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EXHIBIT 4.109
AMENDMENT dated as of October 1, 2000 (this "Amendment"), to the Amended and Restated Credit Agreement dated as of March 29, 2000 (as the same may be amended, supplemented, waived or otherwise modified from time to time, the "Credit Agreement"), between MECHANICAL TECHNOLOGY INCORPORATED, a New York corporation (the "Borrower"), and KEYBANK NATIONAL ASSOCIATION, a national banking association, as Lender thereunder (the "Lender").
W I T N E S S E T H
WHEREAS, pursuant to the Credit Agreement, the Lender has agreed to make certain loans and other extensions of credit to the Borrower;
WHEREAS, the Borrower has requested that the Lender amend the Credit Agreement in order to revise certain financial and other covenants; and
WHEREAS, the Lender is willing to agree to the requested amendments, but only upon the terms and conditions set forth herein;
NOW THEREFORE, in consideration of the premises contained herein, the parties hereto agree as follows:
Section 1.1 of the Credit Agreement is hereby amended by deleting clause (i) of the definition of "Liquidity Event" and substituting therefor the following:
"(i) the Market Value per share of common stock of the Company is less than $20.00;".
Section 3.2 of the Credit Agreement is hereby amended by deleting section 3.2(b) in its entirety and substituting therefor the following:
"(b) If Collateral Coverage Ratio Not Met.
(i) If on any date (after giving effect to any other payments on such date) when the Market Value per share of the common stock of the Company falls below $50.00 per share (but not below $30.00 per share), the Lender determines (which determination shall be binding on the parties, in the absence of manifest error) that the Collateral Coverage Ratio is less than 2.00 to 1.00, then (1) the Lender shall promptly notify the Borrower thereof in writing, specifying the amount of additional shares of common stock of the Company which would be required to be pledged under the Pledge Agreement so as to result in a Collateral Coverage Ratio of at least 2.00 to 1.00, and (2) if within three Business Days after any such notice is given the Borrower does not so pledge such additional shares of the Company sufficient to achieve such Collateral Coverage Ratio, the Borrower will immediately prepay Loans in an aggregate principal amount, conforming to the requirements as to the amount of partial prepayments provided for in section 3.1, at least sufficient to result in a Collateral Coverage Ratio of at least 2.00 to 1.00.
(ii) If on any date (after giving effect to any other payments on such date) when the Market Value per share of the common stock of the Company falls below $30.00 per share, the Lender determines (which determination shall be binding on the parties, in the absence of manifest error) that the Collateral Coverage Ratio is less than 4.00 to 1.00, then (1) the Lender shall promptly notify the Borrower thereof in writing, specifying the amount of additional shares of common stock of the Company which would be required to be pledged under the Pledge Agreement so as to result in a Collateral Coverage Ratio of at least 4:00 to 1:00, and (2) if within three Business Days after any such notice is given the Borrower does not so pledge such additional shares of the Company sufficient to achieve such Collateral Coverage Ratio, the Borrower will immediately prepay Loans in an aggregate principal amount, conforming to the requirements as to the amount of partial prepayments provided for in section 3.1, at least sufficient to result in a Collateral Coverage Ratio of at least 4:00 to 1.00.
(iii) Any prepayments of the Term Loans pursuant to this section 3.2(b) shall be applied (if applicable) to the Scheduled Repayments in inverse order of maturity. Additional shares of common stock of the Company required to be pledged hereunder shall be pledged based on initial date of continuous legal ownership of such shares by the Borrower, from oldest to most recent."
"(ii) both before and after giving effect to such sale and any contemporaneous prepayment of the Loans out of the proceeds thereof, the applicable minimum Collateral Coverage Ratio set forth in section 7.6 would be satisfied;"
"7.7. Collateral Coverage Ratio. The Borrower will not permit the Collateral Coverage Ratio to be (i) less than 2.0 to 1.0 at any time the Market Value per share of the common stock of the Company is equal to or greater than $30.00 and (ii) less than 4.0 to 1.0 at any time the Market Value per share of the common stock of the Company is less than $30.00."
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their respective proper and duly authorized officers as of the day and year first above written.
MECHANICAL TECHNOLOGY INCORPORATED
By: Cynthia A. Scheuer Title: Vice President and Chief Financial Officer
Accepted and Agreed to:
KEYBANK NATIONAL ASSOCIATION
By: Timothy M. Rudge
Title: Assistant Vice President
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