Document:

Exhibit 10.19

 

NINTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

 

THIS NINTH AMENDMENT TO LOAN AND SECURITY
AGREEMENT (hereinafter, this “Amendment”) is executed on this
31st day of March, 2006, to be effective as of the respective date hereinafter
specified, by and among BANCTEC, INC., a Delaware corporation (“BancTec”),
BTI TECHNOLOGIES L.P., a Texas
limited partnership (“BTI Tech” and jointly and collectively with
BancTec, the “Borrower”), the financial institution(s) listed on the
signature pages hereof, and their respective successors and Eligible
Assignees (each individually as “Lender” and collectively “Lenders”),
and HELLER FINANCIAL, INC., a Delaware corporation, in its capacity as Agent
for the Lenders (“Agent”).

 

RECITALS

 

WHEREAS,
Borrower, Agent and Lenders are parties to that certain Loan and Security
Agreement, dated as of May 30, 2001 (as amended, supplemented or otherwise
modified, the “Loan Agreement”);

 

WHEREAS,
Borrower has notified Agent that it desires to extend the
Termination Date under the Loan Agreement to May 1, 2008 and make certain
other amendments to the Loan Agreement; and

 

WHEREAS,
Borrower, Agent and Lenders desire to amend the Loan Agreement, in each case,
in the manner, and subject to the terms and conditions, provided below.

 

NOW, THEREFORE,
in consideration of the premises herein contained and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties, intending to be legally bound, agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.01                        Capitalized
terms used in this Amendment, to the extent not otherwise defined herein, shall
have the same meaning as in the Loan Agreement, as amended hereby.

 

ARTICLE II

AMENDMENTS TO LOAN AGREEMENT; OTHER AGREEMENTS

 

2.01                        Amendment to Section 2.1(B) of the
Loan Agreement; Amendment and Restatement of the Definition of “Borrowing Base”.  Effective as of March 31,
2006 (the “Effective Date”), the definition of “Borrowing Base”
contained in Section 2.1(B) of the Loan Agreement is hereby amended
and restated in its entirety to read as follows:

 

“‘Borrowing Base’ means, as of any date of
determination, an amount equal to the sum of (a) 85.00% of Eligible
Accounts less Dilution Reserves, plus (b) 50.00% of Eligible
Accrued Unbilled Accounts less Dilution Reserves; plus (c) the
lesser of (i) $20,000,000, or (ii) 85.00% of the net orderly
liquidation value of Eligible Inventory (net orderly liquidation value to be
determined in a manner and pursuant to documentation satisfactory to Agent, in
its reasonable credit judgment) or

 

1

 

(iii) 60.00% of
Eligible Inventory, plus (d) the lesser of (i) the
Unsecured Senior Notes Permitted Liens Limitation or (ii) (A) the
Real Property Advance Amount, plus (B) the Machinery and Equipment
Advance Amount and less, in each case, such reserves as Agent in its reasonable
credit judgment may elect to establish.  “Dilution
Reserve” means, as of any date of determination, a reserve for the amount by
which the total dilution of Accounts exceeds five percent (5%); with dilution
referring to all actual and potential offsets to an Account, including, without
limitation, customer payment and/or volume discounts, write-offs, credit
memoranda, returns and allowances, and billing errors.  The Dilution Reserve shall be adjusted after
each field examination audit of the Collateral conducted by Agent or any
authorized representative designated by Agent.”

 

2.02                        Amendment and Restatement of Section 2.1(H)(1) of
the Loan Agreement.  Effective
as of the Effective Date, Section 2.1(H)(1) of the Loan Agreement is
hereby amended and restated in its entirety to read as follows:

 

“(1)                            Maximum
Amount.  The aggregate amount of
Letter of Credit Liability with respect to all Lender Letters of Credit
outstanding at any time shall not exceed $10,000,000.00.”

 

2.03                        Amendment and Restatement of Section 2.2(A) of
the Loan Agreement.  Effective
as of the Effective Date, Section 2.2(A) of the Loan Agreement is
hereby amended and restated in its entirety to read as follows:

 

“(A)                        Rate
of Interest.  From the date the Loans
are made and the date the other Obligations become due the Loans and the other
Obligations shall bear interest at the applicable rates set forth below
(collectively, the “Interest Rate”):

 

(1)                                  The
Revolving Loan and all other Obligations for which no other interest rate is
specified shall bear interest as follows:

 

(a)                                  If
a Base Rate Loan, then at the sum of the Base Rate plus the Base Rate
Margin applicable to Revolving Loans.

 

(b)                                 If
a LIBOR Loan, then at the sum of the LIBOR plus the LIBOR Margin
applicable to Revolving Loans.

 

(2)                                  The
Swingline Loan shall bear interest at the sum of the Base Rate plus the
Base Rate Margin applicable to the Swingline Loan.

 

Subject to the provisions
of subsection 2.1(F), Borrower shall designate to Agent whether a
Loan shall be a Base Rate or LIBOR Loan at the time a Notice of Borrowing is
given pursuant to subsection 2.1(F).  Such designation by Borrower may be changed
from time to time pursuant to subsection 2.2(D).  If on any day a Loan or a portion of any Loan
is outstanding with respect to which notice has not been delivered to Agent in
accordance with the terms of this Agreement specifying the basis for
determining the rate of interest or if LIBOR has been specified and no LIBOR
quote is available, then for that day that Loan or portion thereof shall bear
interest determined by reference to the Base Rate.

 

2

 

“Base Rate Margin” shall
mean 0.25% per annum.

 

“LIBOR Margin” shall mean
1.75% per annum.

 

After the occurrence and
during the continuance of an Event of Default (i) the Loans and all other
Obligations shall, at the election of Agent or Requisite Lenders, bear interest
at a rate per annum equal to two percent (2%) plus the applicable Interest Rate
(the “Default Rate”), (ii) each LIBOR Loan shall automatically convert to
a Base Rate Loan at the end of any applicable Interest Period and (iii) no
Loans may be converted to LIBOR Loans.”

 

2.04                        Amendment and Restatement of Section 2.3
of the Loan Agreement.  Effective
as of the Effective Date, Section 2.3 of the Loan Agreement is hereby
amended and restated in its entirety to read as follows:

 

“2.3                           Fees.

 

(A)                              Unused
Line Fee.  Borrower shall pay to
Agent, for the benefit of Lenders, a fee in an amount equal to the Revolving
Loan Commitment less the sum of (i) the average daily balance of each of
the Revolving Loan and the Swingline Loan, plus, (ii) the average daily
face amount of the Letter of Credit Reserve during the preceding month,
multiplied by (iii) 0.375% per annum. 
Such fee to be calculated on the basis of a three hundred sixty (360)
day year for the actual number of days elapsed and to be payable monthly in
arrears on the first (1st) day of each month following the Ninth
Amendment Effective Date.

 

(B)                                Letter
of Credit Fees.  Borrower shall pay
to Agent a fee with respect to the Lender Letters of Credit (i) for the
benefit of all Lenders with a Revolving Loan Commitment (based on their
respective Pro Rata Share) in the amount of the average daily amount of Letter
of Credit Liability outstanding during such month, multiplied by the per
annum percentage equal to the LIBOR Margin at such time in effect, and (ii) for
the account of Agent a fronting fee for each Letter of Credit issued or
obtained by Agent from the date of issuance to the date of termination equal to
the average daily amount of Letter of Credit Liability with respect to such
Letters of Credit outstanding during such month multiplied by twenty-five one hundredths
of one percent (0.25%) per annum.  Such
fees will be calculated on the basis of a three hundred sixty (360) day year
for the actual number of days elapsed and will be payable monthly in arrears on
the first (1st) day of each month. following the Ninth Amendment
Effective Date.  Borrower shall also
reimburse Agent for any and all fees and expenses, if any, paid by Agent or any
Lender to the issuer of any Bank Letter of Credit.

 

(C)                                Prepayment
Fees.  If, prior to the second
anniversary of the Ninth Amendment Effective Date, Borrower reduces or
terminates the credit facility provided for herein, Borrower, at the time of
such reduction or termination, shall pay to Agent for the benefit of Lenders,
as compensation for the costs of being prepared to make funds available to
Borrower under this Agreement, and not as a penalty, an amount determined by
multiplying 1.00% (i) by the amount of the Revolving Loan Commitment, if
the credit facility provided for herein is being terminated, or (ii) by
the amount of the reduction in the Revolving Loan Commitment, if a reduction in
the

 

3

 

Revolving Loan Commitment
is occurring.  Notwithstanding the
foregoing, no prepayment fee shall be payable to the extent any reduction in
the Revolving Loan Commitment is due to Borrower entering into a real estate
sale leaseback arrangement with GE Business Properties.

 

(D)                               Audit
Fees.  Borrower agrees to pay all
fees and expenses of the firm or individual(s) engaged by Agent to perform audits
of Borrower’s operations. 
Notwithstanding the foregoing, if Agent uses its internal auditors to
perform any such audit, Borrower agrees to pay to Agent, for its own account,
an audit fee with respect to each such audit equal to their then standard rate
which as of the Ninth Amendment Effective Date is $800 per internal auditor per
day or any portion thereof, together with all out of pocket expenses.  Exclusive of any audits performed in
connection with the credit facility initially established by this Agreement and
the initial transactions contemplated by this Agreement, as long as no Event of
Default has occurred and is continuing and the Average Daily Availability for
the three-month period ending on the last day of the most recent calendar month
is at least $5,000,000.00, Borrower shall not be required to pay for more than
one such audit during any Loan Year of Borrower and the aggregate amount of
audit fees required to be paid by Borrower during any Loan Year shall be
limited to $30,000.00, but if an Event of Default has occurred and is
continuing or the Average Daily Availability for the three-month period ending
on the last day of the most recent calendar month is less than $5,000,000.00,
Borrower shall be required to pay for up to one such audit during each quarter
of each Loan Year of Borrower, and there shall be no $30,000.00 cap on audit
fees payable by Borrower during any individual Loan Year.

 

(E)                                 Other
Fees and Expenses.  Borrower shall
pay to Agent, for its own account, all charges for returned items and all other
bank charges incurred by Agent, as well as Agent’s standard wire transfer
charges for each wire transfer made under this Agreement.

 

(F)                                 Termination
of Fee Letter.  The parties hereto
hereby terminate that certain fee letter agreement dated as of May 31,
2001, between Borrower and Heller.

 

(G)                                Collateral
Management Fee.  On March 31,
2007 and on March 31 in each Loan Year thereafter, Borrower shall pay to
Agent, for its own account, a fully earned, nonrefundable collateral management
fee of $50,000.”

 

2.05                        Amendment and Restatement of Section 2.5
of the Loan Agreement.  Effective
as of the Effective Date, Section 2.5 of the Loan Agreement is hereby
amended and restated in its entirety to read as follows:

 

“2.5                           Term
of this Agreement.  This Agreement
shall be effective until the earlier of (a) May 1, 2008 and (b) the
acceleration of all Obligations pursuant to subsection 8.3 (the “Termination
Date”).  The Commitments shall terminate
(unless earlier terminated pursuant to the terms hereunder) upon the
Termination Date and all Obligations shall become immediately due and payable
without notice or demand. 
Notwithstanding any termination, until all Obligations have been fully
paid and satisfied, Agent, on behalf of itself and Lenders, shall be entitled
to retain security

 

4

 

interests in and liens
upon all Collateral, and even after payment of all Obligations hereunder,
Borrower’s obligation to indemnify Agent and each Lender in accordance with the
terms hereof shall continue.”

 

2.06                        Amendment and Restatement of Section 4.25
of the Loan Agreement.  Effective
as of the Effective Date, Section 4.25 of the Loan Agreement is hereby
amended and restated in its entirety to read as follows:

 

“4.25                     Collection of Accounts and
Payments.  Borrower shall establish
lockboxes and blocked accounts (collectively, “Blocked Accounts”) in Borrower’s
name with such banks (“Collecting Banks”) as are
acceptable to Agent (subject to irrevocable instructions acceptable to Agent as
hereinafter set forth) to which all account debtors shall directly remit all
payments on Accounts and in which Borrower will immediately deposit all
payments made for Inventory or other payments constituting proceeds of
Collateral in the identical form in which such payment was made, whether by
cash or check.  The Collecting Banks
shall acknowledge and agree, in a manner satisfactory to Agent, that all
payments made to the Blocked Accounts are the sole and exclusive property of
Agent, for its benefit and for the benefit of Lenders, and that the Collecting
Banks have no right to setoff against the Blocked Accounts and that all such
payments received will be promptly transferred to Agent’s Account subject to
the payment of the collecting Banks’ fees, chargebacks and other customary
exceptions, to the extent, if any, provided for in the documentation
establishing the Blocked Accounts. 
Borrower hereby agrees that all payments made to such Blocked Accounts
or otherwise received by Agent and whether on the Accounts or as proceeds of
other Collateral or otherwise will be the sole and exclusive property of Agent,
for the benefit of itself and Lenders. 
Borrower shall irrevocably instruct each Collecting Bank to promptly
transfer all payments or deposits to the Blocked Accounts into Agent’s
Account.  If Borrower, or any if its
Affiliates, employees, agents or other Person acting for or in concert with
Borrower, shall receive any monies, checks, notes, drafts or any other payments
relating to and/or proceeds of Accounts or other Collateral, Borrower or such
Person shall hold such instrument or funds in trust for Agent, and, immediately
upon receipt thereof, shall remit the same or cause the same to be remitted, in
kind, to the Blocked Accounts or to Agent at its address set forth in subsection 10.3
below.  Notwithstanding anything set
forth above, while Agent has previously notified each Collecting Bank to
transfer all payments or deposits made to the Blocked Account to Borrower’s
account as set forth in such notice; if at any time hereafter the Average Daily
Availability for the three-month period ending on the last day of the most
recent calendar month is less than $17,500,000.00, Agent shall have the right
to notify each Collecting Bank to revert back to the prior procedure set forth
in this Section 4.25 and to have such funds transferred to the
Agent’s Account.”

 

2.07                        Amendment to Section 11.1 of the Loan
Agreement; Amendment and Restatement of Definitions.  Effective as of the Effective Date, the
following definitions contained in Section 11.1 of the Loan Agreement are
hereby amended and restated in their entirety to read as follows:

 

“‘Availability’ means the excess, if any, of the
Borrowing Base over the sum of the Revolving Loan and Letter of Credit Reserve.

 

5

 

‘Closing Date Mortgaged Property’ means the Mortgaged
Property owned by Borrower on the Closing Date, provided that Agent has a first
priority Lien on such Mortgaged Property, subject to Permitted Encumbrances.  If subsequent to the Closing Date Agent
ceases to have a first priority Lien on such Mortgaged Property or such
Mortgaged Property is sold or otherwise transferred, such Mortgaged Property
shall cease to constitute Closing Date Mortgaged Property.

 

‘Real Property Advance Amount’ means the amount equal
to (a) 70% of the fair market value of the Closing Date Mortgaged Property
(as determined by the most recent appraisal delivered to Agent pursuant to
clause (I) of the Reporting Rider) minus
(b) 1/84th of such amount multiplied
by the number of months having currently ended since March 31, 2006.

 

The parties hereto agree that at such time that Agent
ceases to have a first priority Lien in any Mortgaged Property which initially
constitutes Closing Date Mortgaged Property or such Mortgaged Property is sold
or otherwise transferred, such Mortgaged Property shall no longer constitute
Closing Date Mortgaged Property for the purposes of the Borrowing Base and the
Real Property Advance Amount, and the portion of the Real Property Advance
Amount attributable to the value of such Mortgaged Property (as compared to the
value of all other Mortgaged Property constituting Closing Date Mortgaged
Property) shall be subtracted from the otherwise applicable Real Property
Advance Amount in order to determine the Real Property Advance Amount relevant
to the other Closing Date Mortgaged Property.

 

‘Restricted Junior Payment’ means:  (a) any dividend or other distribution,
direct or indirect, on account of any shares of any class of stock of Borrower
or any of its Subsidiaries now or hereafter outstanding, except a dividend
payable solely with shares of the class of stock on which such dividend is
declared; (b) any payment or prepayment of principal of, premium, if any,
or interest on, or any redemption, conversion, exchange, retirement,
defeasance, sinking fund or similar payment, purchase or other acquisition for
value, direct or indirect, of any Subordinated Debt or shares of any class of
stock of Borrower or any of its Subsidiaries now or hereafter outstanding or
the issuance of a notice of an intention to do any of the foregoing (other than
in each case in exchange for shares of stock of Borrower or any direct or
indirect parent of Borrower); (c) any payment made to retire, or to obtain
the surrender of, any outstanding warrants, option or other rights to acquire
shares of any class of stock of Borrower or any of its Subsidiaries now or
hereafter outstanding (other than in each case in exchange for shares of stock
of Borrower or any direct or indirect parent of Borrower); and (d) any
payment by Borrower or any of its Subsidiaries of any management, consulting or
similar fees to any Affiliate, whether pursuant to a management agreement or
otherwise, in excess during any Loan Year of the aggregate amount as to all
Affiliates of $1,000,000.’ “

 

2.08                        Amendment to Section 11.1 of the Loan
Agreement; Addition of new Definitions.  Effective as of the Effective Date, the
following new definitions are hereby added to Section 11.1 of the Loan
Agreement, to read in their entirety as follows and to be inserted in their
proper alphabetical order:

 

“‘Closing Date Machinery and Equipment’ means the
Equipment owned by Borrower on March 31, 2006 that has been appraised by
an appraiser acceptable to

 

6

 

Agent, provided that
Agent has a first priority Lien on such Equipment, subject to Permitted
Encumbrances.  If subsequent to the
Closing Date Agent ceases to have a first priority Lien on such Equipment or
such Equipment is sold or otherwise transferred, such Equipment shall cease to
constitute Closing Date Machinery and Equipment.

 

‘Machinery and Equipment Advance Amount’ means the
amount equal to (a) 85% of the appraised net orderly liquidation value of
the Closing Date Machinery and Equipment (as determined by the most recent
appraisal delivered to Agent pursuant to clause (I) of the Reporting Rider) minus (b) 1/84th of
such amount multiplied by
the number of months having currently ended since March 31, 2006.

 

The parties hereto agree that at such time that Agent
ceases to have a first priority Lien in any Equipment or such Equipment is sold
or otherwise transferred, such Equipment shall no longer constitute Closing
Date Machinery and Equipment for the purposes of the Borrowing Base and the
Machinery and Equipment Advance Amount, and the portion of the Machinery and
Equipment Advance Amount attributable to the value of such Equipment (as
compared to the value of all other Equipment constituting Closing Date
Machinery and Equipment) shall be subtracted from the otherwise applicable
Machinery and Equipment Advance Amount in order to determine the Machinery and
Equipment Advance Amount relevant to the other Closing Date Machinery and
Equipment.”

 

‘Ninth Amendment Effective Date’ means the ‘Effective
Date’ as defined in the Ninth Amendment to this Agreement, dated as of March 31,
2006.’

 

2.09                        Amendment
to Section 11.1 of the Loan Agreement; Deletion of Definitions.  Effective as of the Effective Date, the
definitions of “Eligible Cash Collateral” and “Reduced Availability Amount” are
hereby deleted from Section 11.1 of the Loan Agreement.

 

2.10                        Deleting Schedule 2.2(A) to
the Loan Agreement.  Effective as of
the Effective Date, Schedule 2.2(A) (Pricing Table) is hereby
deleted from the Loan Agreement.

 

2.11                        Amendment
to Paragraph (C) of the Reporting Rider to the Loan Agreement.  Effective as of the Effective Date, Paragraph
(C) of the Reporting Rider to the Loan Agreement is hereby amended by
deleting the phrase “one hundred five (105) days after the end of each Fiscal
Year” and replacing it with “one hundred twenty (120) days after the end of the
2005 Fiscal Year and within one hundred five (105) days of each Fiscal Year
thereafter”.

 

2.12                        Amendment
to Paragraph (I) of the Reporting Rider to the Loan Agreement.  Effective as of the Effective Date, Paragraph
(I) of the Reporting Rider to the Loan Agreement is hereby amended and
restated to read in its entirety to read as follows:

 

“(I)                              Appraisals.  Borrower will obtain and deliver to Agent, at
Borrower’s expense, (i) once every Loan Year, appraisal reports in form
and substance and from appraisers satisfactory to Agent, stating the then
current fair market of the Mortgaged Property, (ii) quarterly during every
Loan Year, a “desktop” appraisal report in form and substance and from
appraisers satisfactory to Agent, stating the then current fair market value
and orderly liquidation value of the Inventory, and (iii) upon Agent’s
request but in no event more often than once per Loan Year, an appraisal report
in

 

7

 

form and substance and
from appraisers satisfactory to Agent, stating the then current fair market
value and orderly liquidation value of the Equipment.”

 

2.13                        Amendment
to Paragraphs A and C of the Financial Covenants Rider to the Loan
Agreement.  Effective as of the
Effective Date, each of Paragraph A and Paragraph C of the
Financial Covenants Rider to the Loan Agreement is hereby amended and restated
to read in its entirety to read as follows:

 

“Intentionally Deleted.”

 

2.14                        Amendment
to Paragraph B of the Financial Covenants Rider to the Loan Agreement.  Effective as of the Effective Date, Paragraph
B of the Financial Covenants Rider to the Loan Agreement is hereby amended
and restated to read in its entirety to read as follows:

 

“B.                               Fixed
Charge Coverage Ratio.  If and for so
long as a Fixed Charge Coverage Ratio Period is in effect, Borrower shall not
permit its Fixed Charge Coverage Ratio for the twelve calendar month period
ending on the last day of each calendar quarter to be less than the ratio
indicated below as of the date indicated below:

 

	
  Date [Assuming a Fixed Charge

  Coverage Ratio Period is in Effect]

  	
   

  	
  Ratio

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (i)

  	
  June 30, 2006

  	
   

  	
  (i)

  	
  0.50 to 1.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (ii)

  	
  September 30, 2006

  	
   

  	
  (ii)

  	
  0.70 to 1.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iii)

  	
  December 31, 2006

  	
   

  	
  (iii)

  	
  0.90 to 1.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (iv)

  	
  March 31, 2007

  	
   

  	
  (iv)

  	
  1.00 to 1.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (v)

  	
  June 30, 2007

  	
   

  	
  (v)

  	
  1.00 to 1.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (vi)

  	
  September 30, 2007

  	
   

  	
  (vi)

  	
  1.00 to 1.00

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (vii)

  	
  December 31, 2007,
  and March 31, 2008

  	
   

  	
  (vii)

  	
  1.10 to 1.00

  

 

For purposes of this Paragraph B of this
Financial Covenants Rider, a “Fixed Charge Coverage Ratio Period” shall be in
effect if the Average Daily Availability for the three (3) month period ending
on the last day of the most recent calendar quarter is less than
$15,000,000.00.”

 

2.15                        Closing Fee.  In consideration for the agreements set forth
herein, Borrower agrees to pay Agent, for Agent’s benefit and for the benefit
of Lenders, a fee of $125,000 (consisting of a $150,000 closing fee and a
$50,000 collateral monitoring fee, as reduced by the $75,000 fee previously
paid by Borrower to Agent), which fee shall be (i) deemed fully earned on
the date hereof, (ii) non-refundable and (iii) due and payable in
full on the date hereof.

 

8

 

2.16                        Eighth Amendment Not Effective.  The parties hereto agree that the Eighth
Amendment to the Loan Agreement executed by the parties in February of
2006 is not, and shall not become, effective and shall be given no force or
effect.

 

2.17                        Borrowing Base.  Within 90 days of the Ninth Amendment
Effective Date, Agent and Lenders will consider changing the advance rate with
respect to Eligible Accrued Unbilled Accounts but Agent will be under no
obligation to change such advance rate.  
In addition, upon completion of satisfactory due diligence by the Agent,
in its sole discretion, of the Borrower’s foreign accounts receivable and
subject to the Agent obtaining all requisite internal approvals, some of the
foreign accounts receivable will be included in the Borrowing Base on terms and
conditions satisfactory to Agent in its sole discretion.  Any changes in such terms will be documented in
a manner acceptable to Agent in its sole discretion.

 

ARTICLE III

CONDITIONS PRECEDENT

 

3.01                        Conditions
to Effectiveness.  Notwithstanding
anything herein to the contrary, the effectiveness of this Amendment is subject
to the satisfaction of the following conditions precedent, unless specifically
waived in writing by Agent:

 

(a)                                  Agent
shall have received, in form and substance satisfactory to Agent and duly
executed by each party thereto:

 

(i)                                     this
Amendment, and

 

(ii)                                  such
additional documents, instruments and information as Agent or its legal
counsel, Patton Boggs LLP, may request;

 

(b)                                 Agent
shall have received, in immediately available funds, payment of the closing fee
provided for in Section 2.15 of this Amendment;

 

(c)                                  after
giving effect to the consummation of the transactions contemplated by the Loan
Agreement and this Amendment and the payment by Borrower of all costs, fees and
expenses relating thereto, the Maximum Revolving Loan Amount on the date hereof
shall exceed the sum of the Swingline Loan and the Revolving Loan by at least $15,000,000.00;
and

 

(d)                                 All
corporate proceedings taken in connection with the transactions contemplated by
this Amendment and the agreements described in clause (a) above
and all documents, instruments and other legal matters incident thereto shall
be satisfactory to Agent and its legal counsel, Patton Boggs LLP.

 

ARTICLE IV

NO WAIVER

 

4.01                        Nothing
contained herein shall be construed as a waiver by Agent or any Lender of any
covenant or provision of the Loan Agreement, the other Loan Documents, this
Amendment, or of any other contract or instrument between Borrower, Agent
and/or any Lender, and Agent’s or any Lender’s failure at any time or times
hereafter to require strict performance by Borrower of any

 

9

 

provision thereof shall not waive, affect or diminish
any right of Agent and/or any Lender to thereafter demand strict compliance
therewith.  Agent and Lenders hereby
reserve all rights granted under the Loan Agreement, the other Loan Documents,
this Amendment and any other contract or instrument between Borrower, Agent
and/or any Lender.

 

ARTICLE V

RATIFICATIONS, REPRESENTATIONS AND WARRANTIES

 

5.01                        Ratifications.  The terms and provisions set forth in this
Amendment shall modify and supersede all inconsistent terms and provisions set
forth in the Loan Agreement and the other Loan Documents, and except as
expressly modified and superseded by this Amendment, the terms and provisions
of the Loan Agreement and the other Loan Documents are ratified and confirmed and
shall continue in full force and effect. 
Borrower, Agent and Lenders agree that the Loan Agreement and the other
Loan Documents, as amended hereby, shall continue to be legal, valid, binding
and enforceable in accordance with their respective terms.

 

5.02                        Representations
and Warranties.  Borrower hereby
represents and warrants to Agent and Lenders that (a) the execution,
delivery and performance of this Amendment and any and all other Loan Documents
executed and/or delivered in connection herewith have been authorized by all
requisite corporate action on the part of Borrower and will not violate the
Certificate of Incorporation or Bylaws of Borrower; (b) the
representations and warranties contained in the Loan Agreement, as amended
hereby, and any other Loan Document are true and correct in all material
respects on and as of the date hereof and on and as of the date of execution
hereof as though made on and as of each such date, except for any
representation or warranty limited by its terms to a specific date; (c) no
Event of Default or Default under the Loan Agreement has occurred and is
continuing, unless such Event of Default or Default has been specifically
waived in writing by Lenders; and (d) Borrower is in full compliance with
all covenants and agreements contained in the Loan Agreement and the other Loan
Documents, as amended hereby.

 

ARTICLE VI

MISCELLANEOUS PROVISIONS

 

6.01                        Survival
of Representations and Warranties. 
All representations and warranties made in the Loan Agreement or any
other Loan Document, including, without limitation, any document furnished in
connection with this Amendment, shall survive the execution and delivery of
this Amendment and the other Loan Documents, and no investigation by Agent or
any Lender or any closing shall affect the representations and warranties or
the right of Agent or any Lender to rely upon them.

 

6.02                        Reference
to Loan Agreement.  Each of the Loan
Documents, including the Loan Agreement and any and all other agreements,
documents or instruments now or hereafter executed and delivered pursuant to
the terms hereof or pursuant to the terms of the Loan Agreement, as amended
hereby, are hereby amended so that any reference in such Loan Documents to the
Loan Agreement shall mean a reference to the Loan Agreement, as amended hereby.

 

6.03                        Expenses
of Agent.  As provided in the Loan
Agreement, Borrower agrees to promptly pay all fees, costs and expenses
incurred by Agent (including attorneys’ fees and expenses, the allocated cash
of Agent’s internal legal staff and fees of environmental consultants,
accountants

 

10

 

and other professionals retained by Agent) incurred in
connection with the review, negotiation, preparation, documentation and
execution of this Amendment.

 

6.04                        Severability.  Any provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

 

6.05                        Successors
and Assigns.  This Amendment is
binding upon and shall inure to the benefit of Agent and Lenders and Borrower
and their respective successors and assigns, except Borrower may not assign or
transfer any of its rights or obligations hereunder without the prior written
consent of Agent and Lenders.

 

6.06                        Counterparts.  This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original,
but all of which when taken together shall constitute one and the same
instrument.

 

6.07                        Effect of
Waiver.  No consent or waiver,
express or implied, by Agent or any Lender to or for any breach of or deviation
from any covenant or condition by Borrower shall be deemed a consent to or
waiver of any other breach of the same or any other covenant, condition or
duty.

 

6.08                        Headings.  The headings, captions, and arrangements used
in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

 

6.09                        Applicable
Law.  THIS AMENDMENT AND ALL OTHER LOAN
DOCUMENTS EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE
PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF ILLINOIS.

 

6.10                        Final Agreement.  THE LOAN DOCUMENTS, AS AMENDED HEREBY,
REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT
MATTER HEREOF ON THE DATE THIS AMENDMENT IS EXECUTED.  THE LOAN DOCUMENTS, AS AMENDED HEREBY, MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES.  THERE ARE NOT
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY
PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED
BY BORROWER, LENDERS AND AGENT.

 

[The Remainder of this Page Intentionally Left
Blank]

 

11

 

IN WITNESS WHEREOF, this
Amendment has been duly executed as of the date first written above.

 

	
   

  	
  BANCTEC, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name: J. Coley Clark

  	
   

  
	
   

  	
  Title: Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  BTI TECHNOLOGIES, L.P.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  BANCTEC, INC., its General
  Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  J. Coley Clark

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HELLER FINANCIAL, INC.,

  
	
   

  	
  as Agent and Sole Lender

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
							

 

 

CONSENT AND RATIFICATION

 

Each of the undersigned
hereby consents to the terms of the within and foregoing Amendment, confirms
and ratifies the terms of its guaranty agreement relating to the Obligations
and each Loan Document it has executed in connection with the Obligations
(collectively, the “Loan Documents”) and acknowledges that the Loan
Documents to which it is a party are in full force and effect and ratifies the
same, that it has no defense, counterclaim, set-off or any other claim to
diminish its liability under such Loan Documents, that its consent is not
required to the effectiveness of the within and foregoing Amendment, and that
no consent by it is required for the effectiveness of any future amendment,
modification, forbearance or other action with respect to the Loans, the
collateral securing the Obligations, or any of the other Loan Documents.

 

	
   

  	
  BTC INTERNATIONAL HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  J. Coley Clark

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANCTEC (PUERTO RICO), INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANCTEC UPPER-TIER HOLDING, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BANCTEC INTERMEDIATE HOLDING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:Exhibit 10.1

 

PROCESSING AND PRODUCTION OUTSOURCING CONTRACT

 

Party A:                            Acheng Branch, Shandong
Tsingtao Brewery

 

Party B:                              Harbin Hainan Kang-Da
Cactus Health Food Co., Ltd.

 

Under the principle of mutual support, mutual benefit and common
development, Party A and Party B have entered into the following agreement
regarding the outsourcing of the production and processing of Cactus Beer by
Party B to Party A:

 

1.               The term of
cooperation will be 3 years: Party A shall process and produce Cactus Beer
according to Party B’s requirements, and the processing fee will be RMB 0.50
Yuan/bottle. Party B is responsible for providing the raw cactus materials and
the formula for the production of Cactus Beer. Party A shall be responsible for
providing other materials for the production of the beer and will charge Party
B for the materials provided based on the market price prevailing at the time
of production. Inspection reports (according to national standards) shall be
issued and the products can only leave the factory after passing the quality
inspection.

 

2.               After receiving the
written order for processing from Party B, Party A shall give priority to the
production and organize the production in strict compliance with the processing
and technical specifications set out by Party B.

 

3.               The production of
Cactus Beer by Part A for Party B shall be carried out in compliance with
the requirements of relevant national standards. Party A must use (according to
Party B’s formula) all cactus materials provided by Party B, and the products
delivered must have passed quality inspections according to national standards.

 

4.               Before Party B
requests Party to start the processing of Cactus Beer, Party B shall provide
the quality requirements and technical specifications, and supply the raw
materials and additives for the production of Cactus Beer. Party A shall carry
out the production in strict compliance with Party B’s quality requirements and
technical specifications. If the production is not carried out according to
Party B’s specifications, which renders the quality of the processed products
not up to the standards, Party A shall be liable for any losses.

 

5.               Payment: Party A
shall inform Party B of the completion of the production. Upon inspection
and acceptance of Party A’s delivery, Party B shall make a lump sum payment for
goods and the processing fee.

 

6.               Any other issues
not included in this Contract shall be settled through negotiation between the
two parties. This Contract is executed in two counterparts, one for each party.
The Contract will enter into effect upon execution and seals of the both
parties.

 

 

Party A: Acheng Branch, Shandong Tsingtao Brewery

Authorized Representative:                                              Wang Yun

[Seal:] Acheng Branch, Shandong Tsingtao Brewery

 

Party B: Harbin Hainan Kang-Da Cactus Health Food Co., Ltd.

Authorized Representative:                                              Zhou
Lixian

[Seal:] Harbin Hainan Kangda Cactus Healthcare Foods Co., Ltd]

 

March 10, 2006

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]