Document:

exv10w4

 

Exhibit 10.4

AMENDED AND RESTATED

FOREIGN ACCOUNTS

REVOLVING NOTE

	 	 	 
	$1,500,000

	 	St. Louis, Missouri
	 

	 	January 31, 2008

     FOR VALUE RECEIVED, the undersigned, SYNERGETICS, INC., a Missouri corporation
(“Synergetics”), SYNERGETICS USA, INC., a Delaware corporation (“Synergetics USA”), SYNERGETICS
GERMANY, GMBH; and SYNERGETICS ITALIA, SRL (individually, a “Borrower” and together, the
“Borrowers”), hereby jointly and severally promise to pay on the Termination Date to the order of
Regions Bank (the “Lender”) at its main office in St. Louis, Missouri, or at any other place
designated at any time by the holder hereof, in lawful money of the United States of America and in
immediately available funds, the principal sum of One Million Five Hundred Thousand and 00/100
($1,500,000) or, if less, the aggregate unpaid principal amount of all Advances made by the
Lender to the Borrowers under the Credit Agreement (defined below), together with interest on the
principal amount hereunder remaining unpaid from time to time, computed on the basis of the actual
number of days elapsed and a 360-day year, from the date hereof until this Note is fully paid at
the rate from time to time in effect under the Credit and Security Agreement dated June 20, 2007,
as amended by First Amendment thereto (“First Amendment”) of even date herewith (as so amended, the
“Credit Agreement”) by and between the Lender and the Borrowers. The principal hereof and interest
accruing thereon shall be due and payable as provided in the Credit Agreement. This Note may be
prepaid only in accordance with the Credit Agreement. Capitalized terms utilized in this Note but
not defined herein have the same meanings as set forth in the Credit Agreement.

     This Note is issued pursuant, and is subject, to the Credit Agreement, which provides, among
other things, for acceleration hereof. This Note is the Amended Revolving Note referred to in the
First Amendment.

     This Note, among other things, is secured pursuant to the Credit Agreement and the Security
Documents as therein defined, and may now or hereafter be secured by one or more other security
agreements, mortgages, deeds of trust, assignments or other instruments or agreements.

     The Borrowers hereby agree to pay all costs of collection, including attorneys’ fees and legal
expenses in the event this Note is not paid when due, whether or not legal proceedings are
commenced.

     Presentment or other demand for payment, notice of dishonor and protest are expressly waived.

     This Note shall be governed by the internal substantive laws of the State of Missouri, without
regard for its conflicts-of-law principles.

     This Note is a replacement for, but not a novation or refinancing of, the Foreign Accounts
Revolving Note dated June 20, 2007 by Borrowers payable to the order of Lender. This Note does

 

 

not evidence or effect a release, or relinquishment of the priority, of the security interests
in any Collateral (as defined in the Credit Agreement).

     ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING
REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS
OF THE LEGAL THEORY UPON WHICH IT IS BASED, THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO
PROTECT YOU (BORROWERS) AND US (LENDER) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS ARE CONTAINED IN THE CREDIT AGREEMENT AND THE LOAN DOCUMENTS REFERRED
TO THEREIN, WHICH ARE THE COMPLETE AND EXCLUSIVE STATEMENTS OF THE AGREEMENT BETWEEN US, EXCEPT AS
WE MAY LATER AGREE IN WRITING TO MODIFY IT.

[Remaining portion of page is intentionally blank. Signature page follows]

 

 

	 	 	 	 	 
	 	BORROWERS:

SYNERGETICS, INC.

 	 
	 	By:  	/s/ Pamela G. Boone
 	 
	 	 	Name:  	Pamela G. Boone 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	and

SYNERGETICS USA, INC.

 	 
	 	By:  	/s/ Pamela G. Boone
 	 
	 	 	Name:  	Pamela G. Boone 	 
	 	 	Title:  	Chief Financial Officer 	 
	 
	 	and

SYNERGETICS GERMANY GMBH.

 	 
	 	By:  	/s/ Pamela G. Boone
 	 
	 	 	Name:  	Pamela G. Boone 	 
	 	 	Title:  	Director 	 
	 
	 	and

SYNERGETICS ITALIA, SRL

 	 
	 	By:  	/s/ Pamela G. Boone
 	 
	 	 	Name:  	Pamela G. Boone 	 
	 	 	Title:  	DirectorExhibit 10.1

 

AMENDMENT TWO TO SECOND AMENDED AND RESTATED

AGENTED CREDIT AGREEMENT

 

This Amendment Two to Second Amended and Restated Agented Credit Agreement (“Amendment”) is dated effective March 6, 2008, among ORCHIDS PAPER PRODUCTS COMPANY, a Delaware corporation ("Borrower”), and BANK OF OKLAHOMA, N.A. (“BOK”), BANCFIRST, and COMMERCE BANK, N.A. (individually a "Bank" and collectively the "Banks"), and BANK OF OKLAHOMA, N.A., as agent for the Banks hereunder (in such capacity, "Agent").

 

RECITALS

 

A.     Reference is made to the Second Amended and Restated Agented Credit Agreement by and among Borrower, Banks and Agent, dated April 9, 2007, and amended October 25, 2007 (as amended, the “Credit Agreement”), pursuant to which currently exists (i) a term loan in the original principal amount of $10,000,000; (ii) a term loan in the original principal amount of $16,500,000; (iii) a $6,000,000 revolving line of credit; and (iv) a construction loan in the original principal amount of $3,000,000.  Terms used herein shall have the meanings given in the Credit Agreement, unless otherwise defined herein.

 

B.        Borrower has requested that Banks (i) increase the revolving line of credit to $8,000,000, and (ii) temporarily modify the covenant limiting capital expenditures; and Banks have agreed to Borrower’s requests, subject to the terms and conditions of this Amendment.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the representations and warranties contained herein and for valuable consideration received, the parties agree to the following:

 

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

 

1.1.      Section 1.87 (Revolving Line) is hereby amended to reflect that the amount “$6,000,000” is hereby deleted and replaced with the amount “$8,000,000”.

 

1.2.      Section 2.3 (Revolving Line) is hereby amended to reflect that all references to the amount “$6,000,000” are hereby deleted and replaced with the amount “$8,000,000”.

 

1.3.      Section 10.4 (Capital  Expenditures) is hereby deleted and replaced with the following:

 

“10.4   Capital Expenditures.  Not make expenditures for fixed or capital assets if, after giving effect thereto, the aggregate of all such expenditures, excluding expenditures for the water pre-treatment facility not to exceed $3,000,000, would exceed (i) $6,250,000 during Borrower’s fiscal year ending December 31, 2008, and (ii) $1,500,000 during any fiscal year of Borrower thereafter.”

 

2.         Conditions Precedent.  This Amendment and each Bank's commitments hereunder are conditioned upon satisfaction of the following at or before closing.

 

	
             
 	
            2.1.
 	
            Borrower shall execute and deliver to Banks this Amendment.
 

 

 

 

2.2.      Borrower shall execute and deliver the promissory notes payable to each Bank in amounts based on each Bank’s Pro Rata Share of $8,000,000.

 

2.3.      Borrower shall provide any and all documents, agreements and instruments related to this transaction, reasonably requested by the Banks.

 

3.         Borrower Ratification.  Borrower hereby ratifies and confirms the Credit Agreement, and all instruments, documents and/or agreements executed and/or delivered by Borrower to Bank in connection therewith, and represents to Banks that:  (i) the Loan Documents remain in full force and effect; (ii) all representations and warranties made thereunder are true and correct as of the date hereof; and (iii) no Event of Default exists or will result from the execution of this Amendment. 

 

4.         Governing Law and Binding Effect.  This Amendment shall be governed by and construed in accordance with the laws of the State of Oklahoma, and shall inure to the benefit of and be binding upon the parties hereto, their successors and assigns.

 

5.         Costs, Expenses and Fees.  Borrower agrees to pay all costs, expenses and fees incurred by the Banks or otherwise in connection herewith, including, without limitation, all reasonable attorney fees, costs and expenses of Riggs, Abney, Neal, Turpen, Orbison & Lewis.

 

6.         Multiple Counterparts. This Amendment may be executed in any number of counterparts, and all the counterparts taken together shall be deemed to constitute one and the same instrument.

 

7.         Further Assurances.  Borrower will immediately execute and deliver to the Banks upon request all such other and further instruments as may be required or desired by the Banks from time to time in compliance with or in accomplishment of the covenants and agreements of Borrower made in this Amendment and such other instruments and documents referred to or mentioned herein, all as may be necessary or appropriate in connection therewith.

 

 

[Signature Pages to Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed.

 

	
             
 	
            "Borrower"
 
	
             
 	
             
 	
             
 
	
             
 	
            ORCHIDS PAPER PRODUCTS COMPANY
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Keith R. Schroeder
 
	
             
 	
             
 	
            Keith R. Schroeder, Chief Financial Officer
 

 

 

 

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            ”Banks”
 
	
             
 	
             
 	
             
 
	
             
 	
            BANK OF OKLAHOMA, N.A., as a Bank and Agent
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Dan Hughes
 
	
             
 	
             
 	
            Dan Hughes, Senior Vice President
 

 

 

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            BANCFIRST
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Elisabeth F. Blue
 
	
             
 	
             
 	
            Elisabeth F. Blue, Executive Vice President
 

 

 

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            COMMERCE BANK, N.A.
 
	
             
 	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Dennis R. Block
 
	
             
 	
             
 	
            Dennis R. Block, Senior Vice President
 

 

 

 

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