Exhibit 10.57
BUSINESS LOAN AGREEMENT
28500026
References in the shaded area are for Lender's use only and do not limit the
applicability of this document to any particular loan or item. Any item
above containing "***" has been omitted due to text length limitations.
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Principal Loan Date Maturity Loan No Call/Coll Account Officer Initials
$3,300,000.00 11-12-2001 11-14-2008 BL 53/31 TW
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References in the shaded area are for Lender's use only and do not limit the applicability
of this document to any particular loan or item. Any item above containing "***" has been
omitted due to text length limitations.
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Borrower:
IMPAX LABORATORIES, INC. ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Lender:
CATHAY BANK, a California Banking Corp. MILPIT AS ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇ ▇▇, ▇▇ ▇▇▇▇▇
THIS BUSINESS LOAN AGREEMENT dated November 12,2001, is made and executed
between IMPAX LABORATORIES, INC. ("Borrower") and CATHAY BANK, a California
Banking Corp. ("Lender") on the following terms and conditions. Borrower has
received prior commercial loans from Lender or has applied to Lender for a
commercial loan or loans or other financial accommodations, Including those
which may be described on any exhibit or schedule attached to this Agreement
("Loan"). Borrower understands and agrees that: (A) in granting, renewing, or
extending any Loan, Lender Is relying upon Borrower's representations,
warranties, and agreements as set forth in this Agreement, and (B) all such
Loans shall be and remain subject to the terms and conditions of this Agreement.
TERM. This Agreement shall be effective as of November 12, 2001,and shall
continue in full force and effect until such time as all of Borrower's Loans in
favor of Lender have been paid in full, including principal, interest, costs,
expenses, attorneys' fees, and other fees and charges, or until such time as the
parties may agree in writing to terminate this Agreement.
CONDITIONS PRECEDENT TO EACH ADVANCE. Lender's obligation to make the initial
Advance and each subsequent Advance under this Agreement shall be subject to the
fulfillment to Lender's satisfaction of all of the conditions set forth in this
Agreement and in the Related Documents.
Loan Documents. Borrower shall provide to Lender the following documents for the
Loan: (1) the Note; (2) Security Agreements granting to Lender security
interests in the Collateral; (3) financing statements and all other documents
perfecting Lender's Security Interests; (4) evidence of insurance as required
below; (5) together with all such Related Documents as Lender may require for
the Loan; all in form and substance satisfactory to Lender and Lender's counsel.
Borrower's Authorization. Borrower shall have provided in form and substance
satisfactory to Lender properly certified resolutions, duly authorizing the
execution and delivery of this Agreement, the Note and the Related Documents. In
addition, Borrower shall have provided such other resolutions, authorizations,
documents and instruments as Lender or its counsel, may require.
Payment of Fees and Expenses. Borrower shall have paid to Lender all fees,
charges, and other expenses which are then due and payable as specified in this
Agreement or any Related Document.
Representations and Warranties. The representations and warranties set forth in
this Agreement, in the Related Documents, and in any document or certificate
delivered to Lender under this Agreement are true and correct.
No Event of Default. There shall not exist at the time of any Advance a
condition which would constitute an Event of Default under this Agreement or
under any Related Document.
REPRESENTATIONS AND WARRANTIES. Borrower represents and warrants to Lender, as
of the date of this Agreement, as of the date of each disbursement of loan
proceeds, as of the date of any renewal, extension or modification of any Loan,
and at all times any Indebtedness exists:
Organization. Borrower is a corporation for profit which is, and at all times
shall be, duly organized, validly existing, and in good standing under and by
virtue of the laws of the State of Delaware. Borrower is duly authorized to
transact business in the State of California and all other states in which
Borrower is doing business, having obtained all necessary filings, governmental
licenses and approvals for each state in which Borrower is doing business.
Specifically, Borrower is, and at all times shall be, duly qualified as a
foreign corporation in all states in which the failure to so qualify would have
a material adverse effect on its business or financial condition. Borrower has
the full power and authority to own its properties and to transact the business
in which it is presently engaged or presently proposes to engage. Borrower
maintains an office at ▇▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇. Unless Borrower
has designated otherwise in writing, the principal office is the office at which
Borrower keeps its books and records including its records concerning the
Collateral. Borrower will notify Lender prior to any change in the location of
Borrower's state of organization or any change in Borrower's name. Borrower
shall do all things necessary to preserve and to keep in fun force and effect
its existence, rights and privileges, and shall comply with all regulations,
rules, ordinances, statutes, orders and decrees of any governmental or
quasi-governmental authority or court applicable to Borrower and Borrower's
business activities.
Assumed Business Names. Borrower has filed or recorded all documents or filings
required by law relating to all assumed business names used by Borrower.
Excluding the name of Borrower, the following is a complete list of all assumed
business names under which Borrower does business:
..Borrower Assumed Business Name Filina Location Date
--------- --------------------- ---------------
In IMPAX LABORATORIES, INC. Global Pharmaceutical, Inc. Alameda
IMPAX LABORATORIES, INC. Impax Pharmaceuticals Alameda
Authorization. Borrower's execution, delivery, and performance of this Agreement
and all the Related Documents have been duly authorized by all necessary action
by Borrower and do not conflict with, result in a violation of, or constitute a
default under (1) any provision of Borrower's articles of incorporation or
organization, or bylaws, or any agreement or other instrument binding upon
Borrower or (2) any law, governmental regulation, court decree, or order
applicable to Borrower or to Borrower's properties.
Financial Information. Each of Borrower's financial statements supplied to
Lender truly and completely disclosed Borrower's financial condition as of the
date of the statement, and there has been no material adverse change in
Borrower's financial condition subsequent to the date of the most recent
financial statement supplied to Lender. Borrower has no material contingent
obligations except as disclosed in such financial statements.
Legal Effect. This Agreement constitutes, and any instrument or agreement
Borrower is required to give under this Agreement when delivered will constitute
legal, valid, and binding obligations of Borrower enforceable against Borrower
in accordance with their respective terms.
Properties. Except as contemplated by this Agreement or as previously disclosed
in Borrower's financial statements or in writing to Lender and as accepted by
Lender, and except for property tax liens for taxes not presently due and
payable, Borrower owns and has good title to all of Borrower's properties free
and clear of all Security Interests, and has not executed any security documents
or financing statements relating to such properties. All of Borrower's
properties are titled in Borrower's legal name, and Borrower has not used or
filed a financing statement under any other name for at least the last five (5)
years.
BUSINESS LOAN AGREEMENT (Continued)
Page 2
Hazardous Substances. Except as disclosed to and acknowledged by Lender in
writing, Borrower represents and warrants that: (1) During the. period of
Borrower's ownership of Borrower's Collateral, there has been no use,
generation, manufacture, storage, treatment, disposal, release or threatened
release of any Hazardous Substance by any person on, under, about or from any of
the Collateral. (2) Borrower has no knowledge of, or reason to.believe that
there has been (a) any breach or violation of any Environmental Laws; (b) any
use, generation, manufacture, storage, treatment, disposal, release or
threatened release of any Hazardous Substance on, under, about or from the
Collateral by any prior owners or occupants of any of the Collateral; or (c) any
actual or threatened litigation or claims of any kind by.any person relating to
such matters. (3) Neither Borrower nor any tenant, contractor, agent or other
authorized user of any of the Collateral shall use, generate, manufacture,
store, treat, dispose of or release any Hazardous Substance on, under, about or
from any of the Collateral; and any such activity shall be conducted in
compliance with all applicable federal, state, and local laws, regulations, and
ordinances, including without limitation all Environmental Laws. Borrower
authorizes Lender and its agents to enter upon the Collateral to make such
inspections and tests as Lender may deem appropriate to determine compliance of
the Collateral with this section of the Agreement. Any inspections or tests made
by Lender shall be at Borrower's expense and for Lender's purposes only and
shall not be construed to create any responsibility or liability on the part of
Lender to Borrower or to any other person. The representations and warranties
contained herein are based on Borrower's due diligence in investigating the
Collateral for hazardous waste and Hazardous Substances. Borrower hereby (1)
releases and waives any future claims against Lender for indemnity or
contribution in the event Borrower becomes liable for cleanup or other costs
under any such laws, and (2) agrees to indemnify and hold harmless Lender
against any and all claims, losses, liabilities, damages, penalties, and
expenses which Lender may directly or indirectly sustain or suffer resulting
from a breach of this section of the Agreement or as a consequence of any use,
generation, manufacture, storage, disposal, release or threatened release of a
hazardous waste or substance on the Collateral. The provisions of this section
of the Agreement, including the obligation to indemnify, shall survive the
payment of the Indebtedness and the termination, expiration or satisfaction of
this Agreement and shall not be affected by Lender's acquisition of any interest
in any of the Collateral, whether by foreclosure or otherwise.
Litigation and Claims. No litigation, claim, investigation, administrative
proceeding or similar action (including those for unpaid taxes) against Borrower
is pending or threatened, and no other event has occurred which may materially
adversely affect Borrower's financial condition or properties, other than
litigation, claims, or other events, if any, that have been disclosed to and
acknowledged by Lender in writing.
Taxes. To the best of Borrower's knowledge, all of Borrower's tax returns and
reports that are or were required to be filed, have been filed, and all taxes,
assessments and other governmental charges have been paid in full, except those
presently being or to be contested by Borrower in good faith in the ordinary
course of business and for which adequate reserves have been provided.
Lien Priority. Unless otherwise previously disclosed to Lender in writing,
Borrower has not entered into or granted any Security Agreements, or permitted
the filing or attachment of any Security Interests on or affecting any of the
Collateral directly or indirectly securing repayment of Borrower's Loan and
Note, that would be prior or that may in any way be superior to Lender's
Security Interests and rights in and to such Collateral.
Binding Effect. This Agreement, the Note, all Security Agreements (if any), and
all Related Documents are binding upon the signers thereof, as well as upon
their successors, representatives and assigns, and are legally enforceable in
accordance with their respective terms.
AFFIRMATIVE COVENANTS. Borrower covenants and agrees with Lender that, so long
as this Agreement remains in effect, Borrower will:
Notices of Claims and Litigation. Promptly inform Lender in writing of (1) all
material adverse changes in Borrower's financial condition, and (2) all existing
and all threatened litigation, claims, investigations, administrative
proceedings or similar actions affecting Borrower or any Guarantor which could
materially affect the financial condition of Borrower or the financial condition
of any Guarantor.
Financial Records. Maintain its books and records in accordance with GAAP,
applied on a consistent basis, and permit Lender to examine and audit Borrower's
books and records at all reasonable times.
Financial Statements. Furnish Lender with such financial statements and other
related information at such frequencies and in such detail as Lender may
reasonably request.
Additional Information. Furnish such additional information and statements, as
Lender may request from time to time. Insurance. Maintain fire and other risk
insurance, public liability insurance, and such other insurance as Lender may
require with respect to Borrower's properties and operations, in form, amounts,
coverages and with insurance companies acceptable to Lender. Borrower, upon
request of Lender, will deliver to Lender from time to time the policies or
certificates of insurance in form satisfactory to Lender, including stipulations
that coverages will not be cancelled or diminished without at least thirty (30)
days prior written notice to Lender. Each insurance policy also shall include an
endorsement providing that coverage in favor of Lender will not be impaired in
any way by any act, omission or default of Borrower or any other person. In
connection with all policies covering assets in which Lender holds or is offered
a security interest for the Loans, Borrower will provide Lender with such
lender's loss payable or other endorsements as Lender may require.
Insurance Reports. Furnish to Lender, upon request of Lender, reports on each
existing insurance policy showing such information as Lender may reasonably
request, including without limitation the following: (1) the name of the
insurer; (2) the risks insured; (3) the amount of the policy; (4) the properties
insured; (5) the then current property values on the basis of which insurance
has been obtained, and the manner of determining those values; and (6) the
expiration date of the policy. In addition, upon request of Lender (however not
more often than annually), Borrower will have an independent appraiser
satisfactory to Lender determine, as applicable, the actual cash value or
replacement cost of any Collateral. The cost of such appraisal shall be paid by
Borrower.
Other Agreements. Comply with all terms and conditions of all other agreements,
whether now or hereafter existing, between Borrower and any other party and
notify Lender immediately in writing of any default in connection with any other
such agreements.
Loan Proceeds. Use all Loan proceeds solely for Borrower's business operations,
unless specifically consented to the contrary by Lender in writing.
Taxes, Charges and Liens. Pay and discharge when due all of its indebtedness and
obligations, including without limitation all assessments, taxes, governmental
charges, levies and liens, of every kind and nature, imposed upon Borrower or
its properties, income, or profits, prior to the date on which penalties would
attach, and all lawful claims that, if unpaid, might become a lien or charge
upon any of Borrower's properties, Income, or profits.
Performance. Perform and comply, in a timely manner, with all terms, conditions,
and provisions set forth in this Agreement, in the Related Documents, and in all
other instruments and agreements between Borrower and Lender. Borrower shall
notify Lender immediately in writing of any default in connection with any
agreement.
Operations. Maintain executive and management personnel with substantially the
same qualifications and experience as the present executive and management
personnel; provide written notice to Lender of any change in executive and
management personnel; conduct its business affairs in a reasonable and prudent
manner.
Environmental Studies. Promptly conduct and complete, at Borrower's expense, all
such investigations, studies, samplings and testings as may be requested by
Lender or any governmental authority relative to any substance, or any waste or
by-product of any substance defined as toxic or
BUSINESS LOAN AGREEMENT (Continued)
Page 3
a hazardous substance under applicable federal, state, or locallaw, rule,
regulation, order or directive, at or affecting any property or any facility
owned, leased or used by Borrower.
Compliance with Governmental Requirements. Comply with all laws, ordinances, and
regulations, now or hereafter in effect, of all governmental authorities
applicable to the conduct of Borrower's properties, businesses and operations,
and to the use or occupancy of the Collateral, including without limitation, the
Americans With Disabilities Act. Borrower may contest in good faith any such
law, ordinance, or regulation and withhold compliance during any proceeding,
including appropriate appeals, so long as Borrower has notified Lender in
writing prior to doing so and so long as, in Lender's sole opinion, Lender's
interests in the Collateral are not jeopardized. Lender may require Borrower to
post adequate security or a surety bond, reasonably satisfactory to Lender, to
protect Lender's interest.
Inspection. Permit employees or agents of Lender at any reasonable time to
inspect any and all Collateral for the Loan or Loans and Borrower's other
properties and to examine or audit Borrower's books, accounts, and records and
to make copies and memoranda of Borrower's books, accounts, and records. If
Borrower now or at any time hereafter maintains any records (including without
limitation computer generated records and computer software programs for the
generation of such records) in the possession of a third party, Borrower, upon
request of Lender, shall notify such party to permit Lender free access to such
records at all reasonable times and to provide Lender with copies of any records
it may request, all at Borrower's expense.
Compliance Certificates. Unless waived in writing by Lender, provide Lender at
least annually, with a certificate executed by Borrower's chief financial
officer, or other officer or person acceptable to Lender, certifying that the
representations and warranties set forth in this Agreement are true and correct
as of the date of the certificate and further certifying that, as of the date of
the certificate, no Event of Default exists under this Agreement.
Environmental Compliance and Reports. Borrower shall comply in all respects with
any and all Environmental Laws; not cause or permit to exist, as a result of an
intentional or unintentional action or omission on Borrower's part or on the
part of any third party, on property owned and/or occupied by Borrower, any
environmental activity where damage may result to the environment, unless such
environmental activity is pursuant to and in compliance with the conditions of a
permit issued by the appropriate federal, state or local governmental
authorities; shall furnish to Lender promptly and in any event within thirty
(30) days after receipt thereof a copy of any notice, summons, lien, citation,
directive, letter or other communication from any governmental agency or
instrumentality concerning any intentional or unintentional action or omission
on Borrower's pan in connection with any environmental activity whether or not
there is damage to the environment and/or other natural resources.
Additional Assurances. Make, execute and deliver to Lender such promissory
notes, mortgages, deeds of trust, security agreements, assignments, financing
statements, instruments, documents and other agreements as Lender or its
attorneys may reasonably request to evidence and secure the Loans and to perfect
all Security Interests.
RECOVERY OF ADDITIONAL COSTS. If the imposition of or any change in any law,
rule, regulation or guideline, or the interpretation or application of any
thereof by any court or administrative or governmental authority (including any
request or policy not having the force of law) shall impose, modify or make
applicable any taxes (except federal, state or local income or franchise taxes
imposed on Lender), reserve requirements, capital adequacy requirements or other
obligations which would (A) increase the cost to Lender for extending or
maintaining the credit facilities to which this Agreement relates, (B) reduce
the amounts payable to Lender under this Agreement or the Related Documents, or
(C) reduce the rate of return on Lender's capital as a consequence of Lender's
obligations with respect to the credit facilities to which this Agreement
relates, then Borrower agrees to pay Lender such additional amounts as will
compensate Lender therefor, within five (5) days after Lender's written demand
for such payment, which demand shall be accompanied by an explanation of such
imposition or charge and a calculation in reasonable detail of the additional
amounts payable by Borrower, which explanation and calculations shall be
conclusive in the absence of manifest error.
LENDER'S EXPENDITURES. If any action or proceeding is commenced that would
materially affect Lender's interest in the Collateral or if Borrower fails to
comply with any provision of this Agreement or any Related Documents, including
but not limited to Borrower's failure to discharge or pay when due any amounts
Borrower is required to discharge or pay under this Agreement or any Related
Documents, Lender on Borrower's behalf may (but shall not be obligated to) take
any action that Lender deems appropriate, including but not limited to
discharging or paying all taxes, liens, security interests, encumbrances and
other claims, at any time levied or placed on any Collateral and paying all
costs for insuring, maintaining and preserving any Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear
interest at the rate charged under the Note from the date incurred or paid by
Lender to the date of repayment by Borrower. All such expenses will become a
part of the Indebtedness and, at Lender's option, will (A) be payable on demand;
(B) be added to the balance of the Note and be apportioned among and be payable
with any installment payments to become due during either (1) the term of any
applicable insurance policy; or (2) the remaining term of the Note; or (C) be
treated as a balloon payment which will be due and payable at the Note's
maturity.
NEGATIVE COVENANTS. Borrower covenants and agrees with Lender that while this
Agreement is in effect, Borrower shall not, without the prior written consent of
Lender:
Indebtedness and Liens. (1) Except for trade debt incurred in the normal course
of business and indebtedness to Lender contemplated by this Agreement, create,
incur or assume indebtedness for borrowed money, including capital leases, (2)
sell, transfer, mortgage, assign, pledge, lease, grant a security interest in,
or encumber any of Borrower's assets (except as allowed as Permitted Liens), or
(3) sell with recourse any of Borrower's accounts, except to Lender.
Continuity of Operations. (1) Engage in any business activities substantially
different than those in which Borrower is presently engaged, (2) cease
operations, liquidate, merge, transfer, acquire or consolidate with any other
entity, change its name, dissolve or transfer or sell Collateral out of the
ordinary course of business, or (3) pay any dividends on Borrower's stock (other
than dividends payable in its stock), provided, however that notwithstanding the
foregoing, but only so long as no Event of Default has occurred and is
continuing or would result from the payment of dividends, if Borrower is a
"Subchapter S Corporation" (as defined in the Internal Revenue Code of 1986, as
amended), Borrower may pay cash dividends on its stock to its shareholders from
time to time in amounts necessary to enable the shareholders to pay income taxes
and make estimated income tax payments to satisfy their liabilities under
federal and state law which arise solely from their status as Shareholders of a
Subchapter S Corporation because of their ownership of shares of Borrower's
stock, or purchase or retire any of Borrower's outstanding shares or alter or
amend Borrower's capital structure.
Loans, Acquisitions and Guaranties. (1) Loan, invest in or advance money or
assets, (2) purchase, create or acquire any interest in any other enterprise or
entity, or (3) incur any obligation as surety or guarantor other than in the
ordinary course of business.
CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to
Borrower, whether under this Agreement or under any other agreement, Lender
shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(A) Borrower or any Guarantor is in default under the terms of this Agreement or
any of the Related Documents or any other agreement that B0rrower or any
Guarantor has with Lender; (B) Borrower or any Guarantor dies, becomes
incompetent or becomes insolvent, files a petition in bankruptcy or similar
proceedings, or is adjudged a bankrupt; (C) there occurs a material adverse
change in Borrower's financial condition, in the financial condition of any
Guarantor, or in the value of any Collateral securing any Loan; or (D) any
Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such
Guarantor's guaranty of the Loan or any other loan with Lender.
DEFAULT. Each of the following shall constitute an Event of Default under this
Agreement:
BUSINESS LOAN AGREEMENT (Continued)
Page 4
Payment Default. Borrower fails to make any payment when due under the Loan.
Other Defaults. Borrower fails to comply with or to perform any other term,
obligation, covenant or condition contained in this Agreement or in any of the
Related Documents or to comply with or to perform any term, obligation, covenant
or condition contained in any other agreement between Lender and Borrower.
Default In Favor of Third Parties. Borrower or any Grantor defaults under any
loan, extension of credit, security agreement, purchase or sales agreement, or
any other agreement, in favor of any other creditor or person that may
materially affect any of Borrower's or any Grantor's property or Borrower's or
any Grantor's ability to repay the Loans or perform their respective obligations
under this Agreement or any of the Related Documents.
False Statements. Any warranty, representation or statement made or furnished to
Lender by Borrower or on Borrower's behalf under this Agreement or the Related
Documents is false or misleading in any material respect, either now or at the
time made or furnished or becomes false or misleading at any time thereafter.
Insolvency. The dissolution or termination of Borrower's existence as a going
business, the insolvency of Borrower, the appointment of a receiver for any part
of Borrower's property, any assignment for the benefit of creditors, any type of
creditor workout, or the commencement of any proceeding under any bankruplcy or
insolvency laws by or against Borrower.
Defective Collateralization. This Agreement or any of the Related Documents
ceases to be in full force and effect (including failure of any collateral
document to create a valid and perfected security interest or lien) at any time
and for any reason.
Creditor or Forfeiture Proceedtngs. Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Borrower or by any governmental agency against
any collateral securing the Loan. This includes a garnishment of any of
Borrower's accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower as
to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Borrower gives Lender written notice of
the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the
dispute.
Events Affecting Guarantor. Any of the preceding events occurs with respect to
any Guarantor of any of the Indebtedness or any Guarantor dies or becomes
incompetent, or revokes or disputes the validity of, or liability under, any
Guaranty of the Indebtedness.
Change In Ownership. Any change in ownership of twenty-five percent (25%) or
more of the common stock of Borrower. Adverse Change. A material adverse change
occurs in Borrower's financial condition, or Lender believes the prospect of
payment or performance of the Loan is impaired.
EFFECT OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where
otherwise provided in this Agreement or the Related Documents, all commitments
and obligations of Lender under this Agreement or the Related Documents or any
other agreement immediately will terminate (including any obligation to make
further Loan Advances or disbursements), and, at Lender's option, all
Indebtedness immediately will become due and payable, all without notice of any
kind to Borrower, except that in the case of an Event of Default of the type
described in the "Insolvency" subsection above, such acceleration shall be
automatic and not optional. In addition, Lender shall have all the rights and
remedies provided in the Related Documents or available at law, in equity, or
otherwise. Except as may be prohibited by applicable law, all of Lender's rights
and remedies shall be cumulative and may be exercised singularly or
concurrently. Election by Lender to pursue any remedy shall not exclude pursuit
of any other remedy, and an election to make expenditures or to take action to
perform an obligation of Borrower or of any Grantor shall not affect Lender's
right to declare a default and to exercise its rights and remedies.
AMENDMENT TO AFFIRMATIVE COVENANTS. In addition to the Affirmative Covenants
above, Borrower further covenants and agrees with Lender that, while this
Agreement is in effect, Borrower will:
1. Notice of Litigation. Promptly give notice to Lender in writing of any
proceedings (whether or not purportedly on behalf of Borrower) against Borrower
involving an amount in excess of $25,000.00 not fully covered by insurance.
2. Financial Compliance Statement. Certify to Lender on the Certificate of
Non-Default form that Borrower is in compliance with this covenant. This
certification is made together with the financial information requested.
3. Additional Information. Furnish Lender with (1) quarterly reports (Form
10-QSB) within 90 days of quarter end, (2) annual report within 120 days of
fiscal year end, (3) a copy of Borrower's tax returns within 30 days after
filing, and (4) if the Collateral is rented to a third party, detailed income
and expense statements and/or rent rolls.
MISCELLANEOUS PROVISIONS. The following miscellaneous provisions are a part of
this Agreement: Amendments. This Agreement, together with any Related Documents,
constitutes the entire understanding and agreement of the parties as to the
matters set forth in this Agreement. No alteration of or amendment to this
Agreement shall be effective unless given in writing and signed by the party or
parties sought to be charged or bound by the alteration or amendment.
Attorneys' Fees; Expenses. Borrower agrees to pay upon demand all of Lender's
costs and expenses, including Lender's attorneys' fees and Lender's legal
expenses, incurred in connection with the enforcement of this Agreement. Lender
may hire or pay someone else to help enforce this Agreement, and Borrower shall
pay the costs and expenses of such enforcement. Costs and expenses include
Lender's attorneys' fees and legal expenses whether or not there is a lawsuit,
including attorneys' fees and legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction),
appeals, and any anticipated post-judgment collection services. Borrower also
shall pay all court costs and such additional fees as may be directed by the
court.
Caption Headings. Caption headings in this Agreement are for convenience
purposes only and are not to be used to interpret or define the provisions of
this Agreement.
Consent to Loan Participation. Borrower agrees and consents to Lender's sale or
transfer, whether now or later, of one or more participation interests in the
Loan to one or more purchasers, whether related or unrelated to Lender. Lender
may provide, without any limitation whatsoever, to anyone or more purchasers, or
potential purchasers, any information or knowledge Lender may have about
Borrower or about any other matter relating to the Loan, and Borrower hereby
waives any rights to privacy Borrower may have with respect to such matters.
Borrower additionally waives any and all notices of sale of participation
interests, as well as all notices of any repurchase of such participation
interests. Borrower also agrees that the purchasers of any such participation
interests will be considered as the absolute owners of such interests in the
Loan and will have all the rights granted under the participation agreement or
agreements governing the sale of such participation interests. Borrower further
waives all rights of offset or counterclaim that it may have now or later
against Lender or against any purchaser of such a participation interest and
unconditionally agrees that either Lender or such purchaser may enforce
Borrower's obligation under the Loan irrespective of the failure or insolvency
of any holder of any interest in the Loan. Borrower further agrees that the
purchaser of any such participation interests may enforce its interests
irrespective of any personal claims or defenses that Borrower may have against
Lender.
BUSINESS LOAN AGREEMENT (Continued)
Page 5
Governing Law. This Agreement will be governed by, construed and enforced in
accordance with federal law and the laws of the State of California. This
Agreement has been accepted by Lender in the State of California.
Choice of Venue. If there is a lawsuit, Borrower agrees upon Lender's request to
submit to the jurisdiction of the courts of SANTA ▇▇▇▇▇ County, State of
California.
No WaIver by Lender. Lender shall not be deemed to have waived any rights under
this Agreement unless such waiver is given in writing and signed by Lender. No
delay or omission on the part of Lender in exercising any right shall operate as
a waiver of such right or any other right. A waiver by Lender of a provision of
this Agreement shall not prejudice or constitute a waiver of Lender's right
otherwise to demand strict compliance with that provision or any other provision
of this Agreement. No prior waiver by Lender, nor any course of dealing between
Lender and Borrower, or between Lender and any Grantor, shall constitute a
waiver of any of Lender's rights or of any of Borrower's or any Grantor's
obligations as to any future transactions. Whenever the consent of Lender is
required under this Agreement, the granting of such consent by Lender in any
instance shall not constitute continuing consent to subsequent instances where
such consent is required and in all cases such consent may be granted or
withheld in the sole discretion of Lender.
Notices. Any notice required to be given under this Agreement shall be given in
writing, and shall be effective when actually delivered, when actually received
by telefacsimile (unless otherwise required by law), when deposited with a
nationally recognized overnight courier, or, if mailed, when deposited in the
United States mail, as first class, certified or registered mail postage
prepaid, directed to the addresses shown near the beginning of this Agreement.
Any party may change its address for notices under this Agreement by giving
formal written notice to the other parties, specifying that the purpose of the
notice is to change the party's address. For notice purposes, Borrower agrees to
keep Lender informed at all times of Borrower's current address. Unless
otherwise provided or required by law, if there is more than one Borrower, any
notice given by Lender to any Borrower is deemed to be notice given to all
Borrowers.
Severability. If a court of competent jurisdiction finds any provision of
this Agreement to be illegal, invalid, or unenforceable as to any circumstance,
that finding shall not make the offending provision illegal, invalid, or
unenforceable as to any other circumstance. If feasible, the offending provision
shall be considered modified so that it becomes legal, valid and enforceable. If
the offending provision cannot be so modified, it shall be considered deleted
from this Agreement. Unless otherwise required by law, the illegality,
invalidity, or unenforceability of any provision of this Agreement shall not
affect the legality, validity or enforceability of any other provision of this
Agreement.
Subsidiaries and Affiliates of Borrower. To the extent the context of any
provisions of this Agreement makes it appropriate, including without limitation
any representation, warranty or covenant, the word "Borrower" as used in this
Agreement shall include all of Borrower's subsidiaries and affiliates.
Notwithstanding the foregoing however, under no circumstances shall this
Agreement be construed to require Lender to make any Loan or other financial
accommodation to any of Borrower's subsidiaries or affiliates.
Successors and Assigns. All covenants and agreements contained by or on behalf
of Borrower shall bind Borrower's successors and assigns and shall inure to the
benefit of Lender and its successors and assigns. Borrower shall not, however,
have the right to assign Borrower's rights under this Agreement or any interest
therein, without the prior written consent of Lender.
Survival of Representations and Warranties. Borrower understands and agrees that
in making the Loan, Lender is relying on all representations, warranties, and
covenants made by Borrower in this Agreement or in any certificate or other
instrument delivered by Borrower to Lender under this Agreement or the Related
Documents. Borrower further agrees that regardless of any investigation made by
Lender, all such representations, warranties and covenants will survive the
making of the Loan and delivery to Lender of the Related Documents, shall be
continuing in nature, and shall remain in full force and effect until such time
as Borrower's Indebtedness shall be paid in full, or until this Agreement shall
be terminated in the manner provided above, whichever is the last to occur.
Time is of the Essence. Time is of the essence in the performance of this
Agreement.
Waive Jury. All parties to this Agreement hereby waive the right to any jury
trial in any action, proceeding, or counterclaim brought by any party against
any other party.
DEFINITIONS. The following capitalized words and terms shall have the following
meanings when used in this Agreement. Unless specifically stated to the
contrary, all references to dollar amounts shall mean amounts in lawful money of
the United States of America. Words and terms used in the singular shall include
the plural, and the plural shall include the singular, as the context may
require. Words and terms not otherwise defined in this Agreement shall have the
meanings attributed to such terms in the Uniform Commercial Code. Accounting
words and terms not otherwise defined in this Agreement shall have the meanings
assigned to them in accordance with generally accepted accounting principles as
in effect on the date of this Agreement:
Advance. The word "Advance" means a disbursement of Loan funds made, or to be
made, to Borrower or on Borrower's behalf on a line of credit or multiple
advance basis under the terms and conditions of this Agreement.
Agreement. The word "Agreement" means this Business Loan Agreement, as this
Business Loan Agreement may be amended or modified from time to time, together
with all exhibits and schedules attached to this Business Loan Agreement from
time to time.
Borrower. The word "Borrower" means IMPAX LABORATORIES, INC., and all other
persons and entities signing the Note in whatever capacity.
Collateral. The word "Collateral" means all property and assets granted as
collateral security for a Loan, whether real or personal property, whether
granted directly or indirectly, whether granted now or in the future, and
whether granted in the form of a security interest, mortgage, collateral
mortgage, deed of trust, assignment, pledge, crop pledge, chattel mortgage,
collateral chattel mortgage, chattel trust, factor's lien, equipment trust,
conditional sale, trust receipt, lien, charge, lien or title retention contract,
lease or consignment intended as a security device, or any other security or
lien interest whatsoever, whether created by law, contract, or otherwise.
Environmental Laws. The words "Environmental Laws" mean any and all state,
federal and local statutes, regulations and ordinances relating to the
protection of human health or the environment, including without limitation the
Comprehensive Environmental Response, Compensation, and Liability Act of 1980,
as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments
and Reauthorization Act of 1986, Pub. L. No. 99-499 ("▇▇▇▇"), the Hazardous
Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource
Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., Chapters 6.5
through 7.7 of Division 20 of the California Health and Safety Code, Section
25100, et seq., or other applicable state or federal laws, rules, or regulations
adopted pursuant thereto.
Event of Default. The words "Event of Defaulr mean any of the events of default
set forth in this Agreement in the default section of this Agreement.
GAAP. The word "GAAP" means generally accepted accounting principles.
Grantor. The word "Grantor" means each and all of the persons or entities
granting a Security Interest in any Collateral for the Loan, including without
limitation all Borrowers granting such a Security Interest.
Guarantor. The word "Guarantor" means any guarantor, surety, or accommodation
party of any or all of the Loan.
BUSINESS LOAN AGREEMENT (Continued)
Page 6
Guaranty. The word "Guaranty" means the guaranty from Guarantor to Lender,
including without limitation a guaranty of all or part of the Note.
Hazardous Substances. The words "Hazardous Substances" mean materials that,
because of their quantity, concentration or physical, chemical or infectious
characteristics, may cause or pose a present or potential hazard to human health
or the environment when improperly used, treated, stored, disposed of,
generated, manufactured, transported or otherwise handled. The words "Hazardous
Substances" are used in their very broadest sense and include without limitation
any and all hazardous or toxic substances, materials or waste as defined by or
listed under the Environmental Laws. The term "Hazardous Substances" also
includes, without limitation, petroleum and petroleum by-products or any
fraction thereof and asbestos.
Indebtedness. The word "Indebtedness" means the indebtedness evidenced by the
Note, Business Loan Agreement, or Related Documents, including all principal and
interest together with all other indebtedness and costs and expenses for which
Borrower is responsible under the Note, Business Loan Agreement, or under any of
the Related Documents.
Lender. The word "Lender" means CATHAY BANK, a California Banking Corp., its
successors and assigns.
Loan. The word "Loan" means any and all loans and financial accommodations from
Lender to Borrower whether now or hereafter existing, and however evidenced,
including without limitation those loans and financial accommodations described
herein or described on any exhibit or schedule attached to this Agreement from
time to time.
Note. The word "Note" means the Note executed by IMPAX LABORATORIES, INC. in the
principal amount of $3,300,000.00 dated November 12, 2001, together with all
renewals of, extensions of, modifications of, refinancings of, consolidations
of, and substitutions for the note or credit agreement.
Permitted Liens. The words "Permitted Liens" mean (1) liens and security
interests securing Indebtedness owed by Borrower to Lender; (2) liens for taxes,
assessments, or similar charges either not yet due or being contested in good
faith; (3) liens of materialmen, mechanics, warehousemen, or carriers, or other
like liens arising in the ordinary course of business and securing obligations
which are not yet delinquent; (4) purchase money liens or purchase money
security interests upon or in any property acquired or held by Borrower in the
ordinary course of business to secure indebtedness outstanding on the date of
this Agreement or permitted to be incurred under the paragraph of this Agreement
titled "Indebtedness and Liens"; (5) liens and security interests which, as of
the date of this Agreement, have been disclosed to and approved by the Lender in
writing; and (6) those liens and security interests which in the aggregate
constitute an immaterial and insignificant monetary amount with respect to the
net value of Borrower's assets.
Related Documents. The words "Related Documents" mean all promissory notes,
credit agreements, loan agreements, environmental agreements, guaranties,
security agreements, mortgages, deeds of trust, security deeds, collateral
mortgages, and all other instruments, agreements and documents, whether now or
hereafter existing, executed in connection with the Loan.
Security Agreement. The words "Security Agreement" mean and include without
limitation any agreements, promises, covenants, arrangements, understandings or
other agreements, whether created by law, contract, or otherwise, evidencing,
governing, representing, or creating a Security Interest.
Security Interest. The words "Security Interest". mean, without limitation, any
and all types of collateral security, present and future, whether in the form of
a lien, charge, encumbrance, mortgage, deed of trust, security deed, assignment,
pledge, crop pledge, chattel mortgage, collateral chattel mortgage, chattel
trust, factor's lien, equipment trust, conditional sale, trust receipt, lien or
title retention contract, lease or consignment intended as a security device, or
any other security or lien interest whatsoever whether created by law ,contract,
or otherwise.
BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN
AGREEMENT AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN AGREEMENT IS
DATED NOVEMBER 12, 2001.
BORROWER:
IMPAX LABORATORIES, INC.
By, ▇▇▇▇▇▇▇ ▇▇▇▇▇ CHAIRMAN OF IMPAX
LABORATORIES, INc, CHAIRMAN OF IMPAX
LENDER:
CATHAY BANK, A CALIFORNIA BANKING CORP.
By:l
Authorized Signer
ADDENDUM TO LOAN DOCUMENTS
This Addendum is added to and made a part of the Loan Documents between Impax
Laboratories, Inc. ("Borrower") and Cathay Bank ("Lender") dated November 12,
2001. Borrower has requested that Lender modify the Loan Documents to reflect
that the Loan is a single transaction and that there are no other Indebtedness
of Borrower to Lender. Lender is willing to execute this Addendum based upon
this single transaction; however, this consent by Lender of this Addendum does
not apply to any future loan transactions. Notwithstanding anything to the
contrary in the Loan Documents, the following provisions shall amend and/or
replace the applicable referenced provisions of the Loan Documents, and to the
extent of any inconsistency, the terms of this Addendum shall govern and
control.
A.
Business Loan Agreement.
1. The first paragraph is replaced in its entirety as follows: THIS
BUSINESS LOAN AGREEMENT between Impax Laboratories, Inc. ("Borrower") and Cathay
Bank, a California Banking Corporation ("Lender") is made and executed on the
following terms and conditions. Borrower has applied to Lender for a mortgage
loan of up to $3,300,000.00 ("Loan"). Borrower understands and agrees that: (A)
in granting, renewing, or extending the Loan, Lender is relying upon Borrower's
representations, warranties, and agreements, as set forth in this Agreement; (B)
the granting, renewing, or extending of the Loan by Lender at all times shall be
subject to Lender's sole judgement and discretion; and (C) the Loan shall be and
shall remain subject to the following terms and conditions of this Agreement.
2. The second paragraph is replaced in its entirety as follows: This
Agreement shall be effective as of November 12, 2001, and shall continue in full
force and effect until such time as the Loan has been paid in full, including
principal, interest, costs, expenses, attorneys' fees, and other fees and
charges, or until such time as the parties may agree in writing to terminate
this Agreement.
3. The first sentence of CONDITIONS PRECEDENT TO EACH ADVANCE is modified
and the terms "and each subsequent Advance" is deleted from this sentence.
4. Representation and Warranties subsection of CONDITIONS PRECEDENT TO EACH
ADVANCE is hereby modified by adding the following to the end of the sentence:
in all material respect.
5. Properties subsection of REPRESENTATIONS AND WARRANTIES is hereby
modified by (i) replacing the terms "all of Borrower's properties" with "the
Collateral" and (ii) replacing the last sentence by the following: The
Collateral will be titled in Borrower's legal name after the Loan is closed.
6. Hazardous Substances subsection of REPRESENTATIONS AND WARRANTIES is
hereby modified by replacing the sentence " Borrower authorizes Lender and its
agents to enter. ..with this section of the Agreement" by the following:
Borrower authorizes Lender and its agents upon reasonable notice to Borrower and
at reasonable times to enter upon the Collateral to make such inspections and
tests as Lender may deem appropriate to determine compliance of the Collateral
with this section of the Agreement.
7. Litigation and Claims subsection of REPRESENTATIONS AND WARRANTIES is
hereby modified by adding the following to the beginning of the phrase: To
Borrower's knowledge.
8. Binding Effect subsection of REPRESENTATIONS AND WARRANTIES is hereby
replaced in its entirety as follows: This Agreement, the Note, all Security
Agreements (if any), all Related Documents are binding upon the Borrower, as
well as upon its successors, representatives and assigns, and are legally
enforceable in accordance with their respective terms.
9. Financial Records subsection of AFFIRMATIVE COVENANTS is hereby replaced
in its entirety as follows: Maintain its books and records in accordance with
generally accepted accounting principles, applied on a consistent basis, and
permit Lender upon reasonable notice to Borrower to examine and audit Borrower's
books and records at all reasonable times.
10. Additional Information subsection of AFFIRMATIVE COVENANTS is hereby
modified by adding the word "reasonably" between the words "may request".
11. Insurance Reports subsection of AFFIRMATIVE COVENANTS is hereby
modified by (i) replacing the beginning phrase with the following "Furnish to
Lender, upon request of Lender, reports on each existing insurance policy
insuring the Collateral and showing such information as Lender may reasonably
request, including without limitation the followingH; (ii) by deleting item (4)
in its entirety; and (iii) replacing the second sentence by the following: In
addition, upon request of Lender following (1) an event materially and adversely
affecting the value of the Collateral, (2) an Event of Default, or (3) the
imposition of or change in any law, rule, regulation or guideline or the
interpretation or application of any thereof by any court or administrative or
governmental authority (including any request or policy not having the force of
law) shall impose, modify or make applicable and impose on Lender a need for an
appraisal, Borrower will have an independent appraiser satisfactory to Lender
determine, as applicable, the actual cash value or replace cost of any
Collateral.
Page 1 of 4
Page 2 of 4
Addendum to Loan Documents
Impax Laboratories, Inc. dated November 12, 2001
12. Other Agreements subsection of AFFIRMATIVE COVENANTS is hereby replaced
in its entirety as follows: Comply in all material respects with all terms and
conditions of all other agreements, whether now or hereafter existing, between
Borrower and any other party and notify Lender immediately in writing of any
default in connection with any other such agreement.
13. Taxes, Charges and Liens subsection of AFFIRMATIVE COVENANTS is hereby
modified by adding the following to the ending of the phrase: except those
presently being or to be contested by Borrower in good faith in the ordinary
course of business and for which adequate reserves have been provided.
14. Performance subsection of AFFIRMATIVE COVENANTS is hereby modified by
adding the word "such" between the words "any agreement".
15. Operations subsection of AFFIRMATIVE COVENANTS is hereby modified by
(i) deleting "Maintain executive and management personnel. ..present executive
and management personnel" so that section begins with "Provide".
16. Environmental Studies subsection of AFFIRMATIVE COVENANTS is hereby
replaced in its entirety as follows: Promptly conduct and completed, at
Borrower's expense, all such investigations, studies, samplings and testings as
may be reasonably requested by Lender or any governmental authority relative to
any substance, or any waste or by-product of any substance defined as toxic or a
hazardous substance under applicable federal, state, or local law, rule
regulation, order or directive, at or affecting the Collateral.
17. Inspection subsection of AFFIRMATIVE COVENANTS is hereby modified by
adding ", upon reasonable notice to Borrower," between the words "Lender at" to
read" ...agents of Lender, upon reasonable notice to Borrower, at any reasonable
time. ..".
18. Compliance Certificate subsection of AFFIRMATIVE COVENANTS is hereby
deleted in its entirety.
19. Additional Assurances subsection of AFFIRMATIVE COVENANTS is hereby
modified by adding the following to the end of the sentence: on the Collateral.
20. Add as an additional subsection of AFFIRMATIVE COVENANTS the following:
2001 Construction. Furnish to Lender a full, executed copy of the
construction contract and budget (cost breakdown) between Borrower and Webcor
Construction, Inc. dated June 15, 2001 in the amount of $10,694,435 covering
improvements as therein described. Borrower will furnish to Lender a recorded
copy of the Notice of Completion and Notice of Occupancy within 30 days of
recording.
21. Indebtedness and Liens subsection of NEGATIVE COVENANTS is hereby
deleted in its entirety.
22. Continuity of Operations subsection of NEGATIVE COVENANTS is hereby
replaced in its entirety as follows: (1) Engage in any business activities
substantially different than those in which Borrower is presently engaged or (2)
cease operations, liquidate, dissolve or transfer or sell the Collateral out of
the ordinary course of business.
23. Loans, Acquisitions and Guaranties subsection of NEGATIVE COVENANTS is
hereby deleted in its entirety.
24. Payment Default subsection of DEFAULT is hereby modified by adding the
following to the end of the sentence: and such failure continues for ten (10)
days.
25. Other Defaults subsection of DEFAULT is hereby modified by adding the
following to the end of the sentence: and such failure continues the earlier of
(i) thirty (30) days after written Lender's notice to Borrower of such Default
or (ii) thirty days after Borrower's knowledge of such Default.
26. Default in Favor of Third parties subsection of DEFAULT is hereby
modified by adding the following to the end of the sentence: ,and such default
continues past any applicable grace or cure period.
27. False Statements subsection of DEFAULT is hereby modified by deleting
"or becomes false or misleading at any time thereafter.
28. Defective Collateralization subsection of DEFAULT is hereby modified by
adding the following to the end of the sentence: and Borrower fails to take such
action as is need to correct such defect within thirty (30) days.
Page 3 of 4
Addendum to Loan Documents
Impax Laboratories, Inc. dated November 12, 2001
29. Creditor or Forfeiture Proceedings subsection of DEFAULT is hereby
modified in its entirety as follows: Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, selfhelp, repossession or any other
method, by any creditor of Borrower, any Creditor of Grantor against any
collateral or by any governmental agency.
30. Events Affecting Guarantor subsection of DEFAULT is hereby deleted in
its entirety.
31. Change in Ownership subsection of DEFAULT is hereby deleted in its
entirety.
32. Adverse Change subsection of DEFAULT is hereby deleted in its entirety.
33. Notice of Litigation subsection of AMENDMENT TO AFFIRMATIVE COVENANTS
is hereby deleted in its entirety.
34. Attorney's Fees; Expenses subsection of MISCELLANEOUS PROVISIONS is
hereby modified by (i) adding the word "reasonable" prior to the words
"attorneys' fees" or "legal expenses" wherever "attorneys' fees" or "legal
expenses" is used in this subsection; and (ii) replacing the second sentence in
its entirety as follows: Lender may pay reasonable fees and costs to someone
else to help collect the Loan and to enforce this Agreement, and Borrower will
pay that amount.
35. Consent to Loan Participation subsection of MISCELLANEOUS PROVISIONS is
hereby modified by replacing the second sentence by the following: Lender may
provide, without any limitation whatsoever, to anyone or more purchasers, or
potential purchasers, any information or knowledge Lender may have about
Borrower or about any other matter relating to the Loan, provided that such
purchaser agrees in writing to hold all such information confidential.
36. Definition of Borrower is replaced in its entirety as follows: The word
"Borrower" means IMPAX LABORATORIES, INC. The word "Borrower" also includes, as
applicable, all subsidiaries and affiliates of Borrower as provided above in the
paragraph entitle "Subsidiaries and Affiliates of Borrower."
37. Definition of Collateral is replaced in its entirety as follows: the
Real Property as defined in the Deed of Trust.
The word "Collateral" means
38. Add the following Definition: Deed of Trust. The words "Deed of Trust"
mean that certain Deed of Trust dated November 12, 2001 executed by and among
Borrower as Trustor, Chicago ▇▇▇▇▇▇ Company as Trustee and Lender as Beneficiary
on real property located in Alameda County, State of California.
39. Definition of Guarantor is deleted in its entirety.
There is no guarantor for the Loan.
40. Definition of Loan is replaced in its entirety as follows: set forth in
A.l. above.
The word "Loan" has the meaning as
41. Definition of Permitted Liens is deleted in its entirety.
42. Definition of Security Agreement is replaced in its entirety as
follows: The words "Security Agreement" mean and include without limitation the
Deed of Trust and any other agreements, promises, covenants, arrangements,
understandings or other agreements, whether created by law, contract, or
otherwise, evidencing, governing, representing, or creating a Security Interest
in the Collateral.
B.
Promissory Note.
1. The DEFAULT section is replaced in its entirety as follows: Each event
of default under the Business Loan Agreement shall constitute an event of
default (Event of Default") under this Note.
2. In the LENDER'S RIGHTS section: Attorney's Fees; Expenses. Add the word
"reasonable" prior to the words "attorneys' fees" or "legal expenses" wherever
"attorneys' fees" or "legal expenses" as used in this paragraph.
3. In the COLLATERAL paragraph delete the fourth sentence "If any Borrower
is a corporation. .. as the case may be, of such Borrower" in its entirety.
1. Removal of Improvements subsection of POSSESSION AND MAINTENANCE OF
PROPERTY is hereby modified and the first sentence is replaced in its entirety
as follows: Except aS previously disclosed to Lender regarding the improvoments
on the Col1ateral as evidenced by the Construction Contract between Borrower and
Webcor Construction, Inc. dated JUne 15, 2001 for improvements as therein
described in the amount of $lO,694,435, Trustor shall not demolish Or remove any
improvements from the Real property without Lender's prior written consent.
Lender requires notice of any removal of improvements in the aggregate amOUnt ot
more than $250,000.00 during any l2-month period. '
, page 4 of 4
Addendum to Loan Documents
Impax Laboratories, Inc. dated November l2, 2001
Deed of Trust.
c.
12/09/2001 23:05 5104713200 IMPAx PAGE 02
",'.,
' ", ,I
' ' ,
2. Lender' a Right to Enter subsection of POSSESSION AND MA1NTENANCE OF
PROPERTY i9 hereby modified by adding the word ", upon reasonable notice to
Truat" between the words "representative may".
3. In the DUE ON SALE -CONSENT BY LENDER paragraph delete the third
sentence "If any Trustor is a corpOration. ..as the case may he, of Trustor" in
its entirety.
4. Notice of construction subsection of TAXES AND LIENS 1s hereby modified
in its entirety as follows: Except as previously disclosed to Lender regarding
the improvements on the collateral as evidenced by the Construction Contract
between Borrower and Webcor Construction, Inc. dated June 15, 2001 for
improvements as therein described in the amount of $10,694,435, Trustor shall
notify Lender at least fifteen (15) days before any work is Commenced, any
services are furnished, or any materials are supplied to the property, if any
mechanic's lien, materialmen's lien, or other lien could be asserted on account
of the work, services, or materials. Lender requires notice of any work, service
and/or materials in the aggregate amount of more than $250,000.00 during any
12-month period. Trustor will upon request of Lender furnish to Lender advance
assurances satisfactory to ▇▇▇▇▇▇ that Trustor can and will pay the cOst of such
improvements.
5. The DEFAULT section is replaced in ita entirety as follows: Each event
of default under the Business LOan Agreement shall constitute an OVent of
default (Event of Default") under this Deed of Trust.
Additionally, each of the following, at Lender's option, shall constitute
an Event of Default under this Deed of Trust:
Compliance Default. Failure to comply with any ather term, obligation,
covenant or condition contained in the Deed of Trust, the Note or in any of the
Related Documents, and such failure continues the earlier of (i) thirty (30)
days after written Lender's notice to Borrower of such Default or (ii) thirty
(30) days after Borrower's knowledge of such Default.
Default On Other Payments. Failure of Trustor within the time required by
this Deed of Trust to make any payment tor taxes or insurance, or any other
payment necessary to prevent filing of or to effect discharge of any lien.
6. Annual Reports subsection of MISCELLANEOUS PROVISIONS is hereby deleted
in its entirety.
7, Definition of Borrower has the meaning as set forth in the Business Loan
Agreement as per the change described above as item A.36.
8. Definition of Guarantor is deleted in its entirety.
EXCEPT AS MODIFIED BY THIS ADDENDUM, ALL TERMS AND CONDITIONS OF