Document:

BioElectronics Corporation - Exhibit 10.13 - Prepared By TNT Filings Inc.

 

Exhibit 10.13  

MODIFICATION AND AMENDMENT AGREEMENT 

This Modification and Amendment Agreement ("Agreement") dated as of June
16,
2006 is entered into by and among BioElectronics Corp., a Maryland corporation
(the "Company") and the subscribers identified on the signature page hereto
(each a "Subscriber" and collectively "Subscribers"). 

WHEREAS, the Company and the Subscribers are parties to a Subscription
Agreement 

("Subscription Agreement") dated December 8, 2005 relating to an aggregate
investment by Subscribers in up to $1,000,000 of principal amount of promissory
notes of the Company convertible into shares of the Company’s $.001 par value
common stock and Warrants in the amounts set forth on Schedule A attached
hereto; and 

WHEREAS, on the Initial Closing Date $750,000 of the Purchase Price was paid
to the Company and up to $250,000 of the Purchase Price was payable within three
business days after the Actual Effective Date, which is the Second Closing Date.

NOW THEREFORE, in consideration of the mutual covenants and other agreements
contained in this Agreement, the Company and the Subscribers hereby agree as
follows: 

1. All the capitalized terms employed herein shall have the meanings
attributed to them in the Subscription Agreement and the documents and
agreements delivered therewith. 

2. The Company agrees to file the Amendment to the SB-2 Registration
Statement no later than June 16, 2006. 

3. The Company acknowledges that the Liquidated Damages as described in
Section 11.4 of the Subscription Agreement which have accrued through June 16,
2006, as more fully described on Schedule A hereto, will be payable in the form
of Notes in substantially the same form and upon the same terms and conditions
as the Notes issued in the Offering, including but not limited to the inclusion
of the Shares issuable upon conversion of these Notes, in the Amendment to the
Registration Statement to be filed by the Company no later than June 16, 2006.

4. The Fixed Conversion Price, as set forth in Section 3.1 of the Note, shall
be $0.18. 

5. For the benefit of the parties hereto, the Company hereby
makes all the representations, warranties, covenants undertakings and
indemnifications contained in the Transaction Documents, as if such
representations were made by the Company as of this date. The Subscribers hereby
make all of the representations, warranties, covenants, indemnifications and
undertakings contained in the Transaction Documents as if such representations
were made by the Subscribers as of this date. 

6. Subscribers agree to accelerate a funding of an aggregate of $100,000 of
the Second Closing Purchase Price in the amounts set forth on the signature page
hereto ("Interim Funding"). The balance of the Second Closing Purchase Price
will be funded on the Second Closing Date pursuant to the Subscription
Agreement. 

7. The Company undertakes to set aside $20,000 from the proceeds of the
Interim Funding for legal fees payable to their attorneys for the preparation
and filing of the Amendment to the SB-2 Registration Statement. 

1

8. The Subscribers agree to waive Liquidated Damages payable in connection with the initial
sixty (60) day period following the Closing Date of the Interim Funding. 
However, if the Actual Effective Date of the Registration Statement is after sixty (60) days
following the Closing Date of the Interim Funding, Liquidated Damages will once
again begin to accrue beginning on day sixty-one (61), as further described in
the Transaction Documents. 

9. All of the terms and conditions described in Section 2 of the Subscription
Agreement in reference to the Second Closing shall apply to the Interim Funding
Closing, as if such representations and warranties were made and given on all
such dates except for the requirement that the Registration Statement be
declared effective as a condition to the Second Closing. 

10. All other terms and conditions of the Transaction Documents, including
any damages or interest which have accrued shall remain in full force and effect
and payable. 

11. Each of the undersigned states that he has read the foregoing Agreement
and understands and agrees to it. 

	 	 
	 	BIOELECTRONICS CORP.
	 	the "Company"
	 	 
	 	 
	 	 
	 	By:  /s/ Andrew J. Whelan
	 	Name: Andrew J. Whelan
	 	Title: President
	 	 
	 	 
	 	 
	
    ALPHA CAPITAL AKTIENGESELLSCHAFT	
    WHALEHAVEN CAPITAL FUND LIMITED
	 	 
	 	 
	 	 
	 	 
	 	 
	
    HARBORVIEW MASTER FUND LP	 
	 	 

2

SCHEDULE A 

	
     
	
    
    INITIAL CLOSING
	
    
    INTERIM
	
    
    ACCRUED
	
    
    SECOND

	
    
    SUBSCRIBER
	
    
    NOTE PRINCIPAL
	
    
    CLOSING
	
    
    LIQUIDATED
	
    
    CLOSING

	
     
	
     
	
    
    AMOUNT
	
    
    DAMAGE NOTES
	
    
    AMOUNT

	
    
    ALPHA CAPITAL
	
    
    $400,000.00
	
    
    $53,534.00
	
     
	
    $80,000.00

	
    
    AKTIENGESELLSCHAFT
	
     
	
     
	
     
	
     

	
    
    Pradafant 7
	
     
	
     
	
     
	
     

	
    
    9490 Furstentums
	
     
	
     
	
     
	
     

	
    
    Vaduz, Lichtenstein
	
     
	
     
	
     
	
     

	
    
    Fax: 011-42-32323196
	
     
	
     
	
     
	
     

	
    
    WHALEHAVEN CAPITAL FUND
	
    
    $250,000.00
	
    
    $33,333.00
	
     
	
    $50,000.00

	
    
    LIMITED
	
     
	
     
	
     
	
     

	
    
    3rd Floor, 14 Par-Laville
    Road
	
     
	
     
	
     
	
     

	
    
    Hamilton, Bermuda HM08
	
     
	
     
	
     
	
     

	
    
    Fax: (441) 292-1373
	
     
	
     
	
     
	
     

	
    
    HARBORVIEW MASTER FUND LP
	
    
    $100,000.00
	
    
    $13,133.00
	
     
	
    $20,000.00

	
    
    850 Third Avenue, Suite 1801
	
     
	
     
	
     
	
     

	
    
    New York, NY 10022
	
     
	
     
	
     
	
     

	
    
    Fax: (646) 218-1401
	
     
	
     
	
     
	
     

	
    
    TOTAL
	
    
    $750,000.00
	
    
    $100,000.00
	
     
	
    $150,000.00

3EXHIBIT 10.1

                       FIRST AMENDMENT TO CREDIT AGREEMENT

        This FIRST AMENDMENT TO CREDIT AGREEMENT is dated as of June 14, 2006
(this "Amendment"), among AMCOL International Corporation (the "Company"),
certain Borrowing Subsidiaries, the guarantors party hereto, the financial
institutions listed on the signature pages hereof as Lenders, and Harris N.A.
("Harris"), as administrative agent (in such capacity, the "Administrative
Agent").

                             PRELIMINARY STATEMENTS

        A.      The Company, certain Borrowing Subsidiaries, the guarantors
party thereto (the "Guarantors"), the financial institutions party thereto as
Lenders, and the Administrative Agent have heretofore entered into that certain
Credit Agreement, dated as of November 10, 2005, (the "Credit Agreement"); and

        B.      The Company has asked the Lenders and the Administrative Agent
to amend the Credit Agreement to permit Volclay Pty. Ltd., a wholly-owned
subsidiary of the Company, to become a "Borrower" under the Credit Agreement and
the Lenders and the Administrative Agent are willing to do so on the terms and
conditions set forth in this Amendment.

        NOW, THEREFORE, in consideration of the premises set forth above, the
terms and conditions contained herein and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

                                    ARTICLE I
                                   DEFINITIONS

        Section 1.1     Use of Defined Terms. Unless otherwise defined or the
context otherwise requires, terms for which meanings are provided in the Credit
Agreement shall have such meanings when used in this Amendment.

                                   ARTICLE II
                                   AMENDMENTS

        Section 2.1     The  Introductory  paragraph of the Credit Agreement is
hereby amended in its entirety and as so amended shall read as follows:

<PAGE>

                    This Credit Agreement is entered into as of November 10,
                2005, by and among AMCOL International Corporation, a Delaware
                corporation (the "Company"), CETCO (Europe) Limited, a United
                Kingdom corporation ("CETCO Europe"), Colin Stewart Minchem
                Limited, a United Kingdom corporation ("Colin Stewart" and
                together with CETCO Europe, collectively referred to herein as
                the "UK Borrowers" and each individually as a "UK Borrower"),
                CETCO Poland Sp. .zo. o, a Polish corporation (the "Polish
                Borrower"), Volclay Pty. Ltd., an Australian corporation (the
                "Australian Borrower" and, together with the Company, the UK
                Borrowers, and the Polish Borrower collectively referred to
                herein as the "Borrowers" and each individually as a
                "Borrower"), the direct and indirect Subsidiaries of the
                Borrowers from time to time party to this Agreement, as
                Guarantors, the several financial institutions from time to time
                party to this Agreement, as Lenders, and Harris N.A., as
                Administrative Agent as provided herein. All capitalized terms
                used herein without definition shall have the same meanings
                herein as such terms are defined in Section 5.1 hereof.

        Section 2.2     Section 1.1 of the Credit Agreement is hereby amended in
its entirety and as so amended shall read as follows:

                    Section 1.1. Revolving Credit Commitments. Subject to the
                terms and conditions hereof, each Lender, by its acceptance
                hereof, severally agrees to make a loan or loans (individually a
                "Revolving Loan" and collectively the "Revolving Loans") in U.S.
                Dollars, Euros and Pound Sterling to the Company, in Euros to
                Colin Stewart, in Pound Sterling or Euros to CETCO Europe, in
                Euros to the Polish Borrower, in Australian Dollars to the
                Australian Borrower, from time to time on a revolving basis in
                an aggregate outstanding Original Dollar Amount up to the amount
                of such Lender's Revolving Credit Commitment, subject to any
                reductions thereof pursuant to the terms hereof, before the
                Revolving Credit Termination Date; provided that (i) the sum of
                the aggregate Original Dollar Amount of Revolving Loans, Swing
                Loans, and L/C Obligations at any time outstanding shall not
                exceed the Revolving Credit Commitments in effect at such time,
                (ii) the sum of the aggregate Original Dollar Amount of all
                Loans outstanding to the Company denominated in Euros and Pound
                Sterling shall not exceed $25,000,000, (iii) the sum of the
                aggregate principal amount of all Loans outstanding to Colin
                Stewart shall not exceed (euro)5,000,000, (iv) the sum of the
                aggregate principal amount of all Loans denominated in Euro
                outstanding to CETCO Europe shall not exceed (euro)4,000,000 and
                the sum of the aggregate principal amount of all Loan
                denominated in Pound Sterling to CETCO Europe shall not exceed
                (pound)10,000,000, (v) the sum of the aggregate principal amount
                of all Loans outstanding to the Polish Borrower shall not exceed
                (euro)9,000,000 and (vi) the sum of the aggregate principal
                amount of all Loans outstanding to the Australian Borrower shall
                not exceed AUD5,000,000.

                                      - 2 -
<PAGE>

                Each Borrowing of Revolving Loans shall be made ratably by the
                Lenders in proportion to their respective Percentages. As
                provided in Section 1.5(a) hereof, the Company may elect that
                each Borrowing of Revolving Loans denominated in U.S. Dollars be
                either Base Rate Loans or Eurocurrency Loans. All Revolving
                Loans denominated in an Alternative Currency shall be
                Eurocurrency Loans. Revolving Loans may be repaid and the
                principal amount thereof reborrowed before the Revolving Credit
                Termination Date, subject to the terms and conditions hereof.

        Section 2.3.    Section 5.1 of the Credit Agreement is amended by
amended by inserting the following new defined terms in their proper
alphabetical order:

                        "Australian Borrower" is defined in the introductory
paragraph of this Agreement.

                        "Australian Dollars" and "AUD" means the lawful currency
of Australia.

        Section 2.4.    The defined term "Alternative  Currency" contained in
Section 5.1 of the Credit Agreement is hereby amended by inserting immediately
following the phrase "Pound Sterling," appearing in the first line thereof the
following: "Australian Dollars,".

                                   ARTICLE III
                         REPRESENTATIONS AND WARRANTIES

        Section 3.1     Credit Agreement Representations. In order to induce the
Lenders and the Administrative Agent to enter into this Amendment, each Borrower
hereby reaffirms, as of the date hereof, its representations and warranties
contained in Section 6 of the Credit Agreement and additionally represents and
warrants to the Administrative Agent and each Lender as set forth in this
Article III.

        Section 3.2     Due Authorization, Non-Contravention, etc. The
execution, delivery and performance by each Borrower and each Guarantor of this
Amendment are within such Borrower's and such Guarantor's powers, have been duly
authorized by all necessary corporate action, and do not:

                (a)     contravene any Borrower's or any Guarantor's constituent
        documents;

                (b)     contravene any contractual restriction, law or
        governmental regulation or court decree or order binding on or affecting
        any Borrower or any Guarantor; or

                (c)     result in, or require the creation or imposition of, any
        Lien on any of the properties of a Borrower or a Guarantor.

                                      - 3 -
<PAGE>

        Section 3.3     Government Approval, Regulation, etc. No authorization
or approval or other action by, and no notice to or filing with, any
governmental authority or regulatory body or other Person is required for the
due execution, delivery or performance by any Borrower or any Guarantor of this
Amendment.

        Section 3.4     Validity, etc. This Amendment constitutes the legal,
valid and binding obligation of each Borrower and each Guarantor enforceable in
accordance with its terms.

                                   ARTICLE IV
                              CONDITIONS PRECEDENT

        Section 4.1     Effectiveness.  The  effectiveness  of this Amendment is
subject to the satisfaction of all of the following conditions precedent:

                (a)     The Borrowers, the Guarantors, the Administrative Agent,
        and the Lenders shall have executed and delivered this Amendment.

                (b)     The Administrative Agent shall have received certified
        copies of resolutions of the executive committee of the boards of
        directors (or equivalent governing body) of the Company authorizing the
        execution and delivery of this Amendment and indicating the authorized
        signers of this Amendment and the specimen signatures of such signers.

                (c)     the Administrative Agent shall have received for each
        Lender such Lender's duly executed Note of the Australian Borrower dated
        the date hereof and otherwise in compliance with the provisions of
        Section 1.11 of the Credit Agreement;

                (d)     the Administrative Agent shall have received for each
        Lender copies of the Australian Borrower's articles of incorporation and
        bylaws (or comparable organizational documents) and any amendments
        thereto, certified in each instance by its Secretary or Assistant
        Secretary;

                (e)     the Administrative Agent shall have received for each
        Lender copies of resolutions of the Australian Borrower's Board of
        Directors (or similar governing body) authorizing the execution,
        delivery and performance of this Amendment and the other Loan Documents
        to which it is a party and the consummation of the transactions
        contemplated hereby and thereby, together with specimen signatures of
        the persons authorized to execute such documents on the Australian
        Borrower's behalf, all certified in each instance by its Secretary or
        Assistant Secretary;

                (f)     the Administrative Agent shall have received for each
        Lender copies of the certificates of good standing for the Australian
        Borrower to the extent applicable (dated no earlier than 30 days prior
        to the date hereof) from the office of the secretary of the jurisdiction
        of its incorporation or organization;

                                      - 4 -
<PAGE>

                (g)     The Administrative Agent shall have received an opinion
        of counsel to the Company in form acceptable to the Administrative Agent
        and covering such matters relating to the transactions contemplated
        hereby as the Administrative Agent may request; and

                (h)     Legal matters incident to the execution and delivery of
        this Amendment shall be satisfactory to the Administrative Agent and its
        counsel.

                                    ARTICLE V
                            MISCELLANEOUS PROVISIONS

        Section 5.1     Ratification of and References to the Credit Agreement.
Except for the amendments expressly set forth above, the Credit Agreement and
each other Loan Document is hereby ratified, approved and confirmed in each and
every respect. Reference to this specific Amendment need not be made in the
Credit Agreement, the Note(s), or any other instrument or document executed in
connection therewith, or in any certificate, letter or communication issued or
made pursuant to or with respect to the Credit Agreement, any reference in any
of such items to the Credit Agreement being sufficient to refer to the Credit
Agreement as amended hereby.

        Section 5.2     Headings. The various headings of this Amendment are for
convenience of reference only, are not part of this Amendment and shall not
affect the construction of, or be taken into consideration in interpreting, this
Amendment.

        Section 5.3     Execution in Counterparts. This Amendment may be
executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when
taken together shall constitute a single agreement.

        Section 5.4.    No Other Amendments. Except for the amendments expressly
set forth above, the text of the Credit Agreement and the other Loan Documents
shall remain unchanged and in full force and effect, and the Lenders and the
Administrative Agent expressly reserve the right to require strict compliance
with the terms of the Credit Agreement and the other Loan Documents.

        Section 5.5.    Costs and  Expenses.  The  Company  agrees to pay on
demand all costs and expenses of or incurred by the Administrative Agent in
connection with the negotiation, preparation, execution and delivery of this
Amendment, including the fees and expenses of counsel for the Administrative
Agent.

        Section 5.5     Governing  Law. THIS AMENDMENT  SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF ILLINOIS.

                                      - 5 -
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed and delivered by their respective duly authorized officers as of
the day and year first above written.

                                              "BORROWERS"

                                              AMCOL INTERNATIONAL CORPORATION

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Senior V.P. and
                                                     Chief Financial Officer

                                              CETCO EUROPE LTD.

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Director

                                              COLIN STEWART MINCHEM LIMITED

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Director

                                              CETCO POLAND SP. Z.O. O

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Director

                                              VOLCLAY PTY. LTD.

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Director

                                     S-1   [First Amendment to Credit Agreement]
<PAGE>

                                              "GUARANTORS"

                                              AMCOL INTERNATIONAL CORPORATION

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Senior V.P. and
                                                     Chief Financial Officer

                                              AMERI-CO LOGISTICS, INC.

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Treasurer

                                              AMERICAN COLLOID COMPANY

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Treasurer

                                              COLLOID ENVIRONMENTAL TECHNOLOGIES
                                              COMPANY

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Treasurer

                                              AMCOL SPECIALTIES HOLDINGS, INC.

                                              By     /s/ Gary L. Castagna
                                                     ---------------------------
                                              Name:  Gary L. Castagna
                                              Title: Vice President

                                     S-2   [First Amendment to Credit Agreement]
<PAGE>

                                              "LENDERS"

                                              HARRIS N.A., in its individual
                                                     capacity as a Lender, as
                                                     L/C Issuer, and as
                                                     Administrative Agent

                                              By     /s/ Danjuma G. Gibson
                                                     ---------------------------
                                              Name:  Danjuma G. Gibson
                                              Title: Vice President

                                     S-3   [First Amendment to Credit Agreement]
<PAGE>

                                              WELLS FARGO BANK, N.A.

                                              By     /s/ Daniel Lange
                                                     ---------------------------
                                              Name:  Daniel Lange
                                              Title: Senior Vice President

                                     S-4   [First Amendment to Credit Agreement]
<PAGE>

                                              BANK OF AMERICA, N.A.

                                              By     /s/ Chris D. Buckner
                                                     ---------------------------
                                              Name:  Chris D. Buckner
                                              Title: Senior Vice President

                                     S-5   [First Amendment to Credit Agreement]
<PAGE>

                                              THE NORTHERN TRUST COMPANY

                                              By     /s/ Morgan A. Lyons
                                                     ---------------------------
                                              Name:  Morgan A. Lyons
                                              Title:  Vice President

                                     S-6   [First Amendment to Credit Agreement]

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