Line of Credit Agreement (2000)Full Document 

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LINE OF CREDIT AGREEMENT
BANK ONE, MICHIGAN (the "Bank"), whose address is 611 Woodward Avenue, Detroit,
Michigan 48226-3947, has approved the credit facilities listed below
(collectively, the "Credit Facilities," and, individually, as designated below)
to American Medical Technologies, Inc. (the "Borrower"), whose address is 5555
Bear Lane, Corpus Christi, Texas 78401 subject to the terms and conditions set
forth in this agreement.

1.0      CREDIT FACILITIES.

         1.1  FACILITY A. The Bank has approved a credit facility to the
              Borrower in the principal sum not to exceed $7,500,000.00 in the
              aggregate at any one time outstanding ("Facility A"). Credit under
              Facility A shall be in the form of disbursements evidenced by
              credits to the Borrower's account and shall be repayable as set
              forth in a Revolving Business Credit Note executed concurrently
              (referred to in this agreement both singularly and together with
              any other promissory notes referenced in this Section 1 as the
              "Notes"). The proceeds of Facility A shall be used for the
              following purpose: working capital. Facility A shall expire
              September 30, 2002 unless earlier withdrawn.

              The Bank agrees to review Facility A on or before September 30 of
              each year to determine whether it desires to extend Facility A for
              an additional year. The performance of the review will not
              obligate the Bank to grant any extension. Such an extension will
              take place at the Bank's sole discretion and may be conditioned
              upon any changes in the terms of Facility A which the Bank may
              require at its sole discretion.

         1.2  FACILITY B (PURCHASE MONEY TERM LOANS AND/OR LEASES). The Bank has
              approved a credit facility to the Borrower in the principal sum
              not to exceed $250,000.00 in the aggregate at any one time
              outstanding ("Facility B"). Facility B shall be in the form of
              loans evidenced by the Borrower's notes on the Bank's form
              (referred to in this agreement both singularly and together with
              any other promissory notes referenced in this Section 1 as the
              "Notes") or lease agreements on the Bank's standard lease form
              (referred to in this agreement as the "Leases"), the proceeds of
              which shall be used to purchase the following equipment - such
              equipment as is required in the normal course of business.
              Interest on each loan shall accrue at a rate to be agreed upon by
              the Bank and the Borrower at the time the loan is made. Rent under
              any Lease shall be in an amount to be negotiated by the Borrower
              and the Bank prior to funding of the Lease. The maturity of each
              note or the term of any Lease shall not exceed 60 months from the
              note date or lease commencement date. Notwithstanding the
              aggregate amount of Facility B stated above, the original
              principal amount of each loan shall not exceed the lesser of 80%
              of the cost of the equipment purchased with loan proceeds or
              $250,000.00, and the amount funded under each Lease shall not
              exceed the cost of the equipment. Facility B shall expire on
              September 30, 2001 unless earlier withdrawn.

2.0      CONDITIONS PRECEDENT.

         2.1  CONDITIONS PRECEDENT TO INITIAL EXTENSION OF CREDIT. Before the
              first extension of credit under this agreement, whether by
              disbursement of a loan, issuance of a letter of credit, the
              funding of a Lease or otherwise, the Borrower shall deliver to the
              Bank, in form and substance satisfactory to the Bank:

              A.  LOAN DOCUMENTS. The Notes, and if applicable, the Leases, the
                  letter of credit applications, the security agreement,
                  financing statements, mortgage, guaranties, subordination
                  agreements and any other loan documents which the Bank may
                  reasonably require to give effect to the transactions
                  described by this agreement;

              B.  EVIDENCE OF DUE ORGANIZATION AND GOOD STANDING. Evidence
                  satisfactory to the Bank of the due organization and good
                  standing of the Borrower and every other business entity that
                  is a party to this agreement or any other loan document
                  required by this agreement;

              C.  EVIDENCE OF AUTHORITY TO ENTER INTO LOAN DOCUMENTS. Evidence
                  satisfactory to the Bank that (i) each party to this agreement
                  and any other loan document required by this agreement is
                  authorized to enter into the transactions described by this
                  agreement and the other loan documents, and (ii) the person
                  signing on behalf of each party is authorized to do so; and




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         2.2  CONDITIONS PRECEDENT TO EACH EXTENSION OF CREDIT. Before any
              extension of credit under this agreement, whether by disbursement
              of a loan, issuance of a letter of credit, the funding of a Lease
              or otherwise, the following conditions shall have been satisfied:


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