Business Loan Agreement (2004)Full Document 

Start of Preview
                             BUSINESS LOAN AGREEMENT

THIS AGREEMENT is made on September 7, 2004, by and between TechTeam Global,
Inc. ("Borrower"), a corporation organized under the laws of the State of
Delaware, whose chief executive office or residence is located at 27334 West
Eleven Mile Road, Southfield, Michigan 48034, and Standard Federal Bank N.A., a
national banking association ("Standard Federal"), whose address is 2600 West
Big Beaver Road, Troy, Michigan 48084.

In consideration of the mutual agreements hereinafter set forth, the Borrower
and Standard Federal hereby agree as follows:

         SECTION 1 LOANS AND FINANCIAL ACCOMMODATIONS. Standard Federal has made
or shall make in reliance hereon commercial loan(s) to the Borrower in
accordance with Standard Federal's application and underwriting procedures,
including the loans referred to below, if any. All such loans are herein
referred to as the "Loan" or "Loans." Borrower acknowledges and agrees that in
making, extending or renewing the Loans, Standard Federal is relying on the
representations, covenants and agreements of the Borrower contained in this Loan
Agreement and all such Loans shall be subject to the terms and provisions
hereof.

         1.1.     LINE OF CREDIT. Standard Federal hereby extends to the
                  Borrower a revolving line of credit (the "Line of Credit")
                  which shall not exceed at any one time outstanding the
                  principal amount of Five Million Dollars ($5,000,000) (the
                  "Credit Limit") on the following terms and conditions.

                  1.1.1.   Advances under the Line of Credit shall be used for
                           working capital purposes. Standard Federal shall make
                           advances and issue Letters of Credit (as defined
                           herein) under the Line of Credit up to a total amount
                           equal to the lesser of (i) the Borrowing Base and
                           (ii) the Credit Limit. The Borrowing Base shall be an
                           amount equal to one hundred percent (100%) of the
                           balance of the Borrower's demand deposit account no.
                                       maintained with Standard Federal ("Cash
                           Collateral Account"). The Cash Collateral Account
                           shall be a non-interest bearing, non-operational
                           account which earns no credit allowances and which is
                           subject to an electronic hold. If at any time the
                           aggregate amount of the advances under the Line of
                           Credit and the outstanding amount of Letters of
                           Credit exceeds the balance of the Cash Collateral
                           Account, then the Borrower shall immediately prepay
                           the advances in an amount equal to such excess and/or
                           provide additional cash collateral to Bank in an
                           amount equal to such excess.

                  1.1.2.   The Line of Credit herein extended shall be subject
                           to the terms and conditions of a Promissory Note
                           (Line of Credit) of even date herewith and all
                           renewals and amendments thereof (the "Line of Credit
                           Note"). The Line of Credit shall be payable and shall
                           bear interest as set forth in the Line of Credit
                           Note. This Loan Agreement and the Line of Credit Note
                           are of equal materiality and shall each be construed
                           in such manner as to give full force and effect to
                           all provisions of both documents.




                                      E-2
<PAGE>


                  1.1.3.   The Borrower shall pay to Standard Federal a facility
                           fee equal to one quarter of one percent ( 1/4%) per
                           annum multiplied by the Credit Limit as in effect
                           from time to time. Such fee shall be calculated on
                           the basis of a 360 day year for the actual number of
                           days elapsed and shall be payable quarterly in
                           arrears on the last day of each September, December,
                           March and June, commencing September 30, 2004.

         1.2.     LETTERS OF CREDIT. Standard Federal shall, from time to time,
                  issue letters of credit on behalf of Borrower ("Letters of
                  Credit"), under which the total amount available for draw at
                  any one time shall not exceed Five Million Dollars

End of Preview