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Silicon Valley Bank

EXHIBIT 10.53

 

Amendment to Loan Documents

 

Borrower:   APPLIED IMAGING CORP.

Address:   2380 Walsh Avenue

                 Santa Clara, CA 95051

 

Dated as of March 31, 2004

 

THIS AMENDMENT TO LOAN DOCUMENTS is entered into between Silicon Valley Bank
(“Silicon”) and the borrower named above (“Borrower”).

 

Silicon and Borrower hereby agree to amend the Loan and Security Agreement
between them, dated September 28, 2001 (as amended, restated, supplemented, or
otherwise modified from time to time, the “Loan Agreement”), as follows,
effective as of the date hereof. (Capitalized terms used but not defined in this
Amendment shall have the meanings set forth in the Loan Agreement.)

 

1.        Extension of Maturity Date.    Section 4 of the Schedule to Loan
Agreement hereby is amended and restated in its entirety to read as follows:

 

4.  MATURITY DATE

(Section 6.1):            March 31, 2005.

 

2.        Modification of TNW Base Amount and TNW Capital Increase.    The
portion of Section 5 of the Schedule to Loan Agreement that currently reads as
follows:

 

 

The term “TNW Base Amount” means, as of any date of determination, the amount
set forth below corresponding to the time period set forth below:

 

 

(A) during the period commencing on March 1, 2004 and ending on March 31, 2004,
$1,000,000;

 

 

(B) from and after April 1, 2004, such amounts as are established by Silicon in
its good faith business judgment based on the Additional Projections (defined
below).

 

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  Amendment to Loan Documents    

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The term “TNW Capital Increase” means, as of any date of determination, the
greater of (a) $-0- and (b) 50% of all consideration (if any) received from and
after March 1, 2004 for equity securities and subordinated debt of the Borrower.
In no event shall the amount of the TNW Capital Increase be decreased.

 

 

Borrower and Silicon hereby acknowledge and agree that, on March 19, 2004,
Borrower delivered to Silicon a set of financial projections with respect to the
projected financial condition of Borrower for each month through the end of the
month during which the Maturity Date (as set forth in Section 4 of this
Schedule) is scheduled to occur, which projections Silicon will use in
connection with Silicon’s establishing (in its good faith business judgment)
financial covenant levels for April 2004 and each month thereafter with respect
to Section 5 of this Schedule (the “Additional Projections”). Borrower hereby
acknowledges and agrees that: (x) the information in the Additional Projections
as required above is to be used by the Silicon in order to establish certain
financial covenant levels, with respect to Section 5 of this Schedule, for later
periods during the term of this Agreement; (y) such a process introduces
uncertainty as to the amounts required for Borrower’s financial covenant
compliance in the future; and (z) regardless of any such uncertainty, however,
Borrower knowingly and without reservation agrees to the foregoing procedure and
fully understands that Events of Default may arise from Borrower’s
non-compliance with such later-established amounts.

 

, hereby is amended and restated in its entirety to read as follows:

 

 

The term “TNW Base Amount” means, as of any date of determination, the amount
set forth below corresponding to the time period set forth below [amounts set
forth below in pointed brackets (< $ > are negative)]:

 

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Silicon Valley Bank

  Amendment to Loan Documents    

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(A) during the period commencing on March 1, 2004 and ending on March 31, 2004,
$1,000,000.00;

 

 

(B) during the period commencing on April 1, 2004 and ending on April 30, 2004,
$1.00;

 

 

(C) during the period commencing on May 1, 2004 and ending on May 31, 2004,
<$400,000.00>;

 

 

(D) during the period commencing on June 1, 2004 and ending on June 30, 2004,
$100,000.00;

 

 

(E) during the period commencing on July 1, 2004 and ending on July 31, 2004,
$1.00;

 

 

(F) during the period commencing on August 1, 2004 and ending on August 31,
2004, <$500,000.00>;

 

 

(G) during the period commencing on September 1, 2004 and ending on September
30, 2004, $500,000.00;

 

 

(H) during the period commencing on October 1, 2004 and ending on October 31,
2004, $1.00;

 

 

(I) during the period commencing on November 1, 2004 and ending on November 30,
2004, <$400,000.00>;

 

 

(J) during the period commencing on December 1, 2004 and ending on December 31,
2004, $500,000.00;

 

 

(K) during the period commencing on January 1, 2005 and ending on January 31,
2005, $200,000.00;

 

 

(L) during the period commencing on February 1, 2005 and ending on February 28,
2005, <$100,000.00>;

 

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(M) during the period commencing on March 1, 2005 and ending on March 31, 2005,
$500,000.00.

 

 

The term “TNW Capital Increase” means, as of any date of determination, the
greater of (a) $-0- and (b) 50% of all consideration (if any) received from and
after March 1, 2004 for equity securities and subordinated debt of the Borrower.
In no event shall the amount of the TNW Capital Increase be decreased.

 

3.        Fee.    In consideration for Silicon entering into this Amendment,
Borrower shall pay Silicon a fee of $17,000 concurrently with the execution and
delivery of this Amendment, which fee shall be non-refundable and in addition to
all interest and other fees payable to Silicon under the Loan Documents. Silicon
is authorized to charge said fee to Borrower’s loan account.

 

4.        Representations True.    Borrower represents and warrants to Silicon
that all representations and warranties set forth in the Loan Agreement, as
amended hereby, are true and correct.

 

[remainder of page intentionally left blank; signature page follows]

 

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5.        General Provisions.    This Amendment, the Loan Agreement, any prior
written amendments to the Loan Agreement signed by Silicon and Borrower, and the
other written documents and agreements between Silicon and Borrower set forth in
full all of the representations and agreements of the parties with respect to
the subject matter hereof and supersede all prior discussions, representations,
agreements and understandings between the parties with respect to the subject
hereof. Except as herein expressly amended, all of the terms and provisions of
the Loan Agreement, and all other documents and agreements between Silicon and
Borrower shall continue in full force and effect and the same are hereby
ratified and confirmed.

 

Borrower:

 

APPLIED IMAGING CORP.

     

Silicon:

 

SILICON VALLEY BANK

By  

          /s/ Carl Hull

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      By  

          /s/ Chitra Suriyanarayanan

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            President or Vice President       Title  

        Account Manager

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By  

          /s/ Barry Hotchkies

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                        Secretary or Ass’t Secretary            

 

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