Document:

bvx_ex105.htm

EXHIBIT 10.5

 

SECURITY AGREEMENT

THIS SECURITY AGREEMENT (the "Agreement") is made and entered into this 20th day of March, 2014, by and between Bovie Medical Corporation, a Delaware corporation, having an address of 5115 Ulmerton Road, Clearwater, Florida 33760 ("Debtor") and The Bank of Tampa, a Florida banking corporation, having an address of Post Office Box One, Tampa, Florida 33601 ("Secured Party").

W I T N E S S E T H:

WHEREAS, as provided in and pursuant to the terms of that certain Loan Agreement (as the same may be amended, modified, restated or supplemented at any time or from time to time, the “Loan Agreement”) dated on or about the date hereof between Secured Party and Debtor, Debtor is indebted to Secured Party in the principal amount of $3,592,000.00, as evidenced by Debtor’s Promissory Note (as the same may be amended, modified, restated, renewed or increased at any time or from time to time, the “Note”), in said sum payable to the order of Secured Party and dated as of the same date as this Agreement, which Note is secured, inter alia, by that certain Mortgage, Security Agreement, Financing Statement and Assignment of Rents (as the same may be amended, modified, restated, or supplemented at any time or from time to time, the “Mortgage”), dated as of the same date as this Agreement, which Mortgage constitutes a lien and encumbrance against the real property described therein, together with various other Loan Documents (as such term is defined in the Mortgage); and,

WHEREAS, in order to secure the Obligations (as herein defined), Secured Party is requiring that Debtor execute and deliver this Agreement granting a security interest in and to the collateral described herein upon the terms and conditions herein contained;

NOW, THEREFORE, for and in consideration of the foregoing recitals, the sum of $10.00, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant and agree as follows:

1. Recitals. The foregoing recitals are true and correct and are hereby incorporated by reference for all purposes as if fully set forth herein.

 

2. Definitions. For the purposes of this Agreement, the following terms shall have the following meanings:

 

"Collateral" shall mean all of the following personal property of Debtor, wherever located, and now owned or hereafter acquired by the Debtor:

 

(a) Accounts, including without limitation health-care-insurance receivables;

 

(b) Chattel Paper, to the extent that the same constitute proceeds of the Accounts;

 

(c) Documents, to the extent that the same constitute proceeds of the Accounts;

 

(d) Instruments, including without limitation Promissory Notes, to the extent that the same constitute proceeds of the Accounts;

 

(e) Letter-of Credit Rights, to the extent that the same constitute proceeds of the Accounts or to the extent that the same secure payment or performance of any Account;

 

(f) Payment Intangibles, to the extent that the same constitute proceeds of the Accounts;

 

(g) Supporting Obligations, to the extent that the same secure payment or performance of any Account;

 

  

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(h) All books and records relating to the conduct of Debtor's business or relating to any of the foregoing;

 

(i) To the extent not separately described above as original collateral, all proceeds and products of any of the foregoing.

 

“Commodity Exchange Act” shall mean the Commodity Exchange Act (7 U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

"Debtor State" shall have the meaning ascribed to said term in subparagraph 5(e) hereof.

"Debtor's Chief Executive Office State" shall have the meaning ascribed to said term in subparagraph 5(e) hereof.

"Event of Default" shall have the meaning ascribed to said term in paragraph 8 hereof.

“Excluded Swap Obligation” shall mean, with respect to any guarantor of a Swap Obligation, and including the grant of a security interest to secure the guaranty of such Swap Obligation, any Swap Obligation if, and to the extent that, such Swap Obligation is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder at the time the guaranty or grant of such security interest becomes effective with respect to such Swap Obligation. If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Swap Obligation or security interest is or becomes illegal.

"Interest Rate Protection Agreement" shall mean any agreement between Debtor and Secured Party or any affiliate of Secured Party now existing or hereafter entered into, which provides for an interest rate, currency, equity, credit or commodity swap, cap, floor or collar, spot or forward foreign exchange transaction, cross currency rate swap, currency option, any combination of, or option with respect to, any of the foregoing or any similar transactions, for the purpose of hedging Debtor's exposure to fluctuations in interest rates, exchange rates, currency, stock, portfolio or loan valuations or commodity prices (including any such or similar agreement or transaction entered into by Secured Party or any affiliate thereof in connection with any other agreement or transaction between Debtor and Secured Party or any affiliate thereof ).

"Lien Reports" shall have the meaning ascribed to said term in subparagraph 4(b)hereof.

"Obligations" shall mean (i) all of Debtor's indebtedness, liabilities, or obligations under the Loan Agreement, the Note, the Mortgage, this Agreement, and any of the other Loan Documents; (ii) any indebtedness, liability or obligation of Debtor to Secured Party under any later or future advances or loans made by Secured Party to Debtor, any and all extensions or renewals thereof in whole or in part, and any and all future additional indebtednesses, liabilities or obligations of Debtor to Secured Party whatsoever and howsoever arising and in any event, whether existing as of the date hereof or hereafter arising, whether arising under a loan, lease, credit card arrangement, line of credit, letter of credit, any Interest Rate Protection Agreement (but specifically excluding any Excluded Swap Obligation, which Excluded Swap Obligations shall not be nor deemed to be included within the definition of Obligations or otherwise secured by this Agreement in any event), or other type of financing and whether direct, indirect, absolute or contingent, as maker, endorser, guarantor, surety or otherwise, and whether evidenced by, arising out of, or relating to, a promissory note, bill of exchange, check, draft, bond, letter of credit, guaranty agreement, bankers' acceptance, foreign exchange contract, commitment fee, service charge or otherwise; (iii) the repayment of (a) any amounts that Secured Party may advance or spend for the maintenance or preservation of the Collateral and (b) any other expenditures the Secured Party may make under the provisions of this Agreement or for the benefit of the Debtor; (iv) all amounts owed under any modifications, renewals or extensions of any of the foregoing obligations; (v) all other amounts now or in the future owed by the Debtor to Secured Party; and (vi) any of the foregoing that arises after the filing of a petition by or against Debtor under the Federal Bankruptcy Code, even if the obligations cease to accrue as a result of the automatic stay under § 362 of the Federal Bankruptcy Code or otherwise.

 

  

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"Permitted Liens" shall have the meaning ascribed to said term in subparagraph 5(d) hereof.

"Person" shall mean any individual, corporation, limited liability company, partnership, joint venture, association, joint stock company, trust, unincorporated organization, government or any agency or political subdivision thereof, or any other form of entity.

“Swap Obligation” shall mean any obligation under or in connection with an Interest Rate Protection Agreement that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act, as amended from time to time.

 

"UCC" shall mean the Uniform Commercial Code as in effect in the state designated in paragraph 19hereof, as the state whose laws shall govern this Agreement, or in any other state whose laws are held to govern this Agreement or any portion hereof.

 

Any term not defined in this Agreement, but which is defined under the UCC, shall have the meaning given to said term in the UCC.

 

3. Grant of Security Interest. The Debtor does hereby grant to the Secured Party a continuing security interest and lien of first priority in the Collateral for the purposes of securing the payment and performance in full of all Obligations.

 

4. Perfection of Security Interests.

 

(a) Debtor hereby authorizes Secured Party to file in each and every jurisdiction as Secured Party shall determine one or more financing statements (or a photocopy of this Agreement in substitution for a financing statement), continuation statements or amendments thereto as Secured Party shall at any time or from time to time determine, describing the Collateral as all assets of Debtor or words of similar effect, and otherwise containing such information as is required or is permissible to be contained in a financing statement filed pursuant to Article 9 of the UCC.

 

(b) Secured Party shall receive, at Debtor's sole cost and expense, and prior to advancing any funds on the Obligations, an official report of each Filing Office of the Debtor State (collectively, the "Lien Reports"), indicating that Secured Party's interest is prior to all other security interests or other interests reflected in the Lien Reports, other than the Permitted Liens.

 

(c) Debtor shall have possession of the Collateral, except to the extent otherwise expressly provided in this Agreement or where Secured Party elects, in its sole and absolute discretion, to perfect its security interest by possession in addition to or instead of filing of a financing statement. To the extent that any Collateral is in the possession of a third party, Debtor agrees that it shall join with Secured Party, and take such other steps as Secured Party shall require, in notifying, but also hereby authorizes Secured Party to directly notify without Debtor's joinder, the third party of Secured Party's security interest and obtaining an acknowledgment in such form as Secured Party shall require from the third party that it is holding the Collateral or such portion as is held by the third party for the benefit of the Secured Party and subject to the security interest granted herein and the operation of this Agreement.

 

  

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(d) Debtor agrees that it shall join with Secured Party, and take such other steps as Secured Party shall require, in obtaining "control" of any Letter-of-Credit Rights or Electronic Chattel Paper, with any agreements establishing control to be in form and substance satisfactory to Secured Party.

 

(e) Debtor will not create any Chattel Paper without placing a legend on the Chattel Paper in such form as is acceptable to Secured Party indicating that Secured Party has a security interest in the Chattel Paper.

 

5. Debtor's Representations and Warranties. The Debtor represents and warrants to Secured Party, the following:

 

(a) The Debtor has full right, power and authority to execute and deliver this Agreement and to grant the security interest in the Collateral as provided herein.

 

(b) The execution, delivery and performance of this Agreement has been duly authorized by all necessary action appropriate to Debtor's type of entity.

 

(c) This Agreement has been duly executed and delivered by the Debtor and constitutes the legal, valid and binding obligation of the Debtor enforceable against the Debtor in accordance with its terms, except as may be limited by bankruptcy, reorganization, insolvency, moratorium, or other similar laws from time to time in effect affecting creditor's rights generally and by principles governing the availability of equitable remedies, and the grant of the security interest in the Collateral existing on the date hereof constitutes, and, as to subsequently acquired Collateral, will constitute, a valid and perfected first and prior security interest, superior to the rights of any other Person, in and to the Collateral, except as otherwise expressly provided herein.

 

(d) Debtor owns, and will own, or has rights in or the power to transfer, the Collateral free from any setoff, claim, restriction, lien, security interest or encumbrance, except liens for taxes not yet due, the security interest granted pursuant to the terms hereof, and any liens set forth on Schedule 5(d)attached hereto (the "Permitted Liens").

 

(e) Debtor's (i) chief executive office is located in the state identified in Schedule 5(e) ("Debtor's Chief Executive Office State"), (ii) state of incorporation is the state identified in Schedule 5(e) ("Debtor State"), and (iii) exact legal name is as set forth in the preamble to this Agreement.

 

(f) None of the Collateral constitutes, or is proceeds of, "farm products" as defined in the UCC.

 

(g) Except as disclosed on Schedule 5(g) attached hereto, none of the account debtors in respect of any Accounts, Chattel Paper or Payment Intangibles and none of the obligors in respect of any Instruments included in the Collateral is or shall be a governmental entity subject to the Federal Assignment of Claims Act.

 

(h) To the best of Debtor's knowledge, none of the account debtors under the Accounts, Chattel Paper or Payment Intangibles and none of the obligors under the Instruments have any right of setoff, counterclaim, or adjustment, or defense in connection with or relating to any such Account, Chattel Paper, Payment Intangible, or Instrument, and the enforcement thereof.

 

(i) Each Account represents an amount owed to the Debtor as a result of a right to payment of a monetary obligation, whether or not earned by performance, for property that has been or is to be sold, leased, licensed, assigned, or otherwise disposed of; for services rendered or to be rendered; for a policy of insurance issued or to be issued; for a secondary obligation incurred or to be incurred; for energy provided or to be provided; for the use or hire of a vessel under a charter or other contract; arising out of the use of a credit or charge card or information contained on or for use with the card; or as winnings in a lottery or other game of chance operated or sponsored by a state, governmental unit of a state, or Person licensed or authorized to operate the game by a state or governmental unit of a state.

 

  

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(j) Except as otherwise disclosed by Debtor to Secured Party in writing, Debtor has no knowledge of any fact, claim, or dispute, by any account debtor, or any third party, which may impair the validity of any Account, Chattel Paper, or Payment Intangible or by any obligor, or any third party, which may impair the validity of any Instrument or Supporting Obligation or make any part of any Account, Chattel Paper, Payment Intangible, Instrument or Supporting Obligation, uncollectible in accordance with its terms and face amount, to include, but not limited to, any dispute or claim as to price, terms, quality, quantity or delay in shipment. Should Debtor become aware of any fact, claim or dispute which may impair the validity of an Account, any Chattel Paper, any Payment Intangible, any Instrument, or any Supporting Obligation, or make any part of it uncollectible, Debtor will notify Secured Party immediately of this knowledge.

 

6. Debtor's Covenants. Debtor covenants and agrees with Secured Party as follows:

 

(a) Debtor will preserve its existence as the type of Person set forth in the preamble to this Agreement and not, in one or more transactions or in a series of related transactions, merge into or consolidate with any other Person, or sell all or substantially all of its assets.

 

(b) Debtor will not change the state where it is located.

 

(c) Debtor will not change its name without providing Secured Party with thirty (30) days' prior written notice.

 

(d) Except for liens for taxes not yet due, the security interest granted pursuant to the terms hereof, and the Permitted Liens, Debtor shall keep the Collateral free from, and shall not otherwise pledge, mortgage, encumber or create, or suffer to exist, a security interest in the Collateral in favor of any Person other than Secured Party. Debtor shall defend title to the Collateral against all claims and demands of all persons at any time claiming the same or any interests therein adverse to Secured Party, except for the Permitted Liens.

 

(e) The Collateral shall remain personal property at all times.

 

(f) Debtor shall keep and maintain, at Debtor's sole cost and expense, complete books and records with respect to all of the Collateral. All of Debtor's books, accounts, correspondence, papers, and records pertaining to the Collateral are and shall be prepared and maintained in an accurate and timely fashion, and are and shall remain located at Debtor's Chief Executive Office.

 

(g) At the request of Secured Party, at any time and from time to time, at Debtor's sole expense, Debtor shall execute and deliver or cause to be executed and delivered to Secured Party, such agreements, documents and instruments, including releases, terminations, waivers, consents and subordination agreements from mortgagees or other holders of security interests or liens, landlords, bailees, securities intermediaries, parties controlling any portion of the Collateral, or other third parties, and do or cause to be done such further acts as Secured Party, in its reasonable discretion, deems necessary to create, preserve, perfect or validate the security interest of Secured Party or the priority thereof in the Collateral and otherwise to effectuate the provisions and purposes of this Agreement.

 

(h) The Secured Party may examine and inspect the books and records relating to or constituting a portion of the Collateral at any reasonable time, wherever located.

 

(i) The Debtor will pay promptly when due all taxes and assessments upon the Collateral or upon this Agreement or other writing evidencing the Obligations, or any of them.

 

  

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(j) Debtor will notify Secured Party of any insolvency with respect to any account debtor under any of the Accounts, Chattel Paper or Payment Intangibles or any obligor on any Instrument as promptly as practical after the Debtor becomes aware of such insolvency. For purposes hereof, insolvency shall be deemed to have occurred when: (i) a general meeting of unsecured creditors shall be called by, or on behalf of, the account debtor or obligor; (ii) a voluntary or involuntary proceeding shall have been instituted in the United States Bankruptcy Court under any Chapter of the Federal Bankruptcy Code against the account debtor or obligor; (iii) a receiver is appointed for the whole or any part of the property of an account debtor or obligor; (iv) an account debtor or obligor, or a third party on behalf of the account debtor or obligor, shall have made a general offer of compromise, in writing, to such Person's creditors for less than such Person's indebtedness; (v) possession shall have been taken of an account debtor's or obligors assets under an assignment, deed of trust, or chattel mortgage for the benefit of such Person's creditors; (vi) a creditors' committee shall have been formed for the sole purpose of liquidation of an account debtor or obligor or such Person's assets; (vii) a sale in bulk is made of an account debtor's or obligor's property; (viii) an account debtor's or obligor's assets shall have been sold under a writ of execution or attachment, or a writ of execution shall have been returned unsatisfied against such Person; (ix) an account debtor or obligor shall have absconded; (x) an account debtor's or obligor's assets shall have been sold under a distraint or levy by any taxing authority, or by a landlord; or (xi) any act of bankruptcy or insolvency under the laws of any other jurisdiction shall be taken by or against any account debtor or obligor.

 

(k) Debtor will at any time and from time to time upon the Secured Party's request deliver to the Secured Party any original Instruments, Chattel Paper, Payment Intangible, or Documents in the Debtor's possession relating to any of the Accounts, Chattel Paper, Instruments, Payment Intangibles, or other Collateral held or owned by the Debtor.

 

(l) Secured Party shall have the right at any time or from time to time to enforce Debtor's rights against the account debtors and obligors.

 

(m) Secured Party shall have the right at any time or from time to time, prior to and after the occurrence of an Event of Default, to require that Debtor enter into a "lockbox" or "blocked account" arrangement whereby Debtor shall notify any or all of the account debtors on the Accounts, Chattel Paper or Payment Intangibles of Debtor, or obligors on any instruments of which Debtor is obligee, all as Secured Party shall determine, to make payments directly to a post office box or address maintained by a collection agent designated by Secured Party, which collection agent may be Secured Party, all at Debtor's sole cost and expense, all pursuant to a "blocked account agreement" in form and substance as required by Secured Party, in its sole and absolute discretion.

 

(n) Debtor will not sell, lease, exchange, assign, transfer, license, convey or otherwise dispose of, or grant any other security interest or lien in, any of the Collateral.

 

(o) Debtor has the entire risk of loss of the Collateral.

 

(p) Secured Party shall have no duty to collect any income accruing on the Collateral or to preserve any rights relating to the Collateral.

 

7. Collateral Protection Expenses; Preservation of Collateral.

 

(a) In its discretion, Secured Party may discharge taxes and other encumbrances at any time levied or placed on any of the Collateral (to the extent the validity or the amount thereof is not being contested in good faith by appropriate proceedings which stay the issuance of any attachment or levy with respect to the Collateral, provided that Debtor has made adequate reserves therefor), and pay any necessary filing fees. Debtor agrees to reimburse Secured Party on demand for any and all expenditures so made. Secured Party shall have no obligation to Debtor to make any such expenditures, nor shall the making thereof relieve Debtor of any Event of Default.

 

  

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(b) Anything herein to the contrary notwithstanding, Debtor shall remain liable under each contract or agreement comprised in the Collateral to be observed or performed by Debtor thereunder. Secured Party shall not have any obligation or liability under any such contract or agreement by reason of or arising out of this Agreement or the receipt by Secured Party of any payment relating to any of the Collateral, nor shall Secured Party be obligated in any manner to perform any of the obligations of Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature or sufficiency of any payment received by Secured Party in respect of the Collateral or as to the sufficiency of any performance by any party under any such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect the payment of any amounts which may have been assigned to the Secured Party or to which the Secured Party may be entitled at any time or times.

 

8. Events Of Default. The occurrence of any events or conditions described hereinbelow shall constitute an "Event of Default" hereunder, provided that any requirement for the giving of notice or the lapse of time, or both, has been satisfied; time is of the essence herein:

 

(a) Debtor shall fail to make any payment of principal and/or interest due on the Note when due (after the running of any applicable grace period).

 

(b) Debtor shall fail to make any payments of principal and/or interest on any of the Obligations when due (after the running of any applicable grace period).

 

(c) Debtor shall make any representation or warranty in this Agreement, the Loan Agreement, the Mortgage or in any of the other Loan Documents or in any certificate or statement furnished at any time hereunder or in connection with any of the Loan Documents which proves to have been untrue or misleading in any material respect when made or furnished.

 

(d) Debtor shall default in the observance or performance of any covenant or agreement contained in this Agreement, the Loan Agreement, the Mortgage, or in any of the other Loan Documents and the same shall not be cured within any applicable curative period.

 

(e) Debtor shall default in connection with any agreement for borrowed money or other credit with any creditor other than Secured Party which entitles said creditor to accelerate the maturity thereof.

 

(f) Debtor shall file a voluntary petition in bankruptcy or a voluntary petition or answer seeking liquidation, reorganization, arrangement, readjustment of its debts, or for any other relief under the Federal Bankruptcy Code, or under any other act or law pertaining to insolvency or debtor relief, whether state, federal or foreign, now or hereafter existing; Debtor shall enter into any agreement indicating such Person's consent to, approval of, or acquiescence in, any such petition or proceeding; Debtor shall apply for or permit the appointment by consent or acquiescence of a receiver, custodian or trustee of Debtor or a substantial part of Debtor's property; Debtor shall make an assignment for the benefit of creditors; or Debtor shall be unable or shall fail to pay its debts generally as such debts become due; or Debtor shall admit, in writing, its inability or failure to pay its debts generally as such debts become due.

 

(g) There shall have been filed against Debtor an involuntary petition in bankruptcy or seeking liquidation, reorganization, arrangement, readjustment of its debts, or for any other relief under the Federal Bankruptcy Code, or under any other act or law pertaining to insolvency or debtor relief, whether state, Federal or foreign, now or hereafter existing; Debtor shall suffer or permit the involuntary appointment of a receiver, custodian or trustee of Debtorfor all or a substantial part of Debtor’s property; Debtor shall suffer or permit the issuance of a warrant of attachment, execution or similar process against all or any substantial part of the property of Debtor; and in the case of an involuntary proceeding only, such involuntary proceeding is not dismissed within ninety (90) days from the date of the filing thereof.

 

(h) Debtor shall have concealed, removed, or permitted to be concealed or removed, any of Debtor's assets, with intent to hinder, delay or defraud its creditors or any of them, or made or suffered a transfer of any of Debtor's assets which may be fraudulent under any bankruptcy, fraudulent conveyance or similar law, or shall have suffered or permitted, while insolvent, any creditor to obtain a lien upon any of Debtor's assets through legal proceedings or otherwise.

 

  

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(i) The entry of a judgment against Debtor which Secured Party deems to be of a material nature, in Secured Party’s sole discretion, which is not released or satisfied within thirty (30) days of the entry thereof.

 

(j) Debtor shall transfer or otherwise dispose of any of the Collateral, except to the extent expressly permitted herein.

 

(k) Any attachment, execution or levy shall occur on or with respect to any of the Collateral.

 

(l) Debtor shall fail to comply with, or become subject to any administrative or judicial proceeding under any federal, state or local (i) law, ordinance, rule or regulation relating to the environment or the generation, use, transport or storage of hazardous waste, (ii) asset forfeiture or similar law which can result in the forfeiture of property, or (iii) other law, noncompliance with which shall have any significant effect on all or any portion of the Collateral.

 

(m) Secured Party shall receive at any time following the date hereof a Lien Report indicating that Secured Party's security interest is not prior to all other security interests or other interests reflected in said Lien Report, other than the Permitted Liens.

 

9. Remedies. Upon the occurrence of any Event of Default, or at any time thereafter, without prejudice to the rights of Secured Party to enforce its claims against Debtor for damages for failure by Debtor to fulfill any of its obligations hereunder, subject only to prior receipt by Secured Party of payment in full of all Obligations then outstanding and in form acceptable to Secured Party, Secured Party in addition to all rights and remedies which it may have under the Loan Agreement, the Note, the Mortgage, the other Loan Documents, at law or in equity, shall have the following rights and remedies:

 

(a) Secured Party, at its option, may declare all of the Obligations (including but not limited to the indebtedness evidenced by the Note) to be immediately due and payable, whereupon the same shall become immediately due and payable without presentment, demand, protest, notice of non-payment or any other notice required by law relative thereto, all of which are hereby expressly waived by Debtor, anything contained herein to the contrary notwithstanding. Thereafter, Secured Party, at its option, may but shall not be obligated to, accept less than the entire amount of Obligations due, if tendered, provided, however, that unless then agreed to in writing by Secured Party, no such acceptance shall or shall be deemed to constitute a waiver of any Event of Default or a reinstatement of any commitments of Secured Party hereunder.

 

(b) Secured Party may, without demand or notice, appropriate any deposit account, money or other assets of Debtor in the possession of, or under control by, Secured Party and set off against and apply the same to the Obligations.

 

(c) Secured Party shall have the rights and remedies of a secured party under the UCC in effect on the date thereof (regardless of whether the same has been enacted in the jurisdiction where the rights or remedies are asserted), including without limitation, the right to take possession of any personal property or the proceeds thereof, to sell or otherwise dispose the same, to apply the proceeds therefrom to any of the Obligations in such order as Secured Party, in its sole discretion, may elect and otherwise in accordance with the terms hereof. Secured Party shall give Debtor written notice of the time and place of any public sale of the Collateral or the time there after which any other intended disposition thereof is to be made. The requirement of sending reasonable notice shall be met if such notice is given to Debtor pursuant to the terms hereof at least ten (10) days before such disposition. Expenses of retaking, holding, insuring, preserving, protecting, preparing for sale or selling or the like with respect to the Collateral shall include, in any event, reasonable attorneys' fees and other legally recoverable collection expenses, all of which shall constitute Obligations.

 

  

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(d) Secured Party may take the Collateral or any portion thereof into its possession, by such means (without breach of the peace) and through agents or otherwise as it may elect (and, in connection therewith, demand that Debtor assemble the Collateral at a place or places and in such manner as Secured Party shall prescribe), and, without taking possession, sell, lease or otherwise dispose of the Collateral or any portion thereof in its then condition or following any commercially reasonable preparation or processing, provided, however, that Secured Party shall have no obligation to prepare or otherwise clean-up the Collateral for disposition, which disposition may be by public or private proceedings, by one or more contracts, as a unit or in parcels, at any time and place and on any terms, in accordance with the terms of the UCC.

 

(e) Secured Party shall be entitled to require Debtor to notify, any and all account debtors on the Accounts, Chattel Paper and/or Payment Intangibles of Debtor and obligors on any Instruments for which Debtor is an obligee of the security interest of Secured Party in any of the Accounts, any Chattel Paper, any Payment Intangible and/or any Instrument and that payment thereof is to be made directly to Secured Party or any agent or nominee of Secured Party, and Secured Party may itself, without notice or demand upon Debtor, so notify account debtors and obligors as herein contemplated. After the making of any request upon Debtor to so notify account debtors and obligors as herein provided, Debtor shall hold any proceeds of collection of any Accounts, Chattel Paper, Payment Intangibles and Instruments received by Debtor as trustee for Secured Party without commingling the same with other funds of Debtor and shall turn the same over to Secured Party in the identical form received, together with any necessary endorsements or assignments. Secured Party shall apply proceeds of collection of any Accounts, Chattel Paper, Payment Intangibles and Instruments received by Secured Party to the Obligations, such payments to be entered after final payment in cash or solvent credits of the items giving rise to them.

 

(f) Unless and except to the extent expressly provided for to the contrary herein, the rights of Secured Party specified herein shall be in addition to, and not in limitation of, Secured Party's rights at law or in equity, under the UCC, or under any other provision of any of the Mortgage or the other Loan Documents or under the provisions of any other document, instrument or other writing executed by Debtor or any third party in favor of Secured Party, all of which may be exercised successively or concurrently.

 

10. Further Assurances. Debtor, at its own expense, shall do, make, execute and deliver all such additional and further acts, things, deeds, assurances and instruments as Secured Party may require more completely to vest in and assure to Secured Party its rights hereunder or in any of the Collateral, including, without limitation, (i) executing, delivering and, where appropriate, filing financing statements and continuation statements under the UCC, (ii) using its best efforts to obtain governmental and other third party consents and approvals, (iii) using its best efforts to obtain waivers from mortgagees and landlords, (iv) obtaining acknowledgments of Secured Party's security interest with respect to any Collateral which is in the possession or control of third parties, or (v) obtaining control with respect to any portion of the Collateral which is Letter-of-Credit Rights or Electronic Chattel Paper.

 

11. No Waiver, etc. Debtor waives demand, notice, protest, notice of acceptance of this Agreement, notice of leases entered into, loans made, credit extended, Collateral received or delivered or other action taken in reliance hereon and all other demands and notices of any description. With respect to both the Obligations and the Collateral, Debtor assents to any extension or postponement of the time of payment or any other indulgence, to any substitution, exchange or release of or failure to perfect any security interest in any Collateral, to the addition or release of any party or Person primarily or secondarily liable, to the acceptance of partial payment thereon and the settlement, compromising or adjusting of any thereof, all in such manner and at such time or times as the Secured Party may deem advisable. Secured Party shall have no duty as to the collection or protection of the Collateral or any income thereon, nor as to the preservation of rights against other Persons, nor as to the preservation of any rights pertaining thereto beyond the safe custody thereof as set forth in subparagraph 7(b)hereof. Secured Party shall not be deemed to have waived any of its rights upon or under the Obligations or the Collateral unless such waiver shall be in writing and signed by Secured Party. No delay or omission on the part of Secured Party in exercising any right shall operate as a waiver of such right or any other right. A waiver on any one occasion shall not be construed as a bar to or waiver of any right on any future occasion. All rights and remedies of the Secured Party with respect to the Obligations or the Collateral, whether evidenced hereby or by any other instrument or papers, shall be cumulative and may be exercised singularly, alternatively, successively or concurrently at such time or at such times as Secured Party deems expedient.

 

  

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12. No Marshaling. Secured Party shall not be required to marshal any present or future collateral security (including but not limited to this Agreement and the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order, and all of the rights of Secured Party hereunder and in respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights, however existing or arising. To the extent that it lawfully may, Debtor hereby agrees that it will not invoke any law relating to the marshalling of collateral which might cause delay in or impede the enforcement of the Secured Party's rights under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, Secured Party hereby irrevocably waives the benefits of all such laws.

 

13. No Obligation to Pursue Others. Secured Party shall have no obligation to attempt to satisfy the Obligations by collecting them from any other Person liable thereon and Secured Party may release, modify or waive any collateral provided by any other Person to secure any of the Obligations, all without affecting Secured Party's rights against Debtor. Debtor hereby waives any right it may have to require Secured Party to pursue any third person, including without limitation any Guarantor, for any of the Obligations.

 

14. Compliance with Other Laws. Secured Party shall be entitled to comply with any applicable state or federal law or requirements in connection with any disposition of the Collateral and compliance therewith will not be considered adversely to affect the commercial reasonableness of any sale of all or any portion of the Collateral.

 

15. Warranties. Secured Party may sell or otherwise dispose of all or any portion of the Collateral without warranty and Secured Party may specifically disclaim any and all warranties of title or like warranties. Any such sale made without warranty, including without limitation any warranty or title or like warranty, shall not be considered adversely to affect the commercial reasonableness of any sale of all or any portion of the Collateral.

 

16. Sales on Credit. In the event that Secured Party sells or otherwise disposes of all or any portion of the Collateral upon credit, Debtor will be credited only to the extent of payments actually made by the purchaser or other acquirer of such Collateral, received by Secured Party and applied to the Obligations. In the event that such purchaser or other acquirer fails to pay for the Collateral sold upon credit in full, the Secured Party may resell or otherwise dispose of the Collateral and Debtor shall be credited with the proceeds of such sale to the extent hereinabove provided.

 

17. Purchases by Secured Party. In the event that Secured Party purchases any portion of the Collateral at any sale or other disposition made pursuant to the terms hereof, Secured Party shall be entitled to credit some or all of the Obligations to said purchase, as it shall deem appropriate.

 

18. Proceeds of Dispositions; Expenses. Debtor shall pay to Secured Party on demand any and all expenses, including reasonable attorneys' fees and disbursements, incurred or paid by Secured Party in protecting, preserving or enforcing Secured Party's rights under or in respect of any of the Obligations or any of the Collateral. After deducting all of said expenses, the residue of any proceeds of collection or sale of the Obligations or Collateral shall, to the extent actually received in cash, be applied to the payment of the Obligations in such order or preference as Secured Party shall determine, proper allowance and provision being made for any Obligations not then due. Upon the final payment and satisfaction in full in cash of all of the Obligations and after making any payments required by the UCC, any excess shall be returned to Debtor, and Debtor shall remain liable for any deficiency in the payment of the Obligations.

 

  

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19. Governing Law; Consent to Jurisdiction. This Agreement shall be governed, interpreted and construed by, through and under the laws of the State of Florida, except, however, its laws or principles regarding conflicts of laws or choice of laws, and except to the extent that the UCC provides for the application of the law of the Debtor States. Each party hereto irrevocably submits to the jurisdiction of any state or federal court sitting in Pinellas County, Florida, for any action or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby, and each party irrevocably agrees that all claims in respect of any such action or proceeding may be heard and determined in such state or federal court.

 

20. Notices. Any notice or demand under or pursuant to this Agreement shall be made to the parties at the addresses set forth below and shall be deemed delivered when a record has been (a) deposited in any United States postal receptacle, postage prepaid, properly addressed to the intended recipient, (b) shipped by private express carrier of national reputation, shipment charges prepaid, and properly addressed to the intended recipient, (c) received by telecopy, (d) received via electronic transmission via the Internet, or (e) personally delivered. Notwithstanding the foregoing, all requests under Florida Statutes §679.210 (i) shall be made in a writing signed by An officer of Debtor, (ii) shall be personally delivered, sent by registered or certified U.S. mail, return receipt requested, or by private express carrier of national reputation, (iii) shall be deemed to be sent when received by the Secured Partyand (iv) shall otherwise comply with the requirements of Florida Statutes § 679.210. Notices shall be sent to the following addresses:

 

	If to Secured Party:	The Bank of Tampa 

Post Office Box One

Tampa, Florida 33601

 

Attention: David E. Brown, Senior Vice President

Phone: (813) 998-2702

Telecopy: (813) 998-2668

Internet e-mail: dbrown@bankoftampa.com

	 	 
	With a copy to: 	Shumaker, Loop & Kendrick, LLP 

101 East Kennedy Boulevard

Suite 2800

Tampa, Florida 33602

 

Attention: W. Kent Ihrig, Esq.

Phone: (813) 229-7600

Telecopy: (813) 229-1660

Internet e-mail: kihrig@slk-law.com

	 	 
	If to Debtor:	Bovie Medical Corporation 

5115 Ulmerton Road

Clearwater, Florida 33760

 

Attention: Robert L. Gershon, Chief Executive Officer

Phone: (___) ___-____

Telecopy: (___) ___-____

Internet e-mail: __________________

 

21. Rights and Remedies Cumulative. The rights, powers and remedies of the Secured Party herein provided are cumulative and not exclusive of any rights, powers or remedies which the Secured Party would otherwise have.

 

  

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22. Indemnity. The Debtor shall indemnify the Secured Party and save harmless the Secured Party from and against any liability, cost (including reasonable attorneys' fees) or damage which it may incur as a result of Debtor's acts or omissions in connection with this Agreement and the security interest granted hereby, including, without limitation, any such liability, cost or damage it may incur in connection with the exercise, performance or preservation of any of its rights, powers and remedies set forth herein or otherwise available under law (except for any liability, cost or damage arising from the Secured Party's gross negligence or willful misconduct) as a result of Debtor's acts or omissions.

 

23. Binding Effect. This Agreement shall be binding upon the Debtor and its successors and assigns and shall inure to the benefit of the Secured Party and its successors and assigns, provided, however, the Debtor may not, without the prior written consent of the Secured Party, assign any of its rights or obligations hereunder to any Person. All agreements, representations and warranties made herein by the Debtor shall survive the execution and delivery of this Agreement.

 

24. Continuing Nature. This Agreement is a continuing one and all liabilities to which it applies or may apply under the terms hereof shall be conclusively presumed to have been created in reliance hereon.

 

25. Paragraph Headings. The paragraph headings used herein are for convenience of reference only and are not to be used in the construction or interpretation hereof.

 

26. Singular/Plural; Gender. Whenever herein the singular number is used, the same shall include the plural where appropriate, and vice versa and words of any gender shall include each other gender where appropriate.

 

27. Integration. This Agreement contains the entire agreement between the parties hereto with respect to the subject matter hereof, and all prior negotiations, understandings and agreements are superseded by this Agreement.

 

28. Severability. If and to the extent that any provision of this Agreement is held to unenforceable or invalid, the remaining terms and provisions of this Agreement shall be enforced without reference to said unenforceable or invalid provision, it being the intent of the parties that the provisions hereof are and shall be severable.

 

29. Modifications. Neither this Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, but only by an instrument in writing, signed by the party against whom enforcement of the change, waiver, discharge or termination is sought.

 

30. Time of Essence. Time is of the essence of this Agreement and of each provision hereof.

 

31. Counterparts. This Agreement may be executed in one or more counterparts, each of which when executed and delivered shall be deemed an original, but all of which taken together shall constitute one and the same instrument. Any party may execute this Agreement by executing any of such counterparts.

 

32. Exhibits; Schedules. All exhibits or schedules attached to this Agreement are an integral part hereof and are hereby incorporated herein by this reference.

 

[Remainder of Page Intentionally Blank]

 

  

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IN WITNESS WHEREOF, the parties, intending to be legally bound hereby, have executed and delivered this Agreement as of the day and year first above written.

 

 

	 	 	"Debtor"
	Witnesses:	 	 
	 	 	
BOVIE MEDICAL CORPORATION,

	 	 	a Delaware corporation
	______________________________	 	 
	______________________________	 	 
	(Printed Name of Witness)	 	By:	______________________________________
	 	 	 	Robert L. Gershon, Chief Executive Officer
	 	 	 
	______________________________	 	 
	______________________________	 	 
	(Printed Name of Witness)	 	 

 

[Remainder of Page Intentionally Blank]

 

  

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	 	 	"Secured Party"
	Witnesses:	 	 
	 	 	
THE BANK OF TAMPA,

	 	 	a Florida banking corporation
	______________________________	 	 
	______________________________	 	 
	(Printed Name of Witness)	 	By:	______________________________________
	 	 	 	
David E. Brown, Senior Vice President

	 	 	 
	______________________________	 	 
	______________________________	 	 
	(Printed Name of Witness)	 	 

 

  

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Schedule 5(d) --Permitted Liens

 

 

 

 

 

 

 

 

  

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Schedule 5(e)—Debtor Chief Executive Office and Debtor State

Debtor's Chief Executive Office:

 

	 	
5115 Ulmerton Road

Clearwater, Florida 33760

	 	 
	Debtor State:	Delaware

 

 

 

 

  

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Schedule 5(g)—Account Debtors or Obligors

Subject to Federal Assignment of Claims Act

 

 

 

 

 

17bvx_ex106.htm

EXHIBIT 10.6

 

ENVIRONMENTAL INDEMNITY AGREEMENT

THIS ENVIRONMENTAL INDEMNITY AGREEMENT (the "Agreement") is made and entered into this 20thday of March, 2014, by Bovie Medical Corporation, a Delaware corporation ("Indemnitor") in favor and for the benefit of The Bank of Tampa, a Florida banking corporation (the "Indemnitee").

W I T N E S S E T H:

WHEREAS, as of even date herewith, Indemnitee has made to Indemnitor and Indemnitor has borrowed from Indemnitee a certain loan (the "Loan") in the principal amount of $3,592,000.00, which Loan is evidenced and secured by Indemnitor's Promissory Note (as amended, modified, restated, increased, decreased or renewed, at any time or from time to time, the "Note") in said sum, a Mortgage, Security Agreement, Financing Statement and Assignment of Rents (as amended, modified or restated at any time or from time to time, the "Mortgage"), an Assignment of Rents, Leases, Profits and Contracts, certain UCC-1 Financing Statements (the foregoing documents and instruments and all other documents or instruments executed and/or delivered in connection with the Loan, as amended, modified, or restated at any time or from time to time, being referred to as the "Loan Documents"), which Loan is for the purposes of financing, and is secured by, certain real property located in Pinellas County, Florida, and more particularly described on Exhibit "A" attached hereto and by this reference made a part hereof (together with any improvements constructed or to be constructed thereon, the "Premises"); and,

WHEREAS, to induce Indemnitee to grant or extend the Loan to Indemnitor, Indemnitee is requiring that Indemnitor execute and deliver this Agreement as a condition of said Loan;

NOW, THEREFORE, for and in consideration of the sum of Ten Dollars ($10.00), Indemnitee's extension of credit to Indemnitor, and other good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

1. Recitals. The foregoing recitals are true and correct and are hereby incorporated by reference for all purposes.

 

2. Definitions. In addition to the various definitions as contained in the preamble and recitals of this Agreement, as well as those terms which are defined elsewhere in this Agreement, the following terms, as used in this Agreement, shall have the meanings indicated, unless the context otherwise demands:

 

"CERCLA" shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (42 USC §§9601, et seq.), as amended from time to time, including without limitation, the Superfund Amendments and Reauthorization Act ("SARA").

"CERCLIS" shall mean the Comprehensive Environmental Response, Compensation and Liability Information System, or any other information system, established pursuant to CERCLA or any other Environmental Law or Environmental Regulation.

"Environmental Law" shall mean any federal, state or local law, statute, code, ordinance, or common law, whether now in existence or established or enacted in the future, relating to pollution, protection of the environment, health, industrial hygiene, Hazardous Substances (including, without limitation, the manufacture, generation, distribution, use, treatment, storage, disposal, transport or handling thereof) or relating to above ground or underground storage tanks, including but not limited to CERCLA, SARA, the Solid Waste Disposal Act, as amended by RCRA and the Solid and Hazardous Waste Amendments of 1984, the Federal Water Pollution Control Act, as amended by the Clean Water Act of 1977, the Clean Air Act of 1966, as amended, the Toxic Substances Control Act of 1976, the Occupational Safety and Health Act of 1970, as amended, the Emergency Planning and Community Right-to-Know Act of 1986, the National Environmental Policy Act of 1975, RCRA, the Florida Resource Recovery and Management Act (Florida Statutes §§403.701, et seq.), and the Pollutant Spill Prevention and Control Act (Florida Statutes §§376.011 through 376.17 and 376.19 through 376.21), and any and all amendments to any of the foregoing.

 

  

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"Environmental Regulation" shall mean any regulation or rule promulgated by any Environmental Regulator pursuant to any Environmental Law or otherwise.

"Environmental Regulator" shall mean any federal, state or local governmental or quasi-governmental unit, body or agency which regulates, or is charged with regulating, the environment or Hazardous Substances or which is charged with enforcing any Environmental Law or promulgating Environmental Regulations, including, without limitation, the Environmental Protection Agency ("EPA"), or the Florida Department of Environmental Protection ("FDEP").

"Hazardous Substance" shall mean, without limitation, one or more of the following substances:

(i) Those substances included within the definition of "hazardous substances," "hazardous materials," "hazardous wastes", "toxic substances," "solid waste," "pollutants," "contaminants," or "nuclear or byproduct material" in CERCLA, SARA, RCRA, the Toxic Substances Control Act, as amended, the Federal Insecticide, Fungicide and Rodenticide Act, as amended, the Hazardous Materials Transportation Act, as amended, the Solid Waste Disposal Act, as amended, the Atomic Energy Act of 1954, as amended, and in any Environmental Regulations promulgated pursuant to said laws;

 

(ii) Those substances listed in the United States Department of Transportation Table (49 CFR 172.101, as amended) or by the EPA (or any successor agency) as hazardous substances (40 CFR Part 302, as amended) or by FDEP or any other Environmental Regulator as hazardous substances;

 

(iii) Such other substances, materials and wastes which are or become regulated under any Environmental Law, Environmental Regulation or any other federal, state or local law, rule or regulation; and

 

(iv) Any asbestos, polychlorinated biphenyls, petroleum products and distillates, and other solid, semi-solid, liquid or gaseous substances which are toxic, ignitable, explosive, corrosive, carcinogenic or otherwise dangerous to human, plant or animal health and well being.

"National Priorities List" shall mean the National Priorities List established pursuant to CERCLA or any other list identifying hazardous or toxic waste sites maintained or controlled by any Environmental Regulator.

"RCRA" shall mean the Resource Conservation and Recovery Act of 1976 (42 USC §§6901, et seq.), as amended from time to time.

3. Representations and Warranties. Indemnitor represents and warrants, after all due inquiry and investigation, that:

 

(a) The Premises have not been in the past nor are they presently being used for the storage or generation of any Hazardous Substance in violation of applicable Environmental Laws, Environmental Regulations, orders of Environmental Regulators, or permits issued by any Environmental Regulator.

 

  

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(b) To Indemnitor’s knowledge, no Hazardous Substance has been released or disposed of on the Premises or any part thereof in violation of applicable Environmental Laws, Environmental Regulations, orders of Environmental Regulators or permits issued by Environmental Regulators.

 

(c) To Indemnitor’s knowledge, there are no underground storage tanks or storage facilities located in or on the Premises or any part thereof in violation of Environmental Laws, Environmental Regulations, orders of Environmental Regulators or permits issued by Environmental Regulators.

 

(d) There are no known violations on the Premises of any Environmental Laws or Environmental Regulations.

 

(e) Indemnitor has obtained all permits and/or licenses from Environmental Regulators necessary or required in order to conduct its operations as now conducted. A schedule of all such presently existing permits and/or licenses is attached hereto as Exhibit "B" and by this reference made a part hereof, which schedule accurately sets forth the type of permit or license, the issuing agency, the issuance date and the expiration date, if any. Indemnitor has provided to Indemnitee true and correct copies of all such permits and/or licenses and all of same are in full force and effect.

 

(f) The Premises are unencumbered by the lien of any Environmental Regulator or any third party for clean-up costs, damages or other costs pursuant to any Environmental Law or Environmental Regulation.

 

(g) Indemnitor has received no notice from any Environmental Regulator of any response action pursuant to any Environmental Law or Environmental Regulation with regard to the Premises or any other properties owned, operated or controlled by Indemnitor.

 

(h) No Environmental Regulator has sought to impose or enforce any fine, penalty, assessment, cost, forfeiture or imposition against Indemnitor or any person occupying, or operating any improvement or facility on the Premises or any part thereof for violation of, or non-compliance with, any Environmental Laws or Environmental Regulations, nor has any Environmental Regulator sought to impose a lien or claim of lien against the Premises, any part thereof, or any other properties owned, operated or controlled by Indemnitor.

 

(i) Neither the Premises nor any other properties owned, operated or controlled by Indemnitor, jointly or severally, are listed on the National Priorities List or with CERCLIS.

 

(j) No permit is or has been required from or by any Environmental Regulator for the use, maintenance or operation of any improvement or facility on, or which is a part of, the Premises, other than as specifically disclosed in Exhibit "B" attached hereto.

 

(k) No summons, citation, order directing compliance or inquiry has been made or given by any Environmental Regulator to Indemnitor.

 

(l) No Environmental Regulator or any third party has demanded any right of recovery nor brought or, to Indemnitor’s knowledge, threatened to bring any action, cause of action, suit or proceeding seeking recovery for payment or reimbursement for clean-up costs, damages or other costs incurred under or pursuant to any Environmental Law or Environmental Regulation.

 

  

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(m) To the best of Indemnitor's knowledge and belief no properties adjoining or abutting the Premises (i) have been used for the storage, generation, release or disposal of any Hazardous Substance in violation of applicable Environmental Laws, Environmental Regulations, orders of any Environmental Regulator or permits issued by any Environmental Regulator, (ii) are subject to the lien of any Environmental Regulator or any third party for clean-up costs, damages or other costs pursuant to any Environmental Law or Environmental Regulation, (iii) are or have been the subject of any response action pursuant to any Environmental Law or Environmental Regulation, (iv) are listed on the National Priorities List or with CERCLIS, (v) are under or covered by any permit issued by any Environmental Regulator for the use, operation or maintenance of any improvement or facility located thereon or (vi) are the subject of any summons, citation, order directing compliance or inquiry of any Environmental Regulator.

 

(n) Any independent investigation by Indemnitee of any facts warranted above shall in no way diminish the reliance by Indemnitee upon the warranties and representations made by Indemnitor herein.

4. Covenant Not To Store Hazardous Substances In Violation of Law. Indemnitor covenants and agrees that it will not, at any time, use, operate, or maintain the Premises, or any part or parcel thereof, for (i) the storage, generation, release or disposal of any Hazardous Substance of any kind in violation of Environmental Laws or Environmental Regulations, orders of Environmental Regulators or permits issued by Environmental Regulators, (ii) any purpose that would give rise to a response action, to the imposition of any fine, penalty, assessment, cost, forfeiture or imposition for violation of Environmental Laws or Environmental Regulations or to a claim, claim of lien or lien against the Premises, any part or parcel thereof, Indemnitee, Indemnitee's properties, Indemnitor or Indemnitor's properties for clean-up costs, damages or other costs pursuant to any Environmental Law or Environmental Regulation, or (iii) any purpose that would cause the Premises to be listed on the National Priorities List or with CERCLIS. Indemnitor further agrees that it will not use, operate or maintain any other properties owned, operated or controlled by Indemnitor for the foregoing purposes and which would give rise to a claim, claim of lien or lien against the Premises or any part or parcel thereof. From time to time at the request of Indemnitee, Indemnitor(and such of Indemnitor's principals, officers, directors [if Indemnitor is a corporation], general partners [if Indemnitor is a partnership], employees, agents, managers, independent contractors or other persons having knowledge of the operation, use and maintenance of the Premises, as Indemnitee shall require) shall execute and deliver to Indemnitee a certificate, in form and content acceptable to Indemnitee, reaffirming the validity, correctness and currency of the warranties and representations made in this Agreement.

 

5. Covenants As To Permits. Indemnitor covenants and agrees that it shall at all times hereafter maintain and keep in full force and effect all permits and/or licenses issued by Environmental Regulators, necessary or required in order to conduct Indemnitor's operations, including without limitation those shown on Exhibit "B" attached hereto. Indemnitor further covenants and agrees that it shall apply for in a timely manner, obtain and thereafter maintain in full force and effect any and all such permits and/or licenses at any time hereafter required or necessary to conduct Indemnitor's operations.

 

  

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6. Indemnification. Indemnitor acknowledges that Indemnitee is relying on the veracity of the warranties and representations made herein and on Indemnitor's full and faithful compliance with the covenants contained herein, and Indemnitor agrees to and shall indemnify, defend (by counsel reasonably acceptable to Indemnitee) and hold Indemnitee harmless of, from and against (i) any and all liabilities, claims, demands, obligations, losses, awards, judgments, or amounts paid in settlement or compromise thereon, and costs associated therewith, including reasonable attorneys' fees, by virtue of any investigation, inquiry, suit, proceeding, action, cause of action, right to recovery, assessment, claim, claim of lien or lien of or by any Environmental Regulator or any third party with respect to the Premises, Indemnitor, Indemnitor's operation of the Premises or any adjoining lands for clean-up costs, damages (including without limitation punitive or consequential damages, whether foreseeable or unforeseeable), or other costs pursuant to any Environmental Law, Environmental Regulation or order of an Environmental Regulator or any common law right of recovery, including without limitation those arising from personal injury, death or property damage, (ii) any and all fines, penalties, assessments, forfeitures, payments, impositions or amounts paid in settlement or compromise thereon, together with costs associated therewith, including reasonable attorneys' fees, imposed or obtained by or awarded to any Environmental Regulator for violation of, or non-compliance with, any Environmental Law or Environmental Regulation, (iii) any and all costs required to take necessary precautions to protect against the release of any Hazardous Substance in, on, under or affecting the Premises, or any part or parcel thereof, into the air, any body of water, any other public domain or any surrounding or adjoining properties, (iv) any and all costs required to comply, in connection with all or any portion of the Premises or any surrounding or adjoining properties, with applicable Environmental Laws, Environmental Regulations, orders of Environmental Regulators or permits issued by Environmental Regulators, (v) any breach of the representations, warranties or covenants of Indemnitor contained herein, and (vi) any and all costs of any required or necessary inspection, audit, clean-up, detoxification and the preparation of any closure or other required plans, consent orders, or permit or license applications.

 

7. Release of Hazardous Materials; Claim. Indemnitor agrees to immediately notify Indemnitee upon the occurrence of any storage, generation, release, disposal or placing of any Hazardous Substance of any kind in, on, about or under the Premises, or any part or parcel thereof. Indemnitor shall further immediately notify Indemnitee in writing of the receipt of any notice, order, correspondence, communication or information that (i) a permit is required from any Environmental Regulator for the use, maintenance or operation of any improvement or facility on, or which is a part of, the Premises, (ii) a summons, citation, order directing compliance or inquiry is being issued or made by any Environmental Regulator, (iii) any Environmental Regulator or any third party has demanded or asserted any right of recovery for payment or reimbursement, or any claim, claim of lien or lien against the Premises, or any part or parcel thereof, for clean-up costs, damages, or other costs incurred under or pursuant to Environmental Laws or Environmental Regulations or under any common law right of recovery, (iv) the Premises are or will be listed on the National Priorities List or with CERCLIS, (v) any fine, penalty, assessment, cost, forfeiture or imposition has been, or will be or is sought to be imposed against Indemnitor or Indemnitee for violation or asserted violation of Environmental Laws, Environmental Regulations, orders of Environmental Regulators or permits issued by any Environmental Regulator, (vi) an underground storage tank or storage facility is located in or on the Premises, or (vii) any response action pursuant to any Environmental Law or Environmental Regulation is being, or will be, commenced by any Environmental Regulator or any third party with regard to (1) the Premises or (2) any other properties owned, operated or controlled by Indemnitor which would give rise to a claim, claim of lien or lien against the Premises.

 

8. Clean-up Plan. In the event of any determination that any Hazardous Substance has been stored, generated, released, disposed of or is located in, on, about or under the Premises, or any part or parcel thereof, or, that any underground storage tank or storage facility is located in, on, about or under the Premises, or any part or parcel thereof, in violation of applicable Environmental Laws, Environmental Regulations, orders of Environmental Regulators, or permits issued by Environmental Regulators, Indemnitor shall immediately notify the appropriate Environmental Regulator having jurisdiction thereof, and accept full responsibility therefor. Indemnitor shall, further, within thirty (30) days of such determination, submit evidence to Indemnitee of the remedial action deemed necessary to provide for the full and adequate clean-up and removal of any such Hazardous Substance or underground storage tanks or storage facilities, and the total restoration of the Premises or any affected portion thereof, and as soon as possible shall provide, at Indemnitor's sole cost and expense, detailed plans and specifications therefor. Indemnitor shall, after obtaining all necessary approvals, permits and/or licenses of all appropriate governmental or quasi-governmental units, bodies or agencies, including without limitation Environmental Regulators, diligently prosecute the accomplishment of the remedial action contemplated herein, at Indemnitor's sole cost and expense.

 

  

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9. Modification of Existing Improvements.

 

(a) Indemnitor covenants and agrees with Indemnitee that prior to any modification, renovation, demolition rehabilitation, remodeling, retrofit, or expansion of the existing improvements comprising a portion of the Premises, Indemnitor shall undertake and obtain, at its sole cost and expense, from a third-party licensed environmental consultant or engineer, reasonably acceptable to Indemnitee, an asbestos survey of said improvements, or, to the extent that such modification, renovation, demolition, rehabilitation, remodeling, retrofit, or expansion relates to only a portion of the improvements, such portion of the improvements, together with a written report of the results of such asbestos survey, in order to determine the existence of asbestos containing materials (“ACMs”) within said improvements and recommendations as to a proposed operating and maintenance program (“O&M Program”) with respect to any ACMs disclosed by such report. The asbestos survey must include an assessment of all suspected ACMs including those that are not normally accessible. Indemnitor shall provide a copy of the report of the asbestos survey and any recommended O&M Program to Indemnitee for its review, which O&M Program must provide for the removal, handling and/or disposal of any such ACMs consistent, and in compliance, with all applicable Environmental Laws and Environmental Regulations. To the extent that any ACMs are determined to exist with respect to any portion of the Premises, Indemnitor shall adopt and thereafter undertake an O&M Program for removal and/or management of such ACMs consistent with the recommendations of the report of the asbestos survey prior to, or in conjunction with, undertaking any modification, renovation, demolition rehabilitation, remodeling, retrofit, or expansion of the existing improvements comprising a portion of the Premises. If an O&M Program is established, Indemnitor shall comply in a timely manner with, and cause all employees, agents and contractors of Indemnitor to comply with the O&M Program. All costs of performance of Indemnitor’s obligations under any O&M Program shall be paid by Indemnitor, and Indemnitee’s out-of-pocket costs incurred in connection with the monitoring and review of the O&M Program and Indemnitor’s performance shall be paid by Indemnitor upon demand by Indemnitee.

 

(b) Indemnitor covenants and agrees with Indemnitee that prior to any actions taken with respect to, or which would impact, any painted surfaces within the Premises, including without limitation, sanding, scraping, or heat-gun or chemical removal, any existing painted surfaces shall be assessed, at Indemnitor’s sole cost and expense, by a third-party licensed environmental consultant or engineer, reasonably acceptable to Indemnitee for the presence of lead-based paints (“LBPs”). To the extent that the presence of LBPs is detected within the Premises, Indemnitor shall conduct, and/or shall cause all employees, agents and contractors of Indemnitor to conduct, the removal of any such LBPs in a controlled manner consistent, and in compliance, with all applicable Environmental Laws and Environmental Regulations. All costs of performance of Indemnitor’s obligations with respect to LBPs or their removal shall be paid by Indemnitor, and Indemnitee’s out-of-pocket costs incurred in connection with the monitoring and review of any course of action with respect to LBPs and Indemnitor’s performance shall be paid by Indemnitor upon demand by Indemnitee.

 

10. Indemnitee's Additional Rights. In the event that Indemnitee shall, at any time, determine that any Hazardous Substance has been stored, generated, released, disposed or is located on, in, upon, about or under the Premises or any part or parcel thereof or that any underground storage tank or storage facility is located on, in, upon or under the Premises or any part or parcel thereof, in violation of applicable Environmental Laws, Environmental Regulations, orders of Environmental Regulators or permits issued by Environmental Regulators or in the event that the Premises or any part or parcel thereof are subject to the claim, claim of lien or lien of any Environmental Regulator or any third party for clean-up costs, damages or other costs pursuant to any Environmental Law or Environmental Regulation or common law right of recovery, Indemnitee, in addition to all other rights and remedies which it may have hereunder, under any other Loan Document, or at law or in equity, shall have the right, but without any obligation, to reassign or reconvey the Premises or any part or parcel thereof to Indemnitor or Indemnitor's successor-in-interest.

 

  

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11. Indemnitor's Liability. The liability of Indemnitor under this Agreement shall not be limited or impaired by (i) any amendment or modification of the Note, or the Loan Documents, (ii) any extension of time, or renewal, for the payment of the indebtedness evidenced by the Note or performance required under the Note or the other Loan Documents, (iii) any exculpatory provision in the Note, the Mortgage or the other Loan Documents limiting Indemnitee's recourse to the Premises or other collateral security for the Loan or limiting Indemnitee's right to seek a deficiency judgment against Indemnitor, (iv) the accuracy or inaccuracy of the representations and warranties made by Indemnitor in this Agreement, the Mortgage or any other Loan Documents, (v) the release of Indemnitor, or any other person from performance or observance of any agreements, covenants, terms or conditions contained in the Note, the Mortgage or the other Loan Documents, or (vi) the release or substitution in whole or in part of any of the collateral security for the Loan. If more than one person or entity shall execute this Agreement, the liability of Indemnitor shall be joint and several. Further, Indemnitor acknowledges and agrees that this Agreement constitutes a covenant separate and apart from the Note, the Mortgage or the other Loan Documents and may be enforced by Indemnitee without regard to said other documents or the enforcement thereof. This Agreement shall not be deemed to be secured by the Mortgage and nothing contained in the Note, the Mortgage or the other Loan Documents shall limit Indemnitor's liability hereunder.

 

12. Continuing Nature. The provisions of this Agreement shall survive the repayment of the Loan and shall continue in full force and effect so long as the possibility of any liability, claim, obligations or losses exist hereunder, and shall further survive the acquisition of the Premises by Indemnitee pursuant to a sale or foreclosure under the Mortgage or pursuant to a deed or assignment in lieu of foreclosure or otherwise, but only as it relates to any time period prior to the possession of the Premises by Indemnitee or anyone else acquiring the Premises through a sale or foreclosure under the Mortgage.

 

13. Insurance. Indemnitor acknowledges and agrees that the indemnity provisions contained herein and Indemnitor's obligations and liabilities arising hereunder are exclusive of, and in addition to, (i) any and all obligations of Indemnitor under the Loan Documents to carry insurance and (ii) any and all insurance policies maintained by or on behalf of Indemnitor and insuring against any of the matters described in said indemnity provisions.

 

14. Modifications. Neither this Agreement nor any provision hereof may be changed, waived, discharged or terminated orally, but only by an instrument in writing, signed by the party against whom enforcement of the change, waiver, discharge or termination is sought.

 

15. Binding Effect. The terms, conditions, covenants, indemnities, agreements, powers and privileges contained herein shall extend to, be binding upon and available for the heirs, executors, administrators, successors, and to the extent permitted under the Loan Documents, assigns of each of the respective parties hereto.

 

16. Severance. In the event any one or more of the provisions or terms of this Agreement shall for any reason be held to be unenforceable in any respect, such unenforceability shall not affect any other provision of this Agreement, but this Agreement shall be construed as if such unenforceable provision had never been contained herein.

 

17. Headings. The paragraph headings used herein are for convenience of reference only and are not to be used in the construction or interpretation hereof.

 

18. Counterparts. This Agreement may be executed in one or more counterparts, all of which taken together will constitute one and the same instrument and any of the parties or signatories hereto may execute this Agreement by signing any such counterpart.

 

  

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19. Governing Law. This Agreement, shall be governed, interpreted and construed by, through and under the laws of the State of Florida, excepting, however, its laws or principles regarding conflicts of laws or choice of laws.

 

20. Attorneys' Fees. In the event that Indemnitee shall retain an attorney to enforce its rights hereunder or shall bring, or appear in, any action, suit or proceeding (including without limitation appearances in bankruptcy proceedings) with respect to this Agreement or enforcement of the terms hereof, Indemnitee shall be entitled to recover all of its costs associated therewith including its reasonable attorneys' fees. Attorneys' fees shall be deemed to include charges for paralegals, law clerks and other staff members operating under the supervision of an attorney and shall also include, without limitation, any allocated costs of Indemnitee’s in-house counsel to the extent permitted by applicable law. Any award or payment of attorneys' fees hereunder or by a court of competent jurisdiction shall also include any and all sales and/or use taxes imposed thereon by any appropriate governmental authority.

 

[Remainder of Page Intentionally Blank]

 

  

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IN WITNESS WHEREOF, Indemnitor has duly executed this Agreement as of the day and year first above written.

 

 

	 	 	Indemnitor:
	Witnesses:	 	 
	 	 	BOVIE MEDICAL CORPORATION, 
	 	 	a Delaware corporation
	______________________________	 	 
	______________________________	 	 
	(Printed Name of Witness)	 	By:	______________________________________
	 	 	 	Robert L. Gershon, Chief Executive Officer
	 	 	 
	______________________________	 	 
	______________________________	 	 
	(Printed Name of Witness)	 	 

 

Exhibits:

A—Legal Description

B—Schedule of Existing Environmental Permits

  

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EXHIBIT “A”

 

LEGAL DESCRIPTION

 

Lot 9, in the Southeast 1/4 of Section 4, Township 30 South, Range 16 East, according to the plat of Pinellas Groves, Inc., recorded in Plat Book 1, Page 55, of the Public Records of Pinellas County, Florida, LESS the West 150 feet thereof and also LESS that part lying within 120 feet of survey line of State Road S-688, Section 15120, as described in Clerk's Instrument No. 260901B, Official Records Book 2081, Page 593, Pinellas County Records.

 

 

 

  

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EXHIBIT “B”

 

EXISTING ENVIRONMENTAL PERMITS

Privately Owned Collection and Transmission System Operating Permit No. 130717LS925-66, issued by the City of Largo, Florida, Department of Environmental Services, issued to Bovie Medical Corporation, with an Effective Date of July 20, 2013 and an Expiration Date of July 19, 2015.

 

 

 

 

 

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