Document:

exhibit1018.htm

    EXHIBIT
10.18

    PROPOSED

     

    Viasystems
Group, Inc.

    2010
Equity Incentive Plan

     

    

     

    RESTRICTED
STOCK AWARD AGREEMENT

     

    

     

    THIS
RESTRICTED STOCK AWARD AGREEMENT (this “Agreement”) is made effective as of
_____ (the “Date of Grant”) by and between Viasystems Group, Inc., a Delaware
corporation (with any successor, the “Company”), and _________ (the
“Participant”).

     

    R E C I T A L
S:

     

    WHEREAS,
the Company has adopted the Viasystems Group, Inc. 2010 Equity Incentive Plan
(the “Plan”), which Plan is incorporated herein by reference and made a part of
this Agreement. Capitalized terms not otherwise defined herein shall have the
same meanings 

    as in the
Plan; and

     

    WHEREAS,
the Committee has determined that it would be in the best interests of the
Company and its stockholders to grant the restricted stock provided for herein
to the Participant pursuant to the Plan and the terms set forth
herein.

     

    NOW
THEREFORE, in consideration of the mutual covenants hereinafter set forth, the
parties agree as follows:

     

    1. Restricted Stock
Award.  Subject to the terms and conditions of the Plan and
this Agreement, the Company hereby grants to the Participant _____ Shares (the
“Restricted Shares”), which shall vest and become nonforfeitable in accordance
with Section 3.

     

    2. Certificates.  Certificates
representing the Restricted Shares shall be issued by the Company and shall be
registered in the name of the Participant on the stock transfer books of the
Company promptly following execution of this Agreement by the Participant, but

    shall
remain in the physical custody of the Company or its designee at all times prior
to the vesting of such Restricted Shares pursuant to Section 3.  As a
condition to the receipt of this Agreement, the Participant shall deliver to the
Company a stock power, duly 

    endorsed
in blank, relating to the Restricted Shares.

     

    3. Vesting.

     

    (a) Vesting
Schedule.  The Restricted Shares shall vest three years after
the Date of Grant.

     

    4. Acceleration upon Change of
Control.  Notwithstanding any provision herein to the contrary,
immediately prior to a Change in Control the unvested portion of the Restricted
Shares shall become fully vested as of such date of such Change of
Control.

     

    5. Forfeiture.  Except
as otherwise provided in Sections 5(a) and 5(b) below herein, the Restricted
Shares, to the extent not then vested, shall be forfeited by the Participant
without consideration on the Termination Date.

     

    (a) Termination
of Service by a Director:  To the extent that a Director terminates
his/her service as a director of the Company, the Restricted Shares that have
not yet vested as of the date of termination of such Director’s services shall
vest by calculating 

    the
product of (i) 0.083, (ii) the total numbers of quarters of service such
Director has provided to the Company starting from the Date of Grant and ending
on the date the Director terminates his/her service for the Company and (iii)
the number of Restricted 

    Shares
granted herein.

     

    (b) Involuntary
Termination of an Employee:  To the extent that an Employee’s
employment has been involuntarily terminated, the Restricted Shares that have
not vested as of the Termination Date shall vest by calculating the product of
(i) 0.083, (ii) the total 

    number of
quarters that have passed starting from the Date of Grant and ending on the
Termination Date and (iii) the number of Restricted Shares granted
herein.

     

    6. Dividend
Equivalents.  With respect to each Restricted Share the
Participant shall have the right to receive an amount equal to the per Share
dividend (if any) paid by the Company during the period between the Date of
Grant and the Restricted Share’s settlement 

    (including
any Restricted Shares that are converted into deferred stock units), termination
or forfeiture, subject to the remainder of this Section 6.  When
dividends are paid by the Company, the Participant shall be credited with an
amount determined by multiplying the 

    number of
the Participant’s unvested Restricted Shares by the dividend per Share, which
amount shall be held by the Company and subject to forfeiture until the related
Restricted Shares vest in accordance with Section 3 hereof.  Such
dividends shall be paid to the 

    Participant
as soon as
administratively practicable, but not later than sixty (60) days, following the
settlement of the Restricted Shares to which the dividends relate.

     

    7. No Right to Continued
Service.  The granting of the Restricted Shares evidenced
hereby and this Agreement shall impose no obligation on the Company or any
Affiliate to continue the Service of the Participant and shall not lessen or
affect any right that the 

    Company
or any Affiliate may have to terminate the Service of such
Participant.

     

    8. Securities Laws/Legend on
Certificates.  The issuance and delivery of Shares shall comply
with all applicable requirements of law, including (without limitation) the
Securities Act of 1933, as amended, the rules and regulations promulgated
thereunder, state securities 

    laws and
regulations, and the regulations of any stock exchange or other securities
market on which the Company’s securities may then be traded.  If the
Company deems it necessary to ensure that the issuance of securities under the
Plan is not required to be 

    registered
under any applicable securities laws, each Participant to whom such security
would be issued shall deliver to the Company an agreement or certificate
containing such representations, warranties and covenants as the Company which
satisfies such 

    requirements.
The certificates representing the Shares shall be subject to such stop transfer
orders and other restrictions as the Committee may deem reasonably advisable,
and the Committee may cause a legend or legends to be put on any such
certificates to make 

    appropriate
reference to such
restrictions.

     

    9. Transferability.  The
Restricted Shares may not be assigned, alienated, pledged, attached, sold or
otherwise transferred or encumbered by the Participant other than by will or by
the laws of descent and distribution, and any such purported assignment,
alienation, 

    pledge,
attachment, sale, transfer or encumbrance shall be void and unenforceable
against the Company or any Affiliate; provided that the designation of a
beneficiary shall not constitute an assignment, alienation, pledge, attachment,
sale, transfer or 

    encumbrance.  No
such permitted transfer of the Restricted Shares to heirs or legatees of the
Participant shall be effective to bind the Company unless the Committee shall
have been furnished with written notice thereof and a copy of such evidence as
the Committee 

    may deem
necessary to establish the validity of the transfer and the acceptance by the
transferee or transferees of the terms and conditions hereof.

     

    10. Adjustment of Restricted
Shares.  Adjustments to the Restricted Shares shall be made in
accordance with the terms of the Plan.

     

    11. Withholding.  The
Participant may be required to pay to the Company or any Affiliate and the
Company shall have the right and is hereby authorized to withhold, any
applicable withholding taxes in respect of the Restricted Shares, their grant,
vesting or otherwise 

    and to
take such other action as may be necessary in the opinion of the Committee to
satisfy all obligations for the payment of such withholding taxes.  At
the Participant’s election, the number of shares payable to the Participant may
be reduced to pay any applicable 

    withholding
taxes.

     

    12. Notices. Any
notification required by the terms of this Agreement shall be given in writing
and shall be deemed effective upon personal delivery or within three (3) days of
deposit with the United States Postal Service, by registered or certified mail,
with postage 

    and fees
prepaid.  A notice shall be addressed to the Company, Attention:
General Counsel, at its principal executive office and to the Participant at the
address that he or she most recently provided to the Company.

     

            13. Entire
Agreement.  This Agreement and the Plan constitute the entire
contract between the parties hereto with regard to the subject matter
hereof.  They supersede any other agreements, representations or
understandings (whether oral or written and whether 

              express or
implied) which relate to the subject matter hereof.

     

    14. Waiver.  No
waiver of any breach or condition of this Agreement shall be deemed to be a
waiver of any other or subsequent breach or condition whether of like or
different nature.

     

    15. Successors and
Assigns.  The provisions of this Agreement shall inure to the
benefit of, and be binding upon, the Company and its successors and assigns and
upon the Participant, the Participant’s assigns and the legal representatives,
heirs and legatees of the 

    Participant’s
estate, whether or not any such person shall have become a party to this
Agreement and agreed in writing to be joined herein and be bound by the terms
hereof.

     

    16. Choice of Law; Jurisdiction;
Waiver of Jury Trial.  THIS AWARD AGREEMENT SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF DELAWARE WITHOUT REGARD TO
CONFLICTS OF LAWS.

     

    SUBJECT TO THE TERMS OF THIS AWARD
AGREEMENT, THE PARTIES AGREE THAT ANY AND ALL ACTIONS ARISING UNDER OR IN
RESPECT OF THIS AWARD AGREEMENT SHALL BE LITIGATED IN THE FEDERAL OR STATE
COURTS IN DELAWARE.  BY EXECUTING AND DELIVERING THIS AWARD AGREEMENT,
EACH PARTY IRREVOCABLY SUBMITS TO THE PERSONAL JURISDICTION OF SUCH COURTS FOR
ITSELF, HIMSELF OR HERSELF AND IN RESPECT OF ITS, HIS OR HER PROPERTY WITH
RESPECT TO SUCH ACTION.  EACH PARTY AGREES THAT VENUE WOULD BE PROPER
IN ANY OF SUCH COURTS, AND HEREBY WAIVES ANY OBJECTION THAT ANY SUCH COURT IS AN
IMPROPER OR INCONVENIENT FORUM FOR THE RESOLUTION OF ANY SUCH
ACTION.

     

    EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM ARISING OUT OF OR RELATING TO THIS AWARD
AGREEMENT.

     

    17. Restricted Shares Subject to
Plan.  By entering into this Agreement the Participant agrees
and acknowledges that the Participant has received and read a copy of the
Plan.  The Restricted Shares are subject to the Plan.  The
terms and provisions of the Plan as it may 

    be
amended from time to time are hereby incorporated herein by reference (subject
to the limitation set forth in Section 14).  In the event of a
conflict between any term or provision contained herein and a term or provision
of the Plan, the applicable terms and provisions 

    of the
Plan will govern and prevail.  The Participant has had the opportunity
to retain counsel, and has read carefully, and understands, the provisions of
the Plan and the Agreement.

     

    18. Amendment.  The
Committee may amend or alter this Agreement and the Restricted Shares granted
hereunder at any time; provided that, subject to Articles 11, 12 and 13 of the
Plan, no such amendment or alteration shall be made without the consent of the

    Participant
if such action would materially diminish any of the rights of the Participant
under this Agreement or with respect to the Restricted Shares.

     

    19. Section 83(b)
Election.  In the event the Participant determines to make an
election with the Internal Revenue Service (the “IRS”) under Section 83(b) of
the Code and the regulations promulgated thereunder (the “83(b) Election”), the
Participant shall provide a copy 

    of such
form to the Company promptly following its filing, which is required under
current law to be filed with the IRS no later than thirty (30) days after the
Grant Date of the Restricted Shares.  The Participant is advised to
consult with his or her own tax advisors 

    regarding
the purchase and holding of the Restricted Shares, and the Company shall bear no
liability for any consequence of the Participant making and 83(b) Election or
failing to make an 83(b) Election.

     

    20. Severability. The
provisions of this Agreement are severable and if any one or more provisions are
determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions shall nevertheless be binding and enforceable.

     

    21. Signature in
Counterparts.  This Agreement may be signed in counterparts,
each of which shall be an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument.

     

    [SIGNATURE PAGE FOLLOWS]

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Restricted Stock Award
Agreement as of the date first written above.

     

    

    

    VIASYSTEMS
GROUP, INC.

    

    

    

    By:  __________________________

    Name:

    Title

    

    

     

    Agreed
and acknowledged as

     

    

     

    of the
date first above written:

     

    

     

    

                           PARTICIPANTExhibit
10.1

 

SEVENTH
AMENDMENT TO REVOLVING LINE OF CREDIT LOAN

AGREEMENT, TERM LOAN AGREEMENT AND SECURITY AGREEMENT

 

THIS
SEVENTH AMENDMENT TO REVOLVING LINE OF CREDIT LOAN AGREEMENT, TERM LOAN
AGREEMENT AND SECURITY AGREEMENT (this “Seventh Amendment”) is made as
of May 15, 2010, by and among EF JOHNSON TECHNOLOGIES,
INC., a Delaware corporation (formerly known as EFJ, Inc.), E.F. JOHNSON COMPANY, a Minnesota corporation
(successor-by-merger to Transcrypt International, Inc.), and 3e TECHNOLOGIES INTERNATIONAL, INC., a Maryland corporation
(collectively, jointly and severally, the “Borrower”), all having an
address at c/o EF Johnson Technologies, Inc., 1440 Corporate Drive,
Irving, Texas 75038; and BANK OF AMERICA, N.A.,
a national banking association (the “Lender”).

 

RECITALS

 

A.                                   The Borrower and the Lender are parties
to that certain Revolving Line of Credit Loan Agreement and Security Agreement,
dated as of November 15, 2002, as amended by that certain First Amendment
to Revolving Line of Credit Loan Agreement and Security Agreement dated as of September 13,
2004, and as further amended by that certain Second Amendment to Revolving Line
of Credit Loan Agreement and Security Agreement dated as of July 11, 2006
(the “Second Amendment”), and as further amended by that certain Third
Amendment to Revolving Line of Credit Loan Agreement, Term Loan Agreement and
Security Agreement dated as of March 6, 2007, and as further amended by
that certain Fourth Amendment to Revolving Line of Credit Loan Agreement, Term Loan
Agreement and Security Agreement dated as of March 10, 2008, and as
further amended by that certain Fifth Amendment to Revolving Line of Credit
Loan Agreement, Term Loan Agreement and Security Agreement dated as of March 16,
2009, and as further amended by that certain Sixth Amendment to Revolving Line
of Credit Loan Agreement, Term Loan Agreement and Security Agreement dated as
of March 1, 2010 (the “Sixth Amendment”) (as amended and in effect,
the “Loan Agreement”).

 

B.                                     The Loan Agreement governs and secures (1) a
certain revolving line of credit loan in the maximum principal amount of Three
Million Seven Hundred Fifty Thousand and 00/100 Dollars ($3,750,000.00), which
loan is evidenced by that certain Revolving Note dated as of November 15,
2002, as amended by that certain First Amendment to Revolving Note dated as of September 13,
2004, and as further amended by that certain Second Amendment to Revolving Note
dated as of July 11, 2006, and as further amended by that certain Third
Amendment to Revolving Note dated as of March 10, 2008, and as further
amended by that certain Fourth Amendment to Revolving Note dated as of March 16,
2009, and as further amended by that certain Fifth Amendment to Revolving Note
dated as of March 1, 2010, made by the Borrower payable to the Lender in
the original maximum principal amount of Ten Million and 00/100 Dollars
($10,000,000.00) and currently in the maximum principal amount of Three Million
Seven Hundred Fifty Thousand and 00/100 Dollars ($3,750,000.00) (as amended and
in effect, the 

 

 

“Revolving Note”);
and (2) a certain term loan in the original principal amount of Fifteen
Million and 00/100 Dollars ($15,000,000.00), evidenced by that certain Term
Note dated as of July 11, 2006, as amended by that certain First Amendment
to Term Note dated as of March 10, 2008, and as further amended by that
certain Second Amendment to Term Note dated as of March 16, 2009, and as
further amended by that certain Third Amendment to Term Note dated as of March 1,
2010, made by the Borrower payable to the Lender in the original principal
amount of Fifteen Million and 00/100 Dollars ($15,000,000.00) (as amended and
in effect, the “Term Note”).

 

C.                                     Contemporaneously with the execution and
delivery of this Seventh Amendment, the Borrower and the Lender are entering
into (1) that certain Sixth Amendment to Revolving Note dated as of May 15,
2010 (the “Amendment to Revolving Note”), (2) that certain Fourth
Amendment to Term Note dated as of May 15, 2010 (the “Amendment to Term
Note”), and (3) that certain Second Amendment to Pledge Agreement
dated as of May 15, 2010 (the “Amendment to Pledge Agreement”).

 

D.                                    The Borrower has informed the Lender that
it intends to pursue a sale of the Borrower to a third party in order to repay
in full the Obligations (as defined below) on or before August 31,
2010.  The Borrower has made a request to
the Lender to extend the maturity dates of the loans governed and secured by
the Loan Agreement and to waive certain financial covenants set forth in Section 6.14
of the Loan Agreement for the fiscal quarter of the Borrower ending June 30,
2010.  The Lender is willing to extend
such maturity dates and to waive such financial covenants on a one time basis
subject to the terms and conditions set forth in this Seventh Amendment.

 

AGREEMENTS

 

NOW,
THEREFORE, in consideration of the mutual agreements herein contained, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Borrower and the Lender hereby agree as follows:

 

1.                                       Capitalized Terms. Capitalized terms used in this Seventh
Amendment but not defined herein have the meanings ascribed to them in the Loan
Agreement.

 

2.                                       Representations and
Warranties.  To induce the Lender to enter into this
Seventh Amendment, the Borrower provides the following representations and
warranties to the Lender:

 

a.                                       The Borrower’s books and records properly
reflect the Borrower’s financial condition, and no material adverse change in
the Borrower’s financial condition has occurred since the last date that the
Borrower provided financial reports to the Lender;

 

b.                                      No litigation which, in the aggregate, is
material to Borrower’s operations or financial condition, is pending or
threatened against the Borrower of which the 

 

2

 

Borrower has not informed
the Lender in writing or which is not disclosed in the Borrower’s required
public filings with the Securities and Exchange Commission;

 

c.                                       The Borrower is in compliance with all
provisions of the Loan Agreement, with all provisions of the other Loan
Documents, and with all applicable laws and regulations;

 

d.                                      The Borrower has the power and authority
to enter into this Seventh Amendment, to perform its obligations hereunder, to
execute all documents, instruments, and agreements required in connection
herewith or related hereto, and to incur the obligations provided for herein,
all of which have been duly authorized and approved in accordance with the
Borrower’s organizational documents;

 

e.                                       This Seventh Amendment, together with all
documents, instruments, and agreements required in connection herewith or
related hereto, constitute the valid and legally binding obligations of the
Borrower in accordance with their respective terms;

 

f.                                         The obligations of the Borrower under the
Loan Documents remain valid and enforceable obligations, and the execution and
delivery of this Seventh Amendment and the other documents executed in
connection herewith shall not be construed as a novation of the Loan Agreement
or the other Loan Documents; and

 

g.                                      There have been no changes to the
Borrower’s organizational documents as of the date of this Seventh Amendment,
except as have been fully disclosed and previously delivered to the Lender, and
all of the Borrower’s organizational documents previously delivered to the
Lender in conjunction with the Loan Agreement remain in full force and effect
and unmodified.

 

3.                                       Acknowledgement of
Indebtedness.  The Borrower hereby
acknowledges and agrees that, in accordance with the terms and conditions of
the Loan Documents, it is liable to the Lender as follows:

 

a.                                       Owed under the Revolving Note as of May 4,
2010:

 

	
  Principal

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Interest

  	
   

  	
  $

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  0.00

  	
   

  

 

b.                                      Owed under the Term Note as of May 4,
2010:

 

	
  Principal

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  
	
  Interest

  	
   

  	
  $

  	
  74,376.01

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
  $

  	
  15,074,376.01

  	
   

  

 

c.                                       For all amounts now due, or hereafter
coming due, to the Lender under or in connection with any credit card
agreements, Letters of Credit (including, without 

 

3

 

limitation, the Existing
Letter of Credit), banker’s acceptances, automated clearinghouse agreements,
cash management agreements, deposit account agreements, or similar account
agreements or arrangements and/or under any hedge or swap agreements.

 

d.                                      For all interest accruing upon the
principal balances of the Notes from and after May 4, 2010, and for all
fees, costs, expenses, and costs of collection (including attorneys’ fees and
expenses) heretofore or hereafter accruing or incurred by the Lender in
connection with the Loan Documents, including, without limitation, all
reasonable attorneys’ fees and expenses incurred in connection with the
negotiation and preparation of this Seventh Amendment and all documents,
instruments, and agreements required in connection herewith or related hereto
(collectively, the “Amendment Documents”).

 

Hereinafter all
amounts due as set forth in this Paragraph 3, and all amounts payable under or
in connection with this Seventh Amendment, and all other amounts due under the
Loan Documents, as amended hereby, shall be referred to collectively as the “Obligations”.

 

4.                                       Waiver of Claims; Release. In consideration of Lender’s agreements
set forth herein, the Borrower hereby acknowledges and agrees that it has no
offsets, defenses, claims, or counterclaims against the Lender or the Lender’s
officers, directors, employees, attorneys, representatives, predecessors,
parent, subsidiaries, shareholder, affiliates, successors, and assigns
(collectively, the “Lender Parties”)
with respect to the Obligations, the Loan Documents, and/or the transactions
related thereto, and that if the Borrower now has, or ever did have, any
offsets, defenses, claims, or counterclaims against the Lender Parties, or any
one of them, whether known or unknown, at law or in equity, from the beginning
of the world through this date and through the time of execution of this
Seventh Amendment, all of them are hereby expressly WAIVED, and the Borrower hereby RELEASES the Lender Parties from any liability therefor.

 

5.                                       Ratification of Loan
Documents; Cross-Default; Cross-Collateralization; Further Assurances.  The Borrower:

 

a.                                       Hereby ratifies, confirms, and reaffirms
all and singular the terms and conditions of the Loan Documents.  The Borrower further acknowledges and agrees
that except as specifically amended in this Seventh Amendment and the Amendment
Documents, all terms and conditions of the Loan Documents shall remain in full
force and effect;

 

b.                                      Hereby ratifies, confirms, and reaffirms
that (i) the obligations secured by the Loan Documents include, without
limitation, the Obligations, and any future modifications, amendments,
substitutions or renewals thereof, (ii) all Collateral, whether now
existing or hereafter acquired, granted to the Lender pursuant to the Loan
Documents, the Amendment Documents, or otherwise shall secure all of the
Obligations until full and final payment of the Obligations, and (iii) the
occurrence of a default and/or event of default under any Loan Document and/or
any Amendment Document shall constitute an event of default under all of the
Loan Documents and all of the Amendment Documents, it being the express intent
of the Borrower that all of the Obligations be fully cross-collateralized and
cross-defaulted; and

 

4

 

c.                                       Shall, from and after the execution of
this Seventh Amendment, execute and deliver to the Lender whatever additional
documents, instruments, and agreements that the Lender may require in order to vest
or perfect the Loan Documents and the Amendment Documents and the collateral
granted herein and therein more securely in the Lender and to otherwise give
effect to the terms and conditions of this Seventh Amendment and the other
Amendment Documents.

 

6.                                       Conditions Precedent. 
The Lender’s agreements set forth herein shall not be effective unless
and until each of the following conditions precedent have been fulfilled, all
as determined by the Lender in its sole and exclusive discretion:

 

a.                                       The Lender shall have received evidence
that the Borrower has entered into a definitive agreement for the sale of the
Borrower to a third party upon terms and conditions acceptable to the Lender in
all respects in its sole and exclusive discretion;

 

b.                                      The Lender shall have received the
Amendment to Revolving Note in the form attached hereto as Exhibit “A”
executed by the Borrower;

 

c.                                       The Lender shall have received the
Amendment to Term Note in the form attached hereto as Exhibit “B”
executed by the Borrower;

 

d.                                      The Lender shall have received the
Amendment to Pledge Agreement in the form attached hereto as Exhibit “C”
executed by the Borrower;

 

e.                                       All action on the part of the Borrower
necessary for the valid execution, delivery and performance by the Borrower of
this Seventh Amendment and the other Amendment Documents shall have been duly
and effectively taken and evidence thereof satisfactory to the Lender shall
have been provided to the Lender; and

 

f.                                         This Seventh Amendment, and the other
Amendment Documents, shall be executed and delivered to the Lender by the
parties thereto, shall be in full force and effect and shall be of form and
substance satisfactory to the Lender.

 

7.                                       Amendments to Loan
Agreement.  The following definitions set forth in Section 1.1
of the Loan Agreement are hereby amended as follows:

 

a.                                       The following definition of “Existing
Letter of Credit” is hereby added to Section 1.1 of the Loan Agreement in
the appropriate alphabetical order:

 

““Existing Letter of Credit” means that certain
outstanding Standby Letter of Credit in the amount of Seven Hundred Fifty
Thousand and 00/100 Dollars ($750,000.00).”

 

b.                                      The definition of “Letter of Credit
Sublimit” set forth in Section 1.1 of the Loan Agreement is hereby deleted
in its entirety and the following inserted in its place:

 

““Letter of Credit Sublimit” means Seven
Hundred Fifty Thousand and 00/100 Dollars ($750,000.00); provided,
however, that the Letter of Credit Sublimit shall be
automatically reduced by any amounts drawn upon under the Existing Letter of
Credit 

 

5

 

and automatically reduced to Zero Dollars ($0.00) upon
the expiration or cancellation thereof.”

 

c.                                       The definition of “Maximum Revolving
Commitment Amount” set forth in Section 1.1 of the Loan Agreement shall be
deleted in its entirety and the following inserted in its place:

 

““Maximum Revolving Commitment Amount” means: (a) prior
to June 17, 2010, Three Million Seven Hundred Fifty Thousand and 00/100
Dollars ($3,750,000.00), or such lesser amount that the Borrower may request as
hereinafter provided; and (b) from and after June 17, 2010, Six
Million and 00/100 Dollars ($6,000,000.00), or such lesser amount that the
Borrower may request as hereinafter provided; subject in each case to reduction
by an amount equal to the undrawn amount of the Existing Letter of Credit upon
the expiration or cancellation thereof.”

 

d.                                      The definition of “Revolving Loan” set
forth in Section 1.1 of the Loan Agreement is hereby deleted in its
entirety and the following inserted in its place:

 

““Revolving Loan” means: (a) prior to June 17,
2010, the revolving loan facility made available by the Lender to the Borrower
pursuant to this Agreement in the maximum principal amount of Three Million
Seven Hundred Fifty Thousand and 00/100 Dollars ($3,750,000.00), evidenced by
the Revolving Note; and (b) from and after June 17, 2010, the
revolving loan facility made available by the Lender to the Borrower pursuant
to this Agreement in the maximum principal amount of Six Million and 00/100
Dollars ($6,000,000.00), evidenced by the Revolving Note; subject in each case
to reduction by an amount equal to the undrawn amount of the Existing Letter of
Credit upon the expiration or cancellation thereof.”

 

e.                                       The definition of “Revolving Note” set
forth in Section 1.1 of the Loan Agreement is hereby deleted in its
entirety and the following inserted in its place:

 

““Revolving Note” means that certain Revolving
Note dated as of November 15, 2002, in the original maximum principal
amount of Ten Million and 00/100 Dollars ($10,000,000.00), executed by the
Borrower and payable to the order of the Lender, and evidencing the Borrower’s
obligation to repay the Revolving Loan, as such Revolving Note may be amended
from time to time.”

 

f.                                         The definition of “Ending Date” set forth
in Section 1.1 of the Loan Agreement is hereby deleted in its entirety and
the following inserted in its place:

 

““Ending Date” means August 31, 2010; provided, however, if no Event of
Default has occurred, Lender may (by written notice delivered to Borrower), as
determined in Lender’s sole and absolute discretion, elect to extend the Ending
Date upon such terms and conditions as may be acceptable to Lender, in Lender’s
sole and absolute discretion.  Borrower
shall, upon request of Lender, execute all documents and take all action
necessary or requested by Lender to effectuate or evidence such extension, all
at the sole cost of Borrower.”

 

8.                                       Repayment of the
Obligations.  From and after the execution of this Seventh
Amendment the Obligations shall be paid, as follows:

 

a.                                       The Borrower shall continue to make all
payments of interest and other amounts as and when due under the terms and
conditions of the Notes; and

 

6

 

b.                                      In addition, the Borrower shall make one
or more principal payments on the Term Note such that the outstanding principal
balance thereof on June 17, 2010 shall be not more than Five Million and
00/100 Dollars ($5,000,000.00).

 

9.                                       Waiver of Certain
Financial Covenants; Next Quarterly Testing. The Lender will not be testing for compliance of the
Funded Debt to EBITDA covenant and the Fixed Charge Coverage Ratio covenant set
forth in Section 6.14 of the Loan Agreement for the fiscal quarter ending June 30,
2010 and hereby waives compliance by the Borrower with such covenants for such
quarter.  This waiver relates only to the
specific covenants identified in the preceding sentence for the specific time
period indicated, is a one-time waiver, and shall not be deemed to constitute (a) a
continuing waiver of the provisions of Section 6.14 of the Loan Agreement,
or a waiver of any other provisions of the Loan Agreement or of the other Loan
Documents, or (b) a waiver of any Events of Default, whether now existing
or hereafter arising.

 

10.                                 Prepayments. 
The Lender hereby agrees that partial prepayments of the Obligations do
not, on their own, require the termination of the hedge or swap agreements
currently in effect between the Lender and the Borrower, or require the payment
of a prepayment fee or premium thereunder, provided, however, that the
Borrower acknowledges and agrees that reductions in the outstanding amount of
the Obligations as a result of partial prepayments may not be recognized under
any such hedge or swap agreements(1).

 

11.                                 Discretionary Advances;
Letters of Credit.  All Advances shall continue to
be on a discretionary basis, and all Letters of Credit shall continue to be
subject to the restrictions, set forth in more detail in Paragraphs 10 and 11,
respectively, of the Sixth Amendment.

 

12.                                 Additional Cash Collateral. 
In addition to any other Collateral, the Borrower shall, as additional
security for the Obligations:

 

a.                                       Contemporaneously with the execution and
delivery of this Seventh Amendment, execute and deliver to the Lender the
Amendment to Pledge Agreement which, among other things, shall amend that
certain Pledge Agreement dated March 16, 2009 (the “Pledge Agreement”)
by and between the Borrower and the Lender to include all Obligations within
the definition of “Indebtedness” set forth therein.

 

b.                                      On or before June 15, 2010, in good
and collected funds, deliver to the Lender all additional cash collateral
required under Paragraph 12c. of the Sixth Amendment.

 

c.                                       Provided that delivery of all additional
cash collateral required under Paragraph 12 of the Sixth Amendment has been
made as and when provided for therein, the Borrower may direct the Lender to
apply the funds held by the Lender in the Pledged Account (as defined in the
Sixth Amendment) in reduction of the amounts owed under 

 

(1) By way of example, and for the avoidance of doubt, if the
outstanding principal balance of the Term Loan is Fifteen Million and 00/100
Dollars ($15,000,000.00) and the Borrower prepays the Term Loan such that the
outstanding principal balance thereof is then Ten Million and 00/100 Dollars
($10,000,000.00), the Borrower acknowledges that it may be required to continue
to make payments under a hedge or swap agreement as if the outstanding
principal balance of the Term Loan was still Fifteen Million and 00/100 Dollars
($15,000,000.00).

 

7

 

the Term Note (including,
without limitation, the payments required under Section 8.b hereof), provided,
however, that no such application shall be made by the Lender if such
application would result in the Pledged Account having a balance of less than
Seven Hundred Fifty Thousand and 00/100 Dollars ($750,000.00).

 

13.                                 Supplemental Financial
Reporting.  In addition to the financial reporting
currently required under the Loan Documents, on (i) the date of the
execution of this Seventh Amendment, (ii) June 11, 2010, (iii) July 9,
2010, and (iv) August 6, 2010, the Borrower shall provide the Lender
with a thirteen (13) week rolling cash flow report and forecast of the Borrower’s
business operations in form and substance satisfactory to the Lender in its
sole and exclusive discretion (each a “Cash Flow Report”), which Cash
Flow Reports shall include a comparison of the most recent Cash Flow Report to
actual results of the Borrower’s business operations for the prior month.

 

14.                                 Amendment Fee. 
In consideration of the Lender’s agreements set forth herein, the
Borrower shall pay the Lender a fee (the “Amendment Fee”) in an amount equal to Thirty One Thousand
Eight Hundred Twenty Five and 00/100 Dollars ($31,825.00).  The Amendment Fee shall be: (a) fully
earned as of the date of the execution of this Seventh Amendment; (b) retained
by the Lender as a fee and not applied in reduction of any other Obligations; (c) part
of the Obligations and secured by all of the Collateral; and (d) paid to
the Lender on or before June 30, 2010. 
Further, the Amendment Fee shall be in addition to any fees previously
required by the Lender, including, without limitation, the portion of the fee
required under Paragraph 14a.iii. of the Sixth Amendment, which the Borrower
hereby acknowledges and agrees shall be in an amount equal to Thirty Nine
Thousand Three Hundred Fifty Eight and 00/100 Dollars ($39,358.00) and shall be
due and payable by the Borrower on or before June 17, 2010.

 

15.                                 Costs and Expenses.  The Borrower shall reimburse the Lender on demand for
any and all unreimbursed costs, expenses, and costs of collection (including
attorneys’ fees and expenses) heretofore or hereafter incurred by the Lender in
connection with the protection, preservation, and enforcement by the Lender of
its rights and remedies under the Loan Documents, this Seventh Amendment and/or
the other Amendment Documents, including, without limitation, the negotiation
and preparation of this Seventh Amendment and the other Amendment Documents.

 

16.                                 Arbitration.

 

This
paragraph concerns the resolution of any controversies or claims between the
Borrower and the Lender, whether arising in contract, tort or by statute,
including but not limited to controversies or claims that arise out of or
relate to: (i) the Loan Agreement or this Seventh Amendment (including any
renewals, amendments, extensions, or modifications of the same); or (ii) any
other Loan Document or Amendment Document (collectively, a “Claim”).

 

At the
request of the Borrower or the Lender, any Claim shall be resolved by binding
arbitration in accordance with the Federal Arbitration Act (Title 9, U.S. Code)
(the “Act”).  The Act will apply even
though the Loan Agreement provides that it is governed by the law of a
specified state.

 

8

 

Arbitration
proceedings will be determined in accordance with the Act, the applicable rules and
procedures for the arbitration of disputes of JAMS or any successor thereof (“JAMS”),
and the terms of this paragraph.  In the
event of any inconsistency, the terms of this paragraph shall control.

 

The
arbitration shall be administered by JAMS and conducted in any U.S. state where
real or tangible personal property collateral for this credit is located or if
there is no such collateral, in Maryland. 
All Claims shall be determined by one arbitrator; however, if Claims
exceed Five Million and 00/100 Dollars ($5,000,000.00), upon the request of any
party, the Claims shall be decided by three arbitrators.  All arbitration hearings shall commence
within ninety (90) days of the demand for arbitration and close within ninety
(90) days of commencement and the award of the arbitrator(s) shall be
issued within thirty (30) days of the close of the hearing.  However, the arbitrator(s), upon a showing of
good cause, may extend the commencement of the hearing for up to an additional
sixty (60) days.  The arbitrator(s) shall
provide a concise written statement of reasons for the award.  The arbitration award may be submitted to any
court having jurisdiction to be confirmed and enforced.

 

The
arbitrator(s) will have the authority to decide whether any Claim is
barred by the statute of limitations and, if so, to dismiss the arbitration on
that basis.  For purposes of the
application of the statute of limitations, the service on JAMS under applicable
JAMS rules of a notice of Claim is the equivalent of the filing of a
lawsuit.  Any dispute concerning this
arbitration provision or whether a claim is arbitrable shall be determined by
the arbitrator(s).  The arbitrator(s) shall
have the power to award legal fees pursuant to the terms of the Loan Agreement.

 

This
paragraph does not limit the right of the Lender to: (i) exercise
self-help remedies, such as but not limited to, setoff; (ii) initiate
judicial or nonjudicial foreclosure against any real or personal property
collateral; (iii) exercise any judicial or power of sale rights; or (iv) act
in a court of law to obtain an interim remedy, such as but not limited to,
injunctive relief, writ of possession or appointment of a receiver, or
additional or supplementary remedies.

 

17.                                 WAIVER OF JURY TRIAL. BY AGREEING TO BINDING ARBITRATION, THE
BORROWER AND THE LENDER IRREVOCABLY AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF A CLAIM. 
FURTHERMORE, WITHOUT INTENDING IN ANY WAY TO LIMIT THIS AGREEMENT TO
ARBITRATE, TO THE EXTENT ANY CLAIM IS NOT ARBITRATED, THE PARTIES IRREVOCABLY
AND VOLUNTARILY WAIVE ANY RIGHT THEY MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF SUCH CLAIM.  THIS PROVISION IS
A MATERIAL INDUCEMENT FOR THE PARTIES ENTERING INTO THIS SEVENTH AMENDMENT AND
THE LOAN AGREEMENT.

 

18.                                 No Oral Agreements. 
This Seventh Amendment, the Loan Agreement, the other Loan Documents,
and the other Amendment Documents constitute the entire agreement of the
parties concerning the subject matter hereof and may not be contradicted by
evidence of prior, contemporaneous or subsequent oral agreements of the
parties.  There are no unwritten or oral
agreements between the parties.

 

9

 

19.                                 Illegality or
Unenforceability.  Any determination that any
provision or application of this Seventh Amendment is invalid, illegal, or
unenforceable in any respect, or in any instance, shall not affect the
validity, legality, or enforceability of any such provision in any other
instance, or the validity, legality, or enforceability of any other provision of
this Seventh Amendment.

 

20.                                 Counterparts.  This Seventh
Amendment may be executed in multiple identical counterparts, each of which
when duly executed shall be deemed an original, and all of which shall be
construed together as one agreement. 
This Seventh Amendment
will not be binding on or constitute evidence of a contract between the parties
hereto until such time as a counterpart has been executed by such party and a
copy thereof is delivered to each other party to this Seventh Amendment.

 

(Signatures
and Notary Acknowledgments continue on following pages)

 

10

 

IN
WITNESS WHEREOF, the undersigned have duly executed and delivered this Seventh
Amendment to Revolving Line of Credit Loan Agreement, Term Loan Agreement and
Security Agreement under seal as of the day and year first hereinabove set
forth.

 

	
   

  	
  EF
  JOHNSON TECHNOLOGIES, INC., a Delaware corporation
  (formerly known as EFJ, INC.)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jana Ahlfinger Bell

  	
   (SEAL)

  
	
   

  	
  Name:
  Jana Ahlfinger Bell

  
	
   

  	
  Title: Executive Vice President and Chief
  Financial Officer

  

 

	
  State
  of Texas

  	
  )

  
	
  County of Dallas

  	
  ) To Wit:

  

 

Acknowledged
before me by Jana Ahlfinger Bell as Executive Vice President and Chief
Financial Officer of EF Johnson Technologies, Inc. (formerly known as EFJ, Inc.),
a Delaware corporation, this 15th of May, 2010.

 

	
   

  	
  /s/
  Elaine Flud Rodriguez

  
	
   

  	
  Notary
  Public

  

 

 

My commission expires: 09/23/2013

My registration number:  00138409-5

 

 

	
   

  	
  E.F.
  JOHNSON COMPANY, a Minnesota corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jana Ahlfinger Bell

  	
    (SEAL)

  
	
   

  	
  Name:
  Jana Ahlfinger Bell

  
	
   

  	
  Title: Chief Financial Officer

  

 

	
  State
  of Texas

  	
  )

  
	
  County of Dallas

  	
  ) To Wit:

  

 

Acknowledged
before me by Jana Ahlfinger Bell as Chief Financial Officer of E.F.  Johnson Company, a Minnesota corporation,
this 15th of
May, 2010.

 

	
   

  	
  /s/
  Elaine Flud Rodriguez

  
	
   

  	
  Notary
  Public

  

 

 

My commission expires: 09/23/2013

My registration number:  00138409-5

 

11

 

	
   

  	
  3e
  TECHNOLOGIES INTERNATIONAL, INC., a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Jana Ahlfinger Bell

  	
    (SEAL)

  
	
   

  	
  Name:
  Jana Ahlfinger Bell

  
	
   

  	
  Title: Chief Financial Officer

  

 

	
  State
  of Texas

  	
  )

  
	
  County of Dallas

  	
  ) To Wit:

  

 

Acknowledged
before me by Jana Ahlfinger Bell as Chief Financial Officer of 3e Technologies
International, Inc., a Maryland corporation, this 15th of May, 2010.

 

	
   

  	
  /s/
  Elaine Flud Rodriguez

  
	
   

  	
  Notary
  Public

  

 

 

My commission expires: 09/23/2013

My registration number:  00138409-5

 

	
   

  	
  BANK
  OF AMERICA, N.A., a national banking association

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Fred P. Lucy, II

  
	
   

  	
  (SEAL)

  
	
   

  	
  Name:
  Fred P. Lucy, II

  
	
   

  	
  Title: Sr. Vice President

  

 

	
  State
  of Rhode Island

  	
  )

  
	
  County of Providence

  	
  ) To Wit:

  

 

Acknowledged
before me by Fred. P. Lucy, II as Sr. Vice President of Bank of America,
N.A., this 14th day of May, 2010.

 

	
   

  	
  /s/
  Jane A. Martin

  
	
   

  	
  Notary
  Public

  

 

 

My commission expires: 2/12/14

My registration number:  42760

 

12

 

Exhibit “A”

 

Form of Sixth Amendment to Revolving Note

 

13

 

Exhibit “B”

 

Form of Fourth Amendment to Term Note

 

14

 

Exhibit “C”

 

Form of Second Amendment to Pledge Agreement

 

15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00173-of-00352.parquet"}]]