Document:

EXHIBIT 10.1

 

AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT
AGREEMENT

 

This
AMENDMENT NO. 1 TO AMENDED AND RESTATED CREDIT AGREEMENT dated as of November 5, 2021 (the “Amendment”),
between Pro-Dex, Inc., a Colorado corporation (the “Borrower”), and Minnesota Bank & Trust, a Minnesota
state banking corporation (the “Lender”).

 

RECITALS:

 

A.       The
Borrower and the Lender are parties to that certain Amended and Restated Credit Agreement dated as of November 6, 2020 (the “Original
Agreement”).

 

B.       The
Borrower has requested that the Lender (i) amend the Original Agreement to extend the stated Revolving Credit Termination Date from November
5, 2021 to November 5, 2023, and (ii) reduce the interest rate on the Revolving Credit Note.

C.       Subject
to the terms and conditions of this Amendment, the Lender will agree to the foregoing request of the Borrower.

 

NOW,
THEREFORE, the parties agree as follows:

 

1.                  
Defined Terms. All capitalized terms used in this Amendment shall, except where the
context otherwise requires, have the meanings set forth in the Original Agreement as amended hereby.

 

2.                  
Amendment. The Original Agreement is hereby amended as follows:

 

(a)                
The definition of the term “Revolving Credit Termination Date” defined in Section
1.01 of the Original Agreement is hereby amended in its entirety to read as follows:

 

“‘Revolving Credit
Termination Date’ means the earliest to occur of (a) November 5, 2023, (b) the date the Revolving Credit Commitment is reduced
to zero pursuant to Section 2.04, and (c) the termination of the Revolving Credit Commitment pursuant to Section 8.02.”

 

(b)               
The Lender’s address for notices appearing in Section 9.10(a)(ii) is hereby amended to read
as follows:

“Minnesota Bank & Trust

9800 Bren Road East, Suite 200

Minnetonka, MN 55343

Attention: Dianne Wegscheid, SVP/Commercial
Team Lead”

 

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3.                  
Conditions to Effectiveness. This Amendment shall become effective on the date (the
“Effective Date”) when, and only when, the Lender shall have received:

 

(a)                
this Amendment, duly executed by the Borrower;

 

(b)               
an Amended and Restated Revolving Credit Note (the “A&R Revolving Credit Note”),
in the form provided by Lender, duly executed by Borrower;

 

(c)                
evidence that the Borrower is in good standing in the States of California and Colorado; and 

 

(d)               
such other documents as the Lender may reasonably request.

4.                  
Representations and Warranties. To induce the Lender to enter into this Amendment,
the Borrower represents and warrants to the Lender as follows:

 

(a)                
The execution, delivery and performance by the Borrower of this Amendment, the A&R Revolving
Credit Note, and any other Loan Document to which the Borrower is a party have been duly authorized by all necessary corporate action,
do not require any approval or consent of, or any registration, qualification or filing with, any government agency or authority or any
approval or consent of any other person (including, without limitation, any shareholder), do not and will not conflict with, result in
any violation of or constitute any default under, any provision of the Borrower’s articles of incorporation or bylaws, any agreement
binding on or applicable to the Borrower or any of its property, or any law or governmental regulation or court decree or order, binding
upon or applicable to the Borrower or of any of its property and will not result in the creation or imposition of any security interest
or other lien or encumbrance in or on any of its property pursuant to the provisions of any agreement applicable to the Borrower or any
of its property;

 

(b)               
The representations and warranties contained in the Original Agreement are true and correct as of
the date hereof as though made on that date except: (i) to the extent that such representations and warranties relate solely to an earlier
date; and (ii) that the representations and warranties set forth in Section 5.04 of the Original Agreement to the audited annual financial
statements and internally-prepared interim financial statements of the Borrower shall be deemed to be a reference to the audited financial
statements and interim financial statements, as the case may be, of the Borrower most recently delivered to the Lender pursuant to Section
6.01(a) or 6.01(b) of the Original Agreement;

 

(c)                
No events have taken place and no circumstances exist at the date hereof which would give the Borrower
the right to assert a defense, offset or counterclaim to any claim by the Lender for payment of the Obligations;

 

(d)               
The Original Agreement, as amended by this Amendment, the A&R Revolving Credit Note, and each
other Loan Document to which the Borrower is a party are the legal, valid and binding obligations of the Borrower and are enforceable
in accordance with their respective terms, subject only to bankruptcy, insolvency, reorganization, moratorium or similar laws, rulings
or decisions at the time in effect affecting the enforceability of rights of creditors generally and to general equitable principles which
may limit the right to obtain equitable remedies; and

 

(e)                
Before and after giving effect to this Amendment, there does not exist any Default or Event of Default.

 

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5.                  
Release. The Borrower hereby releases and forever discharges the Lender and its successors,
assigns, directors, officers, agents, employees and participants from any and all actions, causes of action, suits, proceedings, debts,
sums of money, covenants, contracts, controversies, claims and demands, at law or in equity, which the Borrower ever had or now has against
the Lender or its successors, assigns, directors, officers, agents, employees or participants by virtue of the Lender’s relationship
to the Borrower in connection with the Loan Documents and the transactions related thereto

 

6.                  
Reference to and Effect on the Loan Documents.

 

(a)                
From and after the date of this Amendment, each reference in:

 

(i)                 
the Original Agreement to “this Agreement”, “hereunder”, “hereof”,
“herein” or words of like import referring to the Original Agreement, and each reference to the “Credit Agreement”,
the “Credit Agreement”, “thereunder”, “thereof”, “therein” or words of like import referring
to the Original Agreement in any other Loan Document shall mean and be a reference to the Original Agreement as amended hereby; and
except as specifically set forth above, the Original Agreement remains in full force and effect and is hereby ratified and confirmed;
and 

 

(ii)               
any Loan Document to the “Revolving Credit Note”, “thereunder”, “thereof”,
“therein” or words of like import referring to the Revolving Credit Note shall mean and be a reference to the A&R Revolving
Credit Note executed and delivered pursuant to this letter amendment.

 

(b)               
The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided
herein, operate as a waiver of any right, power or remedy of the Lender under the Agreement or any other Loan Document, nor constitute
a waiver of any provision of the Agreement or any such other Loan Document.

 

7.                  
Costs, Expenses and Taxes. The Borrower agrees to pay on demand all costs and expenses
of the Lender in connection with the preparation, reproduction, execution and delivery of this Amendment and the other documents to be
delivered hereunder or thereunder, including their reasonable attorneys’ fees and legal expenses. In addition, the Borrower shall
pay any and all stamp and other taxes and fees payable or determined to be payable in connection with the execution and delivery, filing
or recording of this Amendment and the other instruments and documents to be delivered hereunder and agrees to save the Lender harmless
from and against any and all liabilities with respect to, or resulting from, any delay in the Borrower’s paying or omission to pay,
such taxes or fees.

 

8.                  
Governing Law. THE VALIDITY, CONSTRUCTION AND ENFORCEABILITY OF THIS AMENDMENT SHALL
BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF LAWS PRINCIPLES THEREOF.

 

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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.               
Counterparts. This Amendment may be executed in counterparts and by separate parties
in separate counterparts, each of which shall be an original and all of which taken together shall constitute one and the same document.
Receipt by telecopy, pdf file or other electronic means of any executed signature page to this Amendment shall constitute effective delivery
of such signature page.

 

11.               
Recitals. The Recitals hereto are incorporated herein by reference and constitute a
part of this Amendment.

 

[SIGNATURE PAGE FOLLOWS]

 

 

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IN
WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed as of the date first above.

 

	 	PRO-DEX, INC.
	 	 	 
	 	By:	/s/ Richard L. Van Kirk
	 	Name:	Richard L. Van Kirk
	 	Its:	Chief Executive Officer
	 	 	 
	 	 	 
	 	 	 
	 	 	 
	 	Minnesota Bank & Trust
	 	 	 
	 	By:	/s/ Dianne Wegscheid
	 	Name:	Dianne Wegscheid
	 	Title: 	Senior Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[signature page Amendment No. 1 to Amended and
Restated Credit Agreement]EXHIBIT 10.2

 

AMENDED AND RESTATED REVOLVING CREDIT NOTE

 

 

	U.S. $2,000,000.00             	Dated as of November 5, 2021
	 	Minnetonka, Minnesota

 

 

 

FOR VALUE RECEIVED, on the Revolving Credit Termination
Date (as defined in the Credit Agreement hereinafter defined) the undersigned, PRO-DEX, INC.,
a Colorado corporation (the “Borrower”), promises to pay to the order of Minnesota
Bank & Trust, a Minnesota state banking corporation (the “Lender”), the principal sum of TWO MILLION
AND NO/100THS DOLLARS (U.S. $2,000,000.00) or, if less, the aggregate unpaid principal amount of all Revolving Credit Loans (as hereinafter
defined) made by the Lender to the Borrower pursuant to the Credit Agreement.

 

Interest. The Borrower promises to pay
interest on the unpaid principal amount hereof from the date hereof until such principal amount is paid in full at a fluctuating annual
rate of interest equal to the greater of (a) 2.75% or (b) the Prime Rate (hereinafter defined) minus 0.50%,
as in effect on the date hereof and as the same may adjust from time to time. Interest accrued during each calendar month shall be due
and payable on the first day of the following calendar month, with the first such interest payment due on December 1, 2021. Interest shall
also be payable at maturity and interest accrued after maturity shall be payable on demand. The term “Prime Rate” shall mean
the prime rate published in the money rates section of the Wall Street Journal, floating, and changing with each change of such published
rate, or if the Wall Street Journal ceases to publish such rate, as published in the Federal Reserve Board’s Statistical Release
H. 15. If the Prime Rate becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower.
Lender will tell Borrower the current Index rate upon Borrower’s request. Borrower understands that Lender may make loans based
on other rates as well. Interest on the unpaid principal balance of this Note will be calculated as described in the “INTEREST CALCULATION
METHOD” paragraph. NOTICE: under no circumstances will the interest rate on this Note be more than the maximum rate allowed by applicable
law.

 

Payments. Both principal and interest are
payable in lawful money of the United States of America to the Lender at 9800 Bren Road East, Suite 200, Minnetonka, MN 55343 (or other
location specified by the Lender) in immediately available funds. By its execution of this Note, the Borrower authorizes the Lender to
charge from time to time against any of Borrower’s depository accounts maintained with the Lender any such payments when due and
the Lender will use its reasonable efforts to notify the Borrower of such charges.

 

Interest Calculation Method. Interest on
this Note shall be calculated on the basis of a 360-day year and the actual number of days elapsed in any portion of a month in which
interest is due. If any payment to be made by the Borrower hereunder shall become due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day.

 

    	 

    	 

    

 

AMENDED AND RESTATED REVOLVING CREDIT NOTE

Page 2

 

 

	U.S. $2,000,000.00             	November 5, 2021

 

Prepayment; Minimum Interest Charge. In
any event, even upon full prepayment of this Note, Borrower understands that Lender is entitled to a minimum interest charge of $10.00.
Other than Borrower’s obligations to pay any minimum interest charge, Borrower may pay without penalty all or a portion of the amount
earlier than it is due. Early payments will not, unless agreed to by Lender in writing, relieve Borrower of Borrower’s obligation
to continue to make payments of accrued unpaid interest. Rather, early payment will reduce the principal balance due. Borrower agrees
not to send Lender payments marked “paid in full”, “without recourse”, or similar language. If Borrower sends
such a payment, Lender may accept it without losing any of Lender’s rights under this Note, and Borrower will remain obligated to
pay any further amount owed to Lender. All written communications concerning disputed amounts, including any check or other payment instrument
that indicates that the payment constitutes “payment in full” of the amount owed or that is tendered with other conditions
or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: Minnesota Bank & Trust, 9800 Bren Road
East, Suite 200, Minnetonka, MN 55343.

 

Late Charge. If a payment due hereunder
is not made within seven days after the date when due, Borrower shall pay to Lender a late payment charge of 5% of the amount of the overdue
payment to compensate Lender for a portion of the cost related to handling the overdue payment.

 

Interest After Default. Upon the occurrence
and during the continuance of an Event of Default, including failure to pay upon final maturity, the interest rate on this Note shall
be increased by adding an additional 3.000 percentage point margin over the interest rate that would otherwise be in effect hereunder
(such increased rate of interest being, the “Default Rate”). However, in no event will the interest rate exceed the
maximum interest rate limitations under applicable law.

 

Credit Agreement. This Note is the Revolving
Credit Note referred to in, and is entitled to the benefits of, the Amended and Restated Credit Agreement dated as of November 6, 2020
(as amended, modified, supplemented or restated from time to time being the “Credit Agreement”; capitalized terms not
otherwise defined herein being used herein as therein defined) between the Borrower and the Lender. The Credit Agreement, among other
things, (i) provides for the making of Revolving Credit Loans (the “Revolving Credit Loans”) by the Lender to
the Borrower from time to time in an aggregate amount not to exceed at any time outstanding the dollar amount first above mentioned, the
indebtedness of the Borrower resulting from each such Revolving Credit Loan being evidenced by this Note; (ii) contains provisions
for acceleration of the maturity hereof upon the happening of certain stated events prior to the maturity hereof upon the terms and conditions
therein specified; and (iii) contains provisions for the mandatory prepayment hereof upon certain conditions.

 

    	 

    	 

    

 

AMENDED AND RESTATED REVOLVING CREDIT NOTE

Page 3

 

 

	U.S. $2,000,000.00             	November 5, 2021

 

Security Agreement. This Note is secured
by, among other things, that certain Security Agreement dated September 6, 2018,
executed by the Borrower and certain of its Subsidiaries in favor of the Lender.

 

Waiver of Presentment and Demand for Payment;
Etc. Borrower and any endorsers or guarantors hereof severally waive presentment and demand for payment, notice of intent to accelerate
maturity, protest or notice of protest and non-payment, bringing of suit and diligence in taking any action to collect any sums owing
hereunder or in proceeding against any of the rights and properties securing payment hereunder, and expressly agree that this Note, or
any payment hereunder, may be extended from time to time, and consent to the acceptance of further security or the release of any security
for this Note, all without in any way affecting the liability of Borrower and any endorsers or guarantors hereof. No extension of time
for the payment of this Note, or any installment thereof, made by agreement by Lender with any Person now or hereafter liable for the
payment of this Note, shall affect the original liability under this Note of the undersigned, even if the undersigned is not a party to
such agreement.

 

Event of Default.  Any “Event of
Default” (as defined in the Credit Agreement) shall constitute an Event of Default under this Note. Upon the occurrence of an Event
of Default, in addition to any other rights or remedies Lender may have at law or in equity or under the Credit Agreement or under any
other Loan Document, Lender may, at its option, without notice to Borrower, declare immediately due and payable the entire unpaid principal
sum hereof, together with all accrued and unpaid interest thereon plus any other sums owing at the time of such Event of Default pursuant
to this Note, the Security Agreement or any other Loan Document. The failure to exercise the foregoing or any other options shall not
constitute a waiver of the right to exercise the same or any other option at any subsequent time in respect of the same event or any other
event. The acceptance by the holder of any payment hereunder which is less than payment in full of all amounts due and payable at the
time of such payment shall not constitute a waiver of the right to exercise any of the foregoing options at that time or at any subsequent
time.

 

Expense Reimbursement. Borrower agrees
to pay all expenses for the preparation of this Note, as set forth in the Credit Agreement, including exhibits, and any amendments to
this Note as may from time to time hereafter be required, and the reasonable attorneys’ fees and legal expenses of counsel for Lender
from time to time incurred in connection with the preparation and execution of this Note and any document relevant to this Note, any amendments
hereto or thereto, and the consideration of legal questions relevant hereto and thereto. Borrower agrees to reimburse Lender upon demand
for all reasonable out-of-pocket expenses (including attorneys’ fees and legal expenses) in connection with Lender’s enforcement
of the obligations of the Borrower hereunder or under the Security Agreement or any other collateral document, whether or not suit is
commenced including, without limitation, attorneys’ fees and legal expenses in connection with any appeal of a lower court’s
order or judgment. The obligations of the Borrower under this paragraph shall survive any termination of the Credit Agreement, this Note,
the Security Agreement, and any other Loan Document.

 

    	 

    	 

    

 

AMENDED AND RESTATED REVOLVING CREDIT NOTE

Page 4

 

 

	U.S. $2,000,000.00             	November 5, 2021

 

Successors and Assigns. This Note shall
be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns except that Borrower
may not assign or transfer its rights hereunder without the prior written consent of Lender, which consent may be withheld in Lender’s
sole discretion. In connection with the actual or prospective sale by the Lender of any interest or participation in the loan obligation
evidenced by this Note, Borrower hereby authorizes the Lender to furnish any information concerning the Borrower or any of its affiliates,
however acquired, to any Person or entity.

 

Usury. Borrower and Lender agree that no
payment of interest or other consideration made or agreed to be made by Borrower to Lender pursuant to this Note shall, at any time, be
in excess of the maximum rate of interest permissible by law. In the event such payments of interest or other consideration provided for
in this Note shall result in an effective rate of interest which, for any period of time, is in excess of the limit of the usury or any
other law applicable to the loan evidenced hereby, all sums in excess of those lawfully collectible as interest for the period in question
shall, without further agreement or notice between or by any party hereto, be applied to the unpaid principal balance and not to the payment
of interest; if a surplus remains after full payment of principal and lawful interest, the surplus shall be remitted by Lender to Borrower,
and Borrower hereby agrees to accept such remittance. This provision shall control every other obligation of the Borrower and Lender relating
to this Note.

 

Business Purpose Loan. The Loan is a business
loan. Borrower hereby represents that this loan is for commercial use and not for personal, family or household purposes. The Borrower
agrees that the Loan evidenced by this Note is an exempted transaction under the Truth In Lending Act, 15 U.S.C., §1601, et seq.

 

Governing Law. THE VALIDITY, CONSTRUCTION
AND ENFORCEABILITY OF THIS NOTE SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF MINNESOTA, WITHOUT GIVING EFFECT TO CONFLICT OF
LAWS PRINCIPLES THEREOF.

 

WAIVER OF DEFENSES. OTHER THAN CLAIMS
BASED UPON THE FAILURE OF THE LENDER TO ACT IN A COMMERCIALLY REASONABLE MANNER, THE BORROWER WAIVES EVERY PRESENT AND FUTURE DEFENSE
(OTHER THAN THE DEFENSE OF PAYMENT IN FULL OR THAT NO EVENT OF DEFAULT EXISTED), CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH THE BORROWER
MAY NOW HAVE OR HEREAFTER MAY HAVE TO ANY ACTION BY THE LENDER IN ENFORCING THIS NOTE OR ANY OF THE LOAN DOCUMENTS. THIS PROVISION IS
A MATERIAL INDUCEMENT FOR THE LENDER GRANTING ANY FINANCIAL ACCOMMODATION TO THE BORROWER.

 

    	 

    	 

    

 

AMENDED AND RESTATED REVOLVING CREDIT NOTE

Page 5

 

 

	U.S. $2,000,000.00             	November 5, 2021

 

Waiver of Right to Jury Trial; Venue. BORROWER
WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION RELATING TO OR ARISING FROM THIS NOTE. AT THE OPTION OF LENDER, THIS NOTE
MAY BE ENFORCED IN ANY UNITED STATES DISTRICT COURT FOR THE DISTRICT OF MINNESOTA OR THE STATE COURT SITTING IN HENNEPIN OR RAMSEY COUNTY,
MINNESOTA. BORROWER CONSENTS TO THE JURISDICTION AND VENUE OF ANY SUCH COURT AND WAIVES ANY ARGUMENT THAT VENUE IN SUCH FORUMS IS NOT
PROPER OR CONVENIENT. IN THE EVENT AN ACTION IS COMMENCED IN ANOTHER JURISDICTION OR VENUE UNDER ANY TORT OR CONTRACT THEORY ARISING DIRECTLY
OR INDIRECTLY FROM THE RELATIONSHIP CREATED BY THIS NOTE, LENDER, AT ITS OPTION, SHALL BE ENTITLED TO HAVE THE CASE TRANSFERRED TO ONE
OF THE JURISDICTIONS AND VENUES ABOVE DESCRIBED, OR IF SUCH TRANSFER CANNOT BE ACCOMPLISHED UNDER APPLICABLE LAW, TO HAVE SUCH CASE DISMISSED
WITHOUT PREJUDICE.

 

Amendment and Restatement. This Note is
being executed and delivered in restatement of, but not in payment of, that certain Revolving Credit Note dated November 6, 2020, made
by the Borrower payable to the order of the Lender in the original principal amount of $2,000,000.00; provided, however, that interest
accrued on such replaced note through the date hereof shall be due and payable on December 1, 2021.

 

 

    	 

    	 

    

AMENDED AND RESTATED REVOLVING CREDIT NOTE

Page 6

 

 

	U.S. $2,000,000.00             	November 5, 2021

 

IN WITNESS WHEREOF, the Borrower
has caused this Amended and Restated Revolving Credit Note to be signed by its duly authorized officer in favor of Minnesota Bank &
Trust and to be dated as of the date set forth above.

 

 

	 	PRO-DEX, INC., a Colorado corporation
	 	 	 
	 	By:	/s/ Richard L. Van Kirk
	 	Name: 	Richard L. Van Kirk
	 	Its: 	Chief Executive Officer

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