Exhibit 10.2

(BAR CODE) [d66106004.jpg]

*90901288243900000510010D20*

PROMISSORY NOTE

 

 

 

 

 

 

 

 

Principal
$7,500,000.00

Loan Date
11-23-2005

Maturity
11-30-2006

Loan No
51001

Call / Coll
326

Account
E9012882439

Officer
GAL08

Initials

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References in the shaded area are for Lender’s use only and do not limit the
applicability of this document to any particular loan or item.
Any item above containing “***” has been omitted due to text length limitations.

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Borrower:

ANGIODYNAMICS, INC.
603 Queensbury Avenue
Queensbury, NY 12804

Lender:

KeyBank National Association
NY-MM-Albany
66 S. Pearl Street
Albany, NY 12207

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Principal Amount:  $7,500,000.00

Initial Rate:  7.000%

Date of Note:  November 23, 2005

PROMISE TO PAY. To repay Borrower’s loan, ANGIODYNAMICS, INC. (“Borrower”)
promises to pay to KeyBank National Association (“Lender”), or order, in lawful
money of the United States of America, the principal amount of Seven Million
Five Hundred Thousand & 00/100 Dollars ($7,500,000.00) or so much as may be
outstanding, together with interest on the unpaid outstanding principal balance
of each advance. Interest shall be calculated from the date of each advance
until repayment of each advance.

PAYMENT. Borrower will pay this loan in one payment of all outstanding principal
plus all accrued unpaid interest on November 30, 2006. In addition, Borrower
will pay regular monthly payments of all accrued unpaid interest due as of each
payment date, beginning December 23, 2005, with all subsequent interest payments
to be due on the same day of each month after that. Unless otherwise agreed or
required by applicable law, payments will be applied first to any accrued unpaid
interest; then to principal; then to any unpaid collection costs; and then to
any late charges. The annual interest rate for this Note is computed on a
365/360 basis; that is, by applying the ratio of the annual interest rate over a
year of 360 days, multiplied by the outstanding principal balance, multiplied by
the actual number of days the principal balance is outstanding. Borrower will
pay Lender at Lender’s address shown above or at such other place as Lender may
designate in writing.

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from
time to time based on changes in an index which is the Prime Rate announced by
Lender (the “Index”). The index is not necessarily the lowest rate charged by
Lender on its loans and is set by Lender in its sole discretion. If the index
becomes unavailable during the term of this loan, Lender may designate a
substitute index after notifying Borrower. Lender will tell Borrower the current
index rate upon Borrower’s request. The interest rate change will not occur more
often than each day that the index changes. The interest rate will change
automatically and correspondingly on the date of each announced change of the
index by Lender. Borrower understands that Lender may make loans based on other
rates as well. The index currently is 7.000% per annum. The interest rate to be
applied to the unpaid principal balance of this Note will be at a rate equal to
the index, resulting in an initial rate of 7.000% per annum. NOTICE: Under no
circumstances will the interest rate on this Note be more than the maximum rate
allowed by applicable law.

PREPAYMENT. Borrower may pay without penalty all or a portion of the amount owed
earlier than it is due. Early payments will not, unless agreed to by Lender in
writing, relieve Borrower of Borrower’s obligation to continue to make payments
of accrued unpaid interest. Rather, early payments will reduce the principal
balance due. Borrower agrees not to send Lender payments marked “paid in full”,
“without recourse”, or similar language. If Borrower sends such a payment,
Lender may accept it without losing any of Lender’s rights under this Note, and
Borrower will remain obligated to pay any further amount owed to Lender. All
written communications concerning disputed amounts, including any check or other
payment instrument that indicates that the payment constitutes “payment in full”
of the amount owed or that is tendered with other conditions or limitations or
as full satisfaction of a disputed amount must be mailed or delivered to:
KeyBank National Association, NY-MM-Albany, 66 S. Pearl Street, Albany, NY
12207.

LATE CHARGE. If a payment is 10 days or more late, Borrower will be charged
5.000% of the unpaid portion of the regularly scheduled payment or $50.00,
whichever is greater.

INTEREST AFTER DEFAULT. Upon default, including failure to pay upon final
maturity, Lender, at its option, may, if permitted under applicable law,
increase the variable interest rate on this Note to 3.000 percentage points over
the index. The interest rate will not exceed the maximum rate permitted by
applicable law.

DEFAULT. Each of the following shall constitute an event of default (“Event of
Default”) under this Note:

 

 

 

Payment Default. Borrower fails to make any payment when due under this Note.

 

 

 

Other Defaults. Borrower fails to comply with or to perform any other term,
obligation, covenant or condition contained in this Note or in any of the
related documents or to comply with or to perform any term, obligation, covenant
or condition contained in any other agreement between Lender and Borrower.

 

 

 

Default in Favor of Third Parties. Borrower or any Grantor defaults under any
loan, extension of credit, security agreement, purchase or sales agreement, or
any other agreement, in favor of any other creditor or person that may
materially affect any of Borrower’s property or Borrower’s ability to repay this
Note or perform Borrower’s obligations under this Note or any of the related
documents.

 

 

 

False Statements. Any warranty, representation or statement made or furnished to
Lender by Borrower or on Borrower’s behalf under this Note or the related
documents is false or misleading in any material respect, either now or at the
time made or furnished or becomes false or misleading at any time thereafter.

 

 

 

Insolvency. The dissolution or termination of Borrower’s existence as a going
business, the insolvency of Borrower, the appointment of a receiver for any part
of Borrower’s property, any assignment for the benefit of creditors, any type of
creditor workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Borrower.

 

 

 

Creditor or Forfeiture Proceedings. Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Borrower or by any governmental agency against
any collateral securing the loan. This includes a garnishment of any of
Borrower’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower as
to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Borrower gives Lender written notice of
the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.

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PROMISSORY NOTE

 

Loan No: 51001

(Continued)

Page 2

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Events Affecting Guarantor. Any of the preceding events occurs with respect to
any guarantor, endorser, surety, or accommodation party of any of the
indebtedness or any guarantor, endorser, surety, or accommodation party dies or
becomes incompetent, or revokes or disputes the validity of, or liability under,
any guaranty of the indebtedness evidenced by this Note. In the event of a
death, Lender, at its option, may, but shall not be required to, permit the
guarantor’s estate to assume unconditionally the obligations arising under the
guaranty in a manner satisfactory to Lender, and, in doing so, cure any Event of
Default.

 

 

 

Change in Ownership. Any change in ownership of twenty-five percent (25%) or
more of the common stock of Borrower.

 

 

 

Adverse Change. A material adverse change occurs in Borrower’s financial
condition, or Lender believes the prospect of payment or performance of this
Note is impaired.

 

Insecurity. Lender in good faith believes itself insecure.

 

 

 

Cure Provisions. If any default, other than a default in payment is curable and
if Borrower has not been given a notice of a breach of the same provision of
this Note within the preceding twelve (12) months, it may be cured if Borrower,
after receiving written notice from Lender demanding cure of such default: (1)
cures the default within fifteen (15) days; or (2) if the cure requires more
than fifteen (15) days, immediately initiates steps which Lender deems in
Lender’s sole discretion to be sufficient to cure the default and thereafter
continues and completes all reasonable and necessary steps sufficient to produce
compliance as soon as reasonably practical.

LENDER’S RIGHTS. Upon default, Lender may declare the entire unpaid principal
balance on this Note and all accrued unpaid interest immediately due, and then
Borrower will pay that amount.

ATTORNEYS’ FEES; EXPENSES. Borrower agrees to pay all costs and expenses Lender
incurs to collect this Note. This includes, subject to any limits under
applicable law, Lender’s reasonable attorneys’ fees and Lender’s legal expenses
whether or not there is a lawsuit, including reasonable attorneys’ fees and
expenses for bankruptcy proceedings (including efforts to modify or vacate any
automatic stay or injunction), and appeals. If not prohibited by applicable law,
Borrower also will pay any court costs, in addition to all other sums provided
by law.

JURY WAIVER. Lender and Borrower hereby waive the right to any jury trial in any
action, proceeding, or counterclaim brought by either Lender or Borrower against
the other.

GOVERNING LAW. This Note will be governed by federal law applicable to Lender
and, to the extent not preempted by federal law, the laws of the State of New
York without regard to its conflicts of law provisions. This Note has been
accepted by Lender in the State of New York.

DISHONORED ITEM FEE. Borrower will pay a fee to Lender of $20.00 if Borrower
makes a payment on Borrower’s loan and the check or preauthorized charge with
which Borrower pays is later dishonored.

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a
right of setoff in all Borrower’s accounts with Lender (whether checking,
savings, or some other account and whether evidenced by a certificate of
deposit). This includes all accounts Borrower holds jointly with someone else
and all accounts Borrower may open in the future. However, this does not include
any IRA or Keogh accounts, or any trust accounts for which setoff would be
prohibited by law. Borrower authorizes Lender, to the extent permitted by
applicable law, to charge or setoff all sums owing on the indebtedness against
any and all such accounts.

LINE OF CREDIT. This Note evidences a revolving line of credit. Advances under
this Note may be requested either orally or in writing by Borrower or as
provided in this paragraph. Lender may, but need not, require that all oral
requests be confirmed in writing. All communications, instructions, or
directions by telephone or otherwise to Lender are to be directed to Lender’s
office shown above. The following person currently is authorized to request
advances and authorize payments under the line of credit until Lender receives
from Borrower, at Lender’s address shown above, written notice of revocation of
his or her authority: Joseph G. Gerardi, President of ANGIODYNAMICS, INC. .
Borrower agrees to be liable for all sums either: (A) advanced in accordance
with the instructions of an authorized person or (B) credited to any of
Borrower’s accounts with Lender. The unpaid principal balance owing on this Note
at any time may be evidenced by endorsements on this Note or by Lender’s
internal records, including daily computer print-outs. Lender will have no
obligation to advance funds under this Note if: (A) Borrower or any guarantor is
in default under the terms of this Note or any agreement that Borrower or any
guarantor has with Lender, including any agreement made in connection with the
signing of this Note; (B) Borrower or any guarantor ceases doing business or is
insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit,
modify or revoke such guarantor’s guarantee of this Note or any other loan with
Lender; (D) Borrower has applied funds provided pursuant to this Note for
purposes other than those authorized by Lender; or (E) Lender in good faith
believes itself insecure.

LIBOR 1 MONTH. An exhibit, titled “LIBOR 1 Month Exhibit,” is attached to this
Note and by this reference is made a part of this Note just as if all the
provisions, terms and conditions of the Exhibit had been fully set forth in this
Note.

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon Borrower, and
upon Borrower’s heirs, personal representatives, successors and assigns, and
shall inure to the benefit of Lender and its successors and assigns.

GENERAL PROVISIONS. Lender may delay or forgo enforcing any of its rights or
remedies under this Note without losing them. Borrower and any other person who
signs, guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, and notice of dishonor. Upon any change in the
terms of this Note, and unless otherwise expressly stated in writing, no party
who signs this Note, whether as maker, guarantor, accommodation maker or
endorser, shall be released from liability. All such parties agree that Lender
may renew or extend (repeatedly and for any length of time) this loan or release
any party or guarantor or collateral; or impair, fail to realize upon or perfect
Lender’s security interest in the collateral; and take any other action deemed
necessary by Lender without the consent of or notice to anyone. All such parties
also agree that Lender may modify this loan without the consent of or notice to
anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

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Loan No: 51001

PROMISSORY NOTE
(Continued)

Page 3

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PRIOR TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF
THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. BORROWER AGREES TO
THE TERMS OF THE NOTE.

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

BORROWER:

ANGIODYNAMICS, INC.

 

 

 

By:

-s- Joseph G. Gerardi [d66106003.jpg]

 

 

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Joseph G. Gerardi, Vice President of
ANGIODYNAMICS, INC.

 

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LIBOR 1 MONTH EXHIBIT

 

 

 

 

 

 

 

 

Principal
$7,500,000.00

Loan Date
11-23-2005

Maturity
11-30-2006

Loan No
51001

Call / Coll
326

Account
E9012882439

Officer
GAL08

Initials

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

References in the shaded area are for Lender’s use only and do not limit the
applicability of this document to any particular loan or item.
Any item above containing “***” has been omitted due to text length limitations.

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

 

 

 

 

 

 

 

Borrower:

 

ANGIODYNAMICS, INC.
603 Queensbury Avenue
Queensbury, NY 12804

 

Lender:

 

KeyBank National Association
NY-MM-Albany
66 S. Pearl Street
Albany, NY 12207

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This LIBOR 1 MONTH EXHIBIT is attached to and by this reference is made a part
of the Promissory Note, dated November 23, 2005, and executed in connection with
a loan or other financial accommodations between KEYBANK NATIONAL ASSOCIATION
and ANGIODYNAMICS, INC. .

1. DEFINITIONS: For the purposes of this Addendum, the following definitions
will apply:

          “Business Day” means a day on which dealings are carried on in the
London interbank eurodollar market.

          “LIBOR Interest Period” means the period commencing on the date an
advance bearing interest at the LIBOR Rate is made, continued, or converted and
continuing for one month, with successive periods commencing on the same day of
each month thereafter;

          “LIBOR Rate” means the rate per annum calculated by the Lender in good
faith, which Lender determines with reference to the rate per annum (rounded
upwards to the next higher whole multiple of 1/16% if such rate is not such a
multiple) at which deposits in United States dollars are offered by prime banks
in the London interbank eurodollar market two Business Days prior to the day on
which such rate is calculated by Bank, in an amount comparable to the amount of
such advance and with a maturity equal to the LIBOR Interest Period;

          “LIBOR Reserve Requirements” means, for any advance bearing interest
at the LIBOR Rate, the maximum reserves (whether basic, supplemental, marginal,
emergency, or otherwise) prescribed by the Board of Governors of the Federal
Reserve System (or any successor) with respect to liabilities or assets
consisting of or including “Eurocurrency liabilities’’ (as defined in Regulation
D of the Board of Governors of the Federal Reserve System) having a term equal
to the term of such advance.

          “Margin” means _________ percent (175%).

          “Note Rate” means the interest rate provided for in the Note based on
the Lender’s Prime Rate (as defined in the Note).

2. INTEREST RATE. Notwithstanding anything contained in the Note to the
contrary, advances under the Note shall bear interest at a fixed rate of
interest equal to the LIBOR Rate plus the Margin for the duration of a LIBOR
Interest Period; provided that no such advance shall be in an amount of less
than $ 0, and provided further that no LIBOR Interest Period may extend beyond
the maturity date of the Note. Upon the expiration of the initial LIBOR Interest
Period, Borrower may elect a new LIBOR Rate or the Note Rate. If Borrower fails
to make an election, the advances will bear interest at the LIBOR Rate plus the
Margin for consecutive LIBOR Interest Periods until an election is made. During
any LIBOR Interest Period, Borrower shall continue to make interest payments as
required by the Note.

3. INCREASED COSTS. If, because of the introduction of or any change in, or
because of any judicial, administrative, or other governmental interpretation
of, any law or regulation, there shall be any increase in the cost to Lender of
making, funding, maintaining, or allocating capital to any advance bearing
interest at the LIBOR Rate, including a change in LIBOR Reserve Requirements,
then Borrower shall, from time to time upon demand by Lender, pay to Lender
additional amounts sufficient to compensate Lender for such increased cost.

4. ILLEGALITY. If, because of the introduction of or any change in, or because
of any judicial, administrative, or other governmental interpretation of, any
law or regulation, it becomes unlawful for Lender to make, fund, or maintain any
advance at the LIBOR Rate, then Lender’s obligation to make, fund, or maintain
any such advance shall terminate and each affected outstanding advance shall be
converted to the Note Rate on the earlier of the termination date for each LIBOR
Interest Period or the date the making, funding, or maintaining of each such
advance becomes unlawful.

5. REIMBURSEMENT OF COSTS. If Borrower repays any advance bearing interest at
the LIBOR Rate prior to the end of the applicable LIBOR Interest Period,
including without limitation a prepayment under paragraphs 3 or 4 above,
Borrower shall reimburse Lender on demand for the resulting loss or expense
incurred by Lender, including without limitation any loss or expense incurred in
obtaining, liquidating or reemploying deposits from third parties, with a
minimum amount due for each prepayment of $200.00 for each such LIBOR advance.
If the actual reimbursement amount for any such advance exceeds $200.00, a
statement as to the amount of such loss or expense, prepared in good faith and
in reasonable detail by Lender and submitted by Lender to the Borrower, shall be
conclusive and binding for all purposes absent manifest error in computation.
Calculation of all amounts payable to Lender under this paragraph shall be made
as though Lender shall have actually funded the relevant advance through
deposits or other funds acquired from third parties for such purpose; provided,
however, that Lender may fund any advance bearing interest at the LIBOR Rate in
any manner it sees fit and the foregoing assumption shall be utilized only for
purposes of calculation of amounts payable under this paragraph. Lender will be
entitled to receive the reimbursement provided for herein regardless of whether
the prepayment is voluntary or involuntary (including demand or acceleration of
the Note upon Borrower’s default).

THIS LIBOR 1 MONTH EXHIBIT IS EXECUTED ON NOVEMBER 23, 2005.

BORROWER:

ANGIODYNAMICS, INC.

 

 

 

By:

-s- Joseph G. Gerardi [d66106003.jpg]

 

 

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Joseph G. Gerardi, Vice President of
ANGIODYNAMICS, INC.

 

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