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EXHIBIT 10.31
FIFTH AMENDMENT TO
REVOLVING CREDIT AND LOAN AGREEMENT
This FIFTH AMENDMENT TO REVOLVING CREDIT AND LOAN AGREEMENT ("Fifth
Amendment") is dated as of February 27, 1997, and is among MEDAR, INC., a
Michigan corporation (the "Company"), and INTEGRAL VISION LTD., a corporation
established under the laws of the United Kingdom ("Integral"), as Borrowers,
and NBD BANK, a Michigan banking corporation ("NBD"). This Fifth Amendment
amends the Revolving Credit and Loan Agreement dated as of August 10, 1995 (as
amended, the "Loan Agreement"), as amended by the First Amendment to Revolving
Credit and Loan Agreement dated October 12, 1995 (the "First Amendment"), the
Second Amendment to Revolving Credit and Loan Agreement dated October 31, 1995
(the "Second Amendment"), the Third Amendment to Revolving Credit and Loan
Agreement dated as of March 29, 1996 ("Third Amendment") and the Fourth
Amendment to Revolving Credit and Loan Agreement dated as of August 11, 1996
("Fourth Amendment"), among the Company, AID (as defined below), Integral and
NBD. The Company and Integral are collectively referred to as the "Borrowers"
and individually as a "Borrower". Capitalized terms not otherwise defined in
this Fifth Amendment shall have the meanings given to them in the Loan
Agreement.
WHEREAS, the Company has informed NBD that its former subsidiary,
INTEGRAL VISION-AID, INC., a Michigan corporation ("AID") (successor by merger
to Integral Vision-Aid, Inc., an Ohio corporation, formerly known as Automatic
Inspection Devices, Inc.), has been merged into the Company and no longer
exists as a separate corporation;
WHEREAS, the Borrowers have requested that NBD advance sums in excess
of the current Borrowing Base;
WHEREAS, NBD has agreed that to make an additional $1,500,000 loan to
the Borrowers while they seek additional equity or subordinated debt, pursuant
to the terms and conditions of this Fifth Amendment, including the guaranty of
such loan by MAXCO, INC. ("Maxco").
WHEREAS, NBD has agreed that to make an additional $3,000,000 term loan
to the Borrowers in order to finance the existing over-formula advances which
Borrowers have not been able to repay on a timely basis.
NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties agree as follows:
1. Revised Definitions.
(a) The following definitions contained in Section 1.1 of the Loan
Agreement, as amended, are hereby amended, effective the date hereof, to read
as follows:
"Borrowing Base" means the sum of the following:
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(a) 80% of the book value of Eligible Accounts Receivables of
the Borrowers and Guarantor; plus
(b) 40% of the lower of costs or market value of Eligible
Inventory of the Borrowers and Guarantor. Notwithstanding the
foregoing, in no event will the amount advanced against Eligible
Inventory exceed $6,000,000 for advances on or prior to December 30,
1997, and $5,000,000 for advances on or after December 31, 1997.
"Commitment" means the commitment of NBD to make Revolving
Loans pursuant to the terms of Section 2.1, which together with the
outstanding principal amount of the Bridge Loan and the Over-Formula
Loan shall not exceed $16,000,000 until July 30, 1997, and $15,000,000
on and after July 31, 1997, as such amounts may be further reduced from
time to time pursuant to Section 2.2.
"Floating Rate" means the per annum rate equal to (i) 1/4%per annum,
plus (ii) the Prime Rate in effect from time to time.
"Tangible Net Worth" means (a) the excess, if any, of the
assets of the Borrowers and the Guarantor (excluding capitalized
software development costs, goodwill, patents, trademarks, trade names,
copyrights and other assets properly classified as intangible assets in
accordance with GAAP) over the liabilities of the Borrowers and the
Guarantors, determined on a combined basis in accordance with GAAP,
plus (c) Subordinated Debt; provided, however, that, in determining
Tangible Net Worth, (i) there shall be included in liabilities any and
all evidences of Indebtedness of the Borrowers or any Guarantor,
including notes and debentures of any Borrower or Guarantor which are
subordinated indebtedness, and (ii) there shall be excluded from assets
any and all assets of the Borrowers and the Guarantor which are
Investments in any other Person.
(b) Paragraph (b) of the definition of "Eligible Accounts Receivable"
is hereby amended by replacing the date "December 30, 1996" with the date
"March 31, 1997" and replacing the date "December 31, 1996" with the date
"April 1, 1997".
(c) The following definition is hereby added in alphabetical order to
Section 1.1 of the Loan Agreement to read as follows:
"Subordinated Debt" means Indebtedness of any of the Borrowers
or Guarantor which is incurred with the written consent of NBD;
provided that such Indebtedness is made subordinate to the Obligations
on terms satisfactory to NBD; and provided further that, unless
otherwise agreed to by NBD, NBD shall take custody and possession of
all original notes or other evidence of such Indebtedness.
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2. Commitment. The first sentence of Section 2.1(a) of the Loan
Agreement is hereby amended effective the date hereof by replacing it with the
following two sentences:
Subject to the terms and conditions of this Agreement, NBD
agrees to make Revolving Loans to the Borrowers, jointly and severally,
on a revolving basis from the Effective Date and before the Termination
Date as the Borrowers may from time to time request from NBD; provided,
however, that the aggregate principal amount of all Revolving Loans
which NBD shall be committed to have outstanding hereunder, when added
to the aggregate face amount of all outstanding L/Cs and Guaranties
Issued by NBD, shall not at any time exceed the lesser of (i) the
Borrowing Base at such time; or (ii) the Commitment; provided further,
that the aggregate principal amount of all Revolving Loans which NBD
shall be committed to have outstanding hereunder, when added to the
outstanding principal balance of the Bridge Loan, the outstanding
principal amount of the Over-Formula Loan, and the aggregate face
amount of all outstanding L/Cs and Guaranties Issued by NBD, shall not
at any time exceed the Commitment.
3. Inventory Reliance Fee. A new Section 2.1(b)(iii) of the Loan
Agreement is hereby added, effective January 1, 1997, to read as follows:
(iii) Inventory Reliance Fee. In addition to the commitment
fee due under Section 2.1(b)(ii) above, the Borrowers, jointly and
severally, agree to pay to NBD an inventory reliance fee computed at
the rate of 0.5% per quarter on the daily amount by which (a) the
principal amount of the outstanding Revolving Loans plus the aggregate
face amount of all outstanding L/Cs and Guaranties Issued by NBD
exceeds the sum of 80% of Eligible Receivables, calculated with respect
to the Borrowers on a combined basis. Such accrued inventory reliance
fee (if any) shall be due and payable quarterly in arrears on the first
day of each calendar quarter, beginning with the quarter beginning
January 1, 1997, to be paid on April 1, 1997, with any accrued but
unpaid inventory reliance fee due on the Termination Date.
4. New Term Loans. The Loan Agreement is hereby amended such that
new Sections 2.7 and 2.8 are added to read as follows:
2.7 Bridge Loan to the Borrowers. Subject to the terms and
conditions of the Loan Agreement and the Fifth Amendment, NBD will
extend a short term loan to the Borrowers, jointly and severally, in
the original principal amount of $1,500,000 ("Bridge Loan"), to be
evidenced by a promissory note in substantially the form of Exhibit 2.7
attached to the Fifth Amendment (together with any amendments,
restatements, replacements or renewals, the "Bridge Loan Note"). The
proceeds of the Bridge Loan will be applied to the outstanding
principal balance of the Revolving Loans. The Bridge Loan will bear
interest at 1% per annum above the Prime Rate in effect from time to
time. Interest on the Bridge
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Loan will be due and payable monthly on the last business day
of each month, beginning March 31, 1997. The principal outstanding
under the Bridge Loan shall be due and payable on March 31, 1997. Any
payments on the Bridge Loan will be applied first to unpaid interest
and then to principal, and once repaid, principal may not be
reborrowed. So long as there exists any Default or Event of Default,
unless otherwise consented to in writing by NBD, all payments received
by NBD from the Borrowers generated from operations, rather than from
Subordinated Debt or additional equity contributions, will be applied
first to the outstanding obligations under the Revolving Loans and
Over-Formula Loan before being applied to the Bridge Loan.
2.8 Over-Formula Loan to the Borrowers. Subject to the terms
and conditions of the Loan Agreement and the Fifth Amendment, NBD will
extend a term loan to the Borrowers, jointly and severally, in the
original principal amount of $3,000,000 ("Over-Formula Loan"), to be
evidenced by a promissory note in substantially the form of Exhibit 2.8
attached to the Fifth Amendment (together with any amendments,
restatements, replacements or renewals, the "Over-Formula Loan Note").
The proceeds of the Over-Formula Loan will be applied to the
outstanding principal balance of the Revolving Loans. The Over-Formula
Loan will bear interest at 2% per annum above the Prime Rate in effect
from time to time. Interest on the Over-Formula Loan will be due and
payable monthly on the last business day of each month, beginning March
31, 1997. The principal outstanding under the Over-Formula Loan shall
be due and payable in two installments of $1,500,000 each on July 31,
1997 and December 30, 1997. Any payments on the Over-Formula Loan will
be applied first to unpaid interest and then to principal, and once
repaid, principal may not be reborrowed.
5. Reporting. Subsections (ii) and (vii) of Section 6.1(d) of the
Loan Agreement are hereby amended to read as follows:
(ii) as soon as available and in any event within 30 days
after the end of each fiscal month of the Borrowers, (x) the Combined
balance sheet of the Borrowers and the Guarantor as of the end of each
such month and Combined statements of income, surplus and cash flow of
the Borrowers and the Guarantor for each such month and for the period
commencing at the end of the previous fiscal year and ending with the
end of such month, setting forth in each case in comparative form the
corresponding figures for the corresponding date or period of the
preceding fiscal year, and (y) the combining balance sheet and
statements of income, surplus and cash flows with respect to the
Borrowers and the Guarantor for such periods (prepared in a manner
consistent with such Combined balance sheet and statements), all in
reasonable detail and duly certified (subject to normal, immaterial
year-end audit adjustments) by the chief financial officer or
controller of the Company as having been prepared in accordance with
GAAP, together with a certificate of the chief financial officer or
controller of the Company (A) stating
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that no Default or Event of Default has occurred and is
continuing or, if any Default or Event of Default has occurred and is
continuing, a statement setting forth the details thereof and the
action which the applicable person has taken and proposes to take with
respect thereto, and (B) setting forth a computation (which computation
shall accompany such certificate and shall be in reasonable detail)
showing compliance with Sections 6.2(a), (b), (c) and (e) in conformity
with the terms of this Agreement;
. . . .
(vii) as soon as available, and in any event by Friday with
respect to the immediately preceding Thursday, a Borrowing Base
Certificate in a form and detail reasonably acceptable to NBD, executed
by the chief financial officers of the Borrowers; and
6. Field Examinations. A new Section 6.1(g) of the Loan Agreement
is hereby added to read as follows:
Audits. Prior to the occurrence of an Event of Default, permit
NBD's representatives to conduct an annual, on-site audit of the
Borrowers' and Guarantor's business operations, after the occurrence
of an Event of Default, NBD may audit the Borrowers, Guarantor and
their respective businesses as frequently as NBD desires, and the
Borrowers must reimburse NBD for all costs incurred in connection
therewith within 10 days after receipt of an invoice therefor.
7. Revised Financial Covenants. Sections 6.2(a) and (b) of the Loan
Agreement are hereby amended in their entirety to read as follows:
(a) Tangible Net Worth. Permit or suffer Tangible Net Worth
to be: (i) on September 30, 1996, less than $14,500,000; (ii) December
31, 1996, less than $9,700,000; and (iii) on September 30, 1997 and as
of the end of each fiscal quarter of the Borrowers thereafter, less
than $11,000,000.
(b) Debt to Worth Ratio. Permit or suffer the Debt to Worth
Ratio to exceed: (i) on December 31, 1996, 3.0 to 1.00; (ii) on
September 30, 1997 and as of the end of each fiscal quarter of the
Borrowers thereafter, 2.50 to 1.00.
8. Revolving Loans in Pounds Sterling. The parties agree that in
light of the fact that Integral has closed its office in the United Kingdom at
this time, NBD will not make any new Revolving Loans in Pounds Sterling or
Guaranties Issued by NBD, regardless of any terms to the contrary in the Loan
Agreement. At such time as the Borrowers so request and can show NBD that the
business of the Borrowers' would be better served by such borrowings, NBD (in
its sole discretion) may hereafter agree in writing to once again provide such
Pounds Sterling borrowings.
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9. Conditions. Notwithstanding any other term of this Fifth
Amendment or the Loan Agreement, NBD will not be required to give effect to
this Fifth Amendment unless the following conditions have been met:
(a) NBD shall have received an amendment fee of $90,000 and a
restructure fee of $25,000 from the Borrowers prior to or simultaneously with
the execution and delivery of this Fifth Amendment. The amendment fee and
restructure fee are in addition to all interest and fees otherwise payable to
NBD and will be deemed to be fully earned upon execution and delivery of this
Fifth Amendment.
(b) NBD shall have received a fully executed copy of this Fifth
Amendment, the Bridge Loan Note and the Over-Formula Loan Note.
(c) NBD shall have received the Guaranty Agreement from Maxco, in
form and substance acceptable to NBD, guarantying the principal, interest and
costs of collection of the Bridge Loan and consenting to the terms of this
Fifth Amendment.
(d) The Borrowers shall have executed and delivered to NBD
assignments of their respective intellectual property rights (including license
agreements), in form and substance satisfactory to NBD.
(e) All of the terms and conditions in Section 3.7 of the Loan
Agreement continue to be met.
10. Reaffirmation of Loan Agreement; Conflicts. The parties hereto
acknowledge and agree that the terms and provisions of this Fifth Amendment,
amend, add to and constitute a part of the Loan Agreement. Except as expressly
modified and amended by the terms of this Fifth Amendment, all of the other
terms and conditions of the Loan Agreement and all of the documents executed in
connection therewith or referred to or incorporated therein, remain in full
force and effect and are hereby ratified, confirmed and approved. If there is
an express conflict between the terms of this Fifth Amendment and the terms of
the Loan Agreement, or any of the other agreements or documents executed in
connection therewith or referred to or incorporated therein, the terms of this
Fifth Amendment shall govern and control. Any reference in any other document
or agreement to the Loan Agreement shall hereafter refer to the Loan Agreement
as amended by this Fifth Amendment.
11. Representations True. The representations and warranties of the
Borrowers contained in the Loan Agreement are true on the date hereof and,
after giving effect hereto, there does not exist any Default or Event of
Default under the Loan Agreement.
12. Expenses. Borrowers acknowledge and agree that the Borrowers will
pay all attorneys' fees and out-of-pocket costs of NBD in connection with or
with respect to this Fifth Amendment and the conditions set forth herein.
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IN WITNESS WHEREOF, the Borrowers and NBD have executed the foregoing
document by their duly authorized officers as of the day and year first written
above.
NBD BANK
By: Xxxxxxx X. Xxxxxxxxx
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Xxxxxxx X. Xxxxxxxxx
Its: Senior Vice President
and
By: Xxxxx Xxxxxx
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Xxxxx Xxxxxx
Its: Assistant Vice President
MEDAR, INC.
By: Xxxxxxx Xxxxx
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Xxxxxxx Xxxxx
Its: President
INTEGRAL VISION LTD.
By: Xxxxxxx Current
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Xxxxxxx Current
Its: Company Secretary
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REAFFIRMATION OF GUARANTY
The undersigned, Medar Canada Ltd., hereby acknowledges and agrees to
the terms of this Fifth Amendment to Revolving Credit and Loan Agreement and
hereby reaffirms each and every term of its (i) Guarantee and Postponement of
Claim dated August 10, 1995, given in favor of NBD Bank with respect to the
obligations of Medar, Inc., Automatic Inspection Devices, Inc. (now known as
Integral Vision-AID, Inc.) and Integral Vision Ltd., and (ii) General Security
Agreement dated as of May 1, 1996, given in favor of NBD Bank.
MEDAR CANADA LTD.
By: Xxxxxxx Xxxxx
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Xxxxxxx Xxxxx
Its: President
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COLLATERAL ASSIGNMENT OF
PROPRIETARY RIGHTS AND SECURITY AGREEMENT
THIS COLLATERAL ASSIGNMENT OF PROPRIETARY RIGHTS AND SECURITY AGREEMENT
("Agreement"), dated as of February 27, 1997, is made by Medar, Inc., a
Michigan corporation, in favor of NBD Bank, a Michigan banking corporation
("NBD" or "Lender").
Recitals:
A. Assignor, certain of its affiliates and Lender are parties to that
certain Revolving Credit and Loan Agreement dated as of August 10, 1995, as
amended by agreements dated October 12, 1995, October 31, 1995, March 29, 1996,
August 11, 1996 and the date hereof (such agreement, as amended, modified or
supplemented from time to time, is referred to herein as the "Loan Agreement").
B. It is a condition to the Fifth Amendment to Revolving Credit and
Loan Agreement being executed simultaneously herewith, that Assignor executes
and delivers this Agreement.
NOW THEREFORE, in consideration of the premises and to induce Lender to
make extensions of credit to Assignor under the Loan Agreement, and for other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, Assignor agrees with Lender as follows:
1. Defined Terms. In addition to those terms defined elsewhere in this
Agreement, terms defined in the Loan Agreement shall have their defined
meanings when used herein (unless otherwise defined herein) and the following
terms shall have the following meanings, unless the context otherwise requires:
"Collateral" means all of the Trademarks, Copyrights, Patents
and Intellectual Property Rights, whether now existing or hereafter
created or acquired (including, without limitation, such of the
foregoing as are listed on Schedule A attached hereto and made a part
hereof).
"Copyrights" means all United States copyrights, registered or
unregistered, in and to all copyrightable works now owned or hereafter
acquired by Assignor, including all registrations and applications
therefor and all licenses thereof and (a) any renewals or extensions of
the registrations therefor that may be secured under the laws now or
hereafter in effect in the United States, (b) all income, royalties,
damages and payments now and hereafter due or payable under and with
respect thereto, including, without limitation, payments under all
licenses entered into in connection therewith and damages and payments
for past or future infringements thereof, (c) the right to xxx and
recover for
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past, present and future infringements thereof, and (d) all
rights corresponding thereto throughout the world.
"Event of Default" means an Event of Default as defined in the
Loan Agreement.
"Intellectual Property Rights" means all intellectual property
rights other than Trademarks, Copyrights and Patents, now owned or
hereafter acquired by Assignor, including, without limitation, trade
secrets, know-how and confidential business information, computer
software, data and documentation (including electronic media) and
licenses thereof, and (a) all income, royalties, damages and payments
now and hereafter due or payable under and with respect thereto,
including, without limitation, payments under all licenses entered into
in connection therewith and damages and payments for past or future
infringements thereof, (b) the right to xxx and recover for past,
present and future infringements thereof, and (c) all rights
corresponding thereto throughout the world.
"Patents" means all United States patents and patent
applications, now owned or hereafter acquired by Assignor, including,
without limitation, the inventions and improvements described and
claimed therein, all licenses thereof and (a) the reissues,
divisions, continuations, renewals, extensions and
continuations-in-part thereof, (b) all income, royalties, damages and
payments now and hereafter due or payable under and with respect
thereto, including, without limitation, payments under all licenses
entered into in connection therewith and damages and payments for past
or future infringements thereof, (c) the right to xxx and recover for
past, present and future infringements thereof, and (d) all rights
corresponding thereto throughout the world.
"Trademarks" means all trademarks, trade names, corporate
names, company names, business names, fictitious business names, trade
styles, service marks, logos, other source or business identifiers,
prints and labels on which any of the foregoing have appeared or
appear, designs and general intangibles of like nature, trademark
registrations and applications for registration owned by Assignor and
all licenses thereof, together with the goodwill of the business
connected with the use of, and symbolized by, the foregoing, and (a)
the registration renewals thereof, (b) all income, royalties, damages
and payments now and hereafter due or payable under and with respect
thereto including, without limitation, payments under all licenses
entered into in connection therewith and damages and payments for past
or future infringements thereof, (c) the right to xxx and recover for
past, present and future infringements thereof, and (d) all rights
corresponding thereto throughout the world.
2. Collateral Assignment of Security Interest in Trademarks,
Copyrights and Patents and Intellectual Property Rights. To secure the prompt
and complete payment and performance when due (whether at stated maturity, by
acceleration or otherwise) of all the Obligations, Assignor hereby grants to
Lender and its assignees a continuing security interest in the Collateral, and,
subject to Section 6 hereof, shall assign, transfer and convey to Lender all
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right, title and interest, in the United States and throughout the world, in,
to and under the Collateral.
3. Continuing Liability. Assignor hereby expressly agrees that,
anything herein to the contrary notwithstanding, it shall remain liable under
each license, interest and obligation assigned to Lender hereunder to observe
and perform all the conditions and obligations to be observed and performed by
Assignor thereunder, all in accordance with and pursuant to the terms and
provisions thereof. Lender shall have no obligation or liability under any
such license, interest or obligation by reason of or arising out of this
Agreement or the assignment thereof to Lender or the receipt by Lender of any
payment relating to any such license, interest or obligation pursuant hereto,
nor shall Lender be required or obligated in any manner to perform or fulfill
any of the obligations of Assignor thereunder or pursuant thereto, or to make
any payment, or to make any inquiry as to the nature or the sufficiency of any
payment received by any of them or the sufficiency of any performance by any
party under any such license, interest or obligation, or to present or file any
claim, or to take any action to collect or enforce any performance of the
payment of any amounts which may have been assigned to Assignor or to which
Assignor may be entitled at any time or times.
4. Representations and Warranties. Assignor hereby represents and
warrants to Lender:
(a) All of Assignor's Copyrights, Patents and Trademarks
(whether or not registered) which are material to its business are
listed on Schedule A hereto, as updated from time to time.
(b) Except as set forth in Schedule A and except for Permitted
Liens, Assignor owns free and clear of all Liens all right, title and
interest in, or has full right and authority to use, all Collateral
necessary or desirable for the conduct of its business as currently
conducted, as previously conducted or as currently proposed to be
conducted.
5. Updated Information and Filings. Assignor agrees that it will
deliver to Lender an updated Schedule A to this Agreement on at least a
quarterly basis, and more often if requested by Lender. Assignor also agrees
that it will take such actions as requested by Lender to allow Lender to record
and perfect its Lien on Assignor's Copyrights, Patents, Trademanrks and
Intellectual Property Rights, including without limitation, filing and
registering its rights with appropriate governmental entities.
6. Restrictions on Future Agreements. Assignor agrees that until all
of the Obligations have been paid in full and the Loan Agreement has been
terminated, it will not, without Lender's prior written consent, enter into any
agreement, including, without limitation, any license agreement, which is
inconsistent with Assignor's obligations under this Agreement or which is
prohibited by the Loan Agreement.
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7. Effect of Collateral Assignment and Remedies. (a) If an Event of
Default has occurred and is continuing, Lender may exercise, in addition to all
other rights and remedies granted to it in this Agreement, the Loan Agreement
and any other Loan Document, all rights and remedies of a secured party under
the Uniform Commercial Code or any other applicable law. Without limiting the
generality of the foregoing, Assignor expressly agrees that in any such event
Lender may forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, or may forthwith sell, lease, assign or sell
or otherwise dispose of and deliver said Collateral (or contract to do so), or
any part thereof, in one or more public or private sale or sales, at any
exchange, broker's board or at any of Lender's offices or elsewhere at such
prices as it may deem best, for cash or on credit or for future delivery
without assumption of any credit risk, and Lender shall apply the net proceeds
(after expenses) of any such sale, lease, assignment or other disposition
against the Obligations in such order as Lender in its sole discretion shall
determine (subject to the terms of the Loan Agreement), Assignor remaining
liable for any deficiency thereon. Lender shall have the right upon any such
public sale or sales, and, to the extent permitted by law, upon any such
private sale or sales, to purchase the whole or any part of the Collateral so
sold, free of any right or equity of redemption in Assignor, which right or
equity is hereby expressly waived and released. To the extent permitted by
applicable law, Assignor waives all claims, damages and demands against Lender
arising out of the repossession, retention or sale of the Collateral. Assignor
agrees that Lender need not give more than ten days' notice of the time and
place of any public sale or of the time after which a private sale may take
place and that such notice is reasonable notification of such matter.
(b) During the continuance of an Event of Default, Assignor hereby
authorizes Lender to make, constitute and appoint any officer or agent of
Lender as Lender may select, in Lender's sole discretion, as Assignor's true
and lawful attorney-in-fact, with power: (i) to endorse Assignor's name on all
applications, documents, papers and instruments necessary or desirable for
Lender in the use of Collateral; (ii) to notify any licensee of Assignor that
such licensee should make future payments under the license directley to
Lender; (iii) to take any other actions with respect to the Collateral as
Lender deem in its best interest; and (iv) to assign, pledge, convey or
otherwise transfer title in or dispose of the Collateral to any Person.
Assignor hereby ratifies all that such attorney shall lawfully do or cause to
be done by virtue of this Agreement. This power of attorney shall be
irrevocable until all of the Obligations have been paid in full and all of the
financing arrangements between Assignor and Lender have been terminated.
Assignor agrees that, in addition to all other rights and remedies granted to
Lender in this Agreement, the Loan Agreement and any other Loan Document,
Lender shall be entitled to specific performance and injunctive and other
equitable relief, and Assignor further agrees to waive any requirement for the
securing or posting of any bond or other security in connection with the
obtaining of any such specific performance and injunctive or other equitable
relief.
8. Indemnification. Assignor shall indemnify and hold harmless Lender
from and against any and all losses, claims, damages, liabilities and expenses
(including, without limitation, reasonable attorneys' fees and expenses)
sustained, suffered or incurred by Lender arising out of, with respect to, or
resulting from any commercially reasonable exercise by Lender of its rights
under this Agreement, including without limitation, after a default by
Assignor, the
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exercise by Lender of its rights to sell, lease, assign, give option or options
to purchase, or sell and otherwise dispose of the Collateral. In any suit,
proceeding or action brought by Lender to enforce its rights in the Collateral,
Assignor will save, indemnify and hold Lender harmless from and against all
expenses, loss or damage suffered by reason of any defense, set-off,
counterclaim, recoupment or reduction or liability whatsoever of any third
party, arising out of a breach by Assignor of any obligation or arising out of
any other agreement, indebtedness or liability at any time owing to or in favor
of such third party or its successors from Assignor; provided that Assignor
shall have no obligation under this Section 7 to indemnify any Person under
this Agreement for liabilities arising from the gross negligence or willful
misconduct of such Person or arising from the breach by any such Person of its
obligations under applicable law (including the obligation to act in a
commercially reasonable manner in the disposition of certain Collateral).
9. Powers Coupled with an Interest. All authorizations and agencies
herein contained with respect to the Collateral are irrevocable and powers
coupled with an interest.
10. Severability. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.
11. Section Headings, etc. The Section headings used in this Agreement
are for convenience of reference only and are not to affect the construction
hereof or be taken into consideration in the interpretation hereof. All
references to Sections, Schedules and Exhibits are to Sections, Schedules and
Exhibits in or to this Agreement unless otherwise specified.
12. No Waiver: Cumulative Remedies. Lender shall not by any act
(except a written instrument pursuant to Section 12 hereof), delay, indulgence,
omission or otherwise be deemed to have waived any right or remedy hereunder or
to have acquiesced in any Event of Default or in any breach of the terms and
conditions hereof. A waiver by Lender of any right or remedy hereunder on any
one occasion shall not be construed as a bar to any right or remedy which
Lender would otherwise have had on any future occasion. No failure to exercise
nor any delay in exercising on the part of Lender any right, power or privilege
hereunder, shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or
future exercise thereof or the exercise of any other right, power or privilege.
The rights and remedies hereunder provided are cumulative and may be exercised
singly or concurrently, and are not exclusive of any rights and remedies
provided by the Loan Agreement, any other Loan Document or applicable law.
13. Waivers and Amendments: Successors and Assigns: Governing Law.
None of the terms or provisions of this Agreement may be waived, altered,
modified or amended except by a written instrument, duly executed by Assignor
and Lender. This Agreement and all obligations of Assignor hereunder shall be
binding upon the successors and assigns of Assignor, and shall, together with
the rights and remedies of Lender hereunder, inure to the benefit of
5
14
Lender and its successors and assigns, provided that Assignor may not assign or
transfer any of its rights or obligations hereunder without the prior written
consent of Lender. THIS AGREEMENT SHALL BE GOVERNED BY, AND BE CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE LAWS OF
CONFLICT) OF THE STATE OF MICHIGAN.
14. Notices, Etc. Any demand, notice or communication to be made or
given hereunder shall be in writing and shall be given in accordance with the
Loan Agreement.
15. Counterparts. This Agreement may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
together shall constitute one and the same instrument, and it shall not be
necessary in making proof of this Agreement to produce or account for more than
one such counterpart.
16. Waiver of Jury Trial. THE PARTIES HERETO ACKNOWLEDGE THAT THE
RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL RIGHT, BUT THAT THIS RIGHT MAY BE
WAIVED. LENDER AND THE ASSIGNOR EACH HEREBY KNOWINGLY, VOLUNTARILY AND WITHOUT
COERCION, WAIVE ALL RIGHTS TO A TRIAL BY JURY OF ALL DISPUTES ARISING OUT OF OR
IN RELATION TO THIS AGREEMENT OR ANY OTHER AGREEMENTS BETWEEN THE PARTIES. NO
PARTY SHALL BE DEEMED TO HAVE RELINQUISHED THE BENEFIT OF THIS WAIVER OF JURY
TRIAL UNLESS SUCH RELINQUISHMENT IS IN A WRITTEN INSTRUMENT SIGNED BY THE PARTY
TO WHICH SUCH RELINQUISHMENT WILL BE CHARGED.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the date first set forth above.
NBD BANK MEDAR, INC.
By: Xxxxxxx X. Xxxxxxxxx By: Xxxxxxx Xxxxx
-------------------------------- ---------------------------------
Xxxxxxx X. Xxxxxxxxx Xxxxxxx Xxxxx
Its: Senior Vice President Its:President
and
By: Xxxxx Xxxxxx
--------------------------------
Xxxxx Xxxxxx
Its: Assistant Vice President
6
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EXHIBIT A
List of Patents
Medar, Inc.
1. Structure for and method of weld control
Number: US 5424506
Issue Date: 6/13/95
Continuation of US 5128507
2. Weld contact structure for and method of delaying initiation of a weld
Number: US 5128507
Issue Date: 12/5/89
3. Automatic Stepper for resistance welding
Number: US 4885451
Issue Date: 12/5/89
4. Method and apparatus for determining the power factor of a circuit
Number: US 4851635
Issue Date: 7/25/89
5. High frequency resistance spot welding structure and method
Number: US 4831229 and foreign patents Xxxxxxx XX 0000000
Issue Date: 5/16/89 Japan JP 00000000
Canada CA 1300696
6. Structure and method for resistance welding with an inductively
coupled power source
Number: US 4804819 and foreign patents Xxxxxxx XX 0000000
Issue Date: 2/14/89 Japan JP 00000000
Canada CA 1298625
Japan JP 0000000
7. High speed resistance seam welding
Number: US 4733045 and foreign patents Canada CA 1295693
Issue Date: 3/22/88
16
8. Structure for and method of reducing impedance in multi phase direct
current power supplies
Number: US 4513363
Issue Date: 4/23/85
9. Proximity detector
Number: US 3736445
Issue Date: 5/29/73
10. Method of regulating DC current in resistance welders
Number: US 5589088
Issue Date: 12/31/96
11. Patent Assignee: Medar, Inc.
Title: Butt welding control by sensor of velocity,
acceleration or displacement of relative motion
Patent Family:
Germany 3233560 A 840301
Great Britain 2126511 A 840328
12. Patent Assignee: Medar, Inc.
Title: Three-phase rectifier supplying welding
transformer has six-thyristor bridges coupled
via four-thyristor controller to transformer
Patent Family:
Germany 3034151 A 810402
Great Britain 2061032 A 000000
Xxxxxx 2465356 A 810417
Great Britain 2061032 B 840125
Canada 1168305 A 840529
Trademarks
1. Visionblox Status: Registered in U.K.
RN: 2043358
Goods: Computer Software
17
Status: Advertised in Canada
AN: 796,249
Goods: Computer Software
Status: Pending in the U.S.
SN: 74-696,744
Goods: Computer Software
Status: Registered in France
AN: 95 599447
Goods: "in the French language"
2. Medar Status: Pending in Canada
AN: 770,874
Goods: Welding control/optical devices
Status: Registered in U.S.
RN: 1,909,851
Goods: Welding control/optical devices
3. Medar
and Design Status: Pending in Canada
AN: 770,872
Goods: Welding control/optical devices
Status: Registered in U.S.
RN: 1,911,205
Goods: Welding control/optical devices
4. Visionbasic Status: Pending in U.S.
SN: 74-696,745
Goods: Computer Software
5. Indepth Status: Pending in U.S.
SN: 74-696,743
Goods: Visual inspection system etc.
List of Copyrights
Meldweld 2000
Class: TX
Reg. Num: TX2486122
Date: 1/11/89
