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Exhibit
10.2
Silicon Valley Bank
Amendment
to
Receivables Purchase
Agreement
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| Sellers: |
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ZTI
Merger Subsidiary III, Inc. |
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(formerly known as Zhone Technologies, Inc.)
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Zhone
Technologies, Inc. |
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(formerly known as Tellium, Inc.)
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| Address: |
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7001
Oakport St. |
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Oakland, California 94621 |
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| Effective Date: |
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as of
February 20, 2008 |
THIS AMENDMENT TO
RECEIVABLES PURCHASE AGREEMENT , with an effective date of
February 20, 2008, is entered into between Silicon Valley Bank
(“Silicon” or “Buyer”) and the sellers
named above (jointly and severally, “Seller”),
effective as of the first date written above.
The Parties agree to amend
the Non-Recourse Receivables Purchase Agreement between them, dated
as of March 15, 2005, as amended from time to time (the
“Purchase 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 Purchase
Agreement.)
1. Extension of Term; New
Maximum Purchase Amount. The portion of Section 2.1 of the
Purchase Agreement, which currently reads as follows:
“In any event, Buyer
will not (i) purchase any Receivables in excess of an
aggregate outstanding amount exceeding the “Receivables
Purchase Sublimit” (as defined in the Loan Agreement), or
(ii) purchase any Receivables under this Agreement after
February 20, 2008.”
hereby is amended and restated in its
entirety to read as follows
“In any event, Buyer
will not (i) purchase any Receivables in excess of an
aggregate outstanding amount exceeding $10,000,000 (the
“Maximum Purchase Amount”), or (ii) purchase any
Receivables under this Agreement after March 4,
2009.”
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2. Modification of
Section 2.2 of Purchase Agreement. Section 2.2 of the
Purchase Agreement, which currently reads as follows:
“ 2.2 Payment of
Purchase Price. On the Purchase Date, the Purchase Price, less
the Administrative Fee, shall be paid by Buyer to
Seller.”
hereby is amended and restated in its
entirety to read as follows
“ 2.2 Purchase Price
and Related Matters. With respect to each Purchase:
(a) Payment of Purchase
Price. On the Purchase Date, the Purchase Price, less the
Administrative Fee, shall be paid by Buyer to Seller.
(b) Late Payment
Settlement Fee . If, for any reason, Payment in Full does not
occur on or before the Due Date, then, upon the first to occur of
Payment in Full, 60 days after the Due Date or the filing of a
bankruptcy proceeding by or against the applicable Account Debtor
that failed to pay in full by the Due Date, and in addition to any
other obligations of Seller hereunder, Seller shall pay to Buyer an
amount which is equal to (i) the product of the Discount Rate
and the average daily balance of the Total Purchased Receivables
Amount outstanding during the period from the Due Date until the
first to occur of Payment in Full, 60 days after the Due Date or
the filing of a bankruptcy proceeding by or against the applicable
Account Debtor that failed to pay in full by the Due Date (the
“Late Payment Settlement Period”) multiplied by
(ii) a fraction the numerator of which is the number of days
in the Late Payment Settlement Period and the denominator of which
is 360 (“Late Payment Settlement
Fee”).”
3. Modification of
Definition of Due Date. The definition of “Due
Date” set forth in Section 1.6 of the Purchase
Agreement, which currently reads as follows:
“ 1.6 “Due
Date” means for any Purchase the “Due Date”
set forth in the Schedule for such Purchase.”
hereby is amended and restated in its
entirety to read as follows
“ 1.6 “Due
Date” means for any Purchase the “Due Date”
set forth in the Schedule for such Purchase; provided, however,
that in no event shall the Due Date be earlier than 30 days after
the Purchase Date.”
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4. Modification of Form of
Schedule on Exhibit A to Purchase Agreement. The form of
Schedule set forth on Exhibit A to the Purchase Agreement hereby is
amended and restated in its entirety to read as set forth in
Exhibit A to this Amendment, and references in the Purchase
Agreement to “Exhibit A” or the Schedule in the form
set forth on Exhibit A to the Purchase Agreement shall instead mean
and refer to Exhibit A hereto and the Schedule in the form set
forth on Exhibit A hereto.
5. Limitation of
Amendments.
A. The amendments set forth
herein are effective for the purposes set forth herein and shall be
limited precisely as written and shall not be deemed to (a) be
a consent to any amendment, waiver or modification of any other
term or condition of any document or agreement relating to the
Purchase Agreement (individually a “Loan Document” and
collectively the “Loan Documents”), or
(b) otherwise prejudice any right or remedy which Silicon may
now have or may have in the future under or in connection with any
Loan Document.
B. This Amendment shall be
construed in connection with and as part of Loan Documents and all
terms, conditions, representations, warranties, covenants and
agreements set forth in the Loan Documents, except as herein
amended, are hereby ratified and confirmed and shall remain in full
force and effect.
6. Representations and
Warranties. To induce Silicon to enter into this Amendment,
Seller hereby represents and warrants to Silicon as
follows:
A. Immediately after giving
effect to this Amendment (a) the representations and
warranties contained in the Loan Documents are true, accurate and
complete in all material respects as of the date hereof (except to
the extent such representations and warranties relate to an earlier
date, in which case they are true and correct as of such date), and
(b) no default or Event of Default has occurred and is
continuing;
B. Seller has the power and
authority to execute and deliver this Amendment and to perform its
obligations under the Purchase Agreement, as amended by this
Amendment;
C. The organizational
documents of Seller delivered to Silicon in connection with the
original execution of the Purchase Agreement remain true, accurate
and complete and have not been amended, supplemented or restated
and are and continue to be in full force and effect;
D. The execution and delivery
by Seller of this Amendment and the performance by Seller of its
obligations under the Purchase Agreement, as amended by this
Amendment, have been duly authorized;
E. The execution and delivery
by Seller of this Amendment and the performance by Seller of its
obligations under the Purchase Agreement, as amended by this
Amendment, do not and will
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