Document:

exv10w16

 

EXHIBIT 10.16

SIXTH AMENDMENT TO CREDIT AGREEMENT

     THIS SIXTH AMENDMENT TO CREDIT AGREEMENT (this “Amendment”), dated as of January 14,
2005, is entered into by and among CERIDIAN CORPORATION, a Delaware corporation formerly known as
New Ceridian Corporation (the “Borrower”), the several financial institutions party to the
Credit Agreement defined below (each a “Lender” and, collectively, the “Lenders”)
and BANK OF AMERICA, N.A., as administrative agent for itself and the other Lenders (in such
capacity, the “Administrative Agent”).

RECITALS

     A. The Borrower, each Lender and the Administrative Agent are parties to that certain
Credit Agreement dated as of January 31, 2001 as amended (the “Credit Agreement”),
pursuant to which the Administrative Agent and the Lenders have extended certain credit
facilities to the Borrower.

     B. The Borrower has advised the Lenders that because of the review of certain
capitalization and expensing procedures as disclosed in the Borrower’s press releases dated
July 19, 2004, August 5, 2004, September 30, 2004 and October 18, 2004, it has determined that
it may not be able to file with the SEC its quarterly reports on Form 10-Q with respect to the
fiscal quarters ending June 30, 2004 and September 30, 2004 within the time periods
contemplated by the Fifth Amendment to Credit Agreement dated as of December 31, 2004, among
the parties hereto, and the Borrower has requested that the Lenders agree to certain potential
amendments of the Credit Agreement to accommodate the possibility that the Borrower will not be
able to make such filings within such time periods.

     C. The Lenders are willing to amend the Credit Agreement subject to the terms and
conditions of this Amendment.

     NOW, THEREFORE, for valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto hereby agree as follows:

     1. Defined Terms. Unless otherwise defined herein, capitalized terms used herein shall
have the meanings, if any, assigned to them in the Credit Agreement.

     2. Amendments to Credit Agreement. The Credit Agreement shall be amended as follows,
effective as of the Effective Date:

          (a) The definition of “Material Adverse Effect” appearing in Section 1.01 of the
Credit Agreement shall be so amended by adding the following new sentence at the end thereof:

     It is understood and agreed that none of the following, individually or in the
aggregate, will constitute a Material Adverse Effect: (a) any delay in filing the Borrower’s
quarterly report on Form 10-Q filed with the SEC for the fiscal quarters of the Borrower
ending June 30, 2004 and September 30, 2004, which does not extend to a

 

 

date later than February 28, 2005; (b) the determination by the Borrower that a
restatement is required of financial reports or other information previously required to be
delivered under this Agreement with respect to periods ending before June 30, 2004, as
disclosed in the Borrower’s press release dated October 18, 2004, as a result of the review
of certain capitalization and expensing procedures at its Human Resources Solutions
business, as disclosed in the Borrower’s press releases dated July 19, 2004, August 5, 2004,
September 30, 2004 and October 18, 2004 (the “Review”); (c) any such actual
restatement which is furnished to the Lenders on or before February 28, 2005, to the extent
such restatement is not asserted in writing by the Required Lenders to constitute a Material
Adverse Effect on or before fourteen (14) days after any such restatement is furnished to
the Lenders; and (d) any effect of the Review on the financial statements furnished to the
Lenders with respect to either of the fiscal quarters ending June 30, 2004 or September 30,
2004 which are furnished to the Lenders on or before February 28, 2005, to the extent such
effect is not asserted in writing by the Required Lenders to constitute a Material Adverse
Effect on or before fourteen (14) days after any such effect is communicated in writing to
the Lenders.

          (b) Section 6.01(b) of the Credit Agreement shall be so amended by inserting the
following proviso before the period at the end thereof:

     ; provided however, that with respect to the fiscal quarters of the Borrower
ending June 30, 2004 and September 30, 2004, the Borrower will not be required to deliver
the reports or other information described above in this Section 6.01(b) until February 28,
2005; provided further, that this Section 6.01(b) will be not deemed
breach or violated (x) by reason of the Borrower’s determination, as disclosed in the
Borrower’s press release dated October 18, 2004, that a restatement of financial reports
of the Borrower or other information previously required to be delivered under this
Section 6.01(b) with respect to any period ending before June 30, 2004, is required
as a result of the Review or (y) when any such actual restatement is furnished to the
Lenders, to the extent such restatement is not asserted in writing by the Required Lenders
to constitute a material restatement of such previously delivered financial reports and
other information.

     3. Representations and Warranties. The Borrower hereby represents and warrants to the
Administrative Agent and the Lenders as follows:

          (a) No Default or Event of Default has occurred and is continuing.

          (b) The execution, delivery and performance by the Borrower of this Amendment have been duly
authorized by all necessary corporate and other action and do not and will not require any
registration with, consent or approval of, notice to or action by, any Person (including any
Governmental Authority) in order to be effective and enforceable. The Credit Agreement as amended
by this Amendment constitutes the legal, valid and binding obligation of the Borrower, enforceable
against it in accordance with its respective terms, without defense, counterclaim or offset.

          (c) All representations and warranties of the Borrower contained in Article V of the
Credit Agreement are true and correct as of the Effective Date, except to the extent such

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representations and warranties specifically refer to an earlier date, in which case they shall
be true and correct as of such earlier date.

          (d) The Borrower is entering into this Amendment on the basis of its own investigation and for
its own reasons, without reliance upon the Administrative Agent and the Lenders or any other
Person.

     4. Effective Date. Except with respect to the provisions of Section 6 hereof, which
will become effective in accordance the terms of such Section 6, this Amendment will become
effective as of January 14, 2005 (such date, the “Effective Date”), to the extent all of
the conditions precedent set forth in this Section 4 have been satisfied on or prior to
January 14, 2005:

          (a) The Administrative Agent shall have received from each of the Borrower and the Required
Lenders a duly executed original (or, if elected by the Administrative Agent, an executed facsimile
copy) counterpart to this Amendment.

          (b) The Administrative Agent shall have received from the Borrower a certificate executed by
the secretary, deputy secretary or assistant secretary of the Borrower providing satisfactory
evidence of the authorization of the execution, delivery and performance by the Borrower of this
Amendment.

          (c) The Borrower shall not have furnished the reports and other information required to be
furnished with respect to the fiscal quarters of the Borrower ending June 30, 2004 and September
30, 2004 within the time periods required pursuant to Section 6.01(b) of the Credit Agreement, as
amended pursuant to the Fifth Amendment to Credit Agreement dated as of December 31, 2004.

          (d) The Borrower shall have paid all Attorney Costs of the Administrative Agent to the extent
invoiced prior to January 14, 2005, plus such additional amounts of Attorney Costs as shall
constitute the Administrative Agent’s reasonable estimate of Attorney Costs incurred or to be
incurred by it through the closing proceedings related to this Amendment (provided that
such estimate shall not thereafter preclude a final settling of accounts between the Borrower and
the Administrative Agent).

          (e) The Administrative Agent shall have received, in form and substance satisfactory to it,
such additional approvals, consents, opinions, documents and other information as the
Administrative Agent may request prior to January 14, 2005.

          (f) The Administrative Agent shall have received from the Borrower the amount payable in
accordance with Section 6(a) hereof.

     5. Reservation of Rights. The Borrower acknowledges and agrees that the execution and
delivery by the Administrative Agent and the Required Lenders of this Amendment shall not (a) be
deemed to create a course of dealing or otherwise obligate the Administrative Agent or the Lenders
to execute similar amendments under the same or similar circumstances in the future or (b) be
deemed to create any implied waiver of any right or remedy of the Administrative Agent or any
Lender with respect to any term or provision of any Loan Document.

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     6. Fees.

          (a) Whether or not the other provisions of this Amendment become effective in accordance with
Section 4 of this Amendment, the Borrower agrees that if this Amendment is executed by the Required
Lenders prior to January 14, 2005 to pay to each Lender which duly executes and delivers an
original (or, if elected by the Administrative Agent, an executed facsimile copy) counterpart to
this Amendment prior to January 14, 2005 (an “Approving Lender”), $5,000 as compensation
for the administrative time and expense incurred by each such Lender in connection with such
execution and delivery. The aggregate amount of all such fees shall be delivered by the Borrower
to the Administrative Agent on January 14, 2005 for prompt distribution by the Administrative Agent
to the Approving Lenders.

          (b) If this Amendment becomes effective in accordance with Section 4 of this Amendment and the
Borrower shall not have furnished the reports and other information required to be furnished under
Section 6.01(b) of the Credit Agreement, as amended hereby, with respect to the fiscal quarters of
the Borrower ending June 30, 2004 and September 30, 2004 on or before February 7, 2005, the
Borrower agrees to pay to each Approving Lender, an additional $10,000 as further compensation for
being an Approving Lender. The aggregate amount of all such fees shall be delivered by the
Borrower to the Administrative Agent on February 7, 2005 for prompt distribution by the
Administrative Agent to the Approving Lenders.

     7. Miscellaneous.

          (a) Except as herein expressly amended, all terms, covenants and provisions of the Credit
Agreement are and shall remain in full force and effect and all references therein to such Credit
Agreement shall henceforth refer to the Credit Agreement as amended by this Amendment. This
Amendment shall be deemed incorporated into, and a part of, the Credit Agreement.

          (b) This Amendment shall be binding upon and inure to the benefit of the parties hereto and
thereto and their respective successors and assigns. No third party beneficiaries are intended in
connection with this Amendment.

          (c) THIS AMENDMENT IS SUBJECT TO THE PROVISIONS OF SECTIONS 10.17 AND 10.18 OF
THE CREDIT AGREEMENT RELATING TO GOVERNING LAW AND WAIVER OF RIGHT TO TRIAL BY JURY, THE PROVISIONS
OF WHICH ARE BY THIS REFERENCE HEREBY INCORPORATED HEREIN IN FULL.

          (d) This Amendment may be executed in any number of counterparts, each of which shall be
deemed an original, but all such counterparts together shall constitute but one and the same
instrument. Each of the parties hereto understands and agrees that this Amendment (and any other
document required herein) may be delivered by any party thereto either in the form of an executed
original or an executed original sent by facsimile transmission to be followed promptly by mailing
of a hard copy original, and that receipt by the Administrative Agent of a facsimile transmitted
document purportedly bearing the signature of a Lender or the Borrower shall bind such Lender or
the Borrower, respectively, with the same force and effect as the delivery of a hard copy original.
Any failure by the Administrative Agent to receive the hard copy executed original of such document
shall not diminish the binding effect of receipt of the facsimile transmitted executed

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original of such document of the party whose hard copy page was not received by the
Administrative Agent.

          (e) This Amendment, together with the Credit Agreement, contains the entire and exclusive
agreement of the parties hereto with reference to the matters discussed herein and therein. This
Amendment supersedes all prior drafts and communications with respect thereto. This Amendment may
not be amended except in accordance with the provisions of Section 10.01 of the Credit
Agreement.

          (f) If any term or provision of this Amendment shall be deemed prohibited by or invalid under
any applicable law, such provision shall be invalidated without affecting the remaining provisions
of this Amendment or the Credit Agreement, respectively.

          (g) The Borrower covenants to pay to or reimburse the Administrative Agent and the Lenders,
upon demand, for all out-of-pocket costs and expenses incurred in connection with the development,
preparation, negotiation, execution and delivery of this Amendment.

          (h) This Amendment shall constitute a “Loan Document” under and as defined in the Credit
Agreement.

(Remainder of page intentionally left blank)

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     IN WITNESS WHEREOF, the parties hereto have executed and delivered this Amendment as of the
date first above written.

	 	 	 	 	 
	 	 	CERIDIAN CORPORATION, as the Borrower
	 
	 	 	 	 
	

	 	By:
	 	/s/ David B. Kuhnau
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	David B. Kuhnau
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Vice President and Treasurer
	

	 	 	 	

(Signature Page to Amendment)

S-1

 

	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A., as the

Administrative Agent, a Lender and L/C Issuer
	 
	 	 	 	 
	

	 	By:
	 	/s/ B. Kenneth Burton, Jr.
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	B. Kenneth Burton, Jr.
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Vice President
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-2

 

	 	 	 	 	 
	 	 	AMSOUTH BANK, as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Eric J. Kruse
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	Eric J. Kruse
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Vice President
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-3

 

	 	 	 	 	 
	 	 	BANK ONE, N.A., as a Lender
	 
	 	 	 	 
	

	 	By:
	 	Not Applicable
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:	 	 
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:	 	 
	

	 	 	 	

	 
	 	 	 	 
	 	 	n/k/a JPMorgan Chase Bank, N.A.

(Signature Page to Sixth Amendment)

S-4

 

	 	 	 	 	 
	 	 	WACHOVIA BANK, N.A., as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Steven L. Hipsman
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	Steven L. Hipsman
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Director
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-5

 

	 	 	 	 	 
	 	 	MELLON BANK, N.A., as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ David J. Lenckos
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	David J. Lenckos
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	First Vice President
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-6

 

	 	 	 	 	 
	 	 	PNC BANK, NATIONAL ASSOCIATION, as a

Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Luke G. McElhinny
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	Luke G. McElhinny
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Assistant Vice President
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-7

 

	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ John-Paul Marotta
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	John-Paul Marotta
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Vice President
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-8

 

	 	 	 	 	 
	 	 	THE BANK OF TOKYO-MITSUBISHI, LTD.,

as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Patrick McCue
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	Patrick McCue
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Vice President and Manager
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-9

 

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Sabir A. Hashmy
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	Sabir A. Hashmy
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Director
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-10

 

	 	 	 	 	 
	 	 	THE ROYAL BANK OF SCOTLAND PLC, as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Philippe Sandmeier
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	Philippe Sandmeier
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Senior Vice President
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-11

 

	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as a

Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Ziad W. Amra
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	Ziad W. Amra
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Corporate Banking Officer
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-12

 

	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL

ASSOCIATION, as a Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Mark H. Halldorson
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	Mark H. Halldorson
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Vice President
	

	 	 	 	

	 
	 
	 	 	 	 
	

	 	By:
	 	/s/ Jennifer D. Barrett
	

	 	 	 	

	 
	 	 	 	 
	

	 	Name:
	 	Jennifer D. Barrett
	

	 	 	 	

	 
	 	 	 	 
	

	 	Title:
	 	Vice President and Loan Team Manager
	

	 	 	 	

(Signature Page to Sixth Amendment)

S-13exv10w1

 

Exhibit 10.1

AGREEMENT REGARDING CONTRACT

This Agreement (“Agreement”) is made and entered into by and between BLAKE BYRAM (“Assignor”) and
TI BUILDING PARTNERSHIP, LTD. (“Assignee”).

R E C I T A L S

WHEREAS, 8226 Bee Caves, Ltd. as Assignor and Assignor as purchaser entered into a Real Estate
Purchase and Sale Agreement dated December 17, 2004 (the “Contract”), (said contract being attached
hereto as EXHIBIT A), regarding the Property described therein (the “Property”); and

WHEREAS, Assignor desires to, and has agreed to, sell, and Assignee desires to and has agreed to,
purchase all of Assignor’s rights under the Contract.

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

1. Assignor hereby agrees to sell, transfer and assign to Assignee all rights of Assignor in, under
and to the Contract, however arising.

2. Assignee hereby agrees as consideration for the transfer, Assignee will pay to Assignor (i) if
and as the purchase is closed under the Contract an amount equal to ten percent of the purchase
price under the Contract, and (ii) an amount equal to the earnest money deposited by Assignor under
the Contract, and (iii) the amount of any out of pocket third party expenses incurred by Assignor
under the Contract for any surveys, property inspections and similar items.

3. This Agreement shall be governed and construed by the laws of the state of Texas. All
obligations herein shall be performable in Travis County, Texas. The parties hereby stipulate and
agree that any suit or proceeding brought to enforce any obligation or covenant under this
Agreement shall be brought exclusively in Travis County, Texas, it being stipulated and agreed that
such County is the exclusive County for venue for any such suit or proceeding.

4. This Agreement may be executed in any number of counterpart copies, each of which counterparts
shall be deemed an original for all purposes.

5. Assignee may assign this agreement.

     IN WITNESS WHEREOF, the parties have executed this Agreement to be effective the 16th day of
February, 2005.

1

 

	 	 	 	 	 
	 	 	

	 	 	BLAKE BYRAM
	 
	 	 	 	 
	 	 	TI BUILDING PARTNERSHIP, LTD.
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	

	

	 	Its:	 	 
	

	 	 	 	

2

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