Exhibit 10.7
Certain confidential terms have been omitted from this exhibit pursuant to a
request for confidential treatment of these portions filed with the Securities
and Exchange Commission. Such confidential portions have been filed with the
Securities and Exchange Commission and are denoted in this exhibit by an
asterisk (*).
SIXTEENTH AMENDMENT TO REVOLVING CREDIT AGREEMENT
-------------------------------------------------
This Sixteenth Amendment to Revolving Credit Agreement (this
"Amendment") is made as of September 30, 2002 by and among Provant, Inc. (the
"Borrower"), a Delaware business corporation having its principal place of
business at 00 Xxxxxxxxxxxx Xxxxxx, Xxxxx 000, Xxxxxx, XX 00000, Fleet National
Bank, a national banking association ("Fleet"), Xxxxx Fargo Bank Iowa, N.A., a
national banking association ("Xxxxx Fargo"), Citizens Bank of Massachusetts, a
Massachusetts banking corporation ("Citizens"), and KeyBank National
Association, a national banking association ("KeyBank", together with Fleet,
Xxxxx Fargo and Citizens, the "Banks"), and Fleet National Bank, as agent for
itself and the other Banks (the "Agent").
RECITAL
-------
WHEREAS, the Borrower, the Banks and the Agent previously entered into
that certain Revolving Credit Agreement, dated as of April 8, 1998, as
thereafter modified and amended by the First, Second, Third, Fourth, Fifth,
Sixth, Seventh, Eighth, Ninth, Tenth, Eleventh, Twelfth, Thirteenth, Fourteenth
and Fifteenth Amendments thereto and letter agreements dated as of November 6,
2001 and June 28, 2002 (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 for its corporate
purposes; and
WHEREAS, the parties hereto now desire to further amend or modify the
Credit Agreement in certain respects, all as more particularly set forth
hereinbelow.
NOW, THEREFORE, in consideration of the foregoing and other good and
valuable consideration, the receipt of which is hereby acknowledged, the parties
hereto agree as follows:
Section 1. Definitions. All capitalized terms used herein without
definition shall have the respective meanings provided therefor in the Credit
Agreement.
Section 2. Amendments to Credit Agreement. The following definitions in
Section 1.1 are hereby amended in their entirety to provide as follows:
"Borrowing Base. At the relevant time of reference thereto, an
amount, determined by Agent by reference to the most recent
Borrowing Base Report delivered to Banks and Agent pursuant to
Section 7.4(h), equal to 100% of the total amount of Eligible
Accounts Receivable plus $6,184,000; provided, that, in no
event shall such amount exceed $45,484,000."
"Revolving Credit Loan Maturity Date. November 8, 2002, or
such earlier date on which the Total Commitment is terminated
pursuant to the provisions hereof."
Section 3. Outstanding Obligations. Borrower hereby affirms and
acknowledges that (i) as of October 31, 2002, there is presently outstanding
loans and advances in the aggregate principal amount of $45,484,000 together
with accrued interest thereon and costs and expenses
(collectively, the "Amount") and (ii) the Amount is a valid obligation of
Borrower and is due and owing without defense, claim, setoff or counterclaim of
any kind or nature whatsoever.
Section 4. Conditions of Effectiveness. This Amendment shall become
effective upon satisfaction of the following conditions precedent: (i) Agent
shall have received a copy of this Amendment executed by Borrower and Banks and
consented and agreed to by Guarantors pursuant to the form of amendment set
forth as Annex A attached hereto (Agent shall provide Borrower and each Bank
with a copy of the executed Amendment) and (ii) Agent shall have received such
other certificates, instruments, documents, agreements and opinions of counsel
as may be required by Agent or its counsel, each of which shall be in form and
substance satisfactory to Agent and its counsel.
Section 5. Further Extension of Credit Agreement. Borrower hereby
acknowledges that it is prepared to accept an extension of the Revolving Credit
Loan Maturity Date beyond the date set forth in Section 2 hereof pursuant to an
amendment containing the terms and conditions set forth in the term sheet
attached hereto as Exhibit B (the "Term Sheet"). Nothing contained herein or in
the Term Sheet shall be deemed to constitute a commitment or an agreement on the
part of any of Agent or Banks to enter into any waiver and/or amendment, on the
terms set forth in the Term Sheet or otherwise.
Section 6. Loan Documents Ratified and Confirmed. The Credit Agreement
and each of the other Loan Documents, as they may be specifically supplemented
or amended by this Amendment, are and shall continue to be in full force and
effect and are hereby in all respects ratified and confirmed. 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 Loan Documents, in each case as amended or
supplemented pursuant to this Amendment. All references to the "Credit
Agreement" contained in the Loan Documents shall mean or refer to the Credit
Agreement as amended and supplemented by this Amendment and as it may be further
amended, supplemented, modified and restated and in effect from time to time,
including without limitation any such amendment, supplement, modification or
restatement which increases the amount of Indebtedness owing by the Borrower
thereunder.
Section 7. Release. Borrower hereby releases, remises, acquits and
forever discharges each Bank, Agent and each Bank's and Agent's employees,
agents, representatives, consultants, attorneys, fiduciaries, officers,
directors, partners, predecessors, successors and assigns, subsidiary
corporations, parent corporations, and related corporate divisions (all of the
foregoing hereinafter called the "Released Parties"), from any and all actions
and causes of action, judgments, executions, suits, debts, claims, demands,
liabilities, obligations, damages and expenses of any and every character, known
or unknown, direct and/or indirect, at law or in equity, of whatsoever kind or
nature, for or because of any matter or things done, omitted or suffered to be
done by any of the Released Parties prior to and including the date of execution
hereof, and in any way directly or indirectly arising out of or in any way
connected to this Agreement or the Documents (all of the foregoing hereinafter
called the "Released Matters"). Borrower acknowledges that the agreements in
this Section are intended to be in full satisfaction of all or any alleged
injuries or damages arising in connection with the Released Matters.
2
Section 8. Conflicts. In the event of any express conflict between the
terms of this Amendment and the Credit Agreement, this Amendment shall govern.
Section 9. Representations and Warranties. Borrower hereby represents
and warrants as follows:
(a) This Amendment and the Credit Agreement, as amended hereby,
constitute legal, valid and binding obligations of Borrower and are enforceable
against Borrower in accordance with their respective terms.
(b) Upon the effectiveness of this Amendment, Borrower hereby reaffirms
all covenants, representations and warranties made in the Credit Agreement to
the extent the same are not amended hereby and agree that all such covenants,
representations and warranties shall be deemed to have been remade as of the
effective date of this Amendment.
(c) Except as set forth on the attached Exhibit A, no Event of Default
or Default has occurred and is continuing after giving effect to this Amendment
or would exist after giving effect to this Amendment.
(d) Borrower has no defense, counterclaim or offset with respect to the
Credit Agreement.
Section 10. Effect on the Loan Agreement.
(a) Upon the effectiveness of Section 2 hereof, each reference in the
Credit Agreement to "this Agreement," "hereunder," "hereof," "herein" or words
of like import shall mean and be a reference to the Credit Agreement as amended
hereby.
(b) Except as specifically amended herein, the Credit Agreement, and
all other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and are hereby
ratified and confirmed.
(c) The execution, delivery and effectiveness of this Amendment shall
not operate as a waiver of any right, power or remedy of Agent or Banks, nor
constitute a waiver of any provision of the Credit Agreement, or any other
documents, instruments or agreements executed and/or delivered under or in
connection therewith.
Section 11. 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 except as set forth on the attached
Exhibit A no Default or Event of Default is outstanding or would be created by
the consummation of the transactions described herein.
Section 12. Fees, Costs and Expenses. Borrower agrees to pay on demand,
after reasonable documentation and itemization of the same, all the costs and
expenses of the Agent
3
and the Banks, including all consultant and reasonable legal fees and expenses,
including without limitation all reasonable fees and expenses of counsel in
connection with the preparation, execution and delivery of this Amendment and
the other documents and instruments to be delivered herewith and all UCC search
and filing fees.
Section 13. Miscellaneous. This 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 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 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).
Section 14. Facsimile. Any signature delivered by a party by facsimile
transmission shall be deemed to be an original signature hereto.
REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
4
IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as an instrument under seal as of the date first above written.
PROVANT, INC.
By: /s/ Xxxxx Xxxx
-------------------------------
Title: Executive Vice President
CITIZENS BANK OF MASSACHUSETTS
By: /s/ Xxxxxx X. Xxxx
-------------------------------
Title: Vice President
FLEET NATIONAL BANK, as Bank and Agent
By: /s/ Xxxxx. X. Xxxxxx
-------------------------------
Title: Vice President
KEYBANK NATIONAL ASSOCIATION
By: /s/ Xxxxx Xxxxxx
-------------------------------
Title: Vice President
XXXXX FARGO BANK IOWA, N.A.
By: /s/ Xxxx X. Xxxxxx
-------------------------------
Title: Vice President
5
Exhibit 10.7
EXHIBIT A
---------
EVENTS OF DEFAULT
See Attached
EXHIBIT A/1/
EVENTS OF DEFAULT
The following existing Events of Default are exceptions to
representations made by the Borrower in Section 8(c) and Section 10 to the
Sixteenth Amendment to which this Exhibit A is annexed:
1. The failure of the Borrower to comply with the financial covenants
set forth in Sections 9.2, 9.3, 9.4 and 9.5 of the Credit Agreement for the
fiscal quarters ended March 31, 2002 through and including the fiscal quarter
ended September 30, 2002;
2. The failure of the Borrower to achieve the Twelfth Amendment
Benchmarks (as defined in the Thirteenth Amendment) on or before the dates
required to meet such Twelfth Amendment Benchmarks.
3. The failure of the Borrower to achieve the benchmarks set forth on
Exhibit 1 to the Thirteenth Amendment on or before the dates required to achieve
such benchmarks;
4. The failure of the Borrower to achieve the benchmarks set forth in
that certain letter agreement dated as of June 28, 2002 by the Agent and as
acknowledged by the other Banks, the Borrower and the Guarantors on or before
the dates required to meet such benchmarks;
5. The failure of the Borrower to achieve the benchmarks set forth in
Section 3 of the Fourteenth Amendment on or before the dates required to meet
such benchmarks; and
6. The failure of the Borrower to achieve the benchmarks set forth in
Subsection 3(b) of the Fifteenth Amendment to Revolving Credit Agreement on or
before the dates required to meet such benchmarks.
7. While the Borrower has, directly and through TRG, submitted
information regarding the determination of its Borrowing Base to the Agent and
the other Banks as required by the Credit Agreement, such information has not
been in the form and delivered in the manner set forth in Section 7.4 of the
Credit Agreement and certain of the information included in such reports has
been based upon best available estimates.
------------------------------
/1/ All capitalized terms used in this Exhibit A but not defined herein
shall have the meaning ascribed thereto in the Credit Agreement (as such term is
defined in the Sixteenth Amendment to Revolving Credit Agreement to which this
Exhibit A is attached).
EXHIBIT B
---------
TERM SHEET
See Attached
2
EXHIBIT I
TERM SHEET
----------
PROVANT, INC.
THE FOLLOWING TERM SHEET IS BEING FURNISHED SOLELY FOR DISCUSSION PURPOSES
AND DOES NOT CONSTITUTE A PROPOSAL, A COMMITMENT OR AN OFFER TO ENTER INTO OR
AMEND THE AMENDED AND RESTATED CREDIT AGREEMENT OR ANY OF THE WAIVERS OR
AMENDMENTS THERETO.
The Borrower, Agent and Banks will enter into an amendment ("Amendment No.
17") of the existing financing arrangements (the "Amended Facility"). The
Amended Facility will contain substantially all of the provisions of the
existing financing arrangements with the following modifications:
1. Waiver
As a result of the consummation of the Amended Facility, all Defaults and
Events of Default which have been disclosed to Agent by Borrower and are
continuing as of the closing date of Amendment No. 17, shall be deemed waived.
2. Amount of Credit Facility
The lesser of (a) $45,484,000 or (b) the Borrowing Base.
3. Pricing
Prime+2.50%, floating. Facility fee of $450,000 fully earned and payable
upon closing of the Amended Facility. Default interest rate will be the contract
rate plus 6.00% ("Default Rate"). The Default Rate will be imposed in the event
of any payment, covenant or reporting requirement default, any failure to
achieve milestone dates for the strategic initiatives outlined in Paragraph 7
herein (each, a "Strategic Initiative") or any other breach under the Amended
Facility.
4. Maturity
April 15, 2003.
5. Borrowing Base and Borrowing Base Certificate
The Borrowing Base will be limited to 85% of true trade AR, plus 60% of
costs in excess of xxxxxxxx and unbilled AR plus an overadvance amount. The
overadvance will be structured so as to not unduly impinge beginning liquidity
but to prevent a deterioration in the relative
collateral coverage of the Borrowing Base for the Revolving Credit Loans
outstanding. Borrower shall provide an updated Borrowing Base Certificate
semi-monthly as of the 15th and last day of each month, each such Certificate to
be delivered within ten (10) days after such date. End-of-Month Borrowing Base
Certificates will be enhanced to provide detail concerning true trade AR, costs
in excess of xxxxxxxx, unbilled revenues and other amounts due and owing the
Borrower. Cash in lock box will be swept down to $500,000 daily and applied to
the Revolving Credit Loans. Blocked lock box arrangement will be amended to
reflect such revised amount.
6. Junior Creditors, Specifically EEI, SI and Xxxxxx
Indebtedness owed by Borrower to each of Executive Education Institute,
Inc., Strategic Interactive, Inc. and the group of individuals consisting of
Xxxxxx X. Xxxxxx, Xxxxxx X. Xxxxxx and others (collectively, the "Junior
Creditors"), shall be extended and subordinated to the Obligations under the
Amended Facility. However, current interest will be permitted to be paid
monthly, at current rates, provided, however, that no payments will be permitted
upon the occurrence and during the continuance of any new Events of Default.
Punitive interest rates will not be acceptable. Junior Creditors to be provided
a fee for an extension of their respective obligations, not to exceed $65,000 in
the aggregate (approximately 15% of the Bank's fee). The term of the extension
must be through April 15, 2003. Agent and Banks will enter into an
inter-creditor agreement with the Junior Creditors. The agreement will, among
other things, identify liquidity events tied to success of the Strategic
Initiatives as outlined in Paragraph 7 herein and, except during the existence
of a payment default under the Amended Facility, provide for a sharing of net
proceeds from the Strategic Initiatives on an 85%-15% split based on net
proceeds (defined as sale proceeds less taxes and transaction costs). Sharing
will not apply in liquidity events where net proceeds are less than the book
value of collateral assets (AR, Inventory, other fixed assets) and in such
situations all net proceeds will be first paid entirely to reduce outstandings
under the Amended Facility. The Revolving Credit Loans must be paid down by not
less than $20,000,000 before sharing on the 85-15 split on the Government
Division Strategic Initiative. Junior Creditors are to be granted a silent
second lien position in the assets of Borrower with a 90-day standstill
provision on the exercise of secured lender remedies.
7. Strategic Initiatives
A. Sale of Provant in its Entirety
Drake Beam and Xxxxx ("DBM")
Documentation in support of a transaction, and an update from Borrower
with respect to the current status of negotiations is required by the earlier of
11/05/02 or the closing of the Amended Facility. Borrower has advised that,
subject to SEC delays, this transaction, if approved by Borrower's and DBM's
respective Boards of Directors and Borrower's stockholders, will be scheduled to
close by 12/31/02 (subject to SEC delays, but in no event later than 3/31/03)
and is the Strategic Initiative of choice for Borrower. Borrower shall use its
best efforts to comply with all SEC requests.
A definitive merger or buy-sell agreement between DBM and Borrower shall be
delivered to Agent by 11/15/02. Agent and Banks reserve the right in their sole
discretion to
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establish milestone events in connection with the DBM Sale, and failure to
achieve any such milestone events shall constitute an Event of Default, except
to the extent that such failure shall be the direct result of an SEC delay,
provided that Borrower shall have used its best efforts to comply with all SEC
requests.
Appropriate legal arrangements and mechanisms satisfactory to Agent and
Banks shall be established in order to ensure completion of this Strategic
Initiative notwithstanding any Event of Default.
B. Sale of the Government Division
The QuarterDeck engagement has been finalized and an executed copy of the
engagement letter, draft information memorandum and preliminary prospect list
have been delivered to Agent. An offering memorandum, solicitation books, target
prospect list and a preliminary timetable will be furnished to the Agent by the
earlier of 11/20/02 or such date on which there is a determination by Borrower
to abandon the DBM transaction. Milestone event dates in the timeline will serve
as milestone event dates in the Amended Facility with Events of Default arising
for failure to achieve such milestone events.
A Letter of Intent ("LOI") with respect to a transaction for the
divestiture of the Government Division, acceptable to Agent and Banks, is
required by 1/20/03 and such transaction must be closed by 3/31/03, provided,
however, that if the Strategic Initiative set forth in Paragraph 7(A) above is
viable and proceeding, and all milestone events shall have been achieved to
date, but such transaction has not closed by the foregoing dates, then such LOI
must be delivered by 2/15/03 and the transaction closed by 4/15/03.
Appropriate legal arrangements and mechanisms satisfactory to Agent and
Banks shall be established in order to ensure completion of this Strategic
Initiative notwithstanding any Event of Default.
C. Sale of the Non-Government Divisions
i. * had issued and subsequently withdrew an LOI with respect to the
purchase of all non-government divisions of Borrower (the "* Sale"). An update
from Borrower with respect to the current status of negotiations is required
weekly in accordance with Paragraph 9(f) below.
If the * Sale becomes viable again, appropriate legal arrangements and
mechanisms satisfactory to Agent and Banks shall be established in order to
ensure completion of this Strategic Initiative notwithstanding any Event of
Default.
Agent and Banks reserve the right in their sole discretion to establish
milestone events in connection with the * Sale, and failure to achieve any such
milestone events shall constitute an Event of Default.
-3-
ii. * has discontinued its due diligence during the pendency of the DBM
transaction. An update from Borrower with respect to the current status of any
negotiations is required weekly in accordance with Paragraph 9(f) below.
Appropriate legal arrangements and mechanisms satisfactory to Agent and
Banks shall be established in order to ensure completion of this Strategic
Initiative notwithstanding any Event of Default.
Agent and Banks reserve the right in their sole discretion to establish
milestone events in connection with the * Sale, and failure to achieve any such
milestone events shall constitute an Event of Default.
D. *
Borrower has advised Agent that *, an investment entity, has exhibited an
interest in purchasing a possible convertible preferred equity stake in Borrower
in the $15,000,000 range (the "* Investment"). No discussions with * have been
held since the Borrower's decision to pursue the DBM transaction. An update from
Borrower with respect to the current status of the * Investment is required
weekly in accordance with Paragraph 9(f) below.
Agent and Banks reserve the right in their sole discretion to establish
milestone events in connection with the * Investment, and failure to achieve any
such milestone events shall constitute an Event of Default.
X. Xxxxxxxxx Initiatives.
If Borrower and the respective parties under the initiatives discussed in
Paragraphs 7(A), (B) & (C) above are not engaging in good faith negotiations and
if the milestone events for consummating such Strategic Initiatives have not
been achieved, then Jefferies will be directed by Borrower to commence to
develop a plan to sell the divisions of Borrower on a one-off basis. Jefferies
shall be directed by Borrower to provide Agent with a draft plan of such sales
(the "Plan") by 11/30/02, unless a definitive merger agreement has been signed
with DBM as contemplated in Paragraph 7(A) above prior to such date. The Plan
shall include timeline, draft memorandum of solicitation, preliminary prospect
list, etc.
Appropriate legal arrangements and mechanisms satisfactory to Agent and
Banks shall be established in order to ensure completion of this Strategic
Initiative notwithstanding any Event of Default.
Agent and Banks reserve the right in their sole discretion to establish
milestone events in connection with the Plan, and failure to achieve any such
milestone events shall constitute an Event of Default.
-4-
8. Financial Covenants
Financial covenants will include consolidated net worth, profitability,
cash flow leverage, minimum EBITDA (discrete month, quarter and YTD aggregate),
interest coverage, and CAPEX. All covenants not otherwise noted will be tested
quarterly. All metrics will be based on current projections allowing for
approximately 12.5% variance on the downside except for CAPEX which is a hard
maximum cap. CAPEX to be tested monthly. Covenant compliance certificates shall
be due within 20 days of period's close.
9. Financial Reporting
CRO is to be responsible for the preparation and submission of all
Borrowing Base Certificates, covenant compliance certificates and financial
reporting requirements. All submissions are to be certified and approved by CEO
or CFO of the Borrower.
In addition to current reporting requirements, Borrower will provide to Agent:
a) Monthly detailed AR agings, within fifteen (15) days of each month
end. Submission of the September report will be a condition precedent
to closing the Amended Facility.
b) Monthly contract status report identifying major contracts by
division/operating unit and status of contract engagement, within
twenty (20) days of each month end.
c) Quarterly contract/proposal/revenue event backlog report, within
twenty (20) days after the end of each fiscal quarter, with monthly
updates as to progression of backlog to be provided within fifteen
(15) days of each month end.
d) Monthly report estimating costs in excess of xxxxxxxx and xxxxxxxx in
excess of costs by contract, within ten (10) days of each month end.
e) Monthly report by division and operating unit listing all assets,
other than Borrowing Base assets, within twenty (20) days of each
month end.
f) Status report to facilitate tracking progression of milestone events
for all Strategic Initiatives and establishment of additional
milestone events. Report will be submitted to Agent, and verbally
presented via conference call to Banks, weekly.
Failure to provide financial and other reporting as required will constitute an
Event of Default.
10. Warrants
The Banks will be granted detachable 10-year warrants for an equity
interest in the Borrower equal to non-dilutable 15% of the equity, providing for
cashless exercise and demand and piggyback registration rights. The warrants
will vest and become exercisable as to (a) 3% on closing of the Amended
Facility, (b) 3% on 12/31/02 if the Strategic Initiatives set forth in either
Paragraph 7(a) or 7(c) above have not occurred by such date, (c) 3% on 3/31/03
if the outstanding principal balance of the Revolving Credit Loans has not been
reduced by not less than $20,000,000 by such date, and (d) 6% on 4/15/03 if the
outstanding principal balance of the Revolving Credit Loans has not been paid in
full by such date. Borrower has the option to pay to the Agent and Banks a "fee
in lieu" of any warrant vesting, in an amount equal to (i) $100,000 with respect
to each 3% warrant, and (ii) $200,000 with respect to the 6% warrant. Such "fee
in
-5-
lieu" amounts are based upon a valuation of the Borrower's common stock of $0.15
per share. In the event that any Strategic Initiative is consummated at a
valuation in excess of $0.15 per share of Borrower's common stock (such
valuation to be determined by Agent and Banks in their sole discretion, each a
"Valuation Event"), the "fee in lieu" amount with respect to warrants to be
issued subsequent to the date of such Valuation Event will be proportionately
increased based upon such higher per-share valuation, provided, however, that
any consummation of a Strategic Initiative at a valuation of less than $0.l5 per
share of Borrower's common shall have no effect on the "fee in lieu" amount.
Upon the occurrence of any new Event of Default resulting from a missed payment
or acceleration of the Revolving Credit Loans, all remaining unvested warrants
will immediately vest.
11. Fees
Counsel fees and expense reimbursement due from the Borrower will be
expanded to include all fees and expenses incurred by Banks other than the Agent
beginning 11/01/01.
12. Voting Rights
Revise voting rights to better balance declaration of default and
acceleration with respect to Events of Default. Recommend keeping current
provisions of the syndication until 1/15/03 and following that date all waiver
provisions will require 100% vote of the Banks.
13. Swing Line
Fleet will establish a swing line facility of up to $3,000,000 to
facilitate expected daily sweeps of lock box deposits. The swing line will be a
sub-line of and not in addition to the existing Revolving Credit facility. The
swing line and Revolving Credit Loans will settle out weekly with the Banks.
14. Release/Affirmation
Customary releases by Borrower of Agent and Banks for all actions, conduct,
etc. and affirmation of existing indebtedness.
