Document:

exv10w3

 

Exhibit 10.3

AMENDMENT NO. 4

TO THE

SPECIALTY UNDERWRITERS’ ALLIANCE, INC.

PARTNER AGENT PROGRAM AGREEMENT

This amendment (“Amendment”) is made and entered into as of May 3, 2007 by and among Hendricks
Holding Company, Inc. (“Hendricks”) and its subsidiaries and affiliates, including its wholly owned
subsidiaries American Patriot Insurance Agency, Inc. (“American Patriot”) and Insential, Inc.
(“Insential”), and Specialty Underwriters’ Alliance, Inc. and its property and casualty insurance
subsidiaries and affiliates (collective, the “Company”), and amends the PARTNER AGENT PROGRAM
AGREEMENT (“Agreement”) entered into by American Patriot and the Company on January 24, 2006, as
amended. Any terms defined in the Agreement and used herein shall have the same meaning in this
Amendment as in the Agreement. In the event that any provision of this Amendment and any provision
of the Agreement are inconsistent or conflicting, the inconsistent or conflicting provision of this
Amendment shall be and constitute an amendment of the Agreement and shall control, but only to the
extent that such provision is inconsistent or conflicting with the Agreement. Any capitalized
terms not defined herein shall be defined as in the Agreement.

Now, therefore, in accordance with Section IX, D of the Agreement and in consideration of the
mutual agreements and covenants hereinafter set forth, the parties wish to amend the Agreement by
adding Hendricks and Insential as parties to the Agreement with all rights, authority and
obligations as Partner Agents.

[Remainder of Page Intentionally Left Blank]

 

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed on their
behalf by their duly authorized officers as of the day, month and year above written.

	 	 	 
	SPECIALTY UNDERWRITERS’ ALLIANCE, INC.
	SUA INSURANCE COMPANY
	 
	 	 
	BY:

	 	/s/ William S. Loder
	NAME:

	 	William S. Loder
	TITLE:

	 	Senior Vice President, Chief Underwriting Officer
	 
	 	 
	AMERICAN PATRIOT INSURANCE AGENCY, INC.
	 
	 	 
	BY:

	 	/s/ Lysa Saran
	NAME:

	 	Lysa Saran
	TITLE:

	 	President
	 
	 	 
	HENDRICKS HOLDING COMPANY, INC.
	 
	 	 
	BY:

	 	/s/ Diane Hendricks
	NAME:

	 	Diane Hendricks
	TITLE:

	 	President
	 
	 	 
	INSENTIAL, INC.
	 
	 	 
	BY:

	 	/s/ Darwin Lucas
	NAME:

	 	Darwin Lucas
	TITLE:

	 	PresidentExhibit 10.1

    Exhibit
      10.1

     

    

    WAIVER
      AND TENTH AMENDMENT TO CREDIT AGREEMENT

     

    This
      Waiver and Tenth Amendment to Credit Agreement (this "Amendment") is dated
      as of
      May 1, 2007, and is by and among General Electric Capital Corporation, a
      Delaware corporation, individually as a Lender and as Agent and Security Trustee
      for the Lenders, and Analysts International Corporation, a Minnesota corporation
      ("Borrower").

     

    W
      I T
      N E S S E T H:

     

    WHEREAS,
      pursuant to a certain Credit Agreement dated as of April 11, 2002, by and among
      General Electric Capital Corporation, a Delaware corporation, individually
      as a
      Lender and as Agent and Security Trustee for the Lenders, the other Credit
      Parties signatory from time to time thereto, and Borrower (as amended or
      otherwise modified from time to time, the "Credit Agreement"; capitalized terms
      used herein and not otherwise defined herein shall have the meaning ascribed
      to
      such terms in the Credit Agreement), Agent and Lenders agreed, subject to the
      terms and provisions thereof, to provide certain loans and other financial
      accommodations to Borrower;

     

    WHEREAS,
      Borrower has notified Agent and Lenders that Borrower has entered into surety
      and/or performance bond reimbursement agreements or similar arrangements
      involving the issuance of surety and/or performance bonds for the account of
      the
      Credit Parties in a net amount outstanding as of the date hereof equal to
      approximately $10,000,000 (the "Surety Bond Issuances"), which Surety Bond
      Issuances constituted Defaults under Section 6.3 of the Credit Agreement
      (although such Surety Bond Issuances are not Defaults under Section 6.7 of
      the
      Credit Agreement) and separate Events of Default under Section 8.1(b) of the
      Credit Agreement (collectively, the "Existing Events of Default"); 

     

    WHEREAS,
      pursuant to Section 5 of that certain Waiver, Consent and Ninth Amendment to
      Credit Agreement dated as of February 1, 2007, on or prior to May 1, 2007,
      Borrower is required to, and is required to cause each other Credit Party to,
      at
      such Credit Party's expense, duly execute and deliver to Agent an amendment
      and
      restatement to the Credit Agreement and such further instruments, in each case
      in form and substance satisfactory to Agent, and do and cause to be done such
      further acts, as the Agent may request to effect the addition of AISSS and
      Medical Staffing as borrowers under the Credit Agreement (collectively, the
      “Ninth Amendment Covenant”); and

     

    WHEREAS,
      Borrower has requested that Agent and Requisite Lenders waive the Existing
      Events of Default and the Ninth Amendment Covenant and amend the Credit
      Agreement in certain respects, in each case as set forth below.

       

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

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.  Waivers.
      In
      reliance upon the representations and warranties of Borrower set forth in
      Section 4 below and subject to the conditions to effectiveness set forth in
      Section 3 below, Agent and Requisite Lenders hereby waive the Existing Events
      of
      Default and the requirements of the Ninth Amendment Covenant. Such waivers
      are
      limited waivers and shall not be deemed to constitute a waiver of, or consent
      to, any other future breach of the Credit Agreement.

     

    2.  Amendments.
      In
      reliance upon the representations and warranties of Borrower set forth in
      Section 4 below and subject to the conditions to effectiveness set forth in
      Section 3 below, the Credit Agreement is hereby amended as follows:

     

    (a)  Section
      6.3(a)
      of the
      Credit Agreement is hereby amended by inserting a new clause (vi) therein to
      read as follows:

     

    (vi)
      Indebtedness not to exceed $10,000,000 in the aggregate at any time outstanding
      incurred in connection with surety and/or performance bond reimbursement
      agreements or similar arrangements entered into in the ordinary course of
      business of the Credit Parties involving the issuance of surety and/or
      performance bonds delivered for the account of any Credit Party,

     

    (b)  Section
      6.20
      of the
      Credit Agreement is hereby amended and restated in its entirety, as
      follows:

     

    6.20
       Credit
      Parties Other than Borrower.

     

    None
      of
      the Credit Parties other than Borrower shall engage in any trade or business,
      or
      own any assets (other than Stock of their Subsidiaries) or incur any
      Indebtedness or Guaranteed Indebtedness (other than the Obligations),
provided that
      (a)
      Medical Staffing shall be permitted to engage in its relevant business and
      own
      assets, (b) the Staffing Subsidiaries (other than Analysts International
      Strategic Sourcing Services, LLC, a Minnesota limited liability company) shall
      be permitted to employ personnel to be leased back to the Borrower under those
      certain Employee Services Agreements by and between Borrower and each Staffing
      Subsidiary (the "Employee Services Agreements"), (c) Analysts International
      Strategic Sourcing Services, LLC, a Minnesota limited liability company, shall
      be permitted to (i) employ personnel to be leased back to the Borrower under
      the
      Employee Services Agreements, (ii) engage in the managed services group business
      and (iii) own net assets in connection with the managed services group business
      not to exceed $4,000,000 at any time outstanding, and (d) the Staffing
      Subsidiaries shall be permitted to incur Indebtedness otherwise permitted in
      this Agreement in connection with surety and/or performance bond reimbursement
      agreements or similar arrangements involving the issuance of surety and/or
      performance bonds delivered for the account of such Staffing
      Subsidiary.

     

    
      
        
        

      

      
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    (c)  Disclosure
      Schedule (3.17)
      of the
      Credit Agreement is hereby amended by replacing the "Trust Agreement dated
      October 20, 1992, with Norwest Bank Minneapolis, N.A." with the "Trust Under
      the
      Analysts International Corporation Special Executive Retirement Plan dated
      as of
      February 15, 2007 between the Borrower and Wachovia Bank".

     

    3.  Conditions
      Precedent.
      The
      effectiveness of the waiver, consent and amendment contemplated hereby is
      subject to the prior receipt by Agent of each of the following documents and
      agreements, each in form and substance acceptable to Agent in its sole
      discretion:

     

    (a)  Agent
      shall have received a fully executed copy of this Amendment;

     

    (b)  No
      Default or Event of Default (other than the Existing Events of Default) shall
      have occurred and be continuing; and

     

    (c)  All
      proceedings taken in connection with the transactions contemplated by this
      Amendment and all agreements, documents, instruments and other legal matters
      incident thereto shall be satisfactory to Agent and its legal
      counsel.

     

    4.  Representations
      and Warranties.
      To
      induce Agent to enter into this Amendment, the Borrower hereby represents and
      warrants to Agent that:

     

    (a)  The
      execution, delivery and performance by each Credit Party of this Amendment
      and
      each other agreement and document contemplated hereby are within their corporate
      or limited liability company power, have been duly authorized by all necessary
      corporate or limited liability company action, have received all necessary
      governmental approval (if any shall be required), and do not and will not
      contravene or conflict with any provision of law applicable to any Credit Party,
      the articles of incorporation, articles of organization, by-laws or operating
      agreement of any Credit Party, any order, judgment or decree of any court or
      governmental agency, or any agreement, instrument or document binding upon
      any
      Credit Party or any of their respective properties;

     

    (b)  Each
      of
      the Credit Agreement, the other Loan Documents, and each other agreement and
      document contemplated hereby is the legal, valid and binding obligation of
      the
      applicable Credit Party, enforceable against such Credit Party in accordance
      with their terms, except as such enforceability may be limited by applicable
      bankruptcy, reorganization, moratorium, fraudulent transfer or other similar
      laws affecting creditors' rights generally or by principles governing the
      availability of equitable remedies;

     

    (c)  All
      of
      the statements contained in Section 2.2 of the Credit Agreement and in Section
      4
      of the Security Agreement are true and correct on the date hereof;

     

    (d)  Each
      Credit Party has performed all of its obligations under the Credit Agreement
      and
      the Loan Documents to be performed by it on or before the date hereof and as
      of
      the date hereof, each Credit Party is in compliance with all applicable terms
      and provisions of the Credit Agreement and each of the Loan Documents to be
      observed and performed by it and, except to the extent otherwise waived by
      the
      provisions hereof, no Event of Default or other event which, upon notice or
      lapse of time or both, would constitute an Event of Default, has
      occurred.

     

    
      
        
        

      

      
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    5.  Reaffirmation.
      Each
      of
      Medical Concepts Staffing, Inc., a Minnesota corporation ("Medical Staffing"),
      Analysts International Management Services, LLC, a Minnesota limited liability
      company ("AIMS"), Analysts International Business Solution Services, LLC, a
      Minnesota limited liability company ("AIBSS"), Analysts International Business
      Resource Services, LLC, a Minnesota limited liability company ("AIBRS") and
      Analysts International Strategic Sourcing Services, LLC, a Minnesota limited
      liability company ("AISSS"; AIMS, AIBSS, AIBRS and AISSS are collectively the
      "Staffing Subsidiaries" and each a "Staffing Subsidiary") hereby consents to
      Borrower's execution and delivery of this Amendment and agrees to be bound
      hereby. Medical Staffing hereby affirms that nothing contained herein shall
      modify in any respect whatsoever its obligations under the Loan Documents,
      including, without limitation, its guaranty of the obligations of Borrower
      to
      Agent and Lenders pursuant to the terms of that certain Guaranty, dated as
      of
      April 7, 2003 (the "MCS Guaranty"), executed by Medical Staffing in favor of
      Agent and Lenders and reaffirms that the MCS Guaranty is and shall continue
      to
      remain in full force and effect. Each Staffing Subsidiary hereby affirms that
      nothing contained herein shall modify in any respect whatsoever its obligations
      under the Loan Documents, including, without limitation, its guaranty of the
      obligations of Borrower to Agent and Lenders pursuant to the Guaranty, dated
      December 31, 2003, executed by such Staffing Subsidiary in favor of Agent and
      Lenders and reaffirms that such Guaranty is and shall continue to remain in
      full
      force and effect. Although Medical Staffing and each Staffing Subsidiary has
      been informed of the matters set forth herein and has acknowledged and agreed
      to
      same, such Person understands that Agent and Lenders have no obligation to
      inform any such Person of such matters in the future or to seek any such
      Person's acknowledgment or agreement to future consents or waivers, and nothing
      herein shall create such a duty.

     

    6.  Counterparts.
      This
      Amendment may be executed in any number of counterparts and by the different
      parties on separate counterparts, and each such counterpart shall be deemed
      to
      be an original, but all such counterparts shall together constitute but one
      and
      the same Amendment. Any such counterpart which may be delivered by facsimile
      transmission or electronic portable document format (i.e., "pdf") shall be
      deemed the equivalent of an originally signed counterpart and shall be fully
      advisable in any enforcement proceeding regarding this Amendment.

     

    7.  Continued
      Effectiveness.
      Except
      as amended hereby, the Credit Agreement and each of the Loan Documents shall
      continue in full force and effect according to its terms.

     

    8.  Costs
      and Expenses.
      Borrower hereby agrees that all expenses incurred by Agent in connection with
      the preparation, negotiation and closing of the transactions contemplated
      hereby, including, without limitation, reasonable attorneys' fees and expenses,
      shall be part of the Obligations.

     

    
      
        
        

      

      
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    9.  Governing
      Law.
      This
      Amendment shall be a contract made under and governed by the internal laws
      of
      the State of Illinois.
      

     

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    IN
      WITNESS WHEREOF, this Amendment has been executed as of the day and year first
      written above.

     

    

    
      	 	
              ANALYSTS
                INTERNATIONAL CORPORATION

            
	 	 
	 	 
	 	
              By
                ___________________________________

            
	 	
              Its
                ___________________________________

            

    

    

     

    
      	 	
              MEDICAL
                CONCEPTS STAFFING, INC.

            
	 	 
	 	 
	 	
              By
                ___________________________________

            
	 	
              Its 
                ___________________________________

            

    

    

    

    
      	 	
              ANALYSTS
                INTERNATIONAL MANAGEMENT

            
	 	
              SERVICES,
                LLC

            
	 	 
	 	 
	 	
              By
                ____________________________________

            
	 	
              Its
                ____________________________________

            

    

    

    

    
      	 	
              ANALYSTS
                INTERNATIONAL BUSINESS

            
	 	
              SOLUTION
                SERVICES, LLC

            
	 	 
	 	 
	 	
              By
                ____________________________________

            
	 	
              Its
                ____________________________________

            

    

    

    

    
      	 	
              ANALYSTS
                INTERNATIONAL BUSINESS

            
	 	
              RESOURCE
                SERVICES, LLC

            
	 	 
	 	 
	 	
              By
                ____________________________________

            
	 	
              Its
                ____________________________________

            

    

    

    
      
        
        

      

      
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              ANALYSTS
                INTERNATIONAL STRATEGIC

            
	 	
              SOURCING
                SERVICES, LLC

            
	 	 
	 	 
	 	
              By
                _____________________________________

            
	 	
              Its 
                _____________________________________

            

    

    

    

    
      	 	
              GENERAL
                ELECTRIC CAPITAL CORPORATION,

            
	 	
              As
                Agent, Security Trustee and Lender

            
	 	 
	 	 
	 	
              By
                _____________________________________

            
	 	
              An
                Authorized Signatory

            

    

     

     

     

     

     

     

    
 

    
      
        
        

      

      
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