Document:

ex10_30.htm

Exhibit 10.30

AMENDMENT NO. 8 TO CREDIT AGREEMENT

 

THIS AMENDMENT NO. 8 (this “Amendment No. 8”) is entered into as of May 16, 2013, by and among SMP MOTOR PRODUCTS LTD., a corporation amalgamated under the laws of Canada (“Borrower”), STANDARD MOTOR PRODUCTS, INC., a New York corporation (“SMP” and together with Borrower, each individually a “Credit Party”, and collectively, “Credit Parties”), HSBC BANK CANADA (“HSBC”), the lenders who are party from time to time to the Credit Agreement including HSBC (“Lenders”), GE CANADA FINANCE HOLDING COMPANY, a Nova Scotia unlimited liability company, for itself, as Lender, and in its capacity as agent for the Lenders (“Agent”), and GE CAPITAL MARKETS, INC., as Lead Arranger and Bookrunner.

 

BACKGROUND

 

Credit Parties, Agent and Lenders are parties to a Credit Agreement dated as of December 29, 2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which Agent and Lenders provide Borrower with certain financial accommodations.

 

Borrower has requested that Agent and Lenders make certain amendments to the Loan Agreement, and Agent and Lenders are willing to do so on the terms and conditions hereafter set forth.

 

NOW, THEREFORE, in consideration of any loan or advance or grant of credit heretofore or hereafter made to or for the account of Borrower by Agent and Lenders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Definitions.  All capitalized terms not otherwise defined herein shall have the meanings given to them in the Loan Agreement.

 

2.             Amendment to Loan Agreement.  Subject to satisfaction of the conditions precedent set forth in Section 4 below, the Loan Agreement is hereby amended as follows:

 

(a)           Annex A to the Loan Agreement is hereby amended as follows:

 

(i)       By adding the following defined terms in appropriate alphabetical order:

 

“Amendment No. 8” means that certain Amendment No. 8 to Credit Agreement dated as of May 16, 2013 by and among Credit Parties, Agent, and Lenders.

 

“Amendment No. 8 Effective Date” means the date upon which the conditions precedent contained in Section 4 of Amendment No. 8 have been satisfied.

 

“Amendment No. 8 Fee Letter” means that certain fee letter, dated May 16, 2013 by and among Agent and Credit Parties.

 

  

  

  

 

“Initial Amortizing Availability” shall mean (x) 50% of the Fair Market Value of any Eligible Real Estate owned by Borrower as of the Amendment No. 8 Effective Date, plus (y) 85% of the Net Orderly Liquidation Value of any Eligible Equipment owned by Borrower as of the Amendment No. 8 Effective Date, determined by reference to an appraisal conducted after the Amendment No. 8 Effective Date with respect thereto which shall be in form and substance and prepared by appraisers reasonably satisfactory to Agent.  Initial Amortizing Availability shall not be available until Agent shall have received the appraisals referred to above and all other documents required pursuant to the definition of Eligible Real Estate and Eligible Equipment owned by Borrower as of the Amendment No. 8 Effective Date.

 

“Permitted Discretion” means a determination made in the exercise of reasonable (from the perspective of a secured asset-based lender) business judgment.

 

(ii)       By amending the following definitions as set forth below:

 

(A)     The term “Commitment Termination Date” is amended by deleting the text “2015” appearing therein and inserting the text “2018” in place thereof.

 

(B)      The definition of “Borrowing Base” is amended by deleting the words “reasonable credit judgment” contained in the last paragraph of such section and inserting the words “Permitted Discretion” in place thereof.

 

(C)      The definition of “Cores NOLV Rate” is amended by adding the words “in its Permitted Discretion” after the word “Agent” in such definition.

 

(D)      The definition of “Eligible Real Estate” is amended by (x) deleting the words “sole discretion” contained in clause (b)(x) of such definition and inserting the words “Permitted Discretion” in place thereof and (y) amending the introductory language in clause (a) of such definition to provide as follows:

 

“Mortgages covering all of such real estate (including without limitation any amendment thereto requested by Agent pursuant to Section 5.11 of the US Credit Agreement) together with”

 

(E)      The definition of “Raw Materials NOLV Rate” is amended by adding the words “in its Permitted Discretion” after the word “Agent” in such definition.

 

(F)      The definition of “Reserves” is amended by (x) deleting the words “reasonable credit judgment” contained in clause (f) of such definition and inserting the words “Permitted Discretion” in place thereof and (y) deleting the words “credit judgement” contained in the last sentence of such definition and inserting the words “business judgment” in place thereof.

 

(iii)      By amending the following defined terms in their entirety to provide as follows:

 

  

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“Additional Amortizing Availability” means (i) up to the lesser of (x) US$750,000 or (y) the sum of (a) as to Eligible Real Estate purchased by Borrower after the Amendment No. 8 Effective Date, fifty percent (50%) of the Fair Market Value (or the Equivalent Amount in Dollars) of such Eligible Real Estate and (b) as to Eligible Equipment purchased by Borrower after the Amendment No. 8 Effective Date, 85% of the Net Orderly Liquidation Value (or the Equivalent Amount in Dollars) of such Eligible Equipment as set forth in the most recent appraisal prepared by an independent appraisal firm acceptable to Agent in its Permitted Discretion; provided, however, that Borrowing Availability arising solely under this clause (i)(y) shall not exceed 50% of the total Borrowing Availability less (ii) one-twentieth of the amount determined under clause (i) for each full Fiscal Quarter occurring after the purchase of such Eligible Real Estate or Eligible Equipment, as the case may be.

 

“Amortizing Availability” means (A) the Initial Amortizing Availability minus the product of one-twenty fourth of the amount determined under the definition of Initial Amortizing Availability and the number of full Fiscal Quarters that have occurred since the Amendment No. 8 Effective Date, plus (B) the Additional Amortizing Availability, minus (C) an amount equal to (i) 50% of the Fair Market Value of any Eligible Real Estate as of the Amendment No. 8 Effective Date or the date it is purchased by Borrower or 85% of the Net Orderly Liquidation Value of any Eligible Equipment as of the Amendment No. 8 Effective Date or the date it is purchased by Borrower, which is the basis of Amortizing Availability, and which is subject to a loss, sale, destruction or other disposition, less (ii) the product of (I) (x) in the case of Eligible Real Estate or Eligible Equipment included in Amortizing Availability pursuant to clause (A) above, one-twenty fourth of the amount determined under the preceding clause (i) or (y) in the case of Eligible Real Estate or Eligible Equipment included in Amortizing Availability pursuant to clause (B) above, one-twentieth of the amount determined under the preceding clause (i), and (II) the number of full Fiscal Quarters that have occurred since the Amendment No. 8 Effective Date or the purchase of such Eligible Real Estate or Eligible Equipment to the date of such loss, sale, destruction or other disposition, as the case may be.  In no event, at any time, shall the amount included in Amortizing Availability based upon the Fair Market Value of Eligible Real Estate exceed 50% of such Amortizing Availability. Notwithstanding the foregoing, in the event that the Reloading Accordion option is exercised under the US Credit Agreement, (a) clause (A) of the definition of “Amortizing Availability” shall mean the sum of (i) 50% of the Fair Market Value of the Eligible Real Estate as set forth on the Reloading Appraisal, plus (ii) 85% of the Net Orderly Liquidation Value of the Eligible Equipment as set forth on the Reloading Appraisal, minus (iii) one-twentieth of the sum of subclauses (i) and (ii) of this sentence commencing with the Fiscal Quarter ending immediately following the effective date of the Reloading Accordion and (b) subclause (C)(ii) of the definition of “Amortizing Availability” shall mean the product of one-twentieth of the amount determined under the subclause (C)(i) and the number of full Fiscal Quarters that have occurred since the effective date of the Reloading Appraisal or the purchase of such Eligible Real Estate or Eligible Equipment to the date of such loss, sale, destruction or other disposition, as the case may be.

 

  

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(b)           Section 1.1(a) is hereby amended by deleting the words “reasonable credit judgment” contained in the sixth sentence of such section and inserting the words “Permitted Discretion” in place thereof.

 

(c)           Section 1.9(a) of the Loan Agreement is amended by adding the following sentence to the end of such section:

 

“Borrower shall pay the Fees specified in the Amendment No. 8 Fee Letter to be payable by the Borrower at the times specified for payment therein.”

 

(d)           Section 3.17(b) of the Loan Agreement is amended by deleting such section in its entirety and inserting “Intentionally Omitted.” in place thereof.

 

(e)           Section 5.1 is hereby amended by adding the following clause (l) to the end of Section 5.1:

 

“(l) the references to “Mortgages”, “Obligations” and “this Agreement” in Section 5.11 therein shall be read as references to “Mortgages”, “Obligations” and “this Agreement” as defined herein.”

 

(f)           Annex H of the Loan Agreement is amended by deleting the second to last line of such Annex and inserting the following in place thereof:

 

“Account No.:                                           ”

 

(g)           Annex I of the Loan Agreement is amended in its entirety to read as set forth on Annex I attached hereto.

 

(h)           Annex J of the Loan Agreement is amended in its entirety to read as set forth on Annex J attached hereto.

 

3.             Joinder.  HSBC has agreed to provide a $666,666.67 Commitment as of the Amendment No. 8 Effective Date.  Upon the Amendment No. 8 Effective Date, Agent, Lenders, Credit Parties and HSBC hereby agree that HSBC shall thereupon become a “Lender” party to the Loan Agreement, and shall thereafter be bound by and derive all the benefits of and assume all the obligations of a Lender under all of the terms and conditions which apply to a Lender under the Loan Agreement. Each Credit Party hereby acknowledges that it shall have a direct obligation to HSBC pursuant to the terms of the Loan Agreement.   Upon the Amendment No. 8 Effective Date, each of the Lenders (including HSBC) shall hold Commitments as set forth on Annex J to the Loan Agreement.

 

4.             Conditions of Effectiveness.  This Amendment No. 8 shall become effective upon satisfaction of the following conditions precedent:

 

  

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(a)           Agent shall have received four (4) copies (or such fewer copies as Agent may request) of this Amendment No. 8 executed by Credit Parties and Lenders,

 

(b)           Agent shall have received a true and accurate copy of the Amendment No. 3 to the US Credit Agreement and evidence that the conditions to the effectiveness thereof shall have been met;

 

(c)           Agent shall have received two (2) fully executed copies of the Amendment No. 8 Fee Letter and payment of the fees required to be paid by Borrower on the Amendment No. 8 Effective Date pursuant thereto;

 

(d)           Agent shall have received one (1) executed Term Note (as such term is defined as of the Amendment No. 5 Effective Date) in favor of HSBC in form and substance satisfactory to Agent; and

 

(e)           Agent shall have received such other certificates, instruments, documents, agreements and opinion of counsel as may be required by Agent or its counsel, each of which shall be in form and substance satisfactory to Agent and its counsel.

 

5.             Representations and Warranties.  Each Credit Party hereby represents and warrants as follows:

 

(a)           this Amendment No. 8 and the Loan Agreement, as amended hereby, constitute legal, valid and binding obligations of Credit Parties and are enforceable against Credit Parties in accordance with their respective terms;

 

(b)           the representations and warranties contained in the Loan Agreement are true, correct and complete in all material respects on and as of the date hereof to the same extent as though made on and as of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties were true, correct and complete in all material respects on and as of such earlier date; provided that, if a representation and warranty is qualified as to materiality, the materiality qualifier set forth above shall be disregarded with respect to such representation and warranty for purposes of this certification;

 

(c)           no Event of Default or Default has occurred and is continuing or would exist after giving effect to this Amendment No. 8; and

 

(d)           no Credit Party has any defence, counterclaim or offset with respect to the Loan Agreement.

 

6.             Effect on the Loan Agreement.

 

(a)           Upon the effectiveness of Section 2 hereof, each reference in the Loan Agreement to “this Agreement”, “hereunder,” “hereof,” “herein” or words of like import shall mean and be referenced to the Loan Agreement as amended hereby.

 

  

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(b)           Except as specifically amended herein, the Loan Agreement, and all other documents, instruments and agreements executed and/or delivered in connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed.

 

(c)           The execution, delivery and effectiveness of this Amendment No. 8 shall not operate as a waiver of any right, power or remedy of Agent or Lenders, nor constitute a waiver of any provision of the Loan Agreement, or any other documents, instruments or agreements executed and/or delivered under or in connection therewith.

 

7.             Governing Law.  This Amendment No. 8 shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and shall be governed by and construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

 

8.             Headings.  Section headings in this Amendment No. 8 are included herein for convenience of reference only and shall not constitute a part of this Amendment No. 8 for any other purpose.

 

9.             Counterparts; Facsimile.  This Amendment No. 8 may be executed by the parties hereto in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same agreement.  Any signature delivered by a party by PDF or facsimile transmission shall be deemed to be an original signature hereto.

 

[SIGNATURE PAGE FOLLOWS]

 

  

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IN WITNESS WHEREOF, this Amendment No. 8 has been duly executed as of the day and year first written above.

 

	 	
SMP MOTOR PRODUCTS LTD.

	 	  
	 	
By:

	  
	 	 	Name:
	 	  	
Title:

 

The following Persons are signatories to this Amendment No. 8 in their capacity as Credit Parties and not as Borrower.

 

	 	
STANDARD MOTOR PRODUCTS, INC.

	 	  
	 	
By:

	  
	 	  	
Name:

	 	  	
Title:

 

[Additional Signature Page to Follow]

 

Signature Page to Amendment No. 8 to SMP Canadian Credit Agreement

 

  

 

  

	 	
GE CANADA FINANCE HOLDING 

COMPANY, as Agent and Lender

	 	  
	 	
By:

	  
	 	 	Name:
	 	  	
Title:

 

	 	
BANK OF AMERICA, N.A., by its Canada 

Branch as Co-Syndication and Lender

	 	  
	 	
By:

	  
	 	 	Name:
	 	  	
Title:

 

	 	
JPMORGAN CHASE BANK, N.A., Toronto 

Branch

	 	  
	 	
By:

	  
	 	 	Name:
	 	  	
Title:

[Additional Signature Page to Follow]

 

Signature Page to Amendment No. 8 to SMP Canadian Credit Agreement

 

  

 

  

 

	 	
WELLS FARGO CAPITAL FINANCE 

CORPORATION CANADA

	 	  
	 	
By:

	  
	 	 	Name:
	 	  	
Title:

 

Signature Page to Amendment No. 8 to SMP Canadian Credit Agreement

 

  

 

  

 

	 	
HSBC BANK CANADA

	 	  
	 	
By:

	  
	 	 	Name:
	 	  	
Title:

 

Signature Page to Amendment No. 8 to SMP Canadian Credit Agreement

 

  

 

  

 

ANNEX I (Section 11.10)

to

CREDIT AGREEMENT

 

NOTICE ADDRESSES

 

(A)           If to Agent or GE Capital, at:

 

GE Canada Finance Holding Company

c/o GE Commercial Finance

201 Merritt 7-3rd Floor

Norwalk, CT 06856-5201

Attention:            Account Manager

Telecopier:          (203) 956-4240

Telephone:          (203) 956-3640

General Electric Capital Corporation

201 Merritt 7 – 3rd Floor

Norwalk, CT  06856-5201

Attention:            Corporate Counsel – Corporate Financial Services

Telecopier:          (203) 956-4001

Telephone:          (203) 956-4383

(B)           If to Borrower, at:

 

SMP Motor Products Ltd.

c/o Standard Motor Products, Inc.

37-18 Northern Blvd.

Long Island City, NY  11101

Attention:            Treasurer

Telecopier:          (718) 784-3284

Telephone:          (718) 392-0200

with copies to:

SMP Motor Products Ltd.

c/o Standard Motor Products, Inc.

37-18 Northern Blvd.

Long Island City, NY  11101

Attention:            Vice President, General Counsel and Secretary

Telecopier:          (718) 784-3284

Telephone:          (718) 392-0200

 

Annex I - 1

 

  

 

  

(B)           If to a Lender, at the corresponding address below:

 

HSBC Bank Canada

1 HSBC Center

Buffalo, New York 14203

Attention:            Eric Nicotera

Facsimile:             (917) 229-4228

Telephone:          (716) 841-5712

JPMorgan Chase Bank, N.A., Toronto Branch

277 Park Avenue, 22nd Floor

NY1-L275

New York, New York 10172

Attention:            Nisha Gupta

Facsimile:             (646) 534-2274

Telephone:          (212) 270-0558

Wells Fargo Capital Finance Corporation Canada

2450 Colorado Avenue, Suite 300W

Santa Monica, California 90404

Attention:            Nima Rassouli

Facsimile:             (877) 302-2416

Telephone:          (310) 453-8293

Bank of America, N.A., Canada Branch

225 Franklin Street

Boston, Massachusetts 02110

Attention:            Matthew O’Keefe

Facsimile:             (312) 453-4415

Telephone:          (614) 346-1196

 

Annex I - 2

 

  

 

  

 

ANNEX J (from Annex A - Commitments definition)

 

to

 

CREDIT AGREEMENT

	
Commitments

	
Lenders

	  	  
	
$1,633,333.33

	
Bank of America, N.A., Canada Branch

	  	  
	
$2,337,500.00

	
Wells Fargo Capital Finance Corporation Canada

	  	  
	
$958,333.33

	
JPMorgan Chase Bank, N.A., Toronto Branch

	  	  
	
$666,666.67

	
HSBC Bank Canada

	  	  
	
$4,404,166.67

	
GE Canada Finance Holding Company.

Annex J - 1ex10_1.htm

 

	May 17, 2013 	Exhibit 10.1

 

Ann Mayberry-French

730 S. Clark St., Apt. 2208

Chicago, IL  60605

Dear Ann:

This letter is written to confirm our conversation regarding the separation of your employment with Merge Healthcare Incorporated (“Merge Healthcare”).  Your last day of employment with Merge Healthcare was May 14, 2013.

You will receive your final regular pay check on 5/31/2013.  This pay check will include your base salary and all unused and accrued paid time off through 5/14/2013, less any applicable deductions for benefits, withholding and taxes.

 

Severance:  In order to receive the severance payments and other benefits described below, you must (a) return all Company property and equipment; and (b) sign a release form, which is also enclosed for your review and signature.  Please read the release form carefully.  You should consult with an attorney regarding the release.  You may take up to 21 days from the date of this letter to return the signed release form to us.  You must sign and return the release form within that 21-day period to be entitled to any severance payments or other benefits.  You will also be given 7 days after you sign and return the release to revoke it; if you do not, it will become effective on the 8th day after we receive it.

If you sign and return, and do not revoke, your release form, and if you do not breach the terms of the release or any other continuing contractual obligation that you have to Merge Healthcare, you will receive an amount equal to your current annual salary ($190,000.00 per annum) in 24 bi-monthly payments ($7,916.66 per payment), less applicable withholding and taxes, as your cash severance payments.  These payments will be paid in accordance with Merge Healthcare’s regular payroll schedule, beginning on the first payroll date after the date on which your release becomes effective.

In addition, as a further severance benefit, Merge Healthcare will reimburse you, for each of the first 12 months after the effective date of your release for the cost of any continuation healthcare insurance benefits that you and your dependents elect to receive under the Consolidated Omnibus Budget Reconciliation Act (“COBRA”), as amended; provided, however, that such reimbursement obligation  shall terminate automatically upon your commencement of other employment that permits you and your dependants to participate in an alternative health insurance plan.

Benefits:  Please refer to the attached “Separation Information” handout for details regarding your participation in Merge Healthcare’s benefits programs, including your continuing rights under the Merge Healthcare 2005 Equity Incentive Plan with respect to stock options that you have been previously granted.  As of May 14, 2013, you had vested previously-granted options with respect to 137,500  shares of Merge Healthcare’s common stock.  Previously-granted options with respect to 12,500  shares of Merge Healthcare’s common stock were not vested as of your last date of employment and were automatically cancelled.  You may not exercise those cancelled options in the future.

 

200 E. Randolph Street, 24th Floor  |  Chicago, IL  60601  |  P: 312.540.6648  |  F: 312.565.6870

 

 

  

  

  

 

Return of Company Property:  As required by our Technology and Confidential Information Policy, you are required to return all Merge Healthcare property immediately.  This will include but is not limited to customer lists, software, documents, keys of any kind (such as key fob, office, file cabinets, building or desk keys), office passes, parking passes, credit cards and all equipment (such as laptop, power supplies, laptop batteries, laptop bag and cell phone) that you have received from Merge Healthcare. You may return this property either in person, by hand-delivery, or via Federal Express.  For FedEx returns, please package the equipment to ensure safe delivery and use Merge Healthcare’s FedEx number previously provided to you. This number allows you to return the property at no cost to you.  Such FedEx package should be sent to:

Merge Healthcare

Attention:  Alan Thornberry

900 Walnut Ridge Drive

Hartland, WI 53029

In the event that you do not return all Merge Healthcare property, you will not receive your severance payments or other benefits and we reserve the right to pursue all appropriate remedies allowed by law.

Policies: Please be aware that from your final day and for the 90 day period thereafter, you will continue to be bound by and subject to the Merge Healthcare Insider Trading Policy.  Also, you will continue to be bound by your non-disclosure, non-competition and/or non-solicitation agreements, even though your employment has terminated, to the extent provided therein.

On behalf of Merge Healthcare, thank you for your service and contributions.  We wish you success in your future endeavours.

Sincerely,

MERGE HEALTHCARE INCORPORATED

 

	/s/ Justin C. Dearborn	 

 

Justin Dearborn

CEO, Merge DNA

Enclosure:  Release Agreement

	 

 

Acknowledged and agreed:

 

	/s/	Ann Mayberry-French	 
	Ann Mayberry-French	 

 

 

200 E. Randolph Street, 24th Floor  |  Chicago, IL  60601  |  P: 312.540.6648  |  F: 312.565.6870

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