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Exhibit 10.22    
  

Silicon Valley Bank  

 
 

Amendment to Loan Documents    
  

	Borrower:	 	Hathaway Corporation

    Hathaway Systems Corporation

    Hathaway Process Instrumentation Corporation

    Hathaway Motion Control Corporation

    Hathaway Industrial Automation, Inc.

    Computer Optical Products, Inc.

    EMOTEQ Corporation
	

Date:	
 	

July 10, 2002

        THIS AMENDMENT TO LOAN DOCUMENTS is entered into between SILICON VALLEY BANK ("Silicon") and the borrower named above (jointly and
severally, "Borrower"). 

        The
Parties agree to amend the Loan and Security Agreement between them, dated May 7, 1998 (the "Loan Agreement"), as follows, effective as of the date hereof. (Capitalized terms
used but not defined in this Amendment shall have the meanings set forth in the Loan Agreement.) 

        Borrower
has advised Silicon that pursuant to the terms and conditions of that certain Stock Purchase Agreement dated July 8, 2002 among Motor Products—Owosso
Corporation ("MP—Owosso"), Motor Products—Ohio Corporation ("MP—Ohio"), Owosso Corporation ("Owosso") and Hathaway Motion Control Corporation ("HMCC") (the
"Acquisition Agreement"), HMCC will acquire all of the issued and outstanding capital stock of each of MP—Owosso and MP—Ohio (the "Acquisition"). 

        As
a result of the Acquisition, the following are to occur: (i) Owosso will sell and transfer to HMCC all of the issued and outstanding capital stock of each of
MP—Owosso and MP—Ohio, (ii) HMCC will pay to Owosso $11,500,000 in cash and issue in favor of Owosso a promissory note in the original principal amount of $300,000 (the
"Note"), (iii) the Note will be guaranteed by the unsecured guaranty of Hathaway Corporation in favor of Owosso, and (iv) each of MP—Owosso and MP—Ohio
will become a wholly-owned subsidiary of HMCC. 

        The
Borrower is prohibited from entering into the Acquisition pursuant to the terms of Section 5.5(ii) of the Loan Agreement, absent compliance with the terms of
Section 5 of the Loan Agreement. 

        1.    Limited Waiver re Acquisition.    Silicon and Borrower agree that the prohibition set forth in
Section 5.5(ii) of the Loan Agreement is hereby waived with respect to the Acquisition only, and that Silicon hereby consents to the Acquisition in accordance with the terms described
above subject to Borrower's sale of its power and process business (excluding the calibrator product line) as provided for in that certain Asset Purchase Agreement dated May 17, 2002 by and
between Hathaway Systems Corporation, Hathaway Industrial Automation, Inc., Hathaway Process Instrumentation Corporation, Hathaway Systems, Ltd., Hathaway Corporation, Qualitrol Power
Products, LLC and Danaher UK Industries Limited and Borrower's receipt therefrom of proceeds in the amount of at least $5,000,000. The parties hereto further acknowledge that notwithstanding anything
to the contrary in the Acquisition Agreement, Silicon does not hereby consent to the granting of any lien or security interest by Borrower to Owosso in the Collateral. It is also understood by the
parties hereto, however, that such waivers do 

1

 

not constitute a waiver of any other provision or term of the Loan Agreement or any related document, nor an agreement to waive in the future these covenants or any other provision or term of the
Loan Agreement or any related document and that nothing herein is to be deemed a waiver of Silicon's right to require that MP—Owosso and MP—Ohio be made
co-Borrowers under the Loan
Agreement (if deemed necessary by Silicon Valley Bank in its discretion) and to require MP—Owosso and MP—Ohio to execute all documents related thereto deemed necessary by
Silicon. 

        2.    Modified Section 6.1.    Section 6.1 of the Loan Agreement is hereby amended in its entirety to
read as follows: 

"6.1 Maturity Date. This Agreement shall continue in full force and effect until the maturity date set forth on the Schedule (the "Maturity Date"),
subject to Section 6.3 below." 

        3.    Modified Maturity Date.    Section 4 of the Schedule to Loan and Security Agreement is hereby amended to
read as follows: 

"4. MATURITY DATE

(Section 6.1):
September 10, 2002, subject to early termination as provided in Section 6.2 above." 

        4.    Modified Definition of Eligible Inventory.    The definition of "Eligible Inventory" which currently reads as
follows: 

"Eligible Inventory" [NOT APPLICABLE]." 

is
hereby amended to read as follows: 

"Eligible Inventory" means Inventory which Silicon, in its sole judgment, deems eligible for borrowing, based on such considerations as Silicon may from
time to time deem appropriate. Without limiting the fact that the determination of which Inventory is eligible for borrowing is a matter of Silicon's discretion, Inventory which does not meet the
following requirements will not be deemed to be Eligible Inventory: Inventory which (i) consists of raw materials and finished goods, in good, new and salable condition which is not perishable,
not obsolete or unmerchantable, and is not comprised of work in process, packaging materials or supplies; (ii) meets all applicable governmental standards; (iii) has been manufactured in
compliance with the Fair Labor Standards Act; (iv) conforms in all respects to the warranties and representations set forth in this Agreement; (v) is at all times subject to Silicon's
duly perfected, first priority security interest; and (vi) is situated at a one of the locations set forth on the Schedule." 

        5.    Modified Credit Limit.    Section 1 of the Schedule, entitled "Credit Limit", is hereby amended to read
as follows: 

"1. CREDIT LIMIT  

(Section 1.1): An amount not to exceed the lesser of a total of $3,000,000 at any one time outstanding (the "Maximum Credit Limit") or the sum of
(a) and (b) below: 

        (a)  80% of the amount of Borrower's Eligible Receivables (as defined in Section 8 above),  plus

        (b)  an
amount (the "Inventory Loans") not to exceed the lesser of: 

        (1)  25% of the value of Borrower's Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost
or market value and determined on a first-in, first-out basis, or 

2

 

        (2)  an
amount equal to 30% of the Borrower's Eligible Receivables (as defined in Section 8 above), or 

        (3)  $500,000.

        As
used in this Agreement, "Loans" include the Inventory Loans. 

Letter of Credit Sublimit  

(Section 1.5): $500,000."

        6.    Amendment of Streamline Facility Agreement.    In the Streamline Facility Agreement, the paragraph immediately
following paragraph 2, which currently reads as follows 

"Until
March 31, 2000, the foregoing provisions (the "Streamline Provisions") shall remain in effect so long as the aggregate availability under the Credit Limit does not fall below $500,000
(the "Minimum Availability"), and, if the Minimum Availability does drop below $500,000, Borrower must repay the Loans within 5 business days thereof in an amount necessary to raise the Minimum
Availability above $500,000. Beginning April 1, 2000, and continuing thereafter, the Streamline Provisions shall remain in effect so long as the aggregate availability under the Credit Limit
does not fall below $750,000 (the "Minimum Availability"), and, if the Minimum Availability does drop below $750,000, Borrower must repay the Loans within 5 business days thereof in an amount
necessary to raise the Minimum Availability above $750,000. If Borrower at any time fails to repay the Loans as set forth above in this paragraph, then at Silicon's sole discretion, the standard
reporting requirements as set forth in the Loan Agreement shall immediately go into effect. Notwithstanding the foregoing, Silicon may, in its good faith business judgment, modify the frequency or
format of the foregoing reporting requirements at any time." 

is
hereby deleted. 

        7.    Modified Covenant Regarding Banking Relationship.    The covenant entitled "Banking Relationship" set forth in
Section 9 of the Schedule to Loan and Security Agreement which currently reads as follows: 

	"1.
	Banking Relationship. Borrower shall at all times maintain its primary banking relationship with Silicon." 

is
hereby amended to read as follows: 

	"1.
	Banking Relationship. Borrower shall at all times maintain its primary banking relationship with Silicon. Without limiting the
generality of the foregoing, Hathaway Corporation shall, at all times, maintain not less than 85% of its total cash and investments on deposit with Silicon. As to any Deposit Accounts and investment
accounts maintained with another institution, Borrower shall cause such institution, within 30 days after the date of this Agreement, to enter into a control agreement in form acceptable to
Silicon in its good faith business judgment in order to perfect Silicon's first-priority security interest in said Deposit Accounts and investment accounts." 

        8.    Dissolution of Tate Integrated Systems, Inc.    Borrower represents and warrants to Silicon that Tate
Integrated Systems, Inc. was dissolved pursuant to a Consent to Action by its Board of Directors dated December 20, 1999 and a Consent to Action by its Sole Shareholder dated
December 20, 1999 and the Articles of Dissolution of Tate Integrated Systems, Inc. filed in the Office of the Colorado Secretary of State on February 17, 2000. Borrower represents
and warrants that Tate Integrated Systems, Inc. does
not and shall not carry on any business except as is appropriate to wind up and liquidate its business and affairs. 

3

 

        9.    Representations True.    Borrower represents and warrants to Silicon that all representations and warranties set
forth in the Loan Agreement, as amended hereby, are true and correct. 

        10.    General Provisions.    This Amendment, the Loan Agreement, any prior written amendments to the Loan Agreement
signed by Silicon and Borrower, and the other written documents and agreements between Silicon and Borrower set forth in full all of the representations and agreements of the parties with respect to
the subject matter hereof and supersede all prior discussions, representations, agreements and understandings between the parties with respect to the subject hereof. Except as herein expressly
amended, all of the terms and provisions of the Loan Agreement, and all other documents and agreements between Silicon and Borrower shall continue in full force and effect and the same are hereby
ratified and confirmed. 

	 Borrower:	 	Silicon:
	

HATHAWAY CORPORATION	
 	

SILICON VALLEY BANK
	

By	
 	

	
 	

By	
 	

	 	 	President or Vice President	 	Title	 	

	

By	
 	

 Secretary or Ass't Secretary	
 	

 	
 	

 
	

Borrower:	
 	

Borrower:
	

HATHAWAY SYSTEMS

CORPORATION	
 	

HATHAWAY PROCESS

INSTRUMENTATION CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary

4

 

	

Borrower:	
 	

Borrower:
	

HATHAWAY MOTION CONTROL

CORPORATION	
 	

HATHAWAY INDUSTRIAL

AUTOMATION, INC.
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary
	

Borrower:	
 	

Borrower:
	

COMPUTER OPTICAL PRODUCTS, INC.	
 	

EMOTEQ CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary

GUARANTOR'S CONSENT  

        The undersigned acknowledges that his consent to the foregoing Agreement is not required, but the undersigned nevertheless does hereby consent to the foregoing
Agreement and to the documents and agreements referred to therein and to all future modifications and amendments thereto, and any termination thereof, and to any and all other present and future
documents and agreements between or among the foregoing parties. Nothing herein shall in any way limit any of the terms or provisions of the Continuing Guaranty of the undersigned, all of which are
hereby ratified and affirmed. 

	 Guarantor:	 	Guarantor:
	

HATHAWAY CORPORATION	
 	

HATHAWAY SYSTEMS CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary

5

 

	

Guarantor:	
 	

Guarantor:
	

HATHAWAY PROCESS

INSTRUMENTATION CORPORATION	
 	

HATHAWAY MOTION CONTROL

CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary
	

Guarantor:	
 	

Guarantor:
	

HATHAWAY INDUSTRIAL

AUTOMATION, INC.	
 	

COMPUTER OPTICAL PRODUCTS, INC.
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary
	

Guarantor:	
 	

 	
 	

 
	

EMOTEQ CORPORATION	
 	

 	
 	

 
	

By	
 	

 President or Vice President	
 	

 	
 	

 
	

By	
 	

 Secretary or Ass't Secretary	
 	

 	
 	

 

6

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Exhibit 10.22

Amendment to Loan DocumentsQuickLinks
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Exhibit 10.23    
  

Silicon Valley Bank  

Amendment to Loan Documents  

	Borrower:	 	Hathaway Corporation

    Hathaway Systems Corporation

    Hathaway Process Instrumentation Corporation

    Hathaway Motion Control Corporation

    Hathaway Industrial Automation, Inc.

    Computer Optical Products, Inc.

    EMOTEQ Corporation

    Motor Products—Ohio Corporation

    Motor Products—Owosso Corporation
	

Date:	
 	

July     , 2002

        THIS AMENDMENT TO LOAN DOCUMENTS is entered into between SILICON VALLEY BANK ("Silicon") and the borrower named above (jointly and
severally, "Borrower"). 

        The
Parties agree to amend the Loan and Security Agreement between them, dated May 7, 1998 (as amended from time to time, the "Loan Agreement"), as follows, effective as of the
date hereof. (Capitalized terms used but not defined in this Amendment shall have the meanings set forth in the Loan Agreement.) 

        1.    Modified Credit Limit.    Section 1 of the Schedule, entitled "Credit Limit", is hereby amended to read
as follows: 

"1. CREDIT LIMIT

(Section 1.1):
An amount not to exceed the sum of 1 and 2 below: 

        1.    Revolving Loans. An amount not to exceed the lesser of (i) a total of  $4,000,000 at any one time outstanding (the "Maximum Credit Limit") or (ii) the sum of
(a) and (b) below: 

        (a)  80% of the amount of Borrower's Eligible Receivables (as defined in Section 8 above),  plus

        (b)  an
amount (the "Inventory Loans") not to exceed the lesser of: 

        (1)  25% of the value of Borrower's Eligible Inventory (as defined in Section 8 above), calculated at the lower of cost
or market value and determined on a first-in, first-out basis, or 

        (2)  an
amount equal to 30% of the Borrower's Eligible Receivables (as defined in Section 8 above), or 

        (3)  $750,000.

Revolving
Loans will be made to each Borrower based on the Eligible Receivables and Eligible Inventory of each Borrower, subject to the Maximum Credit Limit set forth above for all Revolving Loans to
all Borrowers combined. 

plus  

1

 

         2.    Term Loans. The unpaid principal balance from time to time outstanding of the term loan (the "Term Loan") being made concurrently
herewith in an
amount equal to the lesser of (i) $1,750,000or (ii) 60% of the net book value of Borower's
Equipment deemed eligible by Silicon in its sole discretion. 

The
Term Loan shall be repaid as provided for herein. The Term Loan cannot be repaid and re-borrowed. 

The
Term Loan will be made to each Borrower based on the eligible Equipment of each Borrower, subject to the maximum amount set forth above for all Term Loans to all Borrowers combined. 

As
used in this Agreement, "Loans" includes the Revolving Loans and the Term Loans. 

Letter of Credit Sublimit

(Section 1.5):  $500,000."

        2.    Modified Interest Rate.    Section 2 of the Schedule to Loan and Security Agreement, entitled "2.
INTEREST," is hereby amended to read as follows: 

2. INTEREST.

Interest Rate (Section 1.2): 

With
respect to the Revolving Loans: 

A
rate equal to the "Prime Rate" in effect from time to time, plus 1.5% per annum. The foregoing interest rate shall be reduced by 0.50% per annum at
such time as, and for so long as, Borrower has achieved a Quick Ratio (as defined below) for two consecutive fiscal quarters (the first of which may not be earlier than the fiscal quarter ending
September 30, 2002) greater than or equal to 1.20 to 1 but less than 1.50 to 1, and shall be reduced by an additional 0.25% per annum at such time as, and for so long as, Borrower has achieved
a Quick Ratio for two consecutive fiscal quarters (the first of which may not be earlier than the fiscal quarter ending September 30, 2002) of greater than or equal to 1.50 to 1. The foregoing
rate reduction(s) shall go into effect as of the date of the second consecutive quarter's financial statements showing that Borrower is entitled to such rate reduction(s). If the interest rate is so
reduced, based on financial statements as of a certain date and thereafter Borrower's Quick Ratio is no longer at least 1.50 to 1, then the interest rate shall be increased by 0.25% per annum, and if
the Borrower's Quick Ratio is no longer at least 1.20 to 1, then the interest rate shall be increased by an additional 0.50% per annum, which rate increase(s) shall go into effect as of the date of
the financial statements showing that Borrower is no longer entitled to the rate reduction(s). Such reduction(s) and increase(s) may be made throughout the term of this Agreement. 

With
respect to the Term Loan: 

A
rate equal to the U.S. Treasury note yield to maturity for a term of 36 months as quoted in The Wall Street Journal on the day the Term Loan is advanced, plus  5.50% per annum. The foregoing
interest rate shall be reduced by 0.50% per annum at such time as, and for so long as, Borrower has achieved a Quick
Ratio (as defined below) for two consecutive fiscal quarters (the first of which may not be earlier than the fiscal quarter ending September 30, 2002) greater than or equal to 1.20 to 1 but
less than 1.50 to 1, and shall be reduced by an additional 0.25% per annum at such time as, and for so long as, Borrower has achieved a Quick Ratio for two consecutive fiscal quarters (the first of
which may not be earlier than the fiscal quarter ending September 30, 2002) of greater 

2

 

than or equal to 1.50 to 1. The foregoing rate reduction(s) shall go into effect as of the date of the second consecutive quarter's financial statements showing that Borrower is entitled to such rate
reduction(s). If the interest rate is so reduced, based on financial statements as of a certain date and thereafter Borrower's Quick Ratio is no longer at least 1.50 to 1, then the interest rate shall
be increased by 0.25% per annum, and if the Borrower's Quick Ratio is no longer at least 1.20 to 1, then the interest rate shall be increased by an additional 0.50% per annum, which rate increase(s)
shall go into effect as of the date of the financial statements showing that Borrower is no longer entitled to the rate reduction(s). Such reduction(s) and increase(s) may be made throughout the term
of this Agreement. 

With
respect to all Loans: 

Notwithstanding
the foregoing, in no event shall an interest rate reduction go into effect if, at the date it is to go into effect, an Event of Default has occurred. 

As
used above, "Quick Ratio" shall mean the ratio of Borrower's cash and cash equivalents, in each case held at Silicon, to Borrower's current liabilities determined in accordance with GAAP. 

With
respect to all Loans, interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed. "Prime Rate" means the rate announced from time to time
by Silicon as its "prime rate;" it is a base rate upon which other rates charged by Silicon are based, and it is not necessarily the best rate available at Silicon. The interest rate applicable to the
Obligations shall change on each date there is a change in the Prime Rate. 

Minimum Monthly Interest  

(Section 1.2): Not Applicable." 

        3.    Modified Unused Line Fee.    The Unused Line Fee set forth in Section 3 of the Schedule to Loan and
Security Agreement is hereby amended to read as follows: 

"Unused
Line Fee: In the event, in any calendar month (or portion thereof at the beginning and end of the term hereof), the average daily principal balance of the Revolving Loans outstanding during
the month is less than the amount of the Maximum Credit Limit, Borrower shall pay Silicon an unused line fee in an amount equal to 0.375% per annum on
the difference between the amount of the Maximum Credit Limit and the average daily principal balance of the Revolving Loans outstanding during the month, which unused line fee shall be computed and
paid monthly, in arrears, on the first day of the following month." 

        4.    Modified Maturity Date.    Section 4 of the Schedule to Loan and Security Agreement is hereby amended to
read as follows: 

"4. MATURITY DATE  

(Section 6.1): With respect to the Revolving Loans: September 10, 2003, subject to early termination as provided in Section 6.2
above. 

With
respect to the Term Loan: The outstanding principal balance of the Term Loan shall be repaid by Borrower to Silicon in forty-two (42) equal monthly payments of principal,
commencing on August 1, 2002 and continuing on the first day of each subsequent month until the earlier of the following dates: (i) the date the Term Loan has been indefeasibly paid in
full, (ii) the date the Revolving Loans are terminated, or (iii) the date this Agreement terminates by its terms or is terminated by either party in accordance with its terms. On the
earlier to occur of the foregoing dates, the entire unpaid principal balance of the Term Loan, 

3

 

plus all accrued and unpaid interest thereon, shall be due and payable. Interest on the Term Loan shall be payable monthly as provided for in Section 1.2 of this Agreement." 

        5.    Modified Financial Covenants.    Section 5 of the Schedule to Loan and Security Agreement, entitled "5.
FINANCIAL COVENANTS (Section 5.1)," is hereby amended to read as follows: 

5. FINANCIAL COVENANTS  

(Section 5.1): Borrower shall, on a consolidated basis, comply with all of the following covenants. Compliance shall be determined as of the end of each month, except as otherwise specifically
provided below: 

Minimum Tangible Net Worth: Borrower shall maintain a Tangible Net Worth of not less than $3,500,000plus 50% of Borrower's after tax
income from the Power Division Sale (as defined below) plus 50% of
Borrower's quarterly net income from the immediately preceding fiscal quarter (commencing with the fiscal quarter ending September 30, 2002). In no event shall the Minimum Tangible Net Worth
requirement be decreased. 

Profitability: Borrower shall achieve profitability of not less than the following: 

For
the month ending July 31, 2002: <$1,100,000>; and 

For
the month ending August 31, 2002: <$450,000>; and 

For
the month ending September 30, 2002: $0.00. 

Debt Service Coverage: Borrower shall maintain Debt Service Coverage (as defined above), on a rolling 3 month basis ending as of the dates set
forth below (the "Period"), of not less than the following: 

For
the Period ending October 31, 2002: 1.75 to 1.0; and 

For
the Period ending November 30, 2002 and each Period ending as of the end of each month thereafter: 2.0 to 1.0. 

Definitions. For purposes of the foregoing financial covenants, the following terms shall have the following meanings: 

"<
>" shall mean a negative figure or loss, as applicable. 

"Current
assets", "current liabilities" and "liabilities" shall have the meanings ascribed to them by generally accepted accounting principles. 

"Debt
Service Coverage" shall mean the ratio of (a) Borrower's net income before taxes plus Borrower's interest, depreciation and other non-cash amortization expenses and other
non-cash expenses, plus or minus (as appropriate) any decrease or increase in capitalized software, all determined in accordance with generally accepted accounting principles, consistently
applied, to (b) Borrower's obligations relating to payment of interest and current maturities of principal on Borrower's outstanding indebtedness and capitalized leases, all determined in
accordance with generally accepted accounting principles, consistently applied. 

"Tangible
Net Worth" shall mean the excess of total assets over total liabilities, determined in accordance with generally accepted accounting principles, with the following adjustments: 

        (A)  there
shall be excluded from assets: (i) notes, accounts receivable and other obligations owing to the Borrower from its officers or other Affiliates, and
(ii) all assets which would be classified as intangible assets under generally accepted accounting principles, including without limitation goodwill, licenses,
patents, trademarks, trade names, copyrights, capitalized software and organizational costs, licenses and franchises 

4

 

        (B)  there
shall be excluded from liabilities: all indebtedness which is subordinated to the Obligations under a subordination agreement in form specified by Silicon or by
language in the instrument evidencing the indebtedness which is acceptable to Silicon in its discretion." 

        6.    Modified Covenant Regarding Banking Relationship.    The covenant entitled "Banking Relationship" set forth in
Section 9 of the Schedule to Loan and Security Agreement is hereby amended to read as follows: 

	"1.
	Banking Relationship. Borrower shall at all times maintain its primary banking relationship with Silicon. Without limiting the
generality of the foregoing, each of Hathaway Corporation, Motor Products—Ohio Corporation and Motor Products—Owosso Corporation shall, at all times, maintain not less than 85%
of their respective total cash and investments on deposit with Silicon. As to any Deposit Accounts and investment accounts maintained with another institution, Borrower shall cause such institution,
within 30 days after the date of this Agreement, to enter into a control agreement in form acceptable to Silicon in its good faith business judgment in order to perfect Silicon's first-priority
security interest in said Deposit Accounts and investment accounts." 

        7.    Modified Early Termination Fee.    Section 6.2 of the Loan Agreement is hereby amended in its entirety to
read as follows: 

6.2 Early Termination. This Agreement may be terminated prior to the Maturity Date as follows: (i) by Borrower, effective
three Business Days after written notice of termination is given to Silicon; or (ii) by Silicon at any time after the occurrence of an Event of Default, without notice, effective immediately.
If this Agreement is terminated by Borrower or by Silicon under this Section 6.2 prior to January     , 2004 [18 months from date of
Amendment], Borrower shall pay to Silicon a termination fee in an amount equal to one percent (1.0%) of the sum of (a) the Maximum Credit Limit plus
(b) the unpaid principal balance of the Term Loan, provided that no termination fee shall be charged if the credit facility hereunder is replaced with a new facility from another division of
Silicon Valley Bank. The termination fee shall be due and payable on the effective date of termination and thereafter shall bear interest at a rate equal to the highest rate applicable to any of the
Obligations. 

        8.    Sale of Power Division a Condition Precedent.    The effectiveness of this Amendment is hereby subject to the
sale of Borrower's power division assets as more fully set forth in that certain Asset Purchase Agreement by and among Qualitrol Power Products, LLC, Danaher UK Industries Limited, Hathaway Systems
Corporation, Hathaway Industrial Automation, Inc., Hathaway Process Instrumentation
Corporation, Hathaway Systems, Ltd. and Hathaway Corporation dated May 17, 2002 and consented to by Silicon pursuant to that certain Consent dated July    , 2002 (the "Power
Division Sale"). 

        9.    Fee.    In consideration for Silicon entering into this Amendment, Borrower shall concurrently pay Silicon a fee
in the amount of $21,562, which shall be non-refundable and in addition to all interest and other fees payable to Silicon under the Loan Documents. Silicon is authorized to charge said fee
to Borrower's loan account. 

        10.    Representations True.    Borrower represents and warrants to Silicon that all representations and warranties
set forth in the Loan Agreement, as amended hereby, are true and correct. 

        11.    General Provisions.    This Amendment, the Loan Agreement, any prior written amendments to the Loan Agreement
signed by Silicon and Borrower, and the other written documents and agreements between Silicon and Borrower set forth in full all of the representations and agreements of the parties with respect to
the subject matter hereof and supersede all prior discussions, representations, agreements and understandings between the parties with respect to the subject hereof. Except as herein expressly
amended, all of the terms and provisions of the Loan Agreement, and all 

5

 

other documents and agreements between Silicon and Borrower shall continue in full force and effect and the same are hereby ratified and confirmed. 

	 Borrower:	 	Silicon:
	

HATHAWAY CORPORATION	
 	

SILICON VALLEY BANK
	

By	
 	

	
 	

By	
 	

	 	 	President or Vice President	 	Title	 	

	

By	
 	

 Secretary or Ass't Secretary	
 	

 	
 	

 
	

Borrower:	
 	

Borrower:
	

HATHAWAY SYSTEMS

CORPORATION	
 	

HATHAWAY PROCESS

INSTRUMENTATION CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary
	

Borrower:	
 	

Borrower:
	

HATHAWAY MOTION CONTROL

CORPORATION	
 	

HATHAWAY INDUSTRIAL

AUTOMATION, INC.
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary

6

 

	

Borrower:	
 	

Borrower:
	

COMPUTER OPTICAL PRODUCTS, INC.	
 	

EMOTEQ CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary
	

Borrower:	
 	

Borrower:
	

MOTOR PRODUCTS—OHIO CORPORATION	
 	

MOTOR PRODUCTS—OWOSSO CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary

7

 
GUARANTOR'S CONSENT  

        The undersigned acknowledges that his consent to the foregoing Agreement is not required, but the undersigned nevertheless does hereby consent to the foregoing
Agreement and to the documents and agreements referred to therein and to all future modifications and amendments thereto, and any termination thereof, and to any and all other present and future
documents and agreements between or among the foregoing parties. Nothing herein shall in any way limit any of the terms or provisions of the Continuing Guaranty of the undersigned, all of which are
hereby ratified and affirmed. 

	 Guarantor:	 	Guarantor:
	

HATHAWAY CORPORATION	
 	

HATHAWAY SYSTEMS CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary
	

Guarantor:	
 	

Guarantor:
	

HATHAWAY PROCESS

INSTRUMENTATION CORPORATION	
 	

HATHAWAY MOTION CONTROL

CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary
	

Guarantor:	
 	

Guarantor:
	

HATHAWAY INDUSTRIAL

AUTOMATION, INC.	
 	

COMPUTER OPTICAL PRODUCTS, INC.
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary

8

 

	

Guarantor:	
 	

 	
 	

 
	

EMOTEQ CORPORATION	
 	

MOTOR PRODUCTS—OHIO CORPORATION
	

By	
 	

 President or Vice President	
 	

By	
 	

 President or Vice President
	

By	
 	

 Secretary or Ass't Secretary	
 	

By	
 	

 Secretary or Ass't Secretary
	

Guarantor:	
 	

 	
 	

 
	

MOTOR PRODUCTS—OWOSSO CORPORATION	
 	

 	
 	

 
	

By	
 	

 President or Vice President	
 	

 	
 	

 
	

By	
 	

 Secretary or Ass't Secretary	
 	

 	
 	

 

9

QuickLinks

Exhibit 10.23

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00043-of-00352.parquet"}]]