Document:

prcp-ex101_6.htm

Exhibit 10.1

 

U.S. Small Business Administration

AUTHORIZATION

Paycheck Protection Program

 

	
SBA Loan# 24335271-00
	
 
	
 

	
U.S. Small Business Administration
	
 
	
Lender:

	
Fresno Loan Servicing Center
	
 
	
TCF National Bank

	
2719 N Air Fresno Drive
	
 
	
333 E. Main Street

	
Fresno CA 93727-1547
	
 
	
Midland MI 48640

 

Lender is issuing this Paycheck Protection Program Loan Authorization for SBA to guarantee

100% of a loan in the amount of $2,545,205.00 to be made by Lender to assist:

 

	
Borrower:
	
Perceptron, Inc.

	
 
	
47827 Halyard Drive

	
 
	
Plymouth, MI 48170

 

Lender must have a valid SBA Loan Guaranty Agreement (SBA Form 750 and 750B for short term loans, if applicable).

 

Lender’s issuance is in accordance with the SBA Loan Guaranty Agreement as applicable to a Paycheck Protection Program Loan.

 

Lender must comply with all SBA Loan Program Requirements applicable to the Paycheck Protection Program, which may be amended from time to time.

 

This Authorization is subject to the application (including SBA Form 2483) submitted by Borrower to the Lender, the Lender’s representations to SBA, and the following terms and conditions:

 

1.Lender shall fully disburse the loan at closing.

 

2.The GUARANTEE FEE IS: $0 as waived under the Paycheck Protection Program.

 

3.Lender must have Borrower execute a Note containing the following repayment terms: See Promissory Note attached.

 

4.Proceeds advanced under the Paycheck Protection Program are intended to be disbursed for the following eligible purposes: eligible payroll costs, costs related to the continuation of group healthcare benefits, interest payments on mortgage and other debt obligations entered before February 15, 2020, rent payments on leases entered before February 15, 2020, utility payments on service contracts entered before February 15, 2020, and refinance of an SBA EIDL loan made between January 31, 2020 and April 3, 2020.

 

LENDER

 

				
	
By:
	

	
 
	
April 16, 2020

	
 
	
 

	
 
	
 

	
 
	
Authorized Signer, Title
	
 
	
(Date)

 

 

 

 

CORPORATE RESOLUTION TO BORROW

 

								
	
Principal
	
Loan Date
	
Maturity
	
Loan No
	
Call / Coll
	
Account
	
Officer
	
Initials

	
$2,545,205.00
	
04-16-2020
	
04-01-2022
	
801501081
	
4A / US
	
 
	
***
	
 

	
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.

	
Any item above containing "***" has been omitted due to text length limitations.

 

	
 
	
 
	
 
	
Lender:
	
TCF National Bank

	
Corporation:
	
Perceptron, Inc.
	
 
	
 
	
SBA PPP - 6582

	
 
	
47827  Halyard Drive
	
 
	
 
	
2508 South Louise Ave

	
 
	
Plymouth, MI 48170
	
 
	
 
	
Sioux Falls, SD 57106

	
 
	
 
	
 
	
 
	
 

 

I, THE UNDERSIGNED, DO HEREBY CERTIFY THAT:

THE CORPORATION'S EXISTENCE. The complete and correct name of the Corporation is Perceptron, Inc. ("Corporation"). The Corporation is a corporation for profit which is, and at all times shall be, duly organized, validly existing, and in good standing under and by virtue of the laws of the State of Michigan. The Corporation is duly authorized to transact business in all other states in which the Corporation is doing business, having obtained all necessary filings, governmental licenses and approvals for each state in which the Corporation is doing business.  Specifically, the Corporation is, and at all times shall be, duly qualified as a foreign corporation in all states in which the failure  to so  qualify would have a material adverse effect on its business or financial condition. The Corporation has the full  power and authority  to own its  properties and to transact the business in which it is presently engaged or presently proposes to engage. The Corporation maintains an office at 47827 Halyard Drive, Plymouth, MI 48170. Unless the Corporation has designated otherwise in writing,  the  principal office  is the  office  at which the Corporation keeps its books and records. The Corporation will notify Lender prior to any change in the location of the Corporation's state of organization or any change in the Corporation's name.  The Corporation shall do all things necessary to preserve and to keep in full  force and effect its existence, rights and privileges, and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable to the Corporation and the Corporation's business activities.

RESOLUTIONS ADOPTED. At a meeting of the Directors of the Corporation, or if the Corporation is a close corporation having no Board of Directors then at a meeting of the Corporation's shareholders, duly called and held on April 16, 2020, at which a quorum was present and  voting, or by other duly authorized action in lieu of a meeting, the resolutions set forth in this Resolution were adopted.

OFFICER. The following named person is an officer of Perceptron, Inc.:

 

						
	
NAMES
	
TITLES
	
AUTHORIZED
	
 
	

	
ACTUAL SIGNATURES

	
Bill Roeschlein
	
Treasurer
	
Y
	
X
	
 

	
 
	
 
	
 
	
 
	
 

 

ACTIONS AUTHORIZED. The authorized person listed above may enter into any agreements of any nature with Lender, and those agreements will bind the Corporation. Specifically, but without limitation, the authorized person is authorized,  empowered, and directed  to do the  following for and on behalf of the Corporation:

Borrow Money. To borrow, as a cosigner or otherwise, from time to time from Lender, on such terms as may be agreed upon between the Corporation and Lender, such sum or sums of money as in his or her judgment should be borrowed, without limitation.

Execute Notes. To execute and deliver to Lender the promissory note or notes, or other evidence of the Corporation's credit accommodations, on Lender's forms, at such rates of interest and on such terms as may be agreed upon, evidencing the sums of money so borrowed or any of the Corporation's indebtedness to Lender, and also to execute and deliver to Lender one or more renewals, extensions, modifications, refinancings, consolidations, or substitutions for one or more of the notes, any portion of the notes, or any other evidence of credit accommodations.

Execute Security Documents. To execute and deliver to Lender the forms of mortgage, deed of trust, pledge agreement, hypothecation agreement, and other security agreements and financing statements which Lender may require and which shall evidence the terms and conditions under and pursuant to which such liens and encumbrances, or any of them, are given; and also to execute and deliver to Lender any other written instruments, any chattel paper, or any other collateral, of any kind or nature, which Lender may deem necessary or proper in connection with or pertaining to the giving of the liens and encumbrances.

Negotiate Items. To draw, endorse, and discount with Lender all drafts, trade acceptances, promissory notes, or other evidences of indebtedness payable to or belonging to the Corporation or in which the Corporation may have an interest, and either to receive cash for the same or to cause such proceeds to be credited to the Corporation's account with Lender, or to cause such other disposition of the   proceeds derived therefrom as he or she may deem advisable.

Further Acts. In the case of lines of credit, to designate additional or alternate individuals as being authorized to request advances under such lines, and in all cases, to do and perform such other acts and things, to pay any and all fees and costs, and to execute and deliver  such other documents and agreements, including agreements waiving the right to a trial by jury, as the officer may in his or her discretion deem reasonably necessary or proper in order to carry into effect the provisions of this Resolution.

ASSUMED BUSINESS NAMES. The Corporation has filed or recorded all documents or filings required by law relating to all assumed business names used by the Corporation. Excluding the name of the Corporation, the following is a complete list of all assumed business names under which the Corporation does business: None.

NOTICES TO LENDER. The Corporation will promptly notify Lender in writing at Lender's address shown above (or such other addresses as Lender may designate from time to time) prior to any (A) change in  the Corporation's name;  (B)  change in  the  Corporation's assumed  business name(s); (C) change in the management of the Corporation; (D) change in the authorized signer(s); (E) change in the Corporation's principal office address; (F) change in the Corporation's state of organization; (G) conversion of the Corporation to a new or different type of business entity; or (H) change in any other aspect of the Corporation that directly or indirectly relates to any agreements between the  Corporation and Lender. No change in the Corporation's name or state of organization will take effect until after Lender has received notice.

CERTIFICATION CONCERNING OFFICERS AND RESOLUTIONS. The officer named above is duly elected, appointed, or employed by or for the Corporation, as the case may be, and occupies the position set opposite his or her respective name. This Resolution now stands of record on  the books of the Corporation, is in full force and effect, and has not been modified or revoked in any manner whatsoever.

NO CORPORATE SEAL. The Corporation has no corporate seal, and therefore, no seal is affixed to this Resolution.

CONTINUING VALIDITY. Any and all acts authorized pursuant to this Resolution and performed prior to the passage of this Resolution are hereby ratified and approved. This Resolution shall be continuing, shall remain in full force and effect and Lender may rely on it until written notice of its revocation shall have been delivered to and received by Lender at Lender's address shown above (or such addresses as Lender may designate from time to time).   Any such notice shall not affect any of the Corporation's agreements or commitments in effect at the time notice   is given.

IN TESTIMONY WHEREOF, I have hereunto set my hand and attest that the signature set opposite the name listed above is his or her genuine signature.

I have read all the provisions of this Resolution, and I personally and on behalf of the Corporation certify that all statements and representations made in this Resolution are true and correct. This Corporate Resolution to Borrow is dated April 16, 2020.

 

		
	
CERTIFIED TO AND ATTESTED BY:

	
 
	

	
X
	
 

	
 
	
Bill Roeschlein, Treasurer of Perceptron, Inc.

 

NOTE: If the officer signing  this Resolution  is designated by  the foregoing document  as one  of the officers  authorized to act  on the  Corporation's behalf, it  is advisable to  have this  Resolution  signed by at least one non-authorized officer of the Corporation.

 

LaserPro, Ver. 18.4.0.040 Copr. Finastra USA Corporation 1997, 2020. All Rights Reserved. - MI K:\CFI\LPL\C10.FC TR-215525 PR-217

 

 

 

 

PROMISSORY NOTE

 

								
	
Principal
	
Loan Date
	
Maturity
	
Loan No
	
Call / Coll
	
Account
	
Officer
	
Initials

	
$2,545,205.00
	
04-16-2020
	
04-01-2022
	
801501081
	
4A / US
	
 
	
***
	
 

	
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.

	
Any item above containing "***" has been omitted due to text length limitations.

 

	
 
	
 
	
 
	
Lender:
	
TCF National Bank

	
Borrower:
	
Perceptron, Inc.
	
 
	
 
	
SBA PPP - 6582

	
 
	
47827 Halyard Drive
	
 
	
 
	
2508 South Louise Ave

	
 
	
Plymouth, MI 48170
	
 
	
 
	
Sioux Falls, SD 57106

	
 
	
 
	
 
	
 
	
 

 

						
	
Principal Amount:
	
$2,545,205.00
	
Interest Rate:
	
1.000%
	
Date of Note:
	
April 16, 2020

 

PROMISE TO PAY. Perceptron, Inc. ("Borrower") promises to pay to TCF National Bank ("Lender"), or order, in lawful money of the United States of America, the principal amount of Two Million Five Hundred Forty-five Thousand Two Hundred Five & 00/100 Dollars ($2,545,205.00), together with interest on the unpaid principal balance from April 16, 2020, calculated as described in the "INTEREST CALCULATION METHOD" paragraph using an interest rate of 1.000% per annum, until paid in full. The interest rate may change under the terms and conditions of the "INTEREST AFTER DEFAULT" section.

PAYMENT.  Borrower will pay this loan in 18 payments of $143,175.22 each payment.   Borrower's first payment is due November 1, 2020,   and all subsequent payments are due on the same day of each month after that. Borrower's final payment will be due on April 1, 2022, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; and then to any late charges.

INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/365 simple interest basis; that is, by applying the ratio of the interest rate over the number of days in a year (366 during leap years), multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note is computed using this method.

LOAN FEES AND INTEREST.

Notwithstanding anything otherwise set forth in this Note, the interest rate on the loan evidenced by this Note shall at all times be 1.000% per annum, and Borrower shall not be charged (or have any liability for) any fees prohibited under the Paycheck Protection Program authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act, including without limitation any late charge or dishonored item fee. The terms of this Note providing for a late charge, increased interest rate after default and a dishonored item fee are hereby expressly and permanently waived.

RECEIPT OF PAYMENTS. All payments must be made in U.S. dollars and must be received by Lender at:

Loan Service Center

P.O. Box 1527

.Midland, MI 48641

All payments must be received by Lender consistent with any written payment instructions provided by Lender.

PREPAYMENT. Borrower may pay without penalty all or a portion of the  amount owed  earlier  than it  is  due.  Early  payments will  not,  unless  agreed to by Lender in writing, relieve Borrower of  Borrower's  obligation to  continue to  make  payments  under  the  payment  schedule.  Rather,  early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full",  "without  recourse",  or  similar  language.  If  Borrower  sends  such  a  payment,  Lender  may  accept  it  without  losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written  communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: TCF National Bank, SBA PPP - 6582, 2508 South Louise Ave, Sioux Falls, SD 57106.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by 5.000 percentage points. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.

DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note:

Payment Default. Borrower fails to make any payment when due under this Note.

Other Defaults.  Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in  any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.

Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false  or misleading at any time thereafter.

Insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout,  or  the  commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any  creditor  of  Borrower  or by  any  governmental  agency  against  any  collateral  securing  the  loan. This includes  a garnishment  of  any of  Borrower's accounts,  including  deposit accounts,  with Lender.  However,  this  Event of  Default shall   not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the  basis of  the creditor  or  forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or            a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender,  in  its  sole  discretion,  as  being  an  adequate  reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or  disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired.

Insecurity. Lender in good faith believes itself insecure.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including reasonable attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals.  If not prohibited by applicable law, Borrower also will pay any court costs, in addition to   all other sums provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Michigan without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Michigan.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Oakland County, State of Michigan.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $37.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored.

 

 

 

PROMISSORY NOTE

 

			
	
Loan No: 801501081
	
(Continued)
	
Page 2

 

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future.  However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by   law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the debt against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.

COLLATERAL. This loan is unsecured.

SBA PROVISION. When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using  such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax,  or liability. As to this Note, Borrower may  not claim or assert against SBA any local or state law to deny any obilgation, defeat any claim of SBA, or preempt federal law.

REPRESENTATIONS, AUTHORIZATIONS AND CERTIFICATIONS. Borrower  hereby certifies that:  (a) Borrower  has read the statements included   in the online credit application for the loan evidenced by this  Note,  including  the  Statements  Required  by  Law  and  Executive  Orders,  and Borrower understands them; (b) Borrower is eligible to receive a loan under the rules in effect at the time of application that had been issued by           the Small Business Administration  (SBA) implementing the Paycheck  Protection Program under Division  A, Title I of  the Coronavirus Aid,  Relief,    and Economic Security Act (CARES Act) (the “Paycheck Protection Program Rule”); (c) Borrower (1) is an independent contractor, eligible  self-employed individual, or sole proprietor or (2) employs no more than the greater  of 500  or employees  or, if  applicable, the  size standard in  number of employees established by the SBA in 13 C.F.R. 121.201 for the Borrower’s industry; (d) Borrower will comply, whenever applicable,           with the civil rights and other limitations in the application form; (e) all SBA loan proceeds will  be  used  only  for  business-related purposes  as specified in the loan application and consistent with  the  Paycheck  Protection  Program  Rule;  (f)  to  the  extent  feasible,  Borrower  will  purchase only American-made equipment and  products; (g) Borrower is  not engaged in any  activity  that is  illegal  under federal, state or  local law; (h) any   loan received by Borrower under Section 7(b)(2) of the Small  Business  Act  between  January  31,  2020  and  April  3,  2020  was  for  a  purpose other than paying payroll costs and other allowable uses of loans under  the  Paycheck  Protection  Program  Rule.  For  Borrowers  who  are  individuals: Borrower authorizes the SBA to request criminal record information about Borrower from criminal justice agencies for the purpose of determining eligibility for programs authorized by the Small Business Act, as amended

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

ELECTRONIC SIGNATURE.

This Note may be signed and delivered electronically using an electronic signature platform or other electronic means approved by Lender, and such electronically signed version shall be valid and enforceable as an original and admissible as such in any court or other proceeding; provided that if there shall simultaneously exist both a "paper out" printed version and an electronic version of this Note, then the "paper out" printed version of this Note bearing the legend "Original" applied and signed on behalf of Lender shall constitute the sole original and authoritative version.

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability.  All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this  loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify  this loan without the consent of or notice to anyone other than the party with whom the modification is made.  The obligations under this  Note  are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

 

 

 

		
	
PERCEPTRON, INC.

	
 
	

	
By:
	
 

	
 
	
Bill Roeschlein, Treasurer of Perceptron, Inc.

 

LaserPro, Ver. 18.4.0.040 Copr. Finastra USA Corporation 1997, 2020. All Rights Reserved. - MI K:\CFI\LPL\D20.FC TR-215525 PR-217

 

 

 

 

PROMISSORY NOTE

 

								
	
Principal
	
Loan Date
	
Maturity
	
Loan No
	
Call / Coll
	
Account
	
Officer
	
Initials

	
$2,545,205.00
	
04-16-2020
	
04-01-2022
	
801501081
	
4A / US
	
 
	
***
	
 

	
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.

	
Any item above containing "***" has been omitted due to text length limitations.

 

	
 
	
 
	
 
	
Lender:
	
TCF National Bank

	
Borrower:
	
Perceptron, Inc.
	
 
	
 
	
SBA PPP - 6582

	
 
	
47827  Halyard Drive
	
 
	
 
	
2508 South Louise Ave

	
 
	
Plymouth, MI 48170
	
 
	
 
	
Sioux Falls, SD 57106

	
 
	
 
	
 
	
 
	
 

 

						
	
Principal Amount:
	
$2,545,205.00
	
Interest Rate:
	
1.000%
	
Date of Note:
	
April 16, 2020

PROMISE TO PAY. Perceptron, Inc. ("Borrower") promises to pay to TCF National Bank ("Lender"), or order, in lawful money of the United States of America, the principal amount of Two Million Five Hundred Forty-five Thousand Two Hundred Five & 00/100 Dollars ($2,545,205.00), together with interest on the unpaid principal balance from April 16, 2020, calculated as described in the "INTEREST CALCULATION METHOD" paragraph using an interest rate of 1.000% per annum, until paid in full. The interest rate may change under the terms and conditions of the "INTEREST AFTER DEFAULT" section.

PAYMENT.  Borrower will pay this loan in 18 payments of $143,175.22 each payment.   Borrower's first payment is due November 1, 2020,   and all subsequent payments are due on the same day of each month after that. Borrower's final payment will be due on April 1, 2022, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Unless otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; then to principal; and then to any late charges.

INTEREST CALCULATION METHOD. Interest on this Note is computed on a 365/365 simple interest basis; that is, by applying the ratio of the interest rate over the number of days in a year (366 during leap years), multiplied by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note is computed using this method.

LOAN FEES AND INTEREST.

Notwithstanding anything otherwise set forth in this Note, the interest rate on the loan evidenced by this Note shall at all times be 1.000% per annum, and Borrower shall not be charged (or have any liability for) any fees prohibited under the Paycheck Protection Program authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act, including without limitation any late charge or dishonored item fee. The terms  of this Note providing for a late charge, increased interest rate after default and a dishonored item fee are hereby expressly and permanently waived.

RECEIPT OF PAYMENTS. All payments must be made in U.S. dollars and must be received by Lender at: Loan

Service Center

P.O. Box 1527

.Midland, MI 48641

All payments must be received by Lender consistent with any written payment instructions provided by Lender.

PREPAYMENT. Borrower may pay without penalty all or a portion of the  amount owed  earlier  than it  is  due.  Early  payments will  not,  unless  agreed to by Lender in writing, relieve Borrower of  Borrower's  obligation to  continue to  make  payments  under  the  payment  schedule.  Rather,  early payments will reduce the principal balance due and may result in Borrower's making fewer payments. Borrower agrees not to send Lender payments marked "paid in full",  "without  recourse",  or  similar  language.  If  Borrower  sends  such  a  payment,  Lender  may  accept  it  without  losing any of Lender's rights under this Note, and Borrower will remain obligated to pay any further amount owed to Lender. All written  communications concerning disputed amounts, including any check or other payment instrument that indicates that the payment constitutes "payment in full" of the amount owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered to: TCF National Bank, SBA PPP - 6582, 2508 South Louise Ave, Sioux Falls, SD 57106.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the regularly scheduled payment.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the interest rate on this Note shall be increased by 5.000 percentage points. However, in no event will the interest rate exceed the maximum interest rate limitations under applicable law.

DEFAULT. Each of the following shall constitute an event of default ("Event of Default") under this Note:

Payment Default. Borrower fails to make any payment when due under this Note.

Other Defaults.  Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this Note or in  any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.

Default in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this Note or perform Borrower's obligations under this Note or any of the related documents.

False Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower's behalf under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false  or misleading at any time thereafter.

Insolvency. The dissolution or termination of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's property, any assignment for the benefit of creditors, any type of creditor workout,  or  the  commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any  creditor  of  Borrower  or by  any  governmental  agency  against  any  collateral  securing  the  loan. This includes a garnishment  of  any of  Borrower's accounts,  including  deposit accounts,  with Lender.  However,  this  Event of  Default shall   not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim which is the  basis of  the creditor  or  forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender,  in  its  sole  discretion,  as  being  an  adequate  reserve or bond for the dispute.

Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or  disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

Adverse Change. A material adverse change occurs in Borrower's financial condition, or Lender believes the prospect of payment or performance of this Note is impaired.

Insecurity. Lender in good faith believes itself insecure.

LENDER'S RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest immediately due, and then Borrower will pay that amount.

ATTORNEYS' FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay Lender that amount. This includes, subject to any limits under applicable law, Lender's reasonable attorneys' fees and Lender's legal expenses whether or not there is a lawsuit, including reasonable attorneys' fees and expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and appeals.  If not prohibited by applicable law, Borrower also will pay any court costs, in addition to   all other sums provided by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the other.

GOVERNING LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Michigan without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of Michigan.

CHOICE OF VENUE. If there is a lawsuit, Borrower agrees upon Lender's request to submit to the jurisdiction of the courts of Oakland County, State of Michigan.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $37.00 if Borrower makes a payment on Borrower's loan and the check or preauthorized charge with which Borrower pays is later dishonored.

 

 

PROMISSORY NOTE

 

			
	
Loan No: 801501081
	
(Continued)
	
Page 2

 

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may open in the future.  However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited by   law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the debt against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.

COLLATERAL. This loan is unsecured.

SBA PROVISION. When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and other purposes. By using  such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax,  or liability. As to this Note, Borrower may  not claim or assert against SBA any local or state law to deny any obilgation, defeat any claim of SBA, or preempt federal law.

REPRESENTATIONS, AUTHORIZATIONS AND CERTIFICATIONS. Borrower  hereby certifies that:  (a) Borrower  has read the statements included   in the online credit application for the loan evidenced by this  Note,  including  the  Statements  Required  by  Law  and  Executive  Orders,  and Borrower understands them; (b) Borrower is eligible to receive a loan under the rules in effect at the time of application that had been issued by           the Small Business Administration  (SBA) implementing the Paycheck  Protection Program under Division  A, Title I of  the Coronavirus Aid,  Relief,    and Economic Security Act (CARES Act) (the “Paycheck Protection Program Rule”); (c) Borrower (1) is an independent contractor, eligible  self-employed individual, or sole proprietor or (2) employs no more than the greater  of 500  or employees  or, if  applicable, the  size standard in  number of employees established by the SBA in 13 C.F.R. 121.201 for the Borrower’s industry; (d) Borrower will comply, whenever applicable,           with the civil rights and other limitations in the application form; (e) all SBA loan proceeds will  be  used  only  for  business-related purposes  as specified in the loan application and consistent with  the  Paycheck  Protection  Program  Rule;  (f)  to  the  extent  feasible,  Borrower  will  purchase only American-made equipment and  products; (g) Borrower is  not engaged in any  activity  that is  illegal  under federal, state or  local law; (h) any   loan received by Borrower under Section 7(b)(2) of the Small  Business  Act  between  January  31,  2020  and  April  3,  2020  was  for  a  purpose other than paying payroll costs and other allowable uses of loans under  the  Paycheck  Protection  Program  Rule.  For  Borrowers  who  are  individuals: Borrower authorizes the SBA to request criminal record information about Borrower from criminal justice agencies for the purpose of determining eligibility for programs authorized by the Small Business Act, as amended

 

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

ELECTRONIC SIGNATURE.

This Note may be signed and delivered electronically using an electronic signature platform or other electronic means approved by Lender, and such electronically signed version shall be valid and enforceable as an original and admissible as such in any court or other proceeding; provided that if there shall simultaneously exist both a "paper out" printed version and an electronic version of this Note, then the "paper out" printed version of this Note bearing the legend "Original" applied and signed on behalf of Lender shall constitute the sole original and authoritative version.

 

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs, guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether as maker, guarantor, accommodation maker or endorser, shall be released from liability.  All such parties agree that Lender may renew or extend (repeatedly and for any length of time) this  loan or release any party or guarantor or collateral; or impair, fail to realize upon or perfect Lender's security interest in the collateral; and take any other action deemed necessary by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify  this loan without the consent of or notice to anyone other than the party with whom the modification is made.  The obligations under this  Note  are joint and several.

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

 

			
	
PERCEPTRON, INC.
	
	
 
	
 

	
By:
	
COPY

	
 
	
Bill Roeschlein, Treasurer of Perceptron, Inc.

 

LaserPro, Ver. 18.4.0.040 Copr. Finastra USA Corporation 1997, 2020. All Rights Reserved. - MI K:\CFI\LPL\D20.FC TR-215525 PR-217

 

 

 

DISBURSEMENT REQUEST AND AUTHORIZ

 

								
	
Principal
	
Loan Date
	
Maturity
	
Loan No
	
Call / Coll
	
Account
	
Officer
	
Initials

	
$2,545,205.00
	
04-16-2020
	
04-01-2022
	
801501081
	
4A / US
	
 
	
***
	
 

	
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.

	
Any item above containing "***" has been omitted due to text length limitations.

 

	
 
	
 
	
 
	
Lender:
	
TCF National Bank

	
Borrower:
	
Perceptron, Inc.
	
 
	
 
	
SBA PPP - 6582

	
 
	
47827  Halyard Drive
	
 
	
 
	
2508 South Louise Ave

	
 
	
Plymouth, MI 48170
	
 
	
 
	
Sioux Falls, SD 57106

	
 
	
 
	
 
	
 
	
 

 

LOAN TYPE. This is a Fixed Rate (1.000%) Nondisclosable Loan to a Corporation for $2,545,205.00 due on April 1, 2022.

 

PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for:

 

Personal, Family, or Household Purposes or Personal Investment.

X Business (Including Real Estate Investment).

 

SPECIFIC PURPOSE. The specific purpose of this loan is: Loan funds will be used solely for business-related purposes to retain workers and maintain payroll or make mortgage interest payments, lease payments and utility payments to support Borrower’s ongoing operations, and if applicable to refinance eligible Economic Injury Disaster Loan, each as permitted by the Paycheck Protection Program authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act.

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be disbursed until all of Lender's conditions for making the loan have been satisfied. Please disburse the loan proceeds of $2,545,205.00 as follows:

 

 

		
	
Amount paid to Borrower directly:
	
$2,545,205.00

	
$2,545,205.00 Deposited to Account # 2552278950; Routing #072410013 (Chemical Bank)
	
 

	
Note Principal:
	
$2,545,205.00

	
 
	
 

 

 

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER'S FINANCIAL CONDITION AS DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED APRIL 16, 2020.

BORROWER:

 

 

			
	
PERCEPTRON, INC.
	
	
 
	

	
By:
	
 

	
 
	
Bill Roeschlein, Treasurer of Perceptron, Inc.

 

LaserPro, Ver. 18.4.0.040 Copr. Finastra USA Corporation 1997, 2020. All Rights Reserved. - MI K:\CFI\LPL\I20.FC TR-215525 PR-217

 

 

 

DISBURSEMENT REQUEST AND AUTHORIZ

 

								
	
Principal
	
Loan Date
	
Maturity
	
Loan No
	
Call / Coll
	
Account
	
Officer
	
Initials

	
$2,545,205.00
	
04-16-2020
	
04-01-2022
	
801501081
	
4A / US
	
 
	
***
	
 

	
References in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.

	
Any item above containing "***" has been omitted due to text length limitations.

 

	
 
	
 
	
 
	
Lender:
	
TCF National Bank

	
Borrower:
	
Perceptron, Inc.
	
 
	
 
	
SBA PPP - 6582

	
 
	
47827  Halyard Drive
	
 
	
 
	
2508 South Louise Ave

	
 
	
Plymouth, MI 48170
	
 
	
 
	
Sioux Falls, SD 57106

	
 
	
 
	
 
	
 
	
 

 

LOAN TYPE. This is a Fixed Rate (1.000%) Nondisclosable Loan to a Corporation for $2,545,205.00 due on April 1, 2022.

 

PRIMARY PURPOSE OF LOAN. The primary purpose of this loan is for:

 

Personal, Family, or Household Purposes or Personal Investment.

X Business (Including Real Estate Investment).

 

SPECIFIC PURPOSE. The specific purpose of this loan is: Loan funds will be used solely for business-related purposes to retain workers and maintain payroll or make mortgage interest payments, lease payments and utility payments to support Borrower’s ongoing operations, and if applicable to refinance eligible Economic Injury Disaster Loan, each as permitted by the Paycheck Protection Program authorized by the Coronavirus Aid, Relief and Economic Security (CARES) Act.

DISBURSEMENT INSTRUCTIONS. Borrower understands that no loan proceeds will be disbursed until all of Lender's conditions for making the loan have been satisfied. Please disburse the loan proceeds of $2,545,205.00 as follows:

 

		
	
Amount paid to Borrower directly:
	
$2,545,205.00

	
$2,545,205.00 Deposited to Account # 2552278950; Routing #072410013 (Chemical Bank)
	
 

	
Note Principal:
	
$2,545,205.00

	
 
	
 

 

FINANCIAL CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER'S FINANCIAL CONDITION AS DISCLOSED IN BORROWER'S MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED APRIL 16, 2020.

 

	
BORROWER:

	
 
	
 

	
 
	
 

	
PERCEPTRON, INC.

	
 

	
By:
	
COPY

	
 
	
Bill Roeschlein, Treasurer of Perceptron, Inc.

	
 
	
 

 

LaserPro, Ver. 18.4.0.040 Copr. Finastra USA Corporation 1997, 2020. All Rights Reserved. - MI K:\CFI\LPL\I20.FC TR-215525 PR-217

 

 

 

 

 

			
	
Certificate Of Completion

	
Envelope Id: 7259499D94FE4A1F9C4F8582F62D27EC
	
 
	
Status: Completed

	
Subject: Please DocuSign: 1 -SBA PPP Perceptron, Inc. #801501081
	
 

	
Contract Number: 801501081
	
 
	
 

	
Source Envelope:
	
 
	
 

	
Document Pages: 11
	
Signatures: 5
	
Envelope Originator:

	
 
	
Initials: 0
	
Maria Murawske

	
Certificate Pages:5
	
 
	
1405 Xenium Lane N

	
AutoNav: Enabled
	
 
	
Plymouth, MN 55441

	
EnvelopeId Stamping: Enabled
	
 
	
Maria.Murawske@chemicalbank.com

	
Time Zone: (UTC-05:00) Eastern Time (US & Canada)
	
 
	
IP Address: 205.167.199.122

	
 
	
 
	
 

	
Record Tracking

	
Status: Original

4/16/2020 9:09:02 AM
	
Holder: Maria Murawske

Maria.Murawske@chemicalbank.com
	
Location: DocuSign

	
Status: Authoritative Copy (2 of 2 documents) 4/16/2020 11:06:20 AM
	
Holder: Maria Murawske

Maria.Murawske@chemicalbank.com 
	
Location: DocuSign

	
Status: Receipt Confirmed

4/16/2020 11:06:46 AM
	
Holder: Maria Murawske

Maria.Murawske@chemicalbank.com
	
Location: TCF National Bank- eO Vaulting

	
 
	
 
	
 

	
Signer Events
	
Signature
	
Timestamp

	
Maria Murawske maria.murawske@chemicalbank.com

Chemical Bank a division of TCF Bank

Security Level: Email, Account Authentication
	

	
Sent: 4/16/2020 9:11:21 AM

Viewed: 4/16/2020 9:11:26 AM

Signed: 4/16/2020 9:11:30 AM

	
(None)
	
Signature Adoption: Pre-selected Style
	
 

	
 
	
Using IP Address: 205.167.199.122
	
 

	
 
	
 
	
 

	
Electronic Record and Signature Disclosure:

Not Offered via DocuSign
	
 
	
 

	
 
	
 
	
 

	
Bill Roeschlein

wroeschlein@perceptron.com
	

	
Sent: 4/16/2020 9:11:31 AM

Viewed: 4/16/2020 11:03:57 AM

Signed: 4/16/2020 11:06:18 AM

	
Security Level: Email, Account Authentication

(None), Authentication
	
 
	
 

	
 
	
Signature Adoption: Pre-selected Style

Using IP Address: 73.70.142.195
	
 

	
 
	
 
	
 

	
Authentication Details
	
 
	
 

	
ID Check:

Transaction: 31005062076415 Result: passed

Vendor ID: LexisNexis Type: iAuth

Recipient Name Provided by: Recipient Information Provided for ID Check: Address,

SSN9, SSN4, DOB

Performed: 4/16/2020 11:03:47 AM

Electronic Record and Signature Disclosure:

Accepted: 4/16/2020 11:03:57 AM

ID: 34656f00-8c33-432b-b729-72a65655c7b5

Company Name: TCF Bank
	
Question Details:

passed  property.county.real

passed  corporate.association.real

passed  vehicle.association.fake

passed  property.street.in.city.real

passed  corporate.association.real

passed  property.association.single.real
	
 

 

 

 

 

	
In Person Signer Events
	
Signature
	
Timestamp

	
 
	
 
	
 

	
Editor Delivery Events
	
Status
	
Timestamp

	
 
	
 
	
 

	
Agent Delivery Events
	
Status
	
Timestamp

 

	
Intermediary Delivery Events
	
Status
	
Timestamp

	
 
	
 
	
 

	
Certified Delivery Events
	
Status
	
Timestamp

	
 
	
 
	
 

	
Carbon Copy Events
	
Status
	
Timestamp

	
 
	
 
	
 

	
Witness Events
	
Signature
	
Timestamp

	
 
	
 
	
 

	
Notary Events
	
Signature
	
Timestamp

	
 
	
 
	
 

	
Envelope Summary Events
	
Status
	
Timestamps

	
Envelope Sent
	
Hashed/Encrypted
	
4/16/2020 9:11:31 AM

	
Certified Delivered
	
Security Checked
	
4/16/2020 11:03:57 AM

	
Signing Complete
	
Security Checked
	
4/16/2020 11:06:18 AM

	
Completed
	
Security Checked
	
4/16/2020 11:06:18 AM

	
Payment Events
	
Status
	
Timestamps

	
Electronic Record and Signature Disclosure

 

 

 

 

Electronic Record and Signature Disclosure created on: 1/25/2019 4:14:01 PM

Parties agreed to: Bill Roeschlein

ELECTRONIC RECORD AND SIGNATURE DISCLOSURE

From time to time, TCF Bank (we, us or Company) may be required by law to provide to you certain written notices or disclosures. Described below are the terms and conditions for providing to you such notices and disclosures electronically through the DocuSign system. Please read the information below carefully and thoroughly, and if you can access this information electronically to your satisfaction and agree to this Electronic Record and Signature Disclosure (ERSD), please confirm your agreement by selecting the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

Getting paper copies

At any time, you may request from us a paper copy of any record provided or made available electronically to you by us. You will have the ability to download and print documents we send to you through the DocuSign system during and immediately after the signing session and, if you elect to create a DocuSign account, you may access the documents for a limited period of time (usually 30 days) after such documents are first sent to you. After such time, if you wish for us to send you paper copies of any such documents from our office to you, you will be charged a $0.00 per-page fee. You may request delivery of such paper copies from us by following the procedure described below.

Withdrawing your consent

If you decide to receive notices and disclosures from us electronically, you may at any time change your mind and tell us that thereafter you want to receive required notices and disclosures only in paper format. How you must inform us of your decision to receive future notices and disclosure in paper format and withdraw your consent to receive notices and disclosures electronically is described below.

Consequences of changing your mind

If you elect to receive required notices and disclosures only in paper format, it will slow the speed at which we can complete certain steps in transactions with you and delivering services to you because we will need first to send the required notices or disclosures to you in paper format, and then wait until we receive back from you your acknowledgment of your receipt of such paper notices or disclosures. Further, you will no longer be able to use the DocuSign system to receive required notices and consents electronically from us or to sign electronically documents from us.

All notices and disclosures will be sent to you electronically

Unless you tell us otherwise in accordance with the procedures described herein, we will provide electronically to you through the DocuSign system all required notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you during the course of our relationship with you. To reduce the chance of you inadvertently not receiving any notice or disclosure, we prefer to provide all of the required notices and disclosures to you by the same method and to the same address that you have given us. Thus, you can receive all the disclosures and notices electronically or in paper format through the paper mail delivery system. If you do not agree with this process, please let us know as described below. Please also see the paragraph immediately above that describes the consequences of your electing not to receive delivery of the notices and disclosures electronically from us.

 

 

How to contact TCF Bank:

You may contact us to let us know of your changes as to how we may contact you electronically, to request paper copies of certain information from us, and to withdraw your prior consent to receive notices and disclosures electronically as follows:

To contact us by email send messages to: skrumm@tcfbank.com

To advise TCF Bank of your new email address

To let us know of a change in your email address where we should send notices and disclosures electronically to you, you must send an email message to us at skrumm@tcfbank.com and in the body of such request you must state: your previous email address, your new email address. We do not require any other information from you to change your email address.

If you created a DocuSign account, you may update it with your new email address through your account preferences.

To request paper copies from TCF Bank

To request delivery from us of paper copies of the notices and disclosures previously provided by us to you electronically, you must send us an email to skrumm@tcfbank.com and in the body of such request you must state your email address, full name, mailing address, and telephone number. We will bill you for any fees at that time, if any.

To withdraw your consent with TCF Bank

To inform us that you no longer wish to receive future notices and disclosures in electronic format you may:

i.decline to sign a document from within your signing session, and on the subsequent page, select the check-box indicating you wish to withdraw your consent, or you may;

ii.send us an email to skrumm@tcfbank.com and in the body of such request you must state your email, full name, mailing address, and telephone number. We do not need any other information from you to withdraw consent.. The consequences of your withdrawing consent for online documents will be that transactions may take a longer time to process..

Required hardware and software

The minimum system requirements for using the DocuSign system may change over time. The current system requirements are found here: https://support.docusign.com/guides/signer-guide- signing-system-requirements.

 

 

Acknowledging your access and consent to receive and sign documents electronically

To confirm to us that you can access this information electronically, which will be similar to other electronic notices and disclosures that we will provide to you, please confirm that you have read this ERSD, and (i) that you are able to print on paper or electronically save this ERSD for your future reference and access; or (ii) that you are able to email this ERSD to an email address where you will be able to print on paper or save it for your future reference and access. Further, if you consent to receiving notices and disclosures exclusively in electronic format as described herein, then select the check-box next to ‘I agree to use electronic records and signatures’ before clicking ‘CONTINUE’ within the DocuSign system.

By selecting the check-box next to ‘I agree to use electronic records and signatures’, you confirm that:

	
 
	
•
	
You can access and read this Electronic Record and Signature Disclosure; and
	
 

	
 
	
•
	
You can print on paper this Electronic Record and Signature Disclosure, or save or send this Electronic Record and Disclosure to a location where you can print it, for future reference and access; and
	
 

	
 
	
•
	
Until or unless you notify TCF Bank as described above, you consent to receive exclusively through electronic means all notices, disclosures, authorizations, acknowledgements, and other documents that are required to be provided or made available to you by TCF Bank during the course of your relationship with TCF Bank.Exhibit 10.1

 

TERM NOTE

U.S. Small Business Administration Paycheck Protection
Program

 

	SBA Loan #	**********
	SBA Loan Name	Sono-Tek Corp
	Date	4/16/2020
	Loan Amount	$1,001,640.00
	Interest Rate	Fixed at 1.00% per year
	Borrower	Sono-Tek Corp
	Lender	M&T Bank

One M& T Plaza (Attn: Office of General Counsel), Buffalo, New York 14203

 

 

 

 

		1.	PROMISE TO PAY:

 

In return for the Loan, Borrower promises
to pay to the order of Lender the amount of

 

                 One
million one thousand six hundred forty dollars and 00/100                  
Dollars,

 

interest on the unpaid principal balance,
and all other amounts, fees, and costs, required by this Note.

 

 

		2.	DEFINITIONS:

 

“Loan” means the loan evidenced
by this Note.

 

“Loan Documents” means the documents
related to this loan signed by Borrower, including, but not limited to, the Paycheck Protection Program Application.

 

“Note” means this Term Note executed
by Borrower in favor of Lender of even date herewith.

 

“SBA” means the Small Business
Administration, an Agency of the United States of America.

 

“Paycheck Protection Program”
means the Paycheck Protection Program under the Coronavirus Aid, Relief, and Economic Security Act.

 

    Page 1/7 

     

    

		3.	PAYMENT TERMS:

 

Borrower must make all payments at the place Lender designates.
The payment terms for this Note are:

 

Maturity: This is a term loan that will mature in 2 years (24
months) from the date of this Note (the “Maturity Date”). The interest rate is fixed at 1.00% per year. The interest
rate may not be changed during the life of the loan unless changed in accordance with H.R. 748 Coronavirus Aid, Relief, and Economic
Security Act or “CARES Act”.

 

The term of this loan is 24 months. During the first 6 months
of the loan term, (referred to herein as the “Deferral Period”), required payments of principal and interest shall
be deferred. During the Deferral Period, interest on the outstanding principal balance will continue to accrue. After the Deferral
Period, beginning in the seventh month of the loan term, this Note shall be repaid in installments comprised of principal and interest
based upon an 18-month amortization period. Borrower must pay principal and interest payments of $56088.24 
every month, beginning seven months from the date of this Note; payments must be made on the  16th  calendar day
in the months they are due.

 

The amortization period for this loan is 18 months, meaning that
this is the approximate number of months that would be needed to repay the principal amount in full, based on the installment amount
and payment frequency stated above. Lender must adjust the payment amount at least annually as needed to amortize principal over
the remaining term of the Note. Principal and interest payment amounts are subject to change, in accordance with any loan forgiveness
or other adjustments made in connection with the Paycheck Protection Program. Absent manifest error, the Lender’s determination
of any amount due in connection herewith shall be conclusive.

 

Interest shall be calculated on the basis of actual number of
days elapsed in each year, from and including the date the proceeds of this Note are disbursed to, but not including, the date
all amounts hereunder are paid in full. Interest will continue to accrue on the actual principal balance outstanding until the
Loan is paid in full.

 

Lender will apply each installment payment first to pay interest
accrued to the day Lender receives the payment, then to bring principal current, and will apply any remaining balance to reduce
principal.

 

Loan Prepayment: Borrower may prepay this Note at any time without
notice or penalty.

 

All remaining principal and accrued interest, and any other amounts
due pursuant to this Note, shall be due and payable on the Maturity Date.

 

Preauthorized Transfers from Deposit Account. Borrower hereby
authorizes Lender to debit Borrower’s deposit account  with M&T Bank automatically for any amount which becomes
due under this Note.

 

Default Rate. Upon the occurrence of a default, but at all times
subject to the restrictions and requirements of the Paycheck Protection Program and all other applicable laws, Lender, in Lender’s
sole discretion and without notice or demand, may raise the rate of interest accruing on the principal balance outstanding under
this Note by the lesser of (i) 5% above the rate otherwise applicable or (ii) such amount as permitted under the Paycheck Protection
Program or otherwise under applicable law, independent of whether the Lender elects to accelerate the principal balance under this
Note. Interest shall continue to accrue at the default rate set forth in this Note on any judgment Lender may obtain against Borrower,
to the extent permitted under the Paycheck Protection Program or otherwise under applicable law.

    Page 2/7 

     

    

		4.	DEFAULT:

 

Borrower is in default under this Note if Borrower does not
make a payment when due under this Note, or if Borrower:

		A.	Fails to do anything required by this Note and other Loan Documents;

		B.	Defaults on any other loan, liability, covenant, or agreement with Lender;

		C.	Does not disclose, or anyone acting on their behalf does not disclose, any material fact to Lender or SBA;

		D.	Makes, or anyone acting on their behalf makes, a materially false or misleading representation to Lender or SBA;

		E.	Defaults on any loan or agreement with another creditor, if Lender believes the default may materially affect Borrower’s
ability to pay this Note;

		F.	Fails to pay any taxes when due;

		G.	Becomes the subject of a proceeding under any bankruptcy or insolvency law;

		H.	Has a receiver or liquidator appointed for any part of their business or property;

		I.	Makes an assignment for the benefit of creditors;

		J.	Has any adverse change in financial condition or business operation that Lender believes may materially affect Borrower’s
ability to pay or perform any obligation of Borrower to Lender ;

		K.	Reorganizes, merges, consolidates, or otherwise changes ownership or business structure without Lender’s prior written
consent; or

		L.	Becomes the subject of a civil or criminal action that Lender believes may materially affect Borrower’s ability to pay
this Note.

 

		5.	LENDER’S RIGHTS IF THERE IS A DEFAULT:

 

Without notice or demand and without giving up any of its rights,
Lender may:

		A.	Require immediate payment of all amounts owing under this Note;

		B.	Collect all amounts owing from any Borrower; or

		C.	File suit and obtain judgment.

 

		6.	LENDER’S GENERAL POWERS:

 

Without notice and without Borrower’s consent, Lender
may:

		A.	Incur expenses to collect amounts due under this Note, enforce the terms of this Note or any other Loan Document. Among other
things, the expenses may include payments for property taxes, prior liens, insurance, appraisals, environmental remediation costs,
and reasonable attorney’s fees and costs. If Lender incurs such expenses, it may demand immediate repayment from Borrower
or add the expenses to the principal balance. . Borrower understands and agrees that upon an event of default, Lender may incur
costs of collection, including attorneys’ fees, after the date of any judgment that Lender may obtain against Borrower. Borrower
agrees to pay all of such costs and fees. Borrower further agrees that Borrower’s obligation to pay such costs and fees,
which are incurred by Lender after the date of any judgment obtained by Lender, shall survive the entry of, and shall not be merged
into, any such judgment;

		B.	Release anyone obligated to pay this Note; and

		C.	Take any action necessary to collect amounts owing on this Note.

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		7.	WHEN FEDERAL LAW APPLIES:

 

When SBA is the holder, this Note will be interpreted and enforced
under federal law, including SBA regulations. Lender or SBA may use state or local procedures for filing papers, recording documents,
giving notice, foreclosing liens, and other purposes. By using such procedures, SBA does not waive any federal immunity from state
or local control, penalty, tax, or liability. As to this Note, Borrower may not claim or assert against SBA any local or state
law to deny any obligation, defeat any claim of SBA, or preempt federal law.

 

		8.	SUCCESSORS AND ASSIGNS:

 

Under this Note, Borrower includes its successors , and Lender
includes its successors and assigns.

 

		9.	GENERAL PROVISIONS:

 

		A.	Borrower waives all suretyship defenses.

		B.	Borrower must sign all documents necessary at any time to comply with the Loan Documents.

		C.	Lender may exercise any of its rights separately or together, as many times and in any order it chooses. Lender may delay or
forgo enforcing any of its rights without giving up any of them.

		D.	Borrower may not use an oral statement of Lender or SBA to contradict or alter the written terms of this Note.

		E.	If any part of this Note is unenforceable, all other parts remain in effect.

		F.	To the extent allowed by law, Borrower waives all demands and notices in connection with this Note, including presentment,
demand, protest, and notice of dishonor. Borrower also waives any defenses based upon any claim that Lender did not obtain any
guarantee.

		G.	Collateral Exclusion. Any indebtedness and related obligations evidenced herein shall not be collateralized by any security
interest or lien granted to Lender by Borrower or other obligor, if any, in any real property or tangible personal property, notwithstanding
any provisions to the contrary in any other agreements (including any unrelated lien instrument) now or hereafter existing between
Lender and Borrower or other obligor. It is acknowledged and understood by Borrower that the preceding sentence shall be at all
times subject to, and shall not in any way compromise or impair, any other rights and remedies of Lender, including, without limitation,
rights of setoff, rights to enforce judgment liens and rights related to judgment execution against applicable assets of any judgment
debtor.

		H.	Business Purpose. The Loan proceeds shall be used only for a business purpose and pursuant to, and in accordance with, the
terms of the Paycheck Protection Program. Borrower acknowledges that at least 75 percent of the Loan proceeds must be used for
payroll costs.

		I.	Further Assurances. The Borrower shall take such action and execute and deliver to Lender such additional documents,

instruments, certificates, and agreements as Lender may reasonably request to effectuate the terms and purposes of this Note, and
as may otherwise be required for Lender to comply with terms and conditions of the Paycheck Protection Program Loan Authorization.

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		9.	GENERAL PROVISIONS CONT.

 

		J.	Good Standing. Borrower represents and warrants that it is an entity or sole proprietor (i) duly organized and existing and
in good standing under the laws of the jurisdiction in which it was formed, (ii) duly qualified, in good standing and authorized
to do business in every jurisdiction in which failure to be so qualified might have a material adverse effect on its business or
assets and (iii) has the power and authority to own each of its assets and to use them as contemplated now or in the future.

		K.	Sale of Interest. There shall not be any sale or transfer of ownership of any interest in Borrower without the Lender’s
prior written consent.

		L.	Change of Name. Borrower shall not change its legal name or the State or the type of its formation, without giving the Lender
at least 30 days prior written notice thereof.

		M.	Borrower will furnish to Lender from time to time, such financial data and information about Borrower as Lender may reasonably
request and Borrower represents and warrants the accuracy of any information contained therein.

		N.	Electronic Signatures. The individual executing this Note agrees that electronic signatures, whether pdf, scanned, digital,
encrypted, captured or otherwise attached or imposed hereto, are intended to authenticate this Note and to have the same effect,
validity, and enforceability as manually executed signatures. For purposes hereof, electronic signature means any electronic sound,
symbol or process attached to or logically associated with a record and executed and adopted by an individual with the intent to
sign such record.

		O.	Loan Forgiveness under the Paycheck Protection Program. The Loan amount may be eligible for forgiveness pursuant to the Paycheck
Protection Program, which minimally requires (1) at least 75% of the loan proceeds are used to cover payroll costs and the remainder
is used for mortgage interest, rent and utility costs over the 8 week period after the loan is made, and (2) the number of employees
and compensation levels are generally maintained. Additional requirements may apply. Further details on how to request loan forgiveness
shall be made available to you upon further guidance from the SBA.

		P.	Indemnification. Borrower shall indemnify, defend and hold Lender and Lender Affiliates and their directors, officers, employees,
agents and attorneys (each an "Indemnitee") harmless against any claim brought or threatened against any Indemnitee by
Borrower or by any other person (as well as from attorneys' reasonable fees and expenses in connection therewith) on account of
Lender’s relationship with Borrower (each of which may be defended, compromised, settled or pursued by Lender with counsel
of Lender’s selection, but at the expense of the Borrower), except for any claim arising out of the gross negligence or willful
misconduct of Lender.

		Q.	Representations and Warranties. Borrower represents and warrants to, and with regard to item (a) the individual executing this
Note also represents and warrants, in his/her individual capacity, to, and covenants with Lender as follows: (a) the individual
executing this Note is duly authorized to do so and to bind Borrower and Borrower’s heirs, successors and/or assigns to the
terms hereof; (b) each of the Loan Documents is a valid and legal binding obligation of Borrower, enforceable in accordance with
its terms, and is not subject to any defenses, counterclaims, or offsets of any kind; (c) there exists no action, suit, proceeding
or investigation, at law or in equity, before any court board, administrative body or other entity, pending or threatened, affecting
Borrower’s property, wherein an unfavorable decision, ruling or finding would materially adversely affect the business operations,
property or financial condition of Borrower; (d) Borrower shall advise Lender if there is an adverse change in Borrower’s
financial condition, organization, operations or fixed assets since the date this Note is signed; (e) Borrower attests to the accuracy
of and reaffirms each certification made in the Paycheck Protection Program Application as if fully set forth herein.

		R.	Credit Reporting. The undersigned authorizes Lender and its affiliates to request and review all data it deems appropriate
about Borrower and the undersigned, including credit reports from agencies, now and for all future reviews, extensions, or renewals
of credit extended to Borrower, or for collection of loans. The undersigned may inquire whether a credit report was requested and
if so, obtain the name and address of the credit reporting agency furnishing the credit report.

		S.	Reproductions. A photographic or other reproduction of this Note may be made by Lender, and any such reproduction shall be
admissible in evidence with the same effect as the original itself in any judicial or administrative proceeding, whether or not
the original is in existence.

		T.	Right of Setoff. The Lender shall have the right to set off against the amounts owing under this Note any property held in
a deposit or other account with the Lender or any affiliates or otherwise owing by the Lender or any affiliates in any capacity
to Borrower. Such set-off shall be deemed to have been exercised immediately at the time the Lender or such affiliate elects to
do so.

    Page 5/7 

     

    

		U.	Notices. Any demand or notice hereunder or under any applicable law pertaining hereto shall be in writing and duly given if
delivered to Borrower (at its address on the Lender’s records) or to the Lender (at the address on page one and separately
to the Lender officer responsible for Borrower’s relationship with the Lender). Such notice or demand shall be deemed sufficiently
given for all purposes when delivered (i) by personal delivery and shall be deemed effective when delivered, or (ii) by mail or
courier and shall be deemed effective three (3) business days after deposit in an official depository maintained by the United
States Post Office for the collection of mail or one (1) business day after delivery to a nationally recognized overnight courier
service (e.g., Federal Express). Notice by e-mail is not valid notice under this or any other agreement between Borrower and the
Lender.

		V.	Complete Agreement. This Note, together with any related Loan Documents, contains the entire agreement between Borrower and
Lender with respect to the Note, and supersedes every course of dealing, other conduct, oral agreement and representation previously
made by Lender. No waiver or amendment of any provision of this Note shall be effective unless made specifically in writing by
the Lender. No course of dealing or other conduct, no oral agreement or representation made by the Lender, and no usage of trade,
shall operate as a waiver of any right or remedy of the Lender. No waiver of any right or remedy of the Lender shall be effective
unless made specifically in writing by the Lender.

		W.	Governing Law/Jurisdiction. This Note has been delivered to and accepted by the Lender and will be deemed to be made in the
State of New York. Except as otherwise provided under federal law, this Note will be interpreted in accordance with the laws of
the State of New York excluding its conflict of laws rules. Borrower hereby irrevocably consents to the exclusive jurisdiction
of any State or Federal Court in New York State in a county or judicial district where Lender maintains a branch and consents that
Lender may effect any service of process in the manner and at Borrower’s address set forth in Lender’s records for
providing notice or demand; provided that nothing contained in this note will prevent Lender from bringing any action, enforcing
any award or judgment or exercising any rights against Borrower individually, against any security or against any property of Borrower
within any county, state, or other foreign or domestic jurisdiction.

Borrower acknowledges and agrees that the venue provided above
is the most convenient forum for both Lender and Borrower.

Borrower waives any objection to venue and any objection based
on a more convenient forum in any action instituted under this Note.

		X.	Waiver of Jury Trial. Borrower and Lender hereby knowingly, voluntarily, and intentionally waive any right to trial by jury
Borrower and Lender may have in any action or proceeding, in law or in equity, in connection with this Note or the transactions
related hereto. Borrower represents and warrants that no representative or agent of Lender has represented, expressly or otherwise,
that Lender will not, in the event of litigation, seek to enforce this jury trial waiver. Borrower acknowledges that Lender has
been induced to enter into this Note by, among other things, the provisions of this section.

    Page 6/7 

     

    

		10.	BORROWER’S NAME(S) AND SIGNATURE(S):

 

By signing below, each individual or entity becomes obligated
under this Note as Borrower.

Borrower acknowledges that it has read and understands all the
provisions of this Note, and has been advised by counsel as necessary or appropriate.

Executed effective as of the date first written above.

 

	 	 	Borrower:
	 	 	 
	 	By:	/s/ Stephen Bagley, CFO
	 	 	Signature 4/17/2020
	 	 	 
	 	 	 
	 	 	Stephen Bagley
	 	 	Printed Name
	 	 	 
	 	 	 
	 	 	Authorized Representative of Borrower
	 	 	Title
	 	 	 
	 	 	2012 Route 9W Milton, NY 12547
	 	 	Address

 

    Page 7/7

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