Document:

Exhibit 10.1

 

SIXTH AMENDMENT TO REVOLVING CREDIT

AND TERM
LOAN AGREEMENT

 

This Sixth Amendment to Revolving Credit and
Term Loan Agreement is dated as of August 29, 2008, between XETA TECHNOLOGIES, INC., an Oklahoma corporation (“Borrower”),
and BANK OF OKLAHOMA, N.A. (“Bank”).

 

RECITALS

 

A.                                   Reference is made to the Revolving Credit and
Term Loan Agreement dated as of October 1, 2003, and amended June 7,
2004, September 30, 2005, December 21, 2005, September 28, 2006,
and September 5, 2007 (as amended, the “Credit Agreement”) between
Borrower and Bank, pursuant to which currently exists:  (i) a term loan in the original
principal amount of $3,374,734.33 (“Term Loan”), (ii) a real estate loan
in the original principal amount of $2,238,333.48 (“Real Estate Loan”), and (iii) a
revolving line of credit in the amount of $7,500,000 (“Revolving Line”).  Terms used herein shall have the meanings
ascribed to them in the Credit Agreement unless otherwise defined herein.

 

B.                                     Borrower has requested that Bank extend the commitment
under the Revolving Line to September 30, 2009; and Bank has agreed to
accommodate such request, subject to the terms and conditions set forth below.

 

AGREEMENT

 

For valuable consideration received, it is
agreed as follows:

 

1.                                       AMENDMENTS TO THE CREDIT AGREEMENT.  The
Credit Agreement is hereby amended as follows:

 

1.1.                             The Revolving Line Note, attached to the
Credit Agreement as Schedule “1.49” is hereby replaced by the $7,500,000
Promissory Note in form and content as set forth on Schedule “1.1”
attached hereto (“Renewal Note”).

 

1.2.                             Section 1.53 (Termination Date) is
hereby amended to reflect that the date “September 28, 2008” shall now
mean and read “September 30, 2009”.

 

1.3.                             Section 8.1 (Funded Debt to EBITDA
Ratio) is hereby deleted and replaced with the following:

 

“8.1                           Funded Debt to EBITDA Ratio. 
Maintain at all times a Funded Debt to EBITDA Ratio of not greater than
2.75 to 1.”

 

1.4.                             Section 8.2 (Minimum Tangible Net Worth)
is hereby deleted and replaced with the following:

 

“8.2                           Minimum Tangible Net Worth. 
Maintain at all times a Tangible Net Worth of not less than Eleven
Million and No/100 Dollars ($11,000,000).”

 

1.5.                             Section 8.4 (Capital Expenditures) is
hereby deleted and replaced with the following:

 

“8.4                           Capital Expenditures.  Not
make expenditures for fixed or capital assets if, after giving effect thereto,
the aggregate of all such expenditures would exceed $1,500,000 during any
fiscal year of the Borrower.”

 

 

2.                                       CONDITIONS PRECEDENT. 
Borrower shall deliver to Bank at or before closing:

 

2.1.                             This Amendment and all schedules hereto;

 

2.2.                             The Renewal Note; and

 

2.3.                             Any other instruments, documents or
agreements reasonably requested by Bank in connection herewith.

 

3.                                       Borrower Ratification. 
Borrower hereby ratifies and confirms the Credit Agreement, Security
Agreement and all other instruments, documents and agreements executed by
Borrower in connection with the Credit Agreement, and acknowledges and agrees
that they remain in full force and effect, binding and enforceable against the
Borrower in accordance with their terms.

 

4.                                       Representations. 
Borrower represents and warrants that (i) no Event of Default
exists under the Credit Agreement or any instruments, documents or agreements
executed by Borrower in connection therewith (collectively, the “Loan Documents”),
and (ii) all representations and warranties made in the Loan Documents
remain true and correct as of the date hereof. 
Borrower further represents and warrants that all authority documents
delivered to Bank in connection with the Credit Agreement remain in full force
and effect and have not been modified or changed whatsoever.

 

5.                                       Governing Law and Binding Effect.  This
document shall be governed by and construed in accordance with the laws of the
State of Oklahoma, and shall inure to the benefit of and be binding upon the
parties hereto, their successors and assigns.

 

6.                                       No Change.  Except as expressly amended
hereby, the Credit Agreement, and all instruments, documents and agreements
executed and/or delivered by Borrower to Bank in connection therewith, shall
remain in full force and effect and unchanged.

 

7.                                       Costs, Expenses and Fees. 
Borrower agrees to pay all costs, expenses and fees incurred by Bank or
otherwise in connection herewith, including, without limitation, all reasonable
attorney fees, costs and expenses of Riggs, Abney, Neal, Turpen, Orbison &
Lewis.

 

8.                                       Multiple Counterparts.  This
Amendment may be executed in multiple counterparts.

 

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

 

[Signature Page to Follow]

 

2

 

	
   

  	
  “Borrower”

  
	
   

  	
   

  
	
   

  	
  XETA TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Robert B. Wagner

  
	
   

  	
   

  	
   Robert B. Wagner, Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  “Bank”

  
	
   

  	
   

  
	
   

  	
  BANK OF OKLAHOMA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ David Lamb

  
	
   

  	
   

  	
   David Lamb, Senior Vice
  President

  

 

3

 

Schedule “1.1”

 

(Renewal Note)

 

4Exhibit 10.2

 

PROMISSORY NOTE

 

	
  $7,500,000

  	
  August 29, 2008

  

Tulsa,
Oklahoma

 

FOR VALUE RECEIVED, the undersigned, XETA TECHNOLOGIES, INC., an Oklahoma corporation (“Maker”),
promises to pay to the order of BANK OF OKLAHOMA, N.A.
(“Lender”), at its offices in Tulsa, Oklahoma, the principal sum of Seven
Million Five Hundred Thousand and No/100 Dollars ($7,500,000) or, if less, the
aggregate sum of advances made by Lender to Maker under the Revolving Credit
and Term Loan Agreement dated October 1, 2003 (as amended, the “Credit
Agreement”) between Maker and Lender, payable as follows (all capitalized terms
used but not defined herein shall have the meanings given in the Credit
Agreement):

 

a.                                       Principal.  Principal shall be payable on September 30,
2009 (“Maturity”).

 

b.                                      Interest.  Interest shall be payable on the first day of each month, commencing
the 1st day of September, 2008, and at Maturity.  Interest shall accrue on the principal
balance outstanding hereunder and on any past due interest hereunder at a rate at
all times equal to the Note Rate (defined below).

 

“Note Rate” shall
mean a rate at all times
equal to the Adjusted Prime Rate or the Adjusted LIBOR Rate, as elected by
Maker pursuant to a properly made Interest Rate Election (defined below);
provided, that at the end of any applicable Interest Period (defined below),
the Note Rate shall revert to the Adjusted Prime Rate unless a new Interest
Rate Election has been properly made by Maker. 
The Adjusted Prime Rate and the Adjusted LIBOR Rate shall be calculated,
on any date of determination thereof, as follows:

 

	
  Funded Debt to EBITDA

  	
   

  	
  Adjusted

  LIBOR Rate

  	
   

  	
  Adjusted

  Prime Rate

  	
   

  
	
  Greater than or equal to 2.50 to 1

  	
   

  	
  LIBOR Rate plus 2.50%

  	
   

  	
  Prime Rate minus .375%

  	
   

  
	
  Greater than or equal to 2.0 to 1 but less
  than 2.5 to 1

  	
   

  	
  LIBOR Rate plus 2.00%

  	
   

  	
  Prime Rate minus .375%

  	
   

  
	
  Greater than or equal to 1.50 to 1 but less
  than 2.0 to 1

  	
   

  	
  LIBOR Rate plus 1.75%

  	
   

  	
  Prime Rate minus .875%

  	
   

  
	
  Greater than or equal to 1.0 to 1 but less
  than 1.5 to 1

  	
   

  	
  LIBOR Rate plus 1.50%

  	
   

  	
  Prime Rate minus 1.125%

  	
   

  
	
  Less than 1.0 to 1

  	
   

  	
  LIBOR Rate plus 1.25%

  	
   

  	
  Prime Rate minus 1.125%

  	
   

  

 

The Adjusted LIBOR Rate and Adjusted Prime Rate
shall be recalculated on not less than a quarterly basis, on the date on which
the Lender is in receipt of Maker’s most recent financial statements (and, in
the case of the year-end financial statements, audit report) for the fiscal
quarter then ended (“Pricing Date”).  The
Note Rate shall be established based on the ratio of Funded Debt to Cash Flow
for the most recently completed fiscal quarter and the Note Rate established on
a Pricing Date shall remain in effect until the next Pricing Date.  If the Maker has not delivered its financial
statements by the date such financial statements (and, in the case of the
year-end financial 

 

 

statements, audit report) are required to be
delivered under the Credit Agreement, until such financial statements and audit
report are delivered, the Note Rate shall be the Prime Rate minus three
hundred seventy-five thousandths of one percent (0.375%).  If the Maker subsequently delivers such
financial statements before the next Pricing Date, the Note Rate established by
such late delivered financial statements shall take effect from the date of
delivery until the next Pricing Date.  In
all other circumstances, the Note Rate established by such financial statements
shall be in effect from the Pricing Date that occurs immediately after the end
of the fiscal quarter covered by such financial statements until the next
Pricing Date. Each determination of the Note Rate made by the Lender in
accordance with the foregoing shall be conclusive and binding on the Maker and
the Lender if reasonably determined.  Any
change in the Note Rate resulting from a change in the Prime Rate shall be
effective as of the opening of business on the day on which such change in the
Prime Rate becomes effective.

 

“Funded Debt” (for
purposes of this Note) shall mean all interest bearing debt.

 

“EBITDA” shall have
the meaning given in the Credit Agreement.

 

“Interest Rate Election”
means written notice from Maker to Lender no earlier than twenty (20) days and
no later than five (5) days prior to the contemplated effective date,
substantially in form and content as set forth on Exhibit “A”
hereto, whereby Maker may elect from time to time that interest shall accrue
hereunder at the Adjusted Prime Rate or the Adjusted LIBOR Rate.

 

“LIBOR Rate” means
the London Interbank Offered Rate composite rate per annum for U.S. Dollars for
the applicable Interest Period which appears on the LIBOR 01 page of the
Reuters information service on the day the Interest Rate Election is received
by Lender.  The LIBOR Rate shall remain
fixed during the applicable Interest Period.

 

“Interest Period”
shall mean a period of time equal to the lesser of: (i) at the election of
the Maker, thirty (30), sixty (60), or ninety (90) days; or (ii) the
number of days between the contemplated effective date specified by the Maker
in the applicable Interest Rate Election and the maturity date hereunder.

 

“Prime Rate” means a rate which is subject to
change from time to time based on changes in an index which is the BOKF
National Prime Rate, described as the rate of interest set by BOK Financial
Corporation, in its sole discretion, on a daily basis as published by BOK Financial
Corporation (“BOKF”) from time to time (the “Index”).  The Index is not necessarily the lowest rate
charged by Lender on its loans and is set by Lender in its sole
discretion.  If the Index 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.  The interest rate change will not occur more
often than each day.  Borrower
understands that Lender may make loans based on other rates as well.  NOTICE: 
Under no circumstances will the interest rate on this Note be more than
the maximum rate allowed by applicable law. 
Whenever increases occur in the interest rate, Lender, at its option,
may do one or more of the following:  (A) increase
Borrower’s payments to ensure Borrower’s loan will pay off by its original
final maturity date, (B) increase Borrower’s payments to cover accruing
interest, (C) increase the number of Borrower’s payments, and (D) continue
Borrower’s payments at the same amount and increase Borrower’s final payment.

 

If any payment shall be due on a Saturday or
Sunday or upon any other day on which state or national banks in the State of
Oklahoma are closed for business by virtue of a legal holiday for such banks,
such payment shall be due and payable on the next succeeding banking day and
interest shall accrue to such day.  All
interest due hereon shall be computed on the actual number of days elapsed (365
or 366) based upon a 360-day year.

 

2

 

All payments under this Note shall be made in
legal tender of the United States of America or in other immediately available
funds at Lender’s office described above, and no credit shall be given for any
payment received by check, draft or other instrument or item until such time as
the holder hereof shall have received credit therefor from the holder’s
collecting agent or, in the event no collecting agent is used, from the bank or
other financial institution upon which said check, draft or other instrument or
item is drawn.

 

From time to time the maturity date of this
Note may be extended or this Note may be renewed, in whole or in part, or a new
note of different form may be substituted for this Note and/or the rate of interest
may be changed, or changes may be made in consideration of loan extensions, and
the holder, from time to time, may waive or surrender, either in whole or in
part, any rights, guarantees, security interests or liens given for the benefit
of the holder in connection herewith; but no such occurrences shall in any
manner affect, limit, modify or otherwise impair any rights, guarantees or
security of the holder not specifically waived, released or surrendered in
writing, nor shall any maker, guarantor, endorser or any person who is or might
be liable hereon, either primarily or contingently, be released from such
liability by reason of the occurrence of any such event.  The holder hereof, from time to time, shall have
the unlimited right to release any person who might be liable hereon; and such
release shall not affect or discharge the liability of any other person who is
or might be liable hereon.

 

If any payment required by this Note to be
made is not made when due, or if any default occurs under any loan agreement or
under the provisions of any mortgage, security agreement, assignment, pledge or
other document or agreement which provides security for the indebtedness
evidenced by this Note, the holder hereof may, at its option, without notice or
demand, declare this Note in default and all indebtedness due and owing
hereunder immediately due and payable. 
Interest from the date of default on such principal balance and on any
past due interest hereunder shall accrue at the rate of five percent (5%) per annum
above the nondefault interest rate accruing hereunder.  The Maker and any endorsers, guarantors and
sureties hereby severally waive protest, presentment, demand, and notice of
protest and nonpayment in case this Note or any payment due hereunder is not
paid when due; and they agree to any renewal, extension, acceleration,
postponement of the time of payment, substitution, exchange or release of
collateral and to the release of any party or person primarily or contingently
liable without prejudice to the holder and without notice to the Maker or any
endorser, guarantor or surety.  Maker and
any guarantor, endorser, surety or any other person who is or may become liable
hereon will, on demand, pay all costs of collection, including reasonable
attorney fees of the holder hereof in attempting to enforce payment of this
Note and reasonable attorney fees for defending the validity of any document
securing this Note as a valid first and prior lien.

 

Upon the occurrence of any default hereunder,
Lender shall have the right, immediately and without further action by it, to
set off against this Note all money owed by Lender in any capacity to the Maker
or any guarantor, endorser or other person who is or might be liable for
payment hereof, whether or not due, and also to set off against all other
liabilities of Maker to Lender all money owed by Lender in any capacity to
Maker; and Lender shall be deemed to have exercised such right of setoff and to
have made a charge against such money immediately upon the occurrence of such
default even though such charge is made or entered into the books of Lender
subsequently thereto.

 

The holder of this Note may collect a late
charge not to exceed an amount equal to five percent (5%) of the amount of any
payment which is not paid within ten (10) days from the due date thereof,
for the purposes of covering the extra expenses involved in handling delinquent
payments.  This late charge provision
shall not be applicable in the event the holder hereof, at its option, elects
to receive interest at the increased rate as provided hereunder in the event of
default.

 

3

 

This Note is given for an actual loan of
money for business purposes and not for personal, agricultural or residential
purposes, and is executed and delivered in the State of Oklahoma and shall be
governed by and construed in accordance with the laws of the State of Oklahoma.

 

This Note constitutes an extension and
renewal of and replacement for the $7,500,000 Revolving Line Note dated September 5,
2007, from Maker to Lender.

 

	
   

  	
  XETA TECHNOLOGIES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Robert B. Wagner

  
	
   

  	
   

  	
   Robert B. Wagner, Chief
  Financial Officer

  

 

4

 

EXHIBIT “A”

 

(Interest Rate Election Notice)

 

Bank of Oklahoma, N.A.

P. O. Box 2300

Tulsa, Oklahoma   74192-2300

Attn:   David Lamb, Senior Vice
President

 

Re:                               Revolving Credit and Term Loan Agreement (“Loan
Agreement”) dated October 1, 2003, between XETA
TECHNOLOGIES, INC. (“Borrower”) and BANK OF OKLAHOMA, N.A. – Interest Rate Election

 

Ladies and Gentlemen:

 

Please be advised that no Initial Default or
Matured Default exists under the Loan Agreement, and the Borrower hereby
provides the following interest rate election:

 

A.                                   Revolving Line. 
(Insert applicable information as to the (i) Adjusted Prime Rate or
(ii) Adjusted LIBOR Rate, including requested interest rate period)

 

B.                                     Term Loan.  (Insert applicable information
as to the (i) Adjusted Prime Rate or (ii) Adjusted LIBOR Rate,
including requested interest rate period)

 

C.                                     Real Estate Loan. 
(Insert applicable information as to the (i) Adjusted Prime Rate or
(ii) Adjusted LIBOR Rate, including requested interest rate period)

 

	
   

  	
  “Borrower”

  
	
   

  	
   

  
	
   

  	
  XETA TECHNOLOGIES, INC., an Oklahoma

  corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   Robert B. Wagner, Chief
  Financial Officer

  
	
   

  	
   

  
	
  Date Received by Bank of Oklahoma:

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