Exhibit 10.2
FIFTH AMENDMENT TO
CREDIT AGREEMENT
This FIFTH AMENDMENT TO CREDIT
AGREEMENT (“ Amendment ”) is entered into as of
August 6, 2008, among Planar Systems, Inc., an Oregon
corporation (the “ Borrower ”), each lender from
time to time party hereto (collectively, the “ Lenders
” and individually, a “ Lender ”), and
BANK OF AMERICA, N.A. , as Agent.
RECITALS
A. Borrower, Agent and Lender are
parties to that certain Credit Agreement entered into as of
December 16, 2003, as amended by a First Amendment to Credit
Agreement entered into as of December 21, 2004, a Second
Amendment to Credit Agreement entered into as of October 21,
2005, a Third Amendment to Credit Agreement dated as of
May 23, 2007, and a Waiver and Fourth Amendment to Credit
Agreement entered into as of December 10, 2007 (the “
Credit Agreement ”). Bank of America, N.A. is the sole
Lender as of the date of this Amendment.
B. Borrower has requested that Agent
and Lender agree to amend the Credit Agreement as set forth herein.
Borrower, Agent and Lender have agreed to do so.
NOW THEREFORE, the parties agree as
follows:
AGREEMENT
1. Recitals . The Recitals
are true.
2. Definitions . Capitalized
terms used herein and not otherwise defined shall have the meanings
given in the Credit Agreement.
3. Amendment to the Definition of
“Applicable Rate” in Section 1.01 of the Credit
Agreement . The definition of “Applicable Rate” in
Section 1.01 of the Credit Agreement is amended in its
entirety to read:
“ Applicable Rate
” means from time to time the following percentages per
annum, based upon the Fixed Charge Coverage Ratio as set forth in
the most recent Compliance Certificate received by Agent pursuant
to Section 6.02(a) :
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Pricing
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Fixed Charge
Coverage
Ratio
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Commitment Fee
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Eurodollar Rate
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Letters of Credit
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Base Rate
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1
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< 1.5:1.0
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0.30
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%
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1.75
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%
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1.75
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%
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0
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%
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2
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> 1.5:1.0 but < 2.0:1.0
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0.25
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%
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1.50
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%
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1.50
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%
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0
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%
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3
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> 2.0:1.0
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0.25
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%
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1.25
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%
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1.25
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%
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-0.25
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%
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Page 1 – FIFTH AMENDMENT TO
CREDIT AGREEMENT
Any increase or decrease in the
Applicable Rate resulting from a change in the Fixed Charge
Coverage Ratio shall become effective commencing on the first
Business Day of the month following the date a Compliance
Certificate is delivered pursuant to Section 6.02(a) ;
provided , however , that if no Compliance
Certificate is delivered when due in accordance with such Section,
then Pricing Level 1 shall apply as of the first Business Day of
the month following the date such Compliance Certificate was
required to have been delivered and shall continue in effect until
the first Business Day of the month following the date such
Compliance Certificate is in fact delivered. Pricing Level 1 shall
apply through the 1st Business Day of the month following the date
a Compliance Certificate is delivered after September 26,
2008.
4. Amendment to the Definition of
“Fixed Charge Coverage Ratio” in Section 1.01 of
the Credit Agreement . The definition of “Fixed Charge
Coverage Ratio” in Section 1.01 of the Credit Agreement
is amended in its entirety to read:
“ Fixed Charge Coverage
Ratio ” means, as of any date of determination, the ratio
of (a) EBITDA for the period of one prior fiscal quarter most
recently ended, minus taxes paid in cash during such period, to
(b) the sum of (i) interest charges actually paid in cash
during such period plus (ii) principal payments scheduled to
have been paid during such period on Funded Debt (not including
payments required by Section 2.05(b)), plus (iii) cash
payments required to be made during such period on any Swap
Contract, reduced by cash receipts during such period from any Swap
Contract, plus (iv) cash expenditures for fixed assets net of
disposition of fixed assets.
5. Amendment to the Definition of
“Maturity Date” in Section 1.01 of the Credit
Agreement. The definition of Maturity Date in Section 1.01
of the Credit Agreement is amended in its entirety to
read:
“ Maturity Date ”
means December 1, 2009.
6. Amendment to Section 1.01
of the Credit Agreement to Add Definitions. Section 1.01
of the Credit Agreement is amended to add the following definitions
in proper alphabetical order:
“ Intangible Assets
” means assets that are considered to be intangible assets
under GAAP, including customer lists, goodwill, computer software,
copyrights, trade names, trademarks, patents, franchises, licenses,
unamortized deferred charges, unamortized debt discount and
capitalized research and development costs.
“ Shareholders’
Equity ” means, as of any date of determination,
consolidated shareholders’ equity of the Borrower and its
Subsidiaries as of that date determined in accordance with
GAAP.
Page 2 – FIFTH AMENDMENT TO
CREDIT AGREEMENT
“ Tangible Net Worth
” means, as of any date of determination, for the Borrower
and its Subsidiaries on a consolidated basis, Shareholders’
Equity of the Borrower and its Subsidiaries on that date
minus the Intangible Assets of the Borrower and its
Subsidiaries on that date.
7. Amendment to
Section 6.12(a) of the Credit Agreement .
Section 6.12(a) of the Credit Agreement is amended in its
entirety to read:
(a) Tangible Net Worth .
Maintain Tangible Net Worth as of the end of each fiscal quarter
beginning with the fiscal quarter ending in September 2008 equal
to