Document:

Amendment to Loan and Security Agreement

 Exhibit 10.1 
 FIRST AMENDMENT 
 TO 
 LOAN AND SECURITY AGREEMENT 
 THIS FIRST AMENDMENT to Loan and Security
Agreement (this “Amendment”) is entered into this 30 day of July, 2009, by and between Silicon Valley Bank (“Bank”) and DOT HILL SYSTEMS CORP., a Delaware corporation (“Borrower”) whose address is 2200 Faraday Avenue,
Suite 100, Carlsbad, CA 92008. 
 RECITALS 
 A. Bank and Borrower have entered into that certain Loan and Security Agreement dated as of July 21, 2008 (as the same may from time to time
be amended, modified, supplemented or restated, the “Loan Agreement”). 
 B. Bank has extended credit to Borrower for the
purposes permitted in the Loan Agreement. 
 C. Borrower has requested that Bank amend the Loan Agreement to (i) revise the
financial covenants, and (ii) make certain other revisions to the Loan Agreement as more fully set forth herein. 
 D. Bank has
agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the terms, subject to the conditions and in reliance upon the representations and warranties set forth below. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the foregoing recitals and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound, the
parties hereto agree as follows: 
 1. Definitions. Capitalized terms used but not defined in this Amendment shall have the
meanings given to them in the Loan Agreement. 
 2. Amendments to Loan Agreement. 
 2.1 Section 2.1.3 (Cash Management Services Sublimit). New Section 2.1.3 is added as follows: 
 “2.1.3 Borrower may use the Revolving Line for Bank’s cash management services, which may include merchant services, direct
deposit of payroll, business credit card, and check cashing services identified in Bank’s various cash management services agreements (collectively, the “Cash Management Services”), in an aggregate amount not to exceed the
lesser of (A) Three Hundred Thousand Dollars ($300,000) or (B) the lesser of Revolving Line or the Borrowing Base, minus the sum of all outstanding principal amounts of any Advances, minus the face amount of any outstanding Letters of
Credit (including drawn but unreimbursed Letters of Credit). Any amounts Bank pays on behalf of Borrower for any Cash Management Services will be treated as Advances under the Revolving Line and will accrue interest at the interest rate applicable
to Advances.” 

 2.2 Section 2.2 (Overadvances). Section 2.2 is amended in its entirety and
replaced with the following: 
 “2.2 Overadvances. If, at any time, the sum of (a) the outstanding principal
amount of any Advances (including any amounts used for Cash Management Services), plus (b) the face amount of any outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit) (such sum being an
“Overadvance”) exceeds the lesser of either the Revolving Line or the Borrowing Base, Borrower shall immediately pay to Bank in cash such Overadvance. Without limiting Borrower’s obligation to repay Bank any amount of the
Overadvance, Borrower agrees to pay Bank interest on the outstanding amount of any Overadvance, on demand, at the Default Rate.” 
 2.3 Section 2.4 (Fees). Section 2.4(c) is amended in its entirety and replaced with the following: 
 “(c) Unused Revolving Line Facility Fee. A fee (the “Unused Revolving Line Facility Fee”), payable quarterly, in arrears, on a calendar year basis, in an amount equal to three eighths of one percent (0.375%) per
annum of the average unused portion of the Revolving Line, as determined by Bank. The unused portion of the Revolving Line, for the purposes of this calculation, shall include amounts reserved for products provided in connection with Cash Management
Services. Borrower shall not be entitled to any credit, rebate or repayment of any Unused Revolving Line Facility Fee previously earned by Bank pursuant to this Section notwithstanding any termination of the Agreement, or suspension or termination
of Bank’s obligation to make loans and advances hereunder; provided that such Unused Revolving Line Facility Fee shall cease to accrue upon termination of this Agreement.” 
 2.4 Section 6.9 (Financial Covenants). Section 6.9(a) is amended in its entirety and replaced with the following: 
 “(a) Minimum Net Worth. A minimum Net Worth of at least Fifty Million Dollars ($50,000,000), increasing by fifty percent
(50%) of Net Income, fifty percent (50%) of issuances of equity after July 1, 2009 and fifty percent (50%) of the principal amount of Subordinated Debt.” 
 2.5 Section 13 (Definitions). The following terms and their definitions set forth in Section 13.1 are amended in their
entirety and replaced with the following: 
 “Availability Amount” is (a) the lesser of (i) the
Revolving Line or (ii) the amount available under the Borrowing Base minus (b) the amount of all outstanding Letters of Credit (including drawn but unreimbursed Letters of Credit), minus (c) any amounts used for Cash Management
Services, and minus (d) the outstanding principal balance of any Advances. 
 “Cash Management Services”
is defined in Section 2.1.3. 
 “Credit Extension” is any Advance, Letter of Credit, amount utilized
for Cash Management Services, or any other extension of credit by Bank for Borrower’s benefit. 
 “Net
Worth” means (i) stockholder’s equity as calculated in accordance with GAAP, plus (ii) expenses relating to restructuring activities and headquarter relocation in an amount not to exceed (a) One Million Five Hundred
Thousand Dollars ($1,500,000) per quarter from July 1, 2009 through June 30, 2010 and (b) Three Million Dollars ($3,000,000) in the aggregate for the four quarters ending June 30, 2010, plus (iii) 123R stock based compensation
expenses, plus (iv) goodwill and long-lived asset impairment charges in an amount not to exceed Five Million Dollars ($5,000,000) in any calendar year. 
  

 2 

 3. Limitation of Amendments. 
 3.1 The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited precisely as
written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the
future under or in connection with any Loan Document. 
 3.2 This Amendment shall be construed in connection with and as part of the
Loan Documents and all terms, conditions, representations, warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed and shall remain in full force and effect. 
 4. Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents and warrants to Bank as follows:

 4.1 Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents
are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of
Default has occurred and is continuing; 
 4.2 Borrower has the power and authority to execute and deliver this Amendment and to
perform its obligations under the Loan Agreement, as amended by this Amendment; 
 4.3 The organizational documents of Borrower
delivered to Bank on the Effective Date remain true, accurate and complete and have not been amended, supplemented or restated and are and continue to be in full force and effect; 
 4.4 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, have been duly authorized; 
 4.5 The execution and delivery by Borrower of this Amendment and the
performance by Borrower of its obligations under the Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting Borrower, (b) any contractual restriction with a Person
binding on Borrower, (c) any order, judgment or decree of any court or other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents of Borrower; 
 4.6 The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the Loan Agreement, as
amended by this Amendment, do not require any order, consent, approval, license, authorization or validation of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof, binding
on either Borrower, except as already has been obtained or made; and 
 4.7 This Amendment has been duly executed and delivered by
Borrower and is the binding obligation of Borrower, enforceable against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, liquidation, moratorium or other similar laws of
general application and equitable principles relating to or affecting creditors’ rights. 
 5. Counterparts. This
Amendment may be executed in any number of counterparts and all of such counterparts taken together shall be deemed to constitute one and the same instrument. 
  

 3 

 6. Effectiveness. This Amendment shall be deemed effective upon (a) the due execution
and delivery to Bank of this Amendment by each party hereto, and (b) Borrower’s payment of an amendment fee in an amount equal to Seven Thousand Five Hundred Dollars ($7,500). 
 [Signature page follows.] 
  

 4 

 IN WITNESS WHEREOF, the parties hereto have caused
this Amendment to be duly executed and delivered as of the date first written above. 
  

									
	BANK	 		 	BORROWER
			
	Silicon Valley Bank	 		 	Dot Hill Systems Corp.
					
	By:	 	 /s/ Derek R. Brunelle
	 		 	By:	 	 /s/ Hanif I. Jamal

	Name:	 	 Derek R. Brunelle
	 		 	Name:	 	 Hanif I. Jamal

	Title:	 	 Relationship Manager
	 		 	Title:	 	 CFOUnassociated Document

Exhibit 10.1

 

SATISFACTION, TERMINATION AND RELEASE AGREEMENT

 

This SATISFACTION, TERMINATION AND RELEASE AGREEMENT (this “Agreement”) is dated as of April 6, 2009 between LEHMAN COMMERCIAL PAPER INC. (“Lender”),
having an address at 1271 Avenue of the Americas, New York, NY 10020, and CAPITAL TRUST, INC. (“Borrower”), having an address at 410 Park Avenue, 14th Floor, New York, NY 10022.

 

 

RECITALS

 

WHEREAS, Lender and Borrower are parties to that certain Amended and Restated Loan and Security Agreement, dated as of September 10, 2008 (the “Loan Agreement”);

WHEREAS, the parties have agreed and consented to transfer to Lender all of Borrower’s right, title and interest in the Collateral (as defined in the Loan Agreement) and the Loan Documents (as defined in the Loan Agreement) in full satisfaction of the Borrower’s Obligations;
and

WHEREAS, each of the parties hereto desire to terminate its respective right, title and interest in, to and under the Loan Agreement, the Note (as defined in the Loan Agreement) and the Loan Documents and to each release the other from all obligations and liabilities under the Loan Agreement
and Note as set forth herein.

NOW, THEREFORE, in consideration of the foregoing premises and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the parties), the parties hereby agree as follows:

1.             Satisfaction, Termination and Release.

 

(a)           Capitalized terms used herein and not defined herein shall have the respective meanings attributed thereto in the Loan Agreement.

 

(b)           Lender hereby proposes, and Borrower hereby consents, and Lender and Borrower hereby acknowledge, that (i) pursuant to that certain Assignment and Assumption Agreement dated the date hereof, Borrower transferred to
Lender, and Lender accepted, all of Borrower’s right, title and interest in the Collateral (the “Transfer”) and (ii) the Transfer shall unconditionally and fully satisfy the Borrower’s Obligations in all respects, including, without limitation, Borrower’s obligations to pay the outstanding principal amount of the Advance and all other amounts owed to Lender under the Loan Agreement and the Note and other Loan Documents.  As
such, Borrower shall have no further rights with respect to the Collateral or under the Loan Documents and no further obligations with respect to the Obligations, and Lender shall be entitled to all rights of ownership of the Collateral and shall have no further rights to collect or otherwise enforce the Obligations.

 

 

 

 

 

(c)           Lender and Borrower hereby acknowledge that the Loan Agreement, the Note and all other Loan Documents and the transactions contemplated thereby are hereby terminated and of no further force and effect and that (x) Lender
and Borrower are each hereby released and discharged from all of their respective obligations or liabilities under the Loan Agreement, the Note and all other Loan Documents, and (y) the rights of Lender and Borrower under the Loan Agreement, the Note and all other Loan Documents are terminated.  Lender shall file a UCC Financing Statement Amendment to terminate UCC Financing Statement 0000000181346562 filed with the State of Maryland Department of Assessments and Taxation on June 24, 2008 naming Borrower
as debtor and Lender as secured party.

 

2.             Representations and Warranties.  Each of the parties hereto represent and warrant to each other, that, as of the date hereof: (a)
it has the requisite authority and power to enter into this Agreement and the transactions contemplated hereby, and (b) the execution and delivery of this Agreement has been duly authorized and constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms.

 

3.             Further Assurances.  Each party hereto shall promptly execute and deliver, or to cause to be executed and delivered, all such instruments
and to take all such actions as the other party may reasonably request to effectuate the intent and purposes, and to carry out the terms, of this Agreement.

 

4.             Counterparts.  This Agreement may be executed in counterparts, each of which when so executed shall be deemed to be an original
and all of which when taken together shall constitute one and the same agreement.  Delivery of an executed counterpart of a signature page to this Agreement in Portable Document Format (PDF) or by facsimile transmission shall be effective as delivery of a manually executed original counterpart thereof.

 

5.             Amendment.  This Agreement may not be amended or modified, except by an instrument in writing signed by the Lender and Borrower.

 

6.             Costs and Expenses.  Each of the parties hereto shall be liable for its own costs and expenses in connection with the preparation, negotiation,
execution and performance of this Agreement.

 

7.             Severability.  The illegality, invalidity, or unenforceability of any provision of this Agreement under the law of any jurisdiction
shall not affect its legality, validity or enforceability under the law of any other jurisdiction nor the legality, validity or enforceability of any other provision.

 

8.             Successors and Assigns.  The terms of this Agreement and the respective rights and obligations of the parties hereunder shall be
binding upon, and inure to the benefit of, their respective successors and assigns.

 

 

2

 

 

9.             Governing Law; Waiver of Jury Trial. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK
WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PROVISIONS OF THE STATE OF NEW YORK.

 

 

 [Signature pages follow]

 

 

3

 

 

IN WITNESS WHEREOF, this Agreement has been duly executed as of the date first written above.

 

	 	LEHMAN COMMERCIAL PAPER INC., as Lender	 
	 	 	 	 
	 	
By: 
	/s/ Jeffrey Fitts	 
	 	 	Name: 	Jeffrey Fitts	 
	 	 	Title:	Authorized Signatory	 
	 	 	 	 
	 	 	 	 

 

 

[Signatures continue on the following page.]

 

 

4

 

 

	 	CAPITAL TRUST, INC., as Borrower	 
	 	 	 	 
	 	
By: 
	/s/ Geoffrey G. Jervis	 
	 	 	Name: 	Geoffrey G. Jervis	 
	 	 	Title:	Chief Financial Officer	 
	 	 	 	 
	 	 	 	 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]