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EXHIBIT 10.19
THE BANK OF GLOUCESTER COUNTY
LOAN MODIFICATION AGREEMENT
K-TRON AMERICA, INC.
Date: June 21, 2000 Loan #6039359-6600
Original Amount: $5,000,000.00 Maturity Date: July 3, 2002
WHEREAS, the undersigned Borrower executed the note referred to above on
June 24, 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
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 modified as follows:
IT IS HEREBY AGREED THAT THE ABOVE-NUMBERED NOTE SHALL BECOME DUE JULY
3, 2002. DURING THE TERMS OF THE RENEWAL PAYMENTS OF INTEREST ONLY SHALL
BE DUE EACH MONTH BEGINNING JULY 1, 2000 AND SHALL BE APPLIED TO
INTEREST AND THEN TO PRINCIPAL.
IT IS HEREBY AGREED THAT, EFFECTIVE ON THE DATE OF THIS AGREEMENT,
AMOUNTS BORROWED ON THIS LOAN SHALL BEAR INTEREST AT THE RATE OF 0.25%
BELOW THE WALL STREET JOURNAL'S PRIME RATE.
BORROWER AGREES THAT UNTIL ALL OBLIGATIONS HEREUNDER ARE FULLY PAID AND
DISCHARGED, BORROWER WILL NOT WITHOUT PRIOR WRITTEN CONSENT OF THE BANK:
1. Permit the consolidated debt to net worth ratio of Guarantor
(K-Tron International, Inc.) to be more than 1.65 at fiscal
year-end 2000 or more than 1.60 at fiscal year-end 2001 and each
fiscal year thereafter.
2. Permit the consolidated annual debt coverage ratio of Guarantor
at each fiscal year-end to be less than 1.50.
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3. Permit the consolidated net worth of Guarantor to be less than
$21,400,000 at fiscal year-end 2000 or less than $23,400,000 at
fiscal year-end 2001 and each fiscal year thereafter, excluding
any declines due to changes in foreign exchange rates subsequent
to January 1, 2000.
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.
THE BANK OF GLOUCESTER COUNTY K-TRON AMERICA, INC.
By: /s/ Xxxxx X. Xxxxxxxx, Xx. By: /s/ Xxxxx X. Xxxxx
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Xxxxx X. Xxxxxxxx, Xx., Xxxxx X. Xxxxx, President
Vice President
By: /s/ Xxxxxxxx X. Xxxxx
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Xxxxxxxx X. Xxxxx,
Vice President--Finance
