Exhibit 10.1

THIRD AMENDMENT TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT

This THIRD AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT dated as of
August 1, 2017 (this “Third Amendment”) is made by and among NOVANTA
CORPORATION, a Michigan corporation (the “Lead Borrower”), NOVANTA UK
INVESTMENTS HOLDING LIMITED, a private limited company incorporated in England
and Wales (the “U.K. Borrower”), Novanta Europe GmbH (previously known as GSI
Group Europe GmbH), a limited liability company (Gesellschaft mit beschränkter
Haftung) formed and existing under the laws of Germany (the “German Borrower”
and jointly and severally together with the Lead Borrower, collectively the
“Borrowers”), NOVANTA INC., a company continued and existing under the laws of
the Province of New Brunswick, Canada (“Holdings”), each of the Subsidiaries of
Holdings listed under the caption “GUARANTORS” on the signature pages hereto
(each a “Guarantor” and collectively the “Guarantors”), each lender party hereto
(collectively, the “Lenders” and individually, a “Lender”) and BANK OF AMERICA,
N.A., as Administrative Agent (in such capacity, the “Administrative Agent”),
Swing Line Lenders and L/C Issuer.

WHEREAS, the Borrowers, the Lenders and the Administrative Agent are parties to
that certain Second Amended and Restated Credit Agreement dated as of May 19,
2016, as amended by that certain First Amendment to Second Amended and Restated
Credit Agreement dated as of December 22, 2016, as further amended by that
certain Joinder, Assumption and Amendment Agreement dated as of May 30, 2017 (as
so amended and further amended and in effect, the “Credit Agreement”), pursuant
to which the Lenders have agreed to make certain financial accommodations to the
Borrowers.  

WHEREAS, (a) pursuant to Section 2.15(a) of the Credit Agreement, the Borrowers
have provided notice to the Administrative Agent to request an increase in the
Revolving Credit Facility by an amount equal to $100,000,000 and (b) pursuant to
Section 2.16(a) of the Credit Agreement, the Borrowers have provided notice to
the Administrative Agent to request an increase in the Term Loans by an amount
equal to $25,000,000;

WHEREAS, certain Lenders have agreed to provide new or additional Revolving
Credit Commitments and/or Term Loans, as applicable, pursuant to the terms and
conditions set forth herein and in the Credit Agreement; and

WHEREAS, the Borrowers, Holdings, the Lenders and the Administrative Agent wish
to amend the Credit Agreement in certain respects, all on the terms and
conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties signatory hereto agree
as follows:

1.Definitions.  Except as otherwise defined in this Third Amendment, terms
defined in the Credit Agreement are used herein as defined therein.

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2.Amendments to Credit Agreement.  Subject to the satisfaction of the conditions
precedent specified in Section 3 below, the undersigned Lenders hereby agree
that, effective as of the date hereof, Section 7.03 of the Credit Agreement
shall be amended as follows:

(a)The definitions of “Fee Letter” and “Loan Documents” in Section 1.01 of the
Credit Agreement shall be amended by deleting the definitions thereof in their
entirety and inserting the following definitions in their stead:

“Fee Letter” means the amended and restated letter agreement, dated as of July
14, 2017, among the Borrowers, Merrill Lynch, Pierce, Fenner & Smith
Incorporated and the Administrative Agent.

“Loan Documents” means, collectively, (a) this Agreement, (b) the Notes, (c) the
Guaranty (including the Holdings Guaranty), (d) the Collateral Documents, (e)
the Fee Letter, (f) each Issuer Document; (g) the First Amendment dated as of
December 22, 2016, the Joinder and Amendment dated as of May 30, 2017 and the
Third Amendment dated as of August 1, 2017 and (h) any agreement creating or
perfecting rights in Cash Collateral pursuant to the provisions of Section 2.17
of this Agreement.

(b)The definition of “Permitted Acquisition” in Section 7.03(j) of the Credit
Agreement shall be amended by deleting clause (j)(iv) thereof in its entirety
and inserting the following clause in its stead:

(iv)       (A) immediately before and immediately after giving Pro Forma Effect
to any such purchase or other acquisition, no Event of Default shall have
occurred and be continuing and (B) immediately after giving effect to such
purchase or other acquisition, (x) Holdings and its Subsidiaries shall be in Pro
Forma Compliance with all of the covenants set forth in Section 7.10, such
compliance to be determined on the basis of the financial information most
recently delivered to the Administrative Agent and the Lenders pursuant to
Section 6.01(a) or (b) as though such purchase or other acquisition had been
consummated as of the first day of the fiscal period covered thereby and (y) the
Consolidated Leverage Ratio for the twelve-month period ended as of the end of
the most recent fiscal quarter for which financial statements have been
delivered pursuant to Section 6.01(a) or (b) shall be no more than 2.50 : 1.00
(or, in connection with a Designated Acquisition or during the four (4)
consecutive quarters following a previously consummated Designated Acquisition,
3.00 : 1.00) calculated as though such purchase or other acquisition had been
consummated as of the first day of the fiscal period covered thereby; and

(c)Section 2.07 of the Credit Agreement (Repayment of Loans) shall be amended by
deleting the table in clause (a) in its entirety and inserting the following
table in its stead:

 

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Date

Amount

October 15, 2017

$2,300,000

January 15, 2018

$2,300,000

April 15, 2018

$2,300,000

July 15, 2018

$2,300,000

October 15, 2018

$2,300,000

January 15, 2019

$2,300,000

April 15, 2019

$2,300,000

July 15, 2019

$2,300,000

October 15, 2019

$2,300,000

January 15, 2020

$2,300,000

April 15, 2020

$2,300,000

July 15, 2020

$2,300,000

October 15, 2020

$2,300,000

January 15, 2021

$2,300,000

April 15, 2021

$2,300,000

 

(d)Schedule 2.01 to the Credit Agreement is hereby amended by deleting such
schedule in its entirety and replacing it with the corresponding schedule set
forth in Annex I attached hereto.  To the extent necessary, the Lenders will
make assignments of Revolving Credit Loans to give effect to the new Revolving
Credit Commitments set forth on the new Schedule 2.01.

3.Conditions Precedent.  The amendments to the Credit Agreement set forth in
Section 2 hereof shall become effective, as of the date hereof, upon
satisfaction of the following conditions precedent:

(a)the Lead Borrower shall have delivered to the Administrative Agent a
counterpart of (i) this Third Amendment executed by the Lead Borrower and each
other Loan Party and (ii) the Fee Letter executed by the Borrowers;

(b)the Required Lenders and the Administrative Agent shall have indicated their
consent and agreement by executing this Third Amendment;

(c)the Borrowers shall have delivered to the Administrative Agent (i) new or
amended and restated Revolving Credit Notes, as appropriate, if requested by a
Revolving Credit Lender and (ii) new or amended and restated Term Notes, as
appropriate, if requested by a Term Lender;

(d)the Borrowers shall have paid all fees and other amounts due and payable by
them under the Credit Agreement, including to the extent invoiced the reasonable
fees, costs and expenses owing to Choate, Hall & Stewart LLP, and under the Fee
Letter;

(e)the Loan Parties shall have delivered to the Administrative Agent a
certificate of each Loan Party dated as of the Revolving Credit Increase
Effective Date signed by a Responsible Officer of such Loan Party (i) certifying
and attaching the resolutions adopted by

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such Loan Party approving or consenting to such increase and (ii) in the case of
the Lead Borrower, certifying that, before and after giving effect to such
increase, (A) the representations and warranties contained in Article V of the
Credit Agreement and the other Loan Documents are true and correct in all
material respects on and as of the Revolving Credit Increase Effective Date and
the Term Increase Effective Date, except that any representation and warranty
that is qualified as to “materiality,” “Material Adverse Effect” or similar
language shall be true and correct in all respects on and as of the Revolving
Credit Increase Effective Date and the Term Increase Effective Date, and except
to the extent that such representations and warranties specifically refer to an
earlier date, in which case they are true and correct in all material respects
as of such earlier date, except that any representation and warranty that is
qualified as to “materiality,” “Material Adverse Effect” or similar language
shall be true and correct in all respects on and as of such earlier date, and
except that for purposes of Sections 2.15 and 2.16 of the Credit Agreement, the
representations and warranties contained in subsections (a) and (b) of Section
5.05 of the Credit Agreement shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of Section
6.01 of the Credit Agreement, (B) no Default or Event of Default exists and (C)
the final maturity date of the additional Term Loans is no earlier than the
Maturity Date applicable to the Term Loan Facility and the weighted average life
to maturity of the additional Term Loans is no earlier than the weighted average
life to maturity of the Term Loan Facility;

(f)the Administrative Agent shall have received duly executed opinions addressed
to the Administrative Agent and each Lender of counsel to the Domestic Loan
Parties addressing such matters as the Administrative Agent shall reasonably
request;

(g)the representations and warranties made by each Loan Party in Section 4
hereof are true and correct as of the date hereof; and

(h)no Event of Default shall have occurred and be continuing.

4.Representations and Warranties.  The Lead Borrower and the other Loan Parties
each represents and warrants to the Lenders that the representations and
warranties of the Loan Parties contained in Article V of the Credit Agreement or
any other Loan Document, or which are contained in any document furnished at any
time under or in connection herewith or therewith, are true and correct in all
material respects on the date hereof, except that any representation and
warranty that is qualified as to “materiality,” “Material Adverse Effect” or
similar language shall be true and correct in all respects on the date hereof;
provided that (a) to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be true and
correct as of such earlier date, (b) the representations and warranties
contained in Sections 5.05(a) and (b) of the Credit Agreement shall be deemed to
refer to the most recent statements furnished pursuant to Sections 6.01(a) and
(b) of the Credit Agreement, respectively and (c) each reference in the Credit
Agreement to “this Agreement” or the “Credit Agreement” or the like shall
include reference to this Third Amendment and the Credit Agreement as amended
hereby.

5.Effect on Loan Documents.  The Credit Agreement (as amended hereby) and the
other Loan Documents shall be and remain in full force and effect in accordance
with their terms and hereby are ratified and confirmed in all respects.  Except
as expressly set forth herein the

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execution, delivery, and performance of this Third Amendment shall not operate
as a waiver or an amendment of any right, power, or remedy of the Administrative
Agent or any Lender under the Credit Agreement or any other Loan Document, as in
effect prior to the date hereof.  Each of the Loan Parties hereby ratifies and
confirms in all respects all of its obligations under the Credit Agreement (as
amended hereby) and the other Loan Documents to which it is a party.  For
purposes of clarity, the provisions of Section 2.15 (Increase in Revolving
Credit Facility) and Section 2.16 (Increase in Term Loan Facility) shall,
notwithstanding the $100,000,000 increase in the Revolving Credit Commitment and
the $25,000,000 increase in the Term Loans requested by the Borrowers and given
effect by this Third Amendment, continue to be effective and available to the
Borrowers in an amount not exceeding $125,000,000 (in accordance with the terms
of the Credit Agreement), following consummation of the transactions
contemplated by this Third Amendment.  This Third Amendment shall serve as the
“Incremental Amendment” referred to in Section 2.16(d) of the Credit Agreement.

6.No Novation; Entire Agreement.  This Third Amendment evidences solely the
amendment of the terms and provisions of the obligations of the Lead Borrower
and the other Loan Parties under the Loan Documents and is not a novation or
discharge thereof.  There are no other understandings, express or implied, among
the Lead Borrower, the other Loan Parties, the Administrative Agent and the
Lenders regarding the subject matter hereof or thereof.

7.Choice of Law.  This Third Amendment shall be governed by, and construed in
accordance with, the laws of the State of New York.

8.Counterparts; Facsimile Execution.  This Third Amendment may be executed in
any number of counterparts and by different parties and separate counterparts,
each of which when so executed and delivered shall be deemed an original, and
all of which, when taken together, shall constitute one and the same
instrument.  Delivery of an executed counterpart of a signature page to this
Third Amendment by facsimile shall be as effective as delivery of a manually
executed counterpart of this Third Amendment.  

9.Construction.  This Third Amendment is a Loan Document.  This Third Amendment
and the Credit Agreement shall be construed collectively and in the event that
any term, provision or condition of any of such documents is inconsistent with
or contradictory to any term, provision or condition of any other such document,
the terms, provisions and conditions of this Third Amendment shall supersede and
control the terms, provisions and conditions of the Credit Agreement.  Upon and
after the effectiveness of this Third Amendment, each reference in the Credit
Agreement to “this Agreement”, “hereunder”, “herein”, “hereof” or words of like
import referring to the Credit Agreement, and each reference in the other Loan
Documents to “the Credit Agreement”, “thereunder”, “therein”, “thereof” or words
of like import referring to the Credit Agreement, shall mean and be a reference
to the Credit Agreement as modified and amended hereby.

[Remainder of Page Intentionally Left Blank]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment to be
executed as of the date first above written.

BORROWERS:

NOVANTA CORPORATION

 

 

By:  /s/ Robert J. Buckley

Name:  Robert Buckley

Title: Chief Financial Officer

 

NOVANTA UK INVESTMENTS HOLDING LIMITED

 

 

By:  /s/ Robert J. Buckley

Name:  Robert Buckley

Title: Director

 

NOVANTA EUROPE GmbH

 

 

By:  /s/ Robert J. Buckley

Name:  Robert Buckley

Title:    Managing Director

 

 

HOLDINGS:

NOVANTA INC.

 

 

By:  /s/ Robert J. Buckley

Name:  Robert Buckley

Title: Chief Financial Officer

 

 

OTHER GUARANTORS:

NOVANTA TECHNOLOGIES UK LIMITED

 

 

By:  /s/ Robert J. Buckley

Name:  Robert Buckley

Title: Director

 

 

 

[Third Amendment to Second A&R Credit Agreement]

 

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JADAK LLC

 

 

By:  /s/ Robert J. Buckley

Name:  Robert Buckley

Title: Chief Financial Officer

 

[Third Amendment to Second A&R Credit Agreement]

 

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EXCEL TECHNOLOGY INC.

 

 

By:  /s/ Robert J. Buckley

Name:  Robert Buckley

Title: Secretary

 

 

NDS SURGICAL IMAGING LLC

 

 

By:  /s/ Robert J. Buckley

Name:  Robert Buckley

Title: President

[Third Amendment to Second A&R Credit Agreement]

 

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bank of america, n.a., as Administrative Agent

 

 

By: /s/ Mollie S. Canup

Name:  Mollie S. Canup

Title:    Vice President

[Third Amendment to Second A&R Credit Agreement]

 

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bank of america, n.a., as a Lender, L/C Issuer and Swing Line Lender

 

 

By:  /s/ John F. Lynch

Name:  John F. Lynch

Title:  Senior Vice President

 

[Third Amendment to Second A&R Credit Agreement]

 

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JPMORGAN CHASE BANK, N.A., as a Lender

 

 

By: /s/ Peter M. Killea

Name:  Peter M. Killea

Title:    Executive Director

 

[Third Amendment to Second A&R Credit Agreement]

 

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WELLS FARGO BANK, NATIONAL ASSOCIATION, as a Lender

 

 

By:  /s/ Dan Grondin

Name:  Dan Grondin

Title:    Senior Vice President

 

 

 

[Third Amendment to Second A&R Credit Agreement]

 

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SILICON VALLEY BANK, as a Lender

 

 

By:  /s/ Frank Groccia

Name:  Frank Groccia

Title:    Vice President

[Third Amendment to Second A&R Credit Agreement]

 

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TD BANK, N.A., as a Lender

 

 

By:  /s/ William F. Granchelli

Name:  William F. Granchelli

Title:    Senior Vice President

[Third Amendment to Second A&R Credit Agreement]

 

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BANK OF MONTREAL, as a Lender

 

 

By:  /s/ Patrick Hartweger

Name: Patrick Hartweger

Title:  Managing Director

 

 

 

[Third Amendment to Second A&R Credit Agreement]

 

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BANK OF MONTREAL, London Branch, as a Lender

 

 

By:  /s/ Anthony Ebdon, /s/ Scott Matthews

Name:  Anthony Ebdon, Scott Matthews

Title:   Managing Directors

[Third Amendment to Second A&R Credit Agreement]

 

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HSBC BANK USA, NATIONAL ASSOCIATION, as a Lender

 

 

By:  /s/ Frank M. Eassa

Name:  Frank M. Eassa

Title:  SVP Corporate Banking

 

[Third Amendment to Second A&R Credit Agreement]

 

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Annex I

 

SCHEDULE 2.01

COMMITMENTS
AND APPLICABLE PERCENTAGES

 

 

 

Term Commitments

Revolving Credit Commitments

Lender

Commitment

Applicable Percentage

Commitment

Applicable Percentage

Bank of America, N.A.

$15,808,270.68

17.443609022%

$56,691,729.32

17.443609022%

JPMorgan Chase Bank, N.A.

$15,808,270.68

17.443609022%

$56,691,729.32

17.443609022%

Wells Fargo Bank, National Association

$15,808,270.68

17.443609022%

$56,691,729.32

17.443609022%

Bank of Montreal

$13,082,706.77

14.436090229%

$46,917,293.23

14.436090225%

Silicon Valley Bank

$10,575,187.97

11.669172932%

$37,924,812.03

11.669172932%

TD Bank, N.A.

$10,575,187.97

11.669172932%

$37,924,812.03

11.669172932%

HSBC Bank USA, N.A.

$8,967,105.25

9.894736828%

$32,157,894.75

9.894736846%

Total

$90,625,000.00

100.000000000%

$325,000,000.00

100.000000000%