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WAIVER AND AMENDMENT AGREEMENT NO. 3

Waiver Agreement

WAIVER AND AMENDMENT AGREEMENT NO. 3 | Document Parties: HARRIS INTERACTIVE INC | GSBC Ohio Corporation | Harris Decima Inc | HSBC BANK USA, NATIONAL ASSOCIATION | JPMORGAN CHASE BANK, NATIONAL ASSOCIATION | NATIONAL CITY BANK You are currently viewing:
This Waiver Agreement involves

HARRIS INTERACTIVE INC | GSBC Ohio Corporation | Harris Decima Inc | HSBC BANK USA, NATIONAL ASSOCIATION | JPMORGAN CHASE BANK, NATIONAL ASSOCIATION | NATIONAL CITY BANK

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Title: WAIVER AND AMENDMENT AGREEMENT NO. 3
Governing Law: New York     Date: 5/7/2009
Industry: Business Services     Law Firm: Harris Beach     Sector: Services

WAIVER AND AMENDMENT AGREEMENT NO. 3, Parties: harris interactive inc , gsbc ohio corporation , harris decima inc , hsbc bank usa  national association , jpmorgan chase bank  national association , national city bank
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Exhibit 10.1

WAIVER AND AMENDMENT AGREEMENT NO. 3

to that certain

CREDIT AGREEMENT

     This WAIVER AND AMENDMENT AGREEMENT NO. 3 TO THAT CERTAIN CREDIT AGREEMENT (this “ Amendment ”) dated as of May 6, 2009, among (a) HARRIS INTERACTIVE INC. (the “ Borrower ”), (b) JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as administrative agent (the “ Administrative Agent ”) for itself and the other lenders (the “ Lenders ”) who are or may become party to the Credit Agreement dated as of September 21, 2007 (as amended, restated, supplemented or otherwise modified, and in effect from time to time, the “ Credit Agreement ”) among the Borrower, the Administrative Agent and the Lenders; and (c) the Lenders signatory hereto.

      WHEREAS , the Borrower, the Lenders and the Administrative Agent are parties to the Credit Agreement, pursuant to which the Lenders, upon certain terms and conditions, have agreed to make Loans to, and the Issuing Bank, upon certain terms and conditions, has agreed to issue Letters of Credit for the benefit of, the Borrower;

      WHEREAS, Events of Default have occurred and continue as a result of the Borrower’s failure to comply with the covenants contained in Section 5.2(e) of the Credit Agreement (as to matters disclosed to the Administrative Agent and the Lenders), Section 5.3 of the Credit Agreement (with respect to the articles of incorporation of GSBC Ohio Corporation), Section 6.1(c) of the Credit Agreement (as a result of intercompany loans made to Harris Decima Inc. and to Marketshare Limited), Section 6.9(a) of the Credit Agreement for the periods ended December 31, 2008 and March 31, 2009, and Section 6.9(b) of the Credit Agreement for the periods ended December 31, 2008 and March 31, 2009 (collectively, the “Specified Events of Default”);

      WHEREAS, the Borrower has requested, among other things, that the Lenders and Administrative Agent (a) waive the Specified Events of Default, and (b) amend the Credit Agreement as provided more fully herein below; and

      WHEREAS, the Lenders and the Administrative Agent are willing (a) to waive the Specified Events of Default, subject to the terms, conditions and other provisions hereof, and (b) to amend certain provisions of the Credit Agreement as more fully provided herein;

      NOW, THEREFORE, in consideration of the mutual agreements contained in the Credit Agreement, herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

      Section 1. Defined Terms . Capitalized terms used but not defined herein shall have the same meanings herein as in the Credit Agreement.


 

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      Section 2. Limited Waiver. Effective as of May 6, 2009, upon satisfaction of the conditions precedent set forth in Section 7 hereof, and in reliance upon the representations and warranties of the Loan Parties set forth in the Credit Agreement and in this Amendment, the Administrative Agent and the Lenders hereby waive the Specified Events of Default. The foregoing waiver shall only apply to the Specified Events of Default. The waiver shall not extend to or affect any other obligations of any of the Loan Parties or their respective Subsidiaries contained in the Credit Agreement or any other Loan Documents and shall not impair or prejudice any rights consequent thereon. Except to the extent of the aforementioned waiver, the Administrative Agent and each of the Lenders hereby expressly reserves all of its rights and remedies under the Credit Agreement, the other related Loan Documents and applicable law in respect of any and all Defaults or Events of Default under the Credit Agreement and the related Loan Documents now existing or hereafter arising. Failure of the Administrative Agent or any Lender to exercise any right or remedy shall not constitute a waiver of that or any other right or remedy.

      Section 3. Amendments to the Credit Agreement and Exhibits .

     (a)  Amendments to the Credit Agreement . The Credit Agreement is hereby amended in its entirety and replaced with the document attached hereto as Annex I .

     (b)  Amendments to the Schedules to the Credit Agreement . Schedule 2.1 to the Credit Agreement is hereby amended in its entirety and replaced with the Schedule 2.1 attached hereto as Annex II .

     (c)  Amendments to the Exhibits to the Credit Agreement .

     (i) Exhibit D to the Credit Agreement is hereby deleted and replaced in its entirety with Exhibit D attached hereto as Annex III .

     (ii) Exhibit E to the Credit Agreement is hereby deleted and replaced in its entirety with Exhibit E attached hereto as Annex IV .

      Section 4. Affirmation and Acknowledgment of the Borrower . The Borrower hereby ratifies and confirms all of its Obligations to the Lenders, Issuing Bank and the Administrative Agent, including, without limitation, the Loans, and the Borrower hereby affirms its absolute and unconditional promise to pay to the Lenders, the Issuing Bank and the Administrative Agent the Loans and all other amounts due under the Credit Agreement as amended hereby. The Borrower hereby confirms that the Obligations are secured pursuant to the Collateral Documents and pursuant to all other instruments and documents executed and delivered by the Borrower as security for the Obligations.

      Section 5. Representations and Warranties . Each Loan Party hereby represents and warrants to the Lenders and Administrative Agent as follows:


 

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     (a) The execution and delivery by such Loan Party of this Amendment and the Loan Documents to which it is a party, and the performance by such Loan Party of its obligations and agreements under this Amendment, the Credit Agreement as amended hereby, and the other Loan Documents, are within the corporate authority of such Loan Party, have been duly authorized by all necessary corporate proceedings on behalf of such Loan Party, and do not and will not contravene any provision of law, statute, rule or regulation to which such Loan Party is subject or any of such Loan Party’s charter, other incorporation papers, by-laws or any stock provision or any amendment thereof or of any agreement or other instrument binding upon such Loan Party.

     (b) This Amendment, the Credit Agreement as amended hereby, and the other Loan Documents constitute legal, valid and binding obligations of such Loan Party, enforceable in accordance with their respective terms, except as limited by bankruptcy, insolvency, reorganization, moratorium or other laws relating to or affecting generally the enforcement of creditors’ rights.

     (c) No approval or consent of, or filing with, any governmental agency or authority is required to make valid and legally binding the execution, delivery or performance by such Loan Party of this Amendment, the Credit Agreement as amended hereby, or the other Loan Documents.

     (d) The representations and warranties contained in Article III of the Credit Agreement are true and correct at and as of the date made and as of the date hereof, except (i) to the extent of changes resulting from transactions contemplated or permitted by this Amendment, the Credit Agreement and the other Loan Documents, (ii) to the extent relating to the representation contained in Section 3.4(b) of the Credit Agreement, (iii) to the extent relating to the representations contained in Section 3.14 of the Credit Agreement as it applies to the pledge of Equity Interests of Harris Interactive SAS, and (iv) to the extent relating to representations that expressly relate to an earlier date.

     (e) Such Loan Party has performed and complied in all material respects with all terms and conditions herein required to be performed or complied with by it prior to or at the time hereof, and as of the date hereof, after giving effect to the provisions hereof, there exists no Event of Default or Default.

     (f) As of the date hereof, the outstanding principal amount of the Loans are as follows:

 

 

 

 

 

Revolving Loans

 

$

0

 

Term A Loans

 

$

8,400,000

 

Term B Loans

 

$

15,837,500

 

      Section 6. Release . In order to induce the Administrative Agent and the Lenders to enter into this Amendment, each Loan Party acknowledges and agrees that: (a) such Loan Party does not have any claim or cause of action against the Administrative Agent, the Issuing Bank or any Lender (or any of its respective directors, officers, employees or


 

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agents); (b) such Loan Party does not have any offset right, counterclaim or defense of any kind against any of its respective obligations, indebtedness or liabilities to the Administrative Agent, the Issuing Bank or any Lender; and (c) the Administrative Agent, the Issuing Bank and each Lender have heretofore properly performed and satisfied in a timely manner all of its obligations to the Loan Parties. Each Loan Party wishes to eliminate any possibility that any past conditions, acts, omissions, events, circumstances or matters would impair or otherwise adversely affect the Administrative Agent’s, the Issuing Bank’s or any Lender’s rights, interests, contracts, collateral security or remedies. Therefore, each Loan Party unconditionally releases, waives and forever discharges (i) any and all liabilities, obligations, duties, promises or indebtedness of any kind of the Administrative Agent, the Issuing Bank or any Lender to such Loan Party, except the obligations to be performed by any Administrative Agent, the Issuing Bank or any Lender on or after the date hereof as expressly stated in this Amendment, the Credit Agreement and the other Loan Documents, and (ii) all claims, offsets, causes of action, suits or defenses of any kind whatsoever (if any), whether arising at law or in equity, whether known or unknown, which such Loan Party might otherwise have against the Administrative Agent, the Issuing Bank, any Lender or any of its directors, officers, employees or agents, in either case (i) or (ii), on account of any past or presently existing condition, act, omission, event, contract, liability, obligation, indebtedness, claim, cause of action, defense, circumstance or matter of any kind.

      Section 7. Conditions to Effectiveness . This Amendment shall become effective subject to:

     (a) the receipt by the Administrative Agent (or its counsel) from each of the Borrower, the Administrative Agent and the Required Lenders, of either (i) an original counterpart of this Amendment signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include facsimile transmission of a signed signature page of this Amendment) that such party has signed a counterpart of this Amendment;

     (b) the receipt by the Administrative Agent (or its counsel) from each of the Loan Parties, of either (i) an original counterpart of the Loan Parties’ acknowledgment attached to this Amendment signed on behalf of such party or (ii) written evidence satisfactory to the Administrative Agent (which may include facsimile transmission of a signed signature page of this Amendment) that such party has signed a counterpart of the Loan Parties’ acknowledgement;

     (c) the receipt by the Administrative Agent of such documents, resolutions and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of the Loan Parties, the authorization of the entering into and execution of this Amendment, and any other legal matters relating to the Loan Parties, this Amendment or the other Loan Documents, all in form and substance satisfactory to the Administrative Agent and its counsel;

     (d) the receipt by the Administrative Agent of all fees due and payable to the Administrative Agent and the Lenders signatory hereto in immediately available funds,


 

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including a fee equal to twenty five basis points (0.25%) on the aggregate amount of the Revolving Credit Commitment (determined immediately following the effectiveness of this Amendment), the Outstanding Amount of the Term A Loans on the date hereof, and the Outstanding Amount of the Term B Loans on the date hereof;

     (e) the payment of all reasonable legal fees and disbursements for which invoices have been presented which have been incurred or sustained by the Administrative Agent in connection with this Amendment and the Credit Agreement, the Loan Documents and any other related documents executed and/or delivered in connection therewith; and

     (f) the delivery to the Administrative Agent of such other items, documents, agreements, items or actions as the Administrative Agent may reasonably request.

      Section 8. Miscellaneous Provisions .

     (a) Except as otherwise expressly provided by this Amendment, all of the terms, conditions and provisions of the Credit Agreement shall remain the same. It is declared and agreed by each of the parties hereto that the Credit Agreement, as amended hereby, shall continue in full force and effect, and that this Amendment and the Credit Agreement shall be read and construed as one instrument.

     (b) This Amendment shall be construed in accordance with and governed by the internal law of the State of New York (including Section 5-1401 and Section 5-1402 of the General Obligations laws of the State of New York).

     (c) This Amendment shall constitute a Loan Document under the Credit Agreement and all obligations included in this Amendment (including, without limitation, all obligations for the payment of principal, interest, fees and other amounts and expenses) shall constitute Obligations under the Credit Agreement and be secured by the Collateral Documents securing the Obligations.

     (d) Any failure by the Borrower or the Loan Parties to comply with any of the terms and conditions of this Amendment shall constitute an immediate Event of Default.

     (e) This Amendment may be executed in any number of counterparts, each of which shall constitute an original, but all such counterparts shall together constitute but one contract. In making proof of this Amendment it shall not be necessary to produce or account for more than one counterpart signed by each party hereto by and against which enforcement hereof is sought. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic method of transmission shall be effective as delivery of a manually executed counterpart of this Amendment.

     (f) The Borrower hereby agrees to pay to the Administrative Agent, on demand by the Administrative Agent, all reasonable out-of-pocket costs and expenses incurred or sustained by the Administrative Agent in connection with the preparation of this


 

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Amendment and any documentation executed in connection with this Amendment (including reasonable legal fees).

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]


 

 

      IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first written above.

 

 

 

 

 

 

 

HARRIS INTERACTIVE INC.

 

 

 

 

 

 

 

By:

 

/s/ Deborah Rieger-Paganis

 

 

 

 

Deborah Rieger-Paganis

 

 

 

 

Interim Chief Financial Officer

[Signature page to Waiver and Amendment Agreement No. 3]


 

 

 

 

 

 

 

 

 

 

 

JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as

 

 

Administrative Agent

 

 

 

 

 

 

 

 

 

By:

 

/s/

 

Thomas C. Strasenburgh

 

 

 

 

Name:

 

Thomas C. Strasenburgh

 

 

 

 

Title:

 

Vice President

 

 

 

 

 

 

 

 

 

JPMORGAN CHASE BANK, NATIONAL
ASSOCIATION,
as Lender

 

 

 

 

 

 

 

 

 

By:

 

/s/

 

Thomas C. Strasenburgh

 

 

 

 

Name:

 

Thomas C. Strasenburgh

 

 

 

 

Title:

 

Vice President

[Signature page to Waiver and Amendment Agreement No. 3]


 

 

 

 

 

 

 

NATIONAL CITY BANK, as Lender

 

 

By: /s/ Charles J. Pascarella

 

 

Name: Charles J. Pascarella
Title: Assistant Vice President

[Signature page to Waiver and Amendment Agreement No. 3]


 

 

 

 

 

 

 

HSBC BANK USA, NATIONAL ASSOCIATION, as Lender

 

 

 

By: /s/ Joseph E. Salonia

 

 

Name: Joseph E. Salonia
Title: Senior Vice President

[Signature page to Waiver and Amendment Agreement No. 3]


 

 

Loan Parties’ Acknowledgement

     Each of the undersigned Loan Parties hereby (a) acknowledges and consents to the foregoing Amendment and the Borrower’s execution thereof; (b) joins the foregoing Amendment for the sole purpose of consenting to and being bound by the provisions of Sections 5 and 6 thereof; (c) ratifies and confirms all of their respective obligations and liabilities under the Loan Documents to which any of them is a party and ratifies and confirms that such obligations and liabilities extend to and continue in effect with respect to, and continue to guarantee and secure, as applicable, the Obligations of each other Loan Party under the Loan Documents; (d) acknowledges and confirms that the liens and security interests granted pursuant to the Loan Documents are and continue to be valid and perfected first priority liens and security interests (subject only to Permitted Encumbrances) that secure all of the Obligations on and after the date hereof; and (e) acknowledges, affirms and agrees that, as of the date hereof, such Loan Party does not have any defense, claim, cause of action, counterclaim, offset or right of recoupment of any kind or nature against any of their respective obligations, indebtedness or liabilities to the Administrative Agent, the Issuing Bank or any Lender.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]


 

 

 

 

 

 

 

 

 

Loan Parties :

 

 

 

 

 

 

 

HARRIS INTERACTIVE INTERNATIONAL INC.

 

 

WIRTHLIN WORLDWIDE, LLC

 

 

THE WIRTHLIN GROUP INTERNATIONAL, L.L.C.

 

 

LOUIS HARRIS & ASSOCIATES, INC.

 

 

HARRIS INTERACTIVE ASIA, LLC

 

 

 

 

 

 

 

By:

 

/s/ Deborah Rieger-Paganis

 

 

 

 

Deborah Rieger-Paganis
Interim Chief Financial Officer

[Signature page to Waiver and Amendment Agreement No. 3]


 

 

 

 

 

 

 

 

 

GSBC OHIO CORPORATION

 

 

 

 

 

 

 

By:

 

/s/ Kimberly Till

 

 

 

 

Kimberly Till

 

 

 

 

Chief Executive Officer

 


 

ANNEX I

 

 

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