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FIRST AMENDMENT TO REVOLVING CREDIT LOAN AGREEMENT
THIS FIRST AMENDMENT TO REVOLVING CREDIT LOAN AGREEMENT (this “Amendment”) is entered into as of August 14, 2018, by and between CUMBERLAND PHARMACEUTICALS INC., a Tennessee corporation (the “Borrower”), and PINNACLE BANK, a Tennessee banking corporation (the “Lender”).
RECITALS:
A.    The Borrower and the Lender entered into that certain Revolving Credit Loan Agreement (the “Loan Agreement”) dated as of July 31, 2017. Capitalized terms not otherwise defined therein have the same meaning as set forth in the Loan Agreement.
B. The Borrower and the Lender desire to amend the Loan Agreement as provided herein.
NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree as follows:
1. Section 6.7 of the Loan Agreement is hereby amended and restated as follows: 
6.7 Funded Debt Ratio and Tangible Capital Ratio. Permit both (i) the Funded Debt Ratio of the Borrower as calculated for the Borrower and its Subsidiaries at the end of each fiscal quarter on a rolling four quarter basis to exceed 2.50 to 1.00, and (ii) the Funded Debt to Tangible Capital Ratio of the Borrower as calculated for the Borrower and its Subsidiaries to exceed forty percent (40%).  For clarification, if the Borrower maintains compliance with either of the above required calculations, then the Borrower shall be in compliance with this Section 6.7 for the applicable period.
2. The following new definitions are hereby added to Section 9.1 of the Loan Agreement: 
“Funded Debt to Tangible Capital Ratio” means the ratio, expressed as a percentage, of Funded Debt divided by Tangible Capital. 
“Tangible Capital” means the amount equal to total shareholders’ equity, plus Funded Debt, less the value of intangible assets, all of the foregoing to be determined in accordance with the financial statements and reports provided to Lender, which are to be prepared in accordance with GAAP. 
3. The Loan Agreement is not amended in any other respect.
4. The Borrower reaffirms the terms and provisions of the Loan Agreement, along with the other Loan Documents, and the Borrower agrees that such terms and provisions are valid and binding, enforceable in accordance with its terms and provisions, subject to no defense, counterclaim, or objection.
[signatures commence on following page]

ENTERED INTO as of the date first written above.
						
	BORROWER: 
 
CUMBERLAND PHARMACEUTICALS INC. 
 

	
	By:
	/s/ A.J. Kazimi 
		A.J. Kazimi 
		Chairman and Chief Executive Officer 

 

						
	LENDER: 
 
PINNACLE BANK 
 

	
	By:
	/s/ Tim Bewley 
		Tim Bewley, 
		Senior Vice President 

[Signature Page to First Amendment to Revolving Credit Loan Agreement]ex_120998.htm

Exhibit 10.1

  

 

EQUITY SETTLEMENT AGREEMENT

 

This Equity Settlement Agreement (“Agreement”) is made and entered into on June 5, 2018, between InfuSystem Holdings, Inc. (“Company”) and Janet Skonieczny (“Option Holder”), collectively, “the Parties.”

 

WHEREAS, Option Holder and Company are parties to one or more equity incentive agreements (the “Equity Agreement(s)”); and

 

WHEREAS, Option Holder and Company now desire to terminate the Equity Agreement(s) under the terms provided herein;

 

NOW THEREFORE, in consideration of the mutual promises, agreements, and releases contained in this Agreement, the Parties agree as follows:

 

	 	
			1.

				
			Vesting 

			

			Option Holder’s last day of vesting with respect to the Equity Agreement(s) Company was April 27, 2018 (“Termination Date”).

			

 

	 	
			2.

				
			Cancellation and Payment

			

 

	 	
			a.

				
			Option Holder hereby surrenders, cancels, and foregoes all rights under the Equity Agreement(s) in consideration of the Company’s payment to Option Holder hereunder for vested stock options to purchase 42,361 shares of the Company’s common stock for a total compensation of $24,145.83 (the “Settlement Payment”). All other non-vested awards are cancelled.

			

 

	 	
			b.

				
			Company agrees to pay Option Holder, less applicable tax withholding, in consideration of Option Holder’s surrender all rights under the Equity Agreement(s), Settlement Payment.

			

 

	 	
			c.

				
			Option Holder agrees that all rights and interests of Option Holder under the Equity Agreement(s) shall be immediately and forever cancelled effective as of the date hereof (the "Cancellation Date").

			

 

	 	
			d.

				
			Company will pay the Settlement Payment to the Option Holder within three (3) business days after the Cancellation Date.

			

 

1

 

 

	 	
			3.

				
			Representations and Warranties 

			

 

	 	
			a.

				
			Each of the Company and the Option Holder represents and warrants to the other that the equity awards referenced in 2.a above are all equity agreements in effect relating to Option Holder’s term of service with the Company.

			

 

	 	
			b.

				
			Option Holder expressly acknowledges that the Settlement Payment is fair consideration for the surrender and cancellation of all of Option Holder’s rights under the Equity Agreement(s).

			

 

	 	
			4.

				
			Release of Claims 

			

 

Option Holder, for himself, his heirs, representatives, successors and assigns, anyone claiming by or through or under him, hereby completely releases, remises, acquits and forever discharges the Company and its shareholders, directors, agents, attorneys, officers, representatives, successors and assigns, as well as any entity affiliated with the Company now or in the future and their respective shareholders, directors, agents, attorney, officers, representatives, successors, and assigns (collectively the "Company Released Parties), from any rights, claims, counterclaims, demands, causes of action, suits, proceedings, costs, damages, expenses and liabilities of every kind, character and description, whether direct, indirect, consequential, punitive or otherwise, whether now known or unknown, existing or arising in the future, which Option Holder may now have, may have had at any time prior to the execution of this Agreement, or may acquire in the future, against the Company or the Company Released Parties, which result from, arise out of, or are in any way related to the Equity Agreement(s) or this Agreement. Option Holder hereby agrees not to assert any demand or claim or commence, institute or cause to be commenced or instituted any action, suit or other proceeding of any kind, and will not cooperate or assist in any such demand, claim, action, suit or other proceeding, against any of the Company Released Parties, based in whole or in part upon any matter purported to be released hereby.

 

	 	
			5.

				
			Miscellaneous

			

 

	 	
			a.

				
			Voluntary Nature of Agreement

			

 

Option Holder acknowledges that he has read this Agreement and understands its terms and signs the Agreement voluntarily of his own free will, without coercion or duress, and with full understanding of the binding effect of this Agreement.

 

	 	
			b.

				
			Binding Effect

			

 

This Agreement will be binding upon Option Holder and his heirs, administrators, representatives, executors, successors and assigns, and will inure to the benefit of Employer and its successors and assigns.

 

2

 

 

	 	
			c.

				
			Governing Law

			

 

The Parties agree this Agreement will be interpreted and enforced in accordance with the laws of the State of Michigan.

 

	 	
			d.

				
			Severability

			

 

The Parties agree that should any provision of this Agreement be declared or determined by a court of competent jurisdiction to be invalid or otherwise unenforceable, the remaining parts, terms and provisions shall continue to be valid, legal and enforceable, and will be performed and enforced to the fullest extent permitted by law.

 

	 	
			e.

				
			Complete Agreement

			

 

The Parties agree that this Agreement contains the entire agreement between Option Holder and Company and supersedes all prior agreements or understandings between them on the subject matters of this Agreement. No change or waiver of any part of the Agreement will be valid unless in writing and signed by both Option Holder and Company.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year indicated below.

 

 

 

	Date:    6/6/18          	
			                /s/ Janet Skonieczny                    

			Janet Skonieczny

			
	 	 
	 	 
	 	 
	Date:     6/6/18     	
			InfuSystem Holdings Inc.

			 

			By:     /s/ Richard A. DiIorio                    

			 

			Name:   Richard A.DiIorio                       

			 

			Title:      President & CEO                       

			

 

3ex_120999.htm

Exhibit 10.2

  

 

EQUITY SETTLEMENT AGREEMENT

 

This Equity Settlement Agreement (“Agreement”) is made and entered into on June 5, 2018, between InfuSystem Holdings, Inc. (“Company”) and Trent Smith (“Option Holder”), collectively, “the Parties.”

 

WHEREAS, Option Holder and Company are parties to one or more equity incentive agreements (the “Equity Agreement(s)”); and

 

WHEREAS, Option Holder and Company now desire to terminate the Equity Agreement(s) under the terms provided herein;

 

NOW THEREFORE, in consideration of the mutual promises, agreements, and releases contained in this Agreement, the Parties agree as follows:

 

	 	
			1.

				
			Vesting 

			

			Option Holder’s last day of vesting with respect to the Equity Agreement(s) Company is June 15, 2018 (“Termination Date”).

			

 

	 	
			2.

				
			Cancellation and Payment

			

 

	 	
			a.

				
			Option Holder hereby surrenders, cancels, and foregoes all rights under the Equity Agreement(s) in consideration of the Company’s payment to Option Holder hereunder for vested stock options to purchase 96,250 shares of the Company’s common stock for a total compensation of $60,083.33 (the “Settlement Payment”). All other non-vested awards are cancelled.

			

 

	 	
			b.

				
			Company agrees to pay Option Holder, less applicable tax withholding, in consideration of Option Holder’s surrender all rights under the Equity Agreement(s), Settlement Payment.

			

 

	 	
			c.

				
			Option Holder agrees that all rights and interests of Option Holder under the Equity Agreement(s) shall be immediately and forever cancelled effective as of the date hereof (the "Cancellation Date").

			

 

	 	
			d.

				
			Company will pay the Settlement Payment to the Option Holder within three (3) business days after the Cancellation Date.

			

 

1

 

 

	 	
			3.

				
			Representations and Warranties 

			

 

	 	
			a.

				
			Each of the Company and the Option Holder represents and warrants to the other that the equity awards referenced in 2.a above are all equity agreements in effect relating to Option Holder’s term of service with the Company.

			

 

	 	
			b.

				
			Option Holder expressly acknowledges that the Settlement Payment is fair consideration for the surrender and cancellation of all of Option Holder’s rights under the Equity Agreement(s).

			

 

	 	
			4.

				
			Release of Claims 

			

 

Option Holder, for himself, his heirs, representatives, successors and assigns, anyone claiming by or through or under him, hereby completely releases, remises, acquits and forever discharges the Company and its shareholders, directors, agents, attorneys, officers, representatives, successors and assigns, as well as any entity affiliated with the Company now or in the future and their respective shareholders, directors, agents, attorney, officers, representatives, successors, and assigns (collectively the "Company Released Parties), from any rights, claims, counterclaims, demands, causes of action, suits, proceedings, costs, damages, expenses and liabilities of every kind, character and description, whether direct, indirect, consequential, punitive or otherwise, whether now known or unknown, existing or arising in the future, which Option Holder may now have, may have had at any time prior to the execution of this Agreement, or may acquire in the future, against the Company or the Company Released Parties, which result from, arise out of, or are in any way related to the Equity Agreement(s) or this Agreement. Option Holder hereby agrees not to assert any demand or claim or commence, institute or cause to be commenced or instituted any action, suit or other proceeding of any kind, and will not cooperate or assist in any such demand, claim, action, suit or other proceeding, against any of the Company Released Parties, based in whole or in part upon any matter purported to be released hereby.

 

	 	
			5.

				
			Miscellaneous

			

 

	 	
			a.

				
			Voluntary Nature of Agreement

			

 

Option Holder acknowledges that he has read this Agreement and understands its terms and signs the Agreement voluntarily of his own free will, without coercion or duress, and with full understanding of the binding effect of this Agreement.

 

	 	
			b.

				
			Binding Effect

			

 

This Agreement will be binding upon Option Holder and his heirs, administrators, representatives, executors, successors and assigns, and will inure to the benefit of Employer and its successors and assigns.

 

2

 

 

	 	
			c.

				
			Governing Law

			

 

The Parties agree this Agreement will be interpreted and enforced in accordance with the laws of the State of Michigan.

 

	 	
			d.

				
			Severability

			

 

The Parties agree that should any provision of this Agreement be declared or determined by a court of competent jurisdiction to be invalid or otherwise unenforceable, the remaining parts, terms and provisions shall continue to be valid, legal and enforceable, and will be performed and enforced to the fullest extent permitted by law.

 

	 	
			e.

				
			Complete Agreement

			

 

The Parties agree that this Agreement contains the entire agreement between Option Holder and Company and supersedes all prior agreements or understandings between them on the subject matters of this Agreement. No change or waiver of any part of the Agreement will be valid unless in writing and signed by both Option Holder and Company.

 

IN WITNESS WHEREOF, the Parties have executed this Agreement on the day and year indicated below.

 

 

 

	Date:            6/5/18             	        /s/ Trent N. Smith                                
	 	Trent N. Smith
	 	 
	 	 
	 	 
	Date:            6/7/18           	
			InfuSystem Holdings Inc.

			 

			By:   /s/ Gregory Schulte                              

			 

			Name: Gregory Schulte                               

			 

			Title:   EVP & CFO                                      

			

 

3

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