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QTWW > SEC Filings for QTWW > Form 8-K on 28-May-2009All Recent SEC Filings

Show all filings for QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE INC | Request a Trial to NEW EDGAR Online Pro

Form 8-K for QUANTUM FUEL SYSTEMS TECHNOLOGIES WORLDWIDE INC


28-May-2009

Entry into a Material Definitive Agreement


Item 1.01. Entry into a Material Definitive Agreement

On May 27, 2009, the Registrant and its lender, WB QT, LLC (the "Lender"), entered into a Sixth Amendment to Credit Agreement ("Sixth Amendment"). Pursuant to the Sixth Amendment, the following amendments were made to the terms and provisions of Term Note A and Term Note C:

Term Note A

1. The amortization schedule for the outstanding balance of $7.7 million as of May 27, 2009 was amended to provide for a payment of $1.1 million on June 15, 2009 (which includes interest of $0.1 million) and monthly principal payments of $1.0 million on the 15th day of each month thereafter until the balance has been paid in full. The Sixth Amendment continues to allow the Registrant to pay scheduled principal amounts in stock, subject to certain conditions, or in cash. The outstanding balance as of May 27, 2009 includes the principal payments that were due on March 15, 2009 and April 15, 2009, in the aggregate amount of $4.3 million, which the Registrant had elected to defer as permitted under the Credit Agreement, and the scheduled principal payment of $0.4 million and accrued interest of $0.1 million that were due on May 15, 2009.

2. The interest rate on the outstanding balance was reduced from 18% to 9% effective May 20, 2009 through the maturity date.

3. The Registrant's right to elect to defer a scheduled principal payment for two months was eliminated.
4. If the Registrant elects to make a scheduled principal payment using shares of its common stock, such shares must be delivered to the Lender within two business days following the payment due date.

5. All prepayments must be made in cash.

Term Note C

1. The amortization schedule for the outstanding balance of $4.2 million ($4.1 million of principal and $0.1 million of accrued interest) as of May 27, 2009 was amended to provide for monthly principal payments of $1.25 million commencing on July 1, 2009 and continuing on the 1st day of each month thereafter until the balance has been paid in full. The Sixth Amendment continues to allow the Registrant to pay scheduled principal amounts in stock, subject to certain conditions, or in cash.

2. The Registrant's right to elect to defer a scheduled principal payment for two months was eliminated.

3. If the Registrant elects to make a scheduled amortization payment using shares of its common stock, such shares must be delivered to the Lender within two business days following the payment due date.

4. All prepayments must be made in cash.

5. The Maturity Date was changed from August 1, 2009 to October 31, 2009.

The foregoing description of the Sixth Amendment to Credit Agreement is qualified by reference to the complete terms of such agreement, which is included herewith as Exhibit 10.1.

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