Document:

exv4w9

 

Exhibit 4.9

SEVENTH AMENDMENT TO CREDIT AGREEMENT AND

LENDER’S CONSENT AND WAIVER

     THIS SEVENTH AMENDMENT TO CREDIT AGREEMENT AND LENDER’S CONSENT AND WAIVER
(this “Amendment”) is dated effective June 30, 2004, by and between TYLER
TECHNOLOGIES, INC., a Delaware corporation (“Borrower”) and BANK OF TEXAS,
N.A., a national banking association (“Lender”).

WITNESSETH:

     WHEREAS, Borrower and Lender entered into that certain Credit Agreement,
dated February 27, 2002, pursuant to which Lender agreed to make the Loan (as
therein defined) available to Borrower (as heretofore or hereafter amended, the
“Credit Agreement”)(each capitalized term used herein, but not otherwise
defined shall have the same meaning given to it in the Credit Agreement); and

     WHEREAS, Borrower has requested that Lender (i) consent to Borrower’s
repurchase of outstanding Borrower stock in excess of the $25,000,000 limit to
which Lender previously consented pursuant to the Fifth Amendment to Credit
Agreement and Lender’s Consent and Waiver dated effective March 31, 2003 by and
between Borrower and Lender (the “Fifth Amendment”) and (iii) allow Borrower to
repurchase outstanding Borrower stock in an aggregate amount not to exceed
$5,000,000; and

     WHEREAS, subject to the terms and conditions herein contained, Lender is
willing to agree to such requests.

     NOW, THEREFORE, in consideration of the covenants, conditions and
agreements hereinafter set forth, and for other good and valuable
consideration, the receipt and adequacy of which are all hereby acknowledged,
Borrower and Lender hereby covenant and agree as follows:

ARTICLE I – CONSENT AND WAIVER

Section 1.1 Consent to Repurchase of Outstanding Stock in Excess of Amount
Previously Consented to by Lender. The Credit Agreement provides, among other
things, that, without the prior written consent of Lender, Borrower shall
declare no Distribution nor make any Investment, prior to payment in full of
the Obligations owed to Lender, and the termination of Lender’s Commitment,
under the Credit Agreement. Pursuant to the Fifth Amendment, Lender consented
to Borrower’s repurchase of outstanding Borrower stock in an aggregate amount
not to exceed $25,000,000 (the “Third Targeted Repurchase”). The actual cost
of the Third Targeted Repurchase equaled $25,344,888 (the “Actual Repurchase
Cost”). Lender hereby consents to the Third Targeted Repurchase and waives any
Default or Event of Default that may have occurred as a result of the amount of
the Actual Repurchase Cost exceeding the amount previously consented to by
Lender for the Third Targeted Repurchase.

Section 1.2 Consent to Repurchase of Outstanding Stock. The Credit Agreement
provides, among other things, that, without the prior written consent of
Lender, Borrower shall declare no Distribution nor make any Investment, prior
to payment in full of the Obligations owed to Lender, and the termination of
Lender’s Commitment, under the Credit Agreement. Pursuant to the Second
Amendment to Credit Agreement, First Amendment to Pledge and Security
Agreement, and Lender’s Consent dated effective September 30, 2002, by and
between Borrower and Lender, Lender consented to Borrower’s repurchase of up to
1,500,000 shares of the outstanding stock in Borrower during the period from
August 15, 2002 to November 30, 2002 (the “First Targeted Repurchase”).
Pursuant to that certain Third Amendment to Credit Agreement, Second Amendment
to Pledge and Security Agreement, Lender’s Consent and Waiver

Seventh Amendment (Tyler)

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and Borrower’s Acknowledgement dated effective January 10, 2003 by and between
Borrower and Lender (the “Third Amendment”), Lender consented to Borrower’s
repurchase of outstanding Borrower stock in an aggregate amount not to exceed
$2,000,000 (the “Second Targeted Repurchase”). As noted above, pursuant to the
Fifth Amendment, Lender consented to the Third Targeted Repurchase. Borrower
has requested Lender’s consent to Borrower’s repurchases of additional
outstanding Borrower stock (i.e., Borrower stock in addition to and exclusive
of the Borrower stock repurchased by Borrower in connection with the First
Targeted Repurchase, the Second Targeted Repurchase and the Third Targeted
Repurchase) (the “Fourth Targeted Repurchases”), with the aggregate purchase
price for all such Fourth Targeted Repurchases not to exceed $5,000,000.
Lender hereby consents to the Fourth Targeted Repurchases; provided, however,
that all such Fourth Targeted Repurchases occur prior to the occurrence of a
Default or an Event of Default.

Section 1.3 Limitation on Consent. The consents granted in this Amendment are
limited to the foregoing actions and do not constitute a waiver of any required
consent with respect to any other action.

ARTICLE II – MISCELLANEOUS

Section 2.1 Condition to Closing; Further Assurances. As a condition to the
closing of this Amendment, Borrower shall execute and deliver this Amendment
and such other documents as may be necessary or as may be required, in the
opinion of counsel to Lender, to effect the transactions contemplated hereby
and continue the liens and/or security interests of all other collateral
instruments, as modified by this Amendment. Borrower also agrees to provide to
Lender such other documents and instruments as Lender reasonably may request in
connection with the modification of the Loans effected hereby.

Section 2.2 Continuing Effect. Except as modified and amended hereby, the
Credit Agreement and other Loan Documents are and shall remain in full force
and effect in accordance with their terms.

Section 2.3 Payment of Expenses. Borrower agrees to pay to Lender the
reasonable attorneys’ fees and expenses of Lender’s counsel and other expenses
incurred by Lender in connection with this Amendment.

Section 2.4 Binding Agreement. This Amendment shall be binding upon, and shall
inure to the benefit of, the parties’ respective representatives, successors
and assigns.

Section 2.5 No Defenses. Borrower by its execution of this Amendment, hereby
declares that it has no set-offs, counterclaims, defenses or other causes of
action against Lender arising out of the Loan, this Amendment or otherwise;
and, to the extent any such setoffs, counterclaims, defenses or other causes of
action may exist, whether known or unknown, such items are hereby waived by
Borrower.

Section 2.6 Usury Savings Clause. Notwithstanding anything to the contrary in
this Amendment, the Note or any other Loan Document, or in any other agreement
entered into in connection with the Note or securing the indebtedness evidenced
by the Note, whether now existing or hereafter arising and whether written or
oral, it is agreed that the aggregate of all interest and other charges
constituting interest, or adjudicated as constituting interest, and contracted
for, chargeable or receivable under the Note or otherwise in connection with
the Note shall under no circumstances exceed the maximum rate of interest
permitted by applicable law. In the event the maturity of the Note is
accelerated by reason of an election by the holder thereof resulting from a
default thereunder or under any other document executed as security therefor or
in connection therewith, or by voluntary prepayment by the maker, or otherwise,
then earned interest may never include more than the maximum rate of interest
permitted by applicable law. If from any circumstance any holder of any of the
Note shall ever receive interest or any other

Seventh Amendment (Tyler)

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charges constituting interest, or adjudicated as constituting interest, the
amount, if any, which would exceed the maximum rate of interest permitted by
applicable law shall be applied to the reduction of the principal amount owing
on such Note or on account of any other principal indebtedness of the maker to
the holders of such Note, and not to the payment of interest, or if such
excessive interest exceeds the unpaid balance of principal thereof and such
other indebtedness, the amount of such excessive interest that exceeds the
unpaid balance of principal thereof and such other indebtedness shall be
refunded to the maker. All sums paid or agreed to be paid to the holder of the
Note for the use, forbearance or detention of the indebtedness of the maker to
the holder of such Note shall be amortized, prorated, allocated and spread
throughout the full term of such indebtedness until payment in full for the
purpose of determining the actual rate on such indebtedness is uniform
throughout the term thereof.

     The terms “maximum amount” or “maximum rate” as used in this Amendment or
the Note, or in any other agreement entered into in connection with the Note or
securing the indebtedness evidenced by the Note, whether now existing or
hereafter arising and whether written or oral, include, as to Chapter 303 of
the Texas Finance Code (and as same may be incorporated by reference in other
statutes of the State of Texas), but otherwise without limitation, that rate
based upon the “weekly ceiling”; provided, however, that this designation shall
not preclude the rate of interest contracted for, charged or received in
connection with the Loan from being governed by, or construed in accordance
with, any other state or federal law.

Section 2.7 Counterparts. This Amendment may be executed in several
counterparts, all of which are identical, each of which shall be deemed an
original, and all of which counterparts together shall constitute one and the
same instrument, it being understood and agreed that the signature pages may be
detached from one or more of such counterparts and combined with the signature
pages from any other counterpart in order that one or more fully executed
originals may be assembled.

Section 2.8 Choice of Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED
IN ACCORDANCE WITH, THE LAWS OF THE STATE OF TEXAS, EXCEPT TO THE EXTENT
FEDERAL LAWS PREEMPT THE LAWS OF THE STATE OF TEXAS.

Section 2.9 Entire Agreement. This Amendment, together with the other Loan
Documents, contain the entire agreements between the parties relating to the
subject matter hereof and thereof. This Amendment and the other Loan Documents
may be amended, revised, waived, discharged, released or terminated only by a
written instrument or instruments, executed by the party against which
enforcement of the amendment, revision, waiver, discharge, release or
termination is asserted. Any alleged amendment, revision, waiver, discharge,
release or termination which is not so documented shall not be effective as to
any party.

     THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT
BETWEEN THE PARTIES RELATED TO THE SUBJECT MATTER HEREIN CONTAINED AND MAY NOT
BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL
AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE
PARTIES.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Seventh Amendment (Tyler)

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     IN WITNESS WHEREOF, this Amendment is executed effective as of the date
first written above.

	 	 	 	 	 
	

	 	LENDER:	 	 
	 
	 	 	 	 
	

	 	BANK OF TEXAS, N.A.,
a national banking
association
	 
	 	 	 	 
	

	 	By:	 	 
	 
	 	 	 	 
	

	 	Name:	 	 
	 
	 	 	 	 
	

	 	Its:	 	 

	 	 	 	 	 
	 	 BORROWER:

 TYLER TECHNOLOGIES, Inc. a Delaware

 corporation

 	 
	 	 By:  	 	 
	 	 	Brian K. Miller, 	 
	 	 	Vice President-Finance 	 
	 

Seventh Amendment (Tyler)

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CONSENT OF GUARANTORS

     Each of the undersigned Guarantors hereby acknowledges and consents to the
foregoing amendment and expressly acknowledges and agrees that (a) its
Guaranty shall guaranty, and the Security Agreement executed by it shall
secure, the Loan as amended hereby, and (b) except as may be modified to
incorporate the terms of this Amendment, the Guaranty of the other Loan
Documents to which it is a part, are and shall continue in full force and
effect.

     IN WITNESS WHEREOF, each of the Guarantors has caused this Consent to be
duly executed by its authorized officer.

	 	 	 	 	 
	 	GUARANTORS:

COLE LAYER TRUMBLE COMPANY, a

Delaware corporation

 	 
	 	By:  	 	 
	 	 	Brian K. Miller, 	 
	 	 	Vice President-Finance 	 
	 
	 	Address: c/o Tyler Technologies, Inc.

5949 Sherry Lane, Suite 1400

Dallas, Texas 75225

Attention: Treasurer

Fax: (214) 547-4041

EAGLE COMPUTER SYSTEMS, INC., a

Delaware corporation

 	 
	 	By:  	 	 
	 	 	Brian K. Miller, 	 
	 	 	Vice President-Finance 	 
	 
	 	Address: c/o Tyler Technologies,
Inc.

5949 Sherry Lane, Suite 1400

Dallas, Texas 75225

Attention: Treasurer

Fax: (214) 547-4041

 	 

Seventh Amendment (Tyler)

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FUNDBALANCE, INC., a

Delaware corporation

 	 
	 	By:  	 	 
	 	 	Brian K. Miller, 	 
	 	 	Vice President-Finance 	 
	 
	 	Address: c/o Tyler Technologies, Inc.

5949 Sherry Lane, Suite 1400

Dallas, Texas 75225

Attention: Treasurer

Fax: (214) 547-4041

INTERACTIVE COMPUTER DESIGNS, a

Texas corporation

 	 
	 	By:  	 	 
	 	 	Brian K. Miller, 	 
	 	 	Vice President-Finance 	 
	 
	 	Address: c/o Tyler Technologies, Inc.

5949 Sherry Lane, Suite 1400

Dallas, Texas 75225

Attention: Treasurer

Fax: (214) 547-4041

MUNIS, INC., a Maine corporation

 	 
	 	By:  	 	 
	 	 	Brian K. Miller, 	 
	 	 	Vice President-Finance 	 
	 
	 	Address: c/o Tyler Technologies, Inc.

5949 Sherry Lane, Suite 1400

Dallas, Texas 75225

Attention: Treasurer

Fax: (214) 547-4041

 	 

Seventh Amendment (Tyler)

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THE SOFTWARE GROUP, INC., a

Texas corporation

 	 
	 	By:  	 	 
	 	 	Brian K. Miller, 	 
	 	 	Vice President-Finance 	 
	 
	 	Address: c/o Tyler Technologies, Inc.

5949 Sherry Lane, Suite 1400

Dallas, Texas 75225

Attention: Treasurer

Fax: (214) 547-4041

EDEN SYSTEMS, INC., a

Washington corporation

 	 
	 	By:  	 	 
	 	 	Brian K. Miller, 	 
	 	 	Vice President-Finance
 	 
	 
	 	
Address: c/o Tyler Technologies, Inc.

5949 Sherry Lane, Suite 1400

Dallas, Texas  75225

Attention:  Treasurer

Fax: (214) 547-4041 	 

Seventh Amendment (Tyler)

7<PAGE>

                                                                     EXHIBIT 4.8

                              RENT-A-CENTER, INC.,
                                   as Issuer,

                          the GUARANTORS named herein,
                                 as Guarantors,

                                       and

                              THE BANK OF NEW YORK,
                                   as Trustee

                          THIRD SUPPLEMENTAL INDENTURE

                             Dated as of May 7, 2004

                                       to

                                    INDENTURE

                             Dated as of May 6, 2003

                                     between

                         RENT-A-CENTER, INC., as Issuer,

                  the GUARANTORS named therein, as Guarantors,

                                       and

                        THE BANK OF NEW YORK, as Trustee

                                  $300,000,000
                                    SERIES B
                    7 1/2% SENIOR SUBORDINATED NOTES DUE 2010

<PAGE>

      This THIRD SUPPLEMENTAL INDENTURE, dated as of May 7, 2004, is entered
into by and among Rent-A-Center, Inc., a Delaware corporation (the "COMPANY"),
Rent-A-Center East, Inc., a Delaware corporation ("RAC EAST"), ColorTyme, Inc.,
a Texas corporation ("COLORTYME"), Rent-A-Center West, Inc., a Delaware
corporation ("RAC WEST"), Get It Now, LLC, a Delaware limited liability company
("GET IT NOW"), Rent-A-Center Texas, L.P., a Texas limited partnership ("RAC
TEXAS, LP"), Rent-A-Center Texas, L.L.C., a Nevada limited liability company
("RAC TEXAS, LLC"), Rent-A-Center International, Inc., a Delaware corporation
("RAC INTERNATIONAL"), Rent-A-Center Addison, L.L.C., a Delaware limited
liability company ("RAC ADDISON"), RAC National Product Service, LLC, a Delaware
limited liability company ("RAC NATIONAL"), RAC RR, Inc., a Delaware corporation
("RAC RR"), and The Bank of New York, a New York banking corporation, as Trustee
(the "TRUSTEE").

      WHEREAS, the Company has heretofore executed and delivered to the Trustee
an Indenture, dated as of May 6, 2003, as supplemented by the First Supplemental
Indenture, dated December 4, 2003, and the Second Supplemental Indenture, dated
April 26, 2004, by and among the Company, RAC East, ColorTyme, RAC West, Get It
Now, RAC Texas, LP, RAC Texas, LLC, RAC International, RAC Addison, RAC National
and the Trustee (the "INDENTURE"), providing for the issuance of its 7-1/2%
Series B Senior Subordinated Notes due 2010 (the "NOTES"); and

      WHEREAS, RAC East, ColorTyme, RAC West, Get It Now, RAC Texas, LP, RAC
Texas, LLC, RAC International, RAC Addison and RAC National are currently
Guarantors under the Indenture; and

      WHEREAS, RAC East has formed RAC RR as a wholly-owned subsidiary; and

      WHEREAS, the Company is a party to that certain Agreement and Plan of
Merger and Reorganization (the "MERGER AGREEMENT"), dated as of April 27, 2004,
by and among the Company, RAC RR, and Rent Rite, Inc. d/b/a Rent Rite Rental
Purchase, a Tennessee corporation ("RENT RITE"), pursuant to which Rent Rite
will merge with and into RAC RR (the "MERGER"), with RAC RR continuing as the
surviving entity; and

      WHEREAS, the Company has designated RAC RR as a Restricted Subsidiary
under the Indenture to be effective immediately prior to consummation of the
Merger; and

      WHEREAS, pursuant to Section 1012 and 1009 of the Indenture, the Merger is
permitted under the Indenture; and

      WHEREAS, pursuant to Section 1020 of the Indenture, the addition of RAC RR
as a Guarantor is required under the Indenture; and

      WHEREAS, RAC RR has agreed to become a Guarantor by guaranteeing the
obligations of the Company under the Indenture in accordance with the terms
thereof; and

      WHEREAS, RAC RR has been duly authorized to enter into, execute and
deliver this Third Supplemental Indenture.

      NOW, THEREFORE, for and in consideration of the premises and covenants and
agreements contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company, RAC East,
ColorTyme, RAC

                                      -2-

<PAGE>

West, Get It Now, RAC Texas, LP, RAC Texas, LLC, RAC International, RAC Addison,
RAC National, RAC RR and the Trustee agree as follows:

      SECTION 1. Capitalized terms used herein but not defined herein shall have
the meaning provided in the Indenture.

      SECTION 2. The Trustee hereby consents to the Merger and the addition of
RAC RR as an additional Guarantor under the Indenture. As of the date hereof
(the "EFFECTIVE TIME"), RAC RR shall become, and each of RAC East, ColorTyme,
RAC West, Get It Now, RAC Texas, LP, RAC Texas, LLC, RAC International, RAC
Addison and RAC National shall continue to be, a "Guarantor" under and as
defined in the Indenture, and at the Effective Time, RAC RR shall assume all the
obligations of a Guarantor under the Notes and the Indenture as described in the
Indenture. RAC RR hereby unconditionally guarantees the full and prompt payment
of the principal of, premium, if any, and interest on the Notes and all other
obligations of the Issuer and the Guarantors under the Indenture in accordance
with the terms of the Notes and the Indenture.

      SECTION 3. Except as expressly supplemented by this Third Supplemental
Indenture, the Indenture and the Notes issued thereunder are in all respects
ratified and confirmed and all of the rights, remedies, terms, conditions,
covenants and agreements of the Indenture and Notes issued thereunder shall
remain in full force and effect.

      SECTION 4. This Third Supplemental Indenture is executed and shall
constitute an indenture supplemental to the Indenture and shall be construed in
connection with and as part of the Indenture. This Third Supplemental Indenture
shall be governed by and construed in accordance with the laws of the
jurisdiction that governs the Indenture and its construction.

      SECTION 5. This Third Supplemental Indenture may be executed in any number
of counterparts, each of which shall be deemed to be an original for all
purposes, but such counterparts shall together be deemed to constitute but one
and the same instrument.

      SECTION 6. Any and all notices, requests, certificates and other
instruments executed and delivered after the execution and delivery of this
Third Supplemental Indenture may refer to the Indenture without making specific
reference to this Third Supplemental Indenture, but nevertheless all such
references shall include this Third Supplemental Indenture unless the context
otherwise requires.

      SECTION 7. This Third Supplemental Indenture shall be deemed to have
become effective upon the date first above written.

      SECTION 8. In the event of a conflict between the terms of this Third
Supplemental Indenture and the Indenture, this Third Supplemental Indenture
shall control.

      SECTION 9. The Trustee shall not be responsible in any manner whatsoever
for or in respect of the validity or sufficiency of this Third Supplemental
Indenture or for or in respect of the recitals contained herein, all of which
recitals are made solely by the Company, RAC East, ColorTyme, RAC West, Get It
Now, RAC Texas, LP, RAC Texas, LLC, RAC International, RAC Addison, RAC National
and RAC RR.

                                      -3-

<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Third Supplemental
Indenture to be duly executed as of the day and year first above written.

THE BANK OF NEW YORK,
as Trustee

By: /s/ VAN K. BROWN
    ----------------------------
Name:  Van K. Brown
      --------------------------
Title: Vice President
      --------------------------

                                       RENT-A-CENTER, INC.

                                       By: /s/ MITCHELL E. FADEL
                                           -------------------------------------
                                           Mitchell E. Fadel
                                           President and Chief Operating Officer

                                       RENT-A-CENTER EAST, INC.

                                       By: /s/ MITCHELL E. FADEL
                                           -------------------------------------
                                           Mitchell E. Fadel
                                           Vice President

                                       COLORTYME, INC.

                                       By: /s/ MITCHELL E. FADEL
                                           -------------------------------------
                                           Mitchell E. Fadel
                                           Vice President

                                       RENT-A-CENTER WEST, INC.

                                       By: /s/ MITCHELL E. FADEL
                                           -------------------------------------
                                           Mitchell E. Fadel
                                           Vice President

                                      -4-

<PAGE>

                                       GET IT NOW, LLC

                                       By: /s/ MITCHELL E. FADEL
                                           -------------------------------------
                                           Mitchell E. Fadel
                                           Vice President

                                       RENT-A-CENTER TEXAS, L.P.

                                       By: Rent-A-Center East, Inc.,
                                           its general partner

                                           By: /s/ MITCHELL E. FADEL
                                               ---------------------------------
                                               Mitchell E. Fadel
                                               Vice President

                                       RENT-A-CENTER TEXAS, L.L.C.

                                       By: /s/ JAMES ASHWORTH
                                           -------------------------------------
                                           James Ashworth
                                           President and Secretary

                                       RENT-A-CENTER INTERNATIONAL, INC.

                                       By: /s/ MITCHELL E. FADEL
                                           -------------------------------------
                                           Mitchell E. Fadel
                                           Vice President

                                       RENT-A-CENTER ADDISON, L.L.C.

                                       By: /s/ MITCHELL E. FADEL
                                           -------------------------------------
                                           Mitchell E. Fadel
                                           Vice President

                                      -5-

<PAGE>

                                       RAC NATIONAL PRODUCT SERVICE, LLC

                                       By: /s/ MITCHELL E. FADEL
                                           -------------------------------------
                                           Mitchell E. Fadel
                                           Vice President

                                       RAC RR, INC.

                                       By: /s/ MITCHELL E. FADEL
                                           -------------------------------------
                                           Mitchell E. Fadel
                                           Vice President

                                      -6-

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