Document:

ex10_6.htm

EXHIBIT 10.6

 

 

Acknowledgement of

 

Amendment of Solicitation / Modification of Contract

Date: October 24, 2012

From: Lisa Holmes, OEM Commodity Manager

To: Peter Rasche, General Counsel

 

Re: Supply and Distribution Agreement, by and between Synergetics USA, Inc (f/k/a Valley Forge Scientific Corp.) and Stryker Instruments Division of Stryker Corp., effective as of October 25, 2004, amended by Addendum No. 1 dated November 15, 2006, and Addendum No. 2 dated August 1, 2007, and extended through October 31, 2012, by separate Acknowledgements dated January 9, 2012, March 19, 2012 and June 26, 2012.

Dear Peter,

 

We would like to extend the contract term of the existing Distribution Agreement (referenced above) through November 30, 2012.

 

If you are in agreement with this extenstion, please sign, date and return to your Stryker representative for final evaluation and your approval. Please provide your email address and a copy will be electronically sent to you for your records.

 

If you have any questions, please let me know.

 

I herby acknowledge the receipt of and approve this amendment  with an effective date of the October 25, 2012.

	
STRYKER INSTRUMENTS

	 	SYNERGETICS INC.	 
	 	 	 	 	 
	
By:

	/s/ Chad A. McVey	 	
By:

	/s/ David Hable	 
	 	 	 	 	 	 
	Printed Name:	Chad A. McVey	 	Printed Name:	David Hable	 
	 	 	 	 	 	 
	Title:	Assoc. Director of Sourcing	 	Title:	President, CEOex10_7.htm

EXHIBIT 10.7

  

** Information marked as "[redacted**]" has been omitted pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

ADDENDUM No. 3

TO SUPPLY AND DISTRIBUTION AGREEMENT

THIS ADDENDUM No. 3 TO SUPPLY AND DISTRIBUTION AGREEMENT (“Addendum No. 3”), dated as of November 27, 2012 (the “Effective Date”), is entered into by and between Stryker Corporation, a Michigan corporation, acting through its Instruments Division (“Distributor”) and Synergetics, USA Inc., a Delaware corporation (referred to herein as “VFS”).

WHEREAS, Distributor and VFS entered into that certain Supply and Distribution Agreement dated October 25, 2004, which was amended by Addendum No. 1 as of November 15, 2006, and Addendum No. 2 as of August 1, 2007, and Acknowledgements dated, respectively, as of January 1, 2012, April 1, 2012, June 27, 2012, and October 25, 2012 (collectively, the “Agreement”); and

WHEREAS, Distributor and VFS now desire to further amend the terms and conditions of the Agreement as set forth herein;

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Distributor and VFS hereby agree as follows.

	
  

	
1.

	
Term.  Section III., Paragraph 1.1 of the Agreement is hereby amended and modified to delete such section in its entirety and substitute therefore the following:

“Unless terminated sooner pursuant to Section III., Paragraph 2 hereof or extended as provided herein, the term of this Agreement shall commence on the Effective Date and shall continue in force until June 30, 2015.  If on or before January 1, 2015 the term of this Agreement has not been extended beyond June 30, 2015 by written agreement of Distributor and VFS, the parties on written notice from either party shall for a period of ninety (90) days after such written notice conduct good faith discussions at mutually convenient times regarding the terms and conditions of an extension to this Agreement.  While the parties are obligated to discuss an extension in good faith, there is no obligation on the part of either party to agree to an extension.”

 

	
  

	
2.

	
Specifications.  Schedule A shall be amended by deleting such Schedule A in its entirety and substituting therefor the Schedule A attached hereto.

	
  

	
3.

	
Price.  Section I., Paragraph 2 is hereby amended to provide the following.  The Product price shall be fixed for the Term as set forth in Schedule B, unless amended as provided for herein.  Schedule B shall be amended by deleting such Schedule B in its entirety and substituting therefor the Schedule B attached hereto. [Redacted**]

	
  

	
4.

	
Payment Terms.  Section I., Paragraph 2.3 of the Agreement is amended and modified to provide that payment shall be made within [redacted**] following the receipt of the invoice from VFS.  All other elements of this section remain unchanged.

 

  

1

  

 

Addendum No. 3

To Supply and Distribution Agreement

Stryker and Synergetics

	
  

	
5.

	
Notices.  Section III., Paragraph 8.12 is hereby amended to substitute the following contact information for notices to each party.

To VFS:

Synergetics USA, Inc.

3845 Corporate Centre Drive

O’Fallon, Missouri  63368

Attention:  General Counsel

To Distributor:

Stryker Corporation

Stryker Instruments Division

4100 East Milham Avenue

Kalamazoo, Michigan 49001

Attention:  Lisa Holmes

 

With copy to:

Stryker Corporation

2825 Airview Boulevard

Kalamazoo, MI 49002

Facsimile: (269) 385-2066

Attention: General Counsel

	
  

	
6.

	
Ratification.  Except as set forth herein, all remaining terms and conditions of the Agreement shall remain in full force and effect.  To the extent any terms or conditions in this Addendum No. 3 conflict with the Agreement, the terms and conditions of this Addendum No. 3 shall control.

	
  

	
7.

	
Miscellaneous.  This Addendum No. 3 may be executed in multiple counterparts, each of which shall be deemed an original and all of which shall constitute but one and the same instrument.  No agreement hereafter made shall be effected to change, modify, or discharge this Addendum No. 3, in whole or in part, unless such agreement is in writing and signed by or on behalf of the Party against whom the enforcement of the change, modification, or discharge is sought.  This Amendment shall be binding on the Parties hereto and their respective personal and legal representatives, successors, and permitted assigns.  Each person whose signature appears below represents and warrants that he or she has the authority to bind the entity on whose behalf he or she has executed this Amendment.

 

IN WITNESS WHEREOF, the Parties have signed this Amendment intending to be legally bound by its terms as of the date first stated above.

	
Stryker Corporation:

	 	
Synergetics USA, Inc.:

	  
	  	  	 	  	 	  
	
By:  

	/s/ Chad A. McVey	 	
By:   

	/s/ David M. Hable	  
	  	  	 	  	 	  
	
Name:

	Chad A. McVey	 	
Name:

	David M. Hable	  
	  	  	 	  	 	  
	
Date: 

	November 27, 2012	 	
Date:  

	November 27, 2012	  

 

  

2

  

 

Addendum No. 3

Stryker and Synergetics

 

SCHEDULE A

 

Stryker RF MultiGen Generator Product Specification

The Stryker RF MultiGen generator is designed to coagulate living human tissue for the interventional treatment of pain.  The system provides electrical stimulator pulse functions for nerve localization, and various radio frequency outputs that are selectable based upon the surgical procedure undertaken.  The generator is earth isolated, and may be configured for 2 independent bipolar outputs or 4 independent monopolar outputs with a common return electrode/grounding pad.  The system shall be provided with safety features so that critical parameters are monitored to the extent that it will provide warning and/or alerting when critical parameters exceed specified limits.  The unit shall be designed to meet the requirements of the Medical Device Directive, 93/42/EEC, ANSI/AAMI HF-18-2001, and other relevant medical device standards required for world-wide sale and use.

 

[Redacted**]

 

** This information has been omitted pursuant to a request for confidential treatment and has been filed separately with the Securities and Exchange Commission.

 

  

3

  

 

Addendum No. 3

Stryker and Synergetics

 

SCHEDULE B

	
Product

	 	
Stryker Part No.

	 	 	
Purchase Price

	 
	 	 	 	 	 	 	 	 	 
	
Interventional Pain RF Lesion Generator

	 	 	
[Redacted **]

	 	 	 	
[Redacted **]

	 
	 	 	 	 	 	 	 	 	 
	
Hand Control for Lesion Generator

	 	 	
[Redacted **]

	 	 	 	
[Redacted **]

	 

 

 

** This information has been omitted pursuant to a request for confidential treatment and has been filed separately with the Securities and  Exchange Commission.

 

 

4FORBEARANCE AGREEMENT

 

THIS FORBEARANCE AGREEMENT
(the “Agreement”) is dated as of November19, 2012, by and among CHATAND, INC.,a Nevada corporation
(the “Company”),each of the buyers listed on the Schedule of Buyers attached hereto and
named on the signature page hereto(collectively, the “Buyers”; and, each, a “Buyer”),
and Michael Lebor and David Rosenberg (collectively, the “Existing Shareholders”; and, each, an “Existing
Shareholder”).

 

The Company and each
Buyer entered into that certain Securities Purchase Agreement dated as of June 17, 2011 (the “Purchase Agreement”),
pursuant to which the Company sold and issued to the Buyers senior secured convertible promissory notes in the aggregate principal
amount of $850,000 (as further amended, restated, and modified from time to time, the “Notes”).

 

Defaults have occurred
and are continuing under the Notes based on the Company’s failure to comply with (a) Section 2.01(f) of the Notes regarding
late payment of principal and interest, and (b) Section 2.01(p) of the Notes, regarding the failure of the Company to pay to the
Buyers the amounts due under the Notes in a timely manner, amongst other Events of Default not enumerated herein(collectively with
any other related defaults, potential defaults, or events of default under any other Transaction Documents, the “Subject
Defaults”). As a result, the Company has requested that the Buyers agree to forbear from exercising their rights
and remedies under the Notes and the Purchase Agreement in connection with the Subject Defaults. The Buyers have agreed, subject
to the terms and conditions of this Agreement, to forbear from exercising certain rights and remedies in connection with the Subject
Defaults as provided below.

 

In consideration of
the Buyers agreeing to forbear from exercising their rights and remedies under the Notes and the Purchase Agreement in connection
with the Subject Defaults, the Existing Shareholders and the Company have agreed, subject to the terms and conditions of this Agreement,
for the Company to cancel the Warrants held by the Existing Shareholders (the “Existing Shareholder Warrants”)
and concurrently with the execution of this Agreement the Existing Shareholder Warrants shall be immediately cancelled.

 

ACCORDINGLY, for adequate
and sufficient consideration, the receipt of which is hereby acknowledged, the Company, the Existing Shareholders and the Buyers
agree as follows:

 

1.           TERMS AND REFERENCES.
Unless otherwise stated in this document, terms defined in the Transaction Documents have the same meanings when used in this Agreement.

 

    	1

    	 

    
 

2.           NO WAIVER. The
execution, delivery, and performance of this Agreement by the parties hereto and the acceptance by the Buyers of the performance
of the Company herewith (a) shall not constitute a waiver or release by the Buyers of any Event of Default, including, without
limitation, the Subject Defaults, that may now or hereafter exist under the Notes or the Purchase Agreement, and (b) shall be without
prejudice to, and is not a waiver or release of, the Buyers’ rights at any time in the future to exercise any and all rights
conferred upon the Buyers by the Notes, the Purchase Agreement or otherwise at law or in equity, including, without limitation,
the right to accelerate the obligations under the Notes, and to institute foreclosure proceedings, to exercise their rights under
the Uniform Commercial Code as in effect in the State of New York or other applicable laws, and/or to institute collection proceedings
against any Person. The Company agrees and acknowledges that the Subject Defaults currently exist. Furthermore, the Company acknowledges
that as of November19, 2012, the outstanding balances, as listed below, of the following promissory notes are correct:

 

		(i)	chatAND, Inc. Senior Secured Convertible Promissory Note No. 1, in favor of Stacy Capital Group
LLC, in the principal amount of $204,545.45, plus all accrued interest;

		(ii)	chatAND, Inc. Senior Secured Convertible Promissory Note No. 2, in favor of David Stefansky, in
the principal amount of $204,545.45, plus all accrued interest;

		(iii)	chatAND, Inc. Senior Secured Convertible Promissory Note No. 3, in favor of Harborview Value Master
Fund, L.P., in the principal amount of $181,818.18, plus all accrued interest;

		(iv)	chatAND, Inc. Senior Secured Convertible Promissory Note No. 4, in favor of Endicott Management
Partners, LLC, in the principal amount of $181,818.18, plus all accrued interest; and

		(v)	chatAND, Inc. Senior Secured Convertible Promissory Note No. 5, in favor of The Corbran LLC, in
the principal amount of $77,272.73, plus all accrued interest.

 

3.           FORBEARANCE. So
long as this Agreement is not terminated as provided in Section 7 hereof,the Buyers agree that they will not exercise any
rights under the Notes arising from the occurrence of the Subject Defaults from the date hereof until December20, 2012 (“Effective
Period”). The Company agrees that upon the expiration of the Effective Period or the termination of the Effective
Period under the provisions ofSection7 hereof, or if all amounts due and owing under the Notes are not paid in full on the expiration
of the Effective Period, then the Buyers may exercise any and all rights available under the Notes, pursuant to applicable law,
under equity, or otherwise. Nothing in this Agreement constitutes a waiver of present Events of Default or future Events of Default
or a waiver of any Buyer’s right to insist upon compliance by all other relevant parties with the Transaction Documents.

 

4.           COVENANTS AND ACKNOWLEDGMENTS.

 

(a)     Except as specifically
set forth herein, the Company agrees to comply with all provisions of the Transaction Documents applicable to the Company, including,
without limitation, all of the payment terms under the Transaction Documents.

 

(b)     Within 5 days of
the date hereof, the Company shall take any and all actions as may be required under the laws of its state of incorporation, its
Organic Documents and any all other applicable laws set forth by any Governmental Authority in order to (i) causeMichael Lebor,
David Rosenberg and Philip Friedman to resign as a member of the Company’s Board of Directors, and (ii)cause the election
or reelection of all directors designated by the Buyers, which designees shall initially be David Berger, Richard Rosenblum and
Kenneth Londoner, to serve as all of the sole members of the Company’s Board of Directors from the date hereof until such
director designee’s resignation, death, removal or disqualification; provided, however, that each director
designee may subsequently only be removed by the Company’s Board of Directors, absent a vote for such removal by the holders
of the Company’s capital stock entitled to vote on such matters in accordance with any applicable laws set forth by any Governmental
Authority, for gross negligence or a material breach of such director designee’s fiduciary or similar duties owed to the
Company. In the event of the resignation, death, removal or disqualification of any director designee at any time after the date
hereof, the Buyers shall be entitled to nominate a replacement director and, after the Company’s Board of Directors has approved
such designee, the Company’s Board of Directors shall, subject to any requisite approvals of any holders of the Company’s
capital stock entitled to vote on such matters, take such actions as may be necessary under the laws of its state of incorporation,
its Organic Documents and any all other applicable laws set forth by any Governmental Authority to elect such nominee to the Company’s
Board of Directors to serve until his or her resignation, death, removal or disqualification or until his or her successor is duly
elected. The Company shall not take any action to increase or decrease the size of the Company’s Board of Directors without
the express written consent of each Buyer.

 

    	2

    	 

    
 

(c)     Within 5 days of
the date hereof, the Company shall take, and shall cause Chatand Tech, LLC, a Nevada limited liability company and a wholly-owned
subsidiary of the Company (“Subsidiary”), to take, any and all actions as may be required under the laws
of Subsidiary’s state of formation, Subsidiary’s Organic Documents and any all other applicable laws set forth by any
Governmental Authority in order to (i) cause the election of the followingmanagers designated by the Buyers, which designees shall
initially be Richard Rosenblumand Kenneth Londoner, to serve as members of Subsidiary’s board of managers from the date hereof
until such manager designee’s resignation, death, removal or disqualification; provided, however, that each
manager designee may subsequently only be removed by Subsidiary’s board of managers, absent a vote for such removal by the
holders of Subsidiary’s membership interests entitled to vote on such matters in accordance with any applicable laws set
forth by any Governmental Authority or the Subsidiary’s Organic Documents, for gross negligence or a material breach of such
manager designee’s fiduciary or similar duties owed to Subsidiary. In the event of the resignation, death, removal or disqualification
of any manager designee at any time after the date hereof, the Buyers shall be entitled to nominate a replacement manager and,
after Subsidiary’s board of managers has approved such designee, Subsidiary’s board of managers shall, subject to any
requisite approvals of any holders Subsidiary’s membership interests entitled to vote on such matters, take such actions
as may be necessary under the laws of Subsidiary’s state of formation, its Organic Documents and any all other applicable
laws set forth by any Governmental Authority to elect such nominee to Subsidiary’s board of managers to serve until his or
her resignation, death, removal or disqualification or until his or her successor is duly elected. The Company shall not, and shall
cause Subsidiary not to, take any action to increase or decrease the size of Subsidiary’s Board of Directors, which shall
be fixed at four persons, without the express written consent of each Buyer.The Company shall not, and shall cause Subsidiary not
to, take any action toamend or restate the Organic Documents of the Subsidiary without the express written consent of each Existing
Shareholder.

 

(d)     As of the date of
this Agreement, the Company shall cancel the Existing Shareholder Warrants. By execution of the signature page hereto, the Existing
Shareholders affirm the cancelation of theExisting Shareholder Warrants

 

5.           AMENDMENTS
TO TRANSACTION DOCUMENTS. As a condition precedent to the effectiveness of this Agreement, the Buyers and the Company
agree that:

 

(a)     Section 1 of each
Warrant is hereby deleted in its entirety and replaced as follows:

 

“1.     Term. The
term of this Warrant shall commence on June 17, 2011 and shall expire at 6:00 p.m., Eastern Standard Time, on June 17, 2018 (such
period being the “Term”).”; and

 

(b)     Section 3.07 of
the Notes is hereby deleted in its entirety.

 

6.           CONDITIONS PRECEDENT.
Notwithstanding any contrary provision herein, this Agreement is not effective unless and until (unless expressly waived in writing
by the Buyers):

 

(a)     the representations
and warranties in this Agreement are true and correct;

 

(b)     the Buyers receive
counterparts of this Agreement executed by each party on the signature pages of this Agreement;

 

    	3

    	 

    
 

(c)     the Buyers receive
certified resolutions of the Company (which are in the form and substance satisfactory to the Buyers), authorizing the execution,
delivery, and performance of its obligations under this Agreement;

 

(d)     the Buyers receive
certified resolutions of Subsidiary (which are in the form and substance satisfactory to the Buyers), authorizing the execution,
delivery, and performance of the obligations under Section 4(c) hereof; and

 

(e)     the Buyers receive
from the Company payment of counsel’s estimated legal fees and expenses pursuant to Section 10 hereof.

 

7.           TERMINATION OF FORBEARANCE.
The forbearance will terminate upon the expiration of the Effective Period and shall be terminated upon the occurrence of any
of the following events described below:

 

(a)     Any Event of Default
(other than Subject Defaults) occurs;

 

(b)     Any representation
or warranty of the Company set forth herein is not true and correct; and

 

(c)     The Company fails
to comply with any covenant as set forth herein.

 

8.           RATIFICATIONS. The
Company (a) ratifies and confirms all provisions of the Transaction Documents, (b) ratifies and confirms that all guaranties,
assurances, and Liens granted, conveyed, or assigned to the Buyers under the Transaction Documents are not released, reduced,
or otherwise adversely affected by this agreement and continue to guarantee, assure, and secure full payment and performance of
the present and future obligation, and (c) agrees to perform such acts and duly authorize, execute, acknowledge, deliver, file,
and record such additional documents and certificates as any Buyer may request in order to create, perfect, preserve, and protect
those guaranties, assurances, and Liens.

 

9.           REPRESENTATIONS.
The Company represents and warrants to the Buyers that as of the date of this Agreement (a) the Company has all requisite authority
and power to execute, deliver, and perform its obligations under this Agreement, which execution, delivery, and performance have
been duly authorized by all necessary corporate action, require no action by or filing with any governmental authority,do not violate
its Organic Documents or violate any laws, rules, or regulations applicable to it or any material agreement to which it or its
assets are bound, (b) upon execution and delivery by all parties to it, this Agreement will constitute the legal and binding obligation
of the Company, enforceable against it in accordance with this Agreement’s terms, (c) all representations and warranties
made by the Company in the Transaction Documents are true and correct in all material respects. In addition, the Company represents
and warrants to the Buyers that as of the date of this Agreement, except for the Subject Defaults, no Events of Default exist.

 

10.           EXPENSES. The
Company shall pay all costs, fees, and expenses paid or incurred by the Company incident to this Agreement, including, without
limitation, the reasonable fees and expenses of the Buyers’ counsel in connection with the negotiation, preparation, delivery,
and execution of this document and any related documents.

 

    	4

    	 

    
 

11.           MISCELLANEOUS. This
Agreement is a “Transaction Document” referred to in the Purchase Agreement. Unless stated otherwise (a) the
singular number includes the plural and vice versa and words of any gender include each other gender, in each case, as appropriate,
(b) headings and captions may not be construed in interpreting provisions, (c) if any part of this document is for any reason
found to be unenforceable, all other portions of it nevertheless remain enforceable, and (e) this document may be executed in any
number of counterparts with the same effect as if all signatories had signed the same document, and all of those counterparts must
be construed together to constitute the same document.

 

12.           GOVERNING LAW.
The provisions of Section 7.8 of the Purchase Agreement regarding governing law, submission to jurisdiction, waiver of venue, service
of process and waiver of jury trial are incorporated herein by reference as though specifically set forth herein, mutatis mutandi.

 

13.           ENTIRETIES. THIS DOCUMENT
REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES ABOUT THE SUBJECT MATTER OF THIS DOCUMENT AND MAY NOT BE CONTRADICTED BY EVIDENCE
OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

14.            PARTIES. This document
binds and inures to the Company and the Buyers, and their respective successors and assigns.

 

Remainder
of page intentionally blank.

Signature
page follows.

 

 

 

    	5

    	 

    
 

IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first above written.

 

 

	COMPANY:	 	BUYERS: 

	 
	 	 	 	 	 
	chatAND, Inc., as the Company

	 	HARBORVIEW VALUE MASTER FUND, L.P. 

	 
	 	 	 	 	 
	 	 	 	 	 
	By:	/s/	 	By:	/s/	 
	 	Name: Michael Lebor	 	 	Name: Richard Rosenblum	 
	 	Title: Chief Executive Officer	 	 	Title:	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	THE CORBRAN LLC

	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	By:	/s/	 
	 	 	 	 	Name: Richard Rosenblum	 
	 	 	 	 	Title:	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	EXISTING SHAREHOLDERS:

	 	STACY CAPITAL GROUP LLC 

	 
	 	 	 	 	 	 
	 	 	 	 	 	 
	 	/s/	 	By:	/s/	 
	 	MICHAEL LEBOR	 	 	Name: Solomon Eisenberg	 
	 	 	 	 	Title:	 
	 	 	 	 	 	 
	 	
        

         
	 	 	
        ENDICOTT MANAGEMENT PARTNERS, LLC

        
	 
	 	/s/	 	 	 	 
	 	DAVID ROSENBERG	 	 	 	 
	 		 	By:	/s/	 
	 		 	 	Name: Kenneth Londoner	 
	 	 	 	 	Title:	 
	 	 	 	 	 	 
	 	 	 	 	
         
	 
	 	 	 	 	 	 
	 	 	 	 	/s/	 
	 	 	 	 	DAVID STEFANSKY	 

  

 

	
        Signature Page

        Forbearance Agreement

 

    	 

    	 	

    
 

SCHEDULE OF BUYERS

 

	Buyer’s Name	 	Original Principal Amount of Notes	 
	 	 	 	 	 
	Stacy Capital Group LLC 
	 	$	204,545.45	 
	 	 	 	 	 
	David Stefansky	 	$	204,545.45	 
	 	 	 	 	 
	Harborview Value Master Fund, L.P. 
	 	$	181,818.18	 
	 	 	 	 	 
	Endicott Management Partners, LLC	 	$	181,818.18	 
	 	 	 	 	 
	The Corbran LLC	 	$	77,272.73

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