Levine Leichtman Capital Partners III, L.P. 335 North Maple Drive, Suite 240 Beverly Hills, CA 90210 June 30, 2006
Exhibit
99.8
Xxxxxx Xxxxxxxxx Capital Partners III, L.P.
000 Xxxxx Xxxxx Xxxxx, Xxxxx 000
Xxxxxxx Xxxxx, XX 00000
000 Xxxxx Xxxxx Xxxxx, Xxxxx 000
Xxxxxxx Xxxxx, XX 00000
June 30, 2006
Xxxxxx International, Inc.
Xxxxxx Service Group, Inc.
Xxxxxx Services International, Inc.
Xxxxxx Telecom, Inc.
Xxxxxx Services, Inc.
Xxxxxx Utility Service, Inc.
Xxxxxx Publishing, Inc.
000 Xxxxxx Xxxxxx
Xxxxxxxx, Xxx Xxxxxx 00000
Xxxxxx Service Group, Inc.
Xxxxxx Services International, Inc.
Xxxxxx Telecom, Inc.
Xxxxxx Services, Inc.
Xxxxxx Utility Service, Inc.
Xxxxxx Publishing, Inc.
000 Xxxxxx Xxxxxx
Xxxxxxxx, Xxx Xxxxxx 00000
Re: Securities Purchase Agreement - Letter Agreement
Ladies and Gentlemen
Reference is made to the Securities Purchase Agreement, dated the date hereof, (the
“Agreement”) by and among Xxxxxx International, Inc., a Maryland corporation, (the “Parent”),
Xxxxxx Service Group, Inc., a New Jersey corporation (“BSG”), Xxxxxx Services International, Inc.,
a Delaware corporation (“BSI”), Xxxxxx Telecom, Inc., a Delaware corporation (“Xxxxxx Telecom”),
Xxxxxx Services, Inc., a Delaware corporation (“Xxxxxx Services”), Xxxxxx Utility Service, Inc., a
Delaware corporation (“Xxxxxx Utility”), Xxxxxx Publishing, Inc., a Delaware corporation (“Xxxxxx
Publishing” and together with Parent, BSG, BSI, Xxxxxx Telecom, Xxxxxx Services, and Xxxxxx
Utility, are referred to hereinafter each individually as “Company”, and individually and
collectively, jointly and severally, as the “Companies”), Parent’s subsidiaries signatory thereto
as guarantors and Xxxxxx Xxxxxxxxx Capital Partners III, L.P., a California limited partnership
(the “Purchaser”). Terms used but not defined in this Letter Agreement that are defined in the
Agreement have the meanings set forth in the Agreement.
1. Certain Defined Terms
“Designated Indebtedness” shall mean the outstanding obligations due and owing in respect to
any Indebtedness of the Companies in the form of a term loan other than (a) the principal balance
of the Loans (as defined in the Bank Credit Documents) outstanding under the Bank Credit Documents
as of the Closing Date and (b) the principal balance of the Notes outstanding as of the Closing
Date.
“Montvale Property” shall mean that certain real property owned by Xxxxxx Realty located at
000 Xxxxxx Xxxxxx, Xxxxxxxx, Xxx Xxxxxx 00000, and as more properly described in Schedule 1
attached hereto.
-2-
“U.S. Government Obligations” shall mean securities that are (a) direct obligations of the
United States of America for the payment of which its full faith and credit is pledged or (b)
obligations of a Person controlled or supervised by and acting as an agency or instrumentality of
the United States of America, the payment of which is unconditionally guaranteed as full faith and
credit obligations by the United States of America, that, in either case, are not callable or
redeemable at the option of the issuer thereof and shall also include a depository receipt issued
by a bank or trust company as custodian with respect to any such U.S. Government Obligations or a
specific payment of interest on or principal of any such U.S. Government Obligations held by such
custodian for the account of the holder of a depository receipt; provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount payable to the
holder of such depository receipt for any amount received by the custodian in respect of the U.S.
Government Obligations or the specific payment of interest on or principal of the U.S. Government
Obligations evidenced by such depository receipt.
2. Agreement
(a) On or before March 31, 2007, the Companies shall have prepaid or defeased at least
$7,000,000 of the aggregate outstanding principal balance of the Designated Indebtedness exclusive
of any prepayments or other repayments made out of or otherwise as a result of any sale, lease,
transfer or disposition of any asset of any Company Party (other than the sale of the Montvale
Property) (the “Debt Reduction”).
(b) In the event the Designated Indebtedness shall not have been prepaid on or before March
31, 2007 as required pursuant to clause (a) above, the Applicable Interest Rate (as defined in the
Notes) shall be increased by one (1) percentage point (the “Increased Applicable Interest Rate”).
The Increased Applicable Interest Rate shall begin to accrue on April 1, 2007 and shall continue
until such time as the Designated Indebtedness is prepaid or defeased in the amount required
pursuant to clause (a) above.
(c) Immediately upon consummation of the sale or other disposition of the Montvale Property,
the proceeds of such sale shall be applied first, to purchase the U.S. Government
Obligations that shall be payable as to principal and interest in such amounts and at such times as
are sufficient to pay the principal of and interest on the outstanding obligations due and owing
under the GMAC Credit Documents on the dates such installments are due to redemption or stated
maturity, second, to the outstanding Loans until paid in full, and third, to the
outstanding principal amount of the Notes.
This Letter Agreement shall be governed by the internal laws of the State of California. This
Letter Agreement is an Investment Document under the Agreement and may be executed in any number of
counterparts and by different parties on separate counterparts. Each of such counterparts shall be
deemed to be an original, and all of such counterparts, taken together, shall constitute but one
and the same agreement. Delivery of an executed counterpart of this Letter Agreement by
telefacsimile shall be equally effective as delivery of a manually executed counterpart.
-3-
Except as, and then only to the extent otherwise required by disclosure requirements under
applicable securities law, the Companies will not disclose this Letter Agreement or its contents to
any person other than to its counsel and to its financial advisors on a need to know basis.
Very truly yours, | ||||||||||
XXXXXX XXXXXXXXX CAPITAL PARTNERS, INC., | ||||||||||
a California corporation | ||||||||||
On behalf of XXXXXX XXXXXXXXX CAPITAL PARTNERS
III, L.P.,
a California limited partnership |
||||||||||
By: | /s/ Xxxxxx Xxxxxxx | |||||||||
Title: Vice President |
-4-
ACCEPTED AND AGREED: | ||||
XXXXXX INTERNATIONAL, INC., | ||||
a Maryland corporation | ||||
By: |
||||
Title: | ||||
XXXXXX SERVICE GROUP, INC., | ||||
a New Jersey corporation | ||||
By: |
||||
Name: | ||||
Title: | ||||
XXXXXX SERVICES INTERNATIONAL, INC., | ||||
a Delaware corporation | ||||
By: |
||||
Name: | ||||
Title: | ||||
XXXXXX TELECOM, INC., | ||||
a Delaware corporation | ||||
By: |
||||
Name: | ||||
Title: |
-5-
XXXXXX SERVICES, INC., | ||||
a Delaware corporation | ||||
By: |
||||
Name: | ||||
Title: | ||||
XXXXXX UTILITY SERVICE, INC., | ||||
a Delaware corporation | ||||
By: |
||||
Name: | ||||
Title: | ||||
XXXXXX PUBLISHING, INC., | ||||
a Delaware corporation | ||||
By: |
||||
Name: | ||||
Title: |
-6-
Schedule 1
Description of Montvale Property