EXTENSION AGREEMENT
This Extension Agreement (the "Extension Agreement") made as
of the 1st day of December, 1997 between Regions Bank
(formerly, First Alabama Bank), a state banking corporation with
a principal office located at Montgomery, Alabama (the "Lender")
and Miltope Corporation, an Alabama corporation with its
principal offices located at Montgomery, Alabama, and Miltope
Business Products, Inc., a New York corporation, with its
principal offices located at_Montgomery, Alabama (herein jointly
and severally called the "Borrowers").
RECITALS:
1 On July 27, 1997, that certain Loan Agreement (as
heretofore and hereafter amended, (the "Loan Agreement') was
executed between the Lender and the Borrowers providing for a
Revolving Credit Loan (as defined in the Loan Agreement) in the
amount of up to $15,000,000.
2. The Loan Agreement provides for extensions of the
Revolving Credit Loan term for successive periods of up to one
year each in such amounts as the Lender may approve, to be
effected by execution by the Borrowers and the Lender of an
Extension Agreement in the form hereof.
3. The Loan Agreement has heretofore been extended through
May 31,
1998.
4. The Lender and the Borrowers, by execution of this
Extension Agreement, seek to further extend the Revolving Credit
Loan for the period and in the amount hereinafter indicated.
AGREEMENTS:
1. Definitions. All capitalized terms used herein are as
defined in the Loan Agreement unless otherwise stated.
2. Extension of Term and Amount. The Revolving Credit Loan
is hereby extended as provided in Section 2.7 of the Loan
Agreement for a period of one year, subject to the terms and
conditions of the Loan Agreement. The maximum principal amount of
the Revolving Credit Loan outstanding at any time shall not
exceed $15,000,000. The Termination Date of the Revolving Credit
Loan pursuant to this Extension Agreement is May 31, 1999 subject
to prepayment and acceleration pursuant to the terms of the Loan
Agreement.
3. Ratification of Loan Agreement. The terms and
conditions of the Loan Agreement relating to the Revolving Credit
Loan, including the Revolving Credit Note Rate, prepayment
provisions, and method of making advances are expressly ratified
and affirmed hereby and shall apply with the same force and
effect to extensions of credit made during the initial term.
4. Security. It is expressly agreed, as provided in the
Loan Agreement, that any and all borrowing pursuant to this
Extension Agreement is secured according to the terms of such
Loan Agreement and all security documents executed in connection
therewith.
IN WITNESS WHEREOF, the undersigned have caused this
instrument to be executed by their duly authorized officers on
this the 1st day of December, 1997.
BORROWERS:
MILTOPE CORPORATION
(SEAL)
ATTEST: By: /s/ George K. Webster
/s/ Edward F. Crowell ---------------------------
- --------------------------
Its Secretary
MILTOPE BUSINESS PRODUCTS, INC.
(SEAL)
By: /s/ George K. Webster
--------------------------
ATTEST:
/s/ Edward F. Crowell
- -------------------------
Its Secretary
LENDER:
REGIONS BANK
(SEAL) By: /s/ L.O. Farris Jr.
--------------------------
ATTEST: Executive Vice President
/s/ Lee Clapp
- --------------------------
Its Senior Vice President
CONSENT OF GUARANTOR
The undersigned Miltope Group, Inc., a Delaware corporation
and a guarantor of the above-referenced Loan Agreement hereby
consents to the above Extension Agreement and acknowledges that
its guaranty of the obligations of the Borrowers under the Loan
Agreement remain in full force and effect.
IN WITNESS WHEREOF, the undersigned has caused this
instrument to be executed by its duly authorized officers this
1st day of December, 1997.
MILTOPE GROUP, INC.
(SEAL)
By: /s/ George K. Webster
ATTEST: ---------------------------
/s/ James Matthews
- -------------------------
Its CFO