Exhibit 10.1
SIXTH AMENDMENT
TO AMENDED AND RESTATED FINANCING
AGREEMENT
SIXTH AMENDMENT, dated as of
April 8, 2009 (the “ Sixth Amendment ”), to
the Financing Agreement referred to below, by and among
(i) ENHERENT CORP., a Delaware corporation (the “
Parent ”), and each Subsidiary of Parent listed as a
borrower on the signature pages thereto (together with the Parent,
each, a “ Borrower ” and collectively, the
“ Borrowers ”), and (ii) ABLECO FINANCE
LLC, a Delaware limited liability company (“ Ableco
”) as lender and as agent (in such capacity, the “
Agent ”) for itself and each Person that purchases any
portion of Ableco’s rights and obligations under the
Financing Agreement pursuant to Sections 2.07 and 10.07 thereof
(collectively with Ableco, the “ Lenders
”).
WHEREAS, the Borrowers, the Agent
and the Lenders are parties to the Amended and Restated Financing
Agreement dated as of April 1, 2005 (as amended to date, the
“ Financing Agreement ”), pursuant to which the
Lenders have agreed to make certain term loans and revolving loans
to the Borrowers from time to time in an aggregate principal amount
at any time outstanding not to exceed the aggregate amount set
forth in the Financing Agreement; and
WHEREAS, the Borrowers have
requested that the Agent and the Lenders amend certain provisions
of the Financing Agreement to, among other things,
(a) increase the interest rate applicable to the Terms Loan B
and the Revolving Loans (each as defined in the Financing
Agreement) and (b) modify the financial covenants set forth in
Section 6.03 of the Financing Agreement, all in accordance
with and subject to the terms and conditions set forth
herein;
NOW THEREFORE, in consideration of
the premises and other good and valuable consideration, the parties
hereto hereby agree as follows:
1.1 Definitions . Any
capitalized term used herein and not defined shall have the meaning
assigned to it in the Financing Agreement.
1.2 Amendments to the Financing
Agreement .
(a) Section 1.01 of the
Financing Agreement is hereby amended by adding the following new
definitions in their appropriate alphabetical order, as
follows:
“‘ Funding Losses
’ has the meaning specified therefor in
Section 2.11.”
“‘ Interest
Period ’ means, with respect to each LIBOR Rate Loan, a
period commencing on the date of the making of such LIBOR Rate Loan
(or the continuation of a LIBOR Rate Loan or the conversion of a
Reference Rate Loan to a LIBOR Rate Loan) and ending 1, 2, or 3
months thereafter; provided, however, that (a) if any Interest
Period would end on a day that is not a Business Day, such Interest
Period shall be extended (subject to clauses (c)-(e) below) to
the next succeeding Business Day, (b) interest shall accrue at
the applicable rate based upon the LIBOR Rate from and including
the first day of each Interest Period to, but excluding,
the
day on which any Interest Period
expires, (c) any Interest Period that would end on a day that
is not a Business Day shall be extended to the next succeeding
Business Day unless such Business Day falls in another calendar
month, in which case such Interest Period shall end on the next
preceding Business Day, (d) with respect to an Interest Period
that begins on the last Business Day of a calendar month (or on a
day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period), the Interest
Period shall end on the last Business Day of the calendar month
that is 1, 2 or 3 months after the date on which the Interest
Period began, as applicable, and (e) the Borrowers may not
elect an Interest Period which will end after the Final Maturity
Date.”
“‘ LIBOR ’
means, with respect to each day during each Interest Period
pertaining to a LIBOR Rate Loan, the rate of interest published in
The Wall Street Journal, Eastern Edition, two Business Days prior
to such Interest Period as the “London Interbank Offered
Rate” applicable to such Interest Period. In the event that
The Wall Street Journal, Eastern Edition is not published or such
rate does not appear in The Wall Street Journal, Eastern Edition,
LIBOR shall be the rate determined by the Agent to be the rate at
which deposits in Dollars are offered to major banks in the London
interbank market, two Business Days prior to the beginning of such
Interest Period, in an amount approximately equal to the principal
amount of the LIBOR Rate Loan to which such Interest Period is to
apply and for a period of time comparable to such Interest Period,
which determination shall be conclusive absent manifest
error.”
“‘ LIBOR Deadline
’ has the meaning specified therefor in
Section 2.10.”
“‘ LIBOR Notice
’ means a written notice substantially in the form of
Exhibit A to the Sixth Amendment.”
“‘ LIBOR Option
’ has the meaning specified therefor in
Section 2.09.
“‘ LIBOR Rate
’ means, for each Interest Period for each LIBOR Rate Loan,
the greater of (a) 4.00% and (b) the rate per annum
determined by the Agent (rounded upwards if necessary, to the next
1/100%) by dividing (x) LIBOR for such Interest Period by
(y) 100% minus the Reserve Percentage. The LIBOR Rate shall be
adjusted on and as of the effective day of any change in the
Reserve Percentage.”
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“‘ LIBOR Rate
Loan ’ means each portion of a Loan that bears interest
at a rate determined by reference to the LIBOR
Rate.”
“‘ Reference Rate
Loan ’ means each portion of a Loan that bears interest
at a rate determined by reference to the Reference
Rate.”
“‘ Reserve
Percentage ’ means, on any day, for any Lender, the
maximum percentage prescribed by the Board (or any successor
Governmental Authority) for determining the reserve requirements
(including any basic, supplemental, marginal, or emergency
reserves) that are in effect on such date with respect to
eurocurrency funding (currently referred to as “eurocurrency
liabilities”) of that Lender, but so long as such Lender is
not required or directed under applicable regulations to maintain
such reserves, the Reserve Percentage shall be
zero.”
“‘ Sixth
Amendment ’ means the Sixth Amendment to Amended and
Restated Financing Agreement, dated as of April 8, 2009, by
and among the Borrowers, the Agent and the
Lenders.”
“‘ Sixth Amendment
Effective Date ’ means the later of
(i) April 8, 2009 and (ii) the date on which all of
the conditions precedent set forth in Section 2 of the Sixth
Amendment have been satisfied or waived in
writing.”
(b) The definition of
“Business Day” set forth in Section 1.01 of the
Financing Agreement is hereby amended and restated in its entirety
to read as follows:
“‘ Business Day
’ means (a) any day other than a Saturday, Sunday or
other day on which commercial banks in New York City are authorized
or required to close, and (b) with respect to the borrowing,
payment or continuation of, or determination of interest rate on,
LIBOR Rate Loans, any day that is a Business Day described in
clause (a) above and on which dealings in Dollars may be
carried on in the interbank eurodollar markets in New York City and
London.”
(c) Section 2.04(a) of the
Financing Agreement is hereby amended and restated in its entirety
to read as follows”
“(a) Loans.
(i) Each Revolving Loan shall bear
interest on the principal amount thereof from time to time
outstanding, from the date of such Loan until such principal amount
becomes due, at a rate per annum equal to the Reference Rate plus
(A) at any time prior to the Sixth Amendment Effective Date,
3.00% and (B) at any time thereafter, 4.00%;
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(ii) Subject to the terms of this
Agreement, at the option of the Borrower, the Term Loan B or any
portion thereof shall, commencing on the Sixth Amendment Effective
Date, be either a Reference Rate Loan or a LIBOR Rate Loan. Prior
to the Sixth Amendment Effective Date, the Term Loan B shall bear
interest on the principal amount thereof from time to time
outstanding, from the date the Term Loan B is made until the Sixth
Amendment Effective Date, at a rate per annum equal to 3.00%.
Commencing on the Sixth Amendment Effective Date, each portion of
the Term Loan B that is a Reference Rate Loan shall bear interest
on the principal amount thereof from time to time outstanding, from
the Sixth Amendment Effective Date until repaid or converted, at a
rate per annum equal to the Reference Rate plus 0.25%. Each portion
of the Term Loan B that is a LIBOR Rate Loan shall bear interest on
the principal amount thereof from time to time outstanding, from
the date such portion of the Term Loan B is converted to, or
continued as, a LIBOR Rate Loan until repaid or converted back to a
Reference Rate Loan, at a rate per annum equal to the LIBOR Rate
for the Interest Period in effect for the Term Loan B (or such
portion thereof) plus 4.00%.”
(d) Section 2.05(d) of the
Financing Agreement is hereby amended and restated in its entirety
to read as follows:
“(d) Interest and Fees
. Any prepayment made pursuant to this Section 2.05 shall be
accompanied by (i) accrued interest on the principal amount
being prepaid to the date of prepayment, (ii) any Funding
Losses payable pursuant to Section 2.11 and (iii) if such
prepayment would reduce the amount of the outstanding Loans to zero
at a time when the Revolving Credit Commitment has been terminated,
such prepayment shall be accompanied by the payment of all fees due
but unpaid to such date pursuant to
Section 2.06.”
(e) Article II of the Financing
Agreement is hereby amended by inserting at the end thereof the
following new Section 2.09, Section 2.10,
Section 2.11, Section 2.12 and Section 2.13 to read
as follows:
“ Section 2.09 .
LIBOR Option . In lieu of having interest charged at the
rate based upon the Reference Rate, the Borrowers shall have the
option (the “ LIBOR Option ”) to have interest
on all or a portion of the Term Loan B be charged at a rate of
interest based upon the LIBOR Rate. Interest on LIBOR Rate Loans
shall be payable in accordance with Section 2.04(c). On the
last day of each applicable Interest Period, unless the Borrowers
properly have exercised the LIBOR Option with respect thereto, the
interest
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rate applicable to such LIBOR Rate
Loans automatically shall convert to the rate of interest then
applicable to Reference Rate Loans of the same type hereunder. At
any time that a Default or an Event of Default has occurred and is
continuing, the Borrowers no longer shall have the option to
request that any portion of the Loans bear interest at the LIBOR
Rate and the Agent shall have the right to convert the interest
rate on all outstanding LIBOR Rate Loans to the rate of interest
then applicable to Reference Rate Loans of the same type
hereunder.
Section 2.10 Exercise of
LIBOR Option .
(a) The Borrowers may, at any time
and from time to time, so long as no Default or Event of Default
has occurred and is continuing, elect to exercise the LIBOR Option
by notifying the Agent prior to 11:00 a.m. (New York City time) at
least 5 Business Days prior to (i) the commencement of the
proposed Interest Period or (ii) in the case of the conversion
of a LIBOR Rate Loan into a Reference Rate Loan, the last day of
the then current Interest Period (the “ LIBOR Deadline
”). Notice of the Borrowers’ election of the LIBOR
Option for a permitted portion of the Term Loan B and an Interest
Period pursuant to this subsection (a) shall be made by
delivery to the Agent of a LIBOR Notice received by the Agent
before the LIBOR Deadline, or by telephonic notice received by the
Agent before the LIBOR Deadline (to be confirmed by delivery to the
Agent of a LIBOR Notice received by the Agent prior to 5:00 p.m.
(New York City time) on the same day). Promptly upon its receipt of
each such LIBOR Notice, the Agent shall provide a copy thereof to
each of the Lenders. Each LIBOR Notice shall be irrevocable and
binding on the Borrowers.
(b) Notwithstanding anything to the
contrary contained in this Agreement, the