Exhibit 10.32
FIRST AMENDMENT
TO
FOURTH AMENDED AND RESTATED
LOAN AGREEMENT
This First Amendment to Fourth Amended and
Restated Loan Agreement (this “ First Amendment
”) is made as of the 31 day of December, 2008, by and
among
Brown Brothers Harriman & Co., as
Administrative Agent (hereinafter, the “ Administrative
Agent ”), a general partnership organized under the laws
of the State of New York with offices at 40 Water Street, Boston,
Massachusetts 02109; and
TD Bank, N.A., as Documentation Agent
(hereinafter, the “ Documentation Agent ”) a
national banking association with offices at 7 New England
Executive Park, Burlington, Massachusetts 01803; and
Bank of America, N.A., as
Syndication Agent (hereinafter, the “ Syndication
Agent ”), and, together with the Administrative Agent and
the Documentation Agent, the “ Agents ”), a
national banking association with offices at 100 Federal Street,
Boston, Massachusetts 02110,
as Agents on
behalf of Brown Brothers Harriman & Co., TD Bank, N.A., Bank of
America, N.A., and the other financial institutions which may
hereafter become lenders to the Loan Agreement (as defined below)
(each such party a “ Lender ” and collectively
the “ Lenders ”),
Dynamics Research Corporation (hereinafter, the
“ Lead Borrower ”), a Massachusetts corporation,
with its principal executive offices at 60 Frontage Road, Andover,
Massachusetts, as agent for itself and each of
DRC International Corporation (“
International ”), a Massachusetts corporation with its
principal executive offices at 60 Frontage Road, Andover,
Massachusetts;
H.J. Ford Associates, Inc. (“ H.J.
Ford ”), a Delaware corporation with its principal
executive offices at 60 Frontage Road, Andover, Massachusetts;
and
Kadix Systems, LLC (“ Kadix
”), a Virginia limited liability company with its principal
executive offices at 60 Frontage Road, Andover,
Massachusetts.
(Each of the Lead Borrower, International, H.J.
Ford, and Kadix being sometimes hereinafter referred to
individually as a “ Borrower ” and collectively
as the “ Borrowers ”).
Preliminary Statements
WHEREAS, the Borrowers, the Lenders and the
Agents are parties to a certain Fourth Amended and Restated Loan
Agreement dated as of August 1, 2008 (as may be amended and in
effect from time to time, the “ Loan Agreement
”);
WHEREAS, the Borrowers have requested that the
parties hereto amend the Loan Agreement to modify certain
provisions of the Loan Agreement;
and
- 1 -
WHEREAS, the Agents and the Lenders each agree
to modify and amend certain provisions of the Loan Agreement,
subject to the terms and conditions set forth herein;
NOW THEREFORE, as an additional inducement for
the Lenders to maintain the credit facilities on the terms and
conditions set forth in the Loan Agreement as amended hereby, and
for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, each of the Borrowers
herby covenant and agree with the Agents and the Lenders as
follows:
1.
Definitions . Capitalized terms used herein and
not otherwise defined herein shall have the meanings assigned
to such terms in the Loan Agreement.
2.
Amendments to Loan Agreement .
|
|
|
Article 1 of
the Loan Agreement is hereby amended by deleting the following
definitions of “2008 Reserve” and “EBITDA”
contained therein:
|
““
2008 Reserve ”: is defined in Section 8-10.
“
EBITDA ”: for any period, the Consolidated Net Income
of the Lead Borrower and its Subsidiaries for such period adjusted
by adding back thereto amounts deducted in computing such
Consolidated Net Income in respect of each of (a) Consolidated
Interest Expense, (b) provision for taxes in respect of income and
profits of the Lead Borrower and its Subsidiaries, (c) depreciation
and amortization of the Lead Borrower and its Subsidiaries, and (d)
other non-cash expenses incurred pursuant to employee equity
compensation plans approved by Borrower’s board of directors,
each as determined in accordance with GAAP; provided ,
however , the calculation of Consolidated Net Income for the
periods ending September 30, 2008 and December 31, 2008 shall not
include the 2008 Reserve.”
and
substituting the following text therefore:
““
2008 Reserve ”: is that certain pre-tax charge
incurred in connection with the resolution of certain litigation
involving the Lead Borrower, as more particularly described in
EXHIBIT 6-17 hereof; provided , that solely for
purposes of calculating EBITDA when determining (i) the Fixed
Charge Coverage Ratio in Section 8-7 and (ii) the Leverage Ratio in
Section 8-9, in each case for the quarterly periods listed below,
such 2008 Reserve shall not exceed the following for the
measurement periods indicated:
|
Trailing Four
Quarter
Period Ended
|
Maximum 2008 Reserve
Amount
|
|
|
|
|
|
|
|
|
|
|
|
|
- 2 -
“
EBITDA ”: for any period, the Consolidated Net Income
of the Lead Borrower and its Subsidiaries for such period adjusted
by adding back thereto amounts deducted in computing such
Consolidated Net Income in respect of each of (a) Consolidated
Interest Expense, (b) provision for taxes in respect of income and
profits of the Lead Borrower and its Subsidiaries, (c) depreciation
and amortization of the Lead Borrower and its Subsidiaries, (d)
other non-cash expenses incurred pursuant to employee equity
compensation plans approved by Borrower’s board of directors,
and (e) the applicable 2008 Reserve, if any, actually incurred,
each as determined in accordance with GAAP.”
|
|
|
Section 6.27(b)
of the Loan Agreement is hereby amended by deleting the following
text appearing therein in its entirety:
|
“(b) The
Borrowers do not have any contingent obligations or obligation
under any Lease or Capital Lease which is not noted in the
Borrowers’ financial statements furnished to the Lenders or
has been otherwise disclosed in writing to the Lenders prior to the
execution of this Agreement.”
and
substituting the following text therefore:
“(b) The
Borrowers do not have any contingent obligations, other than the
2008 Reserve, or obligation under any Lease or Capital Lease which
is not noted in the Borrowers’ financial statements furnished
to the Lenders or has been otherwise disclosed in writing to the
Lenders prior to the execution of this Agreement.”
|
|
|
Section 8.10 of
the Loan Agreement is hereby amended by deleting the following text
appearing therein in its entirety:
|
“8-10
Net Profit . The Borrowers shall earn a minimum
Consolidated Net Income, as determined in accordance with GAAP, of
at least $1.00, measured quarterly as of the end of each fiscal
quarter of each fisca
|