Exhibit No. 10.01
Amendment
to Loan DOCUMENTS
THIS
AMENDMENT to Loan Documents (this “Amendment” or the “March 2012 Amendment”) is entered
into as of March 23, 2012 (the “March 2012 Amendment Date”), by and between SILICON VALLEY BANK, a California corporation
(“Bank” or “Silicon”), and ENCISION INC., a Colorado corporation (“Borrower”). Borrower’s
chief executive office is located at 6797 Winchester Circle, Boulder, CO 80301.
Recitals
A. Borrower
and Bank are parties to that certain Loan and Security Agreement dated as of November 10, 2006 (as amended, restated, supplemented
or otherwise modified from time to time, the “Loan Agreement”) in effect between Borrower and Bank.
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 extend the Revolving Line Maturity Date, as set forth in Section 2.1 below;
all as more fully set forth herein.
D. Bank
has agreed to so amend such provision 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. The term
“March 2012 Amendment Date” as defined above hereby is incorporated into the Loan Agreement.
2. Amendment
to Loan Documents.
2.1 Extension
of Revolving Line Maturity Date. The definition of Revolving Line Maturity Date set forth in Section 13.1 of the Loan Agreement,
which definition currently reads as follows (italics added):
“ “Revolving
Line Maturity Date” is March 23, 2012. ”
hereby is amended and restated in its entirety
to read as follows:
“ “Revolving
Line Maturity Date” is May 23, 2012. ”
3. Limitation
of Amendment.
3.1 The
amendment set forth in Section 2 above, is 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 (as amended by this Amendment, as applicable) 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 expressly
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 Documents, 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 Documents,
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 Documents,
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 Documents,
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. Release
by Borrower. Borrower hereby agrees as follows:
5.1 FOR
GOOD AND VALUABLE CONSIDERATION, Borrower hereby forever relieves, releases, and discharges Bank and its present or former
employees, officers, directors, agents, representatives, attorneys, and each of them, from any and all claims, debts, liabilities,
demands, obligations, promises, acts, agreements, costs and expenses, actions and causes of action, of every type, kind, nature,
description or character whatsoever, whether known or unknown, suspected or unsuspected, absolute or contingent, arising out of
or in any manner whatsoever connected with or related to facts, circumstances, issues, controversies or claims existing or arising
from the beginning of time through and including the date of execution of this Amendment (collectively “Released Claims”).
Without limiting the foregoing, the Released Claims shall include any and all liabilities or claims arising out of or in any manner
whatsoever connected with or related to the Loan Documents, the Recitals hereto, any instruments, agreements or documents executed
in connection with any of the foregoing or the origination, negotiation, administration, servicing and/or enforcement of any of
the foregoing.
5.2 In
furtherance of this release, Borrower expressly acknowledges and waives any and all rights under Section 1542 of the California
Civil Code, which provides as follows:
“A GENERAL RELEASE DOES NOT
EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR EXPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE,
WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” (Emphasis added.)
(and the equivalent thereof,
if any, under the laws of any other applicable jurisdiction).
5.3 By
entering into this release, Borrower recognizes that no facts or representations are ever absolutely certain and it may hereafter
discover facts in addition to or different from those which it presently knows or believes to be true, but that it is the intention
of Borrower hereby to fully, finally and forever settle and release all matters, disputes and differences, known or unknown, suspected
or unsuspected; accordingly, if Borrower should subsequently discover that any fact that it relied upon in entering into this release
was untrue, or that any understanding of the facts was incorrect, Borrower shall not be entitled to set aside this release by reason
thereof, regardless of any claim of mistake of fact or law or any other circumstances whatsoever. Borrower acknowledges that it
is not relying upon and has not relied upon any representation or statement made by Bank with respect to the facts underlying this
release or with regard to any of such party’s rights or asserted rights.
5.4 This
release may be pleaded as a full and complete defense and/or as a cross-complaint or counterclaim against any action, suit, or
other proceeding that may be instituted, prosecuted or attempted in breach of this release. Borrower acknowledges that the release
contained herein constitutes a material inducement to Bank to enter into this Amendment, and that Bank would not have done so but
for Bank’s expectation that such release is valid and enforceable in all events.
5.5 Borrower
hereby represents and warrants to Bank, and Bank is relying thereon, as follows:
(a) Except
as expressly stated in this Amendment, neither Bank nor any agent, employee or representative of Bank has made any statement or
representation to Borrower regarding any fact relied upon by Borrower in entering into this Amendment.
(b) Borrower
has made such investigation of the facts pertaining to this Amendment and all of the matters appertaining thereto, as it deems
necessary.
(c) The
terms of this Amendment are contractual and not a mere recital.
(d) This
Amendment has been carefully read by Borrower, the contents hereof are known and understood by Borrower, and this Amendment is
signed freely, and without duress, by Borrower.
(e) Borrower
represents and warrants that it is the sole and lawful owner of all right, title and interest in and to every claim and every other
matter which it releases herein, and that it has not heretofore assigned or transferred, or purported to assign or transfer, to
any person, firm or entity any claims or other matters herein released. Borrower shall indemnify Bank, defend and hold it harmless
from and against all claims based upon or arising in connection with prior assignments or purported assignments or transfers of
any claims or matters released herein.
6. Fee.
In consideration for Bank entering into this Amendment, Borrower shall pay Bank a fee in
the mutually agreed amount of $2,000.00, which fee shall be earned in full and payable concurrently with the execution and
delivery of this Amendment, and all Bank Expenses in connection herewith. Such fee shall be non-refundable and in addition to all
interest and other fees payable to Bank under the Loan Documents. Bank is authorized to charge such fee and such Bank Expenses
to Borrower’s loan account.
7. 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.
8. Effectiveness.
This Amendment shall be deemed effective upon the due execution and delivery to Bank of this Amendment by each party hereto.
[Remainder of page intentionally left blank; signature page
immediately follows.]
In
Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first
written above.
| Borrower: |
| |
| ENCISION Inc., a Colorado corporation |
| |
|
|
| |
|
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| By |
/s/ |
|
| PrintName |
FredPerner |
|
| Title |
President & CEO |
|
| Bank: |
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| SILICON VALLEY BANK |
| |
|
|
| |
|
|
| By |
/s/ |
|
| Print Name |
Daniel Harrison |
|
| Title |
RM |
|
Signature Page
