Exhibit 10.1
AMENDMENT NO. 3 TO CREDIT
AGREEMENT
This Amendment No. 3 to Credit Agreement
(this “ Amendment ”) dated as of May 12, 2008,
is made among ATS CORPORATION , a Delaware corporation (the
“ Borrower ”), BANK OF AMERICA, N.A. , a
national banking association organized and existing under the laws
of the United States, in its capacity as administrative agent for
the Lenders (as defined in the Credit Agreement (as defined below))
(in such capacity, the “ Administrative Agent
”), each of the Lenders signatory hereto and each of the
Guarantors signatory hereto.
W I T N E S S E T H:
WHEREAS , the
Borrower, the Administrative Agent and the Lenders have entered
into that certain Credit Agreement dated as of June 4, 2007
(as amended by Amendment No. 1 to Credit Agreement dated as of
June 29, 2007, Amendment No. 2 to Credit Agreement,
Limited Consent and Agreement to Increase Commitments dated as of
November 9, 2007, as amended by this Amendment and as from
time to time hereafter further amended, restated, supplemented or
otherwise modified, the “ Credit Agreement ”;
capitalized terms used in this Amendment not otherwise defined
herein shall have the definition given thereto in the Credit
Agreement), pursuant to which the Lenders have made available to
the Borrower a revolving credit facility, including a letter of
credit subfacility; and
WHEREAS , each of
the Guarantors has entered into a Guaranty pursuant to which it has
guaranteed the payment and performance of the obligations of the
Borrower under the Credit Agreement and the other Loan Documents;
and
WHEREAS, the
Borrower has advised the Administrative Agent and the Lenders that
it desires to amend certain provisions of the Credit Agreement as
set forth below and the Administrative Agent and the Lenders
signatory hereto are willing to effect such amendment on the terms
and conditions contained in this Agreement; and
NOW, THEREFORE , in
consideration of the premises and further valuable consideration,
the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree as follows:
1.
Amendments to Credit
Agreement . Subject to the terms and conditions set
forth herein, and in reliance upon the representations and
warranties of the Borrower made herein, the Credit Agreement is
hereby amended as follows:
(a)
Section 1.01 of the Credit Agreement is amended to add
the following defined term thereto:
“ Net Cash Proceeds ” means
with respect to the sale of any Equity Interests by the Borrower or
any of its Subsidiaries, or the exercise or conversion of any
warrants, options or rights with respect to such Equity Interests,
the excess of (i) the sum of the cash and cash equivalents
received in connection therewith over (ii) the underwriting
discounts and commissions, and other out-of-pocket expenses,
incurred by such Person in connection therewith.
(b)
Section 1.01 of the Credit Agreement is amended by
replacing the definitions of “ Applicable Rate ”
and “ Coverage Adjustment Amount ” in their
entirety with the following definitions:
“ Applicable Rate ” means,
from time to time, the following percentages per annum, based upon
the Consolidated Leverage Ratio as set forth in the most recent
Compliance Certificate received by Agent pursuant to
Section 6.02(b)(i) :
Applicable
Rate
|
Pricing
Level
|
|
Consolidated
Leverage Ratio
|
|
Unused Fee
|
|
LIBOR Monthly
Floating Rate
and
Letter of Credit
Fee
|
|
|
1
|
|
Less than or equal to
2.00 to 1.00
|
|
0.200
|
%
|
2.000
|
%
|
|
2
|
|
Less than or equal to
2.50 to 1.00, but greater than 2.00 to 1.00
|
|
0.250
|
%
|
2.250
|
%
|
|
3
|
|
Less than or equal to
3.00 to 1.00, but greater than 2.50 to 1.00
|
|
0.250
|
%
|
2.750
|
%
|
|
4
|
|
Greater than 3.00 to
1.00
|
|
0.375
|
%
|
3.500
|
%
|
Any
increase or decrease in the Applicable Rate resulting from a change
in the Consolidated Leverage Ratio shall become effective as of the
first Business Day of the month immediately following the date a
Compliance Certificate is delivered pursuant to
Section 6.02(b) (each such day, an “
Applicable Rate Change Date ”); provided ,
however , that if a Compliance Certificate is not
delivered when due in accordance with such Section, then
Pricing Level 4 shall apply as of the first Business Day of the
month following the date such Compliance Certificate was required
to have been delivered; provided further that
notwithstanding the Coverage Adjustment Amount then in effect, if
at any date a Coverage Adjustment Amount equal to $0 would result
in the Borrower’s failure to comply with
Section 6.12(a) then Pricing Level 4 shall apply
as of such date until such time as the Borrower has demonstrated
that a Coverage Adjustment Amount equal to $0 would not result in
such non-compliance.
“ Coverage Adjustment Amount
” means, with respect to any date occurring during each
period set forth below, an amount equal to the amount
set
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forth below opposite such period, but subject
to adjustment pursuant to Section 6.10 :
|
Period
|
|
Coverage Adjustment
Amount
|
|
|
December 31, 2007 through May 31,
2008
|
|
$
|
9,250,000
|
|
|
June 1, 2008 through August 31,
2008
|
|
$
|
7,500,000
|
|
|
September 1, 2008 through
February 28, 2009
|
|
$
|
6,500,000
|
|
|
March 1, 2009 through May 31,
2009
|
|
$
|
5,500,000
|
|
|
June 1, 2009 through August 31,
2009
|
|
$
|
3,500,000
|
|
|
September 1, 2009 through
November 30, 2009
|
|
$
|
1,500,000
|
|
|
December 1, 2009 and thereafter
|
|
$
|
0
|
|
provided , however , each of
the Coverage Adjustment Amounts set forth in the table above shall
be reduced by (i) the amount of any mandatory prepayment
required to be made by Sections 2.05(d) and (e)
, and (ii) the Net Cash Proceeds received by the Borrower or
any of its Subsidiaries in connection with the Borrower’s
Early Warrant Exercise Program effective as of April 8,
2008.
(c)
Section 1.01 of the Credit Agreement is amended by
adding the following sentence to the end of the definition of
“ Consolidated Cash Flow ”:
“Amounts
included in the calculation of Consolidated Cash Flow under clause
(b) above for losses from discontinued operations and
extraordinary items and clause (c) above for other non-cash
charges shall be subject to the approval of such items by the
Administrative Agent.”
(d)
Section 1.01 of the Credit Agreement is amended by
adding the following sentence to the end of the definition of
“ Consolidated EBITDA ”:
“Amounts
included in the calculation of Consolidated EBITDA under clause
(b) above for losses from discontinued operations and
extraordinary items and clause (e) above for other non-cash
charges shall be subject to the approval of such items by the
Administrative Agent.”
(e)
Section 2.05 of the Credit Agreement is amended by
adding new subsections (d) and (e) thereto as
follows:
“(d)
Upon the sale or issuance by the Borrower or any of its
Subsidiaries of any of its Equity Interests (including, without
limitation, any conversion or exercise by any Person of any
warrants, options or rights with respect to any such Equity
Interests other than in connection with the Borrower’s Early
Warrant Exercise Program effective as of April 8, 2008, but
not including any sales or issuances of Equity Interests to the
Borrower or any Guarantor), the Borrower shall prepay an aggregate
principal amount of Loans equal to (i) at any time the
Consolidated Leverage Ratio is less than or equal to 2.50 to 1.00
(before giving effect to any prepayment required by this
Section 2.05(d) ), 50% of the Net
3
Cash Proceeds of
such sale or issuance and (ii) at any time the Consolidated
Leverage Ratio is greater than 2.50 to 1.00 (before giving effect
to any prepayment required by this Section 2.05(d) ),
100% of the Net Cash Proceeds of such sale or issuance.
(e)
Upon the receipt by the Borrower or any of its Subsidiaries of any
funds held in an escrow or similar arrangement in connection with,
or pursuant to any document related to, any Acquisition (“
Escrowed Funds ”), the Borrower shall prepay an
aggregate principal amount of Loans equal to 100% of the amount of
such Escrowed Funds.”
(f)
Section 6.01(d) of the Credit Agreement is
amended by replacing such Section in its entirety with the
following:
“(d)
as soon as available, but in any event within 30 days after the end
of each month, an accounts receivable aging report and accounts
payable aging report for the Borrower and each
Subsidiary;”
(g)
Section 6.02(a) of the Credit Agreement is
amended by replacing such Section in its entirety with the
following:
“(a)
beginning with such financial statements for the fiscal year of the
Borrower ending December 31, 2008, concurrently with the
delivery of the financial statements referred to in
Section 6.01(a) a certificate of the Registered
Public Accounting Firm certifying such financial statements and
stating that in making the examination necessary therefor no
knowledge was obtained of any Default under any financial covenant
contained in this Agreement or, if any such Default shall exist,
stating the nature and status of such event;”
(h)
Section 6.02(b) of the Credit Agreement is
amended by replacing such Section in its entirety with the
following:
“(b)
concurrently with the delivery of (i) the financial statements
referred to in Sections 6.01(a) and (b) , a
duly completed Compliance Certificate in the form attached hereto
as Exhibit D-1 and (ii) the reports re
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