Document:

EXHIBIT 10.5

  
 Exhibit 10.5 
  
 FORM OF SUBSIDIARY GUARANTEE 
  
 GUARANTEE dated as of November 26, 2002, in favor of each person who is from time to time a holder of one or more of any of the (i) 5.95% Series A Senior Notes due 2005, (ii) 6.43% Series B Senior Notes due 2006 and (iii) 6.71%
Series C Senior Notes due 2007 (together with all notes delivered in substitution or exchange thereof, the “Notes”), issued by BearingPoint, Inc., a Delaware Corporation (the “Issuer”), in an initial aggregate
principal amount of up to $220,000,000 pursuant to the several Note Purchase Agreements dated as of November 26, 2002 (collectively, as amended, modified or supplemented from time to time, the “Note Purchase Agreement”) among the
Issuer and each of the Purchasers listed in Schedule A to the Note Purchase Agreement. 
  
 Section
1.  Definitions. Except as otherwise provided herein, terms defined in the Note Purchase Agreement are used herein as defined therein. 
  
 Section 2.  The Guarantee. 
  
 2.01 The
Guarantee. The Issuer will use the proceeds from the sale of the Notes to repay indebtedness and for general corporate purposes of the group of Persons comprised of the Issuer and its Subsidiaries, and the undersigned (individually, a
“Subsidiary Guarantor,” and collectively, the “Subsidiary Guarantors”) are Subsidiaries of the Issuer. For such valuable consideration, the receipt and sufficiency of which are hereby acknowledged, each Subsidiary
Guarantor hereby jointly and severally guarantees to each holder of a Note (each, a “holder”) (a) the prompt payment in full when due (whether at stated maturity, by acceleration, by optional prepayment or otherwise) of the
principal of, Make-Whole Amounts (if any), and interest on the Notes (including, without limitation, interest determined pursuant to Section 8.8 of the Note Purchase Agreement and interest on any overdue principal, Make-Whole Amount and, to the
extent permitted by applicable law, on any overdue interest) and all other amounts from time to time owing by the Issuer under the Note Purchase Agreement and under the Notes (including, without limitation, costs, expenses and taxes) and (b) the
prompt performance and observance by the Issuer of all covenants, agreements and conditions on its part to be performed and observed under the Note Purchase Agreement, in each case strictly in accordance with the terms thereof (such payment and
other obligations being herein collectively called the “Guaranteed Obligations”). Each Subsidiary Guarantor hereby further agrees that if the Issuer shall default in the payment of any of the Guaranteed Obligations, such Subsidiary
Guarantor will (x) promptly pay the same, without any demand or notice whatsoever, and that in the case of any extension of time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in full when due
(whether at extended maturity, by acceleration, by optional prepayment or otherwise) in accordance with the terms of such extension or renewal and (y) pay to any holder such amounts, to the extent lawful, as shall be sufficient to pay the
reasonable out-of-pocket costs and expenses of collection or of otherwise enforcing any of such holder’s rights under the Note Purchase Agreement to which such holder is a party, including, without limitation, reasonable counsel fees.

 

  
 All obligations of each Subsidiary Guarantor under this Section 2.01 shall
survive the transfer of any Note. 
  
 2.02  Obligations Unconditional.  (a) The
obligations of each Subsidiary Guarantor under Section 2.01 constitute a present and continuing guaranty of payment and not collectibility and are absolute, unconditional and irrevocable, irrespective of the value, genuineness, validity, regularity
or enforceability of the obligations of the Issuer under the Note Purchase Agreement, the Notes or any other agreement or instrument referred to herein or therein, or any substitution, release or exchange of any other guarantee of or security for
any of the Guaranteed Obligations, and, to the fullest extent permitted by applicable law, irrespective of any other circumstance whatsoever which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, it
being the intent of this Section 2.02 that the obligations of each Subsidiary Guarantor hereunder shall be absolute, unconditional and irrevocable, under any and all circumstances. Without limiting the generality of the foregoing, it is agreed that
the occurrence of any one or more of the following shall not alter or impair the liability of any Subsidiary Guarantor hereunder which shall remain absolute, unconditional and irrevocable as described above: 
  
 (1) any amendment or modification of any provision of the Note Purchase Agreement, the Notes or any assignment or transfer
thereof, including without limitation the renewal or extension of the time of payment of the Notes or the granting of time in respect of such payment thereof, or of any furnishing or acceptance of security or any additional guarantee or any release
of any security or guarantee (including any release of any other Subsidiary Guarantor) so furnished or accepted for the Notes; 
  
 (2) any waiver, consent, extension, granting of time, forbearance, indulgence or other action or inaction under or in respect of the Note Purchase Agreement or the Notes, or any exercise or
non-exercise of any right, remedy or power in respect hereof or thereof; 
  
 (3) any bankruptcy,
receivership, insolvency, reorganization, arrangement, readjustment, composition, liquidation or similar proceedings with respect to the Issuer or any other Person or the properties or creditors of any of them; 
  
 (4) the occurrence of any Default or Event of Default under, or any invalidity or any unenforceability of, or any
misrepresentation, irregularity or other defect in, the Note Purchase Agreement, the Notes or any other agreement; 
  
 (5) any transfer of any assets to or from the Issuer, including without limitation any transfer or purported transfer to the Issuer from any Person, any invalidity, illegality of, or inability to enforce, any such transfer
or purported transfer, any consolidation or merger of the Issuer with or into any Person, any change in the ownership of any shares of capital stock of the Issuer, or any change whatsoever in the objects, capital structure, constitution or business
of the Issuer; 

 
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 (6) any default, failure or delay, willful or otherwise, on the part of the Issuer or any other Person to
perform or comply with, or the impossibility or illegality of performance by the Issuer or any other Person of, any term of the Note Purchase Agreement, the Notes or any other agreement; 
  
 (7) any suit or other action brought by, or any judgment in favor of, any beneficiaries or creditors of, the Issuer or any other Person for any reason
whatsoever, including without limitation any suit or action in any way attacking or involving any issue, matter or thing in respect of the Note Purchase Agreement, the Notes or any other agreement; 
  
 (8) any lack or limitation of status or of power, incapacity or disability of the Issuer or any trustee or agent thereof;
or 
  
 (9) any other thing, event, happening, matter, circumstance or condition whatsoever, not in
any way limited to the foregoing. 
  
 (b) Each Subsidiary Guarantor hereby unconditionally waives diligence,
presentment, demand of payment, protest and all notices whatsoever and any requirement that any holder exhaust any right, power or remedy against the Issuer under the Note Purchase Agreement to which such holder is a party or the Notes or any other
agreement or instrument referred to herein or therein, or against any other Subsidiary Guarantor, or against any other Person under any other guarantee of, or security for, any of the Guaranteed Obligations. 
  
 (c) In the event that any Subsidiary Guarantor shall at any time pay any amount on account of the Guaranteed Obligations or take any other
action in performance of its obligations hereunder, such Subsidiary Guarantor shall not exercise any subrogation or other rights hereunder or under the Notes and such Subsidiary Guarantor hereby waives all rights it may have to exercise any such
subrogation or other rights, and all other remedies that it may have against the Issuer, in respect of any payment made hereunder unless and until the Guaranteed Obligations shall have been paid in full. If any amount shall be paid to any Subsidiary
Guarantor on account of any such subrogation rights or other remedy, notwithstanding the waiver thereof, such amount shall be received in trust for the benefit of the holders and shall forthwith be paid to the holders to be credited and applied upon
the Guaranteed Obligations, whether matured or unmatured, in accordance with the terms hereof. Each Subsidiary Guarantor agrees that its obligations under this Guarantee shall be automatically reinstated if and to the extent that for any reason any
payment (including payment in full) by or on behalf of the Issuer is rescinded or must be otherwise restored by any holder, whether as a result of any proceedings in bankruptcy or reorganization or otherwise, all as though such amount had not been
paid. 
  
 The guarantee in this Section 2 is a continuing guarantee and shall apply to the Guaranteed Obligations
whenever arising. Each default in the payment or performance of any of the Guaranteed Obligations shall give rise to a separate claim and cause of action hereunder, and
 

 
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separate claims or suits may be made and brought, as the case may be, hereunder as each such default occurs. 
  
 If an event permitting the acceleration of the maturity of the principal amount of the Notes shall at any time have occurred and be continuing, and such acceleration (and
the effect thereof on the Guaranteed Obligations) shall at such time be prevented by reason of the pendency against the Issuer or any other Person of a case or proceeding under a bankruptcy or insolvency law, each Subsidiary Guarantor agrees that,
for purposes of this Guarantee and its obligations hereunder, the maturity of the principal amount of the Notes shall be deemed to have been accelerated (with a corresponding effect on the Guaranteed Obligations) with the same effect as if the
holders had accelerated the same in accordance with the terms of the Note Purchase Agreement, and such Subsidiary Guarantor shall forthwith pay such principal amount, any interest thereon, any Make-Whole Amount, and any other amounts guaranteed
hereunder without further notice or demand. 
  
 Section 3.  Representations and
Warranties.  Each Subsidiary Guarantor represents and warrants to the Holders that: 
  
 3.01  Organization; Power and Authority.  Such Subsidiary Guarantor is duly organized, validly existing and in good standing under the laws of its jurisdiction of organization, and is duly qualified and is
in good standing in each jurisdiction in which such qualification is required by law, other than those jurisdictions as to which the failure to be so qualified or in good standing could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. Such Subsidiary Guarantor has the corporate or other requisite power and authority to execute and deliver this Guarantee and to perform the provisions hereof. 
  

3.02  Authorization, etc.  This Guarantee has been duly authorized by all necessary action on the part of such Subsidiary Guarantor, and
this Guarantee constitutes a legal, valid and binding obligation of such Subsidiary Guarantor enforceable against such Subsidiary Guarantor in accordance with its terms, except as such enforceability may be limited by (i) applicable
bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of whether such enforceability is considered in a
proceeding in equity or at law). 
  
 3.03  Compliance with Laws, Other Instruments,
etc.  The execution, delivery and performance by such Subsidiary Guarantor of this Guarantee will not (i) contravene, result in any breach of, or constitute a default under, or result in the creation of any Lien in respect of
any property of such Subsidiary Guarantor under, any indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate charter or by-laws or other organizational document, or any other agreement or instrument to which such
Subsidiary Guarantor is bound or by which such Subsidiary Guarantor or any of its properties may be bound or affected, (ii) conflict with or result in a breach of any of the terms, conditions or provisions of any order, judgment, decree, or
ruling of any court, arbitrator or Governmental Authority applicable to such Subsidiary Guarantor or
 

 
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(iii) violate any provision of any statute or other rule or regulation of any Governmental Authority applicable to such Subsidiary Guarantor. 
  
 3.04  Governmental Authorizations, etc.  No consent, approval or authorization of, or registration, filing or
declaration with, any Governmental Authority is required in connection with the execution, delivery or performance by such Subsidiary Guarantor of this Guarantee. 
  
 3.05.  Solvency.  Upon the execution and delivery hereof, such Subsidiary Guarantor will be solvent, will be able to pay its debts as they mature
and will have capital sufficient to carry on its business. 
  
 3.06.  Ranking.  All
liabilities of each Subsidiary Guarantor under this Guarantee constitute direct, unconditional and general obligations of such Subsidiary Guarantor and rank in right of payment either pari passu or senior to all other Indebtedness of
such Subsidiary Guarantor, except for such Indebtedness which is preferred as a result of being secured (but then only to the extent of such security). 
  
 Section 4.  Miscellaneous. 
  
 4.01  Amendments, Etc.  This Guarantee may be amended, and the observance of any term hereof may be waived (either retroactively or prospectively), with (and only with) the written consent of the Subsidiary
Guarantors and the Required Holders, except that no such amendment or waiver may, without the written consent of each holder affected thereby, amend any of Section 2.01, 2.02 or this Section 4.01. 
  
 4.02  Notices.  All notices and communications provided for hereunder shall be in writing and sent as provided
in Section 18 of the Note Purchase Agreement (i) if to any holder, to the address specified for such holder in the Note Purchase Agreement to which such holder is a party and (ii) if to any Subsidiary Guarantor, to the address for such Subsidiary
Guarantor set forth on the signature pages hereof. 
  
 4.03  Release.  Upon any notice by
the Issuer to each holder in respect of any Subsidiary Guarantor as provided in, and satisfying the requirements of, Section 9.6(c) of the Note Purchase Agreement, such Subsidiary Guarantor shall be released from its obligations under this
Guarantee. 
  
 4.04  Successors and Assigns.  All covenants and other agreements of each
Subsidiary Guarantor in this Guarantee shall bind its successors and assigns and shall inure to the benefit of the holders and their respective successors and assigns. 
  
 4.05  Severability.  Any provision of this Guarantee that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such
 

 
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prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not invalidate or render unenforceable such provision in any other jurisdiction. 

 
 4.06  Construction.  Each agreement contained herein shall be construed (absent express provision to
the contrary) as being independent of each other agreement contained herein, so that compliance with any one agreement shall not (absent such an express contrary provision) be deemed to excuse compliance with any other agreement. Where any provision
herein refers to action to be taken by any Person, or which such Person is prohibited from taking, such provision shall be applicable whether such action is taken directly or indirectly by such Person. 
  
 4.07  Expenses.  Each Subsidiary Guarantor shall indemnify each holder on demand in respect of all costs and
expenses (including reasonable legal fees) incurred by it in connection with the enforcement of this Guarantee or the preservation of the rights of such holder as a result of any breach by such Subsidiary Guarantor of its obligations hereunder.

  
 4.08  Governing Law.  This Guarantee 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 choice-of-law principles of such State that would require the application of the laws of a jurisdiction other than such State. 

 
 4.09  Counterparts; Additional Parties.  This Guarantee may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, and each such counterpart shall be deemed to be an original but all such counterparts shall together constitute one and the same Guarantee. At any time after the date of this
Guarantee, one or more additional persons or entities may become parties hereto by executing and delivering to the holders a counterpart of this Guarantee. Immediately upon such execution and delivery (and without any further action), each such
additional person or entity will become a party to, and will be bound by all of the terms of, this Guarantee. 

 
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 IN WITNESS WHEREOF, this Guarantee has been duly executed by the Subsidiary
Guarantors as of the day and year first above written. 
  
 [NAME OF SUBSIDIARY GUARANTOR]

  
 By              
 
Title: 
 Address: 
  
 [NAME OF SUBSIDIARY GUARANTOR]

  
 By              
 
Title: 
 Address: 

 
 7EXHIBIT 10.6

  
 Exhibit 10.6 
  
 SECOND AMENDMENT TO CREDIT AGREEMENT 
  
 THIS SECOND AMENDMENT TO CREDIT AGREEMENT (the “Second Amendment”) dated as of November 14, 2002, by and among BEARINGPOINT, INC. (formerly known as KPMG Consulting, Inc.), a Delaware corporation (the
“Borrower”), the Guarantors, the Banks, and PNC BANK, NATIONAL ASSOCIATION, as Administrative Agent. 
  
 W  I  T  N  E  S  S  E  T  H: 
  
 WHEREAS, the parties hereto are parties to that certain Credit Agreement dated as of May 29, 2002 (as amended by that certain Waiver And First Amendment To Credit Agreement dated as of August 20, 2002 and as hereafter
amended, supplemented, restated or modified, the “Credit Agreement”) by and among the Borrower, the Banks, the Guarantors, and PNC Bank, National Association, as Administrative Agent, and desire to further amend the terms thereof as
set forth herein; and 
  
 WHEREAS, the parties to the Credit Agreement desire to amend the Credit Agreement as set
forth herein; and 
  
 WHEREAS, defined terms used herein unless otherwise defined herein shall have the meanings
ascribed to them in the Credit Agreement. 
  
 NOW, THEREFORE, the parties hereto, in consideration of their mutual
covenants and agreements hereinafter set forth and intending to be legally bound hereby, covenant and agree as follows: 
  
 1.    Amendments to the Credit Agreement. 
  
 The parties hereby
amend the Credit Agreement as follows: 
  
 A. Existing Definitions.  

 
 The definitions of “EBITDA” and “Leverage Ratio” are hereby amended and restated to read as follows:

  
 “EBITDA for any Person during any period of determination shall mean the net income
of such Person, plus the sum of the following items to the extent deducted in arriving as such net income: (i) depreciation, (ii) amortization, (iii) interest expense, (iv) income tax expense, (v) FAS 142 charges incurred on or before March 31, 2002
and deducted in arriving at such net income, (vi) writedowns of the net book value of equity investments listed on Schedule 1.1(E) in an amount not to exceed $16,000,000 in the aggregate to the extent that such writedowns are deducted in arriving at
such net income, (vii) non-cash compensation expense recorded in connection with the issuance by the Borrower of shares of its common stock to key employees of acquired businesses pursuant to pre-acquisition commitments made by the Borrower to issue
such shares to such employees in an amount not to exceed $3,500,000 during any fiscal quarter, plus (viii) 

  
 any non-cash expense recorded in connection with the issuance of stock options to
employees (in the event that GAAP should require that such expenses be deducted from net income). 
  
 “Leverage Ratio shall mean as of any date of determination, the ratio of the amount in (A) to the amount in (B) below: 
  
 (A) the sum of the following items of the Borrower and its Subsidiaries existing as of such date: 
  
 (i) consolidated Indebtedness excluding obligations in respect of reimbursement agreements, letters of credit or bank guarantees supporting client
engagements (collectively, “Client Engagement Support Obligations”), plus 
  
 (ii) 20% of
Client Engagement Support Obligations, 
  
 TO 
  

(B) Consolidated EBITDA for the most recent four consecutive quarters ended on or prior to such date of determination.” 
  
 Clause (iv) of the definition of “Indebtedness” is hereby amended to read as follows: 
  
 “(iv) net liability arising (either directly or by way of a Guaranty) from exposure under any currency swap agreement, interest rate
swap, cap, collar or floor agreement or other hedging device unless such net liability results from a hedge which qualifies under GAAP (including all applicable rules promulgated by the Financial Accounting Standards Board), as amended, as a hedge
of foreign currency exposure or interest rate exposure, as calculated in accordance with GAAP;” 
  
 B. New Definitions.  
  
 The following new definitions are hereby added
to Section 1.1 in alphabetical order: 
  
 “Consolidated Total Assets shall mean, as of
any date, the total assets of the Borrower and its Subsidiaries which would be shown as assets on a consolidated balance sheet of the Borrower and its Subsidiaries as of such date prepared in accordance with GAAP, after eliminating all amounts
properly attributable to minority interests, if any, in the stock and surplus of Subsidiaries. 
  
 Subsequent Indebtedness shall mean, as of any date of determination (without duplication), the sum of all outstanding unsecured Indebtedness on such date of all Subsidiaries of the Borrower other than any such Indebtedness
incurred pursuant to Subsections (i) through (vi) and (viii) of Section 7.2.1 [Indebtedness].” 

 
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 C. Section 7.2.3 [Guaranties]. 

 
 Clause (i) of Section 7.2.3 [Guaranties] is hereby amended and restated to read as follows: 
  
 “(i) Guaranties of Indebtedness or other obligations of the Loan Parties not prohibited hereunder and Guaranties of
Indebtedness of Foreign Subsidiaries if such Guaranties are permitted under clauses (vi), (ix), (xii) or (xiii) of Section 7.2.4 [Loans and Investments],” 
  
 D. Section 7.2.4 [Loans and Investments].  
  
 New clauses (xii) and (xiii) are hereby added to Section 7.2.4, to immediately follow clause (xi), and to read as follows: 
  
 “(xii) Guarantees by the Borrower of loans made to Foreign Subsidiaries by Persons who are not Loan Parties or Subsidiaries of Loan Parties; provided that the total
amount of obligations guarantied under such Guarantees does not exceed $200,000,000; and 
  
 (xiii) Guarantees by the
Borrower of foreign currency hedge agreements entered into by Foreign Subsidiaries solely to hedge their foreign currency risks associated with intercompany loans made by or to such Foreign Subsidiaries to or by the Borrower or its other
Subsidiaries.” 
  
 E. Section 7.2.6 [Liquidations, Mergers, Consolidations, Acquisitions].
 
  
 The last paragraph of clause (vii)(b) of Section 7.2.6 [Liquidations, Mergers, Consolidations,
Acquisitions] which begins “In connection with calculations of the covenants in Sections 7.2.16 [Maximum Facility Usage] through 7.2.19 [Minimum Net Worth],” is hereby amended and restated to read as follows: 
  
 “In connection with such acquisition: 
  
 (A) Inclusion of Pre Acquisition Results of the Acquired Business. 
  
 (i) if the total consideration paid or given is greater than or equal to $50,000,000 and the acquisition was consummated after the date of this Second
Amendment, the Loan Parties shall include income statement and other cash flow statement items of the acquired Person or business for periods prior to the date of the acquisition in the computation of the covenants in Sections 7.2.16 [Maximum
Facility Usage] through 7.2.19 [Minimum Net Worth] both as of the date of such acquisition (reported in the applicable acquisition compliance certificate) and as of each quarter ending before or thereafter (reported in the quarterly Compliance
Certificates); and 
  
 (ii) if the total consideration paid or given is less than $50,000,000 or if
the acquisition was consummated prior to the date of this Second Amendment (but after the date of the Credit Agreement), the Loan Parties shall: 

 
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 (a) include income statement and other cash flow statement items
of the acquired Person or business for periods prior to the date of such acquisition in the computation of the covenants in Sections 7.2.16 [Maximum Facility Usage] through 7.2.19 [Minimum Net Worth] as of the date of such acquisition (reported in
the applicable acquisition compliance certificate for such acquisition) and 
  
 (b) exclude such
income statement and other cash flow statement items (referred to in clause (a) immediately above) in all quarterly computations of the covenants in Sections 7.2.16 [Maximum Facility Usage] through 7.2.19 [Minimum Net Worth] reported in quarterly
Compliance Certificates; 
  
 (B) Financial Statements of the Acquired Business; Pro Forma Statements and
Computations.  
  
 The Loan Parties shall deliver the following documents (i) with their
acquisition compliance certificate which they deliver under this Section 7.2.6(vii), and (ii) with each of their quarterly Compliance Certificates which they deliver following such acquisition (if the Loan Parties are required to include in such
quarterly computations of their financial covenants the income statement and other cash flow statement items of the acquired Person or business for periods prior to the date of such acquisition pursuant to clauses (A)(i) and (ii) of this Section
7.2.6(vii)(b) above): 
  
 (1) the pre-aquisition financial statements of such Person or business
(which shall not be older than 135 days prior to the date of such acquisition); 
  
 (2) pro forma
combined computations of the covenants in Sections 7.2.16 [Maximum Facility Usage] through 7.2.19 [Minimum Net Worth] and pro forma combined financial statements, in each case of the Loan Parties and the acquired business, and a certification to the
Administrative Agent for the benefit of the Banks that the Borrower has reviewed such financial statements and either (i) the assets, liabilities, shareholders equity, income and expenses and other components of such statements are computed
consistently with the corresponding items of the Borrower and its Subsidiaries in all material respects (subject to the adjustments described in Section 7.2.6.2 and Schedule 7.2.6), or (ii) to the extent there are differences in such computations
that result in covenant levels more favorable (and not less favorable) to Borrower than they would be if such differences did not exist, the Borrower shall adjust in its pro forma combined financial statements to eliminate such differences (subject
to the adjustments described in Section 7.2.6.2 and Schedule 7.2.6, to the extent the Permitted Acquisition is an Andersen Acquisition or an Acquired Andersen Business); and” 
  
 F. Section 7.2.15 [Negative Pledges Covenants].  
  
 Section 7.2.15 [Negative Pledges Covenants] of the Credit Agreement is hereby deleted and the words “Intentionally Omitted” are inserted in lieu thereof. 
  
 G. Section 7.2.18 [Adjusted Fixed Charge Coverage Ratio].  

 
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 Section 7.2.18 [Adjusted Fixed Charge Coverage Ratio] is hereby amended and
restated in its entirety to read as follows: 
  
 “The Loan Parties shall not at any time permit the ratio of the
amount in clause (i) below to the amount in clause (ii) below for the four quarters then ending, to be less than 1.25 to 1.0: 
  
 (i) Consolidated EBITDA plus rent expense, 
  
 TO 
  
 (ii) the sum of interest expense, rent expense, cash dividends, and scheduled principal payments on Indebtedness,
excluding in this clause (ii) the following: 
  
 (1) payments under this Agreement, 
  
 (2) payments under the PNC Receivables Purchase Facility, and 
  
 (3) any of the following payments under any revolving credit facility provided to a Foreign Subsidiary for working capital purposes or under the Revolving
Credit Facility dated August 21, 2002 (the “Bridge Loan”), between the Borrower, BearingPoint LLC, the guarantors referred to therein, the banks party thereto, JP Morgan Chase Bank, as the administrative agent, and J.P. Morgan Securities,
Inc., as the sole arranger and book runner, which is attached as Exhibit 10.31 on the Borrower’s Form 10-K filed on September 30, 2002: 
  
 (I) voluntary prepayments under such facility prior to maturity, or 
  
 (II) the scheduled payment of principal on the maturity date of such facility: 
  
 (A) to the extent that such payment is made from the proceeds of a replacement revolving credit working capital facility, 
  
 (B) in the case of the Bridge Loan, to the extent that such payment (which shall be due in December, 2002) is made from the proceeds of the proposed senior note offering of the Borrower or

  
 (C) if the maturity date of such facility is extended by mutual agreement of the parties thereto
prior to maturity, 
  
 but including in both clauses (i) and (ii) capitalized leases and cash taxes paid, with
respect to each item referred to in such clauses (i) and (ii).” 
  
 H. Section 7.2.20
[Subsequent Indebtedness].  
  
 A new Section 7.2.20 [Subsequent Indebtedness] is hereby added to the Credit
Agreement to follow immediately after Section 7.2.19 and to read as follows: 

 
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 “7.2.20 Subsequent Indebtedness. 

 
 The Borrower will not permit at any time Subsequent Indebtedness to exceed 10% of Consolidated Total Assets.”

  
 I. Amendments to Compliance Certificates.  
  
 The following exhibits to the Credit Agreement are hereby amended and restated in the forms attached hereto. Such exhibits are being
amended to reflect the changes to the Credit Agreement set forth in Sections 1(A) through 1(G) of this Second Amendment. 
  
 EXHIBIT 7.2.6    -    ACQUISITION COMPLIANCE CERTIFICATE 
 EXHIBIT
7.3.3    -    QUARTERLY COMPLIANCE CERTIFICATE 
  
 2.
Representations, Warranties and covenants.  
  
 The Loan Parties hereby represent, warrant and
covenant to the Banks as follows: 
  
 (a) The representations and warranties of Loan Parties contained in the Credit
Agreement are true and correct on and as of the date hereof with the same force and effect as though made by the Loan Parties on such date, except to the extent that any such representation or warranty expressly relates solely to a previous date in
which case such representations and warranties are true and correct as of such date; and 
  
 (b) The Loan Parties
are in compliance with all terms, conditions, provisions, and covenants contained in the Credit Agreement; and the execution, delivery, and performance of this Second Amendment have been duly authorized by all necessary corporate action, require no
governmental approval, and will not contravene, conflict with, nor result in the breach of any law, charter, articles, or certificate of incorporation, bylaws, or agreement governing or binding upon the Loan Parties or any of their property; and no
Event of Default or Potential Default has occurred and is continuing or would result from the making of this Second Amendment. 
  
 3. Conditions to Effectiveness.  
  
 This Second
Amendment shall be effective upon completion of the following conditions precedent: 
  
 (i) Execution. The
Required Banks, the Administrative Agent, the Borrower and the other Loan Parties shall have executed and delivered to the Administrative Agent signature pages hereto by counterpart or otherwise. 
  

(ii) Joinders. BearingPoint Technology Procurement Services, LLC, BearingPoint USA, Inc., BearingPoint Puerto Rico, LLC, BearingPoint International I, Inc. and
BearingPoint International II, Inc. shall have executed and delivered to the Administrative Agent 

 
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 Guarantor Joinders and all other documents required under the Credit Agreement or such Guarantor
Joinders to be delivered in connection therewith shall have been executed and delivered to the Administrative Agent. 
  
 (iii) Fees. The Borrower shall have paid to the Agent for the benefit of each Bank a fee in the amount of .15% times the Commitment of such Bank. 
  
 4. Amendment.  
  
 Any reference to the Credit Agreement or other Loan Documents in any document, instrument, or agreement shall hereafter mean and include the Credit Agreement or such Loan Document, including exhibits thereto, as amended hereby. In
the event of any irreconcilable inconsistency between the terms or provisions hereof and the terms or provisions of the Credit Agreement or such Loan Document, including such exhibits, the terms and provisions hereof shall control. 

 
 5. Force and Effect.  
  
 The Loan Parties reconfirm, restate, and ratify the Credit Agreement and all other documents executed in connection therewith and the Loan Parties confirm that all such
documents have remained in full force and effect since the date of their execution except to the extent that the Credit Agreement is expressly modified by this Second Amendment. 
  
 6. Governing Law.  
  
 This Second Amendment shall be deemed to be a contract under the laws of the State of New York and for all purposes shall be governed by and construed and enforced in accordance with the internal laws of the State of New York without
regard to its conflict of laws principles. 
  
 7. Counterparts.  

 
 This Second Amendment may be signed in any number of counterparts each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument. 

 
 -7- 

  
 [SIGNATURE PAGE 1 OF 15 TO SECOND AMENDMENT TO CREDIT  AGREEMENT]

  
 IN WITNESS WHEREOF, the parties hereto, by their officers thereunto duly authorized, have executed this Agreement as of the day and
year first above written. 
  
 
	 BORROWER:
  
 BEARINGPOINT, INC.
(formerly known as KPMG Consulting, Inc.)
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 GUARANTORS:
  
 BEARINGPOINT, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT ISRAEL, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 SOFTLINE ACQUISITION CORP.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT GLOBAL OPERATIONS, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  

  
 [SIGNATURE PAGE 2 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 SOFTLINE CONSULTING &
INTEGRATORS, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 I2 MIDATLANTIC LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 I2 NORTHWEST LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 OAD ACQUISITION CORP.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT TECHNOLOGY
 PROCUREMENT SERVICES, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT CAPITAL, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  

  
 [SIGNATURE PAGE 3 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 OAD GROUP, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
  
 
	 METRIUS, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 PEATMARWICK, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT ENTERPRISE HOLDINGS, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT GLOBAL DE, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT INTERNATIONAL, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 

  
 [SIGNATURE PAGE 4 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 BEARINGPOINT SOUTH PACIFIC, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT AMERICAS, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
  
 
	 BEARINGPOINT BG, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 PELOTON HOLDINGS, L.L.C.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  

  
 [SIGNATURE PAGE 5 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 BEARINGPOINT EUROPEAN HOLDINGS, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT SOUTHEAST ASIA, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT RUSSIA, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT USA, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT PUERTO RICO, LLC
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 
  
 
	 BEARINGPOINT INTERNATIONAL I, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 

  
 
	 BEARINGPOINT INTERNATIONAL II, INC.
 
	 
	 By:
 	 	 /s/    Patrick H. Kinzler         
 
	 	 (SEAL)
 
	  	 	 Name: Patrick H. Kinzler
 Title: Treasurer
 	 	  

 

 
 -13- 

  
 [SIGNATURE PAGE 6 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 PNC BANK, NATIONAL ASSOCIATION, individually and as Administrative Agent
 
	 
	 By:
 	 	  
 

	 Title:
 	 	 Vice President      
 

 
  

  
 [SIGNATURE PAGE 7 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 JPMORGAN CHASE BANK
individually and as Documentation Agent
 
	 
	 By:
 	 	 /s/ Alan J. Aria
 

	 Title:
 	 	 Vice President      
 

 

  
 [SIGNATURE PAGE 8 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 BARCLAYS BANK PLC, individually and as Syndication Agent
 
	 
	 By:
 	 	  
 

	 Title:
 	 	  
 

 

  
 [SIGNATURE PAGE 9 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 SOCIÉTÉ GÉNÉRALE
 
	 
	 By:
 	 	  
 

	 
	 Title:
 	 	  
 

 

  
 [SIGNATURE PAGE 10 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 SUNTRUST BANK, individually and as the Co-Agent
 
	 
	 By:
 	 	 /s/ Todd Sheets
 

	 Title:
 	 	 AVP
 

 

  
 [SIGNATURE PAGE 11 OF 15 TO SECOND AMENDMENT TO CREDIT AGREEMENT] 

 
  
 
	 BANK OF AMERICA, N.A., individually and as Documentation Agent
 
	 
	 By:
 	 	  
 

	 Title:
 	 	 Principal
 

 

  
 [SIGNATURE PAGE 12 OF 15 TO SECOND AMENDMENT TO CREDIT AGREEMENT] 

 
 
	 THE NORTHERN TRUST COMPANY
 
	 
	 By:
 	 	 /s/ Karen E. Dahl
 

	 Title:
 	 	 Vice President
 

 

  
 [SIGNATURE PAGE 13 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
  
 
	 WESTPAC BANKING CORPORATION
 
	 
	 By:
 	 	  
 

	 Title:
 	 	  
 

 

  
 [SIGNATURE PAGE 14 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 MELLON BANK, N.A.
 
	 
	 By:
 	 	  
 

	 Title:
 	 	  
 

 

  
 [SIGNATURE PAGE 15 OF 15 TO SECOND AMENDMENT TO CREDIT 
 AGREEMENT] 
  
 
	 CITIBANK, N.A., individually and as Documentation Agent
 
	 
	 By:
 	 	  
 

	 Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00045-of-00352.parquet"}]]