First Amendment to Revolving Loan Agreement between AmSouth Bank and Surgical Laser Technologies, Inc.

Summary

This amendment updates the financial covenants in the original Revolving Loan Agreement between AmSouth Bank and Surgical Laser Technologies, Inc. The changes require Surgical Laser Technologies to maintain specific financial ratios, including a minimum cash flow coverage of 1.25 times, interest coverage of 2.25 times, and a maximum debt-to-tangible net worth ratio of 0.60 to 1. These requirements apply as long as the loan remains unpaid or the bank's commitment is outstanding. The amendment is effective as of December 31, 2001, and was agreed upon by both parties in February 2002.

EX-10.18 5 dex1018.txt FIRST AMENDMENT TO REVOLVING LOAN AGREEMENT EXHIBIT 10.18 First Amendment to Revolving Loan Agreement between AmSouth Bank and Surgical Laser Technologies dated May 31, 2000 RESOLVED, that, effective December 31, 2001, AmSouth Bank and Surgical Laser Technologies hereby declare and certify by the signatures indicated below, that Article VII and all the contents represented in this section as found on page 20 of the Loan Agreement dated May 31, 2000, should be amended and restated as follows: Article VII FINANCIAL COVENANTS So long as the Note shall remain unpaid or the Bank shall have any Commitment under this Agreement: Section 7.01 Traditional Cash Flow Coverage. The Borrower shall maintain traditional cash flow coverage of 1.25X as measured over the one year period beginning the first day of the Borrowers then beginning Fiscal Year and ending on the last day of the Borrower's same Fiscal Year. Traditional Cash Flow coverage is defined as net income plus depreciation expense plus amortization expense plus total interest expense minus dividends divided by the prior period current portion of long term debt plus interest expense. Section 7.02 Interest Coverage. The Borrower shall maintain interest coverage of 2.25X as measured over the one year period beginning the first day of the Borrowers then beginning Fiscal Year and ending on the last day of the Borrower's same Fiscal Year. Interest Coverage is defined as net income plus interest expense plus depreciation expense divided by interest expense. Section 7.03 Leverage Ration. The Borrower shall maintain at all times a ration of total Debt to tangible net worth of not more than .60 to 1. Accepted and Agreed upon this 20th day of February, 2002: AmSouth Bank Surgical Laser Technologies, Inc. By: /s/ Rhett D. Jordan By: /s/ Michael R. Stewart -------------------- ---------------------- RHETT D. JORDAN MICHAEL R. STEWART Vice President President and CEO By: /s/ Davis Woodward ---------------------- Davis Woodward Chief Financial Officer By: /s/ Craig K. Carra ---------------------- Craig Carra Controller