aggregate amount not to exceed $1,356,000 on or after April 30, 2006, provided that in all instances (i) at the time of making any such payment, the Borrower has no outstanding Obligations to Silicon, and (ii) there is no then existing Default under this Agreement and no Default will exist after giving effect to any such payment."

4. FEES. Borrower shall pay to Bank a modification fee equal to Five Thousand Dollars ($5,000.00), which fee shall be due on the date hereof and shall be deemed fully earned as of the date hereof. Borrower shall also reimburse Bank for all legal fees and expenses incurred in connection with this amendment to the Existing Loan Documents. 

5. RATIFICATION OF INTELLECTUAL PROPERTY SECURITY AGREEMENT. Borrower hereby ratifies, confirms, and reaffirms, all and singular, the terms and conditions of the IP Agreement and acknowledges, confirms and agrees that the IP Agreement contains an accurate and complete listing of all Intellectual Property, with the exception of an application for a trademark filing by Borrower in connection with the product name "HyperX", as disclosed to the Bank in the First Modification.

6. RATIFICATION OF PERFECTION CERTIFICATE. Borrower hereby ratifies, confirms, and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate delivered to the Bank on or about April 29, 2004, and acknowledges, confirms and agrees the disclosures and information provided therein has not changed, as of the date hereof, with the exception of the Borrower's release certain software as disclosed to the Bank in the First Modification. 

7. CONSISTENT CHANGES. The Existing Loan Documents are hereby amended wherever necessary to reflect the changes described above.

8. RATIFICATION OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all terms and conditions of all security or other collateral granted to the Bank, and confirms that the indebtedness secured thereby includes, without limitation, the Obligations.

9. NO DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against the Bank with respect to the Obligations, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against the Bank, whether known or unknown, at law or in equity with respect to the Obligations, all of them are hereby expressly WAIVED and Borrower hereby RELEASES the Bank from any liability thereunder.

10. CONTINUING VALIDITY. Borrower understands and agrees that in modifying the existing Obligations, Bank is relying upon Borrower's representations, warranties, and agreements, as set forth in the Existing Loan Documents. Except as expressly modified pursuant to this Loan Modification Agreement, the terms of the Existing Loan Documents remain unchanged and in full force and effect. Bank's agreement to modifications to the existing Obligations pursuant to this Loan Modification Agreement in no way shall obligate Bank to make any future modifications to the Obligations. Nothing in this Loan Modification Agreement shall constitute a satisfaction of the Obligations. It is the intention of Bank and Borrower to retain as liable parties all makers of Existing Loan Documents, unless the party is expressly released by Bank in writing. No maker will be released by virtue of this Loan Modification Agreement.

11. COUNTERSIGNATURE. This Loan Modification Agreement shall become effective only when it shall have been executed by Borrower and Bank.

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This Loan Modification Agreement is executed as a sealed instrument under the laws of the Commonwealth of Massachusetts as of the date first written above.

	
BORROWER:

	
 

	
CHYRON CORPORATION

	
 
	
 

	
By:
	
/s/ Gerald J. Kieliszak

	
Name:
	
Gerald J. Kieliszak

	
Title:
	
Senior Vice President & Chief Financial Officer

	
 
	
 

	
 
	
 

	
BANK:

	
 
	
 

	
SILICON VALLEY BANK, d/b/a

	
 
	
 

	
SILICON VALLEY EAST

	
 
	
 

	
By:
	
/s/ Naomi B. Herman

	
Name:
	
Naomi Herman

	
Title:
	
Vice President

881263.1MacPac 8.0 Normal template

FIRST AMENDMENT TO LOAN AGREEMENT

This FIRST AMENDMENT TO LOAN AGREEMENT (this "Amendment") is entered into as of February
18, 2005 among ThermaClime, Inc., an Oklahoma corporation ("ThermaClime"), each of the Subsidiaries of ThermaClime listed on the signature pages hereof, and Cherokee Nitrogen Holdings, Inc. (individually and collectively, jointly and severally, "Borrower" or "Borrowers"), ORIX Capital Markets, LLC, a Delaware limited liability company ("ORIX"), as agent for the Lenders under the Loan Agreement, dated as of September 15, 2004, by among Borrowers, ORIX, and the Lenders (the "Loan Agreement").  Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Loan Agreement.

W I T N E S S E T H:

WHEREAS, Borrowers, Agent, and the Lenders are parties to the Loan Agreement and the Other Agreements, pursuant to which the Lenders made Term Loans to Borrowers on the terms and conditions thereof;

WHEREAS, the parties have agreed to amend a certain provision of the Loan Agreement upon the terms and conditions set forth herein; and

WHEREAS, the Agent and Requisite Lenders have agreed to the requested amendment on the terms and conditions provided herein;

NOW THEREFORE, in consideration of the foregoing premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree that all capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Loan Agreement and further agree as follows:

	Amendment to Loan Agreement:  Section 1.1.
The definition of "Fixed Charge Coverage Ratio" in Section 11.1 of the Loan Agreement is hereby amended by adding at the end of such definition, following the words "(F) capital expenditures made during such period", the following proviso:

provided, however, that for the period from the Closing Date until December 31, 2005, capital expenditures made with insurance proceeds of any casualty loss that occurred between the Closing Date and December 31, 2004, and regarding which casualty loss notice was provided to the Agent by the Borrowers and the Parent as required by the Loan Agreement, shall be excluded from the calculation of "Fixed Charge Coverage Ratio".

 

	No Other Amendments or Waivers.  Except in connection with the amendment set forth above, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Lenders under the Loan Agreement or any of the Other Agreements, nor constitute a waiver of any provision of the Loan Agreement or any of the Other Agreements.  Except for the amendments set forth above, the text of the Loan Agreement and all Other Agreements shall remain unchanged and in full force and effect and Borrowers hereby ratify and confirm their respective obligations thereunder.  This Amendment shall not constitute a course of dealing with the Lenders at variance with the Loan Agreement or the Other Agreements such as to require further notice by the Lenders to require strict compliance with the terms of the Loan Agreement and the Other Agreements in the future, except as expressly set forth herein.  Borrowers acknowledge and expressly agree that the Agent and Lenders reserve the right to, and do in fact, require strict compliance with all terms and provisions of the Loan Agreement and the Other Agreements, as amended herein.  Borrowers have no knowledge of any challenge to any of the Lenders'rights arising under the Loan Documents, or to the effectiveness of the Loan Documents.

 
	Conditions Precedent to Effectiveness.  The effectiveness of this Amendment is subject to the prior or concurrent satisfaction of each of the following conditions (the date of satisfaction or waiver of such conditions being referred to herein as the "First Amendment Effective Date"):

 	Borrowers and Parent shall have delivered to Agent an Officers'Certificate, in form and substance reasonably satisfactory to Agent, to the effect that the representations and warranties relating to such Borrower or Parent, as the case may be,  contained in Article IV of the Loan Agreement and the Other Documents are true, correct and complete in all material respects on and as of the First Amendment Effective Date to the same extent as though made on and as of that date (or, to the extent such representations and warranties specifically relate to an earlier date, that such representations and warranties were true, correct and complete in all material respects on and as of such earlier date);
	
Receipt by the Agent of an amendment fee, to be divided pro rata amongst the Lenders, in an amount equal to $10,000, such fee payable only if the condition described in clause 3(c) below is satisfied;
	
Borrowers, Parent, and Required Lenders shall have delivered to Agent counterparts of this Amendment, duly executed by each; and

	such other information, documents, instruments or approvals as the Agent or Lenders may reasonably require.

 

	Representations and Warranties of Borrowers.  Each Borrower and the Parent hereby represents and warrants as follows:
(a)  Each Borrower and Parent has the corporate power and authority to execute and deliver this Amendment and the Loan Agreement (as modified hereby) and to perform its obligations hereunder and thereunder.  The execution and delivery by each Borrower and the Parent of this Amendment and the performance of its obligations hereunder and under the Loan Agreement (as modified hereby) have been duly authorized by all requisite corporate action on the part of such Borrower or Parent, as applicable, and this Amendment and the Loan Agreement (as modified hereby) constitute legal, valid and binding obligations of each Borrower and Parent, enforceable against each Borrower and Parent in accordance with its terms, except as enforceability may be limited by (i) bankruptcy, insolvency, fraudulent conveyances, reorganization or similar laws relating to or affecting the enforcement of creditors'rights generally, (ii) general equitable principles (whether considered in a proceeding in equity or at law), and (iii) requirements of reasonableness, good faith and fair dealing.

(b)  Neither the execution and delivery by each Borrower and Parent of this Amendment, nor the consummation of the transactions herein contemplated, nor compliance with the provisions hereof or of the Loan Agreement (as modified hereby) will violate (i) any applicable law, rule, regulation, order, writ, judgment, injunction, decree or award binding on each Borrower and Parent, (ii) each Borrower and Parent's articles or certificate of incorporation or by-laws, or (iii) the provisions of any material indenture, instrument or agreement to which each Borrower and Parent is a party or is subject, or by which it, or its assets or property, whether real, personal, tangible, intangible (or mixed), leased, operated or owned, is bound, or conflict with, or constitute a default thereunder, or result in, or require, the creation or imposition of any Lien (except Permitted Liens) in, of or on such assets or property of each Borrower and Parent pursuant to the terms of, any such material indenture, instrument or agreement.
  

(c)  As of the date hereof and giving effect to the terms of this Amendment, (i) there exists no Event of Default or Potential Default and (ii) the representations and warranties applicable to such Borrower or Parent, as the case may be, contained in Article IV of the Loan Agreement (as modified hereby) are true and correct.

	Counterparts.  This Amendment may be executed in multiple counterparts, each of which shall be deemed to be an original and all of which, taken together, shall constitute one and the same agreement.  In proving this Amendment in any judicial proceedings, it shall not be necessary to produce or account for more than one such counterpart signed by the party against whom such enforcement is sought.  Delivery of an executed signature page hereof by facsimile transmission or via email transmission of an Adobe portable document file (also known as a "PDF File") shall be effective as delivery of a manually executed counterpart hereof.

	Reference to and Effect on the Loan Documents.  Upon the effectiveness of this Amendment, on and after the date hereof, each reference in the Loan Agreement to "this Agreement," "hereunder," "hereof" or words of like import referring to the Loan Agreement, and each reference in the Other Agreements to "the Loan Agreement" "thereunder," "thereof" or words of like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement as amended hereby.

	Costs, Expenses and Taxes.  Borrowers agree to pay on demand all costs and expenses in connection with the preparation, execution, and delivery of this Amendment and the other instruments and documents to be delivered hereunder, including, if required, counsel for Agent with respect thereto and with respect to advising Agent and Lenders as to their rights and responsibilities hereunder and thereunder.

	Governing Law.  This Amendment shall be governed by and construed in accordance with the laws of the State of Texas, excluding its principles of conflicts of law.

[Remainder of page intentionally left blank]

IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the day and year first written above.

BORROWERS:         THERMACLIME, INC.

                               
CHEROKEE NITROGEN HOLDINGS, INC.

                               
NORTHWEST FINANCIAL CORPORATION

                               
XPEDIAIR, INC.

                               
INTERNATIONAL ENVIRONMENTAL CORPORATION

                               
THE CLIMATE CONTROL GROUP, INC.

                               
ACP INTERNATIONAL LIMITED

                               
CLIMACOOL CORP.

                               
TRISON CONSTRUCTION, INC.

                               
KOAX CORP.

                               
CLIMATE MASTER, INC.

                               
CLIMATECRAFT, INC.

                               
CHEROKEE NITROGEN COMPANY

                               
LSB CHEMICAL CORP.

                               
EL DORADO CHEMICAL COMPANY

                               
CHEMEX I CORP.

                               
CHEMEX II CORP.

                               
DSN CORPORATION

                                By:                                                            
 

                                       Tony M. Shelby

                                        Vice President

PARENT:    LSB INDUSTRIES, INC.

        By:                                                            
 

        Tony M. Shelby

        Vice President

AGENT:     ORIX FINANCE CORP. I,

                 
as Agent and a Lender

        By:                                                            
 

        Name:

        Title:

LENDERS:    [Lender name]

        By:                                                            
 

        Name:

        Title:

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