Document:

Exhibit 10.2

 

GUARANTY

 

THIS
GUARANTY (this “Guaranty”), dated as of August 10, 2010, is made
and entered into by BioSphere Medical S.A., a French société anonyme, BioSphere
Medical Japan, Inc., a Delaware corporation, and BSMD Ventures, Inc.,
a Delaware corporation (individually and collectively, as the context may
require, and jointly and severally, “Guarantor”), in favor of Merit
Medical Systems, Inc., a Utah corporation (“Lender”).

 

WHEREAS, BioSphere Medical, Inc., a Delaware
corporation (“Borrower”), executed and delivered to Lender that certain
Convertible Promissory Note, dated on the date hereof (as, amended, restated,
supplemented or otherwise modified from time to time, the “Note”).

 

WHEREAS, Lender has required, as a condition to making the
Loan, that Guarantor enter into this Guaranty.

 

WHEREAS, Guarantor is a subsidiary of Borrower and will
benefit from the making of the Loan and the financial accommodations extended
to Borrower pursuant to the Note.

 

NOW, THEREFORE, in consideration for the extension of
credit and other good and valuable consideration, the receipt, sufficiency and
adequacy of which are hereby acknowledged, and to induce Lender to extend
credit to Borrower, Guarantor hereby agree as follows:

 

1.                                       Definitions.  All capitalized terms used but not otherwise
defined herein shall have the meanings ascribed thereto in the Note.  In addition, the following terms used herein
shall have the following meanings:

 

“Guaranteed Obligations” means the full,
complete and punctual observance, performance, payment and satisfaction of all
of the Obligations.  The failure by
Guarantor to pay or perform any Guaranteed Obligations or any other covenant,
agreement or obligation of Guarantor under this Guaranty, or the inaccuracy in
any material respect when made of any material representation or warranty of
Guarantor in this Guaranty shall constitute an “Event of Default” for purposes
of this Guaranty and the Note.

 

“Guarantor” shall have its meaning set
forth in the first paragraph hereof.

 

2.                                       Guaranty.  Guarantor hereby unconditionally, absolutely
and irrevocably guarantees to Lender, its successors and assigns, the due
payment, fulfillment and performance of the Guaranteed Obligations.  Guarantor hereby irrevocably and
unconditionally covenants and agrees that it is liable for and shall pay the
Guaranteed Obligations as primary obligor.

 

3.                                       Continuing Guaranty.  This is an irrevocable, absolute, continuing
Guaranty of payment and performance. 
This Guaranty may not be revoked by Guarantor and shall continue to be
effective with respect to the Guaranteed Obligations arising or created after
any attempted revocation by Guarantor and after Guarantor’s dissolution (in
which event this Guaranty shall be binding upon Guarantor’s successors and
assigns).  It is the intent of Guarantor
that the obligations and liabilities of Guarantor hereunder are absolute and
unconditional, except as 

 

 

specifically set forth herein,
under any and all circumstances, and that until the Guaranteed Obligations are
fully, finally and indefeasibly satisfied, such obligations and liabilities
shall not be discharged or released in whole or in part, by any act or
occurrence which might, but for the provisions of this Guaranty, be deemed a
legal or equitable discharge or release of Guarantor. Each and every default in
payment of any amounts due or performance of any obligation required under this
Guaranty shall give rise to a separate cause of action hereunder, and separate
suits may be brought hereunder as each cause of action arises, or, in the
discretion of Lender, may be brought as a consolidated suit or suits.  This is a guaranty of payment and performance
and not of collection.

 

4.                                       Waivers.

 

(a)                                  Guarantor hereby assents to all terms and agreements heretofore or
hereafter made by Borrower with Lender, and, except as such waiver may be
expressly prohibited by law, waives to the extent permitted by applicable law
notice of:

 

(i)                                     Any loans or advances made by Lender to Borrower under the Note;

 

(ii)                                  The present existence or future incurring of any of Guaranteed
Obligations or any future modifications thereof or any terms or amounts
thereof;

 

(iii)                               The obtaining or release of any guaranty or surety agreement (in addition
to this Guaranty), pledge, assignment, or other security for any of the
Guaranteed Obligations; and

 

(iv)                              Notice of protest, default, notice of intent to accelerate and notice of
acceleration in relation to any instrument relating to the Guaranteed
Obligations.

 

(b)                                 Guarantor hereby waives to the extent permitted by applicable law any
rights and defenses that Guarantor might have as a result of any
representation, warranty or statement made by Lender or its agents to Guarantor
in order to induce Guarantor to execute this Guaranty and further waives to the
extent permitted by applicable law any other circumstance that might otherwise
constitute a legal or equitable discharge or defense of Guarantor.  Notwithstanding the foregoing, Guarantor does
not waive the defense of payment or performance in full of the Guaranteed
Obligations.

 

(c)                                  Following an Event of Default, Lender in its sole discretion, without
prior notice to or consent of Guarantor, may elect to: (i) foreclose
either judicially or nonjudicially against any security it may hold for the
Loan, (ii) accept a transfer of any such security in lieu of foreclosure, (iii) compromise
or adjust the Loan or any part of it or make any other accommodation with
Borrower or Guarantor, or (iv) exercise any other remedy against Borrower
or any security.  No such action by
Lender shall release or limit the liability of Guarantor, which shall remain
liable under this Guaranty after the action, even if the effect of the action
is to deprive Guarantor of any subrogation rights, rights of indemnity, or
other rights to collect 

 

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reimbursement from Borrower
for any sums paid to Lender, whether contractual or arising by operation of law
or otherwise.  Guarantor expressly agrees
that under no circumstances shall it be deemed to have any right, title,
interest or claim in or to any real or personal property to be held by Lender
or any third party after any foreclosure or transfer in lieu of foreclosure of
any security for the Loan.

 

5.                                       Events and Circumstances Not Reducing or Discharging Guarantor’s
Obligations.  Guarantor hereby consents and agrees to each
of the following, and agrees that Guarantor’s obligations under this Guaranty
shall not be released, diminished, impaired, reduced or adversely affected by
any of the following, and waives to the extent permitted by applicable law any
rights and defenses (other than the defense of the payment in full of the
Guaranteed Obligations and excluding the rights to notice, if any, as herein
provided or as required by law) which Guarantor might have otherwise as a
result of or in connection with any of the following:

 

(a)                                  any and all extensions, modifications, adjustments, indulgences,
forbearances or compromises that might be granted or given by Lender to
Borrower, including, without limitation, any and all amendments, modifications,
supplements, extensions or restatements of the Note;

 

(b)                                 the insolvency, bankruptcy, rearrangement, adjustment, composition,
liquidation, disability, dissolution or lack of power of Borrower or any other
party at any time liable for the payment of all or part of the Guaranteed
Obligations; or any dissolution, consolidation or merger of Borrower or
Guarantor, or any sale, lease or transfer of any or all of the assets of
Borrower or Guarantor, or any changes in the ownership of Borrower or
Guarantor;

 

(c)                                  the invalidity, illegality or unenforceability of all or any part of the
Guaranteed Obligations, or any document or agreement executed in connection
with the Guaranteed Obligations, for any reason whatsoever, including, without
limitation, the fact that the Guaranteed Obligations, or any part thereof
exceeds the amount permitted by law, the act of creating the Guaranteed
Obligations or any part thereof is ultra  vires, the
representatives executing the Note or otherwise creating the any Guaranteed
Obligations acted in excess of their authority, the Guaranteed Obligations
violate applicable usury laws, Borrower has valid defenses, claims or offsets
(whether at law, in equity or by agreement), other than payments, that render
the Guaranteed Obligations wholly or partially uncollectible from Borrower, the
creation, performance or repayment of the Guaranteed Obligations is illegal,
uncollectible, legally impossible or unenforceable, or the Note is irregular or
not genuine or authentic;

 

(d)                                 the taking or accepting of any security, collateral, or other assurance
of the payment, for all or any of the Guaranteed Obligations;

 

(e)                                  any release, surrender or exchange of any collateral, property or
security, at any time existing in connection with, or assuring or securing
payment of, all or any part of the Guaranteed Obligations;

 

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(f)                                    the failure of Lender or any other party to exercise diligence or
reasonable care in the preservation, protection, enforcement, sale or other
handling or treatment of all or any part of such collateral, property or
security;

 

(g)                                 the fact that any collateral, security, security interest or lien
contemplated or intended to be given, created or granted as security for the
repayment of the Guaranteed Obligations shall not be properly perfected or
created, or shall prove to be unenforceable or subordinate to any other
security interest or lien, it being recognized and agreed by Guarantor that
Guarantor is not entering into this Guaranty in reliance on, or in
contemplation of the benefits of, the validity, enforceability, collectibility
or value of any of the collateral for the Guaranteed Obligations;

 

(h)                                 any payment by Borrower to Lender is held to constitute a preference
under the bankruptcy code, or for any reason Lender is required to refund such
payment or pay such amounts to such Borrower, or any other Person; or

 

(i)                                     any other action taken or omitted to be taken with respect to the Note,
the Guaranteed Obligations, the security and collateral therefor, whether or
not such action or omission prejudices Guarantor or increases the likelihood
that Guarantor will be required to pay the Guaranteed Obligations.

 

It
is the unambiguous and unequivocal intention of Guarantor that Guarantor shall
be obligated to pay and perform the Guaranteed Obligations when due,
notwithstanding any occurrence, circumstance, event, action or omission
whatsoever, whether contemplated or uncontemplated, and whether or not
otherwise or particularly described herein, except for the full and final
payment and satisfaction of all Guaranteed Obligations.

 

6.                                       Payment and Performance by Guarantor.  If the Guaranteed Obligations, or any part
thereof, are not punctually paid or performed, Guarantor shall, immediately
upon written demand and without protest or notice of protest, pay the amount
due thereon to Lender pursuant to the Note (subject to the limitations set
forth herein), at the address of Lender set forth in the Note or as otherwise
designated by Lender.  Such demand(s) may
be made at any time coincident with or after the time for payment or
performance of all or part of the Guaranteed Obligations.  Such demand shall be deemed made if given in
accordance with Paragraph 15 hereof.  It
shall not be necessary for Lender, in order to enforce such payment or
performance by Guarantor, first to institute suit or exhaust its remedies
against Borrower, or others liable to pay or perform such Guaranteed
Obligations, or to enforce its rights against any security or collateral that
shall ever have been given to secure the Guaranteed Obligations.  Lender shall not be required to mitigate
damages or take any other action to reduce, collect or enforce the Guaranteed
Obligations.  No set-off, counterclaim,
reduction, or diminution of any Obligations, or any defense of any kind or
nature that Guarantor has or may hereafter have against Borrower or Lender
shall be available hereunder to Guarantor other than the defense of the payment
in full of the Guaranteed Obligations.

 

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7.                                       Concurrent Exercise of Remedies.  The exercise by Lender of any right or remedy
hereunder or under any other instrument or at law or in equity shall not
preclude the concurrent or subsequent exercise of any other instrument or
remedy at law or in equity and shall not preclude the concurrent or subsequent
exercise of any other right or remedy.

 

8.                                       Application of Payments.  If, at any time, there is any Obligations (or
any portion thereof) of Borrower to Lender that are not guaranteed by
Guarantor, Lender, without in any manner impairing its rights hereunder, may,
at its option, apply all amounts realized by Lender from collateral or security
held by Lender first to the payment of such unguaranteed Obligations, with the
remaining amounts, if any, to then be applied to the payment of the Obligations
guaranteed by Guarantor.

 

9.                                       Suits, Releases of Settlements with Others.
Guarantor agrees that Lender, in its sole discretion, may bring suit against
any other guarantor without impairing the rights of Lender or its successors
and assigns against Guarantor or any other guarantor of the Guaranteed
Obligations; and Lender may settle or compromise with such other guarantor for
such sum or sums as Lender may see fit and release such other guarantor from
all further liability to Lender, all without impairing its rights against
Guarantor.

 

10.                                 Warranties and Representations and Agreements.

 

(a)                                  Guarantor warrants, represents,
and agrees as of the date hereof
as follows:

 

(i)                                     Guarantor has received, or will receive, direct or indirect benefit from
the making of this Guaranty, the making of the Loan and the entering into and
execution of Note in connection therewith;

 

(ii)                                  Guarantor is familiar with, and has independently reviewed the financial
condition of the Borrower and is familiar with the value of any and all
collateral intended to be created as security for the payment and performance
of the Guaranteed Obligations, and Guarantor assumes full responsibility for keeping
fully informed as to such matters in the future; however, Guarantor is not
relying on such financial condition or the collateral as an inducement to enter
into this Guaranty; and

 

(iii)                               Guarantor is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its formation;

 

(iv)                              Guarantor has (A) the corporate power and authority to execute and
deliver, and to perform its obligations under, this Guaranty, and (B) taken
all necessary action to authorize Guarantor’s execution, delivery and
performance of this Guaranty;

 

(v)                                 this Guaranty has been duly executed and delivered by Guarantor and
constitutes the legal, valid and binding obligations of Guarantor enforceable
in accordance with its terms, except as such enforceability may be limited by
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
other similar laws relating to or affecting 

 

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the enforcement of creditors’
rights generally, general equitable principles and an implied covenant of good
faith and fair dealing;

 

(vi)                              the execution, delivery and performance of this Guaranty will not (A) violate
any provision of Guarantor’s certificate of incorporation or bylaws or any
material law or regulation applicable to Guarantor (B) violate, result in
a breach of, or constitute a default under, any agreement, document or
instrument to which Guarantor is a party or is bound or by which its properties
may be bound or affected, and (C) result in or require the creation or
imposition of any lien upon the property, assets, income, revenues, or rights
in respect thereof of Guarantor pursuant to (1) any law or regulation
applicable to Guarantor, (2) the organizational documents of Guarantor or (3) any
agreement or instrument to which Guarantor is a party or is bound or by which
its properties may be bound or affected;

 

(vii)                           no consent, approval or authorization of, or registration, declaration or
filing with, or other act by or in respect of, any arbitrator, any Governmental
Authority or any other Person is required in connection with the execution,
delivery or performance of this Guaranty by Guarantor;

 

11.                                 Subordination.  If, for any reason Borrower is now or
hereafter becomes indebted to Guarantor (such indebtedness and all interest
thereon being referred to as the “Affiliated Debt”), such Affiliated
Debt shall, at all times, be subordinate in all respects to the full payment
and performance of the Obligations, and Guarantor shall not be entitled to
enforce or receive payment thereof until all of the Obligations have been fully
paid.  Guarantor agrees that any liens,
mortgages, deeds of trust, security interests, judgment liens, charges or other
encumbrances upon Borrower’s assets securing payment of the Affiliated Debt
shall be and remain subordinate and inferior to any liens, security interests,
judgment liens, charge or other encumbrances upon Borrower’s assets securing
the payment of the Indebtedness and Obligations evidenced by the Note and
Guaranteed Obligations, and without the prior written consent of Lender,
Guarantor shall not exercise or enforce any creditor’s rights of any nature
against Borrower to collect the Affiliated Debt (other than demand payment
therefor).  In the event of the
receivership, bankruptcy, reorganization, arrangement, debtor’s relief or other
insolvency proceedings involving Borrower as a debtor, Lender shall have the
right and authority, either in its own name or as attorney-in-fact for
Guarantor, to file such proof of debt claim, petition or other documents and to
take such other steps as are necessary to prove its rights hereunder.

 

12.                                 Waiver of Subrogation.  Notwithstanding any other provision of this
Guaranty to the contrary, until the Obligations are indefeasibly paid and performed
in full, Guarantor hereby waives to the extent permitted by applicable law any
claim or other rights that Guarantor may now have or hereafter acquire against
Borrower or any other guarantor of all or any of the obligations that arise
from the existence or performance of Guarantor’s obligations under this
Guaranty (all such claims and rights are referred to as “Guarantor’s
Conditional Rights”), including, without limitation, any right of
subrogation, reimbursement, exoneration, contribution, or indemnification, any
right to participate in any claim or remedy of Lender against Borrower or any
security or collateral that Lender now has or hereafter acquires, whether or
not such claim, remedy or right arises in equity or under contract, statute
(including the bankruptcy code or any 

 

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successor or similar statute)
or common law, by any payment made hereunder or otherwise, including without
limitation, the right to take or receive from Borrower, directly or indirectly,
in cash or other property or by setoff or in any other manner, payment or
security on account of such claim or other rights.  If, notwithstanding the foregoing provisions,
any amount shall be paid to Guarantor on account of Guarantor’s Conditional
Rights and either (i) such amount is paid to Guarantor at any time when
the Guaranteed Obligations shall not have been paid or performed in full, or (ii) regardless
of when such amount is paid to Guarantor, any payment made by Borrower to
Lender is subsequently invalidated, declared to be fraudulent or preferential,
set aside or required to be repaid by Lender or paid over to a trustee,
receiver or any other entity, whether under any bankruptcy act or otherwise
(such payment, a “Preferential Payment”), then such amount paid to
Guarantor shall be held in trust for the benefit of Lender and shall forthwith
be paid to Lender to be credited and applied upon the Guaranteed Obligations,
to the extent matured or otherwise returned to the Borrower.  The foregoing waivers shall be effective
until the Guaranteed Obligations have been paid and performed in full.

 

13.                                 Election of Remedies; Deficiency Judgment.

 

(a)                                  Without limiting the foregoing, Guarantor waives to the extent permitted
by applicable law all rights and defenses arising out of an election of
remedies by Lender, even though that election of remedies, such as nonjudicial
foreclosure with respect to security for a Guaranteed Obligation, if any, has
destroyed Guarantor’s rights of subrogation and reimbursement.

 

(b)                                 Guarantor intentionally, freely, irrevocably and unconditionally waives
to the extent permitted by applicable law and relinquishes all rights that may
be available to it under any provision of applicable law to limit the amount of
any deficiency judgment or other judgment that may be obtained against
Guarantor under this Guaranty.

 

14.                                 Successors and Assigns.  This Guaranty is for the benefit of Lender,
its successors and assigns, and in the event of a assignment by Lender, its
successors and assigns, of the obligations evidenced by the Note, or any part
or parts thereof, the rights and benefits hereunder, to the extent applicable
to the obligations so assigned, may be transferred with such obligations.  This Guaranty is binding upon the Guarantor
and its successors and assigns.

 

15.                                 No Release if Preference, Refund, Etc.  In the event any payment by
Borrower to Lender of the Guaranteed Obligations is determined to be a
preferential payment under any applicable bankruptcy or insolvency laws, or if
for any reason Lender is required to refund part or all of any payment or pay
the amount thereof to any other party, such repayment by Lender to Borrower
shall not constitute a release of Guarantor from any liability hereunder, and
Guarantor agrees to pay such amount to Lender upon demand to the extent such
amount constitutes a Guaranteed Obligation for which Guarantor is liable.

 

16.                                 Notices.  All notices, requests, demands and consents
to be made hereunder to the parties hereto shall be made and delivered in the
manner set forth in Section 9.2 of the Merger Agreement.

 

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17.                                 Severability.  Any term or provision of this Guaranty that
is invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. 
If the final judgment of a court of competent jurisdiction declares that
any term or provision hereof is invalid or unenforceable, the parties hereto
agree that the court making such determination shall have the power to limit
the term or provision, to delete specific words or phrases, or to replace any invalid
or unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid
or unenforceable term or provision, and this Guaranty shall be enforceable as
so modified.  In the event such court
does not exercise the power granted to it in the prior sentence, the parties
hereto agree to replace such invalid or unenforceable term or provision with a
valid and enforceable term or provision that will achieve, to the extent possible,
the economic, business and other purposes of such invalid or unenforceable
term.

 

18.                                 Integration.  The Note, this Guaranty and the Merger
Agreement constitutes the entire agreement among Borrower, Guarantor and Lender
and supersedes any prior understandings, agreements or representations by or
among the parties hereto, or any of them, written or oral, with respect to the
subject matter hereof, and the parties hereto specifically disclaim reliance on
any such prior understandings, agreements or representations to the extent not
embodied in the Note, thhis Guaranty or the Merger Agreement.  Notwithstanding the foregoing, the
Confidentiality Agreement shall remain in effect in accordance with its terms.

 

19.                                 Amendments in Writing; No Waiver; Cumulative Remedies.

 

(a)                                  None of the terms or provisions of this Guaranty may be waived, amended,
supplemented or otherwise modified except by a written instrument executed by
Guarantor and Lender.

 

(b)                                 Guarantor hereby waives diligence, presentment, demand, protest and
notice of any kind whatsoever.  Lender
shall not by any act (except by a written instrument pursuant to paragraph (a) of
this Section 18), delay, indulgence, omission or otherwise be deemed to
have waived any right or remedy hereunder or to have acquiesced in any Event of
Default or in any breach of any of the terms and conditions hereof.  No failure to exercise, nor any delay in
exercising, on the part of Lender, any right, power or privilege hereunder
shall operate as a waiver thereof.  No
single or partial exercise of any right, power or privilege hereunder shall
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.  A waiver by
Lender of any right or remedy hereunder on any one occasion shall not be construed
as a bar to any right or remedy which Lender would otherwise have on any future
occasion.

 

(c)                                  The rights and remedies herein provided are cumulative, may be exercised
singly or concurrently and are not exclusive of any other rights or remedies
provided by law.

 

20.                                 Interpretation.  When reference is made in this Guaranty to a
Section, such 

 

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reference shall be to a Section of this Guaranty,
unless otherwise indicated.  The language
used in this Guaranty shall be deemed to be the language chosen by the parties
hereto to express their mutual intent, and no rule of strict construction
shall be applied against any party. 
Whenever the context may require, any pronouns used in this Guaranty
shall include the corresponding masculine, feminine or neuter forms, and the
singular form of nouns and pronouns shall include the plural, and vice
versa.  Any reference to any federal,
state, local or foreign statute or law shall be deemed also to refer to all rules and
regulations promulgated thereunder, unless the context requires otherwise.  Whenever the words “include,” “includes” or “including”
are used in this Guaranty, they shall be deemed to be followed by the words “without
limitation.”  Whenever the words “herein,”
“hereby” or “hereof” (or similar terms) are used in this Guaranty, they shall
be deemed to be referring to all of the provisions of this Guaranty as a whole,
and not to any particular section, article or provision unless the context
clearly intends otherwise.  No summary of
this Guaranty prepared by any party shall affect the meaning or interpretation
of this Guaranty.

 

21.                                 Counterparts. This Guaranty may be
executed in two or more counterparts, each of which shall be deemed an original
but all of which together shall be considered one and the same agreement and
shall become effective when counterparts have been signed by each of the
parties hereto and delivered to the other parties, it being understood that all
parties need not sign the same counterpart. 
This Guaranty may be executed and delivered by facsimile or other
electronic transmission (including delivery through electronic mail).

 

22.                                 Governing Law.  This Guaranty shall be governed by and
construed in accordance with the internal laws of the State of Delaware without
giving effect to any choice or conflict of law provision or rule (whether
of the State of Delaware or any other jurisdiction) that would cause the
application of laws of any jurisdictions other than those of the State of
Delaware.

 

23.                                 Submission to Jurisdiction.  Each of Guarantor and Lender
(a) consents to submit itself to the personal jurisdiction of the Court of
Chancery of the State of Delaware in any action or proceeding arising out of or
relating to this Guaranty or any of the transactions contemplated by this
Guaranty or the Guaranty, (b) agrees that all claims in respect of such
action or proceeding may be heard and determined only in such court, (c) agrees
that it shall not attempt to deny or defeat such personal jurisdiction by
motion or other request for leave from any such court, and (d) agrees not
to bring any action or proceeding arising out of or relating to this Guaranty
or any of the transactions contemplated by this Guaranty or the Guaranty in any
other court.  Each of the parties hereto
waives any defense of inconvenient forum to the maintenance of any action or
proceeding so brought and waives any bond, surety or other security that might
be required of any other party with respect thereto.  Any party hereto may make service on another
party by sending or delivering a copy of the process to the party to be served
at the address and in the manner provided for the giving of notices in
Section 9.2 of Merger Agreement. 
Nothing in this Section 22, however, shall affect the right of any
party to serve legal process in any other manner permitted by law.

 

24.                                 Waiver of Jury Trial.  EACH OF GUARANTOR AND LENDER HEREBY
IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, 

 

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PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT,
TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE ACTIONS
OF GUARANTOR OR LENDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND
ENFORCEMENT HEREOF.

 

25.                                 Attorney’s Fees.  If any action or other proceeding relating to
the enforcement of any provision of this Guaranty is brought by any party
hereto, the prevailing party shall be entitled to recover reasonable attorney’s
fees, costs and disbursements (in addition to any other relief to which the
prevailing party may be entitled).

 

26.                                 Reinstatement.  The obligations of Guarantor under this
Guaranty shall be automatically reinstated if and to the extent that for any
reason any payment by or on behalf of Borrower in respect of the Loan is
rescinded or must be otherwise restored by Lender, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise.

 

27.                                 Time.  Time is of the essence of this Guaranty and
each of the provisions hereof.

 

28.                                 Obligations of Guarantor Joint and Several.  Each natural person and legal entity
comprising Guarantor shall be jointly and severally liable and obligated for
the obligations of the Guarantor under this Guaranty.

 

 [Remainder of Page Intentionally Left Blank; Signature Page Follows]  

 

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IN WITNESS WHEREOF, the undersigned has
executed this Guaranty as of the day and year first above written.

 

	
   

  	
  GUARANTOR:

  
	
   

  	
   

  
	
   

  	
  BIOSPHERE MEDICAL JAPAN, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin J. Joyce

  
	
   

  	
  Name: Martin J. Joyce

  
	
   

  	
  Title: President and Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BSMD VENTURES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Martin J. Joyce

  
	
   

  	
  Name: Martin J. Joyce

  
	
   

  	
  Title: President and Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BIOSPHERE MEDICAL S.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J. Faleschini

  
	
   

  	
  Name: Richard J. Faleschini

  
	
   

  	
  Title:Exhibit
10.1

 

SECOND AMENDMENT TO CREDIT AGREEMENT

 

This
SECOND AMENDMENT TO CREDIT AGREEMENT (the “Amendment”) is entered into
as of August 9, 2010, among MWI VETERINARY SUPPLY CO., an Idaho
corporation (the “Borrower”), MWI VETERINARY SUPPLY, INC., a Delaware
corporation (the “Parent”), MEMORIAL PET CARE, INC., an Idaho
corporation (“Memorial” and together with Parent, collectively, the “Guarantors”
and individually, a “Guarantor”), BANK OF AMERICA, N.A., a national
banking association (“Bank of America”), WELLS FARGO BANK, N.A., a
national banking association (“Wells Fargo” and together with Bank of
America and each other lender from time to time party hereto, collectively, the
“Lenders” and individually, a “Lender”), and BANK OF AMERICA, N.A., a
national banking association, as issuer of letters of credit (in such capacity,
the “L/C Issuer”) and as administrative agent (in such capacity, the “Administrative
Agent”).

 

RECITALS

 

A.            The Borrower, the Guarantors, the
Lenders, the Administrative Agent and the L/C Issuer are each a party to that
certain Credit Agreement dated as of December 13, 2006 (as amended,
restated, extended, supplemented or otherwise modified from time to time, the “Credit
Agreement”).

 

B.            The Credit Agreement contains
certain covenants binding on the Borrower, including Section 7.03(g) thereof
that limits the amount of unsecured Indebtedness that the Borrower may create,
incur, assume or suffer to exist.

 

C.            Borrower has requested that the
Lenders increase the amount of permitted unsecured Indebtedness from
$20,000,000 to $30,000,000, which the Lenders, the Administrative Agent and the
L/C Issuer have agreed to do, subject to the terms and conditions of this
Amendment.

 

NOW
THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration receipt of which is hereby acknowledged, the parties agree as
follows:

 

AGREEMENT

 

1.             Definitions;
Interpretation.  All
capitalized terms used in this Amendment and not otherwise defined herein have
the meanings specified in the Credit Agreement. 
The rules of construction and interpretation specified in Sections 1.02
and 1.04 of the Credit Agreement also apply to this Amendment and are
incorporated herein by this reference.

 

2.             Amendments to
Credit Agreement.  The Credit
Agreement is hereby amended as follows:

 

(a)           Amendment to Definition.  The table set forth in the definition of “Applicable
Rate” is deleted and the following substituted in its stead:

 

Applicable Rate

 

	
  Pricing

  Level

  	
   

  	
  Funded Debt to

  EBITDA Ratio

  	
   

  	
  Commitment

  Fee

  	
   

  	
  Eurodollar

  Rate

  +

  	
   

  	
  Letters of

  Credit

  	
   

  	
  Base Rate

  +

  	
   

  
	
  1

  	
   

  	
  <1.75:1

  	
   

  	
  0.20

  	
  %

  	
  1.50

  	
  %

  	
  1.50

  	
  %

  	
  1.05

  	
  %

  
	
  2

  	
   

  	
  <2.50:1 but >1.75:1

  	
   

  	
  0.30

  	
  %

  	
  2.00

  	
  %

  	
  2.00

  	
  %

  	
  1.25

  	
  %

  
	
  3

  	
   

  	
  >2.50:1

  	
   

  	
  0.35

  	
  %

  	
  2.25

  	
  %

  	
  2.25

  	
  %

  	
  1.50

  	
  %

  

 

(b)           Amendment to Section 2.14.  In Section 2.14 of the Credit
Agreement, subsection (a) is hereby deleted and the following
substituted in its stead:

 

(a)           Decrease in
Commitment.  In the event that on
November 8, 2010, the Factoring Agreement remains in effect, the Aggregate
Commitments shall be reduced on such date by an amount equal the Dollar
equivalent of the commitment amount of Fortis 

 

1

 

to
factor or discount the accounts of Centaur or otherwise extend credit to
Centaur under the Factoring Agreement (the “Fortis Commitment”) as
determined by the Administrative Agent at such time on the basis of the Spot
Rate (the “Commitment Adjustment Amount”).

 

(c)           Amendment to Section 7.03.  In Section 7.03 of the Credit
Agreement, subsection (g) is hereby deleted and the following substituted
in its stead:

 

(g)           unsecured
Indebtedness in an aggregate principal amount not to exceed at any time
outstanding (i) $30,000,000 minus (ii) the aggregate outstanding
amount of all Indebtedness permitted by subsection (e) above.

 

3.             Conditions to Effectiveness.  Notwithstanding anything contained herein to
the contrary, this Amendment shall become effective when each of the following
conditions is fully and simultaneously satisfied; provided that each of
the following conditions is fully and simultaneously satisfied on or before
August 13, 2010:

 

(a)           Delivery of Amendment.  The Borrower, each Guarantor, the
Administrative Agent, the L/C Issuer and each Lender shall have executed and
delivered counterparts of this Amendment to the Administrative Agent,
sufficient in number for distribution to the Administrative Agent, each Lender
and the Borrower;

 

(b)           Authorization.  The Administrative Agent shall have received
the following, each in form and substance and dated as of a date satisfactory
to the Administrative Agent and its legal counsel:

 

(i)            such certificates
of resolutions or other action, incumbency certificates and/or other
certificates of Responsible Officers of the Borrower and each Guarantor as the
Administrative Agent may require to establish the identities of and verify the
authority and capacity of each Responsible Officer thereof authorized to act as
a Responsible Officer in connection with this Amendment and the other Loan
Documents to which the Borrower or such Guarantor is a party; and

 

(ii)           such evidence as
the Administrative Agent may reasonably require to verify that the Borrower and
each Guarantor is duly organized or formed, validly existing, in good standing
and qualified to engage in business in each jurisdiction in which it is required
to be qualified to engage in business, including certified copies of the
Borrower’s and each Guarantor’s Organization Documents, certificates of good
standing and/or qualification to engage in business.

 

(c)           Consents, Etc.  The Administrative Agent shall have received
such evidence as the Administrative Agent or the Required Lenders may
reasonably require to verify that the Borrower and each Guarantor has obtained
all consents, approvals, permits or other authorizations from all relevant
Governmental Authorities, required to be obtained in connection with the
execution, delivery or performance by, or enforcement against, the Borrower and
each Guarantor of this Amendment and the other Loan Documents.

 

(d)           Representations True; No Default.  The representations of the Borrower as set
forth in Article V of the Credit Agreement shall be true on and as
of the date of this Amendment with the same force and effect as if made on and
as of this date or, if any such representation or warranty is stated to have
been made as of or with respect to a specific date, as of or with respect to
such specific date.  No Event of Default
and no event which, with notice or lapse of time or both, would constitute an
Event of Default, shall have occurred and be continuing or will occur as a
result of the execution of this Amendment; and

 

(e)           Other Documents.  The Administrative Agent and the Lenders
shall have received such other documents, instruments, and undertakings as the
Administrative Agent and such Lender may reasonably request.

 

2

 

4.             Representations and
Warranties.  The Borrower
hereby represents and warrants to the Lenders, the Administrative Agent and the
L/C Issuer that each of the representations and warranties set forth in Article V
of the Credit Agreement is true and correct as if made on and as of the date of
this Amendment or, if any such representation or warranty is stated to have
been made as of or with respect to a specific date, as of or with respect to
such specific date.  The Borrower
expressly agrees that it shall be an additional Event of Default under the
Credit Agreement if any representation or warranty made by the Borrower
hereunder shall prove to have been incorrect in any material respect when made.

 

5.             No Further
Amendment.  Except as
expressly modified by this Amendment, the Credit Agreement and the other Loan
Documents shall remain unmodified and in full force and effect.  The Borrower and each Guarantor hereby
ratifies and confirms each of their respective debts, liabilities, obligations,
covenants and duties to each Lender, the Administrative Agent and the L/C
Issuer arising under the Credit Agreement and the other Loan Documents to which
the Borrower or such Guarantor is a party. 
Without limiting the foregoing, each Guarantor hereby confirms and
agrees that its guarantee of the payment and performance of the Obligations
remains in full force and effect, and that the Obligations shall include the
debts, liabilities, obligations, covenants and duties of, the Borrower to each
Lender, the Administrative Agent and the L/C Issuer arising under the Credit
Agreement as amended by this Amendment.

 

6.             Reservation of
Rights.  The Borrower and each Guarantor
acknowledges and agrees that the execution and delivery by the Administrative
Agent, the L/C Issuer and the Lenders of this Amendment shall not be deemed to
create a course of dealing or otherwise obligate the Administrative Agent, the
L/C Issuer or any Lender to forbear or execute similar amendments under the same
or similar circumstances in the future.

 

7.             Miscellaneous.

 

(a)           Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF IDAHO; PROVIDED
THAT THE ADMINISTRATIVE AGENT, THE L/C ISSUER AND THE LENDERS SHALL RETAIN ALL
RIGHTS ARISING UNDER FEDERAL LAW.

 

(b)           Counterparts.  This Amendment may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

 

(c)           Authorization.  Lenders hereby authorize and instruct the
Administrative Agent to execute and deliver this Amendment.

 

(d)           Integration.  This Amendment, together with the other Loan
Documents, comprises the complete, final and integrated agreement of the parties
on the subject matter hereof and thereof and supersedes all prior agreements,
written or oral, on such subject matter.

 

(e)           Severability.  Any provision of this Amendment that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions thereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

[Remainder of page intentionally left blank]

 

3

 

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

 

	
   

  	
  MWI
  VETERINARY SUPPLY CO.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James F. Cleary Jr.

  
	
   

  	
  Name:

  	
  James
  F. Cleary Jr.

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  MWI
  VETERINARY SUPPLY, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James F. Cleary Jr.

  
	
   

  	
  Name:

  	
  James
  F. Cleary Jr.

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  MEMORIAL
  PET CARE, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  James F. Cleary Jr.

  
	
   

  	
  Name:

  	
  James
  F. Cleary Jr.

  
	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK
  OF AMERICA, N.A., as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Dora A. Brown

  
	
   

  	
  Name:

  	
  Dora
  A. Brown

  
	
   

  	
  Title:

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  BANK
  OF AMERICA, N.A., as a Lender and L/C Issuer

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Brad Ruland

  
	
   

  	
  Name:

  	
  Brad
  Ruland

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  WELLS
  FARGO BANK, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Linda K. Armstrong

  
	
   

  	
  Name:

  	
  Linda
  K. Armstrong

  
	
   

  	
  Title:

  	
  Vice
  President and Senior Relationship Manager

  

 

4

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