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SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

Security Agreement

SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT | Document Parties: Silicon Valley Bank | XPLORE TECHNOLOGIES CORPORATION You are currently viewing:
This Security Agreement involves

Silicon Valley Bank | XPLORE TECHNOLOGIES CORPORATION

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Title: SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
Date: 8/12/2008
Industry: Computer Hardware     Sector: Technology

SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT, Parties: silicon valley bank , xplore technologies corporation
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Exhibit 10.1

 

SIXTH AMENDMENT
TO
LOAN AND SECURITY AGREEMENT

 

THIS SIXTH AMENDMENT to Loan and Security Agreement (this “Amendment”) is entered into this sixth day of August, 2008, by and between Silicon Valley Bank (“Bank”) and XPLORE TECHNOLOGIES CORPORATION OF AMERICA, a Delaware corporation (“Borrower”) whose address is 14000 Summit Drive, Suite 900, Austin, Texas 78728.

 

RECITALS

 

A.                                     Bank and Borrower have entered into that certain Loan and Security Agreement dated as of September 15, 2005, as amended by that certain First Amendment to Loan and Security Agreement by and between Bank and Borrower dated as of November 28, 2005, that certain Letter amending Loan and Security Agreement by and between Bank and Borrower dated as of March 30, 2006, that certain Second Amendment to Loan and Security Agreement by and between Bank and Borrower dated as of May 15, 2006, that certain Third Amendment to Loan and Security Agreement by and between Bank and Borrower dated as of February 28, 2007, that certain Fourth Amendment to Loan and Security Agreement by and between Bank and Borrower dated as of March 28, 2008 and that certain Fifth Amendment to Loan and Security Agreement by and between Bank and Borrower dated as of May 27, 2008  (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”).

 

B.                                     Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.                                     Borrower has requested that Bank amend the Loan Agreement to make certain revisions to the Loan Agreement as more fully set forth herein.

 

D.                                     Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.                                       Definitions.   Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

 



 

2.                                       Amendments to Loan Agreement .

 

2.1                                Schedule Section 5 (FINANCIAL COVENANTS (Section 5.1) ) .  The paragraph regarding Subordinated Debt prior to the “Definitions” portion of Section 5 of the Schedule to the Loan Agreement is hereby amended and restated to read as follows:

 

Subordinated Debt/Equity.   Borrower shall have received at least Three Million Dollars ($3,000,000) in proceeds from the issuance of Subordinated Debt or equity securities no later than September 5, 2008.”

 

3.                                       Waiver.  Effective as of July 31, 2008, Bank hereby waives Borrower’s defaults under Section 5 of the Schedule to the Loan Agreement with respect to (i) the Tangible Net Worth requirement for the measurin


 
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