Document:

exv10w1

 

Exhibit 10.1

FORM OF VOTING AGREEMENT

     THIS VOTING AGREEMENT (this “Agreement”) is made and entered into as of August ___, 2006 by and
between Corel Corporation, a corporation organized and existing under the laws of Canada
(“Parent”), and the undersigned shareholder (the “Shareholder”) of InterVideo, Inc., a Delaware
corporation (the “Company”).

RECITALS

     A. Parent, Iceland Acquisition Corporation, a Delaware corporation and wholly-owned subsidiary
of Parent (“Merger Sub”), and the Company have entered into an Agreement and Plan of Merger of even
date herewith (the “Merger Agreement”), which provides for, among other things, the merger of
Merger Sub with and into the Company (the “Merger”) pursuant to which all outstanding shares of
capital stock of the Company will be converted into the right to receive the consideration set
forth in the Merger Agreement.

     B. The Shareholder is the beneficial owner (as defined in Rule 13d-3 under the Securities
Exchange Act of 1934, as amended (the “Exchange Act”)) of such number of shares of the outstanding
capital stock of the Company, options or warrants to purchase such number of shares of capital
stock of the Company as is indicated on the signature page of this Agreement.

     C. In consideration of the execution of the Merger Agreement by Parent, the Shareholder (in
the Shareholder’s capacity as such) is hereby agreeing to vote the Shares as described herein.

     NOW, THEREFORE, intending to be legally bound, the parties hereto agree as follows:

     1. Certain Definitions. All capitalized terms that are used but not defined herein shall have
the respective meanings ascribed to them in the Merger Agreement. For all purposes of and under
this Agreement, the following terms shall have the following respective meanings:

          (a) “Expiration Date” shall mean the earlier to occur of (i) such date and time as the Merger
shall become effective in accordance with the terms and provisions of the Merger Agreement or (ii)
termination of the Merger Agreement in accordance with its terms; provided that the Expiration Date
shall be the effective date of any Transfer of Shares in accordance with Section 2(a) hereof.

          (b) “Person” shall mean any individual, corporation, limited liability company, general or
limited partnership, trust, unincorporated association or other entity of any kind or nature, or
any governmental authority.

          (c) “Shares” shall mean (i) all securities of the Company (including all shares of Company
Common Stock and all options, warrants and other rights to acquire shares of Company Common Stock)
owned by the Shareholder as of the date hereof, and (ii) all additional securities of the Company
(including all additional shares of Company Common Stock and all additional options, warrants and
other rights to acquire shares of Company Common Stock) of which the Shareholder acquires ownership
during the period from the date of this Agreement

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through the Expiration Date (including by way of
stock dividend or distribution, split-up, recapitalization, combination, exchange of shares and the
like).

          (d) A Person shall be deemed to have effected a “Transfer” of a Share if such person, directly
or indirectly (i) sells, tenders, pledges, encumbers, assigns, grants an option with respect to,
establishes an open “put equivalent position” (within the meaning of Rule 16a-h under the Exchange
Act) with respect to, transfers or disposes of such Share or any interest in such Share (including
the economic consequences of ownership of such Share), or (ii) enters into an agreement or
commitment providing for the sale of, tender of, pledge of, encumbrance of, assignment of, grant of
an option with respect to, establishment of an open “put equivalent position” with respect to,
transfer, or disposition of such Share or any interest therein (including the economic consequences
of ownership of such Share).

     2. Transfer of Shares. Prior to the termination of this Agreement, Shareholder agrees not to,
directly or indirectly:

          (a) Except pursuant to the terms of the Merger Agreement or pursuant to the terms of a trading
plan adopted pursuant to Rule 10b5-1 under the Exchange Act in effect prior to the date hereof,
Transfer any or all of the Shares or any interest therein, except (i) as provided in Section 3
hereof, (ii) to the extent required to pay the exercise price upon exercise of a Company Stock
Option or to satisfy the Shareholders’ tax withholding obligation upon exercise of a Company Stock
Option; and/or (iii) other Transfers in which each transferee shall have: (A) executed a
counterpart of this Agreement and a proxy in the form attached hereto as Annex I and (B) agreed in
writing to hold such Shares (or interest in such Shares) subject to all of the terms and provisions
of this Agreement (provided that such Transfers in the aggregate shall not exceed 10% of the Shares
held by Shareholders as of the date hereof); or

          (b) grant any proxy or power of attorney, deposit any of the Shares into a voting trust or
enter into a voting agreement or arrangement with respect to the Shares except as provided in this
Agreement.

Notwithstanding anything to the contrary in this Agreement, any Shares Transferred in a manner
permitted by Section 2(a) hereof shall be Transferred free and clear of any voting or other
restrictions contained herein and of the Proxy (as defined below), in each case except to the
extent specifically provided by Section 2(a)(iii).

     3. Agreement to Vote Shares.

          (a) At every meeting of the stockholders of the Company called, and at every adjournment or
postponement thereof, and on every action or approval by written consent of the stockholders of
Company, the Shareholder (in the Shareholder’s capacity as such), to the extent
not voted by the Person(s) appointed under the Proxy (as defined below), shall, or shall cause
the holder of record on any applicable record date to, vote the Shares:

               (i) in favor of the adoption of the Merger Agreement, and in favor of each of the other
actions contemplated by the Merger Agreement;

               (ii) against approval of any Company Acquisition Proposal; and

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               (iii) against any action that is intended, or could reasonably be expected to, materially,
impede, interfere with, delay, or postpone the Merger.

          (b) In the event that a meeting of the stockholders of the Company is held, the Shareholder
shall, or shall cause the holder of record on any applicable record date to, appear at such meeting
or otherwise cause the Shares to be counted as present thereat for purposes of establishing a
quorum.

          (c) The Shareholder shall not enter into any agreement or understanding with any Person to
vote or give instructions in any manner inconsistent with the terms of this Section 3.

          (d) In the event the Shareholder does not vote its Shares in accordance with this Section 3,
Parent shall have the right to vote such Shares in accordance with the terms of the Proxy.

          (e) In the event the Board of Directors of the Company effects a Recommendation Withdrawal not
in connection with a Superior Proposal, the provisions of Section 3(i) shall be suspended;
provided, that in the event the Board of Directors of the Company reinstates its recommendation of
the Merger and the Merger Agreement, as the same may be amended, supplemented or modified,
thereafter makes a Recommendation Withdrawal in one or more of the circumstances permitted under
the Agreement or which would entitle Parent to payment of a termination fee or a court of competent
jurisdiction rules that such Recommendation Withdrawal not in connection with a Superior Proposal
constituted a breach of the Agreement entiling the Parent to a remedy, the provisions of Section
3(i) shall be reinstated, subject, in all respects to the other terms and conditions of this
Agreement.

     4. Directors and Officers. Notwithstanding any provision of this Agreement to the contrary,
nothing in this Agreement shall (or require the Shareholder to attempt to) limit or restrict any
designee of the Shareholder or a Shareholder who is a director or officer of the Company from
acting in such capacity or voting, in his capacity as a director of the Company, with Shareholders’
sole discretion on any matter (it being understood that this Agreement shall apply to the
Shareholder solely in the Shareholder’s capacity as a shareholder of the Company).

     5. Irrevocable Proxy. Concurrently with the execution of this Agreement, the Shareholder
shall deliver to Parent a proxy in the form attached hereto as Exhibit A (the “Proxy”), which shall
be effective solely as described in Section 3(d) above and irrevocable to the fullest extent
permissible by law, with respect to the Shares. Notwithstanding the foregoing, the Proxy shall
terminate and be revoked (or shall under no circumstances become effective) with respect to the
Shares concurrently with (a) the Transfer of Shares in accordance with
Section 2(a) above or (b) upon the Expiration Date, without any notice or action by
Shareholder, the transferee or any other person.

     6. Representations and Warranties of the Shareholder.

          (a) Power; Authorization; Binding Agreement. The Shareholder has full power, authority and
authorization to execute and deliver this Agreement and the Proxy, to perform the Shareholder’s
obligations hereunder and to consummate the transactions

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contemplated hereby. This Agreement has
been duly executed and delivered by the Shareholder, and, assuming this Agreement constitutes a
valid and binding obligation of Parent, constitutes a valid and binding obligation of the
Shareholder, enforceable against the Shareholder in accordance with its terms.

          (b) No Conflicts. No filing with, and no permit, authorization, consent, or approval of, any
state or federal public body or authority (“Governmental Entity”) is necessary for the execution by
the Shareholder of this Agreement, the performance by the Shareholder of its obligations hereunder
and the consummation by the Shareholder of the transactions contemplated hereby. None of the
execution and delivery by the Shareholder of this Agreement, the performance by the Shareholder of
its obligations hereunder or the consummation by the Shareholder of the transactions contemplated
hereby will (i) conflict with or result in any breach of any agreements or documents entered into
by or binding on the Shareholder, (ii) violate any order, writ, injunction, decree, judgment,
order, statute, rule, or regulation applicable to the Shareholder, except where such violations,
breaches or defaults would not individually or in the aggregate, materially impair the ability of
Stockholder to perform this Agreement.

          (c) Ownership of Shares. The Shareholder (i) is the beneficial owner of the shares of Company
Common Stock indicated on the signature page of this Agreement, (ii) is the owner of options that
are exercisable for the number of shares of Company Common Stock indicated on the signature page of
this Agreement, all of which options and shares of Company Common Stock issuable upon the exercise
of such options are, or the Company Common Stock received upon exercise of an option after the date
hereof will be, free and clear of any Liens (except any Liens arising under securities laws or
arising hereunder); and (iii) does not own, beneficially or otherwise, any securities of the
Company other than the shares of Company Common Stock or options to purchase shares of Company
Common Stock, and shares of Company Common Stock issuable upon the exercise of such options,
indicated on the signature page of this Agreement.

          (d) No Encumbrance. Except as permitted by this Agreement, the Shares are now and, at all
times during the term hereof, or will be, as the case may be, held by Shareholder, or by a nominee
or custodian for the benefit of Shareholder, free and clear of all Liens except for any such Liens
arising hereunder or under applicable federal and state securities laws, other than Liens that
would not individually or in the aggregate, materially impair the ability of Stockholder to perform
this Agreement.

          (e) No Action. The Shareholder agrees that it will not bring, commence, institute, maintain,
or prosecute any action, claim, suit or cause of action, in law or in equity, in any court or
before any Governmental Entity, which (i) challenges the validity of or seeks to
enjoin the operation of any provision of this Agreement or (ii) alleges that the execution and
delivery of this Agreement by the Shareholder, either alone or together with the other Voting
Agreements and proxies to be delivered in connection with the execution of the Merger Agreement, or
the approval of the Merger Agreement by the board of directors of the Company, breaches any
fiduciary duty of the board of directors of the Company or any member thereof.

     7. Disclosure. The Shareholder shall permit Parent to publish and disclose in all documents
and schedules filed with the Securities and Exchange Commission, and any press

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release or other
disclosure document that Parent determines to be necessary or desirable in connection with the
Merger and any transactions related to the Merger, the Shareholder’s identity and ownership of
Shares and the nature of the Shareholder’s commitments, arrangements and understandings under this
Agreement.

     8. Further Assurances. Subject to the terms and conditions of this Agreement, the Shareholder
shall use reasonable efforts to take, or cause to be taken, all actions, and to do, or cause to be
done, all things reasonably necessary to fulfill such Shareholder’s obligations under this
Agreement.

     9. Legending of Shares. If so requested by Parent, the Shareholder agrees that the Shares
shall bear a legend stating that they are subject to this Agreement and the Proxy.

     10. Termination. This Agreement and the Proxy shall terminate and shall have no further force
or effect as of the Expiration Date. Notwithstanding the foregoing, nothing set forth in this
Section 10 or elsewhere in this Agreement shall relieve either party hereto from liability, or
otherwise limit the liability of either party hereto, for any breach of this Agreement.

     11. Appraisal Rights. The Shareholder irrevocably waives and agrees not to exercise
any rights (including, without limitation, under Section 262 of the General Corporation Law of the
State of Delaware) to demand appraisal of any of the Shares which may arise with respect to the
Merger.

     12. Miscellaneous.

          (a) Validity. The invalidity or unenforceability of any provision of this Agreement shall not
affect the validity or enforceability of the other provisions of this Agreement, which will remain
in full force and effect. In the event any Governmental Entity of competent jurisdiction holds any
provision of this Agreement to be null, void or unenforceable, the parties hereto shall negotiate
in good faith and execute and deliver an amendment to this Agreement in order, as nearly as
possible, to effectuate, to the extent permitted by law, the intent of the parties hereto with
respect to such provision.

          (b) Binding Effect and Assignment. This Agreement and all of the provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their respective successors and
permitted assigns, but neither this Agreement nor any of the rights, interests or obligations of
the parties hereto may be assigned by either of the parties without prior written consent of the
other; provided, that Parent may assign any of their rights and obligations hereunder, in whole or
in part, to any Affiliate or Subsidiary of Parent without obtaining the consent of the Shareholder.

          (c) Amendments; Waiver. This Agreement may be amended by the parties hereto, and the terms
and conditions hereof may be waived, only by an instrument in writing signed on behalf of each of
the parties hereto, or, in the case of a waiver, by an instrument signed on behalf of the party
waiving compliance.

          (d) Specific Performance; Injunctive Relief. The parties hereto acknowledge that Parent shall
be irreparably harmed and that there shall be no adequate remedy at law for a

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violation of any of
the covenants or agreements of the Shareholder set forth herein. Therefore, it is agreed that, in
addition to any other remedies that may be available to Parent upon any such violation, Parent
shall have the right to enforce such covenants and agreements by specific performance, injunctive
relief or by any other means available to Parent at law or in equity.

     Notices. All notices or other communications hereunder shall be deemed to have been duly given and
made if in writing and if served by personal delivery upon the party for whom it is intended, if
delivered by registered or certified mail, return receipt requested, or by a national courier
service, or if sent by facsimile or by email transmission. Any such notice shall be deemed
delivered (a) on the date delivered if by personal delivery, (b) on the date upon which receipt is
signed or delivery is made, if mailed by registered or certified mail, (c) on the date upon which
the return receipt is signed or delivery is refused or the notice is designated by the postal
authorities as not deliverable, as the case may be, if mailed by registered or certified mail, (d)
on the next succeeding Business Day if sent by national courier service, (e) on the date sent by
facsimile if the appropriate facsimile confirmation is received by the sender, or (f) on the date
sent if by email. Notices shall be sent:

	 	 	 
	 

	 	If to Parent:
	 
	 	 
	 

	 	Corel Corporation
	 

	 	1600 Carling Avenue
	 

	 	Ottawa, Ontario
	 

	 	Canada K1Z 8R7
	 

	 	Attention: Chris S. DiFrancesco
	 

	 	Telephone No.: 613.728.0826
	 

	 	Telecopy No.: 613.725.2691
	 

	 	email: Christopher.DiFrancesco@corel.com
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	O’Melveny & Myers LLP
	 

	 	275 Battery Street, Suite 2600
	 

	 	San Francisco, CA 94111
	 

	 	Attention: Michael J. Kennedy
	 

	 	Telephone No.: 415.984.8756
	 

	 	Telecopy No.: 415.984.8701
	 

	 	email: mjkennedy@omm.com
	 
	 	 
	 

	 	If to the Shareholder, to the address, facsimile and email set forth on the signature page
hereof.
	 
	 	 
	 

	 	with a copy to (which shall not constitute notice):
	 
	 	 
	 

	 	Wilson Sonsini Goodrich & Rosati
	 

	 	Professional Corporation
	 

	 	650 Page Mill Road
	 

	 	Palo Alto, California 94304-1050

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	 	Attention: Matthew Sonsini, Esq.
	 

	 	                 Bradley Finkelstein, Esq.
	 

	 	Telephone No.: 650.493.9300
	 

	 	Telecopy No.: 650.493.6811
	 

	 	email: msonsini@wsgr.com
	 

	 	           bfinkelstein@wsgr.com

          (e) No Waiver. The failure of either party hereto to exercise any right, power or remedy
provided under this Agreement or otherwise available in respect of this Agreement at law or in
equity, or to insist upon compliance by any other party with its obligation under this Agreement,
and any custom or practice of the parties at variance with the terms of this Agreement, shall not
constitute a waiver by such party of such party’s right to exercise any such or other right, power
or remedy or to demand such compliance.

          (f) No Third Party Beneficiaries. This Agreement is not intended to confer upon any person
other than the parties hereto any rights or remedies hereunder.

          (g) Governing Law. This Agreement shall be governed by the laws of the State of Delaware,
regardless of the laws that might otherwise govern under applicable principles of conflicts of law
thereof.

          (h) Rules of Construction. The parties hereto agree that they have been represented by
counsel during the negotiation and execution of this Agreement and, therefore, waive the
application of any law, regulation, holding or rule of construction providing that ambiguities in
an agreement or other document will be construed against the party drafting such agreement or
document.

          (i) Entire Agreement. This Agreement and the Proxy contain the entire understanding of the
parties hereto in respect of the subject matter hereof, and supersede all prior negotiations,
agreements and understandings, both written and oral, between the parties hereto with respect to
the subject matter hereof.

          (j) Interpretation.

               (i) Whenever the words “include,” “includes” or “including” are used in this Agreement they
shall be deemed to be followed by the words “without limitation.” As used in this Agreement, the
term “affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under the Exchange Act.

               (ii) The article and section headings contained in this Agreement are solely for the purpose
of reference, are not part of the agreement of the parties hereto and shall not in any way affect
the meaning or interpretation of this Agreement.

          (k) Expenses. All costs and expenses incurred in connection with this Agreement and the
transactions contemplated hereby shall be paid by the party incurring the expenses.

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          (l) Counterparts. This Agreement may be executed in several counterparts, each of which shall
be an original, but all of which together shall constitute one and the same agreement.

          (m) No Obligation to Exercise Options. Notwithstanding any provision of this Agreement to the
contrary, nothing in this Agreement shall obligate the Shareholder to exercise any option to
acquire shares of Company Common Stock.

[Remainder of Page Intentionally Left Blank]

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     IN WITNESS WHEREOF, the undersigned have executed and caused to be effective this Agreement as
of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	COREL CORPORATION	 	 	 	SHAREHOLDER	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
 

	 	 	 	By: 
 

	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name: 
 

	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:
 

	 	 	 	Title:
 

	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Address:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Facsimile:	 	 	 	 
	 

	 	 	 	 	 	email:	 	 	 	 
	 	 	 	 	 	 	Shares beneficially owned as of the date hereof:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	_______ shares of Company Common Stock	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	_______ shares of Company Common Stock
issuable upon exercise of outstanding options	 	 

**** VOTING AGREEMENT ****

 

 

EXHIBIT A

IRREVOCABLE PROXY

     The undersigned shareholder (the “Shareholder”) of InterVideo, Inc., a Delaware corporation
(the “Company”), hereby irrevocably (to the fullest extent permitted by law) appoints the Chief
Financial Officer and the General Counsel of Corel Corporation, a corporation organized and
existing under the laws of Canada (“Parent”), and each of them, as the sole and exclusive attorneys
and proxies of the undersigned, with full power of substitution and resubstitution, to vote and
exercise all voting and related rights (to the full extent that the undersigned is entitled to do
so) with respect to all of the shares of capital stock of the Company that now are or hereafter may
be beneficially owned by the undersigned, and any and all other shares or securities of the Company
issued or issuable in respect thereof on or after the date hereof (collectively, the “Shares”) in
accordance with the terms of this Irrevocable Proxy until the Expiration Date (as defined below).

     This Irrevocable Proxy is irrevocable to the fullest extent permitted by law, is coupled with
an interest and is granted pursuant to and is subject to that certain Voting Agreement of even date
herewith by and between Parent and the undersigned shareholder (the “Voting Agreement”), and is
granted in consideration of Parent entering into that certain Agreement and Plan of Merger of even
date herewith (the “Merger Agreement”), among Parent, Iceland Acquisition Corporation, a Delaware
corporation and wholly-owned subsidiary of Parent (“Merger Sub”), and the Company. The Merger
Agreement provides for, among other things the merger of Merger Sub with and into the Company,
pursuant to which all outstanding shares of capital stock of the Company will be converted into the
right to receive the consideration set forth in the Merger Agreement.

     As used herein, the term “Expiration Date” shall mean the earlier to occur of (i) such date
and time as the Board of Directors of the Company shall have effected a Recommendation Withdrawal
pursuant to Section 5.2(c) of the Merger Agreement, (ii) such date and time as the Merger shall
become effective in accordance with the terms and provisions of the Merger Agreement or (iii)
termination of the Merger Agreement in accordance with its terms; provided that the Expiration Date
shall be the effective date of any Transfer of Shares in accordance with Section 2(a) of the Voting
Agreement.

     The attorneys and proxies named above, and each of them, are hereby authorized and empowered
by the undersigned, at any time prior to the Expiration Date, subject to and in accordance with the
terms and conditions of the Voting Agreement, to act as the undersigned’s attorney and proxy to
vote the Shares, and to exercise all voting, consent and similar rights of the undersigned with
respect to the Shares (including, without limitation, the power to execute and deliver written
consents) at every annual, special, adjourned or postponed meeting of shareholders of the Company
and in every written consent in lieu of such meeting:

     (i) in favor of the adoption of the Merger Agreement, and in favor of each of the other
actions contemplated by the Merger Agreement;

 

 

     (ii) against approval of any Company Acquisition Proposal (as defined in the Merger
Agreement); and

     (iii) against any action that is intended, or could reasonably be expected to, materially,
impede, interfere with, delay, or postpone the Merger.

     The attorneys and proxies named above may not exercise this Irrevocable Proxy on any other
matter. The undersigned shareholder may vote the Shares on all other matters.

     Any obligation of the undersigned hereunder shall be binding upon the successors and assigns
of the undersigned.

     This Irrevocable Proxy shall terminate, and be of no further force and effect, automatically
upon the Expiration Date and clause (i) above shall be suspended during any period during which the
obligations of Section 3 of the Voting Agreement are suspended pursuant to 

Section 3(e).

[Signature page follows]

 

 

	 	 	 	 	 	 	 	 	 
	Dated: August __, 2006	 	 	 	SHAREHOLDER	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

***** IRREVOCABLE PROXY ****exv10w42

 

Exhibit 10.42

EXECUTION VERSION

FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT

     This FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT (this “Amendment”) is dated as
of August 28, 2006, by and among PEROT SYSTEMS CORPORATION, a Delaware corporation (the
"Borrower”), the LENDERS party hereto (the “Lenders”) and JPMORGAN CHASE BANK, N.A., as
Administrative Agent (in such capacity, the “Administrative Agent”).

RECITALS

     A. The Borrower, the Lenders, the Administrative Agent, KeyBank National Association, SunTrust
Bank and Wells Fargo Bank, National Association, as Co-Syndication Agents, and Wachovia Bank, N.A.,
as Documentation Agent, are parties to an Amended and Restated Credit Agreement dated as of March
3, 2005 (as amended, restated, supplemented or otherwise modified from time to time, the “Credit
Agreement”). Capitalized terms used but not defined herein have the meanings set forth in the
Credit Agreement.

     B. The Borrower has notified the Administrative Agent and the Lenders that the quarterly
financial statements to be delivered by the Borrower pursuant to Section 5.01(b) of the Credit
Agreement for the Borrower’s fiscal quarter ended June 30, 2006 (the “2Q 2006 Financials”) may
indicate that the Borrower did not comply with clause (i) of the definition of “Minimum Recourse
Coverage” for the period of four consecutive fiscal quarters ended on such date (the “Covenant
Departure”).

     C. The Borrower has requested that the Lenders consent to the Covenant Departure and waive the
requirement under Section 5.11(b) of the Credit Agreement, resulting from the Covenant Departure,
for the Borrower to cause one or more Domestic Subsidiaries to become Guarantors within 10 days
after delivery of the 2Q 2006 Financials.

     D. The Borrower has further requested that the Lenders agree to amend the Credit Agreement in
certain respects, as more particularly set forth herein.

     E. The Lenders are willing to provide the requested consent and waiver, and to so amend the
Credit Agreement, subject to the terms and conditions and in reliance upon the representations and
warranties of the Borrower set forth herein.

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrower and the
Lenders agree as follows:

     SECTION 1. Limited Waiver and Limited Consent. Subject to the terms and conditions set forth
in this Amendment, and in reliance upon the representations and warranties of the Borrower made
herein, the Lenders hereby consent to the Covenant Departure and waive the requirement under
Section 5.11(b) of the Credit Agreement, resulting from the Covenant Departure, for the Borrower to
cause one or more Domestic Subsidiaries to become Guarantors within 10 days after delivery of the
2Q 2006 Financials; provided that such consent and waiver

 

 

shall apply only to the failure to comply with clause (i) of the definition of “Minimum
Recourse Coverage” with respect to the period of four consecutive fiscal quarters of the Borrower
ended June 30, 2006, and the resulting requirement under Section 5.11(b) for Borrower to cause one
or more Domestic Subsidiaries to become Guarantors within 10 days after delivery of its financial
statements for the period ended June 30, 2006. The foregoing consent and waiver is limited as
described in the immediately preceding sentence, and shall not apply to any failure to comply with
Sections 5.11(a) and 5.11(b) of the Credit Agreement in respect of any other period or under any
other circumstance, nor to any failure to comply with any other provision of the Credit Agreement
or any other Credit Document under any circumstance.

     SECTION 2. Amendments to Credit Agreement. Subject to the terms and conditions set forth in
this Amendment, and in reliance upon the representations and warranties of the Borrower made
herein, the Lenders and the Borrower hereby amend the Credit Agreement as follows:

     (a) Section 1.01 (Defined Terms) of the Credit Agreement is hereby amended by replacing “March
2, 2010” with “August 28, 2011” in the definition of “Maturity Date” therein.

     (b) Section 1.01 (Defined Terms) of the Credit Agreement is hereby further amended by adding a
new definition of “First Amendment Effective Date” in the appropriate alphabetical position
therein, such new definition to read as follows:

     ““First Amendment Effective Date” means August 28, 2006.”

     (c) Section 1.01 (Defined Terms) of the Credit Agreement is hereby further amended by deleting
the definitions of “Applicable Rate”, “Consolidated EBIT” and “Consolidated EBITDA” therein in
their entirety and replacing them with the following:

     ““Applicable Rate” means, for any day, with respect to any ABR Loan or
Eurodollar Loan, or with respect to the facility fees payable hereunder, as the case may be,
the applicable rate per annum set forth below under the caption “ABR Spread”, “Eurodollar
Spread” or “Facility Fee Rate”, as the case may be, based upon the Debt/EBITDA Ratio
applicable on such date (calculated in accordance with Section 6.08(a)), as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Level:	 	Debt/EBITDA Ratio:	 	ABR Spread	 	Eurodollar Spread	 	Facility Fee Rate
	IV

	 	Greater than or equal
to 2.00 to 1.00
	 	 	0.250	%	 	 	1.000	%	 	 	0.200	%
	III

	 	Less than 2.00 to
1.00, but greater
than or equal to 1.50
to 1.00
	 	 	0.000	%	 	 	0.750	%	 	 	0.150	%
	II

	 	Less than 1.50 to
1.00, but greater
than or equal to 1.00
to 1.00
	 	 	0.000	%	 	 	0.625	%	 	 	0.125	%
	I

	 	Less than 1.00 to 1.00
	 	 	0.000	%	 	 	0.500	%	 	 	0.100	%

2

 

On the First Amendment Effective Date and continuing through and including the day
immediately preceding the first Adjustment Date occurring after the First Amendment
Effective Date, the ABR Spread shall be 0.000%, the Eurodollar Spread shall be 0.500%, and
the Facility Fee Rate shall be 0.100% per annum, and for each period thereafter beginning on
an Adjustment Date and ending on the day immediately preceding the next succeeding
Adjustment Date, the Applicable Rate shall be as set forth opposite the applicable
Debt/EBITDA Ratio in the table above, as determined at the end of the most recently ended
fiscal quarter prior to the applicable Adjustment Date in accordance with the definition of
“Adjustment Date”; provided, however, that if the Borrower fails to furnish
to the Administrative Agent the financial statements of the Borrower and related certificate
of a Financial Officer of the Borrower with respect to any fiscal quarter within the time
periods specified in Section 5.01(a) or 5.01(b), as applicable, then the Applicable Rate
prescribed in Level IV above shall apply as of the date such financial statements were
required to be delivered until the day immediately preceding the date such financial
statements and compliance certificate are so delivered.

Notwithstanding the foregoing, if either S&P or Moody’s have at any time after the Effective
Date established ratings with respect to Index Debt of the Borrower, the “Applicable Rate”
shall instead at all times thereafter be equal to the applicable percentage rate per annum
set forth on the table below, based upon the ratings by S&P and Moody’s, respectively,
applicable at such time to the Index Debt:

	 	 	 	 	 	 	 	 	 
	Index Debt Rating:	 	Index Debt Rating:	 	 	 	 	 	 
	S&P	 	Moody’s	 	ABR Spread	 	Eurodollar Spread	 	Facility Fee Rate
	Greater than or 

equal to A-
	 	Greater than or

equal to A3
	 	0.000%
	 	0.300%
	 	0.070%
	BBB+
	 	Baa1
	 	0.000%
	 	0.400%
	 	0.080%
	BBB
	 	Baa2
	 	0.000%
	 	0.500%
	 	0.100%
	BBB-
	 	Baa3
	 	0.000%
	 	0.625%
	 	0.125%
	less than BBB-
	 	less than Baa3
	 	0.000%
	 	0.875%
	 	0.175%

provided, however, that if at any time the Facility Usage is greater than
50% of the aggregate amount of the Lender’s Commitments at such time, then the Applicable
Margin with respect to Eurodollar Loans determined with reference to the table above will be
increased 0.125%.

3

 

For purposes of the foregoing, (a) if either Moody’s or S&P shall not have in effect a
rating for the Index Debt (other than by reason of the circumstances referred to in the last
sentence of this definition), then such rating agency shall be deemed to have established a
rating as set forth in the bottom row of the table above; (b) if the ratings established or
deemed to have been established by Moody’s and S&P for the Index Debt shall fall within
different categories, the Applicable Margin shall be based on the higher of the two ratings
unless one of the two ratings is two or more categories lower than the other, in which case
the Applicable Rate shall be determined by reference to the category next above that of the
lower of the two ratings; and (c) if the ratings established or deemed to have been
established by Moody’s and S&P for the Index Debt shall be changed (other than as a result
of a change in the rating system of Moody’s or S&P), such change shall be effective as of
the date on which it is first announced by the applicable rating agency, irrespective of
when notice of such change shall have been furnished by the Borrower to the Administrative
Agent and the Lenders. Each change in the Applicable Rate shall apply during the period
commencing on the effective date of such change and ending on the date immediately preceding
the effective date of the next such change. If the rating system of Moody’s or S&P shall
change, or if either such rating agency shall cease to be in the business of rating
corporate debt obligations, the Borrower and the Lenders shall negotiate in good faith to
amend the definition of “Applicable Rate” to reflect such changed rating system or the
unavailability of ratings from such rating agency and, pending the effectiveness of any such
amendment, the Applicable Rate shall be determined by reference to the rating most recently
in effect prior to such change or cessation.”

““Consolidated EBIT” means, for any period, on a consolidated basis for the Borrower
and its Subsidiaries, the sum of the amounts for such period, without duplication, of: (a)
Consolidated Net Income, plus (b) charges against income for foreign, federal, state, and
local taxes, to the extent deducted in computing Consolidated Net Income, plus (c)
Consolidated Interest Expense, plus (d) extraordinary or non-recurring non-cash losses to
the extent deducted in computing Consolidated Net Income, plus (e) non-cash stock
compensation expense recorded in accordance with FASB Statement 123R, which the Borrower
adopted as of January 1, 2006, to the extent deducted in computing Consolidated Net Income,
minus (f) extraordinary or non-recurring non-cash gains to the extent included in computing
Consolidated Net Income, calculated on a rolling four-quarter basis for covenant compliance
purposes.”

““Consolidated EBITDA” means, for any period, on a consolidated basis for the
Borrower and its Subsidiaries, the sum of the amounts for such period, without duplication,
of: (a) Consolidated Net Income, plus (b) charges against income for foreign, federal,
state, and local taxes, to the extent deducted in computing Consolidated Net Income, plus
(c) Consolidated Interest Expense, plus (d) depreciation expense, to the extent deducted in
computing Consolidated Net Income, plus (e) amortization expense, including, without
limitation, amortization of goodwill, other intangible assets and Transaction Expenses, to
the extent deducted in computing Consolidated Net Income, plus (f) extraordinary or
non-recurring non-cash losses to the extent deducted in computing Consolidated Net Income,
plus (g) non-cash stock compensation expense recorded in accordance with FASB Statement
123R, which the Borrower adopted as of

4

 

January 1, 2006, to the extent deducted in computing Consolidated Net Income, minus (h)
extraordinary or non-recurring non-cash gains to the extent included in computing
Consolidated Net Income, calculated on a rolling four-quarter basis for covenant compliance
purposes.”

No term, covenant or provision of the Credit Agreement or any other Credit Document is intended to
be amended hereby except to the extent specifically set forth above in this Section 1.

     SECTION 3. Conditions to Effectiveness. This Amendment shall become effective as of the date
first set forth above when and if each of the conditions set forth in this Section 3 shall have
been satisfied:

     (a) Amendment. This Amendment shall have been duly executed and delivered by the Borrower,
each Guarantor, the Administrative Agent and each Lender.

     (b) Board Resolutions. The Administrative Agent shall have received a copy of the resolutions
of the Board of Directors of the Borrower authorizing the execution, delivery and performance of
(i) this Amendment and the Credit Agreement as amended hereby and (ii) any related agreements, in
each case certified by the Secretary or Assistant Secretary of the Borrower as of the date hereof,
together with a certificate of the Secretary or Assistant Secretary of the Borrower as to the
incumbency and signature of the officers of the Borrower executing such Credit Documents and any
certificate or other documents to be delivered by them pursuant hereto, together with evidence of
the incumbency of such Secretary or Assistant Secretary.

     (c) Organization. The Administrative Agent shall have received (i) a copy of the Certificate
of Incorporation of the Borrower certified as of a recent date by the Secretary of State of the
State of Delaware and (ii) a copy of the bylaws of the Borrower certified by the Secretary or
Assistant Secretary thereof; provided that in lieu of providing such Certificate of
Incorporation and bylaws, such Secretary or Assistant Secretary may certify that there have been no
amendments or other modifications thereto on or after the Effective Date.

     (d) Officer’s Certificate. The Administrative Agent shall have received an executed
certificate of an officer of the Borrower, satisfactory in form and substance to the Administrative
Agent, certifying that (i) the representations and warranties contained herein, in the Credit
Agreement and in the other Credit Documents to which the Borrower is a party are true and correct
in all respects on and as of the date hereof, except to the extent that any such representation or
warranty relates to a specific earlier date (in which case such representation or warranty was true
and correct in all respects on and as of such earlier date); (ii) the Borrower is in compliance
with all of the terms and provisions set forth herein, in the Credit Agreement and in the other
Credit Documents to which it is a party; (iii) no Default or Event of Default has occurred and is
continuing, and no material adverse change has occurred since the Effective Date in the business,
assets, liabilities, operations or condition, financial or otherwise, of the Borrower or the
Borrower’s subsidiaries; and (iv) the Borrower is, both before and after giving effect to the
transactions contemplated by this Amendment, Solvent.

     (e) Absence of Default. No Default or Event of Default shall have occurred and be continuing,
and no material adverse change shall have occurred since the Effective Date in the

5

 

business, assets, liabilities, operations or condition, financial or otherwise, of the
Borrower or the Borrower’s subsidiaries.

     (f) Legal Restraints/Litigation. As of the date hereof, there shall be no: (i) litigation,
investigation or proceeding (judicial or administrative) pending or threatened against the Borrower
or its assets, by any agency, division or department of any county, city, state or federal
government arising out of this Amendment, the Credit Agreement as amended hereby or the other
Credit Documents; (ii) injunction, writ or restraining order restraining or prohibiting the
financing arrangements contemplated under this Amendment, the Credit Agreement as amended hereby or
the other Credit Documents; or (iii) suit, action, investigation or proceeding (judicial or
administrative) pending against the Borrower or its assets, which, if adversely determined, could
have a material adverse effect on the business, assets, liabilities, operations or condition,
financial or otherwise, of the Borrower or the Borrower’s subsidiaries.

     (g) Fees. The Borrower shall have paid (i) to the Administrative Agent, for its own account
or for that of the Lenders, as applicable, fees payable in the amounts and at the times separately
agreed upon in writing between the Borrower and the Administrative Agent and (ii) to counsel to the
Administrative Agent, its fees, charges, and expenses to the extent reflected in a statement of
such counsel rendered to the Borrower on or prior to the date hereof.

     SECTION 4. Representations and Warranties. As a material inducement to the Lenders to enter
into this Amendment, the Borrower hereby represents and warrants to the Lenders as follows (in each
case after giving effect to this Amendment):

     (a) Authorization; Enforceability. Execution, delivery and performance by the Borrower of
this Amendment and the Credit Agreement as amended hereby have been duly authorized by all
necessary corporate action. This Amendment has been duly executed and delivered by the Borrower.
This Amendment and the Credit Agreement as amended hereby constitute the legal, valid and binding
obligations of the Borrower, enforceable in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity, regardless of whether considered in a
proceeding in equity or at law.

     (b) Representations and Warranties The representations and warranties of the Borrower and its
Subsidiaries set forth in the Credit Agreement and the other Credit Documents are true and correct
in all material respects on and as of the date of execution and delivery of this Amendment (other
than representations and warranties that by the specific terms thereof apply only as of an earlier
date, which representations and warranties shall be true and correct on and as of such earlier
date).

     (c) No Default or Event of Default. On and as of the date of execution and delivery of this
Amendment by the parties hereto, and immediately after giving effect thereto, no Default or Event
of Default has occurred or is continuing.

     SECTION 5. Miscellaneous.

     (a) Ratification and Confirmation. The terms, provisions, conditions and covenants of the
Credit Agreement, as amended by the amendments expressly set forth above, and the other

6

 

Credit Documents remain in full force and effect and are hereby ratified and confirmed, and
the execution, delivery and performance of this Amendment shall not in any manner operate as a
waiver of, consent to or, except as expressly set forth herein, amendment of any term, provision,
condition or covenant thereof.

     (b) Headings. Section and subsection headings in this Amendment are included herein for
convenience of reference only and shall not constitute a part of this Amendment for any other
purpose or be given any substantive effect.

     (c) APPLICABLE LAW. THE LAWS OF THE STATE OF TEXAS (OTHER THAN CONFLICT-OF-LAW PROVISIONS
THEREOF) SHALL GOVERN THE RIGHTS AND DUTIES OF THE PARTIES TO THIS AMENDMENT AND THE VALIDITY,
CONSTRUCTION, ENFORCEMENT AND INTERPRETATION THEREOF.

     (d) Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed and delivered
shall be deemed an original, but all such counterparts together shall constitute but one and the
same instrument; signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to the same document.
Delivery of this Amendment may be made by facsimile or electronic transmission of a duly executed
counterpart copy hereof.

     (e) Affirmation of Obligations. Notwithstanding that such consent is not required under the
Guaranty Agreement, each of the Guarantors consents to the execution, delivery and performance of
this Amendment and the Credit Agreement as amended hereby. As a material inducement to the
undersigned Lenders to enter into this Amendment, each of the Guarantors (i) acknowledges and
confirms the continuing existence, validity and effectiveness of the Guaranty Agreement and (ii)
agrees that the execution, delivery and performance of this Amendment and the Credit Agreement as
amended hereby shall not in any way release, diminish, impair, reduce or otherwise affect its
obligations thereunder.

     (f) FINAL AGREEMENT. THIS AMENDMENT, THE CREDIT AGREEMENT AS AMENDED HEREBY AND THE OTHER
CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[Remainder of this page blank; signature pages follow]

7

 

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

	 	 	 	 	 
	 	 	PEROT SYSTEMS CORPORATION
	 
	 	 	 	 
	 

	 	By:	 	/s/ Russell Freeman
	 

	 	 	 	 
	 

	 	 	 	Name: Russell Freeman
	 

	 	 	 	Title:   Vice President & CFO
	 
	 	 	 	 
	 

	 	By:	 	/s/ Elizabeth Whitmer
	 

	 	 	 	 
	 

	 	 	 	Name: Elizabeth Whitmer
	 

	 	 	 	Title:   Treasurer
	 
	 	 	 	 
	 	 	JPMORGAN CHASE BANK, as Administrative
 Agent and as a
Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mae Reeves
	 

	 	 	 	 
	 

	 	 	 	Name: Mae Reeves
	 

	 	 	 	Title:   Vice President
	 
	 	 	 	 
	 	 	KEYBANK NATIONAL ASSOCIATION, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:
	 
	 	 	 	 
	 	 	SUNTRUST BANK, as a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Daniel S. Komitor
	 

	 	 	 	 
	 

	 	 	 	Name: Daniel S. Komitor
	 

	 	 	 	Title:   Director

Signature Page to First Amendment to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., as a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Zach Johnson
	 

	 	 	 	 
	 

	 	 	 	Name: Zach Johnson
	 

	 	 	 	Title: Senior Vice President
	 
	 	 	 	 
	 	 	WACHOVIA BANK, N.A.,

as a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Julia Harman
	 

	 	 	 	 
	 

	 	 	 	Name: Julia Harman
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 	 	COMERICA BANK,

as a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Mark B. Grover
	 

	 	 	 	 
	 

	 	 	 	Name: Mark B. Grover
	 

	 	 	 	Title: First Vice President
	 
	 	 	 	 
	 	 	AMEGY BANK NATIONAL ASSOCIATION,

as a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Melinda N. Jackson
	 

	 	 	 	 
	 

	 	 	 	Name: Melinda N. Jackson
	 

	 	 	 	Title: Senior Vice President
	 
	 	 	 	 
	 	 	BANK OF TEXAS, N.A.,

as a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Ryan Suchala
	 

	 	 	 	 
	 

	 	 	 	Name: Ryan Suchala
	 

	 	 	 	Title: Vice President

Signature Page to First Amendment to Amended and Restated Credit Agreement

 

 

	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ D. Barnell
	 

	 	 	 	 
	 

	 	 	 	Name: D. Barnell
	 

	 	 	 	Title: VP & Manager
	 
	 	 	 	 
	 	 	BANK HAPOALIM B.M.,

as a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Helen H. Gateson
	 

	 	 	 	 
	 

	 	 	 	Name: Helen H. Gateson
	 

	 	 	 	Title: Vice President
	 
	 	 	 	 
	 
	 	 	 	 
	 

	 	By:	 	/s/ Charles McLaughlin
	 

	 	 	 	 
	 

	 	 	 	Name: Charles McLaughlin
	 

	 	 	 	Title: Senior Vice President
	 
	 	 	 	 
	 	 	MIZUHO CORPORATE BANK, LTD.,

as a Lender
	 
	 	 	 	 
	 

	 	By:	 	/s/ Bertram H. Tang
	 

	 	 	 	 
	 

	 	 	 	Name: Bertram H. Tang
	 

	 	 	 	Title: Senior Vice President &
Team Leader

Signature Page to First Amendment to Amended and Restated Credit Agreement

 

 

SUBSIDIARY GUARANTORS (for purposes of Section 5(e) hereof):

	 	 	 	 	 
	PEROT SYSTEMS HEALTHCARE SERVICES, LLC	 	 
	 
	 	 	 	 
	By:
	 	/s/ Rex C. Mills	 	 
	 

	 	 

Name: Rex C. Mills
	 	 
	 

	 	Title: Assistant Secretary	 	 
	 
	 	 	 	 
	PS CONNECTICUT, LLC	 	 
	 
	 	 	 	 
	By:
	 	/s/ Thomas D. Williams	 	 
	 

	 	 

Name: Thomas D. Williams
	 	 
	 

	 	Title: Vice President	 	 
	 
	 	 	 	 
	ADVANCED RECEIVABLES STRATEGY, INC.	 	 
	 
	 	 	 	 
	By:
	 	/s/ Thomas D. Williams	 	 
	 

	 	 

Name: Thomas D. Williams
	 	 
	 

	 	Title: Vice President	 	 
	 
	 	 	 	 
	PEROT SYSTEMS GOVERNMENT SERVICES, INC.	 	 
	 
	 	 	 	 
	By:
	 	Charles N. Bell	 	 
	 

	 	 

Name: Charles N. Bell
	 	 
	 

	 	Title: Assistant Secretary	 	 

Signature Page to First Amendment to Amended and Restated Credit Agreement

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