Document:

EXHIBIT 4.1

 

FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER

 

This FIRST AMENDMENT TO CREDIT AGREEMENT AND WAIVER

dated as of August 7, 2002 (this “Amendment”), among Alternative

Resources Corporation (“ARC”), ARC Service, Inc., ARC Solutions, Inc.,

ARC Midholding, Inc., and Writers Inc. (collectively, the “Borrowers”),

and Fleet Capital Corporation (the “Lender”), amends the Credit and

Security Agreement dated as of January 31, 2002 (the “Credit Agreement”),

between the Borrowers and the Lender.

 

WHEREAS, ARC and its Subsidiaries failed to satisfy

the Fixed Charge Coverage Ratio set forth in Section 8.10(b) of the Credit

Agreement for the period of two fiscal quarters ended June 30, 2002 and such

failure constitutes an Event of Default under Section 9.1(c) of the Credit

Agreement (the “June 30, 2002 Event of Default”);

 

WHEREAS, the Credit Parties have requested that the

Lender waive the June 30, 2002 Event of Default as provided herein, and amend

certain provisions of the Credit Agreement; and

 

WHEREAS, the Lender has agreed to waive the June 30,

2002 Event of Default and to amend certain provisions of the Credit Agreement,

all subject to the terms, conditions and limitations set forth herein;

 

NOW, THEREFORE, in consideration of the foregoing and

the agreements contained herein, the parties hereby agree as follows:

 

1.                                       Capitalized

Terms.

 

Capitalized terms used herein which are defined in the

Credit Agreement have the same meanings herein as therein, except to the extent

that such meanings are amended hereby.

 

2.                                       Waiver

of June 30, 2002 Event of Default.

 

Subject to the satisfaction of the terms and

conditions set forth in Section 5 hereof, the Lender hereby waives the June 30,

2002 Event of Default.  The parties

agree that the foregoing waiver is limited solely to the Event of Default

arising out of the failure of ARC and its Subsidiaries to satisfy the Fixed

Charge Coverage Ratio covenant set forth in Section 8.10(b) of the Credit

Agreement for the period of two fiscal quarters ended June 30, 2002, and nothing

herein shall be construed as a waiver of any other presently existing or future

Event of Default (including without limitation, any Event of Default caused by

reason of the failure of the Borrowers to comply with Section 8.10(b) of the

Credit Agreement, as amended hereby, on any other occasion or for any other

period) or any failure of the Borrowers to comply with any other provision,

term or condition of the Loan Documents.

 

3.                                       Amendments.

 

Subject to the satisfaction of the terms and

conditions set forth in Section 7 hereof, the Borrowers and the Lender agree

that the Credit Agreement is hereby amended, effective as of the date hereof,

as follows:

 

 

(a)           Amendments

to Section 1.1 of the Credit Agreement. 

Section 1.1 of the Credit Agreement is hereby amended as

follows:

 

(i)            The definition of “Borrowing

Base” set forth in Section 1.1 of the Credit Agreement is hereby

amended by replacing clause (c) in the definition of “Borrowing Base” in its

entirety with the following new clause (c):

 

“(c)  the lesser of:

 

(i)             70%

of the aggregate of (x) Billed Restricted Product Line Accounts and (y)

Unbilled Restricted Product Line Accounts, and

 

(ii)          $5,500,000,

minus”

 

(ii)           The definition of “Change of

Control” set forth in Section 1.1 of the Credit Agreement is hereby

amended by replacing clause (e) in the definition of “Change of Control” in its

entirety with the following new clause (e):

 

“(e) any two of (i) George Watts, (ii) Steven Purcell or (iii) Vic

Fricas shall for any reason cease to serve in their present capacities as

officers of ARC, and ARC shall fail, within ninety (90) days of the date that

the last of any two such Persons cease to serve in such capacities, to retain a

replacement for at least one of such persons who has comparable industry

experience.”

 

(iii)          The following new defined term “Fixed

Charges” shall be added to Section 1.1 of the Credit Agreement

immediately preceding the definition of “Fixed Charge Coverage Ratio”:

 

“‘Fixed Charges’

means, for any period, the sum for the Borrowers and all Subsidiaries

(determined on a consolidated basis without duplication in accordance with

GAAP), of (i) the aggregate amount of Interest Expense for such period

(excluding, for the purpose of computing Fixed Charges, that certain amendment

fee required to be paid by the Borrowers to the Lender in connection with that

certain First Amendment to Credit Agreement and Waiver dated as of August 7,

2002 among the Borrowers and the Lender) plus (ii) the aggregate amount

of regularly scheduled payments of principal in respect of Indebtedness for

borrowed money (including the principal component of any payments in respect of

Capital Lease Obligations) paid or required to be paid during such period, plus

(c) the aggregate amount of cash disbursements made by the Borrowers after June

30, 2002, pursuant to that certain severance agreement between ARC and its

former Chief Executive Officer.”

 

(iv)          The

definition of “Fixed Charge Coverage Ratio” set forth in Section 1.1 of

the Credit Agreement is hereby amended and restated in its entirety to read as

follows:

 

“‘Fixed Charge

Coverage Ratio’ means, for any period, the ratio of (a) (i) EBITDA of the

Borrowers and all Subsidiaries for such period (determined on a consolidated

basis without duplication in accordance with GAAP) minus (ii) the

aggregate amount of all Non-Financed Capital Expenditures during such period minus

(iii) the aggregate amount paid, or required to be paid (without duplication),

in cash in respect of the current portion of all income taxes for such period minus

(iv) the aggregate amount of dividends and distributions permitted to be paid

under Section 8.6 and actually paid in cash during such period to (b) the

aggregate amount of Fixed Charges for such period.”

 

2

 

(v)           The definition of “Revolving

Credit Commitment” set forth in Section 1.1 of the Credit Agreement

is hereby amended by deleting the amount “$30,000,000” contained therein, and

replacing it with the amount “$28,000,000”.

 

(b)           Amendment to Section 7.1 of the Credit Agreement.  Section 7.1 of the Credit Agreement is

hereby amended by: (i) deleting the term “and” at the end of subsection (h)

thereof, (ii) deleting the period at the end of subsection (i) thereof and

replacing it with a semi-colon, and (iii) adding the following to the end

thereof as a new subsection (j):

 

“(j)          not later than 2:00 p.m. (Boston time)

on each Business Day, a Collateral Update Certificate.”

 

(c)           Amendment to Section 8.10 of the Credit Agreement.  Section 8.10 of the Credit Agreement is

hereby amended and restated in its entirety to read as follows:

 

“8.10       Certain Financial Covenants.

 

(a)           Tangible Capital Base.  ARC and its Subsidiaries shall not (i) as of

June 30, 2002, have a consolidated Tangible Capital Base of less than

$8,000,000 or (ii) as of the end of any fiscal quarter commencing with the

fiscal quarter ending September 30, 2002, have a consolidated Tangible Capital

Base of less than the sum of (x) $8,000,000 plus (y) on a cumulative

basis, 50% of positive consolidated net income (without reduction for losses)

for each fiscal quarter ending after June 30, 2002.

 

(b)           Fixed Charge Coverage Ratio.  The Fixed Charge Coverage Ratio of ARC and

its Subsidiaries shall not at any time during any period set forth below to be less

than the ratio set opposite such period:

 

	

  Period

  	

   

  	

  Minimum Fixed Charge

  Coverage Ratio

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  October 1, 2002 through December 31, 2002

  	

   

  	

  1.00x

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  October 1, 2002 through

  March 31, 2003

  	

   

  	

  1.00x

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  October 1, 2002 through

  June 30, 2003

  	

   

  	

  1.00x

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  October 1, 2002 through

  September 30, 2003

  	

   

  	

  1.00x

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Thereafter (on a

  rolling four quarters basis)

  	

   

  	

  1.00x

  	

   

  

 

3

 

(c)           Fixed Charge Coverage Shortfall.  The amount by which (i) the aggregate Fixed

Charges of ARC and its Subsidiaries, exceeds (ii) the consolidated EBITDA of

ARC and its Subsidiaries, for each fiscal period  set forth below shall not be greater than

the maximum shortfall amount set opposite such fiscal period:

 

	

  Fiscal Period

  	

   

  	

  Maximum

  Shortfall

  Amount

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  July 1 through

  July 31, 2002

  	

   

  	

  $

  	

  250,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  July 1 through

  August 31, 2002

  	

   

  	

  $

  	

  150,000

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  July 1 through

  September 30, 2002

  	

   

  	

  $

  	

  250,000

  	

   

  

 

(d)           Capital Expenditures.  The Credit Parties shall not make any

Capital Expenditures (including, without limitation, incurring any Capital

Lease Obligations) which, in the aggregate exceed (i) $600,000 at any time

during the fiscal quarter ending March 31, 2002, and (ii) $2,500,000 at

any time during any fiscal year, commencing with the fiscal year ending

December 31, 2002.”

 

(d)           Amendment of

Exhibit D to the Credit Agreement. 

Exhibit D to the Credit Agreement is hereby replaced with the new form

of Exhibit D attached thereto.

 

4.                                       No

Default; Representations and Warranties, etc.

 

The Borrowers hereby

represent, warrant and confirm that: (a) the representations and warranties of

the Credit Parties contained in Article 5 of the Credit Agreement are true and

correct on and as of the date hereof as if made on such date (except to the extent

that such representations and warranties expressly relate to an earlier date);

(b) after giving effect to this Amendment, the Borrowers are in compliance with

all of the terms and provisions set forth in the Credit Agreement and the other

Loan Documents; (c) after giving effect to this Amendment, no Default has

occurred and is continuing; and (d) the execution, delivery and

performance by the Borrowers of this Amendment (i) have been duly authorized by

all necessary action on the part of the Borrowers, (ii) will not violate any

applicable law or regulation or the organizational documents of any Borrower,

(iii) will not violate or result in a default under any indenture, agreement or

other instrument binding on any Borrower or any of its assets, including without

limitation, any Subordinated Debt Document, and (iv) do not require any

consent, waiver or approval of or by any Person (other than the Lender) which

has not been obtained.

 

5.                                       Conditions

to Effectiveness.

 

The

effectiveness of this Amendment shall be subject to the satisfaction of the

following conditions precedent:

 

(a)           The Lender shall have received

counterparts of this Amendment duly executed by each of the Borrowers;

 

(b)           The Lender shall have received a

Certificate of the Secretary of ARC, certifying that this Amendment has been

duly authorized by the Boards of Directors of ARC and each of its Subsidiaries;

 

4

 

(c)           The Borrowers shall have delivered to

the Lender evidence that Wynnchurch has executed and delivered to the Borrowers

a written amendment and waiver with respect to the Subordinated Debt Documents

in form and substance reasonably acceptable to the Lender, pursuant to which

Wynnchurch shall have waived all existing defaults of the Borrowers under the

Subordinated Debt Documents and amended the financial covenant provisions of

the Subordinated Debt Documents in a manner consistent with the financial

covenant amendments set forth in this Amendment;

 

(d)           The Lender shall have received a written

acknowledgement from Wynnchurch with respect to the existence of the June 30,

2002 Event of Default and the modifications to the Credit Agreement

contemplated by this Amendment;

 

(e)           The Borrowers shall have reimbursed

the Lender for all reasonable costs and expenses, including reasonable legal

fees and disbursements, incurred by the Lender in connection with this

Amendment and the transactions contemplated hereby; and

 

(f)            The Lender shall have received from

the Borrowers, an amendment fee in an amount equal to $50,000.

 

6.             Miscellaneous.

 

(a)           Except as specifically amended

hereby, all of the terms and provisions of the Credit Agreement, the other Loan

Documents and all related documents, shall remain in full force and

effect.  Nothing contained herein shall

constitute a waiver of any provision of the Credit Agreement or the Other Loan

Documents, except for the waiver of the June 30, 2002 Event of Default

expressly set forth herein.

 

(b)           This Amendment may be executed in any

number of counterparts, each of which, when executed and delivered, shall be an

original, but all counterparts shall together constitute one instrument.  Delivery of an executed signature page

hereto by facsimile transmission shall be effective as delivery of a manually

executed counterpart hereof.

 

(c)           This Amendment shall be governed by

the laws of The Commonwealth of Massachusetts and shall be binding upon and

inure to the benefit of the parties hereto and their respective successors and

assigns.

 

[Remainder of Page Left Intentionally Blank]

 

5

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be

duly executed by their respective authorized officers as of the day and year

first above written.

 

 

	

   

  	

  BORROWERS

  
	

   

  	

   

  
	

   

  	

  ALTERNATIVE

  RESOURCES CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  ARC SERVICE,

  INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

  ARC SOLUTIONS,

  INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

  ARC MIDHOLDING,

  INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

  WRITERS

  INC.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  

 

6

 

	

   

  	

  LENDER

  
	

   

  	

   

  
	

   

  	

  FLEET

  CAPITAL CORPORATION, as Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

  ISSUING

  LENDER

  
	

   

  	

   

  
	

   

  	

  FLEET

  NATIONAL BANK, as Issuing Lender

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  
	

   

  	

   

  
	

   

  	

  CASH

  MANAGEMENT BANK

  
	

   

  	

   

  
	

   

  	

  FLEET

  NATIONAL BANK, as Cash Management Bank

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By

  	

   

  	

   

  
	

   

  	

  Name:

  
	

   

  	

  Title:

  

 

7EXHIBIT 4.2

 

FIRST AMENDMENT TO SECURITIES

PURCHASE AGREEMENT AND WAIVER

 

This FIRST AMENDMENT TO SECURITIES PURCHASE AGREEMENT

AND WAIVER dated as of August 7, 2002 (this “Amendment”), among

Alternative Resources Corporation, a Delaware corporation  (the “Company”), with headquarters

located at 600 Hart Road, Suite 300, Barrington, Illinois 60010,  Wynnchurch Capital Partners, L.P., a

Delaware limited partnership and Wynnchurch Capital Partners Canada, L.P., an

Alberta, Canada limited partnership (each a “Purchaser,” and

collectively, the “Purchasers”), amends the Securities Purchase

Agreement dated as of January 31, 2002 (the “Securities Purchase Agreement”),

between the Company and the Purchasers.

 

WHEREAS, the Company failed to satisfy the Fixed

Charge Coverage Ratio set forth in Section 7.5(h)(ii) of the Securities

Purchase Agreement for the period of two fiscal quarters ended June 30, 2002

and such failure constitutes an Event of Default under the Section 5.2 of the

Notes (the “June 30, 2002 Event of Default”);

 

WHEREAS, the Company and Fleet Capital Corporation, as

Lender pursuant to that certain Credit and Security Agreement dated as of

January 31, 2002 (the “Credit Agreement”) have requested that the

Purchasers waive the June 30, 2002 Event of Default  and any other existing defaults by the Company as provided

herein, and amend certain provisions of the Securities Purchase Agreement; and

 

WHEREAS, the Purchasers has agreed to waive the June

30, 2002 Event of Default and any other existing defaults under the Securities

Purchase Agreement and to amend certain provisions of the Securities Purchase

Agreement, all subject to the terms, conditions and limitations set forth

herein;

 

NOW, THEREFORE, in consideration of the foregoing and

the agreements contained herein, the parties hereby agree as follows:

 

1.             Capitalized Terms.

 

Capitalized terms used herein which are defined in the

Securities Purchase Agreement have the same meanings herein as therein, except

to the extent that such meanings are amended hereby.  The Securities Purchase Agreement, together with the Notes, the

Warrants, the Subordination Agreement and any other related documents are

referred to herein as the “Subordinated Debt Documents.”

 

2.             Waiver of June 30,

2002 Event of Default.

 

Subject to the satisfaction of the terms and

conditions set forth in Section 5 hereof, the Purchasers hereby waive the June

30, 2002 Event of Default and any other existing defaults by the Company

pursuant to the Securities Purchase Agreement and the other Subordinated Debt

Documents.  The parties agree that

nothing herein shall be construed as a waiver of any future Event of Default

(including without limitation, any Event of Default caused by reason of the

failure of the Company to comply with Section 7.5(h) of the Securities Purchase

Agreement, as amended hereby, on any other occasion or for any other period).

 

3.             Amendments.

 

Subject to the satisfaction of the terms and

conditions set forth in Section 5 hereof, the Company and the Purchasers agree

that the Securities Purchase Agreement is hereby amended, effective as of the

date hereof, as follows:

 

 

(a)           Amendments

to Section 7.2 of the Securities Purchase Agreement.  Section 7.2(j) of the Securities Purchase Agreement is

hereby amended as follows:

 

(i)            The

following new defined term “Fixed Charges” shall be added to Section

7.2 of the Securities Purchase Agreement immediately preceding the definition

of “Fixed

Charge Coverage Ratio”:

 

“(j1)        ‘Fixed Charges’

means, for any period, the sum for the Company and all subsidiaries (determined

on a consolidated basis without duplication in accordance with GAAP), of (i)

the aggregate amount of Interest Expense for such period (excluding, for the

purpose of computing Fixed Charges, that certain amendment fee required to be paid

by the Company and its subsidiaries to the Lender in connection with that

certain First Amendment to Credit Agreement and Waiver dated as of August 7,

2002 among the Company and its subsidiaries and the Lender) plus (ii)

the aggregate amount of regularly scheduled payments of principal in respect of

Indebtedness for borrowed money (including the principal component of any

payments in respect of Capital Lease Obligations) paid or required to be paid

during such period, plus (c) the aggregate amount of cash disbursements

made by the Company after June 30, 2002, pursuant to that certain severance

agreement between the Company and its former Chief Executive Officer.”

 

(ii)           The

definition of “Fixed Charge Coverage Ratio” set forth in Section 7.2 of

the Securities Purchase Agreement is hereby amended and restated in its

entirety to read as follows:

 

“(j2)        ‘Fixed Charge Coverage Ratio’

means, for any period, the ratio of (a) (i) EBITDA of the Borrowers (as defined

in the Credit Agreement) and all subsidiaries for such period (determined on a

consolidated basis without duplication in accordance with GAAP) minus

(ii) the aggregate amount of all Non-Financed Capital Expenditures during such

period minus (iii) the aggregate amount paid, or required to be paid

(without duplication), in cash in respect of the current portion of all income

taxes for such period minus (iv) the aggregate amount of dividends and

distributions permitted to be paid under Section 8.6 of the Credit Agreement

and actually paid in cash during such period to (b) the aggregate amount of

Fixed Charges for such period.”

 

(b)           Amendment to

Section 7.5(h) of the Securities Purchase Agreement.  Section 7.5(h) of the Securities Purchase

Agreement is hereby amended and restated in its entirety to read as follows:

 

“(h)         Certain

Financial Covenants.

 

(i)            Tangible Capital Base.  The Company shall not (i) as of

June 30, 2002, have a consolidated Tangible Capital Base of less than

$7,600,000 or (ii) as of the end of any fiscal quarter commencing with the

fiscal quarter ending September 30, 2002, have a consolidated Tangible Capital

Base of less than the sum of (x) $7,600,000 plus (y) on a cumulative

basis, 45% of positive consolidated net income (without reduction for losses)

for each fiscal quarter ending after June 30, 2002.

 

2

 

(ii)           Fixed Charge Coverage Ratio.  The Fixed Charge Coverage Ratio of the

Company shall not at any time during any period set forth below to be less than

the ratio set opposite such period:

 

	

  Period

  	

   

  	

  Minimum Fixed Charge

  Coverage Ratio

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  October 1, 2002 through December 31, 2002

  	

   

  	

  .95x

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  October 1, 2002 through

  March 31, 2003

  	

   

  	

  .95x

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  October 1, 2002 through

  June 30, 2003

  	

   

  	

  .95x

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  October 1, 2002 through

  September 30, 2003

  	

   

  	

  .95x

  	

   

  
	

   

  	

   

  	

   

  	

   

  
	

  Thereafter (on a

  rolling four quarters basis)

  	

   

  	

  .95x

  	

   

  

 

(iii)          Fixed Charge

Coverage Shortfall.  The

amount by which (i) the aggregate Fixed Charges of the Company and its

subsidiaries, exceeds (ii) the consolidated EBITDA of the Company its

subsidiaries, for each fiscal period set forth below shall not be greater than

the maximum shortfall amount set opposite such fiscal period:

 

	

  Fiscal

  Period

  	

   

  	

  Maximum Shortfall

  Amount

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  July 1 through July 31, 2002

  	

   

  	

  $

  	

  262,500

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  July 1 through August

  31, 2002

  	

   

  	

  $

  	

  157,500

  	

   

  
	

   

  	

   

  	

   

  	

   

  	

   

  
	

  July 1 through

  September 30, 2002

  	

   

  	

  $

  	

  262,500

  	

  ”

  

 

4.             No

Default; Representations and Warranties, etc.

 

The Company hereby represents, warrants and confirms

that: (a) the representations and warranties of the Company contained in

Article 3 of the Securities Purchase Agreement are true and correct on and as

of the date hereof as if made on such date (except to the extent that such

representations and warranties expressly relate to an earlier date); (b) after

giving effect to this Amendment, the Company is in compliance with all of the

terms and provisions set forth in the Securities Purchase Agreement and the

other Subordinated Debt Documents; (c) after giving effect to this Amendment,

no Event of Default (as defined in the Notes) has occurred and is continuing;

and (d) the execution, delivery and performance by the Company of this

Amendment (i) have been duly authorized by all necessary action on the part of

the Company, (ii) will not violate any applicable law or regulation or the

organizational documents of the Company or any of its subsidiaries, (iii) will

not violate or result in a default under any indenture, agreement or other

instrument binding on the Company or any of its assets, including without

limitation, the Credit Agreement or any other Loan Document (as defined in the

Credit Agreement), and (iv) do not

 

3

 

require

any consent, waiver or approval of or by any person (other than the Purchasers)

which has not been obtained.

 

5.             Conditions

to Effectiveness.

 

The

effectiveness of this Amendment shall be subject to the satisfaction of the

following conditions precedent:

 

(a)           The Purchasers shall have received

counterparts of this Amendment duly executed by the Company;

 

(b)           The Purchasers shall have received a

Certificate of the Secretary of the Company, certifying that this Amendment has

been duly authorized by the Boards of Directors of the Company;

 

(c)           The Company shall have delivered to

the Purchasers evidence that Lender has executed and delivered to the Company a

written amendment and waiver with respect to the Loan Documents (as defined in

the Credit Agreement, in form and substance reasonably acceptable to the

Purchasers; and

 

(d)           The Company shall have reimbursed the

Purchasers for all reasonable costs and expenses, including reasonable legal

fees and disbursements, incurred by the Purchasers in connection with this

Amendment and the issuance by Purchasers of that certain Warrant to Robert

Stanojev dated August 5, 2002 and the transactions contemplated hereby.

 

6.             Miscellaneous.

 

(a)           Except as specifically amended

hereby, all of the terms and provisions of the Securities Purchase Agreement,

the other Subordinated Debt Documents and all related documents, shall remain in

full force and effect.

 

(b)           This Amendment may be executed in any

number of counterparts, each of which, when executed and delivered, shall be an

original, but all counterparts shall together constitute one instrument.  Delivery of an executed signature page

hereto by facsimile transmission shall be effective as delivery of a manually

executed counterpart hereof.

 

(c)           This Amendment shall be governed by

the laws of the State of Illinois and shall be binding upon and inure to the

benefit of the parties hereto and their respective successors and assigns.

 

[Remainder of Page Left Intentionally Blank]

 

4

 

IN WITNESS WHEREOF, the parties hereto have caused

this Amendment to be duly executed by their respective authorized officers as

of the day and year first above written.

 

 

	

  COMPANY:

  
	

   

  
	

  ALTERNATIVE

  RESOURCES CORPORATION

  
	

   

  	

   

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  	

   

  
	

   

  	

  Title:

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  PURCHASERS:

  
	

   

  
	

  WYNNCHURCH

  CAPITAL PARTNERS, L.P.

  
	

   

  	

   

  
	

  By:

  	

  Wynnchurch

  Management Inc., its general partner

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  	

   

  
	

   

  	

  Title:

  	

   

  	

   

  
	

   

  	

   

  
	

   

  	

   

  
	

  WYNNCHURCH

  CAPITAL PARTNERS CANADA, L.P.

  
	

   

  	

   

  
	

  By:

  	

  Wynnchurch GP

  Canada, Inc., its general partner

  
	

   

  	

   

  
	

  By:

  	

   

  	

   

  
	

   

  	

  Name:

  	

   

  	

   

  
	

   

  	

  Title:

  	

   

  	

   

  
					

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00042-of-00352.parquet"}]]