Document:

EXHIBIT 10-m

 

WAIVER AND SECOND AMENDMENT TO CREDIT
AGREEMENT

 

This Waiver
and Second Amendment to Credit Agreement (this “Amendment”) is dated as of
April 7, 2003, and is by and among General Electric Capital Corporation, a
Delaware corporation, individually as a Lender and as Agent and Security
Trustee for the Lenders, Analysts International Corporation, a Minnesota
corporation (“Borrower”), and Medical Concepts Staffing, Inc., a Minnesota
corporation (“Medical Staffing”).

 

W I T N E S S E T H:

 

WHEREAS, pursuant
to a certain Credit Agreement dated as of April 11, 2002, by and among General
Electric Capital Corporation, a Delaware corporation, individually as a Lender
and as Agent and Security Trustee for the Lenders, the other Credit Parties
signatory from time to time thereto, and Borrower (as amended or otherwise
modified from time to time, the “Credit Agreement”; capitalized terms used
herein and not otherwise defined herein shall have the meaning ascribed to such
terms in the Credit Agreement), Agent and Lenders agreed, subject to the terms
and provisions thereof, to provide certain loans and other financial
accommodations to Borrower;

 

WHEREAS,
Borrower has recently advised Agent and Lenders that Medical Staffing is a
wholly-owned Subsidiary of Borrower engaged in the business of temporary
staffing of medical personnel;

 

WHEREAS, the
failure of Borrower to disclose the existence of Medical Staffing as a
Subsidiary of Borrower pursuant to Schedule 3.8 to the Credit Agreement has
caused a breach of Section 3.8 of the Credit Agreement and an Event of Default
pursuant to Section 8.1(f) of the Credit Agreement (“Disclosure Event of
Default”);

 

WHEREAS,
Borrower has recently advised Agent and Lenders of a payment in the aggregate
amount of $755,000 to Sarah Spiess (“Spiess”), in full satisfaction of
all deferred compensation obligations of the Credit Parties to Spiess;

 

WHEREAS such
payment caused a breach of Section 6.22 of the Credit Agreement and an Event of
Default pursuant to Section 8.1(b) of the Credit Agreement (together with the
Disclosure Event of Default, the “Specified Events of Default”); and

 

WHEREAS,
Borrower has requested that Agent and Lenders (i) waive the Specified Events of
Default and (ii) agree to amend the Credit Agreement in certain respects, as
set forth below.

 

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

 

1.        Joinder and Waiver.  Agent, Lenders, Borrower and Medical
Staffing hereby agree that from and following the date hereof Medical Staffing
shall at all times be a Credit Party for purposes of the Credit Agreement and
all other Loan Documents.  Subject to
the satisfaction of the conditions precedent set forth in Section 6 of this
Amendment, and in reliance on the representations and warranties set forth in
Section 8 of this Amendment, Agent and Lenders hereby waive the Specified
Events of Default.  The foregoing is a
limited waiver, and nothing contained herein shall be deemed to constitute a
wavier of any other Event of Default or any other breach of the Credit
Agreement or any other Loan Document that may heretofore or hereafter occur or
have occurred and be continuing or to modify any provision of the Credit
Agreement.

 

2.        Amendments to Credit Agreement.  Subject to the satisfaction of the
conditions precedent set forth in Section 6 of this Amendment, and in reliance
on the representations and warranties set forth in Section 8 of this Amendment,
the Credit Agreement is hereby amended as follows:

 

(a)       Section
1.6 of the Credit Agreement is hereby amended to provide that, subject to all
Reserve limitations, exclusionary criteria and other limitations set forth
therein on the same terms as are applicable to the Accounts of Borrower, the
Accounts of Medical Staffing may qualify as Eligible Accounts; provided,
however, that without limitation of any of the limitations and
exclusionary criteria set forth in Section 1.6 of the Credit Agreement, no Accounts
of Medical Staffing shall qualify as Eligible Accounts until (i) the aggregate
outstanding amount of such Accounts exceeds $250,000 as of any date of
measurement and (ii) Agent shall have completed a field exam of the Accounts of
Medical Staffing, and shall be satisfied, in its sole discretion, with the
results thereof.  Exhibit 4.1(b) to the
Credit Agreement (Borrowing Base Certificate) shall be deemed amended to give
effect to the provisions of this clause (a).

 

1

 

(b)      Clause
(a) of Section 6.3 of the Credit Agreement is hereby amended by amending and
restating clause (H) set forth therein in its entirety, as follows:

 

“(H)    the aggregate balance of
all such intercompany loans owing to Borrower shall not exceed (x) $400,000 at
any time, with respect to intercompany loans and/or advances made by Borrower
to all Persons described in this clause (vii) other than Medical Staffing and
(y) $1,000,000 at any time, with respect to intercompany loans and/or advances
made by Borrower to Medical Staffing.”

 

(c)       Clause
(a) of Section 6.5 of the Credit Agreement is hereby amended and restated in
its entirety as follows:

 

“(a) make any
changes in any of its business objectives, purposes or operations that could in
any way adversely affect the repayment of the Loans or any of the other
Obligations or could reasonably be expected to have or result in a Material
Adverse Effect, provided  that Medical Staffing shall be permitted
to extend its business to include the provision of temporary staffing of
medical personnel,”

 

(d)      Section
6.20 of the Credit Agreement is hereby amended and restated in its entirety as
follows:

 

“None of the
Credit Parties other than Borrower shall engage in any trade or business, or
own any assets (other than Stock of their Subsidiaries) or incur any
Indebtedness or Guaranteed Indebtedness (other than the Obligations), provided
that Medical Staffing shall be permitted to engage in its relevant
business and own assets.”

 

3.        Annex A to the Credit Agreement is
hereby amended by inserting the following definition in appropriate
alphabetical order:

 

“Medical
Staffing” means Medical Concepts Staffing, Inc., a Minnesota corporation
and a wholly-owned Subsidiary of Borrower.

 

4.        The definition of
“Borrowing Base”, set forth in Annex A to the Credit Agreement, is hereby
amended by inserting the words “and Medical Staffing’s” after each reference to
“Borrower’s” set forth therein.

 

5.        Collection Reserve.  Borrower and Medical Staffing hereby
acknowledge and agree that, without otherwise limiting Agent’s right to
establish and adjust Reserves, the Collection Reserve (as identified on the
Borrowing Base Certificate) is $3,200,000 as of the date hereof, as the same
may be adjusted from time to time in Agent’s reasonable credit judgment.

 

6.        Conditions Precedent.  The effectiveness of the waivers and
amendments contemplated hereby is subject to the prior receipt by Agent of each
of the following documents and agreements, each in form and substance
acceptable to Agent in its sole discretion:

 

(a)       A Guaranty executed by
Medical Staffing;

 

(b)      A Pledge Agreement
executed by Borrower with respect to all of the outstanding Stock of Medical
Staffing, together with the share certificates evidencing all such Stock and a
stock power executed in blank;

 

(c)       a
Security Agreement executed by Medical Staffing in favor of Agent;

 

(d)      a
Trademark Security Agreement executed by Medical Staffing in favor of Agent;

 

(e)       an
Intercompany Note executed by Medical Staffing in favor of Borrower,
accompanied by an allonge executed in blank by Borrower;

 

(f)       a
Secretary’s Certificate of Medical Staffing, with respect to Articles of
Incorporation, By-Laws, authorizing resolutions and incumbency  signatures; and

 

(g)      an
opinion or opinions of counsel to Medical Staffing with respect to the
documents, agreements and transactions described herein.

 

7.        References; Effectiveness.  Agent and Borrower hereby agree that all
references to the Credit Agreement which are contained in any of the other Loan
Documents shall refer to the Credit Agreement as amended by this Amendment.

 

2

 

8.        Representations and Warranties.  To induce Agent to enter into this
Amendment, each of Borrower and Medical Staffing hereby jointly and severally
represents and warrants to Agent that:

 

(a)       The
execution, delivery and performance by Borrower and Medical Staffing of this
Amendment and each other agreement and document contemplated hereby are within
its corporate power, have been duly authorized by all necessary corporate
action, have received all necessary governmental approval (if any shall be
required), and do not and will not contravene or conflict with any provision of
law applicable to Borrower or Medical Staffing, the articles of incorporation
and by-laws of Borrower or Medical Staffing, any order, judgment or decree of
any court or governmental agency, or any agreement, instrument or document
binding upon Borrower or Medical Staffing or any of their respective
properties;

 

(b)      Each
of the Credit Agreement, the other Loan Documents, as amended by this
Amendment, and each other agreement and document contemplated hereby is the
legal, valid and binding obligation of Borrower and/or Medical Staffing (as
applicable), enforceable against Borrower and/or Medical Staffing (as
applicable) in accordance with their terms, except as such enforceability may
be limited by applicable bankruptcy, reorganization, moratorium, fraudulent
transfer or other similar laws affecting creditors’ rights generally or by
principles governing the availability of equitable remedies;

 

(c)       After
giving effect to the amendments set forth herein, the representations and
warranties contained in the Credit Agreement and the other Loan Documents are
true and accurate as of the date hereof with the same force and effect as if
such had been made on and as of the date hereof;

 

(d)      After
giving effect to the amendments set forth herein, Borrower has performed all of
its obligations under the Credit Agreement and the Loan Documents to be
performed by it on or before the date hereof and as of the date hereof,
Borrower is in compliance with all applicable terms and provisions of the
Credit Agreement and each of the Loan Documents to be observed and performed by
it and, except to the extent otherwise waived by the provisions hereof, no
Event of Default or other event which, upon notice or lapse of time or both,
would constitute an Event of Default, has occurred.

 

9.        Counterparts.  This Amendment may be executed in any number
of counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Amendment.

 

10.      Continued Effectiveness.  Except as amended hereby, the Credit
Agreement and each of the Loan Documents shall continue in full force and
effect according to its terms.

 

11.      Costs and Expenses. Borrower hereby
agrees that all expenses incurred by Agent in connection with the preparation,
negotiation and closing of the transactions contemplated hereby, including,
without limitation, reasonable attorneys’ fees and expenses, shall be part of
the Obligations.

 

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

 

 

	
   

  	
   

  	
  ANALYSTS
  INTERNATIONAL CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  MEDICAL
  CONCEPTS STAFFING, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION,

  as Agent, Security Trustee and Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  	
  Its

  	
   

  	
   

  

 

3EXHIBIT 10-n

 

THIRD AMENDMENT TO
CREDIT AGREEMENT

 

This Amendment
dated as of April 28, 2003 (this “Amendment”) to the Credit Agreement dated as
of April 11, 2002, by and among General Electric Capital Corporation, a
Delaware corporation, for the benefit of itself and as agent (“Agent”) for
certain other lenders (“Lenders”), the other Credit Parties signatory from time
to time thereto, and Analysts International Corporation, a Minnesota
corporation (“Borrower”) (as amended or otherwise modified from time to time,
the “Credit Agreement”; capitalized terms used herein and not otherwise defined
herein shall have the meaning ascribed to such terms in the Credit Agreement).

 

W I T N E S S E T H:

 

WHEREAS,
pursuant to the Credit Agreement, Agent and Lenders agreed to provide certain
loans and other financial accommodations to Borrower; and

 

WHEREAS,
subject to the terms and conditions set forth herein, Borrower, Agent, for the
benefit of itself and Lenders, and the Credit Parties have agreed to amend the
Credit Agreement in certain respects, as set forth below.

 

NOW,
THEREFORE, in consideration of the premises and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
Agent, for itself and on behalf of Lenders, Borrower and the Credit Parties
hereby agree as follows:

 

1.        Amendment to Credit Agreement.  Subject to the satisfaction of the
conditions precedent set forth in Section 2 of this Amendment, and in reliance
on the representations and warranties set forth in Section 4 of this Amendment,
the Credit Agreement is amended as follows:

 

(a)       Section 1.10 of the Credit Agreement is
amended and restated in its entirety to read as follows:

 

Borrower shall
make each payment under this Agreement not later than 2:00 p.m. (New York time)
on the day when due in immediately available funds in Dollars to the Collection
Account.  For purposes of computing
interest as of any date, all payments shall be deemed received on the First
Business Day following the Business Day on which immediately available funds
therefore are received in the Collection Account prior to 2:00 p.m. New
York time, provided that funds that are received in the Collection Account when
no Loans are outstanding shall incur no interest.  Payments received after 2:00 p.m. New York time on any
Business Day or on a day that is not a Business Day shall be deemed to have
been received on the following Business Day.

 

(b)      Subsection (d) of Section
6.7 of the Credit Agreement is amended by (1) deleting the amount “$1,500,000”
and substituting in lieu thereof the amount “$3,000,000” and (2) deleting the
amount “$5,000,000” and substituting in lieu thereof the amount “$10,000,000”.

 

2.        Conditions Precedent.  The effectiveness of this Amendment is
subject to the satisfaction of the conditions precedent that Agent shall have
received:

 

(a)           (a) No
Default or Event of Default shall have occurred and be continuing, both before
and after giving effect to the provisions of this Amendment; and

 

(b)           (b)
Borrower shall pay to Agent for the account of Agent an amendment fee equal to
One Thousand Dollars ($1,000).

 

3.        References; Effectiveness.  Agent and Borrower hereby agree that all
references to the Credit Agreement which are contained in any of the other Loan
Documents shall refer to the Credit Agreement as amended by this Amendment.

 

4.        Representations and Warranties.  To induce Agent to enter into this
Amendment, Borrower hereby represents and warrants to Agent that:

 

(a)           (a) The
execution, delivery and performance by Borrower of this Amendment are within
its corporate power, have been duly authorized by all necessary corporate
action, have received all necessary governmental approval (if any shall be
required), and do not and will not contravene or conflict with any provision of
law applicable to Borrower, the articles of 

 

1

 

incorporation and by-laws of
Borrower, any order, judgment or decree of any court or governmental agency, or
any agreement, instrument or document binding upon Borrower or any of its
property;

 

(b)           (b) Each
of the Credit Agreement and the other Loan Documents, as amended by this
Amendment, are the legal, valid and binding obligation of Borrower, enforceable
against Borrower in accordance with their terms, except as such enforceability
may be limited by applicable bankruptcy, reorganization, moratorium, fraudulent
transfer or other similar laws affecting creditors’ rights generally or by
principles governing the availability of equitable remedies;

 

(c)           (c)
After giving effect to the amendments set forth herein, the representations and
warranties contained in the Credit Agreement and the other Loan Documents are
true and accurate as of the date hereof with the same force and effect as if
such had been made on and as of the date hereof; and

 

(d)           (d)
Borrower has performed all of its obligations under the Credit Agreement and
the Loan Documents to be performed by it on or before the date hereof and as of
the date hereof, Borrower is in compliance with all applicable terms and provisions
of the Credit Agreement and each of the Loan Documents to be observed and
performed by it and no Event of Default or other event which, upon notice or
lapse of time or both, would constitute an Event of Default, has occurred.

 

5.        Counterparts.  This Amendment may be executed in any number
of counterparts and by the different parties on separate counterparts, and each
such counterpart shall be deemed to be an original, but all such counterparts
shall together constitute but one and the same Amendment.

 

6.        Continued Effectiveness.  Except as amended hereby, the Credit
Agreement and each of the Loan Documents shall continue in full force and
effect according to its terms.

 

7.        Costs and Expenses. Borrower
hereby agrees that all expenses incurred by Agent in connection with the
preparation, negotiation and closing of the transactions contemplated hereby,
including, without limitation, reasonable attorneys’ fees and expenses, shall
be part of the Obligations.

 

 

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

 

 

	
   

  	
  ANALYSTS
  INTERNATIONAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GENERAL
  ELECTRIC CAPITAL CORPORATION,

  as Agent, Security Trustee and Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
  Its

  	
   

  	
   

  

 

2

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