Exhibit
10.6(a)
FIRST AMENDMENT TO AMENDED AND
RESTATED LOAN AGREEMENT
THIS FIRST AMENDMENT TO AMENDED AND
RESTATED LOAN AGREEMENT (this “ Amendment ”) is
made and entered into as of February 1, 2007, by and between
HENNESSY ADVISORS, INC. , a California corporation (“
Borrower ”), and U.S. BANK NATIONAL ASSOCIATION
, a national banking association (“ Lender ”),
and has reference to the following facts and circumstances (the
“ Recitals ”):
A. Borrower and Lender entered into
the Amended and Restated Loan Agreement dated as of July 1,
2005 (the “ Loan Agreement ”; all capitalized
terms used and not otherwise defined in this Amendment shall have
the respective meanings ascribed to them in the Loan Agreement as
amended by this Amendment).
B. Borrower has requested an
amendment to the Loan Agreement as described below, and Lender has
agreed to amend the Loan Agreement in the manner hereinafter set
forth.
NOW, THEREFORE, in consideration of
the premises and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Borrower
and Lender hereby agree as follows:
1. Recitals .
The Recitals are true and correct,
and, together with the defined terms set forth therein, are
incorporated herein by this reference.
2. Amendment to Loan
Agreement . Section 2.03(a) of the Loan Agreement is
deleted and replaced with the following:
“(a) So long
as no Event of Default has occurred and is continuing, the Loan
shall bear interest on the outstanding principal amount thereof for
each day until paid at an annual rate equal to One Percent
(1%) below the Prime Rate. So long as any Event of Default has
occurred and is continuing, the Loan shall bear interest on the
outstanding principal amount thereof for each day until paid at an
annual rate equal to One Percent (1%) over and above the Prime
Rate. Interest on the principal balance of the Loan shall be
payable monthly in arrears on the tenth (10
th
) day of each
month, and at the maturity of the Note (whether by reason of
acceleration or otherwise). From and after the maturity of the
Note, whether by reason of acceleration or otherwise, the Loan
shall bear interest, payable on demand, for each day until paid at
an annual rate equal to One Percent (1%) over and above the
Prime Rate.”
3. Costs and Expenses
. Borrower hereby agrees
to reimburse Lender upon demand for all out-of-pocket costs and
expenses (including, without limitation, reasonable
attorneys’ fees and expenses) incurred by Lender in the
preparation, negotiation and execution of this Amendment and any
and all other agreements, documents, instruments and/or
certificates relating to the amendment of Borrower’s existing
credit facilities with Lender. Borrower further agrees to pay or
reimburse Lender for (a) any stamp or other taxes (excluding
income or gross receipts taxes) which may be payable with respect
to the execution, delivery, filing and/or recording of any of the
Transaction Documents and (b) the cost of any filings and
searches, including, without limitation, Uniform Commercial Code
filings and searches. All of the obligations of Borrower under this
paragraph shall survive the payment of the Borrower’s
Obligations and the termination of the Loan Agreement.
4. References to this
Agreement . All
references in the Loan Agreement to “this Agreement”
and any other references of similar import shall henceforth mean
the Loan Agreement as amended by this Amendment.
5. Full Force and Effect
. Except to the
e
