SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT
Exhibit 10.1
SECOND AMENDMENT TO CREDIT AND SECURITY AGREEMENT
This Second Amendment to Credit and Security Agreement (“Second Amendment”) is entered into as
of June 5, 2008, by and among Synergetics, Inc., a Missouri corporation, Synergetics USA, Inc., a
Delaware corporation, Synergetics Germany, GMBH, a German limited liability company, Synergetics
Italia, SRL, an Italian limited liability company, and Synergetics France, SARL, a French company
(“Synergetics France”) (individually, a “Borrower” and, collectively, the “Borrowers”), and Regions
Bank (“Lender”).
RECITALS
A. Borrowers and Lender entered into a certain Credit and Security Agreement dated as of June
20, 2007, as heretofore amended by First Amendment dated as of January 31, 2008 (“First Amendment”)
(as so amended, the “Existing Credit Agreement”).
B. Synergetics France, a newly formed Affiliate, desires to join the Existing Credit
Agreement, as herein amended, as a Borrower.
C. Borrowers and Lender desire to amend the Existing Credit Agreement as hereinafter provided.
D. The Existing Credit Agreement and this Second Amendment constitute the “Credit Agreement”
from and after the effectiveness of this Second Amendment.
NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, Borrowers, and Lender
agree as follows:
1. Defined Terms. Each term used herein without definition or a modification to
definition shall have the same meaning as set forth in the Existing Credit Agreement.
2. Credit Agreement Amendments. The Existing Credit Agreement is hereby amended as
follows, effective upon fulfillment of conditions set forth in Section 4 of this Second Amendment:
A. Section 1.2, entitled “Primary Definitions,” is hereby amended by modifying the
following definitions to read as follows in their entirety:
(1) “Revolving Loan Commitment” means $2,500,000, unless such amount is
reduced pursuant to Section 2.6(b) hereof, in which event it means
the amount to which said amount is reduced.
(2) “Revolving Note” means the Second Amended and Restated Foreign Accounts
Revolving Note, on the terms attached to the Second Amendment as
Exhibit A in maximum principal amount of $2,500,000 (the “Second
Amended Revolving Note”).
(3) “Termination Date” means June 4, 2009.
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B. The Borrowing Base Certificate attached to the First Amendment is hereby deleted and
is superseded by the Borrowing Base Certificate attached to this Second Amendment as
Exhibit B.
C. Synergetics France hereby joins the Credit Agreement as a Borrower and grants Lender
a security interest in its assets to the extent set forth in Article III of the
Credit Agreement.
3. Representations and Warranties. The Borrowers jointly and severally hereby
represent and warrant to the Lender as follows:
(a) This Second Amendment and the Second Amended Revolving Note have been duly and
validly executed by authorized officers of the Borrowers and constitute the legal, valid and
binding obligation of the Borrowers, enforceable against the Borrowers in accordance with
their terms. The Existing Credit Agreement, as amended by this Second Amendment, remains in
full force and effect and remains the valid and binding obligation of the Borrowers,
enforceable against the Borrowers in accordance with its terms. The Borrowers hereby ratify
and confirm the Existing Credit Agreement, as amended by this Second Amendment.
(b) No Default or Event of Default has occurred or now exists under the Existing Credit
Agreement and no Default or Event of Default will occur as a result of the effectiveness of
this Second Amendment.
(c) The representations and warranties of the Borrower contained in the Existing Credit
Agreement, are true and correct in all material respects on and as of the date of this
Second Amendment.
4. Conditions to Effectiveness of Second Amendment. The effectiveness of this Second
Amendment and the agreements set forth herein are subject to fulfillment, as determined in the sole
judgment of Lender, of the following conditions:
(a) Borrowers shall have executed and delivered to Lender this Second Amendment and
the Amended Revolving Note;
(b) Lender shall have determined that no Default or Event of Default exists; and
(c) Borrowers shall have delivered such other documents and shall have taken such
other actions as Lender in its reasonable discretion may require.
5. Post-Effectiveness Covenant. Within thirty (30) days after the date of this Second
Amendment, Borrowers agree to cause Synergetics France to provide Lender such officer’s
certificate, resolutions authorizing the Credit Agreement and other documents regarding Synergetics
France as Lender may reasonably require.
6. Release. In consideration of the agreement of Lender to modify the terms of the
Existing Credit Agreement as set forth in this Second Amendment, Borrowers hereby release,
discharge and acquit forever Lender and any of its officers, directors, servants, agents,
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employees and attorneys, past and present, from any and all claims, demands and causes of
action, of whatever nature, whether in contract or tort, accrued or to accrue, contingent or
vested, known or unknown, arising out of or relating to the loans evidenced by the Existing Credit
Agreement, as hereby amended, or Lender’s administration of the same or any other actions taken
pursuant to the Existing Credit Agreement or under any other documents or instruments evidencing
loans made by Lender to Borrowers or the administration of same; provided, however, that the
foregoing release and the following indemnity relate only to actions or inactions of Lender through
the date hereof.
7. Payment of Costs/Expenses. Without limiting the generality of provisions in the
Existing Credit Agreement (as amended by this Second Amendment) relating to payment of Lender’s
costs and expenses, the Borrower will pay all reasonable out-of-pocket expenses, costs and charges
of Lender’s attorneys incurred in connection with the preparation and implementation of this Second
Amendment.
8. Other Documents/Provisions to Remain in Force. Except as expressly amended hereby,
the Existing Credit Agreement and all documents and instruments executed in connection therewith or
contemplated thereby and all indebtedness incurred pursuant thereto shall remain in full force and
effect and are in all respects hereby ratified and affirmed.
9. Successors and Assigns. Subject to any restriction on assignment set forth in the
Existing Credit Agreement, this Second Amendment shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns.
10. Counterparts. This Second Amendment may be executed in any number of
counterparts, each of which shall constitute one and the same Amendment.
11. Incorporation by Reference. The Existing Credit Agreement and all exhibits
thereto, and the exhibits to this Second Amendment are incorporated herein by this reference,
except to the extent replaced by Exhibits attached to this Second Amendment.
12. No Oral Loan Agreements. Pursuant to Mo. Rev. Stat. § 432.045 and § 432.047, the
parties agree to the quoted language below (all references to “you” are references to Borrower and
all references to “us” are references to Lender):
ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FOREBEAR FROM
ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE
NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS BASED, THAT IS IN
ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER) AND US (LENDER)
FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH
MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT
OF THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.
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[Remaining portion of page is intentionally blank. Signature page follows]
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IN WITNESS WHEREOF, Lender and Borrowers have caused this Second Amendment to be executed
effective as of the date first written above.
| BORROWERS: | ||||||
| SYNERGETICS, INC. | ||||||
| By: | /s/ Xxxxxx X. Xxxxx
|
|||||
| Title: Chief Financial Officer | ||||||
| and | ||||||
| SYNERGETICS, USA, INC. | ||||||
| By: | /s/ Xxxxxx X. Xxxxx
|
|||||
| Title: Chief Financial Officer | ||||||
| and | ||||||
| SYNERGETICS GERMANY, GMBH | ||||||
| By: | /s/ Xxxxxx X. Xxxxx
|
|||||
| Title: Director | ||||||
| and | ||||||
| SYNERGETICS ITALIA, SRL | ||||||
| By: | /s/ Xxxxxx X. Xxxxx
|
|||||
| Title: Director | ||||||
| and | ||||||
| SYNERGETICS FRANCE, SARL | ||||||
| By: | /s/ Xxxxxx X. Xxxxx
|
|||||
| Title: Director | ||||||
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| LENDER: | ||||||
| REGIONS BANK | ||||||
| By: | /s/ Xxxx X. Xxxxxxxxx
|
|||||
| Title: Senior Vice President | ||||||
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Exhibit A to Second Amendment to
Credit and Security Agreement
Credit and Security Agreement
SECOND AMENDED AND RESTATED
FOREIGN ACCOUNTS
REVOLVING NOTE
FOREIGN ACCOUNTS
REVOLVING NOTE
| $2,500,000 | St. Louis, Missouri June 5, 2008 |
FOR VALUE RECEIVED, the undersigned, SYNERGETICS, INC., a Missouri corporation
(“Synergetics”), SYNERGETICS USA, INC., a Delaware corporation (“Synergetics USA”), SYNERGETICS
GERMANY, GMBH; SYNERGETICS ITALIA, SRL, and SYNERGETICS FRANCE, SARL, a French company
(individually, a “Borrower” and together, the “Borrowers”), hereby jointly and severally promise to
pay on the Termination Date to the order of Regions Bank (the “Lender”) at its main office in St.
Louis, Missouri, or at any other place designated at any time by the holder hereof, in lawful money
of the United States of America and in immediately available funds, the principal sum of Two
Million Five Hundred Thousand and 00/100 ($2,500,000) or, if less, the aggregate unpaid
principal amount of all Advances made by the Lender to the Borrowers under the Credit Agreement
(defined below), together with interest on the principal amount hereunder remaining unpaid from
time to time, computed on the basis of the actual number of days elapsed and a 360-day year, from
the date hereof until this Note is fully paid at the rate from time to time in effect under the
Credit and Security Agreement dated June 20, 2007, as amended by First Amendment thereto dated as
of January 31, 2008, and as further amended by Second Amendment thereto (“Second Amendment”) of
even date herewith (as so amended, the “Credit Agreement”) by and between the Lender and the
Borrowers. The principal hereof and interest accruing thereon shall be due and payable as provided
in the Credit Agreement. This Note may be prepaid only in accordance with the Credit Agreement.
Capitalized terms utilized in this Note but not defined herein have the same meanings as set forth
in the Credit Agreement.
This Note is issued pursuant, and is subject, to the Credit Agreement, which provides, among
other things, for acceleration hereof. This Note is the Second Amended Revolving Note referred to
in the Second Amendment.
This Note, among other things, is secured pursuant to the Credit Agreement and the Security
Documents as therein defined, and may now or hereafter be secured by one or more other security
agreements, mortgages, deeds of trust, assignments or other instruments or agreements.
The Borrowers hereby agree to pay all costs of collection, including attorneys’ fees and legal
expenses in the event this Note is not paid when due, whether or not legal proceedings are
commenced.
Presentment or other demand for payment, notice of dishonor and protest are expressly waived.
This Note shall be governed by the internal substantive laws of the State of Missouri, without
regard for its conflicts-of-law principles.
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This Note is a replacement for, but not a novation or refinancing of, the Foreign Accounts
Revolving Note dated June 20, 2007, as heretofore amended by Amended and Restated Foreign Accounts
Revolving Note dated as of January 31, 2008, by Borrowers payable to the order of Lender. This
Note does not evidence or effect a release, or relinquishment of the priority, of the security
interests in any Collateral (as defined in the Credit Agreement).
ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS
OF THE LEGAL THEORY UPON WHICH IT IS BASED, THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO
PROTECT YOU (BORROWERS) AND US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS ARE CONTAINED IN THE CREDIT AGREEMENT AND THE LOAN DOCUMENTS REFERRED
TO THEREIN, WHICH ARE THE COMPLETE AND EXCLUSIVE STATEMENTS OF THE AGREEMENT BETWEEN US, EXCEPT AS
WE MAY LATER AGREE IN WRITING TO MODIFY IT.
[Remaining portion of page is intentionally blank. Signature page follows]
| BORROWERS: | ||||||
| SYNERGETICS, INC. | ||||||
| By: | ||||||
| Title: Chief Financial Officer | ||||||
| and | ||||||
| SYNERGETICS USA, INC. | ||||||
| By: | ||||||
| Title: Chief Financial Officer | ||||||
| and | ||||||
| SYNERGETICS GERMANY GMBH. | ||||||
| By: | ||||||
| Title: Director | ||||||
| and | ||||||
| SYNERGETICS ITALIA, SRL | ||||||
| By: | ||||||
| Title: Director | ||||||
| and | ||||||
| SYNERGETICS FRANCE, SARL | ||||||
| By: | ||||||
| Title: | ||||||
