Amendment to Credit Agreement between Wells Fargo Bank, N.A. and Labor Ready, Inc. (July 31, 2002)
Wells Fargo Bank and Labor Ready, Inc. have agreed to modify their existing Credit Agreement, originally dated January 4, 2002. This amendment adds a new provision regarding a "change of control" event, aligning it with the definition used in related GECC Letter of Credit Documents. All other terms of the original Credit Agreement remain unchanged. Labor Ready, Inc. must acknowledge and accept these changes by signing and returning the letter by August 7, 2002.
EXHIBIT 10.59
Wells Fargo Bank N.A.
Tacoma Regional Commercial Banking Office
1201 Pacific Avenue, Third Floor
Tacoma, WA ###-###-####
800 ###-###-####
253 ###-###-#### Fax
July 31, 2002
Mr. Steven C. Cooper
Executive Vice President &
Chief Financial Officer
Labor Ready, Inc.
P.O. Box 2910
Tacoma, Washington 98401
Dear Steve:
Wells Fargo Bank, National Association (“Bank”) has made a credit accommodation to Labor Ready, Inc., a Washington corporation (“Borrower”), pursuant to the Credit Agreement dated as of January 4, 2002 (the signed Credit Agreement incorrectly shows the date as January 4, 2001), executed by Bank and Borrower (the “Credit Agreement”). Except as otherwise defined herein, all capitalized terms herein shall have the meanings given in the Credit Agreement.
In Bank’s prior letter to Borrower dated June 12, 202 (the “Consent Letter”), the parties confirmed Bank’s consent to a certain subordinated debt offering and modified the EBITDA Coverage Ratio in Section 4.9(d) of the Credit Agreement. When the consent Letter was executed the parties agreed to subsequently negotiate a mutually acceptable “change of control” provision for the Credit Agreement. This letter will confirm the following agreement between Bank and Borrower:
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| Section 6.1 of the Credit Agreement shall be deemed modified hereby to include the following paragraph at the end thereof: |
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| “(i) The occurrence of any “Change of Control” as defined in the GECC Letter of Credit Documents, as same may be amended by any amendment consented to by Bank.” |
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| 2. |
| Except as expressly provide herein, all terms and provision of the Credit Agreement and the other loan documents shall continue in full force and effect without waiver or modification, and Bank reserves all of its rights, privileges and remedies in connection therewith |
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Please acknowledge your acceptance of the foregoing by executing and returning to the undersigned this letter or a copy hereof not later than August 7, 2002.
Sincerely,
WELLS FARGO BANK, NATIONAL ASSOCIATION
| By: | /s/ Edward Foreman | |
| Title: | VICE PRESIDENT | |
Acknowledged and agreed to by:
LABOR READY, INC.
| By: | /s/ Steve Cooper | |
| Title: | CFO | |
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