Exhibit 10.50
AMENDMENT NO. 1 AND LIMITED
WAIVER
TO
AMENDED AND RESTATED CREDIT
AGREEMENT
AMENDMENT NO. 1 AND LIMITED WAIVER
dated as of August 3, 2009 (this “ Amendment
”), to the Amended and Restated Credit Agreement dated as of
May 30, 2008 (the “ Credit Agreement ”),
among HEARTLAND PAYMENT SYSTEMS, INC., a Delaware corporation (the
“ Borrower ”), the LENDERS party thereto and
JPMORGAN CHASE BANK, N.A., as Administrative Agent, Swingline
Lender and Issuing Bank (as such capitalized terms are defined in
the Credit Agreement).
W I T N E S S E T
H:
WHEREAS, the Borrower has requested
that the Lenders, the Administrative Agent, the Swingline Lender
and the Issuing Bank amend and waive certain provisions of the
Credit Agreement, and such parties are willing to so amend and
waive such provisions on the terms and conditions set forth
herein;
NOW, THEREFORE, the parties hereto
agree as follows:
SECTION 1. Defined
Terms . Unless otherwise
specifically defined herein, each term used herein that is defined
in the Credit Agreement has the meaning assigned to such term in
the Credit Agreement.
SECTION 2. Amendments to Article
I . Article I of
the Credit Agreement is hereby amended as follows:
(a) Section 1.01 of the
Credit Agreement is hereby amended by deleting the following
definitions therefrom in their entirety: “ Assessment
Rate ”, “ Base CD Rate ” and “
Three Month Secondary CD Rate ”.
(b) Section 1.01 of the
Credit Agreement is hereby amended by inserting the following
definitions therein in the proper alphabetical order:
“ Amendment No. 1
” shall mean Amendment No. 1 and Limited Waiver dated as
of August 3, 2009, among the Borrower, the Lenders party
thereto and JPMorgan Chase Bank, N.A., as Administrative Agent,
Swingline Lender and Issuing Bank.
“ Amendment No. 1
Effective Date ” shall mean the date on which the
conditions specified in Section 12 of Amendment
No. 1 are satisfied.
“ Collateral ”
means any and all property of the Loan Parties, now existing or
hereafter acquired, that may at any time become subject to a Lien
in favor of the Administrative Agent, on behalf of the Secured
Parties, to secure any Obligations.
“ Collateral Documents
” means, collectively, the Security Agreement, the Service
Center Mortgage and any other security agreement, pledge agreement,
charge, mortgage, deed of trust, instrument or other document
granting a Lien upon any Collateral as security for payment of the
Obligations.
“ Data Security Breach of
2008 ” means the security breach within the
Borrower’s processing system as described in the
Borrower’s Form 8-K and related attachments filed with the
Securities and Exchange Commission on January 20,
2009.
“ Defaulting Lender
” means any Lender, as determined by the Administrative
Agent, that has (a) failed to fund any portion of its Loans or
participations in Letters of Credit or Swingline Loans within three
Business Days of the date required to be funded by it hereunder,
(b) notified the Borrower, the Administrative Agent, the
Issuing Bank, the Swingline Lender or any Lender in writing that it
does not intend to comply with any of its funding obligations under
this Agreement or has made a public statement to the effect that it
does not intend to comply with its funding obligations under this
Agreement or under other agreements in which it commits to extend
credit, (c) failed, within three Business Days after request
by the Administrative Agent, to confirm that it will comply with
the terms of this Agreement relating to its obligations to fund
prospective Loans and participations in then outstanding Letters of
Credit and Swingline Loans, (d) otherwise failed to pay over
to the Administrative Agent or any other Lender any other amount
required to be paid by it hereunder within three Business Days of
the date when due, unless the subject of a good faith dispute, or
(e) (i) become or is insolvent or has a parent company
that has become or is insolvent or (ii) become the subject of
a bankruptcy or insolvency proceeding, or has had a receiver,
conservator, trustee or custodian appointed for it, or has taken
any action in furtherance of, or indicating its consent to,
approval of or acquiescence in any such proceeding or appointment
or has a parent company that has become the subject of a bankruptcy
or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in
furtherance of, or indicating its consent to, approval of or
acquiescence in any such proceeding or appointment.
“ Domestic Subsidiary
” means any Subsidiary organized under the laws of the United
States of America, any State thereof or the District of
Columbia.
“ First-Tier Foreign
Subsidiary ” means any Foreign Subsidiary the Equity
Interests in which are owned directly by (a) the Borrower,
(b) a Domestic Subsidiary that is not a direct or indirect
Subsidiary of a Foreign Subsidiary or (c) any combination of
the foregoing.
“ Foreign Subsidiary
” means any Subsidiary that is not a Domestic
Subsidiary.
“ Loan Parties ”
means, collectively, the Borrower and the Guarantors.
“ Secured Parties
” means the holders from time to time of the
Obligations.
“ Security Agreement
” means that certain Pledge and Security Agreement dated as
of August 3, 2009, among the Loan Parties and the
Administrative Agent, for the benefit of the Secured
Parties.
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“ Service Center
Mortgage ” means a mortgage, deed of trust or similar
instrument executed by the Borrower in favor of the Administrative
Agent, for the benefit of the Secured Parties, encumbering the
Service Center.
(c) The following definitions in
Section 1.01 of the Credit Agreement are hereby amended
and restated in their entirety to read as follows:
“ Alternate Base Rate
” means, for any day, a rate per annum equal to the greatest
of (a) the Prime Rate in effect on such day, (b) the
Federal Funds Effective Rate in effect on such day plus
1
/ 2 of 1% and
(c) the Adjusted LIBO Rate for a one month Interest Period on
such day (or if such day is not a Business Day, the immediately
preceding Business Day) plus 1%, provided that, for the
avoidance of doubt, the Adjusted LIBO Rate for any day shall be
based on the rate appearing on the Reuters Screen LIBOR01 Page (or
on any successor or substitute page) at approximately 11:00 a.m.
London time on such day (without any rounding). Any change in the
Alternate Base Rate due to a change in the Prime Rate, the Federal
Funds Effective Rate or the Adjusted LIBO Rate shall be effective
from and including the effective date of such change in the Prime
Rate, the Federal Funds Effective Rate or the Adjusted LIBO Rate,
respectively.
“ Applicable Margin
” means (a) with respect to the Term Loan, (i) for
Eurodollar Loans, 3.00% and (ii) for ABR Loans, 2.00% and
(b) with respect to a Revolving Loan, the percentage per annum
set forth in the following table, based on the Total Leverage Ratio
then in effect for the Borrower (it being agreed and understood
that on the Amendment No. 1 Effective Date the Applicable
Margin for Revolving Loans is 1.75% for ABR Loans and 2.75% for
Eurodollar Loans).
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Applicable Margin
for ABR Loans
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Applicable Margin
for Eurodollar Loans
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Greater than or equal to 2.0 to 1.0
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2.50
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%
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3.50
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%
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Less than 2.0 to 1.0 and greater than or equal
to 1.5 to 1.0
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2.25
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%
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3.25
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%
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Less than 1.5 to 1.0 and greater than or equal
to 1.0 to 1.0
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2.00
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%
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3.00
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%
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Less than 1.0 to 1.0
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1.75
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%
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2.75
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%
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The Applicable Margin for Revolving
Loans shall be determined in accordance with the foregoing table
based on the Borrower’s most recent annual or quarterly
financial statements delivered pursuant to this Agreement (the
“ Financials ”). Adjustments, if any, to the
Applicable Margin for Revolving Loans shall be effective on the
date that the Administrative Agent has received the applicable
Financials. If the Borrower fails to deliver the Financials to the
Administrative Agent at the time required pursuant to this
Agreement, then the Applicable Margin for Revolving Loans shall be
the highest Applicable Margin set forth in the foregoing table
until the date that such Financials are so delivered.
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“ EBITDA ” means,
for any period, Net Income for such period plus
(a) without duplication and to the extent deducted in
determining Net Income for such period, the sum of
(i) Interest Expense for such period, (ii) expense for
Taxes for such period net of tax refunds, (iii) all FAS 123R
expenses for such period, (iv) all amounts attributable to
depreciation and amortization expense of the Borrower and the
Subsidiaries for such period, (v) charges related to the Data
Security Breach of 2008 in an aggregate amount during the term of
this Agreement not to exceed $200,000,000 and (vi) any
extraordinary losses not related to the Data Security Breach of
2008, minus (b) without duplication and to the
extent included in Net Income, any extraordinary gains, all
calculated for the Borrower and its Subsidiaries on a consolidated
basis in accordance with GAAP.
“ Event of Default
” has the meaning assigned to such term in
Section 7.01 .
“ Facility Fee Rate
” means 0.50% per annum.
“ Guarantors ”
shall mean The Heartland Payroll Company, L.L.C., an Ohio limited
liability company, Debitek, Inc., a Delaware corporation, Heartland
Acquisition, LLC, a Delaware limited liability company, and any
other direct or indirect present or future Domestic Subsidiary of
the Borrower. “ Guarantor ” shall mean any of
the Guarantors.
“ LIBO Rate ”
means, with respect to any Eurodollar Borrowing for any Interest
Period, the rate appearing on the Reuters Screen LIBOR01 Page (or
on any successor or substitute page) at approximately 11:00 a.m.,
London time, two Business Days prior to the commencement of such
Interest Period, as the rate for Dollar deposits with a maturity
comparable to such Interest Period. In the event that such rate is
not available at such time for any reason, then the “LIBO
Rate” with respect to such Eurodollar Borrowing for such
Interest Period shall be the rate at which Dollar deposits of
$5,000,000 and for a maturity comparable to such Interest Period
are offered by the principal London office of the Administrative
Agent in immediately available funds in the London interbank market
at approximately 11:00 a.m., London time, two Business Days prior
to the commencement of such Interest Period.
“ Loan Documents
” means this Agreement, Amendment No. 1, the Guaranties,
the Collateral Documents, the Promissory Notes, the Letters of
Credit, any Letter of Credit applications and any other document
executed in connection herewith now or hereafter, as any of the
foregoing may hereafter be amended, supplemented, modified,
renewed, or extended.
“ Material Adverse
Effect ” means a material adverse effect on (i) the
business, assets, property or condition (financial or otherwise) of
the Borrower and the Subsidiaries taken as a whole, (ii) the
validity or enforceability of any of the Loan Documents or the
rights or remedies of the Administrative Agent and the Lenders
thereunder or (iii) the Collateral, or the Administrative
Agent’s Liens on the Collateral or the priority of such
Liens. Notwithstanding anything to the contrary set forth herein,
in no event shall the Data Security Breach of 2008, or any event or
events leading thereto, resulting therefrom or proximately caused
thereby, be deemed to constitute a Material Adverse
Effect.
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“ Statutory Reserve
Rate ” means a fraction (expressed as a decimal), the
numerator of which is the number one and the denominator of which
is the number one minus the aggregate of the maximum reserve
percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal established by the
Board to which the Administrative Agent is subject for eurocurrency
funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of the Board). Such reserve
percentages shall include those imposed pursuant to such Regulation
D. Eurodollar Loans shall be deemed to constitute eurocurrency
funding and to be subject to such reserve requirements without
benefit of or credit for proration, exemptions or offsets that may
be available from time to time to any Lender under such Regulation
D or any comparable regulation. The Statutory Reserve Rate shall be
adjusted automatically on and as of the effective date of any
change in any reserve percentage.
“ Subordinated
Indebtedness ” of a Person means any Indebtedness of such
Person that matures no earlier than March 31, 2013, the
payment of which is subordinated to the Obligations to the written
satisfaction of the Administrative Agent.
“ Transactions ”
means the execution, delivery and performance by the Borrower of
this Agreement, the borrowing of Loans, the use of the proceeds
thereof, the issuance of Letters of Credit hereunder and the
granting of Liens pursuant to the Collateral Documents.
(d) Clause (e) of the
definition of Permitted Encumbrances in Section 1.01 of
the Credit Agreement is hereby amended to replace the reference
therein to the term “ Article VII ” with a
reference to “ Section 7.01 ”.
(e) Section 1.04 of the
Credit Agreement is hereby amended by (i) inserting the
parenthetical “(including Capital Lease Obligations)”
immediately following the phrase “all terms of an accounting
or financial nature” and (ii) adding the following
proviso at the end of such Section 1.04 :
“; provided ,
further , that if for purposes of determining the
outstanding amount of any Indebtedness (including, for the
avoidance of doubt, any determination of Funded Debt), (x) any
election by the Borrower to measure an item of Indebtedness using
fair value (as permitted by SFAS 159 issued by the Financial
Accounting Standards Board in February 2007, or any similar
accounting standard) shall be disregarded and such determination
shall be made as if such election had not been made and
(y) any original issue discount with respect to such
Indebtedness shall not be deducted in determining the outstanding
amount of such Indebtedness”.
SECTION 3. Amendments to Article
II . Article II of
the Credit Agreement is hereby amended as follows:
(a) Section 2.05(j) of
the Credit Agreement is hereby amended to replace the reference
therein to the term “ Article VII ” with a
reference to “ Section 7.01 ”.
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(b) Sections 2.11(a) and
2.11(b) of the Credit Agreement are amended to replace each
reference therein to the term “ Article VII ”
with a reference to “ Section 7.01 ”.
(c) Section 2.16 of the
Credit Agreement erroneously includes two clauses numbered
“(d)”; the second clause “(d)” of
Section 2.16 of the Credit Agreement is hereby
re-numbered as clause “(e)” and the existing clause
“(e)” of Section 2.16 of the Credit
Agreement is hereby re-numbered as clause
“(f)”.
(d) Article II of the Credit
Agreement is hereby amended to add the following
Section 2.19 thereto:
“SECTION 2.19. Defaulting
Lenders . Notwithstanding any provision of this Agreement to
the contrary, if any Revolving Credit Lender becomes a Defaulting
Lender, then the following provisions shall apply for so long as
such Revolving Credit Lender is a Defaulting Lender:
(a) if any Swingline Exposure or LC
Exposure of a Defaulting Lender exists, until the time when the
Revolving Credit Lender is no longer a Defaulting Lender, the
Borrower shall, within one Business Day following notice by the
Administrative Agent, (i) prepay such Swingline Exposure or,
if agreed by the Swingline Lender, cash collateralize the Swingline
Exposure of such Defaulting Lender on terms satisfactory to the
Swingline Lender and (ii) cash collateralize such Defaulting
Lender’s LC Exposure in accordance with the procedures set
forth in Section 2.05(j) for so long as such LC
Exposure is outstanding;
(b) the Swingline Lender shall not
be required to fund any Swingline Loan and the Issuing Bank shall
not be required to issue, amend or increase any Letter of Credit
unless it is satisfied that cash collateral will be provided by the
Borrower in accordance with Section 2.19(a)
;
(c) other than as expressly set
forth in this Section 2.19 , the rights and obligations
of a Defaulting Lender (including the obligation to indemnify the
Administrative Agent) and the other parties hereto shall remain
unchanged. Nothing in this Section 2.19 shall be deemed
to release any Defaulting Lender from its obligations under this
Agreement and the Loan Documents, shall alter such obligations,
shall operate as a waiver of any default by such Defaulting Lender
hereunder, or shall prejudice any rights which Borrower, the
Administrative Agent, the Issuing Bank, the Swingline Lender or any
Lender may have against any Defaulting Lender as a result of any
default by such Defaulting Lender hereunder; and
(d) In the event a Defaulting Lender
retroactively cures to the satisfaction of the Administrative Agent
the breach which caused a Lender to become a Defaulting Lender,
such Defaulting Lender shall no longer be a Defaulting Lender and
shall be treated as a Lender under this
Agreement.”
SECTION 4. Amendments to Article
III . Article III
of the Credit Agreement is hereby amended as follows:
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(a) Section 3.02 of the
Credit Agreement is hereby amended and restated in its entirety as
follows:
“SECTION 3.02.
Authorization; Enforceability .
(a) The Transactions are within the
Borrower’s corporate powers and have been duly authorized by
all necessary corporate and, if required, stockholder action. This
Agreement and each other Loan Document to which the Borrower is a
signatory has been duly executed and delivered by the Borrower and
constitutes a legal, valid and binding obligation of the Borrower,
enforceable in accordance with its terms, subject to applicable
bankruptcy, insolvency, reorganization, moratorium or other laws
affecting creditors’ rights generally and subject to general
principles of equity, regardless of whether considered in a
proceeding in equity or at law.
(b) Each of the Guaranties and other
Loan Documents to which a Guarantor is a signatory is within the
corporate or other similar organizational powers of the Guarantor
that is a signatory thereto and has been duly authorized by all
necessary corporate or other similar organizational powers and, if
required, stockholder or other similar action. Each of the
Guaranties and other Loan Documents to which a Guarantor is a
signatory has been duly executed and delivered by the Guarantor
that is a signatory thereto and constitutes a legal, valid and
binding obligation of such Guarantor, enforceable in accordance
with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium or other laws affecting creditors’
rights generally and subject to general principles of equity,
regardless of whether considered in a proceeding in equity or at
law.”
(b) Section 3.03 of the
Credit Agreement is hereby amended and restated in its entirety as
follows:
“SECTION 3.03. Governmental
Approvals; No Conflicts . The Transactions, the Guaranties and
the other Loan Documents (a) do not require any consent or
approval of, registration or filing (other than financing
statements) with, or any other action by, any Governmental
Authority, except such as have been obtained or made and are in
full force and effect and except for other obligations to be
completed pursuant to Section 5.11 hereof,
(b) will not violate any applicable law or regulation or the
charter, by-laws or other organizational documents of the Borrower
or any of its Subsidiaries or any order of any Governmental
Authority, (c) will not violate or result in a default under
any indenture, agreement or other instrument binding upon the
Borrower or any of its Subsidiaries or its assets, or give rise to
a right thereunder to require any payment to be made by the
Borrower or any of its Subsidiaries (except for payments made
pursuant to and in connection with this Agreement, the Guaranties,
and the other Loan Documents), and (d) will not result in the
creation or imposition of any Lien on any asset of the Borrower or
any of its Subsidiaries, except for the Liens created by the
Collateral Documents.”
(c) Article III of the Credit
Agreement is hereby amended to add the following
Section 3.12 thereto:
“SECTION 3.12.
Collateral . The provisions of the Collateral Documents are
effective to create in favor of the Administrative Agent for the
benefit of the Secured Parties a legal, valid and enforceable first
priority Lien (subject to Liens permitted by
Section 6.02 ) on all right, title and interest of the
respective Loan Parties in the Collateral described
therein.”
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SECTION 5. Amendments to Article
V . Article V of
the Credit Agreement is hereby amended as follows:
(a) Section 5.05 of the
Credit Agreement is hereby amended and restated in its entirety as
follows:
“SECTION 5.05. Maintenance
of Properties; Insurance . The Borrower will, and will cause
each of its Subsidiaries to, (a) keep and maintain all
property material to the conduct of its business in good working
order and condition, ordinary wear and tear excepted, and
(b) maintain, with financially sound and reputable insurance
companies, insurance in such amounts and against such risks as are
customarily maintained by companies engaged in the same or similar
businesses operating in the same or similar locations, and
providing (i) for payment of losses to the Administrative
Agent as its interests may appear, (ii) that such policies may
not be canceled or reduced or affected in any material adverse
manner for any reason without 30 days prior notice to the
Administrative Agent, and (iii) that the Lenders and the
Administrative Agent are additional insureds
thereunder.”
(b) Article V of the Credit
Agreement is hereby amended to add the following Sections
5.10 and 5.11 thereto:
“SECTION 5.10. Additional
Collateral; Further Assurances .
(a) Upon the formation or
acquisition of any Domestic Subsidiary of the Borrower (other than
a Domestic Subsidiary that is a direct or indirect Subsidiary of a
Foreign Subsidiary), the Borrower shall, within 15 days after such
formation or acquisition (or such later date as the Administrative
Agent may agree in its sole discretion):
(i) cause such Domestic Subsidiary
to become a Guarantor by executing and delivering to the
Administrative Agent a Guaranty, whereby such Domestic Subsidiary
shall guarantee the obligations of the Loan Parties under the Loan
Documents;
(ii) (A) cause such Domestic
Subsidiary to become a grantor under the Security Agreement by
executing and delivering to the Administrative Agent a supplement
to the Security Agreement in the form specified therein, whereby
such Domestic Subsidiary shall grant a security interest to the
Administrative Agent in all of its assets constituting Collateral
under the Security Agreement to secure the Obligations, and
(B) take whatever action (including delivering properly
completed Uniform Commercial Code financing statements) that may be
necessary or advisable in the reasonable opinion of the
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Administrative Agent to grant to the
Administrative Agent, for the benefit of the Secured Parties, a
first priority (subject to Liens permitted by
Section 6.02 ) perfected security interest in the
assets of such Domestic Subsidiary purported to be subject to the
Security Agreement;
(iii) (A) cause all of the Equity
Interests owned by the Borrower and its Subsidiaries in such
Domestic Subsidiary to be pledged to the Administrative Agent to
secure the Obligations by causing the direct owners of such Equity
Interests to execute and deliver to the Administrative Agent a
supplement to the Security Agreement, (B) deliver or cause to
be delivered to the Administrative Agent all certificates and
undated stock powers duly executed in blank (to the extent the
Equity Interests of such Domestic Subsidiary are certificated) and
other documents required by the Security Agreement with respect to
such Equity Interests and (C) take or cause to be taken such
other actions as may be necessary to provide the Administrative
Agent with a first priority perfected pledge of and security
interest in such Equity Interests; and
(iv) deliver to the Administrative
Agent documents of the types referred to in
Section 12(i) of Amendment No. 1 with respect to
such Domestic Subsidiary and, if requested by the Administrative
Agent, favorable opinions of counsel (which shall cover, among
other things, the legality, validity, binding effect,
enforceability, creation and perfection of the documentation
referred to in subclauses (i), (ii) and (iii) above), all
in form, content and scope reasonably satisfactory to the
Administrative Agent.
(b) Upon the formation or
acquisition of any First-Tier Foreign Subsidiary of the Borrower,
the Borrower shall, within 30 days after such formation or
acquisition (or such later date as the Administrative Agent may
agree in its sole discretion):
(i) (A) cause 65% of the Equity
Interests owned by the Borrower and its Subsidiaries in such
First-Tier Foreign Subsidiary to be pledged to the Administrative
Agent to secure the Obligations by causing the direct owners of
such Equity Interests to execute and deliver to the Administrative
Agent a pledge agreement or similar agreement in form and substance
reasonably satisfactory to the Administrative Agent,
(B) deliver or cause to be delivered to the Administrative
Agent certificates representing such Equity Interests and
corresponding stock powers (to the extent the Equity Interests of
such First-Tier Foreign Subsidiary are certificated) and other
documents required by such agreement with respect to such Equity
Interests and (C) take or cause to be taken such other actions
as may be necessary to provide the Administrative Agent with a
first priority perfected pledge of and security interest in such
Equity Interests; and
(ii) deliver to the Administrative
Agent documents of the types referred to in
Section 12(i) of Amendment No. 1 with respect to
such First-Tier Foreign Subsidiary and, if requested by the
Administrative Agent, favorable opinions of counsel (which shall
cover, among other things, the legality, validity,
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binding effect, enforceability,
creation and perfection of the documentation referred to in
subclause (i) above), all in form, content and scope
reasonably satisfactory to the Administrative Agent.
(c) Without limiting the foregoing,
the Borrower will, and will cause each of its Subsidiaries to,
promptly execute and deliver, or cause to be executed and delivered
(but in any event within thirty days after request therefor, or
such later date as the Administrative Agent may agree in its sole
discretion), to the Administrative Agent such documents, agreements
and instruments, and will take or cause to be taken such further
actions (including the filing and recording of financing
statements, fixture filings and other documents and such other
actions or deliveries of the type required by
Section 12 of Amendment No. 1 and the Security
Agreement, as applicable), which may be required by law or which
the Administrative Agent may, from time to time, reasonably request
to carry out the terms and conditions of this Agreement and the
other Loan Documents and to ensure perfection and priority of the
Liens created or intended to be created by the Collateral
Documents, all at the expense of the Loan Parties, it being the
intent of the parties hereto for the Administrative Agent, for the
benefit of the Secured Parties, to at all times on and after the
Amendment No. 1 Effective Date have a first priority (subject
to Liens permitted by Section 6.02 ) perfected Lien on
all of the personal property and material real property (excluding
(i) 35% of the Capital Stock owned by the Borrower and its
Subsidiaries in any First-Tier Foreign Subsidiary,
(ii) deposit accounts used solely for Payroll Deposits, remote
deposit capture processing accounts and card processing accounts,
(iii) the items specifically excluded from the definition of
Collateral in the Security Agreement, and (vi) other items
approved by the Administrative Agent in its sole discretion) of the
Borrower and its Domestic Subsidiaries.
(d) With respect to any fee interest
in any real property with a reasonably estimated fair market value
of $5,000,000 or more, owned or acquired by the Borrower or any
other Loan Party, the Borrower or the applicable Loan Party shall
promptly (and, in any event, within thirty days following the date
of the Amendment No. 1 Effective Date or such acquisition, as
applicable) (i) execute and deliver a first priority mortgage,
deed of trust or other similar document (subject only to Liens
permitted by Section 6.02 of this Agreement) in favor
of the Administrative Agent, for the benefit of the Secured
Parties, covering such real property and complying with the
provisions herein and in the Collateral Documents, (ii) if
requested by the Administrative Agent, provide the Secured Parties
with title insurance in an amount at least equal to the purchase
price of such Real Property (or such other amount as the
Administrative Agent shall reasonably specify), and if applicable,
flood insurance and lease estoppel certificates, all in form and
substance reasonably satisfactory to the Administrative Agent,
(iii) if requested by the Administrative Agent, deliver to the
Administrative Agent a survey of such real property, which shall be
in form and substance satisfactory to the Administrative Agent,
(iv) if requested by the Administrative Agent, deliver to the
Administrative Agent legal opinions relating to the matters
described in clause (i) above, which opinions shall be in form
and substance, and from counsel, reasonably satisfactory to the
Administrative Agent and (v) if requested by the
Administrative Agent, use commercially reasonable efforts to obtain
collateral access and Lien subordination agreements for each
location (other than a location that is owned by the Borrower or
another Loan Party) where any
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Collateral with an aggregate fair
market value in excess of $250,000 is maintained, such agreements
to be in form and substance reasonably satisfactory to the
Administrative Agent, executed by the owner of each such location.
Notwithstanding the foregoing, the parties hereto acknowledge and
agree that items (ii) and (iii) shall not initially be
required with respect to the Service Center Mortgage, but the
Administrative Agent retains the right to request such items in the
future, and the Borrower shall promptly (but in any event within
sixty days after request therefor) comply with any such
request.
SECTION 5.11. Amendment
No. 1 Post Closing Obligations . The Borrower will
(a) execute and deliver, or cause to be executed and
delivered, the documents and (b) complete, or cause to be
completed, the tasks set forth on Schedule 5.11 attached to
Amendment No. 1, in each case within the time limits specified
on such schedule. Notwithstanding anything to the contrary
contained herein or in any other Loan Document, the deadlines for
the delivery of documents and completion of tasks set forth on
Schedule 5.11 shall preempt any contradictory deadlines for
the delivery or completion of such tasks set forth herein or in any
other Loan Document.”
SECTION 6. Amendments to Article
VI . Article VI of
the Credit Agreement is hereby amended as follows:
(a) Clause (c) of
Section 6.01 of the Credit Agreement is hereby amended
and restated in its entirety as follows:
“(c) Indebtedness of the
Borrower to any Subsidiary and of any Subsidiary to the Borrower or
any other Subsidiary, provided that any loan or advance
related to such Indebtedness is permitted by
Section 6.04 ;”
(b) Schedule 6.02 attached to
the Credit Agreement is hereby replaced in its entirety with
Schedule 6.02 attached to Amendment No. 1.
(c) Subclause (ii) in clause
(a) of Section 6.03 of the Credit Agree