Document:

Exhibit 10.1

 

 

CLAYTON HOLDINGS, INC.

 

LIMITED WAIVER AND FOURTH AMENDMENT TO CREDIT
AGREEMENT

 

This
LIMITED WAIVER AND FOURTH AMENDMENT TO CREDIT
AGREEMENT (this “Amendment”) is
dated as of February 21, 2008 and entered into by and among CLAYTON HOLDINGS, INC. (“Company”),
THE FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE
PAGES HEREOF, and BNP PARIBAS, as
administrative agent for the Lenders (in such capacity, “Administrative Agent”), and solely for purposes of Section 5
hereof, the Subsidiary Guarantors. 
Reference is made to the Credit Agreement dated as of December 8,
2005, as amended by the First Amendment to Credit Agreement dated as of January 11,
2006, the Second Amendment to Credit Agreement dated as of May 2, 2006,
and the Third Amendment to Credit Agreement dated as of March 15, 2007 (as
so amended, the “Credit Agreement”), among Company,
the Lenders party thereto and Administrative Agent.  Capitalized terms used herein without
definition shall have the same meanings as set forth in the Credit Agreement,
as amended hereby.

 

RECITALS

 

                                                WHEREAS, Company and
Requisite Lenders desire to amend the Credit Agreement to make certain
modifications and waivers as set forth below.

 

NOW, THEREFORE, in
consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto hereby agree as follows:

 

SECTION 1.                                                    AMENDMENTS TO
CREDIT AGREEMENT

 

A.                                    Amendments to
Subsection 1.1 — Certain Defined Terms.

 

(i)                                     Subsection 1.1
of the Credit Agreement is hereby amended by adding thereto the following
definitions, which shall be inserted in proper alphabetical order:

 

“Cash
Availability” means, at any date of determination, an amount equal
to the sum of (a) the aggregate amount of Cash held by the Company, minus
(b) appropriate reserves for earn-out payment obligations in connection
with the acquisition of Clayton Euro, plus (c) the Revolving Loan
Commitment Amount, minus (d) the Total Utilization of Revolving
Loan Commitments; provided, however, that in the event that as of
such date of determination, the conditions to borrowing set forth in subsection
4.2 (other than (x) subsection 4.2B(i) only with respect to the
bring-down of the representations and warranties in the first sentence in
subsection 5.4, and (y) clause (i) of subsection 4.2B(v)) cannot be
satisfied, then “Cash Availability” shall be limited to the sum of the
aggregate amount of Cash held by the Company minus appropriate reserves
for earn-out payment obligations in connection with the acquisition of Clayton
Euro.

 

“Clayton UK”
means Clayton Holdings UK Limited (Company # 6176147).

 

“Clayton Euro”
means Clayton Euro Risk Limited (Company # 03345660).

 

“Covenant
Waiver Period” means the period beginning on the Fourth Amendment
Effective Date and ending on (and including) December 31, 2008.

 

 

 

 

 

“Fourth
Amendment” means that certain Limited Waiver and Fourth Amendment to
Credit Agreement, dated as of February 21, 2008, by and among Company, the
Subsidiary Guarantors, the Lenders party thereto and Administrative Agent.

 

“Fourth
Amendment Effective Date” means the date the Fourth Amendment became
effective in accordance with its terms.

 

“Cash
Availability Covenant Termination Date” means the date that
financial statements together with a related Compliance Certificate are delivered
to Administrative Agent pursuant to subsections 6.1(iii) and (v) for
the Fiscal Quarter ending March 31, 2009.

 

“Pounds”
or “£” means the lawful currency of the
United Kingdom.

 

“Supplemental
Compliance Certificate” means a certificate substantially in the
form of Exhibit XIII annexed hereto.

 

(ii)                                  The definition
of “Asset Sale” set forth in subsection 1.1
of the Credit Agreement is hereby amended by deleting clause (d) of the
parenthetical contained therein in its entirety and substituting the following
therefor:

 

“(d) any such other assets if the
aggregate fair market value of such assets sold does not exceed $1,000,000
since the Fourth Amendment Effective Date”

 

B.                                    Amendment to
Subsection 2.1A(ii) — Revolving Loans.  The second sentence of subsection 2.1A(ii) of
the Credit Agreement is hereby amended by deleting such sentence in its
entirety and substituting the following therefor:

 

“As of the Fourth Amendment Effective Date,
the amount of each Revolving Lender’s Revolving Loan Commitment is set forth opposite
its name on Schedule 2.1 annexed hereto and the aggregate amount of such
Revolving Loan Commitments is $10,000,000; provided that the amount of
the Revolving Loan Commitment of each Revolving Lender shall be adjusted to
give effect to any assignment of such Revolving Loan Commitment pursuant to
subsection 10.1B and shall be reduced from time to time by the amount of any
reductions thereto made pursuant to subsection 2.4 and increased from time to
time by the amount of any increases thereto made pursuant to subsection
2.1(iv).”

 

The
notice requirements for voluntary reductions of Revolving Loan Commitments set
forth in subsection 2.4B(ii) of the Credit Agreement are hereby waived
with respect to the reductions effectuated by this Amendment.

 

C.                                    Amendments to
Subsection 2.2A — Rate of Interest.  Subsection 2.2A of the Credit Agreement is
hereby amended by deleting clause (i) thereof in its entirety and
substituting the following therefor:

 

“(i) Subject to the provisions of
subsections 2.2E, 2.2G and 2.7, Base Rate Loans shall bear interest through
maturity at the sum of the Base Rate plus 2.00% per annum, and LIBOR Loans
shall bear interest through maturity at the sum of Adjusted LIBOR plus 3.00%
per annum.”

 

 

2

 

 

D.                                    Amendment to
Subsection 2.4B(iii) — Mandatory Prepayments.  Subsection 2.4B(iii)(a) of the Credit
Agreement is hereby amended by deleting such subsection in its entirety and
substituting the following therefor:

 

“(a)                            Prepayments and
Reductions From Net Asset Sale Proceeds.  No later than five (5) Business Days
following the receipt by Company or any of its Subsidiaries of any Net Asset
Sale Proceeds in respect of any Asset Sale, Company shall prepay the Loans
and/or the Revolving Loan Commitment Amount shall be permanently reduced in an
aggregate amount equal to such Net Asset Sale Proceeds.”

 

E.                                      Amendment to
Subsection 2.4B — Prepayments and Unscheduled Reductions in Revolving Loan
Commitment Amount.  Subsection
2.4B of the Credit Agreement is hereby amended by adding the following new
clauses (v) and (vi) to the end thereof:

 

“(v)                           Repayment of
Term Loans.  After the
Fourth Amendment Effective Date and on or prior to March 31, 2009, the
Company shall make one or more prepayments of Term Loans pursuant to subsection
2.4B in an aggregate principal amount equal to not less than $5,000,000.

 

(vi)                              Repayment of
Revolving Loans and Swing Line Loans.  On March 31, 2009 the Company shall
reduce the outstanding balance of Revolving Loans and Swing Line Loans to
zero.  The Company may subsequently
reborrow under the Revolving Loan Commitments subject to the conditions set
forth in the Credit Agreement.”

 

F.                                      Amendment to
Subsection 6.1 — Financial Statements and Other Reports.  Subsection 6.1 of the Credit Agreement is
hereby amended as follows:

 

(i)                                     Subsection 6.1(v) of
the Credit Agreement is hereby amended by deleting such subsection in its
entirety and substituting the following therefor:

 

“(v)                           Compliance
Certificates:  (a) together
with each delivery of financial statements pursuant to subdivisions (iii) and
(iv) above, an Officer’s Certificate of Company stating that the signers
have reviewed the terms of this Agreement and have made, or caused to be made
under their supervision, a review in reasonable detail of the transactions and
condition of Company and its Subsidiaries during the accounting period covered
by such financial statements and that such review has not disclosed the
existence at the end of such accounting period, and that the signers do not
have knowledge of the existence as at the date of such Officer’s Certificate,
of any condition or event that constitutes an Event of Default or Potential
Event of Default, or, if any such condition or event existed or exists,
specifying the nature and period of existence thereof and what action Company
has taken, is taking and proposes to take with respect thereto; (b) together
with each delivery of financial statements pursuant to subdivisions (iii) and
(iv) above, a Compliance Certificate demonstrating in reasonable detail
compliance at the end of the applicable accounting periods with the
restrictions contained in subsection 7.6A, 7.6B and 7.6C; and (c) within
10 Business Days after the end of each calendar month ending during the period
beginning on the Fourth Amendment Date and ending on the Cash Availability
Covenant Termination Date, a Supplemental Compliance Certificate demonstrating
in reasonable detail compliance at the end of such month with the restrictions
contained in subsection 7.6D;”

 

 

3

 

(ii)                                  Subsection 6.1(vi) of
the Credit Agreement is hereby amended by deleting each reference to “ (ii), (iii) or
(xii)” or “(ii), (iv) or (xii)” contained therein and substituting “(iii),
(iv) or (xiii)” therefor.

 

(iii)                               Subsection 6.1(vii) of
the Credit Agreement is hereby amended by deleting the reference to “subdivision
(iii)” contained therein and substituting “subdivision (iv)” therefor.

 

(iv)                              Subsection
6.1(xiii) of the Credit Agreement is hereby amended by inserting the following
at the end thereof:

 

“on or prior to December 31,
2008, Company shall have delivered to Administrative Agent (a) a financial
plan based upon reasonable assumptions setting forth a plan for compliance with
the covenants set forth in subsections 2.4B(v) and (vi) and that
takes into account earn-out payment obligations in connection with the
acquisition of Clayton Euro, and related currency risk, and (b) an Officer’s
Certificate signed by the chief financial officer of the Company certifying
that such financial plan is based upon reasonable assumptions;”

 

G.                                    Amendments to
Subsection 7.1 — Indebtedness.  Subsection 7.1 of the Credit Agreement is
hereby amended as follows:

 

(i)                                     Subsection 7.1(vi) of
the Credit Agreement is hereby amended by adding “and the aggregate principal
amount of such Indebtedness does not exceed $1,000,000 at any time outstanding”
to the end of such subsection.

 

(ii)                                  Subsection 7.1(vii) of
the Credit Agreement is hereby amended by deleting such subsection in its entirety
and substituting “[Intentionally Omitted.]” therefor.

 

(iii)                               Subsection 7.1(viii) of
the Credit Agreement is hereby amended by deleting the reference to “$5,000,000”
contained therein and substituting “$1,000,000” therefor.

 

H.                                    Amendments to
Subsection 7.2A — Prohibition on Liens.  Subsection 7.2A of the Credit Agreement is
hereby amended as follows:

 

(i)                                     Subsection 7.2A(iii) of
the Credit Agreement is hereby amended by deleting the reference to “$10,000,000”
contained therein and substituting “$1,000,000” therefor..

 

(ii)                                  Subsection 7.2A(vii) of
the Credit Agreement is hereby amended by deleting the reference to “$5,000,000”
contained therein and substituting “$1,000,000” therefor.

 

I.                                         Amendments to
Subsection 7.3 — Investments; Acquisitions.  Subsection 7.3 of the Credit Agreement is
hereby amended as follows:

 

(i)                                     Subsection 7.3(vi) of
the Credit Agreement is hereby amended by deleting such subsection in its
entirety and substituting the following therefor:

 

“(vi)                        Company may (a) continue
to hold any Investments in Clayton UK and Clayton Euro made prior to the Fourth
Amendment Effective Date in compliance with the Credit Agreement as in effect
immediately prior to the Fourth Amendment Effective Date, and (b) make
additional Investments in Clayton UK and Clayton Euro from and after the Fourth
Amendment Effective Date for 

 

 

4

 

 

purposes of satisfying earn-out obligations
in connection with the acquisition of Clayton Euro in an aggregate amount not
to exceed £1,250,000; provided that the aggregate amount of all
Investments made pursuant to clauses (a) and (b) shall not to exceed
$10,000,000.”

 

(ii)                                  Subsection 7.3(ix) of
the Credit Agreement is hereby amended by deleting the reference to “$25,000,000”
contained therein and substituting “$4,000,000” therefor.

 

(iii)                               Subsection
7.3(xi) of the Credit Agreement is hereby amended by deleting the reference to “$5,000,000”
contained therein and substituting “$1,000,000” therefor.

 

J.                                      Amendments to
Subsection 7.4 — Contingent Obligations.  Subsection 7.4(vii) of the Credit
Agreement is hereby amended by deleting the reference to “$5,000,000” contained
therein and substituting “$1,000,000” therefor.

 

K.                                    Amendment to
Subsection 7.6 — Financial Covenants.  Subsection 7.6 of the Credit Agreement is
hereby amended by adding the following new subsection 7.6D to the end thereof:

 

“D.                             Minimum
Cash Availability.  During the
period from the Fourth Amendment Effective Date through the Cash Availability
Covenant Termination Date, Company shall not permit Cash Availability as at any
date to be less than $6,000,000; provided that at Company’s election,
the foregoing covenant will cease to apply for a period not to exceed five
Business Days, which election shall not be made more than twice during the
period from the Fourth Amendment Effective Date through the Cash Availability
Covenant Termination Date and which five-Business-Day periods shall be
separated by not less than one Business Day. 
Notwithstanding anything to the contrary in the foregoing, the failure
of Company to comply with the covenant set forth in this subsection 7.6D (the “Minimum Cash Availability Covenant”) shall not constitute an
Event of Default if such failure results solely from the Company’s inability to
make the representations and warranties set forth in the first sentence of
subsection 5.6 and (i) the Company provides Administrative Agent with
written notice of such failure within five Business Days after such failure, (ii) concurrently
with such notice, Company delivers a plan based on reasonable assumptions for
re-establishing full compliance with the Minimum Cash Availability Covenant
within 30 days after such failure initially occurred, and (iii) the
Company is in compliance with the Minimum Cash Availability Covenant within 30
days after such failure initially occurred.”

 

L.                                     Amendment to
Subsection 7.7 — Restriction on Fundamental Changes; Asset Sales.  Subsection 7.7(v) of the Credit
Agreement is hereby amended by deleting the reference to “of assets having an
aggregate, cumulative fair market value not in excess of $5,000,000 per Fiscal
Year” contained therein.

 

M.                                  Amendment to
Subsection 7.8 — Consolidated Capital Expenditures.  Subsection 7.8 of the Credit Agreement is
hereby amended by deleting the reference to “$20,000,000” contained therein and
substituting “$8,000,000” therefor.

 

N.                                    Substitution of
Schedule 2.1 — Lenders’ Commitments and Pro Rata Shares.  Schedule 2.1 to the Credit Agreement is
hereby amended by replacing such schedule with Schedule 2.1 to this
Amendment.

 

 

5

 

 

O.                                   Substitution of
Schedule 5.1 — Subsidiaries of Company.  Schedule 5.1 to the Credit Agreement is
hereby amended by replacing such schedule with Schedule 5.1 to this
Amendment

 

P.                                     Addition of Exhibit XIII
— Form of Supplemental Compliance Certificate.  The Exhibits to the Credit Agreement are
hereby amended by adding a new Exhibit XIII in the form of Exhibit XIII
to this Amendment.

 

SECTION 2.                                                    AMENDMENTS TO
SECURITY AGREEMENT SCHEDULES

 

The Schedules to the
Security Agreement are hereby amended and restated in their entirety as set
forth on Exhibit A attached hereto.

 

SECTION 3.                                                    LIMITED
WAIVERS; POST-AMENDMENT COVENANTS

 

A.                                    Waiver of
Condition to Borrowing.

 

(i)                                     Subject to the
terms and conditions set forth herein and in reliance on the representations
and warranties of Company herein contained, the undersigned Lenders,
constituting Requisite Lenders, hereby waive for the period commencing on the
Fourth Amendment Effective Date through the Cash Availability Covenant
Termination Date the conditions to borrowings under the Revolving Credit
Facility set forth in (x) subsection 4.2B(i) of the Credit Agreement
only with respect to the bring-down of the representations and warranties in
the first sentence in subsection 5.4 of the Credit Agreement, and (y) clause
(i) of subsection 4.2B(v) of the Credit Agreement.

 

(ii)                                  Without
limiting the generality of the provisions of subsection 10.6 of the Credit
Agreement, the waiver set forth above shall be limited precisely as written and
relate solely to the condition to borrowings under the Revolving Credit
Facility set forth in subsections 4.2B(i) and 4.2B(v) of the Credit
Agreement in the manner and to the extent described above, and nothing in this Section 3A
shall be deemed to (a) constitute a waiver of the condition to borrowings
under the Revolving Credit Facility set forth in subsections 4.2B(i) and
4.2B(v) of the Credit Agreement in any other instance or a waiver of any
other term, provision or condition of the Credit Agreement, the Amended
Agreement (as defined below) or any other instrument or agreement referred to
therein, or (b) prejudice any right or remedy that any Agent may now have
(except to the extent such right or remedy was based upon existing defaults
that will not exist after giving effect to this Amendment) or may have in the
future under or in connection with the Credit Agreement, the Amended Agreement
or any other instrument or agreement referred to therein.

 

B.                                    Waiver of
Certain Financial Covenants.

 

(i)                                     Subject to the
terms and conditions set forth herein and in reliance on the representations
and warranties of Company herein contained, the undersigned Lenders,
constituting Requisite Lenders, hereby waive for the Covenant Waiver Period any
Potential Events of Default or Events of Default arising from the failure of
the Company to comply with subsections 7.6A, 7.6B and 7.6C of the Credit
Agreement.

 

(ii)                                  Without
limiting the generality of the provisions of subsection 10.6 of the Credit
Agreement, the waiver set forth above shall be limited precisely as written and
relate solely to the noncompliance by Company with the provisions of
subsections 7.6A, 7.6B and 7.6C of the Credit Agreement in the manner and to
the extent described above, and nothing in this Section 3B shall be
deemed to (a) constitute a waiver of compliance by Company with respect to
subsection 7.6 of the Credit Agreement in any other instance or a waiver of any
other term, provision or condition of the Credit 

 

 

6

 

 

Agreement, the Amended Agreement (as defined below) or any other
instrument or agreement referred to therein, or (b) prejudice any right or
remedy that any Agent may now have (except to the extent such right or remedy
was based upon existing defaults that will not exist after giving effect to
this Amendment) or may have in the future under or in connection with the
Credit Agreement, the Amended Agreement or any other instrument or agreement
referred to therein.

 

C.                                    Waiver of
Certain Affirmative Covenants.

 

(i)                                     Subject to the
terms and conditions set forth herein and in reliance on the representations
and warranties of Company herein contained, the undersigned Lenders,
constituting Requisite Lenders, hereby waive any Potential Events of Default or
Events of Default arising from the failure of Company to comply with subsection
6.8B of the Credit Agreement with respect to Clayton UK; provided that
the foregoing waiver shall automatically cease to be effective and shall
terminate upon Company’s failure to comply with the covenants set forth in Section 3D
hereof within the time period specified therein.

 

(ii)                                  Without
limiting the generality of the provisions of subsection 10.6 of the Credit
Agreement, the waiver set forth above shall be limited precisely as written and
relate solely to the noncompliance by Company with the provisions of subsection
6.8B of the Credit Agreement in the manner and to the extent described above,
and nothing in this Section 3C shall be deemed to (a) constitute
a waiver of compliance by Company with respect to subsection 6.8B of the Credit
Agreement in any other instance or a waiver of any other term, provision or
condition of the Credit Agreement, the Amended Agreement (as defined below) or
any other instrument or agreement referred to therein, or (b) prejudice
any right or remedy that any Agent may now have (except to the extent such
right or remedy was based upon existing defaults that will not exist after
giving effect to this Amendment) or may have in the future under or in
connection with the Credit Agreement, the Amended Agreement or any other
instrument or agreement referred to therein.

 

D.                                    Post-Amendment
Covenants.

 

The
Company covenants and agrees that it shall promptly, but in any event not later
than 60 days after the Fourth Amendment Effective Date (or such later date as
Administrative Agent may agree in its sole discretion),  execute and deliver such documents and
instruments and take all actions required by subsection 6.8B of the Credit
Agreement relating to the formation of Clayton UK.

 

SECTION 4.                                                    REPRESENTATIONS
AND WARRANTIES

 

In order to induce Lenders
and Administrative Agent to enter into this Amendment, Company represents and
warrants to each Lender and Administrative Agent that the following statements
are true, correct and complete as of the Fourth Amendment Effective Date (as
defined below):

 

A.                                    Corporate Power
and Authority.  Each of
Company and each Subsidiary Guarantor has all requisite corporate power and
authority to enter into this Amendment and to carry out the transactions
contemplated by, and perform its obligations under, the Credit Agreement as
amended by this Amendment (the “Amended Agreement”).

 

B.                                    Due
Authorization.  The
execution and delivery of this Amendment and the performance of the Amended
Agreement have been duly authorized by all necessary corporate action on the
part of Company and each Subsidiary Guarantor.

 

 

7

 

C.                                    No Conflict.  The execution and delivery by Company and
each Subsidiary Guarantor of this Amendment and the performance by Company of
the Amended Agreement do not and will not (i) violate any provision of any
law or any governmental rule or regulation applicable to Company or
Subsidiary Guarantors, the Organizational Documents of Company or Subsidiary
Guarantors or any order, judgment or decree of any court or other agency of
government binding on Company or Subsidiary Guarantors, (ii) conflict
with, result in a breach of or constitute (with due notice or lapse of time or
both) a default under any Contractual Obligation of Company or Subsidiary
Guarantors, (iii) result in or require the creation or imposition of any
Lien upon any of the properties or assets of Company or Subsidiary Guarantors
(other than Liens created under any of the Loan Documents in favor of
Administrative Agent on behalf of Lenders and other Liens permitted under the
Amended Agreement), or (iv) require any approval of stockholders or any
approval or consent of any Person under any Contractual Obligation of Company
or Subsidiary Guarantors which have not been obtained, except for with respect
to the foregoing clauses (i) , (ii) and (iv) above, such
violations, conflicts, breaches, defaults or failures to obtain approvals or
consents which could not reasonably be expected to have a Material Adverse
Effect.

 

D.                                    Governmental
Consents.  The
execution and delivery by each of Company and each Subsidiary Guarantor of this
Amendment and the performance by Company of the Amended Agreement do not and
will not require any registration with, consent or approval of, or notice to,
or other action to, with or by, any Governmental Authority.

 

E.                                      Binding
Obligation.  This
Amendment and the Amended Agreement have been duly executed and delivered by
each of Company and each Subsidiary Guarantor and are the legally valid and
binding obligations of each of Company and each Subsidiary Guarantor,
enforceable against Company and each Subsidiary Guarantor in accordance with
their respective terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors’
rights generally or by equitable principles relating to enforceability.

 

F.                                      Absence of
Default.  No event has occurred and is
continuing or will result from the consummation of the transactions
contemplated by this Amendment that would constitute an Event of Default or a
Potential Event of Default.

 

SECTION 5.                                                    ACKNOWLEDGEMENT
AND CONSENT

 

A.                                    Each of Company
and each Subsidiary Guarantor hereby acknowledges and agrees that the Credit
Agreement, the Security Agreement and each other Collateral Document (each, a “Credit Support Document”) to which it is a party or
otherwise bound shall continue in full force and effect and that all of its
obligations thereunder shall be valid and enforceable and shall not be impaired
or limited by the execution or effectiveness of this Amendment (except, in the
case of the Company, to the extent of the express modifications and waivers
provided in this Amendment).  Each of
Company and each Subsidiary Guarantor represents and warrants that all
representations and warranties contained in the Amended Agreement (other than
the representations and warranties contained in the first sentence of
subsection 5.4 of the Amended Agreement) and the Credit Support Documents to
which it is a party or otherwise bound are true, correct and complete in all
material respects on and as of the Fourth Amendment Effective Date (as defined
below) to the same extent as though made on and as of such date, except to the
extent such representations and warranties specifically relate to an earlier
date, in which case they were true, correct and complete in all material
respects on and as of such earlier date.

 

B.            Each Subsidiary Guarantor acknowledges
and agrees that (i) notwithstanding the conditions to effectiveness set
forth in this Amendment, such Subsidiary Guarantor is not required by the terms
of the Credit Agreement or any other Loan Document to consent to the amendments
to the Credit Agreement effected pursuant to this Amendment and (ii) nothing
in the Credit Agreement, this 

 

 

8

 

Amendment or any other Loan Document shall be deemed to require the
consent of such Subsidiary Guarantor to any future amendments to the Credit
Agreement.

 

SECTION 6.                                                    CONDITIONS TO
EFFECTIVENESS

 

This
Amendment shall become effective and binding upon the parties hereto only upon
the satisfaction of the following conditions precedent (the date such
conditions are satisfied is hereafter referred to as the “Fourth
Amendment Effective Date”):

 

A.                                    Amendment.
Administrative Agent shall have executed this Amendment and received a
counterpart of this Amendment that bears the signature of Company, Requisite
Lenders (calculated as of the Fourth Amendment Effective Date), Administrative
Agent and each of the Subsidiary Guarantors.

 

B.                                    Minimum
Liquidity.  Cash
Availability shall be not less than $6,000,000.

 

C.                                    Prepayment of
Term Loans.  Company
shall have prepaid Term Loans in an amount sufficient to result in the
aggregate outstanding principal amount of Term Loans not exceeding $24,000,000,
and the Administrative Agent and Required Lenders hereby waive the notice
requirements only for such prepayment set forth in subsection 2.4B(i)(a) of
the Credit Agreement.

 

D.                                    Completion of Proceedings.  All corporate and other proceedings taken or
to be taken in connection with the transactions contemplated hereby and all
documents incidental thereto shall be reasonably satisfactory in form and
substance to Administrative Agent and such counsel, and Administrative Agent
and such counsel shall have received all such counterpart originals or
certified copies of such documents as Administrative Agent may reasonably
request.

 

E.                                      No Default.  No Potential
Event of Default or Event of Default shall have occurred and be continuing.

 

SECTION 7.                                                    MISCELLANEOUS

 

A.                                    Reference to
and Effect on the Credit Agreement and the Other Loan Documents.

 

(i)                                     On and after
the effective date of this Amendment, each reference in the Credit Agreement to
“this Agreement”, “hereunder”, “hereof”, “herein” or words of like import
referring to the Credit Agreement and each reference in the other Loan
Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like
import referring to the Credit Agreement shall mean and be a reference to the
Credit Agreement as amended hereby.

 

(ii)                                  Except as
specifically amended by this Amendment, the Credit Agreement and the other Loan
Documents shall remain in full force and effect and are hereby ratified and
confirmed.

 

(iii)                               The execution,
delivery and performance of this Amendment shall not, except as expressly
provided herein, constitute a waiver of any provision of, or operate as a
waiver of any right, power or remedy of Administrative Agent or any Lender
under the Credit Agreement or any of the other Loan Documents.

 

B.                                    Fees and
Expenses  Company
acknowledges that all reasonable costs, fees and expenses as described in
subsection 10.2 of the Credit Agreement incurred by Administrative Agent and
its counsel with respect to this Amendment and the documents and transactions
contemplated hereby shall be for the account of the Company.

 

 

9

 

 

C.                                    Headings.  Section and subsection headings in this
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Amendment for any other purpose or be given any
substantive effect.

 

D.                                    Applicable Law.  THIS AMENDMENT AND THE RIGHTS
AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE
CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF
NEW YORK (INCLUDING WITHOUT LIMITATION SECTION 5-1401 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS
PRINCIPLES.

 

E.                                      Counterparts;
Effectiveness.  This
Amendment may be executed in any number of counterparts and by different
parties hereto in separate counterparts, each of which when so executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument; signature pages may be
detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the
same document.

 

[Remainder
of this page intentionally left blank]

 

 

10

 

 

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

 

COMPANY:

 

	
   

  	
  CLAYTON HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick C. Herbst

  
	
   

  	
  Name:

  	
  Frederick C. Herbst

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  
	
   

  	
   

  	
   

  

ADMINISTRATIVE AGENT:

 

	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Charles Romano

  
	
   

  	
  Name:

  	
  Charles Romano

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Ola Anderson

  
	
   

  	
  Name:

  	
  Ola
  Anderson

  
	
   

  	
  Title:

  	
  Director

  
	
   

  	
   

  	
   

  

 

 

 

11

 

 

GUARANTORS:

 

	
   

  	
  CLAYTON SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick C. Herbst

  
	
   

  	
  Name:

  	
  Frederick C. Herbst

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

	
   

  	
  FIRST MADISON SERVICES, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick C. Herbst

  
	
   

  	
  Name:

  	
  Frederick C. Herbst

  
	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

	
   

  	
  QUANTUM SERVICING CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Steven Cohen

  
	
   

  	
  Name:

  	
  Steve Cohen

  
	
   

  	
  Title:

  	
  Vice President and Secretary

  
	
   

  	
   

  	
   

  

 

	
   

  	
  CLAYTON FIXED INCOME SERVICES INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick C. Herbst

  
	
   

  	
  Name:

  	
  Frederick C. Herbst

  
	
   

  	
  Title:

  	
  President

  

 

	
   

  	
  CLAYTON IPS CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Frederick C. Herbst

  
	
   

  	
  Name:

  	
  Frederick C. Herbst

  
	
   

  	
  Title:

  	
  Chief Executive Officer

  

 

 

12Exhibit 10.29

 

Summary
Description of Named Executive Officer

Oral At-Will Employment Agreement

 

With the exception of
Daniel M. Bradbury, our President and Chief Executive Officer, with whom we
have a written employment agreement, we maintain oral at-will employment
relationships with each of our other currently-serving named executive
officers: Alain D. Baron, M.D., Mark G. Foletta, Orville G. Kolterman, M.D. and
Marcea B. Lloyd.  Each of these executive
officers receives our normal and customary employment benefits, generally on
the same terms as all of our employees. 
The benefits include the right to (i) participate in our 401(k) Plan
and our Employee Stock Purchase Plan, (ii) receive 10% of eligible
compensation in the form of Amylin common stock under our Employee Stock
Ownership Plan and (iii) receive stock option grants under our Equity
Incentive Plan and cash bonuses under our cash bonus plan.  The cash bonus plan is called the Executive
Cash Bonus Plan when it applies to those employees with the title of executive
director or above.  Each of these
executive officers is also eligible, along with all of our employees holding
the title of vice-president and above, to participate in our Deferred
Compensation Plan and our Officer Change in Control Severance Benefit
Plan.  The Change in Control Plan
provides each participant with certain benefits in the event such employee
ceases employment with Amylin without cause or under certain specified
circumstances and within 90 days prior to, or within 13 months following
specified change of control transactions.  In such event, (i) the
president and chief executive officer would receive salary continuation for 36
months and three times his annual target bonus; (ii) executive officers
would receive salary continuation for 24 months and two times their annual
target bonus, and (iii) non-executive officers would receive 18 months
salary continuation and an amount equal to their annual target bonus.  Under the Change in Control Plan, officers
would also receive 18 months of COBRA payment reimbursement.  We also have
customary indemnification agreements with our officers, including these
executive officers. In addition, the Compensation and Human Resources Committee
of our Board of Directors reviews the salaries of our executive officers from
time to time.  Mr. Bradbury’s annual salary is currently set at
$575,000. Dr. Baron’s and Dr. Kolterman’s annual salary are each
currently set at $400,000, Ms. Lloyd’s annual salary is currently set at
$375,000, and Mr. Foletta’s annual salary is currently set at $365,000.

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