Document:

ex4-2.htm

Exhibit 4.2

 

 

	
 

 

 

GTE NORTH INCORPORATED

 

AND

 

THE FIRST NATIONAL BANK OF CHICAGO

 

AS TRUSTEE

 

 

	
 

 

FIRST SUPPLEMENTAL INDENTURE

 

Dated as of May 1, 1996

 

TO

 

INDENTURE

 

Dated as of January 1, 1994

 

 

 

 

 

 

 

  

  

  

 

 

FIRST SUPPLEMENTAL INDENTURE, dated as of the 1st day of May, 1996 (herein called the �First Supplemental Indenture�), between GTE NORTH INCORPORATED, a corporation duly organized and existing under the laws of the State of Wisconsin (hereinafter referred to as the �Company�), and The First National Bank of Chicago, a banking association organized and existing under the laws of the United States (hereinafter referred to as the �Trustee�) under the Indenture dated as of January 1, 1994, between the Company and the Trustee (hereinafter referred to as the �Original Indenture�). Capitalized terms used in this First Supplemental Indenture and not otherwise defined herein shall have the meanings set forth in the Original Indenture.

 

WHEREAS, in accordance with Section 9.01(c) of the Original Indenture, the Company and the Trustee may enter into supplemental indentures to the Original Indenture without the consent of the Securityholders to cure any ambiguity or to correct or supplement any provision which may be defective or inconsistent with the Original Indenture or any supplemental indenture, or to make such other provisions in regard to matters or questions arising under the Original Indenture as shall not be inconsistent with the provisions of the Original Indenture and not adversely affect the interests of the holders of the Securities of any series; and

 

WHEREAS, the Company desires to amend the Original Indenture in accordance with Section 9.01(c) and has determined that the requirements of Section 9.01(c) have been satisfied and has requested the Trustee to join with it in the execution and delivery of this First Supplemental Indenture; all requirements necessary to make this First Supplemental Indenture a valid instrument, in accordance with its terms, have been met; and the execution and delivery hereof have been in all respects duly authorized;

 

NOW, THEREFORE, for good and valuable consideration the sufficiency of which is hereby recognized, the Company covenants and agrees with the Trustee as follows:

 

ARTICLE ONE

AMENDMENTS TO TERMS OF THE INDENTURE

 

Section 1.01 Certain Definitions. The Company and Trustee hereby amend Section 1.01 of the Original Indenture pursuant to Section 9.01(c) of the Original Indenture to add the following definitions in alphabetical order:

 

�Depository:

 

The term �Depository� shall mean, with respect to Securities of any series for which the Company shall determine that such Securities will be issued as a Global Security, The Depository Trust Company, New York, New York, another clearing agency, or any successor registered as a clearing agency under the Securities and Exchange Act of 1934, as amended, or other applicable statute or regulation, which, in each case, shall be designated by the Company pursuant to either Section 2.01 or 2.11.�

 

and

 

 

  

  

  

 

 

�Global Security:

 

The term �Global Security� shall mean, with respect to any series of Securities, one or more Securities executed by the Company and authenticated and delivered by the Trustee to the Depository or pursuant to the Depository�s written instruction (if acceptable to the Trustee) held by the Trustee as custodian for the Depository, all in accordance with this Indenture, which shall be registered in the name of the Depository or its nominee.�

 

Section 1.02 Terms of the Securities. The Company and Trustee hereby amend Section 2.01 of the Original Indenture pursuant to Section 9.01(c) of the Original Indenture to add a new paragraph (9) to read as follows:

 

�(9) whether the Securities of the series are issuable as a Global Security and, in such case, the identity of the Depository for such series; and�

 

and to renumber the existing paragraph (9) as paragraph (10).

 

Section 1.03 Regular Record Date. The Company and Trustee hereby amend the next to last paragraph of Section 2.03 of the Original Indenture in its entirety pursuant to Section 9.01(c) of the Original Indenture, to read as follows:

 

�Unless otherwise set forth in a Board Resolution or one or more indentures supplemental hereto establishing the terms of any series of Securities pursuant to Section 2.01 hereof, the term �regular record date� as used in this Section with respect to a series of Securities with respect to any interest payment date for such series shall mean either the fifteenth day of the month immediately preceding the month in which an interest payment date established for such series pursuant to Section 2.01 hereof shall occur, if such interest payment date is the first day of a month, or the first day of the month in which an interest payment date established for such series pursuant to Section 2.01 hereof shall occur, if such interest payment date is the fifteenth day of a month, whether or not such date is a business day.�

 

Section 1.04 Exchange of Securities. The Company and Trustee hereby amend Section 2.05 of the Original Indenture pursuant to Section 9.01(c) of the Original Indenture to insert a new paragraph at the end of Section 2.05 which reads as follows:

 

�The provisions of this Section 2.05 are, with respect to any Global Security, subject to Section 2.11 hereof.�

 

Section 1.05 Global Securities. The Company and Trustee hereby amend Article II of the Original Indenture pursuant to Section 9.01(c) of the Original Indenture to insert a new Section 2.11 at the end of Article II which reads as follows:

 

�Section 2.11 (a) If the Company shall establish pursuant to Section 2.01 that the Securities of a particular series are to be issued as a Global Security, then the Company shall execute and the Trustee shall, in accordance with Section 2.04, authenticate and deliver, a Global Security which (i) shall represent, and shall be denominated in an amount equal to the aggregate principal amount of, all of the Outstanding Securities of such series, (ii) shall be registered in the name of the Depository or its nominee,

 

 

  

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(iii) shall be delivered by the Trustee to the Depository or pursuant to the Depository�s written instruction or (if acceptable to the Trustee) held by the Trustee as custodian for the Depository, and (iv) shall bear a legend substantially to the following effect: �Except as otherwise provided in Section 2.11 of the Indenture, this Security may be transferred, in whole but not in part, only to another nominee of the Depository or to a successor Depository or to a nominee of such successor Depository�.

 

(b) Notwithstanding the provisions of Section 2.05, the Global Security of a series may be transferred, in whole but not in part and in the manner provided in Section 2.05, only to another nominee of the Depository for such series, or to a successor Depository for such series selected or approved by the Company or to a nominee of such successor Depository.

 

(c) If at any time the Depository for a series of Securities notifies the Company that it is unwilling or unable to continue as Depository for such series or if at any time the Depository for such series shall no longer be registered or in good standing under the Securities Exchange Act of 1934, as amended, or other applicable statute or regulation and a successor Depository for such series is not appointed by the Company within 90 days after the Company receives such notice or becomes aware of such condition, as the case may be, this Section 2.11 shall no longer be applicable to the Securities of such series and the Company will execute, and subject to Section 2.05, the Trustee will authenticate and deliver, Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Securities. In addition, the Company may at any time determine that the Securities of any series shall no longer be represented by a Global Security and that the provisions of this Section 2.11 shall no longer apply to the Securities of such series. In such event the Company will execute and subject to Section 2.05, the Trustee, upon receipt of an Officers� Certificate evidencing such determination by the Company, will authenticate and deliver Securities of such series in definitive registered form without coupons, in authorized denominations, and in an aggregate principal amount equal to the principal amount of the Global Security of such series in exchange for such Global Security. Upon the exchange of the Global Security for such Securities in definitive registered form without coupons, in authorized denominations, the Global Security shall be cancelled by the Trustee. Such Securities in definitive registered form issued in exchange for the Global Security pursuant to this Section 2.11(c) shall be registered in such names and in such authorized denominations as the Depository, pursuant to instructions from its direct or indirect participants or otherwise, shall instruct the Trustee. The Trustee shall deliver such Securities to the Depository for delivery to the persons in whose names such Securities are so registered.�

 

ARTICLE TWO

MISCELLANEOUS

 

Section 2.01 Effectiveness of Provisions. The provisions of this First Supplemental Indenture shall be effective only with respect to series of Securities issued after the date hereof.

 

 

  

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Section 2.02 Execution of Supplemental Indenture. This First Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Original Indenture and, as provided in the Original Indenture, this First Supplemental Indenture forms a part thereof.

 

Section 2.03 Conflict with Trust Indenture Act. If and to the extent that any provision hereof limits, qualifies or conflicts with the duties imposed by Sections 310 to 317, inclusive, of the Trust Indenture Act of 1939, as amended, such imposed duties shall control.

 

Section 2.04 Successors and Assigns. All covenants and agreements in this First Supplemental Indenture by the Company shall bind its successors and assigns, whether so expressed or not.

 

Section 2.05 Separability Clause. In case any one or more of the provisions contained in this First Supplemental Indenture, the Original Indenture or in the Securities of any series shall for any reason be held to be invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provisions of this First Supplemental Indenture, the Original Indenture or of such Securities, but this First Supplemental Indenture, the Original Indenture and such Securities shall be construed as if such invalid or illegal or unenforceable provision had never been contained herein or therein.

 

Section 2.06 Benefits of First Supplemental Indenture. Nothing in this First Supplemental Indenture or in the Original Indenture, express or implied, shall give to any person, other than the parties hereto and their successors hereunder and the Securityholders (to the extent specified herein or therein), any benefit or any legal or equitable right, remedy or claim under this First Supplemental Indenture.

 

Section 2.07 Governing Law. This First Supplemental Indenture shall be deemed to be a contract made under the laws of the State of New York, and for all purposes shall be construed in accordance with the laws of said State.

 

Section 2.08 Execution and Counterparts. This First Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original; but such counterparts shall together constitute but one and the same instrument.

 

 

  

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IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and their respective corporate seals to be hereunto affixed and attested, all as of the day and year first above written.

 

 

	 	GTE NORTH INCORPORATED	 
	 	 	 	 
	
 

	
By: 

	/s/ PETER K. PLAUT	 
	 	 	Vice President	 

 

Attest:

 

 

	
By: 

	/s/ J. WILMA ALY	 
	 	Assistant Secretary	 

 

 

	 	THE FIRST NATIONAL BANK OF CHICAGO	 
	 	as TRUSTEE	 
	 	 	 	 
	
 

	
By: 

	/s/ STEVEN M. WAGNER	 
	 	 	Title:  Vice President	 

 

Attest:

 

 

	
By: 

	/s/ T. MARSHALL	 
	Title: 	Assistant Secretary	 

 

 

 

-5-lglex10_120100805.htm

Exhibit 10.1

FIRST AMENDMENT TO AMENDED & RESTATED LOAN AGREEMENT

 

THIS FIRST AMENDMENT TO AMENDED & RESTATED LOAN AGREEMENT (this “Amendment”) is made and entered into as of June 30, 2010, by and among M-tron Industries, Inc., a Delaware corporation (“M-tron”), and Piezo Technology, Inc., a Florida corporation (“Piezo” and with M-tron each a “Borrower”
and together, “Borrowers”), and First National Bank of Omaha, a national banking association established at Omaha, Nebraska (“Bank”).

 

W I T N E S S E T H :

 

WHEREAS, Borrowers and Bank previously entered into that certain Amended & Restated Loan Agreement dated as of August 18, 2009 (the “Loan Agreement”); and

 

WHEREAS, the parties desire to amend the Loan Agreement as set forth in this Amendment.

 

NOW, THEREFORE, in consideration of the foregoing recitals and the mutual covenants herein contained and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1. Definitions.  All capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Loan Agreement.

 

2. Amendments to Loan Agreement.  The parties hereby agree that  the Loan Agreement is hereby amended as follows:

 

(a) Section 1.01 of the Loan Agreement is hereby amended by deleting the definition of “Borrowing Base” and replacing it with the following:

 

“Borrowing Base” means the lesser of:

 

    (a)           $4,000,000 less the amount of any letters of credit issued and outstanding for Borrowers’ account; or

 

    (b)           on the date reported, the aggregate of (i) 80% of Borrowers’ current Eligible Accounts, plus (ii) 50% of Borrowers’ Eligible Inventory.

 

(b) Section 1.01 of the Loan Agreement is hereby amended by adding the following after the last sentence in the definition of “Eligible Account”:

 

If the aggregate amount of all accounts owed by the account debtor thereon exceeds twenty percent (20%) of the aggregate amount of all accounts at such time, then all accounts owed by such account debtor in excess of such amount shall be deemed ineligible.

 

 

 

 
/2

 

(c) Section 1.01 of the Loan Agreement is hereby amended by deleting the defined term “Eligible Foreign Account”.

 

(d) Section 1.01 of the Loan Agreement is hereby amended by deleting the first sentence from the definition of “Eligible Inventory” and replacing it with the following:

 

“Eligible Inventory” means Borrowers’ inventory which is in good and merchantable condition, is new and not used, is not obsolete, discontinued or, in the opinion of Bank, is not otherwise unmerchantable, and is not slow moving inventory (slow moving inventory
is inventory which has not sold in 360 days after acquisition and is reserved fifty percent (50%) plus that which has not sold for 720 days and is reserved one hundred percent (100%)), in transit inventory, consigned goods, inventory or work in progress located outside of the United States or covered by and subject to a seller’s right to repurchase or any consensual or nonconsensual lien or security interest (including, without limitation, purchase money security interests) in favor of any party other than
Bank.

 

(e) Section 1.01 of the Loan Agreement is hereby amended by deleting the definition of “Fixed Charge Coverage Ratio” and replacing it with the following:

 

“Fixed Charge Coverage Ratio” means the ratio derived when comparing a rolling 12 month EBITDA, less unfinanced capital expenditures, dividends and taxes divided by annualized debt and interest payments by a Borrower on account of any Indebtedness of such Borrower,
plus any management fees paid to Guarantor.

 

(f) Section 1.01 of the Loan Agreement is hereby amended by deleting the definition of “Revolving Loan Termination Date” and replacing it with the following:

 

“Revolving Loan Termination Date” means the earliest to occur of the following: (a) June 30, 2011, (b) the date the Obligations are accelerated pursuant to this Agreement, or (c) the date Bank has received (i) notice in writing from a Borrower of such Borrower’s
election to terminate this Agreement; and (ii) indefeasible payment in full of the Obligations.

 

(g) Section 7.11 of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

Section 7.11 Payments to Guarantor. Make any payments of principal or interest to Guarantor on account of any Subordinated Debt or management fees owed by a Borrower to Guarantor; provided, however, so long as no Event of Default (or any condition, occurrence or event which, after
a required notice, if any, or lapse of time, or both, would constitute an Event of Default) shall have occurred, Borrowers may, (i) subject to Section 7.10, pay reasonable management fees to Guarantor, consistent with past practice, (ii) make interest payments on Subordinated Debt payable to Guarantor, provided such payments do not exceed five percent (5%) of the total obligation payable to Guarantor and (iii) make a principal payment to Guarantor on account of the Subordinated Debt payable to Guarantor
in the amount of $680,000.00.

 

 

 

 
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(h) Section 8.04 of the Loan Agreement is hereby amended and restated in its entirety as follows:

 

Section 8.04.  Fixed Charge Coverage Ratio.  Borrowers will maintain a minimum consolidated Fixed Charge Coverage Ratio of 1.25 to 1, measured at the end of each calendar quarter.

 

3. Representations and Warranties.  Borrowers hereby represent and warrant to Bank as follows:

 

(a) The representations and warranties contained in the Loan Agreement and the other Loan Documents are true and correct on and as of the date hereof as though made on and as of this date, except to the extent that such representations
and warranties relate solely to an earlier date;

 

(b) There is no Event of Default and no event has occurred, which constitutes an Event of Default or would constitute an Event of Default but for the requirement that notice be given or time elapsed or both;

 

(c) The execution, delivery and performance by Borrowers of this Amendment and all other agreements and documents required hereunder have been duly authorized by all necessary action and do not and will not: (i) result in any breach
of or constitute a default under any indenture, loan or credit agreement or any other agreement, lease or instrument to which a Borrower is a party or by which it or its properties may be bound or affected; or (ii) result in, or require, for the benefit of any person or entity other than Bank, the creation or imposition of any mortgage, deed of trust, pledge, lien, security interest or other charge or encumbrance of any nature upon or with respect to any of the properties now owned or hereafter acquired by either
Borrower; and

 

(d) No authorization, approval or other action by and notice to or filing with any governmental authority or regulatory body or any person or entity is required for the execution, delivery and performance by Borrowers of this Amendment.

 

4. Conditions Precedent As conditions precedent to the enforceability of this Amendment, Bank shall have received from M-tron, Piezo or Guarantor, as the case may be, all
of the following, each dated (unless otherwise indicated) such day, in form and substance satisfactory to Bank:

 

(a) This Amendment executed by Borrowers;

 

(b) The Amended and Restated Revolving Note executed by Borrowers, which shall be given in exchange and substitution for the Revolving Note previously executed by Borrower in favor of Bank;

 

(c) The Reaffirmation of Guaranty, executed by Guarantor in favor of Bank in connection with Guaranty;

 

(d) Bank shall have received evidence from Borrower, acceptable to Bank in Bank’s discretion, that Borrower is maintaining general property and casualty insurance, general liability insurance, business interruption insurance (with
extra expense coverage) as required pursuant to the Loan Documents; and

 

(e) Borrowers shall have paid all out-of-pocket costs and expenses, including without limitation, attorneys’ fees and expenses, incurred by Bank in connection this Amendment and the Loan Documents and all related documentation,
recording or filing fees.

 

5. No Waiver.  This Amendment is not intended to supercede or amend the Loan Agreement or any documents executed in connection therewith except as specifically
set forth herein.  Nothing contained herein is intended to reduce, restrict or otherwise affect any warranties, representations, covenants or other agreements made by Borrowers or waive any existing Events of Default, if any, under or pursuant to the Loan Documents.  All of the covenants and obligations of Borrowers under the Loan Documents are hereby acknowledged, ratified and affirmed by Borrowers, and Borrower specifically acknowledges and agrees that all Collateral pledged to Bank secures
the Notes.

 

6. Credit Agreement in Writing.  A CREDIT AGREEMENT MUST BE IN WRITING TO BE ENFORCEABLE UNDER CERTAIN STATE LAWS.  TO PROTECT YOU AND US FROM ANY MISUNDERSTANDINGS
OR DISAPPOINTMENTS, ANY CONTRACT, PROMISE, UNDERTAKING OR OFFER TO FOREBEAR REPAYMENT OF MONEY OR TO MAKE ANY OTHER FINANCIAL ACCOMMODATION IN CONNECTION WITH THIS LOAN OF MONEY OR GRANT OR EXTENSION OF CREDIT, OR ANY AMENDMENT OF, CANCELLATION OF, WAIVER OF, OR SUBSTITUTION FOR ANY OR ALL OF THE TERMS OR PROVISIONS OF ANY INSTRUMENT OR DOCUMENT EXECUTED IN CONNECTION WITH THIS LOAN OF MONEY OR GRANT OR EXTENSION OF CREDIT, MUST BE IN WRITING TO BE EFFECTIVE.

 

7. Counterparts.  This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument.  An electronic transmission or facsimile of this Amendment shall be deemed an original and shall be admissible as evidence of the document and the signer’s execution.

 

[The Remainder of this Page Intentionally Left Blank; Signature Page to Follow]

  

  

  

/4

 

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

 

M-tron Industries, Inc., a Delaware corporation, Borrower

By: /s/ R. LaDuane Clifton                                                                                                                             

Name:  R. LaDuane Clifton                                                   

Title: Chief Accounting Officer                                           

Piezo Technology, Inc., a Florida corporation, Borrower

By:  /s/ R. LaDuane Clifton                                                  

Name: R. LaDuane Clifton                                                    

Title: Chief Accounting Officer                                           

First National Bank of Omaha, a national banking association, Bank

By: /s/Mark McMillan                                                          

Name: Mark McMillan                                                          

Title: Vice President

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