Document:

exv10w16

 

Exhibit 10.16

*3143859057*

*026*

*ARI NETWORK SERVICES INC*

DOCUMENT TYPE SEPARATOR SHEET

Note Modification

Version 1.1

 

 

			
	
	 	Note Modification Agreement

This agreement is dated as of April 25, 2006 (the “Agreement Date”), by and between ARI
Network Services, Inc. (the “Borrower”) and JPMorgan Chase Bank, N.A., successor by merger to
Bank One, NA, with its main office in Chicago, IL (the “Bank”). The provisions of this
agreement are effective on the date that this agreement has been executed by all of the signers
and delivered to the Bank (the “Effective Date”).

WHEREAS, the Borrower executed a Line of Credit Note as evidence of indebtedness in the
original face amount of Five Hundred Thousand and 00/100 Dollars ($500,000.00), dated July 9,
2004 owing by the Borrower to the Bank, as same may have been amended or modified from time to
time (the “Note”), which Note has at all times been, and is now, continuously and without
interruption outstanding in favor of the Bank; and,

WHEREAS, the Borrower has requested and the Bank has agreed that the Note be modified to the
limited extent as hereinafter set
forth;

NOW THEREFORE, in mutual consideration of the agreements contained herein and for other good
and valuable consideration, the parties agree as follows:

1. ACCURACY OF RECITALS. The Borrower acknowledges the accuracy of the Recitals stated above.

2. MODIFICATION OF NOTE.

     2.1 From and after the Effective Date, the provisions in the Note captioned “Due” and
“Promise to Pay” are hereby amended by deleting the date “July 9, 2006” contained therein and
replacing it with “July 9, 2007”.

     2.2 Each of the Related Documents is modified to provide that it shall be a default or an
event of default thereunder if the Borrower shall fail to comply with any of the covenants of
the Borrower herein or if any representation or warranty by the Borrower herein or by any
guarantor in any Related Documents is materially incomplete, incorrect, or misleading as of the
date hereof. As used in this agreement, the “Related Documents” shall include the Note and all
loan agreements, credit agreements, reimbursement agreements, security agreements, mortgages,
deeds of trust, pledge agreements, assignments, guaranties, or any other instrument or document
executed in connection with the Note or in connection with any other obligations of the Borrower
to the Bank.

     2.3 Each reference in the Related Documents to any of the Related Documents shall be a
reference to such document as modified herein.

3.
RATIFICATION OF RELATED DOCUMENTS AND COLLATERAL. The Related Documents are ratified and
reaffirmed by the Borrower and shall remain in full force and effect as they may be modified
herein. All real or personal property described as security in the Related Documents shall
remain as security for the Note and the obligations of the Borrower in the Related Documents.

4. BORROWER REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants to the Bank
that each of the following representations and warranties made in the Note and Related
Documents are true and will remain true until maturity of the Note, termination of the other
Related Documents and payment and performance in full of all liabilities, obligations and debt
evidenced by the Note and other Related Documents:

     4.1 No default or event of default under any of the Related Documents as modified hereby,
nor any event, that, with the giving of notice or the passage of time or both, would be a
default or an event of default under the Related Documents as modified herein has occurred and
is continuing.

     4.2 There has been no material adverse change in the business, assets, affairs, prospects
or financial condition of the Borrower or any Guarantor or any subsidiary of the Borrower.

 

 

     4.3 Each and all representations and warranties of the Borrower in the Related Documents are
accurate on the date hereof.

     4.4 The Borrower has no claims, counterclaims, defenses, or setoffs with respect to the
loan evidenced by the Note or with respect to the Related Documents as modified herein.

     4.5 The Note and the Related Documents as modified herein are the legal, valid, and binding
obligations of the Borrower, enforceable against the Borrower in accordance with their terms.

     4.6 The Borrower, other than any Borrower who is a natural person, is validly existing
under the laws of the State of its formation or organization. The Borrower has the requisite
power and authority to execute and deliver this agreement and to perform the obligations
described in the Related Documents as modified herein. The execution and delivery of this
agreement and the performance of the obligations described in the Related Documents as modified
herein have been duly authorized by all requisite action by or on behalf of the Borrower. This
agreement has been duly executed and delivered by or on behalf of the Borrower.

5. BORROWER COVENANTS. The Borrower covenants with the Bank:

     5.1 The Borrower shall execute, deliver, and provide to the Bank such additional agreements,
documents, and instruments as reasonably required by the Bank to effectuate the intent of this
agreement.

     5.2 The Borrower fully, finally, and forever releases and discharges the Bank and its
successors, assigns, directors, officers, employees, agents, and representatives from any and all
causes of action, claims, debts, demands, and liabilities, of whatever kind or nature, in law or
equity, of the Borrower, whether now known or unknown to the Borrower, (i) in respect of the loan
evidenced by the Note and the Related Documents, or of the actions or omissions of the Bank in any
manner related to the loan evidenced by the Note or the Related Documents and (ii) arising from
events occurring prior to the date of this agreement.

     5.3 The Borrower shall pay to the Bank:

          5.3.1 All the internal and external costs and expenses incurred (or charged by internal
allocation) by the Bank in connection with this agreement (including, without limitation, inside
and outside attorneys, appraisal, appraisal review, processing, title, filing, and recording
costs, expenses, and fees).

6. EXECUTION AND DELIVERY OF AGREEMENT BY THE BANK. The Bank shall not be bound by this
agreement until (i) the Bank has executed this agreement and (ii) the Borrower performed all
of the obligations of the Borrower under this agreement to be performed contemporaneously with
the execution and delivery of this agreement.

7. INTEGRATION, ENTIRE AGREEMENT, CHANGE, DISCHARGE, TERMINATION, OR WAIVER. The Note and the
Related Documents as modified herein contain the complete understanding and agreement of the
Borrower and the Bank in respect of the loan and supersede all prior representations,
warranties, agreements, arrangements, understandings, and negotiations. No provision of the
Note or the Related Documents as modified herein may be changed, discharged, supplemented,
terminated, or waived except in a writing signed by the party against whom it is being
enforced.

8. GOVERNING LAW AND VENUE. This agreement shall be governed by and construed in accordance with
the laws of the State of Wisconsin (without giving effect to its laws of conflicts). The
Borrower agrees that any legal action or proceeding with respect to any of its obligations
under the Note or this agreement may be brought by the Bank in any state or federal court
located in the State of Wisconsin, as the Bank in its sole discretion may elect. By the
execution and delivery of this agreement, the Borrower submits to and accepts, for itself and
in respect of its property, generally and unconditionally, the non-exclusive jurisdiction of
those courts. The Borrower waives any claim that the State of Wisconsin is not a convenient
forum or the proper venue for any such suit, action or proceeding. This agreement binds the
Borrower and its successors, and benefits the Bank, its successors and assigns. The Borrower
shall not, however, have the right to assign the Borrower’s rights under this agreement or any
interest therein, without the prior written consent of the Bank.

9. COUNTERPART EXECUTION. This agreement may be executed in multiple counterparts, each of
which, when so executed, shall be deemed an original, but all such counterparts, taken
together, shall constitute one and the same agreement.

10. NOT A NOVATION. This agreement is a modification only and not a novation. In addition to all
amounts hereafter due under the Note and the Related Documents as they may be modified herein,
all accrued interest evidenced by the Note being modified by

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this agreement and all accrued amounts due and payable under the Related Documents shall
continue to be due and payable until paid. Except for the above-quoted modification(s), the Note,
any Related Documents, and all the terms and conditions thereof, shall be and remain in full force
and effect with the changes herein deemed to be incorporated therein. This agreement is to be
considered attached to the Note and made a part thereof. This agreement shall not release or
affect the liability of any guarantor, surety or endorser of the Note or release any owner of
collateral securing the Note. The validity, priority and enforceability of the Note shall not be
impaired hereby. References to the Related Documents and to other agreements shall not affect or
impair the absolute and unconditional obligation of the Borrower to pay the principal and interest
on the Note when due. The Bank reserves all rights against all parties to the Note.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Borrower:	 	 
	 

	 	 	 	 	 	 	 	 
	Address:	 	11425 West Lake Park Drive	 	ARI Network Services Inc.	 	 
	 

	 	Milwaukee, Wl 53224	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Timothy Sherlock	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Timothy Sherlock
	 	CFO
	 

	 	 	 	 	 	Printed Name
	 	Title
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Date Signed: 6/14/06	 	 
	 

	 	 	 	 	 	 	 	 
	BANK’S ACCEPTANCE	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	The foregoing agreement is hereby
agreed to and acknowledged.	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Bank:	 	 
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	JPMorgan Chase Bank, N.A.	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Anthony W. Bartell
	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Printed Name
	 	V.P.

Title
	 

	 	 	 	 	 	 	 	 
	 	 	 	 	Date Signed: 6/21/06	 	 

3EX-10.1 AMENDMENT NO. 3

 

Exhibit 10.1

Amendment No. 3

to

Note Purchase Agreement

dated as of September 30, 2003

As of October 13, 2006

To each of the Persons listed in the Attached Schedule 1

(each, a “Current Noteholder”)

Ladies and Gentlemen:

     Crawford & Company, a Georgia corporation (together with its successors and assigns, the
“Company”) and Crawford & Company International, Inc., a Georgia corporation (together with its
successors and assigns, the “Co-Obligor” and together with the Company, the “Obligors”) jointly and
severally agree with you as follows:

	1.	 	NOTE ISSUANCE, ETC.

     (a) The Obligors jointly and severally issued and sold $50,000,000 aggregate principal
amount of their joint and several 6.08% Senior Guarantied Notes due October 10, 2010 (the
“Notes”), pursuant to that certain Note Purchase Agreement dated as of September 30, 2003 by
and among the Obligors and each of the persons listed in Schedule A attached thereto, as
amended by that certain Waiver and Amendment to Note Purchase Agreement, dated as of
September 30, 2005, by and among the Obligors and each of the persons listed in Schedule 1
attached thereto, and as further amended by that certain Waiver and Amendment No. 2 to Note
Purchase Agreement, dated as of June 16, 2006, by and among the Obligors and each of the
persons listed in Schedule 1 attached thereto (prior to the amendment effected hereby, the
“Existing Agreement” and, immediately after giving effect to such amendment, and as may be
further amended, restated or otherwise modified from time to time, the “Amended Agreement”).

     (b) The register for the registration and transfer of the Notes indicates that the
Current Noteholders are currently the holders of the entire outstanding principal amount of
the Notes.

	2.	 	DEFINED TERMS.

     Capitalized terms used herein and not otherwise defined herein have the meanings ascribed to
them in the Amended Agreement.

 

 

	3.	 	AMENDMENT.

     Subject to Section 5, the Existing Agreement is amended in the manner set forth below (the
“Amendment”):

     (a) Amendment to Schedule B of the Existing Agreement. Schedule B of the Existing Agreement
is hereby amended as follows:

     (i) The definition of “Permitted Acquisitions” is hereby amended and restated in its
entirety as follows:

     ““Permitted Acquisitions” means any Acquisition so long as

     (a) at the time of such Acquisition, no Default or Event of Default is in
existence;

     (b) such Acquisition has been approved or recommended by the board of directors
of the Person being acquired; and

     (c)

     (i) with respect to an Acquisition consummated during the period from
August 1, 2006 through and including July 31, 2007, the Total Acquisition
Consideration of such Acquisition, when aggregated with the Total
Acquisition Consideration of all Acquisitions consummated by the Company and
the Consolidated Subsidiaries during such period, does not exceed
$25,000,000;

     (ii) with respect to an Acquisition consummated during the period from
August 1, 2007 through and including July 31, 2008, the Total Acquisition
Consideration of such Acquisition, when aggregated with the Total
Acquisition Consideration of all Acquisitions consummated by the Company and
the Consolidated Subsidiaries during such period, does not exceed 10% of
Consolidated Net Worth determined as of the last day of the then most
recently ended fiscal quarter of the Company; and

     (iii) with respect to an Acquisition consummated before August 1, 2006
or after July 31, 2008, the Total Acquisition Consideration of such
Acquisition, when aggregated with the Total Acquisition Consideration of all
Acquisitions consummated by the Company and the Consolidated Subsidiaries
during the preceding 12 month period, does not exceed 10% of Consolidated
Net Worth determined as of the last day of the then most recently ended
fiscal quarter of the Company.”

	4.	 	WARRANTIES AND REPRESENTATIONS.

     To induce the Current Noteholders to enter into this Amendment No. 3, the Obligors warrant and
represent as follows (it being agreed, however, that nothing in this Section 4 shall

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affect any of the warranties and representations previously made by the Obligors in or
pursuant to the Existing Agreement, and that all of such other warranties and representations, as
well as the warranties and representations in this Section 4, shall survive the effectiveness of
the Amendment):

	 	4.1.	 	Organization; Power and Authority.

     Each Obligor is duly organized, validly existing and in good standing under the laws of
Georgia, and is duly qualified as a foreign corporation and in good standing in each jurisdiction
in which such qualification is required by law, other than those jurisdictions as to which the
failure to be so qualified or in good standing would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Each Obligor has the corporate power and
authority to execute and deliver this Amendment No. 3 and to perform the provisions hereof.

	 	4.2.	 	Authorization, etc.

     This Amendment No. 3 has been duly authorized by all necessary corporate action on the part of
each Obligor and constitutes a legal, valid and binding obligation of each Obligor enforceable
against each Obligor, jointly and severally, in accordance with its terms, except as such
enforceability may be limited by (a) applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws affecting the enforcement of creditors’ rights generally and (b) general
principles of equity (regardless of whether such enforceability is considered in a proceeding in
equity or at law).

	 	4.3.	 	Compliance with Laws, Other Instruments, etc.

     The execution, delivery and performance by the Obligors of this Amendment No. 3 will not (a)
contravene, result in any breach of, or constitute a default under, or result in the creation of
any Lien in respect of any property of the Obligors or any Subsidiary of the Company under, any
applicable indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease, corporate
charter or by-laws, or any other applicable agreement or instrument to which the Company, the
Co-Obligor or any Subsidiary of the Company, or any of their respective properties, may be bound or
affected, (b) conflict with or result in a breach of any of the terms, conditions or provisions of
any order, judgment, decree, or ruling of any court, arbitrator or Governmental Authority
applicable to the Obligors or any Subsidiary of the Company or (c) violate any provision of any
statute or other rule or regulation of any Governmental Authority applicable to the Obligors or any
Subsidiary of the Company.

	 	4.4.	 	Disclosure of Defaults.

     After giving effect to this Amendment No. 3, no event will have occurred and no condition will
exist which would constitute a Default or an Event of Default under the Amended Agreement.

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	 	4.5.	 	Full Disclosure.

     Neither the financial statements and other certificates previously provided to the Current
Noteholders pursuant to the provisions of the Existing Agreement nor the statements made in this
Amendment No. 3 nor any other written statements furnished by or on behalf of the Obligors to the
Current Noteholders in connection with the proposal and negotiation hereof, taken as a whole,
contain any untrue statement of a material fact or omit a material fact necessary to make the
statements contained therein and herein not misleading.

	 	4.6.	 	No Material Adverse Change.

     Since December 31, 2005, there has been no change in the financial condition, operations,
business, properties or prospects of the Obligors or any Subsidiary of the Company except changes
that, in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

	5.	 	EFFECTIVENESS OF AMENDMENT.

     This Amendment No. 3 shall become effective as of October 13, 2006 (the “Effective Date”),
provided that

     (i) the Company and the Required Holders shall have indicated their written consent hereto by
executing and delivering to each other counterparts hereof; and

     (ii) each Current Noteholder shall have received a fully executed copy of that certain
Amendment No. 3 to First Amended and Restated Credit Agreement, dated as of September 21, 2006,
among the Obligors, the lenders party thereto, and SunTrust Bank, as Administrative Agent.

	6.	 	EXPENSES

     Whether or not this Amendment No. 3 becomes effective, the Company will promptly (and in any
event within thirty (30) days of receiving any statement or invoice therefor) pay all reasonable
fees, expenses and costs relating to this Amendment No. 3, including, but not limited to, (a) the
cost of reproducing this Amendment No. 3 and the other documents delivered in connection herewith
and (b) the reasonable fees and disbursements of the Current Noteholders’ special counsel, Bingham
McCutchen LLP, incurred in connection with the preparation, negotiation and delivery of this
Amendment No. 3. Nothing in this Section 6 shall be construed to limit the Company’s obligations
under Section 15.1 of the Existing Agreement.

	7.	 	MISCELLANEOUS.

	 	7.1.	 	Effect of this Amendment No. 3.

     Except as expressly provided herein:

     (a) no terms and provisions of any agreement are modified or changed by this Amendment
No. 3;

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     (b) the terms and provisions of the Existing Agreement and the Notes shall continue in
full force and effect; and

     (c) each Obligor hereby acknowledges and reaffirms all of its obligations and duties
under the Amended Agreement and the Notes, and by its signature on the Acknowledgment page
hereto, each Guarantor hereby acknowledges and reaffirms all of its obligations and duties
under the Guaranty Agreement.

	 	7.2.	 	Governing Law.

     This Amendment No. 3 shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the law of the State of New York excluding choice-of-law principles
of the law of such State that would require the application of the laws of a jurisdiction other
than such State.

	 	7.3.	 	Duplicate Originals; Effectiveness.

     Two or more duplicate originals of this Amendment No. 3 may be signed by the parties, each of
which shall be an original but all of which together shall constitute one and the same instrument.
This Amendment No. 3 may be executed in one or more counterparts and shall be effective when at
least one counterpart shall have been executed by each party hereto, and each set of counterparts
which, collectively, show execution by each party hereto shall constitute one duplicate original.

	 	7.4.	 	Section Headings.

     The titles of the sections hereof appear as a matter of convenience only, do not constitute a
part of this Amendment No. 3 and shall not affect the construction hereof.

	 	7.5.	 	Entire Agreement.

     This Amendment No. 3 constitutes the final written expression of all of the terms hereof and
is a complete and exclusive statement of those terms.

[Remainder of page intentionally left blank; next page is signature page.]

5

 

     IN WITNESS WHEREOF, the undersigned have caused this Amendment No. 3 to be duly executed and
delivered by their respective duly authorized officers.

	 	 	 
	 

	 	CRAWFORD & COMPANY
	 
	 	 
	 

	 	By: /s/ Joseph R. Caporaso
	 

	 	Name: Joseph R. Caporaso
	 

	 	Title: Senior Vice President & Treasurer
	 
	 	 
	 

	 	CRAWFORD & COMPANY
	 

	 	INTERNATIONAL, INC.
	 
	 	 
	 

	 	By:_/s/ Joseph R. Caporaso
	 

	 	Name: Joseph R. Caporaso
	 

	 	Title: Vice President & Treasurer

Schedule 1-1

 

CURRENT NOTEHOLDERS:

The foregoing is hereby agreed to as of the date thereof.

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

By: /s/ Billy Greer

Name: Billy B. Greer

Title: Vice President

PRUCO LIFE INSURANCE COMPANY

By: /s/ Billy Greer

Name: Billy b. Greer

Title: Assistant Vice President

PRUCO LIFE INSURANCE COMPANY OF NEW JERSEY

By: /s/ Billy Greer

Name: Billy B. Greer

Title: Assistant Vice President

	 	 	 	 	 
	RGA REINSURANCE COMPANY
	By:	 	Prudential Private Placement Investors, L.P.
	 	 	(as Investment Advisor)
	 

	 	By:
	 	Prudential Private Placement Investors, Inc.
	 

	 	 	 	(as its General Partner)
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Billy Greer
	 

	 	 	 	Name: Billy B. Greer
	 

	 	 	 	Title: Vice President

	 	 	 	 	 
	RELIASTAR LIFE INSURANCE COMPANY
	By:	 	Prudential Private Placement Investors, L.P.
	 	 	(as Investment Advisor)
	 

	 	By:
	 	Prudential Private Placement Investors, Inc.
	 

	 	 	 	(as its General Partner)
	 
	 	 	 	 
	 

	 	 	 	By: /s/ Billy Greer
	 

	 	 	 	Name: Billy B. Greer
	 

	 	 	 	Title: Vice President

Schedule 1-2

 

Acknowledgment Page

Each of the undersigned consents to the execution and delivery of this Amendment No. 3 by the
Obligors and reaffirms its obligations under the Guaranty Agreement:

CALESCO, INC.

CRAWFORD & COMPANY OF NEW YORK, INC.

CRAWFORD LEASING SERVICES, INC.

RISK SCIENCES GROUP, INC.

THE PRISM NETWORK, INC.

CRAWFORD & COMPANY HEALTHCARE

     MANAGEMENT, INC.

QIRRA CUSTOM SOFTWARE, INC.

BROCKLEHURST MILLER, INC.

BROCKLEHURST, INC.

By: /s/ Joseph R. Caporaso

Name: Joseph R. Caporaso

Title: Treasurer

THE GARDEN CITY GROUP, INC.

By: /s/ Joseph R. Caporaso

Name: Joseph R. Caporaso

Title: Treasurer

	 	 	 
	CRAWFORD & COMPANY L.P.
	By:

	 	Crawford & Company, its General Partner
	 
	 

	 	By: /s/ Joseph R. Caporaso
	 

	 	Name: Joseph R. Caporaso
	 

	 	Title: Senior Vice President & Treasurer

Schedule 1-3

 

CRAWFORD & COMPANY EMPLOYMENT

      SERVICES, INC.

By: /s/ Matt C. Wilkinson

Name: Matt C. Wilkinson

Title: President

Schedule 1-4

 

CRAWFORD & COMPANY OF FLORIDA

By: /s/ Konda Carr

Name: Konda Carr

Title: Secretary

Schedule 1-5

 

CRAWFORD & COMPANY OF ILLINOIS

By: /s/ Joseph P. Rainey

Name: Joseph P. Rainey

Title: President

Schedule 1-6

 

CRAWFORD & COMPANY OF CALIFORNIA

By: /s/ Jeffrey B. Van Fleet

Name: Jeffrey B. Van Fleet

Title: President

Schedule 1-7

 

CRAWFORD HEALTHCARE MANAGEMENT

          OF NORFOLK AND BALTIMORE, INC.

By: /s/ William L. Beach

Name: William L. Beach

Title: Vice President & Secretary

Schedule 1-8

 

CRAWFORD INVESTIGATION SERVICES, INC.

By: /s/ Lester Rogers

Name: Lester Rogers

Title: President

Schedule 1-9

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