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EXHIBIT 10.33
FOURTH AMENDMENT TO REVOLVING CREDIT AGREEMENT
This Fourth Amendment to Revolving Credit Agreement ("Fourth
Amendment") is made as of June 25, 1999, by and among PROVANT, Inc.
("Borrower"), a Delaware business corporation having its principal place of
business at 00 Xxxxxxxxxxxx Xxxxxx, Xxxxx 000, Xxxxxx, Xxxxxxxxxxxxx 00000,
certain banks more particularly identified in the Revolving Credit Agreement, as
defined hereinbelow (collectively, the "Banks"), and Fleet National Bank, as
agent for itself and the other Banks (the "Agent").
RECITALS
WHEREAS, the Borrower, the Banks, and the Agent previously entered into
that certain Revolving Credit Agreement, dated as of April 8, 1998, and
subsequently entered into the First, Second and Third Amendments thereto (said
Revolving Credit Agreement, as so amended prior to the date hereof, the "Credit
Agreement"), pursuant to which the Banks have made available to the Borrower a
revolving credit loan facility having a maximum available borrowing amount of
$75,000,000; and
WHEREAS, the parties hereto now desire to further amend or modify the
Credit Agreement in certain respects to order to (i) permit a restructuring of
the direct and indirect ownership by the Borrower of its Subsidiaries,
(ii) provide for additional guaranties from certain Subsidiaries and a release
of existing pledges of stock of certain other Subsidiaries, and (iii) carry out
certain other waivers or modifications of, or consents under, the provisions of
the Credit Agreement.
NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties
hereto hereby agree to modify, amend, and waive certain provisions of the Credit
Agreement and to provide for the consent of the Majority Banks as to certain
aspects of the transactions described above, in the following manner:
Section 1. Definitions. All capitalized terms used herein without
definition shall have the respective meanings provided therefor in the Credit
Agreement.
Section 2. Restructuring; Waiver or Consent Regarding Specific Provisions.
Notwithstanding the provisions of Sections 7.13(a), 8.5.1(a), 8.5.2 and 8.10 of
the Credit Agreement, the Majority Banks hereby grant their waiver of such
provisions, as necessary, and their consent in order to permit the contribution
by the Borrower of the outstanding capital stock of various of its Subsidiaries
(identified as the "Non-Pledged Subsidiaries" on Appendix I attached hereto and
made a part hereof), respectively, to KC Resources Creative Solutions, Inc.
("KC"), XXXX Learning Systems, Inc. ("XXXX"), Star Mountain, Inc. ("Star"), and
Gulliver Ritchie Associates, Inc. ("GRA") (KC, XXXX, Star and GRA all being
existing Subsidiaries of the Borrower and referred to collectively as the
"Intermediate Subsidiaries"). The transaction described in this Section 2 is
referred to as the "Restructuring."
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Section 3. Conditions to Effectiveness. This Fourth Amendment shall become
effective only upon completion of the following actions:
(a) the execution and delivery to the Agent of an Instrument of
Adherence to Guaranty, dated the date hereof and substantially in the form
attached hereto as Appendix II, by the existing Subsidiaries of the Borrower
more particularly specified therein;
(b) the delivery to the Agent and the other Banks of an opinion letter
of Xxxxxx, XxXxxxxxx & Fish, counsel to the Borrower and the Subsidiaries,
respecting the transactions contemplated by this Fourth Amendment, in a form and
addressing such specific matters as may be reasonably requested by the Banks;
(c) a certificate of an appropriate officer of the Borrower and each
Subsidiary which is a party to the documents contemplated by this Fourth
Amendment, certifying as to its charter documents and by-laws, the incumbency of
signing officers, and the adoption of necessary corporate votes; and
(d) such other documents or information as the Agent or any Bank may
reasonably request.
Section 4. Release of Certain Stock Pledges; Amendment. Contemporaneously
with the completion of all of the actions specified in Section 3 above which are
conditions to the effectiveness of this Fourth Amendment, the Agent is hereby
authorized by the Banks, and hereby agrees as Agent, that the existing pledges
previously granted by the Borrower in the capital stock of the Non-Pledged
Subsidiaries shall be deemed released and terminated. Pursuant to the foregoing,
the Agent shall promptly surrender to the Borrower all certificates of stock,
together with related stock powers endorsed in blank, previously delivered to
the Agent. All of the aforesaid stock of the Non-Pledged Subsidiaries was
previously pledged by the Borrower under the Stock Pledge Agreement, as it has
been supplemented from time to time. All other outstanding pledges of stock of
Subsidiaries other than the Non-Pledged Subsidiaries shall remain outstanding
and unaffected by this Section 4.
Annex A to the Stock Pledge Agreement is hereby amended and restated in
its entirety, in order to reflect the Restructuring. The form of Annex A which
is attached to this Fourth Amendment shall become Annex A to the Stock Pledge
Agreement for all purposes.
Section 5. Additional Modifications to Credit Agreement. The parties hereto
agree that the Credit Agreement shall be further modified and amended in the
following manner:
(a) In Section 1.1, the term "Material Subsidiary" and the definition
thereof shall be deleted in its entirety.
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(b) In Section 7.13(b), the text of such subparagraph shall be amended
and restated in its entirety to read as follows:
"(b) The Borrower shall cause each Subsidiary which is not
a party on the Closing Date to the Guaranty to also
execute and deliver to the Agent, concurrently with
the organization or acquisition of any such
Subsidiary, an Instrument of Adherence to the
Guaranty, together with such supporting
documentation, including legal opinions and corporate
authority documents, as the Agent may reasonably
request."
Section 6. Additional Covenants of Borrower. As a condition to the
willingness of the Banks to enter into this Fourth Amendment, the Borrower
further covenants and agrees, for itself and all of its Subsidiaries, as
follows:
(a) No additional Subsidiaries may be formed or acquired directly or
indirectly by Borrower, except (i) pursuant to the provisions of the Credit
Agreement, or (ii) upon the prior written consent of the Majority Banks; and
(b) All of the capital stock of the Non-Pledged Subsidiaries, the
pledge of which stock is this day being released pursuant to the provisions of
Section 4 hereof, shall remain free and clear of all liens and encumbrances and
shall not be subjected to any pledge or assignment granted to any Person, other
than the Agent.
Section 7. Consent to New Subsidiary. Pursuant to the provisions of
Section 8.10 hereof, the Banks hereby consent to the creation of a new Delaware
corporation as a wholly-owned direct Subsidiary of the Borrower, known as
PROVANT Services, Inc. ("Services"). The Borrower represents and warrants that
Services is being formed for the purpose of carrying out certain administrative
functions for other Subsidiaries of the Borrower and not for any Permitted
Acquisition. The foregoing consent of the Banks shall be subject to the
condition that the Borrower shall promptly deliver or cause to be delivered to
the Agent (i) an Instrument of Adherence to Guaranty executed by Services, and
(ii) the pledged stock of Services, together with appropriate stock powers.
Section 8. Loan Documents Ratified and Confirmed. The Credit Agreement,
the Notes and each of the other Loan Documents, as specifically supplemented or
amended by this Fourth Amendment and the other documents executed in connection
herewith, are and shall continue to be in full force and effect and are hereby
in all respects ratified and confirmed. The waivers and consents embodied in
this Fourth Amendment are limited to the specific matters and circumstances
described herein, and no further or additional waiver as to any other
obligations under the Credit Agreement shall be deemed to be granted hereby.
Without limiting the generality of the foregoing, the Security Documents and all
of the collateral described therein do, and shall continue to, secure the
payment of all obligations under the
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Credit Agreement, in each case as amended or supplemented pursuant to this
Fourth Amendment.
Section 9. Bringdown. The Borrower hereby confirms that all
representations and warranties with respect to the Borrower and any Subsidiaries
contained in the Credit Agreement and each of the other Loan Documents and in
any other certificate or document delivered in connection therewith are true and
correct as of the date hereof, and that no Default or Event of Default is
outstanding or would be created by the consummation of the transactions
described herein.
Section 10. Costs and Expenses. Borrower agrees to pay on demand all
reasonable costs and expenses of the Agent and the Banks, including without
limitation all reasonable fees and expenses of counsel, in connection with the
preparation, execution and delivery of this Fourth Amendment and the other
documents and instruments to be delivered herewith.
Section 11. Miscellaneous. This Fourth Amendment may be executed in
several counterparts and by each party on a separate counterpart, each of which
when executed and delivered shall be an original, and all of which together
shall constitute one instrument. In proving this Fourth Amendment, it shall not
be necessary to produce or account for more than one such counterpart signed by
the party against whom enforcement is sought. This Fourth Amendment is intended
to take effect as a sealed instrument and shall for all purposes be construed in
accordance with and governed by the laws of The Commonwealth of Massachusetts,
(excluding the laws applicable to conflicts or choice of law).
[Remainder of Page Intentionally Left Blank]
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IN WITNESS WHEREOF, the parties hereto have caused this Fourth
Amendment to be duly executed as an instrument under seal as of the date first
above written.
PROVANT, INC.
By:/s/ Xxxxx Xxxxx
Title: Executive Vice President
BANKBOSTON, N.A.
By:/s/ Xxxxxx X. Xxxxx
Title: Vice President
FLEET NATIONAL BANK
By:/s/ Xxxxx Xxxxx
Title: Vice President
NORWEST BANK IOWA, N.A.
By:/s/ Xxxxxx X. Xxxxx
Title: Vice President
STATE STREET BANK AND TRUST
COMPANY
By:/s/ Xxxxxxx X. Xxxxx
Title: Vice President
FLEET NATIONAL BANK, as AGENT
By:/s/ Xxxxx Xxxxx
Title: Vice President