EXHIBIT 10.31
FIFTH AMENDMENT TO
INVESTMENT
AGREEMENT
THIS FIFTH AMENDMENT TO INVESTMENT
AGREEMENT (this “ Fifth Amendment ”) is
made as of March 15, 2004 by and between OPINION RESEARCH
CORPORATION, a Delaware corporation (the “
Company ”) and ALLIED CAPITAL CORPORATION and
ALLIED INVESTMENT CORPORATION, each a Maryland corporation
(collectively referred to herein as “ Allied
Capital ”).
RECITALS:
A. Allied Capital invested the
aggregate sum of Fifteen Million Dollars ($15,000,000) in the
Company, in exchange for certain subordinated debentures of the
Company and Warrants to purchase shares of Common Stock of the
Company pursuant to that certain Investment Agreement dated as of
May 26, 1999 by and between the Company and Allied Capital (as
amended, the “ Investment Agreement
”).
B. The parties desire to modify
certain provisions of the Investment Agreement.
NOW, THEREFORE
, in consideration of the foregoing
Recitals and the mutual covenants contained herein, and other good
and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, Allied Capital and its successors and
assigns with respect to any of the Debentures or any of the
Warrants (as those terms are hereinafter defined) (individually, a
“ Holder ” and collectively, the “
Holders ”) and the Company hereby agree as
follows:
1. Definitions . All
capitalized terms used herein without definition shall have the
meanings given to such terms in the Investment
Agreement.
2. Amendments to Investment
Agreement . The following amendments to the Investment
Agreement shall take effect as of the date hereof:
(a) Notwithstanding the provisions
of Section 5.13(b) of the Investment Agreement, the Company shall
maintain the following minimum ratios of EBITDA for the 12 month
period ending on the last day of each calendar quarter ending on
the dates set forth below to Principal and Interest for the 12
month period ending on such day:
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Period
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Ratio
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December 31, 2003
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1.20 : 1.00
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March 31, 2004
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1.20 : 1.00
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June 30, 2004
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1.20 : 1.00
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September 30, 2004
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1.30 : 1.00
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December 31, 2004 and thereafter
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1.50 : 1.00
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3. Closing Conditions . The
obligations of Allied Capital to enter into this Fifth Amendment
and to perform its obligations hereunder are subject to the
satisfaction of the following conditions on or prior to the date
hereof:
(a) The representations and
warranties set forth herein shall be true and correct on and as of
the date hereof.
(b) The Company shall be in
compliance with all the terms and provisions set forth herein and
in each other Investment Document on its part to be observed or
performed, and at the time of and immediately after the date
hereof, no Event of Default or Default or event or condition that,
after the giving of notice, passage of time, failure to cure or all
of the foregoing would constitute an Event of Default, shall have
occurred and be continuing.
(c) Allied Capital shall have
received the following items:
(i) this Fifth Amendment, duly
executed by the Company;
(ii) a duly executed copy of the
Consent and Twelfth Amendment to Credit Agreement by and between
the Company, the Senior Lender and the other parties
thereto;
(iii) all amounts due and payable
under the Investment Documents on or prior to the date hereof,
including without limitation reimbursement or payment of all
out-of-pocket expenses and the amendment fee required to be
reimbursed or paid by the Company pursuant to Section 7 hereof;
and
(iv) such other documents,
instruments and information as Allied Capital may reasonably
request.
4. Consents .
(a) Notwithstanding anything to the
contrary contained in the Investment Agreement or any other
Investment Document, Allied Capital hereby consents to ORC, Inc.
being merged with and into the Company, with the Company as the
surviving corporation, at such time the Company may elect, if, and
only if, all of the following conditions are satisfied (it being
understood that it shall constitute an immediate Event of Default
under the Investment Agreement if such merger is consummated
without satisfying all of the following conditions):
(i) no Default or Event of Default
has occurred and is continuing on the effective date of such merger
nor would any Default or Event of Default exist after giving effect
to such merger;
(ii) immediately prior to the
effectiveness of such merger, ORC, Inc. owns no mater