Document:

exv10w1

 

Exhibit
10.1

PROQUEST COMPANY

WAIVER

Re:

Note Purchase Agreement Dated as of October 1, 2002 

and

Note Purchase Agreement Dated as of January 31, 2005 

and

Credit Agreement dated as of January 31, 2005

and

Credit Agreement dated as of May 2, 2006

and

Waiver and Omnibus Amendment Agreement dated as of May 2, 2006

Dated as of October 20, 2006

ProQuest Company

777 Eisenhower Parkway

Ann Arbor, MI 48106

Ladies and Gentlemen:

     Reference is made to (a) that certain Credit Agreement dated as of January 31, 2005 (as
amended, restated or otherwise modified prior to the date hereof and as amended or otherwise
modified from time to time in accordance with the terms thereof, the “2005 Credit Agreement”) among
ProQuest Company, a Delaware corporation (the “Company”), the financial institutions that are or
may from time to time become parties thereto (together with their respective successors and
assigns, the “Bank Lenders”) and LaSalle Bank Midwest National Association, f/k/a Standard Federal
Bank, N.A., as administrative agent for the Bank Lenders (in such capacity, the “Bank Agent”, and
in its capacity as collateral agent for the Bank Lenders, the Noteholders and the 2006 Lenders
under the Intercreditor Agreement, together with its successors and assigns in such capacity, the
“Collateral Agent”), (ii) that certain Note Purchase Agreement dated as of October 1, 2002, between
the Company and the respective purchasers which are a party thereto, as amended by that certain
First Amendment to Note Purchase Agreement dated as of January 31, 2005 (as amended, restated or
otherwise modified prior to the date hereof and as amended or otherwise modified from time to time
in accordance with the terms thereof, the “2002 Note Purchase Agreement”), (iii) that certain Note
Purchase Agreement dated as of January 31, 2005 (as amended, restated or otherwise modified prior
to the date hereof and as amended or otherwise modified from time to time in accordance with the
terms thereof, the “2005 Note Purchase Agreement” and together with the 2002 Note Purchase
Agreement, collectively, the “Note Purchase Agreements”), between the Company and the respective
purchasers which are a party thereto, (iv) that certain Credit Agreement dated as of May 2, 2006
(as amended or otherwise modified from time to time in accordance with the terms thereof, the “2006
Credit Agreement”), among the Company, the institutions that are or may

 

 

from time to time become parties thereto (together with their respective successors and
assigns, the “2006 Lenders”), and ING Investment Management, LLC, as administrative agent for the
2006 Lenders, and (v) the Waiver and Omnibus Amendment Agreement dated as of May 2, 2006 (the
“Waiver and Omnibus Amendment Agreement”) among the Company, the Subsidiary Guarantors, the
Collateral Agent, the Bank Lenders, the Noteholders, and the 2006 Lenders (such parties, other than
the Company and the Subsidiary Guarantors, collectively, the “Creditor Parties”). All capitalized
terms used herein that are not otherwise defined herein have the meanings given to such terms in
the Waiver and Omnibus Amendment Agreement.

     The Company has advised the Creditor Parties that the Company desires to sell all of the stock
of its Subsidiary, ProQuest Business Solutions Inc., on terms and conditions substantially the same
as those set forth in the form of [Stock and Asset Purchase Agreement (the “Draft Stock Purchase
Agreement”) attached as Exhibit A to this Waiver (the “Sale”)], and the Company has
requested that the Required Creditor Group waive the provisions of Sections 2.1(c) of the covenants
set forth on Exhibit E to the Waiver and Omnibus Amendment Agreement, which are pursuant to
the terms thereof incorporated into each of the Note Purchase Agreements and Credit Agreements, to
the extent necessary (but only to the extent necessary) to permit the Company (a) to enter into an
agreement substantially on the terms and conditions set forth in the Draft Stock Purchase Agreement
(the “Execution Waiver”), and (b) to consummate such Sale (the “Consummation Waiver”).

     Upon execution of this Waiver by the Company and by Noteholders constituting the Required
Greater Noteholder Group and Bank Lenders constituting the Required Bank Lenders, which together
will constitute the Required Creditor Group, (a) the Execution Waiver is granted, and (b)
conditioned on satisfaction of the Waiver Conditions, the Consummation Waiver is granted. As used
herein, the “Waiver Conditions” means that (i) the Sale is consummated on or before December 31,
2006, (ii) all of the Proceeds from the Sale other than the Permitted Deductions shall be paid by
the purchaser directly to the Collateral Agent, by wire transfer of immediately available funds in
accordance with wire transfer instructions to be provided by the Collateral Agent for such purpose,
for allocation, application and distribution as Secured Obligation Distributions in accordance with
the terms of the Intercreditor Agreement and (iii) an amendment to the Waiver and Omnibus Amendment
Agreement is executed by the Company, the Subsidiary Guarantors and the Creditor Parties in
accordance with the terms of the commitment letter with respect to such amendment, dated as of the
date hereof. As used herein, the “Permitted Deductions” means the categories of expenses of sale
and other payments to be made by the Company that are listed on Schedule A attached to this
Waiver in amounts that do not exceed, with respect to each such category, the lesser of (x) the
actual expenses for such category that have been documented to the satisfaction of the Required
Greater Noteholder Group and the Required Bank Lenders, and (y) the respective maximum amounts for
such category that are listed on Schedule A attached to this Waiver, but not any other
categories of expenses or payments.

     Whether or not this Waiver is approved by the Required Creditor Group and thereby takes
effect, the Company agrees to pay on the date hereof all reasonable out-of-pocket expenses of the
Noteholders and Bank Lenders in connection with the preparation, negotiation, execution and
delivery of this Waiver (the “Noteholder and Bank Lender Expenses”), including, but not

2

 

limited to, the reasonable fees and disbursements of the Noteholders’ Special Counsel, Bingham
McCutchen LLP, and the Bank Lenders’ special counsel, Dickinson Wright PLLC.

     Except to the extent expressly provided herein, the execution, delivery and effectiveness of
this Waiver shall not be deemed (i) to operate as a waiver of any right, power or remedy of any of
the Creditor Parties under the Note Purchase Agreements, the Credit Agreements, the Waiver and
Omnibus Amendment Agreement, or any other agreement or instrument, or constitute a waiver of any
provision thereunder, (ii) except to the limited extent set forth herein, to operate as a waiver of
the covenants set forth in Section 2.1 of Exhibit E to the Waiver and Omnibus Amendment
Agreement (as incorporated into the Note Purchase Agreements and Credit Agreements), or (iii) to
prejudice any rights which any of the Creditor Parties now have or may have in the future under or
in connection with the Note Purchase Agreements, the Credit Agreements, the Waiver and Omnibus
Amendment Agreement, or any other documents or instruments referred to therein or executed in
connection therewith. All terms and conditions of the Note Purchase Agreements, the Credit
Agreements, and the Waiver and Omnibus Amendment Agreement shall remain unchanged and in full force
and effect, except as, and to the extent, set forth in this Waiver.

     To induce the Noteholders and Bank Lenders to enter into this Waiver, the Company represents
and warrants to the Noteholders and Bank Lenders, on and as of the date this Waiver takes effect,
that (a) no Default or Event of Default has occurred and is continuing, and (b) no Default or Event
of Default will occur by virtue of the Company’s consummating the Sale and performing its
obligations in connection therewith.

     This Waiver and all acceptances hereof may be executed simultaneously in any number of
counterparts, each of which shall be deemed an original, with the same effect as if the signatures
thereto and hereto were upon the same instrument. A facsimile or other electronic transmission of
an executed counterpart of this Waiver shall have the same effect as the original executed
counterpart.

     THIS WAIVER SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES
SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW YORK, EXCLUDING ANY CHOICE-OF-LAW PRINCIPLES OF
THE LAW OF SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A JURISDICTION OTHER THAN
SUCH STATE

     If you are in agreement with the foregoing, please sign the form of acceptance on the enclosed
counterpart of this Waiver and return the same to us in care of the Noteholders’ Special Counsel,
One State Street, Hartford, Connecticut 06103, Attention: Daniel Papermaster (Facsimile:
(860-240-2800). Upon (a) the execution and delivery to Noteholders’ Special Counsel on or before
October 20, 2006 of this Waiver by the Company and the Required Credit Group, and (b) payment by
the Company of the Noteholder and Bank Lender Expenses, the waiver set forth herein shall be deemed
to be effective.

[Remainder of page intentionally left blank. Next page is signature page.]

3

 

Very truly yours,

LASALLE BANK MIDWEST NATIONAL ASSOCIATION,

as Bank Agent, as Collateral Agent and as a Bank Lender

	 	 	 	 	 
	By:
	 	/s/ Ronald R. Valentine	 	 
	Name:

	 	Ronald R. Valentine

	 	 
	Title:
	 	First Vice President	 	 

HARRIS N.A.

	 	 	 	 	 
	By:
	 	/s/ Lana Powers	 	 
	Name:

	 	Lana Powers

	 	 
	Title:
	 	Vice President	 	 

BANK OF AMERICA, N.A.

	 	 	 	 	 
	By:
	 	/s/ John W. Woodiel III	 	 
	Name:

	 	John W. Woodiel III

	 	 
	Title:
	 	Senior Vice President	 	 

NATIONAL CITY BANK OF THE MIDWEST

	 	 	 	 	 
	By:
	 	/s/ Robert A. Henry	 	 
	Name:

	 	Robert A. Henry

	 	 
	Title:
	 	Vice President	 	 

LLOYDS TSB BANK PLC

	 	 	 	 	 
	By:
	 	/s/ S.J. Taylor	 	 
	Name:

	 	S.J. Taylor 

	 	 
	Title:
	 	SVP & CCO 	 	 

U.S. BANK NATIONAL ASSOCIATION

	 	 	 	 	 
	By:
	 	/s/ Joseph L. Svehla 	 	 
	Name:

	 	Joseph L. Svehla 

	 	 
	Title:
	 	Vice President 	 	 

ALLIED IRISH BANKS PLC

	 	 	 	 	 
	By:
	 	/s/ Shreya Shah 	 	 
	Name:

	 	Shreya Shah 

	 	 
	Title:
	 	Vice President	 	 
	 
	By:
	 	/s/ Margaret Brennan 	 	 
	Name:

	 	Margaret Brennan 

	 	 
	Title:
	 	Senior Vice President	 	 

[Signature Page to October, 2006 Proquest PBS Waiver ]

 

 

VAN KAMPEN SENIOR LOAN FUND

By: Van Kampen Asset Management

	 	 	 	 	 
	By:
	 	/s/ Christina Jamieson 	 	 
	Name:

	 	Christina Jamieson 

	 	 
	Title:
	 	Executive Director	 	 

VAN KAMPEN SENIOR INCOME TRUST

By: Van Kampen Asset Management

	 	 	 	 	 
	By:
	 	/s/ Christina Jamieson 	 	 
	Name:

	 	Christina Jamieson 

	 	 
	Title:
	 	Executive Director 	 	 

CREDIT SUISSE INTERNATIONAL

	 	 	 	 	 
	By:
	 	/s/ Irina	 	 
	Name:

	 	Irina

	 	 
	Title:
	 	Vice President	 	 

	 	 	 	 	 
	By:
	 	/s/ Allison Wilkinson 	 	 
	Name:

	 	Allison Wilkinson 

	 	 
	Title:
	 	Assistant Vice President Operations 	 	 

FERNWOOD FOUNDATION FUND LLC

By: Intermarket Corporation

	 	 	 	 	 
	By:
	 	/s/ David B. Forer 	 	 
	Name:

	 	David B. Forer 

	 	 
	Title:
	 	Managing Director 	 	 

FERNWOOD ASSOCIATES LLC

By: Intermarket Corporation

	 	 	 	 	 
	By:
	 	/s/ David B. Forer 	 	 
	Name:

	 	David B. Forer 

	 	 
	Title:
	 	Managing Director 	 	 

FERNWOOD RESTRUCTURINGS LTD.

	 	 	 	 	 
	By:
	 	/s/ David B. Forer 	 	 
	Name:

	 	David B. Forer 

	 	 
	Title:
	 	Director 	 	 

[Signature Page to October, 2006 Proquest PBS Waiver ]

 

 

FIFTH THIRD BANK, EASTERN MICHIGAN

	 	 	 	 	 
	By:
	 	/s/ Thomas J. Fischer 	 	 
	Name:

	 	Thomas J. Fischer 

	 	 
	Title:
	 	Vice President 	 	 

ING INVESTMENT MANAGEMENT LLC,

as Administrative Agent for the 2006 Lenders

	 	 	 	 	 
	By:
	 	/s/ Gregory R. Addicks 	 	 
	Name:

	 	Gregory R. Addicks 

	 	 
	Title:
	 	Vice President 	 	 

	 	 	 	 	 
	By:
	 	/s/ Christopher P. Lyons 	 	 
	Name:

	 	Christopher P. Lyons 

	 	 
	Title:
	 	Senior Vice President 	 	 

RELIASTAR LIFE INSURANCE COMPANY

ING LIFE INSURANCE AND ANNUITY COMPANY

By: ING Investment Management LLC, as Agent

	 	 	 	 	 
	By:
	 	/s/ Gregory R. Addicks 	 	 
	Name:

	 	Gregory R. Addicks 

	 	 
	Title:
	 	Vice President 	 	 

	 	 	 	 	 
	By:
	 	/s/ Christopher P. Lyons 	 	 
	Name:

	 	Christopher P. Lyons 

	 	 
	Title:
	 	 Senior Vice President 	 	 

METROPOLITAN LIFE INSURANCE COMPANY

	 	 	 	 	 
	By:
	 	/s/ C. Scott Inglis 	 	 
	Name:

	 	C. Scott Inglis 

	 	 
	Title:
	 	Managing Director 	 	 

METROPOLITAN TOWER LIFE INSURANCE COMPANY

By: Metropolitan Life Insurance Company, its Investment Manager

	 	 	 	 	 
	By:
	 	/s/ C. Scott Inglis 	 	 
	Name:

	 	C. Scott Inglis 

	 	 
	Title:
	 	Vice President 	 	 

[Signature Page to October, 2006 Proquest PBS Waiver ]

 

 

METLIFE INVESTORS INSURANCE COMPANY

By: Metropolitan Life Insurance Company, its Investment Manager

	 	 	 	 	 
	By:
	 	/s/ C. Scott Inglis 	 	 
	Name:

	 	C. Scott Inglis 

	 	 
	Title:
	 	Managing Director 	 	 

METLIFE INSURANCE COMPANY OF CONNECTICUT

	 	 	 	 	 
	By:
	 	/s/ C. Scott Inglis 	 	 
	Name:

	 	C.
Scott Inglis 

	 	 
	Title:
	 	Vice President 	 	 

JOHN HANCOCK LIFE INSURANCE COMPANY

	 	 	 	 	 
	By:
	 	/s/ Michael J. Tiberii 	 	 
	Name:

	 	Michael J. Tiberii 

	 	 
	Title:
	 	Director 	 	 

JOHN HANCOCK VARIABLE LIFE INSURANCE COMPANY

	 	 	 	 	 
	By:
	 	/s/ Michael J. Tiberii 	 	 
	Name:

	 	Michael J. Tiberii 

	 	 
	Title:
	 	Authorized Signatory 	 	 

JOHN HANCOCK LIFE INSURANCE COMPANY (U.S.A.)

	 	 	 	 	 
	By:
	 	/s/ Michael J. Tiberii 	 	 
	Name:

	 	Michael J. Tiberii 

	 	 
	Title:
	 	Authorized Signatory 	 	 

MANULIFE INSURANCE COMPANY

	 	 	 	 	 
	By:
	 	/s/ Michael J. Tiberii 	 	 
	Name:

	 	Michael J. Tiberii 

	 	 
	Title:
	 	Authorized Signatory 	 	 

JOHN HANCOCK INSURANCE COMPANY OF VERMONT

	 	 	 	 	 
	By:
	 	/s/ Michael J. Tiberii 	 	 
	Name:

	 	Michael J. Tiberii 

	 	 
	Title:
	 	Authorized Signatory 	 	 

[Signature Page to October, 2006 Proquest PBS Waiver ]

 

 

PRINCIPAL LIFE INSURANCE COMPANY

By: Principal Global Investors, LLC, a Delaware limited liability company,
      
its authorized signatory

	 	 	 	 	 
	By:
	 	/s/ Joellen J. Watts 	 	 
	Name:

	 	Joellen J. Watts 

	 	 
	Title:
	 	Counsel 	 	 

	 	 	 	 	 
	By:
	 	/s/ Debra Svoboda EPP 	 	 
	Name:

	 	Debra Svoboda EPP 

	 	 
	Title:
	 	Counsel 	 	 

RGA REINSURANCE COMPANY

By: Principal Global Investors, LLC, a Delaware limited liability company,
      
its authorized signatory

	 	 	 	 	 
	By:
	 	/s/ Joellen J. Watts 	 	 
	Name:

	 	Joellen J. Watts 

	 	 
	Title:
	 	Counsel 	 	 

	 	 	 	 	 
	By:
	 	/s/ Debra Svoboda EPP 	 	 
	Name:

	 	Debra Svoboda EPP 

	 	 
	Title:
	 	Counsel 	 	 

AVIVA LIFE INSURANCE COMPANY

By: Principal Global Investors, LLC, a Delaware limited liability company,
      
its authorized signatory

	 	 	 	 	 
	By:
	 	/s/ Joellen J. Watts 	 	 
	Name:

	 	Joellen J. Watts 

	 	 
	Title:
	 	Counsel 	 	 

	 	 	 	 	 
	By:
	 	/s/ Debra Svoboda EPP 	 	 
	Name:

	 	Debra Svoboda EPP 

	 	 
	Title:
	 	Counsel 	 	 

COMERICA BANK & TRUST, NATIONAL ASSOCIATION,

Trustee to the Trust created by Trust Agreement dated October 1, 2002

	 	 	 	 	 
	By:
	 	/s/ Celeste Ludwig 	 	 
	Name:

	 	Celeste Ludwig 

	 	 
	Title:
	 	AVP - Trust Administrator 	 	 

[Signature Page to October, 2006 Proquest PBS Waiver ]

 

 

IDS LIFE INSURANCE COMPANY

	 	 	 	 	 
	By:
	 	/s/ Thomas W. Murphy 	 	 
	Name:

	 	Thomas W. Murphy 

	 	 
	Title:
	 	Vice President - Investments 	 	 

IDS LIFE INSURANCE COMPANY OF NEW YORK

	 	 	 	 	 
	By:
	 	/s/ Thomas W. Murphy 	 	 
	Name:

	 	Thomas W. Murphy 

	 	 
	Title:
	 	Vice President - Investments 	 	 

CONNECTICUT GENERAL LIFE INSURANCE COMPANY

By: CIGNA Investments, Inc. (authorized agent)

	 	 	 	 	 
	By:
	 	/s/ Lori E. Hopkins 	 	 
	Name:

	 	Lori E. Hopkins 

	 	 
	Title:
	 	Vice President 	 	 

LIFE INSURANCE COMPANY OF NORTH AMERICA

By: CIGNA Investments, Inc. (authorized agent)

	 	 	 	 	 
	By:
	 	/s/ Lori E. Hopkins 	 	 
	Name:

	 	Lori E. Hopkins 

	 	 
	Title:
	 	Vice President 	 	 

BANC OF AMERICA SECURITIES LLC

	 	 	 	 	 
	By:
	 	/s/ Jonathan M. Barnes 	 	 
	Name:

	 	Jonathan M. Barnes 

	 	 
	Title:
	 	Vice President 	 	 

THE GUARDIAN LIFE INSURANCE COMPANY OF AMERICA

	 	 	 	 	 
	By:
	 	/s/ Thomas M. Donohue 	 	 
	Name:

	 	Thomas M. Donohue 

	 	 
	Title:
	 	Managing Director 	 	 

THE GUARDIAN INSURANCE & ANNUITY COMPANY, INC.

	 	 	 	 	 
	By:
	 	/s/ Thomas M. Donohue 	 	 
	Name:

	 	Thomas M. Donohue 

	 	 
	Title:
	 	Managing Director 	 	 

[Signature Page to October, 2006 Proquest PBS Waiver ]

 

 

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA

	 	 	 	 	 
	By:
	 	/s/ Roi G. Chandy 	 	 
	Name:

	 	Roi G. Chandy 

	 	 
	Title:
	 	Director 	 	 

PACIFIC LIFE INSURANCE COMPANY

(Nominee: Mac & Co.)

	 	 	 	 	 
	By:
	 	/s/ Bernard J. Dougherty 	 	 
	Name:

	 	Bernard J. Dougherty 

	 	 
	Title:
	 	Assistant Vice President 	 	 

	 	 	 	 	 
	By:
	 	/s/ Cathy Schwartz 	 	 
	Name:

	 	Cathy Schwartz 

	 	 
	Title:
	 	Assistant Secretary 	 	 

REASSURE AMERICA LIFE INSURANCE COMPANY

By: Swiss Re Asset Management (Americas) Inc.

	 	 	 	 	 
	By:
	 	/s/ John H. DeMallie 	 	 
	Name:

	 	John H. DeMallie 

	 	 
	Title:
	 	Vice President 	 	 

SWISS RE LIFE & HEALTH AMERICA INC.

By: Swiss Re Asset Management (Americas) Inc.

	 	 	 	 	 
	By:
	 	/s/ John H. DeMallie 	 	 
	Name:

	 	John H. DeMallie 

	 	 
	Title:
	 	Vice President 	 	 

FORT DEARBORN LIFE INSURANCE COMPANY

By: Advantus Capital Management, Inc.

	 	 	 	 	 
	By:
	 	/s/ Thomas B. Houghton 	 	 
	Name:

	 	Thomas B. Houghton 

	 	 
	Title:
	 	Vice President 	 	 

FARM BUREAU LIFE INSURANCE COMPANY OF MICHIGAN

By: Advantus Capital Management, Inc.

	 	 	 	 	 
	By:
	 	/s/ Thomas B. Houghton 	 	 
	Name:

	 	Thomas B. Houghton 

	 	 
	Title:
	 	Vice President 	 	 

[Signature Page to October, 2006 Proquest PBS Waiver ]

 

 

THE OHIO CASUALTY INSURANCE COMPANY

	 	 	 	 	 
	By:
	 	/s/ Paul Gerard 	 	 
	Name:

	 	Paul Gerard 

	 	 
	Title:
	 	Senior Vice President 	 	 

SECURITY FINANCIAL LIFE INSURANCE CO.

	 	 	 	 	 
	By:
	 	/s/ Victor Weber 	 	 
	Name:

	 	Victor Weber 

	 	 
	Title:
	 	Senior Director - Investments 	 	 

NATIONAL BENEFIT LIFE INSURANCE COMPANY

By: Conning Asset Management Company, its Investment Manager

	 	 	 	 	 
	By:
	 	/s/ Robert M. Mills 	 	 
	Name:

	 	Robert M. Mills 

	 	 
	Title:
	 	Senior Vice President 	 	 

PRIMERICA LIFE INSURANCE COMPANY

By: Conning Asset Management Company, its Investment Manager

	 	 	 	 	 
	By:
	 	/s/ Robert M. Mills 	 	 
	Name:

	 	Robert M. Mills 

	 	 
	Title:
	 	Senior Vice President 	 	 

Accepted and Agreed:

PROQUEST COMPANY

	 	 	 	 	 
	By:
	 	/s/ Richard Surratt 	 	 
	Name:

	 	Richard Surratt 

	 	 
	Title:
	 	Senior Vice President and CFO 	 	 

[Signature Page to October, 2006 Proquest PBS Waiver ]

 

 

SCHEDULE A

LIST OF PERMITTED DEDUCTIONS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Maximum Amount Permitted to be	 
	Category	 	included in Permitted Deductions	 
	 	1.	 	 	Investment banker fees
	 	$	7,500,000	 
	 	 	 	 	 
	 	 	 	 
	 	2.	 	 	Transaction costs (legal and other closing fees)
	 	$	4,000,000	 
	 	 	 	 	 
	 	 	 	 
	 	3.	 	 	Transfer to I&L UK to cover existing overdrafts
and required working capital
	 	$	8,000,000	 
	 	 	 	 	 
	 	 	 	 
	 	4.	 	 	Amounts to resolve UK pension issues
	 	$	5,600,000	 
	 	 	 	 	 
	 	 	 	 
	 	5.	 	 	Retirement benefit plan obligation to PBS employees
	 	$	3,100,000	 
	 	 	 	 	 
	 	 	 	 
	 	6.	 	 	PBS annual bonus
	 	$	2,500,000	 
	 	 	 	 	 
	 	 	 	 
	 	7.	 	 	Quarterly sales bonuses
	 	$	300,000	 
	 	 	 	 	 
	 	 	 	 
	 	8.	 	 	Transaction sales incentives bonuses
	 	$	1,500,000	 
	 	 	 	 	 
	 	 	 
	 	 	 	 	 
	 	 	 	 
	 	 	Total
	 	$	32,500,000	 

Schedule A-1

 

 

EXHIBIT A

[FORM OF STOCK AND ASSET PURCHASE AGREEMENT]

Attached.

Schedule A-1exv10w2

 

Exhibit
10.2

October 20, 2006

ProQuest Company

777 Eisenhower Parkway

Ann Arbor, Michigan 48106-1346

			
	Re:	 	Waiver and Omnibus Amendment Agreement dated as of May 2, 2006 (the “Waiver”) among ProQuest
Company, a Delaware corporation (the “Company”), the subsidiary guarantors party thereto, the
Noteholders party thereto, the Bank Lenders party thereto, the 2006 Lenders party thereto, LaSalle
Bank Midwest National Association, as Administrative Agent for the Bank Lenders, and LaSalle Bank
Midwest National Association, as Collateral Agent.

Gentlemen:

     The Company has requested the financing and modifications to the Waiver as described in the
attached Waiver Extension Term Sheet (the “Term Sheet”). The undersigned hereby confirms its
commitment to agree to provide the financing (in the percentage set forth opposite its name of the
Superpriority Commitments) and make the modifications to the Waiver as described in the Term Sheet,
subject only to (a) the preparation, execution and delivery of a reasonably acceptable amendment
and other loan documents incorporating substantially the terms and the conditions outlined in the
Term Sheet on or before November 30, 2006 and (b) there being no material adverse change in the
business, assets, liabilities, properties, condition (financial or otherwise) or results of
operations of the Company and its subsidiaries on a consolidated basis since the date hereof (as
disclosed to the undersigned by the Company as of the date hereof).

[Remainder of page intentionally left blank. Next page is signature page.]

 

 

Very truly yours,

	 	 	 	 	 
	[Lender]
	 	 	[        ]	%

	 	 	 	 	 
	By:

	 	 
	 	 
	 

	 	 	 	 
	Name:  	 	 
	Title:  	 	 

[Signature Page to Commitment Letter]

 

 

October 20, 2006

ProQuest Company

777 Eisenhower Parkway

Ann Arbor, Michigan 48106-1346

			
	Re:	 	Waiver and Omnibus Amendment Agreement dated as of May 2, 2006 (the “Waiver”) among ProQuest
Company, a Delaware corporation (the “Company”), the subsidiary guarantors party thereto, the
Noteholders party thereto, the Bank Lenders party thereto, the 2006 Lenders party thereto, LaSalle
Bank Midwest National Association, as Administrative Agent for the Bank Lenders, and LaSalle Bank
Midwest National Association, as Collateral Agent.

Gentlemen:

     The Company has requested the financing and modifications to the Waiver as described in the
attached Waiver Extension Term Sheet (the “Term Sheet”). The undersigned hereby confirms its
commitment to agree to provide the modifications to the Waiver as described in the Term Sheet,
subject only to (a) the preparation, execution and delivery of a reasonably acceptable amendment
and other loan documents incorporating substantially the terms and the conditions outlined in the
Term Sheet on or before November 30, 2006 and (b) there being no material adverse change in the
business, assets, liabilities, properties, condition (financial or otherwise) or results of
operations of the Company and its subsidiaries on a consolidated basis since the date hereof (as
disclosed to the undersigned by the Company as of the date hereof).

[Remainder of page intentionally left blank. Next page is signature page.]

 

 

Very truly yours,

	 	 	 	 	 
	[Lender]
	 	 	 	 

	 	 	 	 	 
	By:

	 	 
	 	 
	 

	 	 	 	 
	Name:  	 	 
	Title:  	 	 

[Signature Page to Commitment Letter]

 

 

October 19, 2006

LaSalle Bank Midwest National Association, as Administrative Agent

2600 W. Big Beaver Road

Troy, MI 48084

ProQuest Company

777 Eisenhower Parkway

Ann Arbor, Michigan 48106-1346

Re: Waiver and Omnibus Amendment Agreement dated as of May 2, 2006 (the “Waiver”) among
ProQuest Company, a Delaware corporation (the “Company”), the subsidiary guarantors party thereto,
the Noteholders party thereto, the Bank Lenders party thereto, the 2006 Lenders party thereto,
LaSalle Bank Midwest National Association, as Administrative Agent for the Bank Lenders, and
LaSalle Bank Midwest National Association, as Collateral Agent.

Gentlemen:

     The Company has requested the financing and modifications to the Waiver as described in the
attached Waiver Extension Term Sheet (the “Term Sheet”). The undersigned hereby confirms its
commitment to agree to provide the financing and make the modifications to the Waiver as described
in the Term Sheet, subject only to (a) the preparation, execution and delivery of a reasonably
acceptable amendment and other loan documents incorporating substantially the terms and the
conditions outlined in the Term Sheet on or before November 30, 2006 and (b) there being no
material adverse change in the business, assets, liabilities, properties, condition (financial or
otherwise) or results of operations of the Company and its subsidiaries on a consolidated basis
since the date hereof (as disclosed to the undersigned by the Company as of the date hereof). The
undersigned has, independently and without reliance upon the Administrative Agent and based on such
documents and information as it has deemed appropriate, made its own decision to enter deliver this
letter.

Very truly yours,

Bank Lender Name:

	 	 	 	 	 
	By:

	 	 
	 	 
	 

	 	 	 	 
	 

	 	 	 	 
	Title:  	 	 

 

 

			
	Confidential Discussion Term Sheet
	 	ProQuest Company

PROQUEST COMPANY

WAIVER EXTENSION TERM SHEET

DRAFT FOR SETTLEMENT DISCUSSION PURPOSES ONLY

October 2006

This term sheet is not intended to be, and shall not be construed as, a commitment by any party to
enter into the transactions described below, nor as an offer to purchase or sell any security
described herein. This term sheet has not been approved by the Creditors, the Administrative Agent
or the Collateral Agent, and does not set forth all material terms of a possible transaction, but
is intended merely to facilitate settlement discussions. All terms of this proposed term sheet
remain subject to change. No legally binding obligation of any party will arise unless and until
definitive documentation is executed. This term sheet is provided as a settlement document in
furtherance of settlement discussions. Accordingly, this term sheet is entitled to protection from
disclosure or use in any evidentiary proceeding pursuant to Federal Rule of Evidence 408 or any
other applicable rule of evidence. This term sheet does not constitute a solicitation of votes for
a plan of reorganization.

The following outlines the modifications to be implemented under an amendment (the “Waiver
Amendment”) as discussed among the parties to the Waiver and Omnibus Amendment Agreement dated as
of May 2, 2006 (the “Waiver”) among ProQuest Company, a Delaware corporation (the “Company”), the
subsidiary guarantors party thereto, the Noteholders party thereto, the Bank Lenders party thereto,
the 2006 Lenders party thereto, and LaSalle Bank Midwest National Association, as Collateral Agent.

1. Consent to the sale of the PBS Business Unit. The Creditor Parties consent to the sale
of the PBS Business Unit (the “PBS Sale”) subject to the each of the following conditions:

	 	a)	 	Minimum gross proceeds of $480,727,000 (the “Minimum Gross Proceeds”; please note that
this amount has been reduced because the line item below for monetized assets of
$19,150,000 (which line item reduced the amount of the Minimum Gross Proceeds used to pay
the debt owed to the Creditors) has been eliminated, as those liabilities will be assumed
by the buyer).
	 
	 	b)	 	Minimum net proceeds (i.e., the amount applied as payments on the 2002 Note Agreement,
the 2005 Note Agreement and the 2005 Credit Agreement) equal to the Minimum Gross Proceeds
minus the Permitted Payments, as defined below (the “Minimum Net Proceeds”).
	 
	 	c)	 	PBS Sale closed and debt of the Creditors paid down pro rata by the Minimum Net
Proceeds on or before December 31, 2006.
	 
	 	d)	 	Other terms of the PBS Sale reasonably satisfactory to the Required Creditor Group.
	 
	 	e)	 	PBS Sale proceeds shall not be used for any purpose other than payments on the 2002
Note Agreement, the 2005 Note Agreement and the 2005 Credit Agreement and the following
purposes (collectively, the “Permitted Payments”) as proposed by the Company, and will not
exceed the amount listed below by the Company for each such purpose:

	 	 	 	 	 	 	 	 	 
	i)	 	Investment banker fees:
	 	$	7,500,000	 
	ii)	 	Transaction costs (legal and other closing fees ):
	 	$	4,000,000	*
	iii)	 	Transfer to I&L UK to cover existing overdrafts and required working capital
	 	$	8,000,000	 
	iv)	 	Amounts to resolve UK pension issues:
	 	$	5,600,000	 

					
	 	 	 	 	 
	 
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	Confidential Discussion Term Sheet
	 	ProQuest Company

	 	 	 	 	 	 	 	 	 
	v)	 	Retirement benefit plan obligation to PBS employees
	 	$	3,100,000	 
	vi)	 	PBS annual bonus
	 	$	2,500,000	 
	vii)	 	Quarterly sales bonuses
	 	$	300,000	 
	viii)	 	Transaction sales incentives bonuses
	 	$	1,500,000	 
	 	 	 	 	Total:
	 	$	32,500,000	 

 

			
	*	 	Such amount is a cap on transaction costs; only actual documented transactional costs shall
be included in Permitted Payments.

2. Waiver Period Extension. The conditions to be satisfied to extend the Waiver Period
past November 30, 2006 in Section 2(c) of the Waiver shall be waived and the Outside Waiver
Termination Date shall be extended to March 15, 2007. All other terms of Section 2(b)(ii) of the
Waiver continue in full force and effect. To extend the Waiver Period beyond March 15, 2007,
requires the written consent of each Creditor.

3. Superpriority Facility. The Superpriority Commitments and Superpriority Advances will
be modified as follows:

	 	a)	 	Superpriority Commitments will be provided to the Company for the period from the
closing of the Waiver Amendment until March 15, 2007 in the following amounts:

	 	 	 	 	 	 	 	 	 
	i)	 	Waiver Amendment closing through December 31, 2006
	 	$	0	 
	ii)	 	January 1, 2007 through January 31, 2007
	 	$	14,999,000	 
	iii)	 	February 1, 2007 through February 28, 2007
	 	$	20,319,000	 
	iv)	 	March 1, 2007 to but excluding March 15, 2007
	 	$	34,304,000	*

 

			
	*	 	The Superpriority Advances will not be permitted to exceed $20,319,000 at any time after
February 28, 2007 unless, on or before February 28, 2007, the Company shall deliver the items
described in Sections 6(e) and (f) below.

	 	b)	 	The Bank Lenders as a group shall be responsible for providing their pro rata share of
the Superpriority Commitments and certain of the 2006 Lenders as a group shall be
responsible for providing their pro rata share of the Superpriority Commitments, with such
pro rata share of the Bank Lenders based on the Bank Lender’s share of the aggregate amount
of the existing Notes and the Existing Bank Advances and such pro rata share of such 2006
Lenders based on the Noteholders’ share of the aggregate amount of the existing Notes and
the Existing Bank Advances. The procedures for providing the Superpriority Commitments and
Superpriority Advances shall be reasonably acceptable to the Company and the Required
Creditor Group and similar to the procedures and terms previously applicable; without
limiting the foregoing, it is agreed that a reasonable fee shall be provided to each agent.
	 
	 	c)	 	In addition to other conditions, Superpriority Advances by the Bank Lender (“Bank
Superpriority Advances”) will not be made if the Administrative Agent receives written
notice of default under the Waiver from any Creditor at least one business day prior to the
date such Bank Superpriority Advances are to be made and such default has not been waived
in writing by the Required Creditor Group, provided that Bank Superpriority Advances not to
exceed $5,000,000 of the amount of the Bank Superpriority Commitments in the aggregate may
be made in the sole discretion of the Required Bank Lenders during such default. In
addition to other conditions, Superpriority Advances by certain of the 2006 Lenders
(“Noteholder Superpriority Advances”)

					
	 	 	 	 	 
	 
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	Confidential Discussion Term Sheet
	 	ProQuest Company

	 	 	 	will not be made if the Noteholder Agent receives written notice of default under the Waiver
from any Creditor at least one business day prior to the date such Noteholder Superpriority
Advances are to be made and such default has not been waived in writing by the Required
Creditor Group, provided that Noteholder Superpriority Advances not to exceed $5,000,000 of
the amount of the Noteholder Superpriority Commitments in the aggregate may be made in the
sole discretion of the 2006 Lenders holding a majority of the Noteholder Superpriority
Commitments during such default.
	 
	 	d)	 	The Company shall be required to make a prepayment of the Superpriority Advances (and,
if the Superpriority Advances are paid in full, pro rata to the 2002 Notes, the 2005 Notes
and the Existing Bank Advances), at the end of each week in an amount equal to the excess,
if any, of the aggregate amount of domestic cash and cash equivalents of the Company and
Guarantors in excess of $5,000,000. The increase of such $5,000,000 amount to $25,000,000
at the end of November, 2006, shall be in effect only until January 31, 2007, at which time
it will return to $5,000,000.

4. Fees. The Company shall pay the following fees:

	 	a)	 	A fee of 25 basis points payable on the closing date of the Waiver Amendment to each
Noteholder on the aggregate principal amount of its existing Notes.
	 
	 	b)	 	A fee of 25 basis points payable on the closing date of the Waiver Amendment to each
Bank Lender on the aggregate principal amount of its Existing Bank Advances.
	 
	 	c)	 	A fee of 50 basis points payable on the closing date of the Waiver Amendment to each
Bank Lender and each 2006 Lender on the highest principal amount of its Superpriority
Commitment at any time during the Waiver Period.

5. Interest. The interest rates shall be modified as follows:

	 	a)	 	On January 1, 2007, the interest rates on the existing Notes and Existing Bank Advances
shall be permanently increased by 25 basis points.
	 
	 	b)	 	On February 1, 2007, the interest rates on the existing Notes and Existing Bank
Advances shall be permanently increased by an additional 50 basis points
	 
	 	c)	 	On March 1, 2007, the interest rates on the existing Notes and Existing Bank Advances
shall be permanently increased by an additional 100 basis points.
	 
	 	d)	 	The initial interest rates on the Superpriority Advances shall be set at LIBOR + 400
bps or prime + 250 bps.
	 
	 	e)	 	On February 1, 2007, the interest rates on the Superpriority Advances shall be
increased by 50 basis points.
	 
	 	f)	 	On March 1, 2007, the interest rates on the Superpriority Advances shall be increased
by an additional 100 basis points.

					
	 	 	 	 	 
	 
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	 	October, 2006

 

 

			
	Confidential Discussion Term Sheet
	 	ProQuest Company

6. Covenants.

	 	a)	 	Monthly EBITDA financial covenant will be amended to (i) account for the variance in
restatement costs (resulting in a reduction of the monthly EBITDA covenants by
approximately $7,000,000 each month) and (ii) exclude the effects of the PBS Sale and any
expenses associated therewith, and account for any cost savings as a result of the PBS
Sale.
	 
	 	b)	 	The Company has indicated its intent to consider selling certain assets and to
refinance the Creditors. The Company will provide updates on the progress of any such
sales and refinancings and provide such other information regarding such sale in such form
and at such times as reasonably requested by the Bank Lenders or the Noteholders. The
proceeds of any such sale or refinancing shall be applied to the Superpriority Advances
(and shall permanently reduce the Superpriority Commitments by such amount), the existing
Notes and Existing Bank Advances and other obligations owing to the Creditors in the order
provided in the Intercreditor Agreement.
	 
	 	c)	 	All of the sale proceeds related to the PBS Sale allocable to the Company’s U.K.
subsidiaries shall be repatriated (except for that portion set forth in Section 1(e)(iv)
above) and included in the Minimum Gross Proceeds.
	 
	 	d)	 	By November 30, 2006, the Company shall deliver (i) audited 2005 financial statements
for PBS, and (ii) unaudited financial statements for the 2005 fiscal year and the 2006
third fiscal quarter for the Company and all of its subsidiaries. Failure to deliver any
such statements by such date shall not be an Event of Default but shall result in the
automatic and permanent additional pricing increase on the Existing Bank Advances and the
existing Notes of 25 bps.
	 
	 	e)	 	By January 15, 2007, the Company shall deliver its 2005 audited financial statements
certified by independent auditors of nationally recognized standing (recognizing that such
audit may not be “clean” and may include a going concern statement from such auditors
related to the terms of the Waiver, as amended). Failure to obtain such audit by such date
shall not be an Event of Default but shall result in the automatic and permanent additional
pricing increase on all debt of 100 bps.
	 
	 	f)	 	By January 31, 2007, the Company shall deliver written evidence reasonably acceptable
to the Required Creditor Group that it has agreed to the sale of certain assets, received
commitments from a reputable lending source or a combination thereof for the
paydown/refinancing of all remaining debt of the Creditors (including the Superpriority
Advances), which such agreements may contain customary closing conditions (but no due
diligence conditions), and indicate ready, willing and able counterparties to provide
sufficient net cash to the Company to retire all remaining debt of the Creditors (including
the Superpriority Advances) on or before March 15, 2007. Failure to deliver such documents
by such date shall not be an Event of Default but shall result in the automatic and
permanent additional pricing increase on all debt of 200 bps.
	 
	 	g)	 	All obligations owing to the Creditors shall be paid in full on March 15, 2007, and any
extension of such payment date shall require the written consent of all Creditors.

Each interest rate increase in this Section 6 and those in Section 5 is in addition to each
other such increase.

7. Events of Default. The following Events of Default shall be added:

	 	a)	 	The Company shall fail to close the PBS Sale on the terms described above on or before
December 31, 2006, which Event of Default may be waived with the written consent of the

					
	 	 	 	 	 
	 
	 	Page 4
	 	October, 2006

 

 

			
	Confidential Discussion Term Sheet
	 	ProQuest Company

	 	 	 	Required Creditor Group, provided that any (i) extension of the December 31, 2006 date for
the closing of the PBS Sale and (ii) any reduction in the Minimum Gross Proceeds applied to
the debt of the Creditors shall require the written consent of all Creditors.
	 
	 	b)	 	Payments in excess of $5,600,000 are made or required to made with respect to the UK
pension obligations prior to the sale of I&L, which Event of Default may be waived with the
written consent of the Required Creditor Group.
	 
	 	c)	 	Certain significant adverse events to be determined with respect the Company’s
securities litigation and other litigation or its tax or pension liability shall occur,
which Event of Default may be waived with the written consent of the Required Creditor
Group.

8. Conditions. The Waiver Amendment shall be effective upon the satisfaction of the
following conditions:

	 	a)	 	The signing of definitive purchase and sale agreements reasonably satisfactory to the
Creditors for the PBS sale.
	 
	 	b)	 	The Company shall have provided such evidence and opinions with respect to the UK
pension obligations and the ability to repatriate funds to the U.S. in connection with the
PBS Sale as reasonably requested by the Bank Lenders or the Noteholders.
	 
	 	c)	 	The Company shall have provided such updated information with respect to the status of
its 2005 audited financial statements as requested by the Bank Lenders or the Noteholders.
	 
	 	d)	 	The Company shall have provided all other documents, agreements and other due diligence
materials requested by the Bank Lenders or the Noteholders.
	 
	 	e)	 	The Company and each Guarantor shall have provided such resolutions, certificates,
opinions of counsel and other documents and agreements in connection herewith as requested
by the Bank Lenders or the Noteholders.
	 
	 	f)	 	The Company shall have paid all fees required to paid as of the closing of the Waiver
Amendment, including without limitation all fees to the Creditors and all attorney and
advisor fees.
	 
	 	g)	 	The Company and each Guarantor shall have released each of the Creditors (in their
capacities as creditors and as agent, as applicable), their employees, officers, directors,
agents and advisors from any and all claims arising prior to the effectiveness of the
Waiver Amendment in connection with or relating to the Creditor Loan Agreements and entered
into such other waivers as requested by the Bank Lenders or the Noteholders.
	 
	 	h)	 	The satisfaction of such other conditions requested by the Bank Lenders, the
Administrative Agent, the Collateral Agent or the Noteholders.

9. Waiver Reset. Notwithstanding anything herein to the contrary, if (i) the Company fails
to close the PBS Sale on the terms described above on or before December 31, 2006, (ii) as of
November 30, 2006, the Company has satisfied the conditions required under the Waiver (prior to the
Waiver Amendment) to extend the Waiver Period to January 31, 2007, and (iii) the Company terminates
the

					
	 	 	 	 	 
	 
	 	Page 5
	 	October, 2006

 

 

			
	Confidential Discussion Term Sheet
	 	ProQuest Company

Superpriority Facility described in Section 3 above prior to borrowing under such facility, then
(A) no Event of Default will occur as a result of such failure, (B) the Waiver Period will
terminate as of January 31, 2007, and (C) the interest rate increases contemplated hereby will not
take effect.

Except as otherwise provided herein, the Waiver shall remain in full force and effect and all other
material terms and conditions of the Waiver shall remain substantially unchanged, provided that
additional modifications of certain other terms to be determined by the Company and the Creditors
may be included in the Waiver Amendment.

*     *     *     *

This Term Sheet is confidential and, except for disclosure in connection with this transaction to
your board of directors, officers and professional advisors retained by you (each of whom shall be
made aware of the confidentiality hereof and agree thereto) or as may be required by law or court
order, may not be disclosed in whole or in part to any other person or entity. All capitalized
terms used herein that are not otherwise defined herein have the meanings given to such terms in
the Waiver.

					
	 	 	 	 	 
	 
	 	Page 6
	 	October, 2006

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