EIGHTH AMENDMENT TO AMENDED ANDRESTATED LOAN AND SECURITY AGREEMENT

Contract Categories: Business Finance - Loan Agreements
EX-10.1 2 exhibit10-1.htm EIGHTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

EXHIBIT 10.1

EIGHTH AMENDMENT TO AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

     This Eighth Amendment to Amended and Restated Loan and Security Agreement (this “Amendment”) is entered into as of November 28, 2011, by and between COMERICA BANK (“Bank”) and LYRIS, INC., LYRIS TECHNOLOGIES INC. and COMMODORE RESOURCES (NEVADA), INC. (each a “Borrower” and collectively, “Borrowers”).

RECITALS

     Borrowers and Bank are parties to that certain Amended and Restated Loan and Security Agreement dated as of March 6, 2008, as amended from time to time, including by that certain First Amendment to Amended and Restated Loan and Security Agreement dated as of July 30, 2008, that certain Second Amendment to Amended and Restated Loan and Security Agreement dated as of December 31, 2008, that certain Third Amendment to Amended and Restated Loan and Security Agreement dated as of June 19, 2009, that certain Fourth Amendment to Amended and Restated Loan and Security Agreement dated as of October 23, 2009, that certain Fifth Amendment to Amended and Restated Loan and Security Agreement dated as of May 6, 2010, that certain Sixth Amendment to Amended and Restated Loan and Security Agreement dated as of September 15, 2010 and that certain Seventh Amendment to Amended and Restated Loan and Security Agreement dated as of August 31, 2011 (collectively, the “Agreement”). The parties desire to amend the Agreement in accordance with the terms of this Amendment.

     NOW, THEREFORE, the parties agree as follows:

     1. Section 6.7 of the Agreement hereby is amended and restated in its entirety to read as follows:

               “6.7 Financial Covenants. Borrowers shall at all times maintain the following financial ratios and covenants:

               (a) Three Month EBITDA. Measured monthly on a trailing three (3) month basis, EBITDA of not less than the following for the applicable periods:

Measuring Period Ending Minimum Trailing Three (3) month EBITDA
 
10/31/11 ($250,000 )
 
11/30/11 $300,000
 
12/31/11 ($350,000 )
 
1/31/2012 and thereafter $200,000
 
     ”

     2. Exhibit C to the Agreement is hereby replaced with Exhibit C attached hereto.

     3. No course of dealing on the part of Bank or its officers, nor any failure or delay in the exercise of any right by Bank, shall operate as a waiver thereof, and any single or partial exercise of any such right shall not preclude any later exercise of any such right. Bank’s failure at any time to require strict performance by a Borrower of any provision shall not affect any right of Bank thereafter to demand strict compliance and performance. Any suspension or waiver of a right must be in writing signed by an officer of Bank.

     4. Unless otherwise defined, all initially capitalized terms in this Amendment shall be as defined in the Agreement. The Agreement, as amended hereby, shall be and remain in full force and effect in accordance with its respective 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.



     5. Each Borrower represents and warrants that the Representations and Warranties contained in the Agreement are true and correct as of the date of this Amendment, and that, except as expressly waived hereby, no Event of Default has occurred and is continuing.

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

               (a) this Amendment, duly executed by each Borrower;

               (b) an amendment fee in the amount of Three Thousand Five Hundred Dollars ($3,500);

               (c) all reasonable Bank Expenses incurred through the date of this Amendment, which may be debited from any of Borrowers’ accounts; and

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

     7. 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.



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

  LYRIS, INC.
 
By: /s/ Wolfgang Maasberg
 
Title:   Chief Executive Officer
 
 
LYRIS TECHNOLOGIES INC.
 
By: /s/ Wolfgang Maasberg
 
Title: Chief Executive Officer
 
 
COMMODORE RESOURCES (NEVADA), INC.
 
By: /s/ Wolfgang Maasberg
 
Title: Assistant Secretary
 
 
COMERICA BANK
 
By: /s/Philip Koblis
 
Title: Senior Vice President

 

 

 

 

 

 

 

[Signature Page to Eighth Amendment to Amended and Restated Loan and Security Agreement]



EXHIBIT C

COMPLIANCE CERTIFICATE

TO:       COMERICA BANK
 
FROM:   LYRIS INC., for itself and on behalf of all Borrowers

     The undersigned authorized officer of LYRIS, INC., for itself and on behalf of all Borrowers, hereby certifies that in accordance with the terms and conditions of the Loan and Security Agreement between Borrowers and Bank (the "Agreement"), (i) Each Borrower is in complete compliance for the period ending _______________ with all required covenants except as noted below and (ii) all representations and warranties of each Borrower stated in the Agreement are true and correct as of the date hereof. Attached herewith are the required documents supporting the above certification. The Officer further certifies that these are prepared in accordance with Generally Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying letter or footnotes.

Please indicate compliance status by circling Yes/No under "Complies" column.

Reporting Covenant             Required Complies
Monthly financial statements Monthly within 30 days Yes      No
10K Within 90 days of fiscal year end Yes No
10Q Within 45 days of quarter end Yes No
Borrowing Base Cert, A/R & A/P Agings Monthly within 30 days Yes No
Compliance Cert. Monthly within 30 days   Yes No
A/R Audit Semi-Annual Yes No
IP Report Quarterly within 45 days Yes   No
Total amount of Borrowers' cash and Amount:  $                              Yes No
investments  
Total amount of Borrowers' cash and Amount: $   Yes No
investments maintained with Bank
 
Financial Covenant   Required Actual Complies
Minimum 3-Month EBITDA See attached chart     $                Yes No

Comments Regarding Exceptions: See Attached.    BANK USE ONLY            
 
Sincerely, Received by:  
                                          AUTHORIZED SIGNER
  Date:  
SIGNATURE  
    Verified:  
  TITLE AUTHORIZED SIGNER
Date:  
                 
DATE   Compliance Status Yes   No  



Minimum Trailing 3 month EBITDA Requirements

Measuring Period Ending Minimum Trailing Three (3) month EBITDA
 
10/31/11 ($250,000 )
 
11/30/11 $300,000
 
12/31/11 ($350,000 )
 
1/31/2012 and thereafter $200,000