Document:

InVision DO1

Exhibit

10.51

 

***Text

Omitted and Filed Separately

Confidential

Treatment Requested Under

17

C.F.R. §§ 200.80(b)(4), and 240.24b-2

Delivery Order

DTFA01-02-23003

Contract

DTFA01-02-C-00023

DELIVERY ORDER DO#3

Under Contract No.

DTFA01-02-C-00023

 

The purpose of this Delivery Order is to complete the order of 300

Explosives Detection Systems (EDS),  and

order an additional 100 parts kits known as long lead time items, in accordance

with Contract number DTFA01-02-C-00023.  

Items authorized under this Delivery Order are prescribed herein.

 

1.     Section B

 

The Contractor shall provide the following supplies and services in

accordance with the terms and conditions of this letter contract.  The following line item(s) will be ordered

in accordance with the contract amounts set forth below.

 

	

  CLIN

  	

   

  	

  TITLE

  	

   

  	

  QUANTITY

  	

   

  	

  UNIT PRICE

  	

   

  	

  TOTAL

  
	

  0001A

  	

   

  	

  Pass Through SA EDS Unit (CTX-2500) w/powered

  incline conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  
	

  0001A

  	

   

  	

  Pass Through SA EDS Unit (CTX-2500) w/powered incline

  conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  
	

  00A1A

  	

   

  	

  Parts Kits for SA EDS Unit (CTX-2500) w/powered

  incline conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  
	

  0006A

  	

   

  	

  Pass Through SA EDS Unit (CTX-5500) w/powered

  incline conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  
	

  00006A

  	

   

  	

  Pass Through SA EDS Unit (CTX-5500) w/powered

  incline conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  
	

  0006A

  	

   

  	

  Parts Kit for SA EDS Unit (CTX-5500) w/powered

  incline conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  	

   

  	

  [...***...]

  
	

   

  	

   

  	

  TOTAL ORDERED

  	

   

  	

   

  	

   

  	

   

  	

   

  	

  $148,600,000

  

 

2.     Funding: 

Funding in the amount of $148,600,000 is hereby authorized under this

Delivery Order, under the provisions set forth below:

 

3.2.4-22 Limitation of Government Liability (April 1996)

 

(a)   In performing this contract, the Contractor

is not authorized to make expenditures or incur obligations exceeding

$148,600,000 dollars.

 

(b)   The maximum amount for which the Government

shall be liable if this contract is terminated is $148,600,000 dollars.

 

(End of clause)

 

Expenditures

above that amount are not authorized, and are at InVision’s own risk.

 

3.  Section C

 

The Contractor shall deliver the supplies and services associated with

the above CLINs in accordance with the Statement of Work in Contract

DTFA01-02-C-00023.

* Confidential Treatment Requested

 

 

 

 

4.  Section F

 

The CLINS are to be delivered to the following locations (TBD locations

will be supplied upon completion of FAA site surveys.

 

	

  ITEM NO.

  	

   

  	

  SUPPLY/SERVICE

  	

   

  	

  QTY

  	

   

  	

  DATE OF

  DELIVERY

  	

   

  	

  PLACE OF

  DELIVERY

  	

   

  	

  PLACE OF

  ACCEPTANCE

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  0001A

  	

   

  	

  Pass Through SA EDS Unit (CTX-2500) w/powered

  inclined conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  By [...***...]

  	

   

  	

   

  	

   

  	

  FOB ORIGIN

  
	

  0001A

  	

   

  	

  Pass Through SA EDS Unit (CTX-2500) w/powered

  inclined conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  By [...***...]

  	

   

  	

   

  	

   

  	

  FOB ORIGIN

  
	

  0001A

  	

   

  	

  Pass Through SA EDS Unit (CTX-2500) w/powered

  inclined conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  By [...***...]

  	

   

  	

   

  	

   

  	

  FOB ORIGIN

  
	

  0001A

  	

   

  	

  Total 

  Production Units

  	

   

  	

  [...***...]

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  
	

  0006A

  	

   

  	

  Pass Through SA EDS Unit (CTX-5500) w/powered

  incline conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  By [...***...]

  	

   

  	

   

  	

   

  	

  FOB ORIGIN

  
	

  0006A

  	

   

  	

  Pass Through SA EDS Unit (CTX-5500) w/powered

  incline conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  By [...***...]

  	

   

  	

   

  	

   

  	

  FOB ORIGIN

  
	

  0006A

  	

   

  	

  Pass Through SA EDS Unit (CTX-5500) w/powered

  incline conveyor and baggage exit slide/conveyor

  	

   

  	

  [...***...]

  	

   

  	

  By [...***...]

  	

   

  	

   

  	

   

  	

  FOB ORIGIN

  
	

  0006A

  	

   

  	

  Total Production Units

  	

   

  	

  [...***...]

  	

   

  	

   

  	

   

  	

   

  	

   

  	

   

  

 

b.  Period of

Delivery

 

The period of delivery for this order is from the date of award through

September 30, 2002.

* Confidential Treatment Requested

 

2

 

5. Section G

 

a)  The

following administration data applies to this order:

 

Contracting Officer

 

      Federal Aviation

Administration

      Kimberley T. Branch, ASU-360

      590 Herndon Parkway, Suite

120

      Herndon, VA  20170-5232

      Telephone (703) 796-7118

      Fax (703) 707-5675

 

Contracting

Officer’s Technical Representative (COTR)

 

      Federal Aviation

Administration

      Ed Ocker, AAR-600

      590 Herndon Parkway, Suite

120

      Herndon, VA  20170-5232

      Telephone (703) 796-7104

      Fax (703) 707-5675

 

Quality

Reliability Officer (QRO)

 

      Federal Aviation Administration

      Quality Reliability Officer

(QRO)

      Lindsey Humphrey, ASU-200

      7151 Gateway Boulevard

      Newark, CA  94560

      Telephone (510) 739-2516

      Fax (510) 739-6400

 

 

b.             This

Delivery Order is funded in the amount of 

$148,600,000.  This amount is

considered the contract ceiling.  Unless

modified by the Contracting Officer in writing, the Contractor may not exceed

this ceiling except at its own risk (see clause in Contracting Officer’s letter

dated February 19, 2002 — Limitation of Government Liability (Apr 1996)

 

c.             The

Contractor shall submit to the FAA Contracting Officer the serial numbers/ID

numbers for each system delivered under this Delivery Order, at least one week

prior to, but no later than, delivery of the system.

 

 

6.  Section H —

Special Terms and Conditions

 

The following terms apply to this Delivery Order, number

DTFA01-02-23003 only.

 

(1)   In the event the Contractor fails to meet the

delivery schedule as provided herein, such failure will be considered in

accordance with the Termination for Default clause (AMS 3.10.6-4(1996)).

 

(2)   The Contractor shall execute and perform all

terms and conditions of the License Agreement contained in the Letter Contract

under which this Delivery Order is executed. 

Failure to adhere to the licensing agreement may result in the

Government terminating the contract for default pursuant to the Termination for

Default clause (AMS 3.10.6-4(1996)).

 

3

 

(3)           Payment Terms:

 

For CLIN 0001A, 0006A Production Units.

 

For units 101 through 400:

 

70% of the CLIN price at satisfactory completion of Factory Acceptance

Test (minus any previously paid long-lead items).  Satisfactory completion includes a signed form FAA-256,

Inspection Report of Material and/or Services.

 

30% of the CLIN price at satisfactory completion of Site Acceptance

Test, or 20% upon satisfactory completion of the Site Acceptance Test if the

contractor is responsible for training, but not later than 90 days after

successful completion of the Factory Acceptance Test.  Satisfactory completion includes a signed form FAA-256,

Inspection Report of Material and/or Services.

 

10% of the CLIN price when the unit is fully operational, i.e., at the

completion of Initial Operator Training, if the contractor is responsible for

training.

 

For units 401 through 500:

 

Up to 40% of the CLIN price at time of order, but not to exceed the

actual costs of long lead items.

 

For CLIN 00A1A, 00A6A Production Units.

 

InVision will submit a request for payment / invoice for actual costs

incurred consistent with the quantities identified in Delivery Order #3.

 

7.  Defense

Priority and Allocation Requirement

The TSA is seeking approval for use of, as a minimum,

a DO rated order certified for national defense use.  It is anticipated that the approval will be forthcoming very

quickly.  Once approved, the Contractor

shall follow all the requirements of the Defense Priorities and Allocations

System regulation (15 Code of Federal Regulations Part 700).

 

 

END OF DELIVERY ORDER

 

4Silicon Valley Bank

Exhibit 10.52

Silicon Valley Bank

Amendment to Loan Documents

 

Borrower:             InVision

Technologies, Inc.

 

Date:                      March

4, 2002

 

THIS AMENDMENT TO LOAN DOCUMENTS is

entered into between Silicon Valley Bank (“Silicon”) and the borrower named

above (“Borrower”).

 

The Parties agree to amend the Loan and

Security Agreement between them, dated November 8, 2000 (as otherwise amended,

if at all, the “Loan Agreement”), as follows, effective as of the date

hereof.  (Capitalized terms used but not

defined in this Amendment shall have the meanings set forth in the Loan

Agreement.)

 

1.             Modified

Early Termination Fee.  The sentence in Section 6.2 of the Loan

Agreement that currently reads as follows:

 

If

this Agreement is termi­nated by Borrower under this Section 6.2, Borrower

shall pay to Silicon a termination fee in an amount equal to one-half of one

percent (0.50%) of the Maximum Revolving Credit Limit, provided that no

termination fee shall be charged if the credit facility hereunder is replaced

with a new facility from another division of Silicon Valley Bank.

 

is hereby amended to

read as follows:

 

If

this Agreement is termi­nated by Borrower under this Section 6.2, Borrower

shall pay to Silicon a termination fee in an amount equal to $50,000, provided

that no termination fee shall be charged if the credit facility hereunder is

replaced with a new facility from another division of Silicon Valley Bank.

 

2.             Modified

Definition of Eligible Receivables.  Subclause (i) of the Minimum Eligibility

Requirements set forth in the definition of Eligible Receivables in Section 8

of the Loan Agreement is hereby amended to read as follows:

 

(i)

the Receivable must not be outstanding for more than 120 days from its invoice

date,

 

3.             Modified

Definition of Eligible Receivables.  The sentence in the definition of Eligible

Receivables in Section 8 of the Loan Agreement that currently reads as follows:

 

 

1

 

In

addi­tion, if more than 50% of the Receivables owing from an Account Debtor are

outstanding more than 90  days from their invoice date (without

regard to unapplied credits) or are otherwise not eligible Receivables, then

all Receivables owing from that Account Debtor will be deemed ineligible for

borrowing.

 

is

hereby amended to read as follows:

 

In

addi­tion, if more than 50% of the Receivables owing from an Account Debtor are

outstanding more than 120  days from their invoice date (without

regard to unapplied credits) or are otherwise not eligible Receivables, then

all Receivables owing from that Account Debtor will be deemed ineligible for

borrowing.

 

4.             Modified

Credit Limit.  The

Credit Limit set forth in Section 1 of the Schedule to Loan and Security

Agreement is hereby amended to read as follows:

 

“1.  Credit Limit

(Section 1.1):                                 An amount equal

to the sum of (A) and (B) below:

 

A.            Revolving

Loans.  An amount not to exceed the

lesser of:  (i) $12,000,000 at any one time

outstanding (the “Maximum Revolving Credit Limit”); or (ii) 80%

of the amount of Borrower’s Eligible Receivables (as defined in Section 8

above), plus

 

B.            Term Loans.  An amount equal to the unpaid principal

balance from time to time outstanding of Term Loan #1 (as defined in the

Existing Loan Documents) (the “Term Loans”). 

The current unpaid principal balance outstanding of Term Loan #1 is

$187,700.

 

                                        Letter of

Credit

                                        Sublimit

                                        (Section

1.5):                                 $12,000,000.

 

Foreign

Exchange

Contract

Sublimit:                      $12,000,000.

 

Borrower

may enter into foreign exchange forward contracts with Silicon, on its standard

forms, under which Borrower commits to purchase from or sell to Silicon a set

amount of foreign currency more than one business day after the contract date

(the “FX Forward Contracts”); provided that: (1) at the time the FX Forward

Contract is entered into Borrower

 

 

2

 

has

Loans available to it under this Agreement in an amount at least equal to 10%

of the amount of the FX Forward Contract; (2) the total FX Forward Contracts at

any one time outstanding may not exceed 10 times the amount of the Foreign

Exchange Contract Sublimit set forth above; and (3) each FX Forward Contract

shall have an expiry date no later than thirty days prior to the Maturity Date,

provided that an FX Forward Contract may have an expiry date later than thirty

days prior to the Maturity Date if and only if Borrower’s Obligations with

respect to such FX Forward Contract are secured by cash in an interest bearing

account, in an amount equal to 10% of such FX Forward Contract, on terms

acceptable to Silicon in its sole discretion. Silicon shall have the right to

withhold, from the Loans otherwise available to Borrower under this Agreement,

a reserve (which shall be in addition to all other reserves) in an amount equal

to 10% of the total FX Forward Contracts from time to time outstanding. Silicon

may, in its discretion, terminate the FX Forward Contracts at any

time that an Event of Default occurs and is continuing. Borrower shall

execute all standard form applications and agreements of Silicon in connection

with the FX Forward Contracts, and without limiting any of the terms of such

applications and agreements, Borrower shall pay all standard fees and charges

of Silicon in connection with the FX Forward Contracts.

 

Notwithstanding

the foregoing, Borrower agrees that at no time shall the amount of outstanding

Obligations under this Agreement and the Exim Agreement exceed $20,000,000 in

the aggregate.

 

Additionally,

Borrower covenants and agrees that if at any time the value of the Collateral,

as determined by Silicon in its discretion, is less than the aggregate amount

of the outstanding Letters of Credit and FX Forward Contracts (the difference

between the value of the Collateral and the aggregate outstanding Letters of

Credit and FX Forward Contracts is hereinafter referred to as the “Collateral

Shortfall”), Borrower shall provide Silicon cash collateral in an amount equal

to the Collateral Shortfall to secure all of the Obligations relating to said

Letters of Credit and FX Forward Contracts, pursuant to Silicon’s then standard

form cash pledge agreement.”

 

5.             Modified

Interest Rate.  Section

2 of the Schedule to Loan and Security Agreement is hereby amended to read as

follows:

 

                “2.          INTEREST.

 

 

3

 

Interest

Rate (Section 1.2):

 

A

rate equal to the “Prime Rate” in effect from time to time, plus 1.50%

per annum; provided, however, if Borrower maintains with Silicon

and/or invests through Silicon at least 80% of Borrower’s cash and cash

equivalents, then a rate equal to the “Prime Rate” in effect from time to time,

plus 1.0%

per annum; provided, further, that if Borrower completes a public

offering of its equity securities after the date of this Amendment and

maintains with Silicon and/or invests through Silicon at least 50% of

Borrower’s cash and cash equivalents, then a rate equal to the “Prime Rate” in

effect from time to time, plus 1.0% per annum.  Such reduction(s) and increase(s) of the interest rate may be

made throughout the term of this Agreement.

 

The

foregoing rate increase or decrease (as the case may be) will go into effect

following Silicon’s review and approval of Borrower’s financial statements and will

be effective as of the date of Borrower’s monthly financial statements showing

that the interest rate should be increased or decreased, as the case may be,

provided that such monthly financial statements are provided to Silicon in

accordance with the terms hereof. Notwithstanding the foregoing, in no event

shall an interest rate reduction go into effect if, at the date it is to go

into effect, an Event of Default has occurred and is continuing.

 

Interest

shall be calculated on the basis of a 360-day year for the actual number of

days elapsed.  “Prime Rate” means the

rate announced from time to time by Silicon as its “prime rate;” it is a base

rate upon which other rates charged by Silicon are based, and it is not

necessarily the best rate available at Silicon.  The interest rate applicable to the Obligations shall change on

each date there is a change in the Prime Rate.

 

With

respect to Term Loan #1, the interest rate shall be a rate equal to the Prime

Rate in effect from time to time, plus 1.5% per annum. Interest shall be

calculated on the basis of a 360-day year for the actual number of days

elapsed.  The interest rate applicable

to the Obligations pertaining to the Term

 

4

 

Loans

shall change on each date there is a change in the Prime Rate.

 

            Minimum

Monthly

            Interest

(Section 1.2):              Not

Applicable.”

 

6.             Modified

Maturity Date.  Section 4 of the Schedule to Loan and

Security Agreement is hereby amended to read as follows:

 

“4.       MATURITY DATE

(Section

6.1):                             February 28,

2003.

 

The outstanding principal

balance of Term Loan #1 will continue to be repaid in monthly principal

payments of $11,041.72 each in accordance with the terms of the Existing Loan

Documents until the earlier of:  (i)

June 29, 2003, (ii) all Obligations related to Term Loan #1 have been

indefeasibly paid in full to Silicon or (iii) the date this Agreement

terminates by its terms or is terminated by either party in accordance with its

terms.  Interest on Term Loan #1 shall

be payable monthly as provided for in Section 1.2 of this Agreement.”

 

7.             Modified

Tangible Net Worth.  The

Tangible Net Worth Financial Covenant set forth in Section 5 of the Schedule to

Loan and Security Agreement is hereby amended from “$32,000,000” to

“$45,000,000.”

 

8.             Modified

Covenant Regarding Transactions with Subsidiaries.  The dollar limitation

set forth in Subclause (6) of Section 9 of the Schedule to Loan and Security

Agreement is hereby amended from “$500,000” to “$1,000,000.”

 

9.             Fee.  In consideration for Silicon entering into

this Amendment, Borrower shall concurrently pay Silicon a fee in the amount of

$33,333.34, which shall be non-refundable and in addition to all interest and

other fees payable to Silicon under the Loan Documents.  Silicon is authorized to charge said fee to

Borrower’s loan account.

 

10.          Representations

True.  Borrower represents and warrants to Silicon

that all representations and warranties set forth in the Loan Agreement, as

amended hereby, are true and correct.

 

11.          General

Provisions.  This

Amendment, the Loan Agreement, any prior written amendments to the Loan

Agreement signed by Silicon and Borrower, and the other written documents and

agreements between Silicon and Borrower set forth in full all of the

representations and agreements of the parties with respect to the subject matter

hereof and supersede all prior discussions, representations, agreements and

under­standings between the parties with respect to the subject hereof.  Except as herein expressly amended, all of

the terms and provisions of the Loan Agreement, and all other documents and

agreements between Silicon

 

5

 

and Borrower shall

continue in full force and effect and the same are hereby ratified and

confirmed.

 

 

	

  Borrower:

  	

   

  	

  Silicon:

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   INVISION

  TECHNOLOGIES, INC.

  	

   

  	

   SILICON VALLEY BANK

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   By

  	

  /s/ Ross Mulholland, CFO

  	

   

  	

   By

  	

   /s/ Milad

  Hanna

  	

   

  
	

   

  	

  President or Vice President

  	

   

  	

   Title 

  	

  Sr. Vice President

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   By

  	

   

  	

   

  	

   

  	

   

  
	

          Secretary or Ass’t Secretary

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  

 

 

 

6

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