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Exhibit 10.18
THE BANK OF GLOUCESTER COUNTY
LOAN MODIFICATION AGREEMENT
K-TRON AMERICA, INC.
Date: July 22, 1999
ACCOUNT #0000000-6600 Maturity Date: July 3, 2001
Original Amount: $ 5,000,000.00 Annual Fee: $12,500.00
Present Balance: $ 0.00
WHEREAS, the undersigned borrower executed the note referred to above on
June 27, 1998, And,
WHEREAS, the note, security agreement and commitment letter executed by the
borrower allow a modification of interest rate, due date or other terms or
conditions without affecting the priority of The Bank of Gloucester County's
lien.
NOW, therefore, in consideration of an annual fee of $12,500.00, the above
referenced note is extended and modified as follows:
IT IS HEREBY AGREED THAT THE ABOVE NUMBERED NOTE SHALL BECOME DUE JULY 3,
2001. DURING THE TERMS OF THE RENEWAL, PAYMENTS OF INTEREST ONLY SHALL BE
DUE EACH MONTH BEGINNING AUGUST 1, 1999 AND SHALL BE APPLIED TO INTEREST
AND THEN TO PRINCIPAL.
BORROWER AGREES THAT UNTIL ALL OBLIGATIONS HEREUNDER ARE FULLY PAID AND
DISCHARGED, BORROWER WILL NOT WITHOUT PRIOR WRITTEN CONSENT OF THE BANK:
PERMIT THE CONSOLIDATED NET WORTH OF BORROWER, DETERMINED IN
ACCORDANCE WITH GENERALLY ACCEPTED ACCOUNTING PRINCIPLES CONSISTENTLY
APPLIED, TO BE LESS THAN $7,000,000 AT DECEMBER 31,1999, OR PERMIT THE
RATIO OF CONSOLIDATED TOTAL LIABILITIES TO CONSOLIDATED NET WORTH TO
BE MORE THAN 2.50:1 AT DECEMBER 31, 1999.
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All terms and conditions of the original note, commitment letter and any
security thereto attached is fully incorporated herein and fully ratified except
as specifically modified by this modification agreement.
K-TRON AMERICA, INC.
THE BANK OF GLOUCESTER COUNTY /s/ Xxxxx X. Xxxxx 7/30/99
XXXXX X. XXXXX, PRESIDENT/DATE
By: /s/ Xxxxx X. Xxxxxxxx /s/ Xxxxxxxx X. Xxxxx 7/26/99
Xxxxx X. Xxxxxxxx, Xx., VP XXXXXXXX X. XXXXX/VP/FINANCE/DATE
