Document:

Exhibit 10.(y)

 

Carsen Group Inc.

151 Telson Road

Markham, Ontario

Canada L3R 1E7

 

 

June 20,
2005

 

William J. Vella

1618 Amberlea Road

Pickering, Ontario,
Canada L1V 5P3

 

Dear Bill:

 

This
letter sets forth the terms of our agreement regarding compensation that will
be payable to you in the event your employment with Carsen Group Inc. (the “Company”)
is terminated following the expiration of the Distribution Agreement between
Olympus America Inc. and the Company on July 31, 2006.

 

Subject
to the terms of this Agreement, you will have the right to terminate your
employment at any time after August 30, 2006 by giving not less than ten (10) days’
written notice of termination (a “Termination Notice”) to the Company.  Upon the termination of your employment either
by the Company or by you after August 31, 2006, you will be entitled to a lump
sum payment in an amount equal to two hundred percent (200%) of your total
fiscal 2005 cash compensation (i.e., salary and bonus, whether paid or
accrued), which amount will be payable within thirty (30) days following the
termination date of your employment.  We
will negotiate your compensation package for fiscal 2006 in good faith.  Although the fiscal 2006 formula for your
incentive compensation may differ from fiscal 2005, your compensation potential
will be comparable to fiscal 2005.

 

 

Notwithstanding
anything above to the contrary, if requested in writing by the President of Cantel
Medical Corp. (even after its receipt of a Termination Notice), you agree to
continue your employment with the Company (at its present location) for a
period not to exceed ninety (90) days following July 31, 2006.  During such ninety (90) day period, you will
be entitled to compensation at the same rate (including base salary, bonus and
benefits (with respect to benefits, either under the current or similar plans
of the Company or through reimbursement)) you were receiving immediately prior
to such period, or such other amount that may be agreed upon in writing by the
parties.

 

On the
termination date of your employment, all stock options held by you which were granted under an employee
stock option plan of Cantel shall thereupon automatically vest in full and
become exercisable for all of the shares thereunder.  The compensation payable to you hereunder
shall be in lieu of any and all severance pay, termination pay and other
compensation that would otherwise be payable to you under the applicable laws, rules and
regulations of Canada and the Province of Ontario in connection with the
termination of your employment, and subject to your receipt of all amounts
payable to you hereunder, you irrevocably waive any other such severance pay,
termination pay, compensation or other entitlement from the Company or Cantel.

 

This
Agreement is entered into in the Province of Ontario and shall be governed
pursuant to the laws of Ontario.  If any
provision of this Agreement shall be held by a court of competent jurisdiction
to be invalid, illegal or unenforceable, the remaining provisions hereof shall
continue to be fully effective.  This
Agreement contains the entire agreement of the parties regarding this subject
matter.  There are no contemporaneous
oral agreements, and all prior understandings,

 

2

 

agreements, negotiations
and representations are merged herein.  This
Agreement may be modified only by means of a writing signed by the party to be
charged with such modification.

 

Notices
or other communications required or permitted to be given hereunder shall be in
writing and shall be deemed duly given upon receipt by the party to whom sent
at the respective addresses set forth below or to such other address as any
party shall hereafter designate to the other in writing delivered in accordance
herewith:

 

If to
the Company:

 

Carsen
Group Inc.

c/o Cantel
Medical Corp.

150
Clove Road - 9th Floor

Little
Falls, NJ 07424

Attention:
General Counsel

 

If to
Employee:

 

William
J. Vella

1618
Amberlea Road

Pickering,
Ontario, Canada L1V 5P3

 

Please
acknowledge your agreement to the foregoing terms and conditions by signing and
return this letter agreement.

 

 

	
   

  	
  CARSEN GROUP
  INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  James P. Reilly, Director

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  William J. Vella

  	
   

  

 

3Exhibit 10.(jj)

 

EXECUTION COPY

 

THIRD
AMENDMENT

 

TO

 

CREDIT
AGREEMENT

 

THIS THIRD AMENDMENT, dated as of February 17, 2005
(this “Third Amendment”), is by and among CANTEL MEDICAL CORP., a Delaware corporation (the “Borrower”),
the Lenders and Fleet National Bank, a Bank of America Company (“Fleet”),
as the Initial Issuing Bank, the Swing Line Bank and the Administrative Agent
for itself and the Lenders (in such capacity, together with its successors in
such capacity, the “Administrative Agent”).

 

PRELIMINARY
STATEMENTS

 

(A)                              The Borrower, the Lenders and Fleet, as
the Initial Issuing Bank, the Swing Line Bank, the Administrative Agent and PNC
Bank, National Association, as Documentation Agent, are parties to that certain
Credit Agreement, dated as of September 7, 2001, as amended by the First
Amendment thereto, dated as of August 1, 2003 and the Second Amendment
thereto, dated as of June 1, 2004 (as so amended and as it may hereafter
be further amended, supplemented, restated or otherwise modified from time to
time, the “Credit Agreement”).

 

(B)                                The Borrower has requested that the
Lenders amend the Credit Agreement to (i) revise the definition of “Applicable
Margin,” (ii) increase the aggregate amount of cash consideration payable
and Debt assumed in respect to Permitted Acquisitions during the term of the
Credit Agreement, (iii) increase the size of the Revolving Credit Facility
at the Agent’s and Borrower’s mutual agreement by an aggregate amount of up to
$22,500,000, from $17,500,000 to $40,000,000, at any time on or before the
Revolving Credit Termination Date, from existing Lenders and/or new Lenders
mutually acceptable to Agent and Borrower, (iv) modify the Financial
Covenants relating to Capital Expenditures and Consolidated Debt to EBITDA, and
(v) eliminate Borrowing Base requirements.

 

(D)                               The Administrative Agent and the Lenders
are willing to make such amendments to the Credit Agreement upon the terms and
conditions set forth herein.

 

(E)                                 The terms defined in the Credit Agreement
and not otherwise defined herein shall have the meanings ascribed to them in
the Credit Agreement.

 

NOW, THEREFORE, in consideration of the premises and of
the mutual covenants and agreements contained herein, the parties hereto hereby
agree as follows:

 

ARTICLE 1.               Amendments to Credit Agreement.

 

This Third Amendment
shall be deemed to be an amendment to the Credit Agreement, and shall not be
construed in any way as a replacement therefor. 
All of the terms

 

 

and provisions of
this Third Amendment, including, without limitation, the representations and
warranties set forth herein, are hereby incorporated by reference into the
Credit Agreement as if such terms and provisions were set forth in full
therein.  Capitalized terms used herein and
not otherwise defined shall have the meaning ascribed to them in the Credit
Agreement.  The Credit Agreement is
hereby amended in the following respects:

 

Section 1.1.                                Section 1.1, Certain Defined
Terms, of the Credit Agreement is amended as follows:

 

(a)                                  The definition of “Applicable Margin”
set forth in Section 1.1 of the Credit Agreement is hereby amended
by deleting the existing Applicable Margin for Advances grid in its entirety
and replacing it with the following:

 

Applicable Margin for
Advances

 

	
  Ratio of Consolidated

  Debt to EBITDA

  	
   

  	
  Eurodollar Rate

  Advances

  	
   

  	
  Prime Rate

  Advances

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Greater than 2.0
  to 1.0

  	
   

  	
  1.75

  	
  %

  	
  0.50

  	
  %

  
	
  Greater than 1.50 to 1.0 but less than or equal to
  2.00 to 1.0

  	
   

  	
  1.50

  	
  %

  	
  0.25

  	
  %

  
	
  Greater than 1.00 to 1.00 but less than or equal to
  1.5 to 1.0

  	
   

  	
  1.25

  	
  %

  	
  0.00

  	
  %

  
	
  Equal to or less
  than 1.0 to 1.0

  	
   

  	
  1.00

  	
  %

  	
  0.00

  	
  %

  

 

(b)                                 The definition of “Note” set forth
in Section 1.1 of the Credit Agreement is hereby amended by
inserting a coma (“,”) and inserting the words “Incremental Revolving Credit
Note” after “Revolving Credit Note”.

 

(c)                                  The definition of “Permitted
Acquisitions” set forth in Section 1.1 of the Credit Agreement
is hereby amended by deleting the number “$5,000,000” in subsection (b)(ii) and
replacing it with the number “$25,000,000”.

 

(d)                                 The following definition is amended and
restated to read in its entirety as follows:

 

“Revolving
Credit Availability” means, at any time, the aggregate amount of the
Revolving Credit Facility less the sum of (a) the aggregate principal
amount of all Revolving Credit Advances then outstanding (including the
outstanding balance of Letter of Credit Advances and the aggregate Available
Amount of all Letters of Credit), and (b) Swing Line Advances then
outstanding at such time.

 

(e)                                  The following definitions are inserted in
proper alphabetical order:

 

2

 

“Additional
Lender” has the meaning specified in Section 2.17(b).

 

“Incremental
Effective Date” has the meaning specified in Section 2.17(c).

 

“Incremental
Revolving Credit Advances” means advances made by an existing Lender or an
Additional Lender, as the case may be, to the Borrower from time to time
incurred pursuant to the Incremental Revolving Credit Commitments.

 

“Incremental
Revolving Credit Commitment” has the meaning specified in Section 2.17(a).

 

“Incremental
Revolving Credit Note” has the meaning specified in Section 2.17(f).

 

“Third Amendment”
means the Third Amendment dated as of February 17, 2005, by and among
Borrower, the Lenders and Fleet.

 

“Third Amendment
Closing Date” shall mean the date on which all of the conditions in Article 5
of the Third Amendment have been meet.

 

(f)                                    The following definitions are hereby
deleted in their entirety from Section 1.1: “Borrowing Base”,
“Borrowing Base Certificate”, “Borrowing Base Deficiency”, “Eligible
Inventory”, “Eligible Receivables” and “Unused Revolving Credit
Availability”.

 

Section 1.2.                                Section 2.1, The Advances, is
hereby amended by the following:

 

(a)                                  Subsection 2.1(b), The Revolving
Credit Advances, is amended by deleting the word “Unused” before the words “Revolving
Credit Availability.”

 

(b)                                 Subsection 2.1(c), The Swing Line
Advances, is amended by deleting the word “Unused” before the words “Revolving
Credit Availability.”

 

(c)                                  Subsection 2.1(d), Letters of
Credit, is amended by deleting the word “Unused” before the words “Revolving
Credit Availability.”

 

Section 1.3.                                Section 2.8, Fees, of the
Credit Agreement is hereby amended by deleting in its entirety the existing
Commitment Fee grid and replacing it with the following:

 

3

 

	
  Ratio of Consolidated

  Debt to EBITDA

  	
   

  	
  Commitment Fee

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Greater than 2.0
  to 1.0

  	
   

  	
  0.35

  	
  %

  
	
  Greater than 1.50 to 1.0 but less

  than or equal to 2.00 to 1.0

  	
   

  	
  0.30

  	
  %

  
	
  Greater than 1.00 to 1.00 but less

  than or equal to 1.5 to 1.0

  	
   

  	
  0.25

  	
  %

  
	
  Equal to or less
  than 1.0 to 1.0

  	
   

  	
  0.20

  	
  %

  

 

Section 1.4.                                A new Section 2.17, Incremental
Revolving Credit Commitments, is added at the conclusion of Article II
to read in its entirety as follows:

 

“Section 2.17
Incremental Revolving Credit Commitments.

 

(a)                                  Provided there exists no Default, upon
notice to the Administrative Agent the Borrower shall have the right to
request, on one or more occasions prior to the Revolving Credit Termination
Date, an increase in the Revolving Credit Facility in accordance with this Section 2.17
(the amount of any such increase, the “Incremental Revolving Credit
Commitment”).  The aggregate amount
of all Incremental Revolving Credit Commitments shall not exceed
$22,500,000.  Any request for an Incremental
Revolving Credit Commitment shall be in a minimum amount of $5,000,000.

 

(b)                                 The Borrower may designate any Lender
party to this Agreement (with the consent of such Lender, which may be given or
withheld in its sole discretion) or another Person which qualifies as an
Eligible Assignee (which may be, but need not be, existing Lenders) which at
the time agrees to (i) in the case of any such designated Lender that is
an existing Lender, increase its Pro Rata Share of its Revolving Credit
Commitments, and (ii) in the case of any other such Person (an “Additional
Lender”), become a party to this Agreement.

 

(c)                                  If the Revolving Credit Facility is
increased in accordance with this Section 2.17, the Administrative
Agent and the Borrower shall determine the effective date (the “Incremental
Effective Date”) and the final allocation of such increase.  The Administrative Agent shall promptly
notify the Borrower and the Lenders of the final allocation of such increase
and the Incremental Effective Date. 
Prior to any such increase, (i) the conditions set forth in Section 3.2
of the Credit Agreement, Conditions Precedent to Each Borrowing and Issuance,
shall have been satisfied, (ii) the Administrative Agent shall have
received from the Borrower updated financial projections and an officer’s
certificate, in each case in form and substance reasonably satisfactory to the
Administrative Agent, demonstrating that, after giving effect to any such
Incremental Revolving Credit Commitment, the Borrower will be in compliance
with the financial covenants set forth in Sections 8.1, 8.2, 8.3 and 8.4 of the
Credit Agreement, (iii) the Borrower shall deliver to the Administrative
Agent a certificate of each Loan Party dated as of the Incremental Effective
Date signed by a Responsible

 

4

 

Officer of such Loan Party (a) certifying and attaching the
resolutions adopted by such Loan Party authorizing such increase, and stating
that the Incremental Revolving Credit Advances to be incurred pursuant to any
Incremental Revolving Credit Commitments shall be entitled to the benefits of
the Security Agreement and the Subsidiary Guaranty, and (b) in the case of
the Borrower, certifying that, before and after giving effect to such increase,
(1) the representations and warranties contained in Article IV
and the other Loan Documents are true and correct on and as of the Incremental
Effective Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Section 2.17,
the representations and warranties contained in subsections (a) and (b) of
Section 4.6 shall be deemed to refer to the most recent statements
furnished pursuant to Sections 7.2 and 7.3, and (2) no
Default exists, and (iv) Borrower shall deliver or cause to be delivered
any legal opinions or other documents reasonably requested by Administrative
Agent in connection with any such Incremental Revolving Credit Commitment.  The Borrower shall also pay any costs and
expenses (including, without limitation attorney fees, title insurance premiums
and filing fees) incurred in connection with the increase of the Revolving
Credit Commitments pursuant to this Section 2.17.

 

(d)                                 The terms and conditions of the
Incremental Revolving Credit Advances made pursuant to the Incremental
Revolving Credit Commitments shall be identical to the Revolving Credit
Advances in all respects.

 

(e)                                  The Incremental Revolving Credit
Commitments shall be secured and guaranteed with the other Debt under the Loan
Documents and shall be secured and guaranteed with the other Revolving Credit
Commitments on a pari passu basis
and shall be entitled to the same rights, on a pro rata basis, as the existing
Revolving Credit Commitments.

 

(f)                                    Within two Business Days of the
Incremental Effective Date, the Borrower shall make appropriate arrangements so
that each Additional Lender receives a note, dated the Incremental Effective
Date, and substantially in the form of Exhibit A attached hereto
(each an “Incremental Revolving Credit Note” and, collectively, the “Incremental
Revolving Credit Notes”) to evidence such Additional Lender’s Incremental
Revolving Credit Commitment and each existing Lender increasing its Revolving
Credit Commitment pursuant to this Section 2.17, shall receive a
replacement Revolving Credit Note, dated the Incremental Effective Date, to
evidence in an aggregate amount such existing Lender’s Revolving Credit
Commitment plus such existing Lender’s Incremental Revolving Credit
Commitment.  Each Incremental Revolving
Credit Note shall constitute a Loan Document under the Credit Agreement and
shall (i) bear interest as provided as provided in Section 2.7
of the Credit Agreement, and (ii) be entitled to the benefits of the
Credit Agreement and the other Loan Documents.

 

5

 

(g)                                 Notwithstanding anything to the contrary
herein, in no event shall the interest rate payable on any Incremental
Revolving Credit Commitment exceed the interest rate from time to time payable
on the Revolving Credit Advances.

 

(h)                                 This Section 2.17 shall
supersede any provisions in Sections 2.13 or 11.1 to the
contrary.”

 

(i)                                     No commitment fee shall be payable on any
Incremental Revolving Credit Commitment until the Incremental Effective Date
with respect to such Incremental Revolving Credit Commitment.

 

Section 1.5.                                Section 3.2(b)(iii), Conditions
Precedent to Each Borrowing and Issuance, is amended and restated in its
entirety as follows:

 

“(iii)                         for each
Revolving Credit Advance, Swing Line Advance made by the Swing Line Bank or
issuance or renewal of any Letter of Credit, the outstanding amount of the
Revolving Credit Advances shall not be in excess of the remaining Revolving
Credit Availability after giving effect to any such Advance or issuance or
renewal, respectively.”

 

Section 1.6.                                Section 6.17, Capital
Expenditures, of the Credit Agreement is amended by amending and restating
the table contained therein to read in its entirety as follows:

 

	
  Period

  	
   

  	
  Maximum Capital Expenditures
  per Period

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  August 1,
  2004 through July 31, 2005

  	
   

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
   

  
	
  August 1,
  2005 through July 31, 2006

  	
   

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
   

  
	
  August 1, 2006 through July 31, 2007

  and each period thereafter

  	
   

  	
   

  	
  $

  	
  7,500,000

  	
   

  	
   

  

 

 

Section 1.7.                                Section 7.19, Borrowing Base
Certificate, of the Credit Agreement is hereby deleted in its entirety.

 

Section 1.8.                                Section 7.22, Monthly Accounts
Receivable Aging Reports, etc., of the Credit Agreement is hereby deleted
in its entirety.

 

Section 1.9.                                Section 8.2, Consolidated Debt to
EBITDA Ratio, of the Credit Agreement is amended by deleting the maximum
Ratio of Consolidated Debt to EBITDA covenant levels for the periods ending on January 31,
2005 and all periods thereafter and replacing them with the following:

 

	
  Four Fiscal Quarters ending on:

  	
   

  	
  Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  January 31,
  2005

  	
   

  	
  2.25

  	
   

  
	
  April 30,
  2005

  	
   

  	
  2.25

  	
   

  
	
  July 31,
  2005 and each fiscal quarter thereafter

  	
   

  	
  2.25

  	
   

  

 

6

 

Section 1.10.                         Section 9.12, Borrowing Base
Deficiency, of the Credit Agreement is hereby deleted in its entirety.

 

ARTICLE 2.                             Confirmations and References.

 

Section 2.1.                                Continuing Effect.  The
Credit Agreement and the other Loan Documents delivered in connection therewith
are, and shall continue to be, in full force and effect, and are hereby
ratified and confirmed in all respects, except that, on and after the date
hereof, (a) all references in the Loan Documents (i) to the “Credit
Agreement,” “thereto,” “thereof,” “thereunder” or words of like import
referring to the Credit Agreement shall mean the Credit Agreement as amended
hereby and (ii) to the “Loan Documents” shall be deemed to include this
Third Amendment; and (b) all references in the Credit Agreement to “this
Agreement,” “hereto,” “hereof,” “hereunder” or words of like import referring
to the Credit Agreement shall mean the Credit Agreement as amended hereby.

 

Section 2.2.                                InterCreditor Agreement. 
The Intercreditor Agreement shall remain in full force and effect, and
is hereby ratified and confirmed in all respects.

 

Section 2.3.                                Confirmation of Liens. 
The Liens granted pursuant to the Collateral Documents secure, without
limitation, the Obligations of the Borrower and its Subsidiaries to the Lenders
and the Administrative Agent under the Credit Agreement as amended by this
Third Amendment.  The term “Obligations”
as used in the Collateral Documents (or any other term used therein to refer to
the liabilities and obligations of the Borrower and its Subsidiaries to the
Lenders and the Administrative Agent), include, without limitation, Obligations
to the Lenders and the Administrative Agent under the Credit Agreement as
amended by this Third Amendment.

 

ARTICLE 3.                             Representations and Warranties.

 

Each of the Borrower and
each other Loan Party hereby represents and warrants to the Lenders and the
Administrative Agent that:

 

Section 3.1.                                Existing Representations. As of the date hereof and after giving
effect to this Third Amendment, each and every one of the representations and
warranties set forth in the Loan Documents shall be true, accurate and complete
in all respects and with the same effect as though made on the date hereof, and
each shall hereby be incorporated herein in full by reference as if restated
herein in its entirety, except for any representation or warranty limited by
its terms to a specific date and except for changes contemplated by this Third
Amendment or in the ordinary course of business which are not prohibited by the
Credit Agreement (as amended hereby) and which shall not, either singly or in
the aggregate, result in a Material Adverse Change.

 

7

 

Section 3.2.                                No Default.  As of the
date hereof, there exists no Default or Event of Default under the Credit
Agreement, as amended hereby, and no event which, with the giving of notice or
lapse of time, or both, would constitute a Default or Event of Default.

 

Section 3.3.                                Power, Authority, Consents. 
The Borrower and each of its Subsidiaries has the power to execute,
deliver and perform the Credit Agreement, as amended by this Third
Amendment.  The Borrower and each of its
Subsidiaries has taken all necessary action to authorize the execution,
delivery and performance of this Third Amendment.  No consent or approval of any Person other
than those that have been obtained is required in connection with the
execution, delivery or performance by the Borrower or any of its Subsidiaries
of this Third Amendment or the consummation of any of the transactions
consented to in Section 1 hereof.

 

Section 3.4.                                No Violation of Law or Agreements. The execution, delivery and performance
by the Borrower and each of its Subsidiaries of this Third Amendment will not
violate any provision of law presently in effect and will not conflict with or
result in a breach of any order, writ, injunction, ordinance, resolution,
decree, or other similar document or instrument presently in effect of any
court or governmental authority, bureau or agency, domestic or foreign, or the
certificate of incorporation or by-laws of the Borrower or such Subsidiary, or
create (with or without the giving of notice or lapse of time, or both) a
default under or breach of any agreement, bond, note or indenture presently in
effect to which the Borrower or any Subsidiary is a party, or by which any of
them is bound or any of their properties or assets is affected, or result in
the imposition of any Lien of any nature whatsoever upon any of the properties
or assets owned by or used in connection with the business of the Borrower or
any of its Subsidiaries, except for the Liens created and granted pursuant to
the Collateral Documents as acknowledged and confirmed herein.

 

Section 3.5.                                Binding Effect. 
This Third Amendment has been duly executed and delivered by Borrower
and constitutes the valid and legally binding obligation of Borrower, except as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws, now or hereafter in effect,
relating to or affecting the enforcement of creditors’ rights generally, and
except that the remedy of specific performance and other equitable remedies are
subject to judicial discretion.

 

ARTICLE 4.                             Conditions to Amendment.

 

The effectiveness of the
amendments contained in Article 1 shall be subject to the fulfillment of
the following conditions precedent:

 

Section 4.1.                                Amendment.  Borrower and
each of the Lenders shall have executed and delivered to the Administrative
Agent this Third Amendment.

 

Section 4.2.                                No Default. There shall exist no Event of Default or Default
under the Credit Agreement.

 

8

 

Section 4.3.                                Representations and Warranties. 
The representations and warranties contained in Article 4 hereof shall
be true and correct in all material respects on the date hereof as if made on
the date hereof.

 

Section 4.4.                                Certificate. 
The Borrower shall have delivered a certificate signed on behalf of the
Borrower, by a Responsible Officer and the Secretary or an Assistant Secretary
of the Borrower, dated the date hereof (the statements made in such certificate
shall be true on and as of the date hereof), certifying as to (1) the
truth of the representations and warranties contained in the Loan Documents as
though made on and as of the date hereof, except for any representation or
warranty limited by its terms to a specific date and except for changes in the
ordinary course of business that are not prohibited by the Credit Agreement, (2) the
absence of any event occurring and continuing, or resulting from the
transactions contemplated by this Third Amendment, that constitutes a Default
or an Event of Default and (3) the certification of the names and true
signatures of the officers of the Borrower authorized to sign this Third
Amendment and each other Loan Document to which they are or are to be parties
and the other documents to be delivered hereunder and thereunder.

 

Section 4.5.                                Amendment Fees. 
The Borrower shall have paid an amendment fee to the Administrative
Agent, for the account of each Lender which has approved this Third Amendment,
as evidenced by such Lender’s timely execution and delivery of a counterpart
signature page to this Third Amendment, in an amount equal to 0.10% (i.e. 10 basis
points) of the aggregate of such approving Lenders’ Commitments immediately
after the effectiveness of this Third Amendment.

 

Section 4.6.                                Fees and Expenses. The Borrower shall have paid all fees
referred to in the Fee Letter, dated as of the date hereof, from Fleet to Borrower,
at such times and in such manner as set forth therein and all accrued fees and
expenses of the Administrative Agent and the Lenders (including reasonable fees
and expenses of counsel for the Administrative Agent).

 

ARTICLE 5.                             Miscellaneous.

 

Section 5.1.                                Continued Effectiveness. 
Except as specifically amended herein, the Credit Agreement and each of
the other Loan Documents shall remain in full force and effect in accordance
with their respective terms.

 

Section 5.2.                                Governing Law. THIS THIRD AMENDMENT SHALL BE GOVERNED
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT
REGARD TO ITS RULES PERTAINING TO CONFLICTS OF LAWS OTHER THAN GENERAL
OBLIGATIONS LAW SECTION 5.1401.

 

Section 5.3.                                Severability.                              The provisions of this Third Amendment are severable,
and if any clause or provision shall be held invalid or unenforceable in whole
or in part in any jurisdiction, then such invalidity or unenforceability shall
affect only such clause or provision, or part thereof, in such jurisdiction and
shall not in any manner affect such clause or provision in any other
jurisdiction, or any other clause or provision in this Third Amendment in any
jurisdiction.

 

9

 

Section 5.4.                                Counterparts.                       This Third Amendment may be signed in any number of
counterparts with the same effect as if the signatures thereto and hereto were
upon the same instrument.  Delivery of an
executed counterpart of this Third Amendment by facsimile shall be as effective
as delivery of an originally executed counterpart.

 

Section 5.5.                                Binding Effect; Assignment. 
This Third Amendment shall be binding upon and inure to the benefit of
the Borrower and its respective successors and to the benefit of the
Administrative Agent and the Lenders and their respective successors and
assigns.  The rights and obligations of
the Borrower under this Third Amendment shall not be assigned or delegated
without the prior written consent of the Lenders, and any purported assignment
or delegation without such consent shall be void.

 

Section 5.6.                                Expenses.  The Borrower
shall pay the Administrative Agent upon demand for all reasonable expenses,
including reasonable fees of counsel for the Administrative Agent, incurred by
the Administrative Agent in connection with the preparation, negotiation and
execution of this Third Amendment and any documents required to be furnished
herewith.

 

Section 5.7.                                USA PATRIOT Act Notice. 
Each Lender and the Administrative Agent (for itself and not on behalf
of any Lender) hereby notifies the Borrower that pursuant to the requirements
of the USA Patriot Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)) (the “Act”), it is required to obtain, verify and record information
that identifies the Borrower, which information includes the name and address
of the Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify the Borrower in accordance
with the Act.

 

[Signature Pages Follow]

 

10

 

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

 

 

	
   

  	
  CANTEL
  MEDICAL CORP.,

  
	
   

  	
  as Borrower

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Craig A.
  Sheldon

  
	
   

  	
   

  	
  Title:  Senior Vice President & Chief
  Financial

  Officer

  

 

Third
Amendment to Credit Agreement

 

 

	
   

  	
  FLEET
  NATIONAL BANK,

  
	
   

  	
  a Bank of America Company,

  
	
   

  	
  as Administrative Agent,

  
	
   

  	
  as Initial Issuing Bank,

  
	
   

  	
  as Swing Line Bank and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Richard M
  Williams

  
	
   

  	
   

  	
  Title:   Credit
  Product Officer

  

 

 

	
   

  	
  PNC
  BANK, NATIONAL

  ASSOCIATION,

  
	
   

  	
  as Documentation Agent and as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Jeffrey
  Blakemore

  
	
   

  	
   

  	
  Title:  Senior
  Vice President

  

 

 

	
   

  	
  WELLS
  FARGO BANK, NATIONAL

  
	
   

  	
  ASSOCIATION,
  as a Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Kenneth E.
  LaChance

  
	
   

  	
   

  	
  Title:   Vice
  President

  

 

 

EXHIBIT A

 

FORM OF
INCREMENTAL REVOLVING CREDIT PROMISSORY NOTE

 

	
   

  	
  New
  York, New York

  
	
  $

  	
  [Date]

  

 

FOR VALUE RECEIVED, the
undersigned, CANTEL MEDICAL CORP., a Delaware
corporation (the “Borrower”), HEREBY PROMISES TO PAY to the order of                                                 
(the “Lender”) for the account of its Applicable Lending Office (as
defined in the Credit Agreement referred to below) the aggregate principal
amount of the Incremental Revolving Credit Advances (as defined below) owing to
the Lender by the Borrower pursuant to the Credit Agreement, dated as of September 7,
2001 (as amended, supplemented, restated or otherwise modified, the “Credit
Agreement”; terms defined therein being used herein as therein defined),
among the Borrower, the Lender and certain other Lender Parties party thereto, FLEET NATIONAL BANK, a Bank of America Company,
as Initial Issuing Bank, as Swing Line Bank, Fleet National Bank, a Bank of
America Company and as Administrative Agent for the Lender and the other Lender
Parties and PNC BANK, NATIONAL ASSOCIATION, as
Documentation Agent, on the Revolving Credit Termination Date.

 

The Borrower promises to
pay interest on the unpaid principal amount of each Incremental Revolving
Credit Advance from the date of such Incremental Revolving Credit Advance until
such principal amount is paid in full, at such interest rates, and payable at
such times, as are specified in the Credit Agreement.

 

Both principal and
interest are payable in lawful money of the United States of America to Fleet
National Bank, a Bank of America Company, as Administrative Agent for the
Lender Parties, at 1185
Avenue of the Americas, New York, NY 10036, ABA No. 021300019,
Account No. 151035241515, Attention: Loan Administration, in same day
funds.  Each Revolving Credit Advance
owing to the Lender by the Borrower and the maturity thereof, and all payments
made on account of principal thereof, shall be recorded by the Lender and,
prior to any transfer hereof, endorsed on the grid attached hereto or any
continuation thereof, which is part of this Promissory Note; provided, however,
that the failure of such Lender to so record any such information or any error
in so recording any such information shall not, however, limit or otherwise
affect the obligations of the Borrower hereunder or under any other Loan
Document.

 

This Promissory Note is
one of the Incremental Revolving Credit Notes referred to in, and is entitled
to the benefits of, the Credit Agreement. 
The Credit Agreement, among other things, (i) provides for the
making of Incremental Revolving Credit Advances by the Lender to the Borrower
from time to time in an aggregate amount not to exceed at any time outstanding
the U.S. dollar amount first above mentioned, the indebtedness of the Borrower
resulting from each such Incremental Revolving Credit Advance being evidenced
by this Promissory Note, and (ii) contains provisions for acceleration of
the maturity hereof upon the happening of certain stated events and also for
prepayments on account of principal hereof prior to the maturity hereof upon
the terms and conditions therein specified. 
The obligations of the Borrower under this Promissory Note, and the
obligations of the other Loan Parties under the Loan Documents, are secured by
the Collateral as provided in the Collateral Documents.

 

 

This Promissory Note
shall be governed by and construed in accordance with the laws of the State of
New York.

 

	
   

  	
  CANTEL MEDICAL
  CORP.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
						

 

Incremental Revolving
Credit Promissory Note

 

 

INCREMENTAL REVOLVING CREDIT ADVANCES AND PAYMENTS
OF PRINCIPAL

 

	
  Date

  	
   

  	
  Amount of

  Incremental

  Revolving

  Credit

  Advance

  	
   

  	
  Amount of

  Principal

  Paid or

  Prepaid

  	
   

  	
  Date of

  Payment

  	
   

  	
  Unpaid

  Principal

  Balance

  	
   

  	
  Notation

  Made by

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