EXHIBIT 10.37

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This SECOND AMENDMENT TO CREDIT AGREEMENT, effective December 19th, 2002
(“Second Amendment”), amends that certain Credit Agreement, dated April 16th,
2001, by and between Neoforma, Inc., fdba Neoforma.com, Inc., a Delaware
corporation (“Neoforma”), and VHA Inc., a Delaware corporation (“VHA”), as
amended to date (“Current Agreement”). The capitalized terms not otherwise
defined herein have the respective meanings given to them in the Current
Agreement.

 

RECITALS

 

WHEREAS, Neoforma and VHA wish to extend the maturity date of the Current
Agreement from May 31, 2003 to December 31, 2004;

 

WHEREAS, Neoforma and VHA wish to change the interest rate of the Current
Agreement from 10% to a floating rate of the prime rate plus 2.75%;

 

WHEREAS, Neoforma has agreed to reduce the current amount of principal
outstanding under the Current Agreement by $5 million concurrent with the
execution of this Second Amendment; and

 

WHEREAS, Section 8.8 of the Current Agreement states, in part, the Current
Agreement may be modified or amended only by a writing signed by both parties
hereto.

 

NOW, THEREFORE, in consideration of the mutual promises made herein and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree to the following:

 

  1. Amendment of Section 1.9.    Section 1.9 of the Current Agreement provides:

 

1.9    Maturity Date.    The term “Maturity Date” means that date which is the
earlier to occur of: (a) May 31, 2003; (b) the date the Commitment (as defined
in Section 2.1) is terminated by Lender pursuant to Section 7.2(a); (c) the date
on which Lender declares the entire unpaid principal amount and all accrued
interest on any outstanding Note immediately due and payable in full under
Section 7.2(b), or such amount otherwise becomes immediately due and payable in
full; (d) the date on which Lender and Borrower mutually agree in writing to
terminate the Commitment or (e) the date on which a Change of Control occurs.

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Section 1.9 is hereby revised to change the date in subparagraph (a) to December
31, 2004, so that Section 1.9 is amended to state:

 

1.9    Maturity Date.    The term “Maturity Date” means that date which is the
earlier to occur of: (a) December 31, 2004; (b) the date the Commitment (as
defined in Section 2.1) is terminated by Lender pursuant to Section 7.2(a); (c)
the date on which Lender declares the entire unpaid principal amount and all
accrued interest on any outstanding Note immediately due and payable in full
under Section 7.2(b), or such amount otherwise becomes immediately due and
payable in full; (d) the date on which Lender and Borrower mutually agree in
writing to terminate the Commitment or (e) the date on which a Change of Control
occurs.

 

  2. Amendment of Section 2.3.     Section 2.3 of the Current Agreement
provides:

 

2.3    Note.    Borrower’s indebtedness to Lender under each Loan advanced by
Lender under this Agreement will be evidenced by a promissory note of Borrower
in the form attached hereto as Exhibit A (the “Note”). The Note will provide
that interest on unpaid principal will accrue at a rate equal to ten percent
(10%) per annum (calculated on the basis of a 360-day year).

 

Section 2.3 is hereby revised to change the interest rate from 10% to the prime
rate plus 2.75%, so that Section 2.3 is amended to state:

 

2.3    Note.    Borrower’s indebtedness to Lender under each Loan currently
outstanding and under each Loan advanced by Lender under this Agreement
subsequent to the effective date of the Second Amendment will be evidenced by a
promissory note of Borrower in the form attached hereto as Exhibit A (the
“Note”). The Note will provide that interest on unpaid principal will accrue at
a rate equal to a fluctuating interest rate per annum in effect from time to
time, which rate per annum shall at all times be equal to the rate of interest
announced publicly by Citibank, N.A. in New York, New York, from time to time,
as Citibank’s prime rate, plus 2.75%; (calculated on the basis of a 360-day
year).

 

  3. Reduction of Outstanding Principal.    Concurrent with the execution of
this Second Amendment, Borrower shall pay to Lender $5 million by wire transfer,
which payment, notwithstanding Section 2.5 of the Current Agreement, shall
reflect in its entirety a reduction of the outstanding principal owed to Lender
by Borrower. This payment shall not reduce the Maximum Loan Amount available to
Neoforma under the Current Agreement.

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  4. All Other Terms Unchanged.    Except as expressly modified by this Second
Amendment, all terms of the Current Agreement shall remain in full force and
effect.

 

  5. Governing Law.    This Second Amendment shall be governed by and construed
under the internal laws of the State of California and shall be binding upon the
parties hereto in the United States and worldwide. The federal and state courts
of California shall have exclusive jurisdiction to adjudicate any dispute
arising out of this Second Amendment.

 

  6. Counterparts.    This Second Amendment may be executed in two or more
counterparts, each of which will be deemed an original, but all of which
together will constitute one and the same instrument.

 

IN WITNESS WHEREOF, this Second Amendment has been executed, effective as of the
date first written above.

 

NEOFORMA, INC.

     

VHA INC.

By:

 

    /s/    ANDREW GUGENHIME

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By:

 

    /s/    CURT NONOMAQUE

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Title:

 

    CFO

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Title:

 

 

 

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[Signature Page to Second Amendment to Credit Agreement]