Exhibit 10.1

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FOURTH AMENDMENT

to Loan and security agreement

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This Fourth Amendment to Loan and Security Agreement (this “Amendment”) is
entered into this 29th day of April, 2020, among (a) SILICON VALLEY BANK, a
California corporation (“SVB”), in its capacity as Administrative Agent
(“Agent”), (b) SVB, and each other lender and other financial institutions party
to the Loan Agreement (as defined below) from time to time (each, a “Lender” and
collectively, the “Lenders”), and (c) (i) ATRICURE, INC., a Delaware corporation
with its chief executive office located at 7555 Innovation Way, Mason, Ohio
45040 (“AtriCure”), (ii) ATRICURE, LLC, a Delaware limited liability company
(“AtriCure LLC”), (iii) ENDOSCOPIC TECHNOLOGIES, LLC, a Delaware limited
liability company (“Endoscopic”), (iv) nCONTACT SURGICAL, LLC, a Delaware
limited liability company (“nContact”) and (v) SentreHEART LLC, a Delaware
limited liability company (“SentreHeart”, and together with AtriCure, AtriCure
LLC, Endoscopic and nContact, individually and collectively, jointly and
severally, the “Borrower”).

Recitals

A.Agent, the Lenders and the Borrower have entered into that certain Loan and
Security Agreement dated as of February 23, 2018, as amended by that certain
First Amendment to Loan and Security Agreement dated December 28, 2018, as
further amended by that certain Consent and Second Amendment to Loan and
Security Agreement dated August 12, 2019 and as further amended by that certain
Joinder and Third Amendment to Loan and Security Agreement, dated as of
September 27, 2019 (as the same may from time to time be further amended,
modified, supplemented or restated, the “Loan Agreement”).

B.Lenders have extended credit to Borrower for the purposes permitted in the
Loan Agreement. 

C.Borrower has requested that Agent and Lenders amend the Loan Agreement to make
certain revisions to the Loan Agreement as more fully set forth herein.

D.Agent and Lenders have agreed to so amend certain provisions of the Loan
Agreement, but only to the extent, in accordance with the terms, subject to the
conditions and in reliance upon the representations and warranties set forth
below.

Agreement

Now, Therefore, in consideration of the foregoing recitals and other good and
valuable consideration, the receipt and adequacy of which is hereby
acknowledged, and intending to be legally bound, the parties hereto agree as
follows:

1. Definitions.  Capitalized terms used but not defined in this Amendment shall
have the meanings given to them in the Loan Agreement.

2. Amendments to Loan Agreement.   

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Section 2.4 (Fees).  Subsection (b) of Section 2.4 is amended in its entirety
and replaced with the following:

“(b)Revolving Line Early Termination Fee.  Upon termination of the Revolving
Line for any reason prior to the Revolving Line Maturity Date, in addition to
the payment of any other amounts then-owing, Borrower shall pay to Agent for the
ratable benefit of the Lenders holding a Revolving Line Commitment, a
termination fee (the “Termination Fee”) in an amount equal to (i) if such
termination occurs on or prior to the first anniversary of the Fourth Amendment
Effective Date,  five percent (5.00%) of the Revolving Line; (ii) if such
termination occurs after the first anniversary of the Fourth Amendment Effective
Date but on or before the second anniversary of the Fourth Amendment Effective
Date,  four percent (4.00%) of the Revolving Line; and (iii) if such termination
occurs after the second anniversary of the Fourth Amendment Effective Date but
prior to the Revolving Line Maturity Date, three percent (3.00%) of the
Revolving Line; provided that no Termination Fee shall be charged if the credit
facility hereunder is replaced with a new facility from SVB or any Affiliate of
SVB;”

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Section 6.9 (Financial Covenant).  Section 6.9 is amended in its entirety and
replaced with the following:

“6.9Financial Covenant.

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Maintain at all times, to be tested as of the last day of each month, unless
otherwise noted, with respect to Borrower:

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(a)Liquidity Ratio.  From and after the Second Amendment Effective Date, a
minimum Liquidity Ratio equal to or greater than 1.35:1.00;  provided,  that
from the Fourth Amendment Effective Date through and including September 30,
2020, maintain a minimum Liquidity Ratio equal to or greater than 1.10:1.00.”

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Section 14  (Definitions).  The following term and its definition set forth in
Section 14.1 is deleted in its entirety and replaced with the following:

“Term Loan Prepayment Premium”  is an additional fee payable to Agent, for the
ratable benefit of the Lenders with a Term Loan Commitment, in an amount equal
to:

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(a)         for a prepayment of a Term Loan Advance made on or prior to the
first anniversary of the Fourth Amendment Effective Date,  six percent (6.00%)
of the original principal amount of such Term Loan Advance;

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(b)          for a prepayment of a Term Loan Advance made after the first
anniversary of the Fourth Amendment Effective Date but on or prior to the second
anniversary of the Fourth Amendment Effective Date, four percent (4.00%) of the
original principal amount of such Term Loan Advance; and

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(c)for a prepayment of a Term Loan Advance made after the second anniversary of
the Fourth Amendment Effective Date but prior to the Term Loan Maturity Date,
 three percent (3.00%) of the original principal amount of such Term Loan
Advance;  

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provided that no Term Loan Prepayment Premium shall be charged if the credit
facility hereunder is replaced with a new facility from SVB or any Affiliate of
SVB.

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Section 14  (Definitions).  The following new defined term is hereby inserted
alphabetically in Section 14.1:

“Fourth Amendment Effective Date” is April 29, 2020.

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Exhibit B (Compliance Certificate).  The Compliance Certificate attached to the
Loan Agreement as Exhibit B is amended in its entirety and replaced with the
Compliance Certificate in the form of Exhibit B attached hereto.

3. Limitation of Amendments.

The amendments set forth in Section 2, above, 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 Loan Document, or (b) otherwise prejudice any right or
remedy which Agent and Lenders may now have or may have in the future under or
in connection with any Loan Document.

This Amendment shall be construed in connection with and as part of the 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.

4. Representations and Warranties.  To induce Agent and each Lender to enter
into this Amendment, Borrower hereby represents and warrants to Agent and each
Lender as follows:

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 Event of Default has occurred and
is continuing;

Borrower has the power and authority to execute and deliver this Amendment and
to perform their respective obligations under the Loan Agreement, as amended by
this Amendment;

The organizational documents of Borrower previously delivered to Agent either
(i) remain true, accurate and complete and have not been amended, supplemented
or restated and are and continue to be in full force and effect; or (ii) have
been amended and have been delivered to Agent in connection with this Amendment;

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The execution and delivery by Borrower of this Amendment and the performance by
Borrower of their respective obligations under the Loan Agreement, as amended by
this Amendment, have been duly authorized;

The execution and delivery by Borrower of this Amendment and the performance by
Borrower of their respective obligations under the Loan Agreement, as amended by
this Amendment, do not and will not contravene (a) any law or regulation binding
on or affecting Borrower, (b) any contractual restriction with a Person binding
on Borrower, (c) any order, judgment or decree of any court or other
governmental or public body or authority, or subdivision thereof, binding on
Borrower, or (d) the organizational documents of Borrower;

The execution and delivery by Borrower of this Amendment and the performance by
Borrower of their respective obligations under the Loan Agreement, as amended by
this Amendment, do not require any order, consent, approval, license,
authorization or validation of, or filing, recording or registration with, or
exemption by any governmental or public body or authority, or subdivision
thereof, binding on Borrower, except as already has been obtained or made; and

This Amendment has been duly executed and delivered by Borrower and is the
binding obligation of Borrower, enforceable against Borrower in accordance with
its terms, except as such enforceability may be limited by bankruptcy,
insolvency, reorganization, liquidation, moratorium or other similar laws of
general application and equitable principles relating to or affecting creditors’
rights.

5. Ratification of Intellectual Property Security Agreements.  Borrower hereby
ratifies, confirms and reaffirms, all and singular, the terms and conditions of
a certain Intellectual Property Security Agreements dated as of February 23,
2018 and September 27, 2019,  as supplemented through and including the Fourth
Amendment Effective Date, in each case between Borrower and Agent, and
acknowledges, confirms and agrees that said Intellectual Property Security
Agreements, as supplemented through and including the Fourth Amendment Effective
Date (a) contain an accurate and complete listing of all Intellectual Property
Collateral (as defined therein) and (b) shall remain in full force and effect.

6. Perfection Certificate.  Borrower hereby ratifies, confirms and reaffirms,
all and singular, the terms and disclosures contained (i) in a certain
Perfection Certificate dated on February 23, 2018, as amended as set forth on
Schedule 2 attached that certain First Amendment to Loan and Security Agreement
dated December 28, 2018 (as amended, the “Original Perfection Certificate”); and
(ii) in a certain Perfection Certificate dated as of September 27, 2019,
executed by SentreHeart (the “SentreHeart Perfection Certificate”, and together
with the Original Perfection Certificate, the “Perfection Certificate”), and
Borrower in each case acknowledges, confirms and agrees the disclosures and
information Borrower provided to Agent in the Perfection Certificate, have not
changed, and remain true, complete and correct as of the date hereof.  Borrower
hereby agrees that all references to the “Perfection Certificate” in any Loan
Document shall be deemed to refer collectively to the Perfection Certificate (as
defined in the preceding sentence).

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7. Integration.  This Amendment and the Loan Documents represent the entire
agreement about this subject matter and supersede prior negotiations or
agreements.  All prior agreements, understandings, representations, warranties,
and negotiations between the parties about the subject matter of this Amendment
and the Loan Documents merge into this Amendment and the Loan Documents.

8. Counterparts.  This Amendment may be executed in any number of counterparts
and all of such counterparts taken together shall be deemed to constitute one
and the same instrument.

9. Electronic Execution of Documents.  The words “execution,” “signed,”
“signature” and words of like import in any Loan Document shall be deemed to
include electronic signatures or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity and enforceability as a
manually executed signature or the use of a paper-based recordkeeping systems,
as the case may be, to the extent and as provided for in any applicable law,
including, without limitation, any state law based on the Uniform Electronic
Transactions Act.

10. Conditions to Effectiveness.  Borrower hereby agrees that the following
documents shall be delivered to the Agent prior to or concurrently with the
execution of this Amendment, each in form and substance reasonably satisfactory
to the Agent:

Evidence satisfactory to Bank that the insurance policies and endorsements
required by Section 6.7 of the Loan Agreement are in full force and effect with
respect to New Borrower;

Borrower’s payment of Agent’s legal fees and expenses incurred in connection
with this Amendment; and

such other documents as Agent may reasonably request.

[Signature page follows.]

 

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In Witness Whereof, the parties hereto have caused this Amendment to be duly
executed and delivered as of the date first written above.

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BORROWER:

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ATRICURE, INC.

By:
Name:
Title:

 

ATRICURE, LLC

 

By: 
Name: 
Title: 

 

 

ENDOSCOPIC TECHNOLOGIES, LLC

 

By: 
Name: 
Title: 

 

SentreHEART LLC

 

By: 
Name: 
Title: 

 

nCONTACT SURGICAL, LLC

 

By: 
Name: 
Title: 

 

 

AGENT:

SILICON VALLEY BANK

By__________________________________
Name:_______________________________
Title:________________________________

 

LENDER:

SILICON VALLEY BANK

By__________________________________
Name:_______________________________
Title:________________________________

 

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ACKNOWLEDGMENT OF AMENDMENT
AND REAFFIRMATION OF GUARANTY

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Section 1.Guarantor hereby acknowledges and confirms that it has reviewed and
approved the terms and conditions of the Fourth Amendment to Loan and Security
Agreement dated as of even date herewith (“the “Amendment”).

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Section 2.Guarantor hereby consents to the Amendment and agrees that the
Guaranty Agreement, dated as of April 9, 2018 (the “Guaranty”) and the Security
Agreement delivered by Guarantor to Agent, dated as of April 9, 2018 (the
“Security Agreement”), in each case relating to the Obligations of Borrower
under the Loan Agreement shall continue in full force and effect, shall be valid
and enforceable and shall not be impaired or otherwise affected by the execution
of the Amendment or any other document or instruction delivered in connection
herewith.

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Section 3.Guarantor represents and warrants that, after giving effect to the
Amendment, all representations and warranties contained in the Guaranty and the
Security Agreement are true, accurate and complete as if made the date hereof.

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Dated as of April 29, 2020

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GUARANTOR

ATRICURE EUROPE, B.V.

By:
Name:
Title: Managing Director

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By:
Name:
Title: Managing Director

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EXHIBIT B

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COMPLIANCE CERTIFICATE

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TO:SILICON VALLEY BANKDate: 

FROM:ATRICURE, INC., ATRICURE, LLC, ENDOSCOPIC TECHNOLOGIES, LLC, nCONTACT
SURGICAL, LLC, and SENTREHEART LLC

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The undersigned authorized officer of AtriCure, Inc. (“Borrower”) certifies for
itself and each other Borrower that under the terms and conditions of the Loan
and Security Agreement between Borrower, SILICON VALLEY BANK, a California
corporation (“SVB”), in its capacity as Administrative Agent (“Agent”), and each
Lender from time to time party thereto (as amended, the “Agreement”):

(1) Borrower is in complete compliance for the period ending _______________
with all required covenants except as noted below; (2) there are no Events of
Default; (3) all representations and warranties in the Agreement are true and
correct in all material respects on this date except as noted below; provided,
 however, that such materiality qualifier shall not be applicable to any
representations and warranties that already are qualified or modified by
materiality in the text thereof; and provided,  further that those
representations and warranties expressly referring to a specific date shall be
true, accurate and complete in all material respects as of such date; (4)
Borrower, and each of its Subsidiaries, has timely filed all required tax
returns and reports, and Borrower has timely paid all foreign, federal, state
and local taxes, assessments, deposits and contributions owed by Borrower except
as otherwise permitted pursuant to the terms of Section 5.9 of the Agreement;
and (5) no Liens have been levied or claims made against Borrower or any of its
Subsidiaries relating to unpaid employee payroll or benefits of which Borrower
has not previously provided written notification to Agent. 

Attached are the required documents supporting the certification.  The
undersigned certifies that these are prepared in accordance with GAAP
consistently applied from one period to the next except as explained in an
accompanying letter or footnotes.  The undersigned acknowledges that no
borrowings may be requested at any time or date of determination that Borrower
is not in compliance with any of the terms of the Agreement, and that compliance
is determined not just at the date this certificate is delivered.  Capitalized
terms used but not otherwise defined herein shall have the meanings given them
in the Agreement.

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Please indicate compliance status by circling Yes/No under “Complies” column.

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Reporting Covenant

Required

Complies

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Borrowing Base Report (and any other schedules and reports related thereto as
Agent may reasonably request, including, without limitation, a detailed accounts
receivable ledger report) 

With each request for an Advance and monthly within 30 days of month end

Yes   No

Monthly payable & receivable items, check registers,
general ledger, & reconciliations

Monthly within 30 days of month end

Yes   No

Borrower financial statements

Quarterly within 45 days after quarter end

Yes   No

Compliance Certificates

Monthly within 30 days of month end

Yes   No

Annual financial statement (CPA Audited)

Within 120 days after FYE

Yes   No

Annual budgets and projections

Within 30 days after FYE and as amended/updated

Yes   No

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Financial Covenants

Required

Actual

Complies

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Maintain as indicated

 

 

 

Liquidity Ratio (certified monthly)

1.35:1.00 (unless otherwise noted)

:1.00

Yes/No/NA

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Borrower is party to, or bound by, the following material Restricted Licenses
that were not previously noted in the Perfection Certificate or a prior
Compliance Certificate:

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.

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Borrower intends to register the following copyrights or mask works with the
United States Copyright Office that were not previously noted in a prior
Compliance Certificate:

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.

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Borrower has (i) obtained the following Patents, registered Trademarks,
registered Copyrights, registered mask work, or any pending application for any
of the foregoing, whether as owner, licensee or otherwise, and (ii) applied for
the following Patents and the registration of the following Trademarks; in each
case, that were not previously noted in the Perfection Certificate or a prior
Compliance Certificate (to be reported on as part of the Compliance Certificate
due following the last month of each fiscal quarter):

.

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The following financial covenant analyses and information set forth in Schedule
1 attached hereto are true and accurate as of the date of this Certificate.

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The following are the exceptions with respect to the certification above:  (If
no exceptions exist, state “No exceptions to note.”)

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ATRICURE, INC.

ATRICURE, LLC
ENDOSCOPIC TECHNOLOGIES, LLC
nCONTACT SURGICAL, LLC

SENTREHEART LLC

 

By:

Name:

Title:

 

BANK USE ONLY

 

Received by: _____________________

authorized signer

Date: _________________________

 

Verified: ________________________

authorized signer

Date: _________________________

 

Compliance Status:Yes     No

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Schedule 1 to Compliance Certificate

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Financial Covenants of Borrower

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In the event of a conflict between this Schedule and the Loan Agreement, the
terms of the Loan Agreement shall govern.

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Dated:____________________

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I.Liquidity Ratio (Section 6.9(a))

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Required:  From and after the Second Amendment Effective Date, a minimum
Liquidity Ratio equal to or greater than 1.35:1.00;  provided,  that for the
period commencing on the Fourth Amendment Effective Date through and including
September 30, 2020, a minimum Liquidity Ratio equal to or greater than
1.10:1.00.

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Actual:

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A.

Borrowers unrestricted cash and Cash Equivalents maintained with SVB and SVB’s
Affiliates (for purposes of clarity, the parties acknowledge that Borrower’s
cash or Cash Equivalents shall not be considered to be restricted by reason of
the fact that they are subject to a Lien in favor of the Agent or any Lender)

$

B.

Net Accounts Receivable

$

C.

The sum of lines A and B

$

D.

All outstanding Obligations (including, for the avoidance of doubt, the full
amount of the drawn portion of the Revolving Line plus the aggregate Dollar
Equivalent of the face amount of outstanding Letters of Credit (including drawn
but unreimbursed Letters of Credit)), of Borrower owed to Agent and Lenders

$

E.

LIQUIDITY RATIO (line C divided by line D)

:1.00

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Is line E equal to or greater than [1.10:1.00] [1.35:1.00]?  

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No, not in compliance Yes, in compliance

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