BUSINESS FINANCING MODIFICATION
AGREEMENT
This Business Financing Modification
Agreement is entered into as of August 04, 2009, by and between
Balqon Corporation (the "Borrower") and Bridge Bank, National
Association ("Lender").
1.
DESCRIPTION OF EXISTING INDEBTEDNESS: Among other
indebtedness which may be owing by Borrower to Lender, Borrower is
indebted to Lender pursuant to, among other documents, a Business
Financing Agreement, dated February 18, 2009 by and between
Borrower to Lender, as may be amended from time to time (the
"Business Financing Agreement"). Capitalized terms used without
definition herein shall have the meanings assigned to them in the
Business Financing Agreement.
Hereinafter,
all indebtedness owing by Borrower to Lender shall be referred to
as the "Indebtedness" and the Business Financing Agreement and any
and all other documents executed by Borrower in favor of Lender
shall be referred to as the "Existing Documents."
2.
DESCRIPTION OF CHANGE IN TERMS.
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A.
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Modification(s) to Business Financing
Agreement:
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1.
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The following
defined term in Section 14.1 is hereby amended as
follows:
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"Credit
Limit" means
$2,000,000.00, which is intended to be the maximum amount of
Advances at any time outstanding.
3.
CONSISTENT CHANGES. The Existing Documents are each hereby
amended wherever necessary to reflect the changes described
above.
4.
PAYMENT OF ADDITIONAL FACILITY FEE. Borrower shall pay
Lender a fee in the amount of $4,375 ("Prorated Additional Facility
Fee") plus all out-of-pocket expenses.
5.
NO DEFENSES OF BORROWER/GENERAL RELEASE. Borrower agrees
that, as of this date, it has no defenses against the obligations
to pay any amounts under the Indebtedness. Borrower ("Releasing
Party") acknowledges that Lender would not enter into this Business
Financing Modification Agreement without Releasing Party's
assurance that it has no claims against Lender or any of Lender's
officers, directors,
