E XHIBIT 10.1
F IRST A MENDMENT TO A MENDED AND R ESTATED C REDIT A GREEMENT
AND W AIVER
T HIS F IRST A MENDMENT TO A
MENDED AND R ESTATED C REDIT A GREEMENT AND W AIVER (this
“Amendment” ) is entered into as of
August 5, 2008, between N ATUS M EDICAL I NCORPORATED , a Delaware corporation (
“Borrower” ), and W ELLS F ARGO B ANK ,
N ATIONAL A SSOCIATION ( “Bank” ).
R ECITALS
W HEREAS Borrower is currently indebted to Bank pursuant
to the terms and conditions of the Amended and Restated Credit
Agreement, dated as of November 28, 2007 (as amended, modified
or supplemented prior to the date hereof, the “Credit
Agreement” ), between Borrower and Bank;
W HEREAS Bank
and Borrower have agreed to certain changes in the terms and
conditions set forth in the Credit Agreement and have agreed to
amend the Credit Agreement to reflect such changes;
W HEREAS Borrower has informed Bank that it has, in
violation of the aggregate $10,000,000 limitation set forth in
clause (e) of the definition of “Permitted
Investments,” invested approximately $16,200,000 in
Subsidiaries formed or acquired after the Closing Date and
acquisitions of assets of other Persons constituting business units
of such Person (the “ Investment Default
”);
W HEREAS Borrower has requested that Bank waive the
Investment Default;
W HEREAS Borrower has informed Bank that is has acquired
all of the equity interests in Sonamed (as such term is defined in
the Credit Agreement as amended by this Amendment) and, Sonamed did
not execute a Guaranty or security agreement within the required
timeframes set forth in Section 6.12 (the “ Sonamed
Default ”); and
W HEREAS Borrower has requested that Bank waive the
Sonamed Default;
N OW ,
THEREFORE , for valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Bank has agreed to
provide a waiver for the Investment Default and a waiver for the
Sonamed Default subject to the terms and conditions provided herein
and Bank and Borrower hereby agree that the Credit Agreement shall
be amended as follows; provided that nothing contained
herein shall terminate any security interests, guaranties,
subordinations or other documents in favor of Bank, all of which
shall remain in full force and effect unless expressly amended
hereby:
Section 1. Definitions .
Each capitalized term used but not otherwise defined herein has the
meaning assigned to it in the Credit Agreement.
Section 2. Amendments to
Credit Agreement . Subject to Section 4 hereof, the Credit
Agreement is hereby amended as follows:
(a) The following definitions in
Section 1.1 of the Credit Agreement are hereby amended and
restated in their entirety to read as follows:
“ Applicable Rate
” means, from time to time, with respect to any Base Rate
Loan, or LIBOR Loan, or with respect to the Unused Commitment Fees
payable pursuant to Section 2.7(a), as the case may be, the
applicable rate per annum set forth below (expressed in basis
points) under the caption “LIBOR Spread,” “Base
Rate Spread” or “Unused Commitment Fee Rate,” as
the case may be, based upon, subject to Section 2.6(d), the
Leverage Ratio as set forth in the most recent Compliance
Certificate received by Bank pursuant to Section 5.1(b)(vii)
or Section 6.3(d), as applicable:
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Leverage Ratio
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LIBOR
Spread
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Base Rate
Spread
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Unused
Commitment
Fee Rate
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1
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Greater than 1.00
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200.00
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0.00
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30.00
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2
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Less than 1.00 but greater than 0.50
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175.00
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0.00
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20.00
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3
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Less than 0.50
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150.00
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0.00
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12.50
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“ Interest Payment Date
” means: (a) with respect to (i) a LIBOR Loan, the
last day of each Interest Period applicable thereto;
provided that, if any such Interest Period exceeds three
months, the date that falls three months after the beginning of
such Interest Period shall also be an Interest Payment Date; and
(ii) a Base Rate Loan, the last Business Day of each calendar
month; and (b) in the case of Revolving Credit Loans, the
Revolving Credit Maturity Date.
“ Interest Period
” means, as to each LIBOR Loan, the period commencing on the
date such LIBOR Loan is disbursed or converted to or continued as a
LIBOR Loan and ending on the date one, two, three or six months
thereafter, as selected by Borrower in its related Loan Notice;
provided that: (a) any Interest Period that would
otherwise end on a day that is not a Business Day shall be extended
to the next succeeding Business Day unless such Business Day falls
in another calendar month, in which case such Interest Period shall
end on the next preceding Business Day; (b) any Interest
Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall end on the
last Business Day of the calendar month at the end of such Interest
Period; and (c) no Interest Period for any Revolving Credit
Loan shall extend beyond the Revolving Credit Maturity
Date.
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“ Loan ” means
any Revolving Credit Loan.
“ Loan Documents
” means this Agreement, the Revolving Line of Credit Note,
the Security Agreement, the Guaranties, and each other contract,
instrument and document required by or delivered to Bank in
connection with this Agreement.
“ Material Adverse
Effect ” means a material adverse effect on (i) the
business operations or financial condition of Borrower and its
Subsidiaries taken as a whole, (ii) the ability of Borrower to
repay all debt, principal, interest, expenses and other amounts
owed to Bank by Borrower pursuant to this Agreement, the Revolving
Line of Credit Note and the other Loan Documents, or to otherwise
perform its material obligations under the Loan Documents, or
(iii) Borrower’s interest in, or the value, perfection
or priority of Bank’s security interest or lien in, the
collateral described in Section 2.10 hereof.
“ Note ” means
the Amended and Restated Revolving Line of Credit Note.
“ Permitted Investments
” means:
(a) Investments by Borrower existing
as of the Closing Date and listed on Schedule 1.1-B
;
(b) Investments by Borrower in
(i) marketable direct obligations issued or unconditionally
guaranteed by the United States or any agency or any state thereof
maturing within one year from the date of acquisition thereof,
(ii) commercial paper maturing no more than one year from the
date of creation thereof and currently having rating of at least
A-2 or P-2 from either Standard & Poor’s Corporation
or Moody’s Investors Service, (iii) Bank’s
certificates of deposit maturing no more than one year from the
date of investment therein, (iv) Bank’s money market
accounts, and (v) in conformance with Borrower’s
“Investment Policy,” as in effect on the Closing Date
(or as amended from time to time, subject to the approval of Bank),
a copy of which has previously been provided to Bank;
(c) Investments by Borrower
consisting of the endorsement of negotiable instruments for deposit
or collection or similar transactions in the ordinary course of
business of Borrower;
(d) Investments by Borrower
consisting of deposit accounts in which Bank has a first priority
perfected security interest;
(e) Investments, in the aggregate
not to exceed $10,000,000.00, by Borrower (i) in Subsidiaries
formed or acquired after the Amendment Closing Date, so long as
Borrower has 100% control of such Subsidiary immediately following
the effectiveness of such acquisition, and/or
(ii) constituting the purchase or other acquisition (in one
transaction or a series of transactions) of assets of another
Person that constitute a business unit;
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(f) Investments by Borrower not to
exceed at any time $250,000.00 in the aggregate consisting of
(i) travel advances and employee relocation loans and other
employee loans and advances in the ordinary course of business, and
(ii) loans to employees, officers or directors relating to the
purchase of equity securities of Borrower pursuant to employee
stock purchase plans or agreements approved by Borrower’s
board of directors;
(g) Investments (including debt
obligations) by Borrower not to exceed $50,000.00 in the aggregate
outstanding at any time received in connection with the bankruptcy
or reorganization of customers or suppliers and in settlement of
delinquent obligations of, and other disputes with, customers or
supplie