Document:

Document

Exhibit 10.3 

EIGHTH AMENDMENT
     EIGHTH AMENDMENT dated as of July 19, 2021 (this “Agreement”) to the Second Amended and Restated Credit Agreement dated as of June 5, 2015 (as amended by that certain First Amendment dated as of August 5, 2016, that certain Second Amendment dated as February 21, 2017, that certain Third Amendment dated as of August 22, 2017, that certain Fourth Amendment dated as of September 22, 2017, that certain Fifth Amendment dated as of April 2, 2018, that certain Sixth Amendment dated as of November 22, 2019, that certain Seventh Amendment dated as of May 21, 2021 and as further amended, restated, supplemented or otherwise modified to date, the “Credit Agreement”), by and among ASGN Incorporated, a Delaware corporation (the “Borrower”), each Lender party from time to time thereto (including, without limitation, each Lender executing an Authorization (as defined below)), and Wells Fargo Bank, National Association, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). 

Statement of Purpose

    WHEREAS the Borrower, the Lenders and the Administrative Agent are parties to the Credit Agreement, pursuant to which the Lenders have extended certain credit facilities to the Borrower. 

WHEREAS the Borrower has requested that the Administrative Agent and the Lenders agree to amend the Credit Agreement as more specifically set forth herein.
    NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows:
1.    Capitalized Terms.  All capitalized undefined terms used in this Agreement (including, without limitation, in the introductory paragraph and the Statement of Purpose hereto) shall have the meanings assigned thereto in the Credit Agreement.
2.    Amendments to the Credit Agreement.  
(a)    Section 2.05(b)(ii) of the Credit Agreement is amended by amending and restating such clause (ii) thereof in its entirety as follows: 
“(ii)     Dispositions.    If the Borrower or any of its Subsidiaries Disposes of any property (other than any Disposition of any property permitted by subsections (a) through (i) or subsection (k) of Section 7.05 and any Disposition of property as a result of an Insurance and Condemnation Event) which results in the realization by such Person of Net Cash Proceeds in excess of $5,000,000, the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of such Net Cash Proceeds not later than two Business Days after receipt thereof by such Person (such prepayments to be applied as set forth in clauses (v) and (vii) below); provided, however, that with respect to any Net Cash Proceeds realized under a Disposition described in this Section 2.05(b)(ii), at the election of the Borrower (as notified by the Borrower to the Administrative Agent on or prior to the date of the required payment under this Section 2.05(b)(ii)), the Borrower or such Subsidiary may reinvest such Net Cash Proceeds for Permitted Acquisitions after the Restatement Date or in fixed assets so long as such Permitted Acquisition or reinvestment is made within 365 days after the receipt of such Net Cash Proceeds, or in the event that the Borrower or such Subsidiary has entered into a legal binding commitment to make such Permitted Acquisition or reinvestment, within 540 days of the receipt of such Net Cash Proceeds; and provided further, however, that any Net Cash Proceeds not so reinvested or 
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committed to be reinvested shall be immediately applied to the prepayment of the Loans as set forth in this Section 2.05(b)(ii).”
(b)    Section 2.05(b)(iv) of the Credit Agreement is amended by amending and restating such clause (iv) thereof in its entirety as follows:
“(iv)    Insurance and Condemnation Events.  If any Insurance and Condemnation Event occurs, which results in the realization by the Borrower or any of its Subsidiaries of Net Cash Proceeds in excess of $5,000,000, the Borrower shall prepay an aggregate principal amount of Loans equal to 100% of such Net Cash Proceeds not later than two Business Days after receipt thereof by such Person (such prepayments to be applied as set forth in clauses (v) and (vii) below); provided, however, that with respect to any Net Cash Proceeds realized as a result of an Insurance and Condemnation Event described in this Section 2.05(b)(iv), at the election of the Borrower (as notified by the Borrower to the Administrative Agent on or prior to the date of the required payment under this Section 2.05(b)(iv)), the Borrower or such Subsidiary may reinvest such Net Cash Proceeds for Permitted Acquisitions after the Restatement Date or in fixed assets so long as such Permitted Acquisition or reinvestment is made within 365 days after the receipt of such Net Cash Proceeds, or in the event that the Borrower or such Subsidiary has entered into a legal binding commitment to make such Permitted Acquisition or reinvestment, within 540 days of the receipt of such Net Cash Proceeds; and provided further, however, that any Net Cash Proceeds not so reinvested or committed to be reinvested shall be immediately applied to the prepayment of the Loans as set forth in this Section 2.05(b)(iv).”
(c)    Section 7.05 of the Credit Agreement is amended by amending and restating clause (j) thereof as follows:
“(j)    Dispositions by the Borrower and its Subsidiaries not otherwise permitted under this Section 7.05; provided that (i) at the time of any such Disposition and after giving effect to such Disposition, no Default shall exist, (ii) any such Disposition is for at least fair market value, (iii) not less than 75% of the purchase price for any such Disposition shall be paid to the Borrower or such Subsidiary in cash and/or Cash Equivalents, and (iv) after giving effect to such Disposition, the Borrower shall be in pro forma compliance with the Debt Incurrence Test and Section 7.11 (in each case, regardless of whether a Suspension Period is in effect at such time and determined at the time each such Disposition is made based on the financial statements most recently delivered to the Administrative Agent pursuant to Section 6.01(a) or Section 6.01(b), as applicable, and after giving pro forma effect to each such Disposition and after giving effect to any then applicable Secured Leverage Ratio Increase)); and”
3.    Conditions to Effectiveness.  Upon the satisfaction or waiver of each of the following conditions, this Agreement shall be deemed to be effective (the date of such satisfaction, the “Effective Date”):

(a)    the Administrative Agent shall have received (i) an executed signature page to this Agreement or a written authorization directing the Administrative Agent to execute this Agreement on its behalf (each, an “Authorization”) from Lenders that constitute Required Lenders and (ii) an executed signature page to this Agreement from the Borrower;

(b)    the Administrative Agent shall have received counterparts of the Acknowledgment and Reaffirmation attached hereto executed by each Subsidiary Guarantor; 

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(c)    each of the Administrative Agent and Wells Fargo Securities, LLC (“WFS”) shall have been paid or reimbursed for all fees and reasonable and documented out-of-pocket costs and expenses incurred by it or its Affiliates in connection with this Agreement, including, without limitation and without duplication, (i) those set forth in the letter agreement dated as of June 30, 2021 among WFS, Wells Fargo Bank, National Association and the Borrower and (ii) the reasonable and documented fees, disbursements and other charges of one counsel for the Administrative Agent and its Affiliates, in each case, to the extent invoiced at least one (1) Business Day prior to the Effective Date (or set forth in a funds flow or settlement statement approved by the Borrower);

 (d)    the Borrower shall have paid to WFS a fee equal to 0.10% of the aggregate outstanding principal amount of Term Loans and Revolving Credit Commitments held (as reflected in the Register as of such date and time) by all Lenders that have provided (and not withdrawn) their consent to this Agreement (collectively, the “Consenting Lenders”) on or prior to 3:00 p.m., New York City time, on July 14, 2021, which fee shall be paid to WFS, for the account of the Consenting Lenders, and WFS shall further distribute such fee to the Consenting Lenders on pro rata basis determined based on each Consenting Lender’s respective percentage of all Term Loans and Revolving Credit Commitments held by Consenting Lenders as of such date and time (as reflected in the Register); and

    (e)    each of the representations and warranties set forth in this Agreement and the Acknowledgment and Reaffirmation shall be true and correct.
 
Without limiting the generality of the provisions of Section 9.03 of the Credit Agreement, for purposes of determining compliance with the conditions specified in this Section 3 or otherwise, each Lender that has signed this Agreement or an Authorization shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Effective Date specifying its objection thereto.
4.    Limited Effect.  Except as expressly provided herein, the Credit Agreement and the other Loan Documents shall remain unmodified and in full force and effect.  This Agreement shall not be deemed (a) to be a waiver of, consent to, or a modification or amendment of any other term or condition of the Credit Agreement or any other Loan Document, (b) to prejudice any right or rights which the Administrative Agent or the Lenders may now have or may have in the future under or in connection with the Credit Agreement or the other Loan Documents or any of the instruments or agreements referred to therein, as the same may be amended, restated, supplemented or modified from time to time, (c) to be a commitment or any other undertaking or expression of any willingness to engage in any further discussion with the Borrower or any of its Subsidiaries or any other Person with respect to any other waiver, amendment, modification or any other change to the Credit Agreement or the Loan Documents or any rights or remedies arising in favor of the Lenders or the Administrative Agent, or any of them, under or with respect to any such documents or (d) to be a waiver of, or consent to, or a modification or amendment of, any other term or condition of any other agreement by and among the Loan Parties, on the one hand, and the Administrative Agent or any other Lender, on the other hand.  References in the Credit Agreement to “this Agreement” (and indirect references such as “hereunder”, “hereby”, “herein”, “hereof” or other words of like import) and in any other Loan Document to the “Credit Agreement” shall be deemed to be references to the Credit Agreement as modified hereby.  Without limiting the generality of the foregoing, the execution and delivery of this Agreement shall not constitute a novation of any indebtedness or other obligations owing to the Lenders or the Administrative Agent under the Credit 
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Agreement based on facts or events occurring or existing prior to the execution and delivery of this Agreement.  

5.    Representations and Warranties.  The Borrower represents and warrants that (a) it has the corporate power and authority to execute, deliver and perform this Agreement, (b) it has taken all necessary corporate action to authorize the execution, delivery and performance of this Agreement, (c) this Agreement has been duly executed and delivered on behalf of the Borrower, (d) this Agreement constitutes a legal, valid and binding obligation of the Borrower, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law), (e) after giving effect to this Agreement, each of the representations and warranties made by it in or pursuant to the Loan Documents is true and correct in all material respects (except to the extent that such representation and warranty is subject to a materiality or Material Adverse Effect qualifier, in which case it shall be true and correct in all respects), in each case on and as of the Effective Date as if made on and as of the Effective Date, except to the extent that such representations and warranties relate to an earlier date, in which case such representations and warranties are true and correct in all material respects (except to the extent that such representation and warranty is subject to a materiality or Material Adverse Effect qualifier, in which case it shall be true and correct in all respects) as of such earlier date and (f) after giving effect to this Agreement, no Default shall have occurred and be continuing.

    6.    Reaffirmation.  By its execution hereof, Borrower hereby expressly (a) affirms that each of the Liens granted in or pursuant to the Loan Documents are valid and subsisting and (b) agrees that this Agreement shall in no manner impair or otherwise adversely affect any of the Liens granted in or pursuant to the Loan Documents.

    7.    Execution in Counterparts.  This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other electronic imaging means (e.g. “pdf” or “tif”) shall be effective as delivery of an original executed counterpart hereof.  

8.    Governing Law.  THIS AGREEMENT AND ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION (WHETHER IN CONTRACT OR TORT OR OTHERWISE) BASED UPON, ARISING OUT OF OR RELATING TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED HEREBY SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
    9.    Entire Agreement.  This Agreement is the entire agreement, and supersedes any prior agreements and contemporaneous oral agreements, of the parties concerning its subject matter. This Amendment is a Loan Document and is subject to the terms and conditions of the Credit Agreement.
    10.    Successors and Assigns.  This Agreement shall be binding on and inure to the benefit of the parties and their heirs, beneficiaries, successors and permitted assigns. 
[Signature Pages Follow]
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145240514_4

 

    IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed under seal by their duly authorized officers, all as of the day and year first written above.

BORROWER:    ASGN INCORPORATED, as Borrower

By:       /s/ James L. Brill
Name:  James L. Brill
Title:  Treasurer
    

ASGN Incorporated
Eighth Amendment 
Signature Page

 

ADMINISTRATIVE AGENT:    WELLS FARGO BANK, NATIONAL ASSOCIATION,
as Administrative Agent and a Lender

By:       /s/ Jamie Chen
Name: Jamie Chen
Title:   Senior Vice President

ASGN Incorporated
Eighth Amendment 
Signature Page

 

REVOLVING CREDIT LENDERS:    BANK OF AMERICA, N.A., as a Lender

By:      /s/ John F. Lynch
Name: John F. Lynch
Title:   Senior Vice President

        CAPITAL ONE, NATIONAL ASSOCIATION, as a Lender

By:      /s/ Benjamin Lucas
Name: Benjamin Lucas
Title:   Vice President

        FIFTH THIRD BANK, NATIONAL ASSOCIATION, as a Lender

By:      /s/ Peter Samboul
Name: Peter Samboul
Title:  Managing Director

        MUFG Union Bank, N.A., as a Lender

By:      /s/ Meng Zhang
Name: Meng Zhang
Title:  Vice President

        JPMORGAN CHASE BANK N.A., as a Lender

By:       /s/ Kenneth Wong
Name: Kenneth Wong
Title:   Vice President

        TRUIST BANK, as a Lender

By:      /s/ David Miller
Name: David Miller
Title:   Director

ASGN Incorporated
Eighth Amendment 
Signature Page

 

        U.S. BANK NATIONAL ASSOCIATION, as a Lender

By:      /s/ Glenn Leyrer
Name: Glenn Leyrer
Title:   Vice President

        FirstBank Puerto Rico d/b/a FirstBank Florida, as a Lender

By:      /s/ Kevin P. Flynn
Name: Kevin P. Flynn
Title:   SVP, Corporate Banking

ASGN Incorporated
Eighth Amendment 
Signature Page

 

AUTHORIZATION AND CONSENT – TERM B LENDERS

ASGN Incorporated Eighth Amendment

Wells Fargo Bank, National Association,
as Administrative Agent under the Credit Agreement (as defined below)
MAC D1109-019
1525 West W.T. Harris Blvd.
Charlotte, North Carolina 28262
Attention:  Syndication Agency Services

Re:    Eighth Amendment to be dated on or about July 19, 2021 (the “Amendment”) by and among ASGN Incorporated, a Delaware corporation (the “Company”), the lenders from time to time party thereto (the “Lenders”) and Wells Fargo Bank, National Association, as administrative agent for the Lenders (in such capacity, the “Administrative Agent”), which amends that certain Second Amended and Restated Credit Agreement dated as of June 5, 2015 (as previously amended, restated, supplemented or otherwise modified, the “Credit Agreement”) by and among, the Company, the Lenders and the Administrative Agent. All capitalized undefined terms used in this Authorization and Consent shall have the meanings assigned thereto in the Amendment.

This Authorization and Consent acknowledges our receipt and review of the execution copy of the Amendment in the form posted on the ASGN Incorporated SyndTrak Online workspace or otherwise distributed to us.  By executing this Authorization and Consent, we hereby approve the Amendment and authorize the Administrative Agent to execute and deliver the Amendment on our behalf.

Each financial institution purporting to be a Lender and executing this Authorization and Consent agrees or reaffirms that it shall be a party to the Amendment and the other Loan Documents to which Lenders are parties and shall have the rights and obligations of a “Lender” (as defined in the Credit Agreement), and agrees to be bound by the terms and provisions applicable to a “Lender” under each such agreement and agrees to execute any additional documents reasonably requested by the Administrative Agent to evidence such financial institution’s rights and obligations under the Credit Agreement.

						
		                        
[Insert name of applicable fund or financial institution]

By:                          
Name:                        
Title:                        

 

ACKNOWLEDGMENT AND REAFFIRMATION

July 19, 2021

    By its execution hereof, each Subsidiary Guarantor hereby expressly (a) represents and warrants that (i) it has the corporate or limited liability company, as applicable, power and authority to execute, deliver and perform this Acknowledgment and Reaffirmation, (ii) it has taken all necessary corporate or other action to authorize the execution, delivery and performance of this Acknowledgment and Reaffirmation, (iii) this Acknowledgment and Reaffirmation has been duly executed and delivered on behalf of such Person, and (iv) this Acknowledgment and Reaffirmation constitutes a legal, valid and binding obligation of such Person, enforceable against it in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law), (b) consents to the Eighth Amendment dated as of the date hereof, by and among ASGN Incorporated, a Delaware corporation, the lenders party thereto and Wells Fargo Bank, National Association, as administrative agent for the lenders (the “Agreement”; all capitalized undefined terms used herein shall have the meanings assigned in the Agreement and if not defined in the Agreement, shall have the meanings assigned thereto in the Credit Agreement) and (c) acknowledges that the covenants, representations, warranties and other obligations set forth in the Credit Agreement and the other Loan Documents to which it is a party remain in full force and effect.  In furtherance of the foregoing, each Subsidiary Guarantor (i) affirms that each of the Liens granted in or pursuant to the Loan Documents are valid and subsisting and (ii) agrees that the Agreement shall in no manner impair or otherwise adversely affect any of the Liens granted in or pursuant to the Loan Documents.

[Signature Page Follows]

 

SUBSIDIARY GUARANTORS:    CREATIVE CIRCLE, LLC

By:    ASGN Incorporated, as sole member

By:  /s/ James L. Brill
Name:  James L. Brill
Title:  Treasurer

CYBERCODERS, INC.

By:  /s/ Jennifer Hankes Painter
Name:  Jennifer Hankes Painter
Title:      Secretary

APEX SYSTEMS, LLC 
OXFORD GLOBAL RESOURCES, LLC

By:  /s/ James L. Brill
Name:  James L. Brill
Title:      Treasurer

CYBERCODERS STAFFING SERVICES, LLC

By:    CyberCoders, Inc., as sole member

By:  /s/ Jennifer Hankes Painter
Name:  Jennifer Hankes Painter
Title:   Secretary

                    
ASGN Incorporated
Eighth Amendment Acknowledgment/Reaffirmation
Signature Page

 

ECS FEDERAL, LLC

By:  /s/ James L. Brill
Name:  James L. Brill
Title:      Treasurer

INFORELIANCE LLC

By:    ECS Federal, LLC, as sole member

By:  /s/ James L. Brill
Name:  James L. Brill
Title:    Treasurer

INTEGRATED SOLUTIONS MANAGEMENT, INC.

By:  /s/ James L. Brill
Name:  James L. Brill
Title:      Treasurer

SKYRIS LLC

By:  /s/ James L. Brill
Name:  James L. Brill
Title:      Treasurer

DHA GROUP, INC.

By:  /s/ James L. Brill
Name:  James L. Brill
Title:      Treasurer

DHA AMERICAN OPERATIONS, LLC

By:  /s/ Jennifer Hankes Painter
Name:  Jennifer Hankes Painter
Title:      Manager
ASGN Incorporated
Seventh Amendment Acknowledgment/Reaffirmation
Signature Page

 

LEAPFROG SYSTEMS, INC.

By:  /s/ Jennifer Hankes Painter
Name:  Jennifer Hankes Painter
Title:      Secretary

ASGN Incorporated
Seventh Amendment Acknowledgment/Reaffirmation
Signature Pagea2ndamendmenttocreditagr

1  144497170_3  AMENDMENT TO LOAN DOCUMENTS  (Amendment No. 2 to Credit Agreement)  This Amendment to Loan Documents (this “Agreement”) is dated as of May 13, 2021, and is  among NAUTILUS, INC., a Washington corporation (“Borrower”), the Lenders identified on the  signature pages hereof as Lenders (which Lenders constitute, as applicable, the Required Lenders, the  Supermajority Lenders, and all of the Lenders directly affected by the applicable consents and  amendments to be effected by this Agreement (as applicable, the “Requisite Lenders”)), and WELLS  FARGO BANK, NATIONAL ASSOCIATION, a national banking association, as agent for the Lenders  (the “Agent”)  The Lenders, Agent, and Borrower are party to a Credit Agreement dated as of January 31, 2020  (as amended, restated, supplemented, or otherwise modified before the date of this Agreement, the “Credit  Agreement”). This Agreement also refers to a Guaranty and Security Agreement dated as of January 31,  2020, among Borrower, each other Person party thereto as a “Grantor,” and Agent (that agreement, as  amended, restated, supplemented, or otherwise modified before the date of this Agreement, the “Guaranty  and Security Agreement”), which is the “Guaranty and Security Agreement” under and as defined in the  Credit Agreement  The parties now desire to modify the Credit Agreement and the Guaranty and Security Agreement  in certain respects.  The parties therefore agree as follows:  1. Definitions. Defined terms used but not defined in this Agreement are as defined in the Credit Agreement.  2. Amendments to Credit Agreement. (a) The definition of “Applicable Margin” in Section 1.1 of the Credit Agreement is hereby amended as follows:  (1) by replacing “(a) in the case of a Base Rate Loan which is a Term Loan, 4.00% (the “Term Loan Base Rate Margin”)” with “(a) in the case of a Base Rate Loan which is a Term Loan, 3.50% (the “Term Loan Base Rate Margin”)”; and (2) by replacing “(b) in the case of a LIBOR Rate Loan which is a Term Loan, 5.00% (the “Term Loan LIBOR Rate Margin”)” with “(b) in the case of a LIBOR Rate Loan which is a Term Loan, 4.50% (the “Term Loan LIBOR Rate Margin”)”. (b) The definition of “Borrowing Base” in Section 1.1 of the Credit Agreement is hereby amended as follows:  (1) in subclause (i) of clause (a), by replacing “$3,500,000” with “$5,000,000”; (2) in subclause (i) of clause (c), by replacing “$30,000,000” with “$35,000,000”; and Exhibit 10.1 

 

2  144497170_3  (3) in subclause (ii)(B)(1) of clause (c), by replacing “$7,000,000” with “$10,000,000”.  (c) Clause (a) of the definition of “Eligible Accounts” in Section 1.1 of the Credit  Agreement is hereby amended to read in its entirety as follows:  “ (a) (i) Accounts with selling terms of not more than 60 days that the Account  Debtor has failed to pay within 120 days of original invoice date or 60 days of due date,  or (ii) Accounts with selling terms of more than 60 days but not more than 75 days that  the Account Debtor has failed to pay within 135 days of original invoice date or 60 days  of due date,”  (d) Clause (j) of the definition of “Eligible Accounts” in Section 1.1 of the Credit  Agreement is hereby amended to read in its entirety as follows:  “ (j) Accounts with respect to an Account Debtor whose Eligible Accounts  owing to Borrowers exceed (i) for Dick’s Sporting Goods, Inc., and its Affiliates, on a  consolidated basis, 50% of all Eligible Accounts, (ii) for Amazon.com, Inc., and its  Affiliates, on a consolidated basis, 50% of all Eligible Accounts, (iii) for Walmart Inc.  and its Affiliates (including Walmart.com), on a consolidated basis, 50% of all Eligible  Accounts, (iv) for Best Buy Co., Inc., and its Affiliates, on a consolidated basis, 50% of  all Eligible Accounts, (v) for Target Corporation and its Affiliates, on a consolidated  basis, 25% of all Eligible Accounts, (vi) for Academy Sports and Outdoors, Inc., and its  Affiliates, on a consolidated basis, 25% of all Eligible Accounts, and (vii) for any other  Account Debtor, 15% of all Eligible Accounts (any such percentage under clauses (i)  through (vii), as applied to a particular Account Debtor or consolidated group of Account  Debtors, being subject to reduction by Agent in its Permitted Discretion if the  creditworthiness of such Account Debtor or consolidated group of Account Debtors  deteriorates), to the extent of the obligations owing by such Account Debtor in excess of  such percentage; provided, that in each case, the amount of Eligible Accounts that are  excluded because they exceed the foregoing percentage shall be determined by Agent  based on all of the otherwise Eligible Accounts prior to giving effect to any eliminations  based upon the foregoing concentration limit,”  (e) The definition of “Increased Reporting Event” in Section 1.1 of the Credit  Agreement is hereby amended to read in its entirety as follows:  “ “Increased Reporting Event” means a Springing Trigger Event.”  (f) The definition of “Letter of Credit Sublimit” in Section 1.1 of the Credit  Agreement is hereby amended by replacing “$7,500,000” with “$15,000,000”.  

 

3  144497170_3  (g) Clause (b) of the definition of “Payment Conditions” in Section 1.1 of the Credit  Agreement is hereby amended to read in its entirety as follows:  “ (b) either  (i) each of the following conditions in this clause (i) has been  satisfied:   (A)  Availability, (1) at all times during the 30 consecutive  days immediately preceding the date of such proposed payment and the consummation of  such Specified Transaction, calculated on a pro forma basis as if such proposed payment  was made, and the Specified Transaction was consummated, on the first day of such  period, and (2) after giving effect to such proposed payment and Specified Transaction, in  each case, is not less than $2,500,000, and   (B)  Liquidity, (1) at all times during the 30 consecutive days  immediately preceding the date of such proposed payment and the consummation of such  Specified Transaction, calculated on a pro forma basis as if such proposed payment was  made, and the Specified Transaction was consummated, on the first day of such period,  and (2) after giving effect to such proposed payment and Specified Transaction, in each  case, is not less than 20% of the Line Cap, or  (ii) each of the following conditions in this clause (ii) has been  satisfied:   (A)  the Fixed Charge Coverage Ratio of the Loan Parties and  their Subsidiaries is equal to or greater than 1.10:1.00 for the trailing 12-month period  most recently ended for which financial statements are required to have been delivered to  Agent pursuant to Schedule 5.1 to this Agreement (calculated on a pro forma basis as if  such proposed payment is a Fixed Charge made on the last day of such 12-month period  (it being understood that such proposed payment shall also be a Fixed Charge made on  the last day of such 12-month period for purposes of calculating the Fixed Charge  Coverage Ratio under this clause (ii) for any subsequent proposed payment to fund a  Specific Transaction)),   (B)  Availability, (1) at all times during the 30 consecutive  days immediately preceding the date of such proposed payment and the consummation of  such Specified Transaction, calculated on a pro forma basis as if such proposed payment  was made, and the Specified Transaction was consummated, on the first day of such  period, and (2) after giving effect to such proposed payment and Specified Transaction, in  each case, is not less than $2,500,000, and  (C) Liquidity, (1) at all times during the 30 consecutive days  immediately preceding the date of such proposed payment and the consummation of such  Specified Transaction, calculated on a pro forma basis as if such proposed payment was  made, and the Specified Transaction was consummated, on the first day of such period,  

 

4  144497170_3  and (2) after giving effect to such proposed payment and Specified Transaction, in each  case, is not less than 15% of the Line Cap, and”  (h) Clause (e) of the definition of “Permitted Acquisition” in Section 1.1 of the  Credit Agreement is hereby amended to read in its entirety as follows:  “ (e) [reserved],”  (i) The definition of “Permitted Indebtedness” in Section 1.1 of the Credit  Agreement is hereby amended as follows:  (1) in clause (g), by replacing “$1,000,000” with “$10,000,000”;  (2) in clause (p), by replacing “(ii) the principal amount of such unsecured Indebtedness does not  exceed $1,000,000 with respect to any Permitted Acquisition or $5,000,000 with respect to all  Permitted Acquisitions” with “(ii) the principal amount of such unsecured Indebtedness does not  exceed $5,000,000 with respect to any Permitted Acquisition or $10,000,000 with respect to all  Permitted Acquisitions”;  (3) in clause (q), by replacing “$2,500,000” with “$5,000,000”; and  (4) in clause (s), by replacing “$5,000,000” with “$25,000,000”.  (j) The definition of “Permitted Intercompany Advances” in Section 1.1 of the  Credit Agreement is hereby amended to read in its entirety as follows:  “ “Permitted Intercompany Advances” means loans made by (a) a Loan Party to  another Loan Party, (b) a Subsidiary of a Loan Party that is not a Loan Party to another  Subsidiary of a Loan Party that is not a Loan Party, (c) a Subsidiary of a Loan Party that  is not a Loan Party to a Loan Party, so long as the parties thereto are party to the  Intercompany Subordination Agreement, and (d) a Loan Party to a Subsidiary of a Loan  Party that is not a Loan Party so long as, solely for purposes of this clause (d), (i) the  aggregate amount of all such loans (by type, not by the borrower) does not exceed  $2,500,000 outstanding at any one time, (ii) at the time of the making of such loan, no  Event of Default has occurred and is continuing or would result therefrom,  (iii) Borrowers have Availability of $2,500,000 or greater immediately after giving effect  to each such loan, and (iv) Borrowers have Liquidity of $40,000,000 or greater  immediately after giving effect to each such loan.”  (k) Clause (q) of the definition of “Permitted Investments” in Section 1.1 of the  Credit Agreement is hereby amended by replacing “$5,000,000” with “$20,000,000”.  (l) The definition of “Permitted Policy Investments” in Section 1.1 of the Credit  Agreement is hereby amended to read in its entirety as follows:  “ “Permitted Policy Investments” means Investments permitted in accordance with  Administrative Borrower’s investment policy delivered to Agent prior to the Closing  Date and adopted by the Board of Directors of Administrative Borrower as in effect as of  

 

5  144497170_3  the Closing Date or as otherwise updated from time to time in consultation with Agent  and otherwise reasonably satisfactory to Agent.”  (m) The definition of “Real Property Collateral” in Section 1.1 of the Credit  Agreement is hereby amended by replacing “$1,000,000” with “$5,000,000”.  (n) Section 1.1 of the Credit Agreement is hereby further amended by inserting each  of the following new definitions in appropriate alphanumeric order:  “ “Covenant Testing Period” means a period (a) commencing on the last day of the  fiscal month of Borrowers most recently ended prior to a Springing Trigger Event for  which Borrowers are required to deliver to Agent monthly, quarterly, or annual financial  statements pursuant to Schedule 5.1 to this Agreement, and (b) continuing through and  including the first day after such Springing Trigger Event that (i) Availability has equaled  or exceeded $2,500,000 for 30 consecutive days and (ii) Liquidity has equaled or  exceeded the greater of (A) 12.5% of the Line Cap, and (B) $6,000,000 for  30 consecutive days.  “Line Cap” means, as of any date of determination, the lesser of (a) the  Maximum Revolver Amount, and (b) the Borrowing Base as of such date of  determination.  “Liquidity” means, as of any date of determination, an amount equal to the sum  of (a) Availability plus (b) the Qualified Cash Amount.   “Qualified Cash” means, as of any date of determination, the amount of  unrestricted cash, Cash Equivalents, and Permitted Policy Investments of the Loan  Parties and their Subsidiaries that is in Deposit Accounts or in Securities Accounts, or any  combination thereof, and which such Deposit Account or Securities Account is the  subject of a Control Agreement and is maintained by a branch office of the bank or  securities intermediary located within the United States.  “Qualified Cash Amount” means, as of any date of determination, the lesser of  (a) the amount of Qualified Cash, if any, in excess of $20,000,000, and (b) $15,000,000;  provided, that if, as of any date of determination, the amount of Qualified Cash does not  exceed $20,000,000, then the Qualified Cash Amount as of such date determination shall  be $0.  “Springing Trigger Event” means if at any time (a) Availability is less than  $2,500,000, or (b) Liquidity is less than the greater of (i) 12.5% of the Line Cap, and  (ii) $6,000,000.”  

 

6  144497170_3  (o) Section 7 of the Credit Agreement is hereby amended to read in its entirety as  follows:  “7. FINANCIAL COVENANTS.  Each Borrower covenants and agrees that, until the termination of all of the  Commitments and the payment in full of the Obligations:  7.1 Fixed Charge Coverage Ratio. Maintain a Fixed Charge Coverage  Ratio, calculated for each 12-month period ending on the first day of any Covenant  Testing Period and the last day of each fiscal month occurring until the end of any  Covenant Testing Period (including the last day thereof), in each case of at least 1.00 to  1.00.”  (p) Clause (i) of Schedule 5.2 to the Credit Agreement (which clause is the last  clause in the first section of such Schedule) is hereby amended to read in its entirety as follows:   “(i) a detailed report regarding each Loan Party’s and its Subsidiaries’ cash, Cash  Equivalents, and Permitted Policy Investments, including an indication of which amounts  constitute Qualified Cash.”  3. Amendments to Guaranty and Security Agreement.  (a) The definition of “Cash Dominion Event” in Section 1(a) of the Credit  Agreement is hereby amended to read in its entirety as follows:  “ (ix) “Cash Dominion Event” means the occurrence of either of the following:   (A) the occurrence and continuance of any Event of Default, or (B) the occurrence of any  Springing Trigger Event.”  (b) The definition of “Cash Dominion Period” in Section 1(a) of the Credit  Agreement is hereby amended to read in its entirety as follows:  “ (x) “Cash Dominion Period” means the period commencing after the  occurrence of a Cash Dominion Event and continuing until the date when (A) no Event of  Default shall exist and be continuing, (B) Availability is greater than $2,500,000 for  30 consecutive days, and (C) Liquidity is greater than the greater of (x) 12.5% of the Line  Cap, and (y) $6,000,000 for 30 consecutive days.”  4. Representations. To induce Agent and the Lenders to enter into this Agreement,  Borrower hereby represents to Agent and the Lenders as follows:  (1) that Borrower is duly authorized to execute and deliver this Agreement and is and will continue to  be duly authorized to borrow monies under the Credit Agreement, as amended by this Agreement,  and to perform its obligations under the Loan Documents, as amended by this Agreement;  (2) that the execution and delivery of this Agreement and the performance by Borrower of its  obligations under the Loan Documents, as amended by this Agreement, do not and will not  

 

7  144497170_3  conflict with any provision of law or of the Governing Documents of Borrower or of any  agreement binding upon Borrower;  (3) that each of the Credit Agreement, as amended by this Agreement, and the Guaranty and Security  Agreement, as amended by this Agreement, is a legal, valid, and binding obligation of Borrower,  enforceable against Borrower in accordance with its terms, except as enforceability may be  limited by equitable principles or by bankruptcy, insolvency, reorganization, moratorium, or  similar laws relating to or limiting creditors’ rights generally;  (4) that the representations and warranties of Borrower and, to the extent applicable, each other Loan  Party or its Subsidiaries contained in the Credit Agreement, as amended by this Agreement, the  Guaranty and Security Agreement, as amended by this Agreement, or in the other Loan  Documents are true and correct in all material respects (except that such materiality qualifier is  not applicable to any representations and warranties that already are qualified or modified by  materiality in the text thereof) on and as of the date of this Agreement, as though made on and as  of such date (except to the extent that such representations and warranties relate solely to an  earlier date, in which case such representations and warranties continue to be true and correct as  of such earlier date); and  (5) that no Default or Event of Default has occurred and is continuing.  5. Conditions. The effectiveness of this Agreement is subject to satisfaction of the  following conditions:  (1) that Agent has received this Agreement executed by Agent, the Requisite Lenders, and Borrower;  (2) that Borrower has paid to Agent all fees and expenses required to be paid by Borrower on the date  of this Agreement;  (3) that unless waived by Agent, Borrower has paid all reasonable fees, charges, and disbursements  of counsel to Agent to the extent invoiced prior to or on the date of this Agreement, plus such  additional amounts of such reasonable fees, charges and disbursements as shall constitute its  reasonable estimate of such reasonable fees, charges and disbursements incurred or to be incurred  by it through the closing of this Agreement (provided, that such estimate will not thereafter  preclude a final settling of accounts between Borrower and Agent); and  (4) that all legal matters incident to the execution and delivery of this Agreement are satisfactory to  Agent and its counsel.  6. Release of Agent and Lenders by Loan Parties. Each Loan Party hereby waives and  releases any and all current existing claims, counterclaims, defenses, or set-offs of every kind and nature  which it has or might have against Agent or any Lender arising out of, pursuant to, or pertaining in any  way to the Credit Agreement, the Guaranty and Security Agreement, any and all documents and  instruments delivered in connection with or relating to the foregoing, or this Agreement. Each Loan Party  hereby further covenants and agrees not to sue Agent or any Lender or assert any claims, defenses,  demands, actions, or liabilities against Agent or any Lender which occurred prior to or as of the date of  this Agreement arising out of, pursuant to, or pertaining in any way to the Credit Agreement, the Guaranty  

 

8  144497170_3  and Security Agreement, any and all documents and instruments delivered in connection with or relating  to the foregoing, or this Agreement.  7. Miscellaneous.   (a) This Agreement is governed by, and is to be construed in accordance with, the  laws of the State of Illinois. Each provision of this Agreement is severable from every other provision of  this Agreement for the purpose of determining the legal enforceability of any specific provision.  (b) This Agreement binds Agent, the Lenders, and Borrower and their respective  successors and assigns, and will inure to the benefit of Agent, the Lenders, and Borrower and the  successors and assigns of Agent and each Lender.  (c) Except as specifically modified or amended by the terms of this Agreement, all  other terms and provisions of the Credit Agreement, the Guaranty and Security Agreement, and the other  Loan Documents are incorporated by reference in this Agreement and in all respects continue in full force  and effect. Borrower, by execution of this Agreement, hereby reaffirms, assumes, and binds itself to all of  the obligations, duties, rights, covenants, terms, and conditions that are contained in the Credit  Agreement, Guaranty and Security Agreement, and the other Loan Documents.  (d) Each reference in the Credit Agreement to “this Agreement,” “hereunder,”  “hereof,” or words of like import, and each reference to the Credit Agreement in any and all instruments  or documents delivered in connection therewith, will be deemed to refer to the Credit Agreement, as  amended by this Agreement. Each reference in the Guaranty and Security Agreement to “this Agreement,”  “hereunder,” “hereof,” or words of like import, and each reference to the Guaranty and Security  Agreement in any and all instruments or documents delivered in connection therewith, will be deemed to  refer to the Guaranty and Security Agreement, as amended by this Agreement.  (e) This Agreement is a Loan Document. Borrower acknowledges that Agent’s  reasonable costs and out-of-pocket expenses (including reasonable attorneys’ fees) incurred in drafting  this Agreement and in amending the Loan Documents as provided in this Agreement constitute Lender  Group Expenses.  (f) The parties may sign this Agreement in several counterparts, each of which will  be deemed to be an original but all of which together will constitute one instrument. Delivery of an  executed counterpart signature page to this Agreement by facsimile or other electronic method of  transmission is as effective as executing and delivering this Agreement in the presence of the other parties  to this Agreement. Delivery of an executed counterpart signature page to this Agreement will be effective  upon the express release by the executing party (or by counsel to that executing party, on behalf of that  executing party) of that executed counterpart signature page.  [Signature pages to follow]

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