Document:

ex10-2.htm

     

     

    Exhibit
10.2

     

    
      REVOLVING
LINE OF CREDIT NOTE

      

       

       

      
        
          	
                  $50,000,000.00

                	
                  West
      Covina, California

                
	 
    	
                  March 26, 2008

                

        

      

      

      FOR VALUE RECEIVED, the undersigned
EMPLOYERS HOLDINGS, INC. (“Borrower”) promises to pay to
the order of WELLS FARGO BANK, NATIONAL ASSOCIATION (“Bank”) at its office at San
Gabriel Valley RCBO, 1000 Lakes Drive, Suite #250, West Covina,
CA  91790, or at such other place as the holder hereof may designate,
in lawful money of the United States of America and in immediately available
funds, the principal sum of Fifty Million Dollars ($50,000,000.00), or so much
thereof as may be advanced and be outstanding, with interest thereon, to be
computed on each advance from the date of its disbursement as set forth
herein.

      

      I.    DEFINITIONS:

      

      As used herein, the following terms
shall have the meanings set forth after each, and any other term defined in this
Note shall have the meaning set forth at the place defined:

      

      (a)    “Business Day” means any day
except a Saturday, Sunday or any other day on which commercial banks in Nevada
are authorized or required by law to close.

      

      (b)    “Fixed Rate Term” means a
period commencing on a Business Day and continuing for 1, 2, 3 or 6 months, as
designated by Borrower, during which all or a portion of the outstanding
principal balance of this Note bears interest determined in relation to LIBOR;
provided however, that no Fixed Rate Term may be selected for a principal amount
less than One Hundred Thousand Dollars ($100,000.00); and provided further, that
no Fixed Rate Term shall extend beyond the scheduled maturity date
hereof.  If any Fixed Rate Term would end on a day which is not a
Business Day, then such Fixed Rate Term shall be extended to the next succeeding
Business Day.

      

      (c)    “LIBOR” means the rate per
annum (rounded upward, if necessary, to the nearest whole 1/8 of 1%) and
determined pursuant to the following formula:

      

      
        	
                LIBOR
      =

              	
                Base
      LIBOR

              	 
    
	 
    	
                100% -
      LIBOR Reserve Percentage

              	 
    

      

      

      (i)    “Base LIBOR” means the rate
per annum for United States dollar deposits quoted by Bank as the Inter-Bank
Market Offered Rate, with the understanding that such rate is quoted by Bank for
the purpose of calculating effective rates of interest for loans making
reference thereto, on the first day of a Fixed Rate Term for delivery of funds
on said date for a period of time approximately equal to the number of days in
such Fixed Rate Term and in an amount approximately equal to the principal
amount to which such Fixed Rate Term applies.  Borrower understands
and agrees that Bank may base its quotation of the Inter-Bank Market Offered
Rate upon such offers or other market indicators of the Inter-Bank Market as
Bank in its discretion deems appropriate including, but not limited to, the rate
offered for U.S. dollar deposits on the London Inter-Bank Market.

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      (ii)    “LIBOR Reserve Percentage”
means the reserve percentage prescribed by the Board of Governors of the Federal
Reserve System (or any successor) for “Eurocurrency Liabilities” (as defined in
Regulation D of the Federal Reserve Board, as amended), adjusted by Bank for
expected changes in such reserve percentage during the applicable Fixed Rate
Term.

      

      (d)    “Prime Rate” means at any time
the rate of interest most recently announced within Bank at its principal office
as its Prime Rate, with the understanding that the Prime Rate is one of Bank’s
base rates and serves as the basis upon which effective rates of interest are
calculated for those loans making reference thereto, and is evidenced by the
recording thereof after its announcement in such internal publication or
publications as Bank may designate.

      

      II.   INTEREST:

      

      (a)    Interest.  The
outstanding principal balance of this Note shall bear interest (computed on the
basis of a 360-day year, actual days elapsed) either (i) at a fluctuating rate
per annum equal to the Prime Rate in effect from time to time, or (ii) at a
fixed rate per annum determined by Bank to be three tenths percent (0.30%) above
LIBOR in effect on the first day of the applicable Fixed Rate
Term.  When interest is determined in relation to the Prime Rate, each
change in the rate of interest hereunder shall become effective on the date each
Prime Rate change is announced within Bank.  With respect to each
LIBOR selection hereunder, Bank is hereby authorized to note the date, principal
amount, interest rate and Fixed Rate Term applicable thereto and any payments
made thereon on Bank’s books and records (either manually or by electronic
entry) and/or on any schedule attached to this Note, which notations shall be
prima facie evidence of the accuracy of the information noted.

      

      (b)    Selection of Interest Rate
Options.  At any time any portion of this Note bears interest
determined in relation to LIBOR, it may be continued by Borrower at the end of
the Fixed Rate Term applicable thereto so that all or a portion thereof bears
interest determined in relation to the Prime Rate or to LIBOR for a new Fixed
Rate Term designated by Borrower.  At any time any portion of this
Note bears interest determined in relation to the Prime Rate, Borrower may
convert all or a portion thereof so that it bears interest determined in
relation to LIBOR for a Fixed Rate Term designated by Borrower.  At
such time as Borrower requests an advance hereunder or wishes to select a LIBOR
option for all or a portion of the outstanding principal balance hereof, and at
the end of each Fixed Rate Term, Borrower shall give Bank notice specifying: (i)
the interest rate option selected by Borrower; (ii) the principal amount
subject thereto; and (iii) for each LIBOR selection, the length of the
applicable Fixed Rate Term. Any such notice may be given by telephone (or such
other electronic method as Bank may permit) so long as, with respect to each
LIBOR selection, (A) if requested by Bank, Borrower provides to Bank written
confirmation thereof not later than three (3) Business Days after such notice is
given, and (B) such notice is given to Bank prior to 10:00 a.m. on the first day
of the Fixed Rate Term, or at a later time during any Business Day if Bank, at
its sole option but without obligation to do so, accepts Borrower’s notice and
quotes a fixed rate to Borrower.  If Borrower does not immediately
accept a fixed rate when quoted by Bank, the quoted rate shall 

       

      
        
          
          

        

        
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      expire and
any subsequent LIBOR request from Borrower shall be subject to a redetermination
by Bank of the applicable fixed rate.  If no specific designation of
interest is made at the time any advance is requested hereunder or at the end of
any Fixed Rate Term, Borrower shall be deemed to have made a Prime Rate interest
selection for such advance or the principal amount to which such Fixed Rate Term
applied.

      

      (c)    Taxes and
Regulatory Costs.  Borrower shall pay to Bank
immediately upon demand, in addition to any other amounts due or to become due
hereunder, any and all (i) withholdings, interest equalization taxes, stamp
taxes or other taxes (except income and franchise taxes) imposed by any domestic
or foreign governmental authority and related in any manner to LIBOR, and (ii)
future, supplemental, emergency or other changes in the LIBOR Reserve
Percentage, assessment rates imposed by the Federal Deposit Insurance
Corporation, or similar requirements or costs imposed by any domestic or foreign
governmental authority or resulting from compliance by Bank with any request or
directive (whether or not having the force of law) from any central bank or
other governmental authority and related in any manner to LIBOR to the extent
they are not included in the calculation of LIBOR.  In determining
which of the foregoing are attributable to any LIBOR option available to
Borrower hereunder, any reasonable allocation made by Bank among its operations
shall be conclusive and binding upon Borrower.

      

      (d)    Payment of
Interest.  Interest accrued on this Note shall be payable on
the first day of each month, commencing May 1, 2008.

      

      (e)    Default
Interest.  From and after the maturity date of this Note, or
such earlier date as all principal owing hereunder becomes due and payable by
acceleration or otherwise, the outstanding principal balance of this Note shall
bear interest until paid in full at an increased rate per annum (computed on the
basis of a 360-day year, actual days elapsed) equal to four percent (4%) above
the rate of interest from time to time applicable to this Note.

      

      III.       
BORROWING AND REPAYMENT:

      

      (a)    Borrowing and
Repayment.  Borrower may from time to time during the term of
this Note borrow, partially or wholly repay its outstanding borrowings, and
reborrow, subject to all of the limitations, terms and conditions of this Note
and of any document executed in connection with or governing this Note; provided
however, that the total outstanding borrowings under this Note shall not at any
time exceed the principal amount stated above.  The unpaid principal
balance of this obligation at any time shall be the total amounts advanced
hereunder by the holder hereof less the amount of principal payments made hereon
by or for Borrower, which balance may be endorsed hereon from time to time by
the holder.  The outstanding principal balance of this Note shall be
due and payable in full on March 26, 2011.

      

      (b)    Advances.  Advances
hereunder, to the total amount of the principal sum stated above, may be made by
the holder at the written request (including by telefacsimile) of two persons
acting together, one being either Ric Yocke or Cynthia Morrison, and the other
being either Douglas Dirks or Lenard Ormsby, who are authorized to request
advances and direct the disposition of any advances until written notice of the
revocation of such authority is received by the holder at the office designated
above.  The holder may rely in good faith upon any such 

       

      
        
          
          

        

        
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      request
delivered to it bearing signatures that purport to be signatures of the
aforementioned persons and shall be under no duty to verify the authenticity of
any such signatures.  Further, the holder shall have no obligation to
determine whether any person requesting an advance is or has been authorized by
Borrower pursuant to its constituent documents.

      

      (c)    Application of
Payments.  Each payment made on this Note shall be credited
first, to any interest then due and second, to the outstanding principal balance
hereof.  All payments credited to principal shall be applied first, to
the outstanding principal balance of this Note which bears interest determined
in relation to the Prime Rate, if any, and second, to the outstanding principal
balance of this Note which bears interest determined in relation to LIBOR, with
such payments applied to the oldest Fixed Rate Term first.

      

      IV.      
PREPAYMENT:

      

      (a)    Prime
Rate.  Borrower may prepay principal on any portion of this
Note which bears interest determined in relation to the Prime Rate at any time,
in any amount and without penalty.

      

      (b)    LIBOR.  Borrower
may prepay principal on any portion of this Note which bears interest determined
in relation to LIBOR at any time and in the minimum amount of One Hundred
Thousand Dollars ($100,000.00); provided however, that if the outstanding
principal balance of such portion of this Note is less than said amount, the
minimum prepayment amount shall be the entire outstanding principal balance
thereof.  In consideration of Bank providing this prepayment option to
Borrower, or if any such portion of this Note shall become due and payable at
any time prior to the last day of the Fixed Rate Term applicable thereto by
acceleration or otherwise, Borrower shall pay to Bank immediately upon demand a
fee which is the sum of the discounted monthly differences for each month from
the month of prepayment through the month in which such Fixed Rate Term matures,
calculated as follows for each such month:

       

      
        (i)      Determine the amount
of interest which would have accrued each month on the amount prepaid at the
interest rate applicable to such amount had it remained outstanding until the
last day of the Fixed Rate Term applicable thereto.

         

        (ii)     Subtract from the
amount determined in (i) above the amount of interest which would have accrued
for the same month on the amount prepaid for the remaining term of such Fixed
Rate Term at LIBOR in effect on the date of prepayment for new loans made for
such term and in a principal amount equal to the amount prepaid.

         

        
          (iii)    If the result
obtained in (ii) for any month is greater than zero, discount that difference by
LIBOR used in (ii) above.

        

         

         

        
          
            
            

          

          
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        Borrower
acknowledges that prepayment of such amount may result in Bank incurring
additional costs, expenses and/or liabilities, and that it is difficult to
ascertain the full extent of such costs, expenses and/or
liabilities.  Borrower, therefore, agrees to pay the above-described
prepayment fee and agrees that said amount represents a reasonable estimate of
the prepayment costs, expenses and/or liabilities of Bank.  If
Borrower fails to pay any prepayment fee when due, the amount of such prepayment
fee shall thereafter bear interest until paid at a rate per annum two percent
(2.00%) above the Prime Rate in effect from time to time (computed on the basis
of a 360-day year, actual days elapsed).

      

      

      V.        EVENTS
OF DEFAULT:

      

      This Note is made pursuant to and is
subject to the terms and conditions of that certain Credit Agreement between
Borrower and Bank dated as of March 26, 2008, as amended from time to time
(the “Credit
Agreement”).  Any default in the payment or performance of any
obligation under this Note, or any defined event of default under the Credit
Agreement, shall constitute an “Event of Default” under this
Note.

      

      VI.      
MISCELLANEOUS:

      

      (a)    Remedies.  Upon
the occurrence of any Event of Default, the holder of this Note, at the holder’s
option, may declare all sums of principal and interest outstanding hereunder to
be immediately due and payable without presentment, demand, notice of
nonperformance, notice of protest, protest or notice of dishonor, all of which
are expressly waived by Borrower, and the obligation, if any, of the holder to
extend any further credit hereunder shall immediately cease and
terminate.  Borrower shall pay to the holder immediately upon demand
the full amount of all payments, advances, charges, costs and expenses,
including reasonable attorneys’ fees (to include only outside counsel fees),
expended or incurred by the holder in connection with the enforcement of the
holder's rights and/or the collection of any amounts which become due to the
holder under this Note, and the prosecution or defense of any action in any way
related to this Note, including without limitation, any action for declaratory
relief, whether incurred at the trial or appellate level, in an arbitration
proceeding or otherwise, and including any of the foregoing incurred in
connection with any bankruptcy proceeding (including without limitation, any
adversary proceeding, contested matter or motion brought by Bank or any other
person) relating to Borrower or any other person or entity.

      

      (b)    Obligations Joint and
Several.  Should more than one person or entity sign this Note
as a Borrower, the obligations of each such Borrower shall be joint and
several.

      

      (c)    Governing
Law.  This Note shall be governed by and construed in
accordance with the laws of the State of Nevada.

      

      [Signature
to follow on next page]

       

       

      
        
          
          

        

        
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      IN WITNESS WHEREOF, the undersigned has
executed this Note as of the date first written above.

      

       

      
         

         

        
          
            	
                    EMPLOYERS
      HOLDINGS, INC.

                  	 
    	
                     

                  
	 
    	 
    	 
    
	By:  	
                       /s/ William
      E. Yocke

                  	 
    	   	
                     

                  	
                     

                  
	
                    Name:      
      William E. Yocke

                  	 
    	
                  
	
                    Title:    EVP,
      Chief Financial Officerex10_24.htm

     

    
      

      

    

    Exhibit
10.24

     

     

    FIRST
AMENDMENT TO

    EMPLOYMENT
AGREEMENT

     

     

    THIS
FIRST AMENDMENT (this “Amendment“) is entered into between Accellent Inc. (the
“Company”), and Robert E. Kirby (the “Executive”) under the following
circumstances.

     

     

    WHEREAS,
the Company and the Executive entered into an Employment Agreement on October 9,
2007 (the “Employment Agreement”); and

     

     

    WHEREAS,
the parties would like to make certain changes to the terms of the Employment
Agreement;

     

     

    NOW
THEREFORE, the Executive agrees with the Company, in consideration for good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and accepted, to amend the Employment Agreement as follows,
effective as of the date this Amendment is executed as written
below:

     

     

    1.
Section 5 (Equity Arrangements) is hereby amended by inserting the phrase “(the
“Investment Amount”)” after the number “650,000” as it appears in the first
sentence thereof.

     

     

    2.
Section 5 (Equity Arrangements) is hereby amended by adding the following
sentence after the first sentence thereof:

     

     

    “In the
event that Executive has not paid the full Investment Amount to the Company as
of the time that Executive’s Annual Bonus for either of the fiscal years ended
December 31, 2007 and 2008 becomes payable, then, notwithstanding the provisions
of Section 4 and instead of the payment of such Annual Bonus in cash, the
Company shall issue to Executive, on the date the applicable Annual Bonus could
have been paid in cash under the applicable bonus plan, a number of fully vested
shares of Common Stock having an aggregate Fair Market Value on such date equal
to the Annual Bonus for such fiscal year.

     

     

    In
connection with the foregoing, no later than April 30, 2008, Executive shall pay
to the Company in cash an amount equal to $137,645, which equals the excess of
(i) the Investment Amount over (ii) the sum of (x) $17,355, which represents the
amount that the Company will actually pay to Executive as an Annual Bonus in
respect of the Company’s fiscal year ending December 31, 2007 plus (y) $495,000,
which represents the amount the Company assumes that it will pay to Executive as
an Annual Bonus in respect of the Company’s fiscal year ending December 31, 2008
(the “Assumed 2008 Bonus”), and the Company shall issue to Executive in exchange
therefor a number of shares of Common Stock having an aggregate Fair Market
Value on the date of such issuance equal to such payment.

     

     

    Notwithstanding
the foregoing, if the Assumed 2008 Bonus exceeds the amount actually paid to
Executive as an Annual Bonus in respect of the Company’s fiscal year ending
December 31, 2008 (the “Actual 2008 Bonus”), then Executive shall pay to the
Company in cash, no later than March 31, 2009, an amount equal to the excess of
(x) the Assumed 2008 Bonus over (y) the Actual 2008 Bonus, and the Company shall
issue to Executive in exchange therefor a number of shares of Common Stock
having an aggregate Fair Market Value on the date of such issuance equal to such
payment. However, if the Actual 2008 Bonus exceeds the Assumed 2008 Bonus, then
the Company shall pay to Executive an amount equal to the excess of (x) the
Actual 2008 Bonus over (y) the Assumed 2008 Bonus in accordance with Section 4
and pursuant to the Company’s 2008 annual incentive plan.”

     

     

    1 of
3

     

     

    3.
Section 5 (Equity Arrangements) is hereby amended by substituting the number
“116,667” for “87,500” as it appears in the fourth sentence
thereof.

     

     

    4.
Section 8(a) (Termination for Cause or Resignation without Good Reason) is
hereby amended by adding the following subparagraph at the end
thereof:

     

     

    “(iv) If,
prior to March 31, 2009, Executive’s employment is terminated by the Company for
Cause, or if Executive resigns without Good Reason (other than due to death or
Disability), then Executive shall pay to the Company in cash, on or before the
tenth (10th) business day following the date of termination, an amount equal to
the Assumed 2008 Bonus and the Company shall issue to Executive in exchange
therefor a number of shares of Common Stock having an aggregate Fair Market
Value equal to such Assumed 2008 Bonus.”

     

     

    5. Except
as is provided in this Amendment, the Employment Agreement shall remain
unchanged and continue in full force and effect.

     

     

    To
acknowledge your agreement to the terms and conditions of this Amendment, please
sign below and return one copy to Patricia McCall by no later than March 31,
2008.

     

     

    2 of
3

     

     

    

     

     

    IN
WITNESS WHEREOF, the parties hereto have executed this Amendment as of the 31st
day of March, 2008.

     

    
      	 
      	
              ACCELLENT
      INC.

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              By:

            	 
      /s/ Jeremy A. Friedman
	 
      	 
      	 
      
	 
      	
              Name:              
      Jeremy A. Friedman

            
	 
      	
              Title:                
      Chief Financial Officer

            
	 
      	 
      	 
      
	 
      	 
      	 
      
	 
      	
              Executive:

            	 
      /s/  Robert E. Kirby
	 
      	 
      	
                       Robert
      E. Kirby

            

    

     

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