Document:

Exhibit
10.3

 

AMENDMENT NO. 9

 

Amendment No. 9 (this “Amendment”), dated as of March 26,
2010, among FH Partners LLC, a Texas limited liability company (the “Borrower”)
and the financial institutions (each a “Lender” and collectively, the “Lenders”)
party to that certain Revolving Credit Agreement, dated as of August 26,
2005 (as heretofore amended or otherwise modified, the “Loan Agreement”), among
the Borrower, the Lenders and Bank of Scotland plc, as Agent for the Lenders
(the “Agent”).

 

W  I  T  N  E  S
S  E  T  H :

 

WHEREAS, the Borrower and
the Lenders have agreed to extend the maturity date of the Loan Agreement; and

 

WHEREAS, the Lenders and the
Borrower desire to confirm the foregoing on and subject to the terms hereof;

 

NOW THEREFORE, it is agreed:

 

1.                                       Definitions. All the capitalized terms used herein
which are defined in the Loan Agreement shall have the same meanings when used
herein unless otherwise defined in the recitals to this Amendment.

 

2.                                       Effect of Amendment. 
As used in the Loan Agreement (including all Exhibits thereto), the
Notes and the other Loan Documents and all other instruments and documents
executed in connection with any of the foregoing, on and subsequent to the
Amendment Closing Date, any reference to the Loan Agreement shall mean the Loan
Agreement as amended hereby.

 

3.                                       Amendment.  Annex 1 to
the Loan Agreement is hereby amended by restating in its entirety the
definition of “Maturity Date” therein to read as follows:

 

“Maturity Date” shall mean April 1, 2011.

 

4.                                       Representations. 
To induce the Lenders to execute this Amendment, the Borrower hereby
represents and warrants to the Lenders (which representations and warranties
are made as of the date hereof and as of the Amendment Closing Date) and agrees
for the benefit of the Lenders (which representations, warranties and
agreements shall survive the execution, delivery and effectiveness of this
Amendment) as follows:

 

(a)                                  No Default or Event of Default exists
nor, after giving effect to the consents contained herein, will any Default or
Event of Default arise.

 

(b)                                 Each representation and warranty made by
the Borrower in the Loan Documents is true and correct.

 

1

 

(c)                                  The execution and delivery of this
Amendment by the Borrower and the consummation of the transactions contemplated
herein have been duly authorized by all necessary corporate action.

 

(d)                                 This Amendment is the legal, valid and
binding obligation of the Borrower, enforceable in accordance with its terms
subject, as to enforceability, to applicable bankruptcy, insolvency,
reorganization and similar laws affecting the enforcement of creditors’ rights
generally and to general principles of equity (regardless of whether such
enforcement is considered in a proceeding in equity or at law).

 

(e)                                  No Material Adverse Change has occurred
since August 26, 2005.

 

5.                                       Effectiveness. 
This Amendment shall become effective as of the date hereof when each of
the following conditions (the first date on which all such conditions have been
so satisfied (or waived) is herein referred to as the “Amendment Closing
Date”) has been fulfilled to the satisfaction of the Agent (or waived by
the Agent in its sole discretion).

 

(a)                                  Signed Copies. 
The Borrower, the Lenders and the Agent shall have executed a copy
hereof and delivered the same to the Agent at 1095 Avenue of the Americas, New
York, New York 10036 (Attention:  Loan
Administration) or such other place directed by the Agent.

 

(b)                                 No Change.  On the
Amendment Closing Date, both before and after giving effect to the transactions
contemplated by this Amendment to be effective on the Amendment Closing Date,
no Material Adverse Change shall have occurred since August 26, 2005.

 

(c)                                  Guarantor’s Consent. 
Each Guarantor shall have executed a confirming consent, substantially
in the form attached hereto as Annex A or otherwise satisfactory to the Agent
(a “Confirming Consent”), and delivered the same to the Agent at 1095
Avenue of the Americas, New York, New York 10036 (Attention:  Loan Administration) or such other place
directed by the Agent.

 

(d)                                 No Defaults. 
No Default or Event of Default shall exist.

 

(e)                                  Accuracy of Representations. 
Each representation and warranty made by the Borrower, each Primary
Obligor, each Portfolio Entity, each Related Entity and each other Loan Party
in the Agreement and the other Loan Documents shall be true and correct in all
material respects as of the Amendment Closing Date with the same effect as
though made at and as of such date (except for those that specifically speak as
of a prior date).

 

(f)                                    Amendment Fee. 
The Borrower shall have paid to the Lenders an amendment fee in the
amount of $127,121.

 

6.             Limited
Nature of Amendments.  The amendment
set forth herein is limited precisely as written and shall not be deemed to prejudice
any right or rights which any of the Lenders or the Agent may now have or may
have in the future under or in connection with the Loan Agreement, or any of
the other Loan Documents.  Except as
expressly amended hereby, the 

 

 

terms and provisions of the Loan Agreement and all other Loan Documents
shall remain in full force and effect.

 

7.                                       Governing Law. 
THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH,
THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO CHOICE OF LAW DOCTRINE
THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

8.                                       Entire Agreement. THIS AMENDMENT AND THE OTHER LOAN
DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES HERETO WITH RESPECT
TO THE MATTERS COVERED HEREBY AND THEREBY AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.

 

9.                                       Jurisdiction, Waiver of Jury Trial. 
THE BORROWER HEREBY AGREES THAT ANY LEGAL ACTION OR PROCEEDING AGAINST
IT WITH RESPECT TO THIS AMENDMENT MAY BE BROUGHT IN THE COURTS OF THE
STATE OF NEW YORK LOCATED IN NEW YORK CITY OR OF THE UNITED STATES OF AMERICA
FOR THE SOUTHERN DISTRICT OF NEW YORK AS THE AGENT OR ANY LENDER MAY ELECT,
AND, BY EXECUTION AND DELIVERY HEREOF, THE BORROWER ACCEPTS AND CONSENTS FOR
ITSELF AND IN RESPECT TO ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE
EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, UNLESS WAIVED IN WRITING BY THE
AGENT AND THE MAJORITY LENDERS.  EACH OF
THE BORROWER, THE AGENT AND THE LENDERS HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES ANY AND ALL RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH, THIS AMENDMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE BORROWER,
ANY AFFILIATE OF THE BORROWER, THE AGENT OR ANY LENDER.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR
THE AGENT AND THE LENDER ENTERING INTO THIS AMENDMENT.

 

10.                                 Counterparts. 
This Amendment may be executed in any number of counterparts, and by the
different parties on the same or separate counterparts, each of which when so
executed and delivered shall be deemed to be an original, but all of which
together shall constitute one and the same agreement.  Telecopied signatures hereto and to the
Confirming Consent shall be of the same force and effect as an original of a
manually signed copy.

 

11.                                 Headings.  The
descriptive headings of the various provisions of this Amendment are inserted
for convenience of reference only and shall not be deemed to affect the meaning
or construction of any of the provisions hereof.

 

 

IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed and delivered by their respective duly
authorized officers as of the date first shown.

 

	
   

  	
  BANK OF SCOTLAND PLC,
  acting through its New York branch as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FH PARTNERS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name: James C. Holmes

  
	
   

  	
   

  	
  Title: Senior Vice
  President

  

 

[Signature Page to
Amendment No. 9]

 

 

Annex A

 

CONFIRMING CONSENT

 

Reference is hereby made to the foregoing Amendment No. 9
(the “Amendment”) to the Revolving Credit Agreement dated as of March 26,
2010 among the Borrower, the Lenders and the Agent (said agreement, as from
time to time amended or otherwise modified, the “Agreement”).

 

Each Guarantor hereby consents to the terms and
provisions of the Amendment and confirms and acknowledges that:

 

(a)                                  its obligations under the Loan Documents
to which it is a party remain in full force and effect; and

 

(b)                                 its consent and acknowledgement hereunder
is not required under the terms of such Loan Documents and any failure to
obtain its consent or acknowledgment in connection herewith or with any
subsequent consent, waiver or amendment to the Agreement or any of the other
Loan Documents will not affect the validity of its obligations under the
aforesaid Loan Documents or any other Loan Document, and this consent and
acknowledgement is being delivered for purposes of form only.

 

Capitalized terms used herein and not otherwise
defined have the same meanings as in the Agreement. This Consent is dated as of
the Amendment Closing Date (as defined in the Amendment).

 

	
  FIRSTCITY COMMERCIAL
  CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice President

  	
   

  
	
   

  	
   

  
	
  FC CAPITAL CORP.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  

 

 

	
  FIRSTCITY CONSUMER
  LENDING CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY EUROPE
  CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY HOLDINGS
  CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY HOLDINGS
  CORPORATION OF MINNESOTA

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY INTERNATIONAL
  CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY MEXICO, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
  FIRSTCITY SERVICING
  CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  

 

[Signature Page to
Confirming Consent to Amendment No. 9]

 

 

	
  BOSQUE ASSET CORP.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
  BOSQUE LEASING, L.P.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  
	
   

  	
   

  
	
  BOSQUE LEASING GP CORP.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name: James C. Holmes

  	
   

  
	
   

  	
  Title: Executive Vice
  President

  	
   

  

 

[Signature Page to
Confirming Consent to Amendment No. 9]EXHIBIT 10.25

 

AMENDED AND RESTATED
PROMISSORY NOTE

(Revolving Loan)

 

 

	
  $700,000.00

  	
   

  	
  Effective February 4, 2010

  

 

 

FOR VALUE RECEIVED, on or before March 31, 2011 (“Maturity
Date”), INTRUSION INC., a Delaware corporation (“Borrower”),
promises to pay to the order of G. WARD PAXTON, of Richardson, TX (“Payee”),
at 1101 E. Arapaho Road, Suite 200, the principal amount of SEVEN HUNDRED
THOUSAND AND NO/100 DOLLARS ($700,000.00), or such lesser amount as may have
been advanced by Payee to Borrower pursuant to this Amended and Restated
Promissory Note (“Note”), together with interest on the unpaid principal
balance of this Note from time to time outstanding at a floating rate per annum
equal to one percent (1%) above the Prime Rate (as hereinafter defined),
calculated on the basis of actual days elapsed but computed as if each year
consisted of 360 days.  This Note amends,
restates and replaces in full that certain Promissory Note dated January 30,
2008, in the original principal amount of $700,000.00, executed by Borrower and
originally payable to the order of Payee on or before December 31, 2008.
As used herein, the term “Prime Rate” shall mean the most recently
announced “prime rate” of Silicon Valley Bank, even if it is not such bank’s
lowest rate.  Changes to the interest
rate on this Note based upon changes in the Prime Rate shall be effective on
the effective date of any changes to the Prime Rate and to the extent of any
such change.

 

The outstanding principal balance of this Note,
together with all accrued but unpaid interest, shall be due and payable in full
on the Maturity Date.

 

Subject to the terms and conditions of this Note,
Payee has agreed to make advances during the period beginning on the date of
this Note and ending on the Maturity Date in an aggregate principal amount of
up to $700,000 outstanding at any date upon three (3) Business Days prior
written notice.  Payee is authorized to
endorse on the schedule annexed hereto and made a part hereof amounts advanced
to Borrower through the Maturity Date.  Borrower
and Payee have agreed that Payee shall be obligated to make such advances to
Borrower only so long as of the date of each such advance, no Event of Default
(as hereinafter defined) exists or would occur by reason of the making of such
advance.  Subject to the foregoing,
amounts repaid may be reborrowed by Borrower.

 

Borrower may from time to time prepay all or any
portion of the principal of this Note without premium or penalty.  Unless otherwise agreed to in writing, or
otherwise required by applicable law, payments will be applied first to unpaid
accrued interest, then to principal, and any remaining amount to any unpaid
collection costs; provided, however, upon delinquency or other Event of
Default, Payee reserves the right to apply payments among principal, interest
and collection cost, at its discretion. 
All prepayments shall be applied to the indebtedness owing hereunder in
such order and manner as Payee may from time to time determine in its sole
discretion.   All payments and
prepayments of principal of or interest on this Note shall be made in lawful
money of the United States of America in immediately available funds, at the
address of Payee indicated above, or such other place as the holder of this
Note shall designate in writing to Borrower. 
If any payment of principal of or interest on this Note shall become due
on a day which is not a Business Day (as hereinafter defined), such payment
shall be made on the next succeeding Business Day and any such extension of
time shall be included in computing interest in connection with such
payment.  As used herein, the term “Business
Day” shall mean any day other than a Saturday, Sunday or any other day on
which national banking associations are authorized to be closed.

 

Borrower represents and warrants to Payee as follows:

 

(a)           This Note is the legal, valid and
binding obligation of Borrower, enforceable against it in accordance with its
terms.

 

(b)           The approval, execution, delivery and
performance of, and compliance by Borrower with the terms of this Note, will
not cause Borrower to be in violation of any applicable law or regulation, or
of any order or regulation applicable to it. The approval, execution, delivery
and performance of, and compliance by Borrower with the terms of, this Note
will not conflict 

 

 

with or result in
a breach of any of the terms of any material agreement or instrument to which
Borrower is a party or by which it is bound, or constitute a default
thereunder.

 

Borrower agrees that upon the occurrence of any one or
more of the following events of default (“Event of Default”):

 

(a)       failure of Borrower to pay any
installment of principal of or interest on this Note or on any other
indebtedness of Borrower to Payee when due; or

 

(b)      any representation or warranty made by
Borrower in this Note shall be untrue in any material respect when made; or

 

(c)       the bankruptcy or insolvency of, the
assignment for the benefit of creditors by, or the appointment of a receiver
for any of the property of, or the liquidation, termination, dissolution or
death or legal incapacity of, any party liable for the payment of this Note,
whether as maker, endorser, guarantor, surety or otherwise;

 

the holder of this Note may, at its option, without further notice or
demand, (i) declare the outstanding principal balance of and accrued but
unpaid interest on this Note at once due and payable, (ii) refuse to
advance any additional amounts under this Note, (iii) pursue any and all
other rights, remedies and recourses available to the holder hereof, including
but not limited to any such rights, remedies or recourses at law or in equity,
or (iv) pursue any combination of the foregoing.

The failure to exercise the option to accelerate the
maturity of this Note or any other right, remedy or recourse available to the
holder hereof upon the occurrence of an Event of Default hereunder shall not
constitute a waiver of the right of the holder of this Note to exercise the
same at that time or at any subsequent time with respect to such Event of
Default or any other Event of Default. 
The rights, remedies and recourses of the holder hereof, as provided in
this Note, shall be cumulative and concurrent and may be pursued separately,
successively or together as often as occasion therefore shall arise, at the
sole discretion of the holder hereof. 
The acceptance by the holder hereof of any payment under this Note which
is less than the payment in full of all amounts due and payable at the time of
such payment shall not (i) constitute a waiver of or impair, reduce,
release or extinguish any right, remedy or recourse of the holder hereof, or
nullify any prior exercise of any such right, remedy or recourse, or (ii) impair,
reduce, release or extinguish the obligations of any party liable under this
Note as originally provided herein.

 

Notwithstanding anything herein to the contrary, if at
any time the interest rate set forth above, together with all fees, charges and
other amounts which are treated as interest on the indebtedness evidenced by
this Note under applicable law (collectively the “Charges”), shall
exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or reserved by Payee in accordance
with applicable law, the rate of interest payable hereunder in respect of such
indebtedness, together with all Charges payable in respect thereof, shall be
limited to the Maximum Rate.

 

If this Note is placed in the hands of an attorney for
collection, or is collected in whole or in part by suit or through probate,
bankruptcy or other legal proceedings of any kind, Borrower agrees to pay, in
addition to all other sums payable hereunder, all costs and expenses of
collection, including but not limited to reasonable attorneys’ fees.

 

Borrower and any and all endorsers and guarantors of
this Note severally waive presentment for payment, notice of nonpayment,
protest, demand, notice of protest, notice of intent to accelerate, notice of
acceleration and dishonor, diligence in enforcement and indulgences of every
kind and without further notice hereby agree to renewals, extensions, exchanges
or releases of collateral, taking of additional collateral, indulgences or
partial payments, either before or after maturity.

 

THIS NOTE HAS BEEN EXECUTED UNDER, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS.

 

[Signature Page Follows]

 

 

	
   

  	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  INTRUSION
  INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:
  

  	
   /s/
  Michael L. Paxton

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   Michael
  L. Paxton

  	
   

  
	
   

  	
   

  	
  Title:

  	
   Vice President and Chief Financial Officer 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  ACKNOWLEDGED
  AND AGREED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  G. Ward Paxton

  	
   

  	
   

  	
   

  
	
  G.
  WARD PAXTON

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