Exhibit 10.48

 

AMENDMENT AND CONSENT NO. 2 TO CREDIT AGREEMENT

 

This Amendment and Consent No. 2 to Credit Agreement (this “Agreement”) dated as
of March 12, 2004 is made by and among INTERCEPT, INC., a Georgia corporation
(the “Borrower”), BANK OF AMERICA, N.A., a national banking association
organized and existing under the laws of the United States (“Bank of America”),
in its capacity as administrative agent for the Lenders (as defined in the
Credit Agreement (as defined below)) (in such capacity, the “Administrative
Agent”), each of the Lenders signatory hereto, and each of the Guarantors (as
defined in the Credit Agreement) signatory hereto.

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the Administrative Agent and the Lenders have entered
into that certain Credit Agreement dated as of September 19, 2003, as amended by
Amendment No. 1 dated as of November 7, 2003 (as hereby further amended and as
from time to time hereafter further amended, modified, supplemented, restated,
or amended and restated, the “Credit Agreement”; the capitalized terms used in
this Agreement not otherwise defined herein shall have the respective meanings
given thereto in the Credit Agreement), pursuant to which the Lenders have made
available to the Borrower a revolving credit facility, including a letter of
credit facility and a swing line facility; and

 

WHEREAS, each of the Guarantors has entered into a Guaranty pursuant to which it
has guaranteed certain or all of the obligations of the Borrower under the
Credit Agreement and the other Loan Documents; and

 

WHEREAS, the Borrower has requested that the Administrative Agent and the
Lenders agree to amend certain additional terms of the Credit Agreement, which
the Administrative Agent and the Lenders party hereto are willing to do on the
terms and conditions contained in this Agreement; and

 

WHEREAS, the Borrower has requested that the Administrative Agent and the
Lenders consent to the increase in the face amount of a certain Investment and
the extension of the maturity date of such Investment; and

 

WHEREAS, each of the Guarantors wishes to reaffirm its guarantee of all the
obligations of the Borrower, including but not limited to the increased amount
of the revolving credit facility;

 

NOW, THEREFORE, in consideration of the premises and further valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:

 

1. Amendments to Credit Agreement. Subject to the terms and conditions set forth
herein, the Credit Agreement is hereby amended as follows:

 

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(a) The definition of “Amendment No. 2” is hereby added to Section 1.01 to read
in its entirety as follows:

 

“ ‘Amendment No.2’ means that certain Amendment No. 2 to Credit Agreement dated
as of March             , 2004 among the Borrower, the Guarantors, the
Administrative Agent and the Lenders party thereto.”

 

(b) The definition of “Consolidated EBITDA” is hereby deleted from Section 1.01
in its entirety and replaced with the following:

 

“ ‘Consolidated EBITDA’ means for any period, for the Borrower and its
Subsidiaries on a consolidated basis, an amount equal to Consolidated Net Income
for such period plus (a) the following to the extent deducted in calculating
such Consolidated Net Income: (i) Consolidated Interest Charges for such period,
(ii) the provision for federal, state, local and foreign income taxes payable by
the Borrower and its Subsidiaries for such period, (iii) the amount of
depreciation and amortization expense, (iv) other non-recurring expenses of the
Borrower and its Subsidiaries reducing such Consolidated Net Income which do not
represent a cash item in such period or any future period, and (v) all amounts,
not to exceed $8,400,000 in the aggregate, accrued on or before March 1, 2004 by
the Borrower for the full and final settlement of (and release from any and all
additional liability in connection with) that certain litigation described in
parts (1) and (4) of Schedule 5.06, and minus (b) all non-cash items increasing
Consolidated Net Income for such period, subject (in connection with the
calculation of the Consolidated Leverage Ratio only) to Acquisition
Adjustments.”

 

(c) Section 7.11(a) is hereby deleted in its entirety and replaced with the
following:

 

“(a) Consolidated Net Worth. Permit Consolidated Net Worth at any time to be
less than the sum of (a) $168,363,000, (b) an amount equal to 75% of the
Consolidated Net Income earned in each full fiscal quarter ending after December
31, 2003 (with no deduction for a net loss in any such fiscal quarter) and (c)
an amount equal to 100 % of the aggregate increases in Shareholders’ Equity of
the Borrower and its Subsidiaries after the date hereof by reason of the
issuance and sale of capital stock or other equity interests of the Borrower or
any Subsidiary (other than issuances to the Borrower or a wholly-owned
Subsidiary), including upon any conversion of debt securities of the Borrower
into such capital stock or other equity interests.

 

2. Consent. By their execution hereof, each of the Required Lenders hereby
consent to (i) the increase in the amount of not more than $500,000 in the
principal amount of that certain Investment consisting of a promissory note
executed by Raymond Moyer for the benefit of InterCept Payments Solutions, Inc.,
dated as of May 24, 2002 (the “Moyer Note”; which note matured on December 31,
2002 and is and will remain in default until modified as permitted hereby) so
that the principal amount of the Moyer Note, as increased to include as
principal the full amount of unpaid principal and accrued and unpaid interest
thereon as of the date of its modification, shall be no greater than $3,000,000,
and (ii) the extension of the maturity date of the Moyer Note, so that as
extended, the maturity date of the Moyer Note shall be not later than three
years from the date of such modification; provided, however, that the consent
provided herein is not applicable to any other Investment or modification to or
amendment of the Moyer

 

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Note except as specifically provided herein.

 

3. Effectiveness; Conditions Precedent. The effectiveness of this Agreement and
the amendments to the Credit Agreement provided in Paragraph 1 and the consent
provided in Paragraph 2 hereof are all subject to the satisfaction of each the
following conditions precedent:

 

(a) The Administrative Agent shall have received each of the following documents
or instruments in form and substance reasonably acceptable to the Administrative
Agent:

 

(i) four (4) original counterparts of this Agreement, duly executed by the
Borrower, the Administrative Agent, each Guarantor and the Required Lenders,
together with all schedules and exhibits thereto duly completed;

 

(ii) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of a Responsible Officer of each Loan Party as the
Administrative Agent may require; and

 

(iii) such other documents, instruments, opinions, certifications, undertakings,
further assurances and other matters as the Administrative Agent shall
reasonably request.

 

(b) All fees and expenses payable to the Administrative Agent and the Lenders
(including the fees and expenses of counsel to the Administrative Agent)
estimated to date shall have been paid in full (without prejudice to final
settling of accounts for such fees and expenses).

 

4. Covenant and Consent. The Borrower covenants that it shall deliver, within
[sixty (60) days] after the date hereof, a replacement stock certificate or
certificates, including stock power or powers duly executed in blank, for
ProImage, Inc., a Georgia corporation, representing the Borrower’s sixty-seven
percent (67%) interest in such Subsidiary.

 

The Borrower acknowledges that (i) the above item was required to be delivered
pursuant to the Credit Agreement and the Post Closing Agreement, and (ii) such
item was not timely delivered. By their execution hereof, each Lender consents
to the extension of time to deliver such item. The Borrower hereby acknowledges
and agrees that the failure to provide the item set forth above within the time
provided thereof shall constitute a default hereunder and an additional Event of
Default under the Credit Agreement for all purposes, and, without limiting the
foregoing, all rights, powers, remedies and restrictions, including restrictions
on extensions of credit, under the Loan Documents resulting from an Event of
Default shall be applicable.

 

5. Consent of the Guarantors. Each Guarantor hereby consents, acknowledges and
agrees to the amendments and other matters set forth herein and hereby confirms
and ratifies in all respects the Guaranty to which such Guarantor is a party
(including without limitation the continuation of such Guarantor’s payment and
performance obligations thereunder upon and after the effectiveness of this
Agreement and the amendments, waivers and consents contemplated hereby) and the
enforceability of such Guaranty against such Guarantor in accordance with its
terms.

 

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6. Representations and Warranties. In order to induce the Administrative Agent
and the Lenders to enter into this Agreement, the Borrower represents and
warrants to the Administrative Agent and the Lenders as follows:

 

(a) The representations and warranties made by the Borrower in Article V of the
Credit Agreement and in each of the other Loan Documents to which it is a party
are true and correct in all material respects on and as of the date hereof,
except to the extent that such representations and warranties expressly relate
to an earlier date;

 

(b) Since September 19, 2003, no act, event, condition or circumstance has
occurred or arisen which, singly or in the aggregate with one or more other
acts, events, occurrences or conditions (whenever occurring or arising), has had
or could reasonably be expected to have a Material Adverse Effect except as
disclosed in Attachment A attached hereto;

 

(c) The Persons appearing as Guarantors on the signature pages to this Agreement
constitute all Persons who are required to be Guarantors pursuant to the terms
of the Credit Agreement and the other Loan Documents, including without
limitation all Persons who became Subsidiaries or were otherwise required to
become Guarantors after the Closing Date, and each of such Persons has become
and remains a party to a Guaranty as a Guarantor;

 

(d) This Agreement has been duly authorized, executed and delivered by the
Borrower and Guarantors party hereto and constitutes a legal, valid and binding
obligation of such parties, except as may be limited by general principles of
equity or by the effect of any applicable bankruptcy, insolvency,
reorganization, moratorium or similar law affecting creditors’ rights generally;
and

 

(e) After giving effect to this Agreement, no Default or Event of Default has
occurred and is continuing.

 

7. Counterparts. This Agreement may be executed in any number of counterparts,
each of which shall be deemed an original as against any party whose signature
appears thereon, and all of which shall together constitute one and the same
instrument.

 

8. Governing Law. This Agreement shall in all respects be governed by, and
construed in accordance with, the laws of the State of Georgia applicable to
contracts executed and to be performed entirely within such State.

 

9. Enforceability. Should any one or more of the provisions of this Agreement be
determined to be illegal or unenforceable as to one or more of the parties
hereto, all other provisions nevertheless shall remain effective and binding on
the parties hereto.

 

10. References. All references in any of the Loan Documents to the “Credit
Agreement” shall mean the Credit Agreement, as amended hereby.

 

11. Successors and Assigns. This Agreement shall be binding upon and inure to
the

 

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benefit of the Borrower, the Administrative Agent and each of the Guarantors and
Lenders, and their respective successors, legal representatives, and assignees
to the extent such assignees are permitted assignees as provided in Section
10.07 of the Credit Agreement.

 

[Signature pages follow.]

 

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this instrument to be made,
executed and delivered by their duly authorized officers as of the day and year
first above written.

 

BORROWER:

 

INTERCEPT, INC.

By:

 

/s/    Scott R. Meyerhoff

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Name:

 

Scott R. Meyerhoff

Title:

 

Chief Financial Officer, Senior Vice President

and Secretary

 

Amendment No. 1

Signature Page 1

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GUARANTORS:

 

INTERCEPT COMMUNICATIONS

TECHNOLOGIES, INC.

By:  

 

/s/    SCOTT R. MEYERHOFF

   

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Name:

 

Scott R. Meyerhoff

Title:

 

Chief Financial Officer and Secretary

INTERCEPT DATA SERVICES, INC. By:  

 

/s/    SCOTT R. MEYERHOFF

   

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Name:

 

Scott R. Meyerhoff

Title:

 

Chief Financial Officer and Secretary

DPSC ACQUISITION CORP. By:  

 

/s/    SCOTT R. MEYERHOFF

   

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Name:

 

Scott R. Meyerhoff

Title:

 

Chief Financial Officer, Secretary and

Treasurer

C-TEQ, INC. By:  

 

/s/    SCOTT R. MEYERHOFF

   

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Name:

 

Scott R. Meyerhoff

Title:

 

Chief Financial Officer and Secretary

ICPT ACQUISITION I, LLC By:  

 

/s/    SCOTT R. MEYERHOFF

   

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Name:

 

Scott R. Meyerhoff

Title:

 

Chief Financial Officer, Senior Vice

President and Secretary

 

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INTERCEPT SERVICES, LLC By:   /s/    Scott R. Meyerhoff    

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Name:

  Scott R. Meyerhoff

Title:

  Chief Financial Officer, Secretary and
Treasurer INTERCEPT PAYMENT SOLUTIONS, INC. By:   /s/    Scott R. Meyerhoff    

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Name:

  Scott R. Meyerhoff

Title:

  Chief Financial Officer, Secretary and
Treasurer INTERCEPT TX I, LLC By:   /s/    Scott R. Meyerhoff    

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Name:

  Scott R. Meyerhoff

Title:

  Chief Financial Officer, Secretary and
Treasurer INTERCEPT OUTPUT SOLUTIONS, LP By:   InterCept TX I, LLC, its general
partner     By:  

/s/    Scott R. Meyerhoff

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    Name:  

Scott R. Meyerhoff

    Title:  

Chief Financial Officer, Secretary and

Treasurer

INTERCEPT SUPPLY, LP By:   InterCept TX I, LLC, its general partner     By:  

/s/    Scott R. Meyerhoff

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    Name:  

Scott R. Meyerhoff

    Title:  

Chief Financial Officer, Secretary and

Treasurer

 

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INTERNET BILLING COMPANY, LLC

By:  

/s/    Scott R. Meyerhoff

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Name:

      Scott R. Meyerhoff        

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Title:

      Chief Financial Officer, Secretary and Treasurer        

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ADMINISTRATIVE AGENT:

BANK OF AMERICA, N.A., as Administrative Agent

By:   /s/    KRISTINE THENNES    

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Name:

 

Kristine Thennes

   

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Title:

 

Vice President

   

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LENDER:

BANK OF AMERICA, N.A., as a Lender, L/C Issuer and Swing Line Lender

By:  

/s/    BRIAN L. MARTIN

   

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Name:

 

Brian L. Martin

   

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Title:

 

Vice President

   

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THE BANKERS BANK By:        

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Name:

       

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Title:

       

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REGIONS BANK

By:  

/s/    STEPHEN H. LEE

   

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Name:

 

Stephen H. Lee

   

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Title:

 

Senior Vice President

   

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WASHINGTON MUTUAL BANK

By:  

/s/    CHAD A. BROWN

   

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Name:

 

Chad A. Brown

   

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Title:

 

Assistant Vice President

   

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FIRST TENNESSEE BANK NATIONAL ASSOCIATION

By:  

/s/    GLEN P. EVANS

   

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Name:

 

Glen P. Evans

   

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Title:

 

Senior Vice President

   

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