Document:

EXHIBIT 10.1

JOINT AMENDMENT TO LOAN AGREEMENT AND

REVOLVING LINE OF CREDIT NOTE

THIS JOINT AMENDMENT TO LOAN AGREEMENT AND REVOLVING LINE OF CREDIT NOTE (the “Amendment”) dated as of June 27, 2011 (the “Effective Date”) is made by and between M&I MARSHALL & ILSLEY BANK, a Wisconsin banking corporation (“Lender”), and AEROSONIC CORPORATION, a Delaware corporation (“Borrower”).

 

WITNESSETH

WHEREAS, Borrower and Lender entered into that certain Loan Agreement dated April 30, 2010 as amended by that certain (i) First Amendment to Loan Agreement dated January 6, 2011; and (ii) Joint Amendment to Loan Agreement and Revolving Line of Credit Note dated April 29, 2011 (as may be further amended, restated, modified or supplemented and in effect from time to time, the “Loan Agreement”).  Capitalized terms not otherwise defined herein shall have the meanings ascribed to such terms in the Loan Agreement.

 

WHEREAS, pursuant to the Loan Agreement, Borrower issued to Lender that certain (i) Revolving Line of Credit Note dated April 30, 2010 in the original principal amount of Four Million and No/100 Dollars ($4,000,000) (as may be amended, restated, modified or supplemented and in effect from time to time, the “Revolving Credit Note”); (ii) Interest Bearing Installment Note dated April 30, 2010 in the original principal amount of Three Million Five Hundred Thousand and No/100 Dollars ($3,500,000) (as may be amended, restated, modified or supplemented and in effect from time to time, the “Real Estate Installment Note”); (iii) Interest Bearing Installment Note dated April 30, 2010 in the original principal amount of One Million Nine Hundred Thousand and No/100 Dollars ($1,900,000) (as may be amended, restated, modified or supplemented and in effect from time to time, the “Term Note”); and (iv) Equipment Line of Credit Note dated April 30, 2010 in the original principal amount of Seven Hundred Thousand and No/100 Dollars ($700,000) (as may be amended, restated, modified or supplemented and in effect from time to time, the “Equipment Note,” collectively with the Revolving Credit Note, Real Estate Installment Note and Term Note, the “Notes”).

WHEREAS, to secure Borrower’s payment of the Notes and Borrower’s performance under the Loan Agreement, Borrower, among other things, executed and delivered to Lender that certain (i) Mortgage, Security Agreement and Assignment of Rents dated April 30, 2010, recorded in the Official Records of Pinellas County, Florida at O.R. Book 16909 Pages 2344-2362 (the “Mortgage”), whereby Borrower granted a security interest in the real and personal property described therein to Lender; (ii) Collateral Assignment of Rents and Leases dated April 30, 2010, recorded in the Official Records of Pinellas County, Florida at O.R. Book 16909 Pages 2363-2369 (as may be amended, restated, modified or supplemented and in effect from time to time, the “Collateral Assignment”); and (iii) Security Agreement dated April 30, 2010 executed by Borrower in favor of Lender (the “Security Agreement”) granting Lender a security interest in certain collateral more particularly described therein.

 

WHEREAS, to further secure Borrower’s payment of the Notes and Borrower’s performance under the Loan Agreement, Avionics Specialties, Inc., a Virginia corporation, and OP Technologies, Inc., an Oregon corporation (each a “Guarantor” and collectively, the “Guarantors”) each executed and delivered an unconditional Guaranty Agreement dated April 30, 2010 guarantying payment and performance by Borrower of all obligations evidenced by the Notes and Loan Agreement (such guarantees collectively referred to herein as the “Guaranty”).

  

  

  

WHEREAS, to secure Guarantor’s obligations and performance under the Guaranty, each Guarantor, among other things, executed and delivered to Lender that certain Security Agreement dated April 30, 2010 (the “Guarantor Security Agreement”) granting Lender a security interest in certain collateral more particularly described therein.  The Loan Agreement, Notes, Mortgage, Collateral Assignment, Security Agreement, Guaranty, Guarantor Security Agreement and any and all documents executed in connection therewith shall be referred to herein as the “Loan Documents.”

 

WHEREAS, as of June 27, 2011, the aggregate outstanding principal balance of the Notes is $8,702,561.00.

 

WHEREAS, the Revolving Credit Note matures on June 28, 2011 and Borrower wishes to extend the maturity date of the Revolving Credit Note, and although Lender is under no obligation to do so, Lender is willing to extend the maturity date of the Revolving Credit Note to June 27, 2012 under the terms and conditions set forth herein.

 

WHEREAS, Borrower has requested that Lender modify the Interest Rate on the Revolving Credit Note by removing the Interest Rate Floor, and although Lender is under no obligation to do so, Lender has agreed to such a modification under the terms and conditions set forth below.

 

NOW, THEREFORE, in consideration of the execution and delivery of this Amendment and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:

 

AGREEMENT

 

Recitals.  The parties hereto hereby affirm all recitals and statements above as true and correct and hereby incorporate such recitals into this Amendment.

 

Amendment to Revolving Credit Note.  Section 3 of the Revolving Credit Note is hereby amended so that, from and after the Effective Date, it shall read as follows:

 

“Maturity Date.  The “Maturity Date” for purposes of this Note means June 27, 2012.”

 

Amendment to Section 2.4 of the Loan Agreement.  Section 2.4 of the Loan Agreement is hereby amended so that, from and after the Effective Date, it shall read as follows:

 

“Interest Rate.  Interest on the Revolving Line of Credit Note shall accrue at a rate per year equal to One Month BBA LIBOR plus 3.00 percentage point(s).”

 

Amendment to Section 11.3 of the Loan Agreement.  Section 11.3 of the Loan Agreement is hereby amended so that, from and after the Effective Date, it shall read as follows:

 

“Interest Rate Calculation Method.  Interest on the outstanding principal balance of the Notes is computed on a 365/360 basis; that is, by applying the ratio of the applicable interest rate over a year of 360 days, multiplied by the outstanding principal balance of the Notes, multiplied by the actual number of days the principal balance is outstanding.  All interest payable under the Notes is computed using this method.  This calculation method results in a higher effective interest rate than the numeric interest rate stated in the Notes.”

  

  

  

Representations, Warranties and Covenants.  By executing this Amendment, Borrower represents and warrants to Lender that (a) there is no event which is, or with notice or lapse of time or both would be, a default under the Loan Agreement, the Notes or the Loan Documents except for those events, if any, that have been disclosed in writing to Lender or waived in writing by Lender, (b) the representations and warranties in the Loan Agreement are true as of the date of this Amendment as if made on the date hereof; (c) the financial statements and other financial information most recently provided to Lender are correct and complete in all material respects, and fairly represent the financial condition of Borrower as at the date thereof and fairly represent the results of the operations of Borrower for the period covered thereby; (d) there has been no material adverse change in the business, properties, or condition, financial or otherwise, of Borrower since the date of such financial statements or other information; (e) this Amendment does not conflict with any law, agreement, or obligation by which Borrower is bound, and (f) this Amendment is within Borrower’s powers, has been duly authorized, and does not conflict with any of Borrower’s organization papers.

 

Reaffirmation.  Except as modified hereby, all of the terms, covenants and conditions of the Loan Agreement, Notes, Mortgage, Collateral Assignment, Security Agreement and all other Loan Documents are ratified, reaffirmed, and confirmed and shall continue in full force and effect.  The Mortgage, Collateral Assignment, Security Agreement, Guaranty, Guarantor Security Agreement and all other security agreements, mortgages and other similar instruments between Borrower and Lender shall continue to secure payment of the Notes.  Should any term or provision of the Loan Agreement or Notes conflict with the terms or provisions contained in this Amendment, the terms and provisions of this Amendment shall be controlling.  This Amendment is not intended to be, nor shall it be construed to be, a novation or an accord and satisfaction of any other obligation or liability of Borrower to Lender.

 

Counterparts.  This Amendment may be executed in any number of counterparts and by the different parties on separate counterparts.  Each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute one and the same agreement.

 

FINAL AGREEMENT. THIS WRITTEN AMENDMENT REPRESENTS THE FINAL AGREEMENT BETWEEN AND AMONG THE PARTIES HERETO AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.

 

[SIGNATURES ON FOLLOWING PAGE]

  

  

  

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the day and year first above written.

	
LENDER:

	 	
BORROWER:

	  	 	  
	
M&I MARSHALL & ILSLEY BANK

	 	
AEROSONIC CORPORATION

	  	 	  
	
By:

	
  

	 	
By:

	
  

	
Its:

	
  

	 	
Its:

	
  

	
Name:

	
  

	 	
Name:

	
  

	  	  	 	  	  
	
By:

	
  

	 	  	  
	
Its:

	
  

	 	  	  
	
Name:

	
  

	 	  	  

Signature page to Joint Amendment to Loan Agreement and Revolving Line of Credit Note

  

  

  

CONSENT AND REAFFIRMATION OF GUARANTORS

 

The undersigned, each a guarantor of Borrower’s obligations to Lender pursuant to the Guaranty executed by the undersigned in favor of Lender, hereby (i) acknowledges and consents to the execution, delivery, and performance by Borrower of the foregoing Joint Amendment to Loan Agreement and Revolving Line of Credit Note; (ii) warrants and covenants to Lender that, except to the extent previously disclosed to Lender in writing, all representations and warranties previously made by Guarantor to Lender are true, complete, and accurate as of the date of this Consent and Reaffirmation of Guarantors; and (iii) reaffirms and agrees that the Guaranty to which the undersigned is party and all other documents and agreements executed and delivered by either the undersigned or Borrower to Lender in connection with the indebtedness represented by the Notes, the Loan Agreement and Loan Documents are all in full force and effect, without defense, offset, or counterclaim, or alternatively, that any such right of defense, offset or counterclaim is hereby expressly waived.

 

IN WITNESS WHEREOF, the undersigned has duly consented to the Joint Amendment to Loan Agreement and Revolving Line of Credit Note by execution and delivery to Lender of this Consent and Reaffirmation of Guarantors as of the day and year first above written.

	  	
GUARANTORS:

	  	  
	  	
AVIONICS SPECIALTIES, INC.

	  	  
	  	
By:

	
  

	  	
Name:

	
  

	  	
Its:

	
  

	  	  
	  	
OP TECHNOLOGIES, INC.

	  	  
	  	
By:

	
  

	  	
Name:

	
  

	  	
Its:

	
  

  

  

  

OUT OF STATE CLOSING AFFIDAVIT

PART I

STATE OF ___________________

COUNTY OF _________________

BEFORE ME, the undersigned, a Notary Public in and for the County and State aforesaid, personally appeared ____________________________, the ____________________________ of Aerosonic Corporation, a Delaware corporation (the “Borrower”), who, being by me first duly sworn, stated:

	
  

	
1.

	
On the date below, in the County of __________, State of New York, the undersigned executed that certain Joint Amendment to Loan Agreement and Revolving Line of Credit Note (the “Amendment”) dated as of the date hereof by and between the Borrower and M&I Marshall & Ilsley Bank (“Lender”).

	
  

	
2.

	
The foregoing document was placed into a Federal Express package in ____________, New York, addressed for delivery to Lender at 770 N. Water St. Milwaukee, WI 53202.

DATED this ___ day of ______________, 2011.

	  	
AEROSONIC CORPORATION

	  	  
	  	
By:

	  
	  	
Its:

	  
	  	
Name:

	  

SWORN to and subscribed before me

this _____ day of ________, 2011.

______________________________ 

Notary Public

Print Name:                                                     

State and County Aforesaid

My Commission Number: ________

My Commission Expires:_________

Type of Identification (Check One):

_____ Personally Known, or

_____ Driver’s License

  

  

  

OUT OF STATE CLOSING AFFIDAVIT

PART II

STATE OF ___________________

COUNTY OF _________________

BEFORE ME, the undersigned, a Notary Public in and for the County and State aforesaid, personally appeared _____________________ and __________________, each officers of M&I Marshall & Ilsley Bank (“Lender”), who, being by me first duly sworn, stated:

	
  

	
1.

	
Lender has this day received delivery of the Amendment in ___________________, ___________________ from Borrower.

DATED this _____ day of ________ 2011.

	
M&I MARSHALL & ILSLEY BANK

	  	
M&I MARSHALL & ILSLEY BANK

	  	  	  
	
By:

	
  

	  	
By:

	
  

	
Its:

	
  

	  	
Its:

	
  

	
Name:

	
  

	
  

	
Name:

	
  

	
SWORN to and subscribed before me

this _____ day of ________ 2011.

______________________________ 

Commissioner of Oaths

Print Name: ____________________

State and County Aforesaid

My Commission Number: ________

My Commission Expires:_________

Type of Identification (Check One):

_____ Personally Known, or

_____ Driver’s License

	
  

	
SWORN to and subscribed before me

this _____ day of ________ 2011.

______________________________ 

Commissioner of Oaths

Print Name: ____________________

State and County Aforesaid

My Commission Number: ________

My Commission Expires:_________

Type of Identification (Check One):

_____ Personally Known, or

_____ Driver’s LicenseAFFILIATE STOCK PURCHASE AGREEMENT

 

THIS AFFILIATE STOCK PURCHASE AGREEMENT (“Agreement”) is made as of the 9th day of September, 2011, by and between MICHAEL GRISCHENKO (“Seller”) and GEORGE DORY (“Purchaser”) as to 3,200,000 shares, of GREENHOUSE SOLUTIONS INC.

 

RECITALS

 

WHEREAS, the Seller is the owner of 3,200,000 restricted shares of common stock of GREENHOUSE SOLUTIONS INC., a NEVADA corporation (the "Company"); and

 

WHEREAS, the Seller proposes to sell to the Purchaser the 3,200,000 restricted shares of common stock of the Company currently owned by the Seller (the “Purchased Shares”), on the terms set forth herein.

 

In consideration of the premises, representations, warranties and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.                      PURCHASE AND SALE AND CLOSING

 

1.1                    The Seller hereby agrees to sell, assign, transfer and deliver to the Purchaser, and the Purchaser hereby agrees to purchase from the Seller, the Purchased Shares for an aggregate purchase price of THIRTY TWO THOUSAND and no/100 U.S. Dollars ($32,000) (the "Purchase Price") payable on the Closing Date (as defined below).  Payment shall be in U.S. Dollars.  An amount of $32,000 in good funds delivered and cleared to Seller’s account (account information as provided by separate communiqué’).

 

1.2                    Closing.  The closing (“Closing”) of the transactions contemplated hereby will occur on, or, before the 9th day of September, 2011 (the “Closing Date”).

 

2.                      REPRESENTATIONS AND WARRANTIES OF THE SELLER

 

2.1                    The Seller warrants, covenants and represents to the Purchaser with the intention of inducing the Purchaser to enter into this Agreement that:

 

	
  

	
(a)

	
immediately prior to and at the Closing, the Seller shall be the legal and beneficial owner of the Purchased Shares and on the Closing Date, the Seller shall transfer to the Purchaser the Purchased Shares free and clear of all liens, restrictions, covenants or adverse claims of any kind or character;

 

	
  

	
(b)

	
the Seller has the legal power and authority to execute and deliver this Agreement and all other documents required to be executed and delivered by the Seller hereunder and to consummate the transactions contemplated hereby; and

 

	
  

	
(c)

	
the Seller is, or has been during the past ninety (90) days, an officer, director, 10% or greater shareholder or "affiliate" of the Company, as that term is defined in Rule 144 promulgated under the United States Securities Act of 1933, as amended (the "Securities Act");

 

  

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(d)

	
to the best of the knowledge, information and belief of the Seller there are no circumstances that may result in any material adverse effect to the Company or the value of the Purchased Shares that are now in existence or may hereafter arise;

 

	
  

	
(e)

	
as of the Closing Date the Seller shall not be indebted to the Company and the Company shall  not be indebted to the Seller;

 

	
  

	
(f)

	
the Seller does not now, nor will it prior to or on the Closing Date, own, either directly or indirectly, or exercise direction or control over any common shares of the Company other than the Purchased Shares;

 

	
  

	
(g)

	
the authorized capital of the Company consists of 75,000,000 common shares, par value $0.001, of which a total of 9,730,000 common shares have been validly issued, are outstanding and are fully paid and non-assessable;

 

	
  

	
(h)

	
no person, firm or corporation has any right, agreement, warrant or option, present or future, contingent or absolute, or any right capable of becoming a right, agreement or option to require the Company to issue any shares in its capital or to convert any securities of the Company or of any other company into shares in the capital of the Company;

 

	
  

	
(i)

	
as of the closing, the liabilities of the Company whether accrued, contingent or otherwise, shall be less than $3,000.00; and the Seller will pay any outstanding liability of the Company with the Purchase Price

 

	
  

	
(j)

	
the Company has good and marketable title to all of its assets, and such assets are free and clear of any financial encumbrances not disclosed in the Financial Statements;

 

	
  

	
(k)

	
the Company has filed all reports required to be filed by it under the Securities Act and the United States Securities Exchange Act of 1934, as amended (the “Exchange Act”), including pursuant to Section 13(a) or 15(d) of the Exchange Act, (the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension.  As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the United States Securities and Exchange Commission (the “Commission”) promulgated thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing;

  

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(l)

	
the Company is not a party to or bound by any agreement or understanding granting registration or anti-dilution rights to any person with respect to any of its equity or debt securities; no person has a right to purchase or acquire or receive any equity or debt security of the Company;

 

	
  

	
(m)

	
the Company is in compliance with the applicable provisions of the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder;

 

	
  

	
(n)

	
contemporaneously herewith, the Seller as a director shall appoint a representative of the Buyer to the Board of Directors of the Company;

 

	
  

	
(o)

	
the Seller and all other officers and directors of the Company shall tendered their resignations as officers and directors of the Company, to be effective on the Closing Date;

 

	
  

	
(p)

	
the Seller agrees to execute and deliver such other documents and to perform such other acts as shall be necessary to effectuate the purposes of this Agreement

 

	
  

	
(q)

	
there are no claims threatened or against or affecting the Company nor are there any actions, suits, judgments, proceedings or investigations pending or, threatened against or affecting the Company, at law or in equity, before or by any Court, administrative agency or other tribunal or any governmental authority or any legal basis for same; and,

 

3.                      REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

 

3.1                    The Purchaser represents and warrants to the Seller that the Purchaser:

 

	
  

	
(a)

	
has the legal power and authority to execute and deliver this Agreement and to consummate the transactions hereby contemplated;

 

	
  

	
(b)

	
understands and agrees that offers and sales of any of the Purchased Shares prior to the expiration of a period of one year after the date of completion of the transfer of the Purchased Shares (the "Restricted Period") as contemplated in this Agreement shall only be made in compliance with the safe harbor provisions set forth in Rule 144, or pursuant to the registration provisions of the Securities Act or pursuant to an exemption therefrom, and that all offers and sales after the Restricted Period shall be made only in compliance with the registration provisions of the Securities Act or an exemption therefrom; and

 

	
  

	
(c)

	
is acquiring the Purchased Shares as principal for the Purchaser's own account, for investment purposes only, and not with a view to, or for, resale, distribution or fractionalisation thereof, in whole or in part, and no other person has a direct or indirect beneficial interest in the Purchased Shares

 

	
3.2

	
The Purchaser agrees not to engage in hedging transactions with regard to the Purchased Shares accept in compliance with the Securities Act.

   

  

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4.                      INDEMNIFICATION

 

4.1                    The Seller hereby agrees to indemnify and hold harmless the Purchaser and the Company against any losses, claims, damages or liabilities to which the Purchaser or the Company may become subject insofar as such losses, claims, damages or liabilities arise out of or are based upon taxes, real property leases or equipment leases payable by or for which the Company has the primary liability; and in particular, any misrepresentation of the Seller as contained herein.  Damages of the Purchaser are not limited to the amount of the Seller received hereunder but will include the Purchaser’s or Company’s actual cost of any claim and full costs of negotiations and for defence.

5.                      POST-CLOSING SEC REPORTS

 

5.1           Except for any Form 3, 4 or 5 to be filed on behalf of the Seller, the Purchaser hereby agrees that it shall file any and all necessary SEC Reports, including but not limited to any Schedule 13D, 8-K or any other SEC Report.

 

6.                      MISCELLANEOUS

 

6.1                    The parties hereto acknowledge that they have obtained independent legal advice with respect to this Agreement and acknowledge that they fully understand the provisions of this Agreement.

 

6.2                    Unless otherwise provided, all dollar amounts referred to in this Agreement are in United States dollars.

 

6.3                    There are no representations, warranties, collateral agreements, or conditions concerning the subject matter of this Agreement except as herein specified.

 

6.4                    This Agreement will be governed by and construed in accordance with the laws of the State of NEVADA. The parties hereby attorn to the jurisdiction of the courts CLARK County, NEVADA with respect to any legal proceedings arising from this Agreement.

 

6.5                    The representations and warranties of the parties contained in this Agreement shall survive the closing of the purchase and sale of the Purchased Shares and shall continue in full force and effect for a period of one year.

 

6.7                    This Agreement may be executed in several counterparts, each of which will be deemed to be an original and all of which will together constitute one and the same instrument.

 

6.8                    Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Agreement as of the date set forth on page one of this Agreement.

   

  

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Each of the parties hereto has executed this Agreement to be effective as of the day and year first above written.

 

SELLER:

 

	  	/s/ Michael Grischenko
	  	
MICHAEL GRISCHENKO

 

PURCHASER:

  

	  	/s/ George Dory
	  	
George Dory

   

  

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