FIFTH AMENDMENT TO CREDIT
AGREEMENT
This Fifth
Amendment to Credit Agreement (the “ Amendment
”) is made as of December 28, 2005, by and among CERNER
CORPORATION, a Delaware corporation (the “ Borrower
”); U.S. BANK NATIONAL ASSOCIATION, a national banking
association, in its capacity as Administrative Agent, Lead
Arranger, Swingline Lender, Issuing Bank and a Bank; LASALLE BANK
NATIONAL ASSOCIATION, a national banking association, in its
capacity as Documentation Agent and a Bank; COMMERCE BANK, N.A., a
national banking association, in its capacity as a Bank; and UMB
BANK, N.A., a national banking association, in its capacity as a
Bank. Capitalized terms used and not defined hereunder have the
meanings given to them in the Credit Agreement referred to
below.
(a) The
Borrower and the Bank Parties are parties to a Credit Agreement
dated as of May 31, 2002, as amended by (1) a First
Amendment to Credit Agreement dated as of July 22, 2002,
(2) a Second Amendment to Credit Agreement dated as of
April 30, 2003, (3) a Third Amendment to Credit Agreement
dated as of September 1, 2004, and (4) a Fourth Amendment
to Credit Agreement dated as of December 28, 2004 (as so
amended, the “ Credit Agreement ”).
(b) The
Borrower has requested that certain provisions of the Credit
Agreement dealing with the Borrower’s Subsidiaries be amended
in certain respects. The Bank Parties are willing to agree to the
foregoing requests, subject, however, to the terms, conditions and
agreements set forth below.
NOW, THEREFORE,
the parties agree as follows:
1. Removal of Net Worth Restriction on Foreign
Subsidiaries; New Domestic Net Worth Requirement.
Section 6.9(c) of the Credit Agreement is deleted. A new
Section 6.20 is added to the Credit Agreement which reads as
follows:
6.20
Consolidated Net Worth of Cerner and its Domestic
Subsidiaries . The Borrower shall maintain, as of the last day
of each fiscal quarter, a Consolidated Net Worth, for itself and
its Subsidiaries (other than Foreign Subsidiaries), of not less
than $500 million, plus beginning December 31, 2006, 50%
of cumulative Consolidated Net Income (but not loss) since
January 1, 2006 to the most recently ended fiscal year of the
Borrower.
2. Investments in Foreign Subsidiaries.
Section 6.13(f)(5) of the Credit Agreement is deleted and is
replaced by the following:
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(5)
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Investments, at any time after the
Closing Date, by the Borrower or any Guarantor Subsidiary in any
Foreign Subsidiary, provided that,
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(A)
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no
Default or Event of Default then exists or would result therefrom,
and
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(B)
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the
aggregate amount of new Investments in Foreign Subsidiaries made
during any fiscal quarter and the preceding three fiscal quarters
does not exceed 20% of Consolidated Total Assets.
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3. Permitted Investment in Foreign Subsidiary Not Subject
to Section 6.10 Asset Transfer Restrictions; Conforming
Change. Section 6.10(e) of the Credit Agreement is deleted
and is replaced by the following:
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(e)
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any
transfer of assets (1) by any Guarantor Subsidiary to the
Borrower, or (2) by the Borrower to any Guarantor Subsidiary
or by any Guarantor Subsidiary to any other Guarantor Subsidiary,
(3) by the Borrower or any Guarantor Subsidiary to any Foreign
Subsidiary, insofar as such transfer constitutes an Investment
which is permitted under Section 6.13(f)(5) hereof, or
(4) by the Borrower or any Guarantor Subsidiary to any
Subsidiary of the Borrower (other than a Foreign Subsidiary) formed
after the Fourth Amendment Closing Date and who is not then in
default of its obligation to become a Guarantor Subsidiary pursuant
to Section 6.9(b) hereof, provided that, in the case of a
transfer to a Guarantor Subsidiary or any such newly-formed
Subsidiary, (A) no Default or Event of Default then exists or
would result therefrom, and (B) if the transfer of assets
would cause the aggregate amount of all assets transferred to any
of the Guarantor Subsidiaries (and/or to any such newly-formed
Subsidiaries) during such fiscal quarter to exceed 5% of
Consolidated Total Assets, the Borrower gives the Administrative
Agent written notice of the nature and specifics of such transfer
(and all prior transfers during such fiscal quarter) not more than
five Business Days after the date of such transfer.
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4. Transactions with Affiliates. Section 6.15 of
the Credit Agreement is deleted and is replaced by the
following:
6.15.
Transactions With Affiliates . The Borrower shall not, and
shall not permit any of its Subsidiaries to, directly or
indirectly, (a) make any Investment in an Affiliate,
(b) transfer, sell, lease, assign or otherwise dispose of any
assets to an Affiliate, (c) merge or consolidate with or
purchase or acquire any assets from an Affiliate,
(d) Guarantee or assume any obligations of an Affiliate, or
(e) enter into any other transaction directly or indirectly
with or for the benefit of an Affiliate; provided that (1) any
Affiliate who is an individual may serve as a director, officer or
employee of the Borrower, or any of its Subsidiaries and receive
compensation or indemnification in connection with his services in
such capacity, (2) the Borrower or any Subsidiary may enter
into any sale, license, lease or similar transaction with an
Affiliate in the ordinary course of business if the monetary or
business consideration arising therefrom would be not materially
less advantageous to the Borrower or the Subsidiary as the monetary
or business consideration which it would obtain in a comparable
arm’s-length transaction with a similarly situated Person not
an Affiliate, and (3) the prohibitions in subparts
(a) and (d) of this Section 6.15 on transactions
with Affiliates are modified as follows: (A) the prohibitions
do not apply insofar as such Investment or Guarantee, as the case
may be, exists on the Closing Date, and (B) notwithstanding
such prohibitions, (i) the Borrower may Guarantee or assume
any obligations of a Subsidiary (provided that (I)
Fifth Amendment to Credit
Agreement — Page 2
insofar as the
obligations being Guaranteed or assumed include any obligation of
the Subsidiary to pay Indebtedness, the aggregate outstanding
amount of such Guaranteed or assumed Indebtedness does not exceed
$25,000,000 at any time, and (II) the Borrower itself could
have entered into the transaction or transactions giving rise to
the obligations being Guaranteed or assumed without violating any
provision of this Agreement), and (ii) the Borrower may make
such Investments and Guarantee such obligations if the aggregate
outstanding amount of such Investments and such Guaranteed
obligations does not at any time exceed 20% of Consolidated Total
Assets. In addition, the prohibitions in subpart (a) of this
Section 6.15 shall not apply to any Investment permitted under
Section 6.13(f) hereof. Similarly the prohibitions in subpart
(b) of this Section 6.15 shall not apply to any transfer of
assets made in accordance with the provisions of
Section 6.10(e) hereof.
5. Updated Subsidiary Schedule.
(a)
Section 5.12. Section 5.12 of the Credit Agreement is
deleted and is replaced by the following:
5.12.
Subsidiaries . Each of the Subsidiaries listed on
Schedule 5.12 hereto (other than the Foreign Subsidiaries) is
a Wholly-Owned Subsidiary of the Borrower, and the Borrower owns
and has good title to (free and clear of all Liens), and has the
unencumbered right to vote all the ou
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