Document:

exhibit101_102610.htm

Exhibit 10.1

 

FIRST AMENDMENT TO SECURED LOAN AGREEMENT

 

THIS FIRST AMENDMENT TO SECURED LOAN AGREEMENT (“First Amendment”) dated October 21, 2010, is made by and among Elecsys Corporation, a Kansas corporation (“Elecsys”), Elecsys International Corporation, a Kansas corporation (“International,” and together with Elecsys, “Borrower”) and UMB Bank, N.A. (“Lender”) to modify and amend that certain Secured Loan Agreement (the “Loan Agreement”) dated as of October 30, 2009, between Elecsys and Lender.  Terms used but not herein defined shall have the meanings ascribed thereto in the Loan Agreement.

 

WHEREAS, International desires to become a co-borrower with Elecsys under the Loan Agreement and Borrowers have requested an extension of the Revolving Credit Maturity Date; and

 

WHEREAS, UMB is willing to provide such extension on the terms and conditions hereinafter set forth.

 

NOW, THEREFORE, in consideration of the premises and the mutual promises herein contained, the parties mutually agree as follows:

 

1.           Joinder of International as Borrower.  By its authorized signature below, International hereby joins the Loan Agreement, as amended hereby, as a Borrower.  International and Elecsys each expect to derive benefit (and its board of directors has determined that it may reasonably be expected to derive benefit), directly and indirectly, from (i) successful operations of each of them and (ii) the credit extended by Lender to them hereunder, both in their separate capacities and as members of a group of companies.  Each of Elecsys and International has determined that execution, delivery, and performance of this First Amendment and any other Loan Documents to be executed by it hereunder is within its purpose, will be of direct and indirect benefit to it, and is in its best interest.

 

2.           Amendment of Section 1.01.  Section 1.01 of the Loan Agreement is amended as follows:

 

(a)           The definition of “Borrower” is deleted in its entirety and replaced with the following:

 

“Borrower” means Elecsys Corporation and Elecsys International Corporation.

 

(b)           The definition of “EBITDA” is deleted in its entirety and replaced with the following:

 

“EBITDA” of the Borrower for any period mans the consolidated pre-tax income of Borrower for such period, plus Interest Expense, depreciation and amortization.

 

  

  

  

(c)           The definition of “Interest Expense” is deleted in its entirety and replaced with the following:

 

“Interest Expense” for any period means the consolidated aggregate amount of interest accrued during such period for Borrower on all indebtedness for borrowed money, as determined in accordance with GAAP.

 

(d)           The definition of “Revolving Credit Maturity Date” is deleted in its entirety and replaced with the following:

 

“Revolving Credit Maturity Date” means October 30, 2012.

 

(e)           The following defined term is inserted in alphabetical order:

 

“Debt Service Coverage Ratio” means for any fiscal quarter the ratio of (i) EBITDA to (ii) the current portion of long-term Debt plus Interest Expense, each case for such fiscal quarter.

 

3.           Amendment of Article VI.  Article VI of the Loan Agreement is amended by inserting a new Section 6.08 at the end thereof, as follows:

 

6.08           Debt Service Coverage Ratio.  Borrower shall maintain a Debt Service Coverage of no less than 1.2 to 1.0 measured at the fiscal quarter ending (a) October 31, 2010, calculated on a trailing three(3) month basis; (b) January 31, 2011, calculated on a trailing six (6) month basis; (c) April 30, 2011, calculated on a trailing nine (9) month basis; and (d) July 31, 2011 and each fiscal quarter end thereafter, calculated on a trailing twelve (12) month basis.

 

4.           Amendment of Article IX.  Article IX of the Loan Agreement is amended by inserting the following new Section 9.14  at the end thereof:

 

9.14           Joint and Several Liability.  The liability of Elecsys and International hereunder shall be joint and several.

 

5.           Conditions Precedent.  Lender’s obligations hereunder and under the Loan Agreement as amended hereby are subject to, and this First Amendment shall become effective upon, the date (the “Effective Date”) of Borrower’s compliance on the date hereof with the following specific conditions:

 

(a)           The execution and delivery of this First Amendment by all parties hereto.

 

(b)           The execution and delivery by Borrower to Lender of a Secured Revolving Credit Note in form and substance acceptable to Lender.

 

(c)           The execution and delivery by International to Lender of a Security Agreement in form and substance acceptable to Lender.

 

(d)           International shall deliver to Lender a certified copy of resolutions executed by its Board of Directors authorizing the execution and delivery of this First Amendment and such Borrower’s performance hereunder.

 

  

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6.           Miscellaneous.

 

(a)           Borrower hereby confirms that all of the covenants, representations and warranties made in Sections 5, 6, and 7 of the Agreement are true and correct as of the date hereof and that no Default or Event of Default as defined in the Agreement has occurred and is continuing.

 

(b)           This First Amendment may be executed in two or more counterparts, each of which shall constitute an original but when taken together shall constitute but one agreement.  The exchange of copies of this First Amendment and of the signature pages hereof by facsimile transmission shall constitute effective execution and delivery of this First Amendment as to the parties and may be used in lieu of the originals thereof for all purposes.  Signatures of the parties transmitted by facsimile shall be deemed to be their original signatures for all purposes.

 

(c)           All terms and conditions of the Loan Agreement not expressly amended hereby shall remain in full force and effect as if this First Amendment had not been executed and delivered.

 

7.           Oral agreements or commitments to loan money, extend credit or to forbear from enforcing repayment of a debt including promises to extend or renew such debt are not enforceable, regardless of the legal theory upon which it is based that is in any way related to the Loan Agreement.  To protect Borrower and UMB from misunderstanding or disappointment, any agreements Borrower and UMB reach covering such matters are contained in the Loan Agreement as amended hereby, which is the complete and exclusive statement of the agreement between us, except as we may later agree in writing to modify it.

 

IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Secured Loan Agreement as of the day and year first written above.

 

 

 

	UMB BANK, N.A.	 	ELECSYS CORPORATION	 
	 	 	 	 
	 	 	 	 
	By:  /s/ S. Scott Heady                       	 	By: /s/ Karl B. Gemperli                     	 
	Name:     S. Scott Heady	 	Name:   Karl B. Gemperli	 
	Title:       Senior Vice President	 	Title:     President and Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	
ELECSYS INTERNATIONAL 

CORPORATION

	 	 	 	 
	 	 	 	 
	 	 	By: /s/ Karl B. Gemperli                     	 
	 	 	Name:   Karl B. Gemperli	 
	 	 	Title:     President and Chief Executive Officer	 

 

 

 

  

3exhibit102_102610.htm

Exhibit 10.2

 

SECURED REVOLVING CREDIT NOTE

 

	
$6,000,000 and Interest

	
October 21, 2010

FOR VALUE RECEIVED, Elecsys Corporation, a Kansas corporation, and Elecsys International Corporation (collectively, “Borrowers”) jointly and severally promise to pay to the order of UMB Bank, N.A. (“Lender”), at its main office in Kansas City, Missouri, on October 30, 2012, or as otherwise required by the terms of the Secured Loan Agreement, as defined below, the principal sum of Six Million and 00/100 Dollars ($6,000,000) or such other lesser amount as shall be noted on the Schedule of Disbursements and Payments of Principal attached hereto pursuant to the authority set forth herein or otherwise recorded on the books and records of Lender, together with interest on the unpaid principal balance hereof from time to time outstanding from date or dates of disbursement until paid at the rate or rates set forth in that certain Secured Loan Agreement between Lender and Elecsys Corporation dated October 30, 2009, as amended by First Amendment to Secured Loan Agreement among Borrowers and Lender dated the date hereof (as so amended, the “Secured Loan Agreement”), adjusted as set forth therein, with all accrued interest payable as set forth therein.  Interest hereunder shall be computed on the basis of days elapsed and assuming a 360-day year.  Unless Lender, in its sole discretion, may from time to time otherwise direct, all payments shall be applied first to payment of accrued interest, and then to reduction of the principal sum due hereunder.  Any part of the outstanding principal balance hereof may be paid prior to maturity and if less than the full amount due hereunder is paid, Borrowers may from time to time until maturity receive further disbursements hereunder; provided, however, the aggregate amount of all principal amounts outstanding hereunder shall at no time exceed the face amount of this Note.  In the event Borrowers pay any part of the principal balance hereof prior to maturity or, in accordance with the terms hereof, receives any additional disbursements of principal hereunder, the principal amount due hereunder shall be the last amount stated to be the Unpaid Principal Balance of the Note on the Schedule of Disbursements and Payments of Principal or otherwise recorded on the books and records of Lender and Borrowers hereby authorize any officer of Lender to make notations on the Schedule of Disbursements and Payments of Principal or to otherwise make an entry in the books and records of Lender from time to time to evidence payments and disbursements hereunder.  Lender or holder hereof may make advances upon oral or written instructions of Borrowers or either of them any other person or persons duly authorized by Borrowers.

 

All capitalized terms not otherwise defined herein shall have the meanings ascribed to them in the Secured Loan Agreement.

 

Upon occurrence of any of the Events of Default set forth in the Secured Loan Agreement and the declaration thereof by Lender or the Revolving Credit Maturity Date, whichever happens earlier, then this Note and all other obligations of Borrowers to the holder hereof shall immediately become due and payable in full without further notice or demand except as otherwise specifically provided in the Secured Loan Agreement.

 

The interpretation of this instrument and the rights and remedies of the parties hereto shall be governed by the laws of the State of Missouri.  To the extent permitted by applicable law, Borrowers agree to pay all expenses of the holder in collecting this Note and enforcing Lender’s rights under the Secured Loan Agreement, including reasonable attorneys’ fees and expenses.

 

  

  

  

This Note amends and restates, and is not a novation of, that certain Secured Revolving Note executed and delivered by Elecsys Corporation to Lender dated October 30, 2009, the indebtedness which was evidenced thereby remains outstanding.

 

All credit evidenced by this Note is extended pursuant to the Secured Loan Agreement, reference to which is made for a complete statement of all terms and conditions of all borrowings evidenced hereby.

 

 

 

 

 

	 	 	ELECSYS CORPORATION	 
	 	 	 	 
	 	 	 	 
	 	 	By: /s/ Karl B. Gemperli                     	 
	 	 	Name: Karl B. Gemperli	 
	 	 	Title:   President and Chief Executive Officer	 
	 	 	 	 
	 	 	 	 
	 	 	
ELECSYS INTERNATIONAL CORPORATION

	 	 	 	 
	 	 	 	 
	 	 	By: /s/ Karl B. Gemperli                     	 
	 	 	Name: Karl B. Gemperli	 
	 	 	Title:   President and Chief Executive Officer	 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

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Schedule No. 1

 

SCHEDULE OF DISBURSEMENTS AND PAYMENTS OF PRINCIPAL AND INTEREST

 

 

 

	Date	
Date Interest

Paid to

	Interest Rate	Interest Paid	Amount of 

Principal

Disbursement

	Amount of 

Principal

Payment

	Unpaid 

Principal

Balance

	Disbursement 

Approved By

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 

 

This is the Schedule of Disbursements and Payments of Principal and Interest referred to in the Secured Revolving Credit Note dated October 21, 2010, made by the undersigned to the order of UMB Bank, N.A.

 

Dated: ______________, 2010

 

 

 

 

 

 

	ELECSYS CORPORATION	 	

ELECSYS INTERNATIONAL 

CORPORATION

	 
	 	 	 	 
	 	 	 	 
	By:  /s/ Karl B. Gemperli   	 	By: /s/ Karl B. Gemperli                     	 
	Name:    Karl B. Gemperli	 	Name:   Karl B. Gemperli	 
	Title:      President and Chief Executive Officer	 	Title:     President and Chief Executive Officer	 
	 	 	 	 

 

 

  

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