Document:

Exhibit 10.8

 

SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT

 

THIS SECOND AMENDMENT TO REVOLVING CREDIT AGREEMENT (this “Amendment”), dated as of July 29, 2008, is made by and among JTH TAX, INC., a Delaware corporation (the “Borrower”), the several banks and other financial institutions and lenders party hereto (the “Lenders”), and SUNTRUST BANK, in its capacity as administrative agent for the Lenders (the “Administrative Agent”) and as issuing bank (the “Issuing Bank”), and LTS PROPERTIES, LLC, a Virginia limited liability company (“Properties”), LTS SOFTWARE INC., a Virginia corporation (“Software”), and WEFILE INC., a Virginia corporation (“Wefile,” and together with Properties and Software, collectively, the “Subsidiary Loan Parties,” and together with the Borrower, collectively, the “Loan Parties,” and individually, a “Loan Party”).

 

RECITALS

 

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to the Revolving Credit Agreement, dated as of February 26, 2008, as amended by the Amendment to Revolving Credit Agreement, dated as of April 17, 2008, by and among the Borrower, the Lenders and the Administrative Agent (as further amended, supplemented, amended and restated or otherwise modified through the date hereof, the “Credit Agreement”). Capitalized terms defined in the Credit Agreement and undefined herein shall have the same defined meanings when such terms are used in this Amendment;

 

WHEREAS, the Borrower has requested that the Lenders amend certain provisions of the Credit Agreement as set forth below; and

 

WHEREAS, the Lenders have agreed to do so, subject to the terms and conditions of this Amendment;

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows:

 

AGREEMENT

 

1.                                       Incorporation of Recitals. The Recitals hereto are incorporated herein by reference to the same extent and with the same force and effect as if fully set forth herein.

 

2.                                       Amendments to Credit Agreement. The Credit Agreement is hereby amended as follows:

 

(a)                                  The proviso at the end of Section 7.4(k) is amended to read as follows:

 

“; provided, however, that the Administrative Agent and the Lender agree that the Investment Policy may be amended to provide that the Borrower may make an Investment by the purchase, in one or more transactions, on terms and conditions satisfactory to the Administrative Agent and the Required Lenders,

 

 

of the outstanding Capital Stock of Jackson Hewitt Tax Service Inc., the value of which shall not exceed $40,000,000 in the aggregate, which amendment to the Investment Policy is attached hereto as an amendment to Schedule 7.4.”

 

(b)                                 Schedule 7.4 to the Credit Agreement is hereby replaced with Schedule 7.4 as attached to this Amendment as Annex I.

 

(c)                                  Except as specifically modified by this Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed by the parties hereto and remain in full force and effect.

 

(d)                                 Each of the Borrower, the other Loan Parties, the Administrative Agent and each Lender agrees that, as of and after the Amendment Effective Date (as hereinafter defined), each reference in the Loan Documents to the Credit Agreement shall be deemed to be a reference to the Credit Agreement as amended hereby.

 

3.                                       Effectiveness of Amendment. This Amendment and the amendments contained herein shall become effective on the date (the “Amendment Effective Date”) when each of the conditions set forth below shall have been fulfilled to the satisfaction of the Administrative Agent:

 

(a)                                  The Administrative Agent shall have received counterparts of this Amendment, duly executed and delivered on behalf of the Borrower, the other Loan Parties, the Administrative Agent and the Lenders.

 

(b)                                 No event shall have occurred and be continuing that constitutes an Event of Default, or that would constitute an Event of Default but for the requirement that notice be given or that a period of time elapse, or both.

 

(c)                                  All representations and warranties of the Borrower contained in the Credit Agreement, and all representations and warranties of each other Loan Party in each Loan Document to which it is a party, shall be true and correct in all material respects at the Amendment Effective Date as if made on and as of such Amendment Effective Date.

 

(d)                                 The Borrower shall have delivered to the Administrative Agent (1) certified copies of evidence of all corporate and company actions taken by the Borrower and the other Loan Parties to authorize the execution and delivery of this Amendment, (2) certified copies of any amendments to the articles or certificate of incorporation, bylaws, partnership certificate or operating agreement of the Borrower and each other Loan Party since the date of the Credit Agreement, (3) a certificate of incumbency for the officers or other authorized agents or partners of the Borrower and each other Loan Party executing this Amendment, and (4) such additional supporting documents as the Administrative Agent or counsel for the Administrative Agent reasonably may request.

 

(e)                                  All documents delivered pursuant to this Amendment must be of form and substance satisfactory to the Administrative Agent and its counsel, and all legal matters incident to this Amendment must be satisfactory to the Administrative Agent’s counsel.

 

2

 

4.                                       Amendment Only; No Novation; Modification of Loan Documents. Each of the Borrower and each other Loan Party acknowledges and agrees that this Amendment only amends the terms of the Credit Agreement and the other Loan Documents and does not constitute a novation, and each of the Borrower and each other Loan Party ratifies and confirms the terms and provisions of, and its obligations under, the Credit Agreement and the other Loan Documents in all respects. Each of the Borrower and each other Loan Party acknowledges and agrees that each reference in the Loan Documents to any particular Loan Document shall be deemed to be a reference to such Loan Document as amended by this Amendment. To the extent of a conflict between the terms of any Loan Document and the terms of this Amendment, the terms of this Amendment shall control.

 

5.                                       Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the Borrower, the other Loan Parties, the Lenders and the Administrative Agent and their respective successors and assigns.

 

6.                                       No Further Amendments. Nothing in this Amendment or any prior amendment to the Loan Documents shall require the Administrative Agent or any Lender to grant any further amendments to the terms of the Loan Documents. Each of the Borrower and each other Loan Party acknowledges and agrees that there are no defenses, counterclaims or setoffs against any of their respective obligations under the Loan Documents.

 

7.                                       Representations and Warranties. Each of the Borrower and each other Loan Party represents and warrants that this Amendment has been duly authorized, executed and delivered by it in accordance with resolutions adopted by its board of directors or comparable managing body. All other representations and warranties made by the Borrower and each other Loan Party in the Loan Documents are incorporated by reference in this Amendment and are deemed to have been repeated as of the date of this Amendment with the same force and effect as if set forth in this Amendment, except that any representation or warranty relating to any financial statements shall be deemed to be applicable to the financial statements most recently delivered to the Administrative Agent in accordance with the provisions of the Loan Documents. Each of the Borrower and each other Loan Party represents and warrants to the Administrative Agent, the Lenders and the Issuing Bank that, after giving effect to the terms of this Amendment, no Default has occurred and been continuing.

 

8.                                       Confirmation of Lien. Each of the Borrower and each other Loan Party hereby acknowledges and agrees that the Collateral is and shall remain in all respects subject to the lien, charge and encumbrance of the Credit Agreement and the other Loan Documents and nothing herein contained, and nothing done pursuant hereto, shall adversely affect or be construed to adversely affect the lien, charge or encumbrance of, or conveyance effected by the Loans or the priority thereof over other liens, charges, encumbrances or conveyances.

 

9.                                       Fees and Expenses. The Borrower agrees to pay all out-of-pocket costs and expenses of the Administrative Agent and its Affiliates, including the fees, charges and disbursements of counsel for the Administrative Agent and its Affiliates, in connection with the preparation and administration of this Amendment.

 

3

 

10.                                 Severability. Any provision of this Amendment held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof; and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

11.                                 Governing Law. This Amendment shall be construed in accordance with and be governed by the law (without giving effect to the conflict of law principles thereof) of the Commonwealth of Virginia. THIS AMENDMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE COMMONWEALTH OF VIRGINIA.

 

12.                                 Counterparts. This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument. It shall not be necessary that the signature of, or on behalf of, each party, or that the signatures of the persons required to bind any party, appear on more than one counterpart.

 

[SIGNATURES ON FOLLOWING PAGES]

 

4

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective duly authorized representatives all as of the day and year first above written.

 

	
 
    	
BORROWER:
    
	
 
    	
 
    
	
 
    	
JTH   TAX, INC., a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Baumgartner
    
	
 
    	
Name:
    	
Mark   Baumgartner
    
	
 
    	
Title:
    	
Vice   President and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
SUBSIDIARY LOAN PARTIES:
    
	
 
    	
 
    
	
 
    	
LTS   PROPERTIES, LLC, a Virginia limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
JTH,   TAX, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Mark Baumgartner
    
	
 
    	
 
    	
 
    	
Mark   Baumgartner
    
	
 
    	
 
    	
 
    	
Vice   President and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
LTS SOFTWARE INC., a   Virginia corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Mark Baumgartner
    
	
 
    	
Name:
    	
Mark   Baumgartner
    
	
 
    	
Title:
    	
Vice   President and Chief Financial Officer
    
	
 
    	
 
    
	
 
    	
WEFILE INC., a Virginia corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Kathleen Curry
    
	
 
    	
Name:
    	
Kathleen   Curry
    
	
 
    	
Title:
    	
President   and Secretary
    

 

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

 

	
 
    	
ADMINISTRATIVE   AGENT:
    
	
 
    	
 
    
	
 
    	
SUNTRUST BANK
    
	
 
    	
as   Administrative Agent, as Issuing Bank and as
    
	
 
    	
Swingline   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joel S. Rhew
    
	
 
    	
Name:
    	
Joel   S. Rhew
    
	
 
    	
Title:
    	
SVP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
LENDERS:
    
	
 
    	
 
    
	
 
    	
SUNTRUST   BANK
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Joel S. Rhew
    
	
 
    	
Name:
    	
Joel   S. Rhew
    
	
 
    	
Title:
    	
SVP
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
BANK OF AMERICA, N.A.
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   David J. Doucette
    
	
 
    	
Name:
    	
David   J. Doucette
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WACHOVIA BANK, N.A.
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Paula Smith
    
	
 
    	
Name:
    	
Paula   Smith
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
RBC CENTURA BANK 
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   William W. Newell
    
	
 
    	
Name:
    	
William   W. Newell
    
	
 
    	
Title:
    	
Regional   President
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

	
 
    	
BRANCH   BANKING AND TRUST COMPANY
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   S. Hearst Vann
    
	
 
    	
Name:
    	
S.   Hearst Vann
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CITIZENS   BANK OF PENNSYLVANIA 
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Tracy Van Riper
    
	
 
    	
Name:
    	
Tracy   Van Riper
    
	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TD   BANK, N.A., successor by merger to COMMERCE   BANK, N.A.
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Robert L. Offutt
    
	
 
    	
Name:
    	
Robert   L. Offutt
    
	
 
    	
Title:
    	
Vice   President 
    
	
 
    	
 
    
	
 
    	
FIRST   TENNESSEE BANK NATIONAL ASSOCIATION
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
COMERICA   BANK 
    
	
 
    	
as   Lender
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Richard C. Hampson
    
	
 
    	
Name:
    	
Richard   C. Hampson
    
	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    
	
 
    	
STELLAR   ONE, as successor to SECOND BANK &   TRUST, as Lender
    
	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   T. Patrick Collins
    
	
 
    	
Name:
    	
T.   Patrick Collins
    
	
 
    	
Title:
    	
Corporate   Banking Manager
    
	
 
    	
 
    	
 
    

 

ANNEX I

 

Schedule 7.4

 

8

 

	
FINANCE
   DEPARTMENT
    	
 
    	
Investment Policy
    

 

	
Primary   Department
   Finance
    	
 
    	
Secondary   Department(s)
   Accounting, Internal Audit
    	
 
    	
Prior   Policy Reference(s)
   N/A
    
	
Effective   Date of Policy
   06/01/07
    	
 
    	
Date   Policy Last Reviewed
   07/11/08
    	
 
    	
Date   Policy Last Revised
   N/A
    
	
CFO   Approval/Signature
    	
 
    	
Dept.   Mgmt. Approval/Signature
    	
 
    	
Check   only one:

Procedure   is corporate policy x
   Procedure is department only policy o
    

 

	
Purpose
    	
 
    	
The purpose of this policy is to   set guidelines acceptable to the Board of Directors for the parameters,   responsibilities and controls for the investment of corporate funds and to   assure that the guidelines are followed.
    
	
 
    	
 
    	
 
    
	
Personnel
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Department
    	
 
    	
Process Title
    	
 
    	
Employee
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
Finance
    	
 
    	
Director of Finance
    	
 
    	
Mike Piper
    
	
 
    	
 
    	
 
    	
Executive
    	
 
    	
Chief Financial Officer
    	
 
    	
Mark Baumgartner
    
	
 
    	
 
    	
 
    	
Executive
    	
 
    	
Chief Executive Officer
    	
 
    	
John Hewitt
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Table   of Contents
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
1.0 Purpose
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.0 Objectives
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.0 Scope
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.0 Eligible Investments
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.0 Investment Requirements
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
6.0 Investment Holding Periods
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.0 Diversification
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
8.0 Custody of Securities
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
9.0 Exception Management
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
10.0 Roles and Responsibilities
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
11.0 Internal Controls
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
12.0 Compliance
    	
 
    	
 
    
										

 

 

	
 
    	
 
    	
1.0 Purpose
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The purpose of this policy is to   set guidelines acceptable to the Board of Directors for the parameters,   responsibilities and controls for the investment of corporate funds and to   assure that the guidelines are followed.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
2.0 Objectives
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
A.
    	
To ensure the safety and   preservation of principal.
    
	
 
    	
 
    	
 
    	
B.
    	
To maintain adequate liquidity to   meet cash flow requirements.
    
	
 
    	
 
    	
 
    	
C.
    	
To conform to all borrowing   covenants
    
	
 
    	
 
    	
 
    	
D.
    	
To obtain the best available   return consistent with safety and liquidity.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
3.0 Scope
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
This policy applies to JTH Tax   Services, Inc. (JTH) and all of its wholly owned subsidiaries, including   foreign subsidiaries. Investments are restricted to short-term investments as   defined in the policy and as governed by JTH’s Finance department for all of   its subsidiaries. For the purpose of this policy, the Chief Executive   Officer, the Chief Financial Officer, Director of Finance, and any of their appointees,   have the roles and responsibilities as defined in the policy for the   investment activities of the company as a whole. This policy does not cover   the 401(k) plan or any other voluntary savings plans of JTH.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
4.0 Eligible   Investments
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The following instruments are   approved for short-term investments:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
·
    	
Non-Municipal Auction Rate   Securities rated at least A (Standard & Poor’s) or A2 (Moody’s)
    
	
 
    	
 
    	
 
    	
 
    	
Note: Auction Rate Corporate   Bonds are allowed a lower rating (A or A2) than other Corporate Bonds (AA or   Aa2 — see below) due to their shorter maturity. The ratings for auction rate   securities are long-term ratings.
    
	
 
    	
 
    	
 
    	
·
    	
Municipal Auction Rate Securities   rated at least AA (Standard & Poor’s) or Aa2 (Moody’s)
    
	
 
    	
 
    	
 
    	
·
    	
Bank Deposits
    
	
 
    	
 
    	
 
    	
·
    	
Business/Corporate Savings   Accounts
    
	
 
    	
 
    	
 
    	
·
    	
Certificates of Deposit insured   by the FDIC
    
	
 
    	
 
    	
 
    	
·
    	
Commercial Paper rated at least   A2 (Standard & Poor’s) or P2 (Moody’s)
    
	
 
    	
 
    	
 
    	
·
    	
Corporate Bonds rated at least AA   (Standard & Poor’s) or Aa2 (Moody’s)
    
	
 
    	
 
    	
 
    	
·
    	
Equities (with Board approval of   both dollar amount and particular equity) limited to $40 million per   particular equity.
    
	
 
    	
 
    	
 
    	
·
    	
Repurchase agreements
    
	
 
    	
 
    	
 
    	
·
    	
U.S. Treasury Securities (Bills,   Notes and Bonds)
    
	
 
    	
 
    	
 
    	
·
    	
U.S. Treasury STRIPS (zero coupon   bonds)
    
							

 

2

 

	
 
    	
 
    	
 
    	
·
    	
Notes and bonds issued by the   following Federal Agencies:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
Federal National Mortgage   Association (FNMA)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
Federal Home Loan Bank (FHLB)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
Federal Home Loan Mortgage   Association (FHLMC)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
Federal Farm Credit Bank (FFCB)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
Government National Mortgage   Association (GNMA)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
Student Loan Marketing   Association (SLMA)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
Tennessee Valley Authority (TVA)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
5.0 Investment   Holding Periods
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
All non-equity investments are   intended to be Held-To-Maturity, with the exception of any Auction Rate   Securities(ARS). Since ARS have short-term reset periods, they have   short-term debt characteristics but the underlying securities are long-term   bonds. Therefore, any ARS will be classified and treated as Available-For-Sale   investments. Before any equities are purchased, a determination will be made,   based on intent, whether such equity investments will be characterized as   Trading equities or Available-For-Sale equities.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
6.0 Investment   Requirements
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
·
    	
Banks or trust companies issuing   investment instruments must have a combined capital surplus and undivided   profit of not less than $250 million (U.S. dollar) and rated not less than   “A” (or the then equivalent) by the rating service of S&P or of Moody’s   at the time of purchase.
    
	
 
    	
 
    	
 
    	
·
    	
To minimize foreign exchange   exposure, all investments must be denominated in the functional currency of   the entity making the investment.
    
	
 
    	
 
    	
 
    	
·
    	
The duration of certificates of   deposit, time deposits, or other similar banking arrangement investments must   not exceed 180 days.
    
	
 
    	
 
    	
 
    	
·
    	
JTH may take simultaneous debt   and investment positions. The Chief Financial Officer has full discretion in   determining the size of these positions. These occurrences may be caused by:
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
The seasonality of the business   and cash flows.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
Debt/capital lease agreement may   not allow prepayment.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
The Swingline balance is zero and   the breakage fee on the credit agreement advance does not economically   justify the pay down.
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
·
    	
A long-term swap position does   not allow the debt balance to be paid down below a certain level.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
·
    	
JTH will engage the services of   recognized, short-term investment managers, which may include fee-based independent   money managers, investment brokerage firms, and commercial banks and trust   companies. Each must substantiate its presence among providers of corporate investment   services by detailing corporate cash assets
    
									

 

3

 

	
 
    	
 
    	
 
    	
 
    	
under management and their   capabilities in the short-term fixed income and money markets. Any accounts   opened with investment managers during a quarter will be reported to the   Board or its designated committee at the next quarterly meeting.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
7.0   Diversification
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
·
    	
Concentration per Organization.  To provide for diversification, Auction   Rate Security Investments are limited to $5 million per issuing entity.   Repurchase agreements are limited to $30.0 million per entity. Business/corporate   savings accounts are limited to $30.0 million per bank. Equity investment   limits are determined by the Board for each equity investment.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
8.0 Custody of   Securities
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
All of the financial institutions   in which the company is eligible to invest, subject to the Investment   Requirements listed in Section 5.0 of this document, are also authorized   to hold investments in custody on behalf of the company. The company will not   take physical possession of investment securities.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
9.0 Exception   Management
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Any exceptions to this policy   must be approved in writing. For exceptions not exceeding 20% of amount   limits or duration limits on approved investments, the written approval of   the Chief Executive Officer is required. For exceptions not exceeding 10% of   amount limits or duration limits on approved investments, the written   approval of the Chief Financial Officer is required. For all other   exceptions, the written approval of the Board of Directors is required.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
10.0
    	
Roles and   Responsibilities
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Role: Board of Directors
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
·
    	
Approving the policy
    
	
 
    	
 
    	
 
    	
·
    	
Approving major policy exceptions   (e.g., new investment types)
    
	
 
    	
 
    	
 
    	
·
    	
Approving policy revisions
    
	
 
    	
 
    	
 
    	
·
    	
Approving all equity purchases
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Role: Chief Financial Officer
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
·
    	
Developing investment strategy
    
	
 
    	
 
    	
 
    	
·
    	
Approving minor policy exceptions   (e.g., amounts, terms)
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Role: Director of Finance
    

 

4

 

	
 
    	
 
    	
 
    	
·
    	
Serving as policy custodian
    
	
 
    	
 
    	
 
    	
·
    	
Developing investment strategy
    
	
 
    	
 
    	
 
    	
·
    	
Distributing policy and revisions
    
	
 
    	
 
    	
 
    	
·
    	
Overseeing investment activities
    
	
 
    	
 
    	
 
    	
·
    	
Keeping abreast of developments   in the money market
    
	
 
    	
 
    	
 
    	
·
    	
Recommending variations in set   amounts and/or terms
    
	
 
    	
 
    	
 
    	
·
    	
Collecting and distributing   performance information
    
	
 
    	
 
    	
 
    	
·
    	
Providing investment reports to   management as requested
    
	
 
    	
 
    	
 
    	
·
    	
Investing excess funds as   provided herein
    
	
 
    	
 
    	
 
    	
·
    	
Determining the amount and   maturity of an investment
    
	
 
    	
 
    	
 
    	
·
    	
Manage flow of funds in such a   way that the company has excess cash appropriately invested at all times
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
11.0
    	
Internal   Controls
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
The separation of transaction   authority from accounting and record- keeping must be enforced.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
12.0
    	
Compliance
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Internal auditors shall include   policy compliance in their audits. Auditors shall review procedures and   performance and make recommendations for changes, as appropriate.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Definitions of   Certain Terms
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
From the   Dictionary of Finance and Investment Terms, Seventh Edition, Barron’s   Educational Series, Inc., 2006. or from the Financial Accounting   Standards Board
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Auction Rate Securities —   generally long-term securities with interest periods that reset periodically,   usually every 1, 7, 28, 35, or 49 days, six months, etc. The securities   are typically issued by corporations, utilities, municipalities, states,   finance agencies, student loan finance authorities and universities as   taxable or tax- exempt debt. Some corporations issue these securities in the   form of preferred stock that allows the corporate investor a tax- advantaged   dividend exclusion. Many of the securities have bond insurance or a letter of   credit issued by a bank to increase the debt rating of the issue.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
The auction rate securities reset   at par at the end of each interest/dividend period and are re-auctioned to   investors for the next interest period by the auction agent. The auction   agent ranks the bids by interest rate. The bids with the lowest interest rate   are allocated first, then bids at higher rates are allocated until all of the   sell orders are satisfied. The rate which results in a 100% allocation of   sell orders is the clearing rate that then applies to all outstanding   securities.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Available-for-sale-securities —   Investments not classified as trading
    
						

 

5

 

	
 
    	
 
    	
securities (nor as   held-to-maturity securities) shall be classified as available-for-sale securities.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Bank Deposits — money held in a   depository account at a financial institution.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Business/Corporate Savings   Account — deposit account at a commercial bank that is usually limited to six   withdrawals per calendar month. Interest rates are sometimes tiered based on   the account balance. If the account is at a bank insured by the FDIC, then   the FDIC insures the account up to $100,000. The bank loans out the deposited   funds in the ordinary course of banking business.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Certificates of Deposit (CD) —   debt instrument issued by a bank that usually pays interest. Institutional   CD’s are issued in denominations of $100,000 or more, and individual CD’s   start as low as $100. Maturities range from a few weeks to several years.   Interest rates are set by competitive forces in the marketplace.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Commercial Paper — short-term   obligations with maturities ranging from 2 to 270 days issued by banks,   corporations, and other borrowers to investors with temporarily idle cash.   Such instruments are unsecured and usually discounted, although some are   interest- bearing. They can be issued directly — direct issuers do it that way   — or through brokers equipped to handle the enormous clerical volume   involved. Issuers like commercial paper because the maturities are flexible   and because the rates are usually marginally lower than bank rates. Investors   — actually lenders, since commercial paper is a form of debt — like the   flexibility and safety of an instrument that is issued only by top-rated   concerns and is nearly always backed by bank lines of credit. Both Moody’s   and Standard and Poor’s assign ratings to commercial paper.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Corporate Bond — debt instrument   issued by a corporation that obligates the corporation to pay the bondholder   a specified sum of money, usually at specified intervals, and to repay the   principal amount of the loan at maturity. Bondholders have an IOU from the   issuer, but no corporate ownership privileges, as stockholders do.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Equity — ownership interest   possessed by shareholders in a corporation.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Federal Agency Security — debt   instrument issued by an agency of the federal government such as the Federal   National Mortgage Association, Federal Farm Credit Bank, and the Tennessee   Valley Authority. Though not general obligations of the U.S. Treasury, such   securities are sponsored by the government and therefore have high safety   ratings.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Municipal Auction Rate Securities   — auction rate securities of a state or local government entity. The funds   may support general
    

 

6

 

	
 
    	
 
    	
 
    
	
 
    	
 
    	
governmental needs or special   projects.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Non-Municipal Auction Rate   Securities — taxable and tax-exempt auction rate securities not of a state or   local government entity. These would include preferred stock or securities   issued by corporations, utilities, finance agencies, student loan finance   authorities, universities, etc.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Repurchase Agreements (REPO; RP;   buyback) — agreement between a seller and a buyer, usually of U.S. Government   securities, whereby the seller agrees to repurchase the securities at an   agreed upon price and, usually, at a stated time. Repos are widely used as a   money market investment vehicle. Where a repurchase agreement is used as a   short-term investment, a government securities dealer, usually a bank,   borrows from an investor, typically a corporation with excess cash, to   finance its inventory, using the securities as collateral. Such RP’s may have   a fixed maturity date or be open repos, callable at any time. Rates are   negotiated directly by the parties involved, but are generally lower than   rates on collateralized loans made by New York banks. The attraction of repos   to corporations, which also have the alternatives of commercial paper,   certificates of deposit, treasury bills and other short-term instruments, is   the flexibility of maturities that makes them an ideal place to “park” funds   on a very temporary basis. Dealers also arrange reverse repurchase   agreements, whereby they agree to buy the securities and the investor agrees   to repurchase them at a later date.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Trading Securities — securities   that are bought and held principally for the purpose of selling them in the   near future term (thus held for only a short period of time) shall be   classified as trading securities. Trading   generally reflects active and frequent buying and selling, and trading   securities are generally used with the object of generating profits on   short-term differences in price.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
U.S. Treasury Securities —   negotiable debt obligations of the U.S. government, secured by its full faith   and credit and issued at various schedules and maturities. The income from   Treasury securities is exempt from state and local, but not federal, taxes.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
1.
    	
Treasury bills — short-term   securities with maturities of one year or less issued at a discount from face   value. Auctions of 91-day and 182-day bills take place weekly, and the yields   are watched closely in the money markets for signs of interest rate trends.   Many floating-rate loans and variable- rate mortgages have interest rates   tied to these bills. The Treasury also auctions 52-week bills once every four   weeks. At times it also issues very short-term cash management bills, tax   anticipation bills, and treasury certificates of indebtedness. Treasury bills   are issued in minimum denominations of $10,000, with $5,000 increments above   $10,000 (except for cash management bills, which are sold in minimum $10   million blocks). Individual investors who do
    

 

7

 

	
 
    	
 
    	
 
    	
 
    	
not submit a competitive bid are   sold bills at the average price of the winning competitive bids. Treasury   bills are the primary instrument used by the Federal Reserve in its   regulation of money supply through open market operations.
    
	
 
    	
 
    	
 
    	
2.
    	
Treasury bonds — long-term debt   instruments with maturities of 10 years or longer issued in minimum   denominations of $1,000.
    
	
 
    	
 
    	
 
    	
3.
    	
Treasury notes — intermediate   securities with maturities of 1 to 10 years. Denominations range from $1,000   to $1 million or more. The notes are sold by cash subscription, in exchange   for outstanding or maturing government issues, or at auction.
    
	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
U.S. Treasury STRIPS (acronym for   Separate Trading of Registered Interest and Principal of Securities) — is a   prestripped zero-coupon bond that is a direct obligation of the U.S.   Treasury.
    

 

8Exhibit 10.9

 

WAIVER AND CONSENT AND THIRD AMENDMENT TO

REVOLVING CREDIT AGREEMENT

 

THIS WAIVER AND CONSENT AND THIRD AMENDMENT TO REVOLVING CREDIT AGREEMENT, dated as of September 30, 2010 (this “Waiver and Amendment”), is made by and among JTH TAX, INC., a Delaware corporation (the “Borrower”), SUNTRUST BANK, in its capacity as administrative agent (the “Administrative Agent”) for the Lenders (as defined in the Credit Agreement defined below) and as issuing bank (the “Issuing Bank”) and swingline lender (the “Swingline Lender”), LTS PROPERTIES, LLC, a Virginia limited liability company (“Properties”), LTS SOFTWARE INC., a Virginia corporation (“Software”), and WEFILE INC., a Virginia corporation (“Wefile,” and together with Properties and Software, collectively, the “Subsidiary Loan Parties,” and together with the Borrower, collectively, the “Loan Parties,” and individually, a “Loan Party”).

 

RECITALS:

 

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to the Revolving Credit Agreement, dated as of February 26, 2008, as amended by the Amendment to Revolving Credit Agreement, dated as of April 17, 2008, by and among the Borrower, the Lenders and the Administrative Agent, and as amended by the Second Amendment to Revolving Credit Agreement, dated as of July 29, 2008, by and among the Borrower, the Lenders and the Administrative Agent (as further amended, supplemented, amended and restated or otherwise modified through the date hereof, the “Credit Agreement”).  Capitalized terms defined in the Credit Agreement and undefined herein shall have the same defined meanings when such terms are used in this Waiver and Amendment;

 

WHEREAS, the Borrower is contemplating:  (i) creating two new Subsidiaries:  (a) JTH Holding, Inc., a Delaware corporation, which would initially be a direct, wholly-owned Subsidiary of the Borrower (the “New Parent”), and (b) Liberty Merger Sub, Inc., a Delaware corporation, which would initially be a direct, wholly-owned Subsidiary of the New Parent (the “Merger Sub” and, together with the New Parent, collectively, the “New Subsidiaries”); (ii) causing the New Subsidiaries to comply with the applicable terms of the Credit Agreement, including, but not limited to, entering into a Subsidiary Guaranty Supplement and Security Agreement and providing such other documentation as required by Section 5.11 and Section 5.12 of the Credit Agreement; (iii) merging with and into the Merger Sub after which the Borrower would be the surviving entity (as permitted by Section 7.3(i) of the Credit Agreement) and the Merger Sub would cease to exist (the “Merger”); (iv) after the Merger has been completed, causing (x) the Borrower’s shareholders to receive an equal number of shares of the New Parent as they currently hold in the Borrower, and (y) all options and warrants relating to the Borrower to be converted to options and warrants relating to the New Parent; (v) taking all corporate and other actions necessary to cause the Borrower to become a direct, wholly-owned subsidiary of the New Parent (the “Conversion”); and (vi) causing the New Parent to remain a party to the Subsidiary Guaranty Agreement and the Security Agreement after the Merger and Conversion;

 

WHEREAS, the Conversion would result in a change in the record ownership of the Borrower and would constitute a Change of Control under the definition of such term and an

 

 

Event of Default under Section 8.1(o) of the Credit Agreement, unless waived pursuant to Section 10.2(b) of the Credit Agreement;

 

WHEREAS, the Borrower and the other Loan Parties have requested that the Administrative Agent and the Lenders consent to the Conversion and waive their rights to declare a Default or Event of Default with respect thereto;

 

WHEREAS, the Administrative Agent has agreed, subject to the terms and conditions hereinafter set forth, to grant a limited, express consent and waiver with respect to the Event of Default that would occur under the Credit Agreement as a result of the Conversion;

 

WHEREAS, the Borrower has requested that the Administrative Agent and the Lenders amend certain other provisions of the Credit Agreement; and

 

WHEREAS, pursuant to Section 10.2(b) of the Credit Agreement, the Administrative Agent, as of or prior to the date hereof, has received the consent of the Required Lenders for the waiver and consent described above and herein, and to amend certain other provisions of the Credit Agreement as herein provided.

 

NOW, THEREFORE, in consideration of the premises and for other good and valuable consideration (the receipt and sufficiency of which is hereby acknowledged), the parties hereto hereby agree as follows:

 

1.             Incorporation of Recitals.  The foregoing recitals to this Waiver and Amendment are incorporated in and made a part of this Waiver and Amendment to the same extent and the same effect as if fully set forth herein.

 

2.             Consent and Waiver.  Subject to the terms and conditions of this Waiver and Amendment, each of the Lenders and the Administrative Agent hereby (a) consents to the consummation by the Borrower and the New Parent of the Conversion and (b) waives its right to declare a Default or Event of Default under the Credit Agreement with respect thereto.

 

3.             No Implied Waivers.  Each of the Borrower and each other Loan Party acknowledges and agrees that the limited, express consent and waiver contained herein shall not constitute a waiver, express or implied, of any other Default, Event of Default, covenant, term or provision of the Credit Agreement or any of the other Loan Documents, nor shall it create any obligation, express or implied, on the part of the Administrative Agent or any other Lender to waive, or to consent to any amendment of, any existing or future Default, Event of Default or violation of any covenant, term or provision of the Credit Agreement or any of the other Loan Documents.  The Administrative Agent and the Lenders shall be entitled to require strict compliance by the Borrower and the other Loan Parties with the Credit Agreement and each of the other Loan Documents, notwithstanding the limited, express consent and waiver contained herein, and nothing herein shall be deemed to establish a course of action or a course of dealing with respect to requests by the Borrower or any other Loan Party for waivers or amendments of any Default, Event of Default, covenant, term or provision of the Credit Agreement or any of the other Loan Documents.

 

2

 

4.             Amendments to the Credit Agreement.  The Loan Parties, the Administrative Agent and the Lenders agree that the Credit Agreement is amended as follows:

 

(a)           The following definitions are added to Section 1.1 of the Credit Agreement in their appropriate alphabetical order:

 

“New Parent” shall mean JTH Holding, Inc., a Delaware corporation, which would initially be a direct, wholly-owned Subsidiary of the Borrower.

 

“Permitted Parent Distributions” shall mean any cash or non-cash distribution, whether one or more, made or by the Borrower or any Subsidiary to the New Parent for any purpose other than the repurchase of shares of the New Parent’s capital stock.

 

(b)           The definition of “Change in Control” contained in Section 1.1 of the Credit Agreement is deleted and replaced with the following:

 

“Change in Control” shall mean the occurrence of one or more of the following events:  (i) any sale, lease, exchange or other transfer (in a single transaction or a series of related transactions) of all or substantially all of the assets of the Borrower to any Person or “group” (within the meaning of the Securities Exchange Act of 1934 and the rules of the Securities and Exchange Commission thereunder in effect on the date hereof), (ii) occupation of a majority of the seats (other than vacant seats) on the board of directors of the Borrower by Persons who were neither (a) nominated or elected by the vote or other action of John Hewitt or a Person or Persons Controlled by John Hewitt nor (b) appointed by directors so nominated or elected or (iii) if John Hewitt or a Person or Persons Controlled by John Hewitt ceases to own directly or indirectly, beneficially or of record, securities collectively possessing the power to appoint or elect a majority of the members of the Board of Directors (or persons performing similar functions) of the Borrower.  For the purposes of this definition, “Control” shall mean the power, directly or indirectly, either to (i) vote securities collectively possessing the voting power to appoint or elect a majority of the members of the Board of Directors (or persons performing similar functions) of a Person or (ii) direct or cause the direction of the management and policies of a Person, whether through the ability to exercise voting power, by control or otherwise.  The terms “Controlling”, “Controlled by”, and “under common Control with” have the meanings reasonably correlative thereto.

 

(c)           Clause (iii) of the definition of “Consolidated Fixed Charges” contained in Section 1.1 of the Credit Agreement is deleted and replaced with the following:

 

3

 

(iii) Restricted Payments paid during such period, other than, without duplication and without any clause limiting the effect of any other clause, (x) intercompany dividends and distributions by and among the Borrower (but expressly including any intercompany dividends by the Borrower to any parent company, including, without limitation, the New Parent) and the Subsidiaries, (y) repurchases of Capital Stock and dividends made and used for the purposes of repurchases of Capital Stock, in each case, permitted by this Agreement and (z) Permitted Parent Distributions not in excess of $20,000,000 on an aggregated basis.

 

(d)           Section 5.1(a) of the Credit Agreement is deleted and amended to read in its entirety as follows:

 

(a)           as soon as available and in any event within 120 days after the end of each fiscal year of the New Parent, (i) a copy of the annual audited report for such fiscal year for the New Parent and its Subsidiaries (including the Borrower), containing a consolidated balance sheet of the New Parent and its Subsidiaries (including the Borrower) as of the end of such fiscal year and the related consolidated statements of income, stockholders’ equity and cash flows (together with all footnotes thereto) of the New Parent and its Subsidiaries (including the Borrower) for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and reported on by KPMG LLP or other independent public accountants of nationally recognized standing (without a “going concern” or like qualification, exception or explanation and without any qualification or exception as to scope of such audit) to the effect that such financial statements present fairly in all material respects the financial condition and the results of operations of the New Parent and its Subsidiaries (including the Borrower) for such fiscal year on a consolidated basis in accordance with GAAP and that the examination by such accountants in connection with such consolidated financial statements has been made in accordance with generally accepted auditing standards; and (ii) an unaudited consolidating balance sheet of the New Parent and its Subsidiaries (including the Borrower) as of the end of such fiscal year and the related unaudited consolidating statement of income and consolidating statement of cash flows of the New Parent and its Subsidiaries (including the Borrower) for such fiscal year;

 

(e)           Section 5.1(b) of the Credit Agreement is deleted and amended to read in its entirety as follows:

 

(b)           as soon as available and in any event within 45 days after the end of each fiscal quarter of the New Parent, an unaudited

 

4

 

consolidated and consolidating balance sheet of the New Parent and its Subsidiaries (including the Borrower) as of the end of such fiscal quarter and the related unaudited consolidated and consolidating statement of income and consolidated statement of cash flows of the New Parent and its Subsidiaries (including the Borrower) for such fiscal quarter and the then elapsed portion of such fiscal year, setting forth in each case in comparative form the figures for the corresponding quarter and the corresponding portion of the previous fiscal year of the New Parent and its Subsidiaries (including the Borrower);

 

(f)            Section 5.1(d) of the Credit Agreement is deleted and amended to read in its entirety as follows:

 

(d)           within 60 days after the end of each Fiscal Year, a consolidated and consolidating budget and projection of the New Parent and its Subsidiaries (including the Borrower) for the next succeeding fiscal year of the New Parent;

 

(g)           Section 5.2(a)(ii) of the Credit Agreement is deleted and replaced with the following:

 

(ii)           the filing or commencement of any action, suit or proceeding by or before any arbitrator or Governmental Authority against or, to the knowledge of the Borrower, affecting the Borrower, the New Parent or any Subsidiary of the Borrower or the New Parent which, if adversely determined, could reasonably be expected to result in a Material Adverse Effect;

 

(h)           Section 6.4 of the Credit Agreement is deleted in its entirety and replaced with the following:

 

Section 6.4             Intentionally Deleted.

 

(i)            The proviso at the end of Section 7.4(k) of the Credit Agreement is amended to read as follows:

 

; provided, however, that the Administrative Agent and the Lender agree that the Investment Policy may be amended to provide that the Borrower may make an Investment by the purchase, in one or more transactions, on terms and conditions satisfactory to the Administrative Agent and the Required Lenders, of the outstanding Capital Stock of Jackson Hewitt Tax Service Inc., the value of which shall not exceed $20,000,000 in the aggregate, which amendment to the Investment Policy is attached hereto as an amendment to Schedule 7.4.

 

5

 

(j)            The proviso appearing in Section 7.5(iii) of the Credit Agreement is deleted in its entirety and replaced with the following:

 

provided, for the purpose of this clause (iii) that no Default or Event of Default has occurred and is continuing at the time such repurchase is made nor would occur after giving effect thereto, and assuming that such repurchase had been made on the last day of the immediately preceding Fiscal Quarter, the Borrower would be in compliance with the financial covenants contained in Section 7;

 

(k)           The proviso appearing in Section 7.5(iv) of the Credit Agreement is deleted in its entirety and replaced with the following:

 

provided, for the purpose of this clause (iv) that no Default or Event of Default has occurred and is continuing at the time such dividend or distribution is paid nor would occur after giving effect thereto, and assuming that such dividend or distribution had been paid on the last day of the immediately preceding Fiscal Quarter, the Borrower would be in compliance with the financial covenants contained in Section 7.

 

(l)            Section 7.5 of the Credit Agreement is amended by adding the following as new clause “(v)” thereto:

 

and (v) Permitted Parent Distributions not exceeding $20,000,000 in the aggregate at any time during the term of this Agreement, provided, for the purpose of this clause (v) that no Default or Event of Default has occurred and is continuing at the time any Permitted Parent Distribution is made nor would occur after giving effect thereto, and assuming that such distribution had been made on the last day of the immediately preceding Fiscal Quarter, the Borrower would be in compliance with the financial covenants contained in Section 7.

 

(m)          Clause (p) of Section 8.1 shall be deleted in its entirety and amended to read as follows:

 

(p)           any provision of any Subsidiary Guaranty Agreement shall for any reason cease to be valid and binding on, or enforceable against, any Subsidiary Loan Party or the New Parent, or any Subsidiary Loan Party or the New Parent shall so state in writing, or any Subsidiary Loan Party or the New Parent shall seek to terminate its Subsidiary Guaranty Agreement; or

 

(n)           Clause (q) of Section 8.1 shall be deleted in its entirety and amended to read as follows:

 

6

 

(q)           any security interest purported to be created by any Security Document shall cease to be, or shall be asserted by the Borrower or any other Loan Party or the New Parent not to be, a valid, perfected, first priority (except as otherwise expressly provided in this Agreement or such Security Document) security interest in the securities, assets or properties covered thereby; or

 

(o)           Except as specifically modified by this Waiver and Amendment, the terms and provisions of the Credit Agreement are ratified and confirmed by the parties hereto and remain in full force and effect.

 

(p)           Each of the Borrower, the other Loan Parties, the Administrative Agent and each Lender agrees that, as of and after the Waiver and Amendment Effective Date (as hereinafter defined), each reference in the Loan Documents to the Credit Agreement shall be deemed to be a reference to the Credit Agreement as amended hereby.

 

5.             Conditions to Effectiveness of this Waiver and Amendment.  This Waiver and Amendment and the consent, waiver and amendments contained herein shall become effective on the date (the “Waiver and Amendment Effective Date”) when each of the conditions set forth below shall have been fulfilled to the satisfaction of the Administrative Agent:

 

(a)           The Administrative Agent shall have received counterparts of this Waiver and Amendment, duly executed and delivered on behalf of the Borrower and the other Loan Parties.

 

(b)           No event shall have occurred and be continuing that constitutes an Event of Default, or that would constitute an Event of Default but for the requirement that notice be given or that a period of time elapse, or both.

 

(c)           All representations and warranties of the Borrower contained in the Credit Agreement, and all representations and warranties of each other Loan Party in each Loan Document to which it is a party, shall be true and correct in all material respects at the Waiver and Amendment Effective Date as if made on and as of such Waiver and Amendment Effective Date.

 

(d)           The Borrower shall have delivered to the Administrative Agent (1) certified copies of evidence of all corporate and company actions taken by the Borrower and the other Loan Parties to authorize the execution and delivery of this Waiver and Amendment, (2) certified copies of any amendments to the articles or certificate of incorporation, bylaws, partnership certificate or operating agreement of the Borrower and each other Loan Party since the date of the Credit Agreement, (3) a certificate of incumbency for the officers or other authorized agents or partners of the Borrower and each other Loan Party executing this Waiver and Amendment, (4) all documents, certificates, resolutions and other items required by Section 5.11 and Section 5.12 of the Credit Agreement with respect to each of the New Subsidiaries and (5) such additional supporting documents as the Administrative Agent or counsel for the Administrative Agent reasonably may request.

 

(e)           All documents delivered pursuant to this Waiver and Amendment must be of form and substance satisfactory to the Administrative Agent and its counsel, and all legal matters

 

7

 

incident to this Waiver and Amendment must be satisfactory to the Administrative Agent’s counsel.

 

6.             Amendment Only; No Novation; Modification of Loan Documents.  Each of the Borrower and each other Loan Party acknowledges and agrees that this Waiver and Amendment only amends the terms of the Credit Agreement and the other Loan Documents and does not constitute a novation, and each of the Borrower and each other Loan Party ratifies and confirms the terms and provisions of, and its obligations under, the Credit Agreement and the other Loan Documents in all respects.  Each of the Borrower and each other Loan Party acknowledges and agrees that each reference in the Loan Documents to any particular Loan Document shall be deemed to be a reference to such Loan Document as amended by this Waiver and Amendment.  To the extent of a conflict between the terms of any Loan Document and the terms of this Waiver and Amendment, the terms of this Waiver and Amendment shall control.

 

7.             Successors and Assigns.  This Waiver and Amendment shall be binding upon and inure to the benefit of the Borrower, the other Loan Parties, the Lenders and the Administrative Agent and their respective successors and assigns.

 

8.             No Further Amendments.  Nothing in this Waiver and Amendment or any prior amendment to the Loan Documents shall require the Administrative Agent or any Lender to grant any further amendments to the terms of the Loan Documents.  Each of the Borrower and each other Loan Party acknowledges and agrees that there are no defenses, counterclaims or setoffs against any of their respective obligations under the Loan Documents.

 

9.             Representations and Warranties.  Each of the Borrower and each other Loan Party represents and warrants that this Waiver and Amendment has been duly authorized, executed and delivered by it in accordance with resolutions adopted by its board of directors or comparable managing body.  All other representations and warranties made by the Borrower and each other Loan Party in the Loan Documents are incorporated by reference in this Waiver and Amendment and are deemed to have been repeated as of the date of this Waiver and Amendment with the same force and effect as if set forth in this Waiver and Amendment, except that (a) any representation or warranty relating to any financial statements shall be deemed to be applicable to the financial statements most recently delivered to the Administrative Agent in accordance with the provisions of the Loan Documents and (b) each other representation or warranty expressly stated to be made as of the Closing Date shall not be deemed to have been repeated as of any date other than the Closing Date.  Each of the Borrower and each other Loan Party represents and warrants to the Administrative Agent, the Lenders and the Issuing Bank that, after giving effect to the terms of this Waiver and Amendment, no Default has occurred and been continuing.

 

10.           Confirmation of Lien.  Each of the Borrower and each other Loan Party hereby acknowledges and agrees that the Collateral is and shall remain in all respects subject to the lien, charge and encumbrance of the Credit Agreement and the other Loan Documents and nothing herein contained, and nothing done pursuant hereto, shall adversely affect or be construed to adversely affect the lien, charge or encumbrance of, or conveyance effected by the Loans or the priority thereof over other liens, charges, encumbrances or conveyances.

 

8

 

11.           Ratification.  The terms of the Credit Agreement and the other Loan Documents shall remain in full force and effect and are ratified and affirmed by the Borrower and each other Loan Party.

 

12.           Fees and Expenses.  The Borrower agrees to pay all out-of-pocket costs and expenses of the Administrative Agent and its Affiliates, including the fees, charges and disbursements of counsel for the Administrative Agent and its Affiliates, in connection with the preparation and administration of this Waiver and Amendment.

 

13.           Severability.  Any provision of this Waiver and Amendment held to be illegal, invalid or unenforceable in any jurisdiction, shall, as to such jurisdiction, be ineffective to the extent of such illegality, invalidity or unenforceability without affecting the legality, validity or enforceability of the remaining provisions hereof; and the illegality, invalidity or unenforceability of a particular provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

14.           Governing Law.  This Waiver and Amendment shall be construed in accordance with and be governed by the law (without giving effect to the conflict of law principles thereof) of the Commonwealth of Virginia.  THIS WAIVER AND AMENDMENT WILL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE LAWS OF THE COMMONWEALTH OF VIRGINIA.

 

15.           Counterparts.  This Waiver and Amendment may be executed by one or more of the parties to this Waiver and Amendment on any number of separate counterparts (including by telecopy), and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  It shall not be necessary that the signature of, or on behalf of, each party, or that the signatures of the persons required to bind any party, appear on more than one counterpart.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Waiver and Amendment to be duly executed by their respective duly authorized representatives all as of the day and year first above written.

 

	
 
    	
 
    	
BORROWER:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
JTH   TAX, INC., a Delaware corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mark Baumgartner
    
	
 
    	
 
    	
Name:
    	
Mark Baumgartner
    
	
 
    	
 
    	
Title:
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SUBSIDIARY   LOAN PARTIES:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LTS   PROPERTIES, LLC, a Virginia limited liability company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
JTH   TAX, INC.
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
By:
    	
/s/   Mark Baumgartner
    
	
 
    	
 
    	
 
    	
 
    	
Mark   Baumgartner
    
	
 
    	
 
    	
 
    	
 
    	
Chief   Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LTS   SOFTWARE INC., a Virginia corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Mark Baumgartner
    
	
 
    	
 
    	
Name:
    	
Mark Baumgartner
    
	
 
    	
 
    	
Title:
    	
Vice   President and Chief Financial Officer
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WEFILE   INC., a Virginia corporation
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Kathleen Curry
    
	
 
    	
 
    	
Name:
    	
Kathleen   Curry
    
	
 
    	
 
    	
Title:
    	
President   and Secretary
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGES]

 

 

	
 
    	
 
    	
ADMINISTRATIVE   AGENT:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SUNTRUST   BANK
    
	
 
    	
 
    	
as Administrative Agent, as Issuing Bank and as   Swingline Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Joel S. Rhew
    
	
 
    	
 
    	
Name:
    	
Joel   S. Rhew
    
	
 
    	
 
    	
Title:
    	
SVP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
LENDERS:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
SUNTRUST   BANK, as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Joel S. Rhew
    
	
 
    	
 
    	
Name:
    	
Joel   S. Rhew
    
	
 
    	
 
    	
Title:
    	
SVP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
BANK   OF AMERICA, N.A., as   Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   David J. Doucette
    
	
 
    	
 
    	
Name:
    	
David   J. Doucette
    
	
 
    	
 
    	
Title:
    	
SVP
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
WELLS   FARGO BANK, N.A. formerly known as
    
	
 
    	
 
    	
WACHOVIA   BANK, N.A., as   Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Paula Smith
    
	
 
    	
 
    	
Name:
    	
Paula   Smith
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
RBC   CENTURA BANK, as   Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Martin J. Rust
    
	
 
    	
 
    	
Name:
    	
Martin   J. Rust
    
	
 
    	
 
    	
Title:
    	
Sr.   Corporate RM
    

 

[SIGNATURES CONTINUE ON FOLLOWING PAGE]

 

 

	
 
    	
 
    	
BRANCH   BANKING AND TRUST COMPANY, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   S. Hearst Vann
    
	
 
    	
 
    	
Name:
    	
S.   Hearst Vann
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
CITIZENS   BANK OF PENNSYLVANIA, as   Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Tracy Van Riper
    
	
 
    	
 
    	
Name:
    	
Tracy   Van Riper
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
TD   BANK, N.A., as successor by merger to COMMERCE   BANK, N.A., as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
FIRST   TENNESSEE BANK NATIONAL ASSOCIATION, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Duncan S. Owen III
    
	
 
    	
 
    	
Name:
    	
Duncan   S. Owen III
    
	
 
    	
 
    	
Title:
    	
Senior   Vice President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
COMERICA   BANK, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   Blake Arnett
    
	
 
    	
 
    	
Name:
    	
Blake   Arnett
    
	
 
    	
 
    	
Title:
    	
Vice   President
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
STELLAR   ONE, as successor to SECOND BANK &   TRUST, as Lender
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/   John Wesley Lux York
    
	
 
    	
 
    	
Name:
    	
John   Wesley Lux York
    
	
 
    	
 
    	
Title:
    	
Vice   President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00194-of-00352.parquet"}]]