Document:

exv10w4

 

Exhibit 10.4

AMENDMENT TO MANUFACTURING AGREEMENT

The Manufacturing Agreement between Alcon Pharmaceuticals Ltd. (“Alcon”) and Lifecore Biomedical,
Inc. dated effective on January 1, 2006, is hereby amended as follows:

1.) In Article 2.06, ALCON’s Minimum Volume is increased to ** of Product during each calendar year
beginning in 2009.

2.) The pricing table in Article 3.01 is hereby updated and replaced with the following pricing
table:

	 	 	 	 	 
	 	 	Price per gram
	Year	 	(USD
	2008
	 	USD **
	2009
	 	USD **
	2010
	 	USD **
	2011
	 	USD **
	2012
	 	USD **
	2013
	 	USD **

3.) In Article 7.01, the term of the Agreement is hereby extended through December 31, 2013.

These changes will be effected and become part of the Manufacturing Agreement on February 1, 2008.
With the exception of the above modifications, all other provisions of the Manufacturing Agreement
remain in full force and effect. Please signify your agreement with the above by signing below and
returning this letter to Alcon.

ALCON PHARMACEUTICALS LTD.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ JOANNE BECK  	 	By:	 	/s/ STEFAN BASLER	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	Joanne Beck
	 	 	 	 	 	Name:
	 	Stefan Basler	 	 
	 

	 	Title:
	 	General Manager
	 	 	 	 	 	Title:
	 	Finance Manager	 	 
	 

	 	Date:
	 	January 25, 2008
	 	 	 	 	 	Date:
	 	January 25, 2008	 	 

	 	 	 	 	 
	LIFECORE BIOMEDICAL, INC.

 	 	 
	By:  	/s/ LARRY HIEBERT
 	 	 
	 	Name:  	Larry Hiebert 	 	 
	 	Title:  	Vice President and General Manager of the HD Division 	 	 
	 	Date:  	January 23, 2008 	 	 
	 

 

 

 

			
	**	 	The appearance of a double asterisk denotes confidential information that has been omitted from
the exhibit and filed separately, accompanied by a confidential treatment request, with the
Securities and Exchange Commission pursuant to Rule 24b-2 of the Securities Exchange Act of 1934.

-2-exv10w1

 

Exhibit 10.1

REVOLVING CREDIT NOTE

			
	 
	 	St. Louis, Missouri
	US $6,719.770.00
	 	January 1, 2008

     For value received, the undersigned, Zoltek Companies, Inc., a Missouri corporation, Zoltek
Corporation, a Missouri corporation, [others] (individually and collectively hereinafter
“Borrowers”; all references to “Borrowers” or “Borrower” shall mean each and all of the Borrowers),
hereby jointly and severally promise to pay to the order of Southwest Bank of St. Louis (the
“Bank”), in lawful money of the United States of America, the principal sum of Six Million Seven
Hundred Nineteen Thousand Seven Hundred and Seventy-Seven Dollars and no/00 ($6,790,770.00), or if
less, the amount outstanding under the Credit Agreement (as hereinafter defined), together with
interest from the date hereof at the rate provided for in the Credit Agreement. Principal and
interest of this Note shall be payable at the time or times provided in the Credit Agreement.

     This Revolving Credit Note (this “Note”) is the Revolving Credit Note referred to in, and is
issued pursuant to, that certain Credit Agreement between the Borrowers and the Bank dated even
date herewith (as amended or otherwise modified from time to time, the “Credit Agreement”), and is
entitled to all of the benefits and security of the Credit Agreement. All of the terms, covenants
and conditions of the Credit Agreement and all other instruments evidencing or securing the
indebtedness hereunder are hereby made a part of this Note and are deemed incorporated herein in
full. All capitalized terms used herein, unless otherwise specifically defined in this Note, shall
have the meanings ascribed to them in the Credit Agreement.

     This Note is secured by the Collateral described in the Credit Agreement.

     Interest hereunder shall be computed on, the basis of actual days elapsed over the period of a
360-day year. Upon or after the occurrence and during the continuation of any Event of Default,
the outstanding principal balance of this Note shall bear interest at a variable rate per annum
equal to the Default Rate until the principal balance of this Note is paid in full.

     In no contingency or event whatsoever, whether by reason of advancement of the proceeds hereof
or otherwise, shall the amount paid or agreed to be paid to the Bank for the use, forbearance or
detention of money advanced hereunder exceed the highest lawful rate permissible under any law
which a court of competent jurisdiction may deem applicable hereto.

     The Borrowers may prepay this Note, in whole or in part, at any time without premium or
penalty, together with accrued interest on the principal amount so prepaid at the prepayment date.

     The termination of the Credit Agreement or the occurrence of an Event of Default shall entitle
the Bank, at its option, to declare the then outstanding principal balance and accrued interest
hereon to be, and the same shall thereupon become, immediately due and payable without notice to or
demand upon the Borrowers, all of which the Borrowers hereby expressly waive.

     Time is of the essence of this Note. To the fullest extent permitted by applicable law, the
Borrowers, for themselves and their successors and assigns, expressly waive presentment, demand,
protest, notice of dishonor, and any and all other notices, demands and consents in connection with
the

 

 

delivery, acceptance, performance, default or enforcement of this Note, and hereby consent to
any extensions of time, renewals, releases or any parties to or guarantors of this Note, waivers
and any other modifications that may be granted or consented to by the Bank from time to time in
respect of the time of payment or any other provision of this Note.

     Wherever possible each provision of this Note shall be interpreted in such a manner as to be
effective and valid under applicable law, but if any provision of this Note shall be prohibited or
invalid under applicable law, such provision shall be ineffective to the extent of such prohibition
or invalidity without invalidating the remainder of such provision or remaining provisions of this
Note. No delay or failure on the part of the Bank in the exercise of any right or remedy hereunder
shall operate as a waiver thereof, nor as an acquiescence in any default, nor shall any single or
partial exercise by the Bank of any right or remedy preclude any other right, or remedy. The Bank,
at its option, may enforce its rights against any collateral securing this Note without enforcing
its rights against the Borrowers, any guarantor of the indebtedness evidenced hereby or any other
property or indebtedness due or to become due to the Borrowers. The Borrowers agree that, without
releasing or impairing the Borrowers’ liability hereunder, the Bank may at any time release,
surrender, substitute or exchange any collateral securing this Note and may at any time release any
party primarily or secondarily liable for the indebtedness evidenced by this Note.

     This Note shall be governed by, and construed and enforced in accordance with, the internal
laws of the State of Missouri.

     BORROWERS HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY (WHICH BANK ALSO WAIVES) IN ANY ACTION,
SUITE, PROCEEDING OR COUNTERCLAIM OF ANY KIND ARISING OUT OF OR RELATING TO THIS NOTE OR ANY OF THE
LOAN DOCUMENTS, THE COLLATERAL, OR BANK’S CONDUCT IN RESPECT OF ANY OF THE FOREGOING.

     IN WITNESS WHEREOF, the Borrowers have caused this Note to be executed and delivered by their
respective duly authorized representatives as of the date first above written.

	 	 	 	 	 
	 	 	ZOLTEK COMPANIES, INC.
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

	 	 	 	 	 
	 	 	ZOLTEK CORPORATION
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:exv10w2

 

Exhibit 10.2

PARTNERS FOR GROWTH, LLC

180 PACIFIC AVENUE

SAN FRANCISCO, CALIFORNIA 94111

(415) 912-5899

Facsimile: (415) 781-0510

ancirew@pfgrowth.com

December 19, 2007

XATA Corporation

151 E. Cliff Road, Suite 10

Burnsville, MN 55337

Attention: Mark Ties, Chief Financial Officer

Dear Mark:

     Subject to the terms and conditions set forth herein and in the attached Term Sheet (the
“Proposed Terms”), Partners for Growth II, L.P. (“PfG”) hereby commits to make a term loan in the
principal amount of $8,000,000 (the “Loan”) to XATA Corporation (the “Borrower”).

     The commitment of PfG to make the Loan is subject at all times to: (a) the truth, accuracy and
completeness of all representations and warranties made and information delivered to, PfG, (b) the
negotiation, execution and delivery of definitive documentation (including without limitation, a
Loan and Security Agreement) for the financing on or prior to the closing of the Company’s pending
acquisition (the “Funding Deadline”), consistent with the Proposed Terms and otherwise satisfactory
to PfG and its counsel, and (c) no change, occurrence or development shall have occurred (prior to
or after the date hereof) that has had or could reasonably be expected to have a material adverse
effect on the operations, business, assets, properties, liabilities (actual or contingent),
condition (financial or otherwise) or prospects of the Company and its subsidiaries, taken as a
whole, or result in a material impairment of the rights and remedies of PfG under any loan
documentation.

     The Loan and Security Agreement and related documents will incorporate terms consistent with
those outlined above and in the Proposed Terms, together with such representations and warranties,
events of default, and additional conditions to closing as are customary or as may be reasonably
required by PfG.

     If this letter is in accordance with your understanding of our agreement, please indicate your
acceptance by signing below and returning this letter and the attached Proposed Terms to PfG,
Attention to Andrew Kahn, by Friday, December 21, 2007 (the “Acceptance Deadline”).

     This commitment shall terminate automatically if this letter is not executed by the Borrower
and returned to PfG on or prior to the Acceptance Deadline.

 

 

December 19, 2007

Page 2

     Any alterations or changes to this letter or the attached Proposed Terms shall only be
effective if acknowledged in writing by both the Borrower and PfG.

     This letter may be executed in two or more counterparts, and will become effective when
counterparts have been executed by PfG and the Borrower.

	 	 	 	 	 	 	 	 	 
	 	 	Very truly yours,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Partners for Growth II, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	/s/ Andrew Kahn
 

Andrew Kahn
	 	 
	 	/s/ Jason Georgatos
 

Jason Georgatos
	 	 
	 

	 	Manager
	 	 	 	Manager	 	 

Accepted this 19 day of

December, 2007.

	 	 	 	 	 
	XATA Corporation

 	 	 
	By  	/s/ Mark E. Ties
 	 	 
	 	Its Chief Financial Officer 	 	 
	 	 	 	 

 

 

	 	 	 	 	 

PfG/XATA Term Sheet — December 19, 2007

PARTNERS FOR GROWTH, LLC

180 PACIFIC AVENUE

SAN FRANCISCO, CALIFORNIA 94111

(415) 912-5899

Facsimile: (415) 781-0510

ancirew@pfgrowth.com

Via Electronic Mail

December 19, 2007

Mr. Mark Ties

Chief Financial Officer

XATA Corporation

151 E. Cliff Road, Suite 10

Burnsville, MN 55337

Dear Mark:

It is our pleasure to express the interest of Partners for Growth II, L.P. (“PfG”) in providing
XATA Corporation (the “Borrower” or the “Company”) with an $8,000,000 financing package to support
the Company’s pending acquisition. The proposed financing along with the senior bank facility
provides for 100% financing of the Company’s proposed $18 million acquisition. Our subordinated
debt would be structured as primarily an interest only financing to enable the company time to
generate cash flow and can be refinanced any time without penalty when the Company pursues
additional financing in the future. We understand the Company needs to move quickly to close the
proposed acquisition and are willing to endeavor to close the deal within 20 days from the receipt
of a signed term sheet.

Subordinate Acquisition Term Loan:

	 	 	 
	Security:

	 	Term Loan
	 
	 	 
	Commitment 

Amount:

	 	$8,000,000, funded upon the close of the acquisition
to purchase the target company identified to PfG by
the Borrower.
	 
	 	 
	Maturity:

	 	48 months.
	 
	 	 
	Repayment:

	 	Interest only monthly for the first 36 months;
quarterly principal payments of $1,000,000 in year
four with the balance due at maturity.
	 
	 	 
	Amortization Trigger:

	 	If Borrower falls below the Liquidity Ratio (defined
below), PfG has the right but not the obligation to
amortize the loan as if it were a three year loan
with equal monthly principal payments of $222,222.
For example, if the Company fell below the Liquidity

Page 1 of 4

 

	 	 	 
	 
	 	 
	 

	 	Ratio 3 months after the close of the deal, and we chose to exercise
the amortization, then the Company would owe us $666,666 with the
balance of the loan due in equal monthly principal payments, plus
interest, over the following 33 months. Any payments under the
Amortization Trigger must either be paid to PfG or to reduce the
senior SVB debt (at the discretion of the senior lender).
	 
	 	 
	 

	 	Liquidity Ratio: Borrower to maintain a minimum Adjusted Quick Ratio
of 0.75 : 1.00, defined as (Cash at SVB + Eligibal A/R) divided by
(SVB Debt + PfG Debt). This ratio will increase to 1.00: 1.00 as of
6/30/09.
	 
	 	 
	Interest Rate:

	 	14.5% fixed.
	 
	 	 
	Interest Rate Reset:

	 	If Borrower achieves 105% of its revenue and EBITDA
forecast (based on the new forecast provided to SVB
and PfG on November 9th) for the quarters ending
March 31, 2008, June 30, 2008 and September 30, 2008
then the interest rate would be reduced from 14.5% to
11% fixed.
	 
	 	 
	Commitment Fee:

	 	2.0% of the Commitment Amount payable upon the
funding of the deal.
	 
	 	 
	Warrants:

	 	See Warrant Term Sheet.
	 
	 	 
	Prepayment Penalty:

	 	None.
	 
	 	 
	Security:

	 	Blanket security interest in all the assets of the
Company subject only to a senior security interest by
Silicon Valley Bank (“SVB”) in the amount of
$10,000,000. SVB and PfG have a standard,
pre-negotiated subordination agreement that would be
entered into at closing.
	 
	 	 
	Financial Reporting:

	 	Monthly financial statements and compliance
certificates, within 30 days.
	 
	 	 
	 

	 	Monthly A/R and A/P Agings, within 30 days
	 
	 	 
	 

	 	Monthly deferred revenue schedules, within 30 days
	 
	 	 
	 

	 	Audited financial statements, within 120 days
	 
	 	 
	 

	 	Annual board approved plan, as soon as available
	 
	 	 
	 

	 	Upon PfG’s request, copies of all reporting provided to SVB.
	 
	 	 
	 

	 	For the first two quarters after closing, all monthly reporting would
be due within 15 days of month end.

Page 2 of 4

 

	 	 	 
	Financial Covenants:
	 	 
	 
	 	 
	 

	 	Tangible Net Worth Ratio (“TNW”), defined as net worth less
intangible assets. At all times, and measured monthly, starting with
3/31/08, the borrower’s Tangible Net Worth must be higher than
$1,000,000 below borrower’s TNW as of the close of borrower’s
acquisition of Geologic Solutions, Inc., with such minimum TNW
requirement increasing by $1,500,000 beginning with the month ending
9/30/08. In addition, beginning with the month ending 3/31/09, the
minimum TNW requirement shall increase by 50% of quarterly Net Income
for the quarter ending 3/31/09 and for each quarter ending
thereafter, with the minimum TNW requirement being adjusted
quarterly.
	 
	 	 
	 

	 	Modified EBITDA: borrower’s EBITDA — Taxes — Distributions —
Unfinanced Capex (“MEBITDA”) for January 2008, January through
February 2008, and January through March 2008, must not be less than
($1,000,000).
	 
	 	 
	 

	 	FCCR Covenant: defined as (MEBITDA / Interest + Mandatory Principal
Pmts) of not less than 1.25:1.00 on a trailing twelve month basis,
starting 12/31/08, monitored quarterly thereafter.
	 
	 	 
	Documentation:

	 	PfG’s customary documentation.
	 
	 	 
	Conditions of Funding:

	 	Borrower closes the acquisition of the identified
target company within 60 days of closing of the PfG
facility. If the acquisition is not consummated,
then our financing commitment will terminate and
the warrant will be returned to the Company. The
Company will only be responsible for our out of
pocket expenses including primarily legal fees
associated with the preparation and negotiation of
the documents.
	 
	 	 
	Expenses:

	 	Borrower would pay all of PfG’s out-of-pocket fees,
charges, costs and expenses in connection with the
loan.
	 
	 	 
	Confidential:

	 	This letter is delivered to you with the
understanding that neither it nor its substance
shall be disclosed publicly or privately to any
third person. Exceptions to this confidentiality
agreement are those who are in a confidential
relationship to you, such as legal counsel, senior
management and members of the Borrower’s Board of
Directors, or where disclosure is required by law
and then only on a basis that it not be further
disclosed.

Page 3 of 4

 

If the terms and conditions described above are acceptable, please so indicate by signing this
letter and returning the same, together with a check for $25,000 which shall constitute a non
refundable “Due Diligence Fee”, to the attention of the undersigned by 5:00 p.m. Pacific Time,
December 21, 2007. The Due Diligence Fee will be applied to the Commitment Fee upon the funding of
the loan. If the loan is not funded then the Due Diligences Fee would be applied to PfG’s costs
and expenses with any balance being returned to the Company.

Very truly yours,

Partners for Growth II, L.P.

	 	 	 	 	 
	 
	 	 	 	 
	/s/ Andrew Kahn
 

	 	/s/ Jason Georgatos
 

	 	  
	Andrew Kahn

	 	Jason Georgatos	 	 
	Manager

	 	Manager	 	 

Agreed to and accepted this 19 day of December, 2007.

	 	 	 	 	 
	XATA Corporation

 	 	 
	By:  	/s/ Mark E. Ties
 	 	 
	 	Name:  	Mark E. Ties 	 	 
	 	 	 	 
	 

Page 4 of 4

 

PfG/XATA Warrant Term Sheet

WARRANT TERM SHEET

	 	 	 	 	 
	Type of Security and
Consideration:	 	Partners for Growth II L.P. (“PfG” or “Holder”) shall
purchase for $8,382 a warrant (the “Warrant”) to
purchase 457,144 shares of Common Stock (the “Warrant
Shares”) of XATA Corporation (the “Company”). The
Warrant may be exercised in whole or in part.
	 
	 	 	 	 
	Exercise Price:	 	The lower of $3.50 per share or the average closing
price in the 5 trading days prior to the close of the
deal.
	 
	 	 	 	 
	Term of Warrant:	 	5 years from the close of the deal.
	 
	 	 	 	 
	Adjustment of Number and Kind

of Shares and Price Protection:
	 
	 	 	 	 
	(1)
	 	Split, Subdivision,

Combination, or Stock

Dividend:
	 	In the event of a split, subdivision, stock dividend or combination with respect to
Common Stock, the Exercise Price and the number of shares issuable upon exercise of the
Warrant shall be proportionately adjusted.
	 
	 	 	 	 
	(2)
	 	Treatment of Warrant
At Acquisition:
	 	In the event of any reclassification of capital stock, or any reorganization,
consolidation or merger of the company, as a condition to the completion of such
transaction the Company shall procure the issue of a new warrant to Holder for the number
and kind of securities receivable upon such reclassification, reorganization, consolidation
or merger by a holder of Company stock. The Company shall give Holder sufficient notice to
exercise rights under its Warrant. If the Company is not able to procure a new Warrant
then the Warrant may be purchased by the Company for fair value, which shall be determined
using a Black-Scholes Option-Pricing Model.
	 
	 	 	 	 
	Assignment:	 	PfG may assign / transfer the Warrant subject to
compliance with applicable securities laws.
	 
	 	 	 	 
	Exchange of Warrant
For Common Stock:	 	The Holder shall be entitled to require the Company to
accept an exchange of such Holder’s Warrant for that
number of shares of the Company’s Common Stock
obtained by dividing (x) the value of the Warrant
(determined by subtracting the aggregate Exercise
Price of the Warrant from the aggregate highest fair
market value of

Page 1 of 3

 

	 	 	 	 	 
	 

	 	 	 	the shares in the three months prior to the exchange of the number of shares of
Common Stock issuable upon exercise of the Warrant), by (y) the highest fair
market value of one share in the three months prior to the exchange of Common
Stock immediately prior to the exchange.
	 
	 	 	 	 
	Optional Exercise of
Warrant for Cash:	 	Holder may, at its option, exercise the
Warrant by tendering cash to pay the Exercise
Price.
	 
	 	 	 	 
	Automatic Exercise of
the Warrant:	 	The Warrant shall be automatically
exchanged for common stock immediately before it
expires, if not previously exchanged or
exercised, and if the fair market value of one
share of the Company’s Common Stock is greater
than the Warrant Exercise Price. This would be
done through a cashless exchange as described in
the Exchange of Warrant for Common Stock section
above.
	 
	 	 	 	 
	Protective Provision:	 	If the Company issues additional capital
stock (including preferred and common stock,
warrants, other securities convertible into such
stock or any combinations of the foregoing)
(“Additional Stock”) to holders of preferred
stock outstanding on the date the Warrant is
issued in an amount greater than 5% of the
existing outstanding preferred shares (on an as
if converted basis) and upon terms providing a
discount to fair market value of 30% or greater
(calculated on an as if converted to common
basis), then PfG would receive a Proportional
Increase in the Warrant Shares, up to an increase
of 100% of Warrant Shares. The following will be
excluded from this provision: (i) existing
preferred stock (but not cash) dividends, and
(ii) structural anti dilution events (for which
an adjustment is in fact made under the Warrant).
“Proportional Increase” means an amount equal to
the percentage increase of shares held by such
holders of preferred stock (calculated on an as
if converted to common basis) following the
issuance of Additional Stock. Fair market value
shall be the lesser of (i) the closing price of
the company’s common stock on the Nasdaq stock
market (or such other exchange or listing service
on which the company’s common stock is quoted),
and (ii) any trailing average of the closing
price of the company’s common stock up to 20
trading days.
	 
	 	 	 	 
	Registration Rights:	 	None.

Page 2 of 3

 

	 	 	 	 	 
	Warrant Purchase Agreement:	 	The Company and each Holder shall execute, in PfG’s
discretion, either a Warrant Purchase Agreement and Warrant, or an
all-inclusive Warrant. In either case, the Warrant documentation shall
contain, among other things, customary representations and warranties by the
Company, covenants of the Company (including without limitation, the giving of
notices and the duty to make fair adjustments) reflecting the provisions set
forth herein, securities compliance representations by PfG and appropriate
conditions to closing.
	 
	 	 	 	 
	Opinion of Counsel:	 	If the Warrant/Warrant Purchase Agreement
are to be governed other than by the laws of the
State of California or Delaware, the Warrant
Purchase Agreement/Warrant shall provide for
delivery to PfG of a legal opinion of Company
counsel dated as of the date of the Closing, in a
form and substance acceptable to PfG, concerning
due authorization and execution of the Warrant
Purchase Agreement and the Warrant and valid
reservation of the shares of Common Stock
issuable upon exercise of the Warrant.
	 
	 	 	 	 
	Costs:	 	The Company shall pay all costs and
expenses incurred in connection with the
exercise, exchange, transfer or replacement of
the Warrant, including, without limitation, the
costs of preparation, execution and delivery of a
new warrant and of stock certificates
representing all Warrant stock.
	 
	 	 	 	 
	Fees and Expenses:	 	The Company will bear its own legal
expenses with respect to the issuance of the
warrants, and will reimburse PfG for its
expenses.
	 	 
	ACKNOWLEDGED AND	 	 
	AGREED TO:	 	 

	 	 	 	 	 
	XATA Corporation
 	 	 
	 	 
	BY: 	 /s/ Mark E. Ties
 	 	 
	 	NAME: 	 Mark E. Ties	 	 
	 	TITLE:	  Chief Financial Officer
	 	 
	 	DATE:	  December 19, 2007
	 	 

Partners for Growth II, L.P.

	 	 	 	 	 
	/s/ Andrew Kahn
 

Andrew Kahn

	 	/s/ Jason Georgatos
 

Jason Georgatos
	 	  
	Manager

	 	Manager	 	 

Page 3 of 3

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