Document:

exv10w31

 

Exhibit 10.31

BOND PURCHASE AGREEMENT

     THIS BOND PURCHASE AGREEMENT, dated as of September 1, 2002, by and among THE INDUSTRIAL
DEVELOPMENT AUTHORITY OF ST. CHARLES COUNTY, MISSOURI, a public corporation organized under the
laws of the State of Missouri (the “Issuer”), UNION PLANTERS BANK, N.A., St. Louis, Missouri, a
national banking association (the “Purchaser”) and SYNERGETICS DEVELOPMENT COMPANY, L.L.C., a
limited liability company organized under the laws of the State of Missouri (the “Obligor”).

W I T N E S S E T H:

ARTICLE I

COVENANTS

     The Issuer covenants that:

     SECTION 1.1. Authority. To its knowledge, the covenants of the Issuer contained in the Loan
Agreement (the “Agreement”) dated as of even date herewith between the Issuer and the Obligor are
true and correct. The execution and delivery of this Bond Purchase Agreement, the Indenture of
Trust, dated as of even date herewith (“Indenture”), by and between the Issuer and UMB Bank, N.A.,
as Trustee (“Trustee”), the aggregate principal amount of $2,645,000 Private Activity Revenue
Bonds, Series 2002 (Synergetics Development Company Project) issued pursuant to the Indenture (the
“Bonds”), the Assignment, dated as of even date herewith, by and between the Issuer and the Trustee
(the “Assignment”), the Tax Compliance Agreement dated as of even date herewith among the Issuer,
the Obligor and the Trustee (the “Tax Compliance Agreement”) and the Agreement and the acceptance
of the Future Advance Deed of Trust and the Security Agreement, dated as of even date herewith,
executed by the Obligor as Grantor to the mortgage trustee named therein for the benefit of the
Issuer (the “Deed of Trust”), the Assignment of Leases (the “Assignment of Leases”) executed by the
Obligor, the Guaranty Agreement, dated as of even date herewith, executed by William L. Bates,
Gregg D. Scheller, Kurt W. Gampp and Synergetics, Inc. (collectively, the “Guarantor”) for the
benefit of the Issuer (the “Guaranty”), the Security Agreement (Equipment) (the “Security
Agreement”) executed by Synergetics, Inc. (the “Security Agreement”), the Guaranty of Unassigned
Issuer’s Rights, dated as of even date herewith executed by the Guarantor and the Obligor for the
benefit of the Issuer (the “Guaranty of Unassigned Issuer’s Rights” and hereinafter, together with
the Deed of Trust, the Assignment of Leases, the Guaranty and the Security Agreement, the
“Collateral Documents”) are within its authority and have been duly authorized by proper
proceedings and, to its knowledge, will not contravene its articles of incorporation or by-laws or
any judgment, action, decree, agreement or instrument to which it is a party. Execution of the
Indenture, the Bonds, the Agreement, the Assignment. the Tax Compliance Agreement and this Bond
Purchase Agreement has been authorized by the Issuer.

     SECTION 1.2. Use of Proceeds. The proceeds of the sale of the Bonds will be deposited in the
Project Fund created by the Indenture (the “Project Fund”) and used as provided in the Agreement
and the Indenture. The proceeds of the sale of the Bonds to be issued pursuant to the Indenture
will not be used for any purpose other than as provided in the Agreement and the Indenture.

     SECTION 1.3. Litigation and Governmental Authorization. To its knowledge, there is no action
or proceeding pending or threatened by or against the Issuer before any court or administrative
agency which might adversely affect the authority or ability of the Issuer to perform its
obligations under the Agreement, the Indenture, the Collateral Documents, this Bond Purchase
Agreement or the Bonds, or any related documents. To its knowledge, all authorizations, consents
and approvals of governmental bodies or agencies applicable to Issuer required by the Act in
connection with the execution and delivery

 

 

by the Issuer of the Agreement, the Indenture, the Collateral Documents, this Bond Purchase
Agreement and the Bonds or in connection with the carrying out by Issuer of its obligations under
the Agreement, the Indenture, the Collateral Documents, this Bond Purchase Agreement or the Bonds
have been obtained.

ARTICLE II

OBLIGOR’S REPRESENTATIONS AND WARRANTIES

     The Obligor represents and warrants that:

     SECTION 2.1. Existence. The Obligor has been duly organized and is validly existing as a
limited liability company under the laws of the State of Missouri with full power and authority to
own its properties and conduct its business as contemplated by the Agreement and is conducting its
business in substantial compliance with all applicable and valid laws, rules and regulations of
each jurisdiction where it owns or leases substantial property or where it transacts material
intrastate business.

     SECTION 2.2. Authority. The Obligor has full corporate power and authority to execute and
deliver the Agreement, the Promissory Note dated as of even date herewith pursuant to the Agreement
(the “Note”), the Collateral Documents to which it is a party and this Bond Purchase Agreement and
to carry out the terms thereof on its part to be performed. This Bond Purchase Agreement, the
Agreement, the Collateral Documents to which it is a party and the Note, when executed and
delivered by the Obligor, will be in full force and effect and will be valid and binding
obligations of the Obligor, enforceable in accordance with their terms. The consummation of the
transactions herein described and the carrying out of the terms thereof will not result in a
violation of any provision of, or a default under, the Articles of Association or Operating
Agreement of the Obligor or any indenture, mortgage, deed of trust, indebtedness or agreement,
judgment or decree to which the Obligor is now a party or by which the Obligor or its property is
now bound.

     SECTION 2.3. Authorization and Absence of Defaults. All consents, approvals, authorizations
and other requirements prescribed by any law, governmental rule or regulation applicable to the
Obligor which must be obtained or satisfied by the Obligor in connection with the transactions
described herein have been obtained and satisfied. The Obligor is not in violation of any
provision of its Articles of Association or Operating Agreement and the Obligor is not in violation
of any provision of, or in default under, any indenture, mortgage, deed of trust, indebtedness,
agreement, instrument, judgment, decree, order, statute, rule or regulation to which it is a party
or by which it or its property is bound. There is no action, suit, proceeding, inquiry or
investigation at law or in equity before or by any judicial or administrative court or agency
pending or, to the best knowledge of the Obligor, threatened, against the Obligor, to which the
Obligor is or may become a party or to which any of its property is or may become subject wherein
an unfavorable decision, ruling or finding would adversely affect the validity or enforceability of
the Indenture, the Agreement, the Note, the Collateral Documents to which it is a party, this Bond
Purchase Agreement or the transactions described herein or therein, or the validity of the Bonds,
or that should have a material adverse effect on the financial condition or operations of the
Obligor. The obligations of the Obligor under the Agreement, the Collateral Documents to which it
is a party and the Note are not subordinate to the rights of those claiming by, under or through
any indentures, loan agreements or other instruments to which the Obligor is a party or by which
the Obligor is or may be bound pursuant to the terms thereof, except as identified in said
documents.

     SECTION 2.4. Tax-Exempt Status. The information supplied by the Obligor in writing with
respect to the tax-free status of the Bonds for use by Bond Counsel including all certificates
executed in connection with the issuance of the Bonds and so identified therein is correct and
complete in all material respects.

-2-

 

ARTICLE III

THE BONDS

     SECTION 3.1. Issuance of Bonds. The Purchaser agrees, upon the terms and subject to the
conditions contained in this Bond Purchase Agreement, to purchase from the Issuer, and the Issuer
agrees to issue and sell to the Purchaser, the Bonds in the principal amount of $2,645,000 at a
purchase price equal to the principal amount of the Bonds, which purchase price shall be paid in
immediately available funds. The purchase price shall be paid by the Purchaser to the Trustee
under the Indenture who shall credit such amount to the Project Fund and such payment shall be
evidenced to the Issuer by a written receipt of the Purchaser. The Bonds sold hereunder shall be
designated “Private Activity Revenue Bonds, Series 2002 (Synergetics Development Company Project)”
and shall be dated their date of issuance and shall be substantially in the form set forth in, and
subject to the terms and provisions of, the Indenture.

     SECTION 3.2. Closing. The purchase of the Bonds shall occur on September 26, 2002, at 10:00
a.m. at the offices of Gilmore & Bell, P.C., One Metropolitan Square, Suite 2350, 211 N. Broadway,
St. Louis, Missouri, or at such other place, at such time, and on such date as the Issuer and the
Purchaser shall mutually agree (the “Closing”).

     SECTION 3.3. Conditions of Purchase of the Bonds. The obligation of the Purchaser to
purchase the Bonds hereunder is conditioned upon:

     (1) receipt by the Purchaser of three business days’ notice from the Issuer of the proposed
date and time of purchase if different than as set forth above;

     (2) at the conclusion of such sale and after the application of any proceeds therefrom no
event of default specified in the Agreement, the Collateral Documents or the Indenture and no event
which, with the giving of notice or lapse of time or both, would become such an event of default
shall have occurred and be continuing;

     (3) (i) the covenants of the Issuer contained or referred to in Section 1 hereof; (ii)
the representations and warranties of the Obligor in the Agreement and the Collateral Documents to
which it is a party; and (iii) the representations and warranties of the Guarantor in the Guaranty
being true and correct;

     (4) receipt by the Purchaser of the Bonds;

     (5) receipt by the Purchaser of fully executed copies of this Bond Purchase Agreement, the
Agreement, the Collateral Documents, the Note, duly endorsed to the Trustee and the other closing
documents;

     (6) receipt by the Purchaser of an opinion of Gilmore & Bell, P.C., as Bond Counsel, in form
and substance satisfactory to the Issuer and the Purchaser;

     (7) receipt by the Purchaser of an opinion of counsel for the Issuer, an opinion of counsel
for Obligor, each dated the date of Closing in form and substance satisfactory to the Issuer, the
Purchaser and to Gilmore & Bell, P.C., Bond Counsel;

     (8) receipt by the Purchaser of the Tax Compliance Agreement in form and substance
satisfactory to the Issuer, the Purchaser and to Gilmore & Bell, P.C., Bond Counsel;

     (9) receipt by the Purchaser of evidence that title to the real property encumbered by the
Deed of Trust located in the County of St. Charles, Missouri and more particularly described in the

-3-

 

Deed of Trust is vested in the Obligor, and specifically, receipt of a title commitment for ALTA
Loan Policy (Form 1970) in the amount of $2,645,000; at Closing, the title insurance company must
issue the required policy with all standard exceptions deleted, no other exceptions not previously
approved by Purchaser and with such affirmative coverages as Purchaser shall require, including,
without limitation, zoning endorsement (ALTA Form 3.0), comprehensive endorsement (CLTA Form 100),
future advances and survey endorsements, and satisfactory mechanic’s lien coverage including, at a
minimum, monthly endorsements insuring against mechanic’s liens arising from nonpayment of bills
for labor performed or materials furnished prior to the date of the most recent sworn contractor’s
statement;

     (10) receipt by the Purchaser of evidence of the existence and good standing in the State of
Missouri of the Issuer and the Obligor;

     (11) organizational documents and authorizing resolutions of the Obligor and the Corporate
Guarantor, including articles of association, operating agreement, member resolutions, articles of
incorporation, by-laws and board resolutions, together any fictitious name registration; the
Obligor shall furnish or cause to be furnished to the Purchaser such certificates, resolutions, and
other documents necessary to evidence the authority of the person or persons signing the Agreement,
the Note and the Collateral Documents on behalf of the Obligor and the Corporate Guarantor to
execute such documents and consummate the transactions herein contemplated;

     (12) policies or certificates for the insurance required by Section 5.5 of the Agreement;

     (13) survey satisfying title insurer, showing the improvements thereon as of a date not more
than three months prior to the date of issuance of the Bonds made by a registered civil engineer or
surveyor licensed in Missouri, in accordance with the standard detail requirements for land title
surveys adopted by ATA and ACSM, as revised and in effect on the date of the survey, which survey
shall be certified to as being accurate by the surveyor, said certification running to the Obligor,
the Trustee, title company and the Purchaser, and it shall show no encroachments on such land by
adjoining structures and no encroachments upon adjoining premises by the buildings and improvements
erected and installed upon said land, showing ingress and egress to and from public rights-of-way
to the land, showing all easements, showing the location of the Project and showing a legal
description of the land and the location of adjacent streets or otherwise in form and substance
satisfactory to Purchaser;

     (14) flood plain certification by a surveyor or engineer; if any portion of the Project is in
a flood plain, satisfactory flood insurance coverage shall be required naming the Trustee as
insured;

     (15) an appraisal of the Project prepared by an independent, qualified appraiser acceptable to
Purchaser;

     (16) receipt by the Purchaser of Uniform Commercial Code search requests, as of a date not
more than one month prior to Closing, with respect to the Obligor in all jurisdictions as the
Purchaser may request, which shall show no filings with respect to the Obligor except those
acceptable to the Purchaser;

     (17) receipt by the Purchaser of the final plans and specifications for the Project.

     (18) such additional items as the Purchaser or its counsel may reasonably require;

     (19) the Obligor shall pay, without limitation, all costs and expenses incurred by the
Purchaser in connection with the purchase of the Bonds and the disbursement of the proceeds
thereof, including but not limited to legal expenses, title insurance premiums, the fees of the
Purchaser’s disbursing

-4-

 

agent and/or disbursement advisor, survey, recording and filing fees, mortgage registration tax,
and any other type of mortgage tax, if any; and

     (20) a requisition duly executed by the Authorized Obligor Representative requesting payment
of the issuance fee and counsel fees charged by the Issuer shall have been delivered to the
Trustee.

The receipt by or on behalf of the Issuer of payment by the Purchaser of the purchase price of the
Bonds under Section 3.1 shall be deemed to be a covenant by the Issuer as of the date of
such receipt as to the facts specified in (2) and (3) above.

ARTICLE IV

COVENANTS

     SECTION 4.1. Reaffirmation. The Issuer reaffirms to the Purchaser its covenants and
agreements contained in the Agreement as being true and correct as of the Closing.

     SECTION 4.2. Purchaser Representations. The Purchaser acknowledges that in purchasing the
Bonds it is not relying on any representations of the Issuer with respect to the financial quality
of the Bonds. The Purchaser is relying solely on statements and representations of the Obligor,
and on its own knowledge and investigation of the facts and circumstances relating to the purchase
of the Bonds.

     SECTION 4.3. No Registration. The Purchaser understands that the Bonds have not been
registered under the Securities Act of 1933, as amended, and that such registration is not legally
required. The Purchaser is purchasing the Bonds for its own account for investment and has no
present intention of distributing or selling such Bonds or any portion thereof or any interest
therein, but expressly reserves the right to sell the Bonds or sell participations in the Bonds.

     SECTION 4.4. Sophisticated Investor. The Purchaser acknowledges that its business is that of
a commercial bank having substantial assets. In connection with its business, the Purchaser holds
an extensive portfolio of investments and other securities. The Purchaser has knowledge and
experience in financial and business matters and is capable of evaluating the merits and risks of
purchasing the Bonds and is not relying on any information supplied or representations or
warranties made by the Issuer with respect to the Obligor or the Project.

     SECTION 4.5. Access to Information. The Purchaser covenants that it is familiar with the
business and properties of the Obligor. The Purchaser has had access to the same kind of
information that is specified in Schedule A of the Securities Act of 1933, relative to the business
of the Obligor to the extent that the Obligor possesses such information or can acquire it without
unreasonable effort or expense. The Issuer and the Obligor have made available, during the course
of the transaction and prior to the purchase of the Bonds, to the Purchaser, the opportunity to ask
questions and receive answers from such parties concerning the terms and conditions of the Bond
offering and to obtain any additional information relative to the financial data and business of
such parties and the property to be mortgaged to the extent that such parties possess such
information or can acquire it without unreasonable effort or expense.

     SECTION 4.6. Documents. The Agreement, the Collateral Documents, the Note, the Indenture,
and this Bond Purchase Agreement, as finally executed, contain terms and are in form acceptable to
the Purchaser.

-5-

 

     SECTION 4.7. Reliance. The Issuer and the Purchaser agree that the Obligor is entitled to
rely on their respective covenants and representations contained in this Bond Purchase Agreement.

ARTICLE V

MISCELLANEOUS

     SECTION 5.1. Limitation. Anything in this Bond Purchase Agreement to the contrary
notwithstanding, no director or officer of the Issuer shall be personally liable on this Bond
Purchase Agreement or any contract or obligation executed pursuant hereto.

     SECTION 5.2. Notices. All notices, demands or other communications hereunder shall be in
writing and shall be deemed to have been given when the same are (i) deposited in the United States
mail and sent by first class mail, postage prepaid, or (ii) delivered, in each case, to the parties
at the addresses set forth below or at such other address as a party may designate by notice to the
other parties: (a) if to the Issuer, at 5988 Mid Rivers Mall Drive, St. Charles, Missouri 63304,
Attention: President; and (b) if to the Purchaser, at 8182 Maryland Avenue, Suite 200, St. Louis,
Missouri 63105, Attention: Anne Silvestri. A copy of all such notices, demands or other
communications hereunder shall be mailed to the Obligor at 88 Hubble Drive, O’Fallon, Missouri
63304, Attention: Kurt W. Gampp, Jr.

     SECTION 5.3. Term of Agreement. The term of this Agreement shall be until the termination of
the Purchaser’s obligation to purchase the Bonds hereunder or until the payment in full of the
Bonds and any other amounts due to the Purchaser under the Note, the Collateral Documents and the
Agreement, whichever is later.

     SECTION 5.4. Copies of Certificates, Etc. Whenever the Issuer is required to deliver
notices, certificates, opinions, statements or other information hereunder to the Purchaser, it
shall do so in such number of copies as the Purchaser shall reasonably specify.

     SECTION 5.5. No Waivers. No failure or delay by the Purchaser in exercising any right, power
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise
thereof preclude any other or further exercise thereof or the exercise of any other right, power or
privilege.

     SECTION 5.6. Governing Law. This Bond Purchase Agreement and the Bonds shall be deemed to be
a contract made under and shall be construed in accordance with and governed by the laws of the
State of Missouri.

     SECTION 5.7. Changes, Waivers, Etc. Neither this Bond Purchase Agreement nor any provision
hereof may be changed, waived, discharged or terminated orally, except by a statement in writing
signed by each party against which enforcement of this change, waiver, discharge or termination is
sought.

     SECTION 5.8. Counterparts. This Bond Purchase Agreement may be signed in any number of
counterparts with the same effect as if the signatures thereto and hereto were upon the same
instrument. Complete sets of counterparts shall be lodged with the Issuer and the Purchaser.

     SECTION 5.9. Other Terms. Terms defined in the Indenture and not otherwise defined herein
shall have the meanings herein as prescribed for them in the Indenture.

-6-

 

	 	 	 	 	 
	 	THE INDUSTRIAL DEVELOPMENT AUTHORITY OF ST. CHARLES COUNTY, MISSOURI

 	 
	 	By  	/s/
 	 
	 	 	President 	 
	 	 	 	 
	 
	 	UNION PLANTERS BANK, N.A.

 	 
	 	By  	/s/
 	 
	 	 	Title:  Vice President 	 
	 	 	 	 
	 
	 	SYNERGETICS DEVELOPMENT COMPANY, L.L.C.

 	 
	 	By  	/s/ Kurt W. Gampp, MANAGER
 	 
	 	 	Manager 	 
	 	 	 	 
	 

-7-exv10w32

 

Exhibit 10.32

FIRST SUPPLEMENTAL LOAN AGREEMENT

between

THE INDUSTRIAL DEVELOPMENT AUTHORITY

OF ST. CHARLES COUNTY, MISSOURI

and

SYNERGETICS DEVELOPMENT COMPANY, L.L.C.

Dated as of December 1, 2004

Private Activity

Revenue Bonds, Series 2004

(Synergetics Development Company Project)

CERTAIN OF THE RIGHTS, TITLE AND INTEREST OF THE INDUSTRIAL DEVELOPMENT AUTHORITY OF ST. CHARLES
COUNTY, MISSOURI IN AND TO THIS LOAN AGREEMENT HAVE BEEN ASSIGNED TO UMB BANK, N.A., AS TRUSTEE
UNDER THE INDENTURE OF TRUST, DATED AS OF SEPTEMBER 1, 2002, AS SUPPLEMENTED BY THE FIRST
SUPPLEMENTAL INDENTURE OF TRUST DATED AS OF DECEMBER 1, 2004 FROM THE INDUSTRIAL DEVELOPMENT
AUTHORITY OF ST. CHARLES COUNTY, MISSOURI TO SUCH TRUSTEE. FOR PURPOSES OF ARTICLE 9 OF THE
MISSOURI UNIFORM COMMERCIAL CODE, NO SECURITY INTEREST IN THIS LOAN AGREEMENT MAY BE CREATED BY THE
TRANSFER OR POSSESSION OF ANY COUNTERPART HEREOF OTHER THAN THE COUNTERPART CONTAINING THE RECEIPT
THEREFOR EXECUTED BY SUCH TRUSTEE, ON OR IMMEDIATELY FOLLOWING THE SIGNATURE PAGE HEREOF.

 

 

TABLE OF CONTENTS

(This Table of Contents is for convenience of reference only and is not intended to define, limit
or describe the scope or intent of any provisions of this First Supplemental Loan Agreement).

	 	 	 	 	 
	 	 	PAGE	 
	Parties
	 	 	1	 
	Recitals
	 	 	1	 
	 
	 	 	 	 
	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	DEFINITIONS, CONSTRUCTION AND CERTAIN GENERAL PROVISIONS
	 	 	 	 
	 
	 	 	 	 
	Section 1.1. Amendments to Definitions
	 	 	1	 
	Section 1.2. Rules of Construction
	 	 	2	 
	Section 1.3. Severability
	 	 	3	 
	Section 1.4. Date of First Supplemental Loan Agreement
	 	 	3	 
	Section 1.5. Governing Law
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	ISSUANCE OF THE SERIES 2004 BONDS; LOAN BY THE ISSUER TO THE OBLIGOR; SERIES 2004 NOTE;
ADDITIONAL PAYMENTS
	 	 	 	 
	 
	 	 	 	 
	Section 2.1. Agreement to Issue the Series 2004 Bonds
	 	 	3	 
	Section 2.2. The Loan
	 	 	3	 
	Section 2.3. Repayment of the Loan
	 	 	3	 
	Section 2.4. Nature of Obligations
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	PURCHASE, CONSTRUCTION, RENOVATION AND INSTALLATION OF THE SERIES 2004 PROJECT; PROJECT FUND
	 	 	 	 
	 
	 	 	 	 
	Section 3.1. Purchase, Construction, Renovation and Installation
	 	 	4	 
	Section 3.2. Plans and Specifications
	 	 	5	 
	Section 3.3. Payment of Project Costs
	 	 	6	 
	Section 3.4. Deficiency of Project Fund
	 	 	6	 
	Section 3.5. Surplus in Project Fund
	 	 	7	 
	Section 3.6. Completion Date
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	MAINTENANCE; MODIFICATIONS; INSURANCE; LEASE OR ASSIGNMENT OF PROJECT; LOSS OF OR DAMAGE TO PROJECT
	 	 	 	 

 

 

	 	 	 	 	 
	Section 4.1. Maintenance and Modification of Project by Obligor
	 	 	7	 
	Section 4.2. Sale or Lease of Series 2004 Project; Assignment of Loan Agreement by Obligor
	 	 	8	 
	Section 4.3. Use of Series 2004 Project
	 	 	8	 
	Section 4.4. Insurance Required
	 	 	8	 
	Section 4.5. Damage, Destruction, Condemnation or Loss of Title
	 	 	9	 
	Section 4.6. Taxes, Assessments and Other Charges
	 	 	10	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	PARTICULAR COVENANTS
	 	 	 	 
	 
	 	 	 	 
	Section 5.1. Access to the Series 2004 Project and Inspection; Operation of the Series 2004 Project
	 	 	10	 
	Section 5.2. Indemnification
	 	 	11	 
	Section 5.3. Arbitrage
	 	 	11	 
	Section 5.4. Further Assurances and Corrective Instruments
	 	 	11	 
	Section 5.5. Amendments to Section 6.8 of the Original Agreement
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	ASSIGNMENT OF ISSUER’S RIGHTS
	 	 	 	 
	 
	 	 	 	 
	Section 6.1. Assignment by the Issuer
	 	 	12	 
	Section 6.2. Restriction on Transfer of Issuer’s Rights
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	EVENTS OF DEFAULT AND REMEDIES
	 	 	 	 
	 
	 	 	 	 
	Section 7.1. Events of Default Defined
	 	 	12	 
	Section 7.2. Remedies on Default
	 	 	13	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	PREPAYMENT OF THE SERIES 2004 NOTE
	 	 	 	 
	 
	 	 	 	 
	Section 8.1. Prepayment at the Option of the Obligor
	 	 	13	 
	Section 8.2. Optional Prepayment Upon Certain Events
	 	 	13	 
	Section 8.3. Mandatory Prepayment From Excess Bond Proceed
	 	 	13	 
	Section 8.4. Right to Prepay at Any Time
	 	 	13	 
	Section 8.5. Notice of Prepayment
	 	 	14	 
	Section 8.6. Precedence of this Article
	 	 	14	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	 
	 	 	 	 
	Section 9.1. Consent to First Supplemental Indenture of Trust
	 	 	14	 
	Section 9.2. Applicability of the Original Agreement
	 	 	14	 

(ii)

 

 

	 	 	 	 	 
	Section 9.3. Severability
	 	 	14	 
	Section 9.4. Execution in Counterparts
	 	 	14	 
	Section 9.5. Governing Law
	 	 	14	 
	Section 9.6. No Pecuniary Liability
	 	 	14	 
	Section 9.7. Issuer Not Liable
	 	 	15	 
	Section 9.8. Entire Agreement
	 	 	15	 
	 
	 	 	 	 
	Schedule 1 - Legal Description
	 	 	 	 
	Schedule 2 - Description of Property
	 	 	 	 
	Exhibit A — Promissory Note
	 	 	 	 
	Exhibit B — Disbursement Request — Project Fund
	 	 	 	 

(iii)

 

 

FIRST SUPPLEMENTAL LOAN AGREEMENT

     THIS FIRST SUPPLEMENTAL LOAN AGREEMENT, dated as of December 1, 2004 (the “First Supplemental
Loan Agreement”), between The Industrial Development Authority of St. Charles County, Missouri, a
public corporation organized and existing under the laws of the State of Missouri (the “Issuer”),
and Synergetics Development Company, L.L.C., a limited liability company organized and existing
under the laws of the State of Missouri (the “Obligor”), supplementing the Loan Agreement dated as
of September 1, 2002 between the Issuer and the Obligor (the “Original Agreement” and together with
this First Supplemental Loan Agreement, the “Loan Agreement”);

     WITNESSETH:

     WHEREAS, the Issuer is empowered by Missouri Revised Statutes Chapter 349, as supplemented and
amended (“Act”), to finance the acquisition, construction, improvement, renovation, equipping and
extension of plants, buildings, structures or facilities used or to be used as a factory, assembly
plant, manufacturing plant, processing plant, fabricating plant, distribution center, warehouse
building, certain waterborne vessels, office buildings, for profit or not-for-profit hospitals,
not–for–profit nursing or retirement facilities, physical fitness recreational, indoor and resident
outdoor facilities operated by not–for–profit organizations, and commercial facilities, among
others, within St. Charles County, Missouri for the purposes set forth in the Act, to issue its
revenue bonds for the purpose of financing the costs of any such project, to grant security for the
payments of the principal of, premium, if any, and interest on any such bonds and any agreements
made in connection therewith and to pledge the payments, revenues and receipts from such projects
or from any other source to the payment of such bonds; and

     WHEREAS, the Obligor proposes to acquire, construct, improve and/or equip on the real estate
described in Schedule 1 (the “Land”) a manufacturing facility, including buildings,
improvements, fixtures, furnishings, machinery and/or equipment and related support facilities
described in Schedule 2 (the Land and said buildings, improvements, fixtures, furnishings,
machinery and/or equipment being collectively referred to herein as the “Series 2004 Project”), and
proposes that the Issuer make a loan to the Obligor to finance the acquisition, construction,
improvement and/or equipping of the Series 2004 Project; and

     WHEREAS, the Issuer proposes to issue the bonds (the “Series 2004 Bonds”) described in the
Indenture of Trust, dated as of September 1, 2002 (the “Original Indenture”) as supplemented by the
First Supplemental Indenture of Trust dated as of the date hereof (the “First Supplement” and
together with the Original Indenture, the “Indenture”) between the Issuer and UMB Bank, N.A., as
trustee (the “Trustee”) in the principal amount specified in the First Supplement and to use the
proceeds of the Series 2004 Bonds to make the loan mentioned above; and

     WHEREAS, the Issuer and the Obligor are entering into this First Supplemental Loan Agreement
to provide for said loan and its repayment;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements
herein set forth, the receipt and sufficiency of which is hereby acknowledged, the Issuer and the
Obligor do hereby covenant and agree as follows:

ARTICLE I

DEFINITIONS, CONSTRUCTION AND CERTAIN GENERAL PROVISIONS

     Section 1.1. Amendments to Definitions. The following definitions in Section 1.1 of
the Original Agreement are hereby amended to read as follows:

 

 

     “Completion Date” means (a) with respect to the Series 2002 Project, the earlier of (i) the
date on which the Series 2002 Project is completed, as certified to the Issuer and the Trustee in
accordance with Section 4.6 of the Original Agreement or (ii) September 1, 2003 and (b)
with respect to the Series 2004 Project, (i) the date on which the Series 2004 Project is
completed, as certified to the Issuer and the Trustee in accordance with Section 3.6 of
this First Supplemental Loan Agreement or (ii) December 1, 2005.

     “Organizational Documents” means the Articles of Organization and Operating Agreement, each as
amended to the date of the First Supplemental Loan Agreement, of the Obligor.

     “Project Costs” means (a) with respect to the Series 2002 Project, (i) all costs and expenses
incurred in the acquisition of the Land by the Obligor and any buildings, improvements, fixtures,
furnishings, machinery and equipment and related support facilities located thereon at the time of
such acquisition and constituting a part of the Series 2002 Project; (ii) all costs and expenses of
every nature incurred in the purchase, construction and installation of the buildings and
improvements constituting a part of the Series 2002 Project and in the purchase and installation of
the machinery and equipment; (iii) interest accruing on the Series 2002 Bonds prior to the
Completion Date; (iv) the cost of all utility facilities on the Land; (v) any and all expenses
incurred by the Obligor, including those prior to the sale of the Series 2002 Bonds for preliminary
plans, surveys, soil borings and other items necessary to the commencement of construction; (vi)
the cost of any insurance related to the Series 2002 Project prior to the Completion Date; (vii)
the cost of the title insurance policies required by the initial purchaser of the Series 2002
Bonds; and (viii) all other costs and expenses necessary or incident to the acquisition,
construction, improvement and equipping of the Series 2002 Project and (b) with respect to the
Series 2004 Bonds, (i) all costs and expenses of every nature incurred in the purchase,
construction and installation of the buildings and improvements constituting a part of the Series
2004 Project and in the purchase and installation of the machinery and equipment; (iii) interest
accruing on the Series 2004 Bonds prior to the Completion Date; (iii) the cost of any additional
utility facilities on the Land; (iv) any and all expenses incurred by the Obligor, including those
prior to the sale of the Series 2004 Bonds for preliminary plans, surveys, soil borings and other
items necessary to the commencement of construction of the Series 2004 Project; (v) the cost of any
insurance related to the Series 2004 Project prior to the Completion Date; (vi) the cost of the
title insurance policies required by the initial purchaser of the Series 2004 Bonds; and (vii) all
other costs and expenses necessary or incident to the acquisition, construction, improvement and
equipping of the Series 2004 Project.

     Section 1.2. Rules of Construction. Words of the masculine gender shall be deemed and
construed to include correlative words of the feminine and neuter genders. Unless the context
shall otherwise indicate, words importing the singular number shall include the plural and vice
versa, and words importing person shall include firms, partnerships, associations and corporations,
including public bodies, as well as natural persons.

     The words “herein,” “hereby,” “hereunder,” “hereof,” “hereto,” “hereinbefore,” “hereinafter”
and other equivalent words refer to this First Supplemental Loan Agreement and not solely to the
particular article, section, paragraph or subparagraph hereof in which such word is used.

     Reference herein to a particular article or a particular section shall be construed to be a
reference to the specified article or section hereof unless the context or use clearly indicates
another or different meaning or intent. Reference herein to a schedule or an exhibit shall be
construed to be a reference to the specified schedule or exhibit hereto unless the context or use
clearly indicates another or different meaning or intent.

     Wherever an item or items are listed after the word “including,” such listing is not intended
to be a listing that excludes items not listed.

     The table of contents, captions and headings in this First Supplemental Loan Agreement are for
convenience only and in no way define, limit or describe the scope or intent of any provisions or
sections of this Loan Agreement.

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     Section 1.3. Severability. If any provision of this First Supplemental Loan Agreement, or
any covenant, stipulation, obligation, agreement, act or action, or part thereof made, assumed,
entered into or taken thereunder, or any application of such provision, is for any reason held to
be illegal or invalid, such illegality or invalidity shall not affect any other provision of this
First Supplemental Loan Agreement or any other covenant, stipulation, obligation, agreement, act or
action, or part thereof, made, assumed, entered into, or taken, each of which shall be construed
and enforced as if such illegal or invalid portion were not contained herein. Such illegality or
invalidity of any application thereof shall not affect any legal and valid application thereof, and
each such provision, covenant, stipulation, obligation, agreement, act or action, or part thereof,
shall be deemed to be effective, operative, made, entered into or taken in the manner and to the
full extent permitted by law.

     Section 1.4. Date of First Supplemental Loan Agreement. The dating of this Loan Agreement as
of December 1, 2004, is intended as and for the convenient identification of this First
Supplemental Loan Agreement only and is not intended to indicate that this First Supplemental Loan
Agreement was executed and delivered on said date or that the representations herein were made as
of said date, this First Supplemental Loan Agreement being executed and delivered and becoming
effective and the representations herein being made simultaneously with the initial issuance of the
Series 2004 Bonds by the Issuer.

     Section 1.5. Governing Law. This First Supplemental Loan Agreement shall be governed by and
construed in accordance with the laws of the State.

ARTICLE II

ISSUANCE OF THE SERIES 2004 BONDS; LOAN BY THE ISSUER

TO THE OBLIGOR; SERIES 2004 NOTE; ADDITIONAL PAYMENTS

     Section 2.1. Agreement to Issue the Series 2004 Bonds. The Issuer will sell, issue and
deliver the Series 2004 Bonds to the purchasers thereof and loan the proceeds thereof to the
Obligor to provide funds to finance the Series 2004 Project. The Series 2004 Bonds will be issued
pursuant to the Indenture in the aggregate principal amount specified in the Indenture and will
bear interest, mature and be subject to redemption as provided in the Indenture. The Obligor
hereby acknowledges its approval of the Indenture, the Series 2004 Bonds, and the terms and
conditions under which the Series 2004 Bonds will be issued, sold and delivered.

     Section 2.2. The Loan. Upon the terms and conditions of this First Supplemental Loan
Agreement and the Indenture, the Issuer shall make a loan to the Obligor by loaning to the Obligor
the proceeds of the sale of the Series 2004 Bonds. Such loan shall be made by depositing the
proceeds of the Series 2004 Bonds in the Bond Fund and the Series 2004 Project Fund as provided in
the Indenture.

     The Obligor shall pledge to the Issuer all of its right, title and interest in and to the
proceeds of such loan, including any securities purchased with such proceeds and any earnings
thereon, to secure the payment of the Series 2004 Note, such pledge to be effected by the deposit
of such proceeds in accordance with the provisions of the Indenture. Such pledge shall continue so
long as such proceeds are held by the Trustee, it being understood that the Trustee shall be
authorized to apply and disburse such proceeds as provided in the Indenture and Section 3.3
hereof. The Obligor consents to the assignment and pledge by the Issuer of its interest in such
proceeds to the Trustee to secure the payment of the Series 2004 Bonds.

     Section 2.3. Repayment of the Loan To evidence its obligation to repay the loan described in
Section 2.2, concurrently with the issuance of the
Series 2004 Bonds, the Obligor shall issue the Series 2004 Note to the Issuer, the Series 2004 Note
to be in substantially the form of Exhibit A. The Obligor’s obligation to repay such loan
shall exist as provided in the Series 2004 Note or, if the Series 2004 Note cannot be located and
has not been repaid in full, as provided in the form thereof attached as Exhibit A,

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regardless of whether the Series 2004 Note is in existence or in effect. The Excess Amount (as
hereinafter defined) held by the Trustee in the Bond Fund on any Interest Payment Date shall be
credited against the loan repayment due from the Obligor on such Interest Payment Date. The term
“Excess Amount” as of any date shall mean the amount in the Bond Fund on such date in excess of the
amount required for payment of the principal of and interest on Bonds which have matured or which
have been called for redemption, and premium, if any, on such Bonds.

     Section 2.4. Nature of Obligations. The obligations of the Obligor to pay the principal of
and prepayment premium, if any, and interest on the Series 2004 Note and Additional Payments shall
be absolute and unconditional, and the Obligor shall make such payments without abatement,
diminution or deduction regardless of any cause or circumstances, including any defense, set-off,
recoupment or counterclaim that the Obligor may have or assert against the Issuer, the Trustee or
any other person. Until all principal of and redemption premium, if any, and interest on the
Series 2004 Note and all Additional Payments shall have been paid by the Obligor, the Obligor (i)
may not suspend or discontinue payment of Additional Payments, (ii) shall perform and observe all
of its other agreements contained in the Loan Agreement, and (iii) may not terminate the Loan
Agreement for any cause, including failure of title to the Series 2004 Project, the Series 2004
Project or any portion thereof; any acts or circumstances that may constitute failure of
consideration; destruction of or damage to the Series 2004 Project or the Series 2004 Project;
commercial frustration of purpose; any change in the tax laws or other laws, or administrative
rulings of or administrative actions by, or under authority of, the United States of America, the
State, any other state, or any other political subdivision; or any failure of the Issuer to perform
and observe any agreement, whether express or implied, or any duty, liability or obligation arising
out of or connected with the Loan Agreement. Nothing contained in this Section shall be construed
to release the Issuer from the performance of any of its agreements contained in the Loan
Agreement, and if the Issuer should fail to perform any such agreement on its part, the Obligor may
institute such action against the Issuer as the Obligor deems necessary to compel performance or to
recover its damages for nonperformance so long as such action shall be separate, shall not be
inconsistent with the agreements of the Obligor contained in the preceding sentences and shall not
adversely affect the security for the Bonds.

ARTICLE III

PURCHASE, CONSTRUCTION, RENOVATION AND INSTALLATION

OF THE SERIES 2004 PROJECT; PROJECT FUND

     Section 3.1. Purchase, Construction, Renovation and Installation. The Obligor represents,
warrants, covenants and agrees that:

     (a) It has acquired the Land and will cause the purchase, construction, improvement
and/or equipping of the Series 2004 Project to be completed (i) with all reasonable
dispatch, and (ii) in accordance with the Plans and Specifications, free from all liens
other than Permitted Encumbrances;

     (b) All construction upon and use of the Series 2004 Project is and shall be in
compliance with all pertinent and applicable local, county, state and federal statutes,
ordinances and regulations including applicable land use, development, zoning, building code
and environmental protection ordinances and regulations;

     (c) It will obtain all necessary or required permits, licenses, consents and approvals
that are material for the purchase, construction, installation, operation and maintenance of
the Series 2004 Project and shall comply with all lawful requirements of any governmental
body regarding the use or condition of the Series 2004 Project, whether existing or later
enacted or foreseen or unforeseen or whether involving any change in governmental policy or
requiring structural or other changes to the Series 2004 Project and irrespective of the
cost of so complying;

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     (d) The Obligor will take title in its name to all of the personal property, fixtures,
attachments and equipment delivered upon, attached to or used in connection with the
construction on the Series 2004 Project, that they will be kept free and clear of all
chattel mortgages, conditional vendor’s liens and all liens, encumbrances and security
interests whatsoever, and that the Obligor will be the absolute owner of said personal
property, fixtures, attachments and equipment, and will, from time to time, furnish the
Trustee with satisfactory evidence of such ownership, including searches of applicable
public records.

     (e) The Obligor shall cause the improvements to be constructed of first class
materials in a good, substantial and workmanlike manner in accordance with the Plans and
Specifications and the Obligor will cause the improvements to be completed free and clear of
any claims or liens for labor or material on or before December 1, 2005. The Obligor shall
notify the Trustee of any defects in construction work within five days after the Obligor
learns of such defects.

     (f) It will pay all fees, costs and expenses incurred in completing the Series 2004
Project or, to the extent there are moneys in the Series 2004 Project Fund available
therefor, will request the Trustee to make such payments from the Series 2004 Project Fund
in the manner hereinafter provided; and

     (g) It will ask, demand, sue for and use its best efforts to recover and receive such
sums of money, debts or other demands to which it may be entitled under any contract, order,
receipt, guaranty, warranty, writing or instruction in connection with the purchase,
construction and/or installation of the Series 2004 Project, and it will use its best
efforts, to the extent economically reasonable, to enforce the provisions of any contract,
agreement, obligation, bond or other security in connection therewith, and any such amounts
received in connection with the foregoing, after deduction of expenses incurred in
recovering such amounts, shall be paid to the Trustee for deposit in the Series 2004 Project
Fund if the Completion Date has not occurred or for deposit in the Bond Fund if the
Completion Date has occurred.

     If the purchase, construction and/or installation of the Series 2004 Project or any portion
thereof is delayed or fails to occur for any reason, there shall be no diminution in or
postponement of the payments to be made by the Obligor pursuant to the Series 2004 Note.

     Neither the Issuer, the Trustee nor their respective assigns are the agents or representatives
of the Obligor, and the Obligor is not the agent of the Issuer or the Trustee, and this First
Supplemental Loan Agreement shall not be construed to make either the Issuer or the Trustee liable
to materialmen, contractors, subcontractors, craftsmen, laborers or others for goods or services
delivered by them in connection with the Series 2004 Project, or for debts or claims accruing to
the aforesaid parties against the Obligor. This First Supplemental Loan Agreement shall not create
any contractual relation either expressed or implied between the Issuer or the Trustee and any
materialmen, contractors, subcontractors, craftsmen, laborers or any other person supplying any
work, labor or materials in connection with the Series 2004 Project.

     Section 3.2. Plans and Specifications. The Plans and Specifications have been filed with
the initial owner of the Series 2004 Bonds and, if requested by the Trustee, the Trustee. The
Obligor shall not permit any change in or addition to the Plans and Specifications or the general
contract without prior Bondowner Consent. Notwithstanding the foregoing, the Obligor shall not
permit any construction change directive whatsoever nor any change which
affects the structural integrity of the Series 2004 Project without prior Bondowner Consent. The
Obligor shall provide the Bondowners with a copy of all proposed changes in the Plans and
Specifications and all change orders relating to the Series 2004 Project within seven Business Days
after the same are issued. The Bondowners shall have the right to withhold approval, including the
right to demand a cash deposit by the Obligor with the Trustee if the cost is increased. Under no
circumstances shall any revision be made that would change the character of the Series 2004 Project
in a manner that would result in any of the representations or warranties contained herein with
respect to the

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Series 2004 Project or the use of the proceeds of the Bonds being or becoming false,
untrue, misleading or breached.

     Section 3.3. Payment of Project Costs. Except as otherwise provided in Section 403
of the First Supplement, all Project Costs and Costs of Issuance shall be paid by the Trustee from
the Series 2004 Project Fund upon receipt by the Trustee of a completed request of the Obligor
signed by the Authorized Obligor Representative, with Bondowner Consent and containing the
statements, representations and certifications set forth in the form of such request attached as
Exhibit B hereto and otherwise substantially in such form. The Obligor will accept
disbursements in accordance with the provisions hereof and, if made to the Obligor, will use or
cause each such disbursement to be used solely for the payment of materials, labor, services, costs
and expenses incurred in connection with the construction of the Series 2004 Project and in payment
or performance of any obligation of the Obligor under the Series 2004 Note and for no other
purpose. The Trustee’s obligation to make any disbursement including the initial disbursement of
moneys from the Series 2004 Project Fund shall be subject to the satisfaction of the following
conditions in addition to any other conditions set forth in this First Supplemental Loan Agreement:

     (a) There shall be no default under the Series 2004 Note and the Trustee shall not have notice
of any Event of Default.

     (b) The Trustee shall have received the title policy or commitment therefor referred to in the
Bond Purchase Agreement, dated as of the date hereof, by and among the Issuer, the Obligor and
Union Planters Bank, N.A. as initial purchaser of the Bonds.

     (c) The Trustee shall make advances no more often than once a month.

     (d) The Obligor shall make no request for funds in excess of the amount due to material
suppliers, contractors, subcontractors and suppliers of service, for the given pay period, it being
the intention of the parties hereto not to create a surplus disbursement should the value of work
in place, as defined in the contract documents, be in excess of the amounts actually billed by said
suppliers and subcontractors.

     (e) The Trustee may make payments for the cost of construction of the Series 2004 Project
directly to any contractor, subcontractor, materialman, or vendor of fixtures and equipment.

     (f) The Bondowners, by Bondowner Consent, shall have the right at any time to direct the
Trustee to cease disbursements hereunder if, in the sole opinion of the Bondowners as evidenced by
Bondowner Consent, the balance of the loan to be disbursed hereunder shall be insufficient to
complete development and construction. The Obligor agrees if for any reason the amount of such
undisbursed proceeds shall at any time be or become insufficient for such purpose regardless of how
such condition may be caused, the Obligor will, within five days after written request by the
Trustee, deposit the deficiency with the Trustee for deposit into the Series 2004 Project Fund
which deposit shall first be exhausted before any further disbursement of the proceeds of the
Series 2004 Bonds shall be made.

     (g) In making payments and determinations pursuant to this Section, the Trustee may rely upon
the requests and accompanying certificates and statements. The Trustee is not be required to make
any independent investigation in connection with the matters set forth in the requests.

     Section 3.4. Deficiency of Project Fund. The Issuer makes no warranty, either express or
implied, that the amounts in the Series 2004 Project Fund shall be sufficient to pay fully all
Project Costs and Costs of Issuance and to complete the Series 2004 Project free of all liens other
than Permitted Encumbrances, and, if the amounts in the Series 2004 Project Fund are insufficient
for such purpose, the Obligor shall pay, in cash, the full amount of any such deficiency by making
payments directly to the contractors and to the suppliers of materials and services as the same
shall become due. The Obligor shall not be entitled to any reimbursement for the payment of any
such deficiency from the Issuer, the Trustee or any Bondowner, nor shall it be entitled to any
diminution of any amounts otherwise payable under the Loan Agreement.

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     Section 3.5. Surplus in Project Fund. Except for any amount retained in the Series 2004
Project Fund pursuant to Section 3.6, all moneys remaining in the Series 2004 Project Fund
after the Completion Date shall immediately be transferred to the Excess Proceeds Account of the
Bond Fund and applied in accordance with Section 404 of the First Supplement.

     Section 3.6. Completion Date. Unless the Completion Date of the Series 2004 Project occurs
on December 1, 2005, the Completion Date of the Series 2004 Project shall be evidenced to the
Issuer and the Trustee upon receipt by the Issuer and the Trustee of a certificate signed by the
Authorized Obligor Representative stating (i) the date on which the Series 2004 Project was
substantially completed, (ii) that all other facilities necessary in connection with the Series
2004 Project have been purchased, constructed and installed, (iii) that the Series 2004 Project and
such other facilities have been purchased, constructed and installed in accordance with the plans
and specifications and in conformance with all applicable zoning, planning, building, environmental
and other similar governmental regulations, (iv) that, except for Project Costs described in
accordance with clause (v) of this Section, all Project Costs have been paid, (v) the amounts, if
any, to be retained in the Series 2004 Project Fund for the payment of Project Costs, if any, not
yet due or Project Costs whose liability the Obligor is contesting, and amounts that otherwise
should be retained and the reasons they should be retained and (vi) that the certifications and
representations contained in the Series 2004 Tax Compliance Agreement continue to be true. Such
certificate may state that it is given without prejudice to any rights of the Obligor that then
exist or may subsequently come into being against third parties.

ARTICLE IV

MAINTENANCE; MODIFICATIONS; INSURANCE;

LEASE OR ASSIGNMENT OF SERIES 2004 PROJECT;

LOSS OF OR DAMAGE TO SERIES 2004 PROJECT

     Section 4.1. Maintenance and Modification of Project by Obligor. The Obligor will at its own
expense (i) keep the Series 2004 Project in as reasonably safe condition as its operations shall
permit, (ii) with respect to the Series 2004 Project, comply with all applicable health and safety
standards and all other industrial requirements or restrictions enacted or promulgated by the
State, or any political subdivision or agency thereof, or by the government of the United States of
America or any agency thereof, and (iii) keep the Series 2004 Project in good repair and in good
operating condition and make from time to time all necessary repairs thereto and renewals and
replacements thereof; provided that the Obligor will have no obligation to operate, maintain,
preserve, repair, replace or renew any element or unit of the Series 2004 Project the maintenance,
repair, replacement or renewal of which becomes, in the judgment of the Obligor, uneconomical to
the Obligor because of damage, destruction or obsolescence, or change in economic or business
conditions, or change in government standards and regulations. The Obligor shall not permit or
suffer others to commit a nuisance in or about the Series 2004 Project or itself commit a nuisance
in connection with its use or occupancy of the Series 2004 Project. The Obligor will pay all costs
and expenses of operation of the Series 2004 Project.

     The Obligor may, at its own expense, make from time to time any additions, modifications or
improvements to the Series 2004 Project that it may deem desirable for its business purposes and
that do not materially impair the structural strength or effective use, or materially decrease the
value, of the Series 2004 Project; provided that no such addition, modification or improvement
shall result in a change in the character of the Series 2004 Project in a manner that would result
in any of the representations or warranties contained herein with respect to the Series 2004
Project or the use of the proceeds of the Bonds being or becoming false, untrue, misleading or
breached. All additions, modifications or improvements made by the Obligor pursuant to the
authority of this Section shall (a) be made in a workmanlike manner and in strict compliance with
all laws and ordinances applicable thereto, (b) when commenced, be prosecuted to completion with
due diligence and (c) other than personal property and trade fixtures, when completed, be deemed a
part of the Series 2004 Project.

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     Section 4.2. Sale or Lease of Series 2004 Project; Assignment of Loan Agreement by Obligor.
The Obligor will not assign, mortgage, pledge, sell, lease, grant a security interest in, or in any
other manner transfer, convey or dispose of the Series 2004 Project or any interest therein or part
thereof or assign any of its right, title and interest in, to and under the Loan Agreement, whether
voluntary, involuntary or by operation of law, without the prior written consent of the Trustee the
Issuer and Bondowner Consent.

     No such assignment, mortgage, pledge, sale, lease, security interest or other transfer,
conveyance or disposition shall release or discharge the Obligor from its primary liability for any
of its obligations hereunder or under the other Obligor Documents, and the Obligor shall remain
primarily liable for the payment of the principal of and prepayment premium, if any, and interest
on the Note and Additional Payments and for the performance and observance of the agreements herein
or in the other Obligor Documents provided to be performed and observed by it, and its agreements,
duties and obligations under all of the Obligor Documents shall continue as if no such lease,
assignment or sale had been made. No such lease, assignment or sale shall permit any use,
operation, maintenance, modification or replacement of the Series 2004 Project or any part thereof
otherwise than in accordance with the Loan Agreement, the Collateral Documents and the Act.

     No such assignment, mortgage, pledge, sale, lease, security interest or other transfer,
conveyance or disposition grant, sale or lease shall be made unless the Trustee shall receive an
opinion of Bond Counsel that such grant, sale or lease will not adversely affect the exemption from
federal income tax of the interest paid on any Bonds the interest on which is excluded from gross
income for federal income tax purposes.

     Any consent by the Trustee, the Issuer or any Bondowner Consent to any of the aforesaid acts
shall be held to apply only to the specific transaction thereby authorized and such consent shall
not constitute a waiver or release of the duty of the Obligor to obtain Bondowner Consent and the
Trustee and Issuer consent to any other such acts.

     Section 4.3. Use of Series 2004 Project. The Issuer will not take or cause the Trustee to
take any action (other than as provided herein or in the Indenture) to interfere with the Obligor’s
ownership of the Series 2004 Project or to interfere with possession, custody, use and enjoyment of
the Series 2004 Project.

     Section 4.4. Insurance Required. The Obligor agrees to secure, maintain and keep in force at
all times the following policies of insurance:

     (a) Throughout the course of construction of the Series 2004 Project, if any, builder’s
completed value risk insurance, in non-reporting form, against all risks of physical loss,
including collapse, covering the total value of work performed and equipment, supplies and
materials furnished for the Series 2004 Project (including on-site stored materials).

     (b) Upon substantial completion of construction of the Series 2004 Project, fire and extended
coverage insurance (and such other hazard insurance as the Bondowners, as evidenced by Bondowner
Consent, shall require) covering the Series 2004 Project (and all other property secured by the
Collateral Documents) in an amount equal to the full replacement cost of the Series 2004 Project
and improvements thereon including the cost of debris removal (exclusive of the cost of
excavations, foundations and footings below the lowest basement floor), and in any event shall be
maintained in amounts sufficient to avoid co-insurance.

     (c) Comprehensive general liability insurance in amounts satisfactory to the Bondowners, as
evidenced by Bondowner Consent, against claims and liabilities for injury or damage to persons or
property occurring on, in or about the Series 2004 Project and the adjoining streets, sidewalks and
passageways.

     (d) Upon substantial completion of construction of the Series 2004 Project, business
interruption and loss of “rental value” insurance in an amount sufficient to cover 100% of the
potential gross

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income from the Series 2004 Project for a period of at least 12 months as projected
by the Obligor with the approval of the Bondowners, as evidenced by Bondowner Consent.

     (e) Upon written notice of any Bondowner to the Trustee that all or any portion of the Series
2004 Project is located in a flood plain, flood insurance coverage in an amount acceptable to the
Bondowners, as evidenced by Bondowner Consent given to the Trustee and the Obligor.

All policies of insurance shall be issued by companies satisfactory to the Bondowners, as evidenced
by Bondowner Consent, and shall be in such form and contain such endorsements as the Bondowners, as
evidenced by Bondowner Consent, shall require. All policies of insurance shall contain a lender’s
loss payable endorsement for the benefit of the Trustee and a mortgagee clause approved by the
Trustee and showing the Trustee as first mortgagee without contribution. The Obligor shall furnish
the Trustee with copies of all policies of required insurance and satisfactory evidence of premium
payments and renewals at least 30 days prior to the expiration of each such policy. All such
policies shall contain a provision that the same will not be cancelled or modified without 30 days’
prior written notice to Trustee.

     Section 4.5. Damage, Destruction, Condemnation or Loss of Title. The Obligor shall notify
the Issuer and the Trustee immediately in the case of damage to or destruction of the Series 2004
Project or any portion thereof resulting from fire or other casualty (hereinafter referred to as a
“casualty loss”) or of a condemnation or loss of title.

     In the event of a casualty loss, a condemnation or a loss of title for which the Net Proceeds
do not exceed $50,000, the Obligor shall forthwith repair, reconstruct, restore, replace and
improve the Series 2004 Project to substantially the same or an improved condition or utility value
as existed prior to such casualty loss or forthwith make such replacements of or repairs or
improvements to the Series 2004 Project or portions thereof made necessary by such condemnation or
loss of title. Such Net Proceeds shall be paid directly to the Obligor and applied to the extent
necessary to the payment of the costs of such repair, reconstruction, restoration, replacement and
improvement. Any remaining balance not required for such purpose shall be paid to the Trustee for
deposit in the Bond Fund.

     If such Net Proceeds exceed $50,000, such Net Proceeds shall be paid to the Trustee for
disbursement as hereinafter described and the Obligor shall, with prior Bondowner Consent, elect
one of the following options by written notice delivered to the Trustee and the Issuer within 60
days of the determination of the amount of such Net Proceeds or 180 days of the occurrence of such
casualty loss, condemnation or loss of title, whichever occurs first:

     (a) Option A — Repairs and Improvements. The Obligor may elect to use such Net
Proceeds to repair, reconstruct, restore, replace and improve the Series 2004 Project and,
in such event, such Net Proceeds shall be deposited in a separate account and, so long as no
Default exists, shall be disbursed from time to time by the Trustee in the manner and upon
receipt of the documents described in Section 4.3 of the Original Agreement. Upon
the completion of such use, as certified to the Trustee by a written certificate signed by
the Authorized Borrower Representative, any remaining balance not required for such repair,
reconstruction, restoration, replacement and improvement shall be deposited in the Bond
Fund.

     (b) Option B — Redemption of Bonds. The Obligor may elect to have such Net
Proceeds deposited in the Bond Fund; provided either (i) the Obligor elects to prepay the
Note in full pursuant to Section 8.2 and cause all the Bonds to be redeemed in
accordance with paragraph (b) of Section 302 of the First Supplement at the earliest
practical date, or (ii) the Obligor elects to prepay the Note in part pursuant to
Section 8.2 and cause part of the Bonds to be redeemed pursuant to paragraph (b) of
Section 302 of the First Supplement and the property suffering such casualty loss,
condemnation or loss of title was not essential to the use of the Series 2004 Project in a
manner that will not result in any of the representations or warranties respecting the
Series 2004 Project and the use of the proceeds of the Bonds being false, untrue, misleading
or breached and provided

-9-

 

further that an expert appraiser acceptable to the Trustee delivers
to the Trustee its written opinion, appraisal or certificate showing that the ratio of the
fair market value at a foreclosure sale of the Series 2004 Project immediately prior to the
occurrence or discovery of such casualty loss, condemnation or loss of title to the
principal amount of the Bonds then Outstanding is no greater than the ratio of the then
current market value at a foreclosure sale of the Series 2004 Project to the principal
amount of the Bonds to be Outstanding after the application of such Net Proceeds and any
other moneys deposited in the Bond Fund by the Obligor for the redemption of Bonds.

     In the event such Net Proceeds do not exceed $50,000 or the Obligor shall elect Option A, (i)
the Obligor shall complete the repair, reconstruction, restoration, replacement and improvement of
the Series 2004 Project free from all liens other than Permitted Encumbrances, whether or not such
Net Proceeds are sufficient to pay for the same; (ii) the Obligor shall not be entitled to any
reimbursement from the Issuer, the Trustee or the Bondowners or any abatement or diminution of its
obligations hereunder by reason of any payments made by the Obligor for such purpose in excess of
the Net Proceeds; and (iii) all such repairs, reconstructions, restorations, replacements and
improvements shall be a part of the Series 2004 Project.

     Section 4.6. Taxes, Assessments and Other Charges. The Obligor shall pay all taxes,
assessments and charges of any kind whatsoever that may at any time be lawfully assessed or levied
against or with respect to the Series 2004 Project (including any tax upon or with respect to the
income or profits of the Issuer from the Series 2004 Project that, if not paid, would become a
charge on the payments to be made under the Loan Agreement prior to or on a parity with the charge
thereon created by the Indenture and including ad valorem, sales and excise taxes, assessments and
charges upon the Obligor’s interest in the Series 2004 Project), all utility and other charges
incurred in the operation, maintenance, use, occupancy and upkeep of the Series 2004 Project and
all assessments and charges lawfully made by any governmental body for public improvements that may
be secured by lien on the Series 2004 Project; provided, however, that notwithstanding the
foregoing, the Obligor may permit or suffer such taxes, assessments or other charges to remain
unpaid and may dispute, without prior payment thereof, such taxes, assessments or other charges,
provided that the Obligor, in good faith, shall be contesting the same in an appropriate
proceeding, enforcement thereof against any assets of the Obligor shall be stayed and appropriate
reserves therefor shall have been established on the records of the Obligor in accordance with
generally accepted accounting principles.

     The Obligor shall furnish to the Issuer and the Trustee, upon request, proof of payment of any
taxes, governmental charges, utility charges, insurance premiums or other charges required to be
paid by the Obligor under this First Supplemental Loan Agreement.

     The Obligor will not create or permit to be created or remain, and will at its cost and
expense promptly discharge, all liens, encumbrances and charges on the Series 2004 Project or any
part thereof, except as may be consented to by Bondowner Consent; provided, however, that
notwithstanding the foregoing, the Obligor may permit or suffer such liens, encumbrances or other
charges to remain unpaid and may dispute, without prior payment thereof, such liens, encumbrances
or other charges, provided that the Obligor, in good faith, shall be contesting the same in an
appropriate proceeding, enforcement thereof against any assets of the Obligor shall be stayed and
appropriate reserves therefor shall have been established on the records of the Obligor in
accordance with generally accepted accounting principles.

ARTICLE V

PARTICULAR COVENANTS

     Section 5.1. Access to the Series 2004 Project and Inspection; Operation of the Series 2004
Project. The Authorized Issuer Representative and the duly authorized agents of the Issuer and the
Trustee shall have the right, at all reasonable times upon the furnishing of reasonable notice
under the circumstances, to enter upon the Series 2004 Project and to examine and inspect the
Series 2004 Project.

-10-

 

The Obligor will execute, acknowledge and deliver all such further documents
and do all such other acts and things as may be necessary to grant to the Issuer and the Trustee
such right of entry. The Authorized Issuer Representative and the duly authorized agents of the
Issuer and the Trustee shall also be permitted, at all reasonable times upon reasonable notice
under the circumstances, to examine the books and records of the Obligor with respect to the Series
2004 Project and the obligations of the Obligor hereunder and under the Note and the Collateral
Documents.

     Section 5.2. Indemnification. To the extent permitted by law, the Obligor will absolutely
and unconditionally, without right of set off, protect, indemnify and hold harmless the Issuer (and
its officials, employees and agents) from and against all liabilities, obligations, claims,
damages, penalties, causes of action, costs and expenses (including all reasonable costs and
expenses of defending against the same) imposed upon or asserted against the Issuer (or its
officials, employees or agents) for any reason in connection with the Loan Agreement, the Indenture
(including, without limitations, the obligations under Section 507 of the Loan Agreement),
the Collateral Documents, the Series 2004 Project, the Series 2004 Note or the Bonds.

     To the extent permitted by law, the Obligor will absolutely and unconditionally, without right
of set off, protect, indemnify and hold harmless the Trustee (and its officers, employees and
agents) from and against all liabilities, obligations, claims, damages, penalties, causes of
action, costs and expenses (including the reasonable costs and expenses of defending against the
same) imposed upon or asserted against the Trustee, other than those resulting from the negligence
or bad faith of the Trustee, because of any action taken or omitted to be taken by the Trustee in
accordance with the Loan Agreement, the Indenture, the Collateral Documents, the Series 2004 Note
or the Bonds, or because of any action taken by the Trustee at the request of or with the consent
of the Obligor.

     In case any claim, action, suit or proceeding is brought against the Issuer or the Trustee in
respect of which indemnity may be sought hereunder, the Issuer or the Trustee, as the case may be,
shall provide prompt notice to the Obligor and upon the request of the Issuer or the Trustee, the
Obligor will cause, at its expense, such claim, action, suit or proceeding to be resisted and
defended by Counsel designated by the Obligor and approved by the Issuer or the Trustee, as the
case may be. Any amounts payable to the Issuer or the Trustee under this Section that are not paid
within ten days after written demand therefor shall bear interest at the rate of 2% in excess of
the Taxable Rate but not in excess of the maximum rate allowed by applicable law. At its own
expense, the Issuer or the Trustee may employ separate Counsel and participate in the defense. The
Obligor shall not be liable for any settlement without its consent.

     The indemnification provided by this Section to the Issuer and the Trustee shall extend to all
officials, directors, officers, employees, attorneys and agents of the Issuer and the Trustee and
shall survive termination of the Loan Agreement.

     Section 5.3. Arbitrage. The Obligor covenants and agrees that it will not use or authorize
the use by any person of any of the funds provided by the Issuer hereunder or any other funds,
directly or indirectly, or direct the Trustee to invest any funds held by it under the Indenture or
the Loan Agreement, in such manner as would, or enter into, or allow any Related Person to enter
into, any arrangement, formal or informal, that would, or take or omit to take any other action
that would, cause any Bond to be an “arbitrage bond” within the meaning of Section 148(a) of the
Code. The Obligor acknowledges having read Sections 507 and 603 of the Indenture and
agrees to perform all duties imposed upon it by such Sections, by the Tax Compliance Agreement and
the Series 2004 Tax Compliance Agreement. Insofar as said Sections, the Tax Compliance Agreement
and the Series 2004 Tax Compliance Agreement impose duties and responsibilities on the Obligor,
they are specifically incorporated herein by reference.

     Section 5.4. Further Assurances and Corrective Instruments. Subject to the Indenture, the
Issuer and the Obligor from time to time will execute, acknowledge and deliver, or cause to be
executed, acknowledged and delivered, Supplemental Loan Agreements, and such further instruments as
may be necessary to create, perfect and maintain perfected as valid liens upon the Series 2004
Project the liens

-11-

 

granted by the Obligor pursuant to this First Supplemental Loan Agreement or any
of the Collateral Documents, to correct any inadequate or incorrect description of the Series 2004
Project and for carrying out the intention or facilitating the performance of this First
Supplemental Loan Agreement.

     Section 5.5. Amendments to Section 6.8 of the Original Agreement. Section 6.8(b)(v)
of the Original Agreement is hereby amended to read as follows:

     (v) Not sell, lease, transfer or otherwise dispose of any property or assets
except in the ordinary course of business.

ARTICLE VI

ASSIGNMENT OF ISSUER’S RIGHTS

     Section 6.1. Assignment by the Issuer. The Issuer, by means of the Indenture and as security
for the payment of the principal of and redemption premium, if any, and interest on the Bonds, will
assign, pledge and grant a security interest in certain of its rights, title and interests in, to
and under this First Supplemental Loan Agreement and the Series 2004 Note, including Additional
Payments and other revenues, moneys and receipts received by it pursuant to the Loan Agreement, and
the Collateral Documents to the Trustee (reserving its rights to Unassigned Issuer’s Rights). In
addition, as security for such obligations, the Issuer will endorse the Series 2004 Note to the
order of the Trustee without recourse. The Obligor consents to such assignments and endorsements.
For purposes of Article 9 of the Uniform Commercial Code of the State, no security interest in this
First Supplemental Loan Agreement may be created by the transfer or possession of any counterpart
hereof other than the counterpart containing the receipt therefor executed by the Trustee on or
immediately following the signature page hereof.

     Section 6.2. Restriction on Transfer of Issuer’s Rights. The Issuer will not sell, assign,
transfer or convey its interests in this First Supplemental Loan Agreement, the Collateral
Documents or in the Series 2004 Project except pursuant to the Indenture and by endorsement of the
Series 2004 Note as described in Section 6.1.

ARTICLE VII

EVENTS OF DEFAULT AND REMEDIES

     Section 7.1. Events of Default Defined. Subsections (a) through (f) of Section 8.1
of the Original Agreement are hereby amended to read as follows:

     (a) Failure by the Obligor to make timely payment of principal of or prepayment
premium, if any, or interest on the Note, the Series 2004 Note or any Additional
Payment on the date when due and payable.

     (b) Failure by the Obligor to observe and perform any covenant, condition or
agreement on the part of the Obligor under the Note, the Series 2004 Note, the Loan
Agreement, the Collateral Documents or the Indenture, other than as referred to in
the preceding subparagraph (a) of this Section, for a period of thirty days after
written notice of such default has been given to the Obligor by the Issuer or the
Trustee during which time such default is neither cured by the Obligor nor waived in
writing by the Issuer and the Trustee with Bondowner Consent, provided that, if the
failure stated in the notice cannot be corrected within said thirty-day period, the
Issuer and the Trustee, with Bondowner Consent, may consent in writing to an
extension of such time prior to its expiration and the Issuer and the Trustee will
not unreasonably withhold their consent to such an extension if

-12-

 

corrective action is
instituted by the Obligor within the thirty-day period and diligently pursued to
completion.

     (c) Abandonment of the Project or the Series 2004 Project by the Obligor.

     (d) Any representation or warranty by the Obligor or by any Guarantor in any of
the Collateral Documents or the Loan Agreement or in any certificate or other
instrument delivered under or pursuant to the Loan Agreement or the Indenture or in
connection with
the financing of the Project or the Series 2004 Project shall prove to have been
false, incorrect, misleading or breached in any material respect on the date when
made.

     (e) The Indenture at any time shall prove not to be a valid, binding and
enforceable agreement of the Issuer or shall not constitute a valid assignment of
the rights of the Issuer under the Loan Agreement purportedly assigned under the
Indenture and effective to vest in the Trustee all such rights of the Issuer in, to
and under the Loan Agreement, including the right to enforce the Loan Agreement, the
Note and the Series 2004 Note in accordance with their terms.

     (f) Leasing of any portion of the Project or the Series 2004 Project except
pursuant to a lease in form and substance approved by Bondowner Consent and, with
respect to any tenant occupying in excess of 30% of the leasable space, prior
Bondowner Consent.

     Section 7.2. Remedies on Default. Section 8.2 of the Original Agreement is hereby
amended as follows: each and every reference to the Note shall be replaced by the phrase “the Note
and the Series 2004 Note.”

ARTICLE VIII

PREPAYMENT OF THE SERIES 2004 NOTE

     Section 8.1. Prepayment at the Option of the Obligor. Upon the exercise by the Obligor of
its option to cause the Series 2004 Bonds or any portion thereof to be redeemed pursuant to
paragraph (a) of Section 302 of the First Supplement, the Obligor shall prepay the Series
2004 Note in whole or in part at the times and at the prepayment prices sufficient to redeem all or
a corresponding portion of the Series 2004 Bonds then Outstanding in accordance with said
paragraph. At the written direction of the Obligor such prepayments shall be applied to the
redemption of the Series 2004 Bonds in whole or in part in accordance with said paragraph.

     Section 8.2. Optional Prepayment Upon Certain Events. Upon the occurrence of any of the
conditions or events set forth in paragraph (b) of Section 302 of the First Supplement, the
Obligor shall have the option to prepay the Series 2004 Note, in whole or in part at any time, at
the time and at the prepayment price sufficient to redeem all or a corresponding portion of the
Series 2004 Bonds then Outstanding in accordance with said paragraph.

     Section 8.3. Mandatory Prepayment From Excess Bond Proceeds. In the event that any Series
2004 Bonds are redeemed pursuant to paragraph (c) of Section 302 of the First Supplement, a
like principal amount of the Series 2004 Note shall be deemed to be prepaid.

     Section 8.4. Right to Prepay at Any Time. The Obligor shall have the option at any time to
prepay all of the Series 2004 Note, Additional Payments and other amounts it is required to pay
hereunder by paying to the Trustee all such sums as are sufficient to satisfy and discharge the
Indenture and paying or making provision for the payment of all other sums payable hereunder.

-13-

 

     Section 8.5. Notice of Prepayment. To exercise an option granted by Sections 8.1, 8.2 or
8.4, the Obligor shall give written notice to the Issuer and the Trustee which shall specify
therein the date upon which a prepayment of the Series 2004 Note (or a
portion thereof) will be made, which date shall be not less than 45 days from the date the notice
is received by the Trustee. In the Indenture, the Issuer has directed the Trustee to forthwith
take all steps (other than the payment of the money required to redeem the Bonds) necessary under
the applicable provisions of the Indenture to effect any redemption of the then Outstanding Bonds,
in whole, or in part, pursuant to Section 302 of the First Supplement.

     Section 8.6. Precedence of this Article. The rights, options and obligations of the Obligor
set forth in this Article may be exercised or shall be fulfilled, as the case may be, whether or
not a Default exists hereunder, provided that such Default will not result in nonfulfillment of any
condition to the exercise of any such right or option and provided further that no amounts payable
pursuant to the Series 2004 Note shall be prepaid in part during the continuance of an Event of
Default described in subparagraph (a) of Section 7.1.

ARTICLE IX

MISCELLANEOUS

     Section 9.1. Consent to First Supplemental Indenture of Trust. The Obligor hereby consents to
the First Supplemental Indenture of Trust pursuant to Section 1003 of the Original
Indenture.

     Section 9.2. Applicability of the Original Agreement. Except as otherwise provided in this
First Supplemental Loan Agreement, the provisions of the Original Agreement are hereby ratified,
approved and confirmed. This First Supplemental Loan Agreement shall be construed as having been
authorized, executed and delivered under the provisions of Section 1101(iv) of the Original
Indenture.

     Section 9.3. Severability. If any provision of this First Supplemental Loan Agreement shall
be held or deemed to be invalid, inoperative or unenforceable as applied in any particular case in
any jurisdiction or jurisdictions or in all jurisdictions, or in all cases because it conflicts
with any other provision or provisions hereof or any constitution or statute or rule of public
policy, or for any other reason, such circumstances shall not have the effect of rendering the
provision in question inoperative or unenforceable in any other case or circumstance, or of
rendering any other provision or provisions herein contained invalid, inoperative or unenforceable
to any extent whatever.

     Section 9.4. Execution in Counterparts. This First Supplemental Loan Agreement may be
simultaneously executed in several counterparts, each of which shall be an original and all of
which shall constitute but one and the same instrument.

     Section 9.5. Governing Law. The Loan Agreement, including without limitation this First
Supplemental Loan Agreement, shall be governed exclusively by and be construed in accordance with
the applicable laws of the State of Missouri.

     Section 9.6. No Pecuniary Liability. No provision, representation, covenant or agreement
contained in the Loan Agreement or in the Indenture, the Bonds, or any obligation herein or therein
imposed upon the Issuer, or the breach thereof, shall constitute or give rise to or impose upon the
Issuer a pecuniary liability (except to the extent of any loan repayments, revenues and receipts
derived by the Issuer pursuant to the Loan Agreement, the Note and the Series 2004 Note). No
provision hereof shall be construed to impose a charge against the general credit of the Issuer or
any personal or pecuniary liability upon any official or employee of the Issuer.

-14-

 

     Section 9.7. Issuer Not Liable. Notwithstanding any other provision of the Loan Agreement
(a) the Issuer shall not be liable to the Obligor, the Trustee or any other person for any failure
of the Issuer to take action under the Loan Agreement, and (b) except with respect to any action
for specific performance or any action in the nature of a prohibitory or mandatory injunction,
neither the Issuer nor any official, member or employee of the Issuer shall be liable to the
Obligor, the Trustee or any other person for any action taken by the Issuer or by its officers,
servants, agents or employees, or for any failure to take action under the Loan Agreement, the
Note, the Series 2004 Note or the Indenture. In acting under the Loan Agreement, or in refraining
from acting under the Loan Agreement, the Issuer may conclusively rely on the advice of Counsel.

     Section 9.8. Entire 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. TO PROTECT THE OBLIGOR AND THE ISSUER FROM MISUNDERSTANDING OR
DISAPPOINTMENT, ANY AGREEMENTS THE OBLIGOR AND THE ISSUER REACH COVERING SUCH MATTERS ARE CONTAINED
IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE ISSUER
AND THE OBLIGOR, EXCEPT AS THE ISSUER AND THE OBLIGOR MAY LATER AGREE IN WRITING TO MODIFY IT.

     IN WITNESS WHEREOF, the Issuer and the Obligor have caused this First Supplemental Loan
Agreement to be executed in their respective names.

	 	 	 	 	 	 	 
	 	 	THE INDUSTRIAL DEVELOPMENT AUTHORITY	 	 
	 	 	OF ST. CHARLES COUNTY, MISSOURI	 	 
	 
	 	 	 	 	 	 
	[SEAL]
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Attest:

	 	By
	 	      /s/	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 
	          /s/ Debra Wissmann
 

	 	 	 	 	 	 
	Title: Assistant Secretary
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	SYNERGETICS DEVELOPMENT COMPANY, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	          /s/ Kurt W. Gampp	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title: Member	 	 

-15-

 

UNIFORM COMMERCIAL CODE RECEIPT

     Receipt of this original counterpart of the foregoing Loan Agreement is hereby acknowledged
this                      day of December, 2004.

	 	 	 	 	 
	 	 	UMB BANK, N.A., as Trustee
	 
	 	 	 	 
	 

	 	By
	 	 
 

	 

	 	Title:	 	 
	 

	 	 	 	 
 

[The Trustee should sign only on the copy of the Loan Agreement received by it.]

-16-

 

SCHEDULE 1

All of the following-described real estate located in St. Charles County, State of Missouri:

     Lot 7A-1 of O’FALLON CORPORATE CENTRE SUBDIVISION OF LOT 7A, as per plat thereof recorded in
Plat Book 38 page 147 of the St. Charles County Records.

 

 

SCHEDULE 2

All buildings, improvements and fixtures now or hereafter located on the Land and all furnishings,
machinery and equipment and related support facilities purchased in whole or in part from the
proceeds of the Series 2004 Bonds.

 

 

EXHIBIT A

PROMISSORY NOTE

			
	$2,330,000
	 	December 1, 2004

     FOR VALUE RECEIVED, Synergetics Development Company, L.L.C., a Missouri limited liability
company (the “Obligor”) hereby promises to pay to the order of The Industrial Development Authority
of St. Charles County, Missouri, a public corporation of the State of Missouri (the “Issuer”), for
deposit in The Industrial Development Authority of St. Charles County, Missouri, Bond Fund -
Synergetics Development Company Project (the “Bond Fund”) established pursuant to the Indenture of
Trust, dated as of September 1, 2002, as supplemented by the First Supplemental Indenture of Trust,
dated as of December 1, 2004 (as supplemented, the “Indenture”), from the Issuer to UMB Bank, N.A.,
as Trustee (the “Trustee”), the principal amount of $2,330,000 together with interest and premium,
if any, thereon as hereinafter provided. Said sum, together with the interest and premium, if any,
thereon, is payable in federal or other immediately available funds during normal banking hours in
installments as follows:

	 	(a)	 	At or before 11:00 a.m., St. Louis, Missouri time, on the first day of each
calendar month, commencing June 1, 2005, as principal, the amount of the principal of
the Bonds (as hereinafter defined) coming due on such Bond Payment Date, whether at
stated maturity, by redemption or acceleration or otherwise;
	 
	 	(b)	 	At or before 11:00 a.m., St. Louis, Missouri time, on the first day of each
calendar month commencing January 1, 2005, as interest, the amount of the interest
coming due on the Bonds on such Bond Payment Date; and
	 
	 	(c)	 	At or before 11:00 a.m., St. Louis, Missouri time, on or before the day on
which any Bonds are to be redeemed, as premium, if any, the amount of the redemption
premium, if any, on the Bonds coming due on such Bond Payment Date.

     The term “Bond Payment Date” means each Interest Payment Date (as defined in the Indenture)
until the Issuer’s Private Activity Revenue Bonds, Series 2004 (Synergetics Development Company
Project) in the principal amount of $2,330,000 (the “Series 2004 Bonds”) are deemed to be paid
under Article XII of the Indenture, and any other date on which any Series 2004 Bonds are
to be redeemed or on which all of the Series 2004 Bonds have been declared due and payable pursuant
to the Indenture.

     Any moneys on deposit in the Bond Fund on any Bond Payment Date that are available for the
payment of the principal of or redemption premium, if any, or interest on the Series 2004 Bonds and
not previously so credited shall be credited to the extent of such deposits against the obligation
of the Obligor to make the payments described above.

     This Note is issued to evidence the obligation of the Obligor to repay the loan in the amount
of $2,330,000 by the Issuer to the Obligor. This Note is described in and secured by a certain
Future Advance Deed of Trust and Security Agreement dated as of September 1, 2002, as supplemented
by the First Supplemental Future Advance Deed of Trust and Security Agreement dated as of December
1, 2004 (as supplemented, the “Deed of Trust”) executed and delivered by the Obligor to the
mortgage trustee therein named for the benefit of the Issuer and by an Assignment of Leases dated
as of September 1, 2002, as supplemented by the First Supplemental Assignment of Leases dated as of
December 1, 2004 (as supplemented, the “Assignment of Leases”) executed and delivered by the
Obligor for the benefit of the Issuer, both covering certain property located in St. Charles
County, State of Missouri, in which County said Deed of Trust and said Assignment of Leases have
been duly recorded, and to which Deed of Trust and Assignment of Leases reference is hereby made
for a description of the security and a statement of the terms and conditions upon which this Note
is secured. This Note is also described in a certain Loan Agreement

A-1

 

dated as of September 1, 2002, as supplemented by the First Supplemental Loan Agreement dated as of
December 1, 2004 and executed by the Obligor and the Issuer.

     It is intended that the payments of principal of and premium, if any, and interest on this
Note be sufficient to pay when due the principal of and redemption premium, if any, and interest on
the Series 2004 Bonds and, in addition to the installments described above, the Obligor shall pay
upon demand any further amounts in federal or other immediately available funds as may from time to
time be required to pay when due any principal of or redemption premium or interest on the Series
2004 Bonds.

     The obligations of the Obligor to make the payments required hereunder are absolute and
unconditional, all as further described in the Loan Agreement.

     The amounts payable under this Note are subject to prepayment as provided in the Loan
Agreement.

     Upon the occurrence of an Event of Default (as defined in the Loan Agreement), the unpaid
principal of and accrued interest on this Note may, at the option of the holder hereof, be declared
due and payable as provided in the Loan Agreement and the Indenture. The failure of the holder of
this Note to exercise such option and to declare such indebtedness to be due as specified in the
Loan Agreement and the Indenture shall not constitute a waiver of the right at any time thereafter
to declare the entire amount of such indebtedness to be due and payable.

     The Issuer’s right, title and interest in, to and under this Note and the Loan Agreement
(except as specified therein) have been assigned to the Trustee and it is contemplated that the
Issuer will endorse this Note to the order of the Trustee. Payments on this Note shall be made to
the Trustee, as assignee of the Issuer, at the payment office of the Trustee in Kansas City,
Missouri.

     The Obligor hereby waives presentment, demand of payment, protest and notice of non-payment
and of protest and any and all other notices and demands whatsoever.

     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. TO
PROTECT THE OBLIGOR AND THE ISSUER FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS THE
OBLIGOR AND THE ISSUER REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE
COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT BETWEEN THE ISSUER AND THE OBLIGOR, EXCEPT AS THE
ISSUER AND THE OBLIGOR MAY LATER AGREE IN WRITING TO MODIFY IT.

     This Note shall be governed by the laws of the State of Missouri.

     IN WITNESS WHEREOF, the Obligor has caused this Note to be executed in its name as of the day
and year first above written.

	 	 	 	 	 	 	 
	 	 	SYNERGETICS DEVELOPMENT COMPANY, L.L.C.	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 
 

	 	 
	 

	 	 	 	          Title: Member	 	 

A-2

 

ENDORSEMENT

     Pay to the order of UMB Bank, N.A., as Trustee, pursuant to the aforesaid Indenture
authorizing $2,330,000 principal amount of Private Activity Revenue Bonds, Series 2004 (Synergetics
Development Company Project), without recourse.

	 	 	 	 	 	 	 
	 	 	THE INDUSTRIAL DEVELOPMENT AUTHORITY	 	 
	 	 	OF ST. CHARLES COUNTY, MISSOURI	 	 
	 
	 	 	 	 	 	 
	[SEAL]

	 	By
	 	  
 Title:
President	 	 
	 
	 	 	 	 	 	 
	ATTEST:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	  
 Title:
Assistant Secretary
	 	 	 	 	 	 

A-3

 

EXHIBIT B

			
	Request No.                                         
	 	Date:                                        

WRITTEN REQUEST FOR DISBURSEMENT FROM THE INDUSTRIAL DEVELOPMENT AUTHORITY OF ST.
CHARLES COUNTY, MISSOURI — SYNERGETICS DEVELOPMENT COMPANY PROJECT FUND

	 	 	 	 	 
	 

	 	To:
	 	UMB Bank, N.A., as Trustee
	 

	 	 	 	2 South Broadway, Suite 435
	 

	 	 	 	St. Louis, Missouri 63102
	 

	 	 	 	Attention: Corporate Trust Department

as Trustee under the Indenture of Trust, dated as of September 1,
2002, as supplemented by the First Supplemental Indenture of Trust
dated as of December 1, 2004 from The Industrial Development Authority
of St. Charles County, Missouri to said Trustee

     Pursuant to Section 3.3 of the First Supplemental Loan Agreement, dated as of December
1, 2004, supplementing the Loan Agreement dated as of September 1, 2002 (as supplemented, the “Loan
Agreement”), between The Industrial Development Authority of St. Charles County, Missouri and
Synergetics Development Company, L.L.C. (the “Obligor”), the Obligor hereby requests payment from
The Industrial Development Authority of St. Charles County, Missouri — Synergetics Development
Company Project Fund in accordance with this request and said Section 3.3 and hereby states
and certifies as follows:

	 	1.	 	The date and number of this request are as set forth above.
	 
	 	2.	 	All terms in this request shall have and are used with the meanings specified
in the Loan Agreement.
	 
	 	3.	 	The names of the persons, firms or corporations to whom the payments requested
hereby are due, the amounts to be paid and the general classification and description
of the Series 2004 Project Costs or the Costs of Issuance for which each obligation
requested to be paid hereby was incurred are as set forth on Attachment I hereto.
	 
	 	4.	 	Such Project Costs or Costs of Issuance have been made or incurred by the
Obligor and have been paid by the Obligor, if payment to the Obligor is requested, or,
if payment to the Obligor is not requested, are presently due to the persons to whom
payment is requested, are valid Project Costs or Costs of Issuance under the Loan
Agreement and proper charges against the Series 2004 Project Fund and no part thereof
was included in any other request previously filed with the Trustee under the
provisions thereof.
	 
	 	5.	 	Invoices, statements, vouchers or bills for the amounts requested are attached
hereto.

	 	 	 	 	 	 	 
	 	 	SYNERGETICS DEVELOPMENT COMPANY, L.L.C.	 
	 
	 	 	 	 	 	 
	 

	 	By
	 

	 	 	 
	 	 	Authorized Obligor Representative

B-1

 

Consented to this                      day of                     ,                     .

UNION PLANTERS BANK, N.A., as sole Bondowner

	 	 	 	 	 
	By

	 	 
	 	 
	 

	 	 	 	 
	Title:	 	 

B-2

 

ATTACHMENT I

TO WRITTEN REQUEST FOR DISBURSEMENT FROM

THE INDUSTRIAL DEVELOPMENT AUTHORITY

OF ST. CHARLES COUNTY, MISSOURI-

SYNERGETICS DEVELOPMENT COMPANY PROJECT FUND

			
	REQUEST NO.                     
	 	DATED                     ,                    

SCHEDULE OF PAYMENTS REQUESTED

	 	 	 	 	 	 	 
	 	 	 	 	General classification and	 	Specify whether
	Person, firm	 	 	 	description of the Project	 	to be funded from
	or corporation	 	 	 	Cost or Cost of Issuance	 	Costs of Issuance
	to whom payment	 	Amount to	 	for which the Obligation to	 	Account or Project
	is due (1)	 	be paid	 	be paid was incurred (2)	 	Account
	 	 	 	 	 	 	 

 

			
	(1)	 	May be the Obligor if it has previously made such payment.
	 
	(2)	 	If a Project Cost, to be funded from the Project Account and if a Cost of Issuance, to be
funded from the Costs of Issuance Account.

B-3

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