Document:

Exhibit 10.2

 

FIRST AMENDMENT TO TERM LOAN AGREEMENT

 

This FIRST AMENDMENT TO TERM LOAN AGREEMENT (this “Amendment”) is made and entered into as of August 8, 2013, by and among HARTE-HANKS, INC., a Delaware corporation (the “Borrower”), the lenders party hereto, and BANK OF AMERICA, N.A., as Administrative Agent (the “Administrative Agent”), and joined in for certain purposes by the Subsidiaries of the Borrower signatory hereto (the “Subsidiary Guarantors”).

 

WHEREAS, the parties hereto are party to that certain Term Loan Agreement dated as of August 16, 2011 (as amended, the “Term Loan Agreement”);

 

WHEREAS, the Subsidiary Guarantors are party to that certain Unlimited Guaranty dated as of August 16, 2011 (as amended, the “Subsidiary Guaranty”);

 

WHEREAS, concurrently herewith, the Borrower is entering into an amendment and restatement of the Existing Revolver Credit Agreement (the “New Revolver Credit Agreement”); and

 

WHEREAS, each of the Borrower and each Subsidiary Guarantor has requested that the Lenders and the Administrative Agent agree, and Lenders constituting Required Lenders and the Administrative Agent have agreed, on the terms and subject to the conditions set forth herein, to make certain amendments to the Term Loan Agreement and the Subsidiary Guaranty to permit the New Revolver Credit Agreement and to conform to certain amendments being made to the provisions of the New Revolver Credit Agreement;

 

NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

 

1.              Definitions.  Capitalized terms used herein without definition or not amended in this Amendment shall have the meaning assigned to such terms in the Term Loan Agreement.  This Amendment shall constitute a Loan Document under the Term Loan Agreement for all purposes.

 

2.              Amendments to Term Loan Agreement and Subsidiary Guaranty.

 

A.                                    Schedules.  Each of the Schedules to the Term Loan Agreement which is attached hereto as a Schedule is hereby deemed amended in its entirety and replaced with the corresponding Schedule attached hereto, all of which updated Schedules must be satisfactory to the Lenders.

 

B.                                    Schedule 7.05 (Specified Disposition).  Schedule 7.05 attached hereto is hereby added to the Term Loan Agreement as Schedule 7.05 thereto.

 

C.                                    Exhibit C (Form of Compliance Certificate).  Exhibit C to the Term Loan Agreement is hereby deleted and replaced in its entirety with Exhibit C attached hereto.

 

 

D.                                    Adjusted Leverage Ratio.  The definition of “Adjusted Leverage Ratio” in Section 1.01 (Defined Terms) of the Term Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

““Adjusted Leverage Ratio” means, as at any date of determination, the ratio of (a) Consolidated Funded Indebtedness minus non-restricted cash held by the Borrower or any Subsidiary, as of such date, to (b) Consolidated EBITDA for the Reference Period most recently ended.”

 

E.                                     Commodity Exchange Act.  The new defined term “Commodity Exchange Act” is hereby added to Section 1.01 (Defined Terms) of the Term Loan Agreement in appropriate alphabetical order as follows:

 

““Commodity Exchange Act” means the Commodity Exchange Act (7 U.S.C. §1 et seq.), as amended from time to time, and any successor statute.”

 

F.                                      Excluded Swap Obligation.  The new defined term “Excluded Swap Obligation” is hereby added to Section 1.01 (Defined Terms) of the Term Loan Agreement in appropriate alphabetical order as follows:

 

““Excluded Swap Obligation” means, with respect to any Subsidiary Guarantor, any Swap Obligation if, and to the extent that, all or a portion of the Guarantee of such Subsidiary Guarantor of, or the grant by such Subsidiary Guarantor of a security interest to secure, such Swap Obligation (or any Guarantee thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading Commission (or the application or official interpretation of any thereof) by virtue of such Subsidiary Guarantor’s failure for any reason to constitute an “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving effect to Section 6.14 and any other “keepwell, support or other agreement” for the benefit of such Subsidiary Guarantor and any and all guarantees of such Subsidiary Guarantor’s Swap Obligations by other Loan Parties) and the regulations thereunder at the time the Guarantee of such Subsidiary Guarantor, or the grant by such Subsidiary Guarantor of a security interest, becomes effective with respect to such Swap Obligation.  If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion of such Swap Obligation that is attributable to swaps for which such Guarantee or security interest is or becomes illegal.”

 

G.                                    Existing Revolver Credit Agreement.  The definition of “Existing Revolver Credit Agreement” in Section 1.01 (Defined Terms) of the Term Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

““Existing Revolver Credit Agreement” means that certain Amended and Restated Credit Agreement, dated as of August 8, 2013, among the Borrower, Bank of America, as Administrative Agent, Swing Line Lender and L/C Issuer thereunder, and the lenders party thereto.”

 

2

 

H.                                   First Amendment Date.  The new defined term “First Amendment Date” is hereby added to Section 1.01 (Defined Terms) of the Term Loan Agreement in appropriate alphabetical order as follows:

 

““First Amendment Date” means August 8, 2013.”

 

I.                                        Obligations.  The definition of “Obligations” in Section 1.01 (Defined Terms) of the Term Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

““Obligations” means all advances to, and debts, liabilities, obligations, covenants and duties of, the Loan Parties arising under any Loan Document or otherwise with respect to the Term Loan, or arising under any Guaranteed Hedge Agreement or any Guaranteed Cash Management Agreement, in each case whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees that accrue after the commencement by or against any Loan Party or any Affiliate thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such proceeding; provided, however, that the Obligations shall exclude any Excluded Swap Obligations.”

 

J.                                        Responsible Officer.  The definition of “Responsible Officer” in Section 1.01 (Defined Terms) of the Term Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

““Responsible Officer” means the chief executive officer, president, senior vice president, executive vice president, vice president (tax), chief financial officer, chief accounting officer, chief operating officer, treasurer or assistant treasurer of the applicable Loan Party, and with respect to any Subsidiary Guarantor, a vice president, and solely for purposes of the delivery of incumbency certificates pursuant to Section 4.01, the secretary or any assistant secretary of the applicable Loan Party, provided that the chief financial officer, chief accounting officer or other senior executive financial officer shall execute any covenant compliance related certificates.  Any document delivered hereunder that is signed by a Responsible Officer of the applicable Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership and/or other action on the part of the applicable Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of the applicable Loan Party.”

 

K.                                   Specified Disposition.  The new defined term “Specified Disposition” is hereby added to Section 1.01 (Defined Terms) of the Term Loan Agreement in appropriate alphabetical order as follows:

 

““Specified Disposition” means the Disposition set forth on Schedule 7.05 hereto.”

 

3

 

L.                                     Specified Loan Party.  The new defined term “Specified Loan Party” is hereby added to Section 1.01 (Defined Terms) of the Term Loan Agreement in appropriate alphabetical order as follows:

 

““Specified Loan Party” means any Loan Party that is not an “eligible contract participant” under the Commodity Exchange Act (determined prior to giving effect to Section 6.14).”

 

M.                                 Swap Obligation.  The new defined term “Swap Obligation” is hereby added to Section 1.01 (Defined Terms) of the Term Loan Agreement in appropriate alphabetical order as follows:

 

““Swap Obligation” means any obligation to pay or perform under any agreement, contract or transaction that constitutes a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.”

 

N.                                    Guaranteed Hedge Agreements.  Section 5.05 of the Term Loan Agreement is amended by (i) inserting the following at the end of the Heading of such Section: “;  Guaranteed Hedge Agreements”; and (ii) by inserting the following new clause (d) at the end thereof:

 

“(d)         As of the First Amendment Date, no Loan Party is a party to any Guaranteed Hedge Agreements.”

 

O.                                    Certificates; Other Information.  Clause (g) contained in Section 6.02 of the Term Loan Agreement is amended to read in its entirety as follows:

 

“(g)         promptly, such additional information regarding the business, financial or corporate affairs of the Borrower or any Subsidiary (including, without limitation, information and certifications regarding whether the Subsidiary Guarantors constitute “eligible contract participants” as defined in the Commodity Exchange Act and the regulations thereunder) and, or compliance with the terms of the Loan Documents, as the Administrative Agent or any Lender may from time to time reasonably request.”

 

P.                                      Keepwell.  The following new Section 6.13 is added to Article 6 of the Term Loan Agreement:

 

“6.13      Keepwell.  Absolutely, unconditionally and irrevocably undertake (and the Borrower hereby does so undertake) to provide such funds or other support to each Specified Loan Party with respect to Swap Obligations constituting Obligations as may be needed by such Specified Loan Party from time to time to honor all of its obligations under the Subsidiary Guaranty and the other Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering the Borrower’s undertakings hereunder voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The obligations and undertakings of the Borrower under this Section

 

4

 

shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in full and the Subsidiary Guaranty has been terminated.  The Borrower intends this Section to constitute, and this Section shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified Loan Party for all purposes of the Commodity Exchange Act.”

 

Q.                                    Liens. The word “and” is hereby moved from the end of clause (m) to the end of clause (n) of Section 7.01 (Liens) of the Term Loan Agreement, the period at the end of said Section 7.05 is hereby deleted, and the following new clause (o) is hereby added to said Section 7.01 as follows:

 

“(o) with respect to any letters of credit issued for the account of the Borrower or any of its Subsidiaries pursuant to the Existing Revolver Credit Agreement, any cash collateral created with respect to any such letter of credit.”

 

R.                                    Fundamental Changes.  Clause (b)(i) of Section 7.04 (Fundamental Changes) of the Term Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

“(i)          upon the consummation thereof, such acquisition target would be wholly-owned directly by the Borrower or a wholly-owned Subsidiary (including as a result of a merger or consolidation);”

 

S.                                      Dispositions.  (1) The words “during the term of this Agreement” are deleted from clause (n) of Section 7.05 (Dispositions) of the Term Loan Agreement and are replaced with the following: “from and after the First Amendment Date”; (2) the word “and” is hereby moved from the end of clause (m) to the end of clause (n) of said Section 7.05, and the following new clause (o) is hereby added to said Section 7.05 as follows:

 

“(o)         the Specified Disposition;”

 

and (3) the proviso set forth at the end of said Section 7.05 is hereby deleted and replaced in its entirety with the following proviso:

 

“provided, however, that any Disposition pursuant to this Section 7.05 (except for Dispositions pursuant to clauses (d), (f), (h), (k), (l), (o) and, solely with respect to Subsidiaries of the Borrower, (m) of this Section 7.05) shall be for fair market value.”

 

T.                                     Transactions with Affiliates.  (1)  Clause (h) of Section 7.08 (Transactions with Affiliates) of the Term Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

“(h) the issuance of stock of the Borrower and of options to purchase stock of the Borrower pursuant to any of (w) the Harte-Hanks, Inc. Amended and Restated 1991 Stock Option Plan, (x) the Harte-Hanks, Inc. 2005 Omnibus

 

5

 

Incentive Plan, (y) the Harte-Hanks, Inc. 2013 Omnibus Incentive Plan, or (z) the grant of equity awards to the Chief Executive Officer of the Borrower as disclosed on Form 8-K, dated June 11, 2013, and the exercise of any options or rights granted thereby (including any amendments, modifications or replacements thereof; provided that such amendment, modification or replacement does not substantially change the character of such stock option program) and”,

 

and (2) the following new clause (j) is hereby added to said Section 7.08 as follows:

 

“and (j) transactions set forth on Schedule 5.18”.

 

U.                                    Burdensome Agreements.  Clause (b) of Section 7.09 (Burdensome Agreements) of the Term Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

“(b) requires the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person, except as set forth in Section 7.01 of the Existing Revolver Credit Agreement.”

 

V.                                    Consolidated Leverage Ratio.  Section 7.11(b) (Consolidated Leverage Ratio) of the Term Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

“Consolidated Leverage Ratio.  Permit the Consolidated Leverage Ratio, as of the end of any fiscal quarter of the Borrower, for the Reference Period then ending to be greater than 2.25:1.00; provided, however, that on a one-time basis only during the term of this Agreement, in the event that the Borrower consummates a purchase or acquisition permitted under Section 7.04(b) that would result, on a pro forma basis (calculated in accordance with Section 7.04(b)(iv)), in a Consolidated Leverage Ratio of 2.00:1.00 or higher (but not above 3.00:1.00), the Borrower may elect that the permitted maximum Consolidated Leverage Ratio be 3.00:1.00 for the fiscal quarter in which such purchase or acquisition is consummated and for the following three consecutive fiscal quarters (after which, the maximum permitted Consolidated Leverage Ratio shall revert to 2.25:1.00); provided, further, that the Borrower shall provide notice to the Administrative Agent that it will be relying upon the temporary increase in the maximum permitted Consolidated Leverage Ratio prior to the consummation of the applicable purchase or acquisition.”

 

W.                                 Sale and Leaseback.  The words “during the term of this Agreement” are deleted from Section 7.12 (Sale and Leaseback) of the Term Loan Agreement and are replaced with the following: “from and after the First Amendment Date”.

 

X.                                    Foreign Operations.  Section 7.14 (Foreign Operations) of the Term Loan Agreement is hereby deleted and replaced in its entirety with the following:

 

6

 

“Foreign Operations.  Foreign Subsidiaries of the Borrower, whether direct or indirect, shall not at any time account for more than (i) 20% of Consolidated EBITDA, (ii) 25% of the aggregate consolidated revenue of the Borrower and its Subsidiaries, or (iii) 20% of the aggregate value of the assets of the Borrower and its Subsidiaries.”

 

Y.                                    Guaranty Keepwell.  The following new paragraph is hereby added after the existing paragraph in Section 4 (Covenants) of the Subsidiary Guaranty:

 

“Each Guarantor that is a Qualified ECP Guarantor at the time the Guarantee hereunder by any Specified Loan Party becomes effective with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or other support to each Specified Loan Party with respect to such Swap Obligations as may be needed by such Specified Loan Party from time to time to honor all of its obligations under this Guaranty and the other Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s undertakings hereunder voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The obligations and undertakings of each Qualified ECP Guarantor under this paragraph shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in full.  Each Qualified ECP Guarantor intends this paragraph to constitute, and this paragraph shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified Loan Party for all purposes of the Commodity Exchange Act.  For purposes of this paragraph, “Qualified ECP Guarantor” means, at any time, each Guarantor with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity Exchange Act and can cause another person to qualify as an “eligible contract participant” at such time under §1a(18)(A)(v)(II) of the Commodity Exchange Act.”

 

3.              Conditions to Effectiveness.  This Amendment shall become effective as of the date hereof, upon the satisfaction of each of the following conditions:

 

A.                                    The receipt by the Administrative Agent of counterparts of this Amendment, duly executed by the Borrower, the Subsidiary Guarantors and the Required Lenders, sufficient in number for distribution to the Administrative Agent, each Lender and the Borrower.

 

B.                                    The receipt by the Administrative Agent of such certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers or other duly authorized officers, as the case may be, of each of the Loan Parties as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer or other duly authorized officer thereof authorized to act as a Responsible Officer or other duly authorized officer in connection with this Amendment and the other Loan Documents.

 

7

 

C.                                    The receipt by the Administrative Agent of such other assurances, certificates, documents or consents as the Administrative Agent or the Required Lenders reasonably may require.

 

D.                                    Arrangements satisfactory to the Administrative Agent for the payment on the First Amendment Date of all accrued fees of the Administrative Agent, the Arranger and the Lenders, as applicable, and expenses of the Administrative Agent and the Arranger required to be paid on or prior to the First Amendment Date shall have been made (including the reasonable fees and expenses of counsel for the Administrative Agent and the Arranger to the extent invoiced at least two (2) Business Days prior to the First Amendment Date, plus such additional amounts of such fees and expenses to be incurred through the closing proceedings within five (5) Business Days after receiving an invoice thereof (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent)).

 

4.              Representations and Warranties.  Each of the Loan Parties represents and warrants to the Lenders as follows:

 

A.                                    The execution, delivery and performance of this Amendment, and each other Loan Document and the transactions contemplated hereby and thereby (i) are within the corporate (or the equivalent company or partnership) authority of such Loan Party, (ii) have been duly authorized by all necessary corporate (or other) proceedings, (iii) do not conflict with or result in any material breach or contravention of any provision of law, statute, rule or regulation to which such Loan Party is subject or any judgment, order, writ, injunction, license or permit applicable to such Loan Party so as to materially adversely affect the assets, business or any activity of such Loan Party, and (iv) do not conflict with any provision of the corporate charter, articles or bylaws (or equivalent other company or partnership documents) of such Loan Party or any agreement or other instrument binding upon such Loan Party.

 

B.                                    The execution, delivery and performance of this Amendment and each other Loan Document will result in valid and legally binding obligations of such Loan Party enforceable against such Loan Party in accordance with the respective terms and provisions hereof and thereof, except as enforceability is limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights and except to the extent that availability of the remedy of specific performance or injunctive relief or other equitable remedy is subject to the discretion of the court before which any proceeding therefor may be brought.

 

C.                                    The execution, delivery and performance by such Loan Party of this Amendment and each other Loan Document and the transactions contemplated hereby and thereby do not require any approval or consent of, or filing with, any governmental agency or authority other than those already obtained, if any.

 

8

 

D.                                    The representations and warranties contained in Article V of the Term Loan Agreement are true and correct as of the date hereof as though made on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct as of such earlier date.  For purposes of this clause (D), the representations and warranties contained in Sections 5.05(a) and (b) of the Term Loan Agreement shall be deemed to refer to the most recent statements furnished pursuant to Sections 6.01(a) and (b), respectively, of the Term Loan Agreement.

 

E.                                     Both before and after giving effect to this Amendment, no Default or Event of Default under the Term Loan Agreement has occurred and is continuing.

 

5.              No Waiver.  Nothing contained herein shall be deemed to (i) constitute a waiver of any Default or Event of Default that may heretofore or hereafter occur or have occurred and be continuing or, except as expressly set forth in this Amendment, to modify any provision of the Term Loan Agreement or the Subsidiary Guaranty, or (ii) give raise to any defenses or counterclaims to the Guaranteed Parties’ right to compel payment of the Obligations when due or to otherwise enforce its respective rights and remedies under the Term Loan Agreement, the Subsidiary Guaranty and the other Loan Documents.

 

6.              Ratification, etc.  Except as expressly amended hereby, the Term Loan Agreement, the Subsidiary Guaranty, the other Loan Documents and all documents, instruments and agreements related thereto are hereby ratified and confirmed in all respects and shall continue in full force and effect.  This Amendment, as it applies to the Term Loan Agreement, and the Term Loan Agreement shall hereafter be read and construed together as a single document, and all references in the Term Loan Agreement, any other Loan Document or any agreement or instrument related to the Term Loan Agreement shall hereafter refer to the Term Loan Agreement as amended by this Amendment.  This Amendment, as it applies to the Subsidiary Guaranty, and the Subsidiary Guaranty shall hereafter be read and construed together as a single document, and all references in the Term Loan Agreement, the Subsidiary Guaranty, any other Loan Document or any agreement or instrument related to the Subsidiary Guaranty shall hereafter refer to the Subsidiary Guaranty as amended by this Amendment.

 

Without limiting the generality of the foregoing, the Subsidiary Guarantors hereby acknowledge and agree to the terms and conditions of this Amendment and, by executing this consent, hereby absolutely and unconditionally reaffirm to the Guaranteed Parties that their Guarantee under the Subsidiary Guaranty, as amended by this Amendment, remains in full force and effect and covers, without limitation, all Obligations under the Term Loan Agreement, as amended by this Amendment.

 

7.              Governing Law.  THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

8.              Counterparts.  This Amendment may be executed in any number of counterparts and by different parties hereto on separate counterparts, each of which when so executed and delivered shall be an original, but all of which counterparts taken together shall be deemed to

 

9

 

constitute one and the same instrument.  Any counterpart signed by all parties may be introduced into evidence in any action or proceeding without having to produce or account for the other counterparts.  Likewise, the existence of this Amendment may be established by the introduction into evidence of counterparts that are separately signed, provided they are otherwise identical in all material respects.  This Amendment, to the extent signed and delivered by means of a facsimile machine or other electronic transmission in which the actual signature is evident, shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person.  At the request of any party hereto, each other party hereto or thereto shall re-execute original forms hereof and deliver them to all other parties.  No party hereto shall raise the use of a facsimile machine or other electronic transmission in which the actual signature is evident to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of a facsimile machine or other electronic transmission in which the actual signature is evident as a defense to the formation of a contract and each party forever waives such defense.

 

[SIGNATURES FOLLOW]

 

10

 

IN WITNESS WHEREOF, each of the undersigned has duly executed this First Amendment to Term Loan Agreement as a sealed instrument as of the date first set forth above.

 

	
 
    	
HARTE-HANKS, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Douglas C. Shepard
    
	
 
    	
Name:
    	
Douglas C. Shepard
    
	
 
    	
Title:
    	
Executive Vice President & Chief
    
	
 
    	
 
    	
Financial Officer
    

 

Acknowledged and Agreed:

 

HARTE-HANKS SHOPPERS, INC.

SOUTHERN COMPRINT CO.

 

 

	
By:
    	
/s/ Douglas C. Shepard
    	
 
    
	
Name:
    	
Douglas C. Shepard
    	
 
    
	
Title:
    	
Executive Vice President
    	
 
    

 

ABERDEEN GROUP, INC.

HARTE-HANKS DATA SERVICES LLC

HARTE-HANKS DATA TECHNOLOGIES, INC. 

HARTE-HANKS DIRECT, INC.

HARTE-HANKS DIRECT MARKETING/BALTIMORE, INC. 

HARTE-HANKS DIRECT MARKETING/JACKSONVILLE, LLC 

HARTE-HANKS DIRECT MARKETING/KANSAS CITY, LLC

HARTE-HANKS FLORIDA, INC.

HARTE-HANKS LOGISTICS, LLC

HARTE-HANKS MARKET INTELLIGENCE, INC. 

HARTE-HANKS RESPONSE MANAGEMENT/AUSTIN, INC. 

HARTE-HANKS RESPONSE MANAGEMENT/BOSTON, INC. 

HARTE-HANKS STRATEGIC MARKETING, INC.

SALES SUPPORT SERVICES, INC.

 

 

	
By:
    	
/s/ Douglas C. Shepard
    	
 
    
	
Name:
    	
Douglas C. Shepard
    	
 
    
	
Title:
    	
Vice President
    	
 
    

 

HARTE-HANKS STOCK PLAN, INC. 

HARTE-HANKS STS, INC.

 

	
By:
    	
/s/ Douglas C. Shepard
    	
 
    
	
Name:
    	
Douglas C. Shepard
    	
 
    
	
Title:
    	
President
    	
 
    

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO TERM LOAN AGREEMENT (BOA/HARTE-HANKS 2013)]

 

 

	
 
    	
BANK OF AMERICA, N.A., as

Administrative Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Maria F. Maia
    
	
 
    	
Name:
    	
Maria F. Maia
    
	
 
    	
Title:
    	
Managing Director
    

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO TERM LOAN AGREEMENT (BOA/HARTE-HANKS 2013)]

 

 

	
 
    	
BANK OF AMERICA, NA.,   as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Maria F. Maia
    
	
 
    	
Name:
    	
Maria F. Maia
    
	
 
    	
Title:
    	
Managing Director
    

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO TERM LOAN AGREEMENT (BOA/HARTE-HANKS 2013)]

 

 

	
 
    	
WELLS FARGO BANK, NA., as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Nathan Rantala
    
	
 
    	
Name:
    	
Nathan Rantala
    
	
 
    	
Title:
    	
Director
    

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO TERM LOAN AGREEMENT (BOA/HARTE-HANKS 2013)]

 

 

	
 
    	
JPMorgan Chase Bank, N.A., as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Laura Woodward
    
	
 
    	
Name:
    	
Laura Woodward
    
	
 
    	
Title:
    	
Officer
    

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO TERM LOAN AGREEMENT (BOA/HARTE-HANKS 2013)]

 

 

	
 
    	
Compass Bank, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Adrayll Askew
    
	
 
    	
Name:
    	
Adrayll Askew
    
	
 
    	
Title:
    	
Senior Vice President
    

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO TERM LOAN AGREEMENT (BOA/HARTE-HANKS 2013)]

 

 

	
 
    	
COMERICA BANK, as a Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Joey Powell
    
	
 
    	
Name:
    	
Joey Powell
    
	
 
    	
Title:
    	
Vice President
    

 

[SIGNATURE PAGE TO FIRST AMENDMENT TO TERM LOAN AGREEMENT (BOA/HARTE-HANKS 2013)]

 

 

Exhibit C

 

Form of Compliance Certificate

 

Financial Statement Date:              ,

 

To: Bank of America, N.A., as Administrative Agent

 

Ladies and Gentlemen:

 

Reference is made to that certain Term Loan Agreement, dated as of August 16, 2011 (as amended, restated, extended, supplemented or otherwise modified in writing from time to time, the “Term Loan Agreement;” the terms defined therein being used herein as therein defined), among Harte-Hanks, Inc., a Delaware corporation (the “Borrower”), the Lenders from time to time party thereto, and Bank of America, N.A., as Administrative Agent.

 

The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the                of the Borrower, and that, as such, he/she is authorized to execute and deliver this Compliance Certificate to the Administrative Agent on the behalf of the Borrower, and that:

 

[Use following paragraph 1 for fiscal year-end financial statements]

 

1.                                      The Borrower has delivered the year-end audited financial statements required by Section 6.01(a) of the Term Loan Agreement for the fiscal year of the Borrower ended as of the above date, together with the report and opinion of an independent certified public accountant required by such section.

 

[Use following paragraph 1 for fiscal quarter-end financial statements]

 

1.                                      The Borrower has delivered the unaudited financial statements required by Section 6.01(b) of the Term Loan Agreement for the fiscal quarter of the Borrower ended as of the above date.  Such financial statements fairly present the financial condition, results of operations and cash flows of the Borrower and its Subsidiaries in accordance with GAAP as at such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.

 

2.                                      The undersigned has reviewed and is familiar with the terms of the Term Loan Agreement and has made, or has caused to be made under his/her supervision, a detailed review of the transactions and condition (financial or otherwise) of the Borrower during the accounting period covered by such financial statements.

 

3.                                      A review of the activities of the Borrower during such fiscal period has been made under the supervision of the undersigned with a view to determining whether during such fiscal period the Borrower performed and observed all its Obligations under the Loan Documents, and

 

[select one:]

 

 

[to the best knowledge of the undersigned, during such fiscal period the Borrower performed and observed each covenant and condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.]

 

—or—

 

[to the best knowledge of the undersigned, during such fiscal period the following covenants or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:]

 

4.                                      The representations and warranties of the Borrower contained in Article V of the Term Loan Agreement, and any representations and warranties of the Borrower that are contained in any document furnished at any time under or in connection with the Loan Documents, are true and correct in all material respects (except to the extent already qualified by materiality which such representations and warranties shall be true and correct in all respects) on and as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this Compliance Certificate, the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Term Loan Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Term Loan Agreement, including the statements in connection with which this Compliance Certificate is delivered.

 

5.                                      The financial covenant analyses and information set forth on Schedule 1 attached hereto are true and accurate on and as of the date of this Compliance Certificate.

 

IN WITNESS WHEREOF, the undersigned has executed this Compliance Certificate as of                   ,                .

 

	
 
    	
HARTE-HANKS, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
Title:
    	
 
    

 

 

For the Quarter/Year ended                      (“Statement Date”)

 

SCHEDULE 1
  to the Compliance Certificate
 ($ in 000’s)

 

	
I.
    	
Section 7.11(a) —   Consolidated Interest Coverage Ratio.
    
	
 
    	
 
    	
 
    
	
 
    	
A.
    	
Consolidated   EBITDA for four consecutive fiscal quarters ending on above date (“Subject   Period”):
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.
    	
Consolidated   Net Income for Subject Period:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
Consolidated   Interest Charges for Subject Period (Line I.B.5 below):
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
Income   taxes for Subject Period:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.
    	
Depreciation   and depletion expenses for Subject Period:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.
    	
Amortization   expenses for Subject Period:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
6.
    	
Lines   I.A.1 + 2 + 3 + 4 + 5:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.
    	
Consolidated   Interest Charges for Subject Period:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.
    	
Interest   required to be paid or accrued on Indebtedness of the Borrower (whether such   interest was or is required to be reflected as an item of expense or   capitalized, including payments consisting of interest in respect of any   Capitalized Lease, and including commitment fees, letter of credit fees,   agency fees, balance deficiency fees and similar fees or expenses for Subject   Period in connection with the borrowing of money or any deferred purchase   price obligation):
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
Non-cash   amortization of debt issuance costs:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
Write-off   of deferred financing fees and charges in connection with the repayment of   the 2006 Term Loan Agreement and the 2008 Term Loan Agreement, in each case,   that are classified as interest under GAAP:
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.
    	
Any   prepayment penalties or premiums:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.
    	
Line   I.B.1 — Line I.B.2 — Line I.B.3 — Line I.B.4:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.
    	
Consolidated   Interest Coverage Ratio (Line I.A.6  ̧ Line I.B.5):
    	
        to   1.00
    
	
 
    	
 
    	
 
    
	
 
    	
Minimum   required: 2.75:1.00
    	
 
    
	
 
    	
 
    
	
II.
    	
Section 7.11(b) —   Consolidated Leverage Ratio.
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.
    	
Consolidated   Funded Indebtedness at Statement Date:
    	
 
    
									

 

 

	
 
    	
 
    	
1.
    	
The   outstanding principal amount of all obligations, whether current or   long-term, for borrowed money (including the Obligations under the Term Loan   Agreement) and all obligations evidenced by bonds, debentures, notes, loan   agreements or other similar instruments:
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
All   purchase money Indebtedness:
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
All   direct obligations arising under letters of credit (including standby and   commercial), bankers’ acceptances, bank guaranties, surety bonds and similar   instruments (but excluding the aggregate amount available to be drawn with   respect to Letters of Credit (as defined in the Existing Revolver Credit   Agreement) outstanding):
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.
    	
All   obligations in respect of the deferred purchase price of property or services   (other than trade accounts payable in the ordinary course of business):
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.
    	
Attributable   Indebtedness in respect of Capitalized Leases:
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
6.
    	
Without   duplication, all Guarantees with respect to outstanding Indebtedness of the   types specified in Lines II.A.1-II.A.5 above of Persons other than the   Borrower or any of its Subsidiaries:
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.
    	
All   Indebtedness of the types referred to in Lines II.A.1-II.A.6 above of any   partnership or joint venture other than debt made non-recourse to the   Borrower or such Subsidiary:
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
8.
    	
Lines   II.A.1 + 2 + 3 + 4 + 5 + 6 + 7:
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.
    	
Consolidated   EBITDA for Subject Period:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.
    	
Line   I.A.6 above:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
Permitted   add-backs to EBITDA for all Material Acquisitions consummated during the   Subject Period, as permitted pursuant to Section 7.04(b):
    	
 
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
Adjusted   Consolidated EBITDA (Line II.B.1 + Line II.B.2):
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.
    	
Consolidated   Leverage Ratio (Line II.A.8  ̧ Line II.B.3):
    	
        to   1.00
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Maximum   permitted: 2.25:1.00(1)
    	
 
    

 

(1)  The maximum permitted Consolidated Leverage Ratio may be temporarily increased to 3.00:1.00 on a one-time basis, for four consecutive fiscal quarters, in accordance with Section 7.11(b).

 

 

	
III.
    	
Adjusted   Leverage Ratio.
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.
    	
1.
    	
Consolidated   Funded Indebtedness at Statement Date (Line II.A.8 above):
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
Non-restricted   cash held by Borrower or any Subsidiary at Statement Date:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
Line   III.A.1 — Line III.A.2:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.
    	
Adjusted   Consolidated EBITDA for Subject Period (Line II.B.3 above):
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.
    	
Adjusted   Leverage Ratio (Line III.A.3  ̧ Line III.B):
    	
         to   1.00
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
IV.
    	
Section 6.12(a) —   Material Subsidiaries.
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
A.
    	
1.
    	
Total   assets of the Borrower and Material Subsidiaries at Statement Date:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
Consolidated   total assets of the Borrower and its Domestic Subsidiaries at Statement Date:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
Line   IV.A.1  ̧ Line IV.A.2:
    	
                 %
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Minimum   required: 90%
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
B.
    	
1.
    	
Total   revenues of the Borrower and Material Subsidiaries for Subject Period:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
Consolidated   total revenues of the Borrower and its Domestic Subsidiaries for Subject   Period:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
Line   IV.B.1  ̧ Line IV.B.2:
    	
                 %
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Minimum   required: 90%
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
C.
    	
1.
    	
EBITDA   of the Borrower and Material Subsidiaries for Subject Period, based on   Consolidated EBITDA:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.
    	
EBITDA   of the Borrower and its Domestic Subsidiaries for Subject Period, based on   Consolidated EBITDA:
    	
$                 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.
    	
Line   IV.C.1  ̧ Line IV.C.2:
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
                 %
    
	
 
    	
 
    	
Minimum   required: 90%Exhibit 10.3

 

AMENDED AND RESTATED UNLIMITED GUARANTY

 

WHEREAS, pursuant to the Credit Agreement referenced below, the Lenders and the L/C Issuer have severally agreed to make extensions of credit to Harte-Hanks, Inc., a Delaware corporation (the “Borrower”) upon the terms and subject to the conditions set forth therein;

 

WHEREAS, certain of the parties hereto had previously entered into the Unlimited Guaranty (the “Prior Guaranty”) dated as of August 16, 2011 in connection with the Existing Credit Agreement (as defined in the Credit Agreement referred to below);

 

WHEREAS, the parties to the Prior Guaranty and the Lenders desire to amend and restate the Prior Guaranty in the form of this Guaranty;

 

WHEREAS, each of the Subsidiary Guarantors signatory hereto has agreed to guaranty the Obligations;

 

WHEREAS, each such Subsidiary Guarantor will derive substantial direct and indirect benefits from the making of the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a condition precedent to the obligation of the Lenders and the L/C Issuer to make their future extensions of credit to the Borrower under the Credit Agreement that such Subsidiary Guarantors shall have executed and delivered this amended and restated Guaranty to the Administrative Agent;

 

NOW, THEREFORE, FOR VALUE RECEIVED, the sufficiency of which is hereby acknowledged, and in consideration of credit and/or financial accommodation heretofore or hereafter from time to time made or granted to the Borrower by the Guaranteed Parties (as defined in the Credit Agreement referred to below), the undersigned Guarantor (whether one or more, the “Guarantor”, and if more than one, jointly and severally) hereby furnishes its guaranty as follows:

 

1.     Credit Agreement.  The “Obligations” and all other capitalized terms not specifically defined herein shall have the respective meanings provided therefor in that certain Amended and Restated Credit Agreement dated as of August 8, 2013 (as amended, modified, supplemented or restated and in effect from time to time, the “Credit Agreement”), by and among the Borrower, the lending institutions which are or may become parties thereto, and Bank of America, N.A., as administrative agent (in such capacity, the “Administrative Agent”) for itself and the other Guaranteed Parties (as defined therein).

 

2.     Guaranty.  The Guarantor hereby absolutely, unconditionally and irrevocably guarantees to the Guaranteed Parties the full and prompt payment when due, whether at stated maturity, by required prepayment, upon acceleration, demand or otherwise, and at all times thereafter, of the Guaranteed Obligations (as hereinafter defined) and the punctual performance of all of the terms contained in the documents executed by the Loan Parties in favor of the Guaranteed Parties in connection with the Guaranteed Obligations.  This Guaranty is a guaranty of payment and performance and is not merely a guaranty of collection.  As used herein, the term “Guaranteed Obligations” means any and all of the Obligations, whether for principal, interest,

 

 

premiums, fees, indemnities, damages, costs, expenses or otherwise, of the Loan Parties to the Guaranteed Parties, and whether arising under the Credit Agreement or under any other Loan Document, any Guaranteed Cash Management Agreement or any Guaranteed Hedge Agreement (including all renewals, extensions, amendments, refinancings and other modifications thereof and all costs, attorneys’ fees and expenses incurred by the Guaranteed Parties in connection with the collection or enforcement thereof).  Without limiting the generality of the foregoing, the Guaranteed Obligations shall include any such Obligations which may be or hereafter become unenforceable or shall be an allowed or disallowed claim under any proceeding or case commenced by or against the Guarantor or the Borrower or any other Loan Party under any Debtor Relief Laws, and shall include interest that accrues after the commencement by or against the Borrower or any other Loan Party of any proceeding under any Debtor Relief Laws.  Anything contained herein to the contrary notwithstanding, the obligations of the Guarantor hereunder at any time shall be limited to an aggregate amount equal to the largest amount that would not render its obligations hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of the Bankruptcy Code of the United States or any comparable provisions of any similar federal or state law.

 

3.     Representation and Warranties.  The Guarantor represents and warrants that (a) it is organized and resident in the United States of America; (b) it is duly organized and in good standing under the laws of the jurisdiction of its organization and has full capacity and right to make and perform this Guaranty, and all necessary authority has been obtained; (c) this Guaranty constitutes its legal, valid and binding obligation enforceable in accordance with its terms; (d) the making, existence and performance of this Guaranty does not and will not violate the provisions of any applicable law, regulation or order, and does not and will not result in the breach of, or constitute a default or require any consent under, any material agreement, instrument, or document to which it is a party or by which it or any of its property may be bound or affected; and (e) all consents, approvals, licenses and authorizations of, and filings and registrations with, any governmental authority required under applicable law and regulations for the making and performance of this Guaranty have been obtained or made and are in full force and effect.  The Guarantor hereby makes, for itself and on behalf of its Subsidiaries, the representations and warranties contained in Article 5 of the Credit Agreement that relate to the Guarantor (in its capacity as a Subsidiary of the Borrower and as a Loan Party) and/or its Subsidiaries (the “Representations and Warranties”) as if each such Representation and Warranty were set forth fully herein, and such Representations and Warranties are hereby incorporated by reference and shall survive until payment in full of all of the Obligations.

 

4.     Covenants.  The Guarantor hereby covenants that it will, and will cause its Subsidiaries to, comply with each of the covenants contained in Articles 6 and 7 of the Credit Agreement that relate to the Guarantor (in its capacity as a Subsidiary of the Borrower and as a Loan Party) and its Subsidiaries (the “Covenants”) as if each such Covenant were fully set forth herein, and such Covenants are incorporated by reference.  In addition, the Guarantor shall at all times be a direct or indirect wholly-owned subsidiary of Harte-Hanks, Inc. except as a result of transactions permitted under the Credit Agreement.

 

Each Guarantor that is a Qualified ECP Guarantor at the time the Guarantee hereunder by any Specified Loan Party becomes effective with respect to any Swap Obligation, hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide such funds or

 

2

 

other support to each Specified Loan Party with respect to such Swap Obligations as may be needed by such Specified Loan Party from time to time to honor all of its obligations under this Guaranty and the other Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can be hereby incurred without rendering such Qualified ECP Guarantor’s undertakings hereunder voidable under applicable law relating to fraudulent conveyance or fraudulent transfer, and not for any greater amount).  The obligations and undertakings of each Qualified ECP Guarantor under this paragraph shall remain in full force and effect until the Obligations have been indefeasibly paid and performed in full.  Each Qualified ECP Guarantor intends this paragraph to constitute, and this paragraph shall be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support, or other agreement” for the benefit of, each Specified Loan Party for all purposes of the Commodity Exchange Act.  For purposes of this paragraph, “Qualified ECP Guarantor” means, at any time, each Guarantor with total assets exceeding $10,000,000 or that qualifies at such time as an “eligible contract participant” under the Commodity Exchange Act and can cause another person to qualify as an “eligible contract participant” at such time under §1a(18)(A)(v)(II) of the Commodity Exchange Act.

 

5.     [Reserved]

 

6.     No Setoff or Deductions; Taxes; Payments.  The Guarantor shall make all payments hereunder free and clear of and without condition or deduction for any counterclaim, defense, recoupment or setoff, and, except as required by applicable Laws, without deduction or withholding for any Taxes.  The Guarantor hereby covenants that it will comply with each of the covenants contained in Section 3.01 of the Credit Agreement with respect to Taxes as if each such covenant were fully set forth herein, and such covenants are incorporated by reference.  The obligations of the Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty.

 

7.     Rights of Guaranteed Parties.  The Guarantor consents and agrees that the Guaranteed Parties may, at any time and from time to time, without notice or demand, and without affecting the enforceability or continuing effectiveness hereof:  (a) amend, extend, renew, compromise, discharge, accelerate or otherwise change the time for payment or the terms of the Guaranteed Obligations or any part thereof; (b) take, hold, exchange, enforce, waive, release, fail to perfect, sell, or otherwise dispose of any security, if any, for the payment of this Guaranty or any Guaranteed Obligations; (c) apply such security, if any, and direct the order or manner of sale thereof as the Administrative Agent, the L/C Issuer and the Guaranteed Parties in their sole discretion may determine; and (d) release or substitute one or more of any endorsers or other guarantors of any of the Guaranteed Obligations.  Without limiting the generality of the foregoing, the Guarantor consents to the taking of, or failure to take, any action which might in any manner or to any extent vary the risks of the Guarantor under this Guaranty or which, but for this provision, might operate as a discharge of the Guarantor.

 

8.     Certain Waivers.  The Guarantor waives to the fullest extent permitted by law (a) any defense arising by reason of any disability or other defense of the Borrower or any other Loan Party or any other guarantor, or the cessation from any cause whatsoever (including any act or omission of any Guaranteed Party) of the liability of the Borrower or any other Loan Party; (b) any defense based on any claim that the Guarantor’s obligations exceed or are more

 

3

 

burdensome than those of the Borrower or any other Loan Party; (c) the benefit of any statute of limitations affecting the Guarantor’s liability hereunder; (d) any right to require any Guaranteed Party to proceed against the Borrower or any other Loan Party, proceed against or exhaust any security for the Guaranteed Obligations, or pursue any other remedy in the power of any Guaranteed Party whatsoever and any defense based upon the doctrines of marshalling of assets or of election of remedies; (e) any benefit of and any right to participate in any security now or hereafter held by any Guaranteed Party; (f) any fact or circumstance related to the Guaranteed Obligations which might otherwise constitute a defense to the obligations of the Guarantor under this Guaranty and (g) any and all other defenses or benefits that may be derived from or afforded by applicable law limiting the liability of or exonerating guarantors or sureties, other than the defense that the Guaranteed Obligations have been fully performed and indefeasibly paid in full in cash.

 

The Guarantor expressly waives all presentments, demands for payment or performance, notices of nonpayment or nonperformance, protests, notices of protest, notices of dishonor and all other notices or demands of any kind or nature whatsoever with respect to the Guaranteed Obligations, and all notices of acceptance of this Guaranty or of the existence, creation or incurrence of new or additional Guaranteed Obligations.  This Guaranty shall not be affected by the genuineness, validity, regularity or enforceability of the Guaranteed Obligations or any instrument or agreement evidencing any Guaranteed Obligations, or by the existence, validity, enforceability, perfection, non-perfection or extent of any collateral therefor, or by any fact or circumstance relating to the Guaranteed Obligations which might otherwise constitute a defense to the obligations of the Guarantor under this Guaranty, and the Guarantor hereby irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or all of the foregoing.

 

9.     Obligations Independent.  The obligations of the Guarantor hereunder are those of primary obligor, and not merely as surety, and are independent of the Guaranteed Obligations and the obligations of any other guarantor, and a separate action may be brought against the Guarantor to enforce this Guaranty whether or not the Borrower or any other Loan Party or any other person or entity is joined as a party.

 

10.  Subrogation.  The Guarantor shall not exercise any right of subrogation, contribution, indemnity, reimbursement or similar rights with respect to any payments it makes under this Guaranty until all of the Guaranteed Obligations and any amounts payable under this Guaranty have been indefeasibly paid and performed in full and the Commitments are terminated.  If any amounts are paid to the Guarantor in violation of the foregoing limitation, then such amounts shall be held in trust for the benefit of the Guaranteed Parties and shall forthwith be paid to the Guaranteed Parties to reduce the amount of the Guaranteed Obligations, whether matured or unmatured.

 

11.  Termination; Reinstatement.  This Guaranty is a continuing and irrevocable guaranty of all Guaranteed Obligations now or hereafter existing and shall remain in full force and effect until all Guaranteed Obligations (other than (x) contingent indemnification obligations, (y) Obligations under any Guaranteed Cash Management Agreement as to which arrangements satisfactory to the applicable Cash Management Bank have been made, and (z) Obligations under any Guaranteed Hedge Agreement as to which arrangements satisfactory to

 

4

 

the applicable Hedge Bank have been made) and any other amounts payable under this Guaranty are indefeasibly paid in full in cash, the Commitments with respect to the Guaranteed Obligations are terminated and all Letters of Credit (other than Letters of Credit, if any, as to which other arrangements satisfactory to the Administrative Agent and the L/C Issuer shall have been made) have expired or terminated.  Notwithstanding the foregoing, this Guaranty shall continue in full force and effect or be revived, as the case may be, if any payment by or on behalf of the Borrower or any other Loan Party or the Guarantor is made, or any of the Guaranteed Parties exercises its right of setoff, in respect of the Guaranteed Obligations and such payment or the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by any of the Guaranteed Parties in their discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Laws or otherwise, all as if such payment had not been made or such setoff had not occurred and whether or not the Guaranteed Parties are in possession of or have released this Guaranty and regardless of any prior revocation, rescission, termination or reduction.  The obligations of the Guarantor under this paragraph shall survive termination of this Guaranty.

 

12.  Subordination.  The Guarantor hereby subordinates the payment of all obligations and indebtedness of the Borrower and each other Loan Party owing to the Guarantor, whether now existing or hereafter arising, including but not limited to any obligation of the Borrower or any other Loan Party to the Guarantor as subrogee of the Guaranteed Parties or resulting from the Guarantor’s performance under this Guaranty, to the indefeasible payment in full in cash of all Guaranteed Obligations; provided, that so long as no Default or Event of Default has occurred or is continuing, the Borrower and each other Loan Party may make payments in respect of indebtedness of the Borrower or such other Loan Party owing to the Guarantor to the extent permitted under the Credit Agreement.  If the Guaranteed Parties so request, upon the occurrence and continuation of a Default or an Event of Default, any such obligation or indebtedness of the Borrower or any other Loan Party to the Guarantor shall be enforced and performance received by the Guarantor as trustee for the Guaranteed Parties and the proceeds thereof shall be paid over to the Guaranteed Parties on account of the Guaranteed Obligations, but without reducing or affecting in any manner the liability of the Guarantor under this Guaranty.

 

13.  Stay of Acceleration.  In the event that acceleration of the time for payment of any of the Guaranteed Obligations is stayed, in connection with any case commenced by or against the Guarantor or the Borrower or any other Loan Party under any Debtor Relief Laws, or otherwise, all such amounts shall nonetheless be payable by the Guarantor immediately upon demand by the Guaranteed Parties.

 

14.  Expenses.  The Guarantor shall pay on demand all out-of-pocket expenses (including attorneys’ fees and expenses and the allocated cost and disbursements of internal legal counsel) in any way relating to the enforcement or protection of the Guaranteed Parties’ rights under this Guaranty or in respect of the Guaranteed Obligations, including any incurred during any “workout” or restructuring in respect of the Guaranteed Obligations and any incurred in the preservation, protection or enforcement of any rights of the Guaranteed Parties in any proceeding any Debtor Relief Laws.  The obligations of the Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty.

 

5

 

15.  Miscellaneous.  The Administrative Agent’s books and records showing the amount of the Guaranteed Obligations shall be admissible in evidence in any action or proceeding, and shall be binding upon the Guarantor and conclusive for the purpose of establishing the amount of the Guaranteed Obligations.  No provision of this Guaranty may be waived, amended, supplemented or modified, except by a written instrument executed by the Administrative Agent and the Guarantor.  No failure by the Guaranteed Parties to exercise, and no delay in exercising, any right, remedy or power hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy or power hereunder preclude any other or further exercise thereof or the exercise of any other right, power or remedy.  The remedies herein provided are cumulative and not exclusive of any remedies provided by law or in equity.  The unenforceability or invalidity of any provision of this Guaranty shall not affect the enforceability or validity of any other provision herein.  Unless otherwise agreed by the Administrative Agent and the Guarantor in writing, this Guaranty is not intended to supersede or otherwise affect any other guaranty now or hereafter given by the Guarantor for the benefit of the Guaranteed Parties or any term or provision thereof.

 

16.  Condition of Loan Parties.  The Guarantor acknowledges and agrees that it has the sole responsibility for, and has adequate means of, obtaining from the Borrower and each other Loan Party and any other guarantor such information concerning the financial condition, business and operations of the Borrower and such other Loan Parties and any such other guarantor as the Guarantor requires, and that none of the Guaranteed Parties has any duty, and the Guarantor is not relying on the Guaranteed Parties at any time, to disclose to the Guarantor any information relating to the business, operations or financial condition of the Borrower or any other Loan Party or any other guarantor (the Guarantor waiving any duty on the part of the Guaranteed Parties to disclose such information and any defense relating to the failure to provide the same).

 

17.  Setoff.  If an Event of Default shall have occurred and be continuing, the Guaranteed Parties may setoff and charge from time to time any amount so due against any or all of the Guarantor’s accounts or deposits with the Guaranteed Parties.

 

18.  Indemnification and Survival.  Without limitation on any other obligations of the Guarantor or remedies of the Guaranteed Parties under this Guaranty, the Guarantor shall, to the fullest extent permitted by law, indemnify, defend and save and hold harmless the Guaranteed Parties from and against, and shall pay on demand, any and all damages, losses, liabilities and expenses (including attorneys’ fees and expenses and the allocated cost and disbursements of internal legal counsel) that may be suffered or incurred by the Guaranteed Parties in connection with or as a result of any failure of any Guaranteed Obligations to be the legal, valid and binding obligations of the Borrower or any other Loan Party enforceable against the Borrower or such other Loan Party in accordance with their terms.  The obligations of the Guarantor under this paragraph shall survive the payment in full of the Guaranteed Obligations and termination of this Guaranty.

 

19.  GOVERNING LAW; Assignment; Jurisdiction; Notices.  THIS GUARANTY AND ANY CLAIMS, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS GUARANTY AND THE TRANSACTIONS CONTEMPLATED

 

6

 

HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.  This Guaranty shall (a) bind the Guarantor and its successors and assigns, provided that the Guarantor may not assign its rights or obligations under this Guaranty without the prior written consent of the Administrative Agent (and any attempted assignment without such consent shall be void), and (b) inure to the benefit of the Guaranteed Parties and their successors and assigns and the Guaranteed Parties may, without notice to the Guarantor and without affecting the Guarantor’s obligations hereunder, assign, sell or grant participations in the Guaranteed Obligations and this Guaranty, in whole or in part.  THE GUARANTOR IRREVOCABLY AND UNCONDITIONALLY AGREES THAT IT WILL NOT COMMENCE ANY ACTION, LITIGATION OR PROCEEDING OF ANY KIND OR DESCRIPTION, WHETHER IN LAW OR EQUITY, WHETHER IN CONTRACT OR IN TORT OR OTHERWISE, AGAINST ANY GUARANTEED PARTY OR ANY RELATED PARTY THEREOF IN ANY WAY RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS RELATING HERETO OR THERETO, IN ANY FORUM OTHER THAN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, AND ANY APPELLATE COURT FROM ANY THEREOF, AND EACH OF THE GUARANTOR AND EACH GUARANTEED PARTY IRREVOCABLY AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS  AND AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION, LITIGATION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE COURT OR, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT.  EACH OF THE GUARANTOR AND EACH GUARANTEED PARTY AGREES THAT A FINAL JUDGMENT IN ANY SUCH ACTION, LITIGATION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW.  NOTHING IN THIS GUARANTY OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT ANY GUARANTEED PARTY MAY OTHERWISE HAVE TO BRING ANY ACTION OR PROCEEDING RELATING TO THIS GUARANTY OR ANY OTHER LOAN DOCUMENT AGAINST THE GUARANTOR OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.  THE PARTIES AGREE, HOWEVER, THAT IF ALL SUCH NEW YORK COURTS DECLINE JURISDICTION OVER ANY PERSON, OR DECLINE (OR, IN THE CASE OF THE FEDERAL DISTRICT COURT, LACK) JURISDICTION OVER ANY SUBJECT MATTER OF SUCH ACTION OR PROCEEDING, AN ACTION OR PROCEEDING MAY BE BROUGHT WITH RESPECT THERETO IN ANOTHER COURT HAVING JURISDICTION, AND THAT IN THE EVENT AN ACTION OR PROCEEDING IS BROUGHT AGAINST ANY PARTY HERETO OR INVOLVING ANY OF ITS ASSETS OR PROPERTY IN ANOTHER COURT (WITHOUT ANY COLLUSIVE ASSISTANCE BY SUCH PARTY OR ANY OF ITS SUBSIDIARIES OR AFFILIATES), SUCH PARTY MAY ASSERT ANY CLAIM OR DEFENSE (INCLUDING ANY CLAIM OR DEFENSE THAT THIS SECTION WOULD OTHERWISE REQUIRE TO BE ASSERTED IN A LEGAL PROCEEDING IN A NEW YORK COURT) IN ANY SUCH ACTION OR PROCEEDING.  THE GUARANTOR IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING

 

7

 

ARISING OUT OF OR RELATING TO THIS GUARANTOR OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN THIS PARAGRAPH.  EACH OF THE GUARANTOR AND EACH GUARANTEED PARTY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.  Service of process by any Guaranteed Party in connection with such action or proceeding shall be binding on the Guarantor if sent to the Guarantor in care of the Borrower by registered or certified mail at the Borrower’s address specified in Schedule 10.02 to the Credit Agreement or such other address as from time to time notified by the Guarantor.  Nothing in this Guaranty will affect the right of any Guaranteed Party to serve process in any other manner permitted by applicable law.  The Guarantor agrees that any Guaranteed Party may disclose to any assignee of or participant in, or any prospective assignee of or participant in, any of its rights or obligations of all or part of the Guaranteed Obligations any and all information in such Guaranteed Party’s possession concerning the Guarantor, this Guaranty and any security for this Guaranty.  All notices and other communications to the Guarantor under this Guaranty shall be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail or sent by telecopier to the Guarantor in care of the Borrower at the Borrower’s address specified in Schedule 10.02 to the Credit Agreement or at such other address in the United States as may be specified by the Guarantor in a written notice delivered to the Administrative Agent at such office as the Administrative Agent may designate for such purpose from time to time in a written notice to the Guarantor.

 

20.  WAIVER OF JURY TRIAL; FINAL AGREEMENT.  TO THE EXTENT ALLOWED BY APPLICABLE LAW, THE GUARANTOR AND EACH OF THE GUARANTEED PARTIES EACH IRREVOCABLY WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING ON, ARISING OUT OF OR RELATING TO THIS GUARANTY OR THE GUARANTEED OBLIGATIONS.  THIS GUARANTY REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

21.  Counterparts.  This Guaranty may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Guaranty by facsimile or other electronic imaging means (e.g., “pdf” or “tif”) shall be effective as delivery of a manually executed counterpart of this Guaranty.

 

Executed as of the 8th day of August, 2013.

 

[SIGNATURES FOLLOW]

 

8

 

IN WITNESS WHEREOF, intending to be legally bound, the parties hereto have caused this Guaranty to be duly executed as of the date first above written.

 

	
 
    	
HARTE-HANKS SHOPPERS, INC.
    	
 
    
	
 
    	
SOUTHERN COMPRINT CO.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Douglas C. Shepard
    	
 
    
	
 
    	
Name:
    	
Douglas C. Shepard
    	
 
    
	
 
    	
Title:
    	
Executive Vice President
    	
 
    
	
 
    	
 
    
	
 
    	
ABERDEEN GROUP, INC.
    
	
 
    	
HARTE-HANKS DATA SERVICES LLC
    
	
 
    	
HARTE-HANKS DATA TECHNOLOGIES, INC.
    
	
 
    	
HARTE-HANKS DIRECT, INC.
    
	
 
    	
HARTE-HANKS DIRECT MARKETING/BALTIMORE, INC.
    
	
 
    	
HARTE-HANKS DIRECT MARKETING/JACKSONVILLE, LLC 
    
	
 
    	
HARTE-HANKS DIRECT MARKETING/KANSAS CITY, LLC 
    
	
 
    	
HARTE-HANKS FLORIDA, INC.
    
	
 
    	
HARTE-HANKS LOGISTICS, LLC
    
	
 
    	
HARTE-HANKS MARKET INTELLIGENCE, INC.
    
	
 
    	
HARTE-HANKS RESPONSE MANAGEMENT/AUSTIN, INC.
    
	
 
    	
HARTE-HANKS RESPONSE MANAGEMENT/BOSTON, INC.
    
	
 
    	
HARTE-HANKS STRATEGIC MARKETING, INC.
    
	
 
    	
SALES SUPPORT SERVICES, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Douglas C. Shepard
    	
 
    
	
 
    	
Name:
    	
Douglas C. Shepard
    	
 
    
	
 
    	
Title:
    	
Vice President
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
HARTE-HANKS STOCK PLAN, INC.
    	
 
    
	
 
    	
HARTE-HANKS STS, INC.
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/ Douglas C. Shepard
    	
 
    
	
 
    	
Name:
    	
Douglas C. Shepard
    	
 
    
	
 
    	
Title:
    	
President
    	
 
    

 

[SIGNATURE PAGE TO AMENDED AND RESTATED UNLIMITED GUARANTY (BOA/HARTE-HANKS 2013)]

 

 

Accepted and Agreed:

 

	
BANK OF AMERICA, N.A.,
    	
 
    
	
as Administrative Agent
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ Maria F. Maia
    	
 
    
	
Name:
    	
Maria F. Maia
    	
 
    
	
Title:
    	
Managing Director
    	
 
    

 

[SIGNATURE PAGE TO AMENDED AND RESTATED UNLIMITED GUARANTY (BOA/HARTE-HANKS 2013)]

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}]]