Document:

EX-10.1

 Exhibit 10.1 

Execution Version

Second Amendment to Loan and Servicing Agreement 

This Second Amendment (the “Amendment”), dated as of March 4, 2022, by and among FS CREIT Finance MM-1 LLC (the “Borrower”), Massachusetts Mutual Life Insurance Company and C.M. Life Insurance Company (collectively, the “Initial Lenders” and each, an “Initial
Lender”), the other Lenders party hereto, Massachusetts Mutual Life Insurance Company, as the Facility Servicer (the “Facility Servicer”), FS MM-1 LLC, as the Portfolio Asset Servicer
(the “Portfolio Asset Servicer”), and, to the extent set forth herein, FS CREIT Finance Holdings LLC, which amends that certain Loan and Servicing Agreement dated as of September 20, 2021 (as amended by that certain First
Amendment to Loan and Servicing Agreement, dated as of February 23, 2002, and as further amended, restated, supplemented or otherwise modified from time to time, the “Loan and Servicing Agreement”), by and among the Borrower,
the Lenders, Wells Fargo Bank, National Association, as the Administrative Agent and the Collateral Custodian (the “Administrative Agent”), the Facility Servicer, and the Portfolio Asset Servicer. Capitalized terms used herein and
not otherwise defined herein shall have the respective meanings given such terms in the Loan and Servicing Agreement. 
 WHEREAS, the
Borrower has requested that the Lenders agree to increase the amount of the Commitments and the Maximum Facility Amount by an aggregate amount of $250,000,000, from $250,000,000 to $500,000,000 effective as of the Second Amendment Effective Date
(collectively, the “Second Amendment Commitment Increase”); and 
 WHEREAS, the Lenders are willing to consent to the
Second Amendment Commitment Increase on the terms and subject to the conditions set forth in this Amendment. 
 NOW, THEREFORE, in
consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows. 

 

	SECTION 	 1. CONSENTS TO LOAN AND SERVICING AGREEMENT. 

(a) the Lenders party hereto hereby irrevocably consents to the Commitment Increase and the other terms of this Amendment. 

 

	SECTION 	 2. AMENDMENTS TO LOAN AND SERVICING AGREEMENT.

Effective as of the Second Amendment Effective Date, the Loan and Servicing Agreement shall be amended as follows: 

(e) Section 1.01 of the Loan and Servicing Agreement is hereby amended by replacing the definition of “Applicable
Spread”, “Eligible Loan Asset” and “Maximum Facility Amount” in their entirety with the following: 

“Applicable Spread” means 2.05%. 

“Eligible Loan Asset” means a Loan Asset that, in each case: 

(i) is a commercial mortgage loan (or a senior or pari-passu participation therein) (and for purposes of clarity, not real
estate owned property acquired as a result of the enforcement of remedies with respect to such senior commercial mortgage loan or participation therein); 

 (iii) the Loan Agreement relating thereto is governed by the laws of a
State;     
 (iii) for which no Underlying Obligor Default has occurred and is continuing thereunder or
any other breach in any material respect of any other term set forth in the Loan Agreement therefor has occurred and is continuing; 

(iv) there are no proceedings pending or, to the best of the Borrower’s knowledge, threatened (A) with respect
to a Bankruptcy Event with respect to any applicable Obligor, or (B) wherein any applicable Obligor, any other party or any governmental entity has alleged that such Loan Asset or its related Loan Agreement or any of its Required Loan Documents
is illegal or unenforceable;     
 (v) is collaterally assignable to the Administrative Agent, for the
benefit of the Secured Parties, as Collateral as provided hereunder;     
 (vi) is not subject to any
Liens other than Permitted Liens; and 
 (vii) as of the related Cut-Off Date,
meets the Collateral Quality Guidelines. 
 If, on the one year anniversary of the Closing Date, after giving effect to any Transfer or Sale
of Loan Assets on such date, either: 
 (A) the Outstanding Principal Balance plus the maximum unfunded commitment with respect to
Delayed Draws, if any, of all Eligible Loan Assets in the Collateral Portfolio with real property Underlying Collateral that is located in the same State exceeds 50%, or 60% for Texas, Florida, California and New York, of the most recent Value of
all Eligible Loan Assets at such time plus the maximum unfunded commitment with respect to Delayed Draws, if any, of all Eligible Loan Assets in the Collateral Portfolio; or 

(B) the Outstanding Principal Balance plus the maximum unfunded commitment with respect to Delayed Draws, if any, of all Eligible Loan
Assets in the Collateral Portfolio with Underlying Collateral of the same type of property (as determined under item A.5 of the Collateral Quality Guidelines) (other than the multifamily property type) exceeds 60% of the most recent Value of all
Eligible Loan Assets at such time plus the maximum unfunded commitment with respect to Delayed Draws, if any, of all Eligible Loan Assets in the Collateral Portfolio; 

then the Facility Servicer may, in its sole discretion, identify Eligible Loan Assets (or a portion thereof) to be removed as Eligible Loan
Assets such that after giving effect to the removal thereof, the Outstanding Principal Balance plus the maximum unfunded commitment with respect to Delayed Draws, if any, of all remaining Eligible Loan Assets in the Collateral Portfolio with either
(1) real property Underlying Collateral that is located in the same State or (2) Underlying Collateral of the same type of property (as determined under item A.5 of the Collateral Quality Guidelines) (other than the multifamily property
type), as the case may be, does not exceed the percentage thresholds set forth in clauses (A) or (B) above, as the case may be, of all Eligible Loan Assets in the Collateral Portfolio. 

A Loan Asset that at any time ceases to satisfy the foregoing criteria will not be considered as an Eligible Loan Asset for purposes of
calculating the Borrowing Base at such time. 

 “Maximum Facility Amount” means, at any time, an amount equal to the
aggregate Commitments of the Lenders at such time, as may be decreased in accordance with Section 2.04 or increased in accordance with Section 2.17. The Maximum Facility Amount (i) on the Closing Date is $200,000,000, (ii) on the
First Amendment Effective Date is $250,000,000 and (iii) on the Second Amendment Effective Date is $500,000,000; provided, that, any increases in the Commitments from and after the Second Amendment Effective Date shall be subject to
Section 2.17(a).” 
 (f) Section 1.01 of the Loan and Servicing Agreement is hereby amended by adding the
following definitions in the correct alphabetical order: 
 “Second Amendment” means the Second Amendment to Loan and
Servicing Agreement, dated as of the Second Amendment Effective Date. 
 “Second Amendment Effective Date” means
March 4, 2022.” 
 (g) Schedule I and Schedule II. Schedule I and Schedule II of the Loan and Servicing Agreement are hereby
replaced with Schedule I and Schedule II attached hereto. 
 SECTION 3. CONDITIONS PRECEDENT. 

This Amendment shall become effective as of the date first written above when, and only when, each of the following conditions precedent shall
have been satisfied or waived (such date, the “Second Amendment Effective Date”) by the Lenders party hereto: 

(a) The Administrative Agent and the Lenders shall have received a counterpart of this Amendment, duly executed by each of
the Borrower, the Lenders and the Administrative Agent; 
 (b) no Event of Default, Unmatured Event of Default or Market
Trigger Event has occurred and is continuing on the Second Amendment Effective Date or shall occur by giving effect to such increase; 

(c) the representations and warranties contained in the Loan and Servicing Agreement are true and correct in all material
respects on and as of the Second Amendment Effective Date and after giving effect to Commitment Increase, as though made on and as of such date (or, if any such representation or warranty is expressly stated to have been made as of a specific date,
as of such specific date); 
 (d) The Administrative Agent and the Lenders shall have received a certificate of an officer of
the Borrower, dated as of the Second Amendment Effective Date, certifying that (i) true and complete copies of the certificate of formation and the limited liability company agreement of the Borrower, including all amendments thereto (if any)
(collectively, the “Constituent Documents”), were delivered as of the Closing Date, or are attached thereto, as applicable, (ii) no such Constituent Documents have been amended, modified or supplemented since the date reflected
thereon and are in full force and effect as of the Second Amendment Effective Date, and (iii) attached thereto is a true and complete copy of the resolutions or written consent, as applicable, of the board of directors approving the terms of,
and authorizing the execution, delivery and performance of, this Amendment, which resolutions or written consent have not been modified, rescinded or amended and are in full force and effect as of the Second Amendment Effective Date, and authorize a
specified person or persons to execute this Amendment and any other documents and notices to be signed and/or dispatched by it under or in connection with this Second Amendment on its behalf; 

 (e) A good standing certificate for the Borrower from the Secretary of
State of the State of Delaware, dated as of a recent date; 
 (f) the Borrower has paid to Massachusetts Mutual Life
Insurance Company a structuring fee in an amount equal to $1,700,000; and 
 (g) the Administrative Agent shall have
received one or more favorable opinions of counsel to the Borrower consistent with the opinions given on the Closing Date, reasonably acceptable to the Initial Lender and addressed to the Administrative Agent, the Servicer, the Lenders and the
Collateral Custodian. 
 SECTION 4. REPRESENTATIONS AND WARRANTIES 

To induce the other parties hereto to enter into this Amendment, the Borrower represents and warrants to the Administrative Agent and the
Lenders party hereto that, as of the Second Amendment Effective Date, both before and after giving effect to this Amendment and the transactions contemplated hereby: 

(a) The Borrower (i) has the power, authority and legal right to (A) execute and deliver this Amendment and (B) perform and
carry out the terms of this Amendment and the transactions contemplated thereby, and (ii) has taken all necessary action to authorize the execution, delivery and performance of this Amendment. 

(b) This Amendment (i) has been duly executed and delivered by the Borrower, (ii) constitutes the legal, valid and binding obligation
of the Borrower, enforceable against the Borrower in accordance with its terms, except as the enforceability hereof may be limited by Bankruptcy Laws and by general principles of equity (whether considered in a proceeding in equity or at law). 

(c) No consent of any other party and no consent, license, approval or authorization of, or registration or declaration with, any Governmental
Authority, bureau or agency is required in connection with the execution, delivery or performance by the Borrower of this Amendment or the validity or enforceability of this Amendment, other than such as have been waived, met or obtained and are in
full force and effect. 
 (d) The execution, delivery and performance of this Amendment will not (i) conflict with, result in any breach
of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under, each Borrower’s certificate of formation or limited liability company agreement, (ii) violate any Applicable Law in any
material respect, or (iii) violate any material contract or other material agreement to which such Borrower is a party or by which any property or assets of such Borrower may be bound. 

SECTION 5. MISCELLANEOUS 
 (a) As of
the Second Amendment Effective Date, each reference in the Amended Loan and Servicing Agreement to “this Agreement,” “hereunder,” “hereof,” “herein,” or words of like import,
and each reference in the other Transaction Documents to the Loan and Servicing Agreement (including, without limitation, by means of words like “thereunder”, “thereof” and words of like import), shall mean and be a
reference to the Loan and Servicing Agreement as amended by this Amendment. 

 (b) Except as expressly amended hereby, all of the terms and provisions of the Loan and
Servicing Agreement and all other Transaction Documents are and shall remain in full force and effect and are hereby ratified and confirmed. 

(c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly provided herein, operate as a waiver of any
right, power or remedy of the Administrative Agent, any Lender or the Borrower under the Loan and Servicing Agreement, or any other Transaction Document, or constitute a waiver or amendment of any other provision of the Loan and Servicing Agreement
or any other Transaction Document (as amended hereby) except as and to the extent expressly set forth herein. 
 (d) Section headings
contained in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purposes. 

(e) The provisions of Section 11.06 and Section 11.10 of the Loan and Servicing Agreement are hereby incorporated into
this Amendment as if fully set forth herein, mutatis mutandis. 
 (f) The Amendment to Loan and Servicing Agreement may be executed in
any number of counterparts by facsimile or other written form of communication, each of which shall be deemed to be an original as against any party whose signature appears thereon, and all of which shall together constitute one and the same
instrument. The words “execution,” “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Amendment and the transactions contemplated
hereby shall be deemed to include electronic signatures approved by the Borrower, the Lenders and the Administrative Agent (and, for the avoidance of doubt, electronic signatures utilizing the DocuSign platform shall be deemed approved), or the
keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided
for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.
The Administrative Agent and the Lenders shall not incur any liability arising out of the use of electronic methods for any and all purposes in connection with the execution of this Amendment, including the authorization, execution, delivery or
submission of documents, instruments, notices, directions, instructions, reports, opinions and certificates to the Administrative Agent and/or the Collateral Custodian. 

(g) The Amendment is a Transaction Document, and together with the other Transaction Documents, incorporates all negotiations of the parties
hereto with respect to the subject matter hereof and is the final expression and agreement of the parties hereto with respect to the subject matter hereof. 

[SIGNATURE PAGES FOLLOW] 

 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by
their respective officers and members thereunto duly authorized, as of the date indicated above. 
  

			
	The Borrower:
	
	FS CREIT FINANCE MM-1 LLC
		
	By:	 	 /s/ Edward T. Gallivan, Jr.

	Name:	 	Edward T. Gallivan, Jr.
	Title:	 	Chief Financial Officer

 Solely with respect to the Specified Provisions and without recourse other than to the extent of the Pledged Equity: 

 

			
	Holdings:
	
	FS CREIT FINANCE HOLDINGS LLC
		
	By:	 	 /s/ Edward T. Gallivan, Jr.

	Name:	 	Edward T. Gallivan, Jr.
	Title:	 	Chief Financial Officer

  
 [Signature Page to Second
Amendment Loan and Servicing Agreement] 

			
	The Initial Lender:
	
	MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Eric Partlan

	Name:	 	Eric Partlan
	Title:	 	Head of Portfolio Management

  
 [Signature Page to Second
Amendment Loan and Servicing Agreement] 

			
	Lender:
	
	C.M. LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Eric Partlan

	Name:	 	Eric Partlan
	Title:	 	Vice President
	
	GREAT AMERICAN LIFE INSURANCE COMPANY
		
	By:	 	 /s/ Eric Partlan

	Name:	 	Eric Partlan
	Title:	 	Chief Investment Officer

  
 [Signature Page to Second
Amendment Loan and Servicing Agreement] 

			
	The Facility Servicer:
	
	MASSACHUSETTS MUTUAL LIFE INSURANCE COMPANY, in its capacity as Facility Servicer
		
	By:	 	 /s/ Eric Partlan

	Name:	 	Eric Partlan
	Title:	 	Head of Portfolio Management

  
 [Signature Page to Second
Amendment Loan and Servicing Agreement] 

			
	The Portfolio Asset Servicer:
	
	 FS CREIT FINANCE MM-1 LLC,

in its capacity as Portfolio Asset Servicer

		
	By:	 	 /s/ Edward T. Gallivan, Jr.

	Name:	 	Edward T. Gallivan, Jr.
	Title:	 	Chief Financial Officer

  
 [Signature Page to Second
Amendment Loan and Servicing Agreement] 

 Execution Version 

Schedule I  

Commitments 
  

					
	 Lender
	  	Commitment	 
	 Massachusetts Mutual Life Insurance Company
	  	$	345,000,000	 
	 C.M. Life Insurance Company
	  	$	125,000,000	 
	 Great American Life Insurance Company
	  	$	30,000,000	 
	 Total
	  	$	500,000,000	 

 Schedule II 

Collateral Quality Guidelines  
  

	A.	 The commercial mortgage loan related to the Loan Asset meets the following criteria as of its Cut-Off Date: 

  

	 	1.	 It is denominated and payable only in U.S. Dollars. 

 

	 	2.	 The Underlying Collateral for such loan is subject to a first priority mortgage. 

 

	 	3.	 The real property constituting the Underlying Collateral for such loan is located within one of the top 40
largest (by population) Metropolitan Statistical Areas of the United States as most recently defined by the United States Office of Management and Budget. 

  

	 	4.	 The Outstanding Principal Balance of such Loan Asset as of such date plus the maximum unfunded commitment with
respect to Delayed Draws for such Loan Asset as of such date is not less than $5,000,000 or greater than $60,000,000 or up to $80,000,000 with respect to no more than three (3) Loan Assets. 

 

	 	5.	 The Underlying Collateral for such Loan Asset is one of the following types of properties: office; multifamily;
mixed use; industrial; self-storage; retail or hospitality. 

  

	 	6.	 The Loan Asset LTV for such Loan Asset does not exceed 80%. 

 

	 	7.	 The ratio (expressed as a percentage rounded down to the nearest 1/10th) obtained by dividing (a) the NOI
(as defined below) for such Loan Asset at such time by (b) the Advance Rate for such Loan Asset multiplied by the Outstanding Principal Balance and maximum unfunded commitment (other than the portion of any such commitment that is contingent on
the applicable Obligor satisfying specific metrics therefor) with respect to Delayed Draws for such Loan Asset as of such time is not less than the percentage set for below that corresponds to the type of property (as determined under item A.5
above) constituting the Underlying Collateral for such Loan Asset: 

  

					
	 Type of Property
	  	
NOI Coverage Percentage
	 
	 Office
	  	 	8.0	% 
	 Multifamily
	  	 	7.5	% 
	 Mixed Use; Self-Storage
	  	 	8.5	% 
	 Industrial
	  	 	8.0	% 
	 Retail
	  	 	9.5	% 
	 Hospitality
	  	 	11.0	% 

  
 [Signature Page to Second
Amendment Loan and Servicing Agreement] 

	 	8.	 The ratio (rounded down to the nearest 1/10th) obtained by dividing (a) the NOI for such Loan Asset at
such time by (b) the Advance Rate for such Loan Asset multiplied by the Outstanding Principal Balance and the maximum unfunded commitment (other than the portion of any such commitment that is contingent on the applicable Obligor satisfying
specific metrics therefor) with respect to Delayed Draws for such Loan Asset multiplied by the interest rate for the Advances in effect on the Cut-Off Date for such Loan Asset is not less than 1.4:1.0.

  

	 	9.	 The interest rate with respect to such loan will be a floating rate unless the Initial Lender agrees otherwise
in writing. 

  

	 	10.	 Such loan requires its Obligor to make monthly deposits for insurance and tax payments and replacement
reserves. 

  

	 	11.	 Such loan benefits from customary non-recourse carve-out guaranties and such other guaranties (for example, completion and interest replenishment) as are customary for loans of a similar type, and the guarantors thereof have (a) a net worth (excluding the
value of the Underlying Collateral) of at least 50% of the maximum loan amount and (b) liquidity of at least 5% of the maximum loan amount (provided that the average liquidity of all guarantors with respect to all Eligible Loan Assets in the
Collateral Portfolio is at least 7.5% of the average maximum loan amounts for such Eligible Loan Assets). 

  

	B.	 On the one year anniversary of the Closing Date and on any Business Day thereafter when an Eligible Loan Asset
is the subject of a Transfer to the Borrower, after giving effect to the Transfer of the Loan Asset, the Outstanding Principal Balance plus the maximum unfunded commitment with respect to Delayed Draws, if any, of all Eligible Loan Assets in the
Collateral Portfolio with real property Underlying Collateral that is located in the same State does not exceed 50% of the most recent Value of all Eligible Loan Assets at such time plus the maximum unfunded commitment with respect to Delayed Draws,
if any, of all Eligible Loan Assets in the Collateral Portfolio. 

  

	C.	 On the one year anniversary of the Closing Date and on any Business Day thereafter when an Eligible Loan Asset
is the subject of a Transfer to the Borrower, after giving effect to the Transfer of the Loan Asset, the Outstanding Principal Balance plus the maximum unfunded commitment with respect to Delayed Draws, if any, of all Eligible Loan Assets in the
Collateral Portfolio with 

  
 [Signature Page to Second
Amendment Loan and Servicing Agreement] 

	 	Underlying Collateral of the same type of property (as determined under item A.5 above) (other than the multifamily property type) does not exceed 60% of the most recent Value of all Eligible Loan Assets at such time
plus the maximum unfunded commitment with respect to Delayed Draws, if any, of all Eligible Loan Assets in the Collateral Portfolio. 

  

	D.	 After giving effect to the Transfer of the Loan Asset, the Outstanding Principal Balance plus the maximum
unfunded commitment with respect to Delayed Draws, if any, of all Eligible Loan Assets in the Collateral Portfolio with real property constituting the Underlying Collateral located in the same Metropolitan Statistical Areas of the United States (by
population) as most recently defined by the United States Office of Management and Budget does not exceed the percentages set forth below of the most recent Value of all Eligible Loan Assets at such time plus the maximum unfunded commitment with
respect to Delayed Draws, if any, of all Eligible Loan Assets in the Collateral Portfolio: 

  

			
	 Metropolitan Statistical Areas
	 	 Percentage

	Ranked 16 through 40 (by population)	 	No more than 25% in any one such Metropolitan Statistical Area; provided that the percentage for up to three such Metropolitan Statistical Areas may be greater than 25% so long as (i) the percentage for the largest such
Metropolitan Statistical Area is no more than 40% (ii) the percentages for the second and third largest such Metropolitan Statistical Areas are not greater than 32.5% each.

 “NOI” means, as of any date of determination for any Loan Asset, the following with respect
to the type of property (as determined under item A.5 above) constituting the Underlying Collateral for such Loan Asset: 
  

	 	(a)	 with respect to multifamily properties, the annual operating income of such property equal to the sum of
(i) rental income and tenant recoveries and other recurring income for the year of stabilization, less (ii) an adjustment to assume a vacancy factor equal to the greater of (A) the vacancy rate projected for such property and
(B) a 5.0% vacancy factor, less (iii) projected operating expenses incurred in connection with such property for the year of stabilization assuming (A) base property management fees equal to the greater of (1) the actual amount
payable by the applicable Obligors pursuant to the applicable management agreement and (2) a minimum of 2.5% of revenues and (B) a normalized adjustment for capital expenditures equal to a minimum of $200 per unit, as the same shall be
reduced to the extent of any (i) funds set aside in capital expenditure reserves required pursuant to the applicable Loan Agreement or (ii) commitments with respect to Delayed Draws for capital expenditures for such Loan Asset;

  
 [Signature Page to Second
Amendment Loan and Servicing Agreement] 

	 	(b)	 with respect to office, retail, industrial, mixed use and self-storage properties, (i) the annual
operating income of such property based on underwritten rents for the year of stabilization, but subject to a maximum market occupancy cap of 95% (unless over 95% is leased to a credit tenant or a tenant that has (or that is a direct or indirect
wholly-owned subsidiary of a parent entity that has) an investment grade rating where the term of the related lease extends beyond the Final Maturity Date), less (ii) projected operating expenses incurred in connection with such property for
the year of stabilization, and assuming (A) base property management fees equal to the greater of (1) the actual amount payable by the applicable Obligors pursuant to the applicable management agreement and (2) 2.5% of revenues and
(B) a normalized adjustment for capital expenditures equal to a minimum of $0.20 per square foot ($0.10 per square foot for industrial properties), as the same shall be reduced to the extent of any (i) funds set aside in capital
expenditure reserves required pursuant to the applicable Loan Agreement or (ii) commitments with respect to Delayed Draws for capital expenditures for such Loan Asset; and 

 

	 	(c)	 with respect to hospitality properties, the underwritten net operating income of such property for the year of
stabilization as determined by the Facility Servicer as the sum of room, food and beverage, retail and other recurring income, less operating expenses incurred in connection with such property for the year of stabilization and assuming (i) a
base property management fees equal to the greater of (A) the actual amount payable by the applicable Obligors pursuant to the applicable management agreement and (B) 2.5% of revenues and (ii) a normalized adjustment for capital
expenditures equal to 4.0% of revenue. 

  
 [Signature Page to Second
Amendment Loan and Servicing Agreement]Exhibit 10.1

  

   

    

  

    SECOND AMENDMENT TO

    LOAN AND SECURITY AGREEMENT

    

    

     

    THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this
        “Amendment”) is made and entered into as of March 7, 2022, by and among SURMODICS, INC., a Minnesota corporation (“Borrower”), the other Loan Parties hereto, and BRIDGEWATER BANK, a Minnesota banking corporation (together with its successors and assigns, “Lender”).

     

    RECITALS:

     

    A.            Borrower, the other Loan Parties and Lender are parties to that certain Loan and Security Agreement dated as of September 14, 2020 (as amended,
      the “Loan Agreement”). All capitalized terms not otherwise defined herein shall have the meanings given to them in the Loan Agreement.

     

    B.            The Loan Parties have requested that the Lender amend certain provisions of the Loan Agreement as more specifically set forth herein, and the
      Lender has agreed to do so upon the terms and subject to the conditions set forth in this Amendment.

    

    

    AGREEMENTS:

     

    NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, and for other good and valuable
      consideration, the nature, receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

     

    1.            Delivery of Documents. At or prior to the execution of this Amendment, and as a condition precedent to the effectiveness of this
      Amendment, the Loan Parties shall have satisfied the following conditions and delivered or caused to be delivered to the Lender the following each dated such date and in form and substance satisfactory to the Lender and duly executed by all
      appropriate parties:

     

    (a)            this Amendment;

     

    (b)            Lender shall have received reimbursement for its legal fees and other expenses as described in Section 7 hereof; and

     

    (c)            Lender shall have received such other documents or instruments as the Lender may reasonably require.

     

    2.            Amendments.

     

    (a)            Section 1.1 of the Loan Agreement is hereby amended by (i) deleting the definitions of “Adjusted EBITDA”, “Borrowing Base”, “Borrowing Base
      Certificate”, “Interest Expense”, “Margin Value” and “Net Income” therefrom and (ii) amending and restating the definition of “Availability” contained therein in its entirety to read as follows:

    
      
        

    

    
    “Availability” means, at
      any time, an amount equal to the Revolving Facility Amount minus the Revolving Exposure.

     

    (b)            Section 2.1 is hereby amended and restated in its entirety to read as follows:

     

    2.1            Revolving Facility. Subject to the terms and conditions set forth herein, Lender agrees to make Revolving Loans to
      Borrower from time to time during the Availability Period in an aggregate principal amount that will not result in the Revolving Exposure exceeding the Revolving Facility Amount. Within the foregoing limits and subject to the terms and conditions set
      forth herein, Borrower may borrow, prepay and reborrow Revolving Loans.

     

    (c)            Section 3.2 is hereby amended by amending and restating paragraph (c) thereof in its entirety as follows:

     

    (c)            After giving effect to any Loan, Availability is not less than zero.

     

    (d)            Section 6.2(b) is hereby amended by amending and restating paragraph (b) thereof in its entirety as follows:

     

    (b)            [reserved];

     

    (e)            Section 7.3 is hereby amended by amending and restating paragraphs (a), (b) and (c) thereof in their entirety to read as follows:

     

    (a)            Minimum Liquidity; Deposit Requirement. Commencing with the fiscal quarter ending
      March 31, 2022, and each fiscal quarter thereafter, Borrower shall not permit Unencumbered Liquid Assets to have an aggregate fair market value of less than $15,000,000, in each case determined as of the last day of each fiscal quarter, and the
      Borrower shall, at all times, maintain at least $5,000,000 of its Unencumbered Liquid Assets on deposit with the Lender.

     

    (b)            Minimum Current Ratio. Commencing with the fiscal quarter ending March 31, 2022, and
      each fiscal quarter thereafter, Borrower shall not permit the Current Ratio, determined as of the last day of each fiscal quarter, to be less than 1.25 to 1.00.

     

    (c)            Minimum Revenue.  Commencing with the fiscal quarter ending March 31, 2022, through
      the termination of this Agreement, Borrower shall not permit quarterly revenue as of the end of each fiscal quarter to be less than $20,000,000 for more than one fiscal quarter.

     

    (f)            Section 10.3(a) is hereby amended by amending and restating clause (c)(ii) thereof in its entirety as follows:

     

    (ii) [reserved],

    
      2

      
        

    

    (g)            Exhibit 6.2(a) is hereby amended and restated in its entirety as set forth on Addendum 1 attached hereto.

     

    (h)            Exhibit 6.2(b)(ii) (which was identified as “Exhibit 6.2(b)(i)” in the Exhibit list of this Agreement and in the First Amendment to this
      Agreement) is hereby deleted in its entirety.

     

     

    3.            Representations; No Default. The Loan Parties jointly and severally represent and warrant that:

     

    (a)            the representations and warranties of the Loan Parties contained in Article 5 of the Loan Agreement are true and correct in all material
      respects (except for those representations and warranties that are conditioned by materiality, which shall be true and correct in all respects) on and as of the date hereof, except to the extent that such representations and warranties specifically
      refer to an earlier date, in which case they are true and correct in all material respects (except for those representations and warranties that are conditioned by materiality, which shall be true and correct in all respects) as of such earlier date,

     

    (b)            each of the Loan Parties has the power and legal right and authority to enter into this Amendment and has duly authorized the execution and
      delivery of this Amendment and other agreements and documents executed and delivered by it in connection herewith,

     

    (c)            neither this Amendment nor the agreements contained herein contravene or constitute a Default or Event of Default under the Loan Agreement or a
      default under any other agreement, instrument or indenture to which such party is a party or a signatory, or any provision of such party’s Articles of Incorporation, Bylaws or other organizational documents, to the best of such party’s knowledge, any
      other agreement or requirement of law, or result in the imposition of any lien or other encumbrance on any of its property under any agreement binding on or applicable to such party or any of its property except, if any, in favor of the Lender,

     

    (d)            no consent, approval or authorization of or registration or declaration with any party, including but not limited to any governmental authority,
      is required in connection with the execution and delivery by such party of this Amendment or other agreements and documents executed and delivered by such party in connection herewith or the performance of obligations of such party herein described,
      except for those which such party has obtained or provided and as to which such party has delivered certified copies of documents evidencing each such action to the Lender,

     

    (e)            no events have taken place and no circumstances exist at the date hereof which would give such party grounds to assert a defense, offset or
      counterclaim to the obligations of such party under the Loan Agreement or any of the other Loan Documents,

     

    (f)            there are no known claims, causes of action, suits, debts, liens, obligations, liabilities, demands, losses, costs and expenses (including
      attorneys’ fees) of any kind, character or nature whatsoever, fixed or contingent, which such party may have or claim to have against the Lender, which might arise out of or be connected with any act of commission or omission of the Lender existing
      or occurring on or prior to the date of this Amendment, including, without limitation, any claims, liabilities or obligations arising with respect to the indebtedness evidenced by the Loan Documents, and

    
      3

      
        

    

    (g)            after giving effect to the effectiveness of this Amendment, no Default or Event of Default has occurred and is continuing.

     

    4.            Affirmation, Further References. The Lender and the Loan Parties each acknowledge and affirm that the Loan Agreement, as hereby amended,
      is hereby ratified and confirmed in all respects and all terms, conditions and provisions of the Loan Agreement (except as amended by this Amendment) and of each of the other Loan Documents shall remain unmodified and in full force and effect.
      Without limiting the foregoing, each Loan Party other than Borrower hereby expressly acknowledges and affirms its obligations as a Guarantor under Article 9 of the Loan Agreement and confirms that such obligations are not in any respect
      impaired by the consummation of this Amendment or any document, instrument or agreement entered into in connection herewith. All references in any document or instrument to the Loan Agreement are hereby amended and shall refer to the Loan Agreement
      as amended by this Amendment.

     

    5.            Severability. Whenever possible, each provision of this Amendment and any other statement, instrument or transaction contemplated hereby
      or thereby or relating hereto or thereto shall be interpreted in such manner as to be effective, valid and enforceable under the applicable law of any jurisdiction, but, if any provision of this Amendment or any other statement, instrument or
      transaction contemplated hereby or thereby or relating hereto or thereto shall be held to be prohibited, invalid or unenforceable under the applicable law, such provision shall be ineffective in such jurisdiction only to the extent of such
      prohibition, invalidity or unenforceability, without invalidating or rendering unenforceable the remainder of such provision or the remaining provisions of this Amendment or any other statement, instrument or transaction contemplated hereby or
      thereby or relating hereto or thereto in such jurisdiction, or affecting the effectiveness, validity or enforceability of such provision in any other jurisdiction.

     

    6.            Successors. This Amendment shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the
      benefit of the parties hereto and to the respective successors and assigns of the Lender.

     

    7.            Costs and Expenses. The Loan Parties agree to reimburse the Lender, upon execution of this Amendment, for all reasonable out-of-pocket
      expenses (including attorneys’ fees and legal expenses of counsel for the Lender) incurred in connection with this Amendment in accordance with Section 10.3(a) of the Loan Agreement.

     

    8.            Headings. The headings of various sections of this Amendment have been inserted for reference only and shall not be deemed to be a part of
      this Amendment.

     

    9.            Counterparts; Digital Copies. This Amendment may be executed in several counterparts as deemed necessary or convenient, each of which,
      when so executed, shall be deemed an original, provided that all such counterparts shall be regarded as one and the same document, and any party to this Amendment may execute any such agreement by executing a counterpart of such agreement. A
      facsimile or digital copy (pdf) of this signed Amendment shall be deemed to be an original thereof.

    
      4

      
        

    

    10.            Release of Rights and Claims. Each Loan Party, for itself and its successors and assigns, hereby releases, acquits, and forever
      discharges Lender and its successors and assigns for any and all manner of actions, suits, claims, charges, judgments, levies and executions occurring or arising from the transactions entered into with Lender prior to entering into this Amendment
      whether liquidated or unliquidated, fixed or contingent, direct or indirect which such Loan Party may have against Lender.

     

    11.            Governing Law. This Amendment shall be governed by the internal laws of the State of Minnesota, without giving effect to conflict of law
      principles thereof.

     

    12.            No Waiver. Nothing contained in this Amendment (or in any other agreement or understanding between the parties) shall constitute a waiver
      of, or shall otherwise diminish or impair, the Lender’s rights or remedies under the Loan Agreement or any of the other Loan Documents, or under applicable law.

     

    [Remainder of page intentionally blank; signature page follows]

    
      5

      
        

    

    IN WITNESS WHEREOF, this Amendment has been duly executed by the parties hereto as of the day and year first above written.

     

    

    
      	

            	BORROWER AND A LOAN PARTY:
	

            	

            	

            
	

            	SURMODICS, INC., a Minnesota corporation
	

            	

            	

            
	

            	

            	

            
	

            	By:

            	/s/ Timothy J. Arens
	

            	Name:

            	
                   Timothy J. Arens

            
	

            	Title:

            	
                   Vice President, Finance and Chief Financial Officer

            

    

    

    

    
      	

            	
              SUBSIDIARY GUARANTORS AND LOAN PARTIES:

            
	

            	

            	

            
	

            	
              SURMODICS SHARED SERVICES, LLC, a Minnesota limited liability company

            
	

            	

            	

            
	

            	

            	

            
	

            	By:

            	
              /s/ Gordon S. Weber

            
	

            	Name:

            	
                   Gordon S. Weber

            
	

            	Title:

            	
                   Manager

            
	

            	

            	

            
	

            	
              SURMODICS COATINGS, LLC, a Minnesota limited liability company

            
	

            	

            	

            
	

            	

            	

            
	

            	By:

            	
              /s/ Gordon S. Weber

            
	

            	Name:

            	     Gordon S. Weber
	

            	Title:

            	     Manager

       

      

       

      

      
        [Second Amendment to Loan and Security Agreement (Loan No. 110262)]

      

    

    
      
        

    

    
      	

            	
              
                SURMODICS COATINGS MFG, LLC, a Minnesota limited liability company

              

            
	

            	

            	

            
	 	 	 
	

            	By:

            	
              /s/ Gordon S. Weber

            
	

            	Name:

            	     Gordon S. Weber
	

            	Title:

            	     Manager
	

            	

            	

            
	

            	
              SURMODICS IVD, INC., a Maryland corporation

            
	

            	

            	

            
	

            	

            	

            
	

            	By:

            	
              /s/ Timothy J. Arens

            
	

            	Name:

            	
                   Timothy J. Arens

            
	

            	Title:

            	
                   Vice President and Treasurer

            
	

            	

            	

            
	

            	
              NORMEDIX, INC., a Minnesota corporation

            
	

            	

            	

            
	

            	

            	

            
	

            	By:

            	
              /s/ Timothy J. Arens

            
	

            	Name:

            	     Timothy J. Arens
	

            	Title:

            	     Vice President and Treasurer
	

            	

            	

            
	

            	
              SURMODICS MD OPERATIONS, LLC, a Minnesota limited liability company

            
	

            	

            	

            
	

            	

            	

            
	

            	By:

            	
              /s/ Gordon S. Weber

            
	

            	Name:

            	     Gordon S. Weber
	

            	Title:

            	     Manager

    

    

    

    

    

    [Second Amendment to Loan and Security Agreement (Loan No. 110262)]

    
      
        

    

    

    

    	 	
            LENDER:

            

          	 
	

          	

          	 
	

          	BRIDGEWATER BANK 
	

          	

          	 
	

          	

          	 
	

          	By:

          	
            /s/ Pat W. Cullen

          
	

          	Name:

          	
                 Pat W. Cullen

          
	

          	Title:

          	
                 Senior Vice President

          

     

    

     

    

    [Second Amendment to Loan and Security Agreement (Loan No. 110262)]

    
      
        

    

     

    Addendum 1

     

    Exhibit 6.2(a)

      Form of Compliance Certificate

        

        

        Compliance Certificate

     

    _________________, ________

     

    We refer to that certain Loan and Security Agreement dated as of September 14, 2020 (as amended to date, the “Loan Agreement”), by and among Surmodics, Inc., a Minnesota corporation (“Borrower”), the other parties from time to time signatory thereto as
      Loan Parties, and Bridgewater Bank, a Minnesota banking corporation (together with its successors and assigns, “Lender”). This is a Compliance Certificate delivered pursuant to Section 6.2(a) of the Loan Agreement. Capitalized terms used in this Compliance Certificate have the meanings given in the Loan Agreement.

     

    Borrower hereby certifies as follows:

     

    1.            Financial Statements. Attached hereto are the [_audited_][_unaudited_] financial statements of Borrower and its Subsidiaries as of ____________, _____ (the “Determination
        Date”) and for the [fiscal year/quarter] period then ended. The financial statements were prepared in accordance with GAAP applied on a basis consistent with prior years and fairly present, in all material respects, the financial position and
      the results of operations of Borrower and its Subsidiaries, [_subject to normal year-end adjustments and absence of footnote disclosures_].

     

    2.            Events of Default. Borrower hereby certifies that as of the date hereof, [_no Default or Event of Default has occurred and is continuing_][_the following
      Defaults or Events of Default have occurred and are continuing: {insert description of applicable Defaults or Events of Default and steps Borrower is taking to mitigate the effect of same.}]

     

    3.            Financial Covenants.

     

    
      	
              (a)

            	
              Minimum Liquidity. Pursuant to Section 7.3(a), aggregate Unencumbered Liquid Assets, determined as of the Determination Date was [$___________], which ☐satisfies ☐does not satisfy the requirement that such Unencumbered Liquid Assets be not less than as set forth in Section 7.3(a) of
                  the Loan Agreement as of the Determination Date.

            

    

    
      	
              (b)

            	
              Minimum Current Ratio. Pursuant to Section 7.3(b), Current Ratio determined as of the Determination Date was _______ to 1.00 which ☐satisfies ☐does not satisfy
                  the requirement that such ratio be not less than as set forth in Section 7.3(b) of the Loan Agreement as of the Determination Date.

            

    

    
      	
              (c)

            	
              Minimum Revenue. Pursuant to Section 7.3(c), Borrower’s quarterly revenue for the fiscal quarter ending on the Determination Date was $______________,
                  which ☐satisfies ☐does not satisfy the requirement in Section 7.3(c) of the Loan Agreement that for the fiscal quarter ending March 31, 2022 through the termination of this Agreement, Borrower
                  shall achieve quarterly revenue as of the end of each fiscal quarter of less than $20,000,000 in no more than one fiscal quarter.

            

      
        
          

      

    

    
      	
              (d)

            	
              Minimum Tangible Net Worth.
                Pursuant to Section 7.3(d), Tangible Net Worth determined as of the Determination Date was $______________ which ☐satisfies ☐does not satisfy the requirement that such Tangible Net Worth be not less than as set forth
                in Section 7.3(d) of the Loan Agreement as of the Determination Date.

            

    

    Attached hereto are detailed calculations and supporting statements for each of the financial covenants.

    

    

    
      	

            	
              LOAN PARTY REPRESENTATIVE:

            
	

            	

            	 
	

            	
              SURMODICS, INC., a Minnesota corporation

            
	

            	

            	 
	

            	

            	 
	

            	

            	 
	

            	
              By:

            	 
	

            	
              Name:

            	 
	

            	Title:

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