Document:

EXHIBIT 10.1

 

WAIVER

WAIVER, dated as of January 26, 2015 (this "Waiver"), with respect to that certain Credit Agreement, dated as of May 12, 2014 (as amended, supplemented or otherwise modified, the "Credit Agreement"), by and among PhotoMedex, Inc., as borrower (the "Borrower"), the Loan Parties from time to time party thereto, the Lenders from time to time party thereto, and JPMorgan Chase Bank, N.A., as administrative agent (the "Administrative Agent"), among others.

W I T N E S S E T H :

WHEREAS, pursuant to the Credit Agreement, the Lenders have made Loans and other extensions of credit to the Borrower which remain outstanding;

WHEREAS, the Borrower, the other Loan Parties, the Administrative Agent and the Lenders are parties to that certain Amended and Restated Forbearance Agreement dated as of October 31, 2014 (the "Forbearance");

WHEREAS, Events of Default have occurred and are continuing as a result of  any failure of the Borrower to comply with (i) Section 4.5 of the Forbearance by virtue of the delay in delivery of the Cash on Hand certificate for the period ending January 2, 2015, and (ii) Sections 4.7 (c) and (d) of the Forbearance (collectively, the "Forbearance Defaults"); and

WHEREAS, the Borrower has requested that the Administrative Agent and the Required Lenders waive the Forbearance Defaults, and the Administrative Agent and the Required Lenders are willing to do so, but only on the terms and conditions set forth herein;

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

ARTICLE I

 DEFINITIONS

Section 1.1                            Defined Terms.  Unless otherwise defined herein, capitalized terms used herein have the meanings assigned in the Credit Agreement, and the other Loan Documents.

 

ARTICLE II

 WAIVER; AGREEMENT

Section 2.1                          .  Waiver.   Subject to the terms and conditions hereof, the Administrative Agent and the Required Lenders hereby waive the Forbearance Defaults.

Section 2.2                            Agreement.  The Administrative Agent and the Lenders hereto agree and acknowledge that those monthly amortization payments made on October 1, 2014, November 1, 2014 and December 1, 2014 were made in lieu of that certain amortization payment otherwise due on November 30, 2014.

 

 

ARTICLE III

 CONDITIONS PRECEDENT

This Waiver shall not become effective unless and until each of the conditions precedent set forth below has been satisfied or the satisfaction thereof shall have been waived in accordance with the terms hereof:

(a)            Receipt by the Administrative Agent of counterparts of this Waiver, duly executed and delivered by the Administrative Agent, the Required Lenders and the Loan Parties; and

(b)            Receipt by the Administrative Agent of payment in full in cash of its invoiced and unpaid reasonable and documented fees and out-of-pocket expenses incurred in connection with the Credit Agreement or the other Loan Documents (which shall be deemed to include this Waiver), including, without limitation, the reasonable fees and disbursements of the Administrative Agent's counsel and advisors.

ARTICLE IV

 INTERPRETATION

Section 4.1                            Continuing Effect of the Credit Agreement and the Forbearance.  The Loan Parties, the Administrative Agent and the Lenders hereby acknowledge and agree that the Credit Agreement and the Forbearance shall continue to be and remain unchanged and in full force and effect in accordance with its terms, except as expressly provided herein.

 

Section 4.2                            No Waiver; Other Defaults or Events of Default.   Nothing contained in this Waiver shall be construed or interpreted or is intended as a waiver of or limitation on any rights, powers, privileges or remedies that the Administrative Agent or the Lenders have or may have under the Credit Agreement, the Forbearance or any other Loan Document on account of any Default or Event of Default other than as expressly set forth herein.

ARTICLE V

 MISCELLANEOUS

Section 5.1                            Representations and Warranties.  The Loan Parties hereby represent and warrant as of the date hereof that, after giving effect to this Waiver, (a) no Default or Event of Default has occurred and is continuing, except the Forbearance Defaults and the Specified Events of Default (as defined in the Forbearance) and (b) all representations and warranties of the Loan Parties contained in the Loan Documents (which shall be deemed to include this Waiver) are true and correct in all material respects with the same effect as if made on and as of such date, except that Section 3.07 of the Credit Agreement shall be deemed to exclude the Forbearance Defaults and the Specified Events of Default (as defined in the Forbearance).

 

Section 5.2                            Payment of Fees and Expenses.  The Borrower agrees to pay or reimburse the Administrative Agent upon demand, for all its reasonable and documented out-of-pocket costs and expenses incurred in connection with the Credit Agreement or the other Loan Documents (which shall be deemed to include this Waiver), including, without limitation, the reasonable fees and disbursements of the Administrative Agent's counsel and advisors.

 

 

Section 5.3                            Counterparts.  This Waiver may be executed by the parties hereto in any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.

 

Section 5.4                            GOVERNING LAW.  THIS WAIVER AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS WAIVER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

Section 5.5                            Release.  The Loan Parties, on behalf of themselves and successors-in-title, legal representatives and assignees and, to the extent the same is claimed by right of, through or under any of the Loan Parties, for its past, present and future employees, agents, representatives, officers, directors, shareholders, and trustees (each, a "Releasing Party" and collectively, the "Releasing Parties") hereby release, waive, and forever relinquish all claims, demands, obligations, liabilities and causes of action of whatever kind or nature (including, without limitation, any so-called "lender liability" claims, interest or other carrying costs, penalties, legal, accounting and other professional fees and expenses and incidental, consequential and punitive damages payable to third parties, or any claims arising under 11 U.S.C. §§ 541-550 or any claims for avoidance or recovery under any other federal, state or foreign law equivalent), whether known or unknown, which any of the Releasing Parties have, may have, or might assert at the time of execution of this Waiver against the Administrative Agent, the Lenders and/or their respective parents, affiliates, participants, officers, directors, employees, agents, attorneys, accountants, consultants, successors and assigns, directly or indirectly, which occurred, existed, was taken, permitted or begun prior to the execution of this Waiver, arising out of, based upon, or in any manner connected with (i) any transaction, event, circumstance, action, failure to act or occurrence of any sort or type, whether known or unknown, with respect to the Credit Agreement, any other Loan Document and/or the administration thereof or the Obligations created thereby; (ii) any discussions, commitments, negotiations, conversations or communications with respect to the refinancing, restructuring or collection of any Obligations related to the Credit Agreement, any other Loan Document and/or the administration thereof or the Obligations created thereby, or (iii) any matter related to the foregoing, in each case, prior to the execution of this Waiver.

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver to be duly executed and delivered by their proper and duly authorized officers as of the date first above written.

PHOTOMEDEX, INC.,

 a Nevada corporation

By:/s/ Dennis M. McGrath                                  

Name:  Dennis M. McGrath

 Title:  President and Chief Financial Officer

LCA-VISION INC.,

 a Delaware corporation

By:/s/ Dennis M. McGrath                                  

Name:  Dennis M. McGrath

 Title:  President

RADIANCY, INC.,

 a Delaware corporation

By:/s/ Dolev Rafaeli                                             

Name:  Dolev Rafaeli

 Title:  President and Chief Executive Officer

PHOTOMEDEX TECHNOLOGY, INC.,

 a Delaware corporation

By:/s/ Dennis M. McGrath                                  

Name:  Dennis M. McGrath

 Title:   President

LUMIERE, INC.,

 a Nevada corporation

By:/s/ Dennis M. McGrath                                  

Name:  Dennis M. McGrath

 Title:   President

JPMORGAN CHASE BANK, N.A., as Administrative Agent and a Lender

By: By:/s/ Lauren Daley                                  

Name:  Lauren Daley

 Title:  Authorized Officer

FIRST NIAGARA BANK, N.A., as a Lender

By:/s/ Gary P. Danis                                  

Name: Gary P. Danis

 Title:  First Vice President

PNC BANK, N.A., as a Lender

By:/s/ John Ataman                                  

Name: John Ataman

 Title: Vice PresidentExhibit10.1

EXHIBIT 10.1

FIRST AMENDMENT
TO 
MASTER AMENDMENT AGREEMENT

THIS FIRST AMENDMENT TO MASTER AMENDMENT AGREEMENT is made on January 26, 2015 

BETWEEN

		
	(1)
	ZEPHYR FARMS LIMITED, a corporation organized and existing under the laws of Ontario, Canada with a principal place of business at 161 Bay Street 27th Floor, Toronto, Ontario (“Zephyr”);

		
	(2)
	SCHNEIDER POWER INC., a corporation organized and existing under the laws of Ontario, Canada with a principal place of business at 161 Bay Street, 27th Floor, Toronto, Ontario (“Schneider” and together with Zephyr, the “Obligors”);

		
	(3)
	SAMSUNG HEAVY INDUSTRIES CO., LTD., a corporation established and existing under the laws of the Republic of Korea, having its registered offices at Samsung Life Insurance Seocho Tower 1321-15, Seocho-dong, Seocho-Gu, Seoul 137-857, Republic of Korea (“Samsung”).

BACKGROUND:
		
	(A)
	Zephyr is the owner of a 10 MW wind power project in Brooke-Alvinston Township, Lambton County, Ontario, Canada (the “Project”);

		
	(B)
	Zephyr and Samsung entered into a certain wind turbine generator (WTG) supply agreement dated June 30, 2010, as amended pursuant to a first amendment agreement dated February 8, 2012 (as may be further amended from time to time, the “Turbine Supply Agreement”);

		
	(C)
	Zephyr, Schneider and Samsung entered into a certain Master Amendment Agreement on March 19, 2013 (the “Master Amendment Agreement”), which, among other things, further amended the Turbine Supply Agreement;

		
	(D)
	This Agreement sets out the terms and conditions on which the parties hereto have agreed to amend Section 3(v) of the Master Amendment Agreement and to further amend the Turbine Supply Agreement:

IT IS AGREED as follows:

		
	1.
	Amendment to Master Amendment Agreement and Turbine Supply Agreement

		
	(i)
	Section 3(v) of the Master Amendment Agreement and the paragraphs under the heading “Payment Schedule” in Attachment 3 (Price, Payments and Termination Charges) shall be deleted and replaced by the following:

“Payment of the Contract Price and the interest accrued thereon shall be made as set forth in the schedule below without setoff of any kind. At least ten (10) days before the due date for any payments due under this Agreement, the Seller shall notify the Buyer of the amounts due and payable by the Buyer to the Seller. All payments by the Buyer to the Seller under this Agreement shall be made in immediately available funds to such account or accounts as the Seller may notify to the Buyer not less than seven (7) days before such payment is required to be effected by the Buyer. Late payments shall be subject to a default interest equal to two percent in excess of the interest otherwise payable, compounded on an annual basis. The Parties acknowledge and agree that the failure by the Buyer to pay any amount due hereunder (and to the extent such failure is not remedied within any applicable grace period hereunder) shall constitute an Event of Default under the amended and restated credit agreement entered into between the Parties and dated as of March 19, 2013.”

TURBINE PAYMENT SCHEDULE

	
				
	Date
	Principal Payment Amount (CAD)
	Interest Payment Amount (CAD)
	Sub-Total Payment Amount (CAD)

	31-7-2013
	0
	515,424.65
	515,424.65

	31-1-2014
	213,051
	523,967.60
	737,018.60

	31-7-2014
	213,051
	508,462.01
	721,513.01

	31-1-2015
	226,867
	47,644.88
	274,511.88

	31-7-2015
	226,867
	494,085.24
	720,952.24

	31-1-2016
	241,411
	966,147.11
	1,207,558.44

	31-7-2016
	241,411
	481,426.88
	722,837.88

	31-1-2017
	257,408
	478,697.08
	736,105.08

	31-7-2017
	257,408
	462,480.01
	719,888.01

	31-1-2018
	1,817,849
	461,593.77
	2,279,442.77

	31-7-2018
	1,817,849
	394,659.48
	2,212,508.48

	31-1-2019
	391,927
	340,807.82
	732,734.82

	31-7-2019
	391,927
	322,442.78
	714,369.78

	31-1-2020
	418,104
	314,766.44
	732,870.44

	31-7-2020
	418,104
	297,605.69
	715,709.69

	31-1-2021
	445,008
	286,985.72
	731,993.72

	31-7-2021
	445,008
	267,763.49
	712,771.49

	31-1-2022
	473,368
	257,417.39
	730,785.39

	31-7-2022
	3,874,175
	237,750.45
	4,111,925.45

	31-1-2023
	3,400,807
	112,982.41
	3,513,789.41

	Total
	15,771,600
	7,774,206.51
	23,545,806.51

		
	2
	MISCELLANEOUS

		
	2.1
	Counterparts.  This Agreement may be executed in any number of counterparts.

		
	2.2
	Successors.  This Agreement shall be binding upon, and shall inure to the benefit of and may be relied upon by, the parties hereto and their respective successors and permitted assigns and transferees, including, for the avoidance of doubt, any subsequent successors, permitted assigns and transferees.

		
	2.3
	Governing law. This Agreement shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective duly authorized signatories as of the day and year first written above.

ZEPHYR FARMS LIMITED

By:    /s/ W. Brian Olson                                                                   
Name: W. Brian Olson
Title: Director

SCHNEIDER POWER INC.

By:    /s/ W. Brian Olson                    
Name: W. Brian Olson
Title: Director

SAMSUNG HEAVY INDUSTRIES CO., LTD.

By:     /s/ GeunChang Lee                                                                       
Name:  GeunChang Lee
Title:  Head of WTG Business Strategy Dept., Wind Energy Division

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