Document:

THIRD AMENDMENT TO THE CREDIT AGREEMENT

 

Exhibit 10.18

THIRD AMENDMENT TO CREDIT AGREEMENT

     THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is made and
entered into this 16th day of December, 2003, by and among THE NEW YORK LAW
PUBLISHING COMPANY, a New York corporation (“Borrower”), AMERICAN LAWYER MEDIA
HOLDINGS, INC., a Delaware corporation (“Holdings”), AMERICAN LAWYER MEDIA,
INC., a Delaware corporation (“Parent”), GENERAL ELECTRIC CAPITAL CORPORATION,
a Delaware corporation (in its individual capacity, “GE Capital”), for itself,
as Lender, and as Agent for Lenders.

Statement of Facts

     A. Borrower, Parent, Holdings, and GE Capital (as Agent and Lender) are
parties to that certain Credit Agreement, dated as of May 1, 2002, as amended
by that certain First Amendment to Credit Agreement, dated as of November 12,
2002, as further amended by that certain Second Amendment to Credit Agreement,
dated as of February 27, 2003 (collectively, the “Credit Agreement”;
capitalized terms used but not defined in this Amendment have the meanings
given in the Credit Agreement, as amended by this Amendment), whereby the
Lenders have made certain extensions of credit to Borrower.

     B. The parties desire to amend the Credit Agreement as set forth in this
Amendment.

Statement of Terms

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

     1. Amendments to Credit Agreement. Subject to the terms and conditions of
this Amendment, the Credit Agreement is hereby amended as follows:

     (a) Section 2.2(f) of the Credit Agreement is hereby deleted in its
entirety.

     (b) Section 6.18 of the Credit Agreement is hereby amended by
deleting the “.” at the end of the first sentence thereof and inserting
the following:

	 	 	 	(excluding all operating lease payments under that certain First
Amendment to and Assignment of Lease, by and between 1140
Associates, c/o Williams Real Estate Co., Inc. and Law.com, Inc.;
provided that the annual net lease payments thereunder shall not
exceed $500,000 in any Fiscal Year).

     (c) Annex A of the Credit Agreement is hereby amended by deleting
the definition of “Real Legal Lease”.

 

 

     (d) Section 2 of that certain First Amendment to Credit Agreement,
dated as of November 12, 2002, by and among the parties hereto, entitled
“Exclusion of Real Legal Lease Obligations” is hereby deleted in its
entirety.

     2. Consent. (a) Subject to the terms and conditions of this Amendment,
notwithstanding Sections 6.1 and 6.4 of the Credit Agreement to the contrary,
each of Agent and Lender hereby consents to Borrower’s acquisition of (the
“Asset Purchase”) all or substantially all of the assets, properties, rights
and interests of RealLegal, LLC used in the business of delivering electronic
court calendar information via a product called MA3000 (the “Acquired Assets”)
pursuant to that certain Asset Purchase Agreement, dated January 1, 2004, by
and between American Lawyer Media Holdings, Inc. and RealLegal, LLC (the “Asset
Purchase Agreement”); provided that (i) the aggregate cash purchase price paid
by Borrower and all other Credit Parties in connection with the Asset Purchase
shall not exceed $2,200,000, and (ii) Borrower complies with each of the
applicable provisions set forth in Section 6.1(b) of the Credit Agreement,
including, without limitation, that the Purchased Asset be acquired by or
contemporaneously transferred to Borrower or any Subsidiary of Borrower.

     (b) Borrower and each of the other Credit Parties (i) agree that Agent
shall be granted a first priority perfected Lien (subject to Permitted
Encumbrances) in all assets acquired in connection with the Asset Purchase, and
(ii) shall execute and deliver such documents and will take such actions as may
be required by Agent in connection therewith.

     3. Representations and Warranties. Borrower and each other Credit Party
hereby represent and warrant to the Agent and the Lenders that (a) this
Amendment has been duly authorized, executed and delivered by Borrower and each
Credit Party signatory thereto, (b) after giving effect to this Amendment, no
Default or Event of Default has occurred and is continuing as of this date, and
(c) all of the representations and warranties made by Borrower or any Credit
Party in the Credit Agreement are true and correct in all material respects on
and as of the date of this Amendment and after giving effect to this Amendment
(except to the extent that any such representations or warranties (i) expressly
referred to a specific prior date, or (ii) have changed based upon events
expressly permitted by the Credit Agreement).

     4. Ratification. Borrower and each other Credit Party hereby ratify and
reaffirm each and every term, covenant and condition set forth in the Credit
Agreement and the other Loan Documents delivered by Borrower and the other
Credit Parties in connection therewith, effective as of the date hereof and
after giving effect to this Amendment.

     5. Waiver by Borrower and Credit Parties. Borrower and each other Credit
Party hereby waive any claim, counterclaim, defense, demand, action or suit of
any kind or nature whatsoever against the Lenders and the Agent arising on or
prior to the date of this Amendment in connection with any of the Loan
Documents or the transactions contemplated thereunder.

     6. Reimbursement of Expenses. Additionally, Borrower and each of the
other Credit Parties hereby agree to reimburse the Agent and the Lenders on
demand for all reasonable costs and expenses (including without limitation
reasonable attorney’s fees) incurred by such parties in connection with the
negotiation, documentation and consummation of this Amendment

-2-

 

and the other documents executed in connection herewith and therewith and the
transactions contemplated hereby and thereby.

     7. Conditions to Effectiveness. This Amendment shall be effective as of
December 31, 2003 (the “Amendment Effective Date”), subject to the Agent’s
receipt of (i) this Amendment, duly executed, completed and delivered by the
Agent, each of the Lenders, and Borrower; (ii) all written notices,
certificates, the Acquisition Pro Forma, the Acquisition Projections, final and
complete copies of the Asset Purchase Agreement and all other documents
executed in connection therewith (provided that Borrower shall deliver executed
copies of such agreements and other documents as soon as practicable, but in no
event later than January 16, 2004), and any other documents required to be
delivered by Borrower pursuant to Section 6.1(b) of the Credit Agreement; and
(iii) payment of all reasonable fees, costs and expenses (including the fees,
costs and expenses of counsel or other advisors) incurred by or on behalf of
Agent in connection with this Amendment and any of the other Loan Documents.

     8. Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK FOR CONTRACTS TO BE
PERFORMED ENTIRELY WITHIN SAID STATE.

     9. Severability of Provisions. Any provision of this Amendment which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof or affecting the validity or
enforceability of such provision in any other jurisdiction. To the extent
permitted by applicable law, Borrower and each of the other Credit Parties
hereby waives any provision of law that renders any provision hereof prohibited
or unenforceable in any respect.

     10. Counterparts. This Amendment may be executed in any number of
counterparts, all of which shall be deemed to constitute but one original and
shall be binding upon all parties, their successors and permitted assigns.

     11. Entire Agreement. The Credit Agreement as amended by this Amendment
embodies the entire agreement between the parties hereto relating to the
subject matter hereof and supersedes all prior agreements, representations and
understandings, if any, relating to the subject matter hereof.

     12. No Other Amendments, Waivers or Consents. Except for the (x) prior
waivers and consents granted pursuant to that certain Post-Closing Letter
Agreement, dated May 1, 2002, between Borrower and Agent, as amended by that
certain Amendment to Post-Closing Letter Agreement, dated May 10, 2002, between
Borrower and Agent, as further amended by that certain Second Amendment to
Post-Closing Letter Agreement, dated May 17, 2002, between Borrower and Agent,
and as further amended by that certain Third Amendment to Post-Closing Letter
Agreement, dated June 11, 2002, between Borrower and Agent and (y) amendments
expressly set forth and referred to in Section 1 above, the Credit Agreement
and the other Loan Documents shall remain unchanged and in full force and
effect. Nothing in this Amendment is intended, or shall be construed, to
constitute a novation or an accord and satisfaction of any of

-3-

 

the Obligations or to modify, affect or impair the perfection or continuity of
the Agent’s and the Lenders’ security interests in, security titles to or other
Liens on any Collateral.

-4-

 

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

	 	 	 	 	 
	 	 	THE NEW YORK LAW PUBLISHING COMPANY
	 
	 	 	 	 
	

	 	By:
	 	/s/ Allison Hoffman
	

	 	 	
 
	

	 	Name:
	 	Allison Hoffman
	

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 	 	AMERICAN LAWYER MEDIA HOLDINGS, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Allison Hoffman
	

	 	 	
 
	

	 	Name:
	 	Allison Hoffman
	

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 	 	AMERICAN LAWYER MEDIA, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Allison Hoffman
	

	 	 	
 
	

	 	Name:
	 	Allison Hoffman
	

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 	 	LAW.COM, INC.
	 
	 	 	 	 
	

	 	By:
	 	/s/ Allison Hoffman
	

	 	 	
 
	

	 	Name:
	 	Allison Hoffman
	

	 	Title:
	 	Vice President
	 
	 	 	 	 
	 	 	GENERAL ELECTRIC CAPITAL
	 	 	CORPORATION, as Agent and Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Raymond N. Shu
	

	 	 	
 
	

	 	Name:
	 	Raymond N. Shu
	

	 	 	 	Title: Duly Authorized Signatory

-5-ASSET PURCHASE AGREEMENT

 

Exhibit 10.19

ASSET PURCHASE AGREEMENT

     This ASSET PURCHASE AGREEMENT (this “Agreement”), dated and effective as
of January 1, 2004 (the “Effective Date”), between The New York Law Publishing
Company, a New York corporation (“Buyer”), and RealLegal, LLC, a Delaware
limited liability company (the “Company”).

RECITALS

     A. The Company is engaged in the business of delivering electronic court
calendar information via a product called MA3000 (the “Business”).

     B. Buyer wishes to purchase from the Company, and the Company wishes to
sell to Buyer, the Assets, subject to the Assumed Liabilities, upon the terms
and subject to the conditions set forth herein.

          Accordingly, the parties hereto agree as follows:

1. Sale and Transfer of the Assets. Buyer will purchase from the Company, and
the Company will sell, assign, transfer, convey and deliver (“Transfer”), free
and clear of all Liens, whether legal or equitable, to Buyer and Buyer will
purchase and accept from the Company on the terms and subject to the conditions
hereinafter set forth, all of the assets, properties, rights and interests in
the Business to the extent existing as of the Effective Date (all of such
assets, properties, rights and interests being hereinafter collectively
referred to as the “Assets”).

2. Liabilities Assumed by Buyer. Buyer will assume, as of the Effective Date,
and will subsequently pay, honor and discharge when due and payable and
otherwise in accordance with their terms, only those liabilities of the Company
that are listed on Schedule 2 (“Assumed Liabilities”).

3. Payment by Buyer. Subject to the representations and warranties of the
Company set forth below, in consideration of the Transfer of the Assets by the
Company to Buyer pursuant to this Agreement, the purchase price for the Assets
will be (i) $2.2 million in cash; and (ii) the assumption by Buyer of the
Assumed Liabilities as of the Effective Date (the “Purchase Price”). The
amount of cash to be delivered to the Company on the Effective Date will be
equal to $1,662,500, representing the Purchase Price less (a) $437,500,
representing a payment owed from the Company to the Buyer’s parent, American
Lawyer Media, Inc. (“ALM”), under that certain Operating Agreement, dated as of
May 1, 2002, between ALM and the Company; and (b) $100,000 that had been
previously provided by ALM to the Company on December 26, 2003.

4. Representations and Warranties of the Company. The Company represents and
warrants to Buyer as of the Effective Date as follows:

 

 

     (a) Corporate Existence and Power. The Company has been duly organized,
and is validly existing and in good standing, under the laws of the State of
Delaware, and has all corporate power and all governmental licenses,
authorizations, Permits, consents and approvals required to carry on their
respective businesses as now conducted. The Company is duly qualified to
conduct business as a foreign corporation and is in good standing in each
jurisdiction where such qualification is necessary.

     (b) Corporate Authorization; Enforceability. The Company has all
requisite power and authority to execute and deliver this Agreement and to
consummate the transactions contemplated hereby and has taken all necessary
corporate or other action to authorize the execution, delivery and performance
of this Agreement. This Agreement has been duly executed and delivered by the
Company and constitutes the valid and binding agreement of the Company,
enforceable against the Company in accordance with its terms, except to the
extent that their enforceability may be subject to applicable bankruptcy,
insolvency, reorganization, moratorium and similar Laws affecting the
enforcement of creditors’ rights generally and by general equitable principles,
and will effectively vest in Buyer good, valid and marketable title to the
Assets pursuant to and as contemplated by this Agreement free and clear of all
encumbrances or Liens whatsoever.

     (c) Governmental Authorization. The execution, delivery and performance
by the Company of this Agreement require no consent, approval, Order,
authorization or action by or in respect of, or filing with, any Governmental
Authority.

     (d) Non-Contravention; Consents. The execution, delivery and performance
by the Company of this Agreement and the consummation of the transactions
contemplated hereby do not (i) violate the certificate of incorporation or
bylaws of the Company, (ii) violate any applicable Law or Order, (iii) require
any filing with or Permit, consent or approval of, or the giving of any notice
to, any Person (including filings, consents or approvals required under any
Permits of the Company or any licenses to which the Company is a party), (iv)
result in a violation or breach of, conflict with, constitute (with or without
due notice or lapse of time or both) a default under, or give rise to any right
of termination, cancellation or acceleration of any right or obligation of the
Company or to a loss of any benefit to which the Company is entitled under, any
Contract, agreement or other instrument binding upon the Company or any
license, franchise, Permit or other similar authorization held by the Company,
or (v) result in the creation or imposition of any Lien on any asset of the
Company.

     (e) Compliance with Laws; Permits. (i) The Company is not in violation of
any applicable Law or Order, except for such violations that have not had and
would not reasonably be expected to have, individually or in the aggregate, a
material adverse effect on the Company.

          (ii) There is no Permit required to be issued and held to carry on the
Business of the Company as currently conducted.

2

 

     (f) Contracts. (i) Schedule 4(f) sets forth a complete and accurate list
of all Contracts of any nature whatsoever to be assigned by the Company and
assumed by the Buyer.

          (ii) Each Contract disclosed on Schedule 4(f) or required to be disclosed
pursuant to this Section is a valid and binding agreement of the Company and is
in full force and effect, except to the extent that its enforceability may be
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
similar laws affecting the enforcement of creditors’ rights generally and by
general equitable principles, and neither the Company nor, to the knowledge of
the Company, any other party thereto is in default or breach in any material
respect under the terms of any such Contract. To the knowledge of the Company,
there is no event, occurrence, condition or act (including the consummation of
the transaction contemplated hereby) which, with the giving of notice or the
passage of time, or the happening of any other event or condition, would
reasonably be expected to become a material default or event of default
thereunder.

5. Representations and Warranties of Buyer. Buyer represents and warrants to
the Company as of the Effective Date as follows:

     (a) Corporate Existence and Power. Buyer is a corporation duly
incorporated, validly existing and in good standing under the laws of the State
of Delaware.

     (b) Corporate Authorization; Enforceability. Buyer has all requisite
power and authority to execute and deliver this Agreement and to consummate the
transactions contemplated hereby and has taken all necessary corporate or other
action to authorize the execution, delivery and performance of this Agreement.
This Agreement has been duly executed and delivered by Buyer and constitutes
the valid and binding agreement of Buyer, enforceable against Buyer in
accordance with its terms, except to the extent that their enforceability may
be subject to applicable bankruptcy, insolvency, reorganization, moratorium and
similar Laws affecting the enforcement of creditors’ rights generally and by
general equitable principles.

     (c) Governmental Authorization. The execution, delivery and performance
by Buyer of this Agreement require no consent, approval, Order, authorization
or action by or in respect of, or filing with, any Governmental Authority.

     (d) Non-Contravention; Consents. The execution, delivery and performance
by Buyer of this Agreement, and the consummation of the transactions
contemplated hereby do not (i) violate the certificate of incorporation or
bylaws of Buyer or (ii) violate any applicable Law or Order.

6. Definitions. As used in this Agreement:

     (a) “Contracts” means any contracts (whether written or oral),
commitments, leases of personal property, purchase orders, contracts to
purchase raw materials, contracts for services and supplies, contracts to
supply or sell products and all of the other agreements (whether written or
oral);

3

 

     (b) “Governmental Authority” means any domestic or foreign governmental or
regulatory authority;

     (c) “Law” means any federal, state or local statute, law, rule,
regulation, ordinance, code, Permit, license, policy or rule of common law;

     (d) “Lien” means, with respect to any property or asset, any mortgage,
lien, pledge, charge, security interest, encumbrance or other adverse claim of
any kind in respect of such property or asset. For the purposes of this
Agreement, a Person will be deemed to own, subject to a Lien, any property or
asset which it has acquired or holds subject to the interest of a vendor or
lessor under any conditional sale agreement, capital lease or other title
retention agreement relating to such property or asset;

     (e) “Order” means any judgment, injunction, judicial or administrative
order or decree;

     (f) “Permit” means any government or regulatory license, authorization,
permit, franchise, consent or approval; and

     (g) “Person” means an individual, corporation, partnership, limited
liability company, association, trust or other entity or organization,
including a government or political subdivision or an agency or instrumentality
thereof.

7. Miscellaneous.

     (a) Counterparts. This Agreement may be signed in any number of
counterparts, each of which will be deemed an original but all of which
together shall constitute one and the same instrument.

     (b) Amendments and Waivers. (i) Any provision of this Agreement may be
amended or waived if, but only if, such amendment or waiver is in writing and
is signed, in the case of an amendment, by each party to this Agreement, or in
the case of a waiver, by the party against whom the waiver is to be effective.

          (ii) No failure or delay by any party in exercising any right, power or
privilege hereunder will operate as a waiver thereof nor will any single or
partial exercise thereof preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies
herein provided will be cumulative and not exclusive of any rights or remedies
provided by Law.

     (c) Successors and Assigns. The provisions of this Agreement will be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns; provided that no party may assign, delegate
or otherwise transfer (including by operation of Law) any of its rights or
obligations under this Agreement without the consent of each other party
hereto. Notwithstanding the foregoing, Buyer may assign its rights and
delegate its obligations under the Agreement to an affiliate of Buyer without
the consent of any other party hereto. Any assignment in violation of this
subsection will be void ab initio.

4

 

     (d) No Third Party Beneficiaries. This Agreement is for the sole benefit
of the parties hereto and their permitted successors and assigns and nothing
herein expressed or implied will give or be construed to give to any Person,
other than the parties hereto and such permitted successors and assigns any
legal or equitable rights hereunder.

     (e) Governing Law. This Agreement will be governed by, and construed in
accordance with, the internal substantive law of the State of New York.

     (f) Jurisdiction. Except as otherwise expressly provided in this
Agreement, any suit, action or proceeding seeking to enforce any provision of,
or based on any matter arising out of or in connection with, this Agreement or
the transactions contemplated hereby may be brought in any court of competent
jurisdiction in the Borough of Manhattan, New York and the United States
District Court for the Southern District of New York (assuming that such court
otherwise has jurisdiction) and each of the parties hereby consents to the
non-exclusive jurisdiction of such courts (and of the appropriate appellate
courts therefrom) in any such suit, action or proceeding and irrevocably
waives, to the fullest extent permitted by Law, any objection which it may now
or hereafter have to the laying of the venue of any such suit, action or
proceeding in any such court or that any such suit, action or proceeding which
is brought in any such court has been brought in an inconvenient forum.
Process in any such suit, action or proceeding may be served on any party
anywhere in the world, whether within or without the jurisdiction of any such
court.

     (g) WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY
WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, CLAIM OR
COUNTERCLAIM, WHETHER IN CONTRACT OR TORT, AT LAW OR IN EQUITY, ARISING OUT OF
OR IN ANY WAY RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

     (h) Headings. The headings in this Agreement are for convenience of
reference only and will not control or affect the meaning or construction of
any provisions hereof.

     (i) Entire Agreement. This Agreement (including the Schedules) constitute
the entire agreement among the parties with respect to the subject matter of
this Agreement. This Agreement (including the Schedules hereto) supersede all
prior agreements and understandings, both oral and written, between the parties
with respect to the subject matter hereof of this Agreement.

     (j) Severability. If any provision of this Agreement or the application
of any such provision to any Person or circumstance is held invalid, illegal or
unenforceable in any respect by a court of competent jurisdiction, the
remainder of the provisions of this Agreement (or the application of such
provision in other jurisdictions or to Persons or circumstances other than
those to which it was held invalid, illegal or unenforceable) will in no way be
affected, impaired or invalidated, and to the extent permitted by applicable
Law, any such provision will be restricted in applicability or reformed to the
minimum

5

 

extent required for such provision to be enforceable. This provision will
be interpreted and enforced to give effect to the original written intent of
the parties prior to the determination of such invalidity or unenforceability.

[The remainder of the page left intentionally blank.]

6

 

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

	 	 	 	 	 
	 	 	THE NEW YORK LAW PUBLISHING COMPANY
	 
	 	 	 	 
	

	 	By:
	 	      /s/ Allison Hoffman
	

	 	 	 	

	

	 	 	 	   Name: Allison Hoffman
	

	 	 	 	   Title: Vice President
	 
	 	 	 	 
	 	 	REALLEGAL, LLC
	 
	 	 	 	 
	

	 	By:
	 	      /s/ William J. Feid
	

	 	 	 	

	

	 	 	 	   Name: William J. Feid
	

	 	 	 	   Title: President and CEO

7

 

SCHEDULE 2

ASSUMED LIABILITIES

The only liability assumed is a vacation liability owed to the Buyer’s
employees in a total amount equal to approximately $8,315, which translates
into the following accrued vacation days being allowed to roll over into 2004:

	 	 	 	 	 	 	 	 	 
	 	 	Days
	 	 	 	 
	BARRETT, JOHNNY R
	 	 	5	 	 	$	576.92	 
	BRISCOE, JOHN D.
	 	 	5	 	 	$	1,746.15	 
	DIAZ, JOSE L
	 	 	4	 	 	$	390.75	 
	GREENSPAN, RICHARD E.
	 	 	5	 	 	$	1,407.96	 
	MEENTS, MATTHEW S.
	 	 	2	 	 	$	419.38	 
	MILLER, ELIZABETH M.
	 	 	1	 	 	$	272.90	 
	REID, JANICE
	 	 	5	 	 	$	730.77	 
	REISNER, IVY B
	 	 	5	 	 	$	961.54	 
	STEIN, ELI J
	 	 	3	 	 	$	1,120.67	 
	SPANN, KEVERN C.
	 	 	1	 	 	$	189.00	 
	TORRES, RAUL JR
	 	 	4	 	 	$	498.32	 

8

 

SCHEDULE 4(f)

CONTRACTS

Agreement for Receipt of Computerized Records and Information between Law.com,
Inc. and the New York State Unified Court System, dated 1/10/01

Worldcom Agreement regarding T-1 lines and phone lines

See Excel spreadsheet with list of customer contracts

9

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