RELEASE AND THIRD AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT
Exhibit 10(az)
RELEASE AND THIRD AMENDMENT TO AMENDED AND RESTATED
THIS RELEASE AND THIRD AMENDMENT TO AMENDED AND RESTATED REVOLVING CREDIT AND SECURITY AGREEMENT (this "Amendment") dated as of September 30, 2016, is made by and among the BORROWERS party hereto (the "Borrowers"), the GUARANTORS party hereto (the "Guarantors"), the financial institutions party hereto as LENDERS (collectively, "Lenders" and each individually a "Lender"), PNC BANK, NATIONAL ASSOCIATION ("PNC"), as agent for the Lenders (PNC, in such capacity, "Agent"), and X.X. XXXXXX EUROPE LIMITED ("JPM Europe"), as European agent for the Lenders (JPM Europe, in such capacity, the "European Agent").
WITNESSETH:
WHEREAS, the Borrowers, the Guarantors, the Lenders, the Agent and the European Agent are parties to that certain Amended and Restated Revolving Credit and Security Agreement, dated as of September 30, 2015, as amended by (i) First Amendment to Amended and Restated Revolving Credit and Security Agreement, dated as of February 16, 2016, and (ii) Waiver and Second Amendment to Amended and Restated Revolving Credit and Security Agreement, dated May 3, 2016, (as so amended, the "Credit Agreement"); and
WHEREAS, the Borrowers and the Guarantors have requested the Lenders to make certain amendments and other accommodations to the Credit Agreement in order to, among other things (i) permit the sale of Garden City Medical Inc. and the release of it as a Borrower under the Credit Agreement, (ii) permit the sale of certain inventory in connection with the sale of Garden City Medical Inc., and (iii) permit the release of Invacare Canada Finance, LLC ("Released Guarantor") as a guarantor under the Credit Agreement. The Lenders have agreed to such amendments and accommodations, subject to the terms and conditions set forth in this Amendment.
NOW THEREFORE, the parties hereto, in consideration of their mutual covenants and agreements hereinafter set forth and intending to be legally bound hereby, covenant and agree as follows:
1.Recitals. The foregoing recitals are incorporated herein by reference.
2.Defined Terms. Capitalized terms not otherwise defined in this Amendment have the meanings given to them in the Credit Agreement.
3.Amendment of Section 1.2 - General Terms. The following definitions are hereby added in Section 1.2 of the Credit Agreement in their appropriate alphabetical positions:
GCMI shall mean Garden City Medical Inc.
GCMI Disposition shall mean the sale of the GCMI Disposed Assets in accordance with the terms of the GCMI Purchase Agreement.
GCMI Disposition Effective Date shall mean the date of the consummation of the GCMI Disposition.
GCMI Disposed Assets shall mean all of the issued and outstanding shares of capital stock of GCMI, as more fully described in the GCMI Purchase Agreement.
GCMI Inventory shall mean certain ProBasics™ brand products inventory held by Invacare Corporation, as more fully described in the GCMI Purchase Agreement.
GCMI Inventory Sale shall mean the sale of the GCMI Inventory in accordance with the terms of the GCMI Purchase Agreement.
GCMI Purchase Agreement shall mean the Stock Purchase Agreement, dated September 30, 2016, by and among Compass Health Brands Corp., a Delaware corporation, as buyer, the Company and GCMI.
MCLP shall mean Motion Concepts L.P., an Ontario limited partnership.
MI shall mean Medbloc, Inc., a Delaware corporation.
4.Amendment of the definition of Permitted Dispositions. The definition of Permitted Dispositions in Section 1.2 of the Credit Agreement is hereby amended by (i) deleting the "and" at the end of Clause (J) thereof, (ii) deleting the "." at the end of Clause (K) thereof and in its stead inserting "; and" and (iii) inserting the following new clause (L) at the end of such definition:
(L) The GCMI Inventory Sale and the GCMI Disposition.
5.Amendment of Section 7.1(a). Section 7.1(a) of the Credit Agreement is hereby amended by (i) deleting the "and" immediately preceding clause (vi) thereof and (ii) inserting "and (vii) MCLP may sell all of the Equity Interests in MI to the Company" immediately prior to the "." at the end of such section.
6.Amendment of Article 16. Article 16 of the Credit Agreement is hereby amended by adding the following new Section 16.24 at the end of such Article immediately following Section 16.23:
16.24 Release of GCMI and Liens on the GCMI Disposed Assets and GCMI Inventory. Subject to the condition that the proceeds of the sale of the GCMI Disposed Assets and the GCMI Inventory be applied to the repayment of the outstanding advances in accordance with Section 2.19(a), effective as of the GCMI Disposition Effective Date, the Agent and the Lenders hereby unconditionally and irrevocably (i) terminate, release and discharge any and all Liens and security interests in the GCMI Disposed Assets and the GCMI Inventory and (ii) release GCMI as Borrower under the Credit Agreement and under any Other Document to which it is a party, and it shall be relieved of any and all obligations or liabilities whatsoever under the Credit Agreement and any Other Documents, and any liens filed against GCMI in favor of the Agent in connection with the Credit Agreement and the Other Documents are hereby released and terminated.
7.Guarantor Release. Effective as of the date hereof, the Agent hereby releases the Released Guarantor from its obligations under the Guaranty and as Loan Party under the Credit Agreement and under any Other Document to which it is a party, and any liens filed against Released Guarantor in favor of the Agent in connection with the Credit Agreement and the Other Documents are hereby released and terminated. The foregoing release shall in no way limit or otherwise affect any indemnification or other provision contained in the Credit Agreement or any Other Document, which by their express terms, survive their release of a Party or the termination of the Credit Agreement or any Other Document. The Released Guarantor hereby acknowledges and affirms all such surviving obligations under the Credit Agreement or any Other Document, as the case may be.
8.Conditions Precedent. The effectiveness of this Amendment is subject to the receipt by the Agent of the following items, each in form and content satisfactory to the Agent:
(a)the Agent shall have received this Amendment, duly executed by a duly authorized officer of each of the Loan Parties, each of the Lenders and each of the Agents;
(b)the Loan Parties shall deliver all applicable updated Schedules in accordance with Section 9.19 of the Credit Agreement;
(c)the Loan Parties shall deliver all applicable updated schedules to the Pledge Agreement;
(d)no Potential Default or Event of Default shall have occurred; and
(e)the Borrowers shall have paid all of Agent's costs and expenses (including Agent's attorneys' fees) incurred in connection with the preparation of this Amendment.
9.Representations and Warranties. Each Borrower and each Guarantor covenants and agrees with and represents and warrants to the Agent, the European Agent and the Lenders as follows:
(a)each Borrower's and each Guarantor's obligations under the Credit Agreement, as modified hereby, are and shall remain secured by the Collateral pursuant to the terms of the Credit Agreement and the Other Documents;
(b)each Borrower and each Guarantor possesses all of the powers requisite for it to enter into and carry out the transactions referred to herein and to execute, enter into and perform the terms and conditions of this Amendment, the Credit Agreement and the Other Documents and any other documents contemplated herein that are to be performed by such Borrower or such Guarantor; and that any and all actions required or necessary pursuant to such Borrower's or such Guarantor's organizational documents or otherwise have been taken to authorize the due execution, delivery and performance by such Borrower and such Guarantor of the terms and conditions of this Amendment, the Credit Agreement and the Other Documents, and that such execution, delivery and performance will not conflict with, constitute a default under or result in a breach of any applicable law or any agreement, instrument, order, writ, judgment, injunction or decree to which such Borrower or such Guarantor is a party or by which such Borrower or such Guarantor or any of its properties are bound, and that all consents, authorizations and/or approvals required or necessary from any third parties in connection with the entry into, delivery and performance by such Borrower and/or such Guarantor of the terms and conditions of this Amendment, the Credit Agreement, the Other Documents and the transactions contemplated hereby and thereby have been obtained by such Borrower and such Guarantor and are in force and effect;
(c)this Amendment, the Credit Agreement, and the Other Documents constitute the valid and legally binding obligations of each Borrower and each Guarantor, enforceable against such Borrower and such Guarantor in accordance with their respective terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws and by general equitable principles, whether enforcement is sought by proceedings at law or in equity;
(d)all representations and warranties made by each Borrower and each Guarantor in the Credit Agreement and the Other Documents are true and correct in all material respects as of the date hereof, with the same force and effect as if all such representations and warranties were fully set forth herein and made as of the date hereof and each Borrower and each Guarantor has complied with all covenants and undertakings in the Credit Agreement and the Other Documents;
(e)except as expressly set forth herein, this Amendment is not a substitution, novation, discharge or release of any Borrower's or any Guarantor's obligations under the Credit Agreement or any of the Other Documents, all of which shall and are intended to remain in full force and effect;
(f)no Event of Default or Potential Default has occurred and is continuing under the Credit Agreement or the Other Documents; there exist no defenses, offsets, counterclaims or other claims with respect to any Borrower's or any Guarantor's obligations and liabilities under the Credit Agreement or any of the Other Documents; and
(g)each Borrower and each Guarantor hereby ratifies and confirms in full its duties and obligations under the Credit Agreement, the Guaranty Agreement, and the Other Documents applicable to it, each as modified hereby.
10.Reimbursement of Expenses. The Borrowers, jointly and severally, shall pay or cause to be paid to the Agent all costs and expenses accrued through the date hereof and the costs and expenses of the Agent including, without limitation, fees of the Agent's counsel in connection with this Amendment.
11.Document References. As used in the Credit Agreement and each of the Other Documents, the terms "this Credit Agreement", "herein", "hereinafter", "hereto", "hereof", and words of similar import shall, unless the context otherwise requires, mean the Credit Agreement as amended and modified by this Amendment. The term "Other Documents" as defined in the Credit Agreement shall include this Amendment.
12.Integration. This Amendment, together with the Credit Agreement and the Other Documents, constitutes the entire agreement and understanding among the parties relating to the subject matter hereof, and supersedes all prior proposals, negotiations, agreements and understandings relating to such subject matter. In entering into this Amendment, each Borrower and each Guarantor acknowledges that it is relying on no statement, representation, warranty, covenant or agreement of any kind made by Agent or any Lender or any employee or agent of Agent or any Lender, except for the agreements of Agent and the Lenders set forth herein. This Amendment shall be construed without regard to any presumption or rule requiring that it be construed against the party causing this Amendment or any part hereof to be drafted.
13.Successors and Assigns. This Amendment shall apply to and be binding upon the Borrowers and the Guarantors in all respects and shall inure to the benefit of each of the other parties hereto and their respective successors and assigns, provided that none of the Borrowers or the Guarantors may assign, transfer or delegate its duties and obligations hereunder. Nothing expressed or referred to in this Amendment is intended or shall be construed to give any person or entity other than the parties hereto a legal or equitable right, remedy or claim under or with respect to this Amendment, the Credit Agreement or any Other Documents, it being the intention of the parties hereto that this Amendment and all of its provisions and conditions are for the sole and exclusive benefit of the parties hereto.
14.Severability. If any one or more of the provisions contained in this Amendment, the Credit Agreement, or the Other Documents shall be held invalid, illegal or unenforceable in any respect, the validity, legality or enforceability of the remaining provisions contained in this Amendment, the Credit Agreement or the Other Documents shall not in any way be affected or impaired thereby, and this Amendment, the Credit Agreement and the Other Documents shall otherwise remain in full force and effect.
15.Further Assurances. Each Borrower and each Guarantor agrees to execute such other and further documents and instruments as Agent may request to implement the provisions of this Amendment.
16.Governing Law. This Amendment will be governed by the internal laws of the State of New York without reference to its conflicts of law principles.
17.Waiver and Release. Each Borrower and each Guarantor, by signing below, hereby waives and releases Agent, the European Agent, Issuer and each of the Lenders and their respective directors, officers, employees, attorneys, affiliates and subsidiaries from any and all claims, offsets, defenses and counterclaims of which any Borrower or any Guarantor is aware, such waiver and release being with full
knowledge and understanding of the circumstances and effect thereof and after having consulted legal counsel with respect thereto.
18.Counterparts; Electronically Delivered Signatures. This Amendment may be executed in any number of counterparts each of which, when so executed, shall be deemed an original, but all such counterparts shall constitute but one and the same instrument. Delivery of executed signature pages hereof by facsimile or other means of electronic transmission from one party to another shall constitute effective and binding execution and delivery thereof by such party. Any party that delivers its original counterpart signature to this amendment by facsimile transmission hereby covenants to deliver its original counterpart signature promptly thereafter to the Agent.
19.WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AMENDMENT, THE CREDIT AGREEMENT OR ANY OTHER DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AMENDMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.
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[SIGNATURE PAGES FOLLOW]
[SIGNATURE PAGE TO RELEASE AND AMENDMENT]
Each of the parties has signed this Amendment as of the day and year first above written.
US BORROWERS: | |
Invacare Corporation, an Ohio corporation By: /s/ Xxxxxx X. Gudbranson Name: Xxxxxx X. Gudbranson Title: Senior Vice President, Chief Financial Officer and Treasurer | |
Freedom Designs, Inc., a California corporation Alber USA, LLC, an Ohio limited liability company The Aftermarket Group, Inc., a Delaware corporation Medbloc, Inc., a Delaware corporation By: /s/ Xxxxxx X. Gudbranson Name: Xxxxxx X. Gudbranson Title: Vice President and Treasurer | |
Garden City Medical, Inc., a Delaware corporation By: /s/ Xxxxxx X. Xxxxxxxxxx Name: Xxxxxx X. Xxxxxxxxxx Title: Treasurer | |
Invacare Continuing Care, Inc., a Missouri corporation By: /s/ Xxxxxx X. Gudbranson Name: Xxxxxx X. Gudbranson Title: Vice President | |
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US GUARANTORS: | |
Adaptive Switch Laboratories, Inc., a Texas corporation The Helixx Group, Inc., an Ohio corporation Invacare Credit Corporation, an Ohio corporation Invacare International Corporation, an Ohio corporation Invacare Holdings, LLC, an Ohio limited liability company Invacare Florida Holdings, LLC, a Delaware limited liability company Invacare Florida Corporation, a Delaware corporation Invamex Holdings LLC, a Delaware limited liability company By: /s/ Xxxxxx X. Gudbranson Name: Xxxxxx X. Gudbranson Title: Vice President and Treasurer | |
Invacare Canadian Holdings, Inc., a Delaware corporation Invacare Canadian Holdings, LLC, a Delaware limited liability company Invacare Canada Finance, LLC, a Delaware limited liability company By: /s/ Xxxxxx X. Gudbranson Name: Xxxxxx X. Gudbranson Title: President | |
[SIGNATURE PAGE TO RELEASE AND AMENDMENT]
CANADIAN BORROWERS: | |
Invacare Canada L.P., an Ontario limited partnership, by its general partner, Invacare Canada General Partner Inc. Xxxxxxx Healthcare L.P., an Ontario limited partnership, by its general partner, Xxxxxxx Healthcare General Partner, Inc. Motion Concepts L.P., an Ontario limited partnership, by its general partner, Xxxxxxx Healthcare Inc. Perpetual Motion Enterprises Limited, an Ontario corporation By: /s/ Xxxxxx X. Gudbranson Name: Xxxxxx Gudbranson Title: Vice President and Treasurer | |
CANADIAN GUARANTORS: | |
Xxxxxxx Healthcare General Partner, Inc., an Ontario corporation Carroll Healthcare Inc., an Ontario corporation Invacare Canada General Partner Inc., a Canada corporation By: /s/ Xxxxxx X. Gudbranson Name: Xxxxxx Gudbranson Title: Vice President and Treasurer | |
[SIGNATURE PAGE TO RELEASE AND AMENDMENT]
ENGLISH BORROWERS: | |
Invacare Limited, a company incorporated in England and Wales with company number 05178693 By: /s/ Xxxxxxxx Vassiloudis Name: Xxxxxxxx Vassiloudis Title: Director | |
ENGLISH GUARANTORS: | |
Invacare Limited, a company incorporated in England and Wales with company number 05178693 By: /s/ Xxxxxxxx Vassiloudis Name: Xxxxxxxx Vassiloudis Title: Director | |
Invacare UK Operations Limited, a company incorporated in England and Wales with company number 03281202 By: /s/ Xxxxxxxx Vassiloudis Name: Xxxxxxxx Vassiloudis Title: Director | |
[SIGNATURE PAGE TO RELEASE AND AMENDMENT]
FRENCH BORROWERS: | |
Invacare Xxxxxxx SAS By: /s/ Xxxxxxxx Vassiloudis Name: Xxxxxxxx Vassiloudis Title: President Duly Authorised | |
FRENCH GUARANTORS: | |
Invacare Xxxxxxx SAS By: /s/ Xxxxxxxx Vassiloudis Name: Xxxxxxxx Vassiloudis Title: President Duly Authorised | |
Invacare France Operations S.A.S. By: /s/ Xxxxxxxx Vassiloudis Name: Xxxxxxxx Vassiloudis Title: President Duly Authorised | |
[SIGNATURE PAGE TO RELEASE AND AMENDMENT]
PNC BANK, NATIONAL ASSOCIATION,
as Lender and as Agent
as Lender and as Agent
By: /s/ Xxxx Xxxxxxxx
Name: Xxxx Xxxxxxxx
Title: Senior Vice President
[SIGNATURE PAGE TO WAIVER AND AMENDMENT]
KEYBANK NATIONAL ASSOCIATION,
as Lender
as Lender
By: /s/ Xxxxxxxx Xxx
Name: Xxxxxxxx Xxx
Title: Vice President
[SIGNATURE PAGE TO RELEASE AND AMENDMENT]
JPMORGAN CHASE BANK, N.A.,
as Lender
as Lender
By: /s/ Xxxxxxxxx Xxxxxxx
Name: Xxxxxxxxx Xxxxxxx
Title: Authorized Officer
[SIGNATURE PAGE TO RELEASE AND AMENDMENT]
X.X. XXXXXX EUROPE LIMITED,
as Lender
as Lender
By: /s/ Xxxxxxx Xxxxxxx
Name: Xxxxxxx Xxxxxxx
Title: Vice President
[SIGNATURE PAGE TO RELEASE AND AMENDMENT]
X.X. XXXXXX EUROPE LIMITED,
as European Agent
as European Agent
By: /s/ Xxxxxxx Xxxxxxx
Name: Xxxxxxx Xxxxxxx
Title: Authorised Officer
[SIGNATURE PAGE TO WAIVER AND AMENDMENT]
CITIZENS BUSINESS CAPITAL, A DIVISION OF CITIZENS ASSET FINANCE, INC.,
as Lender
as Lender
By: /s/ Xxxxx Xxxxxxxx
Name: Xxxxx Xxxxxxxx
Title: Vice President
