Document:

exv10w29

 

Exhibit 10.29

EXECUTION VERSION

FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

          THIS FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is
entered into as of December 31, 2003, by and among, on the one hand, the
lenders identified on the signature pages hereof (such lenders, together with
their respective successors and assigns, are referred to hereinafter each
individually as a “Lender” and collectively as the “Lenders”), and WELLS FARGO
FOOTHILL, INC., a California corporation, formerly known as Foothill Capital
Corporation as administrative agent for the Lenders (“Agent”), and, on the
other hand, GXS HOLDINGS, INC., a Delaware corporation (“Parent”), and GXS
CORPORATION, a Delaware corporation (“Borrower”), with reference to the
following facts:

          WHEREAS, Borrower, Parent, the Lenders, and Agent are party to that
certain Loan and Security Agreement, dated as of March 21, 2003 (as the same
may be amended, restated, supplemented, or otherwise modified from time to
time, including hereby, the “Loan Agreement”), pursuant to
which the Lenders have made certain loans and financial accommodations to
Borrower;

          WHEREAS, Borrower has requested certain amendments to the Loan Agreement;

          WHEREAS, each Lender has agreed, subject to and in accordance with the
terms and conditions set forth herein, to amend the Loan Agreement.

          NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, and upon the terms and conditions
set forth herein, the parties hereby agree as follows:

     SECTION 1. RELATION TO THE LOAN AGREEMENT; DEFINITIONS.

          1.1 Relation to Loan Agreement. This Amendment
constitutes an integral part of the Loan Agreement and shall be deemed to be a
Loan Document for all purposes. Upon the effectiveness of this Amendment, on
and after the date hereof each reference in the Loan Agreement to “this
Agreement,” “hereunder,” “hereof,” or words of like import referring to the
Loan Agreement, and each reference in the other Loan Documents to “the Loan
Agreement,” “thereunder,” “thereof” or words of like import referring to the
Loan Agreement, shall mean and be a reference to the Loan Agreement as amended
hereby.

          1.2 Capitalized Terms. For all purposes of this
Amendment, capitalized terms used herein without definition shall have the
meanings specified in the Loan Agreement.

     SECTION 2. AMENDMENT TO LOAN AGREEMENT.

          2.1 Amendments to Section 1.1. Section
1.1 of the Loan Agreement is hereby amended by:

               (a) Adding the following new definition in alphabetical order:

 

 

          ““Permitted Restructuring Add-Back Amount” means
an amount equal to the sum of (a) actual restructuring costs and expenses
of Parent and its Subsidiaries arising in connection with work force
reductions which accrue during Parent’s fourth fiscal quarter of 2003 in
an aggregate amount not in excess of $15,000,000 plus
(b) actual restructuring costs and expenses of Parent and its
Subsidiaries arising in connection with the consolidation of certain of
Parent’s and its Subsidiaries’ facilities (including their headquarters
located in Gaithersburg, MD) which accrue during Parent’s fourth fiscal
quarter of 2003 or first fiscal quarter of 2004 in an aggregate amount
not in excess of $20,000,000; provided,
however, that (y) the portion of the Permitted
Restructuring Add-Back Amount consisting of restructuring costs and
expenses paid in cash shall not exceed $15,000,000 in the aggregate, and
(z) the Permitted Restructuring Add-Back Amount shall not include any
cash payments that are not made during Parent’s fourth fiscal quarter of
2003 or during 2004.

          (b) Deleting the definition of “EBITDA” in its entirety and replacing it
with the following new definition:

          ““EBITDA” for any period means Consolidated Net
Income for such period, plus, without duplication, the following to the
extent deducted in calculating such Consolidated Net Income:

               (a) provision for taxes based on income or profits of Borrower and
its Consolidated Restricted Subsidiaries;

               (b) Consolidated Interest Expense;

               (c) depreciation expense of Borrower and its Consolidated Restricted
Subsidiaries;

               (d) amortization expense (including amortization of goodwill and
other intangibles) of Borrower and the Consolidated Restricted
Subsidiaries (excluding amortization expense attributable to a prepaid
cash item that was paid in a prior period);

               (e) all other non-cash expenses or non-cash losses of Borrower and
the Consolidated Restricted Subsidiaries for such period (including such
expenses or losses in connection with minority interests in joint
ventures and in connection with restructuring activities, whether
incurred before or after the Closing Date), determined on a Consolidated
basis in accordance with GAAP (excluding any such charge that constitutes
an accrual of or a reserve for cash charges for any future period);

               (f) any non-recurring fees, expenses or charges realized by Borrower
and the Consolidated Restricted Subsidiaries during 2002 and during the
first quarter of 2003 related to (i) operating lease expense for
equipment and facilities leases
not being retained by Borrower and the Consolidated Restricted
Subsidiaries following the recapitalization; (ii) adjustments for the
portion of managed network fee related to

 

 

excess capacity not being
retained by Borrower and the Consolidated Restricted Subsidiaries
following the recapitalization; (iii) elimination of General Electric
corporate charges in excess of estimated costs of related services on a
stand-alone basis; and (iv) restructuring and related charges; provided
that the fees, expenses and charges referred to in this clause (f) will
not exceed (v) $9,300,000 in the first quarter of 2002; (w) $9,200,000 in
the second quarter of 2002; (x) $24,100,000 in the third quarter of 2002;
(y) $6,600,000 in the fourth quarter of 2002; and (z) $9,400,000 in the
first quarter of 2003, as well as other expenses incurred after April 1,
2003 which are reimbursed by General Electric Company;

               (g) all non-cash fees described in clause (7) of Section
7.13; and

               (h) with respect to the measurement periods ending on December 31,
2003 and March 31, 2004, the Permitted Restructuring Add-Back Amount;

and minus all non-cash items increasing Consolidated Net Income of such
Person for such period (excluding any items which represent the reversal
of any accrual of, or cash reserve for, anticipated cash charges in any
prior period).

               Notwithstanding the foregoing, the provision for taxes based on the
income or profits of, and the depreciation and amortization and non-cash
charges of, a Consolidated Restricted Subsidiary will be added to
Consolidated Net Income to compute EBITDA only to the extent (and in the
same proportion) that the net income of such Consolidated Restricted
Subsidiary was included in calculating Consolidated Net Income and only
if a corresponding amount would be permitted at the date of determination
to be dividended or similarly distributed to Borrower by such
Consolidated Restricted Subsidiary without prior governmental approval
(that has not been obtained) or is not, directly or indirectly,
restricted by operation of the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and governmental
regulations applicable to such Consolidated Restricted Subsidiary or its
stockholders or other holders of its equity.”

     2.2 Amendment to Section 17.8. Section
17.8 of the Loan Agreement is hereby amended by deleting
Section 17.8 in its entirety and replacing it with the
following:

     “17.8 Confidentiality. The Agent and the Lenders
each individually (and not jointly or jointly and severally) agree that
material, non-public information regarding Parent and its Subsidiaries,
their operations, assets, and existing and contemplated business plans
shall be treated by Agent and the Lenders in a confidential manner, and
shall not be disclosed by Agent and the Lenders to Persons who are not
parties to this Agreement, except: (a) to attorneys for and other
advisors, accountants, auditors, and consultants to any member of the
Lender Group, (b) to Subsidiaries and
Affiliates of any member of the Lender Group (including the Bank Product
Providers), provided that any such Subsidiary or Affiliate shall have
agreed in writing to receive such information hereunder subject to the
terms of this Section 17.8, (c) as may be required by
statute,

 

 

decision, or judicial or administrative order, rule, or
regulation, (d) as may be agreed to in advance by Parent or its
Subsidiaries or as requested or required by any Governmental Authority
pursuant to any subpoena or other legal process, (e) as to any such
information that is or becomes generally available to the public (other
than as a result of prohibited disclosure by Agent or the Lenders), (f)
in connection with any assignment, prospective assignment, sale,
prospective sale, participation or prospective participations, or pledge
or prospective pledge of any Lender’s interest under this Agreement,
provided that any such assignee, prospective assignee, purchaser,
prospective purchaser, participant, prospective participant, pledgee, or
prospective pledgee shall have agreed in writing to receive such
information hereunder subject to the terms of this Section, and (g) in
connection with any litigation or other adversary proceeding involving
parties hereto which such litigation or adversary proceeding involves
claims related to the rights or duties of such parties under this
Agreement or the other Loan Documents. The provisions of this Section
17.8 shall survive for 2 years after the payment in full of the
Obligations. Anything contained herein or in any other Loan Document to
the contrary notwithstanding, the obligations of confidentiality
contained herein and therein, as they relate to the transactions
contemplated hereby, shall not apply to the federal tax structure or
federal tax treatment of such transactions, and each party hereto (and
any employee, representative, or agent of any party hereto) may disclose
to any and all Persons, without limitation of any kind, the federal tax
structure and federal tax treatment of such transactions (including all
written materials related to such tax structure and tax treatment). The
preceding sentence is intended to cause the transactions contemplated
hereby to not be treated as having been offered under conditions of
confidentiality for purposes of Section 1.6011-4(b)(3) (or any successor
provision) of the Treasury Regulations promulgated under Section 6011 of
the IRC, and shall be construed in a manner consistent with such purpose.
In addition, each party hereto acknowledges that it has no proprietary
or exclusive rights to the tax structure of the transactions contemplated
hereby or any tax matter or tax idea related thereto.”

          2.3 Amended Schedules. The schedules to the Loan
Agreement are hereby replaced in their entirety with the schedules attached
hereto as Exhibit A.

     SECTION 3. REPRESENTATIONS, WARRANTIES AND ACKNOWLEDGMENTS.

          3.1 Representations.

               Parent and Borrower each hereby represents and warrants to Agent and
Lenders that:

               (a) It has the requisite power and authority to execute and deliver this
Amendment and to perform its obligations hereunder and under the Loan Documents
to which it is a party. The execution, delivery, and performance by it of this
Amendment and the
performance by it of each Loan Document to which it is a party (i) have
been duly approved by all necessary action and no other proceedings are
necessary to consummate such transactions; and (ii) are not in contravention of
(A) any law, rule, or regulation, or any order, judgment,

 

 

decree, writ,
injunction, or award of any arbitrator, court or governmental authority binding
on it, (B) the terms of its organizational documents, or (C) any provision of
any contract or undertaking to which it is a party or by which any of its
properties may be bound or affected;

               (b) This Amendment has been duly executed and delivered by Parent and
Borrower. This Amendment and each Loan Document to which Parent or Borrower is
party are the legal, valid and binding obligation of Parent or Borrower (as
applicable), enforceable against such Person in accordance with its terms, and
is in full force and effect except as such validity and enforceability is
limited by the laws of insolvency and bankruptcy, laws affecting creditors’
rights and principles of equity applicable hereto;

               (c) No injunction, writ, restraining order, or other order of any nature
prohibiting, directly or indirectly, the consummation of the transactions
contemplated herein has been issued and remains in force by any Governmental
Authority against Borrower, any Guarantor or any member of the Lender Group;

               (d) No Default or Event of Default has occurred and is continuing on the
date hereof or as of the date of the effectiveness of this Amendment; and

               (e) The representations and warranties in the Loan Agreement and the other
Loan Documents are true and correct in all material respects on and as of the
date hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date).

     SECTION 4. MISCELLANEOUS.

          4.1 Conditions to Effectiveness. The satisfaction of
each of the following shall constitute conditions precedent to the
effectiveness of this Amendment and each and every provision hereof:

               (a)  no Material Adverse Change shall have occurred since September 30,
2003 to the date hereof;

               (b)  The representations and warranties in the Loan Agreement and the other
Loan Documents shall be true and correct in all respects on and as of the date
hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

               (c)  Agent shall have received from Borrower an amendment fee in the amount
of $100,000, from which Agent shall pay to each Lender that executes this
Amendment on or before December 31, 2003 such Lender’s Pro Rata Share of such
amendment fee;

               (d)  Agent shall have received the reaffirmation and consent of each
Guarantor attached hereto as Exhibit B, duly executed and
delivered by each Guarantor;

               (e)  Agent shall have received amendments to the Patent Security
Agreements, the Copyright Security Agreements and Trademark Security Agreements
in the

 

 

form attached hereto as Exhibit C, duly executed and
delivered by Borrower and each Guarantor, as applicable,

               (f) No Default or Event of Default shall have occurred and be continuing
on the date hereof or as of the date of the effectiveness of this Amendment;
and

               (g) No injunction, writ, restraining order, or other order of any nature
prohibiting, directly or indirectly, the consummation of the transactions
contemplated herein shall have been issued and remain in force by any
Governmental Authority against Borrower, any Guarantor, or the Lender Group.

          4.2 Entire Amendment; Effect of Amendment. This
Amendment, and terms and provisions hereof, constitute the entire agreement
among the parties pertaining to the subject matter hereof and supersedes any
and all prior or contemporaneous amendments relating to the subject matter
hereof. Except for the amendments to the Loan Agreement expressly set forth in
Section 2 hereof, the Loan Agreement and other Loan Documents shall remain
unchanged and in full force and effect. The execution, delivery, and
performance of this Amendment shall not operate as a waiver of or, except as
expressly set forth herein, as an amendment of, any right, power, or remedy of
the Lender Group as in effect prior to the date hereof. The amendments and
other agreements set forth herein are limited to the specifics hereof, shall
not apply with respect to any facts or occurrences other than those on which
the same are based, shall not excuse future non-compliance with the Loan
Agreement, and shall not operate as a consent to any further or other matter,
under the Loan Documents. To the extent any terms or provisions of this
Amendment conflict with those of the Loan Agreement or other Loan Documents,
the terms and provisions of this Amendment shall control. This Amendment is a
Loan Document.

          4.3 Counterparts; Telefacsimile. This Amendment may be executed
in any number of counterparts, all of which taken together shall constitute one
and the same instrument and any of the parties hereto may execute this
Amendment by signing any such counterpart. Delivery of an executed counterpart
of this Amendment by telefacsimile shall be equally as effective as delivery of
an original executed counterpart of this Amendment. Any party delivering an
executed counterpart of this Amendment by telefacsimile also shall deliver an
original executed counterpart of this Amendment, but the failure to deliver an
original executed counterpart shall not affect the validity, enforceability,
and binding effect of this Amendment.

          4.4 Fees, Costs and Expenses. Borrower agrees to pay
on demand all reasonable fees, costs and expenses in connection with the
preparation, execution, delivery, administration, modification and amendment of
this Amendment and the other instruments and documents to be delivered
hereunder, including, without limitation, the reasonable fees and out-
of-pocket expenses of counsel for the Agent with respect thereto and with
respect to advising the Agent as to their rights and responsibilities hereunder
and thereunder.

          4.5 Cross-References. References in this Amendment to
any Section are, unless otherwise specified, to such Section of this
Amendment.

 

 

          4.6 Successors and Assigns. This Amendment shall be binding
upon and inure to the benefit of the parties hereto and their respective
successors and assigns.

          4.7 GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT
REGARD TO ANY CONFLICT OF LAWS PRINCIPLES.

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

	 	 	 	 	 
	 	 	GXS CORPORATION,

a Delaware corporation
	 
	 	 	 	 
	
	 	By:	 	/s/ Bruce E. Hunter
	
	 	 	 	

	
	 	Title:	 	Senior Vice President
	 
	 	 	 	 
	 	 	GXS HOLDINGS, INC.,

a Delaware corporation
	 
	 	 	 	 
	
	 	By:	 	/s/ John Soenksen
	
	 	 	 	

	
	 	Name:	 	John Soenksen
	
	 	 	 	

	
	 	Title:	 	Senior Vice President
	

	 	 	 	

[signature page continues]

 

 

	 	 	 	 	 
	 	 	WELLS FARGO FOOTHILL, INC.,
	 	 	a Delaware corporation formerly known as Foothill Capital
Corporation, Inc., as Agent and as a Lender
	 
	 	 	 	 
	

	 	By:	 	/s/ Kurt Duerfeldt
					

	
	 	Name:	 	Kurt Duerfeldt
	

	 	Title:	 	SVP

[signature page continues]

 

 

	 	 	 	 	 
	 	 	CREDIT SUISSE FIRST BOSTON,

CAYMAN ISLANDS BRANCH,

as a Lender
	 
	 	 	 	 
	
	 	By:	 	/s/ Brian O’Daly
					

	
	 	Title:	 	Director
	 
	 	 	 	 
	

	 	By:	 	/s/ Joel Glodowski
					

	
	 	Title:	 	Managing Director

[signature page continues]

 

 

	 	 	 	 	 
	 	 	ABLECO FINANCE LLC,

a Delaware limited liability company, on behalf of itself
and its Affiliate assigns, as Lenders
	 
	 	 	 	 
	

	 	By:	 	/s/ Kevin Genda
					

	

	 	Title:	 	Senior Vice President,
Chief Credit Officer

 

 

SCHEDULES AND
EXHIBITS
TO
FIRST AMENDMENT TO LOAN AND SECURITY AGREEMENT

	 	 	 
	Exhibit A –	 	Amended Schedules to Loan and Security Agreement
	 
	Exhibit B –	 	Reaffirmation and Consent of GXS Holdings, Inc.,
Global eXchange Services, Inc., Global eXchange Services Holdings,
Inc. and GXS International, Inc.
	 
	Exhibit C –	 	Amendment Number One to Patent Security
Agreement, dated December 31, 2003, by and between Global eXchange
Services, Inc. in favor of Wells Fargo Foothill, as agent for the
Lenders
	 
		 	Amendment Number One to Patent Security
Agreement, dated December 31, 2003, by and between GXS Corporation in favor of Wells Fargo Foothill, as agent for the
Lenders
	 
		 	Amendment Number One to Copyright Security
Agreement, dated December 31, 2003, by and between GXS Corporation in favor of Wells Fargo Foothill, as agent for the
Lenders
	 
		 	Amendment Number One to Copyright Security
Agreement, dated December 31, 2003, by and between Global eXchange
Services, Inc. in favor of Wells Fargo Foothill, as agent for the
Lenders
	 
		 	Amendment Number One to Trademark Security
Agreement, dated December 31, 2003, by and between Global eXchange
Services, Inc. in favor of Wells Fargo Foothill, as agent for the
Lendersexv10w30

 

Exhibit 10.30

SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT

          THIS SECOND AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is
entered into as of March 29, 2004, by and among, on the one hand, the lenders
identified on the signature pages hereof (such lenders, together with their
respective successors and assigns, are referred to hereinafter each
individually as a “Lender” and collectively as the “Lenders”), and WELLS FARGO
FOOTHILL, INC., a California corporation, formerly known as Foothill Capital
Corporation as administrative agent for the Lenders (“Agent”), and, on the
other hand, GXS HOLDINGS, INC., a Delaware corporation (“Parent”), and GXS
CORPORATION, a Delaware corporation (“Borrower”), with reference to the
following facts:

          WHEREAS, Borrower, Parent, the Lenders, and Agent are party to that
certain Loan and Security Agreement, dated as of March 21, 2003 (as the same
may be amended, restated, supplemented, or otherwise modified from time to
time, including hereby, the “Loan Agreement”), pursuant to which the Lenders
have made certain loans and financial accommodations to Borrower;

          WHEREAS, Borrower has requested certain amendments to the Loan Agreement;

          WHEREAS, each Lender has agreed, subject to and in accordance with the
terms and conditions set forth herein, to amend the Loan Agreement.

          NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, and upon the terms and conditions
set forth herein, the parties hereby agree as follows:

     SECTION 1. RELATION TO THE LOAN AGREEMENT; DEFINITIONS.

          1.1     Relation
to Loan Agreement. This Amendment constitutes an integral
part of the Loan Agreement and shall be deemed to be a Loan Document for all
purposes. Upon the effectiveness of this Amendment, on and after the date
hereof each reference in the Loan Agreement to “this Agreement,” “hereunder,”
“hereof,” or words of like import referring to the Loan Agreement, and each
reference in the other Loan Documents to “the Loan Agreement,” “thereunder,”
“thereof” or words of like import referring to the Loan Agreement, shall mean
and be a reference to the Loan Agreement as amended hereby.

          1.2     Capitalized
Terms. For all purposes of this Amendment, capitalized
terms used herein without definition shall have the meanings specified in the
Loan Agreement.

     SECTION 2. AMENDMENT TO LOAN AGREEMENT.

          2.1     Amendments
to Section 1.1.  Section 1.1 of the Loan Agreement is
hereby amended by:

          (a)     
Adding the following new definitions in alphabetical order:

 

 

          (a)      Adding the following new definitions in alphabetical order:

               “Permitted 2003 Restructuring Add-Back Amount” means an amount equal
$22,207,000, which amount is equal to the sum of (a) actual restructuring costs
and expenses of Parent and its Subsidiaries arising in connection with work
force reductions which accrue during Parent’s fourth fiscal quarter of 2003
plus (b) actual restructuring costs and expenses of Parent and its Subsidiaries
arising in connection with the consolidation of certain of Parent’s and its
Subsidiaries’ facilities (including their headquarters located in Gaithersburg,
MD) which accrue during Parent’s fourth fiscal quarter of 2003.

               “Permitted 2004/2005 Restructuring Add-Back Amount” means an amount equal
to the actual restructuring costs and expenses of Parent and its Subsidiaries
which accrue during Parent’s 2004 fiscal year or Parent’s 2005 fiscal year in
an aggregate amount not in excess of $20,000,000.”

          (b)      Deleting the definition for “EBITDA” in its entirety and replacing it
with the following:

               “EBITDA” for any period means Consolidated Net Income for such
period, plus, without duplication, the following to the extent deducted
in calculating such Consolidated Net Income:

          (a)     provision for taxes based on income or profits of Borrower and
its Consolidated Restricted Subsidiaries;

          (b)     Consolidated Interest Expense;

          (c)     depreciation expense of Borrower and its Consolidated Restricted
Subsidiaries;

          (d)     amortization expense (including amortization of goodwill and
other intangibles) of Borrower and the Consolidated Restricted
Subsidiaries (excluding amortization expense attributable to a prepaid
cash item that was paid in a prior period);

          (e)     all other non-cash expenses or non-cash losses of Borrower and
the Consolidated Restricted Subsidiaries for such period (including such
expenses or losses in connection with minority interests in joint
ventures and in connection with restructuring activities, whether
incurred before or after the Closing Date), determined on a Consolidated
basis in accordance with GAAP (excluding any such charge that constitutes
an accrual of or a reserve for cash charges for any future period);

          (f)     any non-recurring fees, expenses or charges realized by Borrower
and the Consolidated Restricted Subsidiaries during 2002 and during the
first quarter of 2003 related to (i) operating lease expense for
equipment and facilities leases not being retained by Borrower and the
Consolidated Restricted Subsidiaries following

 

 

the recapitalization; (ii)
adjustments for the portion of managed network fee related to excess
capacity not being retained by Borrower and the Consolidated Restricted
Subsidiaries following the recapitalization; (iii) elimination of General
Electric corporate charges in excess of estimated costs of related services on a
stand-alone basis; and (iv) restructuring and related charges; provided
that the fees, expenses and charges referred to in this clause (f) will
not exceed (v) $9,300,000 in the first quarter of 2002; (w) $9,200,000 in
the second quarter of 2002; (x) $24,100,000 in the third quarter of 2002;
(y) $6,600,000 in the fourth quarter of 2002; and (z) $9,400,000 in the
first quarter of 2003, as well as other expenses incurred after April 1,
2003 which are reimbursed by General Electric Company;

          (g)     all non-cash fees described in clause (7) of Section 7.13;

          (h)     with respect to any measurement period including the Parent’s
fourth fiscal quarter of 2003, the Permitted 2003 Restructuring Add-Back
Amount; and

          (i)     with respect to any measurement period including any portion of
2004 or 2005, the Permitted 2004/2005 Restructuring Add-Back Amount;

and minus all non-cash items increasing Consolidated Net Income of such
Person for such period (excluding any items which represent the reversal
of any accrual of, or cash reserve for, anticipated cash charges in any
prior period).

          Notwithstanding the foregoing, the provision for taxes based on the
income or profits of, and the depreciation and amortization and non-cash
charges of, a Consolidated Restricted Subsidiary will be added to
Consolidated Net Income to compute EBITDA only to the extent (and in the
same proportion) that the net income of such Consolidated Restricted
Subsidiary was included in calculating Consolidated Net Income and only
if a corresponding amount would be permitted at the date of determination
to be dividended or similarly distributed to Borrower by such
Consolidated Restricted Subsidiary without prior governmental approval
(that has not been obtained) or is not, directly or indirectly,
restricted by operation of the terms of its charter and all agreements,
instruments, judgments, decrees, orders, statutes, rules and governmental
regulations applicable to such Consolidated Restricted Subsidiary or its
stockholders or other holders of its equity.”

     (c)     Deleting the definition for “Permitted Restructuring Add-Back
Amount” in its entirety.

               2.2     Amendments to Section 7.1(e). Section 7.1(e) of the Loan Agreement is
hereby amended and restated in its entirety as follows:

               “(e)     (i) Borrower and any Guarantor may become and remain liable with
respect to Indebtedness to Borrower or any Guarantor, (ii) Foreign Subsidiaries
of Parent may become and remain liable with respect to Indebtedness to Parent
and its Domestic

 

 

Subsidiaries in an aggregate outstanding principal amount
(other than such Indebtedness that was incurred between September 27, 2002 and
October 27, 2002, in an aggregate amount of up to $8,750,000) that does not
exceed $5,000,000 at any one time; (iii) (A) Material Foreign Subsidiaries may become and remain liable with respect to
Indebtedness to other Foreign Subsidiaries, (B) Foreign Subsidiaries that are
not Material Foreign Subsidiaries may become liable with respect to
Indebtedness to Material Foreign Subsidiaries in an aggregate principal amount
which shall not exceed $2,000,000 at any time outstanding and (C) Foreign
Subsidiaries that are not Material Foreign Subsidiaries may become liable with
respect to Indebtedness to other Foreign Subsidiaries that are not Material
Foreign Subsidiaries; (iv) after the Closing Date, Borrower or any Guarantor
may become and remain liable with respect to Indebtedness to Borrower’s Foreign
Subsidiaries; and (v) Parent and its Subsidiaries may become and remain liable
with respect to Indebtedness under the promissory notes described on Schedule
7.1(e); provided that all such Indebtedness on account of Intercompany Advances
under this Section 7.1(e) shall be subject to the Intercompany Subordination
Agreement and, if the aggregate amount of such Intercompany Advances exceeds
$2,000,000, shall be evidenced by promissory notes (or other documentation
acceptable to Agent); and provided further that in each case Parent and its
Domestic Subsidiaries shall have granted to Agent for the benefit of Lenders a
first priority Lien on all such Indebtedness and that any such promissory
notes, duly endorsed, shall be delivered to Agent.”

          2.3     Amendments to Section 7.7. Section 7.7 of the Loan Agreement is
hereby amended and restated in its entirety as follows:

          7.7     Prepayments and Amendments.

          (a)      Except in connection with (i) a refinancing resulting in Permitted
Refinancing Indebtedness, (ii) Permitted Excess Cash Flow Payments, or (iii)
other mandatory prepayments with respect to any Indebtedness, prepay, redeem,
defease, purchase, or otherwise acquire any Indebtedness of Parent or its
Subsidiaries, other than the Obligations in accordance with this Agreement;
provided that (i) Borrower, any Guarantor or any Foreign Subsidiary may prepay
Intercompany Advances owed to Borrower or any Guarantor; and (ii) Intercompany
Advances made by Borrower or any Subsidiary of Borrower to any Subsidiary of
Borrower may be converted into equity in any Subsidiary of Borrower to the
extent such Investment is described in clause (a) of the definition of
“Permitted Investments” hereunder, and

          (b)      Except in connection with a refinancing resulting in Permitted
Refinancing Indebtedness, directly or indirectly, amend, modify, alter,
increase, or change any of the terms or conditions of any agreement,
instrument, document, indenture, or other writing evidencing or concerning any
material Indebtedness of Parent or its Subsidiaries for borrowed money;
provided that Intercompany Advances permitted

 

 

hereunder may be cancelled or
prepaid in consideration of the cancellation of outstanding offsetting
Intercompany Advances or intercompany payable or receivable amounts incurred
in the ordinary course of business so long as such cancellation or prepayment
does not result in the payment of cash by Borrower or any Guarantor to any
Foreign Subsidiary.”

          2.4     Amendments to Section 7.22.Section 7.22 of the Loan Agreement is
hereby amended by:

          (a)      Deleting Section 7.22(a) in its entirety and replacing it with the
following:

          “(a) Fail to maintain or achieve:

          (i)      Minimum EBITDA. EBITDA, measured on a fiscal quarter-end basis, of at
least the required amount set forth in the following table for the applicable
period set forth opposite thereto.

	 	 	 
	Applicable Amount
	 	Applicable Period

	$62,500,000

	 	For the 12 month period
ending on March 31, 2004
	$62,500,000

	 	For the 12 month period
ending on June 30, 2004
	$62,500,000

	 	For the 12 month period
ending on September 30, 2004
	$62,500,000

	 	For the 12 month period
ending on December 31, 2004
	$85,000,000

	 	For the 12 month period
ending on March 31, 2005
	$85,000,000

	 	For the 12 month period
ending on June 30, 2005
	$85,000,000

	 	For the 12 month period
ending on September 30, 2005
	$85,000,000

	 	For the 12 month period ending
on December 31, 2005

 

 

	 	 	 
	$95,000,000

	 	For the 12 month period ending
on March 31, 2006 and for each
12 month period ending on the
last day any fiscal quarter of
Borrower thereafter

          (ii)      Maximum Senior Debt to EBITDA Ratio. Senior Debt to EBITDA Ratio of
not more than the maximum amount set forth in the following table for the
applicable period set forth opposite thereto:

	 	 	 
	Applicable Ratio
	 	Applicable Period

	3.30:1.00

	 	For the 12 month period
ending on March 31, 2004
	3.30:1.00

	 	For the 12 month period
ending on June 30, 2004
	3.30:1.00

	 	For the 12 month period
ending on September 30, 2004
	3.30:1.00

	 	For the 12 month period
ending on December 31, 2004
	2.40:1.00

	 	For the 12 month period
ending on March 31, 2005
	2.40:1.00

	 	For the 12 month period
ending on June 30, 2005
	2.40:1.00

	 	For the 12 month period
ending on September 30, 2005
	2.40:1.00

	 	For the 12 month period
ending on December 31, 2005

 

 

	 	 	 
	2.00:1.00

	 	For the 12 month period ending
on March 31, 2006 and for each
12 month period ending on the
last day any fiscal quarter of
Borrower thereafter

          SECTION 3.     REPRESENTATIONS, WARRANTIES AND ACKNOWLEDGMENTS.

               3.1     Representations.

               Parent and Borrower each hereby represents and warrants to Agent and
Lenders that:

               (a)      It has the requisite power and authority to execute and deliver this
Amendment and to perform its obligations hereunder and under the Loan Documents
to which it is a party. The execution, delivery, and performance by it of this
Amendment and the performance by it of each Loan Document to which it is a
party (i) have been duly approved by all necessary action and no other
proceedings are necessary to consummate such transactions; and (ii) are not in
contravention of (A) any law, rule, or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court or governmental
authority binding on it, (B) the terms of its organizational documents, or (C)
any provision of any contract or undertaking to which it is a party or by which
any of its properties may be bound or affected;

               (b)      This Amendment has been duly executed and delivered by Parent and
Borrower. This Amendment and each Loan Document to which Parent or Borrower is
party are the legal, valid and binding obligation of Parent or Borrower (as
applicable), enforceable against such Person in accordance with its terms, and
is in full force and effect except as such validity and enforceability is
limited by the laws of insolvency and bankruptcy, laws affecting creditors’
rights and principles of equity applicable hereto;

               (c)      No injunction, writ, restraining order, or other order of any nature
prohibiting, directly or indirectly, the consummation of the transactions
contemplated herein has been issued and remains in force by any Governmental
Authority against Borrower, any Guarantor or any member of the Lender Group;

               (d)      No Default or Event of Default has occurred and is continuing on the
date hereof or as of the date of the effectiveness of this Amendment; and

               (e)      The representations and warranties in the Loan Agreement and the other
Loan Documents are true and correct in all material respects on and as of the
date hereof, as

 

 

though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date).

          SECTION 4.     MISCELLANEOUS.

          4.1     Conditions to Effectiveness. The satisfaction of each of the
following shall constitute conditions precedent to the effectiveness of this
Amendment and each and every provision hereof:

               (a)      The representations and warranties in the Loan Agreement and the other
Loan Documents shall be true and correct in all respects on and as of the date
hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

               (b)      Agent shall have received the reaffirmation and consent of each
Guarantor attached hereto as Exhibit B, duly executed and delivered by each
Guarantor;

               (c)      No Default or Event of Default shall have occurred and be continuing
on the date hereof or as of the date of the effectiveness of this Amendment;
and

               (d)      No injunction, writ, restraining order, or other order of any nature
prohibiting, directly or indirectly, the consummation of the transactions
contemplated herein shall have been issued and remain in force by any
Governmental Authority against Borrower, any Guarantor, or the Lender Group.

          4.2     Entire Amendment; Effect of Amendment. This Amendment, and terms and
provisions hereof, constitute the entire agreement among the parties pertaining
to the subject matter hereof and supersedes any and all prior or
contemporaneous amendments relating to the subject matter hereof. Except for
the amendments to the Loan Agreement expressly set forth in Section 2 hereof,
the Loan Agreement and other Loan Documents shall remain unchanged and in full
force and effect. The execution, delivery, and performance of this Amendment
shall not operate as a waiver of or, except as expressly set forth herein, as
an amendment of, any right, power, or remedy of the Lender Group as in effect
prior to the date hereof. The amendments and other agreements set forth herein
are limited to the specifics hereof, shall not apply with respect to any facts
or occurrences other than those on which the same are based, shall not excuse
future non-compliance with the Loan Agreement, and shall not operate as a
consent to any further or other matter, under the Loan Documents. To the
extent any terms or provisions of this Amendment conflict with those of the
Loan Agreement or other Loan Documents, the terms and provisions of this
Amendment shall control. This Amendment is a Loan Document.

          4.3     Counterparts; Telefacsimile. This Amendment may be executed in any
number of counterparts, all of which taken together shall constitute one and
the same instrument and any of the parties hereto may execute this Amendment by
signing any such counterpart. Delivery of an executed counterpart of this
Amendment by telefacsimile shall be equally as effective as delivery of an
original executed counterpart of this Amendment. Any party

 

 

delivering an executed counterpart of this Amendment by telefacsimile also shall deliver an
original executed counterpart of this Amendment, but the failure to deliver an
original executed counterpart shall not affect the validity, enforceability,
and binding effect of this Amendment.

          4.4     Fees, Costs and Expenses. Borrower agrees to pay on demand all
reasonable fees, costs and expenses in connection with the preparation,
execution, delivery, administration, modification and amendment of this Amendment and the other
instruments and documents to be delivered hereunder, including, without
limitation, the reasonable fees and out-of-pocket expenses of counsel for the
Agent with respect thereto and with respect to advising the Agent as to their
rights and responsibilities hereunder and thereunder.

          4.5     Cross-References. References in this Amendment to any Section are,
unless otherwise specified, to such Section of this Amendment.

          4.6     Successors and Assigns. This Amendment shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

          4.7     GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY
CONFLICT OF LAWS PRINCIPLES.

 

 

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

	 	 	 	 
	

	 	GXS CORPORATION,

a Delaware corporation

	
	 	 	 
	
	 	 	 
	
	 	By:	/s/ John Soenksen

	
	 	 	

	
	 	Title:	  CFO
	 
	 	 
	

	 	GXS HOLDINGS, INC.,

a Delaware corporation
	
	 	 	 
	
	 	 	 
	
	 	By:	/s/ John Soenksen

	
	 	 	

	
	 	Name:	  John Soenksen
	
	 	Title:	  CFO

[signature page continues]

 

 

	 	 	 	 
	

	 	WELLS FARGO FOOTHILL, INC.,

a Delaware corporation formerly known as Foothill Capital Corporation, Inc., as
Agent and as a Lender
	
	 	 	 
	
	 	 	 
	
	 	By:	/s/ Michael Ackad

	
	 	 	

	
	 	Name:	  Michael Ackad
	
	 	Title:	  Vice President
	 
	 	 
	

	 	ABLECO FINANCE LLC,

A Delaware limited liability company, as Documentation Agent
	
	 	 	 
	
	 	 	 
	
	 	By:	/s/ Kevin Genda

	
	 	 	

	
	 	Name:	  Kevin Genda
	
	 	Title:	  SVP, Chief Credit
Officer
	 
	 	 
	

	 	ABLECO FINANCE LLC,

a Delaware limited liability company, for itself

and its Affiliate assigns, as Lenders
	
	 	 	 
	
	 	 	 
	
	 	By:	/s/ Kevin Genda

	
	 	 	

	
	 	Name:	  Kevin Genda
	
	 	Title:	  SVP, Chief Credit
Officer
	 
	 	 
	

	 	

 

 

EXHIBIT B

REAFFIRMATION AND CONSENT

     All capitalized terms used herein but not otherwise defined herein shall
have the meanings ascribed to them in that certain Second Amendment to Loan and
Security Agreement dated as of March 29, 2004 (the
“Amendment”). The
undersigned each hereby (a) represents and warrants to the Lender Group that
the execution, delivery, and performance of this Reaffirmation and Consent are
within its corporate powers, have been duly authorized by all necessary
corporate action, and are not in contravention of any law, rule, or regulation,
or any order, judgment, decree, writ, injunction, or award of any arbitrator,
court, or governmental authority, or of the terms of its charter or bylaws, or
of any material contract or undertaking to which it is a party or by which any
of its properties may be bound or affected; (b) consents to the execution,
delivery, and performance of the Amendment; (c) acknowledges and reaffirms its
obligations owing to the Lender Group under the Loan Documents to which it is a
party; and (d) agrees that each of the Loan Documents to which it is a party is
and shall remain in full force and effect in accordance with the terms thereof.
Although the undersigned has been informed of the matters set forth herein and
has acknowledged and agreed to same, it understands that the Lender Group has
no obligations to inform it of such matters in the future or to seek its
acknowledgement or agreement to future consents or amendments, and nothing
herein shall create such a duty. Delivery of an executed counterpart of this
Reaffirmation and Consent by telefacsimile shall be equally as effective as
delivery of an original executed counterpart of this Reaffirmation and Consent.
Any party delivering an executed counterpart of this Reaffirmation and Consent
by telefacsimile also shall deliver an original executed counterpart of this
Reaffirmation and Consent but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect
of this Reaffirmation and Consent. This Reaffirmation and Consent shall be
governed by the laws of the State of New York.

[Signature page follows.]

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Reaffirmation and
Consent to be executed by their respective officers thereunto duly authorized,
as of the date first above written.

	 	 	 	 
	

	 	GXS HOLDINGS, INC.,

a Delaware corporation
	
	 	 	 
	
	 	 	 
	
	 	By:	/s/ John Soenksen

	
	 	 	

	
	 	Name:	  John Soenksen
	
	 	Title:	  CFO
	 
	 	 
	

	 	GLOBAL EXCHANGE SERVICES, INC.,

a Delaware corporation
	
	 	 	 
	
	 	 	 
	
	 	By:	/s/ John Soenksen

	
	 	 	

	
	 	Name:	  John Soenksen
	
	 	Title:	  CFO
	 
	 	 
	

	 	GLOBAL EXCHANGE SERVICES HOLDINGS, INC.,

a Delaware corporation
	
	 	 	 
	
	 	 	 
	
	 	By:	/s/ John Soenksen

	
	 	 	

	
	 	Name:	  John Soenksen
	
	 	Title:	  President
	 
	 	 
	

	 	GXS INTERNATIONAL, INC.,

a Delaware corporation
	
	 	 	 
	
	 	 	 
	
	 	By:	/s/ Bruce Hunter

	
	 	 	

	
	 	Name:	  Bruce Hunter
	
	 	Title:	  Director

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