Exhibit 10(i)

 

LETTER AMENDMENT AND WAIVER NO. 1

 

Dated as of May 27, 2003

 

To the banks, financial institutions

      and other institutional lenders

      (collectively, the “Lenders”) parties

      to the Credit Agreement referred to

      below and to Merrill Lynch Capital,

      a Division of Merrill Lynch Business

      Financial Services Inc., as Administrative Agent

      (in such capacity, the “Administrative Agent”) for the Lenders

 

Ladies and Gentlemen:

 

We refer to that certain Credit Agreement, dated as of November 26, 2002 (as
amended, restated, extended, supplemented or otherwise modified in writing from
time to time, the “Credit Agreement”; the terms defined therein being used
herein as therein defined), among NDCHealth Corporation, a Delaware corporation
(the “Borrower”), the Lenders and agents from time to time party thereto,
Merrill Lynch Capital, a division of Merrill Lynch Business Financial Services
Inc., as Administrative Agent and Swing Line Lender, Credit Suisse First Boston,
as Syndication Agent, Bank of America, N.A., as Documentation Agent and LaSalle
Bank National Association, as L/C Issuer. Capitalized terms not otherwise
defined in this Letter Amendment and Waiver have the same meanings as specified
in the Credit Agreement.

 

The Credit Agreement is, effective as of the date of this Letter Amendment and
Waiver, hereby amended as follows:

 

(a) Section 7.13 is hereby amended by deleting the figure “$12,000,000” in the
last line thereof and replacing it with the figure “$20,000,000”.

 

(b) Section 1.01 is hereby amended by restating the definition of “Annualized”
in its entirety to read as follows:

 

“Annualized” means:

 

(a) with respect to the first four full fiscal quarters following the Closing
Date and any period thereafter, for purposes of calculating Consolidated
Interest Charges, the amount of such Consolidated Interest Charges for the four
full fiscal quarters ending on or prior to such date of determination, and

 

(b) with respect to the first three full fiscal quarters following the Closing
Date, for purposes of calculating Consolidated Interest Charges, (A) for

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the first full fiscal quarter after the Closing Date, Consolidated Interest
Charges for such fiscal quarter multiplied by four, (B) for the second full
fiscal quarter after the Closing Date, the sum of Consolidated Interest Charges
for such fiscal quarter and for the prior fiscal quarter multiplied by two, and
(C) for the third full fiscal quarter after the Closing Date, the sum of
Consolidated Interest Charges for such fiscal quarter and for the prior two
fiscal quarters multiplied by four and divided by three.

 

The Lenders hereby agree that all fees, charges and related expenses of the
Borrower and its Subsidiaries in connection with (i) the repayment of the
Borrower’s $143 million Convertible Notes due November 1, 2003, (ii) the
issuance of the Senior Subordinated Notes and (iii) the Credit Agreement, be
excluded from the calculation of Consolidated Interest Expense as reported in
the Compliance Certificate for the period ended February 28, 2003, only. The
Borrower hereby agrees that an amended Compliance Certificate for the period
ended February 28, 2003 will be delivered to the Agent, the Arrangers and the
Lenders with the Compliance Certificate for the period ended May 31, 2003.

 

This Letter Amendment and Waiver shall become effective as of the date first
above written when, and only when, (i) the Administrative Agent shall have
received counterparts of this Letter Amendment and Waiver executed by the
undersigned and the Required Lenders or, as to any of the Lenders, advice
satisfactory to the Administrative Agent that such Lender has executed this
Letter Amendment and Waiver, and the consent attached hereto executed by each
Guarantor, (ii) payment in full of all expenses of the Administrative Agent
related to this Letter Amendment and Waiver (including legal fees of counsel to
the Agent, to the extent invoiced) shall have been made by the Borrower, and
(iii) the TechRx Acquisition shall have been consummated. This Letter Amendment
and Waiver is subject to the provisions of Section 10.01 of the Credit
Agreement.

 

On and after the effectiveness of this Letter Amendment and Waiver, each
reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof” or
words of like import referring to the Credit Agreement, and each reference in
the Notes and each of the other Loan Documents to “the Credit Agreement”,
“thereunder”, “thereof” or words of like import referring to the Credit
Agreement, shall mean and be a reference to the Credit Agreement, as amended by
this Letter Amendment and Waiver.

 

The Credit Agreement, the Notes and each of the other Loan Documents, as
specifically amended by this Letter Amendment and Waiver, are and shall continue
to be in full force and effect and are hereby in all respects ratified and
confirmed. Without limiting the generality of the foregoing, the Collateral
Documents and all of the Collateral described therein do and shall continue to
secure the payment of all Obligations of the Loan Parties under the Loan
Documents, in each case as amended by this Letter Amendment and Waiver. The
execution, delivery and effectiveness of this Letter Amendment and Waiver shall
not, except as expressly provided herein, operate as a waiver of any right,
power or remedy of any Lender or any Agent under any of the Loan Documents, nor
constitute a waiver of any provision of any of the Loan Documents.

 

2

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If you agree to the terms and provisions hereof, please evidence such agreement
by executing and returning a counterpart of this Letter Amendment and Waiver to
Shearman & Sterling, 599 Lexington Avenue, New York, New York 10022, Attention:
Petal Modeste, Telecopier No. (212) 848-7179.

 

This Letter Amendment and Waiver may be executed in any number of counterparts
and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. Delivery of an executed counterpart of a
signature page to this Letter Amendment and Waiver by telecopier shall be
effective as delivery of a manually executed counterpart of this Letter
Amendment and Waiver.

 

This Letter Amendment and Waiver shall be governed by, and construed in
accordance with, the laws of the State of New York.

 

Very truly yours,

NDCHEALTH CORPORATION

By      

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Name:

   

Title:

 

Agreed as of the date first above written:

 

MERRILL LYNCH CAPITAL, a division of

Merrill Lynch Business Financial Services Inc.,

as Administrative Agent, Swing Line Lender and

as Lender

 

By      

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Name:

   

Title:

 

3

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                                                                     , as a
Lender

[Insert Name of Financial Institution]

 

By      

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Title:

 

4

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CONSENT

 

Dated as of May     , 2003

 

Each of the undersigned, as Guarantor under the Guaranty dated November 26, 2002
(the “Guaranty”), in each case, in favor of the Secured Parties referred to in
the Credit Agreement referred to in the foregoing Letter Amendment and Waiver
(the “Credit Agreement”) hereby consents to such Letter Amendment and Waiver and
hereby confirms and agrees that (a) notwithstanding the effectiveness of such
Letter Amendment and Waiver, the Guaranty is, and shall continue to be, in full
force and effect and is hereby ratified and confirmed in all respects, except
that, on and after the effectiveness of such Letter Amendment and Waiver, each
reference in the Guaranty to the “Credit Agreement”, “thereunder”, “thereof” or
words of like import shall mean and be a reference to the Credit Agreement, as
amended by such Letter Amendment and Waiver and (b) the Collateral Documents to
which each of the undersigned is a party and all of the Collateral described
therein do, and shall continue to, secure the payment of all of the Secured
Obligations. Capitalized terms used herein and not otherwise defined shall have
the meanings assigned to such terms in the Credit Agreement.

 

THE COMPUTER PLACE, INC.

By      

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Title:

 

NDC HEALTH INFORMATION SERVICES

(ARIZONA) INC.

By      

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Title:

 

NDCHEALTH INTELLECTUAL PROPERTY CORP.

By      

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Title:

 

HISIP CORP.

By      

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Title:

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NDCIP, INC.

By      

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Title:

 

NDCHEALTH LICENSING, INC.

By      

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Title:

 

NDC OF CANADA, INC.

By      

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Title:

 

TECHRX INCORPORATED

By      

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Title:

 

NDC ACQUISITION CORP.

By      

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Title: