Document:

Exhibit 10.1

 

July 31, 2014

 

Mary G. Puma, Chairman and Chief Executive Officer

Axcelis Technologies, Inc.

108 Cherry Hill Drive

Beverly, Massachusetts 01915

 

Re: Base Compensation of Chief Executive Officer and Chairman

 

Dear Mary:

 

This letter confirms the arrangement between Axcelis Technologies, Inc. and you regarding a 20% base pay decrease approved by the Compensation Committee on July 30, 2014, effective August 30, 2014, and first impacting payroll on September 5, 2014.  Your annual rate of pay beginning on that date will be $440,000, which rate shall continue through December 31, 2014 or such later date as we mutually agree to continue such reduced rate of pay.  Upon the termination of the salary reduction period described in the foregoing sentence, your base pay will increase to the rate of $550,000 per annum or such other amount fixed by the Compensation Committee, subject to the minimum annual base pay set in your Employment Agreement with the Company dated as of November 6, 2007 (your “Employment Agreement”).

 

Notwithstanding the reduction in your rate of pay, in the event that you are at any time entitled to separation pay under your Employment Agreement or your Change of Control Agreement with the Company dated as of November 6, 2007 and amended on April 27, 2012, all amounts due to you shall be calculated as if such reduction in pay had not occurred and your current rate of pay had continued in effect during the pay reduction period.

 

Please sign below to indicate your agreement to the foregoing.  Thank you.

 

	
 
    	
 
    	
Best   regards,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
AXCELIS   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Lynnette C. Fallon
    
	
 
    	
 
    	
Lynnette   C. Fallon
    
	
 
    	
 
    	
Executive   Vice President HR/Legal and General Counsel
    
	
ACCEPTED   AND AGREED:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Mary G. Puma
    	
 
    	
 
    
	
Mary   G. PumaExhibit 10.2

 

[Northern Bank & Trust Company letterhead]

 

August 18, 2014

 

Axcelis Technologies, Inc.

108 Cherry Hill Drive

Beverly, MA  01915

Attention:  Kevin Brewer

 

Re:                             Amendment of the Business Loan Agreement, dated as of July 5, 2013, between Axcelis Technologies, Inc., a Delaware corporation (the “Borrower”), and Northern Bank & Trust, a Massachusetts corporation (the “Lender”).

 

Dear Mr. Brewer:

 

As we have discussed, the Borrower expects that its financial results for the quarter ended September 30, 2014 may result in the Borrower’s failure to comply with the Debt Service Ratio covenant in the Business Loan Agreement referenced above (the “Loan Agreement”). Previously, the Borrower failed to comply with the Debt Service Ratio for the quarter ended March 31, 2014 and Lender waived the non-compliance and amended the Loan Agreement by letter agreement dated May 2, 2014.  The Borrower has requested that the Lender again amend the Debt Service Ratio under the Loan Agreement

 

Accordingly, effective upon the Borrower’s execution and delivery of a copy of this Letter Agreement (the “Effective Date”), the parties hereto hereby agree as follows:

 

1.              Amendment to Loan Agreement.  With effect from the Effective Date, the paragraph entitled “Debt Service Ratio” in the Loan Agreement shall be amended and restated to read in its entirety as follows:

 

Debt Service Ratio.   Commencing December 31, 2014, Borrower shall maintain a minimum Debt Service Coverage Ratio of 1.45x, which will be calculated on a quarterly basis by dividing the (A) the Projected Annual Net Income which shall be equal to the quarterly Net Income of the Borrower (as shown on the Borrower’s quarterly financial statements) multiplied by four (4), by (B) the actual annual debt service required to amortize the amounts outstanding hereunder over a ten (10) year amortization schedule at an interest rate of Five and One Half Percent (5.50%) over the twelve month period beginning on the first day of the quarter covered by such quarterly financial statements.

 

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Except as expressly modified pursuant to this Letter Agreement, the terms of the Loan Agreement and the Related Documents remain unchanged and in full force and effect.

 

2. Borrower’s Representations and Warranties. In order to induce the Lender to enter into this Letter Agreement, the Borrower represents and warrants that as of the Effective Date:

 

a)             No Default.  No Event of Default (as defined in the Loan Agreement) or condition that may lead to an Event of Default (other than the non-compliance described herein) exists;

 

b)             Authorization.  The execution, delivery and performance by the Borrower of this Letter Agreement have been duly authorized by all necessary corporate or other action on the part of the Borrower and do not and will not require any registration with, consent or approval of, or notice to or action by, any person (including any governmental authority) in order to be effective and enforceable; and

 

c)              Binding Obligations.  The Loan Agreement, this Letter Agreement (which shall be deemed a “Related Document” for the purposes of the Loan Agreement) and the other Related Documents constitute the legal, valid and binding obligations of the Borrower, and are enforceable against the Borrower in accordance with their respective terms, without defense, counterclaim or offset.

 

3. Miscellaneous.

 

a)             Lender’s Reservation of Rights. The Borrower acknowledges and agrees that neither the execution nor the delivery by the Lender of this Letter Agreement shall (a) be deemed to create a course of dealing or otherwise obligate the Lender to grant similar waivers or other modifications of the terms of the Loan Agreement under the same or similar circumstances in the future, or (b) be deemed to create an implied waiver of any right or remedy of the Lender with respect to any term or provision of any Related Document (including any term or provision relating to the occurrence of a Material Adverse Effect); or in any way prejudice, impair or limit any of the Lender’s right or remedies against the Borrower.

 

b)             Governing Law. This Letter Agreement and the rights and obligations of the parties hereunder shall be governed by, and construed and interpreted in accordance with the law of the Commonwealth of Massachusetts. This Letter Agreement is subject to the provisions set forth in the Loan Agreement relating to venue and jury trial waiver, which provisions are by this reference incorporated herein.

 

c)              Successors and Assigns. This Letter Agreement shall be binding upon and inure to the benefit of the parties hereto and to the benefit of their respective successors and assigns. No third party beneficiaries are intended in connection with this Letter Agreement.

 

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d)             Entire Agreement; Amendments. This Letter Agreement, together with the Loan Agreement and the other Related Documents, contains the entire and exclusive agreement of the parties hereto with reference to the matters discussed herein and therein. This Letter Agreement supersedes all prior drafts and communications with respect hereto and may not be amended except in accordance with the provisions set forth in the Loan Agreement.

 

e)              Severability. If any term or provision of this Letter Agreement shall be deemed prohibited by or invalid under any applicable law, such provision shall be invalidated without affecting the remaining provisions of this Letter Agreement, respectively.

 

f)               Reimbursement of Costs and Expenses. The Borrower covenants to pay or reimburse the Lender, upon demand, for all reasonable and documented costs and expenses incurred by the Lender in connection with the development, preparation, negotiation, execution and delivery of this Letter Agreement.

 

g)              Counterparts. This Letter Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one agreement.

 

 

	
Very   truly yours,
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
NORTHERN BANK AND TRUST   COMPANY
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Donald P. Queenin
    	
 
    
	
Name:
    	
Donald   P. Queenin
    	
 
    
	
Title:
    	
Executive   Vice President
    	
 
    

 

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ACKNOWLEDGED AND AGREED:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
AXCELIS TECHNOLOGIES, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Kevin J. Brewer
    	
 
    
	
Name:
    	
Kevin   J. Brewer
    	
 
    
	
Title:
    	
EVP   and Chief Financial Officer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Amy Rasimas
    	
 
    
	
Name:
    	
Amy   Rasimas
    	
 
    
	
Title:
    	
Treasurer
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Date:
    	
August 20,   2014
    	
 
    

 

4Exhibit 10.3

 

WAIVER AND FIRST AMENDMENT

TO

LOAN AND SECURITY AGREEMENT

 

This Waiver and First Amendment to Loan and Security Agreement (this “Amendment”) is entered into as of August 1, 2014, by and between SILICON VALLEY BANK, a California corporation, with its principal place of business at 3003 Tasman Drive, Santa Clara, California 95054 and with a loan production office located at 275 Grove Street, Suite 2-200, Newton, Massachusetts 02466 (“Bank”), and AXCELIS TECHNOLOGIES, INC., a Delaware corporation with offices located at 108 Cherry Hill Drive, Beverly, Massachusetts 01915 (“Borrower”).

 

RECITALS

 

A.                                    Bank and Borrower have entered into that certain Loan and Security Agreement dated as of October 31, 2013 (as the same may from time to time be further amended, modified, supplemented or restated, the “Loan Agreement”).

 

B.                                    Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.                                    Borrower has requested that Bank (i) waive the Event of Default resulting from the failure of Borrower to comply with the Minimum Adjusted Net Income covenant in Section 6.9(b) of the Loan Agreement for trailing six month period ending June 30, 2014 and (ii) amend the Loan Agreement to revise the Minimum Adjusted Net Income covenant in Section 6.9(b).

 

D.                                    Bank has agreed to so waive compliance and amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.                                      Definitions.  Capitalized terms used but not defined in this Amendment shall have the meanings given to them in the Loan Agreement.

 

2.                                      Amendment to Loan Agreement.

 

2.1                               Section 6.9(b) (Minimum Adjusted Net Income).  Section 6.9(b) is amended in its entirety and replaced with the following:

 

“(b) Minimum Adjusted Net Income.  Borrower and its Subsidiaries, on a consolidated basis, shall achieve Adjusted Net Income of at least (i) ($1,500,000) for the

 

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trailing three (3) month period ending on the last day of the fiscal quarter ending September 30, 2013; (ii) $1.00 for the trailing three (3) month period ending on the last day of the fiscal quarter ending December 31, 2013; (iii) $2,500,000 for the trailing six month period ending on the last day of the fiscal quarters ending March 31, 2014 and June 30, 2014, (iv) ($3,000,000) for the trailing three month period ending on the last day of the fiscal quarter ending September 30, 2014, (v) $1.00 for the trailing six month period ending on the last day of the fiscal quarter ending December 31, 2014, (vi) $1,000,000 for the trailing six month period ending on the last day of the fiscal quarter ending March 31, 2015, and (vii) $1,000,000 for the trailing six month period ending on (A) the last day of the fiscal quarter ending June 30, 2015, and (B) the last day of each fiscal quarter thereafter.”

 

3.                                      Limitation of Amendments.

 

3.1                               The amendments set forth in Section 2, 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.

 

3.2                               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.

 

4.                                      Acknowledgment of Non-Compliance; Waiver by Bank.  Borrower acknowledges that the failure of Borrower to comply with the Minimum Adjusted Net Income covenant in Section 6.9(b) of the Loan Agreement for trailing six month period ending June 30, 2014 would become an Event of Default if not waived by the Bank (the “Non-Compliance”).  Bank hereby waives the Non-Compliance.  The foregoing waivers shall apply only to the foregoing Non-Compliance for the specific periods referenced.  Borrower hereby acknowledges and agrees that except as specifically provided herein, nothing in this Section or anywhere in this Amendment shall be deemed or otherwise construed as a waiver by Bank of any of its rights and remedies pursuant to the Loan Documents, applicable law or otherwise.

 

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

 

5.1                               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 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;

 

5.2                               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;

 

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5.3                               Other than amendments to the Borrower’s Bylaws effective May 13, 2014, the organizational documents of Borrower delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect;

 

5.4                               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;

 

5.5                               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;

 

5.6                               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

 

5.7                               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.

 

6.                                      Ratification of Intellectual Property Security Agreement.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and conditions of a certain Intellectual Property Security Agreement dated as of October 31, 2013 between Borrower and Bank, and acknowledges, confirms and agrees that said Intellectual Property Security Agreement (a) contains an accurate and complete listing of all Intellectual Property Collateral, as defined in said Intellectual Property Security Agreement, subject to such changes as have been previously reported to the Bank through June 30, 2014 and (b) shall remain in full force and effect.

 

7.                                      Ratification of Perfection Certificate.  Borrower hereby ratifies, confirms and reaffirms, all and singular, the terms and disclosures contained in a certain Perfection Certificate dated as of October 31, 2013 delivered by Borrower to Bank, and acknowledges, confirms and agrees the disclosures and information above Borrower provided to Bank in said Perfection Certificate have not changed, as of the date hereof.

 

8.                                      No Defenses of Borrower.  Borrower hereby acknowledges and agrees that Borrower has no offsets, defenses, claims, or counterclaims against Bank with respect to the Obligations, or otherwise, and that if Borrower now has, or ever did have, any offsets, defenses, claims, or counterclaims against Bank, whether known or unknown, at law or in equity, all of

 

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them are hereby expressly WAIVED and Borrower hereby RELEASES Bank from any liability thereunder.

 

9.                                      Integration.  This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede prior negotiations or agreements.  All prior agreements, understandings, representations, warranties, and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment and the Loan Documents.

 

10.                               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.

 

11.                               Effectiveness.  This Amendment shall be deemed effective as of August 1, 2014 upon (a) the due execution and delivery to Bank of this Amendment by each party hereto, (b) Borrower’s payment of (i) an amendment fee in an amount equal to $10,000, and (ii) Bank’s legal fees and expenses incurred in connection with this Amendment.

 

[Signature page follows.]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first written above.

 

 

	
BANK
    	
 
    	
BORROWER
    
	
 
    	
 
    	
 
    
	
SILICON   VALLEY BANK
    	
 
    	
AXCELIS   TECHNOLOGIES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/   Michael Quinn
    	
 
    	
By:
    	
/s/   Mary G. Puma
    
	
 
    	
 
    	
 
    
	
Name: Michael   Quinn
    	
 
    	
Name: Mary   G. Puma
    
	
 
    	
 
    	
 
    
	
Title:  Vice   President
    	
 
    	
Title:  Chairman,   President and CEO
    
					

 

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IN WITNESS WHEREOF, the following Guarantor hereby consents to the foregoing Amendment and agrees that the Guaranty relating to the Obligations of Borrower under the Loan Agreement dated as of October 31, 2013 shall continue in full force and effect, shall be valid and enforceable and shall not be impaired or otherwise affected by the execution of the Amendment or any other document or instrument delivered in connection herewith.

 

 

	
Guarantor
    	
 
    
	
 
    	
 
    
	
AXCELIS   TECHNOLOGIES (ISRAEL), INC.
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Mary G. Puma
    	
 
    
	
 
    	
 
    
	
Name:    Mary G. Puma
    	
 
    
	
 
    	
 
    
	
Title:  President
    	
 
    
			

 

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