Document:

Waiver and Amendment Agreement dated February 4, 2014 and between Mattson Technology, Inc. and Silcon Valley Bank

EXHIBIT 10.1

February 4, 2014

Mattson Technology, Inc.
47131 Bayside Parkway
Fremont, CA 94538
Attn:  Michael Dodson

		
	Re:
	Waiver and Amendment Agreement (this “Letter Agreement”) relating to that certain Credit Agreement, dated as of April 12, 2013, among Mattson Technology, Inc., a Delaware corporation (the “Borrower”), the Lenders named therein as parties thereto, and Silicon Valley Bank, a California corporation, in its capacity as administrative agent for such Lenders (in such capacity, the “Administrative Agent”) (as amended prior to the date hereof, the “Credit Agreement”, the terms defined therein and not otherwise defined herein being used herein as therein defined).

Dear Mr. Dodson:

An Event of Default has occurred under Section 8.1(c) of the Credit Agreement solely as a result of the breach by the Borrower of the minimum Consolidated EBITDA covenant set forth in Section 7.1(b) of the Credit Agreement with respect to the covenant test date thereunder that occurred on December 31, 2013 (such Event of Default being the “Specified Event of Default”).  The Borrower has requested that the Administrative Agent and Silicon Valley Bank, a California corporation, as the current sole Lender under the Credit Agreement, waive the Specified Event of Default for all purposes under the Credit Agreement, and the Administrative Agent and such sole Lender have agreed to provide such waiver with effect from and after the Effective Date (defined below) and upon the terms and conditions set forth herein.  

The Borrower has also requested that the Administrative Agent and the sole Lender agree to amend the Credit Agreement in the manner specified herein.  The Administrative Agent and the sole Lender have agreed to so amend the Credit Agreement, subject to the terms and conditions set forth herein.

Accordingly, subject to the satisfaction of the conditions to effectiveness described in Section 4 hereof, the parties hereto hereby agree as follows:

1.    Waiver.  Notwithstanding anything to the contrary set forth in the Credit Agreement or the other Loan Documents, and subject to the satisfaction of the conditions to effectiveness specified in Section 4 hereof, the Administrative Agent and the sole Lender hereby waive the Specified Event of Default for all purposes under the Credit Agreement as of the Effective Date.
2.    Amendments to Credit Agreement.  With effect from and after the Effective Date, the Credit Agreement shall be amended as follows:

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(a)    Section 7.1(b) of the Credit Agreement shall be amended and restated to read in its entirety as follows:

(b)    Minimum Consolidated EBITDA.  Permit Consolidated EBITDA, determined as of the last day of each fiscal quarter of the Borrower specified below and with reference to the two consecutive fiscal quarter period of the Borrower then ended, to be less than the correlative amount specified below for such period:
	
		
	Two Fiscal Quarter Period Ending
	Minimum Consolidated EBITDA

	March 31, 2013
	$(12,500,000)

	June 30, 2013
	$(11,000,000)

	September 30, 2013
	$(3,000,000)

	December 31, 2013
	$6,000,000

	March 31, 2014
	$6,000,000

	June 30, 2014 and thereafter
	Determined as set forth  
immediately below

In the event that the Consolidated Quick Ratio of the Borrower, determined as of the last day of any fiscal quarter of the Borrower occurring on or after June 30, 2014, (i) equals or exceeds 1.25:1.00, the Borrower shall not permit Consolidated EBITDA, determined as of the last day of such fiscal quarter and with reference to the two consecutive fiscal quarter period of the Borrower then ended, to be less than $6,000,000, and (ii) is less than 1.25:1.00, the Borrower shall not permit Consolidated EBITDA, determined as of the last day of such fiscal quarter and with reference to the two consecutive fiscal quarter period of the Borrower then ended, to be less than $10,000,000.

(b)    The form of Compliance Certificate set forth at Exhibit B to the Credit Agreement shall be amended and restated in the form set forth as Exhibit B to this Letter Agreement.

3.    Representations and Warranties.  In order to induce the Administrative Agent and the sole Lender to provide the waiver specified in Section 1 hereof and to amend the Credit Agreement in the manner specified in Section 2 hereof, the Borrower represents and warrants to the Administrative Agent and the sole Lender that:

(a)    no Default or Event of Default (other than the Specified Event of Default) exists immediately before or immediately after giving effect to the waiver contemplated in Section 1 above;

(b)    the execution, delivery and performance by the Borrower of this Letter Agreement have been duly authorized by all necessary corporate or other action on the part of the Borrower and do not and will not require any registration with, consent or approval of, or notice to or action by, any Person (including any Governmental Authority) in order to be effective and enforceable;

(c)    this Letter Agreement and the other Loan Documents constitute the legal, valid and binding obligations of the Borrower and each other Loan Party party hereto or thereto, and are enforceable against each such Person in accordance with their respective terms, without defense, counterclaim or offset; and

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(d)    each of the representations and warranties made by each Loan Party in or pursuant to any Loan Document (i) that is qualified by materiality shall be true and correct, and (ii) that is not qualified by materiality, shall be true and correct in all material respects, in each case, on and as of the date hereof, except to the extent that any such representation and warranty specifically relates to an earlier date, in which case such representation and warranty shall have been true and correct in all material respects as of such earlier date.

4.    Conditions to Effectiveness.  This Letter Agreement shall become effective as of the date (the “Effective Date”) upon which each of the following conditions precedent is satisfied:

(a)    the Administrative Agent shall have received from the Borrower and the Required Lenders duly executed original (or, if elected by the Administrative Agent, executed facsimiles followed promptly by executed originals) counterparts of this Letter Agreement; 

(b)    the Administrative Agent shall have received from the Guarantor party thereto a duly executed original of the Guarantor Acknowledgment and Consent attached hereto as Exhibit A;

(c)    the Borrower shall have paid to the Administrative Agent, in immediately available funds, a waiver and loan modification fee in the amount of $25,000; and

(d)    the Borrower shall have paid, in accordance with Section 10.5 of the Credit Agreement and Section 10 hereof, all reasonable and documented out-of-pocket costs and expenses of the Administrative Agent (including the reasonable and documented fees and disbursements of outside counsel to the Administrative Agent) which have been invoiced to the Borrower prior to the Effective Date.

5.    Reservation.  The Borrower acknowledges and agrees that neither the execution nor the delivery by the Administrative Agent or the Required Lenders of this Letter Agreement shall (a) be deemed to create a course of dealing or otherwise obligate the Administrative Agent or any Lender to grant similar waivers or other modifications of the terms of the Credit Agreement under the same or similar circumstances in the future, or (b) be deemed to create an implied waiver of any right or remedy of the Administrative Agent or the sole Lender with respect to any term or provision of any Loan Document (including any term or provision relating to the occurrence of a Material Adverse Effect).

6.    Governing Law.  THIS LETTER AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA.  This Letter Agreement is subject to the provisions of Section 10.14 of the Credit Agreement relating to jurisdiction, venue, jury trial waiver and judicial reference, which provisions are by this reference incorporated herein, mutatis mutandis, as if set forth herein in full.

7.    Successors and Assigns.  This Letter Agreement shall be binding upon and inure to the benefit of the parties hereto and to the benefit of their respective successors and assigns.  No third party beneficiaries are intended in connection with this Letter Agreement.

8.    Entire Agreement; Amendments.  This Letter Agreement, together with the Credit Agreement and the other Loan Documents, contains the entire and exclusive agreement of the parties hereto with reference to the matters discussed herein and therein.  This Letter Agreement supersedes all prior drafts and communications with respect hereto and may not be amended except in accordance with the provisions of Section 10.1 of the Credit Agreement.

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9.    Severability.  If any term or provision of this Letter Agreement shall be deemed prohibited by or invalid under any applicable law, such provision shall be invalidated without affecting the remaining provisions of this Letter Agreement, respectively.

10.    Reimbursement of Costs and Expenses.  The Borrower covenants, in accordance with Section 10.5 of the Credit Agreement, to pay or reimburse the Administrative Agent, upon demand, for all reasonable and documented costs and expenses incurred by the Administrative Agent in connection with the development, preparation, negotiation, execution and delivery of this Letter Agreement.

11.    Counterparts.  This Letter Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all such counterparts together shall constitute but one agreement.

12.    Loan Document.  This Letter Agreement shall constitute a Loan Document.

(Remainder of page intentionally left blank; signature page follows)

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Please indicate your acknowledgement of and agreement with the terms and provisions set forth in this Letter Agreement by countersigning and returning two originally-executed counterpart signature pages hereto to the attention of Lance Peterson at Morrison & Foerster LLP, 425 Market Street, 32nd Floor, San Francisco, CA 94105.

Very truly yours,

SILICON VALLEY BANK, as
Administrative Agent and sole Lender

	
			
	By:
	/s/ Gregory Peterson
	 

	Name:
	   Gregory Peterson
	 

	Title:
	Vice President
	 

ACKNOWLEDGED AND AGREED:

MATTSON TECHNOLOGY, INC., as
the Borrower

	
			
	By:
	/s/ J. Michael Dodson
	 

	Name:
	   J. Michael Dodson
	 

	Title:
	Chief Operating Officer and Chief Financial Officer
	 

Signature Page to Waiver and Amendment Agreement
sf-3377860form8k_exb101-020314.htm

Stock Option

Granted by

HAMILTON BANCORP, INC.

under the

HAMILTON BANCORP, INC.

2013 EQUITY INCENTIVE PLAN

This stock option agreement (“Option” or “Agreement”) is and will be subject in every respect to the provisions of the 2013 Equity Incentive Plan (the “Plan”) of Hamilton Bancorp, Inc. (the “Company”) which are incorporated herein by reference and made a part hereof, subject to the provisions of this Agreement.  A copy of the Plan has been provided to each person granted a stock option pursuant to the Plan.  The holder of this Option (the “Participant”) hereby accepts this Option, subject to all the terms and provisions of the Plan and this Agreement, and agrees that all decisions under and interpretations of the Plan and this Agreement by the Committee appointed to administer the Plan (“Committee”) or the Board will be final, binding and conclusive upon the Participant and the Participant’s heirs, legal representatives, successors and permitted assigns.  Capitalized terms used herein but not defined will have the same meaning as in the Plan.

 

1. Name of Participant: ___________________

 

2. Date of Grant:  __________ __, 201__

 

3. Total number of shares of Company common stock, $0.01 par value per share, that may be acquired pursuant to this Option:

 

______________ (subject to adjustment pursuant to Section 10 hereof).  The Option will be an Incentive Stock Option to the maximum extent permitted under the tax laws, which means that up to $100,000 of Options that vest in any one calendar year will be Incentive Stock Options (based on the exercise price of the Option).

 

Example:  A participant is granted 37,500 Options that vest in equal installments of 7,500 Options per year over a 5-year period.  The exercise price is $15.50, which is equal to the fair market value of the stock on the date of grant.  Since $15.50 multiplied by 7,500 (the number of Options that vest each year) is $116,250.00,  some of the Options that vest each year will not be Incentive Stock Options.  Based on a $15.50 exercise price, the maximum number of Incentive Stock Options that can vest for any one year is 6,451 ($100,000 ÷ $15.50 = 6,451 (fractional shares are not included)).  The remainder will be Non-Statutory Stock Options.

 

Please note that for purposes of determining the maximum number of Options that can vest in any one calendar year as Incentive Stock Options, the Options granted to you in this Agreement that vest in a calendar year will be aggregated with any earlier Option award that you received that vest in the same calendar year.  If you vest in the maximum number of Incentive Stock Options in which you are permitted to vest for a calendar year under a prior Option award, all Options that you receive under this Agreement that vest in the same calendar year will be considered Non-Statutory Stock Options.

 

 

  

  

  

4.             Exercise price per share:     $_________ (subject to adjustment pursuant to Section 10 below).

	
5.

	
Expiration Date of Option:  _______ __, 202__, subject to earlier expiration in the event of Termination of Service.

 

	
6.

	
Vesting Schedule.  Except as otherwise provided in this Agreement, this Option first becomes exercisable, subject to the Option’s expiration date, in accordance with the vesting schedule specified herein.

 

The Options granted under this Agreement shall vest in five (5) equal annual installments, with the first installment becoming exercisable on the first anniversary of the date of grant, or __________ __, 201__, and succeeding installments on each anniversary thereafter, through ___________ __, 201__.  To the extent the Options awarded to me are not equally divisible by “5,” any excess Options shall vest on _______________ __, 201__.

This Option may not be exercised at any time on or after the Option’s expiration date. Vesting will automatically accelerate pursuant to Section 2.6, 2.9 and 4.1 of the Plan (in the event of death or Disability or Involuntary Termination of Employment following a Change in Control).

 

7.          Exercise Procedure.

 

	
  

	
7.1

	
Delivery of Notice of Exercise of Option.  This Option will be exercised in whole or in part by the Participant’s delivery to the Company of written notice (the “Notice of Exercise of Option” attached hereto as Exhibit A) setting forth the number of shares with respect to which this Option is to be exercised, together with payment by cash or other means acceptable to the Committee, including:

 

	
(i)  

	
by tendering shares of Common Stock valued at Fair Market Value (as defined in Section 7.2 hereof) as of the day of exercise;

 

	
   (ii)  

	
by irrevocably authorizing a third party, acceptable to the Committee, to sell shares of Common Stock (or a sufficient portion of the shares) acquired upon exercise of the Option and to remit to the Company a sufficient portion of the sale proceeds to pay the entire exercise price and any tax withholding resulting from such exercise;

	
(iii)  

	
by a “net settlement” of the Option, using a portion of the shares obtained      on exercise in payment of the Exercise Price of the Option.

	
(iv)  

	
by personal, certified or cashier’s check;

                      (v)           by other property deemed acceptable by the Committee; or

       (vi)           by any combination thereof.

 

	
  

	
7.2

	
“Fair Market Value” shall have the meaning set forth in Section 8.1(s) of the Plan.

 

 

 

  

  

  

 

8.           Delivery of Shares.

	
  

	
8.1

	
Delivery of Shares.  Delivery of shares of Common Stock upon the exercise of this Option will comply with all applicable laws (including the requirements of the Securities Act) and the applicable requirements of any securities exchange or similar entity.

9.           Change in Control.

	
  

	
9.1

	
In the event of the Participant’s Involuntary Termination of Employment following a Change in Control, all Options held by the Participant, whether or not exercisable at such time, will become fully exercisable, subject to the expiration provisions otherwise applicable to the Option.

	
  

	
9.2

	
A “Change in Control” will be deemed to have occurred as provided in Section 4.2 of the Plan.

 

 

10.           Adjustment Provisions.

 

	
  

	
This Option, including the number of shares subject to the Option and the exercise price, will be adjusted upon the occurrence of the events specified in, and in accordance with the provisions of Section 3.4 of the Plan.

 

11.           Termination of Option and Accelerated Vesting.

 

This Option will terminate upon the expiration date, except as set forth in the following  provisions:

 

	
(i)  

	
Death.  This Option will become exercisable as to all shares subject to an outstanding Award, whether or not then exercisable, in the event of the Participant’s Termination of Service by reason of the Participant’s death.  This Option may thereafter be exercised by the Participant’s legal representative or beneficiaries for the lesser of a period of one year following Termination of Service due to death.

 

	
(ii)  

	
Disability.  This Option will become exercisable as to all shares subject to an outstanding Award, whether or not then exercisable, in the event of the Participant’s Termination of Service by reason of the Participant’s Disability. This Option may thereafter be exercised for a period of one year following Termination of Service due to Disability.

 

	
(iii)  

	
Retirement.  If the Participant’s Service terminates due to Retirement (as defined in Section 8.1(dd) of the Plan, unless specifically provided otherwise by the Committee, this Option may thereafter be exercised, to the extent it was exercisable at the time of such termination, for a period of three months following termination, subject to termination on the Option’s expiration date, if earlier.  All unvested Options will be forfeited.

	
(iv)  

	
Termination for Cause.  If the Participant’s Service has been terminated for Cause, all Options that have not been exercised will expire and be forfeited.

	
(v)  

	
Other Termination.  If the Participant’s Service terminates for any reason other than due to death, Disability or for Cause, this Option may thereafter be exercised, to the extent it was exercisable at the time of such termination, for a period of three months following termination, subject to termination on the Option’s expiration date, if earlier.  All unvested Options will be forfeited.

	
  

	
         (vi)

	
Incentive Option Treatment.  The Incentive Stock Options granted hereunder are subject to the requirements of Section 421 of the Internal Revenue Code.  No Option will be eligible for treatment as an Incentive Stock Option in the event such Option is exercised more than three months following Termination of Service (except in the case of Termination of Service due to Disability).  In order to obtain Incentive Stock Option treatment for Options exercised by heirs or devisees of the Participant, the Participant’s death must have occurred while the Participant was employed or within three months of Termination of Service.

 

 

 

  

  

  

12.           Miscellaneous.

	
  

	
12.1

	
No Option will confer upon the Participant any rights as a stockholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights.

	
  

	
12.2

	
This Agreement may not be amended or otherwise modified unless evidenced in writing and signed by the Company and the Participant.

	
  

	
12.3

	
Except as otherwise provided by the Committee, Incentive Stock Options under the Plan are not transferable except (1) as designated by the Participant by will or by the laws of descent and distribution, (2) to a trust established by the Participant, or (3) between spouses incident to a divorce or pursuant to a domestic relations order, provided, however,  that in the case of a transfer described under (3), the Option will not qualify as an Incentive Stock Option as of the day of such transfer.

	
  

	
12.4

	
This Option will be governed by and construed in accordance with the laws of the State of Maryland.

	
12.5          

	
The granting of this Option does not confer upon the Participant any right to be retained in the employ of the Company or any subsidiary.

	
12.6          

	
An Option that is exercised as an Incentive Stock Option is not subject to ordinary income taxes so long as it is held for the requisite holding period, e.g., two (2) years from the date of grant of the Option and one (1) year from the date of exercise, whichever is later.  A Non-Qualified Stock Option will be subject to income tax withholding at the time of exercise.  Upon the exercise of a Non-Statutory Stock Option, the Participant shall have the right to direct the Company to satisfy the minimum required federal, state and local tax withholding by reducing the number of shares of Stock subject to the Non-Qualified Stock Option (without issuance of such shares of Stock to the Stock Option holder) by a number equal to the quotient of (a) the total minimum amount of required tax withholding divided by (b) the excess of the Fair Market Value of a share of Stock on the exercise date over the Exercise Price per share of Stock.

 

 

  

  

  

IN WITNESS WHEREOF, the Company has caused this instrument to be executed in its name and on its behalf as of the date of grant of this Option set forth above.

 

HAMILTON BANCORP, INC.

 

By:_____________________________                                                                

Its:_____________________________                                                                

 

PARTICIPANT’S ACCEPTANCE              

 

The undersigned hereby accepts the foregoing Option and agrees to the terms and conditions hereof, including the terms and provisions of the 2013 Equity Incentive Plan.  The undersigned hereby acknowledges receipt of a copy of the Company’s 2013 Equity Incentive Plan.

 

PARTICIPANT

 

 

_______________________________

                                                                 

  

  

  

EXHIBIT A

NOTICE OF EXERCISE OF OPTION

(BY EMPLOYEE)

I hereby exercise the stock option (the “Option”) granted to me by Hamilton Bancorp, Inc. (the “Company”) or its affiliate, subject to all the terms and provisions set forth in the Stock Option Agreement (the “Agreement”) and the Hamilton Bancorp, Inc. 2013 Equity Incentive Plan (the “Plan”) referred to therein, and notify you of my desire to purchase __________________ shares of common stock of the Company (“Common Stock”) for a purchase price of $_______ per share.

I wish to pay the purchase price by (check one or more, as applicable):

[Any payment to be delivered must accompany this Notice of Exercise of Option]

	
  

	
___

	
Cash or personal, certified or cashier’s check in the sum of $_______, in full/partial payment of the purchase price.

 

	
  

	
___

	
Stock of the Company with a fair market value of $______ in full/partial payment of the purchase price.*

 

	
  

	
___

	
A “net settlement” of the Option whereby I direct the Company to withhold a sufficient number of shares to satisfy the purchase price.

 

	
  

	
___

	
A check (personal, certified or cashier’s) in the sum of $_______ and stock of the Company with a fair market value of $______, in full payment of the purchase price.*

 

	
  

	
___

	
Please sell ______ shares from my Option shares through my broker in full/partial payment of the purchase price.  If my broker requires additional forms in order to consummate this “broker cashless exercise,” I have included them with this election.

 

I understand that after this exercise, ____________ shares of Common Stock remain subject to the Option, subject to all terms and provisions set forth in the Agreement and the Plan.

 

I hereby represent that it is my intention to acquire these shares for the following purpose:

 

___           investment

___           resale or distribution

Please note: if your intention is to resell (or distribute within the meaning of Section 2(11) of the Securities Act of 1933) the shares you acquire through this Option exercise, the Company or transfer agent may require an opinion of counsel that such resale or distribution would not violate the Securities Act of 1933 prior to your exercise of such Option.

 

Date: ____________, _____.                                             _________________________________________

     Participant’s signature

*           If I elect to exercise by exchanging shares I already own, I will constructively return shares that I already own to purchase the new option shares.  If my shares are in certificate form, I must attach a separate statement indicating the certificate number of the shares I am treating as having been exchanged.  If the shares are held in “street name” by a registered broker, I must provide the Company with a notarized statement attesting to the number of shares owned that will be treated as having been exchanged.  I will keep the shares that I already own and treat them as if they are shares acquired by the option exercise.  In addition, I will receive additional shares equal to the difference between the shares I constructively exchange and the total new option shares that I acquire.

 

                                                                 

  

  

  

EXHIBIT B

 

 

ACKNOWLEDGMENT OF RECEIPT OF SHARES

 

 

 

I hereby acknowledge the delivery to me by Hamilton Bancorp, Inc. (the “Company”) or its affiliate on _____________________________, of stock certificates for ____________________ shares of common stock of the Company purchased by me pursuant to the terms and conditions of the Stock Option Agreement and the Hamilton Bancorp, Inc. 2013 Equity Incentive Plan, as applicable, which shares were transferred to me on the Company’s stock record books on ____________________.

 

Date: __________________________                                         ________________________________

Participant’s signature

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