Document:

Exhibit 10.2

 

THIRD AMENDMENT
AND CONSENT

TO AMENDED AND RESTATED LOAN AGREEMENT

 

This Third
Amendment and Consent to Amended and Restated Loan Agreement is entered into as
of July 31, 2008 (the “Amendment”) by and between COMERICA BANK (“Bank”)
and CLARIENT, INC. (“Borrower”).

 

RECITALS

 

Borrower and Bank
are parties to that certain Amended and Restated Loan Agreement dated as of February 28,
2008, as amended by that certain First Amendment and Waiver to Amended and
Restated Loan Agreement dated as of March 14, 2008, and that certain
Second Amendment to Amended and Restated Loan Agreement dated as of March 21,
2008 (as so amended, the “Agreement”). 
Borrower proposes to incur additional indebtedness (the “Additional Debt”)
pursuant to a Credit Agreement among between Gemino Healthcare Finance, LLC (“Gemino”),
Borrower and other borrowers named therein, dated as of July 31, 2008 (as
amended, restated, supplemented or otherwise modified from time to time, the “Gemino
Credit Agreement”).  Borrower has
requested that Bank consent to the incurrence and repayment of the Additional
Debt, and Bank has agreed to do so in accordance with this Amendment.  Additionally, the parties desire to further
amend the Agreement in accordance with the terms of this Amendment.

 

NOW, THEREFORE,
the parties agree as follows:

 

1.                                      Upon
the effectiveness of this Amendment, Bank (i) consents to Borrower
entering into the Gemino Credit Agreement and the incurrence of the Additional
Debt pursuant thereto; (ii) consents to the liens granted by Borrower to
Gemino pursuant to the Gemino Credit Agreement; (iii) notwithstanding Section 7.11
of the Agreement, hereby consents to the Borrower agreeing to include a “negative
pledge” covenant in the Gemino Credit Agreement;  (iv) notwithstanding Section 6.6 of
the Agreement, hereby consents to Borrower and its Subsidiaries’ moving their
lockbox operations and related accounts currently maintained at Bank (including
Account Nos. 1893118115 and 1892036953) to another institution in accordance
with the Gemino Credit Agreement and (v) notwithstanding Section 7.9
of the Agreement, hereby consents to the amendment by Borrower and Safeguard
Delaware, Inc. (“Safeguard”) of that certain Amended and Restated Senior
Subordinated Revolving Credit Agreement dated March 14, 2008 (“Safeguard
Senior Credit Agreement”), which amends the Safeguard Senior Credit Agreement
by, among other things, allowing Borrower to enter into the Gemino Credit
Agreement to replace a portion of the amounts Safeguard advanced to Borrower to
pay off its obligations to GE Capital. 
Bank waives any default or event of default under the Agreement
resulting from Borrower’s incurrence of the Additional Debt and its execution
of the Gemino Credit Agreement, including the moving of accounts set forth in
clause (iv) above.  Bank
acknowledges that the Additional Debt shall be deemed “Permitted Indebtedness”
under the Agreement and the liens granted by Borrower pursuant to the Gemino
Credit Agreement shall be deemed “Permitted Liens” under the Agreement.

 

2.                                      The
following defined terms are hereby added to Section 1.1 of the Agreement
to read as follows:

 

“EBITDA” means,
for any period, the sum of (i) net
income of Borrower and its Subsidiaries for such period, plus (ii) amounts
deducted in the calculation of such net income for (A) interest expense, (B) charges
against income for foreign, federal, state and local taxes, (C) depreciation
and amortization, and (D) stock based compensation, all determined on a
consolidated basis for Borrower and its Subsidiaries in accordance with GAAP.

 

“Gemino Credit Agreement” means that certain Credit Agreement by and
among Gemino Healthcare Finance, LLC, Borrower, Clarient Diagnostic Services, Inc.,
and ChromaVision International, Inc., dated as of July 31, 2008 (as
amended, restated, supplemented or otherwise modified from time to time).

 

3.                                      Clause
(d) of the definition of Permitted Indebtedness is hereby amended in its
entirety to read as follows:

 

 

(d)                                Subordinated
Debt, and Indebtedness under the Gemino Credit Agreement; and

 

4.                                      Clause
(d) of the definition of Permitted Liens is hereby amended in its entirety
to read as follows:

 

(d)                                Liens
upon or in any accounts receivable or inventory of Borrower or any of its
Subsidiaries, and Liens securing the obligations of Borrower and its
Subsidiaries under the Gemino Credit Agreement; and

 

5.                                      Section 6.8
of the Agreement is hereby amended in its entirety to read as follows:

 

6.8                              EBITDA.  Borrower to maintain minimum EBITDA on a
cumulative, year to date basis for periods set forth below, of at least the
stated amount, in each case measured quarterly at the end of each fiscal
quarter:

 

	
  Period

  	
   

  	
  Minimum
  EBITDA

  
	
   

  	
   

  	
   

  
	
  For the period from 1/01/08 – 9/30/08

  	
   

  	
  $ 2,000,000

  
	
  For the period from 1/01/08 – 12/31/08

  	
   

  	
  $ 2,900,000

  
	
  Thereafter

  	
   

  	
  as may be re-set based
  on Borrower’s Board-approved plan for FYE 2009

  

 

6.                                      Exhibit C
attached to the Agreement is replaced with Exhibit C attached
hereto.

 

7.                                      Unless
otherwise defined, all initially capitalized terms in this Amendment shall have
the respective meanings set forth in the Agreement.  The Agreement, as amended hereby, shall be
and remain in full force and effect in accordance with its terms and hereby is
ratified and confirmed in all respects. 
Except as expressly set forth herein, the execution, delivery, and
performance of this Amendment shall not operate as a waiver of, or as an
amendment of, any right, power, or remedy of Bank under the Agreement, as in
effect prior to the date hereof. 
Borrower ratifies and reaffirms the continuing effectiveness of all
promissory notes, guaranties, security agreements, mortgages, deeds of trust,
environmental agreements, and all other instruments, documents and agreements
entered into in connection with the Agreement.

 

8.                                      This
Amendment may be executed in two or more counterparts, each of which shall be
deemed an original, but all of which together shall constitute one instrument
(and delivered via facsimile or electronic transmission).

 

9.                                      As
a condition to the effectiveness of this Amendment, Bank shall have received,
in form and substance reasonably satisfactory to Bank, the following:

 

(a)                                  this
Amendment, duly executed by Borrower;

 

(b)                                 an
affirmation and amendment to subordination agreement (Safeguard Delaware, Inc.);

 

(c)                                  an
affirmation of guaranty (Safeguard Delaware, Inc.);

 

(d)                                 an
amount equal to all Bank Expenses incurred through the date of this Amendment;
and

 

(e)                                  such
other documents, and completion of such other matters, as Bank may reasonably
deem necessary or appropriate.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

IN WITNESS
WHEREOF, the undersigned have executed this Amendment as of the first date
above written.

 

	
   

  	
  CLARIENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Raymond J. Land

  
	
   

  	
   

  
	
   

  	
  Title: Chief Financial
  Officer and Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMERICA BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Todd A. McDonald

  
	
   

  	
   

  
	
   

  	
  Title: SVPExhibit 10.3

 

FIRST AMENDMENT AND
CONSENT

 

OF

 

AMENDED AND RESTATED
SENIOR SUBORDINATED REVOLVING CREDIT AGREEMENT

 

THIS FIRST AMENDMENT AND
WAIVER OF AMENDED AND RESTATED SENIOR SUBORDINATED REVOLVING CREDIT AGREEMENT
(this “Amendment”) is made and
entered into as of July 31, 2008, by and among CLARIENT, INC, a Delaware
corporation (“Borrower”), and SAFEGUARD
DELAWARE, INC., a Delaware corporation (the “Lender”).  Capitalized terms used but not defined herein
shall have the meanings given to them in that certain Amended and Restated
Senior Subordinated Revolving Credit Agreement dated March 14, 2008 (the “Agreement”) between Lender and
Borrower.

 

RECITALS:

 

WHEREAS, Borrower is on the
date hereof  entering into a Replacement
Capital Facility through a Credit Agreement with Gemino Healthcare Finance, LLC
(“Gemino”) (in substantially the form
attached hereto as Exhibit A), which will provide Borrower capital
and under which Borrower will incur additional Indebtedness (the “Gemino Financing”); and

 

WHEREAS,
Borrower has requested, and Lender has agreed, to consent to the Gemino
Financing and amend and waive certain terms of the Agreement, to accommodate
the Gemino Financing.

 

NOW, THEREFORE, in
consideration of the premises and mutual covenants and obligations hereafter
set forth and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto, intending to
be legally bound, hereby agree as follows:

 

1.                                      Consent and Waiver. 
Lender hereby consents to Borrower’s entry into the Gemino Financing
(including the indebtedness incurred and the security interests granted in
connection therewith) and waives the application of Section 5.3 of the
Agreement with respect thereto.  Lender
and Borrower agree that the Gemino Financing constitutes a Replacement Capital
Facility.

 

2.                                      Amendment to Definitions.

 

(a)                                 The definition of “Capital Transaction” is
hereby amended and restated to read as follows:

 

“Capital
Transaction” means the issuance by Borrower of (x) debt
from a single source (or affiliated sources) or in a single syndicated
facility,  (y) equity (including
debt convertible to equity) or (z) both (x) and (y) if the debt
and equity are from a single source or affiliated sources, whether in a single
transaction or series of directly related transactions, which results in net
proceeds to Borrower not less than the greater of (i) fifteen million
dollars ($15,000,000) or (ii) the Outstanding Amounts on the date of the
first closing of such transaction.

 

(b)                                The definition of “Replacement Capital
Facility” is hereby amended and restated to read as follows:

 

“Replacement
Capital Facility” means any credit facility (which may include
an accounts receivable and/or capital leasing debt facility) provided by a
third party, which 

 

 

may be secured by all or a
portion of the Borrower’s assets, provided that any credit facility
which has a lien securing debt permitted pursuant to Section 5.1(a)(iii) shall
not be a Replacement Capital Facility hereunder.

 

3.                                      Amendment of Section 2.7(b)(i).  Section 2.7(b)(i) of
the Agreement is hereby amended and restated to read as follows:

 

(i)                                     Immediately upon the closing of the first Replacement Capital Facility,
Borrower shall cause to be paid to Lender a one-time repayment of Outstanding
Amounts in an amount equal to $4,600,000.

 

4.                                      Amendment of Section 2.7(b)(ii).  Section 2.7(b)(ii) of
the Agreement is hereby amended and restated to read as follows:

 

(ii)                                  Immediately upon the closing of a Capital Transaction, Borrower shall
cause to be paid to Lender a one-time repayment of the Outstanding Amounts to
the extent of the net cash proceeds of such Capital Transaction; provided that
if the Capital Transaction has multiple closings, the net proceeds of each
closing shall first (and immediately upon each such closing) be used to repay
any Outstanding Amounts until no Outstanding Amounts remain.  Upon the repayment of the Outstanding
Amounts, the remaining net cash proceeds shall be retained by Borrower.  The Commitment shall be immediately and irrevocably
reduced, dollar-for-dollar, for payments made pursuant to this Section 2.7(b)(ii), subject to a minimum Commitment irrespective of such
payment(s) of six million dollars ($6,000,000).  Upon the reduction of the Commitment to
$6,000,000 in accordance with the preceding sentence, all payment obligations
of Borrower under this Section 2.7(b)(ii) shall
be deemed satisfied.

 

5.                                      New Section 2.7(b)(v).                           A new Section 2.7(b)(v) is
hereby added to the Agreement, as follows:

 

(v)                                 At such time as, in the aggregate, more than $4,600,000 becomes
available under all then-outstanding Replacement Capital Facilities, Borrower
shall repay the Outstanding Amounts in an amount equal to the lesser of (x) such
excess or (y) the amount equal to $2,904,168 less the sum of payments
previously made pursuant to this Section 2.7(b)(v) and
Section 2.7(b)(ii).  For the
avoidance of doubt, (A) the application of Sections 2.7(b)(i) and 2.7(b)(v) shall not cause Borrower to
repay Outstanding Amounts of more than (in the aggregate) the lesser of
$7,504,168 or the Outstanding Amounts and (B) Borrower shall only make
payments pursuant to this Section 2.7(b)(v) if and when permitted by
the Subordination Agreements.

 

6.                                      Amendment of Section 5.1(a)(i).  Clause (i) of Section 5.1(a) of
the Agreement is hereby amended and restated to read as follows:

 

(i) amounts outstanding from time to time under (x) the
Comerica Agreement and refinancings thereof (which refinancings shall be
subject to the prior written consent of Lender), or (y) any Replacement
Capital Facility (and refinancings thereof);

 

5.                                      Amendment of Section 5.5.  Section 5.5
of the Agreement is hereby amended and restated to read as follows:

 

5.5                                 Replacement Capital
Facility; Capital Transaction.  At
the request of Lender (but subject to the Subordination Agreements) Borrower
shall promptly and diligently take all 

 

 

reasonably necessary actions to execute and
deliver all instruments, financing statement terminations, certificates,
agreements or other documents to transfer to Lender substantially the rights
that GE Capital had to the assets of Borrower under the GE Capital Facility
(the “A/R and Asset Security Interests”)
other than with respect to those assets in which Borrower grants Gemino
Healthcare Finance, LLC (“Gemino”) a lien and security interest in connection
with the Replacement Capital Facility entered into with Gemino. In connection
with the closing of any Replacement Capital Facility after the Gemino
Financing, Lender shall promptly and diligently take all actions reasonably
necessary to terminate all instruments, financing statements, certificates,
agreements or other documents and to release the A/R and Asset Security
Interests Lender has which are required to secure such Replacement Capital
Facility, and execute appropriate subordination agreements and/or amendments
thereto and take such other actions as may be reasonably necessary so as to
enable Borrower to consummate such Replacement Capital Facility.  In addition, to the extent not previously
released, after Borrower has paid to Lender all amounts paid by or on behalf of Borrower to terminate the GE Capital
Facility under Sections 2.7(b)(i) and
2.7(b)(v), (i) Lender’s rights in the A/R and Asset Security Interests
shall automatically terminate, and (ii) Lender shall promptly and
diligently take all actions reasonably necessary to release any remaining
rights it has to the A/R and Asset Security Interests.  Borrower shall reimburse Lender for its
reasonable out-of-pocket expenses (including professional fees) relating to the
release of the A/R and Asset Security Interests.  Furthermore Lender agrees to cooperate in
good faith with Borrower so as to facilitate the completion of a Capital
Transaction and/or Replacement Capital Facilities, including (by way of
example), by approving an amendment to Borrower’s certificate of incorporation
to authorize a reasonably sufficient number of additional shares of Borrower’s
common stock, providing waivers of preemptive rights, registration rights
and/or advance notification requirements in connection with such transactions.

 

Except for capitalized terms defined only in this Amendment and as
expressly set forth above, no amendment, consent or waiver is intended by
Borrower or Lender.  This Amendment may
be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

 

[signature
page follows]

 

 

IN WITNESS WHEREOF, the Undersigned have executed this First Amendment
and Consent as of the date first written above.

 

	
  LENDER:

  	
   

  	
  BORROWER:

  
	
   

  	
   

  	
   

  
	
  SAFEGUARD DELAWARE, INC.

  	
   

  	
  CLARIENT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Stephen T. Zarrilli

  	
   

  	
  By:

  	
  /s/ Raymond Land

  
	
  Name: Stephen T. Zarrilli

  	
   

  	
  Name: Raymond Land

  
	
  Title: Vice President and Treasurer

  	
   

  	
  Title: Chief Financial Officer and Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00145-of-00352.parquet"}]]