Document:

exv10w1

 

Exhibit 10.1

FIRST AMENDMENT

TO

LOAN AGREEMENT

     This First Amendment to Loan Agreement is entered into as of May 9, 2003
(the “Amendment”), by and among COMERICA BANK – CALIFORNIA (“Bank”) and
SAFEGUARD DELAWARE, INC. (“Safeguard Delaware”) and SAFEGUARD SCIENTIFICS
(DELAWARE), INC. (“Safeguard Scientifics”; Safeguard Scientifics and Safeguard
Delaware are sometimes referred to, individually, as a “Borrower” and
collectively, the “Borrowers”).

RECITALS

     Borrowers and Bank are parties to that certain Loan Agreement dated as of
May 10, 2002, as amended (the “Agreement”). The parties desire to amend the
Agreement in accordance with the terms of this Amendment.

     NOW, THEREFORE, the parties agree as follows:

     1.     The following defined terms in Section 1.1 of the Agreement are hereby
amended in their entirety to read as follows:

               “Revolving Maturity Date” means May 8, 2004.

     2.     Section 2.1(b)(i) of the Agreement is hereby amended in its entirety to
read as follows:

		
	 	                         (i)     Subject to the terms and conditions of this Agreement, at
any time prior to the Revolving Maturity Date, Bank agrees to
issue or cause to be issued letters of credit for the account of
Borrowers (each, a “Letter of Credit” and collectively, the
“Letters of Credit”) in an aggregate outstanding face amount not
to exceed the Revolving Line minus the aggregate amount of the
outstanding Advances at any time, provided that the aggregate face
amount of all outstanding Letters of Credit shall not exceed Ten
Million Dollars ($10,000,000). All Letters of Credit shall be,
in form and substance, acceptable to Bank in its sole discretion
and shall be subject to the terms and conditions of Bank’s form of
standard application and letter of credit agreement (the
“Application”), which Borrower hereby agrees to execute, including
Bank’s standard fee equal to 0.5% per annum of the face amount of
each Letter of Credit. On any drawn but unreimbursed Letter of
Credit, the unreimbursed amount shall be deemed an Advance under
Section 2.1(a). Prior to the Revolving Maturity Date, Borrowers
shall secure in cash all obligations under any outstanding Letters
of Credit on terms acceptable to Bank.

     3.     Section 6.4 of the Agreement is hereby amended to read as follows:

		
	 	          6.4     Impairment Charges. Impairment charges relating to
Private Partner Companies on a cumulative basis during the term of
this Agreement, excluding mandatory FASB 142 charges, shall not
exceed $50,000,000 between May 9, 2003 and May 8, 2004.

     4.     Unless otherwise defined, all initially capitalized terms in this
Amendment shall be as defined in the Agreement. The Agreement, as amended
hereby, shall be and remain in full force and effect in accordance with its
respective terms and hereby is ratified and confirmed in all respects. Each
Borrower ratifies and reaffirms the continuing effectiveness of the Agreement
and all instruments, documents and agreements entered into in connection with
the Agreement.

     5.     Each Borrower represents and warrants that the Representations and
Warranties contained in the Agreement are true and correct as of the date of
this Amendment, and that no Event of Default has occurred and is continuing.

     6.     This Amendment may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute
one instrument.

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     7.     As a condition to the effectiveness of this Amendment, Bank shall have
received, in form and substance satisfactory to Bank, the following:

		
	 	     (a) this Amendment, duly executed by Borrowers;
	 
	 	     (b) corporate resolutions to borrow, duly executed by each Borrower;
	 
	 	     (c) an Affirmation and Amendment of Guaranty, duly executed by Safeguard
Scientifics, Inc.;
	 
	 	     (d) corporate resolutions to guaranty, duly executed by Safeguard
Scientifics, Inc.;
	 
	 	     (e) an amount equal to all Bank Expenses incurred through the date of this
Amendment; and
	 
	 	     (f) such other documents, and completion of such other matters, as Bank
may reasonably deem necessary or appropriate.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

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

	 	 	 	 
	 	
SAFEGUARD DELAWARE, INC.
	 	 	 	 
	 	By:	 	
/s/ Christopher J. Davis

	 
	 	
Title: Managing Director and CFO
	 	 	 
	 	
SAFEGUARD SCIENTIFICS
	 	
(DELAWARE), INC.
	 	 	 	 
	 	By:	 	
/s/ Christopher J. Davis

	 
	 	
Title: Managing Director and CFO
	 	 	 	 
	 	
COMERICA BANK-CALIFORNIA
	 	 	 	 
	 	By:	 	
/s/ Stacy Arrigo

	 
	 	
Title: Vice President

3<PAGE>
                                                                    EXHIBIT 10.1

March 21, 2003

Mr. John van Roden
1439 Lanes End
Villanova, PA  19085

Dear John:

I am pleased to extend this formal employment offer to join Glatfelter as Senior
Vice President & Chief Financial Officer reporting directly to the Chairman &
CEO of the company. We believe you will bring outstanding leadership to our
organization as we continue our pursuit of the company's Vision. You will be
formally approved as an executive officer at the next regularly scheduled Board
meeting.

We are interested in starting your first day of employment on April 7, 2003.
Your starting base salary is $23,750 per month; this is an annualized amount of
$285,000 per year. We receive our pay on the last day of each month. You will
receive a pro rated paycheck dependent upon your start date. As an executive of
the company, your salary will be reviewed on an annual basis by our Compensation
Committee and modified based upon performance. Typically we review officer's
compensation at the December board meeting. In addition to the starting base
salary, you will receive a $15,000 signing bonus payable April 30.

Your assignment is incentive bonus eligible with a target incentive established
at 50% of your salary range midpoint. The target bonus is $146,802. Incentive
for 2003 will be pro rated (and guaranteed at target) based upon your start
date. Our incentive is based on achievement of key financial objectives
established by the Board. During the orientation process, we will cover the
specific metrics for 2003.

As our Senior Vice President & Chief Financial Officer you will participate in
our long-term incentive plan which has several variables which vest over a
three-year period. Effective with your start date, you will be eligible for a
restricted stock grant of 1,900 shares, stock options of 11,000 shares, and
performance cash pool valued at $40,000. The performance cash pool is linked to
total shareholder performance against peer companies. Specific details on the
program including the strike price will be covered during your first week of
employment. Attached is a document outlining the basic mechanics to the program.
Additional awards are made annually by the compensation committee at our
December meeting.

Glatfelter provides a nice selection of benefits. Attached is a summary document
but I will highlight a few items:

-    Your personal vacation eligibility is established at five (5) weeks.

-    Eleven holidays which includes one floating holiday.

-    A comprehensive medical and dental plan. Specific details are covered in
     the summary document.

-    A 401k plan - eligibility begins after 60 days of employment. Our plan does
     contain a matching contribution of up to a total match of 1.5% into our
     stock. Details are covered in a separate brochure.

-    Pension benefits. As a senior executive, we will provide a combined
     qualified and nonqualified pension benefit. You will be eligible for our
     Supplemental Executive Retirement Plan.

-    There are a variety of additional benefits outlined in the attached
     document.

Questions on the benefits information should be directed to Pat Kessler,
Compensation & Benefits Analyst at 717-225-2701.
<PAGE>
Attached is a document outlining relocation support to the York area. As
discussed during the interview process, relocation for this assignment is
critical. Our program is designed to assist with this process. Included in our
relocation program is two months of salary to address expenses associated with
your relocation.

As an officer of the company, you will be provided a change in control
agreement, which will be reviewed during the orientation period.

There is a formality to verify your education credentials; this process will
require your written authorization on the enclosed form. Additionally, we
require the successful completion of a pre employment drug screening process.
You may use your personal physician for this process. Arrangements for this
process can be made through Mikki Wheeler in the Human Resources department.

You will be required to sign a confidentiality agreement. A copy is attached for
your review. It is a standard agreement but I do encourage you to read it
carefully and direct questions to my attention.

You will have the use of a laptop and cell phone for your assignment. Official
company hours are 8:00 a.m. to 5:00 p.m. Monday through Friday. Given your
assignment, we do anticipate that your work schedule will require modification
due to travel requirements and business demands. Maureen Brenner will coordinate
your office support requirements. Currently our business dress code is business
casual.

We would like your decision on this offer by close of business April 4. You may
indicate acceptance of this offer by your signature and date below. Our
facsimile line is 717-812-0251. We will begin the scheduling of the orientation
process immediately upon acceptance.

The entire team is excited to have you join the organization. I believe you will
find your assignment challenging, have the opportunity to learn new skills, and
help our company reach its goals.

Congratulations on your new assignment. You may reach my office at 717-225-2747
or home number (717-792-6285) to address any questions regarding this offer.

Sincerely,

William T. Yanavitch
Vice President Human Resources
Glatfelter

Cc:   Mr. George Glatfelter
      Ms. Pat Kessler
      Mrs. Mikki Wheeler
      Personnel file                         Accepted:
                                                      -----------------------
                                                       Mr. John van Roden

                                             Date:
                                                  ---------------------------

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