Exhibit 10.3

 

THIRD AMENDMENT

TO

CREDIT AGREEMENT (24-MONTH)

 

THIS THIRD AMENDMENT TO CREDIT AGREEMENT (24-MONTH) (this “Amendment”) is dated
as of July 19, 2004, by and between EPICOR SOFTWARE CORPORATION, a Delaware
corporation, as Borrower, and KEYBANK NATIONAL ASSOCIATION, as Lender.

 

RECITALS

 

A. Lender and Borrower are parties to a Credit Agreement (24-Month) dated as of
January 28, 2004, as amended by that certain First Amendment to Credit Agreement
(24-Month) and Note dated May 26, 2004, and that certain Second Amendment to
Credit Agreement (24-Month) dated as of June 29, 2004 (collectively, the “Credit
Agreement”). This Amendment supersedes and replaces the Second Amendment
referred to above.

 

B. Borrower has requested, and Lender has agreed subject to satisfaction of the
conditions set forth herein, to modify the Credit Agreement to amend the Minimum
Fixed Charge Coverage Ratio for each fiscal quarter commencing with the quarter
ending June 30, 2004 through the fiscal quarter ending March 31, 2005.

 

C. Each capitalized term used but not otherwise defined herein shall have the
meaning ascribed thereto in the Credit Agreement.

 

NOW, THEREFORE, the parties hereto agree as follows:

 

ARTICLE 1

 

AMENDMENT TO CREDIT AGREEMENT

 

This Amendment shall be deemed to be an amendment to the Credit Agreement and
shall not be construed in any way as a replacement or substitution therefor. All
of the terms and conditions of, and terms defined in, this Amendment are hereby
incorporated by reference into the Credit Agreement as if such terms and
provisions were set forth in full therein.

 

1.1 Subparagraph (d) of Section 7.12 (Financial Covenants) of the Credit
Agreement is amended to allow the Minimum Fixed Charge Coverage Ratio, as
determined on the last day of each fiscal quarter commencing with the quarter
ending June 30, 2004 through the fiscal quarter ending March 31, 2005, to be not
less than 3.00 to 1.00. Thereafter, the Fixed Charge Coverage Ratio, determined
as of the last day of any fiscal quarter, shall be not less than 3.50 to 1.00.

 

1.2 Section 7.12 (d) of Schedule 2 to the Compliance Certificate attached as
Exhibit “B” to the Credit Agreement is amended to allow the Total Fixed Charge
Coverage Ratio at the end of each fiscal quarter commencing with the quarter
ending June 30, 2004 through the fiscal quarter ending March 31, 2005, to be not
less than 3.00 to 1.00. Thereafter, the Total Fixed Coverage Ratio shall be not
less than 3.50 to 1.00.

 

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ARTICLE 2

 

CONDITIONS TO EFFECTIVENESS OF AMENDMENT

 

2.1 The effectiveness of this Amendment is subject to the fulfillment to the
satisfaction of Lender, in its sole discretion, of the following conditions
precedent:

 

(a) Borrower shall have executed and delivered to Lender this Amendment;

 

(b) Lender shall have received appropriate authorization documents, including
borrowing resolutions and certificates of incumbency, confirming to its
satisfaction that all necessary corporate and organizational actions have been
taken to authorize Borrower to enter into this Amendment; and

 

(c) Lender shall have received such other documents, instruments or agreements
as Lender may require to effectuate the intents and purposes of this Amendment.

 

ARTICLE 3

 

REPRESENTATIONS AND WARRANTIES

 

Borrower hereby represents and warrants to Lender that:

 

3.1 After giving effect to the amendment of the Credit Agreement pursuant to
this Amendment and the consummation of the transactions contemplated hereby (i)
each of the representations and warranties set forth in Section 5 of the Credit
Agreement is true and correct in all respects as if made on the date hereof
(with references to the Credit Agreement being deemed to include this
Amendment), and (ii) there exists no Event of Default under the Credit Agreement
after giving effect to this Amendment.

 

3.2 Borrower has full corporate power and authority to execute and deliver this
Amendment, and to perform the obligations of its part to be performed under the
Credit Agreement as amended hereby. Borrower has taken all necessary action,
corporate or otherwise, to authorize the execution and delivery of this
Amendment. No consent or approval of any person, no consent or approval of any
landlord or mortgagee, no waiver of any lien or similar right and no consent,
license, approval or authorization of any governmental authority or agency is or
will be required in connection with the execution or delivery by Borrower of
this Amendment or the performance by Borrower of the Credit Agreement as amended
hereby.

 

3.3 This Amendment and the Credit Agreement as amended hereby are, or upon
delivery thereof to Lender will be, the legal, valid and binding obligations of
Borrower, enforceable against Borrower in accordance with their respective
terms, except as such enforceability may be limited by bankruptcy, insolvency,
reorganization or similar laws affecting creditors’ rights generally.

 

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ARTICLE 4

 

MISCELLANEOUS

 

4.1 The Credit Agreement, the other Loan Documents and all agreements,
instruments and documents executed and delivered in connection with any of the
foregoing shall each be deemed to be amended hereby to the extent necessary, if
any, to give effect to the provisions of this Amendment. Except as so amended
hereby, the Credit Agreement and the other Loan Documents shall remain in full
force and effect in accordance with their respective terms.

 

4.2 Borrower agrees to pay Lender on demand for all reasonable expenses,
including reasonable fees and costs of attorneys, incurred by Lender in
connection with the preparation, negotiation and execution of this Amendment and
any document required to be furnished hereunder.

 

4.3 This Amendment may be executed in as many counterparts as necessary or
convenient, and by the different parties on separate counterparts each of which,
when so executed, shall be deemed an original but all such counterparts shall
constitute but one and the same agreement.

 

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date
set forth in the preamble hereto.

 

EPICOR SOFTWARE CORPORATION,

a Delaware corporation, as Borrower

By:   /S/    MICHAEL A. PIRAINO        

Name:

  Michael A. Piraino

Title

  Chief Financial Officer and Senior Vice President

 

KEYBANK NATIONAL ASSOCIATION,

as Lender

By:   /s/    ROBERT W. BOSWELL        

Name:

  Robert W. Boswell

Title

  Vice President

 

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OFFICER’S CERTIFICATE

 

Reference is made to that certain Third Amendment to Credit Agreement (24-Month)
(as amended, the “Credit Agreement”) dated as of July 19, 2004, amending that
certain Credit Agreement, dated January 28, 2004, by and among EPICOR SOFTWARE
CORPORATION, a Delaware corporation (the “Borrower”), and KEYBANK NATIONAL
ASSOCIATION (the “Lender”) (all capitalized terms used but not otherwise defined
herein shall have the meanings ascribed thereto in the Credit Agreement).

 

The undersigned, as a Responsible Officer of the Borrower does hereby certify as
follows:

 

1. The representations and warranties of the Borrower contained in the Credit
Agreement are true and correct on and as of the date hereof (except to the
extent such representations and warranties specifically refer to an earlier
date, in which case they are true and correct as of such earlier date);

 

2. Borrower is in compliance with all the terms and provisions of the Loan
Documents to which it is a party, and no Default or Event of Default has
occurred and is continuing; and

 

3. There has been no event or circumstance since the date of the Audited
Financial Statements which has a Material Adverse Effect.

 

4. Borrower and its Subsidiaries on a consolidated basis held unrestricted cash
(and cash equivalents) of $45,000,000 or more as of June 30, 2004.

 

[Signature page follows]

 

Borrower’s Officer’s Certificate

 

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IN WITNESS WHEREOF, this Certificate is executed as of this 19th day of July,
2004.

 

EPICOR SOFTWARE CORPORATION By:   /S/    MICHAEL A. PIRAINO        

Name:

  Michael A. Piraino

Title:

  Chief Financial Officer and Senior Vice-President

 

Borrower’s Officer’s Certificate

 

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CERTIFICATE OF CORPORATE SECRETARY OF EPICOR SOFTWARE CORPORATION

 

The undersigned, being the duly elected, qualified and acting Secretary of
EPICOR SOFTWARE CORPORATION, a Delaware corporation (the “Company”) does hereby
certify as of July 19th, 2004, pursuant to the Credit Agreement (24-Month),
dated as of January 28, 2004 (as amended, the “Credit Agreement”) among the
Company and KeyBank National Association (the “Lender”) (all capitalized terms
used but not otherwise defined herein shall have the meanings ascribed thereto
in the Credit Agreement), that:

 

1. Attached hereto as Exhibit A is a true, correct and complete copy of the
Company’s Second Restated Certificate of Incorporation, including all amendments
thereto, as certified by the Secretary of State of the State of Delaware and as
in full force and effect as of the date hereof;

 

2. Attached hereto as Exhibit B is a true, correct and complete copy of the
Company’s Amended and Restated Bylaws, including all amendments thereto, as in
full force and effect on the date hereof;

 

3. Attached hereto as Exhibit C is a true and complete copy of the resolutions
adopted by the Company’s Board of Directors relating to the authorization,
execution, delivery and performance of the Second Amendment to the Credit
Agreement and the documents related thereto, and such resolutions have not been
amended, annulled, rescinded or revoked and remain in full force and effect on
the date hereof; and

 

4. Each of the persons listed on Annex A hereto has been duly elected or
appointed to the office in the Company set forth opposite his respective name
and that the signature appearing opposite each name is his true and genuine
signature.

 

[Signature page follows]

 

Borrower’s Certificate of Secretary

 

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IN WITNESS WHEREOF, this Certificate is executed as of this 19th day of July,
2004.

 

    /S/    JOHN D. IRELAND        

Name:

  John D. Ireland

Title:

  Secretary

 

I, Michael A. Piraino, the Chief Financial Officer and Senior Vice-President of
the Company, do hereby certify that John D. Ireland is the Secretary of the
Company, and the signature appearing opposite his name is his true and genuine
signature.

 

IN WITNESS WHEREOF, I have executed this Certificate as of this 19th day of
July, 2004.

 

    /S/    MICHAEL A. PIRAINO        

Name:

  Michael A. Piraino

Title:

  Chief Financial Officer and Senior Vice President

 

Borrower’s Certificate of Secretary

 

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EXHIBIT A

 

SECOND RESTATED CERTIFICATE OF INCORPORATION

 

Borrower’s Certificate of Secretary

 

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EXHIBIT B

 

AMENDED AND RESTATED BYLAWS

 

Borrower’s Certificate of Secretary

 

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EXHIBIT C

 

RESOLUTIONS

 

Borrower’s Certificate of Secretary

 

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ANNEX A

 

Name

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Office

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Signature

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L. George Klaus

   Chief Executive Officer, President and Chairman  

/S/    L. GEORGE KLAUS        

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Michael A. Piraino

   Chief Financial Officer and Senior Vice-President  

/S/    MICHAEL A. PIRAINO        

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John D. Ireland

   Secretary  

/S/    JOHN D. IRELAND        

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Borrower’s Certificate of Secretary