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Ex. 10.54
THIRD AMENDMENT TO CREDIT AGREEMENT
THIS THIRD AMENDMENT TO CREDIT AGREEMENT (this "Third Amendment") is
made and entered into as of this 23rd day of December, 1997 by and among
RURAL/METRO CORPORATION, a corporation organized under the laws of Delaware
("Rural/Metro" or the "Guarantor"), certain Subsidiaries of Rural/Metro
designated on the signature pages hereto (collectively, the "Borrowers" and,
together with Rural/Metro, the "Credit Parties"), the financial institutions who
are or may become party hereto (collectively, the "Lenders"), and FIRST UNION
NATIONAL BANK (formerly known as First Union National Bank of North Carolina), a
national banking association ("First Union"), as Agent for the Lenders (the
"Agent").
Statement of Purpose
The Lenders have previously agreed to extend certain credit facilities
to the Borrowers pursuant to the Credit Agreement dated as of September 29,
1995, by and among Rural/Metro, as Guarantor, the Borrowers, the Lenders, and
the Agent as amended by the First Amendment to Credit Agreement dated as of
December 20, 1996, the Second Amendment to Credit Agreement dated as of May 29,
1997 and as supplemented by various joinder agreements executed by the Credit
Parties (as so amended and supplemented and as may be further amended, restated
or otherwise modified, the "Credit Agreement").
The parties now desire to amend the Credit Agreement in order to
increase the Aggregate Commitment from $175,000,000 to $200,000,000 and to
reflect the revised Commitments of the Lenders on the terms and conditions set
forth below.
NOW THEREFORE, for good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, the parties hereto agree as follows:
1. Effect of Amendment. Except as expressly amended hereby, the Credit
Agreement and Loan Documents shall be and remain in full force and effect.
2. Capitalized Terms. All capitalized undefined terms used in this
Third Amendment shall have the meanings assigned thereto in the Credit
Agreement.
3. Modification of Credit Agreement. The Credit Agreement is hereby
modified as follows:
(a) Section 1.1 is hereby modified to delete the definition of
Aggregate Commitment therein and to insert the following in lieu thereof:
"'Aggregate Commitment' means the aggregate amount of
the Lenders' Commitments hereunder, as such amount may be
reduced at any time or from time to time pursuant to Section
2.5. The Aggregate Commitment as of the date of the Third
Amendment shall be Two Hundred Million Dollars ($200,000,000).
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(b) Section 1.1 is hereby modified to add in appropriate alphabetical
order the following defined term:
"'Third Amendment' means the Third Amendment to the
Credit Agreement dated as of December __, 1997 by and among
the Credit Parties, the Lenders and the Agent."
(c) Section 9.2 is hereby deleted in its entirety and the following
shall be substituted in lieu thereof:
" SECTION 9.2. Senior Debt Leverage Ratio. As of
March 31, 1998 and the end of any fiscal quarter thereafter,
permit the ratio of (a) the difference between (i) the
Consolidated Debt of Rural/Metro and its Subsidiaries less
(ii) the Consolidated Subordinated Debt of Rural/Metro and its
Subsidiaries as of such fiscal quarter end to (b) the product
of (i) Consolidated EBITDA for the period of two (2)
consecutive fiscal quarters ending on such fiscal quarter end
multiplied by (ii) two (2), to exceed 3.25 to 1.00.
(Notwithstanding the above, for purposes of determining the
Applicable Margin pursuant to Section 4.1(c) the Borrowers
shall be required to calculate the Senior Debt Leverage Ratio
pursuant to this Section for every fiscal quarter end.)"
(d) Schedule 1 shall be deleted in its entirety and Schedule 1 attached
hereto shall be substituted in lieu thereof.
4. Conditions. The effectiveness of the amendments set forth herein
shall be conditioned upon delivery to the Agent of the following items:
(a) Notes. The Borrowers shall issue and deliver to the Agent,
in exchange for the Notes outstanding, new Notes, payable to each
Lender in the amount of such Lender's respective Commitment as set
forth on Schedule 1 attached hereto.
(b) Officer's Certificate. The Agent shall have received a
certificate from the chief executive officer or chief financial officer
of Rural/Metro, on behalf of the Credit Parties, in form and substance
reasonably satisfactory to the Agent, to the effect that all
representations and warranties of the Credit Parties contained in the
Credit Agreement and the other Loan Documents are true, correct and
complete in all material respects; that the Credit Parties are not in
violation of any of the covenants contained in the Credit Agreement and
the other Loan Documents; that, after giving effect to the transactions
contemplated by this Third Amendment, no Default or Event of Default
has occurred and is continuing; and that the Credit Parties have
satisfied each of the closing conditions to be satisfied thereby.
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(c) Closing Certificate of each Credit Party. The Agent shall
have received a certificate of the secretary or assistant secretary of
each Credit Party certifying, as applicable, that (i) (A) the articles
of incorporation and bylaws of such Credit Party (or applicable
documentation in the case of any Credit Party organized as a
partnership or a limited liability company) delivered to the Agent on
September 29, 1995 (or, with respect to any Credit Party who joined the
Credit Agreement after the Closing Date, the date of the applicable
Joinder Agreement executed by such Credit Party) have not been
repealed, revoked, rescinded or amended in any respect or (B) that, if
such documents have not previously been provided to the Agent, such
documents are attached thereto and have not been repealed, revoked,
rescinded or amended in any respect; (ii) that attached thereto is a
true and complete copy of resolutions duly adopted by the Board of
Directors of such Credit Party or the general partner or member of such
Credit Party, as applicable, authorizing the transactions contemplated
herein, the additional borrowings by the Borrowers contemplated
hereunder and the execution, delivery and performance of this Third
Amendment and the other documents related thereto (collectively, the
"Third Amendment Documents") to which it is a party; and (iii) as to
the incumbency and genuineness of the signature of each officer of such
Credit Party or the general partner or member of such Credit Party, as
applicable executing Third Amendment Documents to which such Credit
Party is a party.
(d) Certificates of Good Standing. The Agent shall have
received short-form certificates as of a recent date of the good
standing of each Credit Party under the laws of their respective
jurisdictions of organization and such other jurisdictions requested by
the Agents.
(e) Opinions of Counsel. The Agent shall have received
favorable opinions of counsel to the Credit Parties addressed to the
Agent and the Lenders with respect to such Persons and the Loan
Documents, as modified by this Third Amendment, reasonably satisfactory
in form and substance to the Agent and the Lenders.
(f) Expenses of Agent's Counsel. Agent's counsel
shall have received payment for all outstanding reasonable fees and
expenses.
5. Representations and Warranties/No Default. By their execution
hereof, the Credit Parties hereby certify that each of the representations and
warranties set forth in the Credit Agreement and the other Loan Documents is
true and correct as of the date hereof as if fully set forth herein and that, as
of the date hereof, no Default or Event of Default has occurred and is
continuing.
6. Expenses. The Credit Parties shall pay all reasonable out-of-pocket
expenses of the Agent in connection with the preparation, execution and delivery
of this Third Amendment and the other Third Amendment Documents.
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7. Governing Law. This Third Amendment shall be governed by, construed
and enforced in accordance with the laws of the State of North Carolina without
reference to the conflicts or choice of law principles thereof.
8. Counterparts. This Third Amendment may be executed in separate
counterparts, each of which when executed and delivered is an original but all
of which taken together constitute one and the same instrument.
[Signature Pages Follow]
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IN WITNESS WHEREOF, the parties hereto have caused this Third Amendment
to be duly executed as of the date and year first above written.
BORROWERS:
THE AID AMBULANCE COMPANY, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
AID AMBULANCE AT VIGO COUNTY, INC.,
an Indiana corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
THE AID COMPANY, INC., an Indiana
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
AMBULANCE TRANSPORT SYSTEMS, INC., a
New Jersey corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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AMERICAN LIMOUSINE SERVICE, INC., an
Ohio corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
BEACON TRANSPORTATION, INC., a New York
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
CITY WIDE AMBULANCE SERVICE, INC., an
Ohio corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
CORNING AMBULANCE SERVICE INC., a New
York corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
DONLOCK, LTD., a Pennsylvania corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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E.M.S. VENTURES, INC., a Georgia corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
EMS VENTURES OF SOUTH CAROLINA, INC., a
South Carolina corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
EASTERN AMBULANCE SERVICE, INC., a
Nebraska corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
EASTERN PARAMEDICS, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
GOLD CROSS AMBULANCE SERVICES, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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GOLD CROSS AMBULANCE SERVICE OF PA.,
INC., an Ohio corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
XXXXX & XXXXX, INC., a New York corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
XXXXX & XXXXX AMBULETTE, LTD., a New
York corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
LASALLE AMBULANCE INC., a New York
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
MEDI-CAB OF GEORGIA, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
MEDICAL EMERGENCY DEVICES AND
SERVICES (MEDS), INC., an Arizona corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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MEDICAL TRANSPORTATION SERVICES, INC.,
a South Dakota corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
MEDSTAR EMERGENCY MEDICAL SERVICES,
INC., a Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
MERCURY AMBULANCE SERVICE, INC., a
Kentucky corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
METRO CARE CORP., an Ohio corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
METROPOLITAN FIRE DEPT., INC., an
Arizona corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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MULTI-CAB INC., a New Jersey corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
MULTI-CARE, INC., a New Jersey corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
MULTI-CARE INTERNATIONAL, INC., a New
Jersey corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
MULTI-CARE MEDICAL CAR SERVICE, INC.,
a New Jersey corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
MULTI-HEALTH CORP., a
Florida corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
XXXXX AMBULANCE SERVICE, INC.,
an Indiana corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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NATIONAL AMBULANCE & OXYGEN
SERVICE, INC., a New York corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
NORTH MISS. AMBULANCE SERVICE, INC.,
a Mississippi corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
PHYSICIANS AMBULANCE SERVICE, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
PROFESSIONAL MEDICAL SERVICES, INC., an
Arkansas corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RMC CORPORATE CENTER, L.L.C., an Arizona
limited liability company
By: RURAL/METRO CORPORATION,
an Arizona corporation,
Its Member
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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RMC INSURANCE, LTD., a Barbados
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METROCOMMUNICATIONS SERVICES,
INC., a Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO INTERNATIONAL, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
R/M MANAGEMENT CO., INC., an Arizona
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL.METRO MID-ATLANTIC, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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R/M OF MISSISSIPPI, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF MISSISSIPPI, INC.,
a Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
R/M PARTNERS, INC., a Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO TEXAS HOLDINGS, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO CORPORATION, an Arizona
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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RURAL/METRO CORPORATION OF FLORIDA, a
Florida corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO CORPORATION OF
TENNESSEE, a Tennessee corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
R/M OF TENNESSEE G.P., INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
R/M OF TENNESSEE L.P., INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF TENNESSEE L.P., a Delaware
limited partnership
By: R/M OF TENNESSEE G.P., INC.,
a Delaware corporation,
Its General Partner
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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RURAL/METRO FIRE DEPT., INC., an
Arizona corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF ALABAMA, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF ARKANSAS, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF ARLINGTON, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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RURAL/METRO OF CALIFORNIA, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO CANADIAN HOLDINGS, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF CENTRAL ALABAMA, INC.,
a Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF CENTRAL OHIO, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF GEORGIA, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
17
RURAL/METRO OF INDIANA, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF INDIANA, L.P., a Delaware
limited partnership
By: THE AID AMBULANCE COMPANY, INC.,
a Delaware corporation,
Its General Partner
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF INDIANA II, L.P., a Delaware
limited partnership
By: THE AID AMBULANCE COMPANY, INC.,
a Delaware corporation,
Its General Partner
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF KENTUCKY, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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RURAL/METRO OF NEBRASKA, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF NEW YORK, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF NORTH FLORIDA, INC., a
Florida corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF OHIO, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF OREGON, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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RURAL/METRO OF ROCHESTER, INC., a New
York corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF SAN DIEGO, INC., a
California corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF SOUTH CAROLINA, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF SOUTH DAKOTA, INC., a
Delaware corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
RURAL/METRO OF TEXAS, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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RURAL/METRO OF TEXAS, L.P., a Delaware
limited partnership
By: R/M OF TEXAS G.P., INC.,
a Delaware corporation,
Its General Partner
By:__________________________________________
Name:______________________________________
Title:_____________________________________
R/M OF TEXAS G.P., INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
SIOUX FALLS AMBULANCE, INC., a South
Dakota corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
SOUTHWEST AMBULANCE OF CASA
GRANDE, INC., an Arizona corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
SOUTHWEST AMBULANCE OF
SOUTHEASTERN ARIZONA, INC., an Arizona
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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SOUTH GEORGIA EMERGENCY MEDICAL
SERVICES, INC., a Georgia corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
SOUTHWEST GENERAL SERVICES, INC., an
Arizona corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
SW GENERAL, INC., an Arizona corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
TOWNS AMBULANCE SERVICE, INC., a New
York corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
VALLEY FIRE SERVICE, INC., a Delaware
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
22
W & W LEASING COMPANY, INC., an Arizona
corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
THE WESTERN NEW YORK EMERGENCY
MEDICAL SERVICES TRAINING INSTITUTE
INC., a New York corporation
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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AGENT:
FIRST UNION NATIONAL BANK, as Agent
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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LENDERS:
FIRST UNION NATIONAL BANK, as Lender
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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FLEET BANK, N.A. (formerly known as Natwest
Bank N.A.)
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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THE FIRST NATIONAL BANK OF CHICAGO
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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ABN AMRO BANK N.V.
By:__________________________________________
Name:______________________________________
Title:_____________________________________
By:__________________________________________
Name:______________________________________
Title:_____________________________________
28
XXXXX FARGO BANK, N.A. (formerly known as
First Interstate Bank of Arizona, N.A.
By:__________________________________________
Name:______________________________________
Title:_____________________________________
29
THE LONG-TERM CREDIT BANK OF JAPAN,
LIMITED
By:__________________________________________
Name:______________________________________
Title:_____________________________________
30
BANK OF AMERICA NATIONAL TRUST AND
SAVINGS ASSOCIATION
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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BANQUE PARIBAS
By:__________________________________________
Name:______________________________________
Title:_____________________________________
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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Confirmation of Subsidiary Guaranty
By execution of this Third Amendment, the undersigned hereby expressly
consents to the modifications and amendments set forth herein, and hereby
acknowledges, represents and agrees that its guaranty obligations set forth in
Article XI of the Credit Agreement remain in full force and effect.
RURAL/METRO CORPORATION, A
DELAWARE CORPORATION
By:__________________________________________
Name:______________________________________
Title:_____________________________________
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Schedule 1.1
LENDER ADDRESS
------ COMMITMENT -------
AND
COMMITMENT
PERCENTAGE
----------
First Union National Bank $32,000,000 One First Union Center
16% 000 X. Xxxxxxx Xx., XX-00
Xxxxxxxxx, XX 00000-0000
Attn: Syndication Agency Services
Phone: (000) 000-0000
Fax: (000) 000-0000
Fleet Bank, N.A. $28,000,000 0000 Xxxxxx xx Xxxxxxxx
00% Xxx Xxxx, XX 00000
Attn: Xxxxxx X. Xxxxxxx, V.P.
Phone: (000) 000-0000
Fax: (000) 000-0000
The First National Bank of $24,000,000 000 Xxxxx Xxxxxxxx Xx.
Xxxxxxx 12% 0xx Xxxxx
Xxx Xxxxxxx, XX 00000-0000
Attn: Xxxxx X. Xxxxxx, V.P.
Phone: (000) 000-0000
Fax: (000) 000-0000
Banque Paribas $25,000,000 0000 Xxxxxxx Xxxx Xxxx
00.0% Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Attn: Xxx Xxxxx, Asst. VP
Phone: (000) 000-0000
Fax: (000) 000-0000
ABN Amro Bank N.V. $21,000,000 LA International Branch
10.5% 000 X. Xxxxx Xxxxxx
Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Attn: Xxxxx X. Xxxxxxx,
VP and Director
Phone: (000) 000-0000
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COMMITMENT
AND
COMMITMENT
LENDER PERCENTAGE ADDRESS
Fax: (000) 000-0000
The Long-Term Credit Bank of $14,000,000 Los Angeles Agency
Japan Limited 7% 000 X. Xxxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxx, XX 00000
Attn: Xxxxxx Xxxxx
Phone: (000) 000-0000
Fax: (000) 000-0000
Xxxxx Fargo Bank $28,000,000 000 X. Xxxxxxxxxx
14% 4th Floor
Xxxxxxx, XX 00000
Attn: Xxxx Xxxxx, VP
Phone: (000) 000-0000
Fax: (000) 000-0000
Bank of America National Trust $28,000,000 Commercial Banking Department
and Savings Association 14% 000 Xxxxx 0xx Xxxxxx
00xx Xxxxx
Xxxxxxx, XX 00000
Attn: Xxx Xxxxxxxxxx, VP
Phone: (000) 000-0000
Fax: (000) 000-0000
