Document:

Exhibit 10.11.1

 

Amendment
No. 1, dated January 29, 2015, to Credit Agreement dated as of July 24, 2014 

between MGC Diagnostics Corporation, Medical Graphics
Corporation

 and BMO Harris Bank N.A.

 

AMENDMENT NO. 1

to

CREDIT AGREEMENT

 

THIS
AMENDMENT NO. 1 TO CREDIT AGREEMENT (“Amendment”) is made as of January 29, 2015, by and among MGC DIAGNOSTICS
CORPORATION, a Minnesota corporation (“Holding Company”), and MEDICAL GRAPHICS CORPORATION, a Minnesota corporation
(“Medical Graphics” and together with Holding Company, individually and collectively, and jointly and severally,
the “Borrower”), and BMO Harris Bank N.A., a national banking
association (the “Bank”).

 

RECITALS:

 

A.        The
Borrower and the Bank are parties to that certain Credit Agreement, dated as of July 24, 2014 (the “Credit Agreement”).

 

B.        The
Borrower has informed the Bank that the Borrower’s Total Leverage Ratio (as defined in the Credit Agreement) at October
31, 2014 was 8.94, which is greater than the covenant maximum of 3.00 set forth in Section 8.2(a) of the Credit Agreement. As a
result of the foregoing, an Event of Default (as defined in the Credit Agreement) has occurred and is continuing under the Credit
Agreement (the “Specified Default”).

 

C.        The
parties each desire to amend the Credit Agreement, as provided herein.

 

AGREEMENTS:

 

IN CONSIDERATION of the premises and mutual
covenants herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties agree as follows:

 

1.        Definitions.
Capitalized terms not otherwise defined in this Amendment have the same meanings as set forth in the Credit Agreement.

 

2.        Amendment
of Section 1.1. Section 1.1 of the Credit Agreement is hereby amended (i) first by deleting the definitions of “EBITDA”,
“Revolving Credit Facility” and “Revolving Note” from such Section, and (ii) then by adding the following
definitions to such Section in their correct alphabetical order:

 

EBITDA: For any period of determination
and with respect to the Borrower on a Consolidated Basis, the sum of net income for such period, plus deductions for Interest
Expense, taxes, depreciation, and amortization for such period, plus foreign exchange losses for such period, minus
foreign exchange gains for such period, all as determined in accordance with GAAP.

 

    	1

    	 

    

 

Revolving Credit Facility:
The revolving credit facility under which the Bank may make Revolving Loans to the Borrower in accordance with Section 2.1,
Section 2.3(g) and/or Section 4.5, up to an aggregate principal amount (including the aggregate maximum amount available
to be drawn under outstanding Letters of Credit and any Unpaid Drawings) at any one time outstanding not to exceed $250,000.

 

Revolving Note: That certain
Revolving Note, dated as of January 29, 2015, executed by the Borrower and made payable to the order of the Bank in the original
principal amount of $250,000, as it may be amended, modified, supplemented, restated or replaced from time to time.

 

3.        Amendment
of Section 2.3(a). Section 2.3(a) of the Credit Agreement is hereby amended by deleting “$500,000” appearing
at the end of such Section, and inserting “$250,000” in its place.

 

4.        Amendment
of Section 8.1(b). Section 8.1(b) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(b)        Within
45 days after the end of each fiscal quarter of the Borrower, a copy of the company-prepared consolidated and consolidating financial
statements of the Borrower and its Subsidiaries prepared in conformity with GAAP (except for the lack of footnotes and other presentation
items), consisting of statements of income and cash flow for such quarter, and a balance sheet as at the end of such quarter, and
certified by the Borrower’s Chief Financial Officer. In addition, for each month that Borrower’s Total Leverage equals
or exceeds 3.00, within 30 days after such month, a copy of the Borrower’s company-prepared financial statements prepared
in conformity with GAAP (except for the lack of footnotes and other presentation items, and except that MediSoft does not need
to be included), consisting of statements of income and cash flow for such month, and a balance sheet as at the end of such month
and certified by the Borrower’s Chief Financial Officer.

 

5.        Amendment
of Section 8.1(c). Section 8.1(c) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

(c)        Within
45 days after the end of each of the first three fiscal quarters of the Borrower and within 90 days after the end of the fourth
fiscal quarter of the Borrower, a Compliance Certificate signed by the Borrower’s Chief Financial Officer.

 

6.        Amendment
of Section 8.2. Section 8.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:

 

Section 8.2        Financial
Covenants.

 

(a)        Maintain
its Total Leverage Ratio (determined at the end of each fiscal quarter commencing July 31, 2015) at not greater than (i) 2.75 on
July 31, 2015, and (ii) 2.50 on October 31, 2015 and thereafter.

 

 

    	2

    	 

    

 

(b)        Maintain
its Adjusted Fixed Charge Coverage Ratio (determined at the end of each fiscal quarter commencing July 31, 2015) at not less than
(i) 1.10 on July 31, 2015, and (ii) 1.25 on October 31, 2015 and thereafter.

 

(c)        Achieve
EBITDA (i) of not less than $0 for the fiscal quarter ending January 31, 2015, and (ii) of not less than $550,000 for the six-month
period ending April 30, 2015.

 

7.        Amendment
of Article 8. Article 8 of the Credit Agreement is hereby amended by adding the following new Section to the end of such
Article:

 

Section 8.16        Maintain
Cash on Deposit. Maintain at all times cash on deposit at the Bank in an amount not less than $3,600,000 (excluding any amount
drawn under the Revolving Credit Facility).

 

8.        Amendment
of Section 9.8. Section 9.8 of the Credit Agreement is hereby amended by amending and restating clause (2) of the last
sentence in Section 9.8 in its entirety to read as follows:

 

(2) any Borrower or its Subsidiaries may make dividends
or distributions or repurchase shares in any amount provided that (x) no Default or Event of Default then exists
or would result therefrom and (y) after giving effect to such dividends, distributions and share repurchases, the Borrower
has a pro forma Adjusted Fixed Charge Coverage Ratio of not less than 1.25 as of the last day of the next two succeeding fiscal
quarter-ends (using reasonable projections for future periods) and the Borrower delivers to the Bank (prior to the dividend/distribution/share
repurchase being made) a certificate showing the pro forma Adjusted Fixed Charge Coverage Ratio; and

 

9.        Amendment
of Article 9. Article 9 of the Credit Agreement is hereby amended by adding the following new Section to the end of such
Article:

 

Section 9.19        Advances
to MediSoft. Make advances, contribute capital or otherwise provide financial accommodations to MediSoft which exceeds €850,000
in the aggregate at any time.

 

10.       Amendment
of Section 10.1. Section 10.1 of the Credit Agreement is hereby amended (i) first by deleting the period at the end of
paragraph (n), and inserting “; or” in lieu thereof, and (ii) then by adding the following new paragraphs to the end
of such Section:

 

(o)        If
any of Todd M. Austin, Matthew S. Margolies or Wesley W. Winnekins ceases to serve as a senior executive of the Borrower in substantially
his current operating capacity, regardless of title, without the prior consultation and approval of the Bank; or

 

(p)        The
Borrower and/or MediSoft shall fail to obtain all “CE Marks” by February 16, 2015, and thereafter shall fail to maintain
such Marks; or

 

(q)        The
Borrower shall fail to comply with Section 8.16 hereof.

 

    	3

    	 

    

 

11.        Conditions
to Effectiveness. The effectiveness of this Amendment is subject to the satisfaction of the following conditions precedent:

 

(a)        The
Bank shall have received a counterpart signature page to this Amendment, duly executed by the Borrower.

 

(b)        The
Bank shall have received the Revolving Note, duly executed by the Borrower.

 

(c)        The
Bank shall have received an amendment fee in the amount of $5,000, which shall be earned in full on the date hereof and shall be
nonrefundable.

 

(d)        The
Borrower shall have no less than $3,600,000 on deposit at the Bank (excluding any amount drawn under the Revolving Credit Facility).

 

12.        Representations
and Warranties. To induce the Bank to enter into this Amendment, the Borrower represents and warrants to the Bank as follows:

 

(a)        The
execution, delivery and performance by the Borrower of this Amendment and any other documents required to be executed and/or delivered
by the Borrower by the terms of this Amendment have been duly authorized by all necessary corporate action, do not require any
approval or consent of, or any registration, qualification or filing with, any government agency or authority or any approval or
consent of any other person, do not and will not conflict with, result in any violation of or constitute any default under, any
provision of the Borrower’s organizational documents, any agreement binding on or applicable to the Borrower or any of its
property, or any law or governmental regulation or court decree or order, binding upon or applicable to the Borrower or of any
of its property and will not result in the creation or imposition of any security interest or other lien or encumbrance in or on
any of its property pursuant to the provisions of any agreement applicable to the Borrower or any of its property, other than liens
in favor of the Bank.

 

(b)        After
giving effect to this Amendment, the representations and warranties contained in the Credit Agreement are true and correct as of
the date hereof as though made on the date hereof except to the extent that such representations and warranties relate solely to
an earlier date.

 

(c)        After
giving effect to this Amendment, there does not exist any Default or Event of Default.

 

13.        Waiver
of Specified Defaults; No Other Waiver. The Bank hereby waives the Specified Default, provided that this waiver
shall not apply to any other Defaults or Events of Default now existing or hereafter arising by reason of the Borrower’s
failure to comply with any other covenants or agreements contained in the Credit Agreement, as amended hereby, including, without
limitation, any additional violations of Section 8.2(a). This Amendment is not intended to operate as, and shall not be construed
as, a waiver of any Default or Event of Default (other than the Specified Default), whether known to the Bank or unknown, as to
which all rights and remedies of the Bank shall remain reserved.

 

    	4

    	 

    

 

 

14.        Binding
Nature of Loan Documents. The Borrower acknowledges and agrees that the terms, conditions and provisions of the Credit
Agreement, as amended hereby, and of each other Loan Document are fully binding and enforceable agreements, and are not subject
to any defense, counterclaim, set off or other claim of any kind or nature. The Borrower hereby reaffirms and restates its duties,
obligations and liabilities under the Credit Agreement, as amended hereby, and each other Loan Document.

 

15.        Reference
to the Loan Documents. From and after the date of this Amendment, each reference in the Credit Agreement to “this
Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the
Credit Agreement, and each reference to the “Credit Agreement”, “Loan Agreement” or “Agreement”,
“thereunder”, “thereof”, “therein” or words of like import referring to the Credit Agreement
in any other Loan Document shall mean and be a reference to the Credit Agreement as amended hereby.

 

16.        Release.
The Borrower hereby releases, acquits, and forever discharges each of the Bank and each and every past and present subsidiary,
affiliate, stockholder, officer, director, agent, servant, employee, representative, and attorney of any of them from any and all
claims, causes of action, suits, debts, liens, obligations, liabilities, demands, losses, costs and expenses (including attorneys’
fees) of any kind, character, or nature whatsoever, known or unknown, fixed or contingent, which the Borrower may have or claim
to have now or which may hereafter arise out of or be connected with any act of commission or omission of the Bank existing or
occurring prior to the date of this Amendment or any instrument executed prior to the date of this Amendment relating to the Credit
Agreement or any other Loan Document or any of the transactions contemplated thereby. The provisions of this Section shall survive
payment of all Obligations and shall be binding upon the Borrower and shall inure to the benefit of the Bank and its successors
and assigns.

 

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

 

18.        Expenses.
Without in any way limiting the generality of Section 12.2 of the Credit Agreement, the Borrower hereby agrees to pay to the Bank
all of the Bank’s reasonable and documented legal fees and expenses incurred in connection with this Amendment and/or any
other Loan Document, which amount shall be due and payable upon execution of this Amendment.

 

19.        Captions.
The captions or headings herein are for convenience only and in no way define, limit or describe the scope or intent of any
provision of this Amendment.

 

20.        Counterparts.
This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument. Any executed counterpart of this Amendment delivered by facsimile or other electronic transmission
to a party hereto shall constitute an original counterpart of this Amendment.

 

21.        No
Other Modification. Except as expressly amended by the terms of this Amendment, all other terms of the Credit Agreement
shall remain unchanged and in full force and effect.

 

[The signature
page follows.]

    	5

    	 

    

THE PARTIES HAVE EXECUTED this Amendment No.
1 to Credit Agreement in the manner appropriate to each as of the date and year first above written.

 

The Borrower:

	 	MGC DIAGNOSTICS CORPORATION
	 	 	 
	 	 	 
	 	 	 
	 	By: 	/s/Wesley W. Winnekins
	 	Title:  	Chief Financial Officer, Chief Operating Officer and Secretary
	 	 	 
	 	 	 
	 	 	 
	 	MEDICAL GRAPHICS CORPORATION
	 	 	 
	 	 	 
	 	 	 
	 	By: 	/s/Wesley W. Winnekins
	 	Title: 	Chief Financial Officer, Chief Operating Officer and Secretary

 

 

 

 

 

The Bank:

	 	BMO HARRIS BANK N.A.
	 	 	 
	 	 	 
	 	 	 
	 	By: 	/s/ Nicole Sever
	 	Title: 	Assistant Vice President

 

 

 

 

 

 

    	6Exhibit 10.13

 

$250,000
Revolving Term Note dated January 29, 2015

from
MGC Diagnostics Corporation

and
Medical Graphics Corporation 

to
BMO Harris Bank N.A.

 

 

REVOLVING NOTE

 

	$250,000	January 29, 2015

 

FOR VALUE RECEIVED, each of MGC DIAGNOSTICS
CORPORATION, a Minnesota corporation, and MEDICAL GRAPHICS CORPORATION, a Minnesota corporation (individually and collectively,
the “Borrower”), jointly and severally, promises to pay to the order of BMO HARRIS BANK N.A., a national
banking association (the “Bank”), at its main office in Minneapolis, Minnesota or at such other place as may
be designated in writing from time to time by the Bank, in lawful money of the United States of America, the principal sum of Two
Hundred Fifty Thousand Dollars ($250,000) or so much thereof as has been advanced by the Bank to or for the benefit of the Borrower
pursuant to that certain Credit Agreement, dated as of July 24, 2014, as amended from time to time, among the Borrower and the
Bank (the “Credit Agreement”) and remains unpaid, together with interest (as provided in the Credit Agreement)
on the unpaid principal balance hereof from the date hereof until this Note is fully paid.

 

This Note is payable as provided in the Credit
Agreement. The Borrower may prepay at any time and from time to time, all or any portion of the balance from time to time remaining
on this Note as provided in the Credit Agreement.

 

This Note is the “Revolving Note”
referred to in the Credit Agreement, is issued pursuant to and is subject to the Credit Agreement which, among other things, provides
for acceleration of the maturity hereof upon the occurrence of an Event of Default, as defined in the Credit Agreement, and is
secured by the Security Agreements and other Loan Documents referred to in the Credit Agreement.

 

The Borrower, jointly and severally, agrees
to pay all costs of collection, including reasonable attorneys’ fees, in the event this Note is not paid when due. This Note
is being delivered in, and shall be governed by, the laws of the State of Minnesota. Presentment or other demand for payment, notice
of dishonor and protest are expressly waived.

 

This Note amends and restates in its entirety
that certain Revolving Note, dated July 24, 2014, issued by the Borrower to the order of the Bank in the stated amount of $3,000,000
(the “Prior Note”), and is issued in substitution for and replacement of, but not in payment of, the Prior Note.
It is expressly intended and agreed that amounts outstanding under the Prior Note as of the date hereof, if any, shall be considered
outstanding hereunder from and after the date hereof and shall not be considered paid (nor shall the undersigned’s obligation
to pay the same be considered discharged or satisfied) as a result of the issuance of this Revolving Note.

 

(The signature page follows.)

 

    	1

    	 

    

[SIGNATURE PAGE TO $250,000 REVOLVING
NOTE

PAYABLE TO BMO HARRIS BANK N.A.]

 

 

 

	 	MGC DIAGNOSTICS CORPORATION
	 	 	 
	 	 	 
	 	 	 
	 	By 	/s/Wesley W. Winnekins
	 	Its 	Chief Financial Officer, Chief
	 	 	Operating Officer and Secretary
	 	 	 
	 	 	 
	 	 	 
	 	MEDICAL GRAPHICS CORPORATION
	 	 	 
	 	 	 
	 	 	 
	 	By 	/s/Wesley W. Winnekins
	 	Its 	Chief Financial Officer, Chief
	 	 	Operating Officer and Secretary

 

 

 

 

 

 

 

    	2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00239-of-00352.parquet"}]]