Document:

Exhibit 10.10

 

AMENDMENT TO

CREDIT AGREEMENT AND CONSENT

 

This Amendment to Credit Agreement and Consent (“Amendment”), dated as of October 20, 2014, is made by and among BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, “Administrative Agent”), the Lenders (as defined in the Credit Agreement), and ALLIED MOTION TECHNOLOGIES INC. and ALLIED MOTION TECHNOLOGIES B.V. (each a “Borrower” and collectively, the “Borrowers”).

 

Statement of the Premises

 

The Administrative Agent, the Lenders and the Borrowers have previously entered into the Credit Agreement dated as of October 18, 2013 (as amended, the “Credit Agreement”).  All capitalized terms not otherwise defined in this Amendment have the meanings given them in the Credit Agreement.

 

The Borrowers have advised the Administrative Agent that one or more of the Borrowers has entered into a letter of intent to acquire all of the assets or equity interests of a Swedish entity for a purchase price of approximately Three Million Dollars (USD 3,000,000) (the “Acquisition”).  Borrowers have requested the consent of the Administrative Agent and the Lenders to the Acquisition.

 

The Borrowers have also requested that the Administrative Agent and the Lenders agree to amend certain financial covenants set forth in the Credit Agreement and to amend the Credit Agreement to permit certain future acquisitions and to permit the Borrower’s Subsidiaries Allied Motion (Changzhou) Motors Co. Ltd. and/or Allied Motion (Changzhou) Trading Co., Ltd. to enter into certain financing with Bank of America, N.A., Shanghai Branch.

 

The Administrative Agent and the Lenders desire to consent to the Acquisition, and the Administrative Agent, the Lenders and the Borrowers have agreed to amend certain provisions of the Credit Agreement, each on the terms and conditions set forth herein.

 

Statement of Consideration

 

Accordingly, in consideration of the premises and under the authority of Section 5-1103 of the New York General Obligations Law, the Administrative Agent, the Borrowers and the Lenders agree as follows:

 

Agreement

 

1.                                      Defined Terms.  Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement.

 

2.                                      Consent.

 

a)                                     Effective upon the satisfaction of all conditions specified in Section 2(b) and Section 5 hereof, the Administrative Agent and the Lenders hereby consent to the Acquisition (“Consent”), as follows:

 

 

(i)                                     Limitation on Consent.  The foregoing consent is only applicable and shall only be effective in the specific instance and for the specific purpose for which made, is expressly limited to the facts and circumstances referred to herein, and shall not operate as (i) a waiver of, or consent to noncompliance with any other provision of the Credit Agreement or any other Loan Document, (ii) a waiver of any right, power or remedy of the Administrative Agent or any Lender under the Credit Agreement or any Loan Document, or (iii) a waiver of or consent to any Event of Default or Default under the Credit Agreement or any Loan Document.

 

(ii)                                  Acquisition Basket.  The Administrative Agent, the Borrowers and the Lenders acknowledge that the aggregate consideration paid for the Acquisition shall not reduce the $10,000,000 maximum aggregate consideration which the Borrowers may pay for acquisitions during the term of the Credit Agreement permitted under Section 7.02(e)(v) of the Credit Agreement, as amended by this Amendment.

 

b)                                     The effectiveness of this Consent shall be conditioned upon the satisfaction of the following conditions precedent:

 

(i)                                     Acquisition Documents.  The Borrowers shall have delivered to the Administrative Agent a true, complete and correct copy of the asset or stock purchase agreement executed in connection with the Acquisition (including the Exhibits and Schedules thereto) and any other documents relating to the Acquisition as the Administrative Agent shall request, which requested documents shall be in form and substance satisfactory to the Administrative Agent.

 

(ii)                                  No Events of Default.  There is, as of the date of consummation of the Acquisition, no event or condition which constitutes an Event of Default under any of the Loan Documents or which, with notice and/or the passage of time, would constitute an Event of Default.

 

(iii)                               Representations and Warranties.  The representations and warranties of each Borrower set forth in Article 5 of the Credit Agreement are true and correct on and as of the date of consummation of the Acquisition with the same force and effect as if made on and as of such date.

 

3.                                      Amendments.  Effective upon the satisfaction of all conditions specified in Section 5 hereof, the Credit Agreement is hereby amended as follows:

 

a)                                     Section 7.02 of the Credit Agreement is hereby amended by adding the following as the new subsection (e) thereof:

 

“(e)                            Any acquisition by Borrowers and/or any of their Subsidiaries of all or substantially all of the assets or Equity Interests of any other Person (the “Target”) in the same line of business, or assets constituting all or substantially all of a division or product line of a Target in the same line of business, so long as the Borrowers deliver to the Administrative Agent and the Lenders a certificate in form and content satisfactory to the Administrative Agent (“Acquisition Certificate”) indicating that (i)

 

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immediately prior to contracting for or consummating such acquisition there does not exist, and there does not occur as a direct or indirect result of the consummation of such acquisition, any Event of Default or Default, (ii) each of the Borrowers is in compliance with the financial covenants set forth in Section 7.10 of this Agreement on a pro-forma basis as of the last fiscal quarter of the Borrowers most recently ended for which financial statements are then available or required to be delivered under Section 6.01 of this Agreement assuming the acquisition had been consummated on the first day of the Reference Period ending on the last day of such fiscal quarter, and the Borrowers demonstrate based on pro-forma projections covering the four fiscal quarters of the Borrowers following the date of such Acquisition Certificate that Borrowers will be in compliance with the financial covenants set forth in Section 7.10 of this Agreement upon and after consummation of such acquisition, (iii) such acquisition is being completed on a non-hostile basis without opposition from the board of directors, managers or equity owners of the Target, (iv) with respect to any assets or Equity Interests of any Person acquired directly or indirectly pursuant to any such acquisition, there are no liens thereon other than Permitted Liens, and (v) the aggregate consideration paid by Borrowers and/or any of their Subsidiaries in connection with all such acquisitions during the term of this Agreement does not exceed $10,000,000.00, unless specifically consented to by the Required Lenders.”

 

b)                                     Section 7.03(i) of the Credit Agreement is hereby deleted and replaced with the following:

 

“(i)                               Indebtedness of Allied Motion (Changzhou) Motors Co. Ltd. and/or Allied Motion (Changzhou) Trading Co., Ltd. to (A) JPMorgan Chase Bank (China) Company Limited Shanghai Branch in an amount not to exceed 9,500,000 Chinese Renminbi or (B) Bank of American, N.A. (Shanghai Branch) (the “Allied China Line”).

 

c)                                      Section 7.10(b) of the Credit Agreement is hereby deleted in its entirety and replaced with the following:

 

“(b)                           Total Leverage Ratio.  Permit the Total Leverage Ratio, as of the end of any fiscal quarter to be greater than (i) for the fiscal quarters ending on or about December 31, 2013, March 31, 2014, June 30, 2014 and September 30, 2014, 4.0:1.0, (ii) for the fiscal quarter ending on or about December 31, 2014, March 31, 2015, June 30, 2015 and September 30, 2015, 3.5:1.0, (iii) for the fiscal quarters ending on or about December 31, 2015, March 31, 2016, June 30, 2016 and September 30, 2016, 3.0:1.0 or (iv) for each fiscal quarter thereafter, 2.5:1.0.”

 

4.                                      Representations and Warranties.  Each Borrower makes the following representations and warranties to the Administrative Agent and the Lenders which shall be

 

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deemed to be continuing representations and warranties so long as any Obligations, including indebtedness of either Borrower to Administrative Agent or the Lenders arising under the Credit Agreement or any Loan Documents, remain unpaid:

 

a)                                     Authorization.  Each Borrower has full power and authority to execute, deliver and perform this Amendment,  which has been duly authorized by all proper and necessary action.  The execution and delivery of this Amendment by each Borrower will not violate the provisions of, or cause a default under, either Borrower’s Organizational Documents or any agreement to which such Borrower is a party or by which it or its assets are bound.

 

b)                                     Binding Effect.  This Amendment has been duly executed and delivered by each Borrower and constitutes the legal, valid and binding obligation of each Borrower enforceable in accordance with its terms, except as enforceability may be limited by applicable Debtor Relief Laws and laws affecting Creditor’s rights generally.

 

c)                                      Consents; Governmental Approvals.  No consent, approval or authorization of, or registration, declaration or filing with, any governmental body or authority or any other party is required in connection with the valid execution, delivery or performance of this Amendment or any other document executed and delivered herewith or in connection with any other transactions contemplated hereby.

 

d)                                     No Events of Default.  There is, on the date hereof, no event or condition which constitutes an Event of Default under any of the Loan Documents or which, with notice and/or the passage of time, would constitute an Event of Default.

 

e)                                      No Material Misstatements.  Neither this Amendment nor any document delivered to the Administrative Agent or the Lenders by or on behalf of either Borrower to induce the Administrative Agent and the Lenders to enter into this Amendment or otherwise in connection with this Amendment contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements herein or therein not misleading in light of the circumstances in which they were made.

 

f)                                       Credit Agreement.  The representations and warranties of each Borrower set forth in Article 5 of the Credit Agreement are true and correct on and as of the date hereof with the same force and effect as if made on and as of such date, subject, however to the exceptions set forth in Section 4.02(a) of the Credit Agreement.

 

5.                                      Conditions of Effectiveness. This Amendment shall become effective when and only when the Administrative Agent shall have received counterparts of this Amendment executed by the Borrowers, the Administrative Agent and the Lenders and the following conditions shall have been fulfilled:

 

a)                                     Authorization.  Each Borrower shall have taken appropriate action to authorize the execution and delivery of this Amendment, and the taking of all action called for by this Amendment.

 

b)                                     No Default.  No Event of Default and no event which with notice or lapse of time or both would become such an Event of Default shall have occurred and be continuing.

 

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c)                                      Representations and Warranties.  The representations and warranties of each Borrower set forth in Article 5 of the Credit Agreement shall be true on and as of the date hereof with the same force and effect as if made on and as of such date, subject, however to the exceptions set forth in Section 4.02(a) of the Credit Agreement.

 

d)                                     Senior Subordinated Note Purchase Agreement.  The Borrowers shall have entered into an amendment to the Senior Subordinated Note Purchase Agreement in form and substance satisfactory to the Administrative Agent, pursuant to which the Senior Subordinated Note Holders agree to modify the total leverage ratio set forth in the Senior Subordinated Note Purchase Agreement so that such ratio remains not less than 0.5% higher than the maximum Total Leverage Ratio set forth in the Agreement.

 

6.                                      Reference to and Effect on Loan Documents.

 

a)                                     Upon the effectiveness hereof, each reference in the Credit Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import, and each reference in the Loan Documents to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended by this Amendment.

 

b)                                     The Credit Agreement, as amended by this Amendment, represents the entire understanding and agreement between the parties hereto with respect to the subject matter hereof.  This Amendment supersedes all prior negotiations and any course of dealing between the parties with respect to the subject matter hereof.  This Amendment shall be binding upon each Borrower and its successors and assigns, and shall inure to the benefit of, and be enforceable by, the Administrative Agent, the Lenders and each of their successors and assigns.  The Credit Agreement, as amended hereby, is in full force and effect and, as so amended, is hereby ratified and reaffirmed in its entirety.  Each Borrower acknowledges and agrees that the Credit Agreement (as amended by this Amendment) and all other Loan Documents to which such Borrower is a party are in full force and effect, that such Borrower’s obligations thereunder and under this Amendment are its legal valid and binding obligations enforceable against it in accordance with the terms thereof and hereof, and that such Borrower has no defense, whether legal or equitable, setoff or counterclaim to the payment and performance of such obligations.

 

c)                                      The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Administrative Agent or the Lenders under the Credit Agreement, nor constitute a waiver of any provision of the Credit Agreement.

 

7.                                      Costs and Expenses.  Borrowers agree to pay on demand all costs and expenses of the Administrative Agent and the Lenders in connection with the preparation, execution and delivery of this Amendment, including the fees and out-of-pocket expenses of counsel for the Administrative Agent and the Lenders.

 

8.                                      Governing Law.  This Amendment shall be governed and construed in accordance with the laws of the State of New York without regard to any conflicts-of-laws rules which would require the application of the laws of any other jurisdiction.

 

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9.                                      Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.

 

10.                               Execution in Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which when taken together shall constitute but one and the same document.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective representatives thereunto duly authorized, as of the date first above written.

 

	
 
    	
ALLIED   MOTION TECHNOLOGIES INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROBERT P. MAIDA
    
	
 
    	
Name:
    	
Robert   P. Maida
    
	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
ALLIED   MOTION TECHNOLOGIES B.V.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   HARRY CLOOS
    
	
 
    	
Name:
    	
Harry   Cloos
    
	
 
    	
Title:
    	
Director
    

 

[Signature Page to Amendment to Credit Agreement]

 

 

	
 
    	
ADMINISTRATIVE AGENT:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A., AS ADMINISTRATIVE AGENT
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Colleen M. O’Brien
    
	
 
    	
Name:
    	
Colleen   M. O’Brien
    
	
 
    	
Title:
    	
Sr.   Vice President
    

 

[Signature Page to Amendment to Credit Agreement]

 

 

	
 
    	
LENDERS:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BANK   OF AMERICA, N.A., AS A LENDER, L/C ISSUER
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   COLLEEN M. O’BRIEN
    
	
 
    	
Name:
    	
Colleen   M. O’Brien
    
	
 
    	
Title:
    	
Sr.   Vice President
    

 

[Signature Page to Amendment to Credit Agreement]

 

 

	
 
    	
MANUFACTURERS   AND TRADERS TRUST COMPANY
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROSS COMARATIA
    
	
 
    	
Name:
    	
Ross   Comaratia
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Amendment to Credit Agreement]

 

 

	
 
    	
HSBC   BANK USA, NATIONAL ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   SHAUN MALLEN
    
	
 
    	
Name:
    	
Shaun   Mallen
    
	
 
    	
Title:
    	
Vice   President
    

 

[Signature Page to Amendment to Credit Agreement]Exhibit 10.12

 

EXECUTION COPY

 

October 20, 2014

 

Allied Motion Technologies Inc.

495 Commerce Drive Suite 3

Amherst, NY  14228

 

Re:                             Amendment No. 1 to Note Agreement

 

Ladies and Gentlemen:

 

Reference is made to that certain Note Agreement, dated as of October 18, 2013 (the “Note Agreement”), among Allied Motion Technologies Inc., a Colorado corporation (the “Company”), and the purchasers named in the Purchaser Schedule attached thereto.  Capitalized terms used and not otherwise defined herein shall have the meanings assigned to such terms in the Note Agreement.

 

The Company has requested that the Required Holder(s) agree to modify the Note Agreement as set forth below.  Subject to the terms and conditions hereof, and provided that the Company agrees to the modifications of the Note Agreement set forth below, the Required Holder(s) are willing to agree to the Company’s requests.

 

Accordingly, and in accordance with the provisions of paragraph 12C of the Note Agreement, the parties hereto agree as follows:

 

SECTION 1.                         Amendments.  Effective on the Effective Date (as defined in Section 3 hereof), the Note Agreement is amended as follows:

 

1.1.                            Amendment to Paragraph 6B.  Paragraph 6B of the Note Agreement is amended by (a) deleting the word “and” at the end of clause (iii) thereof, (b) replacing the period at the end of clause (iv) thereof with “; and” and (c) adding the following new clause (v) in proper sequence:

 

“(v)                           any acquisition by the Company and/or any of its Subsidiaries of all or substantially all of the assets or Equity Interests of any other Person (a “Subject Company”) in the same line of business, or assets constituting all or substantially all of a division or product line of a Subject Company in the same line of business, so long as the Company delivers to each holder of a Subordinated Note a certificate in form and content satisfactory to the Required Holder(s) (an “Acquisition Certificate”) indicating that (a) immediately prior to contracting for or consummating such acquisition there does not exist, and there does not occur as a direct or indirect result of the consummation of such acquisition, any Event of Default or Default, (b) the Company is in compliance with the financial covenants set forth in paragraph 6I hereof on a pro forma basis as of the last fiscal quarter of the Company most recently ended for which financial statements are

 

 

then available or required to be delivered under paragraph 5A hereof assuming such acquisition had been consummated on the first day of the Reference Period ending on the last day of such fiscal quarter, and the Company demonstrates based on pro forma projections covering the four fiscal quarters of the Company following the date of such Acquisition Certificate that the Company will be in compliance with the financial covenants set forth paragraph 6I hereof upon and after consummation of such acquisition, (c) such acquisition is being completed on a non-hostile basis without opposition from the board of directors, managers or equity owners of such Subject Company, (d) with respect to any assets or Equity Interests of any Person acquired directly or indirectly pursuant to such acquisition, there are no liens thereon other than Liens permitted by paragraph 6A, and (e) the aggregate consideration paid by the Company and/or any of its Subsidiaries in connection with all such acquisitions during the term of this Agreement does not exceed $10,000,000, unless specifically consented to in writing by the Required Holder(s).”

 

1.2                               Amendment to Paragraph 6C(ix).  Paragraph 6C(ix) of the Note Agreement is amended and restated in its entirety to read as follows:

 

“(ix)                        Indebtedness of Allied Motion (Changzhou) Motors Co., Ltd. and/or Allied Motion (Changzhou) Trading Co., Ltd. to JPMorgan Chase Bank (China) Company Limited Shanghai Branch and/or Bank of America, N.A. (Shanghai Branch) in an aggregate amount not to exceed 13,500,000 Chinese Renminbi.”

 

1.3                               Amendment to Paragraph 6I(ii).  Paragraph 6I(ii) of the Note Agreement is amended and restated in its entirety to read as follows:

 

“(ii)                            The Company covenants that it will not permit the Total Leverage Ratio, as of the end of any fiscal quarter, to be greater than (a) for the fiscal quarters ending on or about December 31, 2013, March 31, 2014, June 30, 2014 and September 30, 2014, 4.50:1.0, (b) for the fiscal quarter ending on or about December 31, 2014, March 31, 2015, June 30, 2015 and September 30, 2015, 4.00:1.0, (c) for the fiscal quarters ending on or about December 31, 2015, March 31, 2016, June 30, 2016 and September 30, 2016, 3.50:1.0 or (d) for each fiscal quarter thereafter, 3.00:1.0.”

 

1.4                               Amendment to Paragraph 11A.  The definition of “Reinvestment Yield” set forth in paragraph 11A of the Note Agreement is amended by replacing the first reference to “yields” in clause (i) thereof with “ask-side yields”.

 

SECTION 2.                         Consent.  The Company has advised the holders of the Subordinated Notes that the Company and/or one or more of the Subsidiary Guarantors has entered  into a letter of intent to acquire all of the assets or equity interests of a Swedish entity for a purchase price of approximately Three Million Dollars (USD 3,000,000) (the “Swedish Acquisition”).  Effective upon the satisfaction of all conditions specified in this Section 2 and in Section 3, the Required Holder(s) hereby consent to the Swedish Acquisition (this “Consent”), and acknowledge that the aggregate consideration paid for the Swedish Acquisition shall not reduce the $10,000,000 maximum aggregate consideration which the Company and its Subsidiaries may pay for acquisitions during the term of the Note Agreement permitted under paragraph 6B(v)(e)

 

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of the Note Agreement, as amended by this Amendment.  The effectiveness of this Consent shall be conditioned upon the satisfaction of the following conditions precedent:

 

(a)                                 Acquisition Documents.  The Company shall have delivered to the holders of the Subordinated Notes a true, complete and correct copy of the asset or stock purchase agreement executed in connection with the Swedish Acquisition (including the Exhibits and Schedules thereto) and any other documents relating to the Swedish Acquisition as the Required Holder(s) shall request, which requested documents shall be in form and substance satisfactory to the Required Holder(s).

 

(b)                                 No Events of Default.  There is, as of the date of consummation of the Swedish Acquisition, no event or condition which constitutes an Event of Default under any of the Transaction Documents or which, with notice and/or the passage of time, would constitute an Event of Default.

 

(c)                                  Representations and Warranties.  The representations and warranties set forth in paragraph 8 of the Note Agreement are true and correct on and as of the date of consummation of the Swedish Acquisition with the same force and effect as if made on and as of such date.

 

SECTION 3.                         Conditions Precedent.  This letter shall become effective as of the date (the “Effective Date”) upon which each of the following conditions is satisfied:

 

3.1                               Documents.  Each holder of a Subordinated Note shall have received original counterparts or, if satisfactory to such holder, certified or other copies of all of the following, each duly executed and delivered by the party or parties thereto, in form and substance satisfactory to such holder, dated the date hereof unless otherwise indicated, and on such date in full force and effect:

 

(a)                                 a copy of this letter, duly executed by the Company and the Required Holder(s);

 

(b)                                 a copy of an executed amendment to the Credit Agreement which amends the Credit Agreement consistent with the amendments set forth in Section 1 hereof and includes a consent consistent with the Consent; and

 

(c)                                  a copy of the attached Guarantor Acknowledgment and Agreement, duly executed by the Subsidiary Guarantors.

 

3.2.                            Fees and Expenses.  The Company shall have paid the fees and expenses of special counsel to the holders of the Subordinated Notes that have been presented to the Company as of the Effective Date.

 

3.3.                            Representations and Warranties.  The representations and warranties of the Company in Section 4 hereof shall be true and correct on the Effective Date.

 

3.4.                            Proceedings.  All corporate and other proceedings taken or to be taken in connection with the transactions contemplated hereby and all documents incident thereto shall be

 

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satisfactory in substance and form to counsel to the holders of the Subordinated Notes, and each holder of the Subordinated Notes shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request.

 

SECTION 4.                         Representations and Warranties.  To induce the holders of the Subordinated Notes to execute and deliver this letter, the Company hereby represents, warrants and covenants that (1) the execution and delivery of this letter have been duly authorized by all necessary corporate action on behalf of the Company and each Subsidiary Guarantor and this letter has been executed and delivered by a duly authorized officer of the Company and each Subsidiary Guarantor, and all necessary or required consents to this letter have been obtained and are in full force and effect, (2) this letter constitutes the legal, valid and binding obligation of the Company and each Subsidiary Guarantor enforceable in accordance with its terms, except as enforceability may be limited by (i) bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law), (3) after giving effect to Sections 1 and 2 hereof, the representations and warranties contained in Paragraph 8 of the Note Agreement are true on and as of the Effective Date, (4) after giving effect to Sections 1 and 2 hereof, there shall not exist on the Effective Date any Event of Default or Default and (5) neither the Company nor any Subsidiary Guarantor has paid or agreed to pay, and neither the Company nor any Subsidiary Guarantor will pay or agree to pay, any fees or other consideration to any Person in connection with the amendment referenced in Section 3.1(b) hereof, other than out-of-pocket fees and expenses of legal counsel to the lenders under the Credit Agreement and out-of-pocket fees and expenses of legal counsel to the Company and the Subsidiary Guarantors.

 

SECTION 5.                         Reference to and Effect on Note Agreement and other Transaction Documents.  Upon the effectiveness of the amendments in this letter, each reference to the Note Agreement in any other document, instrument or agreement shall mean and be a reference to the Note Agreement as modified by this letter.  Except as specifically set forth in Sections 1 and 2 of this letter, the Note Agreement shall remain in full force and effect and is hereby ratified and confirmed in all respects.  The Consent is only applicable and shall only be effective in the specific instance and for the specific purpose for which made and is expressly limited to the facts and circumstances referred to herein.  Except as specifically set forth in Sections 1 and 2 of this letter, the execution, delivery and effectiveness of this letter shall not (a) amend the Note Agreement, any Subordinated Note or any other Transaction Document, (b) operate as a waiver of any right, power or remedy of the holder of any Subordinated Note, or (c) constitute a waiver of, or consent to any departure from, any provision of the Note Agreement, any Subordinated Note or any other Transaction Document at any time.  The Company acknowledges and agrees that it has no defense, whether legal or equitable, setoff or counterclaim to the payment and performance of its obligations under the Note Agreement or any other Transaction Document.  The execution, delivery and effectiveness of this letter shall not be construed as a course of dealing or other implication that the holders of Subordinated Notes have agreed to or are prepared to grant any amendment, waiver or consent under the Note Agreement or any other Transaction Document in the future, whether or not under similar circumstances.

 

SECTION 6.                         Expenses.  The Company hereby confirms its obligations under the Note Agreement, whether or not the transactions hereby contemplated are consummated, to pay,

 

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promptly after request by any holder of a Subordinated Note, all reasonable out-of-pocket costs and expenses, including attorneys’ fees and expenses, incurred by the holders of the Subordinated Notes in connection with this letter or the transactions contemplated hereby, in enforcing any rights under this letter, or in responding to any subpoena or other legal process or informal investigative demand issued in connection with this letter or the transactions contemplated hereby.  The obligations of the Company under this Section 5 shall survive transfer by any holder of any Subordinated Note and payment of any Subordinated Note.

 

SECTION 7.                         Governing Law.  THIS LETTER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK (EXCLUDING ANY CONFLICTS OF LAW RULES WHICH WOULD OTHERWISE CAUSE THIS AGREEMENT TO BE CONSTRUED OR ENFORCED IN ACCORDANCE WITH, OR THE RIGHTS OF THE PARTIES TO BE GOVERNED BY, THE LAWS OF ANY OTHER JURISDICTION).

 

SECTION 8.                         Counterparts; Facsimile Signature Pages; Section Titles.  This letter may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute but one and the same instrument.  Delivery of an executed counterpart of a signature page to this letter by facsimile or electronic transmission shall be effective as delivery of a manually executed counterpart of this letter.  The section titles contained in this letter are and shall be without substance, meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto.

 

[signature pages follow]

 

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Very truly yours,
    
	
 
    	
 
    
	
 
    	
PRUDENTIAL CAPITAL PARTNERS IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Lake Street Partners IV, L.P. (its General   Partner)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen F. Szejner
    
	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PRUDENTIAL CAPITAL PARTNERS
    
	
 
    	
MANAGEMENT FUND IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Market Street Holdings IV, LLC (its
    
	
 
    	
 
    	
General Partner)
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Prudential Investment Management, Inc. (its
    
	
 
    	
 
    	
Managing Member)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen F. Szejner
    
	
 
    	
 
    	
Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
PRUDENTIAL CAPITAL PARTNERS
    
	
 
    	
(PARALLEL FUND) IV, L.P.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
Lake Street Partners IV, L.P. (its General
    
	
 
    	
 
    	
Partner)
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Stephen F. Szejner
    
	
 
    	
 
    	
Vice President
    

 

Allied Motion Technologies Inc. - Amendment No. 1

 

 

	
Agreed and accepted:
    	
 
    
	
 
    	
 
    
	
ALLIED   MOTION TECHNOLOGIES INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ ROBERT P. MAIDA
    	
 
    
	
Name:
    	
Robert P. Maida
    	
 
    
	
Title:
    	
Chief Financial Officer
    	
 
    

 

Allied Motion Technologies Inc. - Amendment No. 1

 

 

GUARANTOR ACKNOWLEDGMENT AND AGREEMENT

 

The undersigned consent and agree to and acknowledge the terms of the foregoing Amendment No. 1 to Note Agreement dated as of October 20, 2014 (the “Amendment”).  The undersigned further agree that the obligations of the undersigned pursuant to the Guaranty Agreement dated as of October 18, 2013 (the “Subsidiary Guaranty”) executed by the undersigned are hereby ratified and shall remain in full force and effect and be unaffected hereby.

 

Each of the undersigned acknowledges and agrees that it has no defense, whether legal or equitable, setoff or counterclaim to the payment and performance of its obligations under the Subsidiary Guaranty.

 

	
 
    	
ALLIED   MOTION CONTROL CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROBERT P. MAIDA
    
	
 
    	
Name:
    	
Robert   P. Maida
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
EMOTEQ   CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROBERT P. MAIDA
    
	
 
    	
Name:
    	
Robert   P. Maida
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
MOTOR   PRODUCTS CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROBERT P. MAIDA
    
	
 
    	
Name:
    	
Robert   P. Maida
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AMOT   I, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROBERT P. MAIDA
    
	
 
    	
Name:
    	
Robert   P. Maida
    
	
 
    	
Title:
    	
Vice   President
    

 

 

	
 
    	
AMOT   II, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROBERT P. MAIDA
    
	
 
    	
Name:
    	
Robert   P. Maida
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
AMOT   III, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROBERT P. MAIDA
    
	
 
    	
Name:
    	
Robert   P. Maida
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
STATURE   ELECTRIC, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROBERT P. MAIDA
    
	
 
    	
Name:   
    	
Robert   P. Maida
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
GLOBE   MOTORS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   ROBERT P. MAIDA
    
	
 
    	
Name:
    	
Robert   P. Maida
    
	
 
    	
Title:
    	
Vice   President
    

 

9

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