EXHIBIT 10.2

 

[*****] = Certain information contained in this document, marked by brackets,
has been excluded from this exhibit because it is both (i) not material and (ii)
would be competitively harmful if publicly disclosed.

 

Amendment No. 5 TO CREDIT AND SECURITY AGREEMENT (REVOLVER)

THIS AMENDMENT NO. 5 TO CREDIT AND SECURITY AGREEMENT (this “Amendment”) is made
as of this 30th day of August, 2019, by and among MIDCAP FUNDING IV TRUST, a
Delaware statutory trust (as successor by assignment from MidCap Funding X
Trust, as successor by assignment from MidCap Funding IV Trust, as successor by
assignment from MidCap Financial Trust), individually as a Lender, and as Agent,
and the financial institutions or other entities from time to time parties
hereto, each as a Lender., the lenders (individually, each a “Lender” and
collectively, the “Lenders”) party to the Credit Agreement (as defined below),
ACCURAY INCORPORATED, a Delaware corporation (“Accuray” or “Borrower
Representative”), TOMOTHERAPY INCORPORATED, a Wisconsin corporation, and any
additional borrower that may hereafter be added to this Agreement (collectively,
“Other Borrowers” and, together with Borrower Representative, each individually
as a “Borrower”, and collectively as “Borrowers”).

RECITALS

A.Borrowers, Agent and the Lenders are party to that certain Credit and Security
Agreement dated as of June 14, 2017, as previously amended and modified (as
amended hereby, and as may be further amended, supplemented, restated or
otherwise modified from time to time, the “Credit Agreement”), pursuant to which
Lenders agreed to make available to Borrowers a revolving loan facility in the
maximum principal amount of $32,000,000 at any time outstanding.  Capitalized
terms used but not defined in this Amendment shall have the meanings that are
set forth in the Credit Agreement, as amended hereby.

B.Borrowers have requested certain amendments to the Credit Agreement all as set
forth herein.

C.The parties now agree to amend and modify the Credit Agreement all in
accordance with the terms and conditions set forth below.

NOW, THEREFORE, in consideration of the foregoing, the terms and conditions set
forth in this Amendment, and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Agent, Lenders and Borrowers
hereby agree as follows:

1.Specific Amendments to Credit Agreement.

(a)The definition of Excluded Property in Section 1.1 of the Credit Agreement is
hereby deleted in its entirety and restated to read as follows:

““Excluded Property” means (a) voting stock of each Excluded Subsidiary that is
a Foreign Subsidiary or FSHCO directly held by any Borrower in excess of 65%, to
the extent any material adverse tax consequence to a Borrower or any of its
Affiliates could reasonably be expected to result from pledging such excess
amount, as reasonably determined by the Borrower Representative in consultation
with Agent (provided that, for the avoidance of doubt, Borrowers shall pledge
such

 

--------------------------------------------------------------------------------

 

amount in excess of 65% of the voting stock of such Excluded Subsidiary, if any,
that could not reasonably be expected to result in a material adverse tax
consequence to a Borrower or any of its Affiliates); (b) any lease, license,
contract, permit, letter of credit, instrument, or agreement to which a Borrower
is a party or any of its rights or interests thereunder if and to the extent
that the grant of such security interest shall constitute or result in (i) the
abandonment, invalidation or unenforceability of any right, title or interest of
any Borrower therein or (ii) result in a breach or termination pursuant to the
terms of, or a default under, any such lease, license, contract, permit,
agreement or other property right (other than to the extent that any such term
would be rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409
of the UCC of any relevant jurisdiction or any other applicable law); provided,
however, that such security interest or lien (x) shall attach immediately at
such time as the condition causing such abandonment, invalidation or
unenforceability shall be remedied, (y) to the extent severable, shall attach
immediately to each term of such lease, license, contract, property rights or
agreement that does not result in any of the consequences specified in (i) or
(ii) above and (z) shall attach immediately to each such lease, license,
contract, property rights or agreement to which the Account Debtor or the
Borrower’s counterparty has consented to such attachment; (c) any asset,
including any asset that is the subject of any Permitted Debt contemplated by
subpart (c) of the definition thereof, the grant of a security interest in which
would result in (i) the abandonment, invalidation or unenforceability of any
right, title or interest of any Credit Party therein or (ii) result in a breach
or termination pursuant to the terms of, or a default under, any contract
relating to such asset (other than to the extent that any such term would be
rendered ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the
UCC of any relevant jurisdiction or any other applicable law); provided,
however, that such security interest or lien (x) shall attach immediately at
such time as the condition causing such abandonment, invalidation or
unenforceability shall be remedied, (y) to the extent severable, shall attach
immediately to each term of such asset that does not result in any of the
consequences specified in (i) or (ii) above and (z) shall attach immediately to
each such asset to which the Account Debtor or the Borrower’s counterparty has
consented to such attachment; (d) any real estate asset that (i) is a leasehold
interest, or (ii) is not Material Real Property; (e) any assets located outside
the United States (other than with respect to the equity interests of any direct
Foreign Subsidiary of a Borrower) that require action under the law of any
jurisdiction other than the United States to create or perfect a security
interest in such assets under such jurisdiction other than the United States,
including any Intellectual Property registered in any jurisdiction other than
the United States, if the creation of pledges of, or security interests in, any
such property or assets would reasonably be expected to result in material
adverse income tax consequences to Borrower Representative and its Subsidiaries,
as reasonably determined by Agent; (f) any motor vehicle, airplane or any other
asset subject to a certificate of title to the extent a Lien therein cannot be
perfected by the filing of a UCC financing statement; and (g) any
“intent-to-use” trademark or service mark application for which an amendment to
allege use or statement of use has not been filed under 15 U.S.C. § 1051(c) or
15 U.S.C. § 1051(d), respectively, or if filed, has not been deemed in
conformance with 15 U.S.C. § 1051(a) or examined and accepted, respectively by
the United States Patent and Trademark Office.”

 

--------------------------------------------------------------------------------

 

(b)Section 4.11(e) of the Credit Agreement is hereby amended by deleting it in
its entirety and restating it as follows:

“(e)Upon the request of Agent, Borrowers shall pledge, have pledged or cause or
have caused to be pledged to Agent pursuant to a pledge agreement in form and
substance satisfactory to Agent, 65% (or such greater percentage that could not
reasonably be expected to cause any material adverse tax consequence to a
Borrower or any of its Affiliates, as reasonably determined by the Borrower
Representative in consultation with Agent) of the outstanding shares of equity
interests or other equity interests of any Foreign Subsidiary owned directly by
any Borrower and, subject to the Excluded Perfection Assets, undated stock or
equivalent powers for such certificates, if any, executed in blank.”

(c)Section 6.2 of the Credit Agreement is hereby deleted in its entirety and
restated to read as follows:

“Section 6.2Fixed Charge Coverage Ratio.  Borrowers will not permit the Fixed
Charge Coverage Ratio for any Defined Period, as tested quarterly (as of the
last day of such fiscal quarter), beginning with the first full fiscal quarter
ending after the Closing Date, to be less than the applicable ratio set forth
below opposite the applicable fiscal quarter:

 

Fiscal Quarter Ended

Ratio

December 31, 2017

0.80 to 1.00

March 31, 2018

1.00 to 1.00

June 30, 2018

0.75 to 1.00

September 30, 2018

0.50 to 1.00

December 31, 2018

0.50 to 1.00

March 31, 2019

1.00 to 1.00

June 30, 2019

1.00 to 1.00

September 30, 2019

0.75 to 1.00

December 31, 2019

0.80 to 1.00

March 31, 2020

0.85 to 1.00

June 30, 2020 and each fiscal quarter thereafter

1.00 to 1.00

 

 

--------------------------------------------------------------------------------

 

(d)Section 6.3 of the Credit Agreement is hereby deleted in its entirety and
restated to read as follows:

“Section 6.3Minimum Net Revenue.  Borrowers shall not permit its consolidated
Net Revenue for any Defined Period, as tested quarterly (as of the last day of
such Defined Period), to be less than $390,000,000.”

(e)Section 6.4 of the Credit Agreement is hereby deleted in its entirety and
restated to read as follows:

“Section 6.4   Minimum Consolidated Cash Balance.  Borrowers and their
Subsidiaries shall maintain at all times, in Deposit Accounts and Securities
Accounts, unrestricted and unencumbered (other than Liens in favor of Agent and
the agent under the Affiliated Credit Agreement) cash-on-hand and Cash
Equivalents in an aggregate amount of no less than $20,000,000.”

(f)A new Section 6.5 is hereby inserted into the Credit Agreement, in proper
numerical order, to read as follows:

“Section 6.5   Minimum Consolidated Domestic Cash Balance.  Borrowers and shall
maintain at all times, in domestic Deposit Accounts subject to Deposit Account
Control Agreements, unrestricted and unencumbered (other than Liens in favor of
Agent and the agent under the Affiliated Credit Agreement) cash-on-hand in an
aggregate amount of no less than $10,000,000.”

(g)A new Section 6.6 is hereby inserted into the Credit Agreement, in proper
numerical order, to read as follows:

“Section 6.6Evidence of Compliance.  Borrowers shall furnish to Agent, together
with the financial reporting required of Borrowers in Section 4.1 hereof, a
Compliance Certificate as evidence of Borrowers’ compliance with the covenants
in this Article and evidence that no Event of Default specified in this Article
has occurred.  The Compliance Certificate shall include, without limitation, (a)
a statement and report, on a form approved by Agent, detailing Borrowers’
calculations, and (b) if requested by Agent, back-up documentation (including,
without limitation, invoices, receipts and other evidence of costs incurred
during such quarter as Agent shall reasonably require) evidencing the propriety
of the calculations.”

(h)Schedule 9.2 to the Credit Agreement is hereby deleted in its entirety and
restated with Schedule 9.2 attached hereto.

 

--------------------------------------------------------------------------------

 

2.Reaffirmation of Security Interest.  Each Borrower hereby expressly
acknowledges and agrees that all Liens granted under the Financing Documents
extend to and cover all of the obligations of Borrowers and any other Credit
Party to Agent and the Lenders, now existing or hereafter arising including,
without limitation, those arising in connection with the Credit Agreement, as
amended by this Amendment, upon the terms set forth in the Credit Agreement, all
of which Liens are hereby ratified, reaffirmed, confirmed and approved.

3.Enforceability.  This Amendment constitutes the legal, valid and binding
obligation of Borrowers, and is enforceable against Borrowers in accordance with
its terms, except as the enforceability thereof may be limited by bankruptcy,
insolvency or other similar laws relating to the enforcement of creditors’
rights generally and by general equitable principles.  Each of the agreements,
documents and instruments executed in connection herewith to which a Borrower is
a party constitutes the legal, valid and binding obligation of such Borrower,
and is enforceable against such Borrower in accordance with its terms, except as
the enforceability thereof may be limited by bankruptcy, insolvency or other
similar laws relating to the enforcement of creditors’ rights generally and by
general equitable principles.

4.Confirmation of Representations and Warranties.  Each Credit Party represents
and warrants to Agent and Lenders that, before and after giving effect to this
Amendment:

(a)the representations and warranties of each Credit Party contained in the
Financing Documents are true, correct and complete in all material respects (or,
if such representation or warranty is, by its terms, qualified by materiality,
in all respects) on and as of the date hereof, except to the extent that any
such representation or warranty relates to a specific date in which case such
representation or warranty is true, correct and complete in all material
respects (or, if such representation or warranty is, by its terms, qualified by
materiality, in all respects) as of such earlier date.

(b)The execution and delivery by each Credit Party of this Amendment and the
performance by it of the transactions herein contemplated (i) are and will be
within its powers, (ii) have been authorized by all necessary action, (iii) are
not and will not conflict with or result in any breach or contravention of, or
the creation of any Lien under, any Material Contract to which any Credit Party
is a party, any Organizational Document of any Credit Party, any order,
injunction, writ or decree of any Governmental Authority or any arbitral award
to which any Credit Party or the property of any Credit Party is subject,
(iv) will not violate any applicable Law (including, without limitation, any
corporation law, limited liability company law or partnership law of the states
in which the Credit Parties are organized), and (v) will not result in a
limitation on any material licenses, permits or other governmental approvals
applicable to the business, operations or properties of any Credit Party.

(c)This Amendment and all allonges, assignments, instruments, documents, and
agreements executed and delivered in connection herewith, are and will be valid,
binding, and enforceable against each Credit Party in accordance with their
respective terms, except as enforceability may be limited by bankruptcy,
insolvency or other similar laws relating to the enforcement of creditors’
rights generally and by general equitable principles.

 

--------------------------------------------------------------------------------

 

(d)No Event of Default or Default has occurred and is continuing as of the date
of this Amendment.

(e)Both before and after giving effect to (a) the Loans to be made or extended
on the date hereof, (b) the disbursement of the proceeds of such Loans pursuant
to the instructions of the Credit Parties, (c) the consummation of the
transactions contemplated in the Financing Documents, and (e) the payment and
accrual of all transaction costs in connection with the foregoing, the Credit
Parties, taken as a whole, are Solvent.

5.Conditions to Effectiveness.  The obligation of Agent and Lenders to enter
into this Amendment shall be subject to the satisfaction of the following
conditions precedent:

(a) that Agent shall have received a copy of this Amendment, duly executed by
Borrowers, Agent and each Lender, in form and substance satisfactory to Agent;

(b)that Agent shall have received a copy of the corresponding amendment to the
Affiliated Credit Agreement duly executed by the parties thereto, in form and
substance satisfactory to Agent; and

(c)all fees payable to Agent or any Lender in connection with the execution of
this Amendment shall have been paid.

6.Costs, Fees and Expenses.  In consideration of Agent’s and each Lender’s
agreement to enter into this Amendment, Borrowers shall be responsible for the
payment of all reasonable costs, fees and expenses of Agent’s counsel incurred
in connection with the preparation of this Amendment and any related
documents.  All such costs, fees and expenses shall be paid with proceeds of
Revolving Loans.

7.Defenses and Setoffs.  Each Credit Party hereby represents and warrants that
as of the date hereof, there are no defenses, setoffs, claims or counterclaims
which could be asserted against the Agent or the Lenders arising from or in
connection with the Credit Agreement or any other Financing Document.

8.Affirmation.  Except as specifically amended pursuant to the terms hereof, the
Credit Agreement and all other Financing Documents (and all covenants, terms,
conditions and agreements therein) shall remain in full force and effect, and
are hereby ratified and confirmed in all respects by Borrowers.  Each Borrower
covenants and agrees to comply with all of the terms, covenants and conditions
of the Credit Agreement (as amended hereby) and the Financing Documents
notwithstanding any prior course of conduct, waivers, releases or other actions
or inactions on Agent’s or any Lender’s part which might otherwise constitute or
be construed as a waiver of or agreement to such terms, covenants and
conditions.

9.No Waiver or Novation.  The execution, delivery and effectiveness of this
Amendment shall not operate as a waiver of any right, power or remedy of Agent
or Lenders, nor constitute a waiver of any provision of the Credit Agreement,
the other Financing Documents or any other documents, instruments and agreements
executed or delivered in connection with any of the foregoing.  Nothing herein
is intended or shall be construed as a waiver of any existing Defaults or Events
of Default under the Credit Agreement or other Financing Documents or any of
Agent’s or Lenders’ rights and remedies in respect of such Defaults or Events of
Default.  This Amendment (together with any other document executed in
connection herewith) is not intended to be, nor shall it be construed as, a
novation of the Credit Agreement.

 

--------------------------------------------------------------------------------

 

10.Incorporation of Credit Agreement Provisions.  The provisions contained in
Section 12.8 (Governing Law; Submission to Jurisdiction) and 12.9 (Waiver of
Jury Trial) of the Credit Agreement are incorporated herein by reference to the
same extent as if reproduced herein in their entirety.

11.Headings.  Section headings in this Amendment are included for convenience of
reference only and shall not constitute a part of this Amendment for any other
purpose.

12.Counterparts.  This Amendment may be executed in counterparts, and such
counterparts taken together shall be deemed to constitute one and the same
instrument.  Signatures by facsimile or by electronic mail delivery of an
electronic version of any executed signature page shall bind the parties hereto.

13.Reference to the Effect on the Financing Documents.  Upon the effectiveness
of this Amendment, each reference in any Financing Document to “this Amendment,”
“hereunder,” “hereof,” “herein” or words of similar import shall mean and be a
reference to such Financing Document as modified by this Amendment.

(SIGNATURES APPEAR ON FOLLOWING PAGES)

 

 

 

--------------------------------------------------------------------------------

 

IN WITNESS WHEREOF, intending to be legally bound, the undersigned have executed
this Amendment as of the day and year first hereinabove set forth.

 

BORROWER

REPRESENTATIVE:

ACCURAY INCORPORATED,

a Delaware corporation

 

 

 

 

By:

/s/ Shigeyuki Hamamatsu

 

 

Shigeyuki Hamamatsu

 

 

Chief Financial Officer

 

OTHER BORROWERS:

TOMOTHERAPY INCORPORATED,

a Wisconsin corporation

 

 

 

 

By:

/s/ Shigeyuki Hamamatsu

 

 

Shigeyuki Hamamatsu

 

 

Director

 

AGENT:

MIDCAP FUNDING IV TRUST,

a Delaware statutory trust

 

 

 

 

 

By: Apollo Capital Management, L.P.

 

 

Its: Investment Manager

 

 

 

 

 

 

By: Apollo Capital Management GP, LLC

 

 

 

Its:  General Partner

 

 

 

 

 

By:

/s/ Maurice Amesllem

 

 

 

Maurice Amsellem

 

 

 

Authorized Signatory

 

LENDER:

MIDCAP FUNDING IV TRUST,

a Delaware statutory trust

 

 

 

 

 

By: Apollo Capital Management, L.P.

 

 

Its: Investment Manager

 

 

 

 

 

 

By: Apollo Capital Management GP, LLC

 

 

 

Its:  General Partner

 

 

 

 

 

By:

/s/ Maurice Amesllem

 

 

 

Maurice Amsellem

 

 

 

Authorized Signatory

 

 

 

 

 

 

signature page to amendment no. 5 to

credit and security agreement

(revolver)

 

--------------------------------------------------------------------------------

 

Schedule 9.2

 

Location of Collateral

 

Company

Chief Executive Office

Chief Place of Business

Books and Records

Accuray Incorporated

1310 Chesapeake Terrace

Sunnyvale, CA 94089

1310 Chesapeake Terrace

Sunnyvale, CA 94089

1310 Chesapeake Terrace

Sunnyvale, CA 94089

1209 Deming Way

Madison, WI 53717

TomoTherapy Incorporated

1310 Chesapeake Terrace

Sunnyvale, CA 94089

1310 Chesapeake Terrace

Sunnyvale, CA 94089

1310 Chesapeake Terrace

Sunnyvale, CA 94089

1209 Deming Way

Madison, WI 53717

 

 

 

 

signature page to amendment no. 5 to

credit and security agreement

(revolver)

 

--------------------------------------------------------------------------------

 

Inventory by location

 

Street Address

Category

City

State or
Country

Zip Code

Nature of such
Location

Managed by

Name and address
of 3rd party

Inventory Balance as of
July 31, 2019

 

 

 

 

 

 

 

 

 

[*****]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

 

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

 

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

 

[*****]

[*****]

[*****]

[*****]

 

 

 

 

 

 

 

 

 

[*****]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

 

 

 

 

 

 

 

 

 

[*****]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

[*****]

 

 

 

 

 

 

 

Grand Total

[*****]

 

 

Schedule 9.2

 

[*****] = Certain information contained in this document, marked by brackets,
has been excluded from this exhibit because it is both (i) not material and (ii)
would be competitively harmful if publicly disclosed.

--------------------------------------------------------------------------------

 

 

Inventory 7/31/19

 

Inventory

 

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

 

 

[*****]

 

 

 

Less: Ineligible Inventory

 

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

Total Ineligible Inventory

[*****]

 

 

 

Total Eligible Inventory

[*****]

[*****]

 

[*****]

[*****]

 

[*****]

[*****]

 

 

 

 

 

Total Inventory Availability (before Total Availability Limit)

[*****]

 

 

 

Maximum Inventory Availability

 

Total Inventory Availability

[*****]

 

 

Schedule 9.2

 

[*****] = Certain information contained in this document, marked by brackets,
has been excluded from this exhibit because it is both (i) not material and (ii)
would be competitively harmful if publicly disclosed.