EXHIBIT 10.22
[LETTERHEAD OF GREYROCK BUSINESS CREDIT]
AMENDMENT TO LOAN DOCUMENTS
BORROWER: SYQUEST TECHNOLOGY, INC.
ADDRESS: 00000 XXXXXXX XXXXXXX
XXXXXXX, XXXXXXXXXX 00000
DATE: MARCH 15, 1997
THIS AMENDMENT TO LOAN DOCUMENTS is entered into between Greyrock Business
Credit, a Division of NationsCredit Commercial Corporation ("GBC"), whose
address is 000 Xxxxx Xxxxxxxxxxx Xxxxxxxxx, Xxxxx 000, Xx Xxxxxxx, Xxxxxxxxxx
00000 and the borrower named above ("Borrower").
The Parties agree to amend the Loan and Security Agreement between them,
dated January 17, 1996, and accepted by GBC as of January 23, 1996 (as amended,
the "Loan Agreement"), as follows, effective as of the date hereof. (This
Amendment, the Loan Agreement, any prior written amendments to said agreements
signed by GBC and the Borrower and all other written documents and agreements
between GBC and the Borrower are referred to herein collectively as the "Loan
Documents". Capitalized terms used but not defined in this Amendment, shall have
the meanings set forth in the Loan Agreement.)
1. CREDIT LIMIT. The section of the Schedule to Loan Agreement entitled
"Credit Limit Section 1.1" is hereby amended to read as follows:
"CREDIT LIMIT
SECTION 1.1:
An amount not to exceed the lesser of: (i) $30,000,000 at any
one time outstanding; or (ii) 75% (the "Advance Rate") of the
amount of Borrower's Eligible Receivables (as defined in
Section 8 above);
PROVIDED that with respect to the Netherlands Receivables the
Advance Rate shall be 60% of the amount of such Eligible
Receivables, provided further that the Loans outstanding
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regarding the Netherlands Receivables (the "Netherlands
Loans") shall not exceed $7,000,000 at any one time
outstanding, provided further there shall be no
Netherlands Loans outstanding during each Cleanup Period
(as defined below). "Cleanup Period" means the time period
starting on the last day of each of the Borrower's fiscal
quarters and ending on the 21st day of the succeeding
quarter.
LETTERS OF CREDIT Borrower and GBC are parties to the Letter of Credit
Collateral Agreement dated as of even date herewith (the
"LC Agreement"), pursuant to which GBC may, in its sole
discretion, join with the Borrower in applications for
letters of credit ("Letters of Credit") and/or guarantee
payment or the performance of the Borrower under Letters
of Credit and/or drafts or acceptances relating thereto.
Borrower understands and agrees that availability under
the Credit Limit for Loans shall be reduced in accordance
with the provisions of the LC Agreement.
EXCHANGE CONTRACTS Borrower and GBC are parties to the Foreign Exchange
Agreement dated as of even date herewith (the "FX
Agreement"), pursuant to which GBC may, in its sole
discretion, join with the Borrower in applications for
foreign exchange contracts ("Exchange Contracts") and/or
guarantee payment or the performance of the Borrower under
Exchange Contracts. Borrower understands and agrees that
availability under the Credit Limit for Loans shall be
reduced in accordance with the provisions of the FX
Agreement."
2. Additional Permitted Lien. Borrower has granted to Bank of America a
lien in the Bank of America $400,000 time certificate of deposit, Account
#12333-00882, to secure the obligations of Borrower under a bank guaranty issued
by Bank of America relating to the Singapore affiliate of Borrower, SyQuest
Technology Pte Ltd. It is agreed by the parties hereto such lien constitutes an
additional Permitted Lien under the Loan Agreement.
3. Representations True. Borrower represents and warrants to GBC that all
representations and warranties set forth in the Loan Agreement, as amended
hereby. are true and correct.
4. General Provisions. This Amendment, the Loan Agreement, and the other
Loan Documents set forth in hi] all of the representations and agreements of the
parties with respect to the subject matter hereof and supersede all prior
discussions, representations, agreements and understandings between the parties
with respect to the subject hereof. Except as herein expressly amended, all of
the terms and provisions of the
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Loan Agreement and the other Loan Documents shall continue in full force and
effect and the same are hereby ratified and confirmed.
Borrower: GBC:
SYQUEST TECHNOLOGY, INC. GREYROCK BUSINESS CREDIT,
a Division of NationsCredit
By________________________________ Commercial Corporation
President or Vice President
By________________________________ By______________________________
Ass't Secretary Title___________________________
Accepted and Acknowledged By:
SYQUEST TECHNOLOGY, B.V.
By________________________________
Title:
By________________________________
Title:
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