EXHIBIT 10.1
(Graphic - Fleet Letterhead)
May 28, 1996
Mr. Paul Lacy
Vice President of Finance & Administration
Kronos Incorporated
400 Fifth Avenue
Waltham, MA 02154
Dear Paul:
We are pleased to inform you that Fleet National Bank ("Bank"), successor to
Fleet Bank of Massachusetts, N.A., has approved the renewal of the existing
$3,000,000 revolver ("Revolver") held available to Kronos, Inc. ("Borrower") for
two (2) years, until June 1, 1998. As in the past, advances under the Revolver
shall bear interest at your option of either the "Prime" rate, or LIBOR+1.75%.
Also, as in the past, the Bank continues to maintain a 3/8% commitment fee on
the unused portion of the subject Revolver. "Prime Rate" is defined as that rate
from time to time announced and made effective by the Bank as the Prime Rate.
Your borrowing rate shall change as the Prime Rate changes. Interest shall be
made payable monthly in arrears. Interest and fees are calculated on the basis
of a 360 day year and actual days elapsed.
It should be noted that at various times within the terms of this commitment,
advances may be allocated for Letters of Credit so long as that in aggregate,
advances under the revolver do not exceed the total committed amount.
Additionally approved was a two (2) year renewal of the existing $1.0MM Foreign
Exchange Line, until June 1, 1998.
Notwithstanding the aforementioned, all other terms and conditions of the
existing Loan Agreement remain in full force and effect. If the aforementioned
terms and conditions continue to meet with your approval, please acknowledge
your understanding and acceptance by signing this letter and returning it to my
attention at:
Fleet National Bank
75 State Street
Boston, Massachusetts 02109
MABOFO4H
Also, please sign the enclosed Addendum to the existing Loan Agreement which
serves to address the Bank's recent change in name to Fleet National Bank. If
you have any questions, please call me at (617) 346-1856.
Sincerely,
/s/ Ann M. Dillon
Ann M. Dillon
Vice President
Acknowledged and Accepted:
/s/ Paul Lacy 6/3/96
- ------------------------- ------------
Kronos Incorporated Date
Paul Lacy
Vice President of Finance & Administration
ADDENDUM TO
Loan Agreement dated June 30, 1993, and subsequently amended (the
"Instrument"), between Kronos Incorporated (collectively or singularly, as the
case may be, the "obligor") and the Bank referred to in the instrument.
Notwithstanding anything to the contrary contained in the Instrument, the
Obligor hereby acknowledges and agrees that any and all references therein to
"Fleet Bank of Massachusetts, N.A.," shall be deemed to refer to Fleet National
Bank.
IN WITNESS WHEREOF, the Obligor has executed this Addendum this 3rd day of
June, 1996.
Obligor:
Kronos Incorporated
By: __/s/ Paul Lacy_________________
Print Name: Paul Lacy
Title: Vice President of Finance &
Administration