Document:

exv10w1

 

Exhibit 10.1

SECOND AMENDMENT TO THIRD AMENDED AND RESTATED LOAN AGREEMENT

     THIS SECOND AMENDMENT TO THIRD AMENDED AND RESTATED LOAN AGREEMENT (this
“Amendment”) dated as of June 30, 2007, by and between: MERCANTILE BANCORP, INC., a
Delaware corporation (“Borrower”); and U.S. BANK NATIONAL ASSOCIATION, formerly known as
Firstar Bank, N.A., a national banking association, the successor by merger to Mercantile Bank
National Association (“Lender”); has reference to the following facts and circumstances
(the “Recitals”):

     A. Borrower and lender executed the Third Amended and Restated Loan Agreement dated
as of November 10, 2006 (as amended, the “Agreement”; all capitalized terms herein
not otherwise
defined shall have the same meanings as ascribed to them in the Agreement).

     B. The Agreement was previously amended as described in the First Amendment to Third
Amended and Restated Loan Agreement dated as of March 20, 2007; Borrower desires to further
amend the terms of the Agreement and to amend the Revolving Note to reduce Lender’s
Revolving
Loan Commitment and to extend the Revolving Credit Period in the manner set forth herein; and
Lender is willing to agree to said amendments on the terms and conditions set forth herein.

     NOW, THEREFORE, in consideration of the premises, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Borrower and Lender hereby agree as
follows:

     1. Recitals. The Recitals are true and correct, and, with the defined terms set
forth herein, are incorporated by this reference.

     2. Amendment to Agreement. The Agreement is amended as follows:

(a) Recital C on page 1 of the Agreement is deleted and replaced with the following:

     “C. Borrower and Lender desire to amend and restate the Original
Loan Agreement to, among other things, provide for a revolving credit facility in
the aggregate amount of up to $8,000,000, and to allow for a new term loan in the
original principal amount of $15,000,000 upon, and subject to, the terms,
provisions and conditions hereinafter set forth.”

(b) The definition of “Lender’s Revolving Loan Commitment” in Section 1 of the Agreement
is deleted and replaced with the following:

     “Lender’s Revolving Loan Commitment shall mean up to Eight Million
Dollars ($8,000,000.00).”

(c) The definition of “Revolving Credit Period” in Section 1 of the Agreement is deleted
and
replaced with the following:

     “Revolving Credit Period shall mean the period commencing on the date
of this Agreement and ending June 30, 2008.”

     3. Amendment to Revolving Note. The Revolving Note is amended as follows:

(a) The reference to “$15,000,000.00” at the top of page 1 of the Revolving Note is
deleted and replaced with “$8,000,000.00.”

 

 

(b) The references to “Fifteen Million Dollars ($15,000,000.00)” in the first paragraph on
page 1 of the Revolving Note are deleted and replaced with “Eight Million Dollars
($8,000,000.00).”

     4. Continuing Security. The Agreement and the Revolving Note, as hereby amended,
and the other Notes, are and shall continue to be, guarantied and/or secured by Borrower Pledge
and the Subsidiary Pledge, and any reference to the Agreement and the Revolving Note in Borrower
Pledge and the Subsidiary Pledge shall hereafter be deemed to include the Agreement and the
Revolving Note as hereby amended.

     5. Binding Obligations. The Agreement, Notes, and the other Transaction Documents,
are, and shall remain, the binding obligations of Borrower and/or Royal Palm, and all of the
provisions, terms, stipulations, conditions, covenants and powers contained therein shall stand
and remain in full force and effect, except only as the same are herein and hereby expressly and
specifically varied or amended, and the same are hereby ratified and confirmed, and Lender
reserves unto itself all rights and privileges granted thereunder.

     6. Representations and Warranties. Borrower hereby represents and warrants to Lender
that:

(a) the execution, delivery and performance by Borrower of this Amendment are within the
corporate powers of Borrower, have been duly authorized by all necessary corporate action
on the part of Borrower and require no consent of, action by or in respect of or filing,
recording or registration with, any governmental or regulatory body, instrumentality,
authority, agency or official or any other Person;

(b) the execution, delivery and performance by Borrower of this Amendment do not conflict
with, or result in a breach of the terms, conditions or provisions of, or constitute a
default under or result in any violation of, the terms of the Certificate or Articles of
Incorporation or By-Laws of Borrower, any applicable law, rule, regulation, order, writ,
judgment or decree of any court or governmental or regulatory body, instrumentality
authority, agency or official or any agreement, document or instrument to which Borrower
is a party or by which Borrower or any of its Property or assets is bound or to which
Borrower or any of its Property or assets is subject;

(c) this Amendment has been duly executed and delivered by Borrower and constitutes the
legal, valid and binding obligation of Borrower enforceable against Borrower in accordance
with its terms, except as such enforceability may be limited by (i) applicable bankruptcy,
insolvency or similar laws affecting the enforcement of creditors’ rights generally and
(ii) general principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law);

(d) all of the representations and warranties made by Borrower and/or any other Obligor in
the Agreement and/or in any other Transaction Document are true and correct in all material
respects on and as of the date of this Amendment as if made on and as of the date of this
Amendment (except to the extent that such representations and warranties relate solely to
an earlier date, in which case such representations and warranties shall have been true and
correct on and as of such earlier date) (and for purposes of this subparagraph (d), the
representations and warranties made by Borrower in Section 4.04 of the Agreement shall be
deemed to refer to the most recent financial statements of Borrower delivered to the Lender
pursuant to Section 5.03 of the Agreement); and

-2-

 

(e) as of the date of this Amendment and after giving effect to this Amendment, no Default
or Event of Default under or within the meaning of the Agreement has occurred and is
continuing.

     7. Inconsistency. In the event of any inconsistency or conflict between this
Amendment and the Agreement, the terms, provisions and conditions contained in this Amendment
shall govern and control.

     8. Expenses. Borrower agrees to pay all expenses incurred by Lender in connection
with this Amendment, including, but not limited to, Lender’s legal fees. Said sums are payable
on-demand and are secured by Borrower Pledge and the Subsidiary Pledge.

     9. Release. Borrower hereby releases Lender and its successors, assigns, directors,
officers, agents, employees, representatives and attorneys from any and all claims, demands,
causes of action, liabilities or damages, whether now existing or hereafter arising or
contingent or noncontingent, or actions in law or equity of any type or matter, relating to or in
connection with any statements, agreements, action or inaction on the part of Lender occurring
at any time prior to the execution of this Amendment, with respect to Borrower, the Agreement,
Notes, and all other Transaction Documents.

     10. Applicable Law. This Amendment shall be governed by and construed in accordance
with the internal laws of the State of Missouri.

     11. Notice Required by Section 432.047 R.S. Mo. ORAL AGREEMENTS OR COMMITMENTS TO
LOAN MONEY, EXTEND CREDIT OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO
EXTEND OR RENEW SUCH DEBT ARE NOT ENFORCEABLE, REGARDLESS OF THE LEGAL THEORY UPON WHICH IT IS
BASED THAT IS IN ANY WAY RELATED TO THE CREDIT AGREEMENT. TO PROTECT YOU (BORROWER(S)) AND US
(CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE REACH COVERING SUCH MATTERS
ARE CONTAINED IN THIS WRITING, WHICH IS THE COMPLETE AND EXCLUSIVE STATEMENT OF THE AGREEMENT
BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO MODIFY IT.

     12. Closing Conditions. Notwithstanding any provision contained in this Amendment to
the contrary, this Amendment shall not be effective unless and until Lender shall have received
the following, all in form and substance acceptable to Lender:

(a) this Amendment, duly executed by Borrower;

(b) the Borrowing Resolutions of Board of Directors, duly executed by the Secretary of
Borrower;

(c) Certificates of Good Standing for Borrower, issued by the Secretary of State of the
State of Delaware and by the Secretary of State of the State of Illinois (or other
evidence of good standing acceptable to Lender); and

(d) such other documents and information as Lender may reasonably require.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year
first above written.

(SIGNATURES ON FOLLOWING PAGE)

-3-

 

SIGNATURE PAGE-

SECOND AMENDMENT TO THIRD AMENDED AND RESTATED LOAN AGREEMENT

	 	 	 	 	 
	 	Borrower: 

MERCANTILE BANCORP, INC 

 	 
	 	By:  	/s/ Ted T. Awerkamp
 	 
	 	 	Ted T. Awerkamp, President & CEO 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	Lender: 

U.S. BANK NATIONAL ASSOCIATION 

 	 
	 	By:  	/s/ Jaycee D. Greene
 	 
	 	 	JAYCEE D. GREENE, Vice President 	 
	 	 	 	 
	 

-4-exv10w1

 

Exhibit 10.1

Silicon Valley Bank

Amendment to Loan Agreement

	 	 	 
	Borrower:

	 	I-Flow Corporation
	 
	 	 
	Address:

	 	20202 Windrow Drive
	 

	 	Lake Forest, California 92630

Dated as of: July 16, 2007

     THIS AMENDMENT TO LOAN AGREEMENT is entered into between Silicon Valley Bank (“Bank”) and
the borrower named above (the “Borrower”).

     The Parties agree to amend the Amended and Restated Loan and Security Agreement between them,
having an effective date of May 8, 2003 (as amended from time to time being referred to herein as
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. Revised Section 6.7. Section 6.7 of the Loan Agreement is hereby amended in its entirety
to read as follows:

“6.7 Financial Covenants.

Borrower will maintain at all times during the effectiveness of this Agreement on a
consolidated basis for I-Flow Corporation and tested quarterly during the term hereof
unless otherwise indicated below:

(i) Quick Ratio. A ratio of Quick Assets to Modified Current Liabilities of at least
1.20 to 1.00.

(ii) Adjusted Net Loss/Profit. Borrower will not incur an adjusted net loss (A) in excess
of $2,500,000 for the fiscal quarter ending June 30, 2007; and (B) in excess of $1,000,000
for each of the fiscal quarters ending September 30, 2007 and December 31, 2007.
Thereafter, in each subsequent fiscal quarter end period, Borrower shall achieve adjusted
net profit of at least $1.00.

As used herein the terms adjusted net loss/adjusted net profit shall mean net loss/net
profit for the applicable quarter end period (x) excluding the effects of non-cash charges

 

 

related to stock compensation expenses and (y) including any income from discontinued
operations, with all of the foregoing as determined in accordance with GAAP, consistently
applied.”

     2. Revised Definitions. The defined terms “Modified Current Liabilities” and “Quick Assets”
as set forth in Section 13.1 of the Loan Agreement are hereby amended, respectively, to read as
follows:

“Modified Current Liabilities” are the aggregate amount of Borrower’s Current
Liabilities (excluding (i) any liabilities arising as a result of the application of
FIN48 (as defined below) and (ii) deferred tax liabilities) that would otherwise be
classified as Current Liabilities) plus, to the extent not already included in the
foregoing, all Obligations (regardless of tenor) owing to Bank including the face
amount of all outstanding Letters of Credit. As used herein “FIN48” shall
mean Interpretation No. 48 regarding Accounting for Uncertainty in Income Taxes as
promulgated by the Financial Accounting Standards Board, as in effect from time to
time.

‘Quick Assets’ shall mean as of any date of determination, the Borrower’s
consolidated, unrestricted cash, unrestricted cash equivalents, short term
investments and net trade accounts receivable of Borrower regarding continuing and
discontinued operations.”

     3. Modified Revolving Maturity Date. The Revolving Maturity Date as set forth in Section 13.1
of the Loan Agreement is hereby modified to be “364 days from the date of the Amendment to Loan
Agreement dated July 16, 2007 between Bank and Borrower.”

     4. Fee. In consideration for Bank entering into this Amendment, Borrower shall concurrently
pay Bank a fee in the amount of $25,000, which shall be non-refundable and in addition to all
interest and other fees payable to Bank under the Loan Documents.

     5. Limitation of Amendments.

     (A) The amendments set forth above are effective for the purposes set forth herein and shall
be limited precisely as written and shall not be deemed to (a) be a consent to any amendment,
waiver or modification of any other term or condition of any Loan Document, or (b) otherwise
prejudice any right or remedy which Bank may now have or may have in the future under or in
connection with any Loan Document.

     (B) This Amendment shall be construed in connection with and as part of the Loan Documents and
all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan
Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full
force and effect.

     6. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower
hereby represents and warrants to Bank as follows:

     (A) Immediately after giving effect to this Amendment (a) the representations and warranties
contained in the Loan Documents are true, accurate and complete in all material

-2-

 

			
	Silicon Valley Bank
	 	Amendment to Loan Agreement

 

 

respects as of the
date hereof (except to the extent such representations and warranties relate to an earlier date, in
which case they are true and correct as of such date), and (b) no Event of Default has occurred and
is continuing;

     (B) Borrower has the power and authority to execute and deliver this Amendment and to perform
its obligations under the Loan Agreement, as amended by this Amendment;

     (C) The organizational documents of Borrower that the Bank obtained with respect to the
original execution of the Loan Agreement remain true, accurate and complete and have not been
amended, supplemented or restated and are and continue to be in full force and effect, other than
for the amendment and restatement of Borrower’s certificate of incorporation filed with the
Secretary of State of Delaware on May 29, 2002.

     (D) The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, have been duly
authorized;

     (E) The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not
contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual
restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or
other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d)
the organizational documents of Borrower;

     (F) The execution and delivery by Borrower of this Amendment and the performance by Borrower
of its obligations under the Loan Agreement, as amended by this Amendment, do not require any
order, consent, approval, license, authorization or validation of, or filing, recording or
registration with, or exemption by any governmental or public body or authority, or subdivision
thereof, binding on either Borrower, except as already has been obtained or made; and

     (G) This Amendment has been duly executed and delivered by Borrower and is the binding
obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or
other similar laws of general application and equitable principles relating to or affecting
creditors’ rights.

     7. Counterparts. This Amendment may be executed in any number of counterparts and all of such
counterparts taken together shall be deemed to constitute one and the same instrument.

     8. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and
delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment
of an amendment fee in an amount equal to $25,000 as stated above, and (c) the delivery of
such other agreements and documents by Borrower and the taking of such other actions Borrower, in
each case as Bank shall determine are necessary or advisable in order to effectuate the terms and
provisions hereof and of the Loan Agreement.

[Signature page follows.]

-3-

 

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first above
written.

	 	 	 	 	 	 	 	 	 
	Borrower:	 	 	 	Bank:
	 
	 	 	 	 	 	 	 	 
	I-Flow Corporation	 	 	 	Silicon Valley Bank
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ James R. Talevich, CFO
	 	 	 	By:
	 	/s/ Robert Anderson
	 

	 	 
	 	 	 	 	 	 
	 

	 	President or Chief Financial Officer
	 	 	 	 	 	Title: Senior Relationship Manager

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00126-of-00352.parquet"}]]