Document:

Exhibit 10.10

 

2nd AMENDMENT TO

LOAN AND SECURITY AGREEMENT

 

This 2nd AMENDMENT TO LOAN

AND SECURITY AGREEMENT (“Amendment”) is dated as of February 5, 2002 and is

entered into by and between BancTec, Inc. (“Borrower”), Heller Financial, Inc.,

in its capacity as Agent for the Lenders party to the Loan and Security

Agreement described below (“Agent”), and the Lenders which are signatories

hereto.

 

 

WHEREAS, Agent, Lenders and

Borrower are parties to a certain Loan and Security Agreement dated May 25,

2001 (as such agreement has from time to time been amended, supplemented or

otherwise modified, the “Agreement”); and

 

WHEREAS, the parties desire

to amend the Agreement as hereinafter set forth.

 

NOW THEREFORE, in

consideration of the mutual conditions and agreements set forth in the

Agreement and this Amendment, and other good and valuable consideration, the

receipt and suffiency of which are hereby acknowledged, the parties hereto

hereby agree as follows:

 

1.     Definitions. 

Capitalized terms used in this Amendment, unless otherwise defined

herein, shall have the meaning ascribed to such terms in the Agreement.

 

2.     Amendments. 

Subject to the conditions set forth below, the Agreement is amended as

follows:

 

Subsection 11.1 is amended

by deleting the definition of  “Agent’s

Account” in its entirety and inserting the following in lieu thereof:

 

“Agent’s Account” means that

certain account of Agent, account number 50-263-200 in the name of Agent at

Bankers Trust Company in New York, New York ABA No. 021001033, for the benefit

of BancTec, Inc. or such other account as may be specified in writing by Agent

as the “Agent’s Account”.

 

3.     Ratification.  The

terms and provisions set forth in this Amendment shall modify and supersede all

inconsistent terms and provisions of the Agreement and shall not be deemed to

be a consent to the modification or wavier of any other term or condition of

the Agreement. Except as expressly modified and superseded by this Amendment,

the terms and provisions of the Agreement are ratified and confirmed and shall

continue in full force and effect.

 

1

 

IN WITNESS WHEREOF, the parties hereto have

caused this Amendment to be duly executed under seal and delivered by their

respective duly authorized officers on the date first written above.

 

 

 

 

	

  BancTec, Inc.

  
	

   

  	

   

  
	

  By:

  	

   /s/Brian Stone

  
	

  Title:

  	

  Brian Stone, Chief

  Financial Officer

  
	

   

  	

   

  
	

  HELLER FINANCIAL, INC.,

  as Agent and Lender

  
	

   

  	

   

  
	

  By:

  	

  /s/ Linda Tuttle

  
	

  Title:

  	

  Linda Tuttle, Sr. Vice

  President

  

 

2Exhibit 10.11

 

THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT

THIS THIRD AMENDMENT TO LOAN AND SECURITY AGREEMENT (hereinafter, this “Third Amendment”)

is executed this 30th day of July, 2002, by and among BANCTEC, INC., a Delaware

corporation, (“Borrower”), the financial institution(s) listed on the

signature pages hereof, and their respective successors and Eligible Assignees

(each individually as “Lender” and collectively “Lenders”) and

HELLER FINANCIAL, INC., a Delaware corporation, in its capacity as Agent for

the Lenders (“Agent”), to be effective as of the  date hereinafter specified.

RECITALS

WHEREAS, Borrower, Agent and Lenders are parties to that certain Loan and

Security Agreement, dated as of May 30, 2001, as thereafter amended by

Borrower, Lenders and Agent on November 8, 2001, and February 5, 2002 (as so

amended, the “Loan Agreement”); and

WHEREAS, Borrower, Agent and Lenders desire to amend the Loan Agreement in the

manner, and subject to the terms and conditions, provided below.

NOW, THEREFORE, in consideration of the premises herein contained and

other good and valuable consideration, the receipt and sufficiency of which are

hereby acknowledged, the parties, intending to be legally bound, agree as

follows:

ARTICLE I.

Definitions

1.01.       Capitalized terms used in this Third

Amendment, to the extent not otherwise defined herein, shall have the same

meaning as in the Loan Agreement, as amended hereby.

ARTICLE II.

Amendments to Loan Agreement; Other Agreements

2.01.       Amendment

to Paragraph B of Financial Covenants Rider to the Loan Agreement. 

Effective as of March 31, 2002, Paragraph B of the

Financial Covenants Rider to the Loan Agreement is amended and restated to read

in its entirety as follows:

“B.          Fixed Charge Coverage Ratio.  Borrower shall not permit its Fixed Charge

Coverage Ratio for the time period ending on the last day of each month set

forth below to be less than the ratio set forth below:

	

  Time Period

  	

   

  	

  Ratio

  
	

  (i)

  	

  Six month period ending

  on September 30, 2001

  	

   

  	

  (i)

  	

  1.10 to 1.00

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  (ii)

  	

  Nine month period

  ending on December 31, 2001

  	

   

  	

  (ii)

  	

  1.10 to 100

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  (iii)

  	

  Twelve month period

  ending respectively on March 31, 2002, June 30, 2002, and

  September 30, 2002

  	

   

  	

  (iii)

  	

  1.00 to 1.00

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  (iv)

  	

  Twelve month period

  ending respectively on each thereafter occurring December 31,

  March 31, June 30, and September 30

  	

   

  	

  (iv)

  	

  1.25 to 1.00”

  

 

 

1

 

2.02.       Amendment

to Paragraph C of Financial Covenants Rider to Loan Agreement. 

Effective as of the date hereof, Paragraph C of the

Financial Covenants Rider to the Loan Agreement is amended and restated to read

in its entirety as follows:

“C.          Daily Availability.  Borrower shall not permit at the end of any

day its Availability to be less than $4,000,000.”

2.03.       Amendment

Fee.  In consideration for the agreements set

forth herein, Borrower agrees to pay Agent, for Agent’s benefit and for the

benefit of Lenders, an amendment fee of $75,000, which fee shall be

(i) deemed fully earned on the date hereof, (ii) non-refundable, and

(iii) be due and payable in full on the date hereof.

ARTICLE III.

Conditions Precedent

3.01.       Conditions

to Effectiveness.  Notwithstanding anything herein to the

contrary, the effectiveness of this Third Amendment is subject to the

satisfaction of the following conditions precedent, unless specifically waived

in writing by Agent, and this Third Amendment shall become effective upon the

satisfaction (or waiver) of the last of the following conditions precedent:

(a)           Agent

shall have received, in form and substance satisfactory to Agent and duly

executed by Borrower, (i) this Third Amendment and (ii) such

additional documents, instruments and information as Agent or its legal

counsel, Patton Boggs LLP, may reasonably request;

(b)           All

corporate proceedings taken in connection with the transactions contemplated by

this Third Amendment and the agreements described in clause (a)

above and all documents, instruments and other legal matters incident thereto

shall be reasonably satisfactory to Agent and its legal counsel, Patton Boggs

LLP;

(c)           Agent

shall have received, whether in cash or in immediately available funds, payment

of the amendment fee provided for in Section 2.03 of this Third

Amendment; and

(d)           Agent

shall have received the annual financial statements described in Paragraph C

of the Reporting Rider to the Loan Agreement for the 2001 Fiscal Year.

 

 

2

 

ARTICLE IV.

Limited Waiver

4.01.       Upon the effectiveness of this Third

Amendment, as determined under Article III of this Third Amendment,

Agent and Lenders waive any Default and any Event of Default existing from the

failure by Borrower to comply with the requirement of Paragraph C

of the Reporting Rider to the Loan Agreement that Borrower deliver to Agent and

Lenders within 105 days after the end of the 2001 Fiscal Year the financial

statements described in such Paragraph C.  There are no other waivers granted by Agent and Lenders relating

to the Loan Agreement, except the waiver specifically set forth above.  The above waiver is effective only in the

specific instance and for the purpose for which given.  Except as otherwise set forth in this Section 4.01,

nothing contained herein shall be construed as a waiver by Agent or any Lender

of any covenant or provision of the Loan Agreement, the other Loan Documents,

this Third Amendment, or of any other contract or instrument between Borrower,

Agent and/or any Lender, and Agent’s or any Lender’s failure at any time or

times hereafter to require strict performance by Borrower of any provision

thereof shall not waive, affect or diminish any right of Agent and/or any

Lender to thereafter demand strict compliance therewith.  Agent and Lenders hereby reserve all rights

granted under the Loan Agreement, the other Loan Documents, this Third

Amendment and any other contract or instrument between Borrower, Agent and/or

any Lender.

ARTICLE V.

Ratifications, Representations and Warranties

5.01.       Ratifications. 

The terms and provisions set forth in this Third Amendment shall modify

and supersede all inconsistent terms and provisions set forth in the Loan

Agreement and the other Loan Documents, and except as expressly modified and

superseded by this Third Amendment, the terms and provisions of the Loan

Agreement and the other Loan Documents are ratified and confirmed and shall

continue in full force and effect. 

Borrower, Agent and Lenders agree that the Loan Agreement and the other

Loan Documents, as amended hereby, shall continue to be legal, valid, binding

and enforceable in accordance with their respective terms.

5.02.       Representations and Warranties. 

Borrower hereby represents and warrants to Agent and Lenders that

(a) the execution, delivery and performance of this Third Amendment and

any and all other Loan Documents executed and/or delivered in connection

herewith have been authorized by all requisite corporate action on the part of

Borrower and will not violate the Certificate of Incorporation or Bylaws of

Borrower; (b) the representations and warranties contained in the Loan

Agreement, as amended hereby, and any other Loan Document are true and correct

on and as of the date hereof and on and as of the date of execution hereof as

though made on and as of each such date; (c) no Event of Default or

Default under the Loan Agreement has occurred and is continuing, unless such

Event of Default or Default has been, or by the terms of this Third Amendment

is, specifically waived in writing by Lenders; and (d) Borrower is in full

compliance with all covenants and agreements contained in the Loan Agreement

and the other Loan Documents, as amended hereby.

 

 

3

 

ARTICLE VI.

Miscellaneous Provisions

6.01.       Survival

of Representations and Warranties.  All

representations and warranties made in the Loan Agreement or any other Loan

Document, including, without limitation, any document furnished in connection

with this Third Amendment, shall survive the execution and delivery of this

Third Amendment and the other Loan Documents, and no investigation by Agent or

any Lender nor any closing shall affect the representations and warranties or

the right of Agent or any Lender to rely upon them.

6.02.       Reference

to Loan Agreement.  Each of the Loan Documents, including the

Loan Agreement and any and all other agreements, documents or instruments now

or hereafter executed and delivered pursuant to the terms hereof or pursuant to

the terms of the Loan Agreement, as amended hereby, are hereby amended so that

any reference in such Loan Documents to the Loan Agreement shall mean a

reference to the Loan Agreement, as amended hereby.

6.03.       Expenses

of Agent.  As provided in the Loan Agreement, Borrower

agrees to promptly pay all fees, costs and expenses incurred by Agent

(including attorneys’ fees and expenses, the allocated cash of Agent’s internal

legal staff and fees of environmental consultants, accountants and other

professionals retained by Agent) incurred in connection with the review,

negotiation, preparation, documentation and execution of this Third Amendment.

6.04.       Severability. 

Any provision of this Third Amendment held by a court of competent

jurisdiction to be invalid or unenforceable shall not impair or invalidate the

remainder of this Third Amendment and the effect thereof shall be confined to the

provision so held to be invalid or unenforceable.

6.05.       Successors

and Assigns.  This Third Amendment is binding upon and

shall inure to the benefit of Agent and Lenders and Borrower and their

respective successors and assigns, except Borrower may not assign or transfer

any of its rights or obligations hereunder without the prior written consent of

Agent and Lenders.

6.06.       Counterparts. 

This Third Amendment may be executed in one or more counterparts, each

of which when so executed shall be deemed to be an original, but all of which

when taken together shall constitute one and the same instrument.

6.07.       Effect

of Waiver.  No consent or waiver, express or implied, by

Agent or any Lender to or for any breach of or deviation from any covenant or

condition by Borrower shall be deemed a consent to or waiver of any other

breach of the same or any other covenant, condition or duty.

6.08.       Headings. 

The headings, captions, and arrangements used in this Third Amendment

are for convenience only and shall not affect the interpretation of this Third

Amendment.

6.09.       Applicable Law.  THIS THIRD AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED

PURSUANT HERETO SHALL BE DEEMED TO HAVE 

 

 

4

 

BEEN MADE AND TO BE PERFORMABLE IN

AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE

OF ILLINOIS.

6.10.       Final

Agreement.  THE LOAN DOCUMENTS, AS

AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO

THE SUBJECT MATTER HEREOF ON THE DATE THIS THIRD AMENDMENT IS EXECUTED.  THE LOAN DOCUMENTS, AS AMENDED HEREBY, MAY

NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL

AGREEMENTS OF THE PARTIES.  THERE ARE NO

UNWRITTEN AGREEMENTS BETWEEN THE PARTIES. 

NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY

PROVISION OF THIS THIRD AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT

SIGNED BY BORROWER, LENDERS AND AGENT.

 

[The

Remainder of this Page Intentionally Left Blank]

 

 

5

 

IN WITNESS WHEREOF, this

Third Amendment to Loan and Security Agreement has been duly executed as of the

date first written above.

	

   

  	

   

  	

   

  	

  BANCTEC, INC.,

  
	

   

  	

   

  	

   

  	

  as Borrower

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

  By:

  	

  /s/ Brian R.

  Stone

  
	

   

  	

   

  	

   

  	

  Name:

  	

  Brian R. Stone

  
	

   

  	

   

  	

   

  	

  Title:

  	

  Chief Financial

  Officer

  
	

  HELLER FINANCIAL, INC.,

  	

   

  	

   

  	

   

  
	

  as Agent and as a Lender

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  By:

  	

  /s/ Linda Tuttle

  	

   

  	

   

  	

   

  
	

  Name:

  	

  Linda Tuttle

  	

   

  	

   

  	

   

  
	

  Title:

  	

  Senior Vice President

  	

   

  	

   

  	

   

  

 

 

6

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