Document:

Exhibit 10.41

 

Note Modification Agreement

This agreement is dated as of July 6, 2011 (the “Agreement Date”), by and between Mace Security Products, Inc. (the “Borrower”) and JPMorgan Chase Bank, N.A. (together with its successors and assigns, the “Bank”). The provisions of this agreement are effective on June 15, 2011 (the “Effective Date”).

WHEREAS, the Borrower executed a Line of Credit Note dated as of December 17, 2010 in the original principal amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00), (as same may have been amended or modified from time to time, the “Note”) as evidence of an extension of credit from the Bank to the Borrower, which Note has at all times been, and is now, continuously and without interruption outstanding in favor of the Bank; and,

WHEREAS, the Borrower has requested and the Bank has agreed that the Note be modified to the limited extent as hereinafter set forth in this agreement;

NOW THEREFORE, in mutual consideration of the agreements contained herein and for other good and valuable consideration, the parties agree as follows:

1.      ACCURACY OF RECITALS. The Borrower acknowledges the accuracy of the Recitals stated above.

2.      DEFINITIONS. Capitalized terms used in this agreement shall have the same meanings as in the Note, unless otherwise defined in this agreement.

3.      MODIFICATION OF NOTE.

3.1      From and after the Effective Date, the provision in the Note captioned “Promise to Pay” is hereby amended as follows:  The date on which the entire balance of unpaid principal plus accrued interest shall be due and payable immediately is hereby changed from June 15, 2011 to December 15, 2011.

3.2      Each of the Related Documents is modified to provide that it shall be a default or an event of default thereunder if the Borrower shall fail to comply with any of the covenants of the Borrower herein or if any representation or warranty by the Borrower herein or by any guarantor in any Related Documents is materially incomplete, incorrect, or misleading as of the date hereof. As used in this agreement, the “Related Documents” shall include the Note and all applications for letters of credit, loan agreements, credit agreements, reimbursement agreements, security agreements, mortgages, deeds of trust, pledge agreements, assignments, guaranties, or any other instrument or document executed in connection with the Note or in connection with any other obligations of the Borrower to the Bank.

3.3      Each reference in the Related Documents to any of the Related Documents shall be a reference to such document as modified by this agreement.

4.      RATIFICATION OF RELATED DOCUMENTS AND COLLATERAL. The Related Documents are ratified and reaffirmed by the Borrower and shall remain in full force and effect as they may be modified by this agreement. All property described as security in the Related Documents shall remain as security for the Note, as modified by this agreement, and the Liabilities under the other Related Documents.

5.      BORROWER REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants to the Bank that each of the representations and warranties made in the Note and the other Related Documents and each of the following representations and warranties are and will remain, true and correct until the later of maturity or the date on which all Liabilities evidenced by the Note are paid in full:

5.1      No default, event of default or event that would constitute a default or event of default but for the giving of notice, the lapse of time or both, has occurred and is continuing under any provision of the Note, as modified by this agreement, or any other Related Document.

 

  

  

  

5.2      No event has occurred which may in any one case or in the aggregate materially and adversely affect the financial condition, properties, business, affairs, prospects or operations of the Borrower or any guarantor or any subsidiary of the Borrower.

5.3      The Borrower has no defenses or counterclaims, offsets or adverse claims, demands or actions of any kind, personal or otherwise, that it could assert with respect to the Note or any other Liabilities.

5.4      The Note, as modified by this agreement, and the other Related Documents are the legal, valid, and binding obligations of the Borrower and the other parties, enforceable against the Borrower and other parties in accordance with their terms, except as may be limited by bankruptcy, insolvency or other laws affecting the enforcement of creditors’ rights generally and by general principles of equity.

5.5      The Borrower, other than any Borrower who is a natural person, is validly existing under the laws of the State of its formation or organization. The Borrower has the requisite power and authority to execute and deliver this agreement and to perform the obligations described in the Related Documents as modified herein. The execution and delivery of this agreement and the performance of the obligations described in the Related Documents as modified herein have been duly authorized by all requisite action by or on behalf of the Borrower. This agreement has been duly executed and delivered by or on behalf of the Borrower.

6.      BORROWER COVENANTS. The Borrower covenants with the Bank:

6.1      The Borrower shall execute, deliver, and provide to the Bank such additional agreements, documents, and instruments as reasonably required by the Bank to effectuate the intent of this agreement.

6.2      The Borrower fully, finally, and forever releases and discharges the Bank, its successors, and assigns and their respective directors, officers, employees, agents, and representatives (each a “Bank Party”) from any and all causes of action, claims, debts, demands, and liabilities, of whatever kind or nature, in law or equity, of the Borrower, whether now known or unknown to the Borrower, (i) in respect of the loan evidenced by the Note and the Related Documents, or of the actions or omissions of any Bank Party in any manner related to the loan evidenced by the Note or the Related Documents and (ii) arising from events occurring prior to the date of this agreement (“Claims”); provided, however, that the foregoing RELEASE SHALL INCLUDE ALL CLAIMS ARISING OUT OF THE NEGLIGENCE OF ANY BANK PARTY, but not the gross negligence or willful misconduct of any Bank Party.

6.3      To the extent not prohibited by applicable law, the Borrower shall pay to the Bank:

6.3.1           All the internal and external costs and expenses incurred (or charged by internal allocation) by the Bank in connection with this agreement (including, without limitation, inside and outside attorneys, appraisal, appraisal review, processing, title, filing, and recording costs, expenses, and fees).

6.4      Contemporaneously with the execution and delivery of this agreement, the Borrower has executed and delivered, or caused to be executed and delivered, to the Bank: (i) as additional security for the loan evidenced by the Note, the Deed of Trust Amendment, dated of even date herewith executed by Mace Security Products, Inc. for the benefit of the Bank.

7.      EXECUTION AND DELIVERY OF AGREEMENT BY THE BANK. The Bank shall not be bound by this agreement until (i) the Bank has executed this agreement and (ii) the Borrower performed all of the obligations of the Borrower under this agreement to be performed contemporaneously with the execution and delivery of this agreement.

8.      INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER. The Note, as modified by this agreement, and the other Related Documents contain the complete understanding and agreement of the Borrower and the Bank in respect of any Liabilities evidenced by the Note and supersede all prior understandings, and negotiations. If any one or more of the obligations of the Borrower under this agreement or the Note, as modified by this Agreement, is invalid, illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the remaining obligations of the Borrower shall not in any way be affected or impaired, and the invalidity, illegality or unenforceability in one jurisdiction shall not affect the validity, legality or enforceability of the obligations of the Borrower under this agreement, the Note as modified by this agreement and the other Related Documents in any other jurisdiction. No provision of the Note, as modified by this agreement, or any other Related Documents may be changed, discharged, supplemented, terminated, or waived except in a writing signed by the party against whom it is being enforced.

 

  

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9.      GOVERNING LAW AND VENUE. This agreement shall be governed by and construed in accordance with the laws of the State of Texas (without giving effect to its laws of conflicts). The Borrower agrees that any legal action or proceeding with respect to any of its obligations under the Note or this agreement may be brought by the Bank in any state or federal court located in the State of Texas, as the Bank in its sole discretion may elect. By the execution and delivery of this agreement, the Borrower submits to and accepts, for itself and in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of those courts. The Borrower waives any claim that the State of Texas is not a convenient forum or the proper venue for any such suit, action or proceeding. This agreement binds the Borrower and its successors, and benefits the Bank, its successors and assigns. The Borrower shall not, however, have the right to assign the Borrower’s rights under this agreement or any interest therein, without the prior written consent of the Bank.

10.      COUNTERPART EXECUTION. This agreement may be executed in multiple counterparts, each of which, when so executed, shall be deemed an original, but all such counterparts, taken together, shall constitute one and the same agreement.

11.      NOT A NOVATION. This agreement is a modification only and not a novation. In addition to all amounts hereafter due under the Note, as modified by this agreement, and the other Related Documents, all accrued interest evidenced by the Note being modified by this agreement and all accrued amounts due and payable under the Related Documents shall continue to be due and payable until paid. Except for the modification(s) set forth in this agreement, the Note, the other Related Documents and all the terms and conditions thereof, shall be and remain in full force and effect with the changes herein deemed to be incorporated therein. This agreement is to be considered attached to the Note and made a part thereof. This agreement shall not release or affect the liability of any guarantor, surety or endorser of the Note or release any owner of collateral securing the Note. The validity, priority and enforceability of the Note shall not be impaired hereby. References to the Related Documents and to other agreements shall not affect or impair the absolute and unconditional obligation of the Borrower to pay the principal and interest on the Note when due. The Bank reserves all rights against all parties to the Note and the other Related Documents.

12.      TIME IS OF THE ESSENCE. Time is of the essence under this agreement and in the performance of every term, covenant and obligation contained herein.

THIS AGREEMENT AND THE OTHER RELATED DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.

THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

	  	  	
Borrower:

	 	 	 
	
Address:

	
240 Gibraltar Road, Suite 220

	
Mace Security Products, Inc.

	  	
Horsham, PA 19044-2343

	  	  	  
	  	  	
By:

	
/s/ Gregory M. Krzemien

	  	  	  	
Gregory M. Krzemien

	
Treasurer

	  	  	  	
Printed Name

	
Title

 

	  	
Date Signed: 

	
7/12/11

 

  

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BANK’S ACCEPTANCE

The foregoing agreement is hereby agreed to and acknowledged.

	  	
Bank:

	  	  
	  	
JPMorgan Chase Bank, N.A.

	 	 
	  	
By:

	
/s/ R. Alan Green

	  	  	
R. Alan Green

	
Vice President

	  	  	
Printed Name

	
Title

 

	  	
Date Signed: 

	
7/13/11

Bettye Caswell \ TX000002000112048

790405146000 \ DW000B00961580EACEBB

 

  

4FIRST AMENDMENT TO EQUIPMENT LEASE AGREEMENT

 

This FIRST AMENDMENT TO EQUIPMENT LEASE AGREEMENT (this “Amendment”) is dated as of June 30, 2011, and is entered into by and between GK FINANCING, LLC, a California limited liability company (“GKF”), and SOUTHERN BAPTIST HOSPITAL OF FLORIDA, INC., a Florida not for profit corporation d/b/a Baptist Medical Center (“Hospital”), with reference to the following facts:

 

Recitals:

 

A.           GKF and Hospital are parties to a certain Equipment Lease Agreement dated July 11, 2002 (the “Lease”), pursuant to which Hospital leases a Leksell Stereotactic Gamma Unit from GKF.

 

B.           The parties desire to amend the Lease as set forth herein, pursuant to which (i) the Term of the Lease shall be extended to accommodate the performance of additional Gamma Knife procedures through July 29, 2011; and (ii) the removal of the Equipment from the Site shall be scheduled for October 2011.

 

NOW THEREFORE, in consideration of the mutual covenants, conditions and agreements set forth herein, and for such other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Agreement:

 

1.           Defined Terms.  Unless otherwise defined herein, the capitalized terms used herein shall have the same meanings set forth in the Lease.

 

2.           Extension of Lease Term.  The Term of the Lease (which originally expired on May 2, 2011) is hereby extended through July 29, 2011 (the “Extended Term”).  No Gamma Knife procedures will be performed by Hospital using the Equipment after July 29, 2011.

 

3.           Lease Payments; Collections Run-Out Period.  During the Extended Term, Hospital shall continue to pay Lease Payments to GKF for each and every Gamma Knife procedure performed (utilizing the Equipment) during the Extended Term, and shall continue to use diligent efforts to submit claims for reimbursement and collect on such amounts, all as set forth in Section 8 of the Lease.  Following the expiration of the Extended Term, Hospital shall, by the thirtieth (30th) day of each month commencing August 30, 2011 through and including September 30, 2012 (the “Collections Run-Out Period”), continue to remit to GKF the aggregate Lease Payment(s) pertaining to Technical Component Collections (for Gamma Knife procedures utilizing the Equipment) received during the Collections Run-Out Period.

 

4.           Removal of Equipment.  Pursuant to Section 22 of the Lease (Removal of Equipment), the Equipment will be removed by GKF from the Site during October 2011, and GKF will coordinate such removal with Hospital administrative staff.  During the period commencing from the expiration of the Extended Term to the date on which the Equipment is removed from the Site, GKF shall continue to pay rent to Hospital for the space occupied by the Equipment, which rent shall be in the amount of Two Thousand Seventy-Seven Dollars ($2,077) per month.

 

5.           Full Force and Effect.  Except as amended by this Amendment, all of the terms and provisions of the Lease shall remain in full force and effect.  To the extent any of the terms of the Lease conflict with the terms of this Amendment, the terms and provisions of this Amendment shall prevail and control.

 

  

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6.           Miscellaneous.  This Amendment may be executed in separate counterparts, each of which when so executed and delivered shall be an original, but all of which counterparts shall together constitute the same instrument.  The captions and paragraph headings used herein are for convenience only and shall not be used in construing or interpreting this Amendment.  This Amendment together with the Exhibits attached hereto constitutes the full and complete agreement and understanding between the parties hereto concerning the subject matter hereof and shall supersede any and all prior written and oral agreements with regard to such subject matter.

 

IN WITNESS WHEREOF, the parties have executed this Amendment effective as of the date first written above.

 

	
GKF:

	 	
Hospital:

	 	 	 
	
GK FINANCING, LLC

	 	
SOUTHERN BAPTIST HOSPITAL OF

	 	 	 
FLORIDA, INC. d/b/a Baptist Medical Center

	 	 	 
	
By:

	
/s/Ernest A. Bates, M.D.

	 	
   

	

	   	 
Ernest A. Bates, M.D.

	 	 
By:

	 
/s/Joseph M. Mitrick, FACHE

	 	 
Policy Committee Member

	 	 	 
	  	
 

	 	
Name: 

	
Joseph M. Mitrick, FACHE

	 	 	 	 	 
	  	 	 	
Title:

	
Senior Vice President

 

  

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