UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

Date of report (Date of earliest event reported): May 5, 2009

 

 

MANITEX INTERNATIONAL, INC.

(Exact Name of Registrant as Specified in Charter)

 

 

 

Michigan   001-32401   42-1628978

(State or Other Jurisdiction

of Incorporation )

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

7402 W. 100 th Place, Bridgeview, Illinois 60455

(Address of Principal Executive Offices) (Zip Code)

(708) 430-7500

(Registrant’s Telephone Number, Including Area Code)

 

(Former Name or Former Address, if Changed Since Last Report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 


Item 1.01. Entry into a Material Definitive Agreement.

Company and Comerica Bank Amend Credit Agreements to Lower Interest Rates:

Manitex International, Inc. (the “ Company ”) currently has U.S. and Canadian revolving lines of credit with Comerica Bank (“ Comerica ”). On May 5, 2010, the Company and certain of its subsidiaries entered into amendments to the notes, which were executed in conjunction with loan agreements. The Note Amendments with Comerica decrease interest rates on the U.S. and Canadian revolving credit facilities by 0.5%. The specific Notes that were amended are as follows:

 

   

Amendment to Note (Master Revolving Note dated July 9, 2009) effective May 5, 2009

 

   

Amendment No. 6 to Note (Master Revolving Note dated December 29, 2006, as amended or the “Canadian Note”) effective May 5, 2010

 

   

Amendment No. 2 to Note (Master Revolving Note dated July 9, 2008 or the “American Note”) effective May 5, 2010

Set forth below is a summary of each of these note amendments, which are qualified in their entirety by reference to the copies of such amendments attached as Exhibits 10.1, 10.2, and 10.3, to this Current Report on Form 8-K and incorporated by reference herein.

Amendment to the U.S. Note

On May 5, 2010, Manitex International, Inc. Manitex, Inc, a subsidiary of the Company, and Comerica entered into an Amendment to the Master Revolving Note in the original principal amount of $20,500,000 dated July 29, 200 (the “U.S. Note ”). The current amendment decreases the interest rate for the U.S Revolving Credit Facility from prime rate plus 2.0% to prime rate plus 1.5%

Amendment No. 6 to the Canadian Note.

On May 5, 2010, Manitex LiftKing, ULC (“ Manitex LiftKing ”), a subsidiary of the Company, and Comerica entered into Amendment No.6 to the Master Revolving Note in the original principal amount of CDN $3.5 million, dated December 29, 2006, as amended on August 9, 2007, October 18, 2007, June 30, 2008, July 9, 2009 and October 29, 2009. (the “ Canadian Note ”). The current amendment decreases the interest rate for Canadian dollar borrowing under the Canadian Revolving Credit facility from Canadian prime rate plus 2.5% to Canadian prime rate plus 2.0%.

Amendment No. 2 to the American Note

On May 5, 2010, Manitex LiftKing, ULC (“ Manitex LiftKing ”), a subsidiary of the Company, and Comerica entered into Amendment No. 2 to the Master Revolving Note dated July 9, 2008 (the American Note), as amended on October 29, 2009. The current amendment decreases the interest rate for U.S. dollar borrowings under the Canadian Revolving Credit facility from prime rate plus 2.0% to prime rate plus 1.5%.

Company and Comerica Bank enter into a new credit agreement

On May 5, 2010, Manitex International, Inc. and Comerica enter into a letter agreement that established a new $500,000 revolving credit facility.

Set forth below is a summary of the letter agreement and the new master revolving note, which are qualified in their entirety by reference to the copies of the letter agreement and new master revolving note attached as Exhibits 10.4 and 10.5 to this Current Report on Form 8-K and incorporated by reference herein.


Letter Agreement date May 5, 2010

On May 5, 2010, Manitex International, Inc. and Comerica entered into a letter Agreement. The letter agreement creates a new $500,000 Revolving Credit facility for the Company’s. Under this new facility, the Company can draw funds solely to purchase new or used machinery and equipment. The maximum that can be borrowed is 80% of the invoice cost of the machinery or equipment being purchased. The credit facility has a maturity date of April 1, 2012 and an interest rate of prime rate plus 1.5%.

Master Master Revolving Note.

On July 9, 2009, the Company executed a master revolving note for $500,000. Under this note advances, repayments and re-advances may be made from time to time, subject to the terms and conditions of this note. The note has an April 1, 2012 maturity and has an interest rate of prime rate plus 1.5%. The interest rate increases to prime rate plus 3.0% in the event of default as defined in the agreement.


Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off- Balance Sheet Arrangement of a Registrant.

The information included in Item 1.01 of this Current Report on Form 8-K is incorporated by reference into this Item 2.03.

 

Item 9.01. Financial Statements and Exhibits.

(a) Financial Statements of Businesses Acquired.

Not applicable.

(b) Pro Forma Financial Information.

Not applicable.

(c) Shell Company Transactions.

Not applicable.

(d) Exhibits.

See the Exhibit Index set forth below for a list of exhibits included with this Current Report on Form 8-K.


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

MANITEX INTERNATIONAL, INC.
By:  

/ S /    D AVID H. G RANSEE        

Name:   David H. Gransee
Title:   Vice President and Chief Financial Officer

Date: May 10, 2010


EXHIBIT INDEX

 

Exhibit

Number

  

Description

10.1    Amendment to Note (Master Revolving Note dated July 9, 2009) effective May 5, 2009
10.2    Amendment No. 6 to Note (Master Revolving Note dated December 29, 2006, as amended or the “Canadian Note”) effective May 5, 2010
10.3    Amendment No.2 to Note (Master Revolving Note dated July 9, 2008 or the “American Note”) effective May 5, 2010
10.4    Letter agreement dated May 5, 2010
10.5    Master Revolving Note dated May 5, 2010

Exhibit 10.1

LOGO     Amendment to Note

 

 

This Amendment to Note (“Amendment”), made, delivered, and effective as of May 5, 2010, by and between MANITEX, INC.

(“Borrower”) and COMERICA BANK (“Bank”).

WHEREAS , Borrower and Bank are parties to that certain Master Revolving Note in the original principal amount of $20,500,000 dated July 9, 2009 (“Note”); and

WHEREAS , Bank and Borrower desire to amend the Note as set forth below;

NOW, THEREFORE , in consideration of the premises and the mutual promises contained in this Amendment, Borrower and Bank agree as follows:

 

1. The definition of “Applicable Margin” in the Note is amended by deleting the figure “two percent (2%) per annum” where it appears therein and replacing it with “one and one-half percent (1.50%) per annum”.

 

2. The execution of this Amendment shall not be deemed to be a waiver of any Default or Event of Default.

 

3. All the terms used in this Amendment which are defined in the Note shall have the same meaning as used in the Note, unless otherwise defined in this Amendment.

 

4. This Amendment is not an agreement to any further or other amendment of the Note.

 

5. Borrower expressly acknowledges and agrees that except as expressly amended in this Amendment, the Note, as amended, remains in full force and effect and is ratified, confirmed and restated.

IN WITNESS WHEREOF , the parties have executed and delivered this Amendment on the date set forth above.

 

MANITEX, INC.     COMERICA BANK

By:

 

/s/ David H. Gransee

    By:  

/s/ James Goudie

lts:

 

VP & CFO

   

lts:

 

VP & AGM

CONSENT

The undersigned consents to the foregoing amendment as of the date thereof.

 

    MANITEX INTERNATIONAL, INC.
      By:  

/s/ David H. Gransee

     

lts:

 

VP & CFO

 

Exhibit 10.2

LOGO     Amendment No. 6 to Note

 

 

This Amendment to Note (“Amendment”), made, delivered, and effective as of May 5, 2010, by and between MANITEX LIFTKING, ULC (“Borrower”) and COMERICA BANK (“Bank”).

WHEREAS , Borrower and Bank are parties to that certain Master Revolving Note in the original principal amount of CDN $3,500,000 dated December 29, 2006, as amended (“Note”); and

WHEREAS , Bank and Borrower desire to amend the Note as set forth below;

NOW, THEREFORE , in consideration of the premises and the mutual promises contained in this Amendment, Borrower and Bank agree as follows:

 

1. The non-default interest rate applicable to the Note is now the Canadian Prime Rate plus two and one-half percent (2.50%).

 

2. The execution of this Amendment shall not be deemed to be a waiver of any Default or Event of Default.

 

3. All the terms used in this Amendment which are defined in the Note shall have the same meaning as used in the Note, unless otherwise defined in this Amendment.

 

4. This Amendment is not an agreement to any further or other amendment of the Note.

 

5. Borrower expressly acknowledges and agrees that except as expressly amended in this Amendment, the Note, as amended, remains in full force and effect and is ratified, confirmed and restated.

IN WITNESS WHEREOF , the parties have executed and delivered this Amendment on the date set forth above.

 

MANITEX LIFTKING, ULC     COMERICA BANK
By:  

/s/ David H. Gransee

    By:  

/s/ James Q. Goudie

Its:  

VP & CFO

    Its:  

VP & AGM

Exhibit 10.3

LOGO     Amendment No. 2 to Note

 

 

This Amendment to Note (“Amendment”), made, delivered, and effective as of May 5, 2010, by and between MANITEX LIFTKING, ULC (“Borrower”) and COMERICA BANK (“Bank”).

WHEREAS , Borrower and Bank are parties to that certain Master Revolving Note in the original principal amount of US $4,500,000 dated July 9, 2009, as amended (“Note”); and

WHEREAS , Bank and Borrower desire to amend the Note as set forth below;

NOW, THEREFORE , in consideration of the premises and the mutual promises contained in this Amendment, Borrower and Bank agree as follows:

 

1. The definition of “Applicable Margin” in the Note is amended by deleting the figure “two percent (2%) per annum” and replacing it with “one and one-half percent (1.50%) per annum”.

 

2. The execution of this Amendment shall not be deemed to be a waiver of any Default or Event of Default.

 

3. All the terms used in this Amendment which are defined in the Note shall have the same meaning as used in the Note, unless otherwise defined in this Amendment.

 

4. This Amendment is not an agreement to any further or other amendment of the Note.

 

5. Borrower expressly acknowledges and agrees that except as expressly amended in this Amendment, the Note, as amended, remains in full force and effect and is ratified, confirmed and restated.

IN WITNESS WHEREOF , the parties have executed and delivered this Amendment on the date set forth above.

 

MANITEX LIFTKING, ULC     COMERICA BANK
By:  

/s/ David H. Gransee

    By:  

/s/ James Q. Goudie

Its:  

VP & CFO

    Its:  

VP & AGM

Exhibit 10.4

May 5, 2010

Manitex International, Inc.

50120 Pontiac Trail

Wixom, MI 48393

Gentlemen:

Comerica Bank agrees to lend to Manitex International, Inc., a Michigan corporation (“Company”), at any time and from time to time from the date hereof until April 1, 2012, sums not to exceed Five Hundred Thousand Dollars ($500,000) in the aggregate at any one time outstanding, subject to the following terms and conditions.

1. The borrowings hereunder shall be evidenced by a Master Revolving Note (“Note”) under which advances may be made subject to the terms and conditions of this Agreement.

2. Proceeds of the Note shall be used solely to acquire new or used machinery and equipment for use in Company’s business. Bank may approve requests for advances upon presentation of such documents as the Bank may require. Disbursements may be made only to the extent of eighty percent (80%) of the invoice cost of the machinery and equipment being purchased.

3. Upon any Default under and as defined in the Note, the Note shall at Bank’s option become immediately due and payable in full.

4. This Agreement shall become effective upon the execution hereof by Bank and Company.

5. No amendments or waiver of any provision of this Agreement nor consent to any departure by Company therefrom shall in any event be effective unless the same shall be in writing and signed by the Bank, and then such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. No amendment, waiver or consent with respect to any provision of this Agreement shall affect any other provision of this Agreement.

6. COMPANY AND BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED. EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT


Manitex International, Inc.

May     , 2010

Page 2

 

OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO THIS AGREEMENT, THE NOTE OR THE INDEBTEDNESS EVIDENCED HEREBY OR THEREBY.

If the foregoing clearly sets forth our understanding, please sign where indicated below on the enclosed copy of this letter and return the same to the undersigned.

 

Very truly yours,
COMERICA BANK
James Q. Goudie, III

Acknowledged and Agreed to

as of the date set forth above:

MANITEX INTERNATIONAL, INC.

 

By:  

David H. Gransee

Its:  

VP & CFO

Exhibit 10.5

 

LOGO    Master Revolving Note
  

Prime Referenced Rate

Maturity Date-Optional Advances (Business and Commercial Loans Only)

 

AMOUNT

 

$500,000

 

NOTE DATE

 

May 5, 2010

 

MATURITY DATE

 

April 1, 2012

On or before the Maturity Date set forth above, FOR VALUE RECEIVED, the undersigned promise(s) to pay to the order of COMERICA BANK (herein called “Bank”), at any office of the Bank in the State of Michigan, the principal sum of FIVE HUNDRED THOUSAND DOLLARS ($500,000), or so much of said sum as has been advanced and is then outstanding under this Note, together with interest thereon at the Prime Referenced Rate plus the Applicable Margin.

This Note is a note under which advances, repayments and re-advances may be made from time to time, subject to the terms and conditions of this Note; provided, however, that Bank shall not be obligated to make any advance during the continuance of a Default.

Accrued and unpaid interest on the unpaid principal balance outstanding hereunder shall be payable monthly, in arrears, on the first Business Day of each month, until maturity (whether as stated herein, by acceleration, or otherwise). Interest accruing hereunder shall be computed on the basis of a year of 360 days, and shall be assessed for the actual number of days elapsed, and in such computation, effect shall be given to any change in the applicable interest rate as a result of any change in the Prime Referenced Rate on the date of each such change.

From and after the occurrence of any Default hereunder, and so long as any such Default remains unremedied or uncured thereafter, the Indebtedness outstanding under this Note shall bear interest at a per annum rate of three percent (3%) above the otherwise applicable interest rate hereunder, which interest shall be payable upon demand. In addition to the foregoing, a late payment charge equal to five percent (5%) of each late payment hereunder may be charged on any payment not received by Bank within ten (10) calendar days after the payment due date therefor, but acceptance of payment of any such charge shall not constitute a waiver of any Default hereunder.

In no event shall the interest payable under this Note at any time exceed the maximum rate permitted by law.

The amount and date of each advance hereunder, its applicable interest rate and the amount and date of any repayment shall be noted on Bank’s records, which records shall be conclusive evidence thereof, absent manifest error; provided, however, any failure by Bank to make any such notation, or any error in any such notation, shall not relieve the undersigned of its/their obligations to repay Bank all amounts payable by the undersigned to Bank under or pursuant to this Note, when due in accordance with the terms hereof.

In the event that any payment under this Note becomes due and payable on any day which is not a Business Day, the due date thereof shall be extended to the next succeeding Business Day, and, to the extent applicable, interest shall continue to accrue and be payable thereon during such extension at the rates set forth in this Note.

All payments to be made by the undersigned to Bank under or pursuant to this Note shall be in immediately available United States funds, without setoff or counterclaim, and in the event that any payments submitted hereunder are in funds not available until collected, said payments shall continue to bear interest until collected.

The undersigned may prepay all or part of the outstanding balance of any Indebtedness hereunder at any time without premium or penalty. Any prepayment hereunder shall also be accompanied by the payment of all accrued and unpaid interest on the amount so prepaid.

If the adoption after the date hereof, or any change after the date hereof in, any applicable law, rule or regulation (whether domestic or foreign) of any governmental authority, central bank or comparable agency charged with the interpretation or administration thereof, or compliance by Bank with any request or directive (whether or not having the force of law) made by any such authority, central bank or comparable agency after the date hereof: (a) shall subject Bank to any tax, duty or other charge with respect to this Note or any Indebtedness hereunder, or shall change the basis of taxation of payments


to Bank of the principal of or interest under this Note or any other amounts due under this Note in respect thereof (except for changes in the rate of tax on the overall net income of Bank imposed by the jurisdiction in which Bank’s principal executive office is located); or (b) shall impose, modify or deem applicable any reserve (including, without limitation, any imposed by the Board of Governors of the Federal Reserve System), special deposit or similar requirement against assets of, deposits with or for the account of, or credit extended by Bank, or shall impose on Bank or the foreign exchange and interbank markets any other condition affecting this Note or the Indebtedness hereunder; and the result of any of the foregoing is to increase the cost to Bank of maintaining any part of the Indebtedness hereunder or to reduce the amount of any sum received or receivable by Bank under this Note by an amount deemed by the Bank to be material, then the undersigned shall pay to Bank, within fifteen (15) days of the undersigned’s receipt of written notice from Bank demanding such compensation, such additional amount or amounts as will compensate Bank for such increased cost or reduction. A certificate of Bank, prepared in good faith and in reasonable detail by Bank and submitted by Bank to the undersigned, setting forth the basis for determining such additional amount or amounts necessary to compensate Bank shall be conclusive and binding for all purposes, absent manifest error.

In the event that any applicable law, treaty, rule or regulation (whether domestic or foreign) now or hereafter in effect and whether or not presently applicable to Bank, or any interpretation or administration thereof by any governmental authority charged with the interpretation or administration thereof, or compliance by Bank with any guideline, request or directive of any such authority (whether or not having the force of law), including any risk-based capital guidelines, affects or would affect the amount of capital required or expected to be maintained by Bank (or any corporation controlling Bank), and Bank determines that the amount of such capital is increased by or based upon the existence of any obligations of Bank hereunder or the maintaining of any Indebtedness hereunder, and such increase has the effect of reducing the rate of return on Bank’s (or such controlling corporation’s) capital as a consequence of such obligations or the maintaining of such Indebtedness hereunder to a level below that which Bank (or such controlling corporation) could have achieved but for such circumstances (taking into consideration its policies with respect to capital adequacy), then the undersigned shall pay to Bank, within fifteen (15) days of the undersigned’s receipt of written notice from Bank demanding such compensation, additional amounts as are sufficient to compensate Bank (or such controlling corporation) for any increase in the amount of capital and reduced rate of return which Bank reasonably determines to be allocable to the existence of any obligations of the Bank hereunder or to maintaining any Indebtedness hereunder. A certificate of Bank as to the amount of such compensation, prepared in good faith and in reasonable detail by the Bank and submitted by Bank to the undersigned, shall be conclusive and binding for all purposes absent manifest error.

This Note and any other indebtedness and liabilities of any kind of the undersigned (or any of them) to the Bank, and any and all modifications, renewals or extensions of it, whether joint or several, contingent or absolute, now existing or later arising, and however evidenced and whether incurred voluntarily or involuntarily, known or unknown, or originally payable to the Bank or to a third party and subsequently acquired by Bank including, without limitation, any late charges; loan fees or charges; overdraft indebtedness; costs incurred by Bank in establishing, determining, continuing or defending the validity or priority of any security interest, pledge or other lien or in pursuing any of its rights or remedies under any loan document (or otherwise) or in connection with any proceeding involving the Bank as a result of any financial accommodation to the undersigned (or any of them); and reasonable costs and expenses of attorneys and paralegals, whether inside or outside counsel is used, and whether any suit or other action is instituted, and to court costs if suit or action is instituted, and whether any such fees, costs or expenses are incurred at the trial court level or on appeal, in bankruptcy, in administrative proceedings, in probate proceedings or otherwise (collectively “Indebtedness”) are secured by and the Bank is granted a security interest in and lien upon all items deposited in any account of any of the undersigned with the Bank and by all proceeds of these items (cash or otherwise), all account balances of any of the undersigned from time to time with the Bank, by all property of any of the undersigned from time to time in the possession of the Bank and by any other collateral, rights and properties described in each and every deed of trust, mortgage, security agreement, pledge, assignment and other security or collateral agreement which has been, or will at any time(s) later be, executed by any (or all) of the undersigned to or for the benefit of the Bank (collectively “Collateral”). Notwithstanding the above, (i) to the extent that any portion of the Indebtedness is a consumer loan, that portion shall not be secured by any deed of trust or mortgage on or other security interest in any of the undersigned’s principal dwelling or in any of the undersigned’s real property which is not a purchase money security interest as to that portion, unless expressly provided to the contrary in another place, or (ii) if the undersigned (or any of them) has (have) given or give(s) Bank a deed of trust or mortgage covering California real property, that deed of trust or mortgage shall not secure this Note or any other indebtedness of the undersigned (or any of them), unless expressly provided to the contrary in another place, or (iii) if the undersigned (or any of them) has (have) given or give(s) the Bank a deed of trust or mortgage covering real property which, under Texas law, constitutes the homestead of such person, that deed of trust or mortgage shall not secure this Note or any other indebtedness of the undersigned (or any of them) unless expressly provided to the contrary in another place.

 

2


Upon the occurrence of any Default, the Bank may, at its option and without prior notice to the undersigned (or any of them), declare any or all of the Indebtedness to be immediately due and payable (notwithstanding any provisions contained in the evidence of it to the contrary), sell or liquidate all or any portion of the Collateral, set off against the Indebtedness any amounts owing by the Bank to the undersigned (or any of them), charge interest at the default rate provided in the document evidencing the relevant Indebtedness and exercise any one or more of the rights and remedies granted to the Bank by any agreement with the undersigned (or any of them) or given to it under applicable law.

The undersigned authorize(s) the Bank to charge any account(s) of the undersigned (or any of them) with the Bank for any and all sums due hereunder when due; provided, however, that such authorization shall not affect any of the undersigned’s obligation to pay to the Bank all amounts when due, whether or not any such account balances that are maintained by the undersigned with the Bank are insufficient to pay to the Bank any amounts when due, and to the extent that are insufficient to pay to the Bank all such amounts, the undersigned shall remain liable for any deficiencies until paid in full.

If this Note is signed by two or more parties (whether by all as makers or by one or more as an accommodation party or otherwise), the obligations and undertakings under this Note shall be that of all and any two or more jointly and also of each severally. This Note shall bind the undersigned, and the undersigned’s respective heirs, personal representatives, successors and assigns.

The undersigned waive(s) presentment, demand, protest, notice of dishonor, notice of demand or intent to demand, notice of acceleration or intent to accelerate, and all other notices, and agree(s) that no extension or indulgence to the undersigned (or any of them) or release, substitution or nonenforcement of any security, or release or substitution of any of the undersigned, any guarantor or any other party, whether with or without notice, shall affect the obligations of any of the undersigned. The undersigned waive(s) all defenses or right to discharge available under Section 3-605 of the Michigan Uniform Commercial Code and waive(s) all other suretyship defenses or right to discharge. The undersigned agree(s) that the Bank has the right to sell, assign, or grant participations or any interest in, any or all of the Indebtedness, and that, in connection with this right, but without limiting its ability to make other disclosures to the full extent allowable, the Bank may disclose all documents and information which the Bank now or later has relating to the undersigned or the Indebtedness. The undersigned agree(s) that the Bank may provide information relating to this Note or relating to the undersigned to the Bank’s parent, affiliates, subsidiaries and service providers.

The undersigned agree(s) to reimburse Bank, or any other holder or owner of this Note, for any and all costs and expenses (including, without limit, court costs, legal expenses and reasonable attorneys’ fees, whether inside or outside counsel is used, whether or not suit is instituted, and, if suit is instituted, whether at the trial court level, appellate level, in a bankruptcy, probate or administrative proceeding or otherwise) incurred in collecting or attempting to collect this Note or the Indebtedness or incurred in any other matter or proceeding relating to this Note or the Indebtedness.

The undersigned acknowledge(s) and agree(s) that there are no contrary agreements, oral or written, establishing a term of this Note and agree(s) that the terms and conditions of this Note may not be amended, waived or modified except in a writing signed by an officer of the Bank expressly stating that the writing constitutes an amendment, waiver or modification of the terms of this Note. As used in this Note, the word “undersigned” means, individually and collectively, each maker, accommodation party, endorser and other party signing this Note in a similar capacity. If any provision of this Note is unenforceable in whole or part for any reason, the remaining provisions shall continue to be effective. THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF MICHIGAN, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

For the purposes of this Note, the following terms have the following meanings:

“Applicable Margin” means one and one-half percent (1.50%) per annum.

“Business Day” means any day, other than a Saturday, Sunday or any other day designated as a holiday under Federal or applicable State statute or regulation, on which Bank is open for all or substantially all of its domestic and international business (including dealings in foreign exchange) in Detroit, Michigan, and, in respect of notices and determinations relating to the Daily Adjusting LIBOR Rate, also a day on which dealings in dollar deposits are also carried on in the London interbank market and on which banks are open for business in London, England.

 

3


“Daily Adjusting LIBOR Rate” means, for any day, a per annum interest rate which is equal to the quotient of the following:

 

(a) for any day, the per annum rate of interest determined on the basis of the rate for deposits in United States Dollars for a period equal to one (1) month appearing on Page BBAM of the Bloomberg Financial Markets Information Service as of 11:00 a.m. (Detroit, Michigan time) (or as soon thereafter as practical) on such day, or if such day is not a Business Day, on the immediately preceding Business Day. In the event that such rate does not appear on Page BBAM of the Bloomberg Financial Markets Information Service (or otherwise on such Service) on any day, the “Daily Adjusting LIBOR Rate” for such day shall be determined by reference to such other publicly available service for displaying eurodollar rates as may be reasonably selected by Bank, or, in the absence of such other service, the “Daily Adjusting LIBOR Rate” for such day shall, instead, be determined based upon the average of the rates at which Bank is offered dollar deposits at or about 11:00 a.m. (Detroit, Michigan time) (or as soon thereafter as practical), on such day, or if such day is not a Business Day, on the immediately preceding Business Day, in the interbank eurodollar market in an amount comparable to the principal amount of the Indebtedness hereunder and for a period of one (1) month;

divided by

 

(b) 1.00 minus the maximum rate (expressed as a decimal) on such day at which Bank is required to maintain reserves on “Euro-currency Liabilities” as defined in and pursuant to Regulation D of the Board of Governors of the Federal Reserve System or, if such regulation or definition is modified, and as long as Bank is required to maintain reserves against a category of liabilities which includes eurodollar deposits or includes a category of assets which includes eurodollar loans, the rate at which such reserves are required to be maintained on such category.

“Default” shall mean any Event of Default by the undersigned under the Loan Agreement.

“Loan Agreement” shall mean the Second Amended and Restated Credit Agreement between the undersigned, Manitex, Inc. and Bank dated April 11, 2007, as amended.

“Prime Rate” means the per annum interest rate established by Bank as its prime rate for its borrowers, as such rate may vary from time to time, which rate is not necessarily the lowest rate on loans made by Bank at any such time.

“Prime Referenced Rate” means, for any day, a per annum interest rate which is equal to the Prime Rate in effect on such day, but in no event and at no time shall the Prime Referenced Rate be less than the sum of the Daily Adjusting LIBOR Rate for such day plus two and one-half percent (2.50%) per annum. If, at any time, Bank determines that it is unable to determine or ascertain the Daily Adjusting LIBOR Rate for any day, the Prime Referenced Rate for each such day shall be the Prime Rate in effect at such time, but not less than two and one-half percent (2.50%) per annum.

No delay or failure of Bank in exercising any right, power or privilege hereunder shall affect such right, power or privilege, nor shall any single or partial exercise thereof preclude any further exercise thereof, or the exercise of any other power, right or privilege. The rights of Bank under this Note are cumulative and not exclusive of any right or remedies which Bank would otherwise have, whether by other instruments or by law.

THE MAXIMUM INTEREST RATE SHALL NOT EXCEED 25% PER ANNUM OR THE HIGHEST APPLICABLE USURY CEILING, WHICHEVER IS LESS.

THE UNDERSIGNED AND BANK, BY ACCEPTANCE OF THIS NOTE, ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED UNDER CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVES ANY RIGHT TO TRIAL BY JURY IN THE EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS NOTE OR THE INDEBTEDNESS.

 

MANITEX INTERNATIONAL, INC.
By:  

/s/ David H. Gransee

  SIGNATURE OF
Its:  

VP & CFO

  TITLE

 

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7402 W. 100 th Place   Bridgeview   Illinois   60455
STREET ADDRESS                CITY   STATE   ZIP

 

For Bank Use Only

LOAN OFFICER INITIALS

JQG

  

LOAN GROUP NAME

MMB – West Oakland

   BASE RATE INDEX   

OBLIGOR NAME

Manitex International, Inc.

LOAN OFFICER ID. NO.   

LOAN GROUP NO.

90625

  

OBLIGOR NO.

9087243738

   NOTE NO.               

AMOUNT

$500,000

 

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