First Amendment

First Amendment

 

Exhibit 10.31
     THIS FIRST AMENDMENT dated as of November 28, 2006 (this “Amendment”) amends the Amended and Restated Five-Year Credit and Guarantee Agreement dated as of August 10, 2005 (the “Credit Agreement”) among Block Financial Corporation (the “Borrower”), H&R Block, Inc. (the “Guarantor”), various financial institutions (the “Lenders”) and JPMorgan Chase Bank, N.A., as administrative agent for the Lenders (in such capacity, the “Administrative Agent”). Capitalized terms used but not defined herein have the respective meanings set forth in the Credit Agreement.
     WHEREAS, the Borrower, the Guarantor, the Lenders and the Administrative Agent have entered into the Credit Agreement; and
     WHEREAS, the parties hereto desire to amend the Credit Agreement as set forth herein;
     NOW, THEREFORE, the parties hereto agree as follows:
     SECTION 1 Amendments. Subject to the satisfaction of the condition precedent set forth in Section 3, the Credit Agreement is amended as follows:
     1.1 Amendment to Section 3.8. Section 3.8 is amended in its entirety to read as follows:
     SECTION 3.8. Investment Company Status. Neither of the Credit Parties nor any of the Subsidiaries is an “investment company” as defined in, or subject to regulation under, the Investment Company Act of 1940, as amended.
     1.2 Amendments to Section 6.2. Section 6.2 is amended as follows:
     (a) Clause (m) is amended in its entirety to read as follows:
     (m) subject to the proviso at the end of this Section 6.2, Indebtedness incurred in connection with the Borrower’s Refund Anticipation Loan Program, including any Indirect RAL Participation Transaction; provided that (i) such Indebtedness is incurred during the period beginning on January 2 of any year and ending on June 29 of such year, (ii) such Indebtedness is repaid in full by June 30 of the year in which such Indebtedness is incurred and (iii) the covenants contained in any agreement relating to such Indebtedness, or guarantee thereof (other than covenants specific to the Borrower’s Refund Anticipation Loan Program and the operation thereof), are no more restrictive than the covenants contained in this Agreement;
     (b) The last paragraph is amended by deleting the clause beginning “except” at the end thereof and substituting the following therefor:
except that, during the period from January 2 of any year through June 30 of such year, such sum may exceed the greater of the Total Facility Commitments then in effect or the then Total Facility Loan Outstandings by an amount up to the total of (A) the aggregate

 


 

outstanding principal amount of Indebtedness described in subsection 6.2(m) and (B) $500,000,000.
     1.3 Amendment to Section 10.1. Section 10.1 (a) is amended in its entirety to read as follows:
     (a) if to the Borrower or the Guarantor, to it at One H&R Block Way, Kansas City, Missouri 64105, Attention of Becky Shulman (Telecopy No. (816) 854-4242), David Staley (Telecopy No. (816) 854-4239) and Andrew Somora (Telecopy No. (816) 753-0037);
     SECTION 2 Representations and Warranties. Each of the Borrower and the Guarantor represents and warrants to the Administrative Agent and the Lenders that, after giving effect to the effectiveness hereof, (a) each representation and warranty set forth in Article III of the Credit Agreement (other than the representations and warranties set forth in subsections 3.4(b), 3.6(a)(i) and 3.6(b)) is true and correct in all material respects as of the date hereof with the same effect as if made on the date hereof (except to the extent related to a specific earlier date) and (b) no Default or Event of Default shall have occurred and be continuing.
     SECTION 3 Effectiveness. The amendments set forth herein shall become effective upon receipt by the Administrative Agent of counterparts of this Amendment executed by the Borrower, the Guarantor and the Required Lenders.
     SECTION 4 Miscellaneous.
     4.1 Continuing Effectiveness, etc. Except as expressly amended hereby, the provisions of the Credit Agreement are and shall remain in full force and effect. After the effectiveness of this Amendment, all references in the Credit Agreement and the other Loan Documents to “Credit Agreement” or similar terms shall refer to the Credit Agreement as amended hereby.
     4.2 Counterparts. This Amendment may be executed in any number of counterparts and by the different parties on separate counterparts, and each such counterpart shall be deemed to be an original but all such counterparts shall together constitute one and the same Amendment. Delivery of a counterpart hereof, or an executed signature hereto, by facsimile or by e-mail (in pdf or similar format) shall be effective as delivery of a manually-executed counterpart hereof.
     4.3 Governing Law. This Amendment shall be construed in accordance with and governed by the law of the State of New York.

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     Delivered as of the day and year first above written.
             
    BLOCK FINANCIAL CORPORATION
 
           
 
  By:   /s/ Becky S. Shulman    
 
           
 
  Name:   Becky S. Shulman    
 
  Title:   Senior Vice President and Treasurer    
 
           
    H&R BLOCK, INC.
 
           
 
  By:   /s/ Becky S. Shulman    
 
           
 
  Name:   Becky S. Shulman    
 
  Title:   Senior Vice President and Treasurer    

 


 

             
    JPMORGAN CHASE BANK, N.A., as
Administrative Agent, as a Lender and as Swingline
Lender
 
           
 
  By:   /s/ Elisabeth H. Schwabe    
 
           
 
  Name:   Elisabeth H. Schwabe    
 
  Title:   Managing Director
JPMorgan Chase Bank
   

 


 

             
    BANK OF AMERICA, N.A.
 
           
 
  By:   /s/ Alexa B. Bradford    
 
           
 
  Name:   Alexa B. Bradford    
 
  Title:   Senior Vice President    

 


 

             
    GREENWICH CAPITAL MARKETS, INC.,
AS AGENT FOR THE ROYAL BANK OF
SCOTLAND PLC
 
           
    /s/ Fergus Smail    
         
    Fergus Smail    
    Vice President

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    BARCLAYS CAPITAL PLC
 
           
 
  By:        
 
           
 
  Name:        
 
           
 
  Title:        
 
           

-5-


 

             
    HSBC BANK USA, NATIONAL ASSOCIATION
 
           
 
  By:   /s/ Peter Nealon    
 
           
 
  Name:   Peter Nealon    
 
  Title:   Managing Director    

-6-


 

             
    CITIBANK, N.A.
 
           
 
  By:   /s/ Andrew Kreeger    
 
           
 
  Name:   Andrew Kreeger    
 
  Title:   Vice President    

-7-


 

             
    KEY BANK NATIONAL ASSOCIATION
 
           
 
  By:   /s/ Donald F. Carmichael, Jr.    
 
           
 
  Name:   Donald F. Carmichael, Jr.    
 
  Title:   Vice President    

-8-


 

             
    WELLS FARGO BANK, N.A.
 
           
 
  By:   /s/ Thiplada Siddiqui    
 
           
 
  Name:   Thiplada Siddiqui    
 
  Title:   Vice President    

-9-


 

             
    CALYON NEW YORK BRANCH
 
           
 
  By:   /s/ Sebastian Rocco    
 
           
 
  Name:   Sebastian Rocco    
 
  Title:   Managing Director    
 
           
 
  By:   /s/ [ILLEGIBLE]    
 
           
 
  Name:   [ILLEGIBLE]    
 
  Title:   Director    

-10-


 

             
    MELLON BANK, N.A.
 
           
 
  By:   /s/ Daniel Beagle    
 
           
 
  Name:   Daniel Beagle    
 
  Title:   First Vice President    

-11-


 

             
    ROYAL BANK OF CANADA
 
           
 
  By:   /s/ Dustin Craven    
 
           
 
  Name:   Dustin Craven    
 
  Title:   Attorney-in-Fact    

-12-


 

             
    SUNTRUST BANK
 
           
 
  By:   /s/ Steven A. Deily    
 
           
 
  Name:   Steven A. Deily    
 
  Title:   Managing Director    

-13-


 

             
    U.S. BANK NATIONAL ASSOCIATION
 
           
 
  By:   /s/ Michael J. Reymann    
 
           
 
  Name:   Michael J. Reymann    
 
  Title:   Senior Vice President    

-14-


 

             
    WACHOVIA BANK, NATIONAL
ASSOCIATION
 
           
 
  By:   /s/ Joan Anderson    
 
           
 
  Name:   Joan Anderson    
 
  Title:   Director    

-15-


 

             
    BNP PARIBAS
 
           
 
  By:   /s/ Tomasz Rydel    
 
           
 
  Name:   Tomasz Rydel    
 
  Title   Vice-President    
 
           
 
  By:   /s/ Chris Grumboski    
 
           
 
  Name:   Chris Grumboski    
 
  Title:   Director    

-16-


 

             
    COMERICA BANK
 
           
 
  By:   /s/ Mark J. Leveille    
 
           
 
  Name:   Mark J. Leveille    
 
  Title:   Assistant Vice President    

-17-


 

             
    E.SUN COMMERCIAL BANK, LTD. (LOS
ANGELES)
 
           
 
  By:        
 
           
 
  Name:        
 
           
 
  Title:        
 
           

-18-


 

             
    DEUTSCHE BANK AG NEW YORK BRANCH
 
           
 
  By:        
 
           
 
  Name:        
 
           
 
  Title:        
 
           

-19-


 

             
    FIFTH THIRD BANK
 
           
 
  By:   /s/ Christopher D. Jones    
 
           
 
  Name:   Christopher D. Jones    
 
  Title:   Vice President    

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    LEHMAN BROTHERS BANK, FSB
 
           
 
  By:   /s/ Janine M. Shugan    
 
           
 
  Name:   Janine M. Shugan    
 
  Title:   Authorized Signatory    

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    MERRILL LYNCH BANK USA
 
           
 
  By:   /s/ Louis Alder    
 
           
 
  Name:   Louis Alder    
 
  Title:   Director    

-22-


 

             
    SUMITOMO MITSUI BANKING CORPORATION
 
           
 
  By:   /s/ Shigeru Tsuru    
 
           
 
  Name:
Title:
  Shigeru Tsuru
Joint General Manager
   

-23-


 

             
    UBS LOAN FINANCE LLC
 
           
 
  By:   /s/ Richard L. Tavrow    
 
           
 
  Name:   Richard L. Tavrow    
 
  Title:   Director    
 
           
 
  By:   /s/ Irja R. Otsa    
 
           
 
  Name:   Irja R. Otsa    
 
  Title:   Associate Director    

-24-


 

             
    BANK MIDWEST, N.A.
 
           
 
  By:   /s/ Brian Bower    
 
           
 
  Name:   Brian Bower    
 
  Title:   Vice President    

-25-


 

             
    CHANG HWA COMMERCIAL BANK, LTD.
 
           
 
  By:        
 
           
 
  Name:        
 
           
 
  Title:        
 
           

-26-


 

             
    COMMERCE BANK, N.A.
 
           
 
  By:        
 
           
 
  Name:        
 
           
 
  Title:        
 
           

-27-


 

             
    NATIONAL CITY BANK
 
           
 
  By:   /s/ Michael J. Durbin    
 
           
 
  Name:   Michael J. Durbin    
 
  Title:   Senior Vice President    

-28-


 

             
    PNC BANK, NATIONAL ASSOCIATION
 
           
 
  By:   /s/ Louis K. McLinden    
 
           
 
  Name:   Louis K. McLinden    
 
  Title:   Vice President    

-29-


 

             
    UMB BANK, N.A.
 
           
 
  By:   /s/ Thomas S. Terry    
 
           
 
  Name:   Thomas S. Terry    
 
  Title:   Senior Vice President    

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