Document:

Exhibit
4.4

 

GUARANTY AGREEMENT

 

This GUARANTY
AGREEMENT dated as of April 14, 2003 is made by WYNNCHURCH CAPITAL PARTNERS,
L.P., a Delaware limited partnership (“Wynnchurch USA”, and WYNNCHURCH
CAPITAL PARTNERS CANADA, L.P., an Alberta, Canada limited partnership (“Wynchurch
Canada”, and collectively with Wynnchurch USA, the “Guarantors”),
jointly and severally, to FLEET CAPITAL CORPORATION (the “Lender”).

 

W I T N E S S E T
H

 

WHEREAS, Alternative
Resources Corporation (“ARC”), ARC Service, Inc., ARC Solutions, Inc.,
ARC Midholding, Inc., Writers Inc., ARC Technology Management LLC, ARC Staffing
Management LLC, and ARC Shared Services LLC (collectively, the “Borrowers”)
and the Lender are parties to a Credit and Security Agreement dated as of
January 31, 2002 (as amended, supplemented or otherwise modified from time to
time, including, without limitation, by the Fifth Amendment described below)
the “Credit Agreement”), pursuant to which the Lender has agreed,
subject to the terms and conditions set forth therein, to make loans and other
extensions of credit to the Borrowers;

 

WHEREAS, as a result of a dispute that has arisen
between the Borrowers and Bluecurrent, Inc. (“Bluecurrent”), regarding
accounts receivable owing from Bluecurrent to the Borrowers, the entire amount
of accounts receivable owing from Bluecurrent to the Borrowers no longer
satisfy the criteria of “Eligible Accounts” as set forth in the Credit
Agreement;

 

WHEREAS, after giving effect to the exclusion of the
accounts owing from Bluecurrent, the Revolving Credit Exposure exceeds the
Borrowing Base, and, as a result of the Borrowers’ failure to cause the
Revolving Credit Exposure to be less than or equal to the Borrowing Base, an
Event of Default is currently continuing under the Credit Agreement (the “Overadvance
Event of Default”);

 

WHEREAS, as a result of the adverse effect of the
dispute between the Borrowers and Bluecurrent on the Borrower’s financial
results, the Borrowers have advised the Lender that they have failed to comply
with the certain financial covenants set forth in the Credit Agreement for the
fiscal period ending December 31, 2002 (the “December 31, 2002 Events of
Default”) and that they anticipate that they will be unable to satisfy the
financial covenants contained in the Credit Agreement for the fiscal quarter
ending March 31, 2003;

 

WHEREAS, the Borrowers
have requested that the Lender enter into a Fifth Amendment to Credit Agreement
and Waiver dated as of the date thereof (the “Fifth Amendment”) whereby
the Lender would agree, subject to the terms and conditions contained therein,
to waive the Overadvance Event of Default and the December 31, 2002 Events of
Default, and to amend the Credit Agreement revise certain financial covenants
relating to the fiscal quarter ending March 31, 2003 and thereafter, and to
provide for the Lender to continue to make overadvances for the account of the
Borrower until December 31, 2003, or such later date as the Lender may agree in
writing, of up to $2,000,000 in the aggregate outstanding at any time, and to
reset certain financial covenants; and

 

 

WHEREAS, each of the Guarantors is the holder of 15%
Secured Subordinated Convertible Promissory Notes (the “ARC Subordinated
Notes”) issued by ARC (the parent company of the other Borrowers) and will
benefit from the continued liquidity of the Borrowers resulting from the
Lender’s overadvances for the account of the Borrowers;

 

NOW, THEREFORE, in order to induce the Lender to waive
the Overadvance Event of Default and the December 31, 2002 Events of Default
and to agree to amend the financial covenants contained in the Credit Agreement
and to continue to make Loans and overadvances to the Borrowers as provided in
the Credit Agreement, and for other good and valuable consideration, receipt of
which is hereby acknowledged by the Guarantors, the Guarantors hereby agree as
follows:

 

1.                                       Defined
Terms.  Terms used herein as defined
terms and not otherwise defined herein shall have the meanings ascribed thereto
in the Credit Agreement.  As used
herein, the following terms have the following meanings:

 

(a)                                  “Bluecurrent
Receivables” means accounts receivable owing from Bluecurrent to the
Borrowers.

 

(b)                                 “Capital
Commitments” means, in respect of any Guarantor, the commitment of each
Investor in such Guarantor to fund such Guarantor in the amount set forth in,
and pursuant to the terms of, such Investor’s subscription agreement and such
Guarantor’s partnership agreement, as such documents may be amended from time
to time.

 

(c)                                  “Capital
Call” means, in respect of any Guarantor, a call upon the Investors in such
Guarantor to fund all or a portion of the Capital Commitments of such Investors
to such Guarantor.

 

(d)                                 “General
Partner” means, in respect of Wynnchurch USA, Wynnchurch Partners, L.P.,
and in respect of Wynnchurch Canada, Wynnchurch Partners Canada, L.P.

 

(e)                                  
“Investor” means, in respect of any Guarantor, the General Partner of
such Guarantor and each of the other constituent partners of such Guarantor.

 

(f)                                    “Uncalled
Capital Commitments” means, in respect of any Guarantor, at any time, the
remaining obligations of the Investors in such Guarantor to pay their Capital
Commitments at such time.

 

2.                                       Guaranteed
Obligation.

 

(a)                                  Subject
to Section 2(b) below, the Guarantors do hereby absolutely, irrevocably and
unconditionally guarantee, jointly and severally, the due and punctual payment
of the Overadvance Amount (the “Guaranteed Obligation”).

 

(b)                                 Notwithstanding
any provision of this Agreement to the contrary, the obligations of the
Guarantors under this Agreement shall not exceed the sum of (i) $2,000,000 (the
“Initial Guaranty Amount”), plus (ii) in the event any payment to
be made by the Guarantors hereunder is not made when due, interest at the
Post-Default Rate accruing on such unpaid

 

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amount from the date such
amount became due hereunder, plus (iii) the reasonable expenses
(including fees and expenses of counsel), if any, incurred by the Lender in
enforcement of and collection under this Agreement.  The parties hereto agree that the Initial Guaranty Amount shall
be reduced from time to time, upon the payment in cash by Bluecurrent to the
Borrowers of amounts due in respect of the Bluecurrent Receivables, on a dollar
for dollar basis in an amount equal to such cash payments; provided that
no such reduction in the Initial Guaranty Amount shall become effective until
three days after receipt by the Lender of such cash payment for application to
the outstanding Loans.

 

(c)                                  The
Borrowers confirm that they have directed and will continue to direct
Bluecurrent to make all payments in respect of the Bluecurrent Receivables
directly to a Lockbox or Controlled Account maintained by the Borrowers at the
Cash Management Bank.  The Borrowers
agree that any Credit Party receiving any monies, checks, notes, drafts or
other payments relating to the Bluecurrent Receivables will hold the same in
trust for, and as the sole and exclusive property of, the Lender and
immediately upon receipt of thereof, shall remit the same to a Controlled
Account maintained by the Borrowers at the Cash Management Bank.

 

(d)                                 In
the event of payment by the Guarantors to the Lender of the Guaranteed Amount
as provided above, the Lender shall consent to the payment by the Borrowers to
Wynnchurch Capital, Ltd., and the acceptance by the Wynnchurch Capital, Ltd.,
from the Borrowers, of a fee in the aggregate amount of $250,000 (the “Guaranty
Fee”); provided that such fee shall be deferred and shall not be paid,
except as permitted under the terms of the Credit Agreement and that certain
Subordination and Intercreditor Agreement by and among the Guarantors, the
Lender and the Borrowers, dated as of January 31, 2002, as amended by that
certain amendment of even date herewith (the “Intercreditor Agreement”).

 

3.                                       Demand
by Lender.

 

(a)                                  Upon
failure by the Borrowers punctually to pay or perform the Guaranteed Obligation
on the Overadvance Termination Date or on any date prior to the Overadvance
Termination Date that the entire balance of the Loans shall become due as a
result of acceleration or the occurrence of events described in subsections
9.1(g) or (h) of the Credit Agreement, the Lender may make demand upon the
Guarantors for the payment or performance of the Guaranteed Obligation and the
Guarantors bind and oblige themselves to make such payment or performance not
later than 20 days following such demand by Lender.

 

(b)                                 All
payments made by the Guarantors under this Agreement shall be made directly to
the Lender in immediately available funds. 
The Guarantors and the Borrowers agree that Guarantors and Wynnchurch
Capital, Ltd., will have the option, in their sole discretion, to have all or
any portion of any payment made by the Guarantors hereunder, together with the
Guaranty Fee (the “Demand Amount”) deemed to be (i) a purchase by
Guarantors and Wynnchurch Capital, Ltd. (solely with respect to the amount of
the Guaranty Fee) from ARC of Senior Subordinated Secured Promissory Notes (the
“New Wynnchurch Subordinated Notes”) in an aggregate principal amount
equal to the Demand Amount; and (ii) the immediate payment by ARC to the Lender
of all proceeds of the sale of the New Wynnchurch Subordinated Notes described
above.  The New Wynnchurch Subordinated
Notes shall have the terms set forth in that certain Securities Purchase
Agreement dated as of January 31, 2002, among ARC and

 

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Guarantors, as amended
(the “Securities Purchase Agreement”), provided, however, that
ARC shall be required to prepay such New Wynnchurch Subordinated Notes at such
times and to the extent permitted under Section 2.6 of the Intercreditor
Agreement.

 

4.                                       Waiver
of Demands, Notices, Diligence, etc. 
The Guarantors hereby assent to all of the terms and conditions of the
Guaranteed Obligation and waive: (a) demand for the payment of the principal of
the Guaranteed Obligation or of any claim for interest or any part of any
thereof (other than the demand provided for in Section 3 hereof); (b) notice of
the occurrence of, or the occurrence of, a default or an event of default under
the Credit Agreement or under the Guaranteed Obligation; (c) protest of the
nonpayment of the principal of the Guaranteed Obligation or of any claim for
interest or any part thereof; (d) notice of presentment, demand and protest;
(e) notice of acceptance of any guaranty herein provided for or of the terms
and provisions thereof or hereof by the Lender; (f) notice of any extensions
granted to the Borrowers or any successor to the Borrowers or any person or
party which shall have assumed the obligations of the Borrowers; (g) any
requirement of diligence or promptness on the part of the Lender in the
enforcement of any of its rights under the provisions of the Credit Agreement
or this Agreement; (h) any enforcement of the Guaranteed Obligation; (i) any
right which any Guarantor might have to require the Lender to proceed against
any other guarantor of the Guaranteed Obligation or to realize on any
collateral security therefor; and (j) any and all notices of every kind and
description which may be required to be given by any statute or rule of law in
any jurisdiction (other than notices of foreclosure under the UCC).  The waivers set forth in this Section 4
shall be effective notwithstanding the fact that any Borrower ceases to exist
by reason of its liquidation, merger, consolidation or otherwise.  Notwithstanding any provision of this
Agreement to the contrary, the Lender shall not settle or compromise any
Bluecurrent Receivables without the prior written consent of the Guarantors; provided
that no such consent shall be required during the continuance of an Event of
Default of the type described in subsection 9.1(g) or (h) of the Credit
Agreement.

 

5.                                       Obligations
of Guarantor Unconditional.  The
obligations of each of the Guarantors under this Guaranty Agreement shall be
absolute, unconditional and primary irrespective of the validity, regularity or
enforceability of the Guaranteed Obligation, and shall not be affected by (a)
any action taken under the Credit Agreement in the exercise of any right or
remedy therein conferred (including, without limitation, in respect of the
Guaranteed Obligation), (b) any failure or omission on the part of the Lender
to enforce any right given under any Loan Document or hereunder or any remedy
conferred thereby or hereby, (c) any waiver of any term, covenant, agreement or
condition of the Credit Agreement (including without limitation, in respect of
the Guaranteed Obligation) or this Agreement, (d) any release of any security
or any other guaranty at any time existing for the benefit of the Guaranteed
Obligation (including, without limitation, the release of any other Guarantor
hereunder) or any other obligation under the Credit Agreement, (e) the
commencement of a bankruptcy (whether voluntary or involuntary), insolvency or
related proceeding or the appointment of a receiver or similar official with
respect to any Guarantor, (f) the merger or consolidation of any Borrower, (g)
sale, lease or transfer by any Borrower to any person of any or all of its
properties, (h) any action of the Lender granting indulgence or extension to,
or waiving or acquiescing in any default by, any Borrowers or any successor to
any Borrower or any person or party which shall have assumed any obligation of
the Borrowers, (i) reason of any disability or other defense of any Borrower or
any successor to any Borrower, (j) any modification, alteration, or by any

 

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circumstance whatsoever
(with or without notice to or knowledge of the Guarantors) which may or might
in any manner or to any extent vary the risk of any Guarantor hereunder, it
being the purpose and intent of each Guarantor that the obligations of each
Guarantor hereunder shall be absolute, unconditional and primary under any and
all circumstances and shall not be discharged except by payment or performance
as herein provided, and then only to the extent of such payment or
performance.  Notwithstanding any
provision of this Agreement to the contrary, the Lender shall not settle or
compromise any Bluecurrent Receivables without the prior written consent of the
Guarantors; provided that no such consent shall be required during the
continuance of an Event of Default of the type described in subsection 9.1(g)
or (h) of the Credit Agreement.

 

6.                                       Waiver
of Rights of Subrogation.  Until the
payment in full of the Guaranteed Obligation, each Guarantor hereby waives any
claim, right or remedy which such Guarantor may now have or hereafter acquire
against the Borrowers that arises hereunder and/or from the performance by such
Guarantor hereunder including, without limitation, any claim, remedy or right
of subrogation, reimbursement, exoneration, indemnification, or participation
in any claim, right or remedy of the Lender against the Borrowers on any
security which the Lender now has or hereafter acquires, whether or not such
claim, right or remedy arises in equity, under contract, by statute, under
common law or otherwise.

 

7.                                       Termination.  This Agreement shall terminate upon the
earliest to occur of: (a) the reduction of the Initial Guaranty Amount to zero
in accordance with the terms of Section 2(b) of this Agreement, (b) the payment
in full of all of the Guarantors’ obligations under this Agreement, or (c) the
60th day after the Overadvance Termination Date.

 

8.                                       Reinstatement.  This Agreement shall continue to be
effective, or be reinstated, as the case may be, if at any time any amount
received by the Lender in respect of the Guaranteed Obligation is rescinded or
must otherwise be restored or returned by the Lender upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of any Borrower or any
Guarantor or upon the appointment of an intervenor or conservator of, or
trustee or similar official for, any Borrower or any Guarantor or any
substantial part of any of their respective properties, or otherwise, all as
though said payments had not been made.

 

9.                                       Representations
and Warranties.  Each Guarantor
represents and warrants to Lender that:

 

(a)                                  Due
Organization.

 

(i)                                     Each
Guarantor is a limited partnership duly organized and validly existing in good
standing under the laws of its jurisdiction of organization and is duly
qualified to do business and is in good standing in each jurisdiction in which
such qualification may be necessary by reason of the nature or location of such
Guarantor’s assets or operations.

 

(ii)                                  The
General Partner of each Guarantor is a corporation duly organized and validly
existing in good standing under the laws of its jurisdiction of organization
and is duly qualified to do business and is in good standing in each
jurisdiction in which such

 

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qualification may be
necessary by reason of the nature or location of such Guarantor’s assets or operations.

 

(b)                                 Due
Authorization.  The execution,
delivery and performance hereof are within each Guarantor’s and each General
Partner’s powers, have been duly authorized by all necessary action (including,
if required, partner action), require no action by or in respect of or filing
with any governmental authority, and do not contravene or constitute a default
under any provision of applicable law or regulation or of the certificate of
limited partnership, limited partnership agreement, articles of incorporation,
by-laws or other constituent documents of such Guarantor or General Partner, or
any judgment, order, decree, injunction or material agreement or other
instrument by which it or any of its properties may be bound, and will not
result in creation or imposition of any Lien on any of its assets.

 

(c)                                  Enforceability.  This Agreement has been duly executed and
delivered by and constitutes a valid and binding agreement of each Guarantor,
enforceable against it in accordance with its terms, subject to bankruptcy,
insolvency, moratorium and other laws affecting the rights of creditors and
general principles of equity.

 

(d)                                 Financial
and Other Information.  The
Guarantors have delivered to the Lender copies of their financial statements
for the fiscal year most recently ended, and such financial statements are true
and accurate in all material respects. 
Each of the Guarantors has delivered to the Lender true and complete
copies of its certificate of limited partnership and limited partnership
agreement, as amended and in effect on the date of this Agreement.  All information heretofore furnished by the
Guarantors to the Lender for purposes or in connection with this Agreement or
the transactions contemplated hereby is, and all such information hereafter
furnished by the Guarantor to the Lender will be, true and accurate in all
material respects on the date as of which such information is stated or deemed
stated.

 

(e)                                  Capital
Commitments and Calls, Etc.  As of
March 31, 2003: (i) the Capital Commitments of Wynnchurch USA aggregate
$80,250,000;  (ii) the Capital
Commitments of Wynnchurch Canada aggregate $82,852,855;  (iii) Capital Calls aggregating $38,152,687
have been made by Wynnchurch USA;  (iv)
Capital Calls aggregating $39,452,587 have been made by Wynnchurch Canada; and
(v) no Investor has failed to fund all of the amounts required to be paid by
such Investor pursuant to Capital Calls heretofore made or is otherwise in
default under any subscription agreement relating to its investment in the
applicable Guarantor.  Under the
applicable limited partnership agreement and subscription agreement, each
Investor has an absolute obligation to fund Capital Calls up to the aggregate
amount of its Capital Commitment.  No
Guarantor has knowledge of any right of set-off existing in favor of any
Investor against such Investor’s obligation to fund Capital Calls.  ARC is a “Portfolio Company”, as defined in
each Guarantor’s limited partnership agreement.  Payment of the entire amount of the Guaranteed Obligation
hereunder by any Guarantor, when aggregated with the amount of such Guarantor’s
existing investment in the Borrowers, shall not cause a breach of any
applicable concentration limit set forth in such Guarantor’s limited
partnership agreement.  The total amount
of all loans by each Guarantor to, and all guarantees by each Guarantor
(including its guaranty under this Agreement) of any loan or other obligation
of, the Borrowers, together with the total amount of cash invested by such
Guarantor in the Borrowers, does not represent in excess of 25% of the
aggregate amount of the Capital Commitments of the Investors in such

 

6

 

Guarantor. The total
amount of all guarantees by each Guarantor (including its guaranty under this
Agreement) of the loans and other obligations of existing and prospective
Portfolio Companies (as defined in each Guarantor’s limited partnership
agreement) does not exceed 100% of the unfunded Capital Commitments of the
Investors in such Guarantor as of the date hereof.  The execution and delivery of this Agreement by the Guarantors,
and the performance by the Guarantors of their obligations under this
Agreement, does not and will not constitute an investment in a leveraged buy
out, venture capital or other similar private debt or equity fund.

 

(f)                                    No
Adverse Regulations.  Each Guarantor
(i) is subject to no legal restriction, or any judgment, award, decree, order,
governmental rule or regulation or contractual restriction which would have a
material adverse effect on its financial condition, assets or operations (a “Guarantor
Material Adverse Effect”) and (ii) is in compliance with its organizational
documents and all contractual requirements by which it or any of its properties
may be bound and all applicable laws, rules and regulations other than (A)
laws, rules or regulations the validity or applicability of which it is
contesting in good faith by proceedings which serve to stay the enforcement
thereof or (B) such provisions of any of such organizational documents,
contractual requirements, laws, rules or regulations as to which the failure to
comply with the same would not reasonably be expected to have Guarantor
Material Adverse Effect.

 

(g)                                 No
Adverse Actions.  There is no
action, suit, proceeding or investigation pending or, to each Guarantor’s
knowledge, threatened against any Guarantor, any of its general partners or any
of their assets before or by any Governmental Authority reasonably likely to
have a Guarantor Material Adverse Effect.

 

(h)                                 Compliance
with Laws and Agreements.  Each
Guarantor is in compliance with all laws, regulations, policies and orders of
any Governmental Authority applicable to it or its property and all indentures,
agreements and other instruments binding upon it or its property, except where
the failure to do so, individually or in the aggregate, would not reasonably be
expected to result in a Guarantor Material Adverse Effect.

 

(i)                                     Investment
and Holding Company Status.  No
Guarantor is (a) an “investment company” as defined in, or subject to
regulation under, the Investment Company Act of 1940, as amended, (b) a
“holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935, as amended or (c) a “bank holding company”
as defined in, or subject to regulation under, the Bank Holding Company Act of
1956, as amended.

 

10.                                 Acknowledgement
of Lender’s Discretion.  Each
Guarantor hereby acknowledges that (i) pursuant to the terms of the Credit
Agreement the Overadvance Amount at any time outstanding is determined with
reference to the Borrowing Base, which shall be calculated by the Lender in its
commercially reasonable discretion, and (ii) in connection with the
determination of the Overadvance Amount, the amount of receivables owing by Bluecurrent
to the Borrowers shall not be included in the Borrowing Base.

 

11.                                 Subscribed
Capital.  Until such time as this
Agreement terminates in accordance with the terms of Section 7 hereof, the
aggregate amount of Uncalled Capital Commitments in respect of the Guarantors
shall at all times equal or exceed three times the aggregate Guarantor

 

7

 

Indebtedness.  For purposes hereof “Guarantor
Indebtedness” means, for any Guarantor, without duplication: (a) obligations
created, issued or incurred by such Guarantor for borrowed money (whether by
loan, advance, the issuance and sale of debt securities or the sale of property
to another Person subject to an understanding or agreement, contingent or
otherwise, to repurchase such property from such Person); (b) obligations of
such Guarantor to pay the deferred purchase or acquisition price of property or
services, other than trade accounts payable (other than for borrowed money)
arising, and accrued expenses incurred, in the ordinary course of business; (c)
capital lease obligations of such Guarantor; (d) obligations of such Guarantor
in respect of letters of credit or similar instruments issued or accepted by
banks and other financial institutions for the account of such Guarantor; (e)
Indebtedness of others secured by a Lien on the property of such Guarantor,
whether or not the respective indebtedness so secured has been assumed by such
Guarantor; and (f) Indebtedness of others Guaranteed by such Guarantor.  Guarantor Indebtedness, however, excludes
guaranties made by a Guarantor for which recourse under such guaranty is
limited to securities of such Guarantor’s portfolio companies or their
affiliates (together with replacements for such securities, dividends or other
amounts paid on account of such securities, property exchanged or received for
such securities, or the proceeds from the sale thereof).

 

12.                                 Covenants.  Each Guarantor agrees that so long as the
Guaranteed Obligation remains outstanding, such Guarantor:

 

(a)                                  will
maintain its existence in good standing as a limited partnership under the laws
of the jurisdiction of its organization as a limited partnership and its
qualification to transact business in each jurisdiction where failure so to
qualify would permanently preclude it form enforcing its rights with respect to
any material asset or would expose it to any material liability;

 

(b)                                 will
not merge or consolidate or enter into any analogous reorganization or
transaction with any Person or liquidate, wind up or dissolve themselves (or
suffer any liquidation or dissolution);

 

(c)                                  will
not amend or modify such Guarantor’s limited partnership agreement or any
subscription agreement of any Investor in such Guarantor in any way that would
adversely affect the enforceability of this Agreement, the availability of
capital to discharge the obligations under this Agreement or the consequences
to Investors of failing to fund Capital Calls;

 

(d)                                 will
furnish to the Lender promptly upon the mailing thereof to the Investors
generally, copies of all financial statements, reports and other information so
mailed to the Investors.

 

13.                                 Notices.  Except as otherwise provided herein, all
notices to the Guarantors or the Lender shall be in writing and shall be deemed
to have been sufficiently given or served for all purposes hereof if personally
delivered or mailed by first class mail, postage prepaid, as follows:

 

 

(a)                                  if
to the Guarantors:

 

Wynnchurch Capital Partners, L.P.

 

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Wynnchurch Capital
Partners Canada, L.P.

c/o Wynnchurch Capital Ltd.

Two Conway Park

150 Field Drive, Suite 165

Lake Forest, Illinois  60045

Attention:  John A. Hatherly

Fax no. 847-604-6105

with a copy to:

 

Altheimer &
Gray

10 South Wacker Drive, Suite 4000

Chicago, Illinois 60606

Attention:  Mark T. Kindelin, Esq.

Fax no. 312-715-4800

 

(b)                                 if
to the Lender:

 

Fleet Capital
Corporation

Mail Stop MA DE 10307X

One Federal Street

Boston, Massachusetts  02110

Attention:  Christopher Godfrey

 

with a copy to:

 

Palmer & Dodge
LLP

111 Huntington Avenue at Prudential Center

Boston, Massachusetts 02199-7613

Attn: David L. Ruediger, Esq.

 

or at such other address
as the party to whom such notice or demand is directed may have designated in
writing to the other party hereto.  A
notice shall be deemed to have been given upon the earlier to occur of (i)
three (3) days after the date on which it is deposited in the U.S. mails or
(ii) receipt by the party to whom such notice is directed.

 

14.                                 Miscellaneous.  This Agreement shall inure to the benefit of
and be binding upon the Lender and the Guarantors and their respective
successors and assigns, and the term “Lender” shall be deemed to include any
other holder or holders of the Guaranteed Obligation.  In case any provision in this Agreement shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.  This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which shall be an original, but all of which together shall constitute
one instrument.  Each Guarantor agrees,
as principal obligor and not as guarantor, to pay to the Lender forthwith upon
demand in funds immediately available to the Lender, all reasonable costs and
expenses (including court costs and reasonable attorneys’

 

9

 

fees and disbursements)
incurred or expended by the Lender in connection with the enforcement of this
Agreement.

 

15.                                 Obligations
Joint and Several.  The obligations
of the Guarantors hereunder shall be joint and several.

 

16.                                 Governing
Law; Jurisdiction; Waiver of Jury Trial. 
This Agreement, including the validity hereof and the rights and
obligations of the parties hereunder, shall be construed in accordance with and
governed by the laws of the Commonwealth of Massachusetts.  Each Guarantor, to the extent that it may
lawfully do so, hereby consents to the jurisdiction of the courts of the
Commonwealth of Massachusetts and the United States District Court for the
District of Massachusetts, as well as to the jurisdiction of all courts to
which an appeal may be taken from such courts, for the purpose of any suit,
action or other proceeding arising out of any of its obligations hereunder or
with respect to the transactions contemplated hereby, and expressly waives any
and all objections it may have as to venue in any such courts.  Each Guarantor further agrees that a summons
and complaint commencing an action or proceeding in any of such courts shall be
properly served and shall confer personal jurisdiction if served personally or
by certified mail to it at its address provided in Section 13 of this Agreement
or as otherwise provided under the laws of the Commonwealth of
Massachusetts.  Each Guarantor
irrevocably waives all right to a trial by jury in any suit, action or other
proceeding instituted by or against it in respect of its obligations hereunder
or the transactions contemplated hereby.

 

17.                                 Confidentiality.
The Lender agrees to maintain the confidentiality of information which is
furnished to the Lender by the Guarantors pursuant to the terms hereof
(including any information regarding any Person in which the Guarantors hold,
or contemplate acquiring, any portfolio investments made by the Guarantors) in
accordance with such procedures as it applies generally to information of this
kind, and agrees that it will not disclose any of such information other than
(a) to the Lender’s employees, representatives, attorneys, auditors,
professional advisors, agents or Affiliates who are advised of the confidential
nature of such information, (b) to the extent required by governmental
regulatory agencies, self regulating bodies, law, legal process, or litigation
in which Lender is a defendant, plaintiff or other named party, or (c) with the
Guarantors’ prior written consent.

 

10

 

IN WITNESS WHEREOF, the parties have executed this
Agreement as a sealed instrument as of the date first above written.

 

 

	
   

  	
  WYNNCHURCH CAPITAL
  PARTNERS, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wynnchurch Partners,
  L.P., its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wynnchurch Management
  Inc.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  WYNNCHURCH CAPITAL
  PARTNERS CANADA, L.P.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wynnchurch Partners
  Canada, L.P.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
  By:

  	
  Wynnchurch GP Canada,
  Inc.,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  The foregoing Guaranty
  Agreement is hereby accepted:

  
	
   

  	
   

  
	
   

  	
  FLEET CAPITAL
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
					

 

11

 

The undersigned
acknowledge the foregoing Guaranty Agreement, and agree to be bound by the
terms of Sections 2(c), 2(d) and 3(b) thereof.

 

	
  ALTERNATIVE RESOURCES
  CORPORATION

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  ARC SERVICE, INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  ARC SOLUTIONS, INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  ARC MIDHOLDING, INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  WRITERS INC.

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

12

 

	
  ARC TECHNOLOGY
  MANAGEMENT LLC

  
	
   

  
	
   

  
	
  By:  ARC SERVICE, INC., its Manager and sole
  member

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  ARC STAFFING MANAGEMENT
  LLC

  
	
   

  
	
   

  
	
  By:  ARC SERVICE, INC., its Manager and sole
  member

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  ARC SHARED SERVICES LLC

  
	
   

  
	
   

  
	
  By:  ARC SERVICE, INC., its Manager and sole
  member

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  
	
  Title:

  

 

13Exhibit 4.5

 

AMENDMENT TO NOTES

 

This  AMENDMENT
TO NOTES dated as of April 14, 2003 (this “Amendment”), among
Alternative Resources Corporation, a Delaware corporation  (the “Company”), with headquarters
located at 600 Hart Road, Suite 300, Barrington, Illinois 60010,  Wynnchurch Capital Partners, L.P., a
Delaware limited partnership (“WCP”) and Wynnchurch Capital Partners
Canada, L.P., an Alberta, Canada limited partnership (“WCPC”, each of
WCP and WCPC, a “Purchaser,” and collectively, the “Purchasers”),
amends the Senior Subordinated Secured Convertible Promissory Note dated as of
January 31, 2002 issued to WCP by the Company in the original principal amount
of $4,920,208.00 (“WCP Note”); and the Senior Subordinated Secured
Convertible Promissory Note dated as of January 31, 2002 issued to WCPC by the
Company in the original principal amount of $5,079,792  (the “WCPC Note,” and together with
the WCP Note, the “Notes”).

 

WHEREAS,  the
Company and Purchasers are entering into a Fifth Amendment to Securities
Purchase Agreement and Waiver of even date herewith pursuant to which
Purchasers are waiving certain events of default under that certain Securities
Purchase Agreement by and among the Company and Purchasers, dated as of January
31, 2002, as amended (the “Securities Purchase Agreement”); and

 

WHEREAS, the Company and the Purchasers desire to
amend certain provisions of the Notes, all subject to the terms, conditions and
limitations set forth herein;

 

NOW, THEREFORE, in consideration of the foregoing and
the agreements contained herein, the parties hereby agree as follows:

 

1.                                       Capitalized
Terms.

 

Capitalized terms used herein which are defined in the
Notes have the same meanings herein as therein, except to the extent that such
meanings are amended hereby.

 

2.                                       Amendment.

 

The Company and the Purchasers agree that the
definition of “Conversion Price” in Section 2.1(f) of each of the Notes is
hereby deleted and amended and restated in its to read as follows:

 

“(f)                              “Conversion
Price” means $1.50, subject to adjustments as set forth in Article VI
hereof.”

 

3.                                       No
Default, etc.

 

The Company hereby represents, warrants and confirms
that: (a) after giving effect to this Amendment, the Company is in compliance
with all of the terms and provisions set forth in the Notes; and (b) the
execution, delivery and performance by the Company of this Amendment (i) have
been duly authorized by all necessary action on the part of the Company, (ii)
will not violate any applicable law or regulation or the organizational documents
of the Company or any of its subsidiaries, (iii) will not violate or result in
a default under any indenture, agreement or other instrument binding on the
Company or any of its assets, and (iv) do not require any consent, waiver or
approval of or by any person (other than the Purchasers) which has not been
obtained.

 

 

 

4.                                       Acknowledgment.

 

The Purchasers and the Company hereby acknowledge and
agree that the adjustment to the Conversion Price of the Notes made in Section
1 hereof shall not act to adjust the exercise price of any of the warrants
issued by the Company to Purchasers pursuant to the Securities Purchase
Agreement, and that the adjustment to the exercise price of the warrants made
pursuant to that certain Amendment to Warrants between Purchasers and the
Company of even date herewith shall not act to cause any adjustment to the
Conversion Price of the Notes.

 

5.                                       Miscellaneous.

 

(a)                                  Except
as specifically amended hereby, all of the terms and provisions of the Notes
shall remain in full force and effect. The indebtedness evidenced by the Notes
is continuing indebtedness and nothing herein shall be deemed to constitute a
payment, settlement, disposition or novation of the Notes or release or
otherwise adversely affect any rights of the Purchasers against the Company.

 

(b)                                 This
Amendment may be executed in any number of counterparts, each of which, when
executed and delivered, shall be an original, but all counterparts shall
together constitute one instrument. 
Delivery of an executed signature page hereto by facsimile transmission
shall be effective as delivery of a manually executed counterpart hereof.

 

(c)                                  This
Amendment shall be governed by the laws of the State of Illinois and shall be
binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns.

 

[Remainder of Page Left Intentionally Blank]

 

2

 

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

 

	
  COMPANY:

  	
   

  
	
   

  	
   

  
	
  ALTERNATIVE
  RESOURCES CORPORATION

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  PURCHASERS:

  	
   

  
	
   

  	
   

  
	
  WYNNCHURCH
  CAPITAL PARTNERS, L.P.

  	
   

  
	
  By:

  	
  Wynnchurch
  Partners, L.P., its general partner

  	
   

  
	
  By:

  	
  Wynnchurch
  Management, Inc., its general partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WYNNCHURCH
  CAPITAL PARTNERS CANADA, L.P.

  	
   

  
	
  By:

  	
  Wynnchurch
  Partners Canada, L.P., its general partner

  	
   

  
	
  By:

  	
  Wynnchurch
  GP Canada, Inc., its general partner

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Acknowledged and Consented to pursuant to Section
  2.7 of that certain Subordination and Intercreditor Agreement by and among
  the Purchasers, Fleet Capital Corporation and the Company, dated as of
  January 31, 2002, as amended.

  
	
   

  	
   

  
	
  FLEET CAPITAL CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  	
   

  
									

 

3

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