Document:

Amendment No. 1 to Credit Agreement

 Exhibit 10(h) 
  
 AMENDMENT NO. 1 
  
 Dated as of June 18, 2004 
  
 to 
  
 CREDIT AGREEMENT 
  
 Dated as of March 31, 2004 
  
 THIS AMENDMENT NO. 1
(“Amendment”) is made as of June 18, 2004 by and among ABX Air, Inc. (the “Borrower”), the financial institutions listed on the signature pages hereof (the “Lenders”) and Bank One, NA (Main Office Columbus), as
Administrative Agent (the “Agent”), under that certain Credit Agreement dated as of March 31, 2004 by and among the Borrower, the Lenders and the Agent (the “Credit Agreement”). Capitalized terms used herein and not otherwise
defined herein shall have the respective meanings given to them in the Credit Agreement. 
  
 WHEREAS, the Borrower has requested that the Aggregate Revolving Loan Commitment be increased from $35,000,000 to $45,000,000; 
  

WHEREAS, Merrill Lynch Business Financial Services Inc. (the “New Lender”) has agreed to provide, subject to the terms and conditions hereof,
a new Revolving Loan Commitment in the aggregate amount of $10,000,000; 
  
 WHEREAS, the Borrower, the Lenders party hereto, the New Lender and the Agent have agreed to amend the Credit Agreement on the terms and conditions set forth herein; 
  
 NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein, and other good
and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Borrowers, the Lenders party hereto and the Agent have agreed to the following amendments to the Credit Agreement. 
  
 1. Amendments to Credit Agreement. Effective as of June 18, 2004 (the
“Effective Date”) but subject to the satisfaction of the conditions precedent set forth in Section 2 below, 
  
 (a) the Credit Agreement is amended to increase the Aggregate Revolving Loan Commitment to $45,000,000, 
  
 (b) the definition of “Commitment Schedule”
appearing in Section 1.1 shall be deleted and the following shall be inserted in lieu thereof: 
  
 “Commitment Schedule” means the Schedule identifying each Lender’s Revolving Loan Commitment attached hereto and identified
as such, as the same may be amended, restated, supplemented or otherwise modified from time to time. 

 (c) the definition of “Required Lenders” appearing in Section 1.1 shall be
deleted and the following shall be inserted in lieu thereof: 
  
 “Required Lenders” means any two (2) or more Lenders in the aggregate having more than 50% of the Aggregate Revolving Loan Commitment (or, if all of the Revolving Loan Commitments are terminated pursuant to
the terms of this Agreement, the Aggregate Outstanding Revolving Credit Exposure at such time). 
  
 (d) the reference to “$45,000,000” appearing in Section 2.5.3(i)(A) shall be deleted and “$50,000,000” shall be
inserted in lieu thereof, 
  
 (e) the references
to “$10,000,000” appearing in Sections 2.5.3(i)(B) and 2.5.3(i)(C) shall be deleted and “$5,000,000” shall be inserted in lieu thereof, 
  
 (f) the New Lender is deemed to be a Lender for all purposes under the Credit Agreement, and 
  
 (g) the Commitment Schedule is amended and restated in its
entirety to read as set forth on Annex A hereto. 
  
 The Borrower hereby agrees to compensate each Lender for all losses, expenses and liabilities incurred by such Lender in connection with the sale and assignment of any Eurodollar Loans and the reallocation described in Section 2(a) below,
in each case on the terms and in the manner set forth in Section 3.4 of the Credit Agreement. 
  
 2. Conditions of Effectiveness. The effectiveness of this Amendment is subject to the conditions precedent that (a) the Agent shall have administered the reallocation of the Aggregate Outstanding Revolving
Credit Exposure on the Effective Date ratably among the Lenders after giving effect to the increase in the Aggregate Revolving Loan Commitment pursuant hereto and (b) the Agent shall have received (i) counterparts of this Amendment duly executed by
the Borrower, the Required Lenders, the New Lender and the Agent and the Consent and Reaffirmation attached hereto duly executed by the Guarantors, (ii) such other instruments and documents as are reasonably requested by the Agent and (iii) payment
and/or reimbursement of all of the fees and expenses (including reasonable attorneys’ fees and expenses) due or payable to the Agent in connection with this Amendment. 
  
 3. Representations and Warranties of the Borrower. The Borrower hereby represents and warrants as follows:

  
 (a) This Amendment and the Credit Agreement as amended hereby
constitute legal, valid and binding obligations of the Borrower and are enforceable against the Borrower in accordance with their terms, except as enforceability may be limited by (i) bankruptcy, insolvency, fraudulent conveyances, reorganization or
similar laws relating to or affecting the enforcement of creditors’ rights generally; (ii) general equitable principles (whether considered in a proceeding in equity or at law); and (iii) requirements of reasonableness, good faith and fair
dealing. 
  

 2 

 (b) As of the date hereof and giving effect to the terms of this Amendment, (i) there exists no Default
or Unmatured Default and (ii) the representations and warranties contained in Article V of the Credit Agreement, as amended hereby, are true and correct, except for representations and warranties made with reference solely to an earlier date.

  
 4. Reference to and Effect on the Credit Agreement.

  
 (a) Upon the effectiveness hereof, each reference to the
Credit Agreement in the Credit Agreement or any other Loan Document shall mean and be a reference to the Credit Agreement as amended hereby. 
  
 (b) Except as specifically amended above, the Credit Agreement and all other documents, instruments and agreements executed and/or delivered in connection
therewith shall remain in full force and effect and are hereby ratified and confirmed. 
  
 (c) The execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Agent or the Lenders, nor constitute a waiver of any provision of the Credit Agreement
or any other documents, instruments and agreements executed and/or delivered in connection therewith. 
  
 5. Governing Law. This Amendment shall be governed by and construed in accordance with the internal laws of the State of Ohio, but giving effect to
federal laws applicable to national banks. 
  
 6. Headings.
Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose. 
  
 7. Counterparts. This Amendment may be executed by one or more of the parties hereto on any number of separate
counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. 
  
 [Signature Pages Follow] 
  

 3 

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

  

			
	 ABX AIR, INC.,
as the Borrower

		
	 By:
	 	 /s/ Joseph C. Hete

	 Name:
	 	 Joseph C. Hete

	 Title:
	 	 President and CEO

	
	 BANK ONE, NA (MAIN OFFICE COLUMBUS),
as Administrative Agent, as LC Issuer and as a Lender

		
	 By:
	 	 /s/ John B. Middelberg

	 Name:
	 	 John B. Middelberg

	 Title:
	 	 Vice President

	
	 PNC BANK, NATIONAL ASSOCIATION,
as a Lender

		
	 By:
	 	 /s/ Bruce A. Kintex

	 Name:
	 	 Bruce A. Kintex

	 Title:
	 	 Vice President

	
	 MERRILL LYNCH BUSINESS FINANCIAL
 SERVICE INC.,
as a New Lender

		
	 By:
	 	 /s/ Rendell R. Meck

	 Name:
	 	 Rendell R. Meck

	 Title:
	 	 Vice President

  
 Signature Page to
Amendment No.1 
 ABX Air, Inc. 
 Credit Agreement dated as of March 31, 2004 

 CONSENT AND REAFFIRMATION 
  
 Each of the undersigned hereby acknowledges receipt of a copy of the foregoing Amendment No. 1 to the Credit Agreement dated
as of March 31, 2004 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) by and among ABX Air, Inc. (the “Borrower”), the financial institutions from time to time
party thereto (the “Lenders”) and Bank One, NA (Main Office Columbus), in its individual capacity as a Lender and in its capacity as contractual representative (the “Agent”), which Amendment No. 1 is dated as of June 15, 2004
(the “Amendment”). Capitalized terms used in this Consent and Reaffirmation and not defined herein shall have the meanings given to them in the Credit Agreement. Without in any way establishing a course of dealing by the Agent or any
Lender, each of the undersigned consents to the Amendment and reaffirms the terms and conditions of the Guaranty Agreement, the Pledge and Security Agreement and any other Loan Document executed by it and acknowledges and agrees that such agreement
and each and every such Loan Document executed by the undersigned in connection with the Credit Agreement remains in full force and effect and is hereby reaffirmed, ratified and confirmed. All references to the Credit Agreement contained in the
above-referenced documents shall be a reference to the Credit Agreement as so modified by the Amendment and as the same may from time to time hereafter be amended, modified or restated. 
  
 Dated: June 15, 2004 
  

							
	 SOUND SUPPRESSION, INC.
	 	 AIRBORNE F T Z, INC.

				
	 By:
	 	 /s/ Amiel M. Kuli

	 	 By:
	 	 /s/ Joseph C. Hete

	 Name:
	 	 Amiel M. Kuli
	 	 Name:
	 	 Joseph C. Hete

	 Title:
	 	 President
	 	 Title:
	 	 President

  
 Signature Page to
Amendment No.1 
 ABX Air, Inc. 
 Credit Agreement dated as of March 31, 2004 

 ANNEX A 
  
 COMMITMENT SCHEDULE 
  

							
	 Lender

	  	Amount of Revolving Loan
Commitment

	  	% of Aggregate Revolving
Loan Commitment

	 
	 Bank One, NA
	  	$	25,000,000	  	56	%
	 PNC Bank, National Association
	  	$	10,000,000	  	22	%
	 Merrill Lynch Business Financial Services Inc.
	  	$	10,000,000	  	22	%
	 TOTAL
	  	$	45,000,000.00	  	100	%General Release

 Exhibit 10.34 
  
 GENERAL RELEASE 
  
 THIS GENERAL RELEASE (this “Release”) is entered into effective as of July 19, 2004 (“Effective Date”) by and between Daou Systems,
Inc., a Delaware corporation (the “Company”), and Daniel J. Malcolm, an individual resident of Pennsylvania (“Employee”), with reference to the following facts: 
  
 RECITALS 
  
 A. The parties hereto entered into an Employment Agreement dated as of November 6, 2001 (the “Agreement”). Pursuant to the terms and conditions
of the Agreement, and contingent upon satisfaction of the conditions described in the Agreement, Employee would become eligible for severance payments as defined by the Agreement beginning on the eighth (8th) day following his execution of this
Release, in exchange for Employee’s release of the Company from all claims which Employee may have against the Company as of the Separation Date. 
  
 B The parties desire to dispose of, fully and completely, all claims which Employee may have against the Company in the manner set forth in this Release.

  
 AGREEMENT 
  
 1. Consideration for Release. 
  
 In exchange for Employee’s execution of this Release and releasing all
claims against the Company as set forth in Section 2, Employee will be paid or will be eligible for a Severance Payment in an amount equal to Three Hundred Thousand Dollars and Zero Cents ($300,000.00 ) less all applicable federal, state and local
income, social security and other payroll taxes. Payment of this Severance Payment will be on a bi-monthly basis, consistent with the Company’s regular payroll schedule, beginning the eighth day from Employee’s execution of this Agreement,
or if the eighth day falls on a weekend or a holiday, on the next business day. In the event of a Change in Control during the twelve month period following the effective date of this Agreement, payment of any outstanding portion of the Severance
Payment will be paid in a lump sum within five (5) business days following the effective date of a Change in Control (as defined in the Agreement). 
  
 2. Release. 
  
 2.1. Except for claims under the Workers’ Compensation Act and the Unemployment Insurance Code, in exchange for the consideration described in
Section 1, receipt of which Employee acknowledges, Employee, for himself and his heirs, successors and assigns, fully releases, and discharges the Company, its present and former agents, employees, officers, 

 directors, shareholders, principals, predecessors, alter egos, partners, parents, subsidiaries, affiliates, attorneys,
insurers, successors and assigns, from any and all claims, demands, grievances, causes of action or suits of any kind arising out of, or in any way connected with, the dealings between the parties through the date his employment terminated (the
“Separation Date”), including the employment relationship and its termination. Employee also releases and waives any and all legal or administrative claims arising under any express or implied contract, law (federal, state or
administrative), rule, regulation, or ordinance, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, the California Fair Employment and Housing Act, or the Age Discrimination in Employment
Act of 1967, as amended (“ADEA”), and the Older Workers Benefit Protection Act, as amended (“OWBPA”) (except a claim relating to whether this release or waiver is valid under the ADEA and except for any claims under the ADEA that
may arise after the date this Agreement is executed by Employee). 
  
 3. Age Discrimination in Employment Claims. 
  
 The Release set forth in Section 2 includes a waiver of rights or claims based on age discrimination in violation of the ADEA and applicable state laws. The ADEA requires the Company to advise Employee of the
following to effectuate his knowing and voluntary waiver of rights or claims under the ADEA: 
  
 3.1. The Company advises Employee to consult with an attorney prior to executing this Agreement and Employee acknowledges that the Company has advised him in writing to do so. 
  
 3.2. Employee acknowledges that he has been given twenty-one (21) days from
the date of this Agreement to consider entering into the waiver of the ADEA claims, if any. Employee agrees that if he decides to shorten the 21-day period by executing this Agreement before the expiration of 21 days, he does so knowingly and
voluntarily. 
  
 3.3. Employee acknowledges that by this Agreement
he has been informed that he may revoke his waiver of the ADEA claims for up to 7 days after executing this Agreement. To be effective, his revocation must be in writing, signed, dated and delivered to the Company’s President no later than 7
days from the date on which Employee signs this Agreement. If the 7th day falls on a weekend or holiday, Employee’s revocation must be delivered the next business day. Employee acknowledges his understanding that this Agreement shall not become
effective and enforceable until the revocation period expires and that the Severance Payment provided for in Section 2 will not be made until the revocation period expires without revocation by Employee. 
  
 4. No Undue Influence. 
  
 This Release is executed voluntarily and without any duress or undue
influence. Employee acknowledges he has read this Release and executed it with his full and free consent. No provision of this Release shall be construed against any party by virtue of the fact that such party or its counsel drafted such provision
or the entirety of this Release. 
  

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 5. Confidentiality of Agreement and Release. 
  
 Employee further agrees to keep confidential the terms of the Agreement and
this Release and to refrain from disclosing any information regarding the Agreement, this Release and their respective terms to any third party, unless required to do so (a) by a regulatory body (e.g. filings with the Securities Exchange
Commission); (b) in financial disclosures to auditors or in audited financial statements; or (c) under oath, if properly ordered, in a court of competent jurisdiction. Employee agrees to notify the Company in writing upon first notification that he
may be required by law to disclose any information deemed confidential by the Agreement or this Release. Notice must be provided in sufficient time for the party receiving notice to oppose or otherwise respond to the request. 
  
 6. Continuing Obligations. 
  
 Employee acknowledges and represents that he will comply with his
post-employment obligations to the Company, including those set forth in his Employee Confidentiality and Inventions Agreement with the Company. 
  
 7. Governing Law. 
  
 This Release is made and entered into in Pennsylvania and accordingly the rights and obligations of the parties hereunder shall in all respects be
construed, interpreted, enforced and governed in accordance with the laws of the Commonwealth of Pennsylvania as applied to contracts entered into by and between residents of Pennsylvania to be wholly performed within Pennsylvania. 
  
 8. Severability. 
  
 If any provision of this Release is held to be invalid, void or
unenforceable, the balance of the provisions of this Release shall, nevertheless, remain in full force and effect and shall in no way be affected, impaired or invalidated. 
  
 9. Counterparts. 
  
 This Release may be executed simultaneously in one or more counterparts, each of which shall be deemed an original, but all
of which together shall constitute one and the same instrument. This Release may be executed by facsimile, with originals to follow by overnight courier. 
  
 10. Arbitration. 
  
 Any dispute or claim arising out of this Release shall be subject to final and binding arbitration. The arbitration will be conducted by one arbitrator
who is a member of the American Arbitration Association (the “AAA”) and will be governed by the Model Employment Arbitration rules of the AA.A. All fees and costs will be allocated to the parties to the arbitration as determined by the
arbitrator; provided, however, that each party will pay one-half of the estimated arbitrator’s fees up front; and, if either party fails to do so, then a default will be entered against such party solely with respect to such fees. Any
determination of the arbitrator 
  

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 shall be final and binding on the parties. Nothing in this Release will prevent a party hereto from applying to a court
that would otherwise have jurisdiction for provisional or interim injunctive or other equitable measures. 
  
 11. Entire Agreement. 
  
 This Release constitutes the entire agreement of the parties with respect to the subject matter of this Release, and supersedes all prior and
contemporaneous negotiations, agreements and understandings between the parties, oral or written. 
  
 12. Modification; Waivers. 
  
 No modification, termination or attempted waiver of this Release will be valid unless in writing, signed by the party against whom such modification,
termination or waiver is sought to be enforced. 
  
 13. Amendment. 
  
 This Release may be amended or
supplemented only by a writing signed by Employee and the Company. 
  

					
	Dated:                    	 	 	 	  

	 	 	 	 	Daniel J. Malcolm
			
	 	 	 	 	Daou Systems, Inc.
	Dated:                    	 	 	 	 
	 	 	By:	 	  

	 	 	 	 	John A. Roberts,
	 	 	 	 	Chief Financial Officer

  

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