Document:

xcom-ex101_19.htm

Exhibit 10.1

 

Limited Waiver and 

Fifth Amendment to 

Loan Agreement

 

Borrowers:Xtera Communications, Inc. 

Azea Networks, Inc.

Neovus, Inc.

Xtera Asia Holdings, LLC

 

Effective Date:June 30, 2016

This Limited Waiver and Fifth Amendment to Loan Agreement (this “Amendment”) is entered into between Pacific Western Bank (“Lender”) and, jointly and severally, the borrowers named above (collectively referred to herein as “Borrower”).

The parties hereto agree to amend the Loan and Security Agreement between Borrower and Lender (as successor in interest by merger to Square 1 Bank), dated January 16, 2015 (as amended, restated, supplemented, or otherwise modified from time to time, the “Loan Agreement”), and Lender agrees to waive certain Events of Default thereunder, as follows, effective as of the date hereof, unless otherwise indicated below, subject to the terms and conditions set forth below.  Capitalized terms used but not defined in this Amendment shall have the meanings set forth in the Loan Agreement.

1.Limited Waiver.  Borrower acknowledges and agrees that: (i) Lender did not receive, on or before June 30, 2016, drafts of documents relating to a Financing Transaction (the “Specified Default”); and (ii) the Specified Default constitutes an Event of Default. 

Subject to the Condition Precedent, Lender hereby agrees to waive the Specified Default.  Such waiver does not constitute any of the following: (i) a waiver of Borrower’s obligation to meet the above-referenced covenant at any other date; (ii) a waiver of any other term or provision of any of the Loan Documents; or (iii) an agreement to waive in the future the above-referenced covenant or any other term or provision of any of the Loan Documents.

2.Modification of Financial Covenant.  Subject to the Condition Precedent, that portion of Section 5 of the Schedule which currently reads:

“An Event of Default shall be deemed to have occurred if: (1) of any of the events set forth above in this subsection entitled ‘Cash Infusion to Parent,’ fails to occur on or before the date specified with respect to such event; or (2) Lender has not received, on or before June 30, 

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   Pacific Western BankLimited Waiver and Fifth Amendment to Loan Agreement

 

2016, drafts of the documents relating to a  Financing Transaction, all in form and substance acceptable to Lender and consistent with the previously approved Commitment Document; or (3) the effective Consummation Deadline in any Commitment Document is or becomes a date subsequent to July 31, 2016; or (4) any Commitment Document is revoked or in any other manner deemed invalid or ineffective by any party thereto.”

 

is hereby amended to read:

“An Event of Default shall be deemed to have occurred if: (1) of any of the events set forth above in this subsection entitled ‘Cash Infusion to Parent,’ fails to occur on or before the date specified with respect to such event; or (2) the effective Consummation Deadline in any Commitment Document is or becomes a date subsequent to July 31, 2016; or (3) any Commitment Document is revoked or in any other manner deemed invalid or ineffective by any party thereto.”

 

3.Condition Precedent.  This Amendment is conditioned upon and shall only be and become effective upon Lender’s receipt of evidence satisfactory to Lender (such receipt being referred to in this Amendment as the “Condition Precedent”) of all of the following: (i) no default or Event of Default equivalent to, or in any way related to, the Specified Default has occurred under any agreement, instrument or other document between Borrower and Horizon, or, if such a default or Event of Default has occurred under any agreement, instrument or other document between Borrower and Horizon, such default or Event of Default has been waived by Horizon; and (ii) Borrower and Horizon have each agreed that until all of the Obligations have been indefeasibly paid in full, and the Loan Documents have been terminated, Borrower shall not make any payments of any Indebtedness owing to Horizon, and Horizon shall not accept any payments of any Indebtedness owing from Borrower, other than regularly schedule payments of interest only.  Until Lender has received such evidence, none of the terms or provisions of this Amendment shall be effective or enforceable by any party hereto.

4.Fee.  [Intentionally omitted.]   

5.Representations True.  Borrower represents and warrants to Lender that all representations and warranties set forth in the Loan Agreement, as amended hereby, are true and correct as if made on the date hereof.  

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   Pacific Western BankLimited Waiver and Fifth Amendment to Loan Agreement

 

6.No Waiver.  Nothing herein constitutes a waiver of any default or Event of Default under the Loan Agreement or any other Loan Documents, whether or not known to Lender, except as set forth in Section 1 above. 

7.General Release.  In consideration for Lender entering into this Amendment, Borrower hereby irrevocably releases and forever discharges Lender, and its successors, assigns, agents, shareholders, directors, officers, employees, agents, attorneys, parent corporations, subsidiary corporations, affiliated corporations, affiliates, participants, and each of them, from any and all claims, debts, liabilities, demands, obligations, costs, expenses, actions and causes of action, of every nature and description, known and unknown, which Borrower now has or at any time may hold, by reason of any matter, cause or thing occurred, done, omitted or suffered to be done prior to the date of this Amendment (collectively, the “Released Claims”). Borrower hereby irrevocably waives the benefits of any and all statutes and rules of law to the extent the same provide in substance that a general release does not extend to claims which the creditor does not know or suspect to exist in its favor at the time of executing the release.  Borrower represents and warrants that it has not assigned to any other Person any Released Claim, and agrees to indemnify Lender against any and all actions, demands, obligations, causes of action, decrees, awards, claims, liabilities, losses and costs, including but not limited to reasonable attorneys' fees of counsel of Lender’s choice and costs, which Lender may sustain or incur as a result of a breach or purported breach of the foregoing representation and warranty. 

8.General Provisions.  Borrower hereby ratifies and confirms the continuing validity, enforceability and effectiveness of the Loan Agreement and all other Loan Documents. This Amendment, the Loan Agreement, any prior written amendments to the Loan Agreement signed by Lender and Borrower, and all other written documents and agreements between Lender and Borrower, set forth in full all of the representations and agreements of the parties with respect to the subject matter hereof and supersede all prior discussions, representations, agreements and understandings between the parties with respect to the subject hereof.  Except as herein expressly amended, all of the terms and provisions of the Loan Agreement, and all other documents and agreements between Lender and Borrower shall continue in full force and effect and the same are hereby ratified and confirmed.  Without limiting the generality of the foregoing, the provisions of all subsections of Section 9 of the Loan Agreement (titled “General Provisions”), including without limitation all provisions relating to governing law, venue, jurisdiction, dispute resolution, and the waiver of the right to a jury trial, shall apply equally to this Amendment, and the same are incorporated herein by this reference.

[Signatures on Following Page]

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   Pacific Western BankLimited Waiver and Fifth Amendment to Loan Agreement

 

		
		
	
Borrower:

Xtera Communications, Inc. 

By: /s/ Jon R. Hopper

Title: Chief Executive Officer

 
	
Borrower:

Azea Networks, Inc. 

By: /s/ Jon R. Hopper

Title: Chief Executive Officer

 

	
Borrower:

Neovus, Inc. 

By: /s/ Jon R. Hopper

Title: Chief Executive Officer

 
	
Borrower:

Xtera Asia Holdings, LLC 

By: /s/ Jon R. Hopper

Title: Chief Executive Officer

 

	
Lender:

Pacific Western Bank

By: /s/ Jim Duncan

Title: SVP

 
	
 

 

[Signature Page – Limited Waiver and Fifth Amendment to Loan Agreement]

 

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Exhibit 10.2

LIMITED WAIVER AND NINTH AMENDMENT 
OF VENTURE LOAN AND SECURITY AGREEMENT

 

 

This NINTH AMENDMENT OF VENTURE LOAN AND SECURITY AGREEMENT (this “Agreement”), effective and dated as of June 30, 2016, is entered into by and between Xtera Communications, Inc., a Delaware corporation (“Xtera” or “Borrower”) and Horizon Technology Finance Corporation, a Delaware corporation (“Lender”).

RECITALS

A. Xtera and Lender are parties to a certain Venture Loan and Security Agreement dated as of May 10, 2011, as amended from time to time (as amended, the “Loan Agreement”). 

B.Xtera has now requested that Lender amend the Loan Agreement as set forth below and waive certain Events of Default thereunder.

C.Lender is willing to grant such request, but only to the extent, and in accordance with the terms, and subject to the conditions, set forth herein.

AGREEMENT

NOW, THEREFORE, in consideration of the above recitals and for other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Borrower and Lender hereby agree as follows:

1.Definitions; Interpretation. Unless otherwise defined herein, all capitalized terms used herein and defined in the Loan Agreement shall have the respective meanings given to those terms in the Loan Agreement.  Other rules of construction set forth in the Loan Agreement, to the extent not inconsistent with this Agreement, apply to this Agreement and are hereby incorporated by reference.

2.Limited Waiver. Borrower acknowledges and agrees that (i) Lender did not receive, on or before June 30, 2016, drafts of documents relating to a Refinancing Transaction (the “Specified Default”); and (ii) the Specified Default constitutes an Event of Default. Subject to the Condition Precedent, Lender hereby agrees to waive the Specified Default. Such waiver does not constitute any of the following: (i) a waiver of Borrower’s obligation to meet the above-referenced covenant at any other date; (ii) a waiver of any other term or provision of any of the Loan Documents; or (iii) an agreement to waive in the future the above-referenced covenant or any other term or provision of any of the Loan Documents.

3.Amendment to Loan Agreement. Borrower and Lender hereby agree that Section 6.13(b) of the Loan Agreement is hereby deleted in its entirety and replaced with the following:

“Intentionally omitted.”

4.Conditions to Effectiveness. Lender’s consent and agreement contained herein is expressly conditioned on Borrower’s executing and delivering to Lender an executed copy of this Agreement;

5.Effect of Agreement. On and after the date hereof, each reference to the Loan Agreement in the Loan Agreement or in any other document shall mean the Loan Agreement as amended by this Agreement. Except as expressly provided hereunder, the execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power, or remedy of Lender, nor constitute a waiver of any provision of the Loan Agreement.  Except to the limited extent expressly provided herein, nothing contained herein shall, or shall be construed to (nor shall the Borrower ever argue to the contrary) (i) modify the Loan Agreement or any other Loan Document (ii) modify, waive, impair, or affect any of the covenants, agreements, terms, and conditions thereof, or (iii) waive the due keeping, observance and/or performance thereof, each of which is hereby ratified and confirmed by the Borrower. Except as expressly amended herein, the Loan Agreement remains in full force and effect. 

6.Headings. Headings in this Agreement are for convenience of reference only and are not part of the substance hereof. 

7.Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Connecticut without reference to conflicts of law rules. 

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8.Counterparts. This Agreement may be executed in any number of counterparts, including by electronic or facsimile transmission, each of which when so delivered shall be deemed an original, but all such counterparts taken together shall constitute but one and the same instrument.  

9.Integration. This Agreement and the Loan Documents constitute and contain the entire agreement of Borrower and Lender with respect to their respective subject matters, and supersede any and all prior agreements, correspondence and communications. 

[Remainder of page intentionally blank. Signature page follows.]

 

 

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IN WITNESS WHEREOF, Borrower and Lender have caused this Agreement to be executed as of the day and year first above written.

 

 

				
	
 
	
 
	
BORROWER:

	
 
	
 
	
 

	
 
	
 
	
XTERA COMMUNICATIONS, INC.

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Jon R. Hopper

	
 
	
 
	
 
	
Jon R. Hopper

	
 
	
 
	
 
	
Chief Executive Officer

 

				
	
 
	
 
	
LENDER:

	
 
	
 
	
 

	
 
	
 
	
HORIZON TECHNOLOGY FINANCE CORPORATION

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Robert D. Pomeroy, Jr.

	
 
	
 
	
 
	
Robert D. Pomeroy, Jr.

	
 
	
 
	
 
	
Chief Executive Officer

 

 

 

 

 

 

 

 

 

 

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