Document:

EX-10.1

 

Exhibit 10.1

 

FORBEARANCE

AND

AMENDMENT NUMBER SIX TO CREDIT AGREEMENT

dated as of February 14, 2007

between

ULTRALIFE BATTERIES, INC.

and

THE LENDERS PARTY THERETO

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent

 

 

 

FORBEARANCE

AND

AMENDMENT NUMBER SIX TO CREDIT AGREEMENT

          This Forbearance and Amendment Number Six to Credit Agreement (the “Amendment”), dated
as of February 14, 2007, is made by and between ULTRALIFE BATTERIES, INC. (the “Borrower”)
and the Lenders party to the Credit Agreement and JPMORGAN CHASE BANK, N.A. (formerly known as
JPMorgan Chase Bank) as Administrative Agent for the Lenders (in such capacity, the
“Agent”).

Statement of the Premises

          The Borrower, the Lenders and the Agent have previously entered into, among other agreements,
a Credit Agreement, dated as of June 30, 2004, which was amended by Amendment Number One dated as
of September 24, 2004, Amendment Number Two dated as of May 4, 2005, Amendment Number Three dated
as of August 5, 2005, Amendment Number Four dated as of November 1, 2005, that certain waiver
letter dated May 3, 2006, Amendment Number Five dated June 29, 2006, that certain waiver letter
dated October 20, 2006, and that certain waiver letter dated November 30, 2006 as extended
(collectively, the “Credit Agreement”). The Borrower has requested that the Lenders and
Agent grant the Borrower additional time to comply with covenants contained the Credit Agreement
and the Borrower, the Lenders and the Agent desire to amend the Credit Agreement as referenced
herein.

Statement of Consideration

          Accordingly, in consideration of the premises and under the authority of Section 5-1103 of the
New York General Obligations Law, the parties agree as follows:

Agreement

	 	1.	 	Defined Terms. The terms “this Agreement”, “hereunder” and
similar references in the Credit Agreement shall be deemed to refer to the Credit Agreement
as amended by this Amendment. Capitalized terms used and not otherwise defined herein shall
have the meanings ascribed to such terms in the Credit Agreement.
	 
	 	2.	 	Amendment. Effective upon the satisfaction of all conditions specified in
Section 4 hereof, the Credit Agreement is hereby amended as follows:

	 	A.	 	The definition of “Change in Control” as set
forth in Section 1.01 of the Credit Agreement is hereby amended so that the
figure “20%” contained therein is superseded and replaced in its entirety
with “30%”.
	 
	 	B.	 	The following definition is hereby added to Section
1.01 of the Credit Agreement in the appropriate alphabetical order:

“Amendment No. 6” means that certain Forbearance and
Amendment Number Six to the Credit Agreement dated as of February
14, 2007 among, Borrower, Administrative Agent and Lenders.

	 	C.	 	The definition of “Applicable Revolving Rate”
as set forth in Section 1.01 of the Credit Agreement is hereby amended so
that the following provision is added to the end thereof:

Provided further, however, during the Forbearance Period (as defined
in Amendment No. 6), the Applicable Revolving Rate with respect to
the Eurodollar Spread and the ABR Spread shall be the basis points
number

 

 

2

set forth in the above grid otherwise in accordance with the terms
hereof plus an additional 25 basis points.

	 	D.	 	The definition of “Applicable Term Rate” as set
forth in Section 1.01 of the Credit Agreement is hereby amended so that the
following provision is added to the end thereof:

Provided further, however, during the Forbearance Period (as defined
n Amendment No. 6), the Applicable Term Rate shall be the basis
points number set forth in the above grid otherwise in accordance
with the terms hereof plus an additional 25 basis points.

	 	E.	 	The definition of “Commitment” as set forth in
Section 1.01 of the Credit Agreement is hereby superseded and replaced in
its entirety and amended to read as follows:

“Commitment” means, with respect to each Lender, the
commitment of such Lender to make Revolving Loans and to acquire
participations in Letters of Credit hereunder, expressed as an
amount representing the maximum aggregate amount of such Lender’s
Revolving Credit Exposure hereunder, as such commitment may be (a)
reduced from time to time pursuant to Section 2.09 and (b) reduced
or increased from time to time pursuant to assignments by or to such
Lender pursuant to Section 9.04. The amount of each Lender’s
Commitment is set forth on Schedule 2.01, or in the Assignment and
Assumption pursuant to which such Lender shall have assumed its
Commitment, as applicable. As of the effective date of the
Amendment No. 6, the aggregate amount of the Lenders’ Commitments is
$15,000,000.

	 	F.	 	Schedule 2.01 of the Credit Agreement is hereby
superseded and replaced in its entirety with the Schedule 2.01 attached to
this Amendment.
	 
	 	G.	 	Section 5.01 of the Credit Agreement is hereby amended
so that: (i) in subsection (f) thereof the word “and” at the end of such
subsection is hereby deleted, (ii) in subsection (g) thereof the period
“.” at the end of such subsection is hereby deleted and replaced with “;
and” and (iii) the following subsections are added thereto in the
appropriate alphabetical order:

	 	(h)	 	During the Forbearance Period (as defined in
Amendment No. 6), within twenty (20) days after the close of
each calendar month end (February 3, 2007 and March 3, 2007),
Borrower’s internally prepared financial statements for such
month, including balance sheet and related statements of
operations and cash flows in form historically prepared by
Borrower; and
	 
	 	(i)	 	During the Forbearance Period (as defined in
Amendment No. 6), on a weekly basis, the Borrower’s cash
forecast, in form historically prepared by Borrower.

	 	3.	 	Representations. The Borrower hereby represents and warrants to the Lenders and
the Agent that: (i) the covenants, representations and warranties set forth in the Credit
Agreement are true and correct on and as of the date of execution hereof as if made on and
as of said date and as if each reference therein to the Credit Agreement were a reference
to the Credit Agreement as amended by this Amendment, except as and to the extent disclosed
to the Lenders by letter dated this date; (ii) except the Existing Event of Default (as
hereinafter defined), no Default or Event of Default specified in the Credit Agreement has
occurred and is continuing, (iii) since the

 

 

3

	 	 	 	date of the Credit Agreement, there has been no material adverse change in the financial
condition or business operations of the Borrower which has not been disclosed to Lenders;
(iv) the making and performance by the Borrower of this Amendment have been duly authorized
by all necessary corporate action, and do not, and will not, (a) contravene the Borrower’s
certificate of incorporation or by-laws, (b) violate any law, including without limitation
the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended,
or any rule, regulation (including Regulations T, U or X of the Board of Governors of the
Federal Reserve System) order, writ, judgment, injunction, decree, determination or award,
and (c) conflict with or result in the breach of, or constitute a default under, any
material contract, loan agreement, indenture, note, mortgage, deed of trust or any other
material instrument or agreement binding on the Borrower or any Subsidiary or any of their
properties or result in or require the creation or imposition of any lien upon or with
respect to any of their properties; (v) this Amendment has been duly executed and delivered
by the Borrower and is the legal, valid and binding obligation of the Borrower enforceable
against the Borrower in accordance with its terms; (vi) no authorization or approval or
other action by, and no notice to or filing with, any governmental authority or regulatory
body or any other third party is required for (a) the due execution, delivery or performance
by the Borrower of this Amendment or any other agreement or document related hereto or
contemplated hereby to which the Borrower is or is to be a party or otherwise bound, or (b)
the exercise by the Agent or any Lender of its rights under the Credit Agreement as modified
by this Amendment; and (vii) the security interests and charges granted by the Borrower and
its Subsidiary pursuant to the Security Agreements continue to constitute valid, binding and
enforceable, first in priority Liens on the Collateral, subject only to Liens permitted
under the terms of the Security Agreements and Credit Agreement.
	 
	 	4.	 	Forbearance of Existing Covenant Violations. The Borrower has advised the
Agent that it is not in compliance with the financial covenants set forth in subsections
(a) and (b) of Section 6.09 of the Credit Agreement as amended for the fiscal quarter
ending December 31, 2006 (the “Existing Event of Default”).

               A. Forbearance Period. Subject to satisfaction of the conditions in Section 5 hereof,
Lenders and Agent shall forbear from exercising their respective rights and remedies under the
Credit Agreement and Loan Documents arising from the Existing Event of Default from the effective
date of this Amendment until the Forbearance Termination Date (the “Forbearance Period”).
“Forbearance Termination Date” means the date which is the earliest of (i) 5:01 p.m. (New York
time) on March 23, 2007; or (ii) the date on which the Required Lenders elect to terminate the
Forbearance Period upon the occurrence of an event described in Section 4(B) hereof, or (iii) the
date on which any subsequent amendments to the Credit Agreement, relating to the Existing Event of
Default or this Agreement, become effective.

               B. Optional Termination. Required Lenders may direct Agent to terminate the
Forbearance Period upon the occurrence of any of the following events:

                    (i) The breach by the Borrower of any of the terms of this Amendment; or

                    (ii) The occurrence of an event or condition that constitutes a Default under the Loan
Documents, other than the Existing Event of Default or a continuation thereof.

               C. Effect of Forbearance Termination. On termination of the Forbearance Period (other
than a termination occasioned by clause (iii) of the definition of “Forbearance Termination Date”
herein), Lenders and Agent may exercise their respective rights and remedies under the Loan
Documents and this Agreement without the requirement of any further notice or other action by
Lenders or Agent. Borrower agrees not to contest any such lawful exercise by Lenders and/or Agent
of their respective rights and remedies under the Loan Documents. All of Lenders’ and Agent’s
rights and remedies, whether arising hereunder, under the Loan Documents, or otherwise, are
cumulative.

 

 

4

               D. Borrowings During the Forbearance Period. During the Forbearance Period,
notwithstanding the Existing Event of Default or a continuation thereof, each Lender agrees
severally (not jointly) to continue to make Revolving Loans to the Borrower, otherwise in
accordance with the terms and conditions of the Credit Agreement.

	 	5.	 	Conditions of Effectiveness. The effectiveness of each and all of the
modifications contained in the Amendment and the Forbearance is subject to the
satisfaction, in form and substance satisfactory to the Agent, of each of the following
conditions precedent:

               A. Agent shall have received 4 duplicate original counterparts of this Amendment executed by
Borrower, Lenders and Agent.

               B. Agent shall have received a secretarial certificate of the Borrower in a form reasonably
acceptable to Agent, certifying that the June 29, 2006 secretary’s certificate of Borrower is true
and correct as of the date of execution hereof, and the authorizing resolutions and the incumbency
of officers of the Borrower remain in full force and effect.

               C. The representation and warranties contained in Section 3 hereof and in the Credit Agreement
shall be true, correct and complete as of the effective date of this Amendment as though made on
such date.

               D. The Agent shall have received $50,000.00 from Borrower for the benefit of the Lenders on a
pro rata basis in consideration of the modifications set forth herein.

     6. Reference to and Effect on Loan Documents.

               A. Upon the effectiveness hereof, each reference in the Credit Agreement to “this Agreement,”
“hereunder,’ “hereof,” “herein,” or words of like import, and each reference in the other Loan
Documents to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended
hereby.

               B. Except as specifically amended above, the Credit Agreement, and all other Loan Documents
shall remain in full force and effect and are hereby ratified and confirmed.

               C. The amendments set forth in Section 2 and the Forbearance set forth in Section 4 hereto are
only applicable and shall only be effective in the specific instance and for the specific purpose
for which made, are expressly limited to the facts and circumstances referred to herein, and shall
not operate as (i) a waiver of, or consent to non-compliance with any provision of the Credit
Agreement or any other Loan Document, including specifically, but without limitation, any further
advances or loans made by the Borrower in contravention of the terms of the Credit Agreement, (ii)
a waiver or modification of any right, power or remedy of either the Agent or any Lender under the
Credit Agreement or any Loan Document, or (iii) a waiver or modification of, or consent to, any
Event of Default or Default under the Credit Agreement or any Loan Document.

	 	7.	 	Costs and Expenses. Borrower agrees to pay on demand all costs and expenses of
Agent in connection with the preparation, execution and delivery of this Amendment and the
other documents related hereto, including the fees and out-of-pocket expenses of counsel
for Agent.
	 
	 	8.	 	Waiver and Release. As a material inducement for, and in consideration of, the
Lenders’ and Agent’s agreements herein, the Borrower, by signing this Amendment, hereby
forever waives, releases, remises and discharges any and all rights to assert any and all
defenses to and setoffs, counterclaims, and claims of every kind against any Lenders or
Agent, its respective agents, servants, employees, officers, directors and attorneys now
existing or arising hereafter on the

 

 

5

	 	 	 	basis of actions or events occurring on or prior to the date hereof. Each of the parties
signing this agreement confirms that the foregoing waiver and release is informed and freely
given.
	 
	 	9.	 	Representation by Counsel. Borrower hereby represents and warrants to the
Lenders and Agent that throughout the negotiations, preparation and execution of this
Amendment and the closing hereunder, Borrower has been represented by legal counsel of its
own choosing and that this Amendment was entered into by the free will of Borrower and
pursuant to arm’s-length negotiations.
	 
	 	10.	 	Governing Law. This Amendment shall be governed and construed in accordance
with the laws of the State of New York without regard to any conflicts-of-laws rules which
would require the application of the laws of any other jurisdiction.
	 
	 	11.	 	Headings. Section headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment for any
other purpose.
	 
	 	12.	 	Execution in Counterparts. This Amendment may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of which when
so executed and delivered shall be deemed to be an original and all or which taken together
shall constitute but one and the same instrument.

[Signature Page Follows]

 

 

          IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their
respective representatives thereunto duly authorized as of the date first above written.

	 	 	 	 	 	 	 
	 	 	ULTRALIFE BATTERIES, INC.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert W. Fishback	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Robert W. Fishback	 	 
	 

	 	Title:
	 	Vice President of Finance and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	ADMINISTRATIVE AGENT:	 	JPMORGAN CHASE BANK, N.A., as Agent
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas C. Strasenburgh	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas C. Strasenburgh	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	LENDERS:	 	JPMORGAN CHASE BANK, N.A.
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Thomas C. Strasenburgh	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Thomas C. Strasenburgh	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	MANUFACTURERS AND TRADERS TRUST COMPANY
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jon Fogle	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Jon Fogle	 	 
	 

	 	Title:
	 	Vice President	 	 

 

 

SCHEDULE 2.01

Commitments as of February 14, 2007

	 	 	 	 	 	 	 	 	 
	Commitments
to Make Revolving Loans — $ 15,000,000
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	JPMorgan Chase Bank, N.A.
	 	$	9,000,000	 	 	 	60	%
	Manufacturers and Traders Trust Company
	 	$	6,000,000	 	 	 	40	%
	 
	 	 	 	 	 	 	 	 
	Term Loan
Commitments — $ 4,833,332.33
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	JPMorgan Chase Bank, N.A.
	 	$	2,899,999.40	 	 	 	60	%
	Manufacturers and Traders Trust Company
	 	$	1,933,332.93	 	 	 	40	%EX-4.16

 

Exhibit 4.16

FIFTH SUPPLEMENTAL INDENTURE

     THIS FIFTH SUPPLEMENTAL INDENTURE is entered into as of April 28, 2005, by and between
Developers Diversified Realty Corporation, an Ohio corporation (the “Company”), and US Bank Trust
National Association (the “Trustee”), a national banking association organized and existing under
the laws of the United States, as successor trustee to National City Bank (“NCB”).

     WHEREAS, the Company and NCB entered into the Indenture dated as of May 1, 1994 (as
supplemented by a First Supplemental Indenture dated as of May 10, 1995, by a Second Supplemental
Indenture dated July 18, 2003, by a Third Supplemental Indenture dated January 23, 2004, and by a
Fourth Supplemental Indenture dated April 22, 2004 the “Indenture”), relating to the Company’s
senior debt securities;

     WHEREAS, the Trustee is the successor to NCB’s corporate trust business and, therefore, is the
successor trustee under the Indenture pursuant to Section 610 of the Indenture;

     WHEREAS, the Company has made a request to the Trustee that the Trustee join with it, in
accordance with Section 901 of the Indenture, in the execution of this Fifth Supplemental Indenture
to include the Company’s $200,000,000 principal amount of 5.0% Notes Due 2010 and the Company’s
$200,000,000 principal amount of 5.5% Notes Due 2015 in the definition of Designated Securities
such that the covenant in Section 1015 of the Indenture will inure to their benefit;

     WHEREAS, the Company and the Trustee are authorized to enter into this Fifth Supplemental
Indenture; and

     NOW, THEREFORE, the Company and the Trustee agree as follows:

          Section 1. Relation to Indenture. This Fifth Supplemental Indenture
supplements the Indenture and shall be a part and subject to all the terms thereof. Except
as supplemented hereby, the Indenture and the Securities issued thereunder shall continue
in full force and effect.

          Section 2. Capitalized Terms. Capitalized terms used herein and not
otherwise defined herein are used as defined in the Indenture.

          Section 3. Definitions. The definition of “Designated Securities” is hereby
amended in its entirety as follows:

     “Designated Securities” means the Company’s $300,000,000 principal amount of
4.625% Notes Due 2010, the Company’s $275,000,000 principal amount of 3.875% Notes
Due 2009, the Company’s $250,000,000 principal amount of 5.25% Notes Due 2011, the
Company’s $200,000,000 principal amount of 5.0% Notes Due 2010 and the Company’s
$200,000,000 principal amount of 5.5% Notes Due 2015.

 

 

          Section 4. Confirmation of Successor Trustee. The parties hereby confirm
that the Trustee is the successor to NCB pursuant to Section 610 of the Indenture.

          Section 5. Counterparts. This Fifth Supplemental Indenture may be executed
in counterparts, each of which shall be deemed an original, but all of which shall together
constitute one and the same instrument.

          Section 6. Governing Law. THIS FIFTH SUPPLEMENTAL INDENTURE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF OHIO (WITHOUT
GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF).

          Section 7. Concerning the Trustee. The Trustee shall not be responsible for
any recital herein (other than the fourth recital as it appears as it applies to the
Trustee) as such recitals shall be taken as statements of the Company, or the validity of
the execution by the Company of this Fifth Supplemental Indenture. The Trustee makes no
representations as to the validity or sufficiency of this Fifth Supplemental Indenture.

-2-

 

     IN WITNESS WHEREOF, the parties hereto have caused this Indenture to be duly executed, and
their respective corporate seals to be hereunto affixed and attested, all as of the day and year
first above written.

	 	 	 	 	 	 
	Attest:  	 	DEVELOPERS DIVERSIFIED REALTY CORPORATION

 	 
	/s/ Joan U. Allgood 	 	By:  	/s/ William H. Schafer
 	 
	Name: Joan U. Allgood
 	 	 	Name:  	William H. Schafer 	 
	Title: Senior Vice President of Corporate
Affairs and Governance and Secretary
 	 	 	Title:  	Senior Vice President and Chief

Financial Officer 	 
	 

	 	 	 	 	 	 
	Attest: 	 	US BANK TRUST NATIONAL ASSOCIATION, as Trustee

 	 
	/s/ Beverly A. Freeney 	 	By:  	/s/ Ignazio Tamburello
 	 
	Name: Beverly A. Freeney 	 	 	Name:  	Ignazio Tamburello 	 
	Title: Vice President 	 	 	Title:  	Assistant Vice President 	 
	 

-3-

 

	 	 	 	 	 	 	 
	STATE OF OHIO

	 	 	)	 	 	 
	 

	 	 	)	 	 	SS:
	COUNTY OF CUYAHOGA

	 	 	)	 	 	 

          On the 28th day of April, 2005, before me personally came William H. Schafer, to me known,
who, being by me duly sworn, did depose and say that he resides at Beachwood, Ohio, that he is the
Senior Vice President and Chief Financial Officer of DEVELOPERS DIVERSIFIED REALTY CORPORATION, one
of the corporations described in and which executed the foregoing instrument and that he signed his
name thereto by authority of the Board of Directors of said corporation.

[Notarial Seal]

	 	 	 	 	 
	 	 	 
	 	                                                  /s/ Tammy Battler
 	 
	 	Notary Public 	 
	 	COMMISSION EXPIRES 	 
	 

-4-

 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)

)	 	 	SS:
	COUNTY OF QUEENS

	 	 	)	 	 	 

     On the 28th day of April, 2005, before me personally came, to me known, who, being by me duly
sworn, did depose and say that he resides at New York, New York, that he is the A.V.P. of US BANK
TRUST NATIONAL ASSOCIATION, one of the corporations described in and which executed the foregoing
instrument and that he signed his name thereto by authority of the Board of Directors of said
corporation.

[Notarial Seal]

	 	 	 	 	 
	 	 	 
	 	                                                  /s/ Janet P. O’Hara
 	 
	 	Notary Public 	 
	 	COMMISSION EXPIRES 	 
	 

-5-

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