GUARANTEE MODIFICATION AGREEMENT (NO. 1)
EXHIBIT 10.2
GUARANTEE
MODIFICATION AGREEMENT (NO. 1)
GUARANTEE MODIFICATION AGREEMENT (NO. 1) dated as of April 29, 2002 by and between LIONBRIDGE
TECHNOLOGIES, INC., a Delaware corporation (the “Guarantor”), and SILICON VALLEY BANK (the “Bank”), a California chartered bank with its principal place of business at 0000 Xxxxxx Xxxxx, Xxxxx Xxxxx, Xxxxxxxxxx
00000, and with a loan production office located at One Newton Executive Park, 0000 Xxxxxxxxxx Xxxxxx, Xxxxx 000, Xxxxxx, Xxxxxxxxxxxxx 00000, doing business under the name “Silicon Valley East”.
WHEREAS, pursuant to that certain Guarantee dated as of June 28, 2001 (the “Guarantee”), the Guarantor has guaranteed the full payment
and performance of all obligations of INT’X.xxx, Inc., International Language Engineering Corporation, Harvard Translations, Inc., Lionbridge Technologies California, Inc. and Data Dimensions, Inc. (collectively, the
“Borrowers”) to the Bank, including the obligations of the Borrowers under that certain Loan and Security Agreement, dated as of June 28, 2001, between the Borrowers and the Bank, as heretofore amended (as so amended, the
“Loan Agreement”);
WHEREAS, the parties to the Loan Agreement propose to amend its terms and provisions
pursuant to a Loan Document Modification Agreement (No. 2) to be dated of even date herewith (“Modification No. 2”) between the Borrowers and the Bank;
WHEREAS, it is a condition precedent to the effectiveness of Modification No. 2 that the Guarantor execute and deliver this Agreement;
WHEREAS, the Guarantor is the ultimate corporate parent of each of the Borrowers and will benefit directly and indirectly from Modification No. 2 and
the advances and other extensions of credit available to the Borrowers under the Loan Agreement as amended thereby;
NOW,
THEREFORE, in consideration of the premises and to induce the Bank to enter into Modification No. 2, the Guarantor hereby agrees with the Bank as follows:
1. Description of Change in Terms.
Effective as of the date first set forth above, the
Guarantee is hereby modified in the following respects:
The first preamble to the Guarantee is amended and restated in its entirety to read as follows:
“WHEREAS, pursuant to the Loan and Security Agreement dated as of June 28, 2001 among INT’X.xxx, Inc., International
Language Engineering Corporation, Harvard Translations, Inc. and Lionbridge Technologies California, Inc. (collectively, the “Original Borrowers”) and the Bank, as amended by that certain Loan Document Modification Agreement (No. 1)
dated as of April 29, 2002 among the Original Borrowers, Data Dimensions, Inc. (together “the Borrowers”) and the Bank (as amended and hereafter in effect, the “Loan Agreement”), the Bank has agreed, subject to the
terms and conditions thereof, to make credit extensions to the Borrowers;”
Section 13(b) of the Guarantee is amended and restated in its entirety
to read as follows:
“Tangible Net Worth. The Guarantor will not permit its Tangible Net Worth at the end of the
following calendar months to be less than the amount set forth below opposite such calendar month, plus (i) 80% of all proceeds in excess of $10,000,000 resulting from the issuance and sale of common or preferred stock or subordinated debt of
the
Guarantor during the period commencing March [1], 2002 and ending April 30, 2002, plus (ii) 80% of all proceeds resulting from the issuance and sale of common or preferred stock or subordinated
debt of the Guarantor on or after May 1, 2002.
| Calendar Months Ending |
Minimum Tangible Net Worth | |
| March 1, 2002—March 31, 2002 |
$2,500,000 | |
| April 1, 2002—June 30, 2002 |
$2,000,000 | |
| July 1, 2002—September 30, 2002 |
$2,000,000 | |
| October 1, 2002—December 31, 2002 |
$2,500,000 | |
| January 31, 2003 and thereafter |
$3,000,000” |
Continuing Validity.
Upon the effectiveness hereof, each reference in the Loan Documents to “the Parent Guarantee” or the “Guarantee”, and each use of the word “thereunder”,
“thereof”, “therein”, or words of like import referencing the Guarantee shall (except with reference to the Guarantee by the Guarantor of the obligations of the Foreign Borrowers, as defined in the Loan Agreement) mean and be a
reference to the Guarantee, as amended hereby. Except as specifically set forth above, the Guarantee shall remain in full force and effect and is hereby ratified and confirmed. The Guarantor represents and warrants that (i) no Default (as defined in
the Loan Agreement), other than the failure to comply with the tangible net worth requirement set forth in Section 13(b) of the Guarantee for the months ended November 30 and December 31, 2001, and January 31, February 28 and March 31, 2002, has
occurred and is continuing on the date hereof, and (ii) the representations and warranties of the Guarantor set forth in the Guarantee are true and correct as of the date hereof.
Miscellaneous.
This Agreement may be signed in one or more counterparts each of which taken together shall constitute
one and the same document.
WAIVER OF JURY TRIAL. THE GUARANTOR AND THE BANK EACH HEREBY EXPRESSLY WAIVES ANY RIGHT IT MAY
NOW OR HEREAFTER HAVE TO A JURY TRIAL IN ANY SUIT, ACTION, PROCEEDING OR COUNTERCLAIM WHICH ARISES OUT OF, BASED UPON OR BY REASON OF THIS AGREEMENT. THE PROVISIONS OF THIS PARAGRAPH HAVE BEEN FULLY DISCUSSED BY THE BANK AND THE GUARANTOR, AND SHALL
BE SUBJECT TO NO EXCEPTIONS.
GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS
OF THE COMMONWEALTH OF MASSACHUSETTS, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS.
CONSENT TO JURISDICTION. THE
GUARANTOR ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY AND UNCONDITIONALLY, THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE COMMONWEALTH OF MASSACHUSETTS IN ANY ACTION, SUIT OR
PROCEEDING OF ANY KIND AGAINST IT WHICH ARISES OUT OF OR BY REASON OF THIS AGREEMENT; PROVIDED, HOWEVER, THAT IF FOR ANY REASON LENDER CANNOT AVAIL ITSELF OF THE COURTS OF THE COMMONWEALTH OF MASSACHUSETTS, THEN VENUE SHALL LIE IN SANTA XXXXX
COUNTY, CALIFORNIA.
The Guarantor agrees to promptly pay on demand all costs and expenses of the Bank in connection with the preparation, reproduction,
execution and delivery of this Modification No. 1, including the reasonable fees and out-of-pocket expenses of Xxxxxxxx & Worcester, special counsel for the Bank with respect thereto.
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IN WITNESS WHEREOF, the Bank and the Guarantor have caused this Agreement to be signed under seal by their respective duly authorized
officers as of the date set forth above.
| LIONBRIDGE TECHNOLOGIES, INC. | ||
| By: |
| |
| Name: Xxxx X. Xxxxx | ||
| Title: President and Chief Executive Officer | ||
| SILICON VALLEY EAST, a Division of Silicon Valley Bank | ||
| By: |
| |
| Name: Xxxx X. Xxxxxxx, Xx. | ||
| Title: Senior Relationship Manager | ||
| SILICON VALLEY BANK | ||
| By: |
| |
| Name: | ||
| Title: | ||
| (signed in Santa Clara, CA) |
CONSENT
The undersigned, as Borrowers under that certain Loan and Security Agreement dated as of June 28, 2001 (the “Loan Agreement”) with
Silicon Valley Bank (the “Bank”), hereby ratifies and confirms the Loan Agreement in all respects, which shall continue to be in full force and effect except that, upon the effectiveness of, and on and after the effective date of,
the Guarantee Modification (No. 1) (the “Modification”), each reference in the Loan Agreement and in each other Loan Document (as defined in Loan Agreement) to which the undersigned is a party, to “the Guarantee” or
“the Parent Guarantee” “thereunder”, “thereof”, “therein”, or words of like import referring to the Guarantee (except with reference to the Guarantee by the Guarantor of the obligations of the Foreign
Borrowers, as defined in the Loan Agreement), shall mean and be a reference to the Guarantee, as amended by the Modification.
Date: April 29, 2002
| INT’X.xxx, Inc. | ||
| By: |
| |
| Xxxx X. Xxxxx Chief Executive Officer | ||
| INTERNATIONAL LANGUAGE ENGINEERING CORPORATION | ||
| By |
| |
| Xxxx X. Xxxxx | ||
| Chief Executive Officer | ||
| HARVARD TRANSLATIONS, INC. | ||
| By |
| |
| Xxxx X. Xxxxx | ||
| President | ||
| LIONBRIDGE TECHNOLOGIES CALIFORNIA, INC. | ||
| By |
| |
| Xxxx X. Xxxxx | ||
| Chief Executive Officer | ||
| DATA DIMENSIONS, INC. | ||
| By: |
| |
| Name: Xxxx X. Xxxxx | ||
| Title: Chief Executive Officer |
