Document:

Exhibit
10.1

FIFTH AMENDMENT TO REVOLVING CREDIT

AND TERM LOAN AGREEMENT

This Fifth Amendment to Revolving Credit and Term Loan Agreement is
dated as of September 5, 2007, 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, and
September 28, 2006 (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 23, 2008; 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, 2007” shall now mean and
read “September 23, 2008”.

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 

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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.

	
  

  	
   

  	
  “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

  

 

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Schedule “1.1”

(Renewal Note)

 3Exhibit
10.2

PROMISSORY NOTE

	
  $7,500,000

  	
   

  	
  September 5, 2007

  
	
   

  	
   

  	
  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 28, 2008.

b.                                      Interest.  Interest shall be payable on the first day of each month, commencing
the 1st day of September, 2007, 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

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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.

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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.

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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 28, 2006, from Maker to
Lender.

	
  

  	
   

  	
  XETA TECHNOLOGIES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
  /s/ Robert B. Wagner

  
	
   

  	
   

  	
   

  	
   

  	
  Robert B. Wagner, Chief Financial Officer

  

 

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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

  	
   

  	
  /s/ Robert B. Wagner

  
	
   

  	
   

  	
   

  	
   

  	
  Robert B. Wagner, Chief
  Financial Officer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date Received by Bank of
  Oklahoma:

  	
   

  	
  September 10, 2007

  

 

 5

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