Document:

Silicon Valley Bank

Exhibit 10.53

Silicon

Valley Bank

 

Amendment to Loan Documents

 

(Exim Program)

 

Borrower:             InVision

Technologies, Inc.

 

Date:                      March

4, 2002

 

THIS AMENDMENT TO LOAN DOCUMENTS (EXIM PROGRAM) is

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

above (“Borrower”).

 

The Parties agree to amend the Loan and

Security Agreement (Exim Program) 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

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 180 days from its invoice

date,

 

2.             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:

 

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 180  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.

 

 

1

 

3.             Modified

Concentration Limit.  The

sentence in the definition of “Eligible Receivables” in Section 8 of the Loan

Agreement that currently reads as follows:

 

Receivables

owing from one Account Debtor will not be deemed Eligible Receivables to the

extent they exceed 10% of the total Receivables outstanding; provided, however,

such percentage shall be 25% with respect to Receivables for which STBA France

is the Account Debtor.

 

is

hereby amended to read as follows:

 

Receivables

owing from one Account Debtor will not be deemed Eligible Receivables to the

extent they exceed 25% of the total Receivables outstanding; provided, however,

such percentage shall be 60% with respect to Receivables for which STBA France

or Aeroports de Paris (ADP) is the Account Debtor.

 

4.             Modified

Credit Limit.  Section 1 of the Schedule to Loan and

Security Agreement (Exim Program) is hereby amended to read as follows:

 

“1.      Credit Limit

(Section 1.1):                             The

unpaid principal balance of all Exim Loans and all accrued interest thereon

from time to time outstanding may not exceed the lesser of:

 

(i)            $10,000,000

at any one time outstanding (the “Maximum Exim Credit Limit”); or

 

(ii)           the sum of (a), (b)

and (c) below:

 

(a)

90%

of the amount of Borrower’s eligible export Receivables, which Silicon in its

discretion deems eligible for borrowing and for which a FX Forward Contract (as

defined below) has been entered into with respect to the currency in which such

Receivable is denominated, plus

 

(b)

70%

of the amount of Borrower’s eligible export Receivables, which Silicon in its

discretion deems eligible for borrowing but for which an applicable FX Forward

Contract (as defined below) has not been entered into, plus

 

(c)

the lesser of (A), (B) or (C) below:

 

(A)          70% of the value of

Borrower’s exportable Eligible Inventory, valued at

 

 

2

 

the lower of cost or market

value, or

 

(B)           60% of the total outstanding

Exim Loans under this Agreement, or

 

(C)           $4,000,000.

 

                                                                        Without

limiting the fact that the determination of which accounts and inventory are

eligible for borrowing is a matter of Silicon’s discretion, the following will

not be deemed eligible for borrowing: 

accounts and inventory which are not “Eligible Export-Related Accounts

Receivable” or “Eligible Export-Related Inventory” (respectively) as defined in

the Borrower Agreement of substantially even date herewith executed by Silicon

and the Borrower in favor of the Export Import Bank of the United States, including

the annexes attached thereto (collectively referred to as the “Exim Borrower

Agreement”).  Without limiting the

foregoing, with respect to each Loan requested by Borrower with respect to

Eligible Export-Related Inventory, Borrower shall provide Silicon with copies

of valid purchase orders for such Inventory and such other documentation as

Silicon shall request in its good faith business judgment.

 

Agreement

Subject

to Exim

Borrower

Guarantee;

Costs:                   This Agreement

is subject to all of the terms and conditions of the Exim Borrower Agreement

(including without limitation any attachments and annexes thereto) which are

hereby incorporated herein by this reference. 

Borrower expressly agrees to perform all of the obligations and comply

with all of the affirmative and negative covenants and all other terms and

conditions set forth in the Exim Borrower Agreement as though the same were

expressly set forth herein, and all of the same are hereby incorporated herein

by this reference.  In the event of any

conflict between the terms of the Exim Borrower Agreement and the other terms

of this Agreement, whichever terms are more restrictive shall apply.  Borrower shall reimburse Silicon for all

fees and all out of pocket costs and expenses 

 

 

3

 

                                                    incurred

by Silicon with respect to the Exim Borrower Agreement, including without

limitation all facility fees and usage fees, and Silicon is authorized to debit

Borrower’s account with Silicon for such fees, costs and expenses when paid by

Silicon.

 

Letter of

Credit Sublimit

(Section 1.5):                             $10,000,000.

 

Foreign

Exchange

Contract

Sublimit:                  $10,000,000.

 

                                                    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 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 

 

 

4

 

                                                    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 Non-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, FX Forward Contracts and Standby Letter

of Credit Bid Bonds (the difference between the value of the Collateral and the

aggregate outstanding Letters of Credit, FX Forward Contracts and Standby

Letter of Credit Bid Bonds 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, FX Forward Contracts and Standby Letter of Credit Bid Bonds,

pursuant to Silicon’s then standard form cash pledge agreement.”

 

5.             Modified

Interest Rate.  Section

2 of the Schedule to Loan and Security Agreement (Exim Program) is hereby amended

to read as follows:

 

                “2.          INTEREST.

 

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 

 

 

5

 

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.

 

            Minimum

Monthly

            Interest

(Section 1.2):              Not

Applicable.”

 

6.             Modified

Maturity Date.  Section 4 of the Schedule to Loan and Security

Agreement (Exim Program) is hereby amended to read as follows:

 

“4.       MATURITY DATE

(Section

6.1):                             February 28,

2003.”

 

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

$100,000, 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

 

 

6

 

and provisions of the

Loan Agreement, and all other documents and agreements between Silicon 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

  	

   

  	

   

  

 

 

 

 

 

7[FOR PEOPLE OVER 40]

Exhibit 10.41

AGREEMENT

AND GENERAL RELEASE

 

Manufacturers’ Services Ltd., 300 Baker Avenue, Concord

Massachusetts 01742, its, affiliates, subsidiaries, divisions, successors and

assigns and the employees, officers, directors and agents thereof (collectively

referred to throughout this Agreement as “Employer”), and Rodolfo  Archbold, (“Employee”) agree that:

 

1.             Last

Day of Employment. 

Employee’s last day of employment with Employer is March 29, 2002.

 

2.             Termination Date.   Employee’s termination date is March 29,

2002.

 

3.             Consideration. In

consideration for signing this Agreement and General Release and in compliance

with the promises made herein, Employer agrees:

 

a.            To make or pay Base Salary continuation payments for a 12

months period following Termination Date (notwithstanding Employee’s death)

less lawfully required deductions.  The

total of such payments ($190,000), shall be payable in 26 equal installments in

accordance with MSL’s payroll practices and procedures. Incentive Compensation

(equal to your FY2002 target of $95,000) shall be payable in 26 equal

installments of $3,653.85 less lawfully required deductions.  Employee will begin to be paid following

receipt from the Employee in the form attached here to as Exhibit A. Salary

continuation payments shall terminate upon your material breach of the

Agreement with Respect to Confidential Information and Inventions and

Non-Competition (the “Non-Competition Agreement”) dated December 28, 2000 and

executed by Employee on March 20, 2001.

 

b.            if Employee elects to continue medical and dental

coverage under the MSL medical and dental plans in accordance with the

continuation requirements of COBRA, the Employee shall pay for the cost of said

coverage as outlined in the COBRA communication that will be forwarded, by The

Stanton Group, to the employee’s home address. The Employer shall pay the

Employee, for up to eighteen (18) months, a monthly payment equivalent to the

Company share (80%) of Medical and Dental Cobra costs. For the remainder of

2002, the payment will be a net payment of $5665.50. In 2003, the amount will

be adjusted to reflect changes in COBRA rates and an additional nine months

payment will be made in January 2003. Such payments will terminate if you

terminate your participation in the COBRA coverage provided by the Employer and

any excess payments made by the Employer to you shall be promptly repaid to

Employer.

 

 

c.             Employee will be paid all unused vacation as of March

29, 2002 in the first paycheck following your termination date of March 29,

2002

 

d.             short and long term

insurance disability will terminate on March 29, 2002

 

e.             Employee shall have until September 29, 2002 to exercise

stock options which have vested as of Employee’s Termination Date as shown in

the attached Exhibit A.

 

f.              Employee may

continue to use Employee’s Laptop Computer.

 

4.             No

Consideration Absent Execution of this Agreement.  Employee understands and agrees that he

would not receive the monies and/or benefits specified in paragraph “3” above,

except for his execution of this Agreement and General Release and the

fulfillment of the promises contained herein.

 

5.             Revocation.  Employee may revoke this Agreement and

General Release for a period of seven (7) days following the day he executes

this Agreement and General Release.  Any

revocation within this period must be submitted, in writing, to Dewayne E.

Rideout and state, “I hereby revoke my acceptance of our Agreement and General

Release.”  The revocation must be

personally delivered to Dewayne E. Rideout or his designee, or mailed to:

 

                Mr. Dewayne E.

Rideout

                Manufacturers’

Services Ltd

                300 Baker Ave

Suite 106

                Concord MA 01742

 

and postmarked within seven

(7) days of execution of this Agreement and General Release.  This Agreement and General Release shall not

become effective or enforceable until the revocation period has expired.  If the last day of the revocation period is

a Saturday, Sunday, or legal holiday in Massachusetts, then the revocation

period shall not expire until the next following day which is not a Saturday,

Sunday, or legal holiday.

 

6.             General

Release of Claim.  Except for rights arising under this Agreement and General Release, Employee

knowingly and voluntarily releases and forever discharges Employer, its parent

corporation, affiliates, subsidiaries, divisions, successors and assigns and

the current and former employees, attorneys, officers, directors and agents

thereof (collectively referred to throughout the remainder of this Agreements

as “Employer”), of and from any and all claims, known and unknown, which the

Employee has or may have against Employer as of the date of execution of this

Agreement and General Release, including, but not limited to, any alleged

violation of;

 

•                                          The National

Labor Relations Act, as amended;

•                                          Title VII of

the Civil Rights Act of 1964, as amended;

 

2

 

•                                          Sections 1981

through 1988 of Title 42 of the United States Code, as amended;

•                                          The Employee

Retirement Income Security Act of 1974, as amended;

•                                          The Immigration

Reform Control Act, as amended;

•                                          The Americans

with Disabilities Act of 1990, as amended;

•                                          The Age

Discrimination in Employment Act of 1967, as amended;

•                                          The Fair Labor

Standards Act, as amended;

•                                          The

Occupational Safety and Health Act, as amended;

•                                          The

Massachusetts Law Against Discrimination, G.L. c. 151B,

•                                          The

Massachusetts Civil Rights Act, G.L. c. 93;

•                                          The

Massachusetts Privacy Statute, G.L. c. 214, § 1B;

•                                          The

Massachusetts Wage Payment Statute, G.L. c. 149, § 148 et  seq.;

•                                          The

Massachusetts Sexual Harassment Statute, G.L. c. 214 § 1C;

•                                          The

Massachusetts Consumer Protection Act, G.L. c. 93A;

•                                          The

Massachusetts Civil Rights Act, G.L. c. 12, § 11;

•                                          The

Massachusetts Equal Rights Act, G.L. c. 93;

•                                          Equal Pay Law

for Massachusetts, as amended;

•                                          Any other

federal, state or local civil or human rights law or any other local, state or

federal law, regulation or ordinance;

•                                          Any public

policy, contract, tort, or common law; or

•                                          Any allegation

for costs, fees, or other expenses including attorneys’ fees incurred in these

matters.

 

7.             Affirmations. Employee

affirms that he has not filed, caused to be filed, or presently is a party to

any claim, complaint, or action against Employer in any forum or form.  Employee further affirms that he has been

paid and has received all leave (paid or unpaid), compensation, wages, bonuses,

commissions, and/or benefits to which he may be entitled and that no other

leave (paid or unpaid), compensation, wages, bonuses, commissions and/or

benefits are due to him, except as provided in this Agreement and General

Release.  Employee furthermore affirms

that he has no known workplace injuries or occupational diseases and has been

provided and/or has not been denied any leave requested under the Family and

Medical Leave Act.

 

8.             Confidentiality.  Employee agrees not to disclose any

information regarding the existence or substance of this Agreement and General

Release, except to his

 

 

3

 

spouse, an attorney and

accountant with whom Employee chooses to consult regarding his consideration of

this Agreement and General Release.

 

9              No

Future Application for Employment.  Employee shall not apply in the future for employment with

Employer.

 

10.          Governing

Law and Interpretation. This Agreement and General

Release should be governed and conformed in accordance with the laws of the

State of Massachusetts without regard to its conflict of laws provisions.  In the event the Employee or Employer

breaches any provision of this Agreement and General Release, Employee and

Employer affirm that either may institute an action to specifically enforce any

term or terms of this Agreement and General Release.  Should any provision of this Agreement and General Release be

declared illegal or unenforceable by any court of competent jurisdiction and

cannot be modified to be enforceable, excluding the general release language,

such provision shall immediately become null and void, leaving the remainder of

this Agreement and General Release in full force and effect.

 

11.          Nonadmission

of Wrongdoing.  Employee

agrees that neither this Agreement and General Release nor the furnishing of

the consideration for this Release shall be deemed or construed at anytime for

any purpose as an admission by Employer of any liability or unlawful conduct of

any kind.

 

12.          Amendment.  This Agreement and General Release may not

be modified, altered or changed except upon express written consent of both

Parties wherein specific reference is made to this Agreement and General

Release.

 

13.          Entire

Agreement.  This

Agreement and General Release sets forth the entire agreement between the

parties hereto, and fully supersedes any prior agreements or understandings

between the parties.  Employee

acknowledges that he has not relied on any representations, promises, or

agreements of any kind made to him in connection with his decision to sign this

Agreement and General Release, except for those set forth in this Agreement and

General Release.

 

EMPLOYEE

HAS BEEN ADVISED IN WRITING THAT HE HAS AT LEAST FORTY-FIVE (45) DAYS TO

CONSIDER THIS AGREEMENT AND GENERAL RELEASE AND IS ADVISED TO CONSULT WITH AN

ATTORNEY PRIOR TO SIGNING THIS AGREEMENT AND GENERAL RELEASE.

 

HAVING

ELECTED TO EXECUTE THIS AGREEMENT AND GENERAL RELEASE, TO FULFILL THE PROMISES

SET FORTH HEREIN, AND TO RECEIVE THEREBY THE SUMS AND BENEFITS SET FORTH IN

PARAGRAPH “3” ABOVE, EMPLOYEE FREELY AND KNOWINGLY, AND AFTER DUE

CONSIDERATION, ENTERS INTO THIS AGREEMENT AND GENERAL RELEASE INTENDING TO

WAIVE, SETTLE AND RELEASE ALL CLAIMS HE HAS OR MIGHT HAVE AGAINST EMPLOYER.

 

 

4

 

IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily

executed this Agreement and General Release as of the date set forth below:

 

 

	

   

  	

  Manufacturers’

  Services Ltd.

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

  By:

  
	

  Rodolfo

  Archbold

  	

  Dewayne

  E. Rideout

  
	

   

  	

  Senior

  Vice President, HR

  
	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Date

  	

  Date

  
					

 

 

 

 

 

4.30.02

 

5

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