Exhibit 4.1(q)
FIRST AMENDMENT TO CREDIT
AGREEMENT
THIS FIRST AMENDMENT TO CREDIT
AGREEMENT dated as of September 11, 2009 (this " Amendment
"), is entered into among VOLT INFORMATION SCIENCES, INC., a New
York corporation (the " Borrower "), the Guarantors party
hereto, the Lenders party hereto and BANK OF AMERICA, N.A., as
Administrative Agent (in such capacity, the " Administrative
Agent "), Swing Line Lender and L/C Issuer. Capitalized terms
used herein and not otherwise defined shall have the meanings
ascribed thereto in the Credit Agreement (defined
below).
RECITALS
A. The
Borrowers, the Guarantors, the Lenders, the Swing Line Lender, the
L/C Issuer and the Administrative Agent entered into that certain
Credit Agreement, dated as of February 28, 2008 (as amended and
modified from time to time, the " Credit Agreement
").
B. The
parties hereto have agreed to amend the Credit Agreement as
provided herein, in order to (among other things) effect certain
amendments thereto and to reflect the joinder, contemporaneously
with the effectiveness of this Amendment, of Volt Delta Resources,
LLC (and certain other members of the former Delta Group) as
Guarantors.
C. In
consideration of the agreements hereinafter set forth, and for
other good and valuable consideration, the receipt and adequacy of
which are hereby acknowledged, the parties hereto agree as
follows.
AGREEMENT
(a)
Section 1.01 . The following definitions appearing in
Section 1.01 of the Credit Agreement are hereby amended to read as
follows:
" Applicable Rate " means the
following percentages per annum, based upon the Consolidated
Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to
Section 7.02(b) :
|
Pricing Tier
|
Consolidated
Leverage Ratio
|
Facility Fee
|
Letters of Credit and
Eurocurrency Rate Loans
|
Base Rate Loans
|
|
|
|
|
|
|
|
I
|
< 1.0:1.0
|
0.25%
|
1.25%
|
0.25%
|
|
II
|
> 1.0:1.0 but < 1.50:1.0
|
0.25%
|
1.50%
|
0.50%
|
|
III
|
> 1.50:1.0 but < 2.0:1.0
|
0.30%
|
1.95%
|
0.95%
|
|
IV
|
> 2.0:1.0 but < 2.50:1.0
|
0.35%
|
2.15%
|
1.15%
|
|
V
|
> 2.50:1.0
|
0.40%
|
2.35%
|
1.35%
|
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
immediately following the date a Compliance Certificate is required
to be delivered pursuant to Section 7.02(b) ;
provided , however , that if a Compliance Certificate
is not delivered when due in accordance with such Section, then
Pricing Tier V shall apply as of the first Business Day after the
date on which such Compliance Certificate was required to have been
delivered and shall continue to apply until the first Business Day
immediately following the date a Compliance Certificate is
delivered in accordance with Section 7.02(b) , whereupon the
Applicable Rate shall be adjusted based upon the calculation of the
Consolidated Leverage Ratio contained in such Compliance
Certificate. Notwithstanding the foregoing, the Applicable Rate in
effect from September 11, 2009 through the first Business Day
immediately following the date a Compliance Certificate is required
to be delivered pursuant to Section 7.02(b)
for the fiscal quarter ending August
2, 2009 shall be determined based upon Pricing Tier III.
" Base Rate " means for any
day a fluctuating rate per annum equal to the highest of (i) the
Federal Funds Rate plus 0.50%, (ii) the rate of interest in effect for
such day as publicly announced from time to time by Bank of America
as its "prime rate" and (iii) except during a Eurocurrency
Unavailability Period, the Eurocurrency Rate plus
1.00%. The "prime rate" is a rate
set by Bank of America based upon various factors including Bank of
America's costs and desired return, general economic conditions and
other factors, and is used as a reference point for pricing some
loans, which may be priced at, above, or below such announced rate.
Any change in the "prime rate" announced by Bank of America shall
take effect at the opening of business on the day specified in the
public announcement of such change.
" Consolidated EBITDA "
means, for any period for the Borrower and its Subsidiaries on a
consolidated basis, an amount equal to Consolidated Net Income for
such period plus (i)
the following to the extent deducted in calculating such
Consolidated Net Income: (a) Consolidated Interest Charges for such
period, (b) the provision for federal, state, local and foreign
income taxes payable by the Borrower and its Subsidiaries for such
period, (c) the amount of depreciation and amortization expense for
such period, (d) extraordinary losses for such period, (e) losses
on the sales of assets outside of the ordinary course of business
for such period and (f) non-recurring restructuring and impairment
charges for such period (provided that the aggregate amount of all
such charges that are incurred after April 30, 2009 and added back
to Consolidated Net Income pursuant to this subclause (f) shall not
exceed $50,000,000 during the term of this Agreement of which no
more than $20,000,000 can consist of cash charges and/or accruals
of or reserves for cash expenses in any future period))
minus (ii) the
following to the extent included in calculating such Consolidated
Net Income: (a) extraordinary gains for such period and (b) gains
on the sales of assets outside of the ordinary course of business
for such period, all as determined in accordance with
GAAP.
" Consolidated Net Income "
means, for any period for the Borrower and its Subsidiaries on a
consolidated basis, the net income for that period.
" Eurocurrency Base Rate "
means,
(a) for
any Interest Period with respect to a Eurocurrency Rate Loan, the
rate per annum equal to the British Bankers Association LIBOR Rate
(" BBA LIBOR "), as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as
designated by the Administrative Agent from time to time) at
approximately 11:00 a.m., London time, two Business Days prior to
the commencement of such Interest Period, for deposits in the
relevant
currency (for delivery on the first
day of such Interest Period) with a term equivalent to such
Interest Period. If such rate is not available at such time for any
reason, then the "Eurocurrency Rate" for such Interest Period shall
be the rate per annum determined by the Administrative Agent to be
the rate at which deposits in the relevant currency for delivery on
the first day of such Interest Period in Same Day Funds in the
approximate amount of the Eurocurrency Rate Loan being made,
continued or converted by Bank of America and with a term
equivalent to such Interest Period would be offered by Bank of
America's London Branch (or other Bank of America branch or
Affiliate) to major banks in the London or other offshore interbank
market for such currency at their request at approximately 11:00
a.m. (London time) two Business Days prior to the commencement of
such Interest Period.
(b)
For any day with respect to an
interest rate calculation for a Base Rate Loan, the rate per annum
equal to (i) BBA LIBOR at approximately 11:00 a.m., London time,
two Business Days prior to such date for Dollar deposits (for
delivery on such day) with a term equivalent to one month or (ii)
if such rate is not available at such time for any reason, the rate
determined by the Administrative Agent to be the rate at which
deposits in Dollars for delivery on such day in same day funds in
the approximate amount of the Base Rate Loan being made, continued
or converted by Bank of America and with a term equivalent to one
month would be offered by Bank of America's London Branch to major
banks in the London interbank eurodollar market at approximately
11:00 a.m. (London time) two Business Days prior to such
day.
" Eurocurrency Rate " means
(a) for any Interest Period with respect to any Eurocurrency Rate
Loan, a rate per annum determined by the Administrative Agent to be
equal to the quotient obtained by dividing (i) the Eurocurrency
Base Rate for such Eurocurrency Rate Loan for such Interest Period
by (ii) one minus the Eurocurrency Reserve Percentage for such
Eurocurrency Rate Loan for such Interest Period and (b) for any day
with respect to any Base Rate Loan bearing interest at a rate based
on the Eurocurrency Rate, a rate per annum determined by the
Administrative Agent to be equal to the quotient obtained by
dividing (i) the Eurocurrency Base Rate for such Base Rate Loan for
such day by (ii) one minus the Eurocurrency Reserve Percentage for
such Base Rate Loan for such day.
" Eurocurrency Rate Loan "
means a Loan that bears interest at a rate based on the
Eurocurrency Rate (other than a Base Rate Loan bearing interest at
a rate based on the Eurocurrency Rate). Eurocurrency Rate Loans may
be denominated in Dollars or in an Alternative Currency. All Loans
denominated in an Alternative Currency must be Eurocurrency Rate
Loans.
" Eurocurrency Reserve
Percentage " means, for any day, the reserve percentage
(expressed as a decimal, carried out to five decimal places) in
effect on such day, whether or not applicable to any Lender, under
regulations issued from time to time by the FRB for determining the
maximum reserve requirement (including any emergency, supplemental
or other marginal reserve requirement) with respect to Eurocurrency
funding (currently referred to as "Eurocurrency liabilities"). The
Eurocurrency Rate for each outstanding Eurocurrency Rate Loan and
for each outstanding Base Rate Loan bearing interest at a rate
based on the Eurocurrency Rate shall be adjusted automatically as
of the effective date of any change in the Eurocurrency Reserve
Percentage.
" Permitted Acquisition "
means an Investment consisting of an Acquisition by the Borrower or
any Subsidiary, provided that (a) the property acquired (or the property of
the Person acquired) in such Acquisition is used or useful in the
same or a similar line of business as the Borrower and its
Subsidiaries were engaged in on the Closing Date (or any reasonable
extensions or expansions thereof), (b) in the case of an
Acquisition of the Equity Interests of another Person, the board of
directors (or other comparable governing body) of such other Person
shall have duly approved such Acquisition, (c) upon giving effect
to such Acquisition, the Loan Parties would be in compliance with
the financial covenants set forth in Section 8.11
on a Pro Forma Basis (and, in the
case of any such Acquisition where the aggregate cash and non-cash
consideration exceeds $5,000,000, the Borrower shall have delivered
to the Administrative Agent a Pro Forma Compliance Certificate),
(d) the representations and warranties made by the Loan Parties in
each Loan Document shall be true and correct in all material
respects at and as if made as of the date of such Acquisition,
except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they shall be
true and correct as of such earlier date (after giving effect
thereto), (e) if such transaction involves the purchase of an
interest in a partnership between any Loan Party as a general
partner and entities unaffiliated with the Borrower as the other
partners, such transaction shall be effected by having such equity
interest acquired by a corporate holding company directly or
indirectly wholly-owned by such Loan Party newly formed for the
sole purpose of effecting such transaction, (f) immediately after
giving effect to such Acquisition, there shall be at least
$40,000,000 of aggregate availability existing under the Aggregate
Revolving Commitments and the Approved Securitization, and (g) the
aggregate cash and non-cash consideration (including any assumption
of Indebtedness, deferred purchase price, any earn-out payments and
Equity Interests issued) paid by the Borrower and its Subsidiaries
for all such Acquisitions occurring during any fiscal yearshall not
exceed $50,000,000.
" Permitted Transfers " means
(a) Dispositions of inventory in the ordinary course of business;
(b) Dis