Document:

8
#2350426  (116721.034)
#2350426  (116721.034)
                 SIXTH AMENDMENT TO LOAN AND SECURITY AGREEMENT
          This  Sixth  Amendment  to  Loan and Security Agreement made as of the
26th  day  of  September,  2003  (this "Amendment") by and between NEW BRUNSWICK
SCIENTIFIC CO., INC. (the "Borrower"), a corporation organized under the laws of
the  State  of  New  Jersey,  having an address at 44 Talmadge Road, Edison, New
Jersey  08818-4005  and  WACHOVIA  BANK, NATIONAL ASSOCIATION (formerly known as
First  Union  National Bank) (the "Bank"), a national banking association formed
under  the  laws of the United States of America, having an office at 370 Scotch
Road,  West  Trenton,  New  Jersey  08628.
                              W I T N E S S E T H:
                              -------------------

          WHEREAS,  the Bank and the Borrower previously entered into commercial
lending  arrangements  in  accordance with the terms and conditions of a certain
Loan  and  Security  Agreement  dated  April 1, 1999, as amended by that certain
First  Amendment  to  Loan  and Security Agreement dated as of November 22, 1999
between the same parties, as further amended by that certain Second Amendment to
Loan  and Security Agreement dated as of June 30, 2000 between the same parties,
as  further  amended  by  that  certain  Third  Amendment  to  Loan and Security
Agreement  dated as of May 11, 2001 between the same parties, as further amended
by  that  certain  Fourth  Amendment  to Loan and Security Agreement dated as of
November  13,  2001  between  the  same  parties  and as further amended by that
certain  Fifth  Amendment  to  Loan and Security Agreement dated as of March 15,
2002  (the  "Agreement");  and
                                        1
<PAGE>
          WHEREAS,  the  Borrower  and  the  Bank have agreed to, subject to the
provisions  hereof, among other things, (i) make a certain Incremental Term Loan
in  the  principal amount of $1,500,000, (ii) decrease the amount available with
respect to Incremental Term Loans from $12,500,000 to $10,000,000, (iii) convert
$900,000  of  Equipment Loan Advances to a term loan, and (iv) to  amend certain
financial  covenants  in  the  Agreement.
          NOW,  THEREFORE,  for  and  in  consideration  of mutual covenants and
agreements  herein contained, and other good and valuable consideration, receipt
of  which  is  hereby  acknowledged,  it  is  agreed  as  follows:
1.     The  following  definitions  contained in Subsection 1.1 of the Agreement
are  hereby  amended  in  their  entirety  to  read  as  follows
"Applicable  Margin":  Shall  mean  as  follows:
        WITH RESPECT TO EURODOLLAR LOANS     WITH RESPECT TO PRIME RATE LOANS
        --------------------------------     --------------------------------
   REVOLVING LOAN     An additional 125 basis points     a reduction of 1.25%.
   --------------     ------------------------------     ---------------------
   INCREMENTAL TERM LOANS     An additional 125 basis points     a reduction of
   ----------------------     ------------------------------     --------------
                                     1.25%.
                                     ------
   EQUIPMENT LOAN     An additional 125 basis points     a reduction of 1.25%
   --------------     ------------------------------     --------------------

     Notwithstanding  the  foregoing,  with respect to (i) the Equipment Loan in
the  original  principal  amount of $900,000, as evidenced by the Equipment Term
Note  being  delivered  simultaneously  with  the  Sixth Amendment, and (ii) the
Incremental  Term  Loan  in  the  original  principal  amount  of  $1,500,000 as
contemplated  by the Sixth Amendment, the Applicable Margin for Eurodollar Loans
shall  be  an  additional  175  basis points and for Prime Rate Loans shall be a
reduction  of .75%, until such time as the Borrower has satisfied the provisions
of Subsection 9.23(1) of the Agreement (as evidenced by the financial statements
to  be  delivered  pursuant  to  Subsections  9.12(a)  and  (b)  hereof) for two
consecutive  quarters,  on  a  rolling  four  quarter basis; provided that it is
hereby  acknowledged  by  the parties hereto that the failure of the Borrower to
comply  with  such  covenant  shall constitute an Event of Default hereunder and
that  the  Bank  reserves  all  of its rights and remedies with respect thereto,
including,  without  limitation,  the  right  to  charge  the  Default  Rate.

                                        2
<PAGE>
2.     The  following  definitions  are  hereby  added  to Subsection 1.1 of the
Agreement  to  read  as  follows:
"Sixth  Amendment":  That certain Sixth Amendment to Loan and Security Agreement
 ----------------
dated  as  September  26,  2003  by  and  between  the  Borrower  and  the Bank.
3.     Subsection  3.1(a) of the Agreement is hereby amended to read as follows:
(a)  General  Terms.  The  Bank  agrees  to lend to the Borrower individual term
     --------------
loans  in increments of $250,000.00 or more (collectively, the "Incremental Term
Loans")  up  to the aggregate principal sum of $7,692,500, pursuant to the terms
hereof.  If  the Borrower shall request Incremental Term Loans which, when added
together  with  all  other Incremental Term Loans, would result in the aggregate
principal  balance  of  all  Incremental  Term  Loans exceeding $7,692,500, such
requested  Incremental  Term  Loans  (collectively, the "Excess Incremental Term
Loans")  shall  only  be made  by the Bank if the Bank, in its sole and absolute
discretion,  determines  to  honor  such requests, and if the Bank so desires to
honor  such  requests, upon the terms and conditions imposed by the Bank, and in
no  event  shall  the  aggregate  principal amount of all Incremental Term Loans
exceed  TEN  MILLION 00/100 DOLLARS ($10,000,000.00), unless no Event of Default
shall  have  occurred at anytime during the period commencing on the date of the
Sixth  Amendment  and ending on (and including) the last day of the first fiscal
quarter  of  2005 and no Default shall exist on the last day of the first fiscal
quarter of 2005, in which case, in no event shall the aggregate principal amount
of  all  Incremental  Terms  Loans exceed TWELVE MILLION FIVE HUNDRED AND 00/100
DOLLARS  ($12,500,000.00).   If  the  Borrower requests an Incremental Term Loan
after the last day of the first fiscal quarter of 2005 and such Incremental Term
Loan,  together  with  all  other prior Incremental Term Loans, shall exceed TEN
MILLION  AND  00/100 DOLLARS ($10,000,000.00), the Borrower shall deliver to the
Bank,  prior  to  the  Bank extending (without any obligation to do so) any such
Incremental  Term  Loan,  such  financial  statements  and  other information as
requested  by the Bank evidencing that such no Event of Default has occurred and
that  no such Default exists for period and as of the date described above,  all
such  financial  statements  and  other  information to be in form and substance
satisfactory  to  Bank.  The  Borrower's  right  to  request  the  issuance  of
Incremental Term Loans from the Bank shall terminate on the Termination Date and
the  Bank shall have no obligation to make any Incremental Term Loans after such
date. The outstanding principal amount of all previous advanced Incremental Term
                                        3
<PAGE>
Loans under this Subsection 3.1(a), since April 1, 1999, shall be considered for
the  purposes  of  determining the amount available under this Subsection 3.1(a)
hereof.
4.     Subsection  4.1(g) of the Agreement is hereby amended to read as follows:
(g)  Equipment  Line  of  Credit  Note.  Initially,  the principal amount of the
     ---------------------------------
Equipment  Loan  Advances  to  be  made  by the Bank shall all be evidenced by a
single  promissory  note  of the Borrower (the "Equipment Line of Credit Note"),
substantially  in  the form attached to the Fifth Amendment as Exhibit A, in the
                                                               ---------
principal  face  amount equal to the Equipment Loan Advance Limit.  On September
26,  2003, March 15, 2004 and May 31, 2005 ("Conversion Dates"), the outstanding
principal  amount  advanced  by  the  Bank  as Equipment Loan Advances since the
Closing Date or the last Conversion Date, as the case may be, shall be converted
to a term loan and evidenced by a separate promissory note of the Borrower (each
such  promissory  note, as it may be amended, restated, substituted or extended,
an  "Equipment  Term Note") in the principal face amount equal to such amount of
said  Equipment  Loan  Advances, substantially in the form attached to the Fifth
Amendment  as  Exhibit  B.  The  Equipment Term Notes shall be dated the date of
               ----------
said  Conversion  Date.
5.     The  definition  of "Debt Service Coverage Ratio" contained in Subsection
9.23(d)  is  hereby  amended  as  follows:
"Debt Service Coverage Ratio" shall mean the sum of net income (adjusted for any
noncash  losses,  to  the  extent of the Borrower's investment in DGI, resulting
from  equity  offerings  which  reduce the Borrower's ownership interest in DGI,
whereby  said  interest  is reduced below 50%) plus interest expense plus income
tax  expense  minus  income  tax benefit plus depreciation and amortization plus
rent  or  lease payments, minus dividends paid, all for the period being tested,
divided  by the sum of interest expense plus the principal payments made on long
term  debt  plus  principal  payments made on capital leases, plus rent or lease
payments,  all  for  the  period  being  tested,  as reflected on the Borrower's
financial  statements,  provided that excluded from the foregoing calculation is
payment  of  the  outstanding principal of the Revolving Loan with a Termination
Date  of  May  31,  2005.  All payments referred to above shall include all such
payments  made  by the Borrower whether as direct obligor or as guarantor.  This
ratio  shall  be  computed  as  of  the  end of the last fiscal quarter and on a
rolling  four  quarter  basis.
                                        4
<PAGE>
6.     Subsection 9.23(l) of the Agreement is hereby amended to read as follows:
(1)     Debt  Service Coverage Ratio of the Borrower and Subsidiaries.  Borrower
        --------------------------------------------------------------
and  its  Subsidiaries, on a consolidated basis, shall, at all times, maintain a
Debt  Service Coverage Ratio of not less than 1.30 to 1.00.  For the purposes of
this Subsection 9.23(l), "Debt Service Coverage Ratio" shall mean the sum of net
income  (adjusted  for  any  noncash  losses,  to  the  extent of the Borrower's
investment  in  DGI, resulting from equity offerings which reduce the Borrower's
ownership  interest  in  DGI,  whereby  said interest is reduced below 50%) plus
interest  expense  plus  income  tax  expense  minus  income  tax  benefit  plus
depreciation and amortization plus rent or lease payments, minus dividends paid,
all for the period being tested, divided by the sum of interest expense plus the
principal  payments  made  on  long  term  debt  plus principal payments made on
capital leases, plus rent or lease payments, all for the period being tested, as
reflected  on  the  Borrower's financial statements, provided that excluded from
the  foregoing  calculation  is  payment  of  the  outstanding  principal of the
Revolving  Loan  with a Termination Date of May 31, 2005.  All payments referred
to  above shall include all such payments made by the Borrower whether as direct
obligor  or  as  guarantor.  This  ratio for purposes of this Subsection 9.23(1)
shall be tested at the end of each fiscal quarter, commencing December 31, 2003,
and  on  a  rolling  four  quarter  basis,  provided  that  with  respect to the
Borrower's  fourth fiscal quarter ending December 31, 2003, first fiscal quarter
ending  April  3,  2004,  and  second  fiscal  quarter ending July 3, 2004, said
covenant shall be tested on a rolling one quarter, two quarter and three quarter
basis,  respectively.
7.     Subsection 9.23(m) of the Agreement is hereby amended to read as follows:
(m)     Net  Worth  of Borrower and Subsidiaries. Borrower and its Subsidiaries,
        ----------------------------------------
on  a consolidated basis, shall maintain a Net Worth of at least (i) $32,600,000
as  of  the  December  31,  2003,  (ii)  $32,950,000  as of April 3, 2004, (iii)
$33,300,000  as  of July 3, 2004 (iv) $33,500,000 as of October 2, 2004, and (v)
$33,800,000  as  of  December  31, 2004. With respect to each fiscal quarter end
thereafter,  the  minimum  Net  Worth of the Borrower and its Subsidiaries, on a
consolidated  basis,  shall  increase by not less than 65% of the net income for
the  immediately  preceding  fiscal  year  just  ending  (with  no reduction for
losses).
8.     The following Subsection 9.23(p) is hereby added to the Agreement to read
     as  follows:
                                        5
<PAGE>
(p)     Maximum  Net  Loss.  Borrower  and  its  Subsidiaries, on a consolidated
        ------------------
basis,  shall not report a net loss before taxes, of greater than $1,029,000 for
]  fiscal  quarter  ending  September  27,  2003.
9.     The following subsection 9.27 is hereby added to the Agreement to read as
     follows:
9.27     Liquid  Assets.  The  Borrower  shall  own and maintain at all times at
         --------------
least  $3,000,000  of "Liquid Assets."  For the purpose of this Subsection 9.27,
"Liquid  Assets"  shall  mean  cash  and securities traded on the New York Stock
Exchange, the American Stock Exchange or NASDAQ.  Notwithstanding the foregoing,
the  Borrower  shall  not  be  required to continue to comply with the foregoing
provisions  of  this Subsection 9.27 in the event that no Event of Default shall
have  occurred  at  anytime  during  period  commencing  the  date  of the Sixth
Amendment  and  ending  (and  including)  December 31, 2004 and no Default shall
exist  on  December  31,  2004.
10.     Subsection  13.17 of the Agreement is hereby amended to read as follows:
13.17     Exemplary  Damages,  Jury Trial Waiver.  The parties hereto agree that
          --------------------------------------
they  shall  not  have  a  remedy of punitive or exemplary damages against other
parties  in  any judicial proceeding, any claim or controversy arising out of or
relating  to  the  Loan  Documents  between the parties hereto (a "Dispute") and
hereby  waive  any right or claim to punitive or exemplary damages they have now
or  which  may  arise in the future in connection with any Dispute.  THE PARTIES
HERETO  IRREVOCABLY WAIVE ANY RIGHT THEY MAY HAVE TO JURY TRIAL WITH REGARD TO A
DISPUTE.

11.     Borrower  shall pay simultaneously herewith (i) a fee to the Bank in the
amount of $5,000 and (ii)  all reasonable expenses and expenditures of the Bank,
     including,  without  limitation,  reasonable  attorneys'  fees and expenses
incurred  or  paid  by  the Bank in connection with this Amendment and all other
documents  delivered  in  connection  herewith.
12.     Prior to extending the Borrower the $1,500,000 Incremental Term Loan for
     the  purpose of acquiring the assets of RS Biotech, (i) no Default or Event
of Default shall exist at the time of such advance, (ii) the Borrower shall have
delivered  to  the  Bank  a  copy of the Purchase Agreement with respect to such
                                        6
<PAGE>
acquisition,  in form and substance satisfactory to the Bank, and (iii) Borrower
shall  have  complied  with all terms and conditions with respect to Incremental
Term  Loans  under the Agreement, as well as with any other requirements imposed
by  the  Bank.
13.     All  provisions  contained  in  the Loan Documents similar to Subsection
13.17  of  the  Agreement  are  hereby  amended  in a manner consistent with the
amendment  to  said  Section  13.17  set  forth  in  the  Sixth  Amendment.
14.     This  Amendment  has  been  duly  executed  and delivered by the parties
hereto,  and  the Agreement, as amended hereby, and all other documents executed
in  connection  with  the  Agreement  and this Amendment, as amended, constitute
legal,  valid  and binding obligations of the parties thereto in accordance with
their  terms.
15.     The parties hereto confirm and agree that, except as modified or changed
     by virtue of this Amendment and the other documents delivered in connection
herewith,  the Agreement and the other documents executed in connection with the
Agreement  and this Amendment are and shall remain in full force and effect, and
that  the  parties  hereto  each  are  and  shall  be entitled to all rights and
interests  and  subject  to  all  liabilities  created thereunder and hereunder.
16.     All  capitalized  terms  contained in this Amendment shall have the same
meanings  ascribed  to  them  in  the  Agreement.
17.     This  Amendment  may  be  executed  in one or more counterparts, each of
which  shall  constitute  one  and  the  same  Amendment.
                                        7
<PAGE>
     IN  WITNESS  WHEREOF,  the parties hereunto set their hands and cause these
presents  to  be  signed  by  the authorized officers on the date and year first
above  mentioned.

     NEW  BRUNSWICK  SCIENTIFIC  CO.,  INC.

     BY:________________________________________
                              SAMUEL  EICHENBAUM,  Vice  President,
                              Finance

     WACHOVIA  BANK,  NATIONAL  ASSOCIATION

     BY:________________________________________
                              RICHARD  ANDERSON,  Vice  President
                                        8
<PAGE>Exhibit 10.5

Exhibit 10.5

AMENDMENT TO

MASTER SUPPLY AND INTELLECTUAL PROPERTY LICENSE AGREEMENT

 

          THIS AMENDMENT (the “Amendment”) to that certain Master Supply and Intellectual Property License Agreement (the “Agreement”),
dated and made effective on December 10, 2002, is made and entered into as of this first day of April, 2003, by and between Quantum Corporation, a Delaware corporation, having its principal place of business at 501 Sycamore Drive, Milpitas, California, 95035, and its
wholly-owned subsidiaries and Affiliates (collectively “Quantum”) and Jabil Circuit, Inc., a Delaware corporation, having its principal place of business at 10560 Ninth Street North, St. Petersburg, Florida, 33716 and its wholly-owned subsidiaries and
Affiliates (collectively “Jabil”).

RECITALS

     NOW, THEREFORE, in consideration of the mutual promises, covenants and other terms and conditions contained in this Amendment and for other good and valuable consideration, the receipt of which is
acknowledged by both parties, the parties agree as follows:

     1.      Amendments.

         a)      The Agreement is hereby amended and modified so that Section 1.26 is deleted in its entirety and replaced with the following new
section:

                 1.26    a) SSG shall mean Quantum’s Storage Solution Group.

                         b)    The "SSG Products" shall mean that subset of the
Products produced for SSG including the Superloader, drive Canister Assemblies and M1500 Products.

         b)      The Agreement is hereby amended and modified so that Section 11.2 is deleted in its entirety and replaced with the following new
section:

                 11.2    Jabil Parties' Workmanship Warranty:  Jabil warrants that all of the Products supplied to Quantum hereunder shall conform to all applicable Specifications, and that all such Products except for the SSG Products shall be free from defects in Workmanship for a period of ***** and that the
SSG Products shall be free from defects in Workmanship for a period of *****. These warranties are extended to, and may only be enforced by, Quantum.  In addition, Jabil shall use Commercially Reasonable Efforts to assure that vendor warranties with respect to
all materials, parts and components used in the Products extend for the benefit of Quantum, regardless of the length of any such warranty. For the avoidance of doubt, this warranty shall not apply to defects resulting from the design of the Products, or from
materials, parts, or components, provided that such materials, parts or components have been purchased by Jabil pursuant to the AVL, or as otherwise approved in writing by Quantum.

     2.      Terms; No Other Changes.  Any capitalized terms contained in this Amendment and not defined in this Amendment have the meanings for such terms as are
set forth in the Agreement.  Except as expressly provided in this Amendment, the Agreement remains un-amended and unmodified and in full force and effect.

     3.      General.  This Amendment contains the entire agreement between the parties with respect to the subject matter hereof and supersedes any prior
agreements, negotiations, or representations between the parties with respect to the subject matter hereof, whether written or oral.  This Amendment may be modified only by a subsequent written agreement signed by the parties.  If any provision of this
Amendment is held to be unenforceable, the remaining provisions will continue unaffected.

     4.      Governing Law and Dispute Resolution.  This Amendment, shall be governed by, and interpreted in accordance with, the laws of the State of Delaware, excluding conflicts of laws principles and any application of the U.N. Convention on Contracts for the International Sale of Goods.  Any dispute between the parties relating to the validity, performance,
interpretation or construction of this Amendment shall be resolved in accordance with Delaware law and in the federal or state courts of Delaware.  The parties to this
Amendment hereby irrevocably consent to the personal jurisdiction of the federal and state courts in Delaware for the resolution of all disputes hereunder.  Notwithstanding the provisions of this Section, the parties
shall have the right to seek relief, including preliminary and permanent injunctive relief, in any court of competent jurisdiction to prevent the unauthorized use, misappropriation, disclosure or infringement of any of intellectual property of the parties or
Confidential Information.

 

*****Confidential treatment has been requested for omitted portions.

 

IN WITNESS WHEREOF, the parties have had this Amendment executed by their respective duly authorized officers on the day and date first written above. 

                                                                Quantum
Corporation

                                                                By:
  /s/ Curt Kane                       

                                                                 Name:
  Curt Kane                        

                                                                Title:
Vice President DLTG Supply Chain

 

                                                                Quantum
Peripherals (Europe) S.A.

                                                                By:
  /s/ Franco Mazzullo               

                                                                Name:
  Franco Mazzullo                

                                                                Title:
VP International Sales             

 

                                                                Jabil
Circuit Inc.

                                                                By:
  /s/ Cory Schuck                    

                                                                Name:
  Cory Schuck                    

                                                                Title:
Business Unit Director

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