Document:

exv10w1

 

Ex 10.1

CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

AMENDED AND RESTATED LOAN AGREEMENT

among

TALX CORPORATION, a Missouri corporation

as Borrower

LASALLE BANK NATIONAL ASSOCIATION

as Administrative Agent

and

THE FROM TIME TO TIME LENDERS PARTY HERETO

Dated as of March 31, 2004

* Confidential portions of this agreement have been omitted pursuant to a
confidential treatment request and filed separately with the Securities and
Exchange Commission.

 

 

CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

TABLE OF CONTENTS

	 	 	 	 	 
	1. EFFECTIVE DATE
	 	 	1	 
	2. DEFINITIONS AND RULES OF CONSTRUCTION
	 	 	1	 
	2.1. LISTED DEFINITIONS
	 	 	1	 
	2.2. OTHER DEFINITIONS
	 	 	1	 
	2.3. REFERENCES TO COVERED PERSON
	 	 	1	 
	2.4. REFERENCES TO REQUIRED LENDERS
	 	 	2	 
	2.5. ACCOUNTING TERMS
	 	 	2	 
	2.6. MEANING OF SATISFACTORY
	 	 	2	 
	2.7. COMPUTATION OF TIME PERIODS
	 	 	2	 
	2.8. GENERAL
	 	 	2	 
	3. LENDERS’ COMMITMENTS
	 	 	3	 
	3.1. REVOLVING LOAN COMMITMENTS
	 	 	3	 
	3.1.1. AGGREGATE AMOUNT; REDUCTIONS
	 	 	3	 
	3.1.2. LIMITATION ON REVOLVING LOAN ADVANCES
	 	 	3	 
	3.1.3. REVOLVING NOTES
	 	 	3	 
	3.1.4. BORROWING BASE
	 	 	3	 
	3.1.5. ELIGIBLE ACCOUNTS
	 	 	4	 
	3.2. TERM LOAN COMMITMENTS
	 	 	5	 
	3.2.1. AGGREGATE TERM LOANS
	 	 	5	 
	3.2.1.1. AGGREGATE TERM LOAN A
	 	 	5	 
	3.2.1.2. AGGREGATE TERM B LOAN
	 	 	5	 
	3.2.2. TERM LOAN NOTES
	 	 	6	 
	3.3. LETTER OF CREDIT COMMITMENT
	 	 	6	 
	4. INTEREST
	 	 	6	 
	4.1. INTEREST ON DRAWS ON LETTERS OF CREDIT
	 	 	6	 
	4.2. INTEREST ON AGGREGATE LOANS
	 	 	6	 
	4.3. ADJUSTED BASE RATE
	 	 	7	 
	4.4. ADJUSTED EURODOLLAR RATE
	 	 	7	 
	4.5. BASE RATE MARGINS AND EURODOLLAR MARGINS
	 	 	7	 
	4.6. CONVERSION OF LOANS
	 	 	8	 
	4.7. INTEREST PERIODS FOR EURODOLLAR LOANS
	 	 	9	 
	4.8. TIME OF ACCRUAL
	 	 	9	 
	4.9. COMPUTATION
	 	 	9	 
	4.10. RATE AFTER MATURITY
	 	 	9	 
	5. FEES
	 	 	10	 
	5.1. COMMITMENT FEE
	 	 	10	 
	5.2. REVOLVING LOAN UNUSED FEE
	 	 	10	 
	5.3. LETTER OF CREDIT FEE
	 	 	11	 
	5.4. LETTER OF CREDIT FRONTING FEE
	 	 	11	 
	5.5. OTHER LETTER OF CREDIT FEES
	 	 	11	 
	5.6. ADMINISTRATIVE AGENT’S FEES
	 	 	11	 
	5.7. CALCULATION OF FEES
	 	 	11	 
	6. PAYMENTS
	 	 	11	 

i

 

CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

	 	 	 	 	 
	6.1. SCHEDULED PAYMENTS ON AGGREGATE REVOLVING LOAN
	 	 	11	 
	6.1.1. INTEREST
	 	 	11	 
	6.1.2. PRINCIPAL
	 	 	12	 
	6.2. SCHEDULED PAYMENTS ON TERM LOANS
	 	 	12	 
	6.2.1. INTEREST
	 	 	12	 
	6.2.2. PRINCIPAL
	 	 	12	 
	6.2.2.1. TERM LOAN A
	 	 	12	 
	6.2.2.2. TERM LOAN B
	 	 	13	 
	6.3. PREPAYMENTS
	 	 	13	 
	6.3.1. VOLUNTARY PREPAYMENTS
	 	 	13	 
	6.3.2. MANDATORY PREPAYMENTS WHEN OVER-ADVANCES EXIST
	 	 	14	 
	6.3.3. OTHER MANDATORY PREPAYMENTS
	 	 	14	 
	6.3.3.1. PROCEEDS FROM SALES OF ASSETS
	 	 	14	 
	6.3.3.2. PROCEEDS FROM SALE OF SECURITIES OR ISSUANCE OF INDEBTEDNESS
	 	 	15	 
	6.3.3.3. INSURANCE/CONDEMNATION PROCEEDS
	 	 	15	 
	6.3.3.4. EXCESS CASH FLOW
	 	 	16	 
	6.4. REIMBURSEMENT OBLIGATIONS OF BORROWER
	 	 	17	 
	6.5. MANNER OF PAYMENTS AND TIMING OF APPLICATION OF PAYMENTS
	 	 	17	 
	6.5.1. PAYMENT REQUIREMENT
	 	 	17	 
	6.5.2. APPLICATION OF PAYMENTS AND PROCEEDS
	 	 	17	 
	6.5.3. INTEREST CALCULATION
	 	 	17	 
	6.6. RETURNED INSTRUMENTS
	 	 	18	 
	6.7. COMPELLED RETURN OF PAYMENTS OR PROCEEDS
	 	 	18	 
	6.8. DUE DATES NOT ON BUSINESS DAYS
	 	 	18	 
	7. PROCEDURE FOR OBTAINING ADVANCES AND LETTERS OF CREDIT
	 	 	18	 
	7.1. INITIAL ADVANCES
	 	 	18	 
	7.2. SUBSEQUENT LOAN ADVANCES
	 	 	18	 
	7.2.1. BORROWER REQUESTS
	 	 	18	 
	7.2.2. ADMINISTRATIVE AGENT’S RIGHT TO MAKE OTHER REVOLVING LOAN ADVANCES
	 	 	19	 
	7.2.2.1. PAYMENT OF LOAN OBLIGATIONS
	 	 	19	 
	7.2.2.2. PAYMENTS TO OTHER CREDITORS
	 	 	19	 
	7.3. LETTERS OF CREDIT
	 	 	19	 
	7.4. FUNDINGS
	 	 	20	 
	7.4.1. REVOLVING ADVANCES
	 	 	20	 
	7.4.2. DRAWS ON LETTERS OF CREDIT
	 	 	20	 
	7.4.3. ALL FUNDINGS RATABLE
	 	 	20	 
	7.5. ADMINISTRATIVE AGENT’S AVAILABILITY ASSUMPTION
	 	 	20	 
	7.5.1. ASSUMPTION AS TO LENDERS
	 	 	20	 
	7.5.2. ASSUMPTION AS TO BORROWER
	 	 	21	 
	7.6. DISBURSEMENT
	 	 	22	 
	7.7. RESTRICTIONS ON ADVANCES
	 	 	22	 
	7.8. RESTRICTION ON NUMBER OF EURODOLLAR LOANS
	 	 	22	 
	7.9. EACH ADVANCE REQUEST AND LETTER OF CREDIT REQUEST A CERTIFICATION
	 	 	22	 
	7.10. REQUIREMENTS FOR EVERY ADVANCE REQUEST
	 	 	22	 
	7.11. REQUIREMENTS FOR EVERY LETTER OF CREDIT REQUEST
	 	 	23	 

ii

 

CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

	 	 	 	 	 
	7.12. EXONERATION OF ADMINISTRATIVE AGENT AND LENDERS
	 	 	23	 
	8. SECURITY AND GUARANTIES
	 	 	23	 
	8.1. SECURITY AGREEMENTS
	 	 	23	 
	8.2. PLEDGE AGREEMENTS
	 	 	23	 
	8.3. COLLATERAL ASSIGNMENTS
	 	 	24	 
	8.3.1. INTELLECTUAL PROPERTY ASSIGNMENTS
	 	 	24	 
	8.3.2. ACQUISITION DOCUMENTS ASSIGNMENT
	 	 	24	 
	8.4. GUARANTIES
	 	 	24	 
	8.5. ADDITIONAL SUBSIDIARIES
	 	 	24	 
	9. POWER OF ATTORNEY
	 	 	25	 
	10. CONDITIONS OF LENDING
	 	 	26	 
	10.1. CONDITIONS TO INITIAL ADVANCE
	 	 	26	 
	10.1.1. LISTED DOCUMENTS AND OTHER ITEMS
	 	 	26	 
	10.1.2. FINANCIAL CONDITION
	 	 	26	 
	10.1.3. NO DEFAULT
	 	 	26	 
	10.1.4. PERFECTION OF SECURITY INTERESTS
	 	 	26	 
	10.1.5. REPRESENTATIONS AND WARRANTIES
	 	 	27	 
	10.1.6. NO MATERIAL ADVERSE CHANGE
	 	 	27	 
	10.1.7. PENDING MATERIAL PROCEEDINGS
	 	 	27	 
	10.1.8. PAYMENT OF FEES AND EXPENSES
	 	 	27	 
	10.1.9. CURRENT ACQUISITIONS
	 	 	27	 
	10.1.10. INITIAL NET WORTH
	 	 	27	 
	10.1.11. INSURANCE
	 	 	27	 
	10.1.12. ENVIRONMENTAL
	 	 	27	 
	10.1.13. OTHER ITEMS
	 	 	27	 
	10.2. CONDITIONS TO SUBSEQUENT ADVANCES
	 	 	28	 
	10.2.1. GENERAL CONDITIONS
	 	 	28	 
	10.2.2. REPRESENTATIONS AND WARRANTIES
	 	 	28	 
	10.2.3. NO DEFAULT
	 	 	28	 
	10.2.4. BORROWING BASE CERTIFICATE
	 	 	28	 
	10.3. CONDITIONS TO ADVANCES FOR THE APPROVED ACQUISITIONS
	 	 	28	 
	10.3.1. APPROVED ACQUISITION DELIVERABLES
	 	 	28	 
	10.3.2. SATISFACTION OF CONDITIONS TO THE APPROVED ACQUISITIONS
	 	 	28	 
	10.3.3. ADDITIONAL SUBSIDIARIES
	 	 	29	 
	10.3.4. AUTHORITY TO CONSUMMATE THE APPROVED ACQUISITIONS
	 	 	30	 
	10.3.5. REQUEST TO FUND
	 	 	30	 
	11. CONDITIONS TO ISSUANCE OF LETTERS OF CREDIT
	 	 	30	 
	11.1. LETTER OF CREDIT APPLICATION/REIMBURSEMENT AGREEMENT
	 	 	30	 
	11.2. NO PROHIBITIONS
	 	 	30	 
	11.3. REPRESENTATIONS AND WARRANTIES
	 	 	31	 
	11.4. NO DEFAULT
	 	 	31	 
	11.5. OTHER CONDITIONS
	 	 	31	 
	12. REPRESENTATIONS AND WARRANTIES
	 	 	31	 
	12.1. ORGANIZATION AND EXISTENCE
	 	 	31	 
	12.2. AUTHORIZATION
	 	 	31	 
	12.3. DUE EXECUTION
	 	 	31	 

iii

 

CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

	 	 	 	 	 
	12.4. ENFORCEABILITY OF OBLIGATIONS
	 	 	31	 
	12.5. BURDENSOME OBLIGATIONS
	 	 	32	 
	12.6. LEGAL RESTRAINTS
	 	 	32	 
	12.7. LABOR CONTRACTS AND DISPUTES
	 	 	32	 
	12.8. NO MATERIAL PROCEEDINGS
	 	 	32	 
	12.9. MATERIAL LICENSES
	 	 	32	 
	12.10. COMPLIANCE WITH MATERIAL LAWS
	 	 	32	 
	12.10.1. GENERAL COMPLIANCE WITH ENVIRONMENTAL LAWS AND EMPLOYMENT LAWS
	 	 	32	 
	12.10.2. PROCEEDINGS
	 	 	32	 
	12.10.3. INVESTIGATIONS REGARDING HAZARDOUS MATERIALS
	 	 	32	 
	12.10.4. NOTICES AND REPORTS REGARDING HAZARDOUS MATERIALS
	 	 	33	 
	12.10.5. ENVIRONMENTAL PROPERTY TRANSFER ACTS
	 	 	33	 
	12.11. OTHER NAMES
	 	 	33	 
	12.12. CONSUMMATION OF CURRENT ACQUISITION, AND APPROVED ACQUISITIONS
	 	 	33	 
	12.13. PRIOR TRANSACTIONS
	 	 	34	 
	12.14. CAPITALIZATION
	 	 	34	 
	12.15. SOLVENCY
	 	 	34	 
	12.16. PROJECTIONS; PRO FORMA BALANCE SHEET
	 	 	34	 
	12.17. FINANCIAL STATEMENTS
	 	 	34	 
	12.18. NO CHANGE IN CONDITION
	 	 	35	 
	12.19. INVESTMENTS
	 	 	35	 
	12.20. INDEBTEDNESS
	 	 	35	 
	12.21. INDIRECT OBLIGATIONS
	 	 	35	 
	12.22. OPERATING LEASES
	 	 	35	 
	12.23. CAPITAL LEASES
	 	 	35	 
	12.24. TAX LIABILITIES; GOVERNMENTAL CHARGES
	 	 	35	 
	12.25. PENSION BENEFIT PLANS
	 	 	35	 
	12.25.1. PROHIBITED TRANSACTIONS
	 	 	35	 
	12.25.2. CLAIMS
	 	 	36	 
	12.25.3. REPORTING AND DISCLOSURE REQUIREMENTS
	 	 	36	 
	12.25.4. ACCUMULATED FUNDING DEFICIENCY
	 	 	36	 
	12.25.5. MULTI-EMPLOYER PLAN
	 	 	36	 
	12.26. WELFARE BENEFIT PLANS
	 	 	36	 
	12.27. RETIREE BENEFITS
	 	 	36	 
	12.28. DISTRIBUTIONS
	 	 	37	 
	12.29. REAL PROPERTY
	 	 	37	 
	12.30. STATE OF COLLATERAL AND OTHER PROPERTY
	 	 	37	 
	12.30.1. ACCOUNTS
	 	 	37	 
	12.30.2. INVENTORY
	 	 	38	 
	12.30.3. EQUIPMENT
	 	 	38	 
	12.30.4. INTELLECTUAL PROPERTY
	 	 	38	 
	12.30.5. DOCUMENTS, INSTRUMENTS AND CHATTEL PAPER
	 	 	39	 
	12.31. CHIEF PLACE OF BUSINESS; LOCATIONS OF COLLATERAL
	 	 	39	 
	12.32. NEGATIVE PLEDGES
	 	 	39	 
	12.33. SECURITY DOCUMENTS
	 	 	39	 

iv

 

CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

	 	 	 	 	 
	12.33.1. SECURITY AGREEMENTS
	 	 	39	 
	12.33.2. COLLATERAL ASSIGNMENTS
	 	 	40	 
	12.33.2.1. INTELLECTUAL PROPERTY ASSIGNMENTS
	 	 	40	 
	12.33.2.2. PLEDGE AGREEMENT
	 	 	40	 
	12.33.2.3. ACQUISITION DOCUMENTS ASSIGNMENT
	 	 	40	 
	12.34. S CORPORATION
	 	 	40	 
	12.35. SUBSIDIARIES AND AFFILIATES
	 	 	40	 
	12.36. BANK ACCOUNTS AND LOCKBOXES
	 	 	40	 
	12.37. MARGIN STOCK
	 	 	40	 
	12.38. SECURITIES MATTERS
	 	 	41	 
	12.39. INVESTMENT COMPANY ACT, ETC
	 	 	41	 
	12.40. NO MATERIAL MISSTATEMENTS OR OMISSIONS
	 	 	41	 
	12.41. FILINGS
	 	 	41	 
	12.42. BROKER’S FEES
	 	 	41	 
	12.43. NO HART-SCOTT RODINO FILING REQUIRED
	 	 	41	 
	12.44. ELIGIBILITY OF COLLATERAL
	 	 	42	 
	13. MODIFICATION AND SURVIVAL OF REPRESENTATIONS
	 	 	42	 
	14. AFFIRMATIVE COVENANTS
	 	 	42	 
	14.1. USE OF PROCEEDS
	 	 	42	 
	14.2. CORPORATE EXISTENCE
	 	 	43	 
	14.3. MAINTENANCE OF PROPERTY AND LEASES
	 	 	43	 
	14.4. INVENTORY
	 	 	43	 
	14.5. INSURANCE
	 	 	43	 
	14.6. PAYMENT OF TAXES AND OTHER OBLIGATIONS
	 	 	44	 
	14.7. COMPLIANCE WITH LAWS
	 	 	44	 
	14.8. DISCOVERY AND CLEAN-UP OF HAZARDOUS MATERIAL
	 	 	44	 
	14.8.1. IN GENERAL
	 	 	44	 
	14.8.2. ASBESTOS CLEAN-UP
	 	 	45	 
	14.9. TERMINATION OF PENSION BENEFIT PLAN
	 	 	45	 
	14.10. NOTICE TO ADMINISTRATIVE AGENT OF MATERIAL EVENTS
	 	 	46	 
	14.11. BORROWING OFFICER
	 	 	47	 
	14.12. MAINTENANCE OF SECURITY INTERESTS OF SECURITY DOCUMENTS
	 	 	47	 
	14.12.1. PRESERVATION AND PERFECTION OF SECURITY INTERESTS
	 	 	47	 
	14.12.2. COLLATERAL HELD BY WAREHOUSEMAN, BAILEE, ETC
	 	 	48	 
	14.12.3. COMPLIANCE WITH TERMS OF SECURITY DOCUMENTS
	 	 	48	 
	14.13. ACCOUNTING SYSTEM
	 	 	48	 
	14.13.1. ACCOUNT RECORDS
	 	 	48	 
	14.13.2. TRACING OF PROCEEDS
	 	 	48	 
	14.14. FINANCIAL STATEMENTS
	 	 	49	 
	14.14.1. ANNUAL FINANCIAL STATEMENTS
	 	 	49	 
	14.14.2. QUARTERLY FINANCIAL STATEMENTS
	 	 	49	 
	14.15. OTHER FINANCIAL INFORMATION
	 	 	50	 
	14.15.1. BORROWING BASE CERTIFICATE
	 	 	50	 
	14.15.2. OTHER REPORTS OR INFORMATION CONCERNING ACCOUNTS OR INVENTORY
	 	 	50	 
	14.15.3. STOCKHOLDER REPORTS
	 	 	50	 
	14.15.4. PENSION BENEFIT PLAN REPORTS
	 	 	50	 

v

 

CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

	 	 	 	 	 
	14.15.5. TAX RETURNS
	 	 	50	 
	14.16. REVIEW OF ACCOUNTS
	 	 	51	 
	14.17. INVENTORY
	 	 	51	 
	14.18. ANNUAL PROJECTIONS
	 	 	51	 
	14.19. OTHER INFORMATION
	 	 	51	 
	14.20. AUDITS BY ADMINISTRATIVE AGENT
	 	 	51	 
	14.21. VERIFICATION OF ACCOUNTS AND NOTICES TO ACCOUNT DEBTORS
	 	 	51	 
	14.22. APPRAISALS OF COLLATERAL
	 	 	52	 
	14.23. ACCESS TO OFFICERS AND AUDITORS
	 	 	52	 
	14.24. PROFORMAS FOR PERMITTED ACQUISITIONS
	 	 	52	 
	14.25. RATE AGREEMENT
	 	 	53	 
	14.26. ACQUISITION DOCUMENTS
	 	 	53	 
	14.27. FURTHER ASSURANCES
	 	 	54	 
	15. NEGATIVE COVENANTS
	 	 	54	 
	15.1. INVESTMENTS
	 	 	54	 
	15.2. INDEBTEDNESS
	 	 	55	 
	15.3. PREPAYMENTS
	 	 	55	 
	15.4. INDIRECT OBLIGATIONS
	 	 	56	 
	15.5. SECURITY INTERESTS
	 	 	56	 
	15.6. NO AMENDMENTS TO ACQUISITION DOCUMENTS
	 	 	57	 
	15.7. ACQUISITIONS
	 	 	57	 
	15.8. BAILMENTS; CONSIGNMENTS; WAREHOUSING
	 	 	58	 
	15.9. DISPOSAL OF PROPERTY
	 	 	58	 
	15.10. DISTRIBUTIONS
	 	 	58	 
	15.11. CHANGE OF CONTROL
	 	 	58	 
	15.12. AMENDMENT TO CHARTER DOCUMENTS
	 	 	59	 
	15.13. CAPITAL STRUCTURE; EQUITY SECURITIES
	 	 	59	 
	15.14. CHANGE OF BUSINESS
	 	 	59	 
	15.15. TRANSACTIONS WITH AFFILIATES
	 	 	59	 
	15.16. CONFLICTING AGREEMENTS
	 	 	59	 
	15.17. SALE AND LEASEBACK TRANSACTIONS
	 	 	59	 
	15.18. NEW SUBSIDIARIES
	 	 	59	 
	15.19. FISCAL YEAR
	 	 	60	 
	15.20. LEASES
	 	 	60	 
	15.21. TRANSACTIONS HAVING A MATERIAL ADVERSE EFFECT ON COVERED PERSON
	 	 	60	 
	16. FINANCIAL COVENANTS
	 	 	60	 
	16.1. SPECIAL DEFINITIONS
	 	 	60	 
	16.2. CAPITAL EXPENDITURES
	 	 	61	 
	16.3. MINIMUM FIXED CHARGE COVERAGE
	 	 	61	 
	16.4. MAXIMUM RATIO OF TOTAL INDEBTEDNESS TO EBITDA
	 	 	62	 
	16.5. MINIMUM NET WORTH
	 	 	62	 
	16.6. MINIMUM EBITDA
	 	 	63	 
	17. DEFAULT
	 	 	63	 
	17.1. EVENTS OF DEFAULT
	 	 	63	 
	17.1.1. FAILURE TO PAY PRINCIPAL OR INTEREST
	 	 	63	 
	17.1.2. FAILURE TO PAY AMOUNTS OWED TO OTHER PERSONS
	 	 	64	 

vi

 

CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

	 	 	 	 	 
	17.1.3. REPRESENTATIONS OR WARRANTIES
	 	 	64	 
	17.1.4. CERTAIN COVENANTS
	 	 	64	 
	17.1.5. OTHER COVENANTS
	 	 	64	 
	17.1.6. ACCELERATION OF OTHER INDEBTEDNESS
	 	 	64	 
	17.1.7. DEFAULT UNDER OTHER AGREEMENTS
	 	 	64	 
	17.1.8. BANKRUPTCY; INSOLVENCY; ETC
	 	 	64	 
	17.1.9. JUDGMENTS; ATTACHMENT; SETTLEMENT; ETC
	 	 	65	 
	17.1.10. PENSION BENEFIT PLAN TERMINATION, ETC
	 	 	65	 
	17.1.11. LIQUIDATION OR DISSOLUTION
	 	 	65	 
	17.1.12. SEIZURE OF ASSETS
	 	 	65	 
	17.1.13. RACKETEERING PROCEEDING
	 	 	66	 
	17.1.14. LOAN DOCUMENTS; SECURITY INTERESTS
	 	 	66	 
	17.1.15. LOSS TO COLLATERAL
	 	 	66	 
	17.1.16. GUARANTY; GUARANTOR
	 	 	66	 
	17.2. CROSS DEFAULT
	 	 	66	 
	17.3. RIGHTS AND REMEDIES
	 	 	66	 
	17.3.1. TERMINATION OF COMMITMENTS
	 	 	66	 
	17.3.2. ACCELERATION
	 	 	66	 
	17.3.3. RIGHT OF SETOFF
	 	 	67	 
	17.3.4. NOTICE TO ACCOUNT DEBTORS
	 	 	67	 
	17.3.5. ENTRY UPON PREMISES AND ACCESS TO INFORMATION
	 	 	67	 
	17.3.6. COMPLETION OF UNCOMPLETED INVENTORY ITEMS
	 	 	68	 
	17.3.7. BORROWER’S OBLIGATIONS
	 	 	68	 
	17.3.8. SECURED PARTY RIGHTS
	 	 	68	 
	17.3.9. JOINT AND SEVERAL
	 	 	69	 
	17.3.10. MISCELLANEOUS
	 	 	69	 
	17.4. APPLICATION OF FUNDS
	 	 	69	 
	17.5. LIMITATION OF LIABILITY; WAIVER
	 	 	70	 
	17.6. NOTICE
	 	 	70	 
	18. ADMINISTRATIVE AGENT AND LENDERS
	 	 	70	 
	18.1. APPOINTMENT, POWERS, AND IMMUNITIES
	 	 	70	 
	18.2. RELIANCE BY ADMINISTRATIVE AGENT
	 	 	71	 
	18.3. EMPLOYMENT OF AGENTS AND COUNSEL
	 	 	71	 
	18.4. DEFAULTS
	 	 	71	 
	18.5. RIGHTS AS LENDER
	 	 	72	 
	18.6. INDEMNIFICATION
	 	 	72	 
	18.7. NOTIFICATION OF LENDERS
	 	 	72	 
	18.8. NON-RELIANCE ON AGENT AND OTHER LENDERS
	 	 	73	 
	18.9. RESIGNATION
	 	 	73	 
	18.10. COLLECTIONS AND DISTRIBUTIONS TO LENDERS BY ADMINISTRATIVE AGENT
	 	 	74	 
	19. CHANGE IN CIRCUMSTANCES
	 	 	74	 
	19.1. COMPENSATION FOR INCREASED COSTS AND REDUCED RETURNS
	 	 	74	 
	19.1.1. LAW CHANGES OR TAX IMPOSITIONS
	 	 	74	 
	19.1.2. CAPITAL ADEQUACY
	 	 	75	 
	19.1.3. NOTICE TO BORROWER
	 	 	75	 
	19.2. MARKET FAILURE
	 	 	76	 

vii

 

CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

	 	 	 	 	 
	19.3. ILLEGALITY
	 	 	76	 
	19.4. COMPENSATION
	 	 	76	 
	19.5. TREATMENT OF AFFECTED LOANS
	 	 	77	 
	19.6. TAXES
	 	 	77	 
	19.6.1. GROSS-UP
	 	 	77	 
	19.6.2. LENDERS’ UNDERTAKINGS
	 	 	78	 
	19.6.3. SURVIVAL OF BORROWER’S OBLIGATIONS
	 	 	79	 
	19.7. USURY
	 	 	79	 
	20. GENERAL
	 	 	80	 
	20.1. LENDERS’ RIGHT TO CURE
	 	 	80	 
	20.2. RIGHTS NOT EXCLUSIVE
	 	 	80	 
	20.3. SURVIVAL OF AGREEMENTS
	 	 	80	 
	20.4. ASSIGNMENTS
	 	 	80	 
	20.4.1. PERMITTED ASSIGNMENTS
	 	 	80	 
	20.4.2. CONSEQUENCES AND EFFECT OF ASSIGNMENTS
	 	 	81	 
	20.4.3. AGREEMENTS UPON ASSIGNMENT
	 	 	81	 
	20.4.4. REGISTER
	 	 	82	 
	20.4.5. NOTICE TO BORROWER OF ASSIGNMENT
	 	 	82	 
	20.4.6. ASSIGNMENT TO FEDERAL RESERVE BANK
	 	 	83	 
	20.5. SALE OF PARTICIPATIONS
	 	 	83	 
	20.6. EXCLUSIVITY
	 	 	83	 
	20.7. INFORMATION
	 	 	83	 
	20.8. PAYMENT OF EXPENSES
	 	 	83	 
	20.9. GENERAL INDEMNITY
	 	 	84	 
	20.10. LETTERS OF CREDIT
	 	 	85	 
	20.11. CHANGES IN ACCOUNTING PRINCIPLES
	 	 	85	 
	20.12. LOAN RECORDS
	 	 	86	 
	20.13. OTHER SECURITY AND GUARANTIES
	 	 	86	 
	20.14. LOAN OBLIGATIONS PAYABLE IN DOLLARS
	 	 	87	 
	21. MISCELLANEOUS
	 	 	87	 
	21.1. NOTICES
	 	 	87	 
	21.2. AMENDMENTS AND MODIFICATIONS; WAIVERS AND CONSENTS
	 	 	87	 
	21.3. RIGHTS CUMULATIVE
	 	 	88	 
	21.4. SUCCESSORS AND ASSIGNS
	 	 	88	 
	21.5. SEVERABILITY
	 	 	88	 
	21.6. COUNTERPARTS
	 	 	88	 
	21.7. GOVERNING LAW; NO THIRD PARTY RIGHTS
	 	 	88	 
	21.8. COUNTERPART FACSIMILE EXECUTION
	 	 	89	 
	21.9. EFFECT OF MERGER OF BANK
	 	 	89	 
	21.10. NEGOTIATED TRANSACTION
	 	 	89	 
	21.11. CHOICE OF FORUM
	 	 	89	 
	21.12. SERVICE OF PROCESS
	 	 	90	 
	21.13. WAIVER OF JURY TRIAL
	 	 	90	 
	21.14. INCORPORATION BY REFERENCE
	 	 	91	 
	21.15. PATRIOT ACT NOTIFICATION
	 	 	91	 
	21.16.
STATUTORY NOTICE - INSURANCE
	 	 	91	 

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CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

	 	 	 	 	 
	21.17.
STATUTORY NOTICE - ORAL COMMITMENTS
	 	 	91	 

ix

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

AMENDED AND RESTATED LOAN AGREEMENT

     In consideration of the mutual agreements herein and other sufficient
consideration, the receipt of which is hereby acknowledged, TALX Corporation, a
Missouri corporation (Borrower), and LaSalle Bank National Association
(LaSalle), as Administrative Agent, and LaSalle and the other lenders listed on
Exhibit 3 to this Amended and Restated Loan Agreement (Agreement), as Lenders,
agree as follows:

     The Borrower, LaSalle and Southwest Bank of St. Louis (Southwest) entered
into that certain Loan Agreement dated March 27, 2002 (Initial Loan Agreement),
as amended by that First Amendment to Loan Agreement dated July 29, 2002 among
Borrower, LaSalle and Southwest (First Amendment), as further amended by that
Second Amendment to Loan Agreement dated January 27, 2003 among Borrower,
LaSalle and Southwest (Second Amendment), as further amended by that Third
Amendment to Loan Agreement dated June 30, 2003 among Borrower, LaSalle and
Southwest (Third Amendment) (collectively, the Initial Loan Agreement, as so
amended by the First Amendment, Second Amendment and Third Amendment, is
referred to herein as the Original Loan Agreement). The Borrower, in order to
finance the Current Acquisition, in order to arrange financing for the Approved
Acquisitions and in order to refinance the existing Indebtedness under the
Original Loan Agreement, hereby requests that the aggregate commitments
available under the Original Loan Agreement be increased and that certain
additional amendments be made to the Original Loan Agreement and, for the sake
of clarity and convenience, that the Original Loan Agreement be restated in its
entirety as so amended. From the Effective Date (defined below), all
references made to the Original Loan Agreement in any Loan Document or in any
other instrument or document shall, without more, be deemed to refer to this
Agreement.

1. Effective Date. This Agreement is effective March 31, 2004.

2. Definitions and Rules of Construction.

2.1. Listed Definitions. Capitalized words defined in the Glossary
attached hereto as Exhibit 2.1 shall have such defined meanings wherever
used in this Agreement and the other Loan Documents. The inclusion of a
defined term in the Glossary that is not used elsewhere in this Agreement
or in the other Loan Documents shall not affect the interpretation or
construction of this Agreement or the other Loan Documents.

2.2. Other Definitions. If a capitalized word in this Agreement is not
defined in the Glossary, it shall have such meaning as defined elsewhere
herein, or if not defined elsewhere herein, the meaning defined in the
UCC. Terms are italicized in this Agreement where they are defined.

2.3. References to Covered Person. The words Covered Person, a Covered
Person, any Covered Person, each Covered Person and every Covered Person
refer to Borrower and each of its now existing or later
acquired, created or organized Subsidiaries separately. The words Covered
Persons refers to Borrower and its now existing or later acquired,
created or organized Subsidiaries collectively.

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

2.4. References to Required Lenders. The words Required Lenders means
any one or more Lenders whose shares of Lenders’ Exposure at the relevant
time aggregate at least sixty six and two-thirds percent (66 2/3%).

2.5. Accounting Terms. Unless the context otherwise requires, accounting
terms herein that are not defined herein shall be determined under GAAP.
All financial measurements contemplated hereunder respecting Borrower
shall be made and calculated for Borrower and all of its now existing or
later acquired, created or organized Subsidiaries, if any, on a
consolidated and consolidating basis in accordance with GAAP unless
expressly provided otherwise herein.

2.6. Meaning of Satisfactory. Whenever herein a document or matter is
required to be satisfactory to Administrative Agent or satisfactory to
Lenders or satisfactory to Required Lenders, unless expressly stated
otherwise such document must be satisfactory to Administrative Agent,
Lenders or Required Lenders (as applicable) in both form and substance,
and unless expressly stated otherwise Administrative Agent, Lenders or
Required Lenders (as applicable) shall have the commercially reasonable
discretion to determine whether the document or matter is satisfactory.

2.7. Computation of Time Periods. In computing or defining periods of
time from a specified date to a later specified date, and in computing
the accrual of interest or fees, the word from shall mean from and
including and the words to and until shall each mean to but excluding.
Periods of days referred to in this Agreement shall be counted in
calendar days unless Business Days are expressly prescribed, and
references in this Agreement to months and years are to calendar months
and calendar years unless otherwise specified.

2.8. General. Unless the context of this Agreement clearly requires
otherwise: (i) references to the plural include the singular and vice
versa; (ii) references to any Person include such Person’s successors and
assigns but, if applicable, only if such successors and assigns are
permitted by this Agreement; (iii) references to one gender include all
genders; (iv) including is not limiting; (v) or has the inclusive meaning
represented by the phrase and/or; (vi) the words hereof, herein, hereby,
hereunder and similar terms in this Agreement refer to this Agreement as
a whole, including its Exhibits, and not to any particular provision of
this Agreement; (vii) the word Section or section and Page or page refer
to a section or page, respectively, of, and the word Exhibit refers to an
Exhibit to, this Agreement unless it expressly refers to something else;
(viii) reference to any agreement, document, or instrument (including
this Agreement and any other Loan Document or other agreement, document
or instrument defined herein), means such agreement, document, or
instrument as amended, modified, restated or replaced and in effect from
time to time in accordance with the terms thereof
and, if applicable, the terms hereof, and includes all attachments,
exhibits and schedules thereto and documents incorporated therein, if
any; and (ix) general and specific references to any Law means such Law
as amended, modified, codified or reenacted, in whole or in part, and in
effect from time to time. Section captions and the Table of Contents are
for convenience only and shall not affect the interpretation or
construction of this Agreement or the other Loan Documents.

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

3. Lenders’ Commitments. Subject to the terms and conditions hereof, and in
reliance upon the Representations and Warranties, Lenders make the following
commitments to Borrower:

3.1. Revolving Loan Commitments.

3.1.1. Aggregate Amount. Subject to the limitations in Section
3.1.2 and elsewhere herein, each Lender commits to make available
to Borrower, from the Effective Date to the Revolving Loan Maturity
Date, such Lender’s pro-rata share (as listed on Exhibit 3 hereto)
of an Aggregate Revolving Loan Commitment of $15,000,000.00, by
funding such Lender’s pro-rata share of Revolving Loan Advances
made from time to time by Administrative Agent as provided herein.
Subject to the limitations in Section 3.1.2 and elsewhere herein,
payments and prepayments that are applied to reduce the Aggregate
Revolving Loan may be re-borrowed through Revolving Loan Advances.

3.1.2. Limitation on Revolving Loan Advances. No Revolving Loan
Advance will be made which would result in the sum of the Aggregate
Revolving Loan and the Letter of Credit Exposure on any Advance
Date (except to the extent that a Revolving Loan Advance will be
used immediately to reimburse Letter of Credit Issuer for
unreimbursed draws on a Letter of Credit) exceeding the lesser of
(i) the Aggregate Revolving Loan Commitment and (ii) the Borrowing
Base and no Revolving Loan Advance will be made on or after the
Revolving Loan Maturity Date. Lenders may, however, in their
absolute discretion make such Revolving Loan Advances, but shall
not be deemed by doing so to have increased the Maximum Available
Amount and shall not be obligated to make any such Revolving Loan
Advances thereafter. At any time that there is an Existing Default,
the Aggregate Revolving Loan Commitment may be canceled as provided
in Section 17.3. The Maximum Available Amount on any date shall be
a Dollar amount equal to the lesser of (i) the Aggregate Revolving
Loan Commitment and (ii) the Borrowing Base on such date, minus (a)
the amount outstanding under the Aggregate Revolving Loan on such
date, and (b) the Letter of Credit Exposure on such date (except to
the extent that a Revolving Loan Advance will be used immediately
to reimburse Letter of Credit Issuer for unreimbursed draws on a
Letter of Credit).

3.1.3. Revolving Notes. The obligation of Borrower to repay each
Lender’s Revolving Loan shall be evidenced by a promissory note
payable to the order of such Lender in a maximum principal amount
equal to the amount of its Revolving Loan Commitment and otherwise
in form and substance satisfactory to Lenders.

3.1.4. Borrowing Base. The Borrowing Base on any date shall be 75%
of the sum of all Eligible Accounts on the financial statements of
the Borrower as of the close of business on such date, or as
certified in the Borrowing Base Certificate most recently furnished
to Administrative Agent as required in Section 14.15.1, whichever
is less.

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

3.1.5. Eligible Accounts. Eligible Accounts include all Accounts
of all Covered Persons, less Accounts arising out of the UC
Business, plus Eligible UC Business Accounts other than the
following, unless approved in writing by Administrative Agent in
each case: (i) any Account with respect to which Administrative
Agent does not have a valid and enforceable, first priority,
perfected Security Interest, or any Account in which any Person
other than Administrative Agent has a Security Interest; (ii) any
Account which remains unpaid as of 120 days after the original date
of the applicable invoice; (iii) any Account of a single Account
Debtor if 35% or more of the balances due on all Accounts of such
Account Debtor are ineligible under clause (ii); (iv) any Account
with respect to which the Account Debtor is an Affiliate or
employee of Borrower or any Covered Person; (v) any Account as to
which the perfection of Administrative Agent’s Security Interest is
governed by any federal, state or local statutory requirements
other than those of the UCC or the Claims Act; (vi) any Account(s)
with respect to which the Account Debtor is the United States of
America or any state or any department, agency, public corporation
or other instrumentality thereof, to the extent the aggregate
balance of such Accounts is greater than $450,000; (vii) any
Account(s) with respect to which the Account Debtor is not a Person
formed pursuant to the law of the United States or any state
located in the United States and does not maintain its chief
executive office within the United States and any Account with
respect to which the Account Debtor is the government of any
foreign country or any municipality or other political subdivision
thereof, or any department, agency, public corporation or other
instrumentality thereof, to the extent the aggregate balance of
such Accounts is greater than $50,000; (viii) any Account with
respect to goods or services whose delivery or performance has been
rejected by the Account Debtor or whose earlier acceptance has been
revoked; (ix) any Account arising from the delivery of goods or

performance of services for which an invoice has not been sent to
the Account Debtor within (a) fifteen days after the end of the
month in which such goods or services were delivered or performed
or (b) fifteen days after the end of the contractual billing cycle,
whichever of the aforesaid (a) or (b) is applicable to such
Account; (x) any Account owing by an Account Debtor that is the
subject of a bankruptcy or similar insolvency proceeding, has made
an assignment for the benefit of creditors, has
acknowledged that it is unable to pay its debts as they mature, or
whose assets have been transferred to a receiver or trustee, or who
has ceased business as a going concern; (xi) any Account owing by
an Account Debtor that has disputed liability or made any claim
with respect to any other Account due from such Account Debtor, or
that has any right of setoff against such Account, or to which the
applicable Covered Person is indebted in any way, but only to the
extent of such indebtedness, setoff, dispute or claim; (xii) any
Account subject to a chargeback from a volume discount or an
advertising discount, but only to the extent of such chargeback or
discount; (xiii) any Account with respect to which the delivery of
goods or performance of services is bonded; (xiv) any Account as to
which Administrative Agent does not have the right or ability to
obtain direct payment to Administrative Agent; (xv) any Account
with respect to which any of the covenants and agreements contained
in any of the Loan Documents or any of

4

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

the Representations and
Warranties are not or have ceased to be complete and correct in all
material respects or have been breached; (xvi) any Account with
respect to which, in whole or in part, a check or other instrument
for the payment of money has been received, presented for payment
and returned uncollected for any reason, but only to the extent
such payment remains uncollected; (xvii) any Account which
represents a progress billing, other than the Eligible UC Business
Accounts, or as to which the applicable Covered Person has extended
the time for payment without the consent of Administrative Agent
(for purposes hereof, progress billing being any invoice for goods
sold or leased or services rendered under a contract or agreement
pursuant to which the Account Debtor’s obligation to pay such
invoice is conditioned upon the applicable Covered Person’s
completion of any further performance under the contract or
agreement but shall not include any invoices rendered under such
contracts or agreements to the extent the Account Debtor is
obligated to pay for services which have been rendered); (xviii)
any Account which is evidenced by a promissory note or other
instrument or by chattel paper or which has been reduced to
judgment; and (xix) any Account which arises out of a sale not made
in the ordinary course of the applicable Covered Person’s business.

3.2. Term Loan Commitments.

3.2.1. Aggregate Term Loans.

3.2.1.1. Aggregate Term Loan A. Each Lender commits to make
available to Borrower such Lender’s pro-rata share (as listed
on Exhibit 3 hereto) of an Aggregate Term Loan A Commitment
of $58,000,000.00 by funding such Lender’s pro-rata share of
(i) the initial Term Loan A Advance (Initial Term Loan A
Advance) by Administrative Agent on the Effective Date as
provided herein and (ii) a second Term Loan A Advance (Second
Term Loan A Advance) by the Administrative Agent on the date
the conditions set forth in this Agreement are satisfied,
provided that such Second Term Loan A Advance must occur no
later than September 30, 2004. The amount of the
Second Term Loan A Advance may not exceed the Aggregate Term
Loan A Commitment less the amount of the Initial Term Loan A
Advance. Each Lender’s Term Loan A Commitment is its
pro-rata share of the Aggregate Term Loan A Commitment. The
Term Loan A Commitment of each Lender shall expire
concurrently with the making of such Second Term Loan A
Advance or September 30, 2004, whichever occurs first.

3.2.1.2. Aggregate Term Loan B. Each Lender commits to make
available to Borrower such Lender’s pro-rata share (as listed
on Exhibit 3 hereto) of an Aggregate Term Loan B Commitment
of $10,000,000.00 by funding such Lender’s pro-rata share of
up to two Term Loan B Advances on the date or dates the
conditions set forth in this Agreement are satisfied,
provided that any Term Loan B Advance must occur no later
than September 30, 2004. Each Lender’s Term Loan B
Commitment is its pro-

5

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

rata share of the Aggregate Term Loan B
Commitment. The Term Loan B Commitment of each Lender shall
expire concurrently with the making of a second Term Loan B
Advance or September 30, 2004, whichever occurs first.

3.2.2. Term Loan Notes. The obligation of Borrower to repay each
Lender’s Term Loans shall be evidenced by a promissory note payable
to the order of such Lender in a principal amount equal to its
pro-rata share of the Aggregate Term Loan A Commitment and
Aggregate Term Loan B Commitment and otherwise in form and
substance satisfactory to Lenders.

3.3. Letter of Credit Commitment. Letter of Credit Issuer commits to
issue standby letters of credit and commercial (documentary) letters of
credit for the account of Borrower from time to time from the Effective
Date to the Revolving Loan Maturity Date, but only in connection with
transactions satisfactory to Letter of Credit Issuer and only if the
Letter of Credit Exposure will not as a result of such issuance exceed
the lesser of (i) $1,000,000.00 and (ii) the Maximum Available Amount.
The expiration date of any Letter of Credit will be a Business Day that
is not later than the date which is twenty-five days prior to the
Revolving Loan Maturity Date; provided, however, that the expiration date
for a Letter of Credit may be later than the Revolving Loan Maturity Date
if Letter of Credit Issuer consents to such issuance and Borrower
provides to Letter of Credit Issuer cash collateral satisfactory to
Letter of Credit Issuer as security for Borrower’s obligation to
reimburse Letter of Credit Issuer for all draws thereunder. Immediately
upon the issuance by Letter of Credit Issuer of a Letter of Credit in
accordance with the terms and conditions of this Agreement, Letter of
Credit Issuer shall be deemed to have sold and transferred to each other
Lender, and such other Lender shall be deemed to have purchased and
received from Letter of Credit Issuer, a pro-rata undivided interest and
participation in such Letter of Credit, the reimbursement obligation of
Borrower with respect thereto, and any guaranty thereof or collateral
therefor. Such other Lender’s pro-rata undivided interest shall be the
same as its pro-rata share of the Aggregate Revolving Loan Commitment.

4. Interest.

4.1. Interest on Draws on Letters of Credit. The unreimbursed amount of
each draw on a Letter of Credit shall bear interest at a rate per annum
equal to the Adjusted Base Rate applicable to Revolving Loans.

4.2. Interest on Aggregate Loans. Borrower may, as provided in Section
7, designate the whole of an Advance or any part of an Advance (provided
that any partial designation of the Term Loan A Advance or Term Loan B
Advance shall apply to a minimum of $1,000,000.00 of the Term Loan) to be
either a Base Rate Advance or a Eurodollar Advance; provided, however,
during the existence of an Existing Default, Borrower may not designate
an Advance or part of an Advance as a Eurodollar Advance. Each Base Rate
Advance when made will become a Base Rate Loan, which shall bear interest
at the Adjusted Base Rate. Each Eurodollar Advance when made will become
a Eurodollar Loan, which shall bear interest at the Adjusted Eurodollar
Rate. Borrower may also, as

6

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

provided herein, convert some or all of a
Base Rate Loan into a Eurodollar Loan and some or all of a Eurodollar
Loan into a Base Rate Loan. For each Eurodollar Loan, Borrower shall
select an Interest Period as provided in Section 4. A Eurodollar Loan
shall bear interest at the Adjusted Eurodollar Rate throughout the
applicable Interest Period designated by Borrower.

4.3. Adjusted Base Rate. The Adjusted Base Rate for any Base Rate Loan
which is a Revolving Loan shall be the Base Rate plus the applicable Base
Rate Margin determined from the table in Section 4.5 and the Adjusted
Base Rate for any Base Rate Loan which is a Term Loan shall be the Base
Rate plus the applicable Base Rate Margin determined from the table in
Section 4.5.

4.4. Adjusted Eurodollar Rate. The Adjusted Eurodollar Rate for any
Eurodollar Loan which is a Revolving Loan shall be the Eurodollar Rate
plus the applicable Eurodollar Margin determined from the table in
Section 4.5, and the Adjusted Eurodollar Rate for any Eurodollar Loan
which is a Term Loan shall be the Eurodollar Rate plus the applicable
Eurodollar Margin determined from the table in Section 4.5.

4.5. Base Rate Margins and Eurodollar Margins.

Commencing on the Effective Date, the Margins shall be determined as
follows:

Revolving Loans and Term Loan A:

	 	 	 	 	 	 	 	 	 
	If the ratio of Borrower’s	 	 	 	 
	Total Indebtedness to	 	 	 	 
	EBITDA (for the four fiscal	 	 	 	 
	quarter period of Borrower	 	The Base Rate	 	The Eurodollar
	most recently ended) is:
	 	Margin is:
	 	Margin is:

	Greater than or equal to
2.00 to 1

	 	 	0.25	%	 	 	3.25	%
	Less than 2.00 to 1 and
greater than or equal to
1.50 to 1

	 	 	0.00	%	 	 	2.75	%
	Less than 1.50 to 1 and
greater than or equal to
1.00 to 1

	 	 	0.00	%	 	 	2.25	%
	Less than 1.00 to 1

	 	 	0.00	%	 	 	1.75	%

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 CONFIDENTIAL TREATMENT REQUESTED BY 
TALX CORPORATION

Term Loan B:

	 	 	 	 	 	 	 	 	 
	If the ratio of Borrower’s	 	 	 	 
	Total Indebtedness to	 	 	 	 
	EBITDA (for the four fiscal	 	 	 	 
	quarter period of Borrower	 	The Base Rate	 	The Eurodollar
	most recently ended) is:
	 	Margin is:
	 	Margin is:

	Greater than or equal to
2.00 to 1

	 	 	0.75	%	 	 	3.75	%
	Less than 2.00 to 1 and
greater than or equal to
1.50 to 1

	 	 	0.50	%	 	 	3.25	%
	Less than 1.50 to 1 and
greater than or equal to
1.00 to 1

	 	 	0.50	%	 	 	2.75	%
	Less than 1.00 to 1

	 	 	0.50	%	 	 	2.25	%

The ratio of Borrower’s Total Indebtedness to EBITDA (for the four fiscal
quarter period of Borrower most recently ended) on a pro forma basis as
of the Effective Date (after giving effect to the Current Acquisition and
the consummation of the transactions contemplated hereby, the funding of
the Initial Term Loan A Advance, the initial Revolving Loan Advance, if
made concurrently with the Initial Term Loan A Advance, and the payment
of all fees and expenses hereunder) is 1.46 to 1. Thereafter, the
applicable Margins shall be re-determined by Administrative Agent
promptly after each delivery by Borrower to Administrative Agent of
Borrower’s Financial Statements (and accompanying Compliance Certificate)
as required in Section 14.14.2, and will become applicable on the third
Business Day following the day when Borrower delivers such Financial
Statements (and accompanying Compliance Certificate) to Administrative
Agent.

4.6. Conversion of Loans. Borrower may (i) as of any Business Day
convert some or all of a Base Rate Loan to a Eurodollar Loan, or (ii) at
the end of any Interest Period of a Eurodollar Loan, continue the Loan as
a Eurodollar Loan for an additional Interest Period or convert some or
all of such Eurodollar Loan to a Base Rate Loan; provided however, that
if there is an Existing Default, Borrower may not convert a Base Rate
Loan to a Eurodollar Loan or continue a Eurodollar Loan for an additional
Interest Period and further provided that any designation of a portion of
a Term Loan A Advance or a Term Loan B Advance shall apply to a minimum
of $1,000,000.00 of the Term Loan. To cause any conversion or
continuation, Borrower shall give Administrative Agent, prior to 11:00
a.m. Local Time three Business Days prior to the date the conversion or
continuation is to be effective, a written request (which may be mailed,
personally delivered or telecopied as provided in Section 21.1) (i)
specifying whether a conversion or continuation is requested, (ii) in the
case of a conversion, specifying the amount to be converted and whether
it is to be a Eurodollar Loan or a Base Rate Loan upon the conversion,
and (iii) in the case of any conversion to or continuation of a
Eurodollar Loan, specifying the

8

 

CONFIDENTIAL TREATMENT REQUESTED BY
TALX CORPORATION

Interest Period therefor. If such notice
is not given prior to 11:00 a.m. Local Time on the third Business Day
preceding the last day of the Interest Period of a Eurodollar Loan, then
Borrower shall be deemed to have timely given a notice to Administrative
Agent requesting to convert all of such Eurodollar Loan to a Base Rate
Loan. In the case of a Eurodollar Loan, any conversion or continuation
shall become effective only on the day following the last day of the
current Interest Period.

4.7. Interest Periods for Eurodollar Loans. For each Eurodollar Loan
Borrower shall select an Interest Period that is either 30, 60, 90, or
180 days; provided that:

(i) every such Interest Period for a Eurodollar Advance shall
commence on the date of the Advance or on the date of the
conversion or continuation of any Loan as a Eurodollar Loan;

(ii) if any Interest Period would otherwise expire on a day of a
calendar month which is not a Business Day, then such Interest
Period shall expire on the next succeeding Business Day in that
calendar month; provided, however, that if the next succeeding
Business Day would be in the following calendar month, it shall
expire on the first preceding Business Day;

(iii) any Interest Period that begins on the last Business Day of a
calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at
the end of such Interest Period; and

(iv) no Interest Period for a Eurodollar Loan that is part of the
Aggregate Revolving Loan shall extend beyond the Revolving Loan
Maturity Date, and no Interest Period for a Eurodollar Loan that is
part of the Aggregate Term Loan A or Aggregate Term Loan B shall
extend beyond the Term Loan Maturity Date.

4.8. Time of Accrual. Interest shall accrue on all principal amounts
outstanding from the date when first outstanding to the date when no
longer outstanding. Amounts shall be deemed outstanding until payments
are applied thereto as provided herein.

4.9. Computation. Interest shall be computed for the actual days elapsed
over a year deemed to consist of 360 days. Interest rates that are based
on the Base Rate shall change simultaneously with any change in the Base
Rate and shall be effective for the entire day on which such change
becomes effective. The Base Rate will be determined by Administrative
Agent before the initial Advances on the Effective Date and on each
Business Day thereafter when the Base Rate changes.

4.10. Rate After Maturity. Borrower shall pay interest on the Aggregate
Loans and any Obligations with respect to Letters of Credit after their
Maturity, and, at the option of Administrative Agent, on the Aggregate
Loans and on the other Loan Obligations after the occurrence of an Event
of Default, at a rate per annum of three percent (3.0%) plus the Adjusted
Base Rate.

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CONFIDENTIAL TREATMENT REQUESTED BY
TALX CORPORATION

5. Fees.

5.1. Commitment Fee. Borrower shall pay to Administrative Agent the fees
pursuant to the fee letters entered into by Borrower from time to time.

5.2. Revolving Loan Unused Fee. Borrower shall pay to Administrative
Agent for the account of Lenders a non-refundable, recurring Revolving
Loan Unused Fee calculated by applying the daily equivalent of an annual
Unused Fee Rate (computed for the actual number of days over a year
deemed to consist of 360 days) to the Unused Revolving Loan Commitment on
each day during the period from the Effective Date to the Revolving Loan
Maturity Date. The Unused Revolving Loan Commitment on any day shall be
the difference between (i) the amount of the Aggregate Revolving Loan
Commitment and (ii) the sum of (a) the Aggregate Revolving Loan, and (b)
the aggregate undrawn amount of outstanding Letters of Credit, and (c)
the total of all amounts drawn on outstanding Letters of Credit but not
reimbursed to Letter of Credit Issuer by Borrower as of the close of
business on such day. The Revolving Loan Unused Fee shall be payable
quarterly in arrears commencing on the last day of the first calendar
quarter ending after the Effective Date and continuing on the last day of
each calendar quarter thereafter and on the Revolving Loan Maturity Date.
The annual Unused Fee Rate shall be as follows:

	 	 	 	 	 
	If the ratio of Borrower’s Total Indebtedness to	 	 
	EBITDA (for the four fiscal quarter period of	 	 
	Borrower most recently ended) is:
	 	The Unused Fee Rate is:

	Greater than or equal to
	 	 	 	 
	2.00 to 1
	 	 	0.375	%
	Less than 2.00 to 1 and greater than or equal to
	 	 	 	 
	1.50 to 1
	 	 	0.325	%
	Less than 1.50 to 1 and greater than or equal to
	 	 	 	 
	1.00 to 1
	 	 	0.250	%
	Less than 1.00 to 1
	 	 	0.250	%

The ratio of Borrower’s Total Indebtedness to EBITDA (for the four fiscal
quarter period of Borrower most recently ended) on a pro forma basis as
of the Effective Date (after giving effect to the Current Acquisition and
the consummation of the transactions contemplated hereby, the funding of
the Initial Term Loan A Advance, the initial Revolving Loan Advance, if
made concurrently with the Initial Term Loan A Advance, and the payment
of all fees and expenses hereunder) is 1.46 to 1. Thereafter, the
applicable Unused Fee Rate shall be re-determined by Administrative Agent
promptly after each delivery by Borrower to Administrative Agent of
Borrower’s Financial Statements (and accompanying Compliance Certificate)
as required in Section 14.14.2 and will become applicable on the third
Business Day following the day when Borrower

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CONFIDENTIAL TREATMENT REQUESTED BY
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delivers such Financial
Statements (and accompanying Compliance Certificate) to Administrative
Agent.

5.3. Letter of Credit Fee. Borrower shall pay to Administrative Agent
for the account of Letter of Credit Issuer and each other Lender with a
Revolving Loan Commitment, a non-refundable recurring Letter of Credit
Fee for each Letter of Credit issued by Letter of Credit Issuer. The
Letter of Credit Fee for any Letter of Credit shall be an amount equal to
the aggregate undrawn amount of such Letter of Credit multiplied by the
Eurodollar Margin in effect on the date such Letter of Credit is issued.
The Letter of Credit Fee for each Letter of Credit shall be payable in
advance upon its issuance and quarterly thereafter on the last day of
each calendar quarter thereafter while such Letter of Credit is
outstanding.

5.4. Letter of Credit Fronting Fee. Borrower shall pay to Letter of
Credit Issuer a non-refundable, one-time Fronting Fee equal to 0.125% of
the face amount of each Letter of Credit issued by Letter of Credit
Issuer. The Fronting Fee due for any Letter of Credit shall be payable
in advance on the issuance date of such Letter of Credit.

5.5. Other Letter of Credit Fees. Borrower shall pay to Letter of Credit
Issuer such Letter of Credit Issuer’s other customary fees for issuance,
amendment, or renewal of a Letter of Credit and, as Letter of
Credit Issuer and Borrower may agree with respect to each Letter of
Credit, for each negotiation of a draft drawn under such Letter of
Credit.

5.6. Administrative Agent’s Fees. Borrower shall pay to Administrative
Agent, and solely for the account of Administrative Agent, an annual
non-refundable Agency Fee in the amount as set forth in the Agency Fee
Letter together with any other fee payable solely for the account of
Administrative Agent as set forth therein. The Agency Fee for the first
twelve (12) months shall be paid on or before the Effective Date, and an
annual Agency Fee payment shall thereafter be made to Administrative
Agent on each anniversary date of the Effective Date.

5.7. Calculation of Fees. All of the foregoing fees and all other fees
payable to Administrative Agent or any Lender that are based on an annual
percentage shall be calculated on the basis of a year deemed to consist
of 360 days and for the actual number of days elapsed.

6. Payments.

6.1. Scheduled Payments on Aggregate Revolving Loan.

6.1.1. Interest. Borrower shall pay interest accrued on each Base
Rate Loan included in the Aggregate Revolving Loan monthly in
arrears beginning on the first day of the first calendar month
ending after the Effective Date and continuing on the first day of
each calendar month thereafter, and on the Revolving Loan Maturity
Date. Borrower shall pay interest accrued on each Eurodollar Loan

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CONFIDENTIAL TREATMENT REQUESTED BY
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included in the Aggregate Revolving Loan at the end of its Interest
Period and, in addition, for each such Eurodollar Loan with an
Interest Period longer than 90 days, Borrower shall pay interest
accrued thereon on each day that would have been the end of an
Interest Period with respect to such Eurodollar Loan had successive
Interest Periods of 90 days’ duration been applicable to such
Eurodollar Loan. Borrower shall pay interest accrued on each
Revolving Loan after the Revolving Loan Maturity Date on demand.

6.1.2. Principal. Borrower shall repay the entire amount of the
Aggregate Revolving Loan as then outstanding on the Revolving Loan
Maturity Date.

6.2. Scheduled Payments on Term Loans.

6.2.1. Interest. Borrower shall pay interest accrued on each Base
Rate Loan included in the Aggregate Term Loan A monthly in arrears,
beginning on the last day of the first calendar month ending after
the Effective Date, and continuing on the last day of each calendar
month thereafter, and on the Term Loan Maturity Date. Borrower
shall pay interest accrued on each
Base Rate Loan included in the Aggregate Term Loan B monthly in
arrears, beginning on the last day of the first calendar month
ending after the initial disbursement of the Aggregate Term Loan B,
and continuing on the last day of each calendar month thereafter,
and on the Term Loan Maturity Date. Borrower shall pay interest
accrued on each Eurodollar Loan included in the Aggregate Term Loan
A and Aggregate Term Loan B at the end of its Interest Period and,
in addition, for each such Eurodollar Loan with an Interest Period
longer than 90 days, Borrower shall pay interest accrued thereon on
each day that would have been the end of an Interest Period with
respect to such Eurodollar Loan had successive Interest Periods of
90 days’ duration been applicable to such Eurodollar Loan.
Borrower shall pay interest accrued on the Aggregate Term Loan A
and Aggregate Term Loan B after the Term Loan Maturity Date on
demand.

6.2.2. Principal.

6.2.2.1.
Term Loan A. Borrower shall repay the Aggregate Term
Loan A in quarterly installments of principal based on the
outstanding principal amount of the Aggregate Term Loan A as
of June 30, 2004. The amount of each quarterly principal
installment shall be determined on June 30, 2004 by dividing
the then outstanding Dollar amount of the Initial Term Loan A
Advance by twenty. The initial principal installment payment
shall be due and payable on June 30, 2004 and subsequent
principal installments shall be due and payable each
September 30, December 31, March 31 and June 30 thereafter,
with one final installment payment due and payable on the
Term Loan Maturity Date in the amount of all Indebtedness
under each Term Note A then outstanding. Provided, however,
to the extent the Second Term Loan A Advance is made after
the Initial Term Loan A Advance, the principal amount of such

Second Loan A Advance shall be divided by twenty and the
quotient shall be payable

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CONFIDENTIAL TREATMENT REQUESTED BY
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and due, in addition to the amount
set forth above, commencing on the last day of quarter
immediately following the quarter in which the Second Term
Loan A Advance is made, and with the final installment
payment due and payable on the Term Loan Maturity Date in the
amount of all Indebtedness under the Term A Notes then
outstanding.

6.2.2.2.
Term Loan B. Borrower shall repay the Aggregate Term
Loan B in quarterly installments of principal based on the
outstanding principal amount of the Aggregate Term Loan B as
of December 31, 2004. The amount of each quarterly principal
installment shall be determined as of December 31, 2004 by
dividing the then outstanding principal amount of the
Aggregate Term Loan B by two hundred. The initial principal
installment payment shall be due and payable on December 31,
2004 and subsequent principal installments shall be due and
payable each March 31, June 30, September
30 and December 31 thereafter, with one final balloon payment
due and payable on the Term Loan Maturity Date in the amount
of all Indebtedness under each Term Note B then outstanding.

6.3. Prepayments.

6.3.1. Voluntary Prepayments. Subject to the limitations in the
following sentences, Borrower may wholly or partially prepay any
Base Rate Loan or Eurodollar Loan that is included in the Aggregate
Term Loan A or Aggregate Term Loan B without payment of a premium.
Subject to the limitations in the following sentences, Borrower may
wholly prepay any Base Rate Loan or Eurodollar Loan that is
included in the Aggregate Revolving Loan, at any time and may make
a partial prepayment thereon from time to time, without payment of
a premium. Notwithstanding the foregoing, no partial or entire
prepayment may be made hereunder unless (i) Borrower gives
Administrative Agent written notice (which may be mailed,
personally delivered or telecopied as provided in Section 21.1) or
telephonic notice (promptly confirmed in writing in the manner
provided in Section 21.1) of Borrower’s intention to make such
prepayment at least one Business Day prior to tendering such
prepayment, (ii) the total amount of such prepayment is a whole
multiple of $1,000.00 (iii) Borrower pays any accrued interest on
the amount prepaid at the time of such prepayment and (iv) Borrower
pays any amount that is due under Section 19.4 as a consequence of
the prepayment. Borrower may specify in writing to Administrative
Agent prior to making a voluntary prepayment whether such
prepayment is to be made on the Aggregate Revolving Loan or a Term
Loan. In the event Borrower does not specify whether such
prepayment is made on the Aggregate Revolving Loan or a Term Loan,
it shall be applied first to the Term Loans in the order specified
herein and then to the Aggregate Revolving Loan. All voluntary
prepayments of a Term Loan described in this Section 6.3.1 will be
deemed made and shall be applied in reduction of the Aggregate Term
Loan B (and all compensation due pursuant to Section 19.4 in
connection therewith) until reduced to zero, and will be applied by
Lenders to reduce their pro-rata shares, and consequently the
aggregate amounts,

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CONFIDENTIAL TREATMENT REQUESTED BY
TALX CORPORATION

of the quarterly repayment installments required
under Section 6.2.2 in the inverse order of their due dates.
Thereafter, all subsequent voluntary prepayments of a Term Loan
described in this Section 6.3.1 shall be deemed made on the
Aggregate Term Loan A (and all compensation due pursuant to Section
19.4 in connection therewith) until reduced to zero, and will be
applied by Lenders to reduce their pro-rata shares, and
consequently the aggregate amounts, of the quarterly repayment
installments required under Section 6.2.1 in the inverse order of
their due dates. Thereafter, all subsequent voluntary prepayments
described in this Section 6.3.1, unless otherwise expressly stated
in writing by Borrower to Administrative Agent prior to the making
of such prepayment, shall be deemed made on the Base Rate Loans
included in the Aggregate Revolving Loan until they are reduced to
zero, and then to the Eurodollar Loans included in the Aggregate
Revolving Loan (and all compensation due pursuant to Section 19.4
in
connection therewith) until they are reduced to zero, and will be
applied by Lenders to reduce the Revolving Loans in accordance with
their respective pro-rata shares of the Aggregate Revolving Loan
Commitment.

6.3.2. Mandatory Prepayments When Over-Advances Exist. If at any
time the sum of the Aggregate Revolving Loan and the Letter of
Credit Exposure exceeds the lesser of (i) the Aggregate Revolving
Loan Commitment and (ii) the Borrowing Base, whether as a result of
optional Revolving Loan Advances by Lenders as contemplated by
Section 3.1.2 or otherwise, Borrower shall on demand make a payment
in the amount of the excess to Administrative Agent for the account
of Lenders on the Aggregate Revolving Loan. Each such prepayment
will be applied by Administrative Agent and Lenders first to reduce
the Base Rate Loans that are included in the Aggregate Revolving
Loan (and consequently a ratable portion of each Lender’s Revolving
Loan) until they are reduced to zero and then to reduce the
Eurodollar Loans that are included in the Aggregate Revolving Loan
(and consequently a ratable portion of each Lender’s Revolving
Loan). In the case of such a prepayment, Borrower will pay any
accrued interest on the amount prepaid at the time of such
prepayment, and Borrower will pay any amount that is due under
Section 19.4 as a consequence of the prepayment.

6.3.3. Other Mandatory Prepayments.

6.3.3.1. Proceeds from Sales of Assets. If Borrower or any
Covered Person sells any of its assets in a single
transaction or related series of transactions that are not in
the ordinary course of business, Borrower shall make a
payment to Administrative Agent for the ratable benefit of
the Lenders, to be applied to first reduce the Aggregate Term
Loan B, then the Aggregate Term Loan A, in the aggregate
amount of 50% of the gross proceeds therefrom less reasonable
selling expenses and the increment in federal, state and
local income taxes, if any, payable as a consequence of any
taxable gain from such sale. Borrower need not make such
prepayment, however, (i) to the extent the net proceeds from
such sale or sales are less than $250,000.00 in any one
fiscal year, or (ii) to the extent

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CONFIDENTIAL TREATMENT REQUESTED BY
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the net proceeds of any
such sale of a capital asset are expended by Borrower within
180 days of completion of the sale for replacement of such
asset by another asset of comparable type and utility,
provided that Borrower shall confirm to Administrative Agent
that such asset is subject to the first lien in favor of
Administrative Agent contemplated hereby, and such
expenditure will not result in Borrower exceeding the limits

for Capital Expenditures in Section 16.2. Notwithstanding the
foregoing, the prepayment payment requirement from the sale
of assets shall no longer apply as of the date that Borrower
shall demonstrate for two (2) consecutive quarters that the
ratio of Borrower’s Total Indebtedness to EBITDA (for the
four fiscal quarter periods of
Borrower most recently ended) for each such quarter is less
than 1.5 to 1 by providing such information in the Compliance
Certificate.

6.3.3.2. Proceeds from Sale of Securities or Issuance of
Indebtedness. If after the Effective Date Borrower or any
Covered Person issues any debt, equity or debt securities, or
warrants or options therefor (other than Permitted
Indebtedness, debt or equity issued to a Covered Person by
any other Covered Person, or any equity securities issued to
any directors, officers or employees of the Borrower or its
Subsidiaries), Borrower shall promptly after such sale make a
payment to Administrative Agent for the ratable benefit of
the Lenders, to be applied to first reduce the Aggregate Term
Loan B, then the Aggregate Term Loan A, in an aggregate
amount equal to 50% of the gross proceeds therefrom less
reasonable brokers’ and underwriters’ fees and commissions
and other reasonable issuing expenses. Notwithstanding the
foregoing, the prepayment payment requirement from the sale
or securities or debt shall no longer apply as of the date
that Borrower shall demonstrate for two (2) consecutive
quarters that the ratio of Borrower’s Total Indebtedness to
EBITDA (for the four fiscal quarter periods of Borrower most
recently ended) for each such quarter is less than 1.5 to 1
by providing such information in the Compliance Certificate.

6.3.3.3. Insurance/Condemnation Proceeds. All
Insurance/Condemnation Proceeds in connection with any loss
or condemnation, the proceeds of which exceed $100,000.00,
shall be deposited in an interest bearing Proceeds Account
with Administrative Agent in the name of Borrower promptly
upon receipt thereof by Borrower or Administrative Agent.
Within 180 days after such receipt Borrower may expend, or
commit to expend, some or all of the funds in the Proceeds
Account for rebuilding, repairing or replacing the property
for which such Insurance/Condemnation Proceeds were paid. All
funds in the Proceeds Account that have not been committed to
be so expended by the 180th day after receipt shall be
distributed by Administrative Agent to Lenders in accordance
with their pro-rata shares of the Aggregate Term Loan B
Commitment and applied by them to reduce the Aggregate Term
Loan B first and then the Aggregate Term Loan A, and all
funds remaining in the Proceeds Account upon completion of
such rebuilding, repairing or replacement shall be
distributed by Administrative Agent to Lenders in accordance
with their pro-rata shares of the Aggregate Term Loan B
Commitment and applied by them to reduce the Aggregate Term

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CONFIDENTIAL TREATMENT REQUESTED BY
TALX CORPORATION

Loan B first and then the Aggregate Term Loan A. The
foregoing notwithstanding, Administrative Agent shall have
the right to debit the Proceeds Account in the amount of, and
apply the debit amount to pay, any of the Loan Obligations
that are not paid when due as provided herein
or at any time upon the occurrence and during the
continuation of an Event of Default. Borrower hereby assigns
and grants to Administrative Agent for the benefit of Lenders
a first priority Security Interest in any such Proceeds
Account as security for payment and performance of the Loan
Obligations. Expenditures by Borrower for such rebuilding,
repairing or replacement in excess of the amount of the
Insurance/Condemnation Proceeds shall be deemed Capital
Expenditures. Administrative Agent is hereby authorized to
participate in any proceeding for the condemnation or other
taking of any of Borrower’s property and Borrower from time
to time will deliver to Administrative Agent all instruments
reasonably requested by Administrative Agent to permit such
participation.

6.3.3.4. Excess Cash Flow. Within 120 days after the end of
each fiscal year of Borrower, commencing with the fiscal year
ending March 31, 2005, Borrower shall pay to Administrative
Agent for the ratable benefit of Lenders, to be applied to
reduce the Aggregate Term Loan A and the Aggregate Term Loan
B, an aggregate amount equal to fifty percent (50%) of
Borrower’s Excess Cash Flow for such fiscal year. Any such
payment will be applied by Administrative Agent and Lenders
to first reduce the Aggregate Term Loan B and then reduce the
Aggregate Term Loan A. Excess Cash Flow means, for any period
of calculation, EBITDA minus the sum of Fixed Charges,
federal, state and local income taxes paid, Capital
Expenditures, Repurchases and the amount of any prepayment
(including prepayment premium) of long term Indebtedness of
Borrower in such period. Notwithstanding the foregoing, the
Excess Cash Flow payment requirement shall no longer apply as
of the date that Borrower shall demonstrate for two (2)
consecutive quarters that the ratio of Borrower’s Total
Indebtedness to EBITDA (for the four fiscal quarter periods
of Borrower most recently ended) for each such quarter is
less than 1.5 to 1 by providing such information in the
Compliance Certificate.

Every prepayment under this Section 6.3.3 that is required to be
applied to reduce the Aggregate Term Loan B shall be distributed by
Administrative Agent to Lenders in accordance with their pro-rata
shares of the Aggregate Term Loan B Commitment and applied by
Lenders to reduce their pro-rata shares, and consequently the
aggregate amounts, of the repayment installments required under

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CONFIDENTIAL TREATMENT REQUESTED BY
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Section 6.2.2.2 in the inverse order of their due dates. If
application to the Term Loan B of any prepayment required under
this Section 6.3.3 reduces the Term Loan B (and consequently the
Aggregate Term Loan B) to zero, the remaining amount of such
prepayment shall be applied by Lenders to reduce the Term Loan A
(and consequently the Aggregate Term Loan A) to zero, and will be
applied by the Lenders to reduce their pro-rata shares, and
consequently the aggregate amounts, of the repayment installments
required under Section 6.2.2.1 in the inverse order of their
maturity, and the remaining amount, if any, of such
prepayment shall then be applied by Lenders to reduce the Revolving
Loans (and consequently the Aggregate Revolving Loan).

6.4. Reimbursement Obligations of Borrower. Each Borrower hereby
unconditionally agrees to immediately pay to Letter of Credit Issuer on
demand at the Letter of Credit Issuer’s Applicable Lending Office all
amounts required to pay all drafts drawn under Letters of Credit issued
for the account of such Borrower and all reasonable expenses incurred by
Letter of Credit Issuer in connection with such Letters of Credit and in
any event and without demand to remit to Letter of Credit Issuer (which
may be through obtaining Revolving Advances if permitted under Section
3.1.2) sufficient funds to pay all debts and liabilities arising under
any Letter of Credit issued for the account of such Borrower.

6.5. Manner of Payments and Timing of Application of Payments.

6.5.1. Payment Requirement. Unless expressly provided to the
contrary elsewhere herein, Borrower shall make each payment on the
Loan Obligations to Administrative Agent for the account of Lenders
as required under the Loan Documents at the Applicable Lending
Office of the Administrative Agent on the date when due, without
deduction, setoff or counterclaim. All such payments will be
distributed by Administrative Agent to Lenders as provided in
Section 18.10 for application to the Loan Obligations as provided
herein.

6.5.2. Application of Payments and Proceeds. All payments received
by Administrative Agent in immediately available funds at or before
1:00 p.m. (Local Time) on a Business Day will be distributed by
Administrative Agent to Lenders as provided in Section 18.10 on the
same Business Day. Such payments received on a day that is not a
Business Day or after 1:00 p.m. (Local Time) on a Business Day will
be distributed by Administrative Agent to Lenders as provided in
Section 18.10 on the next Business Day. The amount so distributed
to a Lender will be applied by such Lender to the relevant Loan
Obligation on the Business Day when received.

6.5.3. Interest Calculation. Section 6.5.2 notwithstanding, for
purposes of interest calculation only, (i) a payment by check,
draft or other instrument received at or before 1:00 p.m. (Local
Time) on a Business Day shall be deemed to have been applied to the
relevant Loan Obligation on the second following Business Day, (ii)
a payment by check, draft or other instrument received on a day
that is not a Business Day or after 1:00 p.m. on a Business Day
shall be deemed to

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CONFIDENTIAL TREATMENT REQUESTED BY
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have been applied to the relevant Loan
Obligation on the third following Business Day, (iii) a payment in
cash or by wire transfer received at or before 1:00 p.m. (Local
Time) on a Business Day shall be deemed to have been applied to the
relevant Loan Obligation on the Business Day when it is received,
and (iv) a payment in cash or by wire transfer received on a day
that is not a Business Day or after 1:00 p.m. (Local Time) on a
Business Day
shall be deemed to have been applied to the relevant Loan
Obligation on the next Business Day.

6.6. Returned Instruments. If a payment is made by check, draft or other
instrument and the check, draft or other instrument is returned unpaid,
any application of the payment to the Loan Obligations will be reversed
and will be treated as never having been made.

6.7. Compelled Return of Payments or Proceeds. If Administrative Agent
or any Lender is for any reason compelled to surrender any payment or any
proceeds of the Collateral because such payment or the application of
such proceeds is for any reason invalidated, declared fraudulent, set
aside, or determined to be void or voidable as a preference, an
impermissible setoff, or a diversion of trust funds, then this Agreement
and the Loan Obligations to which such payment or proceeds was applied or
intended to be applied shall be revived as if such application was never
made; and Borrower shall be liable to pay to Administrative Agent or such
Lender, and shall indemnify Administrative Agent or such Lender for and
hold Administrative Agent or such Lender harmless from any loss with
respect to, the amount of such payment or proceeds surrendered. This
Section shall be effective notwithstanding any contrary action that
Administrative Agent or such Lender may take in reliance upon its receipt
of any such payment or proceeds. Any such contrary action so taken by
Administrative Agent or such Lender shall be without prejudice to
Administrative Agent’s or such Lender’s rights under this Agreement and
shall be deemed to have been conditioned upon the application of such
payment or proceeds having become final and indefeasible. The provisions
of this Section shall survive termination of the Commitments, the
expiration of the Letters of Credit and the indefeasible full payment and
satisfaction of all of the Loan Obligations.

6.8. Due Dates Not on Business Days. If any payment required hereunder
becomes due on a date that is not a Business Day, then such due date
shall be deemed automatically extended to the next Business Day.

7. Procedure for Obtaining Advances and Letters of Credit.

7.1. Initial Advances. Provided that all conditions thereto hereunder
are satisfied and subject to the limitations contained herein, Lenders
will fund and Administrative Agent will make the Initial Term Loan A
Advance and the initial Revolving Loan Advance on the Effective Date as
directed by Borrower in a written direction delivered to Administrative
Agent. The manner of disbursement shall be subject to Lenders’ approval.

7.2. Subsequent Loan Advances.

7.2.1. Borrower Requests. From and after the Effective Date,
Borrower may request (i) Revolving Loan Advances
from time to time, (ii) one additional Term

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CONFIDENTIAL TREATMENT REQUESTED BY
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Loan A Advance prior to
September 30, 2004, and (iii) up to two Term Loan B Advances prior
to September 30, 2004, but, in each case, not more often than once
each Business Day, by submitting a request therefor to
Administrative Agent as provided in Section 7.10 and, in connection
with each Term Loan A Advance or Term Loan B Advance also
submitting a Compliance Certificate in the form attached hereto as
Exhibit 14.14. Administrative Agent may treat every request for an
Advance as a request for a Base Rate Advance if Borrower does not
specify that such Advance is to be a Eurodollar Advance in
Borrower’s request for an Advance. Every request for an Advance
shall be irrevocable. A request for an Advance received by
Administrative Agent on a day that is not a Business Day or that is
received by Administrative Agent after 11:00 a.m. (Local Time) on a
Business Day shall be treated as having been received by
Administrative Agent prior to 11:00 a.m. (Local Time) on the next
Business Day.

7.2.2. Administrative Agent’s Right to Make Other Revolving Loan
Advances.

7.2.2.1. Payment of Loan Obligations. If Borrower has failed
to timely pay any of the Loan Obligations, Administrative
Agent shall have the right to make Revolving Loan Advances at
any time and from time to time to cause timely payment of any
of the Loan Obligations. Administrative Agent may select the
Advance Date for any such Revolving Loan Advance, but such
Advance Date may only be a Business Day. Administrative Agent
will give notice to Borrower after any such Revolving Loan
Advance is made. Any such Revolving Loan Advance will be a
Base Rate Advance.

7.2.2.2. Payments to Other Creditors. If Administrative
Agent becomes obligated to reimburse or pay to any creditor
of Borrower any amount in order to (i) obtain a release of
such creditor’s Security Interest in any of the Collateral,
or (ii) otherwise satisfy an Obligation of Borrower to such
creditor to the extent not indefeasibly satisfied by the
initial Advances, and (a) an Event of Default has occurred
and is continuing and (b) there is not a good faith dispute
as to the obligation to such creditor, or there is a good
faith dispute and Borrower has failed to establish
appropriate reserves adequate to pay such items in accordance
with GAAP, then Administrative Agent shall have the right to
make Revolving Loan Advances for that purpose. Administrative
Agent may select the Advance Date for any such Advance, but
such Advance Date may only be a Business Day. Administrative
Agent will give notice to Borrower after any such Revolving
Loan Advance is made. Any such Revolving Loan Advance will be
a Base Rate Advance.

7.3. Letters of Credit. Borrower may request the issuance of a Letter of
Credit by submitting an issuance request to Letter of Credit Issuer and
executing the Letter of Credit Agreement required under Section 11.1 no
less than five Business Days prior to the requested issue date for such
Letter of Credit.

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7.4. Fundings.

7.4.1. Revolving Advances. Not later than 11:00 a.m. (Local Time)
on each Advance Date for an Advance, Administrative Agent shall
promptly notify each Lender of the amount of the Advance to be made
on that Advance Date. Each Lender shall make immediately available
to Administrative Agent by 2:00 p.m. (Local Time) on the Advance
Date funds consisting solely of Dollars in the amount of its
pro-rata share of such Advance, rounded to the nearest penny, in
accordance with such remittance instructions as may be given by
Administrative Agent to Lenders from time to time.

7.4.2. Draws on Letters of Credit. In the event that a draw is
made on a Letter of Credit and Borrower does not reimburse the
amount of such draw in full to Letter of Credit Issuer immediately
on demand, Letter of Credit Issuer shall promptly notify
Administrative Agent of such failure. Upon Administrative Agent’s
receipt of such notice from Letter of Credit Issuer, Administrative
Agent may notify each Lender thereof and shall have the right to
cause a Revolving Loan Advance to be made, regardless whether such
Revolving Loan Advance would exceed the Maximum Available Amount,
by notifying each Lender of the draw, the amount of the Revolving
Loan Advance required to fund reimbursement of such draw, and the
amount of such Lender’s ratable share of such Revolving Loan
Advance. The Advance Date and time for such Revolving Loan Advance
shall not be later than 1:00 p.m. (Local Time) on the first
Business Day following Administrative Agent’s delivery of such
notice to Lenders. By no later than such Advance Date and time,
each Lender shall make immediately available to Administrative
Agent funds consisting solely of Dollars in the amount of its
pro-rata share of such Revolving Loan Advance, rounded to the
nearest penny, in accordance with such remittance instructions as
may be given by Administrative Agent to each Lender from time to
time. Each Revolving Loan Advance made by Administrative Agent
pursuant to this Section 7.4.2 shall be deemed to be a Base Rate
Advance.

7.4.3. All Fundings Ratable. All fundings of Advances shall be
made by Lenders as provided herein in accordance with their
pro-rata shares of the respective Aggregate Commitments, as
applicable. Except as otherwise expressly provided herein, a Lender
shall not be obligated to fund Revolving Loan Advances that would
result in the sum of (a) such Lender’s Revolving Loan, plus (b)
such Lender’s pro-rata share of the Letter of Credit Exposure
exceeding its Revolving Loan Commitment, or make available any more
than its pro-rata share of any Advance.

7.5. Administrative Agent’s Availability Assumption.

7.5.1. Assumption as to Lenders. Unless Administrative Agent has
been given written notice by a Lender prior to an Advance Date that
such Lender does not intend to make immediately available to
Administrative Agent such Lender’s pro-rata share of the Advance
which Administrative Agent will be obligated to make

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on the Advance
Date, Administrative Agent may assume that such Lender has made the
required amount available to Administrative Agent on the Advance
Date and Administrative Agent may, in reliance upon such
assumption, make available to Borrower a corresponding amount. If
such corresponding amount is not in fact made immediately available
to Administrative Agent by such Lender on the Advance Date,
Administrative Agent shall be entitled to recover such
corresponding amount on demand from such Lender. If such Lender
does not pay such corresponding amount immediately upon
Administrative Agent’s demand therefor, then Administrative Agent
shall promptly notify Borrower and the other Lenders, and Borrower
shall pay such corresponding amount to Administrative Agent within
two (2) days of the date of delivery of such notice by
Administrative Agent. Administrative Agent shall also be entitled
to recover, either from such defaulting Lender (a Defaulting
Lender) or Borrower, interest on such corresponding amount for each
day from the date such corresponding amount was made available by
Administrative Agent to Borrower to the date such corresponding
amount is recovered by Administrative Agent, at a rate per annum
equal to (i) if paid by such Lender, the cost to Administrative
Agent of funding such amount at the Federal Funds Rate, or (ii) if
paid by Borrower, the applicable rate for the Advance in question
determined from the request therefor. Each Lender shall be
obligated only to fund its pro-rata share of an Advance subject to
the terms and conditions hereof, regardless of the failure of
another Lender to fund its pro-rata share thereof. In addition,
the failure of any Lender to pay its pro-rata share of any such
Advance shall cause such Lender to be a Defaulting Lender and such
Defaulting Lender shall, until such amount is paid to
Administrative Agent (with interest at the Federal Funds Rate), (a)
permit Administrative Agent the unconditional and irrevocable right
of setoff against any amounts (including, without limitation,
payments of principal, interest, and fees, as well as indemnity
payments) received by Administrative Agent hereunder for the
benefit of any such Defaulting Lender, and (b) if such failure to
pay shall continue for a period of two Business Days, result in any
such Defaulting Lender forfeiting any right to vote on any matter
that the Required Lenders or all Lenders are permitted to vote for
hereunder (and the calculation of Required Lenders shall exclude
such Defaulting Lender’s interest in the Lenders’ Exposure);
provided, however, once such a failure is cured, then such Lender
shall, subsequent thereto, have all rights hereunder; provided,
further, however, if any Lender shall fail to make such a payment
within the two Business Day period specified in clause (b) above
(other than by reason of events beyond the reasonable control of
such Lender) two or more times during the term hereof, such Lender
shall permanently forfeit its right to vote hereunder (and the calculation of
Required Lenders shall exclude such Defaulting Lender’s interest in
the Lenders’ Exposure).

7.5.2. Assumption as to Borrower. Unless Administrative Agent has
been given written notice by Borrower prior to the date any payment
to be made by it is due, that it does not intend to remit such
payment, Administrative Agent may assume that the Borrower has
timely remitted such payment and Administrative Agent may, in
reliance upon such assumption, make available a corresponding

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amount or pro-rata portion thereof to the Persons entitled thereto.
If such payment was not in fact remitted to the Administrative
Agent in immediately available funds, then, each Lender shall
immediately on demand repay to Administrative Agent the
corresponding amount or pro-rata portion thereof made available to
such Lender, together with interest thereon in respect of each day
from the date such amount was made available by Administrative
Agent to such Lender to the date such amount is repaid to
Administrative Agent, at the Federal Funds Rate.

7.6. Disbursement. Provided that all conditions precedent herein to a
requested Advance have been satisfied, Administrative Agent will make the
amount of such requested Advance available to Borrower on the applicable
Advance Date in immediately available funds in Dollars at Administrative
Agent’s Applicable Lending Office.

7.7. Restrictions on Advances. No Advance will be made unless it is a
whole multiple of $1,000.00 and not less than $100,000.00 in the case of
a Eurodollar Advance, or a whole multiple of $1,000.00 and not less than
$50,000.00 in the case of a Base Rate Advance. No more than one Revolving
Loan Advance will be made on any one day pursuant to a request for a
Revolving Loan Advance. Advances will only be made for the purposes
permitted in Section 14.1. No Eurodollar Advance will be made so long as
there is any Existing Default.

7.8. Restriction on Number of Eurodollar Loans. No more than five (5)
Eurodollar Loans with different Interest Periods may be outstanding at
any one time.

7.9. Each Advance Request and Letter of Credit Request a Certification.
Each submittal of a request for an Advance and each submittal of a
request for the issuance of a Letter of Credit by a Borrowing Officer
shall constitute a certification by Borrower that (i) there is no
Existing Default, (ii) all conditions precedent hereunder to the making
of the requested Advance or issuance of the requested Letter of Credit
have been satisfied, and (iii) the Representations and Warranties are
then true in all material respects, with such exceptions as have been
disclosed to Lenders in writing by Borrower or a Guarantor from time to
time and are satisfactory to Lenders, and will be true on the Advance
Date or issuance date, as applicable, as if then made with such
exceptions.

7.10. Requirements for Every Advance Request. Only a Loan Request
Certificate (which shall be in writing in the form attached hereto as
Exhibit 7.10-A for a Revolving Loan Advance, Exhibit 7.10-B for a Term
Loan A Advance and Exhibit 7.10-C for a Term Loan B Advance and mailed,
personally delivered or telecopied as provided in Section 21.1) from a
Borrowing Officer to Administrative Agent that specifies the amount of
the Advance to be made, the Advance Date for the requested Advance, the
portion of the Advance which is requested to be a Eurodollar Advance and
the portion of the Advance which is requested to be a Base Rate Advance,
and the Interest Period to be applicable to the Eurodollar Loan that will
result from a requested Eurodollar Advance, shall be treated as a request
for an Advance. No Advance Date for any requested Advance may be other
than a Business Day. A request for a Eurodollar Advance must be given
prior to 11:00 a.m., Local Time, at least three (3) Business Days prior
to the

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CONFIDENTIAL TREATMENT REQUESTED BY
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Advance Date for such Eurodollar Advance. A request for a Base
Rate Advance must be given prior to 11:00 a.m., Local Time, on the
Advance Date for such Base Rate Advance.

7.11. Requirements for Every Letter of Credit Request. Only a written
request (which may be mailed, personally delivered or telecopied as
provided in Section 21.1) from a Borrowing Officer to Administrative
Agent or an electronic initiation over an online service provided by
Letter of Credit Issuer that specifies the amount, requested issue date
(which shall be a Business Day and in no event later than twenty-five
days before the Revolving Loan Maturity Date) and beneficiary of the
requested Letter of Credit and other information necessary for its
issuance shall be treated as a request for issuance of a Letter of
Credit. The form of Letter of Credit application submitted by Borrower
shall be in the form required by the Letter of Credit Agreement.

7.12. Exoneration of Administrative Agent and Lenders. Neither
Administrative Agent nor any Lender shall incur any liability to Borrower
for treating a request that meets the express requirements of Section
7.10 or Section 7.11 as a request for an Advance or issuance of a Letter
of Credit, as applicable, if Administrative Agent believes in good faith
that the Person making the request is a Borrowing Officer or if, in the
case of a request for a Letter of Credit, it is electronically initiated.
Neither Administrative Agent nor any Lender shall incur any liability to
Borrower for failing to treat any such request as a request for an
Advance or issuance of a Letter of Credit, as applicable, if
Administrative Agent believes in good faith that the Person making the
request is not a Borrowing Officer.

8. Security and Guaranties. As security for the payment and performance of the
Loan Obligations, and also as security for the payment and performance of all
Obligations to Administrative Agent, Borrower has executed and delivered, or
has caused to be executed and delivered, the Existing Loan Documents, which
continue in existence in full force and effect and which are enforceable in
accordance with their terms and Borrower shall on the Execution Date execute
and deliver, or cause to be executed and delivered, to Administrative Agent the
following documents, each satisfactory to Lenders:

8.1. Security Agreements. Security agreements granting to Administrative
Agent for the benefit of Lenders a first priority Security Interest under
the UCC in all of the Goods, Equipment, Accounts, Inventory, Instruments,
Documents, Chattel Paper, General Intangibles and other personal property
of each Covered Person and every Subsidiary of each Covered Person,
whether now owned or hereafter acquired, and all proceeds thereof,
subject only to Permitted Security Interests affecting such property.

8.2. Pledge Agreements. Stock pledge agreements and membership pledge
agreements granting to Administrative Agent for the benefit of Lenders a
first priority Security Interest in all of each Covered Person’s interest
in the capital stock, membership interests, and other securities (and all
options and warrants therefor) of every Subsidiary of every Covered
Person, now or hereafter issued and outstanding, and all proceeds
thereof.

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CONFIDENTIAL TREATMENT REQUESTED BY
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8.3. Collateral Assignments. The following collateral assignments from
each Covered Person, each subject to no other Security Interests except
existing Permitted Security Interests affecting the item assigned.

8.3.1. Intellectual Property Assignments. One or more assignments
assigning to Administrative Agent for the benefit of Lenders a
Security Interest in all the Intellectual Property of such Covered
Person described in Attachment 1 to the Disclosure Schedule.

8.3.2. Acquisition Documents Assignment. An assignment assigning
to Administrative Agent for the benefit of Lenders all of
Borrower’s rights and interest under the Acquisition Documents for
the Current Acquisition.

8.4. Guaranties. Unconditional guaranties of the Loan Obligations to
Administrative Agent for the benefit of Lenders of each Covered Person
and every Subsidiary of each Covered Person.

8.5. Additional Subsidiaries. As further security for the payment and
performance of the Loan Obligations, if any Subsidiary of any Covered
Person is acquired or organized after the Execution Date, Borrower shall
(i) execute and deliver or cause to be executed and delivered by the
applicable Covered Person, a pledge agreement granting to Administrative
Agent for the benefit of Lenders a first priority Security Interest in
all of such Covered Person’s interest in the voting capital
stock, securities, membership interests or other equity interests, as
applicable (and all options and warrants therefor), of any such later
acquired or organized Subsidiary, now or hereafter issued and
outstanding, and all proceeds thereof and a security agreement granting
to Administrative Agent for the benefit of Lenders a first priority
Security Interest under the UCC in all of the Goods, Equipment, Accounts,
Inventory, Instruments, Documents, Chattel Paper, General Intangibles and
other personal property of such Covered Person, and (ii) cause to be
executed and delivered to Administrative Agent by every such later
acquired or organized Subsidiary of any Covered Person (which may only be
acquired or organized if permitted elsewhere in this Agreement) an
unconditional guaranty of the Loan Obligations or, at the option of
Administrative Agent in Administrative Agent’s absolute discretion, a
joinder agreement in which such Subsidiary becomes a Borrower under this
Agreement and assumes primary, joint and several liability for the Loan
Obligations, and a security agreement (as described in Section 8.1) and
other appropriate security documents, each in form satisfactory to
Lenders.

Administrative Agent may, either before or after an Event of Default, but
only with the consent or at the direction of Required Lenders, granted or
withheld in their absolute discretion, exchange, waive or release the
Security Interests in any of the Collateral or permit Borrower to
substitute any real or personal property for any of the Collateral
without affecting the Loan Obligations or Administrative Agent’s right to
take any other action with respect to any other Collateral, provided,
however, that Administrative Agent may, in its absolute discretion and
without the consent of any Lender, do or permit Borrower to do any of the
foregoing with respect to Collateral or other property that has an
aggregate fair market value that does not exceed $100,000.00, or in the
event that the

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CONFIDENTIAL TREATMENT REQUESTED BY
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disposal of such Collateral is permitted under Section
15.9 or upon the indefeasible payment in full of all of the Loan
Obligations, the expiration or termination of all Letters of Credit and
reduction of the Letter of Credit Exposure to zero, and the termination
of the Commitments.

9. Power of Attorney. Borrower hereby authorizes Administrative Agent and
irrevocably appoints Administrative Agent (acting by any of its officers) as
Borrower’s agent and attorney-in-fact (which appointment is coupled with an
interest and is therefore irrevocable) to do any of the following until all of
the Loan Obligations are fully and indefeasibly paid and satisfied, there are
no Letters of Credit outstanding and the Letter of Credit Exposure is
irreversibly zero, and the Commitments are terminated:

9.1. At any time while there exists an Event of Default that has not been
cured or waived in writing by Lenders, (i) demand payment of any Account;
(ii) enforce payment of any Account by legal proceedings or otherwise;
(iii) exercise all of Borrower’s rights and remedies in proceedings
brought to collect any Account; (iv) sell or assign any Account upon such
terms, for such amount and at such time or times as Administrative Agent
deems advisable; (v) settle, adjust, compromise, extend or renew any
Account; (vi) discharge and release any Account; (vii) prepare, file and
sign Borrower’s name on any proof of claim in bankruptcy or other similar
documents against an Account Debtor; (viii) notify the postal authorities
of any change of the address for delivery of Borrower’s mail
to any address designated by Administrative Agent, and open and process
all mail addressed to Borrower; (ix) endorse Borrower’s name on any
verification of Accounts and notices thereof to Account Debtors; (x) make
one or more Revolving Loan Advances to pay the costs and expenses of any
of the foregoing; (xi) take control in any manner of any item of payment
or proceeds of any Account; (xii) have access to any lockbox or postal
box into which Borrower’s mail is deposited; (xiii) endorse Borrower’s
name upon any items of payment and cash or deposit same and apply the
proceeds thereof to the Loan Obligations as provided herein; (xiv)
endorse Borrower’s name upon any chattel paper, document, instrument,
invoice, or similar document or agreement relating to any Account or
other item of the Collateral; and (xv) do anything that Administrative
Agent deems necessary in its reasonable discretion to assure that the
Loan Obligations are fully and indefeasibly paid and satisfied.

9.2. At any time, file and/or execute in Borrower’s name and on
Borrower’s behalf any financing statement or amendments thereto deemed
necessary or appropriate by Administrative Agent to assure the perfection
or continued perfection of Administrative Agent’s Security Interests in
the Collateral for the benefit of Lenders and the filing or execution of
any such financing statement or amendments is hereby ratified and
confirmed.

The foregoing power of attorney and authorization shall be deemed
automatically revoked upon the indefeasible payment in full of all of the
Loan Obligations, the expiration or termination of all Letters of Credit
and reduction of the Letter of Credit Exposure to zero, and the
termination of the Commitments.

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CONFIDENTIAL TREATMENT REQUESTED BY
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10. Conditions of Lending.

10.1. Conditions to Initial Advance. Lenders will have no obligation to
fund the Initial Term Loan A Advance or the initial Revolving Loan
Advance or any subsequent Advance unless:

10.1.1. Listed Documents and Other Items. Administrative Agent
shall have received on or before the Effective Date all of the
documents and other items listed or described in Exhibit 10.1.1
hereto as being conditions to the initial Advances as being
delivered or executed on or before the Execution Date, with each
being satisfactory to Lenders and (as applicable) duly executed and
(also as applicable) sealed, attested, acknowledged, certified, or
authenticated.

10.1.2. Financial Condition. Lenders shall have determined to
their satisfaction that the financial statements of Borrower for
the fiscal year ended 3/31/03 and the fiscal quarter ended 12/31/03
and the proforma financial statements of Borrower for the period
ending as of the Effective Date (after giving effect to the Current
Acquisition and the consummation of the transactions contemplated
hereby, the funding of the Initial Term Loan A Advance, the initial
Revolving Loan Advance, if made concurrently with the Initial Term
Loan A Advance and the payment of all fees and expenses
hereunder), and the periods ending 3/31/05, 3/31/06, 3/31/07,
3/31/08 and 3/31/09 as furnished to Administrative Agent, and other
information furnished to Administrative Agent by Borrower (i) for
the periods ended on or before the Effective Date, fairly and
accurately reflect the business and financial condition of
Borrower, its cash flows and the results of its operations for such
periods, (ii) for the periods that will end after the Effective
Date, fairly and accurately forecast the business and financial
condition of Borrower, its cash flows, and the results of its
operations for such periods, (iii) are consistent in all material
respects with the sources and uses of cash for the Current
Acquisition previously provided to Administrative Agent and with
the forecasts previously delivered to Administrative Agent, and
(iv) with respect to Borrower’s proforma financial statements, (a)
the ratio of Total Indebtedness to EBITDA as set forth therein does
not exceed 1.75 to 1 on a proforma basis as of the Effective Date
and minimum trailing twelve month consolidated EBITDA shall not be
less than $29,000,000 as of the Effective Date (after giving effect
to the Current Acquisition and the payment of all fees and expenses
hereunder).

10.1.3. No Default. There shall be no Existing Default and no
Default or Event of Default will occur as a result of such Advance
being requested or made or the application of the proceeds thereof.

10.1.4. Perfection of Security Interests. Every Security Interest
required to be granted by Borrower to Administrative Agent under
Section 8 shall have been perfected and shall be, except as
otherwise satisfactory to Lenders, a first priority Security
Interest.

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CONFIDENTIAL TREATMENT REQUESTED BY
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10.1.5. Representations and Warranties. The Representations and
Warranties shall be true and correct.

10.1.6. No Material Adverse Change. Since the date of the Initial
Financial Statements delivered to Administrative Agent, there shall
not have been any change which has or is reasonably likely to have
a Material Adverse Effect on any Covered Person.

10.1.7. Pending Material Proceedings. There shall be no pending
Material Proceedings other than as disclosed in Section 12.8 of the
Disclosure Schedule.

10.1.8. Payment of Fees and Expenses. Borrower shall have paid and
reimbursed to Lenders all fees, costs and expenses and the
attorneys’ fees of the Administrative Agent.

10.1.9. Current Acquisition. All documents to be executed and
delivered in connection with the Current Acquisition shall have
been delivered to Administrative Agent in final form;
Administrative Agent shall be satisfied that all requirements to
close the Current
Acquisition have been completed or waived by the parties to the
Acquisition Documents except for the delivery of the purchase price
for the Current Acquisition; the total amount of Loan proceeds used
as consideration for the Current Acquisition (excluding
transactional and lending fees, costs and expenses) shall not
exceed $40,000,000. Furthermore, immediately after giving effect
to the Current Acquisition and the payment of all fees and expenses
hereunder, the Aggregate Revolving Loan Amount shall not then
exceed $4,000,000.

10.1.10. Initial Net Worth. Borrower shall have a Net Worth of at
least $120,000,000 on a consolidated basis after giving effect to
the Current Acquisition and the transactions contemplated hereby,
and the funding of the Initial Term Loan A Advance and the payment
of all fees and expenses hereunder.

10.1.11. Insurance. Administrative Agent shall be satisfied with
the insurance maintained by Borrower (including the insurance
carrier, the types of insurance maintained, and the levels of
insurance maintained).

10.1.12. Environmental. Administrative Agent shall be satisfied
with the results of the environmental due diligence it has
conducted, if any, with respect to any real property owned and/or
leased by Borrower, including without limitation the Phase I
Environmental Reports, if any, ordered by or on behalf of
Administrative Agent.

10.1.13. Other Items. Administrative Agent shall have received
such other consents, approvals, opinions, certificates, documents
or information as it reasonably deems necessary.

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10.2. Conditions to Subsequent Advances. Lenders will have no obligation
to fund any Advance after the initial Advance unless:

10.2.1. General Conditions. All of the conditions to the initial
Advances in Section 10.1 (except the condition in Section 10.1.5)
shall have been and shall remain satisfied.

10.2.2. Representations and Warranties. The Representations and
Warranties are then true, with such exceptions as have been
disclosed to Lenders in writing by Borrower or any Guarantor from
time to time and are satisfactory to Lenders, and will be true as
of the time of such Advance, as if then made with such exceptions.

10.2.3. No Default. There shall be no Existing Default and no
Default or Event of Default will occur as a result of such Advance
being requested or made or the application of the proceeds thereof.

10.2.4. Borrowing Base Certificate. The Administrative Agent shall
have received a current and correct Borrowing Base Certificate
pursuant to Section 14.15.1, if, immediately before giving effect
to the making of any Revolving Loan Advance, the sum of (i) the
Aggregate Revolving Loan and (ii) the Letter of Credit Exposure is
zero.

10.3. Conditions to Advances for the Approved Acquisitions. Further,
prior to Lenders funding any Advance relating to an Approved Acquisition:

10.3.1. Approved Acquisition Deliverables. The Administrative
Agent shall have received:

10.3.1.1. copies, certified as true, complete and correct by
the Responsible Officer of the Borrower, of the applicable
Acquisition Documents;

10.3.1.2. all pro forma financial statements as described in
Section 14.24; and

10.3.1.3. certified copies of the resolutions, in form and
substance satisfactory to Lenders, duly adopted by the board
of directors/members of the Borrower or the Subsidiary of
Borrower, as applicable, authorizing the execution, delivery,
and performance of the applicable Acquisition Documents.

10.3.2. Satisfaction of Conditions to the Approved Acquisitions.
Administrative Agent shall have received the Approved Acquisition
Documents, which shall be in form and substance satisfactory to
Administrative Agent. Administrative Agent shall be satisfied that
all requirements to close the Approved Acquisitions, respectively,
have been completed or waived by the

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parties to the Approved
Acquisition Documents, respectively, except for the delivery of the
purchase price with respect to the applicable Approved
Acquisitions; [

                  
                *              
                 ] and every other condition, if any, to the
applicable Approved Acquisition as described herein shall be
satisfied, or waived by the Administrative Agent; and

(i) With respect to the acquisition of Target One and Target Two,
the Administrative Agent shall have completed its due diligence
with respect to the Target One Acquisition and Target Two
Acquisition and shall have received evidence satisfactory to the
Administrative Agent that the total amount of Loan proceeds used as
consideration for the Target One Acquisition and Target Two
Acquisition shall not exceed [    *    ], unless otherwise prior
approved by Administrative Agent;

(ii) With respect to the acquisition of Target Three, the
Administrative Agent shall have completed its due diligence with
respect to the Target Three Acquisition and shall have received
evidence satisfactory to the Administrative Agent that the total
amount of Loan proceeds used as consideration for the Target Three
Acquisition shall not exceed [    *    ], unless otherwise
prior approved by Administrative Agent; and

(iii) With respect to the acquisition of an interest in Target
Four, the Administrative Agent shall have completed its due
diligence with respect to the Target Four Investment and shall
have received evidence satisfactory to the Administrative Agent
that the total amount of Loan proceeds used as consideration for
the Target Four Investment shall not exceed [    *    ],
unless otherwise prior approved by Administrative Agent.

Notwithstanding anything contained herein to the contrary, in no
event shall the total amount of Loan proceeds used as consideration
for the Approved Acquisitions as a whole exceed
[    *    ], unless otherwise prior approved by Administrative Agent.

10.3.3. Additional Subsidiaries. In the case an Approved
Acquisition is in the form of a purchase of stock or of membership
interests of any limited liability company or in the case where a
Covered Person creates a new Subsidiary to effect the purchase of
assets, Borrower shall have complied with the requirements of
Section 8.5 and delivered to the Administrative Agent certified
resolutions, good standing certificates and other customary
documents (including attorney opinion letters) as are reasonably
requested by Administrative Agent.

10.3.4. Collateral Assignment of Members’ Interests. In the case of
the Target Four Investment, Borrower shall have executed and
delivered to the Administrative Agent a collateral assignment of
interests in form requested by Administrative Agent together with
certified resolutions, good standing

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CONFIDENTIAL TREATMENT REQUESTED BY
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certificates and other
customary documents (including attorney opinion letters) as are
reasonably requested by Administrative Agent and which grant and
perfect a first lien security interest in all collateral described
therein.

10.3.5. Authority to Consummate the Approved Acquisitions. The
Borrower (and any relevant Subsidiary) shall have the full right,
power and authority to make the Approved Acquisition and to enter
into the Approved Acquisition Documents; and the performance or
observance by the Borrower (or any relevant Subsidiary) of the
Approved Acquisition Documents shall neither (a) contravene any
provision of law or any charter or by-law provision or judgment,
order or decree applicable to or affecting the Borrower or any
Subsidiary nor (b) contravene any covenant, indenture or agreement
of Borrower or any Subsidiary which results, or is reasonably
likely to result, in a Material Adverse Effect on Borrower or any
Subsidiary; the Approved Acquisition Documents when
executed and delivered by the Borrower (and any relevant
Subsidiary), shall be valid, binding and enforceable, except as may
be limited by (i) bankruptcy, insolvency, reorganization,
fraudulent transfer, moratorium or other similar laws or judicial
decisions for the relief of debtors or the limitation of creditors’
rights generally; and (ii) any equitable principles relating to or
limiting the rights of creditors generally or any equitable remedy
which may be granted to cure any defaults.

10.3.6. Request to Fund. Borrower shall have executed and
delivered to the Administrative Agent a Loan Request Certificate in
the form(s) set forth in Section 7.10 from a Responsible Officer.

11. Conditions to Issuance of Letters of Credit. As conditions precedent to
the issuance of any Letter of Credit:

11.1. Letter of Credit Application/Reimbursement Agreement. Borrower
shall have executed and delivered to Letter of Credit Issuer the Letter
of Credit Issuer’s Master Letter of Credit Agreement in the form attached
hereto as Exhibit 11.1 under which Borrower further evidences its
obligation to reimburse to Letter of Credit Issuer on demand the amount
of each draw on such Letter of Credit as provided in Section 6.4,
together with interest from the date of the draw at the rate provided in
Section 4.1 and (without duplication) all reasonable expenses incurred by
Letter of Credit Issuer in connection with such Letter of Credit.

11.2. No Prohibitions. No order, judgment or decree of any Governmental
Authority shall exist which purports by its terms to enjoin or restrain
Letter of Credit Issuer or any other Lender from issuing such Letter of
Credit, and no Law or request or directive (whether or not having the
force of law) from any Governmental Authority with jurisdiction over
Letter of Credit Issuer or any other Lender shall exist which prohibits,
or requests that Letter of Credit Issuer or any other Lender refrain
from, the issuance of letters of credit generally or such Letter of
Credit in particular, or imposes upon Letter of Credit Issuer or any
other Lender with respect to such Letter of Credit any restriction or

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reserve or capital requirement (for which Letter of Credit Issuer or any
other Lender is not otherwise compensable by Borrower hereunder).

11.3. Representations and Warranties. The Representations and Warranties
are then true, with such exceptions as have been disclosed to Lenders in
writing by Borrower or such Guarantor from time to time and are
satisfactory to Lenders, and will be true as of the time of the issuance
of such Letter of Credit, as if then made with such exceptions.

11.4. No Default. There shall be no Existing Default and no Default or
Event of Default is reasonably likely to occur as a result of such Letter
of Credit being issued or a draw thereon being made or paid.

11.5. Other Conditions. All of the conditions to the initial Advances in
Section 10.1 (except the condition in Section 10.1.5) shall have been and
shall remain satisfied.

12. Representations and Warranties. Except as otherwise described in the
Disclosure Schedule attached hereto as Exhibit 12, Borrower represents and
warrants to Administrative Agent, Lenders, and Letter of Credit Issuer, on its
behalf and on behalf of each Covered Person, as follows (provided, however,
that to the extent such representations and warranties apply to the entity and
assets acquired pursuant to the Current Acquisition or an Approved Acquisition,
such representations and warranties shall be to the best of Borrower’s
knowledge) and Borrower covenants that Borrower shall undertake its best
efforts to obtain the consents of all third parties to all material contracts
and leases set forth in the Disclosure Schedule as soon as reasonably
practicable.

12.1. Organization and Existence. Each Covered Person is duly organized
and existing in good standing under the Laws of the state of its
organization, is duly qualified to do business and is in good standing in
every state where the nature or extent of its business or properties
require it to be qualified to do business, except where the failure to so
qualify is not reasonably likely to have a Material Adverse Effect on any
Covered Person. Each Covered Person has the power and authority to own
its properties and carry on its business as now being conducted.

12.2. Authorization. Each Covered Person is duly authorized to execute
and perform every Loan Document to which such Covered Person is a party,
and Borrower is duly authorized to borrow hereunder, and this Agreement
and the other Loan Documents have been duly authorized by all requisite
corporate, partnership or membership action (in the case of limited
liability companies) of each Covered Person. No consent, approval or
authorization of, or declaration or filing with, any Governmental
Authority, and no consent of any other Person, is required in connection
with Borrower’s execution, delivery or performance of this Agreement and
the other Loan Documents, except for those already duly obtained.

12.3. Due Execution. Every Loan Document to which a Covered Person is a
party has been executed on behalf of such Covered Person by a Person duly
authorized to do so.

12.4. Enforceability of Obligations. Each of the Loan Documents to which
a Covered Person is a party constitutes the legal, valid and binding
obligation of such Covered

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Person, enforceable against such Covered
Person in accordance with its terms, except to the extent that the
enforceability thereof against such Covered Person may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar Laws
affecting creditors’ rights generally or by equitable principles of
general application.

12.5. Burdensome Obligations. No Covered Person is a party to or bound
by any Contract or is subject to any provision in the Charter Documents
of such Covered Person which would, if performed by such
Covered Person, result in a Default or Event of Default either
immediately or upon the elapsing of time.

12.6. Legal Restraints. The execution and performance of any Loan
Document by a Covered Person will not violate or constitute a default
under the Charter Documents of such Covered Person, any Material
Agreement of such Covered Person, or any Material Law, and will not,
except as expressly contemplated or permitted in this Agreement, result
in any Security Interest being imposed on any of such Covered Person’s
property.

12.7. Labor Contracts and Disputes. There is no collective bargaining
agreement or other labor contract covering employees of a Covered Person.
No union or other labor organization is seeking to organize, or to be
recognized as, a collective bargaining unit of employees of a Covered
Person. There is no pending or, to Borrower’s knowledge, threatened,
strike, work stoppage, material unfair labor practice claim or other
material labor dispute against or affecting any Covered Person or its
employees.

12.8. No Material Proceedings. There are no Material Proceedings
pending or, to the best knowledge of Borrower, threatened, against any
Covered Person, except as set forth in Section 12.8 of the Disclosure
Schedule.

12.9. Material Licenses. All Material Licenses have been obtained or
exist for each Covered Person.

12.10. Compliance with Material Laws. Each Covered Person is in
compliance in all material respects with all Material Laws. Without
limiting the generality of the foregoing:

12.10.1. General Compliance with Environmental Laws and Employment
Laws. The operations and employee compensation practices of every
Covered Person comply in all material respects with all applicable
Environmental Laws and Employment Laws which are Material Laws.

12.10.2. Proceedings. None of the operations of any Covered Person
are the subject of any judicial or administrative complaint, order
or proceeding alleging the violation of any applicable
Environmental Laws or Employment Laws which are Material Laws.

12.10.3. Investigations Regarding Hazardous Materials. None of the
operations of any Covered Person are, or in the past six years have
been, the subject of investigation by any Governmental Authority
regarding the improper transportation, storage, disposal,
generation or release into the environment of any

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Hazardous
Material, the results of which have or are reasonably likely to
have a
Material Adverse Effect on such Covered Person, or reduce
materially the value of the Collateral.

12.10.4. Notices and Reports Regarding Hazardous Materials. No
notice or report under any Environmental Law indicating a past or
present spill or release into the environment of any Hazardous
Material has been filed within the six years ending on the
Execution Date, or is required to be filed, by any Covered Person.

12.10.5. Environmental Property Transfer Acts. No Environmental
Property Transfer Acts are applicable to the transactions
contemplated by this Agreement or the Acquisition Documents and
each Covered Person has provided all notices and obtained all
necessary environmental permit transfers and consents, if any,
required in order to consummate the transactions contemplated by
this Agreement or the Acquisition Documents, to perfect
Administrative Agent’s Security Interests for the benefit of
Lenders and to operate such Covered Person’s business as presently
or proposed to be operated.

12.11. Other Names. No Covered Person has used any name other than the
full name which identifies such Covered Person in this Agreement. The
only trade name or style under which a Covered Person sells Inventory or
creates Accounts, or to which instruments in payment of Accounts are made
payable, is the name which identifies such Covered Person in this
Agreement.

12.12. Consummation of Current Acquisition, and Approved Acquisitions.
Borrower has delivered to Administrative Agent complete and correct
executed copies of the Acquisition Documents for the Current Acquisition,
and, when applicable, the Approved Acquisitions. Such Acquisition
Documents have been duly authorized and executed and are the valid and
binding obligation of Borrower and, to Borrower’s knowledge, the other
parties thereto and are enforceable in accordance with their terms except
to the extent that the enforceability thereof against such Covered Person
may be limited by bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ rights generally or by equitable
principles of general application. All Covered Persons, and to the best
of Borrower’s knowledge, all other parties to such Acquisition Documents,
have to date performed all obligations, covenants, and conditions
required of it prior to or as a condition to the consummation of the
transactions contemplated by such Acquisition Documents to which it is a
party other than any such obligation, covenant, or condition that has
been waived. Borrower is not in default of any of its obligations under
the Acquisition Documents for the Current Acquisition, and all
representations and warranties of Borrower in such Acquisition Documents
are complete and correct in all material respects as of the Effective
Date as if made on and as of such date. Further, with respect to any
Approved Acquisition, Borrower is not in default of any of its
obligations under the applicable Acquisition Documents for such Approved
Acquisition, and all representations and warranties of Borrower in such
Acquisition Documents are complete
and correct in all material respects as of the date the Administrative
Agent makes any Advance to Borrower for its use in funding the purchase
price of such Approved

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Acquisition as if made on and as of such date. To
the knowledge of Borrower after due inquiry, all of the representations
and warranties of the Sellers contained in the Acquisition Documents for
the Current Acquisition or any instrument furnished in connection
therewith or in reference thereto are true and correct in all material
respects as of the Effective Date as if made on and as of such date.
Further, to the knowledge of Borrower after due inquiry, all of the
representations and warranties of the Sellers contained in any
Acquisition Documents for the Approved Acquisition or any instrument
furnished in connection therewith or in reference thereto are true and
correct in all material respects as of the date the Administrative Agent
makes any Advance to Borrower for its use in funding the purchase price
of such Approved Acquisition as if made on and as of such date.

12.13. Prior Transactions. Except as set forth in Section 12.13 of the
Disclosure Schedule, within the past five (5) years, no Covered Person
has been a party to any merger or consolidation, or acquired all or
substantially all of the assets of any Person.

12.14. Capitalization. As of the Effective Date, Borrower’s authorized
capital stock, and issued and outstanding capital stock, are as described
in Section 12.14 of the Disclosure Schedule, and all issued and
outstanding shares of Borrower are validly issued and outstanding, fully
paid and non-assessable.

12.15. Solvency. Borrower is Solvent prior to and after giving effect
to, the transactions contemplated by the Acquisition Documents for the
Current Acquisition, and the making of the Initial Term Loan A Advance
and initial Revolving Loan Advance on the Effective Date.

12.16. Projections; Pro Forma Balance Sheet. The projections of
Borrower’s annual financial condition, results of operations, and cash
flow for the period ending as of the Effective Date and for the periods
ending 3/31/05, 3/31/06, 3/31/07, 3/31/08 and 3/31/09, a copy of which
have been delivered to Administrative Agent, represent Borrower’s good
faith best estimate of Borrower’s future financial performance for the
periods set forth therein. Such projections have been prepared on the
basis of the assumptions set forth therein, which Borrower believes are
fair and reasonable in light of current and reasonably foreseeable
business conditions. The pro forma balance sheet of Borrower as of the
Effective Date, a copy of which has been provided by Borrower to
Administrative Agent, has been prepared in accordance with GAAP exclusive
of footnotes and normal year end adjustments and presents fairly and
accurately Borrower’s financial condition as of the Effective Date as if
the transactions contemplated by the Acquisition Documents for the
Current Acquisition had occurred on the Effective Date.

12.17. Financial Statements. The Financial Statements are complete and
correct in all material respects, have been prepared in accordance with
GAAP, and reflect in all material respects the financial
condition, results of operations and cash flows of the Persons covered
thereby as of the dates and for the periods stated therein, subject in
the case of interim Financial Statements to the absence of footnotes and
normal year-end adjustments made in accordance with GAAP.

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12.18. No Change in Condition. Since the date of the Financial
Statements delivered to Administrative Agent as required herein, there
has been no change which has or is reasonably likely to have a Material
Adverse Effect on any Covered Person.

12.19. Investments. No Covered Person has any Investments in other
Persons except existing Permitted Investments.

12.20. Indebtedness. No Covered Person has any Indebtedness except
existing Permitted Indebtedness.

12.21. Indirect Obligations. No Covered Person has any Indirect
Obligations except existing Permitted Indirect Obligations.

12.22. Operating Leases. As of the Effective Date, no Covered Person has
an interest as lessee under any Operating Leases other than (a) leases of
non-material items of office equipment; and (b) short-term leases for
office space, none of which is material to the business of any Covered
Person except as set forth in Section 12.22 of this Disclosure Schedule.

12.23. Capital Leases. No Covered Person has an interest as a lessee
under any Capital Leases other than Capital Leases that are Permitted
Indebtedness.

12.24. Tax Liabilities; Governmental Charges. Each Covered Person has
filed or caused to be filed all tax reports and returns required to be
filed by it with any Governmental Authority, except where extensions have
been properly obtained. Each Covered Person has paid or made adequate
provision for payment of all Taxes of such Covered Person, except Taxes
which are being diligently contested in good faith by appropriate
proceedings and as to which such Covered Person has established adequate
reserves in conformity with GAAP. No Security Interest for any such Taxes
has been filed and no claims are being asserted with respect to any such
Taxes which, if adversely determined, has or is reasonably likely to have
a Material Adverse Effect on such Covered Person. There are no material
unresolved issues concerning any liability of a Covered Person for any
Taxes which will have or is reasonably likely to have a Material Adverse
Effect on such Covered Person.

12.25. Pension Benefit Plans. All Pension Benefit Plans maintained by
each Covered Person or an ERISA Affiliate of such Covered Person that are
intended to qualify under Section 401 of the Code are duly qualified
under Section 401 of the Code. All Pension Benefit Plans maintained by
each Covered Person on an ERISA Affiliate of such Covered Person are in
compliance with
the provisions of ERISA and all other Material Laws. Except with respect
to events or occurrences which do not have and are not reasonably likely
to have a Material Adverse Effect on any Covered Person:

12.25.1. Prohibited Transactions. None of such Pension Benefit
Plans has participated in, engaged in or been a party to any
non-exempt prohibited transaction as defined in ERISA or the Code,
and no officer, director or employee of such Covered Person or of
an ERISA Affiliate of such Covered

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Person has committed a breach of
any of the responsibilities or obligations imposed upon fiduciaries
by Title I of ERISA.

12.25.2. Claims. There are no claims, pending or threatened,
involving any such Pension Benefit Plan by a current or former
employee (or beneficiary thereof) of such Covered Person or ERISA
Affiliate of such Covered Person, nor is there any reasonable basis
to anticipate any claims involving any such Pension Benefit Plan
which would likely be successfully maintained against such Covered
Person or such ERISA Affiliate.

12.25.3. Reporting and Disclosure Requirements. There are no
violations of any reporting or disclosure requirements with respect
to any such Pension Benefit Plan and none of such Pension Benefit
Plans has violated any applicable Law, including ERISA and the
Code.

12.25.4. Accumulated Funding Deficiency. No such Pension Benefit
Plan has (i) incurred an accumulated funding deficiency (within the
meaning of Section 412(a) of the Code), whether or not waived; (ii)
been a Pension Benefit Plan with respect to which a Reportable
Event (to the extent that the reporting of such events to the PBGC
within thirty days of the occurrence has not been waived) has
occurred and is continuing; or (iii) been a Pension Benefit Plan
with respect to which there exist conditions or events which have
occurred that present a significant risk of termination of such
Pension Benefit Plan by the PBGC.

12.25.5. Multi-employer Plan. All Multi-employer Plans to which
any Covered Person contributes or is obligated to contribute are
listed in Section 12.26.5 of the Disclosure Schedule. No Covered
Person or ERISA Affiliate of such Covered Person has received
notice that any such Multi-employer Plan is in reorganization or
has been terminated within the meaning of Title IV of ERISA, and no
such Multi-employer Plan is reasonably expected to be in
reorganization or to be terminated within the meaning of Title IV
of ERISA.

12.26. Welfare Benefit Plans. No Covered Person or ERISA Affiliate of
any Covered Person maintains a Welfare Benefit Plan that has a liability
which, if enforced or collected, has or is reasonably likely to have a
Material Adverse Effect on any Covered Person. Each Covered Person and
each ERISA
Affiliate of any Covered Person has complied in all material respects
with the applicable requirements of Section 4980B of the Code pertaining
to continuation coverage as mandated by COBRA.

12.27. Retiree Benefits. No Covered Person or ERISA Affiliate of such
Covered Person has an obligation to provide any Person with any medical,
life insurance, or similar benefit following such Person’s retirement or
termination of employment (or to such Person’s beneficiary subsequent to
such Person’s death) other than (i) such benefits provided to Persons at
such Person’s sole expense and (ii) obligations under COBRA.

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12.28. Distributions. No Distribution other than as allowed in Section
15.10 has been or shall be declared, paid or made upon or in respect of
any capital stock of Borrower on and after the Execution Date, except as
expressly permitted hereby.

12.29. Real Property. No Covered Person owns any real property.

12.30. State of Collateral and Other Property. Each Covered Person has
good and marketable or merchantable title to all real and personal
property purported to be owned by it or reflected in the Initial
Financial Statements, except for personal property sold in the ordinary
course of business or otherwise in accordance with the terms of Section
15.9 of this Agreement after the date of the Initial Financial
Statements. There are no Security Interests on any of the property
purported to be owned by any Covered Person, including the Collateral,
except existing Permitted Security Interests. Each material tangible
item of Personal Property Collateral purported to be owned by a Covered
Person is in generally good operating condition and repair and is
suitable for the use to which it is customarily put by its owner. Without
limiting the generality of the foregoing:

12.30.1. Accounts. With respect to each Account scheduled, listed
or referred to in reports submitted by any Covered Person to
Administrative Agent pursuant to the Loan Documents, except as
disclosed therein: (i) the Account arose from a bona fide
transaction completed in all material respects in accordance with
the terms of any documents pertaining to such transaction; (ii) the
Account is not evidenced by a judgment and there is no material
dispute respecting it; (iii) the amount of the Account as shown on
the applicable Covered Person’s books and records and all invoices
and statements which may be delivered to Administrative Agent with
respect thereto are actually and absolutely owing to the applicable
Covered Person and are not in any way contingent; (iv) there are no
material setoffs, counterclaims or disputes existing or asserted
with respect to the Account and the applicable Covered Person has
not made any agreement with any Account Debtor for any deduction
therefrom except a discount or allowance allowed by the applicable
Covered Person in the ordinary course of its business for prompt
payment; (v) Borrower has no knowledge of any material facts,
events or occurrences which in any way impair
the validity or enforcement of the Account or tend to reduce the
amount payable thereunder as shown on the applicable Covered
Person’s books and records and all invoices and statements
delivered to Administrative Agent with respect thereto; (vi) the
Account is assignable; (vii) the Account arose in the ordinary
course of the applicable Covered Person’s business; (viii) to such
Covered Person’s best knowledge, the Account Debtor with respect to
the Account has the capacity to contract; (ix) the services
furnished and/or goods sold giving rise to the Account were not, at
the time furnished or sold, subject to any Security Interest except
the first priority, perfected Security Interest granted to
Administrative Agent for the benefit of Lenders and except the
Permitted Security Interests; and (x) to such Covered Person’s best
knowledge, there are no material proceedings or actions which are
threatened or pending against the Account Debtor with respect to
the Account.

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12.30.2. Inventory. With respect to Inventory scheduled, listed or
referred to in any certificate, schedule, list or report given by
any Covered Person, except as disclosed therein: (i) such Inventory
(except for Inventory in transit) is located at one or another of
the premises listed in Section 12.30.2 of the Disclosure Schedule;
(ii) the applicable Covered Person has good and merchantable title
to such Inventory subject to no Security Interest whatsoever except
for the first priority, perfected Security Interest granted to
Administrative Agent for the benefit of Lenders and except for
existing Permitted Security Interests; (iii) such Inventory is of
generally good and merchantable quality, free from any material
defects; (iv) such Inventory is not subject to any licensing,
patent, royalty, trademark, trade name or copyright agreements with
any third parties; and (v) the completion of manufacture and sale
or other disposition of such Inventory by Administrative Agent or
Lenders following an Event of Default shall not require the consent
of any Person and shall not constitute a breach or default under
any contract or agreement to which any Covered Person is a party or
to which the Inventory is subject.

12.30.3. Equipment. With respect to each Covered Person’s owned
equipment: (i) such Covered Person has good and marketable title
thereto; (ii) none of such equipment is subject to any Security
Interests except for the first priority, perfected Security
Interest granted to Administrative Agent for the benefit of Lenders
pursuant hereto and except for Permitted Security Interests; and
(iii) all such equipment is generally in good operating condition
and repair, ordinary wear and tear alone excepted, and is suitable
for the uses to which customarily put in the conduct of such
Covered Person’s business.

12.30.4. Intellectual Property. With respect to the Intellectual
Property of the Covered Persons: (i) Section 12.30.4 of the
Disclosure Schedule contains a complete and correct list of all of
each Covered Person’s registered Intellectual Property, (ii) the
Covered Person listed on the Disclosure Schedule as the owner
thereof owns all right, title
and interest in, under and to such Intellectual Property, subject
to no licenses or any interest therein or other agreements relating
thereto, except for the Intellectual Property Assignments; (iii)
none of such Intellectual Property is subject to any pending or, to
such Covered Person’s knowledge, threatened challenge; (iv) to the
knowledge of such Covered Person, such Covered Person has not
committed any patent, trademark, trade name, service mark or
copyright infringement, and the present conduct of such Covered
Person’s business does not infringe any patents, trademarks, trade
name rights, service marks, copyrights, publication rights, trade
secrets or other proprietary rights of any Person; and (v) there
are no claims or demands of any Person pertaining to, or any
proceedings which are pending or, to the knowledge of such Covered
Person, threatened, which challenge such Covered Person’s rights in
respect of any proprietary or confidential information or trade
secrets used in the conduct of such Covered Person’s business.

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12.30.5. Documents, Instruments and Chattel Paper. All documents,
instruments and chattel paper describing, evidencing or
constituting Collateral, and all signatures and endorsements of all
Covered Persons thereon, are complete, valid, and genuine, and to
the best of Borrower’s knowledge, all signatures and endorsements
of all parties other than Covered Persons are complete, valid and
genuine. All goods evidenced by such documents, instruments and
chattel paper are owned by a Covered Person free and clear of all
Security Interests other than Permitted Security Interests.

12.31. Chief Place of Business; Locations of Collateral. As of the
Execution Date,

12.31.1. The only chief executive office and the principal places
of business of each Covered Person are located at the places listed
and so identified in Section 12.32.1 of the Disclosure Schedule and
the state of incorporation or organization for each Covered Person
is as identified in Section 12.31.1 of the Disclosure Schedule;

12.31.2. The books and records of each Covered Person, and all of
such Covered Person’s chattel paper and all records of Accounts,
are located only at the places listed and so identified in Section
12.31.2 of the Disclosure Schedule; and

12.31.3. All of the tangible Collateral (except for Inventory which
is in transit) is located only at the places listed and so
identified in Section 12.31.3 of the Disclosure Schedule; no
Covered Person has an office or place of business other than as
identified in Section 12.31.3 of the Disclosure Schedule.

12.32. Negative Pledges. No Covered Person is a party to or bound by any
material Contract which prohibits the creation or existence of any
Security Interest upon or assignment or conveyance of any of the
Collateral. In addition to the foregoing and not in limitation thereof,
no Covered Person
is party to or bound by any Contract with the United States or any other
department, agency, public corporation, or other instrumentality thereof
which prohibits the creation or existence of any Security Interest upon
or assignment or conveyance of any of the Collateral.

12.33. Security Documents.

12.33.1. Security Agreements. Each Security Agreement is effective
to grant to Administrative Agent for the benefit of Lenders an
enforceable Security Interest in the Personal Property Collateral
described therein. Upon appropriate filing (as to all Personal
Property Collateral in which a Security Interest may be perfected
under the applicable state’s UCC by filing a financing statement)
or Administrative Agent’s taking possession (as to items of the
Personal Property Collateral of which a secured party must take
possession in order to perfect a Security Interest under the
applicable state’s UCC) or Administrative Agent’s taking control
(as to items of the Personal Property Collateral of which a secured
party must take control in order to perfect a security interest
under the applicable

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state’s UCC), Administrative Agent will have a
fully perfected first priority Security Interest in the Personal
Property Collateral described in each Security Agreement, subject
only to Permitted Security Interests affecting such Personal
Property Collateral.

12.33.2. Collateral Assignments.

12.33.2.1. Intellectual Property Assignments. Each
Intellectual Property Assignment is effective to grant to
Administrative Agent for the benefit of Lenders an
enforceable first priority security interest in all the
Intellectual Property described therein, subject only to
Permitted Security Interests affecting such Intellectual
Property. Upon appropriate filing in the United States
Patent and Trademark Offices and the United States Copyright
Office, as well as the appropriate filing of a financing
statement, Administrative Agent’s Security Interest in the
Intellectual Property will be fully perfected.

12.33.2.2. Pledge Agreement. Each Pledge Agreement is
effective to grant to Administrative Agent for the benefit of
Lenders an enforceable first priority Security Interest in
all the stock, membership interests, and other securities
described therein.

12.33.2.3. Acquisition Documents Assignment. The Acquisition
Documents Assignment is effective to grant to Administrative
Agent for the benefit of Lenders an enforceable first
priority Security Interest in and
lien on all of Borrower’s rights, remedies, claims and
interests under the Acquisition Documents covered thereby.

12.34. S Corporation. As of the Effective Date and thereafter, there is
no election in effect under Section 1362(a) of the Code for any Covered
Person to be treated as an S Corporation as defined in Section 1361 (a)
of the Code.

12.35. Subsidiaries and Affiliates. Borrower has no Subsidiaries, except
for those Subsidiaries listed in Section 12.35 of the Disclosure
Schedule.

12.36. Bank Accounts and Lockboxes. All bank accounts maintained by any
Covered Person with any bank or other financial institution are described
in Section 12.36 of the Disclosure Schedule.

12.37. Margin Stock. No Covered Person is engaged or will engage,
principally or as one of its important activities, in the business of
extending credit for the purpose of purchasing or carrying margin stock
(within the meaning of Regulation U). Except for the Repurchases, no part
of the proceeds of any Advance will be used to purchase or carry any such
margin stock, or to extend credit to others for the purpose of purchasing
or carrying any such margin stock. No part of the proceeds of any
Advance will be used for any purpose which violates, or which would be
inconsistent with, the provisions of

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Regulation U. None of the
transactions contemplated by any of the Acquisition Documents will
violate Regulations T, U or X of the FRB.

12.38. Securities Matters. No proceeds of any Advance will be used to
acquire any security in any transaction which is subject to Sections 13
and 14 of the Securities Exchange Act of 1934.

12.39. Investment Company Act, Etc. No Covered Person is an investment
company registered or required to be registered under the Investment
Company Act of 1940, or a company controlled (within the meaning of such
Investment Company Act) by such an investment company or an affiliated
person of, or promoter or principal underwriter for, an investment
company, as such terms are defined in the Investment Company Act of 1940.
No Covered Person is subject to regulation under the Public Utility
Holding Company Act of 1935, the Federal Power Act, the Interstate
Commerce Act or any other Law limiting or regulating its ability to incur
Indebtedness for money borrowed.

12.40. No Material Misstatements or Omissions. Neither the Loan
Documents, any of the Financial Statements nor any statement, list,
certificate or other information furnished or to be furnished by Borrower
or any other Covered Person to Administrative Agent or Lenders in
connection with the Loan Documents or any of the transactions
contemplated thereby contains any untrue statement of a material fact, or
omits to state a material fact necessary to make the statements therein
not materially misleading. Borrower has
disclosed to Administrative Agent and Lenders everything of which
Borrower has knowledge regarding the business, operations, property,
financial condition, or business prospects or itself and every Covered
Person that has or is reasonably likely to have a Material Adverse Effect
on any Covered Person.

12.41. Filings. All registration statements, reports, proxy statements
and other documents, if any, required to be filed by any Covered Person
with the Securities and Exchange Commission pursuant to the Securities
Act of 1933, and the Securities Exchange Act of 1934, have been filed,
and such filings are complete and accurate in all material respects and
contain no untrue statements of material fact or omit to state any
material facts required to be stated therein or necessary in order to
make the statements therein not misleading, and all capital stock of any
covered Person that is issued and outstanding has been sold pursuant to
transactions that are registered under the Securities Act of 1933 or that
are exempt thereunder.

12.42. Broker’s Fees. No broker or finder is entitled to compensation
for services rendered with respect to the transactions contemplated by
this Agreement or the Acquisition Documents.

12.43. No Hart-Scott Rodino Filing Required. None of the Covered
Persons, any Guarantor, or Seller was required to file notification under
the Hart-Scott Rodino Antitrust Improvement Act of 1976, or to notify or
obtain the approval of any Governmental Authority in connection with the
Current Acquisition or any other

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Permitted Acquisition, unless such
notification was filed or such approval was obtained, as the case may be.

12.44. Eligibility of Collateral. Each Account which Borrower, expressly
or by implication, requests Administrative Agent to classify as an
Eligible Account will, as of the time when such request is made, conform
in all respects to the requirements of such classification set forth in
the definition of Eligible Accounts herein.

13. Modification and Survival of Representations. Borrower may at any time
after the initial Advances are made propose to Lenders in writing to modify the
representations and warranties in Section 12, the representations and
warranties in any other Loan Document and any other representation or warranty
made in any certificate, report, opinion or other document delivered by
Borrower pursuant to the Loan Documents. If the proposed modifications are
satisfactory to Required Lenders as evidenced by their written assent thereto,
then such representations and warranties shall be deemed and treated as so
modified, but only as of the date of Borrower’s written modification proposal.
If such proposed modifications are not satisfactory to Required Lenders, then
such proposed modifications shall not be deemed or treated as modifying such
representations and warranties. All such representations and warranties, as
made or deemed made as of a particular time, shall survive execution of each of
the Loan Documents and the making of every Advance, and may be relied upon by
Administrative Agent and Lenders as being true and correct in all material
respects as of the date when made or deemed made until all
of the Loan Obligations are fully and indefeasibly paid, no Letters of Credit
are outstanding and the Letter of Credit Exposure is irreversibly zero.

14. Affirmative Covenants. Borrower covenants and agrees that, while any of
the Commitments remains in effect and until all of the Loan Obligations are
fully and indefeasibly paid, no Letters of Credit are outstanding and the
Letter of Credit Exposure is irreversibly zero, Borrower shall do, or cause to
be done, the following:

14.1. Use of Proceeds. Subject to the terms and conditions hereof, (i)
the proceeds of the Term Loan A Advance disbursed on the Effective Date
shall be used solely to refinance the existing Indebtedness of Borrower
under the Original Loan Agreement and to pay a portion of the purchase
price for the Current Acquisition, (ii) the proceeds of any subsequent
Term Loan A Advance or Term Loan B Advance shall be used solely to pay
the purchase price of the Approved Acquisitions, and (iii) the proceeds
of Revolving Loan Advances shall be used solely for working capital,
capital expenditures permitted hereunder, as the source for payment of
Borrower’s reimbursement obligations with respect to Letters of Credit,
to pay the transaction costs for this Loan Agreement, to finance a
portion of the Current Acquisition, Approved Acquisitions and Permitted
Acquisitions, and to finance Repurchases but only so long as (a) the
cumulative aggregate amount of all Revolving Loan Advances utilized to
effect the Repurchases are not greater than Five Million and No/100
Dollars ($5,000,000.00) in the aggregate; (b) there is no Default
hereunder at the time of any such Repurchase; and (c) the Maximum
Available Amount that is available to Borrower under the Aggregate
Revolving Loan Commitment immediately following any Revolving Loan
Advance made to finance Repurchases is not less than Five Million and
No/100 Dollars ($5,000,000.00).

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14.2. Corporate Existence. Each Covered Person shall maintain its
existence in good standing and shall maintain in good standing its right
to transact business in those states in which it is now or hereafter
doing business, except where the failure to so qualify will not have and
will not be reasonably likely to have a Material Adverse Effect on any
Covered Person. Each Covered Person shall obtain and maintain all
Material Licenses for such Covered Person.

14.3. Maintenance of Property and Leases. Each Covered Person shall
maintain in good condition and working order, and repair and replace as
required, all buildings, equipment, machinery, fixtures and other real
and personal property whose useful economic life has not elapsed and
which is necessary for the ordinary conduct of the business of such
Covered Person. Each Covered Person shall maintain in good standing and
free of defaults all of its leases of buildings, equipment, machinery,
fixtures and other real and personal property whose useful economic life
has not elapsed and which is necessary for the ordinary conduct of the
business of such Covered Person. No Covered Person shall permit any of
its owned equipment or other owned property to become a fixture to real
property or an accession to other personal property unless Administrative
Agent has a valid, perfected and first priority Security Interest for the
benefit of Lenders in such real or personal property.

14.4. Inventory. Each Covered Person shall keep its Inventory in good
and merchantable condition at its own expense and shall hold such
Inventory for sale or lease, or to be furnished in connection with the
rendition of services, in the ordinary course of such Covered Person’s
business, on terms which do not include bill-and-hold, guarantied sale,
sale and return, sale on approval, consignment or similar repurchase or
return terms. All such Inventory shall be produced in accordance with the
Federal Fair Labor Standards Act of 1938 and all rules, regulations, and
orders thereunder.

14.5. Insurance. Each Covered Person shall at all times keep insured or
cause to be kept insured, in insurance companies having a rating of at
least “A” by Best’s Rating Service, all property owned by it of a
character usually insured by others carrying on businesses similar to
that of such Covered Person in such manner and to such extent and
covering such risks as such properties are usually insured. Each Covered
Person shall carry, business interruption insurance in such amounts, in
such manner and to such extent and covering such risks as businesses
similar to that of such Covered Persons are usually insured. Each Covered
Person shall at all times carry insurance, in insurance companies having
a rating of at least “A” by Best’s Rating Service, against liability on
account of damage to persons or property (including product liability
insurance and insurance required under all Laws pertaining to workers’
compensation) and covering all other liabilities common to such Covered
Person’s business, in such manner and to such extent as such coverage is
usually carried by others conducting businesses similar to that of such
Covered Person (and each Covered Person shall maintain liability
coverage, including tail coverage, in the amounts in effect for such
Covered Person on the Effective Date). All policies of liability
insurance maintained hereunder shall name Administrative Agent as an
additional insured for the benefit of Lenders; all policies of property
insurance maintained hereunder shall reflect Administrative Agent’s
interest therein as mortgagee

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for the benefit of Lenders under a standard
New York or Union mortgagee clause. Administrative Agent is authorized,
but not obligated, as the attorney-in-fact for Borrower and for the
benefit of Lenders, at any time when there does not then exist an Event
of Default, with Borrower’s consent (which consent shall not be
unreasonably withheld), and when an Event of Default is in existence,
without Borrower’s consent, to (i) adjust and compromise proceeds payable
under such policies of insurance, (ii) collect, receive and give receipts
for such proceeds in the name of Borrower, Administrative Agent and
Lenders, and (iii) to endorse Borrower’s name upon any instrument in
payment thereof. Such power granted to Administrative Agent shall be
deemed coupled with an interest and shall be irrevocable. All policies of
insurance maintained hereunder shall contain a clause providing that such
policies may not be canceled, reduced in coverage or otherwise modified
without 30 days prior written notice to Administrative Agent. Borrower
shall upon request of Administrative Agent at any time furnish to
Administrative Agent updated evidence of insurance (in the form required
as a condition to Administrative Agent’s lending hereunder) for such
insurance.

14.6. Payment of Taxes and Other Obligations. Each Covered Person shall
promptly pay and discharge
or cause to be paid and discharged, as and when due, any and all income
taxes, federal or otherwise, lawfully assessed and imposed upon it, and
any and all lawful taxes, rates, levies, and assessments whatsoever upon
its properties and every part thereof, or upon the income or profits
therefrom and all claims of materialmen, mechanics, carriers,
warehousemen, landlords and other like Persons for labor, materials,
supplies, storage or other items or services which if unpaid might be or
become a Security Interest or charge upon any of its property; provided,
however, that a Covered Person may diligently contest in good faith by
appropriate proceedings the validity of any such taxes, rates, levies, or
assessments, provided such Covered Person has established adequate
reserves therefor in conformity with GAAP on the books of such Covered
Person, and no Security Interest, other than a Permitted Security
Interest, results from such non-payment.

14.7. Compliance With Laws. Each Covered Person shall comply in all
material respects with all Material Laws and each Covered Person shall
ensure, and cause each other Covered Person to ensure, that no Person who
owns a controlling interest in or otherwise controls a Covered Person is
or shall be (i) listed on the Specially Designated Nationals and Blocked
Person List maintained by the Office of Foreign Assets Control (OFAC),
Department of the Treasury, and/or any other similar lists maintained by
OFAC pursuant to any authorizing statute, Executive Order or regulation
or (ii) a person designated under Section 1(b), (c) or (d) of Executive
Order No. 13224 (September 23, 2001), any related enabling legislation or
any other similar Executive Orders, and each Covered Person shall comply,
and cause each other Covered Person to comply, with all applicable Bank
Secrecy Act (“BSA”) and anti-money laundering laws and regulations.

14.8. Discovery and Clean-Up of Hazardous Material.

14.8.1. In General. Upon any Covered Person receiving notice of
any violation of Environmental Laws or any similar notice described
in Section 12.10.3, or upon any Covered Person otherwise
discovering Hazardous Material on any

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property owned or leased by
such Covered Person which is in violation of, or which would result
in liability under, any Environmental Law, Borrower shall: (i)
promptly take such reasonable acts as may be necessary to prevent
danger or harm to the property or any person therein as a result of
such Hazardous Material; (ii) at the request of Administrative
Agent, and at Borrower’s sole cost and expense, obtain and deliver
to Administrative Agent promptly, but in no event later than 90
days after such request, a then currently dated environmental
assessment of the property certified to Administrative Agent and
any future holder of the Loan Obligations, a proposed plan for
responding to any environmental problems described in such
assessment, and an estimate of the costs thereof; and (iii) take
all necessary steps to initiate and expeditiously complete all
removal, remedial, response, corrective and other action to
eliminate any such environmental problems, and keep Administrative
Agent informed of such actions and the results thereof.

14.8.2. Asbestos Clean-Up. In the event that any property owned by
any Covered Person contains Asbestos Material, Borrower shall
develop and implement, as soon as reasonably possible, an
Operations and Maintenance Program (as contemplated by EPA guidance
document entitled Managing Asbestos in Place; A Building Owner’s
Guide to Operations and Maintenance Programs for
Asbestos-Containing Materials) for managing in place the Asbestos
Material, and deliver a true, correct and complete copy of such
Operations and Maintenance Program to Administrative Agent. In the
event that the asbestos survey done in connection with developing
the Operations and Maintenance Program reveals Asbestos Material
which, due to its condition, location or planned building
renovation, is recommended to be encapsulated or removed, Borrower
shall promptly cause the same to be encapsulated or removed and
disposed of offsite, in either case by a licensed and experienced
asbestos contractor, all in accordance with applicable state,
federal and local Laws. Upon completion of any such encapsulation
or removal, Borrower shall deliver to Administrative Agent a
certificate in such form as is then customarily available signed by
the consultant overseeing the activity certifying to Administrative
Agent that the work has been completed in compliance with all
applicable Laws regarding notification, encapsulation, removal and
disposal and that no airborne fibers beyond permissible exposure
limits remain on site. All costs of such inspection, testing and
remedial actions shall be paid by Borrower.

14.9. Termination of Pension Benefit Plan. No Covered Person or ERISA
Affiliate of such Covered Person shall terminate or amend any Pension
Benefit Plan maintained by such Covered Person or such ERISA Affiliate if
such termination or amendment would result in any liability to such
Covered Person or such ERISA Affiliate under ERISA or any increase in
current liability for the plan year for which such Covered Person or such
ERISA Affiliate is required to provide security to such Pension Benefit
Plan under the Code, which such liability could reasonably be expected to
have a Material Adverse Effect on such Covered Person.

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14.10. Notice to Administrative Agent of Material Events. Borrower
shall, promptly upon any Responsible Officer of Borrower obtaining
knowledge or notice thereof, give notice to Administrative Agent of (i)
any breach of any of the covenants in Section 14, 15, or 16; (ii) any
Default or Event of Default; (iii) the commencement of any Material
Proceeding; and (iv) any loss of or damage to any assets of a Covered
Person or the commencement of any proceeding for the condemnation or
other taking of any of the assets of a Covered Person, if
Insurance/Condemnation Proceeds in excess of $100,000.00 are likely to be
payable as a consequence of such loss, damage or proceeding, or if such
loss, damage or proceeding has or is reasonably likely to have a Material
Adverse Effect on such Covered Person. In addition,

14.10.1. Borrower shall furnish to Administrative Agent from time
to time all information which Administrative Agent reasonably
requests with respect to the status of any Material Proceeding.

14.10.2. Borrower shall furnish to Administrative Agent from time
to time all information which Administrative Agent reasonably
requests with respect to any Pension Benefit Plan established by a
Covered Person or an ERISA Affiliate of any Covered Person.

14.10.3. Borrower shall deliver notice to Administrative Agent of
the establishment of any Pension Benefit Plan by a Covered Person
or an ERISA Affiliate of such Covered Person.

14.10.4. Borrower shall promptly deliver to Administrative Agent
notice of any event of default with respect to any of the Permitted
Indebtedness, the occurrence of which would be reasonably likely to
have a Material Adverse Effect.

14.10.5. Borrower shall promptly deliver notice to Administrative
Agent of the assertion by the holder of any capital stock,
membership interest, or any other equity interest in a Covered
Person or any Indebtedness of a Covered Person in the outstanding
principal amount in excess of $100,000.00 that a default exists
with respect thereto or that such Covered Person is not in
compliance with the terms thereof, or of the threat or commencement
by such holder of any enforcement action because of such asserted
default or noncompliance and such assertion, threat or commencement
would be reasonably likely to have a Material Adverse Effect.

14.10.6. Borrower shall, promptly after becoming aware thereof,
deliver notice to Administrative Agent of any pending or threatened
strike, work stoppage, material unfair labor practice claim or
other material labor dispute affecting a Covered Person.

14.10.7. Borrower shall deliver notice to Administrative Agent of
any change in the name, state of organization, or form of
organization of any Covered Person, at least 30 days prior to such
change.

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14.10.8. Borrower shall, promptly after becoming aware thereof,
deliver notice to Administrative Agent of any event that has or is
reasonably likely to have a Material Adverse Effect.

14.10.9. Borrower shall, promptly after becoming aware thereof,
deliver notice to Administrative Agent of an actual, alleged, or
potential violation of any Material Law applicable to a Covered
Person or the property of a Covered Person if such violation would
reasonably be likely to have a Material Adverse Effect.

14.10.10. Borrower shall notify Administrative Agent promptly in
writing of any fact or condition of which Borrower is aware which
materially and adversely affects the value of the Collateral,
including any adverse fact or condition or the occurrence of any
event which causes loss or depreciation in the value of any
material item of the Collateral, and the amount of such loss or
depreciation. Borrower shall provide such additional information to
Administrative Agent regarding the amount of any loss or
depreciation in value of the Collateral as Administrative Agent may
request from time to time.

14.11. Borrowing Officer. Borrower shall keep on file with
Administrative Agent at all times an appropriate instrument naming each
Borrowing Officer.

14.12. Maintenance of Security Interests of Security Documents.

14.12.1. Preservation and Perfection of Security Interests.
Borrower shall promptly, upon the reasonable request of
Administrative Agent and at Borrower’s expense, execute,
acknowledge and deliver, or cause the execution, acknowledgment and
delivery of, and thereafter file or record in the appropriate
governmental office, any document or instrument supplementing or
confirming the Security Documents or otherwise deemed necessary by
Administrative Agent to create, preserve or perfect any Security
Interest purported to be created by the Security Documents or to
fully consummate the transactions contemplated by the Loan
Documents. The foregoing actions by Borrower shall include, upon
the reasonable request of Administrative Agent, (i) filing
financing or continuation statements, and amendments thereof, in
form and substance satisfactory to Administrative Agent; (ii)
delivering to Administrative Agent the originals of each
instrument, document and chattel paper in the principal amount of
$100,000 or more, and all other Collateral of which Administrative
Agent should have physical possession in accordance with applicable
law in order to perfect Administrative Agent’s Security Interest
for the benefit of Lenders therein, duly endorsed or assigned to
Administrative Agent without restriction; (iii) delivering to
Administrative Agent all letters of credit on which Borrower is
named beneficiary; (iv) placing a notice of the existence of
Administrative Agent’s Security Interest for the benefit of
Lenders, acceptable to Administrative Agent, upon the books and
records of Borrower pertaining to the Collateral, as designated by
Administrative Agent; (v) delivering to Administrative Agent or if
directed by Administrative Agent, to the applicable government
agency, such notices, filings, statements, continuations, or
amendments as Administrative

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 Agent shall deem necessary as
desirable to perfect its interest in that portion of the Collateral
that consists of Intellectual Property; and (vi) delivering to
Administrative Agent or if directed by Administrative Agent, to the
applicable government agency, such notices, filings, statements,
continuations or amendments as Administrative Agent shall deem
necessary or desirable to perfect
its interest in that portion of the Collateral that consists of
Accounts of a value in excess of $450,000.00 with respect to which
the Account Debtor is the United States of America or any
department agency, public corporation or other instrumentality
thereof. Borrower hereby authorizes Administrative Agent to file
any financing or continuation statements and amendments thereof
covering the Collateral of all Covered Persons in form and
substance satisfactory to Administrative Agent and ratifies
Administrative Agent’s authority to file any such statements or
amendments already filed.

14.12.2. Collateral Held by Warehouseman, Bailee, etc. If any
Collateral of a value in excess of $250,000.00 in the aggregate is
at any time in the possession or control of a warehouseman, bailee
or any of Borrower’s agents or processors, then Borrower shall
notify Administrative Agent thereof and shall notify such Person of
Administrative Agent’s Security Interest for the benefit of Lenders
in such Collateral and, upon Administrative Agent’s request,
instruct such Person to hold all such Collateral for Administrative
Agent’s account subject to Administrative Agent’s instructions. If
at any time any material portion of the Collateral as determined by
Administrative Agent in its reasonable discretion is located on any
premises that are not owned by a Covered Person, then Borrower, if
requested by Administrative Agent, shall obtain or cause to be
obtained written waivers, in form and substance satisfactory to
Administrative Agent, of all present and future Security Interests
to which the owner or lessor or any mortgagee of such premises may
be entitled to assert against the Collateral.

14.12.3. Compliance With Terms of Security Documents. Each Covered
Person shall comply with all of the terms, conditions and covenants
in the Security Documents to which such Covered Person is a party.

14.13. Accounting System. Each Covered Person shall maintain a system
of accounting established and administered in accordance with GAAP.
Without limiting the generality of the foregoing:

14.13.1. Account Records. Each Covered Person shall maintain a
record of Accounts at its principal place of business that itemize
each Account of such Covered Person and describe the names and
addresses of the Account Debtors on such Accounts, all relevant
invoice numbers, invoice dates, and shipping dates, and the due
dates, collection histories, and aging of such Accounts.

14.13.2. Tracing of Proceeds. Each Covered Person shall maintain
detailed and accurate records of all transfers of any proceeds of
the Loans from Borrower to such Covered Person. Borrower shall
maintain reasonably detailed and accurate records of proceeds of
the Loans and transfers of the proceeds of the

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Loans (i) received
by it from the Lenders, (ii) transferred from it to any other
Covered Person, (iii) received by it
from another Covered Person, and (iv) transferred by it to Persons
to effect the Repurchases which such record shall include a
schedule detailing the sale price paid per share to effect such
Repurchases.

14.14. Financial Statements. Borrower shall deliver to Administrative
Agent:

14.14.1. Annual Financial Statements. Within 120 days after the
close of each fiscal year of Borrower, year-end consolidated and
consolidating financial statements of Borrower and its
Subsidiaries, containing a balance sheet, income statement,
statement of cash flows and an audit report without qualification
by an independent certified public accounting firm selected by
Borrower and satisfactory to Administrative Agent, and accompanied
by (i) a Compliance Certificate of the Chief Financial Officer of
Borrower, (ii) a certificate of the independent certified public
accounting firm that examined such financial statements to the
effect that they have reviewed and are familiar with the financial
covenants set forth in this Agreement and that, in examining such
financial statements, they did not become aware of any fact or
condition which then constituted a Default or Event of Default,
except for those, if any, described in reasonable detail in such
certificate, (iii) the management letter and report on internal
controls delivered by such independent certified public accounting
firm in connection with their audit, and (iv) if requested by
Administrative Agent, any summary prepared by such independent
certified public accounting firm of the adjustments proposed by the
members of its audit team.

14.14.2. Quarterly Financial Statements. Within 30 days after the
end of each fiscal quarter of Borrower, unaudited consolidated and
consolidating internally prepared financial statements of Borrower
and its Subsidiaries for the quarters not covered by the latest
year-end financial statements, in each case containing a balance
sheet, income statement, and statement of cash flows and
accompanied by a Compliance Certificate of the Chief Financial
Officer of Borrower.

Each Compliance Certificate shall be in the form of Exhibit 14.14, shall
contain detailed calculations of the financial measurements referred to
in Section 16 for the relevant periods, and shall contain statements by
the signing officer to the effect that, except as explained in reasonable
detail in such Compliance Certificate, (i) the attached Financial
Statements are complete and correct in all material respects (subject, in
the case of Financial Statements other than annual, to normal year-end
audit adjustments) and have been prepared in accordance with GAAP applied
consistently throughout the periods covered thereby and with prior
periods (except as disclosed therein) (ii) all of the Representations and
Warranties are true and correct in all material respects as of the date
such certification is given as if made on such date, and (iii) there is
no Existing Default. If any Compliance Certificate delivered to
Administrative Agent discloses that a representation or warranty is not
true and correct in all material respects, or that there is an Existing
Default that has not been cured or waived in writing by Required Lenders,

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such Compliance Certificate shall state what action Borrower has taken or
proposes to take with respect thereto.

14.15. Other Financial Information. Borrower shall also deliver the
following to Administrative Agent:

14.15.1. Borrowing Base Certificate. At any time the sum of (i)
the Aggregate Revolving Loan and (ii) the Letter of Credit Exposure
is zero and the Borrower requests a Revolving Loan Advance or
issuance of a Letter of Credit, the Borrower shall provide to
Administrative Agent with its request for an Advance a borrowing
base certificate in substantially the form of Exhibit 14.15.1 duly
completed and signed by the chief financial officer of Borrower,
which in every case must be provided concurrently with the delivery
of the related Loan Request Certificate. At all times the sum of
(i) the Aggregate Revolving Loan and (ii) the Letter of Credit
Exposure is greater than zero, the Borrower shall periodically
provide, but not less often than monthly within ten (10) Business
Days after the end of each month, to Administrative Agent such
borrowing base certificate. Provided, however, if at any time the
sum of (i) the Aggregate Revolving Loan and (ii) the Letter of
Credit Exposure is reduced to zero, and to the extent at any
calendar month’s end such sum remains to be zero, then Borrower
shall not be required to submit such borrowing base certificate on
the monthly basis as described above. If there is an Existing
Default, Borrower shall provide a Borrowing Base Certificate at any
time requested by Administrative Agent in its discretion.

14.15.2. Other Reports or Information Concerning Accounts or
Inventory. Such other reports and information, in form and detail
satisfactory to Administrative Agent, and documents as
Administrative Agent may reasonably request from time to time
concerning Accounts or Inventory including, to the extent requested
by Administrative Agent, copies of all invoices, bills of lading,
shipping receipts, purchase orders, and warehouse receipts.

14.15.3. Stockholder Reports. Contemporaneously with their filing
by or on behalf of Borrower or any other Covered Person, copies of
any proxy statements, financial statements and reports which
Borrower makes available to its stockholders, members or partners.

14.15.4. Pension Benefit Plan Reports. Promptly upon the
reasonable request of Administrative Agent at any time or from time
to time, a copy of each annual report or other filing or notice
filed with respect to each Pension Benefit Plan of a Covered Person
or an ERISA Affiliate of a Covered Person.

14.15.5. Tax Returns. Promptly upon the reasonable request of
Administrative Agent at any time or from time to time, a copy of
each federal, state, or local tax return or report filed by
Borrower.

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14.16. Review of Accounts. Not less often than annually, and promptly at
Administrative Agent’s request if there is an Event of Default in
existence, Borrower shall conduct (and shall cause each other Covered
Person to conduct) a review of its Accounts, bad debt reserves, and
collection histories of Account Debtors and promptly following such
review provide Administrative Agent with a report of such review in form
and detail satisfactory to Administrative Agent.

14.17. Inventory. Not less often than annually, and promptly at
Administrative Agent’s request if there is an Event of Default in
existence, Borrower shall conduct (and shall cause each other Covered
Person to conduct) a physical count of its and each other Covered
Person’s Inventory and promptly following the completion of such count
provide Administrative Agent with a report thereof in form and detail
satisfactory to Administrative Agent, including the value of such
Inventory (on a first-in-first-out basis and valued at the lower of cost
or market).

14.18. Annual Projections. Within the 30 days after the first day of
each fiscal year of Borrower, projected balance sheets, statements of
income and expense for Borrower and every other Covered Person as of the
end of and for each quarter of such fiscal year and each quarter through
the later of the Term Loan Maturity Date or the Revolving Loan Maturity
Date, in such detail as Administrative Agent may reasonably require,
shall be delivered to Administrative Agent.

14.19. Other Information. Upon the request of Administrative Agent,
Borrower shall promptly deliver to Administrative Agent such other
information about the business, operations, revenues, financial
condition, property, or business prospects of Borrower and every other
Covered Person as Administrative Agent may, from time to time, reasonably
request.

14.20. Audits by Administrative Agent. Administrative Agent or Persons
authorized by and acting on behalf of Administrative Agent or any Lender
may at any time during normal business hours audit the books and records
and inspect any of the property of each Covered Person from time to time
upon reasonable notice to such Covered Person, and in the course thereof
may make copies or abstracts of such books and records and discuss the
affairs, finances and books and records of such Covered Person with its
accountants and officers. Each Covered Person shall cooperate with
Administrative Agent and such Persons in the conduct of such audits and
shall deliver to Administrative Agent any instrument necessary for
Administrative Agent to obtain records from any service bureau
maintaining records for such Covered Person. Borrower shall reimburse
Administrative Agent for all reasonable costs and expenses incurred by it
in conducting each audit. Provided there is no Event of Default that has
occurred and is continuing, Administrative Agent shall not conduct an
audit more than one (1) time per calendar year, and Borrower’s obligation
to reimburse Administrative Agent shall be capped at $5,000.00 per audit.
However, neither limitation shall apply to audits at any time an Event
of Default is in existence.

14.21. Verification of Accounts and Notices to Account Debtors. Upon the
occurrence and during the continuation of an Event of Default,
Administrative Agent

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shall have the right, in its commercially reasonable
judgment, to verify the validity and amount of any Account and any other
maker relating to an Account, by communicating in writing or orally
directly with the Account Debtor or any Person who represents or
Administrative Agent believes represents the Account Debtor.

14.22. Appraisals of Collateral. Upon Administrative Agent’s request at
any time if there is an Event of Default in existence, Borrower shall at
its expense provide Administrative Agent with appraisals, prepared on a
basis satisfactory to Administrative Agent and from appraisers acceptable
to Administrative Agent, of any or all of the Collateral as
Administrative Agent may reasonably specify.

14.23. Access to Officers and Auditors. Each Covered Person shall permit
any Lender and Administrative Agent and each of their representatives and
agents to discuss the business, operations, revenues, financial
condition, property, or business prospects of such Covered Person with
its officers, accountants and independent auditors as often as
Administrative Agent may request in its discretion, and such Covered
Person shall direct such officers, accountants and independent auditors
to cooperate with Administrative Agent, Lenders, and their
representatives and agents, and make full disclosure to Administrative
Agent, Lenders, and their representatives and agents, of those matters
that they may deem relevant to the continuing ability of Borrower timely
to pay and perform the Loan Obligations. Administrative Agent and each
Lender agrees that it will not disclose to third Persons any information
that it obtains about any Covered Person or its operations or finances
that is reasonably considered non-public information. Administrative
Agent and Lenders may, however, disclose such information to each other
and all of their respective officers, attorneys, auditors, accountants,
bank examiners, agents and representatives who have a need to know such
information in connection with the administration, interpretation or
enforcement of the Loan Documents or the lending and collection activity
contemplated therein or to the extent required by Law or a Governmental
Authority. Administrative Agent and Lenders shall advise such Persons
that such information is to be treated as confidential. Administrative
Agent and any Lender may also disclose such information in any documents
that it files in any legal proceeding to pursue, enforce or preserve its
rights under the Loan Documents to the extent that its counsel advises in
writing that such disclosure is reasonably necessary. Administrative
Agent’s and Lenders’ non-disclosure obligation shall not apply to any
information that (i) is disclosed to Administrative Agent or any Lender
by a third Person not affiliated with or employed by Borrower who does
not have a commensurate duty of non-disclosure, or (ii) becomes publicly
known other than as a result of disclosure by Administrative Agent or a
Lender.

14.24. Proformas for Permitted Acquisitions. Borrower shall, no less
than 20 days prior to making any Permitted Acquisition, prepare and
furnish to Administrative Agent proforma financial
statements described below for the Target Company (if such Permitted
Acquisition is structured as a purchase of equity) or the Surviving
Company (if such Permitted Acquisition is structured as a purchase of
assets or a merger), demonstrating to the satisfaction of Administrative
Agent that the Target Company, all Surviving Companies, and Borrower, as
the case may be, will be Solvent upon

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consummation of such acquisition
and upon the passage of time thereafter, and that none of the covenants
in Section 16 will be violated as a consequence of such acquisition or
with the passage of time thereafter and, if applicable, a Borrowing Base
Certificate demonstrating that the Maximum Available Amount will be great
enough to allow a Revolving Loan Advance to be made in the amount
Borrower will request in connection with the closing of such Permitted
Acquisition. Such proforma financial statements shall contain
consolidated and consolidating balance sheets, income statements,
statements of cash flows and such other reports and disclosures of
Borrower as well as the Target Company (if such Permitted Acquisition is
structured as a purchase of equity) or the Surviving Company (if such
Permitted Acquisition is structured as a purchase of assets or a merger)
and shall cover such forecast periods, as Administrative Agent may in its
discretion require. Borrower shall also provide to Administrative Agent
copies of the audited financial statements (if available, or unaudited
financial statements if no audited financial statements exist) for the
Target Company for the three fiscal years most recently ended and for
each of the completed fiscal quarters in the then current fiscal year.

14.25. Rate Agreement. Within 120 days of the Effective Date, Borrower
shall secure a Rate Agreement with a counter-party acceptable to
Administrative Agent, upon terms satisfactory to Administrative Agent
with respect to a notional principal amount equal to or greater than 25%
of the sum of the outstanding principal balance of the Aggregate Term
Loan A and Aggregate Term Loan B and with a term expiring no sooner than
three years from the execution date of such Rate Agreement. Borrower
shall assign its rights under the Rate Agreement to Administrative Agent
for the benefit of Lenders as security for the Loans pursuant to an
assignment satisfactory to Administrative Agent.

14.26. Acquisition Documents. Borrower shall fully perform in all
material respects all of its obligations under all Acquisition Documents,
and shall enforce all of its rights and remedies thereunder as it deems
appropriate in its reasonable business judgment; provided, however, that
Borrower shall not take any action or fail to take any action which would
result in a waiver or other loss of any material right or remedy of
Borrower thereunder. Without limiting the generality of the foregoing,
Borrower shall take all action necessary or appropriate to permit, and
shall not take any action which would have a Material Adverse Effect
upon, the full enforcement of all indemnification rights under all the
Acquisition Documents. Borrower shall not, without Administrative Agent’s
prior written consent, modify, amend, supplement, compromise, satisfy,
release or discharge any material provision of the Acquisition Documents,
any material collateral securing the same, any Person liable directly or
indirectly with respect thereto, or any material agreement relating to
the Acquisition Documents or the collateral therefor. Borrower shall
notify Administrative Agent in writing promptly after Borrower becomes
aware thereof, of any event or fact
which could give rise to a claim by it for indemnification under any of
the Acquisition Documents to the extent such claims in the aggregate
exceed $100,000.00, and shall diligently pursue such right and report to
Administrative Agent on all further developments with respect thereto. If
an Event of Default then exists, Borrower shall remit directly to
Administrative Agent, for application to the Loan Obligations in such
order as Administrative Agent determines, all amounts received by
Borrower as indemnification or otherwise pursuant to the Acquisition
Documents. If

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Borrower fails after Administrative Agent’s demand to
pursue diligently any right under any of the Acquisition Documents, or if
an Event of Default then exists, then Administrative Agent may directly
enforce such right in its own or Borrower’s name and may enter into such
settlements or other agreements with respect thereto as Administrative
Agent determines. Notwithstanding the foregoing, Borrower shall at all
times remain liable to observe and perform all of its duties and
obligations under all the Acquisition Documents, and Administrative
Agent’s exercise of any of its rights with respect to the Collateral
shall not release Borrower from any of such duties or obligations.
Administrative Agent shall not be obligated to perform or fulfill any of
Borrower’s duties or obligations under any of the Acquisition Documents
or to make any payment thereunder, or to make any inquiry as to the
sufficiency of any payment or property received by it thereunder or the
sufficiency of performance by any party thereunder, or to present or file
any claim, or to take any action to collect or enforce any performance or
payment of any amounts, or any delivery of any property.

14.27. Further Assurances. Borrower shall execute and deliver, or cause
to be executed and delivered, to Administrative Agent such documents and
agreements, and shall take or cause to be taken such actions, as
Administrative Agent may from time to time reasonably request to carry
out the terms and conditions of this Agreement and the other Loan
Documents.

15. Negative Covenants. Each Borrower covenants and agrees that, while any of
the Commitments remains in effect and until all of the Loan Obligations are
fully and indefeasibly paid, no Letters of Credit are outstanding and the
Letter of Credit Exposure is zero, Borrower shall not, directly or indirectly,
do any of the following, or permit any Covered Person to do any of the
following, without the prior written consent of Required Lenders:

15.1. Investments. Make any Investments in any other Person except the
following:

15.1.1. Investments in (i) interest-bearing obligations of the
United States government or any department, agency or
instrumentality thereof; (ii) certificates of deposit issued by any
Lender; (iii) prime commercial paper rated A1 or better by Standard
and Poor’s Corporation or Prime P1 or better by Moody’s Investor
Service, Inc.; (iv) agreements involving the sale to a Covered
Person of United States government securities and their guarantied
repurchase the next Business Day by a commercial bank chartered
under the Laws of the United States or any state thereof which has
capital and surplus of not less than $500,000,000.00 (v)
certificates of deposit issued by and time deposits with any
commercial bank
chartered under the Laws of the United States or any state thereof
which has capital and surplus of not less than $500,000,000.00; or
(vi) municipal bonds that are rated in either of the two highest
rating categories by a nationally recognized rating service.

15.1.2. Accounts arising in the ordinary course of business and
payable in accordance with Borrower’s customary trade terms.

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15.1.3. Any Investments that are the Current Acquisition, the
Approved Acquisitions or Permitted Acquisitions.

15.1.4. Investments existing on the Execution Date and disclosed in
Section 12.19 of the Disclosure Schedule.

15.1.5. Notes received by a Covered Person in settlement of
Indebtedness of other Persons to such Covered Person that was
incurred in the ordinary course of such Covered Person’s business.

15.1.6. Investments by any Covered Person in any other Covered
Person.

15.1.7. Loans to employees of any Covered Person, provided that in
no event shall all such loans exceed $500,000 in the aggregate.

15.2. Indebtedness. Create, incur, assume, or allow to exist any
Indebtedness of any kind or description, except the following:

15.2.1. Indebtedness to trade creditors incurred in the ordinary
course of business, to the extent that it is not overdue past the
original due date by more than 90 days, provided that Indebtedness
that is overdue past its original due date by more than ninety (90)
days will be considered Permitted Indebtedness if it is the subject
of a good faith dispute and Borrower has established appropriate
reserves adequate to pay such items in accordance with GAAP.

15.2.2. The Loan Obligations.

15.2.3. Indebtedness secured by Permitted Security Interests.

15.2.4. Indebtedness under Capital Leases to the extent it does not
exceed $3,500,000.00 in the aggregate at any time and is on terms
approved in advance in writing by Administrative Agent.

15.2.5. Indebtedness owed by one Covered Person to another Covered Person.

15.2.6. The Interest Hedge Obligation pursuant to Section 14.25.

15.2.7. The Indebtedness set forth on Section 15.2.7 of the Disclosure Schedule.

15.2.8. Indebtedness incurred in connection with Permitted
Acquisitions that does not exceed $2,500,000.00.

15.3. Prepayments. Voluntarily prepay any Indebtedness other than (a)
the Loan Obligations in accordance with the terms of the Loan Documents,
(b) trade payables in the ordinary course of business, and (c) Operating
and Capital Lease obligations.

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15.4. Indirect Obligations. Create, incur, assume or allow to exist any
Indirect Obligations except the Permitted Indebtedness and except
Indirect Obligations existing on the Execution Date and disclosed on
Section 12.21 of the Disclosure Schedule.

15.5. Security Interests. Create, incur, assume or allow to exist any
Security Interest upon all or any part of its property, real or personal,
now owned or hereafter acquired (including, without limitation, any
Account with respect to which the Account Debtor is the United States or
any department, agency, public corporation or other instrumentality
thereof), except the following:

15.5.1. Security Interests for taxes, assessments or governmental
charges not delinquent or being diligently contested in good faith
and by appropriate proceedings and for which adequate book reserves
in accordance with GAAP are maintained.

15.5.2. Security Interests arising out of deposits in connection
with workers’ compensation insurance, unemployment insurance, old
age pensions, or other social security or retirement benefits
legislation.

15.5.3. Deposits or pledges to secure bids, tenders, contracts
(other than contracts for the payment of money), leases, statutory
obligations, surety and appeal bonds, and other obligations of like
nature arising in the ordinary course of business.

15.5.4. Security Interests imposed by any Law, such as mechanics’,
workmen’s, materialmen’s, landlords’, carriers’, or other like
Security Interests arising in the ordinary course of business which
secure payment of obligations which are not past due or which are
being diligently contested in good faith by appropriate proceedings
and for which adequate reserves in accordance with GAAP are
maintained on Borrower’s books.

15.5.5. Purchase money Security Interests securing payment of the
purchase price of capital assets acquired by a Covered Person after
the Execution Date in an aggregate principal amount outstanding at
any one time that does not exceed the lesser of $1,000,000.00 or
the maximum limit permitted for Capital Expenditures hereunder.

15.5.6. Security Interests securing the Loan Obligations in favor
of Administrative Agent for the benefit of Lenders.

15.5.7. Security Interests existing on the Execution Date that are
disclosed in Section 12.30 of the Disclosure Schedule and are
satisfactory to Lenders.

15.5.8. Security Interests arising in connection with Permitted
Acquisitions to the extent of the limitations set forth in Section
15.2.8.

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15.5.9. Security Interests granted under Capital Leases to the
extent of the limitations set forth in Section 15.2.4 and security
interests granted under Operating Leases.

15.6. No Amendments to Acquisition Documents. Agree to, acquiesce to, or
consent to any amendment, modification, supplement, restatement,
replacement or change to any of the documents executed in connection with
any of the Acquisition Documents if such change would be reasonably
likely to have a Material Adverse Effect.

15.7. Acquisitions. Acquire a controlling interest in the stock,
membership interests, or any other equity interest in a Person, or
acquire all or substantially all of the assets of a Person (including
without limitation assets comprising all or substantially all of an
unincorporated business unit or division of any Person), except for the
Current Acquisition, the Approved Acquisitions and Permitted
Acquisitions. Permitted Acquisition means an acquisition (other than
the Current Acquisition or the Approved Acquisitions) of a controlling
interest in the stock, membership interests, or any other equity interest
in a Person, or the acquisition of all or substantially all of the assets
of a Person (including without limitation assets comprising all or
substantially all of an unincorporated business unit or division of any
Person), which satisfies each of the following conditions: (i) Borrower
or any Subsidiary of Borrower is the Acquiring Company, (ii) if the
acquisition is structured as a merger, Borrower or any Subsidiary of
Borrower is the Surviving Company, (iii) Target Company is in a
substantially similar line of business as Borrower or another Covered
Person, (iv) Target Company has an EBITDA in excess of zero for the
twelve month period ended on the date such acquisition is consummated,
(v) there is no Existing Default, and no Default or Event of Default will
occur or is reasonably likely to occur as a result of or due to such
acquisition, (vi) Borrower has fully complied with Section 14.24 of this
Agreement with respect to such acquisition, (vii) the Maximum Available
Amount is at least $2,000,000.00 after giving effect to such acquisition,
(viii) the purchase price (including without limitation any deferred
purchase price, seller notes, assumed Indebtedness, or similar items)
together with all expenses incurred in connection with such acquisition
does not exceed $5,000,000.00 for any single acquisition or
$10,000,000.00 in the aggregate during any fiscal year of Borrower, (ix)
simultaneously with the closing of such acquisition, the Target Company
(if such Permitted Acquisition is structured as a purchase of equity) or
the Surviving Company (if such Permitted Acquisition is structured as a
purchase of assets or a merger) executes and delivers to Administrative
Agent (a) such documents necessary to grant to Administrative Agent for
the benefit of the Lenders a first priority Security Interest in all of
the assets of such Target Company or Surviving Company, each in form and
substance satisfactory to Administrative Agent (and if the Target Company
becomes a Subsidiary of any Covered
Person, such Covered Person executes and delivers to Administrative Agent
a Pledge Agreement granting to Administrative Agent for the benefit of
the Lenders a first priority security interest in 100% of the capital
stock or other equity interests of such Target Company, along with the
original stock certificates, if any, and stock powers executed in blank,
each in form and substance satisfactory to Administrative Agent), and (b)
an unlimited Guaranty of the Loan Obligations, or at the option of
Administrative Agent in Administrative Agent’s absolute discretion, a
joinder

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agreement satisfactory to Administrative Agent in which such
Target Company or Surviving Company becomes a Borrower under this
Agreement and assumes primary, joint and several liability for the Loan
Obligations, (x) prior to the closing of such acquisition, a Responsible
Officer of Borrower delivers to Administrative Agent a certificate on
behalf of Borrower certifying that such acquisition is a Permitted
Acquisition, and (xi) such acquisition is friendly, rather than hostile,
in nature.

15.8. Bailments; Consignments; Warehousing. Store any Inventory or other
assets in excess of $250,000.00 in the aggregate with a bailee,
warehouseman, consignee or pursuant to an express or implied agreement
establishing a bailment or consignment of Inventory or similar
arrangement, unless Administrative Agent has received a written
acknowledgment satisfactory to Administrative Agent from the third party
involved which acknowledges the prior perfected Security Interest of
Administrative Agent for the benefit of Lenders in such Inventory.

15.9. Disposal of Property. Sell, transfer, exchange, lease, or
otherwise dispose of any of its assets except (i) sales of Inventory in
the ordinary course of business, (ii) the sales of obsolete or unused
assets, (iii) sales of assets that are replaced by comparable assets of
comparable or better quality; and (iv) sales of other assets that do not
exceed $500,000.00 per year in the aggregate.

15.10. Distributions. Directly or indirectly declare or make, or incur
any liability to make, any Distribution to any Person other than from one
Covered Person to another; provided that: (1) the payment of cash
dividends in an amount not to exceed five cents per share per calendar
quarter, up to a maximum of $3,500,000.00 per fiscal year and (2) the
Repurchases shall be permitted so long as there is no Default hereunder
at the time of declaration of such Distribution or Repurchases. For
purposes of this Section, a Distribution means and includes (i) any cash
dividend or payment, (ii) any retirement or prepayment of debt securities
(other than the Loan Obligation or as otherwise permitted hereunder)
before their regularly scheduled maturity dates, (iii) any loan or
advance to a shareholder or partner (other than Permitted Investments),
(iv) any direct or indirect purchase, redemption or other acquisition or
retirement of any class of its capital stock other than repurchases of
Borrower’s capital stock made in connection with the exercise by
employees of stock options either by (x) the acquisition of shares from
an employee in payment of the exercise price for options, or (y) the
withholding of shares in payment of an employee’s tax obligations in
connection with such exercise.

15.11. Change of Control. Merge or consolidate with or into another
Person provided that a Covered Person shall be permitted to merge or
consolidate with or into another Covered Person upon advance written
notice to Administrative Agent, or permit any Person or Group (i) to
become the record or beneficial owner, directly or indirectly, on a fully
diluted basis, of securities representing 49% or more of the voting power
of Borrower’s then outstanding securities having the power to vote or 49%
or more of Borrower’s then outstanding capital stock, or (ii) to acquire
the power to elect a majority of the Board of Directors of Borrower.

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15.12. Amendment to Charter Documents. Amend, modify, supplement,
restate, replace, or change any of its Charter Documents, except to the
extent such change could not reasonably be expected to adversely affect
Administrative Agent or any Lender.

15.13. Capital Structure; Equity Securities. Make any change in capital
structure which has or is reasonably likely to have a Material Adverse
Effect; or issue or create any stock, membership interest, or other
equity interest (or class or series thereof, or non-equity interest that
is convertible into stock, membership interests or other equity interest
(or class or series thereof), in any Covered Person, except stock,
membership interests, or other equity interests (or class or series
thereof) that are subordinated in right of payment to all the Loan
Obligations.

15.14. Change of Business. Engage in any business other than
substantially as conducted on the Effective Date.

15.15. Transactions With Affiliates. Enter into or be a party to any
transaction or arrangement, including the purchase, sale or exchange of
property of any kind or the rendering of any service, with any Affiliate
other than a Covered Person, or make any loans or advances to any
Affiliate other than a Covered Person, except that each Covered Person
may engage in such transactions in the ordinary course of business and
pursuant to the reasonable requirements of its business and on fair and
reasonable terms substantially as favorable to it as those which it could
obtain in a comparable arm’s-length transaction with a non-Affiliate. No
Covered Person may pay any management or other fees to any Affiliate that
is not a Covered Person; provided, however, that no such management fees
may be paid while there is an Existing Default, and any such management
fees which are not paid when due as a result of this sentence may be
subsequently paid only at such time as (i) there is no Existing Default,
and (ii) the payment of such management fee would not cause a Default to
occur or result in a Default.

15.16. Conflicting Agreements. Enter into any agreement, that would, if
fully complied with by it, result in a Default or Event of Default either
immediately or upon the elapsing of time.

15.17. Sale and Leaseback Transactions. Enter into any agreement or
arrangement with any Person providing for any Covered Person to lease or
rent property that Borrower has or will sell or otherwise transfer to
such Person.

15.18. New Subsidiaries. Organize, create or acquire any Subsidiary
unless it is part of the Current Acquisition, an Approved Acquisition or
a Permitted Acquisition or Borrower has obtained the prior written
consent of Administrative Agent thereto (which consent shall not be
unreasonably withheld) and contemporaneously with the organization,
creation or acquisition of such Subsidiary, the applicable Covered Person
and such Subsidiary executes and delivers to Administrative Agent for the
benefit of Lenders the following additional documents: an unlimited
guaranty of the Loan Obligations by such Subsidiary, a pledge of the
capital stock or membership interests of such Covered Person in such
Subsidiary, and other Security Documents requested by

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Administrative Agent so as to grant Administrative Agent, for the benefit
of the Lenders, a perfected, first priority security interest in all real
and personal property of such Subsidiary subject to Permitted Security
Interests, together with an opinion letter from counsel for such
Subsidiary. Such counsel shall be acceptable to Administrative Agent and
such opinion letter shall be substantially similar to the opinion
letter(s) received on the Effective Date.

15.19. Fiscal Year. Change its fiscal year (currently April 1 -March
31), without the prior written consent of Administrative Agent, which
consent shall not be unreasonably withheld.

15.20. Leases. Enter into any Capital Leases except as permitted by
Section 16.2 and Section 15.2.

15.21. Transactions Having a Material Adverse Effect on Covered Person.
Enter into any transaction which has or is reasonably likely to have a
Material Adverse Effect on any Covered Person; or enter into any
transaction, or take or contemplate taking any other action, or omit or
contemplate omitting to take any action, which any Responsible Officer
knows, or reasonably should know is likely to cause a Default or Event of
Default hereunder.

16. Financial Covenants.

16.1. Special Definitions. As used in this Section 16 and elsewhere
herein, the following capitalized terms have the following meanings:

EBITDA means, with respect to any fiscal period of Borrower, the
consolidated net income of Borrower and each Covered Person for such
fiscal period, as determined in accordance with GAAP and reported on the
Financial Statements for such period, plus (i) (A) Interest Expense in
such period, (B) income tax expense in such period, (C) amortization of
good will and depreciation expense taken in such period, and (D) any
extraordinary loss in such period, minus (ii) any extraordinary gain in
such period. For any period during which a Target Company is acquired,
EBITDA shall be calculated on a proforma basis as if such Target Company
had been acquired on the first day of such period.

Interest Expense means for any period of calculation, all interest,
whether paid in cash or accrued as a liability, but without duplication,
on Indebtedness of Borrower and each Covered Person during such period.

Fixed Charges means, for any period of calculation, the sum of (i)
Interest Expense, (ii) all scheduled principal payments on long term
Indebtedness of Borrower (including the Term Loan), (iii) management fees
or other fees paid by Borrower to any Affiliate of a Covered Person which
is not a Covered Person or any other Person which is not a Covered
Person, and (iv) Distributions, excluding, however, Repurchases that are
financed with proceeds from Revolving Loan Advances, but only to the
extent the

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cumulative aggregate amount of such financed Repurchases is less than
Five Million and No/100 Dollars ($5,000,000.00).

Senior Indebtedness means the outstanding balance of the Loan Obligations
at the time of calculation.

Total Indebtedness means the sum of Senior Indebtedness and the
unamortized capitalized amount of all Capital Leases.

All other capitalized terms used in this Section 16 shall have their
meanings and shall be determined under GAAP.

16.2. Capital Expenditures. Borrower shall not make Capital Expenditures
(exclusive of the Current Acquisition, Approved Acquisitions and
Permitted Acquisitions) in excess of $13,000,000.00 in the aggregate
annually for any of the fiscal years ending on March 31 prior to the Term
Loan Maturity Date and on the Term Loan Maturity Date.

16.3. Minimum Fixed Charge Coverage. The ratio of Borrower’s: (i) EBITDA
minus federal, state and local income taxes paid and Capital Expenditures
to (ii) Fixed Charges for the four quarter period then ended, calculated
as of the last day of each such period (as set forth below), shall not be
less than the ratio specified for such period:

	 	 	 	 	 
	 	 	Minimum Fixed Charge
	Last Day of Period
	 	Coverage Ratio

	Fiscal Quarter ending 3/31/04
	 	 	1.10 to 1	 
	Fiscal Quarter ending 6/30/04
	 	 	1.10 to 1	 
	Fiscal Quarter ending 9/30/04
	 	 	1.10 to 1	 
	Fiscal Quarter ending 12/31/04
	 	 	1.10 to 1	 
	Fiscal Quarter ending 3/31/05
	 	 	1.10 to 1	 
	Fiscal Quarter ending 6/30/05
	 	 	1.10 to 1	 
	Fiscal Quarter ending 9/30/05
	 	 	1.10 to 1	 
	Fiscal Quarter ending 12/31/05
	 	 	1.10 to 1	 
	Fiscal Quarter ending 3/31/06
	 	 	1.10 to 1	 
	Fiscal Quarter ending 6/30/06
	 	 	1.10 to 1	 
	Fiscal Quarter ending 9/30/06
	 	 	1.15 to 1	 
	Fiscal Quarter ending 12/31/06
	 	 	1.15 to 1	 
	Fiscal Quarter ending 3/31/07
	 	 	1.15 to 1	 
	Fiscal Quarter ending 6/30/07
	 	 	1.15 to 1	 
	Fiscal Quarter ending 9/30/07
	 	 	1.20 to 1	 
	Fiscal Quarter ending 12/31/07
	 	 	1.20 to 1	 
	Fiscal Quarter ending 3/31/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 6/30/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 9/30/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 12/31/08
	 	 	1.25 to 1	 

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	 	 	Minimum Fixed Charge
	Last Day of Period
	 	Coverage Ratio

	Fiscal Quarter ending 3/31/09
	 	 	1.25 to 1	 

16.4. Maximum Ratio of Total Indebtedness to EBITDA. The ratio of
Borrower’s Total Indebtedness to EBITDA for each fiscal period specified
below, calculated as of the last day of each such period, shall not be
greater than the ratio specified for such period:

	 	 	 	 	 
	 	 	Maximum Ratio of Total Indebtedness to
	Period
	 	EBITDA*

	Fiscal Quarter ending 3/31/04
	 	 	1.75 to 1	 
	Fiscal Quarter ending 6/30/04
	 	 	1.75 to 1	 
	Fiscal Quarter ending 9/30/04
	 	 	1.75 to 1	 
	Fiscal Quarter ending 12/31/04
	 	 	1.50 to 1	 
	Fiscal Quarter ending 3/31/05
	 	 	1.50 to 1	 
	Fiscal Quarter ending 6/30/05
	 	 	1.25 to 1	 
	Fiscal Quarter ending 9/30/05
	 	 	1.25 to 1	 
	Fiscal Quarter ending 12/31/05
	 	 	1.25 to 1	 
	Fiscal Quarter ending 3/31/06
	 	 	1.25 to 1	 
	Fiscal Quarter ending 6/30/06
	 	 	1.25 to 1	 
	Fiscal Quarter ending 9/30/06
	 	 	1.25 to 1	 
	Fiscal Quarter ending 12/31/06
	 	 	1.25 to 1	 
	Fiscal Quarter ending 3/31/07
	 	 	1.25 to 1	 
	Fiscal Quarter ending 6/30/07
	 	 	1.25 to 1	 
	Fiscal Quarter ending 9/30/07
	 	 	1.25 to 1	 
	Fiscal Quarter ending 12/31/07
	 	 	1.25 to 1	 
	Fiscal Quarter ending 3/31/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 6/30/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 9/30/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 12/31/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 3/31/09
	 	 	1.25 to 1	 

     *For purposes of this Section 16.4, EBITDA shall be determined based on a
trailing twelve month basis. Adjustments to the above Maximum Ratio of Total
Indebtedness to EBITDA schedule to account for consummation of any Approved
Acquisition are set forth on Exhibit 16.4.

16.5. Minimum Net Worth. Borrower’s Net Worth shall at no time during
any fiscal period specified in the table below be less than the amount
specified for such period:

	 	 	 
	Period
	 	Minimum Net Worth

	The end of each fiscal quarter

	 	$120,000,000.00 plus 50% of cumulative
quarterly net income after the Effective
Date, with no deduction for any quarterly
loss, plus 100% of net cash proceeds from
the issuance of equity securities after the
Effective Date.

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16.6. Minimum EBITDA. Borrower’s EBITDA, for each fiscal period
specified below, calculated as of the last day of such fiscal period for
the four quarter period then ended, shall at no time be less than the
amount specified for such period:

	 	 	 	 	 
	 	 	Minimum EBITDA*
	Period
	 	($000 omitted)

	Fiscal Quarter ending 3/31/04
	 	$	29,000	 
	Fiscal Quarter ending 6/30/04
	 	$	29,000	 
	Fiscal Quarter ending 9/30/04
	 	$	29,500	 
	Fiscal Quarter ending 12/31/04
	 	$	30,000	 
	Fiscal Quarter ending 3/31/05
	 	$	31,000	 
	Fiscal Quarter ending 6/30/05
	 	$	31,000	 
	Fiscal Quarter ending 9/30/05
	 	$	31,500	 
	Fiscal Quarter ending 12/31/05
	 	$	31,500	 
	Fiscal Quarter ending 3/31/06
	 	$	31,500	 
	Fiscal Quarter ending 6/30/06
	 	$	32,000	 
	Fiscal Quarter ending 9/30/06
	 	$	32,000	 
	Fiscal Quarter ending 12/31/06
	 	$	32,000	 
	Fiscal Quarter ending 3/31/07
	 	$	32,000	 
	Fiscal Quarter ending 6/30/07
	 	$	32,000	 
	Fiscal Quarter ending 9/30/07
	 	$	32,000	 
	Fiscal Quarter ending 12/31/07
	 	$	32,000	 
	Fiscal Quarter ending 3/31/08
	 	$	32,000	 
	Fiscal Quarter ending 6/30/08
	 	$	32,000	 
	Fiscal Quarter ending 9/30/08
	 	$	32,000	 
	Fiscal Quarter ending 12/31/08
	 	$	32,000	 
	Fiscal Quarter ending 3/31/09
	 	$	32,000	 

*For purposes of this Section 16.6, EBITDA shall be determined based on a
trailing twelve month basis. Adjustments to the above EBITDA schedule to
account for consummation of any Approved Acquisition are set forth on
Exhibit 16.6.

17. Default.

17.1. Events of Default. Any one or more of the following shall
constitute an event of default (an Event of Default) under this
Agreement:

17.1.1. Failure to Pay Principal or Interest. Failure of Borrower
to pay any principal of the Loans or interest accrued thereon when
due or within two (2) days

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thereafter, or failure of Borrower to pay any of the other Loan
Obligations when due, or within two (2) days thereafter.

17.1.2. Failure to Pay Amounts Owed to Other Persons. Failure of
any Covered Person to make any payment due on Indebtedness of such
Covered Person over $200,000.00 to Persons (other than Lenders
under the Loan Documents) which continues uncured or unwaived
beyond any applicable grace period specified in the documents
evidencing such Indebtedness.

17.1.3. Representations or Warranties. Any of the Representations
and Warranties is discovered to have been false in any material
respect when made.

17.1.4. Certain Covenants. Failure of any Covered Person to comply
with the covenants in Sections 14.1, 14.5, 14.9, 14.10, 14.14,
14.20, 14.23, 14.24, 14.25, 14.26, 15, or 16.

17.1.5. Other Covenants. Failure of any Covered Person to comply
with of any of the terms or provisions of any of the Loan Documents
applicable to it (other than a failure which constitutes an
immediate Event of Default under, or for which some other grace
period is specified in any other Section of this 17.1) which is not
remedied or waived in writing by Administrative Agent within 30
days after a Responsible Officer becoming aware of such failure.

17.1.6. Acceleration of Other Indebtedness. Any Obligation (other
than a Loan Obligation) of a Covered Person for the repayment of
$200,000.00 or more of borrowed money becomes or is declared to be
due and payable or required to be prepaid (other than by an
originally scheduled prepayment) prior to the original maturity
thereof.

17.1.7. Default Under Other Agreements. The occurrence of any
default or event of default under any agreement to which a Covered
Person is a party (other than the Loan Documents), which default or
event of default continues uncured or unwaived beyond any
applicable grace period provided therein and has or is reasonably
likely to have a Material Adverse Effect.

17.1.8. Bankruptcy; Insolvency; Etc. A Covered Person (i) fails to
pay, or admits in writing its inability to pay, its debts generally
as they become due, or otherwise becomes insolvent (however
evidenced); (ii) makes an assignment for the benefit of creditors;
(iii) files a petition in bankruptcy, is adjudicated insolvent or
bankrupt, petitions or applies to any tribunal for any receiver or
any trustee of such Covered Person or any substantial part of its
property; (iv) commences any proceeding relating to such Covered
Person under any reorganization, arrangement, readjustment of debt,
dissolution or liquidation Law of any jurisdiction, whether now or
hereafter in effect; (v) has commenced against it any such
proceeding which remains undismissed for a period of 60 days, or by
any act indicates its consent to, approval of, or acquiescence in
any such proceeding or the appointment of any receiver of or any
trustee for it or of any substantial part of

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its property, or allows any such receivership or trusteeship to
continue undischarged for a period of 60 days; or (vi) takes any
action to authorize any of the foregoing.

17.1.9. Judgments; Attachment; Settlement; Etc. Any one or more
judgments or orders is entered against a Covered Person or any
attachment or other levy is made against the property of a Covered
Person with respect to a claim or claims involving in the aggregate
liabilities (not paid or fully covered by insurance, less the
amount of reasonable deductibles in effect on the Execution Date)
in excess of $200,000.00 and such judgment or order becomes final
and non-appealable or if timely appealed is not fully bonded and
collection thereof stayed pending the appeal.

17.1.10. Pension Benefit Plan Termination, Etc. Any Pension
Benefit Plan termination by the PBGC or the appointment by the
appropriate United States District Court of a trustee to administer
any Pension Benefit Plan or to liquidate any Pension Benefit Plan;
or any event which constitutes grounds either for the termination
of any Pension Benefit Plan by PBGC or for the appointment by the
appropriate United States District Court of a trustee to administer
or liquidate any Pension Benefit Plan shall have occurred and be
continuing for thirty (30) days after Borrower has notice of any
such event; or any voluntary termination of any Pension Benefit
Plan which is a defined benefit pension plan as defined in Section
3(35) of ERISA while such defined benefit pension plan has an
accumulated funding deficiency, unless Administrative Agent has
been notified of such intent to voluntarily terminate such plan and
Required Lenders have given their consent and agreed that such
event shall not constitute a Default; or the plan administrator of
any Pension Benefit Plan applies under Section 412(d) of the Code
for a waiver of the minimum funding standards of Section 412(1) of
the Code and Required Lenders determine that the substantial
business hardship upon which the application for such waiver is
based could subject any Covered Person or ERISA Affiliate of any
Covered Person to a liability in excess of $200,000.00.

17.1.11. Liquidation or Dissolution. A Covered Person files a
certificate of dissolution under applicable state Law or is
liquidated or dissolved or suspends or terminates the operation of
its business, or has commenced against it any action or proceeding
for its liquidation or dissolution or the winding up of its
business, or takes any corporate action in furtherance thereof,
except in connection with the consolidation of such a Covered
Person and its assets with another Covered Person and its assets.

17.1.12. Seizure of Assets. All or any material part of the
property of any Covered Person is nationalized, expropriated,
seized or otherwise appropriated, or custody or control of such
property or of any Covered Person shall be assumed by any
Governmental Authority or any court of competent jurisdiction at
the instance of any Governmental Authority, unless the same is
being contested in good faith by proper proceedings diligently
pursued and a stay of enforcement is in effect.

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17.1.13. Racketeering Proceeding. There is filed against any
Covered Person any civil or criminal action, suit or proceeding
under any federal or state racketeering statute (including, without
limitation, the Racketeer Influenced and Corrupt Organization Act
of 1970), which action, suit or proceeding is not dismissed within
120 days and could result in the confiscation or forfeiture of any
material portion of the Collateral.

17.1.14. Loan Documents; Security Interests. For any reason other
than the failure of Administrative Agent to take any action
available to it to maintain perfection of the Security Interests
created in favor of Administrative Agent for the benefit of Lenders
pursuant to the Loan Documents, any Loan Document ceases to be in
full force and effect or any Security Interest with respect to any
portion of the Collateral intended to be secured thereby ceases to
be, or is not, valid, perfected and prior to all other Security
Interests (other than the Permitted Security Interests) or is
terminated, revoked or declared void or invalid.

17.1.15. Loss to Collateral. Any loss, theft, damage or
destruction of any item or items of Collateral occurs which either
(i) has or is reasonably likely to have a Material Adverse Effect
on any other Covered Person or (ii) materially and adversely
affects the operation of Borrower’s business and is not covered by
insurance as required herein.

17.1.16. Guaranty; Guarantor. Any Guaranty ceases to be in full
force and effect or any action is taken to discontinue or assert
the invalidity or unenforceability of any Guaranty or any Guarantor
fails to comply with any of the terms or provisions of any
Guaranty, or any representation or warranty of any Guarantor
therein is false in any material respects, or any Guarantor denies
that it has any further liability under any Guaranty or gives
notice to Lender to such effect, or any Guarantor fails to furnish
the financial statements required under any Guaranty.

17.2. Cross Default. An Event of Default under this Agreement will
automatically and immediately constitute a default under all other Loan
Documents without regard to any requirement therein for the giving of
notice or the passing of time.

17.3. Rights and Remedies.

17.3.1. Termination of Commitments. Upon an Event of Default
described in Section 17.1.8, the Commitments shall be deemed
canceled. Upon any other Event of Default, and at any time
thereafter, Required Lenders may cancel the Commitments. Such
cancellation may be, in either case, without presentment, demand or
notice of any kind, which Borrower expressly waives.

17.3.2. Acceleration. Upon an Event of Default described in
Section 17.1.8, all of the outstanding Loan Obligations shall
automatically become immediately due and payable. Upon any other
Event of Default, and at any time thereafter, Required Lenders may
declare all of the outstanding Loan Obligations

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immediately due and payable. Such acceleration may be, in either
case, without presentment, demand or notice of any kind, which
Borrower expressly waives.

17.3.3. Right of Setoff. So long as there is any Event of Default
in existence, each Lender is hereby authorized, without notice to
Borrower (any such notice being expressly waived by Borrower), to
the fullest extent permitted by law, to set off and apply against
the Loan Obligations any and all deposits (general or special, time
or demand, provisional or final) at any time held, or any other
Indebtedness at any time owing by such Lender (or its Affiliate) to
or for the credit or the account of Borrower, irrespective of
whether or not such Lender shall have made any demand under this
Agreement or the Notes or any Guaranty and although such Loan
Obligations may be unmatured. The rights of each Lender under this
Section are in addition to other rights and remedies (including,
without limitation, other rights of setoff) which such Lender may
otherwise have. All amounts received by each Lender on account of
the Loan Obligations pursuant to this Section shall be paid over
promptly to Administrative Agent for distribution to Lenders as
provided in this Agreement and shall be applied as provided in this
Agreement.

17.3.4. Notice to Account Debtors. Upon the occurrence of any
Event of Default and at any time and from time to time thereafter
so long as such Event of Default is continuing, Administrative
Agent may (if Required Lenders concur), without prior notice to
Borrower, notify any or all Account Debtors that the Accounts have
been assigned to Administrative Agent for the benefit of Lenders
and that Administrative Agent has a Security Interest therein for
the benefit of Lenders, and Administrative Agent may direct, or
Borrower, at Administrative Agent’s request, shall direct, any or
all Account Debtors to make all payments upon the Accounts directly
to Administrative Agent for the benefit of Lenders.

17.3.5. Entry Upon Premises and Access to Information. Upon the
occurrence of an Event of Default and acceleration of the Loan
Obligations as provided herein, and at any time thereafter:
Administrative Agent may (i) enter upon the premises leased or
owned by Borrower where Collateral is located (or is believed to be
located) without any obligation to pay rent to Borrower, or any
other place or places where Collateral is believed to be located,
(ii) render Collateral usable or saleable, (iii) remove Collateral
therefrom to the premises of Administrative Agent or any agent of
Administrative Agent for such time as Administrative Agent may
desire in order effectively to collect or liquidate Collateral,
(iv) take possession of, and make copies and abstracts of,
Borrower’s original books and records, obtain access to Borrower’s
data processing equipment, computer hardware and software relating
to any of the Collateral and use all of the foregoing and the
information contained therein in any manner Administrative Agent
deems appropriate in connection with the exercise of Administrative
Agent’s rights, and (v) notify postal authorities to change the
address for delivery of Borrower’s mail to an address designated by
Administrative Agent and to receive, open and process all mail
addressed to Borrower.

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17.3.6. Completion of Uncompleted Inventory Items. Upon the
occurrence of an Event of Default and at any time and from time to
time thereafter so long as an Event of Default is continuing,
Administrative Agent may request that Borrower, and Borrower shall
upon such request, use Borrower’s best efforts to obtain the
consent of its and any other Covered Person’s customers to the
completion (before or after foreclosure by Administrative Agent of
its security interest therein) of the manufacture of all
uncompleted Inventory items that Borrower or any other Covered
Person was manufacturing for such customers pursuant to contracts
or accepted purchase orders, and the commitment by such customers
to purchase such items upon their completion as provided in the
relevant contracts or accepted purchase orders. Borrower shall, as
an uncompensated agent for Lenders, complete or cause to be
completed the manufacture and shipment of all such items as
provided in the relevant contracts or accepted purchase orders if
Administrative Agent so directs.

17.3.7. Borrower’s Obligations. Upon the occurrence of an Event of
Default and during its continuance, Borrower shall, if
Administrative Agent so requests, assemble all the movable tangible
Collateral and make it available to Administrative Agent at a place
or places to be designated by Administrative Agent in its
discretion.

17.3.8. Secured Party Rights. Upon an Event of Default and
acceleration of the Loan Obligations as provided herein, and at any
time and from time to time thereafter:

17.3.8.1. Administrative Agent may exercise any or all of its
rights under the Security Documents as a secured party under
the UCC and any other applicable Law; and

17.3.8.2. Administrative Agent may sell or otherwise dispose
of any or all of the Collateral at public or private sale in
a commercially reasonable manner, which sale Administrative
Agent may postpone from time to time by announcement at the
time and place of sale stated in the notice of sale or by
announcement at any adjourned sale without being required to
give a new notice of sale, all as Administrative Agent deems
advisable, for cash or credit. Administrative Agent or any
Lender may become the purchaser at any such sale if
permissible under applicable Law, and such Lender may, in
lieu of actual payment of the purchase price, setoff the
amount thereof against Borrower’s obligations owing to
Lender, and Borrower agrees that such Lender has no
obligation to preserve rights to Collateral against prior
parties or to marshal any Collateral for the benefit of any
Person.

In connection with and for the sole purpose of the advertising for
sale, further manufacture, selling, or otherwise realizing upon any
of the Collateral securing the obligations of Borrower to Lender,
to the extent Administrative Agent has not foreclosed upon its
Security Interest in the following, Administrative Agent may

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use and is hereby granted a license to use, without charge or
liability to Administrative Agent or Lenders therefor, any of
Borrower’s or any other Covered Person’s labels, trade names,
trademarks, trade secrets, service marks, patents, patent
applications, licenses, certificates of authority, advertising
materials, or any of Borrower’s or any other Covered Person’s other
properties or interests in properties of similar nature, to the
extent that such use thereof is not prohibited by agreements under
which Borrower or such other Covered Person has rights therein, and
all of Borrower’s rights under license, franchise and similar
agreements shall inure to Lenders’ benefit.

17.3.9. Joint and Several. Each Obligation and liability to the
Letter of Credit Issuer, Administrative Agent and each Lender of
Borrower, including, without limitation, the Loan Obligations, are
the joint and several obligations of Borrower, and each Guarantor
and Administrative Agent may proceed directly against Borrower, any
Guarantor, all of the foregoing, or any one of the foregoing or any
combination of the foregoing, without first proceeding against
Borrower, or without joining all Persons liable or potentially
liable for any portion of the Loan Obligations in one action.

17.3.10. Miscellaneous. Upon the occurrence of an Event of Default
and at any time thereafter so long as such Event of Default is
continuing, Lenders may exercise any other rights and remedies
available to Lenders under the Loan Documents or otherwise
available to Lenders at law or in equity.

17.4. Application of Funds. Any funds received by Lenders or
Administrative Agent for the benefit of Lenders with respect to any Loan
Obligation after its Maturity, including proceeds of Collateral, shall be
applied as follows: (i) first, to reimburse Lenders pro-rata for any
amounts due to Lenders under Section 20.9; (ii) second, to reimburse to
Administrative Agent all unreimbursed costs and expenses paid or incurred
by Administrative Agent that are payable or reimbursable by Borrower
hereunder; (iii) third, to reimburse to Lenders pro-rata all unreimbursed
costs and expenses paid or incurred by Lenders (including costs and
expenses incurred by Administrative Agent as a Lender that are not
reimbursable as provided in the preceding clause) that are payable or
reimbursable by Borrower hereunder; (iv) fourth, to the payment of
accrued and unpaid fees due hereunder and all other amounts due hereunder
(other than the Loans and interest accrued thereon); (v) fifth, to the
payment of the Loans of each of the Lenders and interest accrued thereon
(which payments shall be pro rata to each of the Lenders in accordance
with the amount of the Loans outstanding) and to the payment (pari passu
with the foregoing) of any Interest Hedge Obligations (vi) sixth, to
Letter of Credit Issuer as cash collateral for the Letter of Credit
Exposure; and (vii) seventh, to the payment of the other Loan
Obligations. Any remaining amounts shall be applied to payment of all the
Obligations to Administrative Agent. Any further remaining amounts shall
be paid to Borrower or such other Persons as shall be legally entitled
thereto. Except as expressly provided otherwise herein, Lenders may apply
and reverse and reapply, payments and proceeds of the Collateral to the
Loan Obligations in such order and manner as Lenders

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determine in their absolute discretion. Borrower hereby irrevocably
waives the right to direct the application of payments and proceeds of
the Collateral.

17.5. Limitation of Liability; Waiver. Administrative Agent and Lenders
shall not be liable to Borrower as a result of any commercially
reasonable possession, repossession, collection or sale by Administrative
Agent of Collateral; and Borrower hereby waives all rights of redemption
from any such sale and the benefit of all valuation, appraisal and
exemption Laws. If Administrative Agent seeks to take possession of any
of the Collateral by replevin or other court process, Borrower hereby
irrevocably waives (i) the posting of any bonds, surety and security
relating thereto required by any statute, court rule or otherwise as an
incident to such possession, (ii) any demand for possession of the
Collateral prior to the commencement of any suit or action to recover
possession thereof, (iii) any requirement that Administrative Agent
retain possession and not dispose of any Collateral until after trial or
final judgment, and (iv) to the extent permitted by applicable Law, all
rights to notice and hearing prior to the exercise by Administrative
Agent of Administrative Agent’s right to repossess the Collateral without
judicial process or to replevy, attach or levy upon the Collateral
without notice or hearing. Administrative Agent shall have no obligation
to preserve rights to the Collateral or to marshall any Collateral for
the benefit of any Person.

17.6. Notice. Any notice of intended action required to be given by
Administrative Agent (including notice of a public or private sale of
Collateral), if given as provided in Section 21.1 at least 10 days prior
to such proposed action, shall be effective and constitute reasonable and
fair notice to Borrower.

18. Administrative Agent and Lenders.

18.1. Appointment, Powers, and Immunities. LaSalle is hereby appointed
Administrative Agent hereunder and under each of the other Loan
Documents. Each Lender hereby irrevocably appoints and authorizes
Administrative Agent to act as its agent under this Agreement and the
other Loan Documents with such powers and discretion as are specifically
delegated to Administrative Agent by the terms of this Agreement and the
other Loan Documents, together with such other powers as are reasonably
incidental thereto. Administrative Agent (which term as used in this
sentence and in Section 18.5 and the first sentence of Section 18.6
hereof shall include its affiliates and its own and its affiliates’
officers, directors, employees, and agents): (a) shall not have any
duties or responsibilities except those expressly set forth in this
Agreement and shall not be a trustee or fiduciary for any Lender; (b)
shall not be responsible to the Lenders for any recital, statement,
representation, or warranty (whether written or oral) made in or in
connection with any Loan Document or any certificate or other document
referred to or provided for in, or received by any of them under, any
Loan Document, or for the value, validity, effectiveness, genuineness,
enforceability, or sufficiency of any Loan Document, or any other
document referred to or provided for therein or for any failure by any
Covered Person or any other Person to perform any of its obligations
thereunder or the validity or priority of any Security Interest in any
Collateral; (c) shall not be responsible for or have any duty to
ascertain, inquire into, or verify the performance or observance of any
covenants or agreements by any Covered Person or the

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satisfaction of any condition or to inspect the property (including the
books and records) of any Covered Person or any of its Subsidiaries or
affiliates; (d) shall not be required to initiate or conduct any
litigation or collection proceedings under any Loan Document; and (e)
shall not be responsible for any action taken or omitted to be taken by
it under or in connection with any Loan Document, except for its own
gross negligence or willful misconduct. Administrative Agent may employ
agents and attorneys-in-fact and shall not be responsible for the
negligence or misconduct of any such agents or attorneys-in-fact selected
by it with reasonable care.

18.2. Reliance by Administrative Agent. Administrative Agent shall be
entitled to rely upon any certification, notice, instrument, writing, or
other communication (including, without limitation, any thereof by
telephone or telecopy) believed by it to be genuine and correct and to
have been signed, sent or made by or on behalf of the proper Person or
Persons, and upon advice and statements of legal counsel (including
counsel for any Covered Person), independent accountants, and other
experts selected by Administrative Agent. Administrative Agent may deem
and treat the payee of any Note as the holder thereof for all purposes
hereof unless and until Administrative Agent receives and accepts an
Assignment and Acceptance executed in accordance with Section 20.4
hereof. As to any matters not expressly provided for by this Agreement,
Administrative Agent shall not be required to exercise any discretion or
take any action, but shall be required to act or to refrain from acting
(and shall be fully protected in so acting or refraining from acting)
upon the instructions of the Required Lenders, and such instructions
shall be binding on all of the Lenders; provided, however, that
Administrative Agent shall not be required to take any action that
exposes Administrative Agent to personal liability or that is contrary to
any Loan Document or applicable law or unless it shall first be

indemnified to its satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking any
such action.

18.3. Employment of Agents and Counsel. Administrative Agent may execute
any of its duties hereunder by or through employees, agents, and
attorneys-in-fact and shall not be liable to any Lender, except with
respect to money or securities received by it or such agents or
attorneys-in-fact, for the default or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care. Administrative
Agent shall be entitled to advice of counsel concerning all matters
pertaining to the agency hereby created and its duties hereunder and
shall not be liable to any Lender for acting or failing to act as advised
by such counsel, except where doing so violates an express obligation of
Administrative Agent under the Loan Documents.

18.4. Defaults. Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of a Default or Event of Default
unless Administrative Agent has received written notice from a Lender or
the Borrower specifying such Default or Event of Default and stating that
such notice is a Notice of Default. In the event that Administrative
Agent receives such a notice of the occurrence of a Default or Event of
Default, Administrative Agent shall give notice thereof to the Lenders.
Administrative Agent shall (subject to Section 18.2 hereof) take such
action with respect to such Default or Event of Default as shall
reasonably be directed by the Required Lenders, provided

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that, unless and until Administrative Agent shall have received such
directions, Administrative Agent may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable in the best
interest of the Lenders.

18.5. Rights as Lender. With respect to its Commitment and the Loans
made by it, LaSalle (and any successor acting as Administrative Agent) in
its capacity as a Lender hereunder shall have the same rights and powers
hereunder as any other Lender and may exercise the same as though it were
not acting as Administrative Agent, and the term Lender or Lenders shall,
unless the context otherwise indicates, include Administrative Agent in
its individual capacity. LaSalle (and any successor acting as
Administrative Agent) and its affiliates may (without having to account
therefor to any Lender) accept deposits from, lend money to, make
investments in, provide services to, and generally engage in any kind of
lending, trust, or other business with any Covered Person or any of its
Subsidiaries or Affiliates as if it were not acting as Administrative
Agent, and LaSalle (and any successor acting as Administrative Agent) and
its Affiliates may accept fees and other consideration from any Covered
Person or any of its Subsidiaries or Affiliates for services in
connection with this Agreement or otherwise without having to account for
the same to Lenders. The Lenders acknowledge that, pursuant to such
activities, Administrative Agent or its Affiliates may receive
information regarding Borrower or its Affiliates (including information
that may be subject to confidentiality obligations in favor of Borrower
or such Affiliates) and acknowledge that Administrative Agent shall be
under no obligation to provide such information to the Lenders.

18.6. Indemnification. Whether or not the transactions contemplated
hereby are consummated, Lenders agree to reimburse and indemnify
Administrative Agent upon demand (to the extent not reimbursed under
Section 20.8, but without limiting the obligations of Borrower under
Section 20.8) ratably in accordance with their respective Commitments,
for any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses (including attorneys’ fees),
or disbursements of any kind and nature whatsoever that may be imposed
on, incurred by or asserted against Administrative Agent (including by
any Lender) in any way relating to or arising out of any Loan Document or
the transactions contemplated thereby or any action taken or omitted by
Administrative Agent under any Loan Document; provided that no Lender
shall be liable for any of the foregoing to the extent they arise from
the gross negligence or willful misconduct of the Person to be
indemnified. Without limitation of the foregoing, each Lender agrees to
reimburse Administrative Agent promptly upon demand for its ratable share
of any costs or expenses payable by Borrower under Section 20.8, to the
extent that Administrative Agent is not promptly reimbursed for such
costs and expenses by Borrower. The agreements contained in this Section
shall survive payment in full of the Loans and all other amounts payable
under this Agreement.

18.7. Notification of Lenders. Each Lender agrees to use its good faith
efforts, upon becoming aware of anything which has or is reasonably
likely to have a Material Adverse Effect on any Covered Person, to
promptly notify Administrative Agent thereof. Administrative Agent shall
promptly deliver to each Lender copies of every written

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notice, demand, report (including any financial report), or other writing
which Administrative Agent gives to or receives from Borrower and which
itself (a) constitutes, or which contains information about, something
that has or is reasonably likely to have a Material Adverse Effect on any
Covered Person, or (b) is otherwise delivered to Administrative Agent by
Borrower pursuant to the Loan Documents and is deemed material
information by Administrative Agent in its sole discretion.
Administrative Agent and its directors, officers, agents, and employees
shall have no liability to any Lender for failure to deliver any such
item to such Lender unless the failure constitutes gross negligence or
willful misconduct.

18.8. Non-Reliance on Agent and Other Lenders. Each Lender acknowledges
that Administrative Agent has not made any representation or warranty to
it, and that no act by the Administrative Agent hereafter taken,
including any review of the affairs of Borrower and its Affiliates, shall
be deemed to constitute any representation or warranty by Administrative
Agent to any Lender. Each Lender agrees that it has, independently and
without reliance on Administrative Agent or any other Lender, and based
on such documents and information as it has deemed appropriate, made its
own credit analysis of the Covered Persons and their Subsidiaries and
decision to enter into this Agreement and that it will, independently and
without reliance upon Administrative Agent or any other Lender, and based
on such documents and information as it shall deem appropriate at the
time, continue to make its own analysis and decisions in taking or not
taking action under the Loan Documents. Except for notices, reports, and
other documents and information expressly required to be furnished to
Lenders by Administrative Agent hereunder, Administrative Agent shall not
have any duty or responsibility to provide any Lender with any credit or
other information concerning the affairs, financial condition, or
business of any Covered Person or any of its Subsidiaries or Affiliates
that may come into the possession of Administrative Agent or any of its
Affiliates.

18.9. Resignation. Administrative Agent may resign at any time by giving
notice thereof to the Lenders and Borrower. Upon any such resignation,
the Required Lenders shall have the right to appoint a successor
Administrative Agent, which shall be a commercial bank organized under
the laws of the United States of America having a combined capital and
surplus of at least $1,000,000,000.00. If no successor Administrative
Agent shall have been so appointed by the Required Lenders and shall have
accepted such appointment within thirty (30) days after the retiring
Administrative Agent’s giving of notice of resignation, then the retiring
Administrative Agent may, on behalf of the Lenders, appoint a successor
Administrative Agent which shall be a commercial bank organized under the
laws of the United States of America having combined capital and surplus
of at least $1,000,000,000.00. Upon the acceptance of any appointment as
Administrative Agent hereunder by a successor, such successor shall
thereupon succeed to and become vested with all the rights, powers,
discretion, privileges, and duties of the retiring Administrative Agent,
and the retiring Administrative Agent shall be discharged from its duties
and obligations hereunder. If no successor has accepted appointment as
Administrative Agent within thirty (30) days after the date on which
Administrative Agent first attempts to appoint a successor Administrative
Agent, the resigning Administrative Agent’s resignation shall

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nevertheless thereupon become effective and the Lenders shall perform all
of the duties of the Administrative Agent hereunder until such time, if
any, as the Required Lenders appoint a successor which accepts such
appointment. After any retiring Administrative Agent’s resignation
hereunder as Administrative Agent, the provisions of this Section 18.9
shall continue in effect for its benefit in respect of any actions taken
or omitted to be taken by it while it was acting as Administrative Agent.

18.10. Collections and Distributions to Lenders by Administrative Agent.
Except as otherwise provided in this Agreement, all payments of interest,
fees, principal and other amounts received by Administrative Agent for
the account of Lenders shall be distributed by Administrative Agent to
Lenders in accordance with their pro-rata shares of the outstanding Loan
Obligations at the time of such distribution on the same Business Day
when received, unless received after 1:00 p.m. (Local Time) in which case
they shall be so distributed by 1:00 p.m. (Local Time) on the next
Business Day. All amounts received by any Lender on account of the Loan
Obligations, including amounts received by way of setoff, shall be paid
over promptly to Administrative Agent for distribution to Lenders as
provided above in this Section. Such distributions shall be made
according to instructions that each Lender may give to Administrative
Agent from time to time.

19. Change in Circumstances.

19.1. Compensation for Increased Costs and Reduced Returns.

19.1.1. Law Changes or Tax Impositions. If, after the Effective
Date, the adoption of any applicable Law or any change in any
applicable Law or any change in the interpretation or
administration thereof by any Governmental Authority charged with
the interpretation or administration thereof, or compliance by any
Lender (or its Applicable Lending Office) with any request or
directive (whether or not having the force of law) of any such
Governmental Authority, central bank, or comparable agency:

(i) subjects such Lender (or its Applicable Lending Office) to any
Tax with respect to any Eurodollar Loans or its obligation to make
Eurodollar Loans, or change the basis of taxation of any amounts
payable to such Lender (or its Applicable Lending Office) under
this Agreement in respect of any Eurodollar Loans (other than Taxes
imposed on the overall net income of such Lender by the
jurisdiction in which such Lender has its principal office or such
Applicable Lending Office);

(ii) imposes, modifies, or deems applicable any reserve, special
deposit, assessment or similar requirement (other than the reserve
requirement utilized in the determination of the Eurodollar Rate)
relating to any extensions of credit or other assets of, or any
deposits with or other liabilities or commitments of, such Lender
(or its Applicable Lending Office), including the Commitment of
such Lender hereunder; or

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(iii) imposes on such Lender (or its Applicable Lending Office) or
on the United States market for certificates of deposit or the
London Interbank market any other condition affecting this
Agreement, its Commitments or its Note or any of such extensions of
credit or liabilities or commitments;

and the result of any of the foregoing is to increase the cost to
such Lender (or its Applicable Lending Office) of making,
converting into, continuing, or maintaining any Loans or to reduce
any sum received or receivable by such Lender (or its Applicable
Lending Office) under this Agreement or any of its Notes with
respect to any Loans, then Borrower shall pay to such Lender on
demand such amount or amounts as will compensate such Lender for
such increased cost or reduction. If any Lender requests
compensation by Borrower under this Section 19.1.1, Borrower may,
by notice to such Lender (with a copy to Administrative Agent),
suspend the obligation of such Lender to make or continue Loans of
the type with respect to which such compensation is requested, or
to convert Loans of any other type into Loans of such type, until
the event or condition giving rise to such request ceases to be in
effect (in which case the provisions of Section 19.5 shall be
applicable); provided, however, that such suspension shall not
affect the right of such Lender to receive the compensation so
requested.

19.1.2. Capital Adequacy. If, after the Effective Date, any Lender
shall have determined that the adoption of any applicable Law
regarding capital adequacy or any change therein or in the
interpretation or administration thereof by any governmental
authority, central bank, or comparable agency charged with the
interpretation or administration thereof, or any request or
directive regarding capital adequacy (whether or not having the
force of law) of any such governmental authority, central bank, or
comparable agency, has or would have the effect of reducing the
rate of return on the capital of such Lender or any corporation
controlling such Lender as a consequence of such Lender’s
obligations hereunder to a level below that which such Lender or
such corporation could have achieved but for such adoption, change,
request, or directive (taking into consideration its policies with
respect to capital adequacy), then from time to time upon demand
Borrower shall pay to such Lender such additional amount or amounts
as will compensate such Lender for such reduction.

19.1.3. Notice to Borrower. Each Lender shall promptly notify
Borrower and Administrative Agent of any event of which it has
knowledge, occurring after the date hereof, which will entitle such
Lender to compensation pursuant to this Section 19.1 and will
designate a different Applicable Lending Office if such designation
will avoid the need for, or reduce the amount of, such compensation
and will not, in the judgment of such Lender, be otherwise
disadvantageous to it. Any Lender claiming compensation under this
Section 19.1 shall furnish to Borrower and Administrative Agent a
statement setting forth the additional amount or amounts to be paid
to it hereunder which shall be conclusive in the

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absence of manifest error. In determining such amount, such Lender
may use any reasonable averaging and attribution methods.

19.2. Market Failure. If on or prior to the first day of any Interest
Period for any Eurodollar Loan:

(i) Administrative Agent determines (which determination shall be
conclusive) that by reason of circumstances affecting the relevant
market, adequate and reasonable means do not exist for ascertaining
the Eurodollar Rate for such Interest Period; or

(ii) the Required Lenders determine (which determination shall be
conclusive) and notify Administrative Agent that the Eurodollar
Rate will not adequately and fairly reflect the cost to the Lenders
of funding Eurodollar Loans for such Interest Period;

then Administrative Agent shall give Borrower prompt notice thereof, and
so long as such condition remains in effect, the Lenders shall be under
no obligation to make additional Eurodollar Loans, continue Eurodollar
Loans, or to convert Eurodollar Loans and Borrower shall, on the last
day(s) of the then current Interest Period(s) for the outstanding
Eurodollar Loans either prepay such Loans or convert such Loans into Base
Rate Loans in accordance with the terms of this Agreement.

19.3. Illegality. Notwithstanding any other provision of this Agreement,
in the event that it becomes unlawful for any Lender or its Applicable
Lending Office to make, maintain, or fund Eurodollar Loans hereunder,
then such Lender shall promptly notify Borrower thereof and such Lender’s
obligation to make, continue Eurodollar Loans or convert Base Rate Loans
into Eurodollar Loans shall be suspended until such time as such Lender
may again make, maintain, and fund Eurodollar Loans (in which case the
provisions of Section 19.5 shall be applicable).

19.4. Compensation. Upon the request of any Lender, Borrower shall pay
to such Lender such amount or amounts as shall be sufficient (in the
reasonable opinion of such Lender) to compensate it for any loss, cost,
or expense (including loss of anticipated profits) incurred by it as a
result of:

(i) any payment, prepayment, or conversion of a Eurodollar Loan for
any reason (including, without limitation, the acceleration of the
Loans pursuant to the terms hereof) on a date other than the last
day of the Interest Period for such Eurodollar Loan; or

(ii) any failure by Borrower for any reason to borrow, convert,
continue, or prepay a Eurodollar Loan on the date for such
borrowing, conversion, continuation, or prepayment specified in the
relevant notice of borrowing, prepayment, continuation, or
conversion under this Agreement.

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If a Lender claims compensation under this Section 19.4, such Lender
shall furnish a certificate to Borrower that states the amount to be paid
to it hereunder and includes a description of the method used by such
Lender in calculating such amount. Borrower shall have the burden of
proving that the amount of any such compensation calculated by a Lender
is not correct. Any compensation payable by Borrower to a Lender under
this Section 19.4 shall be payable without regard to whether such Lender
has funded its pro-rata share of any Eurodollar Advance or Eurodollar
Loan through the purchase of deposits in an amount or of a maturity
corresponding to the deposits used as a reference in determining the
Eurodollar Rate.

19.5. Treatment of Affected Loans. If the obligation of any Lender to
make Eurodollar Loans or to continue any Eurodollar Loans, or to convert
any Base Rate Loan into a Eurodollar Loan shall be suspended pursuant to
Section 19.1, 19.2, or 19.3 (such Loans being herein called Affected
Loans), such Lender’s Affected Loans shall be automatically and
immediately converted into Base Rate Loans on the last day(s) of the then
current Interest Period(s) for Affected Loans (or, in the case of a
conversion required by Section 19.3, on such earlier date as such Lender
may specify to Borrower with a copy to Administrative Agent) and, unless
and until such Lender gives notice as provided below that the
circumstances specified in Section 19.1, 19.2, or 19.3 that gave rise to
such conversion no longer exist:

(i) to the extent that such Lender’s Affected Loans have been so
converted, all payments and prepayments of principal that would
otherwise be applied to such Lender’s Affected Loans shall continue
to be made and applied as provided for herein; and

(ii) all Loans that would otherwise be made or continued by such
Lender as Eurodollar Loans shall be made or continued instead as
Base Rate Loans, and all Loans of such Lender that would otherwise
be converted into Eurodollar Loans shall be converted instead into
(or shall remain as) Base Rate Loans.

If such Lender gives notice to Borrower (with a copy to Administrative
Agent) that the circumstances specified in Section 19.1, 19.2, or 19.3
hereof that gave rise to the conversion of such Lender’s Affected Loans
pursuant to this Section 19.5 no longer exist (which such Lender agrees
to do promptly upon such circumstances ceasing to exist) at a time when
Loans of the type of the Affected Loans made by other Lenders are
outstanding, such Lender’s Base Rate Loans shall be automatically
converted, on the first day(s) of the next succeeding Interest Period(s)
for such outstanding Loans of the type of the Affected Loans, to the
extent necessary so that, after giving effect thereto, all Loans held by
the Lenders holding Loans of the type of the Affected Loans and by such
Lender are held pro rata (as to principal amounts, type of interest, and
Interest Periods) in accordance with their respective Commitments.

19.6. Taxes.

19.6.1. Gross-Up. Any and all payments by Borrower to or for the
account of any Lender or the Administrative Agent hereunder or
under any other Loan

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Document shall be made free and clear of and without deduction for
any and all Taxes, whether imposed now or in the future, excluding,
in the case of each Lender and the Administrative Agent, Taxes
imposed on its income, and franchise Taxes imposed on it, by the
jurisdiction under the Laws of which such Lender (or its Applicable
Lending Office) or the Administrative Agent (as the case may be) is
organized or any political subdivision thereof. If Borrower is
required by Law to deduct any Taxes from or in respect of any sum
payable under this Agreement or any other Loan Document to any
Lender or the Administrative Agent, (i) the sum payable will be
increased as necessary so that after making all required deductions
(including deductions applicable to additional sums payable under
this Section 19.6) such Lender or the Administrative Agent receives
an amount equal to the sum it would have received had no such
deductions been made, (ii) Borrower shall make such deductions,
(iii) Borrower shall pay the full amount deducted to the relevant
taxation authority or other authority in accordance with applicable
Law, and (iv) Borrower shall furnish to Administrative Agent, at
its address referred to herein, the original or a certified copy of
a receipt evidencing payment thereof. In addition, Borrower agrees
to pay any and all present or future stamp or documentary taxes and
any other excise or property taxes or charges or similar levies
which arise from any payment made under this Agreement or any other
Loan Document or from the execution or delivery of, or otherwise
with respect to, this Agreement or any other Loan Document
(hereinafter referred to as Impositions). Borrower agrees to
indemnify each Lender and the Administrative Agent for the full
amount of Taxes and Impositions (including, without limitation, any
Taxes or Impositions imposed or asserted by any jurisdiction on
amounts payable under this Section 19.6) paid by such Lender or the
Administrative Agent (as the case may be) and any liability
(including penalties, interest and expenses) arising therefrom or
with respect thereto. Within 30 days after the date of any payment
of Taxes, Borrower shall furnish to Administrative Agent the
original or a certified copy of the receipt evidencing such
payment.

19.6.2. Lenders’ Undertakings.

(i) Each Lender organized under the Laws of a jurisdiction outside
the United States, on or prior to the date of its execution and
delivery of this Agreement in the case of each Lender listed on the
signature pages hereof and on or prior to the date on which it
becomes a Lender in the case of each other Lender, and from time to
time thereafter if requested in writing by Borrower or
Administrative Agent (but only so long as such Lender remains
lawfully able to do so), shall provide Borrower and Administrative
Agent with (i) Internal Revenue Service Form 1001 or 4224, as
appropriate, or any successor form prescribed by the Internal
Revenue Service, certifying that such Lender is entitled to
benefits under an income tax treaty to which the United States is a
party which reduces the rate of withholding Tax on payments of
interest or certifying that the income receivable pursuant to this
Agreement is effectively connected with the conduct of a trade or
business in the United States, (ii) Internal Revenue Service Form
W-8 or W-9, as appropriate, or any successor form prescribed by the
Internal Revenue

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Service, and (iii) any other form or certificate required by any
Governmental Authority (including any certificate required by
Sections 871(h) and 881(c) of the Internal Revenue Code),
certifying that such Lender is entitled to an exemption from or a
reduced rate of Tax on payments pursuant to this Agreement or any
of the other Loan Documents. For any period with respect to which a
Lender has failed to provide Borrower and Administrative Agent with
the appropriate form pursuant to this Section 19.6.2 (unless such
failure is due to a change in treaty or Law occurring subsequent to
the date on which a form originally was required to be provided),
such Lender shall not be entitled to indemnification under Section
19.6.1 with respect to Taxes imposed by the United States;
provided, however, that should a Lender, which is otherwise exempt
from or subject to a reduced rate of withholding tax, become
subject to Taxes because of its failure to deliver a form required
hereunder, Borrower shall take such steps as such Lender shall
reasonably request to assist such Lender to recover such Taxes.

(ii) If Borrower is required to pay additional amounts to or for
the account of any Lender or Administrative Agent pursuant to this
Section 19.6.2, then such Lender or the Administrative Agent will
agree to use reasonable efforts to change the jurisdiction of its
Applicable Lending Office so as to eliminate or reduce any such
additional payment which may thereafter accrue if such change, in
the judgment of such Lender or the Administrative Agent, as the
case may be, is not otherwise disadvantageous to such Lender or the
Administrative Agent, as the case may be.

19.6.3. Survival of Borrower’s Obligations. Without prejudice to
the survival of any other agreement of Borrower hereunder, the
agreements and obligations of Borrower contained in this Section
19.6 shall survive the termination of the Commitments, the
expiration of the Letters of Credit, the indefeasible full payment
and satisfaction of all of the Loan Obligations, and the release of
the Collateral.

19.7. Usury. Notwithstanding any provisions to the contrary in Section 4
or elsewhere in any of the Loan Documents, Borrower shall not be
obligated to pay interest at a rate which exceeds the maximum rate
permitted by Law. If, but for this Section 19.7, Borrower would be deemed
obligated to pay interest at a rate which exceeds the maximum rate
permitted by Law, or if any of the Loan Obligations is paid or becomes
payable before its originally scheduled Maturity and as a result Borrower
has paid or would be obligated to pay interest at such an excessive rate,
then (i) Borrower shall not be obligated to pay interest to the extent it
exceeds the interest that would be payable at the maximum rate permitted
by Law; (ii) if the outstanding Loan Obligations have not been
accelerated as provided in Section 17.3.2, any such excess interest that
has been paid by Borrower shall be refunded; (iii) if the outstanding
Loan Obligations have been accelerated as provided in Section 17.3.2, any
such excess that has been paid by Borrower shall be applied to the Loan
Obligations as provided in Section 17.4; and (iv) the effective rate of
interest shall be deemed automatically reduced to the maximum rate
permitted by Law.

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20. General.

20.1. Lenders’ Right to Cure. Required Lenders may from time to time, in
their absolute discretion, for Borrower’s account and at Borrower’s
expense, pay (or, with the consent of Required Lenders, make a Revolving
Loan Advance to pay) any amount or do any act required of Borrower
hereunder or requested by Administrative Agent or Required Lenders to
preserve, protect, maintain or enforce the Loan Obligations, the
Collateral or Administrative Agent’s Security Interests therein for the
benefit of Lenders, and which Borrower fails to pay or do, including
payment of any judgment against Borrower, insurance premium, taxes or
assessments, warehouse charge, finishing or processing charge, landlord’s
claim, and any other Security Interest upon or with respect to the
Collateral provided that neither Administrative Agent nor any Lender
shall take any such actions if there is no Event of Default, Borrower is
disputing such item(s) in good faith and Borrower establishes appropriate
reserves adequate to pay any such item(s) in accordance with GAAP in the
event that Borrower does not prevail in such a dispute. All payments that
Lenders make pursuant to this Section and all out-of-pocket costs and
expenses that Lenders pay or incur in connection with any action taken by
them hereunder shall be a part of the Loan Obligations, the repayment of
which shall be secured by the Collateral. Any payment made or other
action taken by Lenders pursuant to this Section shall be without
prejudice to any right to assert an Event of Default hereunder and to
pursue Lender’s other rights and remedies with respect thereto.

20.2. Rights Not Exclusive. Every right granted to Administrative Agent
and Lenders hereunder or under any other Loan Document or allowed to it
at law or in equity shall be deemed cumulative and may be exercised from
time to time.

20.3. Survival of Agreements. All covenants and agreements made herein
and in the other Loan Documents shall survive the execution and delivery
of this Agreement, the Notes and other Loan Documents and the making of
every Advance. All agreements, obligations and liabilities of Borrower
under this Agreement concerning the payment of money to Administrative
Agent and Lenders, including Borrower’s obligations under Sections 20.8
and 20.9, but excluding the obligation to repay the Loans and interest
accrued thereon, shall survive the repayment in full of the Loans and
interest accrued thereon, whether or not indefeasible, the return of the
Notes to Borrower, the termination of the Commitments and the expiration
of all Letters of Credit.

20.4. Assignments.

20.4.1. Permitted Assignments. At any time after the Execution
Date, any Lender may assign to one or more Eligible Assignees all
or a portion of its rights and obligations under this Agreement
(including all or a portion of the Notes payable to it, its
Commitments and its Loans), provided that the terms of assignment
satisfy the following requirements:

20.4.1.1. Administrative Agent shall have accepted the
assignment, which acceptance shall not be unreasonably
withheld.

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20.4.1.2. Each such assignment shall be of a constant, and
not a varying, percentage of all of the assigning Lender’s
rights and obligations under this Agreement.

20.4.1.3. For each assignment involving the issuance and
transfer of Notes, the assigning Lender shall execute an
Assignment and Acceptance in the form attached hereto as
Exhibit 20.4.1 together with any Note subject to such
assignment and a processing fee of $1,000.00.

20.4.1.4. The minimum Commitment which shall be assigned
(which shall include the applicable portion of the assigning
Lender’s Revolving Loan Commitment, Term Loan A Commitment,
Term Loan B Commitment, and Letter of Credit Commitment) is
$5,000,000.00, or such lesser amount which constitutes such
Lender’s entire Commitment; provided, however, that no such
minimum shall apply between a Lender and its Affiliates, or
between one Lender and another Lender or an assignment of all
of a Lender’s rights and obligations under this Agreement.

20.4.1.5. The assignee shall have an office located in the
United States and is otherwise an Eligible Assignee.

20.4.1.6. If there is no Event of Default in existence as of
the date of such assignment, Borrower shall have consented to
the assignment, which consent shall not be unreasonably
withheld.

20.4.2. Consequences and Effect of Assignments. From and after the
effective date specified in any Assignment and Acceptance, the
assignee shall be deemed and treated as a party to this Agreement
and, to the extent that rights and obligations hereunder and under
the Notes held by the assignor have been assigned or negotiated to
the assignee pursuant to such Assignment and Acceptance, to have
the rights and obligations of a Lender hereunder as fully as if
such assignee had been named as a Lender in this Agreement and of a
holder of such Notes, and the assignor shall, to the extent that
rights and obligations hereunder or under such Notes have been
assigned or negotiated by it pursuant to such Assignment and
Acceptance, relinquish its rights and be released from its future
obligations under this Agreement. If the assignee is not
incorporated under the laws of the United States of America or a
state thereof, it shall deliver to Borrower and Administrative
Agent certification as to the exemption from deduction or
withholding of Taxes in accordance with Section 19.6.

20.4.3. Agreements Upon Assignment. By executing and delivering an
Assignment and Acceptance, the assignor thereunder and the assignee
confirm to and agree with each other and the other parties hereto
substantially as follows: (i) the assignment made under such
Assignment and Acceptance is made under such Assignment and
Acceptance without recourse; (ii) such assignor makes no
representation or warranty and assumes no responsibility with
respect to the

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financial condition of any Covered Person or the performance or
observance by any Covered Person of any of its Loan Obligations;
(iii) such assignee confirms that it has received a copy of this
Agreement, together with copies of the Financial Statements and
such other Loan Documents and other documents and information as it
has deemed appropriate to make its own credit analysis and decision
to enter into such Assignment and Acceptance; (iv) such assignee
will, independently and without reliance upon Administrative Agent,
such assignor, or any other Lender, and based on such documents and
information as it deems appropriate at the time, continue to make
its own credit decisions in taking or not taking action under this
Agreement; (v) such assignee appoints and authorizes Administrative
Agent to take such action as agent on its behalf and to exercise
such powers under this Agreement and the other Loan Documents as
are delegated to Agent by the terms hereof and thereof, together
with such powers as are reasonably incidental thereto; and (vi)
such assignee agrees that it will perform in accordance with their
terms all of the obligations which by the terms of this Agreement
are required to be performed by it as a Lender and a holder of a
Note.

20.4.4. Register. Administrative Agent shall maintain at its
address referred to herein a copy of each Assignment and Acceptance
delivered to and accepted by it and a register for the recordation
of the names and addresses of the Lenders and the Commitment of and
principal amount of Loans owing to, each Lender from time to time
(the Register). The entries in the Register shall be conclusive and
binding for all purposes, absent manifest error, and Borrower,
Administrative Agent and Lenders may treat each Person whose name
is recorded in the Register as a Lender hereunder for all purposes
of this Agreement. The Register shall be available for inspection
by Borrower or any Lender at any reasonable time and from time to
time upon reasonable prior notice. Upon its receipt of an
Assignment and Acceptance executed by the parties thereto, together
with any Note subject to such assignment and payment of the
processing fee, Administrative Agent shall, if such Assignment and
Acceptance has been completed and is in substantially the form of
Exhibit 20.4.1 hereto, (i) accept such Assignment and Acceptance,
(ii) record the information contained therein in the Register and
(iii) give prompt notice thereof to the parties thereto.

20.4.5. Notice to Borrower of Assignment. Upon its receipt of an
Assignment and Acceptance executed by an assigning Lender, if
Administrative Agent accepts the assignment contemplated thereby,
Administrative Agent shall give prompt notice thereof to Borrower.
Borrower shall execute and deliver replacement Notes to the
assignor and assignee as requested by Administrative Agent and
necessary to give effect to the assignment. If Borrower fails or
refuses to execute and deliver such replacement Notes,
Administrative Agent may, as agent and attorney-in-fact for
Borrower, execute and deliver such replacement Notes on behalf of
Borrower. Borrower hereby appoints Administrative Agent as its
agent and attorney-in-fact for such purpose and acknowledges that
such power is coupled with an interest and therefore irrevocable.
Administrative Agent shall not have any liability to

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Borrower or anyone else, including any Lender, as a consequence of
exercising such power in any instance.

20.4.6. Assignment to Federal Reserve Bank. Notwithstanding any
other provision set forth in this Agreement, any Lender may at any
time assign and pledge all or any portion of its Loans and its Note
to any Federal Reserve Bank as collateral security pursuant to
Regulation A and any Operating Circular issued by such Federal
Reserve Bank. No such assignment shall release the assigning Lender
from its obligations hereunder.

20.5. Sale of Participations. Each Lender may sell participations to one
or more Persons (other than Borrower or an Affiliate of Borrower) in all
or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and its Loans); provided,
however, that (i) such Lender’s obligations under this Agreement shall
remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) the
participant shall be entitled to the benefit of the yield protection
provisions contained in Section 19 and the right of setoff contained in
Section 17.3.3, (iv) the amount of the participation shall be in a
minimum amount of $1,000,000.00 or such lesser amount which constitutes
such Lender’s entire Commitment, provided, however, that no such minimum
amount shall apply to participations between any of Lenders or between
any Lender and any of its Affiliates; and (v) Borrower, the other Lenders
and Administrative Agent shall continue to deal solely and directly with
such Lender in connection with such Lender’s rights and obligations under
this Agreement, and such Lender shall retain the sole right to enforce
the obligations of Borrower relating to its Loans, its Notes and its
funding of Advances and to approve any amendment, modification, or waiver
of any provision of this Agreement (other than amendments, modifications,
or waivers that (a) decrease the amount of principal of the Loans, (b)
reduce the rate at which interest is payable on the Loans, (c) extend the
final maturity of the Notes, (d) increase its Commitment (if such
increase is to be shared by any such Participant), or (e) release any
Guarantor. Notwithstanding the foregoing, the sale of any such
participations which require Borrower to file a registration statement
with the SEC or under the securities Laws of any state shall not be
permitted.

20.6. Intentionally Deleted.

20.7. Information. Any Lender or Administrative Agent may furnish any
information concerning Borrower or any of its Subsidiaries in the
possession of such Lender or Administrative Agent, as the case may be,
from time to time to assignees and participants (including prospective
assignees and participants), provided such assignees and participants
shall agree to keep such information confidential.

20.8. Payment of Expenses. Borrower agrees to pay or reimburse to
Administrative Agent all of Administrative Agent’s out-of-pocket costs
incurred in connection with Administrative Agent’s due diligence review
before execution of the Loan Documents; the negotiation and preparation
of proposals, a commitment letter and the Loan Documents; the syndication
of the Loans; the administration of this Agreement, the Loan

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Documents and the Loans; the perfection of Administrative Agent’s
Security Interests in the Collateral; the interpretation of any of the
Loan Documents; any amendment of or supplementation to any of the Loan
Documents; and any waiver, consent or forbearance with respect to any
Default or Event of Default. Borrower agrees to pay or reimburse to each
Lender all of such Lender’s out-of-pocket costs incurred in connection
with the enforcement of such Lender’s rights and remedies under the Loan
Documents after a Default or Event of Default. Administrative Agent’s
out-of-pocket costs may include but are not limited to the following, to
the extent they are actually paid or incurred by Administrative Agent:
title insurance fees and premiums; the cost of searches for Security
Interests existing against Covered Persons; recording and filing fees;
appraisal fees; environmental consultant fees; litigation costs; and all
attorneys’ and paralegals’ expenses and reasonable fees. Each Lender’s
out-of-pocket costs may include but are not limited to the following, to
the extent they are actually paid or incurred by a Lender: litigation
costs and all attorneys’ and paralegals’ expenses and reasonable fees.
Attorneys’ and paralegals’ expenses may include but are not limited to
filing charges; telephone, data transmission, facsimile and other
communication costs; courier and other delivery charges; and photocopying
charges. Litigation costs may include but are not limited to filing fees,
deposition costs, expert witness fees, expenses of service of process,
and other such costs paid or incurred in any administrative, arbitration,
or court proceedings involving a Lender and any Covered Person, including
proceedings under the Federal Bankruptcy Code. All costs which Borrower
is obligated to pay or reimburse Administrative Agent or the Lenders are
Loan Obligations payable to Administrative Agent or Lender, as
applicable, and are payable on demand by Administrative Agent or such
Lender.

20.9. General Indemnity.

20.9.1. Borrower agrees to indemnify and hold harmless
Administrative Agent and each Lender and each of their Affiliates
and their respective officers, directors, employees, agents, and
advisors (each, an Indemnified Party) from and against any and all
claims, damages, losses, liabilities, costs, and expenses
(including, without limitation, reasonable attorneys’ fees) that
may be incurred by or asserted or awarded against any Indemnified
Party, in each case arising out of or in connection with or by
reason of (including, without limitation, in connection with any
investigation, litigation, or proceeding or preparation of defense
in connection therewith) the Loan Documents, the Acquisition
Documents, any of the transactions contemplated herein or therein
or the actual or proposed use of the proceeds of the Loans, or the
manufacture, storage, transportation, release or disposal of any
Hazardous Material on, from, over or affecting any of the
Collateral or any of the assets, properties, or operations of any
Covered Person or any predecessor in interest, directly or
indirectly, except to the extent such claim, damage, loss,
liability, cost, or expense is found in a final, non-appealable
judgment by a court of competent jurisdiction to have resulted from
such Indemnified Party’s gross negligence or willful misconduct. In
the case of an investigation, litigation or other proceeding to
which the indemnity in this Section 20.9 applies, such indemnity
shall be effective whether or not such investigation,

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litigation or proceeding is brought by Borrower, its directors,
shareholders or creditors or an Indemnified Party or any other
Person or any Indemnified Party is otherwise a party thereto and
whether or not the transactions contemplated hereby are
consummated. Borrower agrees not to assert any claim against
Administrative Agent, any Lender, any of their Affiliates, or any
of their respective directors, officers, employees, attorneys,
agents, and advisers, on any theory of liability, for special,
indirect, consequential, or punitive damages arising out of or
otherwise relating to the Loan Documents, the Acquisition
Documents, any of the transactions contemplated herein or therein
or the actual or proposed use of the proceeds of the Loans.
Borrower shall pay, indemnify and hold harmless the Indemnified
Parties for, from and against, and shall promptly reimburse the
Indemnified Parties for, any and all claims, damages, liabilities,
losses, costs and expenses (including reasonable attorneys’ fees
and expenses and amounts paid in settlement) incurred, paid or
sustained by the Indemnified Parties, arising out of or relating to
the Acquisition Documents or enforcement by Administrative Agent of
any of its rights with respect thereto.

20.9.2. The obligations of Borrower under this Section 20.9 shall
survive the termination of the Commitments, the expiration of the
Letters of Credit, the indefeasible full payment and satisfaction
of all of the Loan Obligations, and the release of the Collateral.

20.9.3. To the extent that any of the indemnities required from
Borrower under this Section are unenforceable because they violate
any Law or public policy, Borrower shall pay the maximum amount
which it is permitted to pay under applicable Law.

20.10. Letters of Credit. Borrower assumes all risks of the acts or
omissions of any beneficiary of any of the Letters of Credit. Neither
Administrative Agent nor any of its directors, officers, employees,
agents, or representatives shall be liable or responsible for: (a) the
use which may be made of any of the Letters of Credit or for any acts or
omissions of beneficiary in connection therewith; (b) the validity,
sufficiency or genuineness of documents, or of any endorsement(s)
thereon, even if such documents should in fact prove to be in any or all
respects invalid, insufficient, fraudulent or forged; (c) payment by
Administrative Agent against presentation of documents which, on their
face, appear to comply with the terms of any Letter of Credit, even
though such documents may fail to bear any reference or adequate
reference to any such Letter of Credit; or (d) any other circumstances
whatsoever in making or failing to make payment under any Letter of
Credit in connection with which Administrative Agent would, pursuant to
the Uniform Customs and Practices for Documentary Credits (1993
Revision), International Chamber of Commerce Publication No. 500 (as
amended from time to time), be absolved from liability. In furtherance
and not in limitation of the foregoing, Letter of Credit Issuer may
accept documents that appear on their face to be in order, without
responsibility for further investigation, regardless of any notice or
information to the contrary.

20.11. Changes in Accounting Principles. If any Covered Person, at the
end of its fiscal year and with the concurrence of its independent
certified public accountants,

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changes the method of valuing the Inventory of such Covered Person, or if
any other changes in accounting principles from those used in the
preparation of any of the Financial Statements are required by or result
from the promulgation of principles, rules, regulations, guidelines,
pronouncements or opinions by the Financial Accounting Standards Board or
the American Institute of Certified Public Accountants (or successors
thereto or bodies with similar functions), and any of such changes result
in a change in the method of calculation of, or affect the results of
such calculation of, any of the financial covenants, standards or terms
found herein, then the parties hereto agree to enter into and diligently
pursue negotiations in order to amend such financial covenants, standards
or terms so as to equitably reflect such changes, with the desired result
that the criteria for evaluating the financial condition and results of
operations of such Covered Person shall be the same after such changes as
if such changes had not been made; provided, however, that until such
changes are made, all financial covenants herein and all the provisions
hereof which contemplate financial calculation hereunder shall remain in
full force and effect.

20.12. Loan Records. The date and amount of all Advances to Borrower and
payments of amounts due from Borrower under the Loan Documents will be
recorded in the records that Administrative Agent normally maintains for
such types of transactions. The failure to record, or any error in
recording, any of the foregoing shall not, however, affect the obligation
of Borrower to repay the Loans and other amounts payable under the Loan
Documents. Borrower shall have the burden of proving that such records
are not correct. Borrower agrees that Administrative Agent’s and any
Lender’s books and records showing the Loan Obligations and the
transactions pursuant to this Agreement shall be admissible in any action
or proceeding arising therefrom, and shall constitute prima facie proof
thereof, irrespective of whether any Loan Obligation is also evidenced by
a promissory note or other instrument. Administrative Agent will provide
to Borrower a monthly statement of Advances, payments, and other
transactions pursuant to this Agreement. Such statement shall be deemed
correct, accurate and binding on Borrower and an account stated (except
for reversals and reapplications of payments as provided in Section 6.7
and corrections of errors discovered by Administrative Agent or a
Lender), unless Borrower notifies Administrative Agent in writing to the
contrary within 60 days after such statement is rendered. In the event a
timely written notice of objections is given by Borrower, only the items
to which exception is expressly made will be considered to be disputed by
Borrower.

20.13. Other Security and Guaranties. Administrative Agent or any Lender
may, without notice or demand and without affecting Borrower’s
obligations hereunder, from time to time: (a) take from any Person and
hold collateral (other than the Collateral) for the payment of all or any
part of the Loan Obligations and exchange, enforce and release such
collateral or any part thereof; and (b) accept and hold any endorsement
or guaranty of payment of all or any part of the Loan Obligations and
release or substitute any such endorser or guarantor, or any Person who
has given any Security Interest in any other collateral as security for
the payment of all or any part of the Loan Obligations, or any other
Person in any way obligated to pay all or any part of the Loan
Obligations.

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20.14. Loan Obligations Payable in Dollars. All Loan Obligations that
are payable in Dollars under the terms of the Loan Documents shall be
payable only in Dollars. If, however, to obtain a judgment in any court
it is necessary to convert a Loan Obligation payable in Dollars into
another currency, the rate of exchange used shall be that at which
Administrative Agent, using its customary procedures, could purchase
Dollars with such other currency in New York, New York on the Business
Day immediately preceding the day on which such judgment is rendered. If
any sum in another currency is paid to a Lender or received by a Lender
and applied to a Loan Obligation payable in Dollars, such Loan Obligation
shall be deemed paid and discharged only to the extent of the amount of
Dollars that Administrative Agent, using its customary procedures, is
able to purchase in New York, New York with such sum on the Business Day
immediately following receipt thereof. Borrower agrees to indemnify each
Lender against any loss in Dollars that it may incur on such Loan
Obligation as a result of such payment or receipt and application to such
Loan Obligation.

21. Miscellaneous.

21.1. Notices. All notices, consents, requests and demands to or upon
the respective parties hereto shall be in writing, and shall be deemed to
have been given or made when delivered in person to those Persons listed
on the signature pages hereof or three (3) days after deposit in the
United States mail, postage prepaid, or, in the case of overnight courier
services, one (1) day after delivery to the overnight courier service, or
in the case of telecopy notice, when sent, verification received, in each
case addressed as set forth on the signature pages hereof, or such other
address as either party may designate by notice to the other in
accordance with the terms of this Section. No notice given to or demand
made on Borrower by Administrative Agent or any Lender in any instance
shall entitle Borrower to notice or demand in any other instance.

21.2. Amendments and Modifications; Waivers and Consents. Unless
otherwise provided herein, no amendment to or modification of any
provision of this Agreement, or of any of the other Loan Documents shall
be effective unless it is in writing and signed by authorized officers of
Borrower and Required Lenders. Unless otherwise provided herein, no
waiver of, or consent to any departure by Borrower from, the requirements
of any provision of this Agreement or any of the other Loan Documents
shall be effective unless it is in writing and signed by authorized
officers of Required Lenders. Any such amendment, modification, waiver or
consent shall be effective only in the specific instance and for the
purpose for which given. The foregoing notwithstanding, no such
amendment, modification or consent shall, unless signed by authorized
officers of Borrower and of all Lenders: (i) change any Revolving Loan
Commitment or any Term Loan A Commitment or Term Loan B Commitment of any
Lender, or change the Letter of Credit Commitment or subject any Lender
or the Letter of Credit Issuer to a greater obligation than expressly
provided for in this Agreement, (ii) reduce or forgive the repayment of
principal of any Advance or the reimbursement of any draw on a Letter of
Credit or change the rate, or mechanism for determining the rate, of
interest on any Advance or any fees or other amounts payable by Borrower
hereunder, (iii) change the regularly scheduled dates for payments of
principal or interest of any Advance or other

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fees or amounts payable to any Lender under the Loan Documents
(including, without limitation, the Revolving Loan Maturity Date or the
Term Loan Maturity Date), (iv) change the provisions of Section 18 to the
detriment of any Lender, (v) change the definition of Required Lenders
herein, (vi) change any requirement herein that any particular action be
taken by all Lenders or by Required Lenders, (vii) change the provisions
of this Section, (viii) release any of the Collateral (except in the
ordinary course of business or as otherwise expressly permitted by the
terms of this Agreement) or any Covered Person or any Guarantor from its
obligations under the Loan Documents, or (ix) change any provisions of
this Agreement requiring ratable distributions to Lenders. No failure by
Administrative Agent or any Lender to exercise, and no delay by
Administrative Agent or any Lender in exercising, any right, remedy,
power or privilege hereunder shall operate as a waiver thereof, nor shall
any single or partial exercise by Administrative Agent or any Lender of
any right, remedy, power or privilege hereunder preclude any other
exercise thereof, or the exercise of any other right, remedy, power or
privilege existing under any Law or otherwise.

21.3. Rights Cumulative. Each of the rights and remedies of
Administrative Agent and Lenders under this Agreement shall be in
addition to all of its other rights and remedies under applicable Law,
and nothing in this Agreement shall be construed as limiting any such
rights or remedies.

21.4. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and all future holders of the
Notes and their respective successors and assigns, except that Borrower
may not assign, delegate or transfer any of its rights or obligations
under this Agreement without the prior written consent of Administrative
Agent and Required Lenders. With respect to Borrower’s successors and
assigns, such successors and assigns shall include any receiver, trustee
or debtor-in-possession of or for Borrower.

21.5. Severability. Any provision of this Agreement which is prohibited,
unenforceable or not authorized in any jurisdiction shall, as to such
jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or lack of authorization without invalidating the
remaining provisions hereof or affecting the validity, enforceability or
legality of such provision in any other jurisdiction unless the
ineffectiveness of such provision would result in such a material change
as to cause completion of the transactions contemplated hereby to be
unreasonable.

21.6. Counterparts. This Agreement may be executed by the parties hereto
on any number of separate counterparts, and all such counterparts taken
together shall constitute one and the same instrument. It shall not be
necessary in making proof of this Agreement to produce or account for
more than one counterpart signed by the party to be charged.

21.7. Governing Law; No Third Party Rights. This Agreement, the Notes
and the other Loan Documents and the rights and obligations of the
parties hereunder and thereunder shall be governed by and construed and
interpreted in accordance with the internal Laws of the State of Illinois
applicable to contracts made and to be performed wholly within such
state, without regard to choice or conflicts of law principles; except

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that the provisions of the Loan Documents pertaining to the creation or
perfection of Security Interests or the enforcement of rights of
Administrative Agent and Lenders in Collateral located in a State other
that the State of Illinois shall be governed by the Laws of such State.
This Agreement is solely for the benefit of the parties hereto and their
respective successors and assigns, and no other Person shall have any
right, benefit, priority or interest under, or because of the existence
of, this Agreement.

21.8. Counterpart Facsimile Execution. For purposes of this Agreement, a
document (or signature page thereto) signed and transmitted by facsimile
machine or telecopier is to be treated as an original document. The
signature of any Person thereon, for purposes hereof, is to be considered
as an original signature, and the document transmitted is to be
considered to have the same binding effect as an original signature on an
original document. At the request of any party hereto, any facsimile or
telecopy document is to be re-executed in original form by the Persons
who executed the facsimile or telecopy document. No party hereto may
raise the use of a facsimile machine or telecopier or the fact that any
signature was transmitted through the use of a facsimile or telecopier
machine as a defense to the enforcement of this Agreement or any
amendment or other document executed in compliance with this Section.

21.9. Effect of Merger of Bank. Effective immediately upon the merger of
Administrative Agent or a Lender with or into another financial
institution, all references to Administrative Agent or such Lender under
every Loan Document shall be deemed to be references to the surviving
institution. If the surviving institution does not have a “Prime Rate,”
references in the Loan Documents to Prime Rate shall be deemed to be
references to the reference rate (however it is designated) established
from time to time by the surviving institution that is most similar to
the Prime Rate.

21.10. Negotiated Transaction. Borrower, Administrative Agent and each
Lender represent each to the others that in the negotiation and drafting
of this Agreement and the other Loan Documents they have been represented
by and have relied upon the advice of counsel of their choice. Borrower
and Administrative Agent affirm that their counsel have both had
substantial roles in the drafting and negotiation of this Agreement and
each Lender affirms that its counsel has participated in the drafting and
negotiation of this Agreement; therefore, this Agreement will be deemed
drafted by all of Borrower, Administrative Agent and Lenders, and the
rule of construction to the effect that any ambiguities are to be
resolved against the drafter will not be employed in the interpretation
of this Agreement.

21.11. CHOICE OF FORUM. SUBJECT ONLY TO THE EXCEPTION IN THE NEXT
SENTENCE, BORROWER, ADMINISTRATIVE AGENT, AND EACH LENDER HEREBY AGREES
TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL COURT OF THE NORTHERN
DISTRICT OF ILLINOIS AND THE STATE COURTS OF ILLINOIS LOCATED IN COOK
COUNTY AND WAIVES ANY OBJECTION BASED ON VENUE OR FORUM NON CONVENIENS
WITH RESPECT TO ANY ACTION INSTITUTED THEREIN, AND AGREES THAT ANY
DISPUTE CONCERNING THE RELATIONSHIP BETWEEN ADMINISTRATIVE AGENT,
LENDERS, AND BORROWER OR THE

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CONDUCT OF ANY OF THEM IN CONNECTION WITH THIS AGREEMENT OR OTHERWISE
SHALL BE HEARD ONLY IN THE COURTS DESCRIBED ABOVE. NOTWITHSTANDING THE
FOREGOING: (1) ADMINISTRATIVE AGENT OR ANY LENDER SHALL HAVE THE RIGHT TO
BRING ANY ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTY IN ANY
COURTS OF ANY OTHER JURISDICTION ADMINISTRATIVE AGENT OR ANY LENDER DEEM
NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE COLLATERAL, OR OTHER
SECURITY FOR THE LOAN OBLIGATIONS, AND (2) EACH OF THE PARTIES HERETO
ACKNOWLEDGES THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE
IMMEDIATELY PRECEDING SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED
OUTSIDE THOSE JURISDICTIONS.

21.12. SERVICE OF PROCESS. BORROWER HEREBY WAIVES PERSONAL SERVICE OF
ANY AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS
MAY BE MADE BY REGISTERED MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO
BORROWER AT ITS ADDRESS SET FORTH ON THE SIGNATURE PAGES HEREOF, AND
SERVICE SO MADE SHALL BE DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE
SAME SHALL HAVE BEEN SO DEPOSITED IN THE U.S. MAILS; OR AT ADMINISTRATIVE
AGENT’S OR ANY LENDER’S OPTION, BY SERVICE UPON CT CORPORATION, WHICH
BORROWER IRREVOCABLY APPOINTS AS BORROWER’S AGENT FOR THE PURPOSE OF
ACCEPTING SERVICE OF PROCESS WITHIN THE STATE OF ILLINOIS. ADMINISTRATIVE
AGENT OR SUCH LENDER SHALL PROMPTLY FORWARD BY REGISTERED MAIL ANY
PROCESS SO SERVED UPON SAID AGENT TO BORROWER AT ITS ADDRESS ON THE
SIGNATURE PAGES HEREOF. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF
ADMINISTRATIVE AGENT OR ANY LENDER TO SERVE LEGAL PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW.

21.13. WAIVER OF JURY TRIAL. BORROWER, ADMINISTRATIVE AGENT, AND EACH
LENDER HEREBY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND,
ACTION OR CAUSE OF ACTION (1) ARISING UNDER THIS AGREEMENT OR ANY OTHER
LOAN DOCUMENT, OR (2) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL
TO THE DEALINGS OF THE PARTIES HERETO OR EITHER OF THEM IN RESPECT OF
THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR THE TRANSACTIONS RELATED
HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE. BORROWER,
ADMINISTRATIVE AGENT, AND EACH LENDER AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL
WITHOUT A JURY AND THAT EITHER MAY FILE AN ORIGINAL COUNTERPART OR A COPY
OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE

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CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY
JURY.

21.14. Incorporation By Reference. Each attachment, exhibit and schedule
hereto and all of the terms of the other Loan Documents are incorporated
in and made a part of this Agreement by this reference.

21.15.
Patriot Act Notification. As required by federal law and LaSalle’s
policies and practices, LaSalle may need to collect certain customer
identification information and documentation in connection with opening
or maintaining accounts, or establishing or continuing to provide
services.

21.16. Statutory Notice — Insurance. The following notice is given
pursuant to Section 10 of the Collateral Protection Act set forth in
Chapter 815 Section 180/1 of the Illinois Compiled Statutes (1996);
nothing contained in such notice shall be deemed to limit or modify the
terms of the Loan Documents:

UNLESS YOU PROVIDE EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY YOUR
AGREEMENT WITH US, WE MAY PURCHASE INSURANCE AT YOUR EXPENSE TO PROTECT
OUR INTERESTS IN YOUR COLLATERAL. THIS INSURANCE MAY, BUT NEED NOT,
PROTECT YOUR INTERESTS. THE COVERAGE THAT WE PURCHASE MAY NOT PAY ANY
CLAIM THAT YOU MAKE OR ANY CLAIM THAT IS MADE AGAINST YOU IN CONNECTION
WITH THE COLLATERAL. YOU MAY LATER CANCEL ANY INSURANCE PURCHASED BY US,
BUT ONLY AFTER PROVIDING EVIDENCE THAT YOU HAVE OBTAINED INSURANCE AS
REQUIRED BY OUR AGREEMENT. IF WE PURCHASE INSURANCE FOR THE COLLATERAL,
YOU WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING THE
INSURANCE PREMIUM, INTEREST AND ANY OTHER CHARGES WE MAY IMPOSE IN
CONNECTION WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE
OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE. THE COSTS OF THE
INSURANCE MAY BE ADDED TO YOUR TOTAL OUTSTANDING BALANCE OR OBLIGATION.
THE COSTS OF THE INSURANCE MAY BE MORE THAN THE COST OF INSURANCE YOU MAY
BE ABLE TO OBTAIN ON YOUR OWN.

21.17. Statutory Notice — Oral Commitments. Nothing contained in the
following notice shall be deemed to limit or modify the terms of the Loan
Documents:

ORAL AGREEMENTS OR COMMITMENTS TO LOAN MONEY, EXTEND CREDIT OR TO FORBEAR
FROM ENFORCING REPAYMENT OF A DEBT INCLUDING PROMISES TO EXTEND OR RENEW
SUCH DEBT ARE NOT ENFORCEABLE. TO PROTECT YOU (BORROWER) AND US
(CREDITOR) FROM MISUNDERSTANDING OR DISAPPOINTMENT, ANY AGREEMENTS WE
REACH COVERING SUCH MATTERS ARE CONTAINED IN THIS WRITING, WHICH IS THE
COMPLETE AND EXCLUSIVE STATEMENT OF

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

THE AGREEMENT BETWEEN US, EXCEPT AS WE MAY LATER AGREE IN WRITING TO
MODIFY IT.

Borrower acknowledges that there are no other agreements between
Administrative Agent, Lenders, and Borrower, oral or written, concerning
the subject matter of the Loan Documents, and, except as expressly
described herein, that all prior agreements concerning the same subject
matter, including any proposal or commitment letter, are merged into the
Loan Documents and thereby extinguished.

[SIGNATURE PAGES FOLLOW]

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
by appropriate duly authorized officers as of the Execution Date.

TALX Corporation, a Missouri corporation

as Borrower

	 	 	 	 	 
	By:
	 	 /s/ L. Keith Graves	 	 
	

	 	
	 	 
	Name:
	 	 L. Keith Graves	 	 
	

	 	
	 	 
	Title:
	 	 CFO	 	 
	

	 	
	 	 

Notice Address for Borrower:

1850 Borman Court

St. Louis, Missouri 63146

Attention: William Canfield

With a copy to:

Bryan Cave LLP

One Metropolitan Square

Suite 3600

St. Louis, Missouri 63102

Attention: R. Randall Wang and Karen W. Fries

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
appropriate duly authorized officers as of the Execution Date.

LaSalle Bank National Association

as Administrative Agent and a Lender

	 	 	 	 	 
	By:
	 	/s/ Tom Harmon	 	 
	

	 	
	 	 
	Name:
	 	 Tom Harmon	 	 
	

	 	
	 	 
	Title:
	 	 RVP	 	 
	

	 	
	 	 

Notice Address :

LaSalle Bank National Association

135 S. LaSalle Street, Suite 1425

Chicago, IL 60603

Attention: Maria Coronado

With copies to:

One Metropolitan Square

211 N. Broadway, Suite 4050

St. Louis, Missouri 63102

Attention: Tom Harmon

And

Blackwell Sanders Peper Martin

720 Olive Street, Suite 2400

St. Louis, Missouri 63101

Attention: John P. McNearney

Applicable Lending Office :

LaSalle Bank National Association

135 S. LaSalle Street, Suite 1425

Chicago, IL 60603

Attention: Maria Coronado

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
appropriate duly authorized officers as of the Execution Date.

Southwest Bank of St. Louis, as a Lender

	 	 	 	 	 
	By:
	 	/s/ Robert E. Otto, Jr.	 	 
	

	 	
	 	 
	Name:
	 	Robert E. Otto, Jr.	 	 
	

	 	
	 	 
	Title:
	 	Vice President	 	 
	

	 	
	 	 

Notice Address and Applicable Lending Office :

Southwest Bank of St. Louis

2301 S. Kingshighway

St. Louis, MO 63110

Attn: Robert E. Otto

With a copy to:

Armstrong Teasdale LLP

One Metropolitan Square

211 N. Broadway, Suite 2600

St. Louis, Missouri 63102

Attention: John Sullivan

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
appropriate duly authorized officers as of the Execution Date.

National City Bank of Michigan/Illinois, as a Lender

	 	 	 	 	 
	By:
	 	/s/ Andrew J. Walshaw	 	 
	

	 	
	 	 
	Name:
	 	Andrew J. Walshaw	 	 
	

	 	
	 	 
	Title:
	 	Senior Vice President	 	 
	

	 	
	 	 

Notice Address and Applicable Lending Office :

	 
	10401 Clayton Drive

	St. Louis, MO 63131

	

	 	 	 	 	 
	Attention:
	 	 	 	 
	

	 	Andrew J. Walshaw
	 	 

With a copy to:

	 
	301 SW Adams St.

	Peoria, IL 61652

	

	 	 	 	 	 
	Attention:
	 	 	 	 
	

	 	Sharon Ziebold
	 	 

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
appropriate duly authorized officers as of the Execution Date.

Fifth Third Bank (Southern Indiana), as a Lender

	 	 	 	 	 
	By:
	 	/s/ Randall L. Braun	 	 
	

	 	
	 	 
	Name:
	 	Randall L. Braun	 	 
	

	 	
	 	 
	Title:
	 	SVP	 	 
	

	 	
	 	 

     Notice Address and Applicable Lending Office :

	 
	Fifth Third Bank

	8000 Maryland Ave., Suite 1400

	Clayton, MO 63105

	 	 	 	 	 
	Attention:
	 	 	 	 
	

	 	Shawn Hagan
	 	 

With a copy to:

	 
	Bamberger, Foreman, Oswald and Hahn, LLP

	20 NW Fourth Street 7th Floor Hulman Building

	Evansville, IN 47708

	 	 	 	 	 
	Attention:
	 	 	 	 
	

	 	Terry G. Farmer
	 	 

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by
appropriate duly authorized officers as of the Execution Date.

Merrill Lynch Business Financial Services Inc., as a Lender

	 	 	 	 	 
	By:
	 	/s/ Randall R. Meck	 	 
	

	 	
	 	 
	Name:
	 	Randall R. Meck	 	 
	

	 	
	 	 
	Title:
	 	Vice President	 	 
	

	 	
	 	 

Notice Address and Applicable Lending Office :

	 
	Merrill Lynch Business Financial Services, Inc.

	222 North La Salle Street, 17th Floor

	Chicago, IL 60601

	 	 	 	 	 
	Attention:
	 	 Randall Meck	 	 
	

	 	
	 	 

With a copy to:

	 
	Windels Mary Lane & Mittendorf

	120 Albany Street Plaza

	New Brunswick, NJ 08901

	 	 	 	 	 
	Attention:
	 	 Francis Quinn	 	 
	

	 	
	 	 

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CONFIDENTIAL TREATMENT REQUESTED BY

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ACKNOWLEDGEMENT AND CONSENT OF GUARANTORS

Each Guarantor (i) acknowledges the amendments to and restatement of the
Original Loan Agreement as set forth in this Agreement; (ii) consents to the
execution of this Agreement by the Borrower and (iii) acknowledges that this
consent is not required under the terms of its Guaranty and that the execution
hereof by the Guarantor shall not be construed to require the Lenders to obtain
its acknowledgment to any future amendment, modification or waiver of any term
of the Agreement except as otherwise provided in said Guaranty. Each Guarantor
hereby agrees that the Guaranty shall apply, without limitation, to all
indebtedness, obligations and liabilities of the Borrower under this Agreement
and that the Guaranty shall be and remain in full force and effect.

TALX UCM Services, Inc., as a Guarantor

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	/s/ L. Keith Graves
	 	 
	Name:
	 	 	 	 
	

	 	L. Keith Graves
	 	 
	Title:
	 	 	 	 
	

	 	CFO
	 	 

TALX FasTime Services, Inc., as a Guarantor

	 	 	 	 	 
	By:
	 	 	 	 
	

	 	/s/ L. Keith Graves
	 	 
	Name:
	 	 	 	 
	

	 	L. Keith Graves
	 	 
	Title:
	 	 	 	 
	

	 	CFO
	 	 

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CONFIDENTIAL TREATMENT REQUESTED BY

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GLOSSARY

Account — as to any Person, the right of such Person to payment for goods sold
or leased or for services rendered by such Person.

Account Debtor — the obligor on any Account.

Acquiring Company — the Person obligated to pay or provide the consideration
payable in connection with a Permitted Acquisition upon the consummation
thereof.

Acquisition Documents — in the case of the Current Acquisition, means the
Sheakley Acquisition Documents; in the case of the Approved Acquisitions, means
the Target One Acquisition Documents, Target Two Acquisition Documents, Target
Three Acquisition Documents and/or Target Four Investment Documents; and in the
case of any subsequent Permitted Acquisition, means the documents to which
Borrower or any other Covered Person is a party and under which such Permitted
Acquisition is contemplated.

Acquisition Documents Assignment – the assignment of the Acquisition Documents
that is executed and delivered to Administrative Agent for the benefit of
Lenders as provided herein.

Adjusted Base Rate — is defined in Section 4.3.

Adjusted Eurodollar Rate — is defined in Section 4.4.

Adjusted Federal Funds Rate — is defined in Section 4.5.

Administrative Agent — LaSalle in its capacity as Administrative Agent under
this Agreement, and its successors and assigns in such capacity.

Advance — a Term Loan A Advance, a Term Loan B Advance or a Revolving Loan
Advance.

Advance Date — the date on which an Advance is requested by Borrower to be
made, or is otherwise contemplated or intended to be made, as provided herein.

Affected Loan – is defined in Section 19.5

Affiliate — with respect to any Person, (a) any other Person who is a partner,
director, officer, stockholder, member, partner or other equity holder of such
Person; and (b) any other Person which, directly or indirectly, through one or
more intermediaries, is in control of, is controlled by or is under common
control with such Person, and any partner, director, officer or stockholder,
member, partner or other equity holder of such other Person described. For
purposes of this Agreement, control of a Person by another Person shall be
deemed to exist if such other Person has the power, directly or indirectly,
either to (i) vote twenty percent (20%) or more of the

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

securities, membership interests or other equity interest having the power to
vote in an election of directors or managers of such Person, or (ii) direct the
management of such Person, whether by contract or otherwise and whether alone
or in combination with others.

Agency Fee —  is specified in Section 5.6.

Agency Fee Letter —  means that certain fee letter dated March 4, 2004 between
the Borrower and the Agent, which is incorporated herein by reference.

Aggregate Commitment — either the Aggregate Revolving Loan Commitment, the
Aggregate Term Loan A Commitment or the Aggregate Term Loan B Commitment.

Aggregate Loan — either the Aggregate Revolving Loan, the Aggregate Term Loan
A or the Aggregate Term Loan B.

Aggregate Revolving Loan — the from time to time outstanding principal balance
of all Revolving Loan Advances.

Aggregate Revolving Loan Commitment — the aggregate commitments of Lenders as
stated in Section 3.1.1 to fund Revolving Loan Advances, as it may be changed as provided herein.

Aggregate Term Loan A — the from time to time outstanding principal amount of
the Term Loan A Advances.

Aggregate Term Loan B — the from time to time outstanding principal amount of
the Term Loan B Advances.

Aggregate Term Loan A Commitment — the aggregate commitments of Lenders as
stated in Section 3.2.1.1 to fund Term Loan A Advances, as it may be changed as
provided herein.

Aggregate Term Loan B Commitment — the aggregate commitments of Lenders as
stated in Section 3.2.1.2 to fund Term Loan B
Advances, as it may be changed as provided herein.

Applicable Lending Office — means, for Administrative Agent and each Lender
and for each Loan, the Applicable Lending Office of Administrative Agent or
such Lender (or of an Affiliate of such Lender) designated for such Loan on the
signature pages hereof or such other office of such Lender (or an Affiliate of
Administrative Agent or such Lender) as Administrative Agent or such Lender may
from time to time specify to Administrative Agent (in the case of another
Lender) and Borrower by written notice in accordance with the terms hereof as
the office by which its Loans are to be made and maintained.

Approved Acquisitions – means the Target One Acquisition, the Target Two
Acquisition, the Target Three Acquisition and the Target Four Investment.

Asbestos Material — either asbestos or asbestos-containing materials.

Assigned Collateral — any tangible or intangible property of Borrower, now
owned or hereafter acquired, other than the Personal Property Collateral in
which Lender holds or will hold

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CONFIDENTIAL TREATMENT
REQUESTED BY

TALX CORPORATION

a Security Interest under a Collateral Assignment to secure payment or
performance of any of the Loan Obligations as required or contemplated under
Section 8.3, and all proceeds thereof.

Base Rate — for any day, the rate per annum equal to the Prime Rate (as such
rate may fluctuate from time to time as provided for herein) for such day. Any
change in the Base Rate due to a change in the Prime Rate shall be effective on
the effective date of such change in the Prime Rate. The interest rate so
designated from time to time as the Base Rate by Administrative Agent is a
reference rate and does not necessarily represent the lowest or best rate
charged to any customer of Administrative Agent or any other Lender.

Base Rate Advance — an Advance that will become a Base Rate Loan.

Base Rate Margin– is specified in Section 4.5.

Base Rate Loan — any portion of a Loan on which interest accrues at the Base
Rate.

Beneficial Owner — as defined in Rule 13-D-3 of the Securities and Exchange
Commission.

Borrower — TALX Corporation, a Missouri corporation.

Borrowing Base — is defined in Section 3.1.4.

Borrowing Base Certificate — the certificate required to be delivered to
Lender as provided in Section 14.1.15.1.

Borrowing Officer — each officer of Borrower who is authorized to submit a
request for an Advance or the issuance of a Letter of Credit on behalf of
Borrower.

Business Day— a day other than a Saturday, Sunday or other day on which
commercial banks are authorized or required to close under the Laws of either
the United States or the State of Illinois and when used in connection with
Eurodollar Loans, also a day other than any day on which dealings in U.S.
Dollar deposits are not carried on in the London interbank market.

Capital Expenditure – an expenditure for an asset that must be depreciated or
amortized under GAAP, for goodwill, or for any asset that under GAAP must be
treated as a capital asset, including payments under Capital Leases excluding
expenditures for internally developed software. An expenditure for purposes of
this definition includes any deferred or seller financed portion of the
purchase price of an asset and includes the Capital Expenditure Equivalent of a
Capital Lease. The Capital Expenditure Equivalent of a Capital Lease is the
amount which would have been the aggregate cost of the property leased if it
had been purchased rather than leased. Capital Expenditures do not include the
amount expended in connection with any Permitted Acquisition or the Current
Acquisitions or the Approved Acquisitions.

Capital Lease — any lease that has been or should be capitalized under GAAP.

Charter Documents — the articles or certificate of incorporation and bylaws of
a corporation; the certificate of limited partnership and partnership agreement
of a limited partnership; the

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CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

partnership agreement of a general partnership; the articles of organization
and operating agreement of a limited liability company; or the indenture of a
trust.

Claims Act — the Assignment of Claims Act of 1940.

COBRA — the Consolidated Omnibus Budget Reconciliation Act.

CODE — the Internal Revenue Code of 1986 and all regulations thereunder of the
IRS.

Collateral — all of the Personal Property Collateral, the Assigned Collateral,
any other property in which Administrative Agent or a Lender has a Security
Interest to secure payment or performance of all or any of the Loan Obligations
and all proceeds and products thereof.

Collateral Assignment — any of the collateral assignments required or
contemplated under Section 8.3 to be executed
and delivered to Lender.

Commitment — either the Term Loan A Commitment, Term Loan B Commitment or
Revolving Loan Commitment of a Lender, or the Letter of Credit Commitment of
Letter of Credit Issuer.

Commitment Fee — the fee payable to Administrative Agent as required in
Section 5.1.

Commonly Controlled Entity — a Person which is under common control with
another Person within the meaning of Section 414(b) or (c) of the Code.

Compliance Certificate – defined in Section 14.14

Contract — any contract, note, bond, indenture, lease, deed, mortgage, deed of
trust, security agreement, pledge, hypothecation agreement, assignment, or
other agreement or undertaking, or any security.

Covered Person — defined in Section 2.3.

Current Acquisition — the transaction contemplated under the Sheakley
Acquisition Documents.

Default — any of the events listed in Section 17.1 of this Agreement, without
giving effect to any requirement for the
giving of notice, for the lapse of time, or both, or for the happening of any
other condition, event or act.

Default Rate — the rate of interest payable on each Loan after its Maturity
and in certain other circumstances as provided in Section 4.10.

Disclosure Schedule — the disclosure schedule of Borrower attached hereto as
Exhibit 12.

DOL — the United States Department of Labor.

Dollars and the sign $ — lawful money of the United States.

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CONFIDENTIAL TREATMENT REQUESTED BY

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Defaulting Lender – is defined in Section 7.5.

EBITDA – is defined in Section 16.1.

Effective Date — the date when this Agreement is effective as provided in
Section 3.1.5.

Eligible Accounts — is defined in Section 3.1.5.

Eligible Assignee — means (i) a Lender; (ii) an Affiliate of a Lender; and
(iii) any other Person approved by Administrative Agent; provided, however,
that neither Borrower, any Covered Person, any Guarantor nor an Affiliate of
Borrower or Guarantor shall qualify as an Eligible Assignee.

Eligible UC Business Accounts – the sum of all UC Business Accounts which are
outstanding on the last day of the immediately preceding three calendar months
divided by three.

Employment Law — ERISA, the Occupational Safety and Health Act, the Fair Labor
Standards Act, or any other Law pertaining to the terms or conditions of labor
or safety in the workplace or discrimination or sexual harassment in the
workplace.

Environmental Law — the Resource Conservation and Recovery Act, the
Comprehensive Environmental Response, Compensation and Liability Act, the Clean
Water Act, the Clean Air Act, or any other Law pertaining to environmental
quality or remediation of Hazardous Material.

Environmental Property Transfer Acts – any law pertaining to the provision of
notices or obtaining of environmental permit transfers or consents, required in
order to consummate the transfer of real or personal property or the
perfection of Security Interests.

EPA — the United States Environmental Protection Agency.

ERISA — the Employee Retirement Income Security Act of 1974.

ERISA Affiliate — as to any Person, any trade or business (irrespective of
whether incorporated) which is a member of a group of which such Person is a
member and thereafter treated as a single employer under 414(b), (c), (m) or
(o) of the Code or applicable Treasury Regulations.

Eurodollar Advance — an Advance that will become a Eurodollar Loan.

Eurodollar Margin— is defined in Section 4.5

Eurodollar Loan — any portion of an Aggregate Loan on which interest accrues
at the Adjusted Eurodollar Rate.

Eurodollar Rate — for the applicable Interest Period therefor, means a rate of
interest equal to (a) the per annum rate of interest at which United States
dollar deposits in an amount comparable to the amount of the relevant
Eurodollar Loan and for a period equal to the relevant Interest Period are
offered in the London Interbank Eurodollar market at 11:00 A.M. (London time) two

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CONFIDENTIAL TREATMENT REQUESTED BY

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(2) Business Days prior to the commencement of such Interest Period (or
three (3) Business Days prior to the commencement of such Interest Period if
banks in London, England were not open and dealing in offshore United States
dollars on such second preceding Business Day), as displayed in the Bloomberg
Financial Markets system (or other authoritative source selected by the
Administrative Agent in its sole discretion) or, if the Bloomberg Financial
Markets system or another authoritative source is not available, as the
Eurodollar Rate is otherwise determined by the Administrative Agent in its sole
and absolute discretion, divided by (b) a number determined by subtracting from
1.00 the then stated maximum reserve percentage for determining reserves to be
maintained by member banks of the Federal Reserve System for Eurocurrency
funding or liabilities as defined in Regulation D (or any successor category of
liabilities under Regulation D), such rate to remain fixed for such Interest
Period. Without limiting the effect of the foregoing, the reserve requirement
shall reflect any other reserves required to be maintained by any Lender with
respect to any category of liabilities which includes deposits by reference to
which the Eurodollar Rate is to be determined, or any category of extensions of
credit or other assets which include Eurodollar Loans. (The entire amount of a
Eurodollar Loan shall be deemed to constitute a Eurocurrency liability and as
such shall be deemed to be subject to such reserve requirements without benefit
of credits for proration, exceptions or setoffs which may be available from
time to time to any Lender under Regulation D.) The Eurodollar Rate shall be
adjusted automatically on and as of the effective date of any change in any
such reserve requirements. The Administrative Agent’s determination of the
Eurodollar Rate shall be conclusive, absent manifest error.

Event of Default — any of the events listed in Section 17.1
of this Agreement as to which any requirement for the giving of
notice, for the lapse of time, or both, or for the happening of any further
condition, event or act has been satisfied.

Execution Date — the date when this Agreement has been executed.

Existing Default — a Default which has occurred and is continuing, or an Event
of Default which has occurred, and which has not been waived in writing by the
Required Lenders, or all of the Lenders if required by Section 21.1.

Existing Loan Documents – means, collectively, the Guaranty dated March 27,
2002 executed by TALX UCM Services, Inc. (f/k/a James E. Frick, Inc.), a
Missouri corporation; the Guaranty dated March 27, 2002 executed by TALX
FasTime Services, Inc. (f/k/a Ti3, Inc.) a Texas corporation; the Security
Agreement dated March 27, 2002 executed by Borrower; the Security Agreement
dated March 27, 2002 executed by TALX UCM Services, Inc. (f/k/a James E. Frick,
Inc.), a Missouri corporation; the Security Agreement dated March 27, 2002
executed by TALX FasTime Services, Inc. (f/k/a Ti3, Inc.) a Texas corporation;
the Stock Pledge of Ti3 stock dated March 27, 2002 executed by Borrower; the
Stock Pledge of TALX UCM Services, Inc. stock dated March 26, 2003 executed by
Borrower; the Grant of Security Interest in Intellectual Property dated March
27, 2002 by Borrower; and the Grant of Security Interest in Intellectual
Property dated March 27, 2002 by TALX UCM Services, Inc. (f/k/a James E. Frick,
Inc.), a Missouri corporation.

Federal Funds Rate — for any day, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100 of 1%) equal to the weighted average of the
rates on overnight Federal funds

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CONFIDENTIAL TREATMENT REQUESTED BY

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transactions with members of the Federal
Reserve System arranged by Federal funds brokers on such day, as published by
the Federal Reserve Bank of New York on the Business Day next succeeding such
day; provided that (a) if such day is not a Business Day, the Federal Funds
Rate for such day shall be such rate on such transactions on the next preceding
Business Day as so published on the next succeeding Business Day, and (b) if no
such rate is so published on such next succeeding Business Day, the Federal
Funds Rate for such day shall be the average rate charged to Administrative
Agent (in its individual capacity) on such day on such transactions as
determined by Administrative Agent.

Financial Statements — the most recent of the Initial Financial Statements and
the financial statements of Borrower required to be furnished to Administrative
Agent under Section 14.14 of this Agreement.

Fixed Charges – is defined in Section 16.1.

FRB — the Board of Governors of the Federal Reserve System and any successor
thereto or to the functions thereof.

Fronting Fee — the fee payable to Letter of Credit Issuer as required in
Section 5.4.

GAAP — those generally accepted accounting principles set forth in Statements
of the Financial Accounting Standards Board and in Opinions of the Accounting
Principles Board of the American Institute of Certified Public Accountants or
which have other substantial authoritative support in the United States and are
applicable in the circumstances, as applied on a consistent basis.

Governmental Authority — the federal government of the United States; the
government of any foreign country that is recognized by the United States or is
a member of the United Nations; any state of the United States; any local
Government or municipality within the territory or under the jurisdiction of
any of the foregoing; any department, agency, division, or instrumentality of
any of the foregoing; and any court, arbitrator, or board of arbitrators whose
orders or judgements are enforceable by or within the territory of any of the
foregoing.

Group — as used in Regulation 13-D issued by the Securities and Exchange
Commission.

Guarantor — each of the Persons required under this Agreement to execute and
deliver to Administrative Agent for the benefit of Lenders a guaranty of part
or all of the Loan Obligations.

Guaranty — each guaranty of part or all of the Loan Obligations executed and
delivered to Administrative Agent for the benefit of Lenders by any Guarantor.

Hazardous Material — any hazardous, radioactive, toxic, solid or special
waste, material, substance or constituent thereof, or any other such substance
(as defined under any applicable Law or regulation), including Asbestos
Material. Hazardous Material does not include materials or products containing
hazardous constituents which are not considered to be waste under the
applicable Environmental Law or which are considered to be waste but are
transported,

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handled or disposed of in accordance with the applicable
Environmental Law, or Asbestos Material which is not friable.

Impositions – is defined in Section 19.6.1.

Indebtedness — as to any Person at any particular date, any contractual
obligation enforceable against such Person (i) to repay borrowed money; (ii) to
pay the deferred purchase price of property or services; (iii) to make payments
or reimbursements with respect to bank acceptances or to a factor; (iv) to make
payments or reimbursements with respect to letters of credit whether or not
there have been drawings thereunder; (v) with respect to which there is any
Security Interest in any property of such Person; (vi) to make any payment or
contribution to a Multi-Employer Plan; (vii) that is evidenced by a note, bond,
debenture or similar instrument; (viii) under any conditional sale agreement or
title retention agreement; or (ix) to pay interest or fees with respect to any
of the foregoing. Indebtedness also includes any other Obligation that either
(i) is non-contingent and liquidated in amount or (ii) should under GAAP be
included in liabilities and not just as a footnote on a balance sheet.

Indirect Obligation — as to any Person, (a) any guaranty by such Person of any
Obligation of another Person; (b) any Security Interest in any property of such
Person that secures any Obligation of another Person; (c) any enforceable
contractual requirement that such Person (i) purchase an Obligation of another
Person or any property that is security for such Obligation, (ii) advance or
contribute funds to another Person for the payment of an Obligation of such
other Person or to maintain the working capital, net worth or solvency of such
other Person as required in any documents evidencing an Obligation of such
other Person, (iii) purchase property, securities or services from another
Person for the purpose of assuring the beneficiary of any Obligation of such
other Person that such other Person has the ability to timely pay or discharge
such Obligation, (iv) grant a Security Interest in any property of such Person
to secure any Obligation of another Person, (v) otherwise assure or hold
harmless the beneficiary of any Obligation of another Person against loss in
respect thereof; (d) any Obligation arising from the endorsement by such Person
of an instrument; (e) any Obligation of such Person as a surety; and (f) any
other contractual requirement enforceable against such Person that has the same
substantive effect as any of the foregoing. The term Indirect Obligation does
not, however, include the endorsement by a Person of instruments for deposit or
collection in the ordinary course of business or the liability of a general
partner of a partnership for Obligations of such partnership. The amount of any
Indirect Obligation of a Person shall be deemed to be the stated or
determinable amount of the Obligation in respect of which such Indirect
Obligation is made or, if not stated or determinable, the maximum reasonably
anticipated liability in respect thereof as determined by such Person in good
faith.

Initial Financial Statements — the financial statements (not including the
proforma financial statements) of Borrower referred to in Section 10.1.2.

Initial Term Loan A Advance – is defined in Section 3.2.1.1.

Insurance/Condemnation Proceeds — insurance proceeds payable as a consequence
of damage to or destruction of any of the Collateral and proceeds payable as a
consequence of condemnation or sale in lieu of condemnation of any of the
Collateral.

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CONFIDENTIAL TREATMENT REQUESTED BY

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Intellectual Property — as to any Person, any domestic or foreign patents or
patent applications of such Person, any inventions made or owned by such Person
upon which either domestic or foreign patent applications have not yet been
filed, any domestic or foreign trade names or trademarks of such Person, any
domestic or foreign trademark registrations or applications filed by such
Person, any domestic or foreign service marks of such Person, any domestic or
foreign service mark registrations and applications by such Person, any
domestic or foreign copyrights of such Person, and any domestic or foreign
copyright registrations or applications by such Person.

Intellectual Property Assignment — each assignment of Intellectual Property
that Borrower executes and delivers to Administrative Agent for the benefit of
Lenders.

Interest Expense – is defined in Section 16.1.

Interest Hedge Obligation — any obligations of Borrower to Administrative
Agent or any Affiliate of Administrative Agent under an agreement or agreements
between Borrower and Administrative Agent or any Affiliate of Administrative
Agent under which the exposure of Borrower to fluctuations in interest rates is
effectively limited, whether in the form of one or more interest rate cap,
collar, or corridor agreements, interest rate swaps, or the like, or options
therefor.

Interest Period — the period during which a particular Adjusted Eurodollar
Rate applies to a Eurodollar Loan, as selected by Borrower as provided in
Section 4.8.

Inventory — goods owned and held by a Person for sale, lease or resale or
furnished or to be furnished under contracts for services, and raw materials,
goods in process, materials, component parts and supplies used or consumed, or
held for use or consumption in such Person’s business.

Investment — (a) a loan or advance of money or property to a Person, (b)
stock, membership interest, or other equity interest in a Person, (c) a debt
instrument issued by a Person, whether or
not convertible to stock, membership interest, or other equity interest in such
Person, or (d) any other interest in or rights with respect to a Person which
include, in whole or in part, a right to share, with or without conditions or
restrictions, some or all of the revenues or net income of such Person.

IRS — the Internal Revenue Service.

LaSalle – LaSalle Bank National Association.

Law — any statute, rule, regulation, order, judgment, award or decree of any
Governmental Authority.

Lender — any one of the lenders listed on Exhibit 3 to this Agreement,
including Administrative Agent in its capacity as a lender, or any Person who
takes an assignment from any of such lenders of all or a portion of its rights
and obligations as a lender under this Agreement pursuant to Section 20.4.1
and an Assignment and Acceptance as provided therein.

108

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

Lenders’ Exposure — the sum of the Aggregate Revolving Loan Commitment, the
Aggregate Term Loan A Commitment, the Aggregate Term Loan B Commitment and the
Letter of Credit Exposure.

Letter of Credit — any standby or commercial (documentary) letter of credit
issued by Letter of Credit Issuer pursuant to the Letter of Credit Commitment.

Letter of Credit Agreement – defined in Section 11.1.

Letter of Credit Commitment — the commitment of the Letter of Credit Issuer to
issue Letters of Credit as provided in Section 3.3.

Letter of Credit Exposure — the undrawn amount of all outstanding letters of
credit issued under the Letter of Credit Commitment plus all amounts drawn on
such letters of credit and not yet reimbursed by Borrower.

Letter of Credit Fee — the fee payable to Administrative Agent and Lenders as
required in Section 5.3.

Letter of Credit Issuer – LaSalle, or any other Lender succeeding to LaSalle’s
commitment to issue Letters of Credit pursuant to Section 3.3.

Loan — a Revolving Loan or a Term Loan.

Loan Agreement – this Agreement.

Loan Documents — this Agreement, the Notes, the Guaranties, the Security
Documents, any Rate Agreement, any reimbursement agreement between Borrower and
the Letter of Credit Issuer and all other agreements, certificates, documents,
instruments and other writings executed
from time to time in connection herewith or related hereto, and including,
without limitation, the Existing Loan Documents.

Loan Obligations — all of Borrower’s Indebtedness owing to Letter of Credit
Issuer, Administrative Agent or Lenders under the Loan Documents, whether as
principal, interest, fees or otherwise, including, without limitation, the
Borrower’s existing term loan Indebtedness under the Original Loan Agreement
refinanced pursuant to the terms of this Agreement and all interest thereon
accrued, all reimbursement obligations of Borrower to Letter of Credit Issuer
or Lenders with respect to the Letter of Credit Exposure, all Obligations to
Administrative Agent, and all other obligations and liabilities of Borrower to
Administrative Agent or Lenders under the Loan Documents and all Interest Hedge
Obligations (in each case including all extensions, renewals, modifications,
rearrangements, restructures, replacements and refinancings of the foregoing,
whether or not the same involve modifications to interest rates or other
payment terms), whether now existing or hereafter created, absolute or
contingent, direct or indirect, joint or several, secured or unsecured, due or
not due, contractual or tortious, liquidated or unliquidated, arising by
operation of law or otherwise, including but not limited to the obligation of
Borrower to repay future advances by Administrative Agent or Lenders hereunder,
whether or not made pursuant to

109

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

commitment and whether or not presently
contemplated by Borrower, Administrative Agent or Lenders in the Loan
Documents.

Local Time — the local time in the city in which Administrative Agent’s
address is located, as set forth on the signature page hereto (as changed from
time to time in accordance with the terms hereof).

Margin — the Base Rate Margin or Eurodollar Margin.

Material Adverse Effect — as to any Covered Person and with respect to any
event or occurrence of whatever nature (including any adverse determination in
any litigation, arbitration, investigation or proceeding), a material adverse
effect on (i) the business, operations, revenues, financial condition,
property, or business prospects of the Borrower specifically or of the
Subsidiaries taken as a whole, (ii) the value of the Collateral, (iii) the
validity or enforceability of the Loan Documents, (iv) the ability of such
Person to timely pay or perform such Covered Person’s Obligations generally,
(v) in the case of Borrower specifically, the ability of Borrower to pay or
perform any of Borrower’s Obligations to Lender, or (vi) in the case of a
Guarantor specifically, the ability of such Guarantor to pay or perform any of
its Obligations under the terms of its Guaranty.

Material Agreement — as to any Person, any Contract to which such Person is a
party or by which such Person is bound which, if violated or breached, has or
is reasonably likely to have a Material Adverse Effect on the Borrower
specifically or the Subsidiaries taken as a whole including without limitation
all Acquisition Documents.

Material Law — any separately enforceable provision of a Law whose violation
by a Person has or is reasonably likely to have a Material Adverse Effect on
the Borrower specifically or the Subsidiaries taken as a whole.

Material License — (i) as to any Covered Person, any license, permit or
consent from a Governmental Authority or other Person and any registration and
filing with a Governmental Authority or other Person which if not obtained,
held or made by such Covered Person has or is reasonably likely to have a
Material Adverse Effect on the Borrower specifically or the Subsidiaries taken
as a whole, and (ii) as to any Person who is a party to this Agreement or any
of the other Loan Documents, any license, permit or consent from a Governmental
Authority or other Person and any registration or filing with a Governmental
Authority or other Person that is necessary for the execution or performance by
such party, or the validity or enforceability against such party, of this
Agreement or such other Loan Document.

Material Obligation — as to any Person, an Obligation of such Person which if
not fully and timely paid or performed has or is reasonably likely to have a
Material Adverse Effect on the Borrower specifically or the Subsidiaries taken
as a whole.

Material Proceeding — any litigation, investigation or other proceeding by or
before any Governmental Authority (i) which involves any of the Loan Documents
or any of the transactions contemplated thereby, or involves a Covered Person
or a Guarantor as a party or any property of Covered Person or a Guarantor, and
has or is reasonably likely to have a Material

110

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

Adverse Effect on the Borrower
specifically or the Subsidiaries taken as a whole if adversely determined, (ii)
in which there has been issued an injunction, writ, temporary restraining order
or any other order of any nature which purports to restrain or enjoin the
making of any Advance, the consummation of any other transaction contemplated
by the Loan Documents, or the enforceability of any provision of any of the
Loan Documents, (iii) which involves the actual or alleged breach or violation
by a Covered Person of, or default by a Covered Person under, any Material
Agreement, or (iv) which involves the actual or alleged violation by a Covered
Person or any Guarantor of any Material Law.

Maturity — as to any Indebtedness, the time when it becomes payable in full,
whether at a regularly scheduled time, because of acceleration or otherwise.

Maximum Available Amount — the maximum Dollar amount available for Revolving
Loan Advances on any date as limited in Section 3.1.2, as it may be changed as provided herein.

Multi-Employer Plan — a Pension Benefit Plan which is a multi-employer plan as
defined in Section 4001(a)(3) of ERISA.

Note — any Revolving Note or Term Note.

Notice of Default – is specified in Section 18.4.

Obligation — as to any Person, any Indebtedness of such Person, any guaranty
by such Person of any Indebtedness of another Person, and any contractual
requirement enforceable against such Person that does not constitute
Indebtedness of such Person or a guaranty by such Person but which would
involve the expenditure of money by such Person if complied with or enforced.

Obligations to Administrative Agent — exclusive of all the Loan Obligations,
all of Borrower’s Indebtedness owing to Administrative Agent (whether as
principal, interest, fees or
otherwise), all obligations of Borrower under agreements between Borrower and
Administrative Agent under which the exposure of Borrower to fluctuations in
interest rates is effectively limited, whether in the form of interest rate
cap, collar or corridor agreements, interest rate swaps, or the like, or
options therefor, all Indirect Obligations of Borrower owing to Administrative
Agent, all reimbursement obligations of Borrower to Administrative Agent with
respect to letters of credit, and all other obligations and liabilities of
Borrower to Administrative Agent including all extensions, renewals,
modifications, rearrangements, restructures, replacements and refinancings of
the foregoing, whether or not the same involve modifications to interest rates
or other payment terms), whether now existing or hereafter created, absolute or
contingent, direct or indirect, joint or several, secured or unsecured, due or
not due, contractual or tortious, liquidated or unliquidated, arising by
operation of law or otherwise, or acquired by Administrative Agent outright,
conditionally or as collateral security from another, including the obligation
of Borrower to repay future advances by Administrative Agent, whether or not
made pursuant to commitment and whether or not presently contemplated by
Borrower and Administrative Agent.

Operating Lease — any lease that is not a Capital Lease.

111

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

Original Loan Agreement – is defined in the preamble to this Agreement.

PBGC — the Pension Benefit Guaranty Corporation.

Pension Benefit Plan — any pension or profit-sharing plan which is covered by
Title I of ERISA and all other benefit plans, in each case in respect of which
a Covered Person or a Commonly Controlled Entity of such Covered Person is an
employer as defined in Section 3(5) of ERISA.

Permitted Acquisitions — any acquisition by Borrower or a Covered Person of
stock, membership interests, or other equity interests of another Person or the
assets of another Person permitted under Section 15.7.

Permitted Distributions — any Distributions permitted under Section 15.10.

Permitted Indebtedness — Indebtedness that Borrower is permitted under Section
15.2 to incur, assume, or allow to exist.

Permitted Indirect Obligations — Indirect Obligations that Borrower is
permitted under Section 15.4 to create, incur,
assume, or allow to exist.

Permitted Investments — Investments that Borrower is permitted under Section
15.1 to make in other Persons.

Permitted Security Interests — Security Interests that Borrower is permitted
under Section 15.5 to create, incur, assume, or
allow to exist.

Person — any individual, partnership, corporation, trust, unincorporated
association, joint venture, limited liability company, Governmental Authority,
or other organization in any form
that has the legal capacity to sue or be sued. If the context so implies or
requires, the term Person includes Borrower.

Personal Property Collateral — all of the Goods, Equipment, Accounts,
Inventory, Instruments, Documents, Chattel Paper, General Intangibles and other
personal property of Borrower, whether now owned or hereafter acquired, and all
proceeds thereof, in which Administrative Agent at any time holds a Security
Interest for the benefit of Lenders.

Pledge Agreement — any pledge agreement required or contemplated under Section
8.3 to be executed and delivered to
Administrative Agent for the benefit of Lenders.

Prime Rate —on any day, the rate of interest per annum then most recently
established by Administrative Agent as its Prime Rate. Such rate is a general
reference rate of interest, may not be related to any other rate, and may not
be the lowest or best rate actually charged by Administrative Agent to any
customer or a favored rate and may not correspond with future increases or
decreases in interest rates charged by other lenders or market interest rates
in general.

112

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

Proforma Financial Statements — the proforma financial statements referred to
in Section 10.1.2.

Rate Agreement — (a) any and all agreements, devices or arrangements
(including all schedules, amendments and supplements thereto and all documents
and confirming evidence now or hereafter exchanged between the counterparties
confirming the transactions governed by such agreements devices or
arrangements) designed to protect at least one of the parties thereto from the
fluctuations of interest rates, exchange rates or forward rates applicable to
such party’s assets, liabilities or exchange transactions, including, but not
limited to, Dollar-denominated or cross-currency interest rate exchange
agreements, forward currency exchange agreements, interest rate cap or collar
protection agreements, forward rate currency or interest rate options, puts,
warrants and those commonly known as interest rate “swap” agreements; and (b)
any and all cancellations, buybacks, reversals, terminations or assignments of
any of the foregoing.

Regulation D, Regulation T, Regulation U and Regulation X — respectively,
Regulation D issued by the FRB, Regulation T issued by the FRB, Regulation U
issued by the FRB and Regulation X issued by the FRB.

Reportable Event — a reportable event as defined in Title IV of ERISA or the
regulations thereunder.

Representations and Warranties — The representations and warranties made by
any Covered Person with respect to itself and any other Covered Persons in
Section 12, and the representations and
warranties made in any other Loan Document or certificate, report or opinion
delivered by Borrower, any Guarantor, or any other Covered Person pursuant to
the Loan Documents, as such representations and warranties are modified from
time to time as provided in Section 13.

Repurchases – Borrower’s repurchase, from time to time, of its issued and
outstanding capital stock which was sold pursuant to transactions that are
registered under the Securities Act of 1933 or that are exempt therefrom.

Required Lenders — defined in Section 2.4.

Responsible Officer — as to any Person that is not an individual, partnership,
limited liability company or trust, the Chairman of the Board of Directors, the
President, the chief executive officer, the chief operating officer, the chief
financial officer, the Treasurer, any Assistant to the Treasurer, or any Vice
President in charge of a principal business unit; as to any partnership, any
individual who is a general partner thereof or any individual who has general
management or administrative authority over all or any principal unit of the
partnership’s business; as to any limited liability company, any managing
member, or manager, any individual who has general management or administrative
authority over all or any principal unit of the limited liability company’s
business; and as to any trust, any individual who is a trustee.

Revolving Loan — any Lender’s pro-rata share of the Aggregate Revolving Loan.

113

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

Revolving Loan Advance — an Advance by Administrative Agent that is to be
funded by Lenders under the Aggregate Revolving Loan Commitment.

Revolving Loan Commitment — the commitment of each Lender as stated in Section
3.1.1. to fund Revolving Loan Advances.

Revolving Loan Maturity Date — March 31, 2009, unless sooner accelerated in
accordance with the terms of this Agreement.

Revolving Loan Unused Fee – the fee described in Section 5.2.

Revolving Note — any note delivered to a Lender as required by Section 3.1.3
to evidence Borrower’s obligation to repay such
Lender’s Revolving Loan.

Second Term Loan A Advance – is defined in Section 3.2.1.1.

Security Agreement — any security agreement required or contemplated under
Section 8.2 to be executed and delivered to
Administrative Agent for the benefit of Lenders.

Security Documents — all of the documents required or contemplated to be
executed and delivered to Administrative Agent for the benefit of Lenders under
Section 8, all other documents granting a
Security Interest in any asset of Borrower or any other Person to secure the
payment or performance of any of the Loan Obligations from time to time,
including any such documents listed on Exhibit 10.1.1 and any similar documents
at any time executed and delivered to Administrative Agent for the benefit of
Lenders from time to time, by Borrower, any Covered Person, or any other Person
to secure payment or performance of any of the Loan Obligations.

Security Interest — as to any item of tangible or intangible property, any
interest therein or right with respect thereto that secures an Obligation or
Indirect Obligation, whether such interest or right is created under a
Contract, or by operation of law or statute (such as but not limited to a
statutory lien for work or materials), or as a result of a judgment, or which
arises under any form of preferential or title retention agreement or
arrangement (including a conditional sale agreement or a lease) that has
substantially the same economic effect as any of the foregoing.

Seller – any Person who is a party to the Current Acquisition, an Approved
Acquisition or any Permitted Acquisition other than Borrower or a Covered
Person.

Senior Indebtedness – is defined in Section 16.1.

Sheakley Acquisition — Borrower’s acquisition of certain assets, commonly
known as the unemployment claim management division and the employment
verification division, of Sheakley-Uniservice, Inc., an Ohio corporation and
all or substantially all of the assets, commonly known as the pre-employment
application screening division, of Sheakley Interactive Services, LLC, an Ohio
limited liability company pursuant to the Sheakley Acquisition Documents.

114

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

Sheakley Acquisition Documents — means the asset acquisition agreement by and
among Borrower, Sheakley-Uniservice, Inc., an Ohio corporation, Sheakley
Interactive Services, LLC, an Ohio limited liability company, and Larry
Sheakley, in the form as furnished and approved by the Administrative Agent
prior to the consummation of the Sheakely Acquisition, with only such
amendments, modifications or supplements thereto, or waivers of the terms
thereof, as shall be prior approved in writing by the Administrative Agent.

Solvent — as to any Person, such Person not being “insolvent” within the
meaning of Section 101(32) of the Bankruptcy Code, Section 2 of the Uniform
Fraudulent Transfer Act (the “UFTA”) or Section 3 of the Illinois Uniform
Fraudulent Transfer Act set forth in Section 160/3 of the Illinois Compiled
Statutes (1996) (the “Illinois UFTA”), (ii) such Person not having unreasonably
small capital, within the meaning of Section 548 of the Bankruptcy Code,
Section 4 of the UFTA, or Section 5 of the Illinois UFTA, and (iii) such Person
not being unable to pay such Person’s debts as they become due within the
meaning of Section 548 of the Bankruptcy Code, Section 4 of the UFTA, or
Section 5 of the Illinois UFTA.

Southwest – Southwest Bank of St. Louis

Subsidiary — as to any Person, another Person with respect to which more than
50% of the outstanding shares of stock or other equity interests of each class
having ordinary voting power (other than stock having such power only by reason
of the happening of a contingency) is at the time owned by such Person or by
one or more Subsidiaries of such Person.

Surviving Company – as applicable, either (i) the Person that will own the
assets to be acquired from a Target Company in an Approved Acquisition or a
Permitted Acquisition upon the consummation thereof, or (ii) the survivor of
the merger of an Acquiring Company with the Target Company in an Approved
Acquisition or a Permitted Acquisition upon the consummation thereof.

Target Company — the Person whose assets or stock, membership interests, or
other equity interests will be acquired in an Approved Acquisition or a
Permitted Acquisition upon the consummation thereof, or if applicable, with
which an Acquiring Company will merge in an Approved Acquisition or a Permitted
Acquisition upon the consummation thereof.

Target One –
means [       *       ].

Target One Acquisition — means Borrower’s acquisition of Target One pursuant
to the Target One Acquisition Documents.

Target One Acquisition Documents — means the acquisition agreement entered
into by Borrower in the form as furnished and approved by the Administrative
Agent in writing prior to the consummation of the Target One Acquisition, with
only such amendments, modifications or supplements thereto, or waivers of the
terms thereof, as shall be prior approved in writing by the Administrative
Agent.

Target Two – means [       *       ].

115

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

Target Two Acquisition — means Borrower’s acquisition of Target Two pursuant
to the Target Two Acquisition Documents.

Target Two Acquisition Documents — means the acquisition agreement entered
into by Borrower in the form as furnished and approved by the Administrative
Agent in writing prior to the consummation of the Target Two Acquisition, with
only such amendments, modifications or supplements thereto, or waivers of the
terms thereof, as shall be prior approved in writing by the Administrative
Agent.

Target Three – means [       *       ].

Target Three Acquisition — means Borrower’s acquisition of Target Three
pursuant to the Target Three Acquisition Documents.

Target Three Acquisition Documents — means the acquisition agreement entered
into by Borrower in the form in the form as furnished and approved by the
Administrative Agent in writing prior to the consummation of the Target Three
Acquisition, with only such amendments, modifications or supplements thereto,
or waivers of the terms thereof, as shall be prior approved in writing by the
Administrative Agent.

Target Four – means [       *       ].

Target Four Investment — means Borrower’s investment in Target Four pursuant
to the Target Four Investment Documents.

Target Four Investment Documents — means the investment agreement entered into
by Borrower in the form as furnished and approved by the Administrative Agent
in writing prior to the consummation of the Target Four Investment, with only
such amendments, modifications or supplements thereto, or waivers of the terms
thereof, as shall be prior approved in writing by the Administrative Agent.

Tax — as to any Person, any tax, duty, impost, deduction, charges,
withholdings, assessment, fee, or other charge levied by a Governmental
Authority (and all liabilities associated therewith) on the income or property
of such Person, including any interest or penalties thereon, and which is
payable by such Person.

Term Loan — any Lender’s pro-rata share of the Aggregate Term Loan A and
Aggregate Term Loan B.

Term Loan A — any Lender’s pro-rata share of the Aggregate Term Loan A.

Term Loan B — any Lender’s pro-rata share of the Aggregate Term Loan B.

Term Loan A Advance — an Advance that is to be funded by Lenders under the
Aggregate Term Loan A Commitment.

Term Loan B Advance — an Advance that is to be funded by Lenders under the
Aggregate Term Loan B Commitment.

116

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

Term Loan A Commitment — the commitment of each Lender as stated in Section
3.2 to fund a Term Loan A Advance.

Term Loan B Commitment — the commitment of each Lender as stated in Section
3.2 to fund a Term Loan B Advance.

Term Loan Maturity Date — March 31, 2009, unless sooner accelerated in
accordance with the terms of this Agreement.

Term Note — any Term Note A or Term Note B.

Term Note A — any note delivered to a Lender as required by 3.2.2
to evidence Borrower’s obligation to repay such Lender’s Term
Loan A.

Term Note B — any note delivered to a Lender as required by 3.2.2
to evidence Borrower’s obligation to repay such Lender’s Term
Loan B.

This Agreement — this document (including every document that is stated herein
to be an appendix, exhibit or schedule hereto, whether or not physically
attached to this document).

Total Indebtedness — is defined in Section 16.1.

Trailing Period — as set forth in Section 16.3.

UC Business – the unemployment claims business sold by Borrower under the name
UCeXpress or substantially similar business lines acquired by Borrower.

UC Business Accounts – the sum of all Accounts arising out of the UC Business,
but only to the extent such Accounts relate to services to be performed within
ninety (90) days of such date.

UCC — the Uniform Commercial Code as in effect from time to time in the State
of Illinois or such other similar statute as in effect from time to time in
Illinois or any other appropriate jurisdiction.

United States — when used in a geographical sense, all the states of the
United States of America and the District of Columbia; and when used in a legal
jurisdictional sense, the government of the country that is the United States
of America.

Wage and Hour Laws — the Davis-Bacon Act, the Service Contract Act, the
Contract Work Hours & Safety Standards Act and any other federal Law governing
wage compensation or hours of work.

Welfare Benefit Plan — any plan described by Section 3(1) of ERISA.

117

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

EXHIBIT 3

LENDERS, LENDERS’ COMMITMENTS AND PRO-RATA SHARES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	REVOLVING	 	 	 	 
	 	 	 	 	 	 	LOAN	 	TERM LOAN A	 	TERM LOAN B
	 LENDER
	 	TOTALS
	 	COMMITMENT
	 	COMMITMENT
	 	COMMITMENT

	LaSalle Bank
National
Association
	 	$	32,000,000.00	 	 	$	5,783,130.00	 	 	$	22,361,447.00	 	 	$	3,855,423.00	 
	Southwest Bank of
St. Louis
	 	$	22,000,000.00	 	 	$	3,975,904.00	 	 	$	15,373,494.00	 	 	$	2,650,602.00	 
	National City Bank
of
Michigan/Illinois
	 	$	13,000,000.00	 	 	$	2,349,398.00	 	 	$	9,084,337.00	 	 	$	1,566,265.00	 
	Fifth Third Bank
(Southern Indiana)
	 	$	8,000,000.00	 	 	$	1,445,784.00	 	 	$	5,590,361.00	 	 	$	963,855.00	 
	Merrill Lynch
Business Financial
Services Inc.
	 	$	8,000,000.00	 	 	$	1,445,784.00	 	 	$	5,590,361.00	 	 	$	963,855.00	 
	AGGREGATES
	 	$	83,000,000	 	 	$	15,000,000.00	 	 	$	58,000,000.00	 	 	$	10,000,000.00	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	PRO-RATA	 	 	 	 
	 	 	SHARE OF	 	PRO-RATA	 	PRO-RATA
	 	 	REVOLVING	 	SHARE OF	 	SHARE OF
	 	 	LOAN	 	TERM LOAN A	 	TERM LOAN B
	 LENDER
	 	COMMITMENT
	 	COMMITMENT
	 	COMMITMENT

	LaSalle Bank
National
Association
	 	 	38.554200000	%	 	 	38.554218966	%	 	 	38.554230000	%
	Southwest Bank of
St. Louis
	 	 	26.506026667	%	 	 	26.506024138	%	 	 	26.506020000	%
	National City Bank
of
Michigan/Illinois
	 	 	15.662653333	%	 	 	15.662650000	%	 	 	15.662650000	%
	Fifth Third Bank
(Southern Indiana)
	 	 	9.638560000	%	 	 	9.638553448	%	 	 	9.638550000	%
	Merrill Lynch
Business Financial
Services Inc.
	 	 	9.638560000	%	 	 	9.638553448	%	 	 	9.638550000	%

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

EXHIBIT 7.10-A

LOAN REQUEST CERTIFICATE

(Revolving Loan)

To: LaSalle Bank Nation Association

From: TALX Corporation (the “Company”)

     This Loan Request Certificate is delivered pursuant to the Amended and
Restated Loan Agreement (the “Loan Agreement”) dated March    , 2004 by and
among LaSalle Bank National Association, as a Lender and as Administrative
Agent (“Agent”), and the other lender parties thereto and TALX Corporation
(“Borrower”). All terms used herein shall have the meaning set forth in the
Loan Agreement.

     The undersigned hereby gives irrevocable notice of a request for a borrowing as
follows:

	 	 	 	 	 	 	 	 	 
	1.

	 	NEW LOAN REQUEST: The undersigned
hereby requests Lender to make and
disburse a Revolving Loan to Borrower
in the amount of:
	 	 	$	 	 	

	 
	 	 	 	 	 	 	 	 
	2.

	 	INTEREST RATE REQUESTED: The
undersigned hereby elects for interest
to accrue on the Revolving Loan
requested herein on the basis of
(Select One):
	 	 	(1

(2

(3

(4

(5	)

)

)

)

)	 	     Adjusted Base Rate
     One-month
Eurodollar
     Two-month
Eurodollar
     Three-month
Eurodollar
     Six-month
Eurodollar
	 
	 	 	 	 	 	 	 	 
	3.

	 	ADVANCE DATE REQUESTED:	 	 	 	 	 	

     The undersigned hereby represents, warrants, ratifies and confirms that,
on the date hereof and as of the date of the advance as set forth above, all
representations and warranties of Borrower contained in the Loan Agreement are
true and correct, that Borrower is in compliance with all covenants of Borrower
contained in the Loan Agreement, that no Event of Default under the Loan
Agreement has occurred and is continuing and no event that but for the passage
of time or the giving of notice would be an Event of Default under the Loan
Agreement has occurred and is continuing, that all information contained in
this Loan Request Certificate is true and correct and that the new loan request
amount set forth above does not exceed the Maximum Available Amount.

EXECUTED this ___day of ___,
200__.

	 	 	 	 	 
	 	 	TALX Corporation,
	 	 	a Missouri corporation
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

EXHIBIT 7.10-B

TERM LOAN REQUEST CERTIFICATE

(Term Loan A)

To: LaSalle Bank Nation Association

From: TALX Corporation (the “Company”)

     This Loan Request Certificate is delivered pursuant to the Amended and
Restated Loan Agreement (the “Loan Agreement”) dated March    , 2004 by and
among LaSalle Bank National Association, as a Lender and as Administrative
Agent (“Agent”), and the other lender parties thereto and TALX Corporation
(“Borrower”). All terms used herein shall have the meaning set forth in the
Loan Agreement.

     The undersigned hereby gives irrevocable notice of a request for a borrowing as follows:

	 	 	 	 	 	 	 
	1.

	 	TERM LOAN A COMMITMENT:
	 	$	58,000,000.00	 
	 
	 	 	 	 	 	 
	2.

	 	LESS TOTAL PRINCIPAL OUTSTANDING	 	 	 	 
	

	 	(not to exceed #1)
	 	$	
	 
	 
	 	 	 	 	 	 
	3.

	 	AVAILABILITY EXCESS/(DEFICIT) [= #1 — #2]
	 	$	
	 
	 
	 	 	 	 	 	 
	4.

	 	NEW LOAN REQUEST: The undersigned
hereby requests Lender to make and
disburse a Term Loan A Advance to
Borrower in the amount of:
	 	$	
	 
	 
	 	 	 	 	 	 
	5.

	 	INTEREST RATE REQUESTED: The
undersigned hereby elects for interest
to accrue on the Term Loan requested
herein on the basis of (Select One):
	 	(1)     

(2)     

(3)     

(4)     

(5)     	Adjusted Base Rate

One-month Eurodollar

Two-month Eurodollar

Three-month Eurodollar

Six-month Eurodollar
	 
	 	 	 	 	 	 
	6.

	 	ADVANCE DATE REQUESTED:	 	 	
	 

     The undersigned hereby represents, warrants, ratifies and confirms that,
on the date hereof and as of the date of the advance as set forth above, all
representations and warranties of Borrower contained in the Loan Agreement are
true and correct, that Borrower is in compliance with all covenants of Borrower
contained in the Loan Agreement, that no Event of Default under the Loan
Agreement has occurred and is continuing and no event that but for the passage
of time or the giving of notice would be an Event of Default under the Loan
Agreement has occurred and is continuing and that all information contained in
this Loan Request Certificate is true and correct.

EXECUTED this ___ day of __,
200__.

	 	 	 	 	 
	 	 	TALX Corporation,
	 	 	a Missouri corporation
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

EXHIBIT 7.10-C

TERM LOAN REQUEST CERTIFICATE

(Term Loan B)

To: LaSalle Bank Nation Association

From: TALX Corporation (the “Company”)

     This Loan Request Certificate is delivered pursuant to the Amended and
Restated Loan Agreement (the “Loan Agreement”) dated March    , 2004 by and
among LaSalle Bank National Association, as a Lender and as Administrative
Agent (“Agent”), and the other lender parties thereto and TALX Corporation
(“Borrower”). All terms used herein shall have the meaning set forth in the
Loan Agreement.

     The undersigned hereby gives irrevocable notice of a request for a borrowing as follows:

	 	 	 	 	 	 	 
	1.

	 	TERM LOAN B COMMITMENT:
	 	$	10,000,000.00	 
	 
	 	 	 	 	 	 
	2.

	 	LESS TOTAL PRINCIPAL OUTSTANDING	 	 	 	 
	

	 	(not to exceed #1)
	 	$	
	 
	 
	 	 	 	 	 	 
	3.

	 	AVAILABILITY EXCESS/(DEFICIT) [= #1 — #2]
	 	$	
	 
	 
	 	 	 	 	 	 
	4.

	 	NEW LOAN REQUEST: The undersigned
hereby requests Lender to make and
disburse a Term Loan B Advance to
Borrower in the amount of:
	 	$	
	 
	 
	 	 	 	 	 	 
	5.

	 	INTEREST RATE REQUESTED: The
undersigned hereby elects for interest
to accrue on the Term Loan requested
herein on the basis of (Select One):
	 	(1)     

(2)     

(3)     

(4)     

(5)     	Adjusted Base Rate

One-month Eurodollar

Two-month Eurodollar

Three-month Eurodollar

Six-month Eurodollar
	 
	 	 	 	 	 	 
	6.

	 	ADVANCE DATE REQUESTED:	 	 	
	 

     The undersigned hereby represents, warrants, ratifies and confirms that,
on the date hereof and as of the date of the advance as set forth above, all
representations and warranties of Borrower contained in the Loan Agreement are
true and correct, that Borrower is in compliance with all covenants of Borrower
contained in the Loan Agreement, that no Event of Default under the Loan
Agreement has occurred and is continuing and no event that but for the passage
of time or the giving of notice would be an Event of Default under the Loan
Agreement has occurred and is continuing and that all information contained in
this Loan Request Certificate is true and correct.

     EXECUTED
this ___day of __, 200__.

	 	 	 	 	 
	 	 	TALX Corporation,
	 	 	a Missouri corporation
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Name:	 	 
	

	 	 	 	

	

	 	Title:	 	 
	

	 	 	 	

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

EXHIBIT 10.1.1

DOCUMENTS AND REQUIREMENTS LIST

	1.	 	Amended and Restated Loan Agreement by and among Borrower, LBNA, SWB, NCB, FTB, MLBF, and
consented to by TUS and TFTS
	 
	2.	 	Term Note (Term Loan A) in the principal amount of $22,361,447.00 from Borrower to the
order of LBNA
	 
	3.	 	Term Note (Term Loan A) in the principal amount of $15,373,494.00 from Borrower to the
order of SWB
	 
	4.	 	Term Note (Term Loan A) in the principal amount of $9,084,337.00 from Borrower to the
order of NCB
	 
	5.	 	Term Note (Term Loan A) in the principal amount of $5,590,361.00 from Borrower to the
order of FTB
	 
	6.	 	Term Note (Term Loan A) in the principal amount of $5,590,361.00 from Borrower to the
order of MLBF
	 
	7.	 	Term Note (Term Loan B) in the principal amount of $3,855,423.00 from Borrower to the
order of LBNA
	 
	8.	 	Term Note (Term Loan B) in the principal amount of $2,650,602.00 from Borrower to the
order of SWB
	 
	9.	 	Term Note (Term Loan B) in the principal amount of $1,566,265.00 from Borrower to the
order of NCB
	 
	10.	 	Term Note (Term Loan B) in the principal amount of $963,855.00 from Borrower to the order
of FTB
	 
	11.	 	Term Note (Term Loan B) in the principal amount of $963,855.00 from Borrower to the order
of MLBF
	 
	12.	 	Revolving Note in the principal amount of $5,783,133.00 from Borrower to the order of LBNA
	 
	13.	 	Revolving Note in the principal amount of $3,975,904.00 from Borrower to the order of SWB
	 
	14.	 	Revolving Note in the principal amount of $2,349,398.00 from Borrower to the order of NCB
	 
	15.	 	Revolving Note in the principal amount of $1,445,784.00 from Borrower to the order of FTB
	 
	16.	 	Revolving Note in the principal amount of $1,445,784.00 from Borrower to the order of MLBF
	 
	17.	 	Security Agreement from TES in favor of LBNA (as Agent)
	 
	a.	 	Schedule A: Name, Jurisdictions, Tax ID Number
	 
	18.	 	Guaranty from TES in favor of LBNA (as Agent)
	 
	19.	 	Collateral Assignment of Membership Interest by Borrower in TES in favor of LBNA (as
Agent)
	 
	20.	 	Trademark and/or Patent Recordation Form Cover Sheet attaching the Grant of Security
Interest in Intellectual Property for Borrower
	 
	21.	 	Trademark and/or Patent Recordation Form Cover Sheet as to Borrower IP
	 
	a.	 	Grant of Security Interest in Intellectual Property for TUS

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	b.	 	Correction to name filing with USPTO Office (post closing item)
	 
	c.	 	Record Name Change at USPTO Office (post closing item)
	 
	22.	 	Trademark and/or Patent Recordation Form Cover Sheet as to TFTS IP
	 
	a.	 	Grant of Security Interest in Intellectual Property for TFTS
	 
	b.	 	Record Name Change at USPTO Office
	 
	23.	 	Assignment of Intellectual Property from Sheakley Interactive Services, LLC, an Ohio
limited liability company (“SIS”) to Borrower
	 
	a.	 	Confirmation of recording at USPTO (post closing item)
	 
	24.	 	Assignment of Intellectual Property from Sheakley-Uniservice, Inc., an Ohio corporation
(“SU”) to Borrower
	 
	a.	 	Confirmation of recording at USPTO (post closing item)
	 
	25.	 	Collateral Assignment of Leases from Borrower (post closing item)
	 
	26.	 	Collateral Assignment of Leases from TES (post closing item)
	 
	27.	 	Authorization to pay funds
	 
	28.	 	Secretary’s Certificate of Borrower, attesting to incumbency, signature specimen and
authenticity of (and attaching):
	 
	a.	 	Certified Copy of By-Laws
	 
	b.	 	Certified Articles of Incorporation
	 
	c.	 	Authorizing Resolution
	 
	d.	 	Good Standing Certificates
	 
	29.	 	Secretary’s Certificate of TUS, attesting to incumbency, signature specimen and
authenticity of (and attaching):
	 
	a.	 	Certified Copy of By-Laws
	 
	b.	 	Certified Copy of Articles of Incorporation
	 
	c.	 	TUS’s Authorizing Resolution
	 
	d.	 	TUS’s Good Standing Certificate
	 
	30.	 	Secretary’s Certificate of TFTS, attesting to incumbency, signature specimen and
authenticity of (and attaching):
	 
	a.	 	Certified Copy of By-Laws
	 
	b.	 	Certified Copy of Articles of Incorporation
	 
	c.	 	Authorizing Resolutions
	 
	d.	 	Good Standing Certificates
	 
	31.	 	Certificate of Name Change as to TFTS
	 
	32.	 	Certified Copy of Amendment to Articles of Incorporation regarding name change from TI3
to TFTS
	 
	33.	 	Secretary’s Certificate of TES, attesting to incumbency, signature specimen and
authenticity of (and attaching):

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	a.	 	Certified Copy of Articles of Formation
	 
	b.	 	Certified Copy of Operating Agreement
	 
	c.	 	Authorizing Resolutions
	 
	d.	 	Good Standing Certificates
	 
	34.	 	Opinion of Counsel for the Borrower, TUS, TFTS, TES attaching the following:
	 
	a.	 	Officer’s Certificate as to Factual Matters and other Matters pursuant to the Amended and
Restated Loan Agreement
	 
	35.	 	UCC, Judgment and Tax Lien Searches as to Borrower
	 
	a.	 	Missouri Secretary of State
	 
	b.	 	St. Louis County, Missouri
	 
	c.	 	City of St. Louis, Missouri
	 
	36.	 	United States Patent and Trademark Office Search as to Borrower
	 
	37.	 	UCC, Judgment and Tax Lien Searches as to TFTS
	 
	a.	 	Texas Secretary of State
	 
	b.	 	Collin County, Texas
	 
	c.	 	Dallas County, Texas
	 
	38.	 	United States Patent and Trademark Office Search as to TFTS
	 
	39.	 	United States Patent and Trademark Office Search as to TI3
	 
	40.	 	UCC-3 Amendment as to Name Change from TI3 to TFTS
	 
	41.	 	UCC, Judgment and Tax Lien Searches as to TUS
	 
	a.	 	Missouri Secretary of State
	 
	b.	 	St. Louis County, Missouri
	 
	c.	 	City of St. Louis, Missouri
	 
	42.	 	United States Patent and Trademark Office Search as to TUS
	 
	43.	 	United States Patent and Trademark Office Search as to James E. Frick, Inc.
	 
	44.	 	UCC Search as to TES
	 
	a.	 	Missouri Secretary of State
	 
	45.	 	United States Patent and Trademark Office search as to TES
	 
	46.	 	UCC-1 Financing Statement as to TES
	 
	47.	 	UCC, Judgment and Tax Lien Searches as to SIS
	 
	a.	 	Arizona Secretary of State
	 
	b.	 	California Secretary of State
	 
	c.	 	Pennsylvania Secretary of State
	 
	d.	 	Ohio Secretary of State
	 
	e.	 	Franklin County, Ohio
	 
	f.	 	Fairfield County, Ohio
	 
	g.	 	Hamilton County, Ohio

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	h.	 	Cuyahoga County, Ohio
	 
	i.	 	Maricopa County, Arizona
	 
	j.	 	Sacramento County, California
	 
	k.	 	Columbiana County, Ohio
	 
	l.	 	Dauphin County, Pennsylvania (post closing item)
	 
	48.	 	United States Patent and Trademark Office Search as to SIS
	 
	49.	 	UCC, Judgment and Tax Lien Searches as to SU
	 
	a.	 	Arizona Secretary of State
	 
	b.	 	California Secretary of State
	 
	c.	 	Pennsylvania Secretary of State (post closing item)
	 
	d.	 	Ohio Secretary of State
	 
	e.	 	Franklin County, Ohio
	 
	f.	 	Fairfield County, Ohio
	 
	g.	 	Hamilton County, Ohio
	 
	h.	 	Cuyahoga County, Ohio
	 
	f.	 	Maricopa County, Arizona
	 
	j.	 	Sacramento County, California
	 
	k.	 	Dauphin County, Pennsylvania (post closing item)
	 
	l.	 	Columbiana County, Ohio
	 
	50.	 	United States Patent and Trademark Office Search as to SU
	 
	51.	 	Copy of Acquisition Agreement of SIS and SU, and all exhibits and schedules thereto
	 
	52.	 	Landlord’s Estoppel, Consent and Waiver for Leases by TALX and Assumed by TES for the
following locations: (post closing item)
	 
	a.	 	Cleveland, Ohio (post closing item)
	 
	b.	 	Columbus, OH (post closing item)
	 
	c.	 	Borman Court, St. Louis, MO (post closing item)
	 
	d.	 	Woodfield Lane, St. Louis, MO (post closing item)
	 
	53.	 	Copies of Leases for the following locations: (post closing item)
	 
	a.	 	Cleveland, Ohio (post closing item)
	 
	b.	 	Columbus, OH (post closing item)
	 
	c.	 	Borman Court, St. Louis, MO (post closing item)
	 
	d.	 	Woodfield Lane, St. Louis, MO (post closing item)
	 
	54.	 	Partial Releases of Lien letter agreement from PNC
	 
	55.	 	Terminations or partial releases of UCC-1 filings from PNC as to assets covered by Asset
Purchase Agreement (post closing item)
	 
	56.	 	Fees payable to LBNA as Administrative Agent according to the Agency Fee Letter
	 
	57.	 	Commitment Fees to the order of LBNA on behalf of the other Lenders

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	58.	 	Term Loan Request Certificate from Borrower’s responsible officer, pursuant to the
Amended and Restated Loan Agreement
	 
	59.	 	Letter Agreement from Borrower regarding post closing deliverables

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

EXHIBIT 11.1

MASTER LETTER OF CREDIT AGREEMENT

[forms of application for standby

and commercial (documentary) letters of credit]

THIS PAGE LEFT BLANK INTENTIONALLY TO

MAINTAIN FORMATTING OF

MASTER LETTER CREDIT AGREEMENT

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

MASTER LETTER OF CREDIT AGREEMENT

Dated as of       

THIS MASTER LETTER OF CREDIT AGREEMENT (this “Agreement”) is issued by the
undersigned applicant (the “Applicant”) in favor of LaSalle Bank National
Association (together with its affiliates as set forth in Section II .8, the
“Bank”).

The Applicant may from time to time request that the Bank issue letters of
credit for the account of the Applicant. The Applicant agrees that, except as
provided below, any such letter of credit shall be subject to the terms and
provisions of this Agreement, and the Applicant further agrees with and for the
benefit of the Bank as follows:

SECTION 1 CERTAIN DEFINITIONS. When used herein the following terms shall have
the following meanings (such definitions to be applicable to both the singular
and plural forms of such terms):

Application means, at any time, an application (which shall be in writing,
including by facsimile, or made by electronic transmission) for a letter of
credit to be issued by the Bank, specifying (a) the requested issuance date,
the amount, the beneficiary and the expiration date of such letter of credit,
(b) the documentary requirements for drawing thereunder and (c) such other
information as the Bank may reasonably request.

Business Day means any day on which the Bank is open for commercial banking
business at its principal office in Chicago, Illinois.

Event of Default means any of the events described in Section 9.1.

Item means any draft, order, instrument, demand or other document drawn or
presented, or to be drawn or presented, under any Letter of Credit.

ISP means at any time the most recent International Standby Practices issued by
the Institute for International Banking Law & Practice, Inc.

Letter of Credit means any letter of credit issued (including any letter of
credit issued prior to the date hereof) by the Bank for the account of the
Applicant (including any letter of credit issued jointly for the account of the
Applicant and any other Person), in each case as amended or otherwise modified
from time to time but excluding any letter of credit that is issued pursuant to
an Application which expressly provides that such letter of credit is not
issued pursuant to this Agreement. A letter of credit issued by the Bank
pursuant to an Application from the Applicant (either individually or together
with any other Person) shall be a Letter of Credit hereunder even if another
Person is named as the “Applicant” or “Account Party” in such letter of credit.

Liabilities means all obligations of the Applicant to the Bank and its
successors and assigns, howsoever created, arising or evidenced, whether direct
or indirect, absolute or contingent, now or hereafter existing or due or to
become due, arising Out of or in connection with this Agreement, any Letter of
Credit, any Application or any instrument or document delivered in connection
herewith or therewith.

Person means any natural person, corporation, partnership, trust, limited
liability company, association, governmental authority or unit, or any other
entity, whether acting in an individual, fiduciary or other capacity.

Prime Rate means the rate per annum established by the Bank from time to time
as its “Prime Rate” for commercial customers. The Prime Rate is a reference
rate and does not necessarily represent the lowest or best rate actually
charged to any customer.

UCC means at any time the Uniform Commercial Code as in effect in the State of
Illinois.

UCP means at any time the most recent Uniform Customs and Practice for
Documentary Credits issued by the International Chamber of Commerce.

Unmatured Event of Default means any event which if it continues uncured will,
with lapse of time or notice or both, constitute an Event of Default.

SECTION 2 LETTER OF CREDIT PROCEDURES.

2.1 Issuance of Letters of Credit. Subject to the terms and conditions of this
Agreement, the Bank may from time to time, in its sole and complete discretion,
issue Letters of Credit for the account of the Applicant; provided that the
terms and provisions of each Letter of Credit and the Application therefor
shall be satisfactory to the Bank in its discretion.

2.2 Applications. Not later than three Business Days prior to the date of the
proposed issuance of a Letter of Credit (Or such later date as the Bank shall
agree), the Applicant shall deliver an Application for such Letter of Credit to
the Bank. An Application may be sent by facsimile, by United States mail, by
overnight courier, by electronic transmission using the system provided by the
Bank, by personal delivery or by any other means acceptable to the Bank.

2.3 Form of Letters of Credit. (a) The Applicant authorizes the Bank to set
forth the terms of each Application in the Letter of Credit corresponding to
such Application (and in any amendment thereto) in such language as the Bank
deems appropriate, with such variations from such terms as the Bank may in its
discretion determine to be necessary (which determination shall be conclusive)
and not materially inconsistent with such Application. The Bank may, but shall
not be obligated to, request the Applicant to review the form of a Letter of
Credit prior to issuance thereof, in which case the Applicant shall be deemed
to have approved the form of such Letter of Credit. With respect to any other
Letter of Credit, the Applicant agrees that such Letter of Credit shall be
conclusively presumed to be in proper form unless the Applicant notifies the
Bank in writing of any inconsistency in such Letter of Credit within three
Business Days of its issuance. Upon receipt of timely notice of any discrepancy
in any Letter of Credit, the Bank will endeavor to obtain the consent of the
beneficiary and any confirming bank for an appropriate modification to such
Letter of Credit; provided that the Bank shall have no liability or
responsibility for its failure to obtain such consent.

	(a)	 	The Applicant accepts the risk that a Letter of Credit will be
interpreted or applied other than as intended by the Applicant to the
extent such Letter of Credit (i) permits presentation at a place other
than the place of issuance, (ii) permits application of laws or practice
rules with which the Applicant is unfamiliar, (iii) includes ambiguous,
inconsistent or impossible requirements, (iv) requires termination or
reduction against a presentation made by the Applicant rather than the
beneficiary or (v) fails to incorporate appropriate letter of credit
practices rules.

2.4 Representations and Warranties. The delivery of each Application shall
automatically constitute a representation and warranty by the Applicant to the
Bank to the effect that on the requested date of issuance of such Letter of
Credit, (a) the representations and warranties of the Applicant set forth in
Section 4 shall be true and correct as of such requested date as though made on
the date thereof and (b) no Event of Default or Unmatured Event of Default
shall have then occurred and be continuing or will result from such issuance.

SECTION 3 REIMBURSEMENT OBLIGATIONS; RESPONSIBILITIES, ETC.

3.1 Reimbursement Obligations. The Applicant hereby agrees to reimburse the
Bank forthwith upon demand in an amount equal to any payment or disbursement
made by the Bank under any Letter of Credit or any time draft issued pursuant
thereto, together with interest on the amount so paid or disbursed by the Bank
from and including the date of payment or disbursement to but not including the
date the Bank is reimbursed by the Applicant at a rate per annum equal to the
Prime Rate from time to time in effect plus 2% (or, if less, the maximum rate
permitted by applicable law). The obligation of the Applicant to reimburse the
Bank under this Section 3 for payments and disbursements made by the Bank under
any Letter of Credit or any time draft issued pursuant thereto shall be
absolute and unconditional under any and all circumstances, including, without
limitation, the following:

	(a)	 	any failure of any Item presented under such Letter of Credit to strictly
comply with the terms of such Letter of Credit;
	 
	(b)	 	the legality, validity, regularity or enforceability of such Letter of
Credit or of any Item presented thereunder;

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	(c)	 	any defense based on the identity of the transferee of such Letter of
Credit or the sufficiency of the transfer if such Letter of Credit is
transferable;
	 
	(d)	 	the existence of any claim, set-oft defense or other right that the
Applicant may have at any time against any beneficiary or transferee of
such Letter of Credit, the Bank or any other Person, whether in connection
with this Agreement, the transactions contemplated hereby or any unrelated
transaction;
	 
	(e)	 	any Item presented under such Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement
therein being untrue or inaccurate in any respect;
	 
	(f)	 	honor of a demand for payment presented electronically even if such
Letter of Credit requires that demand be in the form of a draft;
	 
	(g)	 	waiver by the Bank of any requirement that exists for the Bank’s
protection and not the protection of the Applicant or any waiver by the
Bank which does not in fact materially prejudice the Applicant;
	 
	(h)	 	any payment made by the Bank in respect of an Item presented after the
date specified as the expiration date of, or the date by which documents
must be received under, such Letter of Credit if payment after such date
is authorized by the ISP, the UCC or the UCP, as applicable; or
	 
	(i)	 	any other circumstance or happening whatsoever, whether or not similar to
any of the foregoing;

provided that the Applicant shall not be obligated to reimburse the Bank for
any wrongful payment or disbursement made by the Bank under any Letter of
Credit as a result of any act or omission constituting gross negligence or
willful misconduct on the part of the Bank.

3.2 Discrepancies. (a) The Applicant agrees that it will promptly examine any
and all instruments and documents delivered to it from time to time in
connection with any Letter of Credit, and if the Applicant has any claim of
non-compliance with its instructions or of discrepancies or other irregularity,
the Applicant will immediately (and, in any event, within three Business Days)
notify the Bank thereof in writing, and the Applicant shall be deemed to have
waived any claim against the Bank unless such notice is given within such time
period. Without limiting the foregoing, if the Bank makes any payment or
disbursement under a Letter of Credit and the Applicant does not send a notice
to the Bank within three Business Days objecting to such payment or
disbursement and specifying in reasonable detail the discrepancy or
irregularity which is the basis for such objection, then the Applicant shall be
precluded from making any objection to the Bank’s honor of the presentation
with respect to which such payment or disbursement was made (but shall not be
precluded from asserting any objection to any different presentation under the
same or a different Letter of Credit).

	(a)	 	The Applicant’s acceptance or retention of any documents presented under
or in connection with a Letter of Credit (including originals or copies of
documents sent directly to the Applicant) or of any property for which
payment is supported by a Letter of Credit shall ratify the Bank’s honor
of the documents and absolutely preclude the Applicant from raising a
defense or claim with respect to the Bank’s honor of the relevant
presentation.

3.3 Documents. Unless specified to the contrary in the relevant Application,
the Applicant agrees that the Bank and its correspondents: (a) may accept as
complying with the applicable Letter of Credit any Item drawn, issued or
presented under such Letter of Credit which is issued or purportedly issued by
an agent, executor, trustee in bankruptcy, receiver or other representative of
the party identified in such Letter of Credit as the party permitted to draw,
issue or present such Item; and (b) may in its or their discretion, but shall
not be obligated to, accept or honor (i) any Item which substantially complies
with the terms of the applicable Letter of Credit; (ii) any Item which
substantially complies under the laws, rules, regulations and general banking
or trade customs and usages of the place of presentation, negotiation or
payment; (iii) drafts which fail to bear any or adequate reference to the
applicable Letter of Credit; (iv) any Item presented to the Bank after the
stated expiration date of a Letter of Credit but within any applicable time
period during which such Letter of Credit may be honored in accordance with the
UCP, the UCC and/or the ISP, as applicable (and, in any event, any Item
presented to the Bank on the Business Day immediately following the stated
expiration date of any Letter of Credit, if such stated expiration date falls
on a day which is not a Business Day); or (v) any Item which substantially
complies with the requirements of the UCP, the UCC and/or the ISP, as
applicable. In determining whether to pay under any Letter of Credit, the Bank
shall have no obligation to the Applicant or any other Person except to confirm
that the Items required to be delivered under such Letter of Credit appear to
have been delivered and appear on their face to substantially comply with the
requirements of such Letter of Credit. For purposes of the foregoing, an Item
“substantially complies” unless there are discrepancies in the presentation
which appear to be substantial and which reflect corresponding defects in the
beneficiary’s performance in the underlying transaction. A discrepancy is not
substantial if it is unrelated or immaterial to the nature or amount of the
Applicant’s loss. For example, documents honored by the Bank that do not comply
with the timing requirements of the Letter of Credit for presenting or dating
any required beneficiary statement nonetheless substantially comply if those
timing requirements are not material in determining whether the underlying
agreement has been substantially performed or violated.

3.4 Exculpation. In addition to the exculpatory provisions contained in the
UCP, the UCC and/or the ISP, as applicable, the Bank and its correspondents
shall not be responsible for, and the Applicant’s obligation to reimburse the
Bank shall not be affected by, (a) compliance with any law, custom or
regulation in effect in the country of issuance, presentation, negotiation or
payment of any Letter of Credit, (b) any refusal by the Bank to honor any Item
because of an applicable law, regulation or ruling of any governmental agency,
whether now or hereafter in effect, (c) any action or inaction required or
permitted under the UCC, the UCP, the ISP or the United Nations Convention on
Independent Guarantees and Standby Letters of Credit, in each case as
applicable, or (d) any act or the failure to act of any agent or correspondent
of the Bank, including, without limitation, failure of any such agent or
correspondent to pay any Item because of any law, decree, regulation, ruling or
interpretation of any governmental agency.

3.5 Risks. The Applicant assumes all risks of the acts or omissions of any
beneficiary or transferee of any Letter of Credit (it being understood that
such assumption is not intended to, and shall not, preclude the Applicant from
pursuing any right or remedy it may have against any such beneficiary or
transferee). The Applicant further agrees that any action or omission by the
Bank under or in connection with any Letter of Credit or any related Item,
document or property shall, unless in breach of good faith, be binding on the
Applicant and shall not put the Bank under any resulting liability to the
Applicant. Without limiting the foregoing, the Applicant agrees that in no
event shall the Bank be liable for incidental, consequential, punitive,
exemplary or special damages.

3.6 Limitation on Bank’s Obligations. Without limiting any other provision
herein, the Bank is expressly authorized and directed to honor any request for
payment which is made under and in compliance with the terms of any Letter of
Credit without regard to, and without any duty on the part of the Bank to
inquire into, the existence of any dispute or controversy between any of the
Applicant, the beneficiary of any Letter of Credit or any other Person, or the
respective rights, duties or liabilities of any of them, or whether any facts
represented in any Item presented under a Letter of Credit are true or correct.
Furthermore, the Applicant agrees that the Bank’s obligation to the Applicant
shall be limited to honoring requests for payment made under and in compliance
with the terms of any Letter of Credit, and the Bank’s obligation remains so
limited even if the Bank may have prepared or assisted in the preparation of
the wording of any Letter of Credit or any Item required to be presented
thereunder or the Bank may otherwise be aware of the underlying transaction
giving rise to any Letter of Credit.

3.7 Automatic Renewal of Letters of Credit. If any Letter of Credit contains
any provision for automatic renewal, the Applicant acknowledges and agrees that
the Bank is under no obligation to allow such renewal to occur and any such
renewal shall remain within the sole and absolute discretion of the Bank. The
Applicant irrevocably consents to the automatic renewal of each such Letter of
Credit in accordance with its terms if the Bank allows such renewal to occur;
provided that the Applicant shall have the right to request the Bank to
disallow any such renewal on the condition that the Applicant shall give the
Bank prior written notice of such request not less than 30 days prior to the
deadline imposed upon the Bank for notification to the beneficiary of
non-renewal of any such Letter of Credit.

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

SECTION 4 REPRESENTATIONS AND WARRANTIES. The Applicant represents and warrants
to the Bank that:

	(a)	 	Organization. etc. The Applicant is duly organized or formed, validly
existing and (to the extent applicable under the laws of the relevant
jurisdiction) in good standing under the laws of the jurisdiction of its
organization or formation, and the Applicant is duly qualified and in good
standing as a foreign entity authorized to do business in each other
jurisdiction where, because of the nature of its activities or properties,
such qualification is required.
	 
	(b)	 	Authorization: No Conflict. The execution and delivery by the Applicant
of this Agreement and each Application, the issuance of Letters of Credit
for the account of the Applicant hereunder and the performance by the
Applicant of its obligations under this Agreement and the Applications are
within the organizational powers of the Applicant, have been duly
authorized by all necessary organizational action, have received all
necessary governmental approval (if any shall be required), and do not and
will not contravene or conflict with, or result in or require the
imposition of any lien or security interest under, any provision of law or
of the charter or by-laws of the Applicant or of any indenture, loan
agreement or other contract, or any judgment, order or decree, which is
binding upon the Applicant.
	 
	(c)	 	Validity and Binding Nature. This Agreement is, and upon delivery to the
Bank each Application will be, the legal, valid and binding obligation of
the Applicant, enforceable against the Applicant in accordance with its
terms, subject to bankruptcy, insolvency and similar laws of general
application affecting the rights of creditors and to general principles of
equity.
	 
	(d)	 	Approvals. No authorization, approval or consent of, or notice to or
filing with, any governmental or regulatory authority is required to be
made in connection with the execution and delivery by the Applicant of
this Agreement or the issuance of any Letter of Credit for the account of
the Applicant pursuant hereto,
	 
	(e)	 	Year 2000 Problem. The Applicant and its subsidiaries (i) have reviewed
the areas within their business and operations which could be adversely
affected by, and have developed or are developing a program to address on
a timely basis, the “Year 2000 Problem” (that is, the risk that computer
applications and embedded microchips in non-computing devises may be
unable to recognize and perform properly date-sensitive functions
involving certain dates prior to and any date after December 31, 1999) and
(ii) have made appropriate inquiries as to the effect the Year 2000
Problem will have on their material suppliers and customers. Based on such
review, program and inquiries, the Applicant reasonably believes that the
Year 2000 Problem will not have a material adverse effect on the business,
operations, condition (financial or otherwise), assets or prospects of the
Applicant and its subsidiaries taken as a whole.

SECTION 5 FEES. The Applicant agrees to pay the Bank all reasonable fees of the
Bank (at the rates specified by the Bank from time to time in schedules
delivered by the Bank to the Applicant) with respect to each Letter of Credit
(including, without limitation, all fees associated with any amendment to,
drawing under, banker’s acceptance pursuant to, or transfer of a Letter of
Credit), such fees to be payable on demand by the Bank therefor.

SECTION 6 COMPUTATION OF INTEREST AND FEES. All interest and fees hereunder
shall be computed for the actual number of days elapsed on the basis of a year
of 360 days. The interest rate applicable to Letter of Credit reimbursement
obligations shall change simultaneously with each change in the Prime Rate.

SECTION 7 MAKING OF PAYMENTS. (a) All payments of principal of, or interest on,
letter of credit reimbursement obligations, all payments of fees and all other
payments hereunder shall be made by the Applicant in immediately available
funds to the Bank at its principal office in Chicago not later than 12:30 P.M.,
Chicago time, on the date due, and funds received after that time shall be
deemed to have been received by the Bank on the next Business Day. If any
payment of principal, interest or fees falls due on a Saturday, Sunday or other
day which is not a Business Day, then such due date shall be extended to the
next Business Day, and additional interest shall accrue and be payable for the
period of such extension.

	(b)	 	The Applicant irrevocably agrees that the Bank or any affiliate thereof
may (but neither the Bank nor any such affiliate shall be obligated to)
debit any deposit account of the Applicant in an amount sufficient to pay
any fee, reimbursement obligation or other amount that is due and payable
hereunder. The Bank or the applicable affiliate shall promptly notify the
Applicant of any such debit (but failure of the Bank or any such affiliate
to do so shall not impair the effectiveness thereof or impose any
liability on the Bank or such affiliate).
	 
	(c)	 	The Applicant shall reimburse the Bank for each payment under a Letter of
Credit in the same currency in which such payment was made; provided that,
if the Bank so requests (in its discretion), the Applicant shall reimburse
the Bank in United States dollars for any payment under a Letter of Credit
made in a foreign currency at the rate at which the Bank could sell such
foreign currency in exchange for United States dollars for transfer to the
place of payment of such payment or, if there is no such rate, the United
States dollar equivalent of the Bank’s actual cost of settlement. The
Applicant agrees to pay the Bank on demand in United States dollars such
amounts as the Bank may be required to expend to comply with any and all
governmental exchange regulations now or hereafter applicable to the
purchase of foreign currency.
	 
	(d)	 	All payments by the Applicant hereunder shall be made free and clear of
and without deduction for any present or future income, excise or stamp
taxes and any other taxes, fees, duties, withholdings or other charges of
any nature whatsoever imposed by any taxing authority, but excluding
franchise taxes and taxes imposed on or measured by the Bank’s net income
or receipts (such non-excluded items being called “Taxes”). If any
withholding or deduction from any payment to be made by the Bank hereunder
is required in respect of any Taxes pursuant to any applicable law, rule
or regulation, then the Applicant will

	 		 	(i) pay directly to the relevant authority the full amount required to be
so withheld or deducted;
	 
	 		 	(ii) promptly forward to the Bank an official receipt or other
documentation satisfactory to the Bank evidencing such payment to such
authority; and
	 
	 		 	(iii) pay to the Bank such additional amount as is necessary to ensure
that the net amount actually received by the Bank will equal the full
amount the Bank would have received had no such withholding or deduction
been required.

Moreover, if any Taxes are directly asserted against the Bank or on any payment
received by the Bank hereunder, the Bank may pay such Taxes and the Applicant
will promptly pay such additional amount (including any penalty, interest or
expense) as is necessary in order that the net amount received by the Bank
after the payment of such Taxes (including any Taxes on such additional amount)
shall equal the amount the Bank would have received had no such Taxes been
asserted.

If the Applicant fails to pay any Taxes when due to the appropriate taxing
authority or fails to remit to the Bank the required receipts or other required
documentary evidence, the Applicant shall indemnify the Bank for any
incremental Tax, interest, penalty or expense that may become payable by the
Bank as a result of such failure.

SECTION 8 INCREASED COSTS. If, after the date hereof, the adoption of, or any
change in, any applicable law, rule or regulation, or any change in the
interpretation or administration of any applicable law, rule or regulation by
any governmental authority, central bank or comparable agency charged with the
interpretation or administration thereof, or compliance by the Bank with any
request, guideline or directive (whether or not having the force of law) of any
such authority, central bank or comparable agency,

	(a)	 	affects or would affect the amount of capital required or expected to be
maintained by the Bank or any corporation controlling the Bank and (taking
into consideration the Bank’s or such controlling corporation’s policies
with respect to capital adequacy) the Bank determines that the amount of
such capital is increased as a consequence of this Agreement or the
Letters of Credit; or

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	(b)	 	imposes, modifies or deems applicable any reserve (including, without
limitation, any reserve imposed by the Board of Governors of the Federal
Reserve System), special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended by the Bank with
respect to letters of credit, or imposes on the Bank any other condition
affecting this Agreement or the Letters of Credit, and the Bank determines
that the result of any of the foregoing is to increase the cost to, or to
impose a cost on, the Bank of issuing or maintaining any Letter of Credit
or of making any payment or disbursement under any Letter of Credit, or to
reduce the amount of any sum received or receivable by the Bank under this
Agreement;

then within five Business Days after demand by the Bank (which demand shall be
accompanied by a statement setting forth in reasonable detail the basis of such
demand and a calculation thereof in reasonable detail), the Applicant shall pay
directly to the Bank such additional amount as will compensate the Bank for
such increased capital requirement, such increased cost or such reduction, as
the case may be. Determinations and statements of the Bank pursuant to this
Section 8 shall be conclusive absent manifest error, and the provisions of this
Section 8 shall survive termination of this Agreement.

SECTION 9 EVENTS OF DEFAULT AND THEIR EFFECT.

9.1 Events of Default. Each of the following shall constitute an Event of
Default under this Agreement:

	 		 	9.1.1 Non-Payment of Liabilities, etc. Default in the payment when due of
any principal of or interest on any Liabilities; or default, and
continuance thereof for five days after notice thereof from the Bank, in
the payment when due of any fees or other amounts payable by the Applicant
hereunder.
	 
	 		 	9.1.2 Bankruptcy. etc. The Applicant or any guarantor of the Liabilities
shall become insolvent or admit in writing its inability to pay debts as
they mature, or the Applicant or any such guarantor shall apply for,
consent to or acquiesce in the appointment of a trustee or receiver, or in
the absence of such application, consent or acquiescence, a trustee or
receiver is appointed for the Applicant or any such guarantor, or any
proceeding under any bankruptcy or insolvency law or any dissolution or
liquidation proceeding is instituted by or against the Applicant or any
such guarantor and, if instituted against the Applicant or such guarantor,
remains for 30 days undismissed, or any writ of attachment is issued
against any substantial portion of the Applicant’s or any such guarantor’s
property and is not released within 30 days of service, or the Applicant
or any such guarantor takes any action to authorize, or in furtherance of,
any of the foregoing.
	 
	 		 	9.1.3 Other Agreements with Bank. Any default shall occur (subject to any
applicable grace period) under any other agreement between the Applicant
and the Bank or any of its affiliates (including any agreement under which
the Applicant is a borrower and the Bank or any such affiliate and one or
more other financial institutions are the lenders); or the Applicant shall
fail to comply with or to perform (subject to any applicable grace period)
any covenant set forth in any such other agreement as such covenant is in
effect on the date hereof or is amended from time to time with the consent
of the Bank (but without giving effect to the expiration or termination of
any such agreement unless such agreement is replaced by another agreement
to which the Bank is a party).
	 
	 		 	9.1.4 Representations and Warranties. Any representation or warranty made
by the Applicant herein or in any writing furnished in connection with or
pursuant to this Agreement shall be false or misleading in any material
respect on the date made.

9.2 Effect of Event of Default. If any Event of Default described in Section
9.1.2 shall occur, all Liabilities shall immediately become due and payable and
the Applicant shall immediately become obligated to deliver to the Bank cash
collateral in an amount equal to the face amount of all outstanding Letters of
Credit; and if any other Event of Default shall occur, the Bank may declare all
Liabilities to be due and payable and may demand that the Applicant immediately
deliver to the Bank cash collateral in an amount equal to the face amount of
all outstanding Letters of Credit, whereupon all Liabilities shall become
immediately due and payable and the Applicant shall immediately become
obligated to deliver to the Bank cash collateral in an amount equal to the face
amount of all outstanding Letters of Credit. The Bank shall promptly advise the
Applicant of any such declaration, but failure to do so shall not impair the
effect of such declaration. The Applicant hereby grants the Bank a security
interest in all cash collateral delivered hereunder. All cash collateral shall
be held by the Bank and applied to Liabilities arising in connection with any
drawing under a Letter of Credit. After all Letters of Credit have been fully
drawn, expired or been terminated, such cash collateral shall be applied by the
Bank, first, to any remaining Liabilities and, then, to any other liabilities
of the Applicant to the Bank, and any excess shall be delivered to the
Applicant or as a court of competent jurisdiction may direct.

SECTION 10 SECURITY.

10.1 Grant of Security Interest. As security for the prompt payment and
performance of all Liabilities, and in addition to any other security given to
the Bank by separate agreement, the Applicant hereby grants to the Bank a
continuing security interest in all of the following, whether now existing or
hereafter arising: (i) all property shipped, stored or dealt with in connection
with any Letter of Credit; and (ii) all drafts, documents, instruments,
contracts (including, without limitation, shipping documents, warehouse
receipts and policies or certificates of insurance), inventory, accounts,
chattel paper and general intangibles, and all proceeds of the foregoing,
arising from or in connection with any Letter of Credit, including, without
limitation, any of the foregoing which is in the Bank’s actual or constructive
possession or is in transit to the Bank or any of its affiliates, agents or
correspondents (and regardless of whether such property has been released to
the Applicant). The Applicant further agrees that the Bank or any of its
affiliates may set off and apply to any of the Liabilities which are then due
and payable (by acceleration or otherwise) any deposit of the Applicant at any
time held by the Bank or any of its affiliates. The Applicant agrees that this
Agreement (Or a carbon or photographic copy hereof) may be filed as a financing
statement to the extent permitted by law. The Applicant agrees that, on request
by the Bank, the Applicant shall execute and deliver such financing statements
and other documents or instruments as may be required by the Bank to perfect or
maintain the security interest of the Bank hereunder.

10.2 Rights and Remedies. The Bank shall have all rights and remedies of a
secured party under the UCC. If prior notice to the Applicant is required for
any action, the Bank shall give the Applicant at least five days’ notice in
writing of the time and place of the sale, disposition or other event giving
rise to such required notice, and the Applicant agrees that such notice will be
deemed commercially reasonable. Any property or document representing
collateral may be held by the Bank in its name or in the name of the Bank’s
nominee, all without prior notice. Proceeds of any sale or other disposition of
collateral shall be applied, in order, to the expenses of retaking, holding and
preparing the collateral for sale (including reasonable attorneys’ fees and
legal expenses), and then to the obligations of the Applicant hereunder until
paid in full. The Applicant shall be liable for any deficiency.

SECTION 11 GENERAL.

11.1 Waiver: Amendments. No delay on the part of the Bank in the exercise of
any tight, power or remedy shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or remedy preclude other or
further exercise thereof, or the exercise of any other right, power or remedy.
No amendment, modification or waiver of, or consent with respect to, any
provision of this Agreement shall be effective unless the same shall be in
writing and signed and delivered by the Bank, and then any such amendment,
modification, waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given.

11.2 Notices. (a) Except as otherwise expressly provided herein, all notices
hereunder shall be in writing (including facsimile and electronic transmission,
which shall be considered original writings). Notices given by mail shall be
deemed to have been given three Business Days after the date sent if sent by
registered or certified mail, postage prepaid, to the applicable party at its
address shown below its signature hereto or at such other address as such party
may, by written notice received by the other party to this Agreement, have
designated as its address for notices. Notices given by facsimile or electronic
transmission shall be deemed to have been given when sent. Notices sent by any
other means shall be deemed to have been given when received (or when delivery
is refused).

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	(b)	 	The Bank may rely on any writing (including any facsimile, any electronic
transmission or any information on a computer disk or similar medium which
may be reduced to writing), or any telephonic or other oral message or
instruction (including, without limitation, any oral waiver of any
discrepancy with respect to any Item), that the Bank believes in good
faith to have been received from an authorized officer, employee or
representative of the Applicant, and the Bank shall not be liable for any
action taken in good faith with respect to any writing, message or
instruction from an unauthorized person. The Bank shall not be under any
duty to verify the identity of any person submitting any Application or
other writing or making any other communication hereunder. Notwithstanding
the foregoing, the Bank is not obligated to recognize the authenticity of
any request to issue, amend, honor or otherwise act on any Letter of
Credit that is not evidenced to the Bank’s satisfaction by a writing
originally signed by a person the Applicant has certified is authorized to
act for the Applicant hereunder or by a message or instruction
authenticated to the Bank’s satisfaction.

11.3 Costs, Expenses and Taxes: Indemnification. (a) The Applicant agrees to
pay on demand all reasonable out-of-pocket costs and expenses of the Bank
(including the reasonable fees and charges of counsel for the Bank) in
connection with the enforcement of this Agreement. In addition, the Applicant
agrees to pay, and to save the Bank harmless from all liability for, any stamp
or other taxes which may be payable in connection with the execution or
delivery of this Agreement, the issuance of Letters of Credit hereunder, or the
issuance of any other instrument or document provided for herein or delivered
or to be delivered hereunder or in connection herewith.

	(b)	 	The Applicant agrees to indemnify the Bank and each of its affiliates and
each of their respective officers, directors, employees and agents (each
an “Indemnified Party”) against, and to hold each Indemnified Party
harmless from, any and all actions, causes of action, suits, losses,
costs, damages, expenses (including reasonable attorneys’ fees and
charges, expert witness fees and other dispute resolution expenses) and
other liabilities (collectively the “Indemnified Liabilities”) incurred by
any Indemnified Party as a result of, or arising out of, or relating to,
this Agreement or any Letter of Credit (and without regard to whether the
applicable Indemnified Party is a party to any proceeding out of which
such Indemnified Liabilities arise), except to the extent that a court of
competent jurisdiction determines in a final, non-appealable order that
any Indemnified Liability resulted directly from the gross negligence or
willful misconduct of such Indemnified Party. Without limiting the
generality of the foregoing sentence, the term “Indemnified Liabilities”
includes any claim or liability in which an advising, confirming or other
nominated bank, or a beneficiary requested to issue its own undertaking,
seeks to bc reimbursed, indemnified or compensated. If and to the extent
the foregoing undertaking may be unenforceable for any reason, the
Applicant agrees to make the maximum contribution to the payment of each
of the Indemnified Liabilities which is permitted under applicable law.

	(c)	 	Without limiting clause (b), the Applicant agrees to indemnify the Bank,
and to hold the Bank harmless from, any loss or expense incurred by the
Bank as a result of any judgment or order being given or made for the
payment of any amount due hereunder in a particular currency (the
“Currency of Account”) and such judgment or order being expressed in a
currency (the “Judgment Currency”) other than the Currency of Account and
as a result of any variation having occurred in the rate of exchange
between the date which such amount is converted into the Judgment Currency
and the date of actual payment pursuant thereto. The foregoing indemnity
shall constitute a separate and independent obligation of the Applicant.

	(d)	 	All obligations provided for in this Section 11.3 shall survive any
termination of this Agreement.

11.4 Captions. Section captions used in this Agreement are for convenience only
and shall not affect the construction of this Agreement.

11.5 Governing Law. This Agreement shall be a contract made under and governed
by the laws of the State of Illinois applicable to contracts made and to be
performed entirely within such State. Except to the extent inconsistent with
such state law or otherwise expressly stated in any Letter of Credit, each
Letter of Credit and this Agreement also are subject to the terms of (i) with
respect to matters relating to standby Letters of Credit and Applications
therefor, the ISP, and (ii) with respect to matters relating to commercial
Letters of Credit and Applications therefor, the UCP. Whenever possible each
provision of this Agreement shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this
Agreement shall be prohibited by or invalid under applicable law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining
provisions of this Agreement. All obligations of the Applicant and rights of
the Bank expressed herein shall be in addition to and not in limitation of
those provided by applicable law.

11.6 Counterparts. This Agreement may be executed in any number of counterparts
and by the parties hereto on separate counterparts and each such counterpart
shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same Agreement.

11.7 Successors and Assigns. This Agreement shall be binding upon the Applicant
and its successors and assigns, provided that the Applicant may not assign any
of its rights or obligations hereunder without the prior written consent of the
Bank.

11.8 Right of Bank to Act through Branches and Affiliates. The Bank may cause
any Letter of Credit requested by the Applicant to be issued by a branch or
affiliate of the Bank, and all references to the “Bank” herein or in any
related document shall include each applicable branch or affiliate.

11.9 Foreign Assets Control Regulations. The Applicant certifies that no
transaction in foreign commodities covered by any Application will be
prohibited under the foreign assets control regulations of the United States
Treasury Department and that any importation related to any Letter of Credit
will conform with all applicable laws, rules and regulations.

11.10 Mitigation: Limitation of Liability. The Applicant agrees to take action
to avoid or reduce the amount of and damages which may be claimed against the
Bank. For example, (a) in the case of wrongful honor, the Applicant agrees to
enforce its rights arising out of the underlying transaction (except to the
extent that enforcement is impractical due to the insolvency of the beneficiary
or other Person from whom the Applicant might otherwise recover), and (b) in
the case of wrongful dishonor, the Applicant agrees to specifically and timely
authorize the Bank to effect a cure and give written assurances to the
beneficiary that a cure is being arranged. The Applicant’s aggregate remedies
against the Bank for honoring a presentation or retaining honored documents in
breach of the Bank’s obligations to the Applicant (whether arising under this
Agreement, applicable letter of credit practice or law, or any other agreement
or law) are limited to the aggregate amount paid by the Applicant to the Bank
with respect to the honored presentation.

11.11 Subrogation. The Bank shall be subrogated (for purposes of defending
against the Applicant’s claims and proceeding against others to the extent of
any liability of the Bank to the Applicant) to the Applicant’s rights against
any Person who may be liable to the Applicant on any underlying transaction, to
the rights of any holder in due course or Person with similar status against
the Applicant and to the rights of the beneficiary of any Letter of Credit or
its assignee or any Person with similar status against the Applicant.

11.12 Co-Applicants. (a) If this Agreement is signed by two or more Persons
(each a “Co-Applicant”), then the term “Applicant” shall mean each such Person
and all such Persons shall be jointly and severally liable for all obligations
of the “Applicant” hereunder and in respect of the Letters of Credit issued
pursuant hereto. Any Co-Applicant shall have the right to issue all
instructions relating to Letters of Credit (including, without limitation,
instructions as to the disposition of documents and waiver of discrepancies)
and to agree with the Bank upon any amendment, extension, renewal or
modification of, or change in the amount of, any Letter of Credit, and such
instructions and agreements shall be binding upon all Co-Applicants. Each
Co-Applicant shall be bound by (i) any notice from the Bank to any other
Co-Applicant, (ii) any other Co-Applicant’s settlement or release of any claim
against the Bank arising under this Agreement and (iii) any default under this
Agreement attributable to any other Co-Applicant.

	(b)	 	Each Co-Applicant agrees that if at any time all or any part of any
payment theretofore applied by the Bank to any of the Liabilities is or
must be rescinded or returned by the Bank for any reason whatsoever
(including the insolvency, bankruptcy or reorganization of any
Co-Applicant), such Liabilities shall, to the extent that such payment is
or must be rescinded or returned, be deemed to have continued in
existence, notwithstanding such application by the Bank, and the
obligations of such Co-Applicant with

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	 	 	respect thereto shall continue to be effective or be reinstated, as the case
may be, as to such Liabilities, all as though such application by the Bank
had not been made.

	(c)	 	The Bank may, from time to time, in its sole discretion and without
affecting the obligation of any Co-Applicant, take any or all of the
following actions: (a) retain or obtain the primary or secondary
obligation of any other obligor, in addition to such Co-Applicant, with
respect to any of the Liabilities, and take any security for the
obligations of any such other obligor, (b) extend or renew any of the
Liabilities for one or more periods (whether or not longer than the
original period), alter or exchange any of the Liabilities, or release or
compromise any obligation of any other Co-Applicant or any obligation of
any nature of any other obligor with respect to any of the Liabilities,
(c) release its security interest in, or surrender, release or permit any
substitution or exchange for, all or any part of any property securing any
of the Liabilities, or extend or renew for one or more periods (whether or
not longer than the original period) or release, compromise, alter or
exchange any obligations of any nature of any obligor with respect to any
such property, and (d) resort to such Co-Applicant for payment of any of
the Liabilities when due, whether or not the Bank shall have resorted to
any property securing any of the Liabilities or shall have proceeded
against any other Co-Applicant or any other obligor primarily or
secondarily obligated with respect to any of the Liabilities.

11.13 Continuation of Liability. Regardless of the expiry date of any Letter of
Credit, the Applicant shall remain liable hereunder until the Bank is released
from liability by every Person that is entitled to draw or demand payment under
each Letter of Credit issued pursuant hereto.

11.14 Jurisdiction. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR ANY APPLICATION, SHALL BE BROUGHT AND
MAINTAINED EXCLUSIVELY IN THE COURTS OF COOK COUNTY, ILLINOIS OR IN THE UNITED
STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS PROVIDED THAT ANY
SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY BE
BROUGHT, AT THE BANK’S OPTION, IN THE COURTS OF ANY JURISDICTION WHERE SUCH
COLLATERAL OR OTHER PROPERTY MAY BE FOUND. THE APPLICANT HEREBY EXPRESSLY AND
IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF COOK COUNTY, ILLINOIS
AND OF THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS
FOR THE PURPOSE OF ANY SUCH LITIGATION. THE APPLICANT FURTHER IRREVOCABLY
CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, TO THE
ADDRESS SET FORTH BENEATH ITS SIGNATURE HERETO (OR SUCH OTHER ADDRESS AS IT
SHALL HAVE SPECIFIED IN WRITING TO THE BANK AS ITS ADDRESS FOR NOTICES
HEREUNDER) OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF ILLINOIS. THE
APPLICANT EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY
LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF
ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH
LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

11.15 Waiver of Jury Trial. EACH OF THE APPLICANT AND, BY ISSUING ANY LETTER OF
CREDIT, THE BANK HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR ANY
APPLICATION, INSTRUMENT, DOCUMENT. AMENDMENT OR AGREEMENT DELIVERED OR WHICH
MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY
BANKING RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT, AND AGREES
THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE
A JURY.

Delivered at Chicago. Illinois, as of the day and year first above written.

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	 	 	 
	

	[Applicant]
	 	 
	 
	 	 
	By

	 	

	 
	 	 
	Title

	 	

	 
	 	 
	By

	 	

	 
	 	 
	Title

	 	

	 
	 	 
	Address:

	 	 

	 
	 	 
	Attention:

	 	

	 
	 	 
	Facsimile:

	 	

	 
	 	 
	

	[Second Applicant, if applicable]

	 
	 	 
	By

	 	

	 
	 	 
	Title

	 	

	 
	 	 
	By

	 	

	 
	 	 
	Title

	 	

	 
	 	 
	Address:

	 	 

	 
	 	 
	Attention:

	 	

	 
	 	 
	Facsimile:

	 	

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

LaSalle Bank N.A.

			
	

International Trade Services
	 	

LASALLE BANKS

	 	 	 
	200 W. Monroe Street, Suite 1100
	 	 
	Chicago, Illinois 60606-5002
	 	 
	(312) 904-8462 fax (312) 904-6303
	 	L/C no.                        
	
	 	     (For Bank Use)

APPLICATION FOR IRREVOCABLE COMMERCIAL LETTER OF CREDIT

Subject to our Master Letter of Credit Agreement with yourselves, please issue
an irrevocable Commercial Letter of Credit (L/C) substantially as set forth
below, and

o send the original L/C directly to the Beneficiary

o send the L/C to the Advising Bank indicated or your chosen correspondent, as applicable (for delivery to the Beneficiary)
by o airmail. o courier. o cable (SWIFT/telex/cablegram). o other:                 .

	 	 	 
	Advising Bank (optional)

	 	Applicant (name & address)
	 
	 	 
	Beneficiary of L/C (name & address expected to appear on invoices)

	 	Amount (U.S. dollars unless otherwise indicated)
up to:
          plus
or minus     %
	

	 	Expiry Date of L/C (month in words, day, year)
	 
	 	 
	

	 	in the country of the Beneficiary unless otherwise indicated

Please make the L/C subject to the Uniform Customs and Practice for Documentary
Credits (UCP) currently in effect.

Documents must be presented within         days after shipment (21 days if not
otherwise specified) but, in any case, within the validity of the
credit.

Draft(s) must be drawn at (specify “sight” or other
tenor)                         for         % (100% unless otherwise
specified) of Commercial Invoice value drawn on you or (specify other
drawee)                         and accompanied by
the following documents:

o Original and     copy(ies) of Commercial Invoice covering
(describe goods as in the Beneficiary’s proforma invoice but only in generic
terms, omitting details as to grade, quality,
etc.):                              

	 	 	o EXW (Ex Works, Ex Factory At)                            (place)
	 
	 	 	o FCA (Free Carrier At)                           (place)
	 
	 	 	o CPT (Carriage Paid To)                           (place)
	 
	 	 	o CIP (Carriage & Insurance Paid To)                           (place)
	 
	 	 	o FOB (Free On Board At)                          (port of loading) (for
port-to-port ocean shipments only; otherwise use FCA)
	 
	 	 	o CFR (Cost & Freight Paid To)
                          (port of discharge) (for
port-to-port ocean shipments only; otherwise use CPT)
	 
	 	 	o CIF (Cost, Insurance & Freight Paid To)                         (port of discharge) (for port-to-port
ocean shipments only; otherwise use CIP)
	 
	 	 	o Other terms                          

o Marine Cargo Insurance Policy or Certificate (for CIP and CIF shipments) in negotiable form for at least    % (110% unless otherwise
specified) of Commercial Invoice value, endorsed in blank and covering the following risks:

	 	 	o All risks warehouse-to-warehouse
	 
	 	 	o All risks warehouse-to-warehouse including war risks and strikes, riots and civil commotions
	 
	 	 	o Other (specify)                          

o Copy of a cable or fax message addressed to the Applicant giving date and means of shipment and description and value of the goods shipped,
bearing the Beneficiary’s original signed certification that “This is a true and accurate copy of a message sent as addressed within two days
of shipment of the described goods” (for insurance purposes on EXW, FCA, CPT, FOB, and CFR shipments).

o Full set of Multimodal Transport (Door-to-Door) Bills of Lading showing place of receipt as                                                                                                                                                 and
place of delivery or final destination as_________________consigned to the order of the
shipper, endorsed in blank.

o Full set of Port-to-Port Bills of Lading showing port of loading as                                                                                                                                                           and
port of discharge as                                                                         , consigned to order of shipper, endorsed
in blank.

o Transshipment prohibited (only applies to Port-to-Port Bills of Lading).

o Original Shipper’s Copy of Air Waybill, showing airport of departure as                             and
airport of destination as                                     , consigned to
                                                                        .

o Beneficiary’s certificate that “one extra set of documents is accompanying the air shipment” (not applicable to ocean shipments).

The above Bills of Lading, Air Waybill or other transport documents are to be marked and evidence:

     Freight:
o Collect
o Prepaid         Notify

     Party:_____________

     Partial shipments: o Allowed o Not allowedShipment not later than:

o Forwarder’s Cargo Receipt issued by                                                                          showing merchandise received
no later than                                     , consigned to or held at the disposal of the Applicant.

     o Original and           copy(ies) of Packing List.

     o Original and           copy(ies) of Certificate of Origin.

     o Original and          copy(ies) of                                              .

SPECIAL CONDITIONS/INSTRUCTIONS

o    Please make the L/C transferable in full or in parts by any bank.

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	 	o	 	All bank charges other than those of the Issuing Bank are for the account of the Beneficiary. o All bank charges are for the account of the Applicant.
	 
	 	o	 	Discount charges, if any (applicable only to drafts other than “sight”), are for the account of the o Beneficiary. o Applicant.
	 
	 	o	 	All documents are to be sent to you in one lot by o Courier. o Airmail.
	 
	 	o	 	Other conditions/instructions:

	 	 	 	 	 
	
 

	 	
 
	Account Party name (if different from Applicant name above)

	 	Correspondent Bank Name (if applicable)
	 
	 	 	 	 
	
 

	 	
 
	Authorized signature
	date	 	Authorized signature	date
	 
	 	 	 	 
	
 

	 	
 
	phone number
	fax number	 	phone number	fax number
	 
	 	 	 	 
	

	 	 	FORM NO: 096-0300 MAY 99	 

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

LaSalle Bank N.A.

			
	

International Trade Services
	 	

LASALLE BANKS
	 	 	 

	 	 	 
	200 W. Monroe Street, Suite 1100

	 	 
	Chicago, Illinois 60606-5002

	 	 
	(312) 904-8462 fax (312) 904-6303

	 	L/C no.                        
	

	 	            (For Bank Use)

APPLICATION FOR STANDBY LETTER OF CREDIT

Subject to our Master Letter of Credit Agreement with yourselves,

     o please issue an irrevocable Standby Letter of Credit (L/C) substantially as set forth below, and

     o return the original L/C to ourselves (for delivery to the Beneficiary)

     o send the original L/C directly to the Beneficiary

     o
send the L/C to the Advising Bank indicated (for delivery to the Beneficiary)

               by

     o airmail.

     o courier.

     o
cable (SWIFT/telex/cablegram).

     o
messenger.

     o
other:                                .

               or

	 	 	o [Local Guarantee] please issue an irrevocable Standby Letter of Credit in favor of your
affiliated office or correspondent (or the indicated Foreign Bank) and request that they issue
a Local Guarantee substantially as set forth below and in the attached specimen. (Attach
specimen language for the Local Guarantee. All blanks must be completed on the specimen you
provide. If the Local Guarantee is to be subject to the ISP or other international rules,
indicate so on the specimen.)

     Please make the L/C subject to

     o the Uniform Customs and Practice for Documentary Credits (UCP)

                    or

o the International Standby Practices (ISP)

currently in effect.

	 	 	 
	
 	 	
 

	Advising
Bank/Foreign Bank (optional)
	 	Applicant (name & address)
	 
	
 	 	
 
	Beneficiary of L/C or Local Guarantee, as applicable (name & address)

	 	Amount (U.S. dollars unless otherwise indicated)
	

	 	
 
	

	 	Expiry Date of L/C
	 
	

	 	
 
	

	 	Expiry Date of Local Guarantee (if applicable—must be before Expiry Date of L/C)

Available at sight against presentation of the following document(s) at your
office on or before the Expiry Date unless otherwise indicated below.

	 	 	o Beneficiary’s signed statement reading exactly as follows:                                                                                                                                                               

Other documents (if any):                                                                                                                                                                           

Other instructions (if any, including any special instructions for the Advising Bank/Foreign Bank to follow when delivering the L/C or Local Guarantee):                                                                                                                                                       

	 	 	o [Evergreen L/C] Please include language in the L/C which causes the Expiry Date to be automatically extended for
additional periods of one year at a time unless you notify the Beneficiary at least       days in advance of the
then-current Expiry Date of your election not to allow any further automatic extensions. Please include a “final expiry
date” of            (optional).

	 	 	o Partial drawings are prohibited (permitted if not marked).
	 
	 	 	o Multiple drawings are prohibited (permitted if not marked).
	 
	 	 	o Please refer to attachments. (NOTE: If this application is submitted by mail or fax, all attachments must also be signed.)

In the event we request that the L/C be made subject to local law, we indemnify
you from any liabilities or obligations imposed by such local law, including
any obligation to make payment after the stated Expiry Date of the L/C and/or
the Local Guarantee. In the event we request that the L/C, or any part
thereof, be issued in a foreign language, we indemnify you from any errors in
translation of either the L/C or any documents presented.

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

	 	 	 	 	 
	
 	 	 	 	 
	Account Party name (if different from Applicant name above)
	 	 	 	 
	 
	
 

	 	
 
	 	
 
	Authorized signature                                                                        date

	 	phone number
	 	fax number
	
 

	 	
 
	 	
 
	Correspondent Bank Name (if applicable)

	 	Correspondent Bank Authorized Signature (if applicable)
	 	Phone
	 
	 	 	 	 
	

	 	 	 	FORM NO: 096-0369 MAY 99

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

EXHIBIT 12

DISCLOSURE SCHEDULE OF BORROWER

(See attached Disclosure Schedules)

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.1

Organization and Existence

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.2

Authorization

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.3

Due Execution

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.4

Enforceability of Obligations

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.5

Burdensome Obligations

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.6

Legal Restraints

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.7

Labor Contracts and Disputes

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.8

No Material Proceedings

	1.	 	TALX Corporation

     a) Brody v. TALX Corporation, No. 4:01CV02014DJS, United States District
Court for the Eastern District of Missouri. Putative class action alleging
securities law violations by the company and certain individuals. Three other
class actions filed in the same court making essentially the same allegations
have been consolidated with and into the Brody action. Metzger v. TALX
Corporation, No. 4:02CV00031DJS; Goodman v. TALX Corporation, No.
4:02CV00033DJS; Hinton v. TALX Corporation, No. 4:02CV00168DJS.

     b) In the Matter of TALX Corporation (D-02448-A). The Securities and
Exchange Commission is continuing to conduct an investigation into the
Company’s accounting treatment for certain items.

	2.	 	TALX FasTime Services, Inc.

     No exceptions.

	3.	 	TALX UCM Services, Inc.

     No exceptions.

	4.	 	TALX Employer Services, LLC

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.9

Material Licenses

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.10

Compliance with Material Laws

                    While the Borrower believes no controlling legal precedent exists,
consumers or the Federal Trade Commission could take the position that the Fair
Credit Reporting Act (the “FCRA”) applies to the Borrower and seek to require
the Borrower to comply with the FCRA and seek penalties and damages. If
required, the Borrower would have difficulty complying with these procedures;
for example, The Work Number services are designed to operate via interactive
voice response and the Internet, instead of paper. Further, the Borrower might
have to eliminate certain types of transactions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.11

Other Names

	1.	 	TALX Corporation

     The Work Number

	2.	 	TALX FasTime Services, Inc.

     TALX FasTime Services was incorporated as “Ti3, Inc.” The change in name
is effective March 31, 2004.

	3.	 	TALX UCM Services, Inc.

     TALX UCM Services, Inc. is the successor to Garcia Acquisition Sub, Inc, a
Missouri corporation, and James E. Frick, Inc., also a Missouri corporation.

     On March 27, 2002, TALX acquired the assets of the unemployment
compensation management business of Gates, McDonald & Company and the
outstanding stock of James E. Frick, Inc. James E. Frick did business as “The
Frick Company.” James E. Frick was a Missouri corporation. The assets of the
unemployment compensation business of Gates, McDonald & Company were acquired
through Garcia Acquisition Sub, Inc. Garcia Acquisition Sub, Inc. was also a
Missouri corporation.

     Garcia Acquisition Sub, Inc. was merged into James E. Frick, Inc. under
the terms of an Agreement of Merger dated March 26, 2003. By the Restated
Articles of Incorporation, adopted April 1, 2003, the name of the surviving
corporation was changed to TALX UCM Services, Inc.

     TALX UCeXpress

	4.	 	TALX Employer Services, LLC

     TALX Unemployment Cost Management

     Sheakley Unemployment

     Sheakley Interactive Services, LLC

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.12

Consummation of Current Acquisition and Approved Acquisitions

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.13

Prior Transactions

	1.	 	TALX FasTime Services, Inc. (f/k/a Ti3, Inc.)

     In 2001, TALX acquired all the outstanding stock of Ti3, Inc.

	2.	 	TALX UCM Services, Inc.

     On March 27, 2002, TALX’s subsidiary, Garcia Acquisition Sub, Inc.,
acquired the assets of the unemployment compensation management business of
Gates, McDonald & Company. Also, on March 27, 2002, TALX acquired the
outstanding stock of James. E. Frick, Inc. Both subsidiaries were merged and
now are known as TALX UCM Services, Inc. On June 30, 2003, TALX UCM Services,
Inc. acquired the outstanding membership interests of Johnson & Associates,
Inc.

	3.	 	TALX- Sale of HRBAS Unit

     On April 23, 2003, TALX sold the assets of its human resources and
benefits applications services business unit to Workscape, Inc.

	4.	 	TALX Employer Services, LLC

     The Current Acquisition.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.14

21.18. Capitalization

	1.	 	TALX Corporation

     i) 30,000,000 authorized shares of common stock.

     ii) 13,948,542 shares of issued stock as of March 1, 2004, of which:

     301,041 shares were held in Treasury

     13,647,501 shares were outstanding

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.15

Solvency

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.16

Projections; Pro Forma Balance Sheet

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.17

Financial Statements

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.18

No Change in Condition

	1.	 	TALX Corporation

     a) In the Matter of TALX Corporation (D-02448-A). The Securities and
Exchange Commission is continuing an investigation into the Company’s
accounting treatment for certain items.

	2.	 	TALX FasTime Services, Inc.

     No exceptions.

	3.	 	TALX UCM Services, Inc.

     No exceptions.

	4.	 	TALX Employer Services, LLC

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.19

Investments

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.20

Indebtedness

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.21

Indirect Obligations

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.22

Operating Leases

TALX Corporation, TALX FasTime Services, Inc., TALX UCM Services, Inc.

and TALX Employer Services, LLC

Corporate Property Schedule — April 2004

	 	 	 	 	 	 	 
	Company	 	City and State	 	Street Address	 	Lessor
	Offices - subleased
or shared space
	 	 	 	 	 	 
	TALX UCM Services, Inc

	 	Concord, CA
	 	One Concord Centre, 94520	 	 
	TALX UCM Services, Inc

	 	Maitland, FL
	 	2290 Lucien Way, 32751	 	 
	TALX UCM Services, Inc

	 	Towson, MD
	 	8600 LaSalle Rd., 21286	 	 
	TALX UCM Services, Inc

	 	Las Vegas, NV
	 	1701 West Charleston Blvd, 89102	 	 
	TALX UCM Services, Inc

	 	Hilliard, OH
	 	3455 Mill Run Drive, 43026	 	 
	TALX Employer

Services LLC

	 	Cincinnati, OH
	 	100 Merchant Street, Suite 100
	 	Princeton Properties
	 
	 	 	 	 	 	 
	TALX Leases
	 	 	 	 	 	 
	TALX Corporation

	 	Fairfield, CT
	 	53 Unquowa Place
	 	The Patten Group LLC
	TALX Corporation

	 	Missoula, MT
	 	1121 East Broadway, Suite 110,
59802
	 	MonTEC
	TALX Corporation

	 	Carlsbad, CA
	 	2006 Palomar Airport Road 92008
	 	Magellan Aviation
	TALX UCM Services, Inc

	 	Kirkland, WA
	 	4020 Lake Washington Blvd.
N.E., 98033	 	 
	TALX UCM Services, Inc

	 	Beaverton, OR
	 	8905 SW Nimbus Avenue, 97005	 	 
	TALX UCM Services, Inc

	 	Absecon, NJ
	 	707 White Horse Pike, 08201	 	 
	TALX UCM Services, Inc

	 	Park Ridge, IL
	 	1030 Higgins Road, 60068	 	 
	TALX UCM Services, Inc

	 	Los Angeles, CA
	 	10801 National Blvd., 90064	 	 
	TALX UCM Services, Inc

	 	Lake Success, NY
	 	3000 Marcus Avenue, Suite 1W12,
11042
	 	We’re Associates
	TALX Corporation

	 	Marietta, GA
	 	2265 Roswell Rd. N.E., Suite
100, 30062
	 	Crowne Office Suites -

Full Service
	TALX Corporation

	 	St. Louis, MO
	 	1850 Borman Court, 63146
	 	Adie Road Partnership
	TALX Corporation

TALX UCM Services, Inc

	 	St. Louis, MO

St. Louis, MO
	 	11828 Borman Drive 63146 - Ste.
M, Q, R, S

10101 Woodfield, 63132
	 	Glenborough Realty Trust

TIC Corporate Square
	TALX UCM Services, Inc

	 	St. Louis, MO
	 	1195 Corp. Lake, 63132
	 	TIC Corporate Square
	TALX FasTime

Services, Inc

	 	Richardson, TX
	 	3400 Waterview Parkway, Suite
117
	 	Cousins Properties
	TALX UCM Services, Inc

	 	Southfield, MI
	 	29777 Telegraph Road, Suite
1650, 48034
	 	Onyx Plaza

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

	 	 	 	 	 	 	 
	Company	 	City and State	 	Street Address	 	Lessor
	TALX Corporation

	 	Phoenix, AZ
	 	20820 North 25th Place, Suite
112, Phoenix, AZ 85050.
	 	Rose Garden Development
	TALX Employer

Services LLC

	 	Sacramento, CA
	 	650 Howe Avenue, Suite 720/aka: 701 Howe Ave., Suite F5
	 	Howe Arden
	TALX Employer

Services LLC

	 	Phoenix, AZ
	 	2005 N. Central Avenue, 4th
Floor
	 	Presson Central Two
	TALX Employer

Services LLC

	 	Addison, TX

(Dallas)
	 	4851 Keller Springs Road, Suite
201
	 	First Equipment Co.
(Financial Concepts)
	TALX Employer

Services LLC

	 	Harrisburg, PA
	 	2793 Old Post Road
	 	Blue Mountain Properties
	TALX Employer

Services LLC

	 	Westerville, OH

(Columbus)
	 	191 W. Schrock Road
	 	Partners At Brooksedge
	TALX Employer

Services LLC

	 	Cleveland, OH

(SIS Operations)
	 	1375 East 9th Street, Suite 2200
One Cleveland Center
	 	Cleveland Center

Investors

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.23

Capital Leases

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.24

Tax Liabilities; Governmental Charges

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.25

Pension Benefit Plans

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.26

Welfare Benefit Plans

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.27

Retiree Benefits

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.28

Distributions

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.29

Real Property

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.30.1

State of Collateral and Other Property: Accounts

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.30.2

State of Collateral and Other Property: Inventory

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.30.3

State of Collateral and Other Property: Equipment

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.30.4

State of Collateral and Other Property: Intellectual Property

TALX Corporation

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	U.S. Trademarks
	 	Serial No.
	 	Date of Filing
	 	Registration No.
	 	Date Registered

	EASYSCRIPT

	 	 	74042897	 	 	 	19900323	 	 	 	1656695	 	 	 	19910910	 
	ECHOICE

	 	 	76055184	 	 	 	20000524	 	 	 	2753549	 	 	 	20030819	 
	TALX

	 	 	76508288	 	 	 	20030408	 	 	 	2816829	 	 	 	20040224	 
	THE WORK NUMBER

	 	 	75153137	 	 	 	19960820	 	 	 	2077613	 	 	 	19970708	 
	THE WORK NUMBER FOR

EVERYONE

	 	 	74526003	 	 	 	19940513	 	 	 	1949636	 	 	 	19960116	 
	UC EXPRESS

	 	 	78145643	 	 	 	20020719	 	 	 	2794670	 	 	 	20031216	 
	W-2 EXPRESS

	 	 	76316889	 	 	 	20010925	 	 	 	2591466	 	 	 	20020709	 
	ADVANCED HR

SOLUTIONS

	 	 	76187934	 	 	 	20001229	 	 	 	2606966	 	 	 	20020813	 
	MANAGE HR

	 	 	76516769	 	 	 	20030508	 	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	U.S. Trademarks	 	 	 	 	 	 	 	 
	(no longer used in the business and	 	 	 	 	 	 	 	 
	due to lapse in the near future)
	 	Serial No.
	 	Date of Filing
	 	Registration No.
	 	Date Registered

	ACCUCAT

	 	 	75177466	 	 	 	19961007	 	 	 	2105299	 	 	 	19971014	 
	CUSTOMCAT

	 	 	75177465	 	 	 	19961007	 	 	 	2101492	 	 	 	19970930	 
	ACCUMARC

	 	 	75177385	 	 	 	19961007	 	 	 	2101488	 	 	 	19970930	 
	CUSTOMMARC

	 	 	75177346	 	 	 	19961007	 	 	 	2105293	 	 	 	19971014	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Canadian Trademarks
	 	Serial No.
	 	Date of Filing
	 	Registration No.
	 	Date Registered

	TALX

	 	 	1192302	 	 	 	20031001	 	 	pending
	 	pending

	THE WORK NUMBER

	 	 	1015971	 	 	 	19990513	 	 	 	584305	 	 	 	20030625	 
	THE WORK NUMBER FOR

EVERYONE

	 	 	1015970	 	 	 	19990513	 	 	 	584269	 	 	 	20030625	 

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	European Union	 	 	 	 	 	 	 	 
	Trademarks
	 	Serial No.
	 	Date of Filing
	 	Registration No.
	 	Date Registered

	THE WORK NUMBER

	 	 	322578	 	 	 	19960816	 	 	 	322578	 	 	 	19981209	 
	THE WORK NUMBER FOR

EVERYONE

	 	 	322271	 	 	 	19960816	 	 	 	322271	 	 	 	19980924	 

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Date
	Patents
	 	Serial Number
	 	Patent Number
	 	Type
	 	Issued

	HIGH SPEED MODEM
AND METHOD HAVING JITTER-FREE TIME RECOVERY

[For recording a data signal]

	 	 	02875996	 	 	 	5,838,744	 	 	Utility
	 	 	19971117	 
	MULTI-FREQUENCY
RECEIVER WITH ARBITRARY CENTER FREQUENCIES

	 	 	02482454	 	 	 	5,477,465	 	 	Utility
	 	 	19951219	 

	 	 	 	 	 	 	 
	 	 	Serial	 	 	 	 
	Patent Applications
	 	Number
	 	Type
	 	Date Filed

	METHOD AND SYSTEM FOR MANAGING
EMPLOYEE ACCESS TO PAYROLL
INFORMATION

	 	10/068,061
	 	Utility
	 	2002/2/5

     TALX FasTime Services, Inc.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Trademarks
	 	Serial Number
	 	Date of Filing
	 	Registration No.
	 	Date Registered

	FASTIME

	 	 	76148399	 	 	 	20001016	 	 	 	2527180	 	 	 	20020108	 
	CAREENTRY

	 	 	76047423	 	 	 	20000512	 	 	 	2551039	 	 	 	20020319	 
	VIDC

	 	 	75537134	 	 	 	19980814	 	 	 	2292529	 	 	 	19991116	 

     TALX UCM Services, Inc.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Service Mark
	 	Serial Number
	 	Date of Filing
	 	Registration No.
	 	Date Registered

	VERIFACTS

	 	 	75375483	 	 	 	19971020	 	 	 	2333104	 	 	 	20000404	 

	 	 	 	 	 	 	 
	Copyright
	 	Registration No.
	 	Date Registered

	EMPLOYER’S GUIDE TO CONTROLLING YOUR
UNEMPLOYMENT COSTS

	 	TX4051739
	 	 	19950511	 

     TALX Employer Services, LLC

          None.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.31.1

Location of Chief Executive Office and Principal Place of Business

	 	 	 	 	 
	Company
	 	Chief Executive Office
	 	Principal Place of Business

	TALX Corporation

	 	1850 Borman Court

St. Louis, Missouri 63146
	 	1850 Borman Court

St. Louis, Missouri 63146
	TALX FasTime Services,
Inc.

	 	1850 Borman Court

St. Louis, Missouri 63146
	 	3400 Waterview Parkway

Suite 117

Richardon, Texas 75080
	TALX UCM Services, Inc.

	 	1850 Borman Court

St. Louis, Missouri 63146
	 	10101 Woodfield

St. Louis, Missouri 63132
	TALX Employer
Services, LLC

	 	1850 Borman Court

St. Louis, Missouri 63146
	 	10101 Woodfield

St. Louis, Missouri 63132

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.31.2

Location of Books and Records

	1.	 	TALX Corporation
	 
	 	 	See Section 12.22.
	 
	2.	 	TALX FasTime Services, Inc.
	 
	 	 	See Section 12.22.
	 
	3.	 	TALX UCM Services, Inc.
	 
	 	 	See Section 12.22.
	 
	4.	 	TALX Employer Services, LLC
	 
	 	 	See Section 12.22 and the following address:
	 
	 	 	100 Merchant Street, Suite 100
	 
	 	 	Cincinnati, Ohio 45246

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.31.3

Location of Collateral

	1.	 	Excluding immaterial office equipment and furniture, all of the tangible
Collateral is located only at the places listed in Sections 12.31.1 and
12.31.2 of the Disclosure Schedule.
	 
	2.	 	No Covered Person has an office or place of business except offices in
homes and other than as disclosed on Section 12.22.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.32

Negative Pledges

	1.	 	TALX Corporation

	(i)	 	From time to time, TALX Corporation has contracted with
United States or a department, agency, public corporation or other
instrumentality thereof, and such contracts may contain prohibitions
on the creation or existence of any Security Interest upon or
assignment or conveyance of any of the Collateral.
	 
	(ii)	 	TALX Corporation has entered into a certain license agreement
with A2D, L.P., dated as of April 1, 2001 (the “A2D Agreement”), for
the use of certain interactive voice response technology in exchange
for continuing royalty payments. The A2D Agreement provides that
A2D, L.P. may terminate the A2D Agreement if TALX Corporation
assigns the A2D Agreement for the benefit of creditors, however, the
A2D Agreement does not expressly prohibit assignment.

	2.	 	TALX FasTime Services, Inc.
	 
	 	 	No exceptions.
	 
	3.	 	TALX UCM Services, Inc.
	 
	 	 	No exceptions.
	 
	4.	 	TALX Employer Services, LLC
	 
	 	 	No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.33.1

Security Agreements

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.33.2

Collateral Assignments

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.34

S Corporation

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.35

Subsidiaries and Affiliates

	1.	 	TALX FasTime Services, Inc., a Texas corporation
	 
	2.	 	TALX UCM Services, Inc., a Missouri corporation
	 
	3.	 	TALX Employer Services, LLC, a Missouri limited liability company
	 
	4.	 	TALX Limited, a company organized under the laws of England (Dormant)

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.36

Bank Accounts and Lockboxes

     See Officer’s Certificate Regarding Bank Accounts and Lockboxes dated as
of March 31, 2004.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.37

Margin Stock

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.38

Securities Matters

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.39

Investment Company Act, Etc.

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.40

No Material Misstatements or Omissions

	 	 	Reference is made to the Borrower’s filings with the Securities and Exchange
Commission for additional information regarding the Covered Persons’ business,
operations, revenues, financial condition, property and business prospects.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.41

Filings

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.42

Broker’s Fees

     TALX Corporation will pay a broker’s fee to CIBC World Markets.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Section 12.43

Hart-Scott-Rodino Filing Requirement

     No exceptions.

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Schedule 12.44

Eligibility of Collateral

     No exceptions

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Schedule 15.2.7

Indebtedness

     None.

 

 

CONFIDENTIAL TREATMENT REQUESTED BY

TALX CORPORATION

EXHIBIT 14.14

FORM OF COMPLIANCE CERTIFICATE

TO: LaSalle Bank National Association, as Administrative Agent

This Compliance Certificate is furnished pursuant to that certain Amended and
Restated Loan Agreement effective          , 2004 (as it may be amended,
modified, restated or replaced from time to time, the Loan Agreement), among
TALX Corporation (referred to herein both collectively and individually as
Borrower), LaSalle Bank National Association, as Administrative Agent
(Administrative Agent) and the Lenders as defined in the Loan Agreement
(Lenders). Unless otherwise defined herein, capitalized terms used in this
Compliance Certificate have the meanings defined in the Loan Agreement.

THE UNDERSIGNED HEREBY CERTIFIES THAT:

	1.	 	I am the Chief Financial Officer of Borrower.
	 
	2.	 	I have reviewed the terms of the Loan Agreement and the Loan
Documents and I have made, or have caused to be made under my
supervision, a review of the transactions and conditions of Borrower
and each other Covered Person during the accounting period covered
by the attached Financial Statements.
	 
	3.	 	The examinations described in paragraph 2 did not disclose,
and I have no knowledge of, the existence of any condition or event
which constitutes an Default or Event of Default as of the date of
this Compliance Certificate; and to my knowledge all of the
Representations and Warranties (including those of each Guarantor in
its Guaranty) are true in all material respects.
	 
	4.	 	<Use for annual financial statements: Schedule I attached
hereto contains the Financial Statements for Borrower for the fiscal
year ended     , which are complete and correct in all material
respects and have been prepared in accordance with GAAP applied
consistently throughout the period and with prior periods (except as
disclosed therein).>
	 
	 	 	<Use for quarterly and monthly financial statements: Schedule I
attached hereto contains the Financial Statements for Borrower for
the fiscal <quarter> <month> ended     , which are
complete and correct in all material respects (subject to normal
year-end audit adjustments) and have been prepared in accordance
with GAAP applied consistently throughout the period and with prior
periods (except as disclosed therein).>
	 
	5.	 	Borrower and every other Covered Person is in compliance with
all of the covenants in the Loan Agreement, including the financial
covenants in Section Error! Reference source not found., and
Schedule II attached hereto contains calculations based on
Borrower’s financial statements and other financial records that
show Borrower’s compliance with such financial covenants. The
calculations and the data upon which they are based are believed by
me to be complete and correct.

This Compliance Certificate, together with the Schedules hereto, is executed
and delivered this day of             .

By:___________________

Print Name:_____________

 

 

DISCLOSURE SCHEDULE TO

AMENDED AND RESTATED LOAN AGREEMENT

Title: _______________

 

 

SCHEDULE I TO COMPLIANCE CERTIFICATE

See current Financial Statements.

 

 

SCHEDULE II TO COMPLIANCE CERTIFICATE

All calculations done in accordance with GAAP on a consolidated basis, in
accordance with the provisions of the Amended and Restated Loan Agreement and
based on the period ended            . Any inconsistencies between the
descriptions of the items set forth in this Schedule II and the terms of any of
Sections 16.1 through 16.6 shall be resolved in favor of the terms set forth in
Sections 16.1 through 16.6. Reference should be made to Sections 16.1 through
16.6 of the Amended and Restated Loan Agreement for more specific instructions
regarding the calculation periods and how the components of the financial
covenants should be calculated.

	I.	 	EBITDA (for preceding four fiscal quarters) (Section 16.1):

	 	 	 	 	 	 	 	 	 	 	 
	

	 	(i)
	 	Net Income
	 	 	$	
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	(ii)
	 	Federal, State and Local Income
Tax expense accrued for as a liability
	 	 	$	
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	(iii)
	 	Interest Expense
	 	 	$	
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	(iv)
	 	Amortization of good will and
other intangible assets and depreciation
expense taken or accrued for in such period,
without duplication
	 	 	$	
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	(v)
	 	Extraordinary losses in such period incurred
or accrued for in such period, without
duplication
	 	 	$	
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	(vi)
	 	Sum of Items (i), (ii), (iii), (iv) and (v)
	 	 	$	
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	(vii)
	 	Extraordinary income/gain in such period
incurred or accrued for in such period,
without duplication
	 	 	$	
	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	(viii)
	 	Item (vi) minus Item(vii) — EBITDA
	 	 	$	
	 	 

	II.	 	Excess Cash Flow (Section 6.3.3.4)

	 	 	 	 	 	 	 	 	 	 	 
	

	 	A.
	 	Total Indebtedness
	 	 	$	
	 	 
	 
	

	 	B.
	 	EBITDA (for preceding four fiscal quarters per Item I (viii))
	 	 	$	
	 	 
	 
	

	 	C.
	 	Ratio of Item A to Item B
	 	 	 	
	:1.0	 
	 
	

	 	D.
	 	Ratio of Total Indebtedness to EBITDA required	 	 	 	 	 	 
	 
	

	 	by Section 6.3.3.4 to avoid Excess Cash Flow Payment
	Less than 1.50:1.0

 

 

	III.	 	Capital Expenditure (Section 16.2)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	A.
	 	Capital Expenditures in period
	 	 	 	 	 	$	
	 
	 
	

	 	B.
	 	Capital Expenditures permitted in such period
by Section 16.2
	 	 	 	 	 	$	13,000,000.00	 

	IV.	 	Minimum Fixed Charges Coverage (Section 16.3)

	 	 	 	 	 	 	 	 	 	 	 
	

	 	A.
	 	EBITDA (for preceding four fiscal quarters per Item 1(viii))
	 	 	 	$	
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	Less:
	 	(i)
	 	Capital Expenditures
	 	 	$	
	 	 
	

	 	 	 	(ii)
	 	Federal, State and Local
Income tax paid
	 	 	$	
	 	 

	 	 	 	 	 	 	 	 	 	 	 
	

	 	B.
	 	Subtotal (EBITDA minus (i) and (ii))
	 	 	 	$	
	 
	 
	

	 	C.
	 	Fixed Charges (for preceding four fiscal quarters (Section 16.1):	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	

	 	 	1.	 	 	Interest Expense
	 	 	$	 	
	 
	

	 	 	2.	 	 	Sum of all scheduled principal payments on
long term Indebtedness of Borrower
(including the Term Loan)
	 	 	$	 	
	 
	

	 	 	3.	 	 	Management fees or other fees paid

by the Borrower
	 	 	$	 	
	 
	

	 	 	4.	 	 	Distributions
	 	 	$	 	
	 
	

	 	 	5.	 	 	Less: Repurchases
financed under the
Revolving Loan Commitment to the
extent not exceeding $5,000,000
	 	 	$	 	
	 
	

	 	 	6.	 	 	FIXED CHARGES (Sum of
items 1
through 4 minus item 5)
	 	 	$	 	
	 

	 	 	 	 	 	 	 
	

	 	D.
	 	Ratio of Item B to Item C.6.
	 	      :1.0
	 
	

	 	E.
	 	Minimum Ratio required by Section 16.3 for such period
(refer to Section 16.3 for value of X)
	 	X:1.0, where X =     

 

 

	V.	Total Indebtedness to EBITDA (Section 16.4)

	 	 	 	 	 	 	 	 
	 	A.
	 	Total Indebtedness
	 	$	 	

	 
	 	B.
	 	EBITDA (for preceding four fiscal quarters per Item I (viii))
	 	$	 	

	 
	 	C.
	 	Ratio of Item A to Item B
	 	 	 	     :1.0
	 
	 	D.
	 	Maximum Ratio of Total Indebtedness to
to EBITDA permitted by Section 16.4
(refer to Section 16.4 for value of Y)
	 	Y:1.0, where Y =     

	VI.	Minimum Net Worth (Section 16.5)

	 	 	 	 	 	 	 	 
	 	A.
	 	Actual Net Worth
	 	$	 	

	 
	 	B.
	 	Minimum Net Worth Required by Section 16.5:	 	 	 	 
	 	 	 	$120,000,000 plus an aggregate amount equal
to 50% of quarterly Net Income after the
Effective Date (but only if a positive number,
and with no reduction for losses), plus 100% of
net cash proceeds from the issuance of equity
securities after the Effective Date.
	 	$	 	

	VII.	Minimum EBITDA (Section 16.6)

	 	 	 	 	 	 	 	 
	 	A.
	 	EBITDA (for preceding four fiscal quarters per Item 1(viii))
	 	$	 	

	 
	 	B.
	 	Minimum EBITDA required by Section 16.6
(refer to Section 16.6 for value of Z)
	 	where Z =
_______

 

 

EXHIBIT 14.15.1

FORM OF BORROWING BASE CERTIFICATE

To: LaSalle Bank National Association, as Administrative Agent

     Please refer to the Amended and Restated Loan Agreement dated as of March
   , 2004 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”) among TALX Corporation (the “Company”), various
financial institutions and LaSalle Bank National Association, as Administrative
Agent. This certificate (this “Certificate”), together with supporting
calculations attached hereto, is delivered to you pursuant to the terms of the
Credit Agreement. Capitalized terms used but not otherwise defined herein
shall have the same meanings herein as in the Credit Agreement.

     The Company hereby certifies and warrants to the Administrative Agent and
the Lenders that at the close of business on       ,       (the
“Calculation Date”), the Borrowing Base was $      , computed as set
forth on the schedule attached hereto.

     The Company has caused this Certificate to be executed and delivered by
its officer thereunto duly authorized on    ,    .

	 	 	 	 	 
	 	 	TALX Corporation
	 
	 	 	 	 
	

	 	By:
	 	

	

	 	Title:
	 	

 

 

SCHEDULE TO BORROWING BASE CERTIFICATE

Dated as of [_________________]

	 	 	 	 	 
	1.

	 	Gross Accounts
	 	$                
	 
	 	 	 	 
	2.

	 	Less UC Accounts
	 	$                
	 
	 	 	 	 
	3.

	 	Plus Eligible UC Business Accounts
	 	$                
	 
	 	 	 	 
	4.

	 	Less Ineligibles	 	 

	 	 	 	 	 
	(i)

	 	Accts in which Admin. Agent’s Lien
not perfected or subject to other Lien
	 	$                
	(ii)

	 	Accts over 120 days past invoice date
	 	$                
	(iii)

	 	Accts from Acct Debtor where 35%
of its Accts are ineligible under (ii)
	 	$                
	(iv)

	 	Accts of Affiliates
	 	$                
	(v)

	 	Accts not perfected under UCC or Claims Act
	 	$                
	(vi)

	 	Accts where Acct Debtor is U.S. or a state,
department or agency thereof, to the extent
over $450,000
	 	$                
	(vii)

	 	Accts where Acct Debtor is not formed in the U.S
and CEO not in the U.S., to the extent over $50,000
	 	$                
	(viii)

	 	Accts where Acct Debtor disputes acceptance
	 	$                
	(ix)

	 	Accts billed in untimely manner
	 	$                
	(x)

	 	Accts where Acct Debtor is subject to insolvency
proceeding or acknowledges inability to pay its debts
	 	$                
	(xi)

	 	Accts subject to dispute, offset, etc.
	 	$                
	(xii)

	 	Accts subject to chargeback for discounts
	 	$                
	(xiii)

	 	Accts regarding bonded goods/services
	 	$                
	(xiv)

	 	Accts that are Non-assignable
	 	$                
	(xv)

	 	Accts in which the reps, warrants or covenants of the
loan agreement are breached
	 	$                
	(xvi)

	 	Accts where payment has been returned uncollected
	 	$                
	(xvii)

	 	Accts which represent progress billings other than the

Eligible UC Business Accounts
	 	$                
	(xviii)

	 	Accts evidence by an instrument or reduced to judgement
	 	$                
	(xix)

	 	Accts which arise out of a sale not made in
the ordinary course
	 	$                

	 	 	 	 	 
	

	 	Total of (i) through (xix)
	 	$                
	 
	 	 	 	 
	4.

	 	Eligible Accounts [Item 1 minus Item 2 minus Item 3]
	 	$                
	 
	 	 	 	 
	5.

	 	Borrowing Base	 	 
	

	 	[Item 4 times 75%]
	 	$                

 

 

	 	 	 	 	 
	6.

	 	Lesser of Item 5 and the Aggregate Revolving Loan Commitment
	 	$                
	 
	 	 	 	 
	7.

	 	Aggregate Revolving Loan outstandings plus
Letter of Credit Exposure
	 	$                
	 
	 	 	 	 
	8.

	 	Maximum Available Amount	 	 
	

	 	[Excess of Item 6 over Item 7]
	 	$                
	 
	 	 	 	 
	9.

	 	Required Prepayment	 	 
	

	 	[Excess of Item 7 over Item 6]
	 	$                

 

 

EXHIBIT 16.4

Adjustment to Maximum Ratio of Total Indebtedness to EBITDA

1. If after the Effective Date but prior to September 30, 2004, Borrower
closes on all of the Approved Acquisitions and the Administrative Agent
makes an Advance or Advances under the Aggregate Loan Commitments as
contemplated hereby in order for Borrower to consummate the Approved
Acquisitions, then the following schedule shall, without more, be
substituted for the schedule as currently set forth in Section 16.4 and
shall be effective as of the last day of the quarter in which the last of
the Approved Acquisitions closed.

	 	 	 	 	 
	 	 	Maximum Ratio of Total Indebtedness to
	Period
	 	EBITDA*

	Fiscal Quarter ending 3/31/04
	 	 	1.75 to 1	 
	Fiscal Quarter ending 6/30/04
	 	 	2.25 to 1	 
	Fiscal Quarter ending 9/30/04
	 	 	2.25 to 1	 
	Fiscal Quarter ending 12/31/04
	 	 	2.25 to 1	 
	Fiscal Quarter ending 3/31/05
	 	 	2.00 to 1	 
	Fiscal Quarter ending 6/30/05
	 	 	2.00 to 1	 
	Fiscal Quarter ending 9/30/05
	 	 	1.75 to 1	 
	Fiscal Quarter ending 12/31/05
	 	 	1.75 to 1	 
	Fiscal Quarter ending 3/31/06
	 	 	1.50 to 1	 
	Fiscal Quarter ending 6/30/06
	 	 	1.50 to 1	 
	Fiscal Quarter ending 9/30/06
	 	 	1.50 to 1	 
	Fiscal Quarter ending 12/31/06
	 	 	1.50 to 1	 
	Fiscal Quarter ending 3/31/07
	 	 	1.50 to 1	 
	Fiscal Quarter ending 6/30/07
	 	 	1.50 to 1	 
	Fiscal Quarter ending 9/30/07
	 	 	1.50 to 1	 
	Fiscal Quarter ending 12/31/07
	 	 	1.50 to 1	 
	Fiscal Quarter ending 3/31/08
	 	 	1.50 to 1	 
	Fiscal Quarter ending 6/30/08
	 	 	1.50 to 1	 
	Fiscal Quarter ending 9/30/08
	 	 	1.50 to 1	 
	Fiscal Quarter ending 12/31/08
	 	 	1.50 to 1	 
	Fiscal Quarter ending 3/31/09
	 	 	1.50 to 1	 

2. If after the Effective Date but prior to September 30, 2004, Borrower
closes on either (i) Target One Acquisition and Target Two Acquisition;
or (ii) Target Three Acquisition; or (iii) Target Four Investment and
either (i) or (ii), and the Administrative Agent makes an Advance or
Advances under the Aggregate Loan Commitments as contemplated hereby in
order for Borrower to consummate such Approved Acquisition or, if
applicable, Approved Acquisitions, then the following schedule shall,
without more,

Borrower’s Initials           

 

 

be substituted for the schedule as currently set forth in Section 16.4
and shall be effective as of the last day of quarter in which such
Approved Acquisition, or, if applicable, Approved Acquisitions, closed.

	 	 	 	 	 
	 	 	Maximum Ratio of Total Indebtedness to
	Period
	 	EBITDA*

	Fiscal Quarter ending 3/31/04
	 	 	1.75 to 1	 
	Fiscal Quarter ending 6/30/04
	 	 	2.25 to 1	 
	Fiscal Quarter ending 9/30/04
	 	 	2.25 to 1	 
	Fiscal Quarter ending 12/31/04
	 	 	2.00 to 1	 
	Fiscal Quarter ending 3/31/05
	 	 	2.00 to 1	 
	Fiscal Quarter ending 6/30/05
	 	 	1.75 to 1	 
	Fiscal Quarter ending 9/30/05
	 	 	1.50 to 1	 
	Fiscal Quarter ending 12/31/05
	 	 	1.50 to 1	 
	Fiscal Quarter ending 3/31/06
	 	 	1.25 to 1	 
	Fiscal Quarter ending 6/30/06
	 	 	1.25 to 1	 
	Fiscal Quarter ending 9/30/06
	 	 	1.25 to 1	 
	Fiscal Quarter ending 12/31/06
	 	 	1.25 to 1	 
	Fiscal Quarter ending 3/31/07
	 	 	1.25 to 1	 
	Fiscal Quarter ending 6/30/07
	 	 	1.25 to 1	 
	Fiscal Quarter ending 9/30/07
	 	 	1.25 to 1	 
	Fiscal Quarter ending 12/31/07
	 	 	1.25 to 1	 
	Fiscal Quarter ending 3/31/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 6/30/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 9/30/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 12/31/08
	 	 	1.25 to 1	 
	Fiscal Quarter ending 3/31/09
	 	 	1.25 to 1	 

Borrower’s Initials           

 

 

EXHIBIT 16.6

Adjustment to Minimum EBITDA

1. If after the Effective Date but prior to September 30, 2004, Borrower
closes on all of the Approved Acquisitions and the Administrative Agent
makes an Advance or Advances under the Aggregate Loan Commitments as
contemplated hereby in order for Borrower to consummate the Approved
Acquisitions, then the following schedule shall, without more, be
substituted for the schedule as currently set forth in Section 16.6 and
shall be effective as of the last day of quarter in which the last of the
Approved Acquisitions, closed.

	 	 	 	 	 
	 	 	Minimum EBITDA*
	Period
	 	($000 omitted)

	Fiscal Quarter ending 3/31/04
	 	$	31,000	 
	Fiscal Quarter ending 6/30/04
	 	$	31,000	 
	Fiscal Quarter ending 9/30/04
	 	$	32,000	 
	Fiscal Quarter ending 12/31/04
	 	$	32,000	 
	Fiscal Quarter ending 3/31/05
	 	$	33,500	 
	Fiscal Quarter ending 6/30/05
	 	$	34,000	 
	Fiscal Quarter ending 9/30/05
	 	$	34,500	 
	Fiscal Quarter ending 12/31/05
	 	$	34,500	 
	Fiscal Quarter ending 3/31/06
	 	$	35,000	 
	Fiscal Quarter ending 6/30/06
	 	$	35,000	 
	Fiscal Quarter ending 9/30/06
	 	$	35,000	 
	Fiscal Quarter ending 12/31/06
	 	$	35,000	 
	Fiscal Quarter ending 3/31/07
	 	$	35,000	 
	Fiscal Quarter ending 6/30/07
	 	$	35,000	 
	Fiscal Quarter ending 9/30/07
	 	$	35,000	 
	Fiscal Quarter ending 12/31/07
	 	$	35,000	 
	Fiscal Quarter ending 3/31/08
	 	$	35,000	 
	Fiscal Quarter ending 6/30/08
	 	$	35,000	 
	Fiscal Quarter ending 9/30/08
	 	$	35,000	 
	Fiscal Quarter ending 12/31/08
	 	$	35,000	 
	Fiscal Quarter ending 3/31/09
	 	$	35,000	 

2. If after the Effective Date but prior to September 30, 2004, Borrower
closes on either (i) Target One Acquisition and Target Two Acquisition;
or (ii) Target Three Acquisition; or (iii) Target Four Investment and
either (i) or (ii), and the Administrative Agent makes an Advance or
Advances under the Aggregate Loan Commitments as contemplated hereby in
order for Borrower to consummate such Approved Acquisition or, if
applicable, Approved Acquisitions, then the following schedule shall,
without more,

Borrower’s Initials           

 

 

be substituted for the Schedule as currently set forth in Section 16.6
and shall be effective as of the last day of quarter in which such
Approved Acquisition, or, if applicable, Approved Acquisitions, closed.

	 	 	 	 	 
	 	 	Minimum EBITDA*
	Period
	 	($000 omitted)

	Fiscal Quarter ending 3/31/04
	 	$	29,500	 
	Fiscal Quarter ending 6/30/04
	 	$	30,000	 
	Fiscal Quarter ending 9/30/04
	 	$	31,000	 
	Fiscal Quarter ending 12/31/04
	 	$	31,000	 
	Fiscal Quarter ending 3/31/05
	 	$	32,000	 
	Fiscal Quarter ending 6/30/05
	 	$	32,500	 
	Fiscal Quarter ending 9/30/05
	 	$	32,500	 
	Fiscal Quarter ending 12/31/05
	 	$	33,000	 
	Fiscal Quarter ending 3/31/06
	 	$	33,500	 
	Fiscal Quarter ending 6/30/06
	 	$	33,500	 
	Fiscal Quarter ending 9/30/06
	 	$	33,500	 
	Fiscal Quarter ending 12/31/06
	 	$	33,500	 
	Fiscal Quarter ending 3/31/07
	 	$	33,500	 
	Fiscal Quarter ending 6/30/07
	 	$	33,500	 
	Fiscal Quarter ending 9/30/07
	 	$	33,500	 
	Fiscal Quarter ending 12/31/07
	 	$	33,500	 
	Fiscal Quarter ending 3/31/08
	 	$	33,500	 
	Fiscal Quarter ending 6/30/08
	 	$	33,500	 
	Fiscal Quarter ending 9/30/08
	 	$	33,500	 
	Fiscal Quarter ending 12/31/08
	 	$	33,500	 
	Fiscal Quarter ending 3/31/09
	 	$	33,500	 

Borrower’s Initials           

 

 

EXHIBIT 20.4.1

FORM

ASSIGNMENT AND ACCEPTANCE

DATED:               ,            

     Loan Agreement effective           (as it may be amended, modified,
restated or replaced from time to time, the Loan Agreement) among TALX
Corporation (referred to herein both collectively and individually as
Borrower), LaSalle Bank National Association, as Administrative Agent
(Administrative Agent) and the Lenders as defined in the Loan Agreement
(Lenders). Terms defined in the Loan Agreement are used herein with the same
meaning.

The Assignor and the Assignee referred to on Schedule 1 agree as follows:

	1.	 	The Assignor hereby sells and assigns to the Assignee, without recourse
and without representation or warranty except as expressly set forth
herein, and the Assignee hereby purchases and assumes from the Assignor,
an interest in and to the Assignor’s rights and obligations under the Loan
Agreement and the other Loan Documents as of the date hereof equal to the
percentage interest specified on Schedule 1 of all outstanding rights and
obligations under the Loan Agreement and the other Loan Documents. After
giving effect to such sale and assignment, the Assignee’s Commitment and
the amount of the Loans owing to the Assignee will be as set forth on
Schedule 1.
	 
	2.	 	The Assignor (i) represents and warrants that it is the legal and
beneficial owner of the interest being assigned by it hereunder and that
such interest is free and clear of any adverse claim; (ii) makes no
representation or warranty and assumes no responsibility with respect to
any statements, warranties or representations made in or in connection
with the Loan Documents or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Loan Documents or
any other instrument or document furnished pursuant thereto; (iii) makes
no representation or warranty and assumes no responsibility with respect
to the financial condition of any Covered Person or the performance or
observance by any Covered Person of any of its obligations under the Loan
Documents or any other instrument or document furnished pursuant thereto;
and (iv) attaches the Note  held by the Assignor and requests
that Administrative Agent exchange such Note  for new Note
 payable to the order of the Assignee in an amount equal to the
Commitment assumed by the Assignee pursuant hereto and to the Assignor in
an amount equal to the Commitment retained by the Assignor, if any, as
specified on Schedule 1.
	 
	3.	 	The Assignee (i) confirms that it has received a copy of the Loan
Agreement, together with copies of the financial statements referred to in
Section thereof and such other documents and information as it has deemed
appropriate to make its own credit analysis and decision to enter into
this Assignment and Acceptance; (ii) agrees that it will, independently
and without reliance upon Administrative Agent, the Assignor or any other
Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Agreement; (iii) confirms that
it is an Eligible Assignee; (iv) appoints and

Borrower’s Initials           

 

 

	 	 	authorizes Administrative Agent to take such action as agent on its
behalf and to exercise such powers and discretion under the Loan
Agreement as are delegated to Administrative Agent by the terms thereof,
together with such powers and discretion as are reasonably incidental
thereto; (v) agrees that it will perform in accordance with their terms
all of the obligations that by the terms of the Loan Agreement are
required to be performed by it as a Lender; and (vi) attaches any U.S.
Internal Revenue Service or other forms required under Section
	 
	4.	 	Following the execution of this Assignment and Acceptance, it will be
delivered to Administrative Agent for acceptance and recording by
Administrative Agent. The effective date for this Assignment and
Acceptance (the Effective Date) shall be the date of acceptance hereof by
Administrative Agent, unless otherwise specified on Schedule 1.
	 
	5.	 	Upon such acceptance and recording by Administrative Agent, as of the
Effective Date, (i) the Assignee shall be a party to the Loan Agreement
and, to the extent provided in this Assignment and Acceptance, have the
rights and obligations of a Lender thereunder and (ii) the Assignor shall,
to the extent provided in this Assignment and Acceptance, relinquish its
rights and be released from its obligations under the Loan Agreement.
	 
	6.	 	Upon such acceptance and recording by Administrative Agent, from and
after the Effective Date, Administrative Agent shall make all payments
under the Loan Agreement and the Notes in respect of the interest assigned
hereby (including, without limitation, all payments of principal, interest
and commitment fees with respect thereto) to the Assignee. The Assignor
and Assignee shall make all appropriate adjustments in payments under the
Loan Agreement and the Notes for periods prior to the Effective Date
directly between themselves.
	 
	7.	 	This Assignment and Acceptance shall be governed by, and construed in
accordance with, the laws of the State of Illinois.
	 
	8.	 	This Assignment and Acceptance 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 Schedule 1 to this Assignment and
Acceptance by telecopier shall be effective as delivery of a manually
executed counterpart of this Assignment and Acceptance.

     IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1
to this Assignment and Acceptance to be executed by their officers thereunto
duly authorized as of the date specified thereon.

Borrower’s Initials           

 

 

SCHEDULE 1

to

ASSIGNMENT AND ACCEPTANCE

Percentage interest assigned:             %

Assignee’s Commitment:         $           

Aggregate outstanding principal

amount of Loans assigned:      $           

Principal amount of Note payable to Assignee:       $            

Principal amount of Note payable to Assignor:       $            

Effective Date (if other than date of

acceptance by Administrative Agent):         *                       ,            

	 	 	 	 	 
	

	 	[NAME OF ASSIGNOR], as Assignor
	 
	 	 	 	 
	

	 	By: 
	

	

	 	Title: 
	

	

	 	Dated:, 	

	 
	 	 	 	 
	

	 	[NAME OF ASSIGNEE], as Assignee
	 
	 	 	 	 
	

	 	By: 	

	

	 	Title: 	

	 
	 	 	 	 
	

	 	Applicable Lending Office:

Borrower’s Initials           

i

 

*This date should be no earlier than five Business Days after the delivery of
this Assignment and Acceptance to Administrative Agent.

Accepted [and Approved]

This              day of                 ,         

LaSalle Bank National Association, as Administrative Agent

	 	 	 
	By:

	

	Title:

	

Accepted [and Approved]**

This              day of                 ,         

TALX Corporation,

	 	 	 
	By:

	 	

	Title:

	 	

**Approval of Borrower required only if there is no Existing Default

Borrower’s Initialsexv10w2

 

Ex 10.2

GUARANTY OF TALX EMPLOYER SERVICES, LLC

     THIS GUARANTY OF TALX EMPLOYER SERVICES, LLC, a Missouri limited liability
company, (the “Guaranty”) dated this 31st day of
March, 2004
is executed and delivered by undersigned (“Guarantor”) in favor of LASALLE BANK
NATIONAL ASSOCIATION, a national banking association, as Administrative Agent
(“Agent”) pursuant to the terms of the Loan Agreement (hereinafter defined).
Furthermore, the term “Loan Documents” and all other capitalized terms used
herein but not otherwise defined herein have the meanings given them in the
Loan Agreement.

WITNESSETH:

     WHEREAS, TALX Corporation, a Missouri corporation (“Borrower”) obtained
an Aggregate Commitment in the principal amount of up to Forty Million and
00/100 Dollars ($40,000,000.00) pursuant to that certain Loan Agreement dated
March 27, 2002 entered into by the Borrower, Agent, and Southwest Bank of St.
Louis (“Southwest”) (the “Initial Loan Agreement”), as amended by that First
Amendment to Loan Agreement dated July 29, 2002 among Borrower, Agent and
Southwest (the “First Amendment”), as further amended by that Second Amendment
to Loan Agreement dated January 27, 2003 among Borrower, Agent, and Southwest
(the “Second Amendment”), as further amended by that Third Amendment to Loan
Agreement dated June 30, 2003 among Borrower, Agent and Southwest (the “Third
Amendment”).

     WHEREAS, in order to refinance the indebtedness outstanding under the
Initial Loan Agreement, First Amendment, Second Amendment and Third Amendment,
Borrower, Agent, Southwest and the Lenders named therein (hereto collectively
the “Lenders”) are entering into that Amended and Restated Loan Agreement of
even date herewith increasing the Aggregate Commitment to an amount up to
Eighty Three Million and 00/100 Dollars ($83,000,000.00)(the “Amended and
Restated Loan Agreement”) (collectively, the Initial Loan Agreement as so
amended by the First Amendment, Second Amendment, Third Amendment, and the
Amended and Restated Loan Agreement and as may be amended, restated, and
modified from time to time, is referred to herein as the “Loan Agreement”),
pursuant to which loans made to Borrower thereunder (each a “Loan” and
collectively “Loans”) are evidenced by certain Revolving Notes and Term Notes
dated of even date therewith in the aggregate amount of up to Eighty Three
Million and 00/100 Dollars ($83,000,000.00) and which are all due and payable
at the times and pursuant to the terms and conditions of the Loan Agreement
(collectively, the Revolving Notes and Term Notes as each may be amended,
restated or modified from time to time, are referred to herein as the “Notes”).

     WHEREAS, Agent and Lenders acknowledge that portions of the Loans are
being used to finance the purchase of certain assets by Guarantor;

     WHEREAS, this Guaranty is to be secured by, inter alia, a Security
Agreement of even date herewith executed by Guarantor, reference to which is
made for the rights of the Agent for the ratable benefit of the Lenders to
accelerate the maturity of the Notes or Obligations (hereinafter defined)
guaranteed hereby, and Guarantor, by execution of this Guaranty, hereby

 

 

acknowledges receipt of copies of all Loan Documents and represents it has
read and understands such Loan Documents; and

     WHEREAS, Guarantor executes this Guaranty in the favor of Agent for the
ratable benefit of the Lenders in order to induce Lenders to make Loans and any
other advances, loans, extensions of credit, future advances or additional
loans, directly or indirectly, to Borrower and to grant to Borrower such
renewals, extensions, forbearances, releases of collateral or other
relinquishments of rights as Lender may deem advisable.

     NOW, THEREFORE, in consideration of the execution and delivery by the
Lenders of the Loan Agreement, and for other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged by the Guarantor,
the Guarantor hereby agrees with the Agent as follows:

     1. ABSOLUTE GUARANTY. The Guarantor unconditionally, absolutely, and
irrevocably guarantees, for the ratable benefit of Lenders and for the ratable
benefit of each and every present and future holder or holders of the Notes
(all hereinafter called the “Lender”), the full and prompt payment to the
Lender at maturity (whether at the stated maturities thereof, or by
acceleration or otherwise) of the present or future indebtedness of the
Borrower evidenced by the Loan Agreement and the Notes, together with all other
present or future obligations and liabilities of the Borrower under and
pursuant to the Loan Documents as the same or any thereof may from time to time
be amended, restated and modified (all of which indebtedness, obligations and
liabilities being herein called the “Indebtedness Hereby Guaranteed”) and the
full and prompt performance and observance by the Borrower of all of the
warranties, covenants and agreements provided by the Loan Documents to be
performed and observed by the Borrower (herein called the “Obligations”); and
to this end the Guarantor covenants and agrees to take all such actions
necessary to enable the Borrower to observe and perform and to refrain from
taking any action which would prevent the Borrower from observing and
performing each and every Obligation.

     2. CONTINUING GUARANTY. This Guaranty shall be a continuing guaranty,
shall be binding upon the Guarantor, its successors and assigns, and shall
remain in full force and effect, and shall not be discharged, impaired or
affected by (a) the existence or continuance of any obligation on the part of
the Borrower on or with respect to the Indebtedness Hereby Guaranteed, or any
Obligation under the Loan Documents; (b) the power or authority (or any lack
thereof) of the Borrower to issue the Notes or to execute, acknowledge or
deliver any other Loan Document; (c) the validity or invalidity of the Notes or
any other Loan Document; (d) any defense whatsoever that the Borrower may or
might have to the payment of the Indebtedness Hereby Guaranteed or to the
performance or observance of any of the terms, provisions, covenants and
agreements contained in the Notes or other Loan Documents; (e) any limitation
or exculpation of liability on the part of the Borrower; (f) the dissolution of
the Borrower; (g) the transfer by the Borrower of all or any part of the
property referred to in the Loan Documents to any other corporation, person or
entity; (h) any sale, pledge, surrender, indulgence, alteration, substitution,
exchange, change in, additions to, renewals of, extension, modification or
other disposition of any of the Indebtedness Hereby Guaranteed, or any of the
Obligations, all of which the Lender is hereby expressly authorized to make
from time to time without notice to the Guarantor, or to anyone; (i) the
acceptance by the Lender of any security for, or other guarantors

 

 

upon, all or any part of the Indebtedness Hereby Guaranteed or
Obligations; (j) any failure, neglect or omission on the part of the Lender to
realize or protect any of the Indebtedness Hereby Guaranteed or any collateral
or security therefor, or to exercise any lien upon or right or appropriation of
any moneys, credits or property of the Borrower toward the liquidation of the
Indebtedness Hereby Guaranteed or any application of payments or credits
thereon; (k) any right, claim or offset which Guarantor may have against the
Borrower; or (l) any defense (other than the payment of the Indebtedness Hereby
Guaranteed and performance of the Obligations, in accordance with its terms)
that the Guarantor may or might have to its respective undertakings,
liabilities and obligations hereunder, each and every such defense being hereby
waived by the Guarantor; it being understood and agreed that this Guaranty, and
the undertakings, liabilities and obligations of the Guarantor hereunder shall
not be affected, discharged, impaired or varied by any act, omission or
circumstance whatsoever (whether or not specifically enumerated above) except
the due and punctual payment of the Indebtedness Hereby Guaranteed and
performance of the Obligations, and then only to the extent thereof; or (m) any
understanding or agreement that any other person, firm or corporation was or is
to execute this Guaranty or the Notes or any of the Loan Documents.

     3. NO OBLIGATION TO PROCEED AGAINST BORROWER. The Lender shall have the
exclusive right to determine how, when and what application of payments and
credits, if any, shall be made on the Indebtedness Hereby Guaranteed or the
Obligations, or any part thereof; and in order to hold the Guarantor liable
hereunder there shall be no obligation on the part of the Lender, or anyone, at
any time, to proceed against the Borrower, its properties or estates, or any
one of them, or to proceed against any other guarantors, or to resort to any
collateral, security, property, liens, or other rights or remedies whatsoever.

     4. BANKRUPTCY OF GUARANTOR. The bankruptcy of Guarantor shall not
terminate this Guaranty, whether or not a claim against the estate of such
bankrupt Guarantor is made, and shall not terminate this Guaranty as to the
estate of the bankrupt Guarantor.

     5. NO OBLIGATION TO PROCEED AGAINST ANY GUARANTOR. The Lender shall have
the right to enforce this Guaranty against Guarantor for and to the full amount
of the Indebtedness Hereby Guaranteed, with or without enforcing or attempting
to enforce the Loan Documents against Borrower or any other guaranty against
any other guarantor, or any security for the obligation of any of them, and
whether or not proceedings or steps are pending or have been taken or have been
concluded to enforce or otherwise realize upon the obligation or security of
the Borrower or any other guarantor, or any of them; and the payment of any
amount or amounts by Guarantor, pursuant to its obligations hereunder, shall
not in any way entitle such Guarantor, either at law, in equity, or otherwise,
to any right, title, or interest (whether by way of subrogation or otherwise)
in and to any of the Indebtedness Hereby Guaranteed, or any principal or
interest payments theretofore, then, or thereafter at any time made by the
Borrower or any other guarantor, or any of them, on the Indebtedness Hereby
Guaranteed, or made by anyone on behalf of the Borrower, or in and to any
security therefor, unless and until the full amount of the Indebtedness Hereby
Guaranteed has been fully paid.

     6. TIME OF ESSENCE. Time is of the essence of this Guaranty and of the
performance of each term, covenant and provision hereof.

 

 

     7. WAIVER OF NOTICE. All diligence in collection or protection, and all
presentment, demand, protest and/or notice of dishonor, protest, and of default
and of non-payment and of the creation and existence of any and all of the
Indebtedness Hereby Guaranteed or of performance or non-performance of any
Obligation, and of any security and collateral therefor, and of the acceptance
of this Guaranty, and of any and all extensions of credit and indulgence
hereunder, are expressly waived by the Guarantor.

     8. TRANSFER OF DEBT BY LENDER. The Lender may, without any notice
whatsoever to anyone, sell, assign, or transfer all or any part of the
Indebtedness Hereby Guaranteed, or grant participations in the Indebtedness
Hereby Guaranteed, and in any and every such event, each and every immediate
and successive assignee, transferee, holder of or participant in all or any
part of the Indebtedness Hereby Guaranteed shall have the right to enforce this
Guaranty by suit or otherwise, for the benefit of such assignee, transferee,
holder or participant, as fully as if such assignee, transferee, holder or
participant were herein by name specifically given such rights, powers, and
benefits.

     9. SUCCESSORS AND ASSIGNS. This Guaranty, and each and every part hereof,
shall be binding upon the Guarantor, successors and assigns of Guarantor, and
shall inure to the pro rata benefit of each and every future holder of the
Notes or any interest in the Indebtedness Hereby Guaranteed pursuant to the
terms of the Loan Agreement.

     10. DELIVERY OF NOTE. The delivery of the Notes or any other promissory
note evidencing the Indebtedness Hereby Guaranteed for value to any person
shall, without more, constitute conclusive evidence of the acceptance hereof,
and of the reliance hereon by each and every from time to time holder of the
Note or any interest in the Indebtedness Hereby Guaranteed.

     11. MASCULINE, FEMININE, PLURAL. As used herein, the masculine gender
shall include the feminine, and the singular case shall include the plural and
the plural the singular, wherever the same may be applicable.

     12. BANKRUPTCY OF BORROWER. Notwithstanding any modification, discharge,
or extension of the Indebtedness Hereby Guaranteed or any amendment,
modification, stay or cure of the Lender’s rights under the Notes, or other
Loan Documents which may occur in any bankruptcy or reorganization case or
proceeding affecting the Borrower, whether permanent or temporary, and whether
or not assented to by the Lender, the Guarantor hereby agrees that it shall be
obligated hereunder to pay the Indebtedness Hereby Guaranteed and discharge the
other Obligations in accordance with the terms of the Notes, and other Loan
Documents and the terms of this Guaranty as in effect on the date hereof.

     Guarantor understands and acknowledges that by virtue of this Guaranty it
has specifically assumed any and all risks of a bankruptcy or reorganization
case or proceeding affecting the Borrower; and, as an example and not by way of
limitation, a subsequent modification of the Notes in any reorganization case
concerning the Borrower shall not affect the obligation of the Guarantor to pay
the indebtedness evidenced by the Note and all other Indebtedness Hereby
Guaranteed in accordance with its original terms.

 

 

     13. RETURN OF PAYMENT. Guarantor hereby agrees that if at any time all or
any part of any payment theretofore applied by Lender to any Indebtedness
Hereby Guaranteed is rescinded or returned by Lender for any reason whatsoever
(including, without limitation, the insolvency, bankruptcy, liquidation or
reorganization of any party), the Indebtedness Hereby Guaranteed shall, for the
purposes of this Guaranty, be deemed to have continued in existence to the
extent of such payment, notwithstanding such application by Lender, and this
Guaranty shall continue to be effective or be reinstated, as the case may be,
as to the Indebtedness Hereby Guaranteed, all as though such application by
Lender had not been made.

     14. COSTS AND EXPENSES. In addition to all other amounts payable by
Guarantor hereunder, Guarantor hereby agrees to pay to Lender upon demand any
and all costs and expenses, including court costs and reasonable attorney’s
fees which the Lender may incur (a) in enforcing the obligations of the
Guarantor hereunder; or (b) in preparing to collect or enforce the Indebtedness
Hereby Guaranteed and the Obligations or in collecting or enforcing the same,
in each case whether or not suit or action is filed.

     15. PARTIAL INVALIDITY. If any term of this Guaranty, or the application
thereof to a person or circumstance, shall to any extent be declared invalid or
unenforceable, the remainder of this Guaranty, or the application of such term,
to persons or circumstances other than those to which it is invalid or
unenforceable shall not be affected thereby and each term of this Guaranty
shall remain valid and enforceable to the fullest extent permitted by
applicable law. Notwithstanding anything in this Guaranty to the contrary, the
right to recover against the Guarantor under this Guaranty shall not exceed $1
less than the amount which would render any of the Guarantor’s obligations
under this Guaranty void or voidable under applicable law, including fraudulent
conveyance law.

     16. ASSIGNMENT OF GUARANTY. Lender may without prior notice assign this
Guaranty in whole or in part but shall notify Guarantor after such assignment.

     17. SETOFF. In addition to all liens upon, and rights of setoff against
the moneys, securities, or other property of Guarantor given to Lender by law,
Lender shall have a lien upon and a right of setoff against all moneys,
securities, and other property of Guarantor now or hereafter in the possession
of or on deposit with Lender, whether held in a general or special account or
deposit, or for safekeeping or otherwise; and every such lien and right of
setoff may be exercised so long as there is any Existing Default under the Loan
Agreement without demand upon or notice to Guarantor. No lien or right of
setoff shall be deemed to have been waived by any act or conduct on the part of
Lender, or by any neglect to exercise such right of setoff or to enforce such
lien, or by any delay in so doing, and every right of setoff and lien shall
continue in full force and effect until such right of setoff or lien is
specifically waived or released by an instrument in writing executed by Lender.

     18. SUBORDINATION OF DEBT OF BORROWER. Any indebtedness of Borrower now
or hereafter held by Guarantor, whether secured or unsecured, and if secured,
the security for same, is hereby subordinated to the indebtedness of Borrower
to Lender; and, so long as there is any Existing Default under the Loan
Agreement, such indebtedness of Borrower to Guarantor shall be collected,
enforced, and received by Guarantor as trustee for Lenders and be paid over to
Lenders on account of the indebtedness of Borrower to Lenders but without

 

 

reducing or affecting in any manner the liability of Guarantor under the
other provisions of this Guaranty.

     19. AUTHORIZATION OF BORROWER’S DEBT. It is not necessary for Lender to
inquire into the authority or powers of Borrower or the officers, directors,
partners, or agents acting or purporting to act on Borrower’s behalf, and any
indebtedness made or created in reliance upon the professed exercise of such
powers shall be guaranteed hereunder.

     20. GOVERNING LAW; NO THIRD PARTY RIGHTS. This Guaranty is to be governed
by and construed and interpreted in accordance with the internal Laws of the
State of Illinois applicable to contracts made and to be performed wholly
within such state, without regard to choice or conflicts of law principles.
This Guaranty is solely for the benefit of the Guarantor and Agent and the
Lenders and their respective successors and assigns pursuant to the terms of
the Loan Agreement, and no other person has any right, benefit, priority or
interest under, or because of the existence of, this Guaranty.

     21. WAIVER OF DEFENSES. Guarantor does hereby expressly waive any and all
rights, remedies, benefits, or defenses which might otherwise be available to a
guarantor or surety under the laws of the State of Illinois, and any defense
based upon a claim that Lender’s demands or claims against the undersigned are
not compensable because the fair market value of the security for the
Indebtedness Hereby Guaranteed, in its state of completion as of the date of
such demands or claims, was at least equal to the Indebtedness Hereby
Guaranteed.

     22. INCONSISTENCY. To the extent the provisions of this Guaranty conflict
with the provisions of the Loan Agreement, the Loan Agreement shall govern.

     23. HEADINGS. The headings of this Guaranty are inserted for convenience
of reference only and shall not be applied in construing the provisions of this
Guaranty.

     24. JOINT AND SEVERAL. The agreements, obligations, warranties and
representations or Guarantor hereunder are joint and several if Guarantor is
more than one person or entity, and are independent of the obligations of
Borrower.

     25. CUMULATIVE REMEDIES. The rights and remedies herein provided are
cumulative and may be exercised singly or concurrently, and are not exclusive
of any rights or remedies provided by law.

     26. CHOICE OF FORUM. SUBJECT ONLY TO THE EXCEPTION IN THE NEXT SENTENCE,
GUARANTOR AND AGENT HEREBY AGREE TO THE EXCLUSIVE JURISDICTION OF THE FEDERAL
COURT OF THE NORTHERN DISTRICT OF ILLINOIS AND THE STATE COURTS OF ILLINOIS
LOCATED IN COOK COUNTY AND WAIVES ANY OBJECTION BASED ON VENUE OR FORUM NON
CONVENIENS WITH RESPECT TO ANY ACTION INSTITUTED THEREIN, AND AGREES THAT ANY
DISPUTE CONCERNING THE RELATIONSHIP BETWEEN AGENT AND GUARANTOR OR THE CONDUCT
OF ANY OF THEM IN CONNECTION WITH THIS GUARANTY OR OTHERWISE SHALL BE HEARD
ONLY IN THE COURTS DESCRIBED ABOVE. NOTWITHSTANDING THE FOREGOING: (1) AGENT
SHALL HAVE THE RIGHT TO BRING ANY ACTION OR

 

 

PROCEEDING AGAINST GUARANTOR OR ITS PROPERTY IN ANY COURTS OF ANY OTHER
JURISDICTION DEEMED NECESSARY OR APPROPRIATE IN ORDER TO REALIZE ON THE
COLLATERAL, OR OTHER SECURITY FOR THE LOAN OBLIGATIONS, AND (2) GUARANTOR AND
AGENT ACKNOWLEDGE THAT ANY APPEALS FROM THE COURTS DESCRIBED IN THE IMMEDIATELY
PRECEDING SENTENCE MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE THOSE
JURISDICTIONS.

     27. WAIVER OF JURY TRIAL. GUARANTOR AND AGENT HEREBY WAIVE ANY RIGHT TO
TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION (1) ARISING UNDER
THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, OR (2) IN ANY WAY CONNECTED WITH OR
RELATED OR INCIDENTAL TO THE DEALINGS OF THE GUARANTOR AND AGENT OR EITHER OF
THEM IN RESPECT OF THIS GUARANTY OR ANY OTHER LOAN DOCUMENT, OR THE
TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR
HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE.
GUARANTOR AND AGENT AGREE AND CONSENT THAT ANY SUCH CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT EITHER
MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS GUARANTY WITH ANY COURT AS
WRITTEN EVIDENCE OF THE CONSENT OF THE GUARANTOR OR AGENT TO THE WAIVER OF
THEIR RIGHT TO TRIAL BY JURY.

     28. SERVICE OF PROCESS. GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF ANY
AND ALL PROCESS UPON IT AND CONSENTS THAT ALL SUCH SERVICE OF PROCESS MAY BE
MADE BY REGISTERED MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO GUARANTOR AT ITS
ADDRESS SET FORTH ON THE SIGNATURE PAGE HERETO, AND SERVICE SO MADE SHALL BE
DEEMED TO BE COMPLETED FIVE (5) DAYS AFTER THE SAME SHALL HAVE BEEN SO
DEPOSITED IN THE U.S. MAILS; OR AT AGENT’S OPTION, BY SERVICE UPON CT
CORPORATION, WHICH GUARANTOR IRREVOCABLY APPOINTS AS GUARANTOR’S AGENT FOR THE
PURPOSE OF ACCEPTING SERVICE OF PROCESS WITHIN THE STATE OF ILLINOIS. AGENT
SHALL PROMPTLY FORWARD BY REGISTERED MAIL ANY PROCESS SO SERVED UPON SAID AGENT
TO GUARANTOR AT ITS ADDRESS ON THE SIGNATURE PAGES HERETO. NOTHING IN THIS
SECTION SHALL AFFECT THE RIGHT OF AGENT TO SERVE LEGAL PROCESS IN ANY OTHER
MANNER PERMITTED BY LAW.

(signatures on following page)

 
 

 

     IN WITNESS WHEREOF, the Guarantor has signed and sealed this Guaranty on
the day and year first written above.

	 	 	 	 	 
	

	 	TALX EMPLOYER SERVICES, LLC, a 

Missouri limited liability company
	 
	 	 	 	 
	

	 	By:	/s/ L. Keith Graves
	 

	 	 	

	

	 	Name:	L. Keith Graves
	 

	 	 	

	

	 	Title:	CFO
	 

	 	 	

	 
	 	 	 	 
	

	 	WITH A NOTICE ADDRESS OF:
	 
	 	1850 Borman Court
	

	 	

	 
	 	St. Louis, MO 63146
	

	 	

	 
	 	 
	

	 	

	 
	 	 	 	 
	

	 	AND COPY TO:
	

	 	Karen W. Fries, Esq.
	

	 	Bryan Cave LLP
	

	 	One Metropolitan Square, Suite 3600
	

	 	St. Louis, MO 63102-2750

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