Exhibit 10.23
Silicon Valley
Bank
Limited Waiver and
Amendment to Loan
Documents
|
|
|
|
|
Borrower:
|
|
Applied Precision Holdings, LLC
|
|
|
|
Applied
Precision, LLC
|
|
|
|
|
Date:
|
|
April 26, 2006
|
THIS LIMITED WAIVER AND AMENDMENT
TO LOAN DOCUMENTS is
entered into between Silicon Valley Bank (“Silicon”)
and the borrower named above (“Borrower”).
Reference is hereby made to that
certain Amended and Restated Loan and Security Agreement between
Borrower and Silicon and dated August 17, 2005 (as amended
from time to time, the “Loan Agreement”). Reference is
also hereby made to that certain Amended and Restated Loan and
Security Agreement (Exim Program) between Borrower and Silicon and
dated August 17, 2005 (as amended from time to time, the
“Exim Loan Agreement”). The Parties agree to amend each
of the Loan Agreement and Exim Loan Agreement as follows, effective
as of the date hereof. (Capitalized terms used but not defined in
this Amendment shall have the meanings set forth in the Loan
Agreement or Exim Loan Agreement, as applicable.)
1. Waiver
of Fix Charge Coverage Ratio Financial Covenant Default
. Borrower has failed to comply with
the Fixed Charge Coverage Ratio Financial Covenant for the
compliance period ending January 31, 2006 (the “January
FCC Default”) and may possibly fail to comply with such
Financial Covenant for the compliance period ending
February 28, 2006 (the “Potential February FCC
Default”) (the January FCC Default and Potential February FCC
Default are hereinafter referred to collectively as the
“Covenant Defaults”). Silicon and Borrower agree that
the Borrower’s Covenant Defaults are hereby waived. It is
understood by the parties hereto, however, that such waiver does
not constitute a waiver of any other provision or term of the Loan
Agreement or Exim Loan Agreement or any related document, nor an
agreement to waive in the future this covenant or any other
provision or term of the Loan Agreement or Exim Loan Agreement or
any related document.
2.
Modified Section Regarding Letters of Credit.
Section 1.6 of the Loan
Agreement is hereby amended to read as follows:
1.6 Letters of
Credit. At the
request of Borrower, Silicon may, in its good faith business
judgment, issue or arrange for the issuance of letters of credit
for the account of Borrower, in each case in form and substance
satisfactory to Silicon in its sole discretion (collectively,
“Letters of Credit”). The aggregate face amount of all
Letters of Credit from time to time outstanding shall not exceed
the amount shown on the Schedule (the “Letter of Credit
Amount”). Borrower shall pay all bank charges (including
charges of Silicon) for the issuance of Letters of Credit, together
with such additional fee as Silicon’s letter of credit
department shall charge in connection with the issuance of the
Letters of Credit. Any payment by Silicon under or in connection
with a Letter of Credit shall constitute a Loan hereunder on the
date such payment is made. Each Letter of Credit shall have an
expiry date no later than thirty days prior to the Maturity Date.
Borrower hereby agrees to indemnify and hold Silicon harmless from
any loss, cost, expense, or liability, including payments made by
Silicon, expenses, and reasonable attorneys’ fees incurred by
Silicon arising out of or in connection with any Letters of Credit.
Borrower agrees to be bound by the regulations and interpretations
of the issuer of any Letters of Credit guarantied by Silicon and
opened for Borrower’s account or by Silicon’s
interpretations of any Letter of Credit issued by Silicon for
Borrower’s account, and Borrower understands and agrees that
Silicon shall not be liable for any error, negligence, or mistake,
whether of omission or commission, in following Borrower’s
instructions or those contained in the Letters of Credit or any
modifications, amendments, or supplements thereto. Borrower
understands that Letters of Credit may require Silicon to indemnify
the issuing bank for certain costs or liabilities arising out of
claims by Borrower against such issuing bank. Borrower hereby
agrees to indemnify and hold Silicon harmless with respect to any
loss, cost, expense, or liability incurred by Silicon under any
Letter of Credit as a result of Silicon’s indemnification of
any such issuing bank. The provisions of this Loan Agreement, as it
pertains to Letters of Credit, and any other Loan Documents
relating to Letters of Credit are cumulative.
3.
Modified Credit Limit. That portion of the Credit Limit entitled
“Cash Management Services and Reserves” as set forth in
Section 1 of the Amended and Restated Schedule to Loan and
Security Agreement is hereby deleted and replaced with the
following:
|
|
|
|
|
Letter of Credit Amount
|
|
|
|
|
|
|
(Section 1.6):
|
|
$250,000 ; provided that the total of
|
|
|
|
|
|
|
|
all outstanding
Letters of Credit (including drawn but unreimbursed Letters of
Credit), and the FX Reserve, and all amounts for Cash Management
Services utilized under the Cash Management Services Amount may not
exceed $250,000.
|
|
|
|
|
Cash Management
|
|
|
|
Amount :
|
|
$250,000 ; provided that the total of all outstanding
Letters of Credit (including drawn but unreimbursed Letters of
Credit), and the FX Reserve, and all amounts for Cash Management
Services utilized under the Cash Management Services Amount may not
exceed $250,000.
|
|
|
|
|
Cash Management
|
|
|
|
Services :
|
|
Borrower may
use up to the Cash Management Amount above, for Silicon’s
Cash Management Services (as defined below), including, merchant
services, business credit card, ACH and other services identified
in the cash management services agreement related to such service
(the “Cash Management Services”). Silicon may charge to
Borrower’s Loan account, any amounts that may become due or
owing to Silicon in connection with the Cash Management Services.
Borrower agrees to execute and deliver to Silicon all standard form
applications and agreements of Silicon in connection with the Cash
Management Services, and, without limiting any of the terms of such
applications and agreements, Borrower will pay all standard fees
and charges of Silicon in connection with the Cash Management
Services. The Cash Management Services shall terminate on the
Maturity Date.
|
|
|
|
|
|
Foreign Exchange
|
|
|
|
Contract Amount :
|
|
$250,000 ; provided that the total of all outstanding
Letters of Credit
|
|
|
|
(including
drawn but unreimbursed Letters of Credit), and the FX Reserve, and
all amounts for Cash Management Services utilized under the Cash
Management Services Amount may not exceed $250,000.
|
|
|
|
|
FX Reserve :
|
|
Borrower may
enter into foreign exchange forward contracts with Silicon, on its
standard forms, under which Borrower commits to purchase from or
sell to Silicon a set amount of foreign currency more than one
business day after the contract date (the “FX Forward
Contracts”); provided that (1) at the time the FX Forward
Contract is entered into Borrower has Loans available to it under
the Foreign Exchange Contract Amount in an amount at least equal to
10% of the amount of the FX
|