Document:

Exhibit 10.1

Exhibit 10.1

AMENDMENT NO. 1 TO SECOND AMENDED AND

RESTATED CREDIT AGREEMENT

THIS AMENDMENT NO. 1 TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) is entered
into as of the
 _____ 

day of August, 2007, by and among (a) REAL MEX RESTAURANTS, INC., formerly known
as Acapulco Acquisition Corp., a Delaware corporation (“Real Mex”), ACAPULCO RESTAURANTS, INC., a
Delaware corporation (“ARI”), EL TORITO FRANCHISING COMPANY, a Delaware corporation (“ETFI”), EL
TORITO RESTAURANTS, INC., a Delaware corporation (“ETRI”), TARV, INC., a California corporation
(“TARV”), ACAPULCO RESTAURANT OF VENTURA, INC., a California corporation (“ARV”), ACAPULCO
RESTAURANT OF WESTWOOD, INC., a California corporation (“ARW”), ACAPULCO MARK CORP., a Delaware
corporation (“AMC”), MURRAY PACIFIC, a California corporation (“MP”), ALA DESIGN, INC., a
California corporation (“ALAD”), REAL MEX FOODS, INC., formerly known as ALA Foods, Inc., a
California corporation (“RMF”), ACAPULCO RESTAURANT OF DOWNEY, INC., a California corporation
(“ARD”), ACAPULCO RESTAURANT OF MORENO VALLEY, INC., a California corporation (“AMV”), EL PASO
CANTINA, INC., a California corporation (“EPC”), CKR ACQUISITION CORP., a Delaware corporation
(“CKR”), CHEVYS RESTAURANTS, LLC, a Delaware limited liability company (“Chevys”; and collectively
with Real Mex, ARI, ETFI, ETRI, TARV, ARV, ARW, AMC, MP, ALAD, RMF, ARD, AMV, EPC and CKR, the
“Borrowers”), (b) the lending institutions party hereto as Lenders, and (c) GENERAL ELECTRIC
CAPITAL CORPORATION as agent and administrative agent (the “Agent”) for itself and such lending
institutions.

RECITALS

WHEREAS, the Borrowers, Lenders, and Agent entered into a Second Amended and Restated
Revolving Credit Agreement, dated as of January 29, 2007 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”; unless otherwise defined herein,
capitalized terms used herein that are not otherwise defined herein shall have the respective
meanings assigned to such terms in the Credit Agreement);

WHEREAS, Borrowers have requested that the Agent and the Majority Lenders amend certain
provisions of the Credit Agreement; and

WHEREAS, The Agent and Majority Lenders agree to amend certain provisions of the Credit
Agreement upon the terms and subject to conditions set forth herein.

 

 

 

NOW THEREFORE, in the consideration of the premises and the mutual agreements set forth, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

1. Amendments. Borrowers, Agent and the Majority Lenders hereby agree that Section
11.3 of the Credit Agreement is hereby amended and restated to read in its entirety as follows:

“Cash Flow Ratio. The Borrowers will not permit the Cash Flow Ratio, determined for
any Measurement Period ending during any period, or ending on the last day of the fiscal quarter
which ends nearest to the calendar quarter end date, described in the table below, to be less than
the ratio set forth opposite such period in such table:

	 	 	 
	Period	 	 
	(inclusive of end dates)	 	Ratio
	 
	 	 
	January 1, 2006-June 30, 2007

	 	1.70 to 1.00
	January 1, 2008 and thereafter

	 	1.70 to 1.00

For the avoidance of doubt, compliance with the Cash Flow Ratio will not be tested for the
fiscal quarters ending September 20, 2007 and December 31, 2007.”

2. Conditions. The effectiveness of this Amendment is subject to the execution and
delivery to the Agent by the Borrowers named as signatories hereto and the Majority Lenders of
their respective counterparts of the Amendments.

3. Representations and Warranties. The Borrowers represent and warrant to the Lenders
and the Agents as follows.

(a) Except where a failure thereof would not have a Materially Adverse Effect, the execution,
delivery and performance of this Amendment (i) is within the corporate authority of such Person,
(ii) has been duly authorized by all necessary corporate proceedings, (iii) does not conflict with
or result in any breach of contravention of any provision of law, statute, rule or regulation to
which any of the Borrowers of any of their Subsidiaries is subject or any judgment, order, writ,
injunction, license of permit applicable to any of the Borrowers or any of their Subsidiaries and
(iv) does not conflict with any provision of the corporate charter of bylaws of, or any agreement
or other instrument binding upon, any of the Borrowers or any of their Subsidiaries.

(b) The execution and delivery of this Amendment will result in valid and legally binding
obligation of such Person enforceable against it in accordance with the respective terms and
provisions hereof and thereof, except as enforceability is limited by bankruptcy, insolvency,
reorganization, moratorium or other laws relating to or affecting generally the enforcement of
creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief is subject to the discretion of the
court before which any proceeding therefore may be brought.

 

 

 

(c) Except as set forth on Schedule 8.2 of the Credit Agreement and where a failure thereof
would not have a Materially Adverse Effect, the execution, delivery and performance by each of the
Borrowers and their Subsidiaries of the Amendment, does not require the approval or consent of, or
filing with, any governmental agency or authority other than those already obtained.

(d) Each of the representations and warranties of any of the Borrowers and their Subsidiaries
contained in the Credit Agreement, the other Loan documents or in any document or instrument
delivered pursuant to or in connection with the Credit Agreement shall be true as of the dated as
of which they were made and shall also be true at and as of the time and after giving effect to
this Amendment, with the same effect as if made at and as of that time (except to the extent of
changes resulting from transactions contemplated or permitted by the Credit Agreement and the other
Loan or Documents and changes occurring in the ordinary course of business that singly of in the
aggregate are not materially adverse, and to the extent that such representations and warranties
relate expressly to an earlier date) and except for the Specified Default no Default or Event of
Default shall have occurred and be continuing.

4. Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when so
executed and delivered shall be deemed to be an original and all of which when taken together shall
constitute but one and the same instrument.

5. Continuing Effect of the Credit Agreement. Except as expressly set forth herein,
this Agreement shall not by implication or otherwise limit, impair, constitute a waiver of, or
otherwise affect the rights and remedies of the Lenders, the Agents or the Borrowers under the
Credit Agreement and shall not alter, modify, amend or in any way affect any of the terms,
conditions, obligations, covenants or agreements contained in the Credit Agreement, all of which
are ratified and affirmed in all respects and shall continue in full force and effect. Nothing
herein shall be deemed to entitle the Borrowers to a consent to, or a waiver, amendment,
modification or other change of, any of the terms, conditions, obligations, covenants or agreements
contained in the Credit Agreement in similar or different circumstances. This Agreement shall apply
and be effective only with respect to the provisions of the Credit Agreement specifically referred
to herein. After the effectiveness of this Agreement, any reference to the Credit Agreement shall
mean the Credit Agreement as amended and modified hereby.

6. Cost and Expenses. As provide in Section 8.1 of the Credit Agreement,
Borrowers agree to reimburse Agent in connection with this Amendment for all fees, cost, and
expenses incurred by or on behalf of the Agent, including, without limitation, reasonable fees,
costs, client charges and expenses of counsel for the Agent.

 

 

 

7. Applicable Law.  THIS AMENDMENT IS A CONTRACT UNDER THE LAWS OF THE STATE OF
ILLINOIS AND SHALL FOR ALL PURPOSES BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF
SAID STATE OF ILLINOIS (EXCLUDING THE LAWS APPLICABLE TO CONFLICTS OR CHOICE OF LAW).

8. Headings. Headings herein are included herein for convenience of reference only and
shall not constitute a part hereof for any other purpose or be given any substantive effect.

9. Loan Document.  This Amendment shall constitute a Loan Document.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered by
their respective officers thereunto duly authorized as of the date first written above.

	 	 	 
	 

	 	REAL MEX RESTAURANTS, INC.
	 

	 	ACAPULCO RESTAURANTS, INC.
	 

	 	EL TORITO FRANCIHISING COMPANY
	 

	 	EL TORITO RESTAURANTS, INC.
	 

	 	TARV, INC.
	 

	 	ACAPULCO RESTAURANT OF VENTURA, INC.
	 

	 	ACAPULCO RESTAURANT OF WESTWOOD, INC.
	 

	 	ACAPULCO MARK CORP.
	 

	 	MURRAY PACIFIC
	 

	 	ALA DESIGN, INC.
	 

	 	REAL MEX FOODS, INC.
	 

	 	ACAPULCO RESTAURANT OF DOWNEY INC.
	 

	 	ACAPULCO RESTAURANT OF MORENO VALLEY INC.
	 

	 	EL PASO CANTINA, INC.
	 

	 	CKR ACQUISITION CORP.
	 

	 	CHEVYS RESTAURANTS, LLC

	 	 	 	 	 
	 	 	 
	 	/s/ Steven Tanner
 	 
	 	Steven Tanner 	 
	 	Chief Financial Officer 	 
	 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL

CORPORATION, as Agent and sole Lender

 	 
	 	/s/ Kristine Kinzle
 	 
	 	Kristine Kinzle 	 
	 	Authorized Signatoryexv10w1

EXHIBIT 10.1

Amendment 

To

Loan and Security Agreement

     THIS AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered as of June 2,
2009 by and between Silicon Valley Bank (“Bank”) and ATS Medical, Inc., a Minnesota corporation
(the “Borrower”) whose address is 3905 Annapolis Lane, Suite 105, Minneapolis, Minnesota 55447.

Recitals

     A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as
of July 28, 2004 (as amended, modified, supplemented or restated from time to time, the “Loan
Agreement”).

     B. Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

     C. Borrower has requested that Bank amend the Loan Agreement as set forth herein.

     D. Bank has 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.

          2.1 Amendment to Liquidity Ratio. A portion of Section 6.7(i) of the Loan Agreement reads as
follows:

       Commencing January 1, 2009 and each month ending thereafter:

  A ratio of (y) the sum of (1) unrestricted cash (and equivalents)
of Borrower on deposit with Bank plus (2)

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50% of Borrower’s accounts receivable arising from the sale or
lease of goods, or provision of services, in the ordinary course
of business, (z) divided by Indebtedness of Borrower to Bank for
borrowed money, of equal to or greater than 2.00 to 1.00.
Notwithstanding the foregoing, if the amount of Borrower’s
Eligible Accounts ever becomes less than 50% of Borrower’s
accounts receivable arising from the sale or lease of goods, or
provision of services, in the ordinary course of business, then
part “2” above shall be deemed to read “(2) the lesser of the
amount of Borrower’s Eligible Accounts or 50% of Borrower’s
accounts receivable arising from the sale or lease of goods, or
provision of services, in the ordinary course of business”,
unless the Bank shall consent in writing otherwise.”

The language “equal to or greater than 2.00 to 1.00” contained in said portion of Section
6.7(i) is hereby amended to read “equal to or greater than 1.40 to 1.00” for months
commencing with May 1, 2009 and each month thereafter.

          2.2 Conforming Changes to Compliance Certificate. The Bank may make such changes to the
Compliance Certificate that are required pursuant to Section 6.2(c) of the Loan Agreement as from
time to time may be necessary to conform the Compliance Certificate to any amendments that have
been or may hereinafter be made to the Loan Agreement. For purposes of illustration and not by way
of limitation, the required Liquidity Ratio as set forth in the Compliance Certificate shall be
changed to “1.40:1.00” for months commencing with May 1, 2009 and each month thereafter, to conform
with the amendment to the Liquidity Ratio being made pursuant to this Amendment.

     3. Limitation of Amendments.

          3.1 The consents and amendments set forth herein 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 Bank may now have or may have in the future under or
in connection with any Loan Document.

          3.2 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.

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

          4.1 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;

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

          4.3 The Third Restated Articles of Incorporation of ATS Medical, Inc. filed with the Minnesota
Secretary of State on June 11, 2008, a copy of which was provided to Bank via email on June 18,
2008, remain true, accurate and complete and have not been amended, supplemented or restated and
are and continue to be in full force and effect;

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

          4.5 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its 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;

          4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its 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

          4.7 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. 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.

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     6. Expenses. Without limitation on the terms of the Loan Documents, Borrower agrees to
reimburse Bank for all its costs and expenses (including reasonable attorneys’ fees) incurred in
connection with this Amendment. Bank is authorized to charge said fees, costs and expenses to
Borrower’s loan account or any of Borrower’s deposit accounts maintained with Bank.

     7. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and
delivery of this Amendment by each party hereto, and (b) Bank’s receipt of the Acknowledgment of
Amendment and Reaffirmation of Guaranty substantially in the form attached hereto as Schedule 1,
duly executed and delivered by each guarantor named therein.

[Signature page follows]

4

 

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

	 	 	 
	BANK	 	BORROWER
	 
	 	 
	Silicon Valley Bank

	 	ATS Medical, Inc.
	 
	 	 
	By:
/s/ Nick Honigman
           
	 	By:
/s/ Michael Kramer           
	
Name: Nick Honigman 

Title: Relationship Manager

	 	
Name: Michael Kramer

Title: Chief Financial Officer

 

 

Schedule 1

ACKNOWLEDGMENT OF AMENDMENT

AND REAFFIRMATION OF GUARANTY

     Section 1. Each of the undersigned guarantors hereby acknowledges and confirms that it has
reviewed and approved the terms and conditions of the Amendment to Loan and Security Agreement of
substantially even date herewith (the “Amendment”).

     Section 2. Each guarantor hereby consents to the Amendment and agrees that its guaranty
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 instrument delivered in connection herewith.

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

Dated as of June 2, 2009

	 	 	 
	3F THERAPEUTICS, INC.

	 	ATS ACQUISITION CORP.
	 
	 	 
	By:
/s/ Michael Dale            

	 	By: /s/ Michael Dale           

	
Name: Michael Dale 

Title: President

	 	
Name: Michael Dale

Title: President

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