Document:

Nanophase Technologies Corporation 8-K

Exhibit 10.6

 

 

PROMISSORY NOTE

(Revolving Note - Inventory)

 

Principal Amount: $4,000,000.00Date of Note:
January 28, 2022

 

PROMISE TO PAY. NANOPHASE TECHNOLOGIES CORPORATION,
a Delaware corporation (“Borrower”), hereby promises to pay to BEACHCORP, LLC, a Delaware limited liability company (“Lender”),
or order, in lawful money of the United States of America, the principal amount of FOUR MILLION AND 00/100 DOLLARS ($4,000,000.00) (or
so much thereof as may be outstanding) together with interest on the unpaid principal balance from the date hereof, until paid in full.

 

LOAN. This Note evidences Borrower’s
Revolving Loans under the Business Loan Agreement dated as of January 28, 2022 between Borrower and Lender (as it may be amended from
time to time, the “Loan Agreement”). Capitalized terms used herein, but not otherwise defined herein, shall have the meaning
given them in the Loan Agreement.

 

PAYMENT. Borrower will repay the Loan(s) evidenced
hereby in accordance with the terms of the Loan Agreement.

 

INTEREST.

 

(a)       Interest
on the Loans. Borrower shall pay interest on the Loan(s) in accordance with the terms of the Loan Agreement.

(b)       Default
Interest. Notwithstanding the above provisions, if an Event of Default is in existence, all outstanding amounts of principal and,
to the extent permitted by law, all overdue interest, in respect of each and every Loan shall bear interest, payable on demand, at the
Default Rate under the Loan Agreement.

EVENTS OF DEFAULT. A default in the performance
of any obligation hereunder or any Event of Default under the Loan Agreement shall constitute an Event of Default hereunder.

 

LENDER'S RIGHTS. Upon the occurrence of an
Event of Default, Lender may declare the entire unpaid principal balance on this Note and all accrued unpaid interest immediately due,
without notice, and then Borrower will pay that amount, together with any Prepayment Fee which Borrower would be required to pay. Lender
may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower also will pay Lender that amount. This includes,
subject to any limits under applicable law, Lender's attorneys' fees and legal expenses whether or not there is a lawsuit, including
attorneys' fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. Borrower also will pay any court costs, in addition to all other sums
provided by law. This Note has been delivered to Lender and accepted by Lender in the State of Illinois. If there is a lawsuit, Borrower
agrees upon Lender's request to submit to the jurisdiction and venue of the courts having situs in Cook or Will County, the State of
Illinois. LENDER AND BORROWER HEREBY WAIVE THE RIGHT TO ANY JURY TRIAL IN ANY ACTION, PROCEEDING, OR COUNTERCLAIM BROUGHT BY EITHER LENDER
OR BORROWER AGAINST THE OTHER. This Note shall be governed by and construed in accordance with the laws of the State of Illinois.

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COLLATERAL; LOAN AGREEMENT. This Note is secured
by the Collateral (as defined in the Loan Agreement). This Note is the Revolving Note referred to in the Loan Agreement.

 

SAVINGS CLAUSE. In no event shall the amount
of interest or charges paid hereunder, together will all amounts reserved, charged, or taken by Lender as compensation for fees, services,
or expenses incidental to making, negotiation, or collection of the loan evidenced hereby exceed the maximum rate of interest on the unpaid
principal balance hereof, charges or compensation for fees, services, or expenses allowable by applicable law. If any sum is collected
in excess of the applicable maximum rate or amount, the excess collected shall be applied to reduce the principal debt.

 

INDEMNITY. If the introduction of, or any change
in, or in the interpretation of, or any change in its application to the Borrower of, any law or regulation, or compliance with any guideline
from any governmental authority (whether or not having the force of law) has the effect of increasing the cost to the Lender of performing
its obligations hereunder or otherwise reducing its effective return hereunder, then upon demand from time to time the Borrower shall
compensate the Lender for such cost or reduction pursuant to a certificate reasonably prepared by the Lender.

 

GENERAL PROVISIONS. Lender may delay or forgo
enforcing any of its rights or remedies under this Note without losing them. Borrower and any other Person who signs, guarantees or endorses
this Note, to the extent allowed by law, waive presentment, demand for payment, protest and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation
maker or endorser, shall be released from liability. All such parties agree that Lender may renew, extend (repeatedly and for any length
of time) or modify this Loan, or release any party or guarantor or Collateral; or impair, fail to realize upon or perfect Lender's security
interest in the Collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone.

 

LENDER'S DISCRETION. Whenever this Note requires
either Lender's consent, election, approval or similar action or otherwise vests in Lender the authority to make decisions and/or determinations,
such actions shall be made or withheld in Lender's sole and absolute discretion, unless specifically provided otherwise and the granting
of any consent, election, approval or similar action by Lender in any instance shall not constitute continuing consent, election, approval
or similar action in subsequent instances where such is required.

 

ILLINOIS INSURANCE NOTICE. Unless Borrower
provides Lender with evidence of the insurance coverage required by the Security Agreements, Lender may purchase insurance at Borrower's
expense to protect Lender's interests in the Collateral. This insurance may, but need not, protect Borrower's interests. The coverage
that Lender purchases may not pay any claim that Borrower makes or any claim that is made against Borrower in connection with the Collateral.
Borrower may later cancel any insurance purchased by Lender, but only after providing Lender with evidence that Borrower has obtained
insurance as required by their agreement. If Lender purchases insurance for the Collateral, Borrower will be responsible for the costs
of that insurance, including interest and any other charges Lender may impose in connection with the placement of the insurance, until
the effective date of the cancellation or expiration of the insurance. The costs of the insurance may be added to Borrower's total outstanding
balance or obligation. The costs of the insurance may be more than the cost of insurance Borrower may be able to obtain on Borrower's
own.

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PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD
ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE PROMISSORY NOTE AND ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THE
PROMISSORY NOTE.

 

BORROWER:

 

NANOPHASE TECHNOLOGIES CORPORATION 

 

By:     /s/JESS JANKOWSKI

Name:Jess Jankowski

Its:      President & Chief Executive Officer

 

 

 

 Address:

1319 Marquette Drive

Romeoville, IL 60446

 

 

    3Document

Exhibit 10.1

SUSPENSION OF RIGHTS AGREEMENT

To:                   JPMorgan Chase Bank, N.A., as Administrative Agent

From:               Emerson Electric Co. (the “Company”)

Date:                October 12, 2021

Ladies & Gentlemen

Credit Agreement, dated as of May 23, 2018, by and among the Company, the Subsidiary Borrowers from time to time party thereto (together with the Company, the “Borrowers”), the Lenders and LC Issuers party thereto and JPMorgan Chase Bank, N.A., as the Agent (the “Credit Agreement”).

1     We are writing to you in your capacity as Agent under the Credit Agreement.  Unless otherwise defined in this letter, terms defined in the Credit Agreement have the same meaning when used in this letter.  The term “USD” in this letter shall mean Dollars.  The term “Non-USD Currency” in this letter shall mean collectively or individually:

☒ British Pounds Sterling / GBP

☒ Euros / EUR

☒ Japanese Yen / JPY

2     The Company acknowledges (for itself and for each other Borrower) that from December 31, 2021, panel submissions for all Non-USD Currency LIBOR tenors and 1-week and 2-month USD LIBOR tenors shall cease, following which representative LIBOR rates for such currencies and tenors shall cease to be available (the “2021 LIBOR Cessation”).

3      For good and valuable consideration, including delaying the incurrence of costs required to update the terms of the Credit Agreement in connection with the 2021 LIBOR Cessation, and in lieu of amending or waiving any term of the Credit Agreement, the Company agrees (for itself and for each other Borrower) with effect from October 12, 2021 to suspend its following rights under the Credit Agreement:

a.the Company agrees (for itself and for each other Borrower) that, notwithstanding anything to the contrary in the Loan Documents, the Non-USD Currency shall not be available as an Agreed Currency under the Credit Agreement and no Lender shall be obligated to participate in any Loan or Advance under the Credit Agreement in any Non-USD Currency;

b.     the Company agrees (for itself and for each other Borrower) that, notwithstanding anything to the contrary in the Loan Documents, it shall no longer be permitted to select an Interest Period of one week or two months for any Loan or Advance in USD, in each case, without consent of the Required Lenders under the Credit Agreement (clause (a) and (b) together, the “Suspension of Rights”); and
US-DOCS\126640663.2

c.     the Company agrees (for itself and for each other Borrower) that, if a notice or instruction is given under the Credit Agreement after October 12, 2021 that selects (a) Non-USD Currency as the currency of a Loan or Advance, such notice or instruction shall be deemed to be amended to select USD as the currency of that Loan or Advance, or (b) an Interest Period under the Credit Agreement that uses one (1) week or two (2) month USD LIBOR to calculate interest, such notice or instruction shall be deemed to be amended to select an Interest Period of one (1) month and, in each case, agrees that only such amended notice or instruction will have effect under the Credit Agreement.

4    The Suspension of Rights shall cease to have effect (and all rights of the Borrowers under the Credit Agreement in respect of the terms set out in paragraph 3 above in effect immediately prior to the Suspension of Rights shall be in full force and effect) following notice from each of the Borrowers to the Agent, provided that, such notice shall only be effective if, prior to the date of such notice, amendments to the Credit Agreement to take account of the 2021 LIBOR Cessation and to replace LIBOR with an alternative benchmark with respect to Non-USD Currency Loans and Advances have become effective pursuant to and in accordance with the terms of the Credit Agreement.

5     The Company agrees (for itself and for each other Borrower) to indemnify and hold harmless the Agent and each other Indemnitee for any damage, loss, cost, liability, claim or documented and reasonable out-of-pocket expense whatsoever incurred (A) in connection with a breach, or reasonably in anticipation of a potential breach, of any Borrower’s agreements in paragraphs 3(a) and 3(b) above or (B) giving effect to the instruction of any Borrower in paragraph 3(c) above, unless directly caused by such Indemnitee’s bad faith, willful misconduct or gross negligence as determined by a court of competent jurisdiction by final and nonappealable judgment.

6     This letter is hereby designated as a Loan Document and we acknowledge that this letter will be posted to the Syndtrak site established for Lenders for the Credit Agreement. We acknowledge and agree that each Lender under the Credit Agreement may rely on and shall be a third party beneficiary of this letter.

7    Please sign and return to us the enclosed copy of this notice by way of your acknowledgement to the contents set out in this letter.

8     This letter may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument.

9     This letter has been duly executed and delivered by the Company and constitutes a legal, valid and binding obligation of each of the Borrowers, enforceable in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).

10    The provisions of Section 9.11 and Section 9.12 of the Credit Agreement shall apply, mutatis     mutandis, to this letter.

[Signature Page Follows]
2

Very truly yours,
									
	EMERSON ELECTRIC CO.,	
	as the Company	
			
	By: /s/ James H. Thomasson		
	Name: James H. Thomasson 	
	Title: Vice President and Treasurer	
		

									
	Agreed and accepted by:	
	as the Company	
			
	JPMORGAN CHASE BANK, N.A.,		
	as Agent		
			
	By: /s/ Sean Bodkin		
	Name: Sean Bodkin	
	Title: Vice President	
		
		

Signature Page to Suspension of Rights Agreement

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