Document:

Prepared by MerrillDirect

Director’s
Agreement

This Director’s Agreement between Vysis,
Inc. ("Vysis"), a Delaware corporation, and Thomas E. Dewey, Jr., and
is effective May 1, 2001.

WHEREAS, Vysis and Mr. Dewey wish to set
out the terms of compensation for Mr. Dewey’s service upon his election to
Vysis’ Board of Directors (“Board”), and for certain consulting services
provided by Mr. Dewey before his election as a member of Vysis’ Board.

Therefore, Vysis and Mr. Dewey agree to
the following Director’s Agreement.

(1) Vysis agrees to pay Mr. Dewey a
monthly retainer fee of $2,000 per month, for each month or part thereof in
which he provides consulting services or serves as a member of Vysis’ Board.

(2) Vysis agrees to pay Mr. Dewey for
each Vysis Board meeting or Vysis Board Committee that he attends in person or
by teleconference as follows:

(i)       $2,000 for each Board meeting attended in
person,

(ii)      $1,000 for each Committee
meeting held in conjunction with a Board meeting attended in person,

(iii)     $2,000 for each separate
Committee meeting attended in person, and

(iv)     for each Board or Committee
meeting attended by teleconference $400 for up to one hour and $750 for
teleconferences over 1 hour.

Vysis further agrees to reimburse all
reasonable travel and other expenses Mr. Dewey incurs for attendance at a Board
or Committee meeting.  Vysis shall pay
the meeting fee promptly after each meeting and shall reimburse the expenses
promptly after receipt from Mr. Dewey of an invoice therefor.

(3) Mr. Dewey will also participate in
Vysis’ 1999 Outside Directors Stock Option Plan ("Plan") according to
the terms of the Plan.  Vysis agrees
that Mr. Dewey will be granted an initial option for 10,000 shares as specified
in the Plan, with the grant to be made as of the date of his election to the Board.  Mr. Dewey’s participation in the Plan is
subject to the Plan and to his acceptance and execution of Vysis' standard
stock option agreement for the Plan.

(4) Vysis shall indemnify Mr. Dewey for
his service as a member of Vysis' Board to the fullest extent permitted under
Delaware law.  Proof of his inclusion
under Vysis’ D&O policy will be provided.

(5) Mr. Dewey agrees that Vysis shall
have the right to make disclosures of information concerning Mr. Dewey as a
member of Vysis' Board that are required by applicable law.

(6) Mr. Dewey agrees to maintain the
confidentiality of Vysis business and technical information (“Information”)
provided to him, except for Information which (i) is in or becomes part of the
public domain without any act of Mr. Dewey or (ii) is provided to Mr. Dewey by
another entity or person, not under an obligation of confidence to Vysis with
respect to such information.

(7) This Director’s Agreement may be
terminated by Vysis upon two weeks notice to Mr. Dewey, after his resignation as
a member of Vysis’ Board or his non-re-election to or removal from Vysis’
Board.

(8) This Director’s Agreement shall be
governed by Delaware law.

 

Accepted and agreed to:

	VYSIS,
  INC.	THOMAS
  E. DEWEY, JR.

 

	

	 	

	 
	John
  L. Bishop	 
	President
  & CEOPrepared by MerrillDirect

Exhibit 10.1

AMENDMENT No. 1

TO

 CREDIT AGREEMENT AND WAIVER

 

          This Amendment No. 1 to Credit Agreement and Waiver, dated as
of April 20, 2001 (the "Amendment"), among FARGO ELECTRONICS, INC., a
Delaware corporation ("Company"), the financial institutions that
are or may from time to time become parties hereto (together with their
respective successors and assigns, the "Banks"), LASALLE BANK
NATIONAL ASSOCIATION (in its individual capacity, "LaSalle"),
as Agent for the Banks and as the Issuing Bank, (the Banks, the Issuing Bank
and the Agent being collectively referred to herein as the "Lender
Parties") to that certain Credit Agreement dated as of September 15, 2000,
among the Company, LaSalle, in its capacities as Agent, Issuing Bank, and as a
Bank, and the other Banks (the "Original Agreement").

 

RECITALS:

          A.      The Company has requested that the Lender
Parties waive certain Events of Default under the Original Agreement.

          B.       The Company has further requested that
the Lender Parties amend certain Sections of the Original Agreement.

          C.      Subject to the terms and conditions of
this Amendment, the Lender Parties will agree to the foregoing request of the
Company.

          NOW, THEREFORE, the parties agree as follows:

 

          1.       Defined Terms.  All capitalized
terms used in this Amendment shall, except where the context otherwise
requires, have the meanings set forth in the Original Agreement as amended
hereby.

          2.       Amendment.  The Original Agreement is hereby amended as
follows:

          (a)      The definition of "Borrowing Base"
appearing in Section 1 is amended in its entirety to read as follows:

          "Borrowing
Base means, at any date of determination, an amount equal to the sum of:
(a) an amount (the "Accounts Receivable Availability") equal to 80%
of the unpaid amount (net of such reserves and allowances as the Agent deems
necessary in its reasonable discretion) of all Eligible Accounts Receivable; plus
(b) an amount (the "Inventory Availability") equal to the lesser of:
(i) 50% of the value (net of such reserves and allowances as the Agent deems
necessary in its reasonable discretion) of all Eligible Inventory valued at the
lower of cost, determined on a first in first out basis, or market; or (ii)
$1,500,000.00.  The amount of the
Borrowing Base shall be determined periodically by the Agent from the most
recent Borrowing Base Certificate and supporting reports delivered to the Agent
pursuant to Section 10.1.6 and the components of such Borrowing Base
determination shall be revised by the Agent in its reasonable discretion based
on the results of the periodic inspections of the Company's books and records
performed by, or on behalf of, the Agent pursuant to Section 10.2"

          (b)      The definition of "Computation
Period" appearing in Section 1 is amended in its entirety to
read as follows:

"Computation
Period means each period of four consecutive Fiscal Quarters ending on the
last day of a Fiscal Quarter."

          (c)      The definition of "EBITDA"
appearing in Section 1 is amended in its entirety to read as follows:

          "EBITDA
means, for any period, Consolidated Net Income for such period plus, to
the extent deducted in determining such Consolidated Net Income, Interest
Expense, income tax expense, depreciation and amortization and, solely for
purposes of calculating financial covenant compliance for March 31, 2001, June
30, 2001 and September 30, 2001 Computation Dates, expenses accrued for
consulting services provided by the Keystone Group during the period beginning
on January 1, 2001 and ending on July 15, 2001."

          (d)      The definition of "Interest
Period" appearing in Section 1 is amended in its entirety to
read as follows:

          "Interest
Period means, as to any Eurodollar Loan, the period commencing on the date
such Loan is borrowed or continued as, or converted into, a Eurodollar Loan and
ending on the date one, two, or three months thereafter as selected by the
Company pursuant to Section 2.2.2 or 2.2.3, as the case may be; provided
that:

          (i)  if any Interest Period would otherwise end
on a day that is not a Business Day, such Interest Period shall be extended to
the following Business Day unless the result of such extension would be to
carry such Interest Period into another calendar month, in which event such
Interest Period shall end on the preceding Business Day;

 

          (ii) 
any Interest Period that begins on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period shall end on the last Business Day of the calendar month at the end of
such Interest Period; and

          (iii) the
Company may not select any Interest Period for a Revolving  Loan which would extend beyond the scheduled
Termination Date.

          (iv) the
Company may not select any Interest Period for a Term Loan if, after giving
effect to such selection, the aggregate principal amount of the Term Loan
having Interest Periods ending after any date on which an installment of the
Term Loans is scheduled to be repaid would exceed the aggregate principal
amount of the Term Loans scheduled to be outstanding after giving effect to
such repayment."

          (e)      The definition of "Loans"
appearing in Section 1 is amended in its entirety to read as follows:

          "Loans
means Revolving Loans and the Term Loans."

          (f)       The definition of "Revolving
Commitment Amount" appearing in Section 1 is amended in its
entirety to read as follows:

          "Revolving
Commitment Amount means $5,000,000.00, as reduced from time to time
pursuant to Section 6.1."

          (g)      The definition of "Termination Date"
appearing in Section 1 is amended in its entirety to read as follows:

          "Termination
Date means the earlier to occur of (a) April 1, 2002 or (b) such other date
on which the Commitments terminate pursuant to Section 6 or 12."

          (h)      Section 1 is further
amended by inserting the following new definitions of "Collateral
Access Agreement", "Eligible Accounts Receivable", "Eligible
Inventory", "First Amendment", "Fixed Charge
Coverage Ratio", and "Term Loan" in the appropriate
alphabetical order:

          "Collateral
Access Agreement means an agreement in form and substance reasonably
satisfactory to the Agent pursuant to which a mortgagee or lessor of real
property on which collateral is stored or otherwise located, or a warehouseman,
processor or other bailee of Inventory, acknowledges the Liens of the Agent and
waives any Liens held by such Person on such property, and, in the case of any
such agreement with a mortgagee or lessor, permits the Agent access to and use
of such real property for a reasonable amount of time following the occurrence
and during the continuance of an Event of Default to assemble, complete and
sell any collateral stored or otherwise located thereon."

          "Eligible
Account Receivable means an Account Receivable owing to the Company which
meets each of the following requirements:

          (1)      it arises from the sale of goods or the
rendering of services by the Company; and if it arises from the sale of goods,
(i) such goods comply with such Account Debtor’s specifications (if any) and
have been delivered to such Account Debtor and (ii) the Company has possession
of, or if requested by the Agent has delivered to the Agent, delivery receipts
evidencing such delivery;

          (2)      it (a) is subject to a perfected Lien in
favor of the Agent and (b) is not subject to any other assignment, claim or
Lien;

          (3)      it is a valid, legally enforceable and
unconditional obligation of the Account Debtor with respect thereto, and is not
subject to any counterclaim, credit, allowance, discount, rebate or adjustment
by the Account Debtor with respect thereto, or to any claim by such Account
Debtor denying liability thereunder in whole or in part;

          (4)      there is no bankruptcy, insolvency or
liquidation proceeding by or against the Account Debtor with respect thereto;

          (5)      the Account Debtor with respect thereto
is a resident or citizen of, and is located within, the United States, unless:
(a) the sale of goods or services giving rise to such Account Receivable is on
letter of credit, banker’s acceptance or other credit support terms reasonably
satisfactory to the Agent; or (b) (i) is insured pursuant to a foreign credit
insurance policy insuring against country and credit risk, satisfactory to the
Agent in its sole discretion; and (ii) such insurance policy is duly assigned
to the Agent pursuant to an assignment agreement that is acceptable to the
Agent in its sole discretion; and provided, that any such Account
Receivable shall only be deemed eligible to the extent of the applicable policy
limits;

          (6)      it is not an Account Receivable arising
from a "sale on approval," "sale or return,"
"consignment" or "bill and hold" or subject to any other
repurchase or return agreement;

 

          (7)      it is not an Account Receivable with
respect to which possession and/or control of the goods sold giving rise
thereto is held, maintained or retained by the Company (or by any agent or
custodian of the Company ) for the account of or subject to further and/or
future direction from the Account Debtor with respect thereto;

          (8)      it arises in the ordinary course of
business of the Company;

          (9)      if the Account Debtor is the United
States or any department, agency or instrumentality thereof, the Company has
assigned its right to payment of such Account Receivable to the Agent pursuant
to the Assignment of Claims Act of 1940;

          (10)    if the Account Receivable is evidenced by
chattel paper or an instrument, the originals of such chattel paper or
instrument shall have been endorsed and/or assigned and delivered to the Agent
in a manner satisfactory to the Agent;

          (11)    such Account Receivable is not more than
the lesser of: (a) 60 days past the due date thereof; or (b) 90 days past the
original invoice date thereof, in each case according to the original terms of
sale;

          (12)    it is not an Account Receivable with
respect to an Account Debtor that is located in any jurisdiction which has
adopted a statute or other requirement with respect to which any Person that
obtains business from within such jurisdiction must file a notice of business
activities report or make any other required filings in a timely manner in
order to enforce its claims in such jurisdiction’s courts unless such notice of
business activities report has been duly and timely filed or the Company  is exempt from filing such report and has
provided the Agent with satisfactory evidence of such exemption;

          (13)    the Account Debtor with respect thereto
is not an Affiliate of the Company;

          (14)    it is not owed by an Account Debtor with
respect to which 25% or more of the aggregate amount of outstanding Accounts
Receivable owed at such time by such Account Debtor is classified as ineligible
under clause (11) of this definition; provided, that, the
Agent, in its sole discretion, may agree to exclude certain past due Accounts
Receivable from the calculation of the category of ineligible Accounts
Receivable described in this clause (14) where the Company has: (a) informed
the Agent that a specific Account Receivable's past due status arises out of a
dispute or other special circumstances with the respective Account Debtor; and
(b) provided Agent with such detailed information concerning such dispute or
other special circumstances as Agent may request to make such a determination;
it being understood, however, that notwithstanding any such determination of
eligibility, the Agent will have the right to deem any such Accounts Receivable
to be ineligible at any future date of determination; and

          (15)    if the aggregate amount of all Accounts
Receivable owed by the Account Debtor thereon exceeds 25% of the aggregate
amount of all Accounts Receivable at such time, then all Accounts Receivable
owed by such Account Debtor in excess of such amount shall be deemed
ineligible; provided, that, at the request of the Company, the
Agent, in its sole discretion, may agree to deem Accounts Receivable owed by an
Account Debtor that would otherwise be ineligible pursuant to this clause (15)
to be eligible; it being understood, however, that notwithstanding any such
determination of eligibility, the Agent will have the right to deem any such
Accounts Receivable to be ineligible at any future date of determination.

An
Account Receivable which is at any time an Eligible Account Receivable, but
which subsequently fails to meet any of the foregoing requirements, shall
forthwith cease to be an Eligible Account Receivable.  Further, with respect to any Account Receivable, if the Agent or
the Required Banks at any time hereafter determine in their discretion that the
prospect of payment or performance by the Account Debtor with respect thereto
is materially impaired for any reason whatsoever, such Account Receivable shall
cease to be an Eligible Account Receivable after notice of such determination
is given to the Company."

          "
Eligible Inventory means Inventory of the Company consisting of "card
inventory," "printer ribbon inventory," "print heads
inventory," or "overlaminate inventory," which meets each of the
following requirements:

          (1)      it (a) is subject to a perfected Lien in
favor of the Agent and (b) is not subject to any other assignment, claim or
Lien;

          (2)      it is saleable;

          (3)      it is in the possession and control of
the Company and it is stored and held in facilities owned by the Company or, if
such facilities are not so owned, the Agent is in possession of a Collateral
Access Agreement with respect thereto;

          (4)      it is not Inventory produced in violation
of the Fair Labor Standards Act and subject to the “hot goods” provisions
contained in Title 29 U.S.C. §215;

          (5)      it is not subject to any agreement which
would restrict the Agent’s ability to sell or otherwise dispose of such
Inventory;

          (6)      it is located in the United States or in
any territory or possession of the United States that has adopted Article 9 of
the Uniform Commercial Code;

          (7)      it is not “in transit” to the
Company  or held by the Company on
consignment; and

          (8)      the Agent shall not have determined in
its discretion that it is unacceptable due to age, type, category, quality,
quantity and/or any other reason whatsoever.

Inventory
which is at any time Eligible Inventory but which subsequently fails to meet
any of the foregoing requirements shall forthwith cease to be Eligible
Inventory."

          "First
Amendment" means, that certain Amendment No. 1 to Credit Agreement and
Waiver dated as of April 20, 2001, by and between the Company and the
"Lender Parties" thereto."

          "Fixed
Charge Coverage Ratio means, for any Computation Period, the ratio of (a)
EBITDA to (b) the sum for such period of (i) Interest Expense plus
(ii) required payments of principal of Debt (including required payments of
principal of the Term Loan but excluding required payments of principal of the
Revolving Loans whether such Revolving Loan principal payments were made before
or after the Effective Date of the First Amendment)."

      "Term
Loan - see Section 2.1.3."

        (i)       Section 1 is further
amended by deleting the definition of "Interest Coverage  Ratio".

        (j)       Section 2 is amended
by adding a new Section 2.1.3 to read as follows:

"2.1.3 Term Loan Commitment. 
Each Bank agrees to make a loan to the Company (each such loan a
"Term Loan") on the "Effective Date" of the First Amendment
(as such term is defined therein) in such Bank's Pro Rata Share of $19,000,000.00.  The Term Loan proceeds shall be used to
refinance outstanding principal balances of the Revolving Loan on such
Effective Date.  The commitments of the
Banks to make Term Loans shall expire concurrently with the making of the Term
Loans on such date."

        (k)      Section 2.2.1 is amended
in its entirety to read as follows:

"2.2.1 Various Types of Loans.  Each Revolving Loan
shall be, and each Term Loan may be, divided into tranches which are, either a
Base Rate Loan or a Eurodollar Loan (each a “type” of Loan), as the
Company shall specify in the related notice of borrowing or conversion pursuant
to Section 2.2.2 or 2.2.3.  Eurodollar Loans having the same Interest Period are sometimes
called a “Group” or collectively “Groups”.  Base Rate Loans and Eurodollar Loans may be
outstanding at the same time, provided that not more than four (4)
different Groups of Eurodollar Loans shall be outstanding at any one time.  All borrowings, conversions and repayments
of Revolving Loans shall be effected so that each Bank will have a pro rata
share (according to its Pro Rata Share) of all types and Groups of Loans."

        (l)       Section 3.1 is amended
in its entirety to read as follows:

          "3.1    Notes.  The Loans of each Bank shall be evidenced by
a promissory note (each a "Note") substantially in the form
set forth in Exhibit A, with appropriate insertions, payable to the
order of such Bank in a face principal amount equal to the sum of such Bank’s
Pro Rata Share of the Revolving Commitment Amount plus the principal amount of
such Bank’s Term Loan, as follows:

          (a)      each Revolving Loan of such Bank shall be
paid in full on the Termination Date; and

          (b)      the Term Loan of such Bank shall be paid
in installments equal to such Bank’s Pro Rata Share of the aggregate principal
amount of the installments of the Term Loans as set forth on Schedule 3.1."

        (m)     Section 6.1.2(b) is amended
in its entirety to read as follows:

          "(b)    an amount (if any) equal to the Net Cash
Proceeds  payable pursuant to a
Mandatory Prepayment Event over the amount (if any) applied to prepay Term
Loans pursuant to Section 6.2.2."

        (n)      Section 6.2.1 is amended
in its entirety to read as follows:

          "6.2.1 Voluntary Prepayments.  The Company may from time to time prepay the
Loans in whole or in part; provided 
that the Company shall give the Agent (which shall promptly advise each
Bank) notice thereof not later than 11:00 A.M., Chicago time, on the day of
such prepayment (which: (a) with respect to any prepayment of a Base Rate Loan,
shall be a Business Day; or (b) with respect to any prepayment of a Eurodollar
Rate Loan, shall be a Business Day corresponding to the end of the respective
Interest Period), specifying the Loans to be prepaid and the date and amount of
prepayment. Any such partial prepayment shall be in an amount equal to
$100,000.00 or a higher integral multiple of $25,000.00."

        (o)      Section 6.2.2(a) is amended
in its entirety to read as follows:

          "(a)     The Company shall make a prepayment of
the Term Loans upon the occurrence of any of the following (each a “Mandatory
Prepayment Event”) at the following times and in the following amounts
(such applicable amounts being referred to as “Designated Proceeds”):

          (i)       Concurrently with the receipt by the
Company or any Subsidiary of any Net Cash Proceeds from any Asset Sale, in an
amount equal to 90% of such Net Cash Proceeds.

          (ii)      Concurrently with the receipt by the
Company or any Subsidiary of any Net Cash Proceeds from any issuance of equity
securities of the Company or any Subsidiary (excluding (x) any issuance of shares
of capital stock pursuant to any employee or director stock option program,
benefit plan or compensation program and (y) any issuance by a Subsidiary to
the Company or another Subsidiary), in an amount equal to 25% of such Net Cash
Proceeds."

        (p)      Section 6.3 is amended
in its entirety to read as follows:

"6.3    All Prepayments.  Each voluntary partial prepayment shall be
in a principal amount of $100,000.00 or a higher integral multiple of
$25,000.00.  Any partial prepayment of a
Group of Eurodollar Loans shall be subject to the proviso to Section
2.2.3(a).  Any prepayment of a
Eurodollar Loan on a day other than the last day of an Interest Period therefor
shall include interest on the principal amount being repaid and shall be
subject to Section 8.4. All prepayments of Term Loans shall be applied
first to the next two installments in the order of their maturities and, after
such application, the remaining amount of such prepayment shall be applied to
the remaining installments in the inverse order of their maturities."

        (q)      Section 7 is amended
by adding a new Section 7.7 to read as follows:

"7.7    Authorization. 
The Company hereby irrevocably authorizes the Agent and the Agent may,
in its sole and absolute discretion, at any time and from time to time, pay all
or any portion of any of the Company's obligations hereunder including, without
limitation, interest, Attorney Costs and other fees, costs and expenses of the
Agent for which the Company is liable pursuant to the terms of the Loan
Documents, by charging any bank account of the Company maintained with Agent or
any Bank or by advancing the amount thereof to the Company as a Revolving Loan
and applying the proceeds of such Revolving Loan against such obligations;
provided, however, that the provisions of this Section 7.7 shall not
affect the Company's obligation to pay when due all amounts payable by the
Company under any of the Loan Documents whether or not there are sufficient
funds therefor in any such bank account of the Company with Agent or any Bank,
or whether after making such Revolving Loan the Revolving Outstandings will
exceed the lesser of: (a) the Revolving Commitment Amount; or (b) the Borrowing
Base and provided, further, that the Agent shall give two days prior notice
before charging any such account for the cost and expense of the Agent  referred to above.

        (r)      Section 10.1.3 is amended
in its entirety to read as follows:

"10.1.3           Compliance Certificates;
Accounts Payable Aging. Contemporaneously with the furnishing
of a copy of each annual audit report pursuant to  Section 10.1.1 and each set of monthly statements pursuant to
Section 10.1.2, a duly completed compliance certificate in the form of Exhibit
B, with appropriate insertions, dated the date of such annual report or such
monthly statements and signed by a Designated Person, containing (i) a
computation of each of the financial ratios and restrictions set forth in
Section 10.6 and to the effect that such officer has not become aware of any
Event of Default or Unmatured Event of Default that has occurred and is
continuing or, if there is any such event, describing it and the steps, if any,
being taken to cure it and (ii) a written statement of the Company's management
setting forth a discussion of the Company's financial condition, changes in
financial condition and results of operations, and accompanied by an accounts
payable aging report dated as of such Fiscal Month end, in such detail as the
Agent, in its reasonable discretion, may require."

        (s)      Section 10.1.6 is amended
in its entirety to read as follows:

"10.1.6           Borrowing Base Certificates.  Within 15 days of the end of each Fiscal
Month, a Borrowing Base Certificate dated as of the end of such Fiscal Month
and executed by a Designated Person on behalf of the Company; provided that at
any time an Event of Default exists, the Agent may require the Company to
deliver Borrowing Base Certificates 
more frequently.  Each Borrowing
Base Certificate delivered pursuant to this Section 10.1.6 shall be
accompanied by an accounts receivable aging dated as of such Fiscal Month ended
and the Borrower shall deliver such reconciliations, reports, certificates and
other supporting documentation as the Agent, in its reasonable discretion may
require within thirty (30) days of such Fiscal Month end."

        (t)       The parenthetical clause appearing in Section
10.1.8 is amended in its entirety to read as follows:

"(including,
without limitation, forecasted income statements, balance sheets, cash flows,
and financial covenant compliance)"

        (u)      The final sentence of Section 10.2
is amended in its entirety to read as follows:

"All
such inspections, appraisals, or audits by the Agent shall be at the Company's
expense, provided that so long as no Event of Default or Unmatured Event
of Default exists, the Company shall not be required to reimburse the Agent for
appraisals more frequently than twice each calendar year or for more than
$10,000.00 per calendar year, with the inspection that is to be performed
within 90 days of the Effective Date of the First Amendment not counting
against such limit for the 2001 calendar year."

        (v)      Section 10.6.1 is amended
in its entirety to read as follows:

"10.6.1        Fixed Charge Coverage Ratio.  Not permit the
Fixed Charge Coverage Ratio for any Computation Period to be less than the
applicable ratio set forth below for such Computation Period:

	Computation
 Period
  Ending	Fixed
  Charge
 Coverage
  Ratio
	 	 
	March
  31, 2001	3.00
  to 1.00
	 	 
	June
  30, 2001	2.50
  to 1.00
	 	 
	September
  30, 2001	2.25
  to 1.00
	 	 
	December
  31, 2001	2.00
  to 1.00."

 

        (w)     Section 10.6.2 is amended
by replacing the table of computation period ending dates and required ratios
appearing therein to read as follows:

	"Computation

  Period Ending	Total
  Debt to

  EBITDA Ratio
	 	 
	March
  31, 2001	3.10
  to 1.00
	 	 
	June
  30, 2001	2.75
  to 1.00
	 	 
	September
  30, 2001	2.50
  to 1.00
	 	 
	December
  31, 2001	2.00
  to 1.00."

 

        (x)      Section 10.6.3 is amended
in its entirety to read as follows:

"10.6.3           Capital Expenditures.  Not permit the aggregate amount of all
Capital Expenditures made by the Company and its Subsidiaries in any Fiscal
Year to exceed $1,500,000.00."

        (y)      Section 10.6 is further
amended by adding a new Section 10.6.4 to read as follows:

"10.6.4         EBITDA.  Not permit EBITDA for the three consecutive
months ending on any of the dates below to be less than the applicable amount
set forth below for such period:

	Months
  Ending	EBITDA
	 	 
	March
  31, 2001 through, to and including May 31, 2001	$1,000,000.00
	 	 
	June
  30, 2001 through, to and including March 31, 2002	$1,500,000.00."

        (z)      Section 10.7(b) is amended
by changing the stated amount appearing therein from "$3,000,000.00"
to "$500,000.00".

        (aa)    Section 12.1.8 is amended
by changing the stated amount appearing therein from "$1,000,000.00"
to "$500,000.00".

        (bb)    The Pricing Schedule attached to the
Original Agreement is amended to conform to the Pricing Schedule (April, 2001)
attached to the First Amendment as Exhibit A.

 

        (cc)    The Original Agreement is amended by
adding a new Schedule 3.1, Term Loan Installments (April, 2001), in the form
attached to the First Amendment as Exhibit B.

        (dd)    The Form of Compliance Certificate,
attached to the Original Agreement as Exhibit B, is amended to conform to the
Form of Compliance Certificate (April, 2001) attached to the First Amendment as
Exhibit C.

        (ee)    The Form of Borrowing Base Certificate,
attached to the Original Agreement as Exhibit D, is amended to conform to the
Form of Borrowing Base (April, 2001) attached to the First Amendment as Exhibit
D.

          3.       Conditions to
Effectiveness.  This Amendment shall become effective on the
date (the "Effective Date") when, and only when, the Agent shall have
received:

        (a)      Counterparts of this Amendment executed
by the Company and the Lender Parties;

        (b)      (i) a current schedule signed by a
Designated Person describing all of the Company's and its Subsidiaries' United
States patents and patent applications; 
and (ii) an amendment to the Notice of Security Interest most recently
filed in the United States Patent and Trademark Office conforming such filing
to the scheduled patent and publicly available patent applications, each of
which shall be in form and substance satisfactory to the Agent;

        (c)      an Amendment Fee of $25,000, payable to
the Agent in immediately available funds for pro rata distribution to the
Banks;

        (d)      a Borrowing Base Certificate dated as of
March 31, 2001, in the form attached hereto as Exhibit D, together with an
accounts receivable aging, and an accounts payable aging, each dated as of such
date, and such other reconciliations, reports, certificates and other
supporting documentation as the Agent, in its sole discretion may require;

 

        (e)      a complete and accurate summary of the
property and casualty insurance program of the Company and its Subsidiaries as
of the Effective Date (including the names of all insurers, policy numbers,
expiration dates, amounts and types of coverage, annual premiums, exclusions,
deductibles, self–insured retention, and a description in reasonable
detail of any self–insurance program, retrospective rating plan, fronting
arrangement or other risk assumption arrangement involving the Company or any
Subsidiary), together with: (i) a certificate setting forth in reasonable
detail the nature and extent of all insurance maintained by the Company and its
Subsidiaries; and (ii) an endorsement from each issuer of an insurance policy
to the Company (A) showing loss payable to the Agent with respect to each
policy of property or casualty insurance and naming the Agent and each Bank as
an additional insured with respect to each policy of insurance for liability
for personal injury or property damage, (B) providing that 30 days’ notice will
be given to the Agent prior to any cancellation of, material reduction or
change in coverage provided by or other material modification to such policy
and (C) reasonably acceptable in all other respects to the Agent.

        (f)       Such other documents or other items as
LaSalle or any other Lender Party may reasonably request.

          4.       Representations and
Warranties.  To induce the Lender Parties to enter into
this Amendment, the Company represents and warrants to the Lender Parties as
follows:

        (a)      The
execution, delivery and performance by the Company of this Amendment and any
other documents to be executed and/or delivered by the Company in connection
herewith have been duly authorized by all necessary corporate action, do not
require any approval or consent of, or any registration, qualification or
filing with, any government agency or authority or any approval or consent of
any other person (including, without limitation, any stockholder), do not and
will not conflict with, result in any violation of or constitute any default
under, any provision of the Company's articles of incorporation or bylaws, any
agreement binding on or applicable to the Company or any of the Company's
property, or any law or governmental regulation or court decree or order,
binding upon or applicable to the Company or of any of the Company's property
and will not result in the creation or imposition of any security interest or other
lien or encumbrance in or on any of its property pursuant to the provisions of
any agreement applicable to the Company or any of the Company's property except
pursuant to the Loan Documents;

        (b)      The representations and warranties
contained in the Original Agreement are true and correct as of the date hereof
as though made on that date except to the extent that such representations and
warranties relate solely to an earlier date;

        (c)      No events have taken place and no
circumstances exist at the date hereof which would give the Company the right
to assert a defense, offset or counterclaim to any claim by any Lender Party
for payment of any obligation (monetary or otherwise) of Company under the
Credit Agreement, any Note, or any other Loan Document or any other document or
instrument executed in connection therewith and all Hedging Obligations owed to
any Lender Party, in each case howsoever created, arising or evidenced, whether
direct or indirect, absolute or contingent, now or hereafter existing, or due
or to become due; and

        (d)      The Original Agreement as amended by this
Amendment and the other Loan Documents to which the Company is a party remain
in full force and effect and are the legal, valid and binding obligations of
the Company and are enforceable in accordance with their respective terms,
subject to limitations as to enforceability which might result from bankruptcy,
insolvency, moratorium and other similar laws affecting creditors' rights
generally and subject to limitations on the availability of equitable remedies.

          5.       Reference to and Effect on the Loan Documents.

        (a)      From and after the date of this
Amendment, each reference in the Original Agreement to "this
Agreement", "hereunder", "hereof", "herein"
or words of like import referring to the Original Agreement, and each reference
to the "Agreement", "thereunder", "thereof",
"therein" or words of like import referring to the Original Agreement
in any other Loan Document shall mean and be a reference to the Original
Agreement as amended hereby.

        (b)      The execution, delivery and effectiveness
of this Amendment shall not  operate as
a waiver, except as expressly provided in Section 10 hereof, of any
right, power or remedy of the any Lender Party under the Original Agreement or
any other Loan Document, nor constitute a waiver of any provision of the
Original Agreement or any such other Loan Document.

          6.       Costs, Expenses and
Taxes.  The Company agrees to pay on demand all
reasonable costs and expenses of the Lender Parties in connection with the preparation,
reproduction, execution and delivery of this Amendment and the other documents
to be delivered hereunder or thereunder, including their reasonable attorneys'
fees and legal expenses.  In addition,
the Company shall pay any and all stamp and other taxes and fees payable or
determined to be payable in connection with the execution and delivery, filing
or recording of this Amendment and the other instruments and documents to be
delivered hereunder, and agrees to save the Lender Parties harmless from and
against any and all liabilities with respect to, or resulting from, any delay
in the Company's paying or omission to pay, such taxes or fees.

          7.       Governing Law.  This Amendment shall be governed by and
construed in accordance with the laws of the State of Minnesota.

          8.       Headings.  Section headings in
this Amendment are included herein for convenience of reference only and shall
not constitute a part of this Amendment for any other purpose.

          9.       Counterparts.  This Amendment may
be executed in separate counterparts and by separate parties in separate
counterparts, each of which shall be an original and all of which taken
together shall constitute one and the same Amendment.

          10.     Waiver.  On the
Effective Date, the Lender Parties waive:

        (a)      the Event of Default under Section
12.1.1 of the Credit Agreement because of the Company's failure to comply
with Section 6.2.2.(b) thereof requiring that the Company immediately
prepay Revolving Loans and/or Cash Collateralize the outstanding Letters of
Credit, or do a combination of the foregoing, on any day when the Revolving
Outstandings exceed the Borrowing Base, for the period beginning on January 1,
2001, and ending on the Effective Date; and

        (b)      the Event of Default under Section
12.1.5 of the Credit Agreement because of the Company’s failure to comply
with Section 10.1.8  thereof
requiring the delivery of the Company’s financial projections within 30 days
prior to the commencement of its 2001 fiscal year;

The
Lender Parties' waiver is limited to the specific Events of Default described
above and is not intended, and shall not be construed, to be a general waiver
of any term or provision of the Original Agreement or a waiver of any other
existing or future Unmatured Event of Default or Event of Default.

          11.     Conditions Subsequent.  As conditions subsequent to this Amendment
(the "Conditions Subsequent"), the Agent and the  Banks require that by no later than:

        (a)      May 4, 2001, the Company deliver to the
Agent original copies of resolutions of the Company's board of directors
ratifying the execution and delivery of the Amendment substantially in the form
provided by the Agent;

        (b)      May 15, 2001, agreements in form and
substance satisfactory to the Agent that are duly-executed by the Company and
each financial institution (other than the Agent) at which the Company or any
Subsidiary maintains any lockbox, deposit account or other similar account as
of the Effective Date, (i) acknowledging and consenting to the security
interest of the Agent in such lockbox or account and all cash, checks, drafts
and other instruments or writings for the payment of money from time to time
therein, (ii) confirming such financial institution's agreement to follow the
instructions of the Agent with respect to all such cash, checks, drafts and
other instruments or writings for the payment of money following receipt from
the Agent of notice of the occurrence of any Event of Default or Unmatured
Event of Default and (iii) waiving all rights of setoff and banker's lien on
all items held in any such lockbox or account (other than with respect to
payment of fees and expenses for account services); and

 

        (c)      July 1, 2001, the Company: (i) enter into
duly-executed cash management agreements with the Agent or a Bank; (ii) take
steps to implement such cash management programs to the satisfaction of the
Agent in its reasonable discretion; and (iii) deliver to the Agent a
certificate signed by a duly authorized officer of the Company stating that, as
of the date of execution of such certificate, the aggregate amount of all bank
deposits (excluding amounts in payroll accounts or for accounts payable, in
each case to the extent that checks have been issued to third parties) which
are maintained with any bank other than a Bank is less than $100,000.00, together
with a schedule listing all such deposits and the banks in which such deposits
are maintained, including the name(s) of such depository banks, account numbers
and such other related information as the Agent, in its sole discretion, may
require;

        (d)      May 30, 2001, the Company delivered
Collateral Access Agreements, in form and substance satisfactory to the Agent,
in its sole discretion, executed by each landlord or lessor of any of the
Company's or any of Subsidiaries' business locations; and

          If the Company
does not satisfy any Condition Subsequent by the respective date set forth in Subsections
(a), (b), (c) and (d) of this Section 11, then the interest rate
applicable to each Loan shall be automatically increased by 2% and such
increased rate of interest shall remain in effect until all the Conditions
Subsequent are satisfied.

 

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          IN WITNESS WHEREOF, the parties hereto have caused this
Amendment to be executed by their respective officers thereunto duly authorized
as of the date first written above.

	 	FARGO
  ELECTRONICS, INC.	 
	 	 	 
	 	By:  /s/ Jeffrey D. Upin

	 
	 	Its:   Vice President Administration and General
  Counsel	 

 

Subscribed
and sworn to before me

this 20th  day of April,
2001.

	/s/
  Fred Ladner

	 
	Notary
  Public	 

 

	 	LASALLE
  BANK NATIONAL ASSOCIATION, as 

  Agent, Issuing Bank and as a Bank
	 	 	 
	 	By:  /s/ Ann Pifer

	 
	 	Its:   First Vice President	 
	 	 	 
	 	HARRIS
  TRUST AND SAVINGS BANK, as a Bank
	 	 	 
	 	By:  /s/ Andrew Peterson

	 
	 	Its:   Managing Director

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