1 EXHIBIT 10.42 FIRST AMENDMENT TO CANADIAN CREDIT AGREEMENT dated as of September 25, 1998, among INGRAM MICRO INC., and INGRAM MICRO INC. (CANADA),as the Borrowers and Guarantors, and CERTAIN FINANCIAL INSTITUTIONS, as the Relevant Required Lenders amending the US $150,000,000 CANADIAN CREDIT AGREEMENT dated as of October 28, 1997, also among INGRAM MICRO INC. and INGRAM MICRO INC. (CANADA), as the Borrowers and Guarantors, CERTAIN FINANCIAL INSTITUTIONS, as the Lenders, THE BANK OF NOVA SCOTIA, as Administrative Agent for the Lenders, ROYAL BANK OF CANADA, as Syndication Agent for the Lenders, and BANK OF TOKYO-MITSUBISHI (CANADA), as the Co-Agent PREPARED BY HAYNES AND BOONE, L.L.P. 2 FIRST AMENDMENT TO CANADIAN CREDIT AGREEMENT THIS DOCUMENT is entered into as of September 25, 1998, among: INGRAM MICRO INC., a corporation organized and existing under the laws of the State of Delaware, United States of America ("MICRO"); INGRAM MICRO INC., a corporation organized and existing under the laws of the Province of Ontario, Canada ("MICRO CANADA," and collectively with Micro, the "BORROWERS"); and The financial institutions executing this document as Lenders (the "RELEVANT REQUIRED LENDERS"). (see PARAGRAPH 1 below regarding defined terms) This document is being executed and delivered to amend certain provisions of the Canadian Credit Agreement (as renewed, extended, amended, or supplemented, the "CREDIT AGREEMENT") dated as of October 28, 1997, among (a) the Borrowers; (b) certain Lenders (which includes the Relevant Required Lenders); and (c) The Bank of Nova Scotia ("SCOTIABANK"), as administrative agent for the Lenders (in such capacity, the "ADMINISTRATIVE AGENT"), Royal Bank of Canada ("ROYAL BANK"), as syndication agent for the Lenders (in such capacity, the "SYNDICATION AGENT"), and Bank of Tokyo-Mitsubishi (Canada), as the co-agent (in such capacity, the "CO-AGENT"), all of which are collectively the "AGENTS". Effective December 22, 1997, Micro Singapore ceased to be a Subsidiary of Micro, and effective January 15, 1998, in accordance with SECTION 11.15 of the Credit Agreement, Micro Singapore ceased to be a Guarantor under the Credit Agreement. The Relevant Required Lenders have agreed, upon and subject to the terms and conditions of this document, to alter the terms of the Credit Agreement as provided below. ACCORDINGLY, for adequate and sufficient consideration, the Borrowers and the Relevant Required Lenders agree as follows: 1. TERMS AND REFERENCES. Unless otherwise stated in this document, terms defined in the Credit Agreement have the same meanings when used in this document and references to "ARTICLES," "SECTIONS," "SCHEDULES," and "EXHIBITS" are to the Credit Agreement's articles, sections, schedules, and exhibits. 2. AMENDMENTS. Subject to PARAGRAPH 3 below but otherwise effective as of the date of this document, the Credit Agreement is amended as follows: A. SECTION 1.1 is amended by adding or entirely amending, as the case may be, the following defined terms in alphabetical order with all other defined terms in that section: "ACQUIRED EXISTING DEBT AND LIENS" means, for a period of 90 days following the acquisition or merger of a Person by or into Micro or any of its Subsidiaries or the acquisition of a business unit of a Person or the assets of a Person or business unit of a Person by Micro or any of its Subsidiaries, the Indebtedness and Liens of that Person or business unit that (a) were not incurred in connection with that acquisition or merger and do not constitute any refinancing of Indebtedness so incurred and (b) were in existence at the time of that acquisition or merger. 3 "ADDITIONAL PERMITTED LIENS" means, as of any date (a) Liens securing Indebtedness and not described in CLAUSES (A) through (L) of SECTION 8.2.2, but only to the extent that (i) the Amount of Additional Liens on that date does not exceed twenty percent (20%) of Consolidated Tangible Net Worth on that date and (ii) Borrowers are otherwise in compliance with SECTION 8.2.1(b), and (b) Liens constituting Acquired Existing Debt and Liens on that date. "BANKERS' ACCEPTANCE" means (a) a non-interest bearing bill of exchange in Canadian Dollars having a term of not less than 30 nor more than 180 days and maturing on a Business Day, drawn by a Borrower, and accepted by a Lender, as evidenced by such Lender's endorsement thereon at the direction of such Borrower, or (b) a depository bill, within the meaning of the Depository Bills and Notes Act (Canada). "FOREIGN SUBSIDIARY" means any Subsidiary that is not domiciled in the United States. "MICRO SINGAPORE" means Ingram Micro Singapore Pte Ltd., a corporation organized and existing under the laws of Singapore, but it is no longer party to any Loan Document. "SENIOR CONSOLIDATED FUNDED DEBT" means, as of any date of determination, the total of all Consolidated Funded Debt of Micro and its Consolidated Subsidiaries outstanding on such date that ranks PARI PASSU with the Obligations. B. The definition of "Material Asset Acquisition" in SECTION 1.1 is amended to add the words "or 8.2.9(d)" at the end of it. C. In the definition of "Total Indebtedness of Subsidiaries" in SECTION 1.1 (i) the word "and" before CLAUSE (b) is replaced with a comma and (ii) a new CLAUSE (c) is added as follows: , and (c) any Indebtedness under any Loan Document (as defined in this Agreement, the U.S. Credit Agreement, and the European Credit Agreement). D. SECTION 1.1 is amended by entirely deleting the definitions of the terms "Consolidated Current Assets," "Consolidated Current Liabilities," and "Consolidated Current Ratio". E. A new SECTION 7.18 is added as follows: SECTION 7.18 YEAR 2000. Micro believes that its computer applications that are material to its business and operations will be able to perform properly date-sensitive functions for all dates on and after January 1, 2000, EXCEPT to the extent that a failure to do so would not reasonably be expected to have a Material Adverse Effect. F. SECTION 8.1.10 is amended by adding the parenthetical "(OTHER THAN Foreign Subsidiaries)" after the 9th word "Subsidiaries" in CLAUSE (c) of that section. G. SECTION 8.2.1(b) is entirely amended as follows: FIRST AMENDMENT 4 (b) Micro will not at the end of any Fiscal Period permit (i) Total Indebtedness of Subsidiaries (OTHER THAN Indebtedness of any Guarantor and Indebtedness constituting Acquired Existing Debt and Liens) to exceed twenty percent (20%) of Consolidated Tangible Net Worth, or (ii) SECTION 8.2.2(m) to be violated. H. SECTIONS 8.2.2(k) and (l) are entirely amended as follows: (k) Liens of the nature referred to in CLAUSE (b) of the definition of the term "LIEN" and granted to a purchaser or any assignee of such purchaser which has financed the relevant purchase of Trade Accounts Receivable of any Borrower or any of their respective subsidiaries and Liens on any related property that would ordinarily be subject to a Lien in connection therewith such as proceeds and records; (l) Liens on accounts receivable of Micro Canada with respect to any accounts receivable securitization program and on any related property that would ordinarily be subject to a Lien in connection therewith such as proceeds and records; and I. SECTION 8.2.3(a) is entirely amended as follows: (a) [INTENTIONALLY BLANK] J. SECTION 8.2.3(c) is entirely amended as follows: (c) (i) the ratio of (A) the average daily balances of Senior Consolidated Funded Debt during any Fiscal Period to (B) Consolidated EBITDA for the period of four Fiscal Periods ending on the last day of such Fiscal Period to exceed 3.5 to 1.0; and (ii) the ratio of (A) the average daily balances of Consolidated Funded Debt during any Fiscal Period (B) to Consolidated EBITDA for the period of four Fiscal Periods ending on the last day of such Fiscal Period to exceed 4.0 to 1.0; PROVIDED THAT, for purposes of calculating the preceding ratios (A) Consolidated Funded Debt on any day shall be the amount otherwise determined pursuant to the definition thereof plus the amount of Consolidated Transferred Receivables on such day, and (B) the contribution of any Subsidiary of Micro acquired (to the extent the acquisition is treated for accounting purposes as a purchase) during those four Fiscal Periods to Consolidated EBITDA shall be calculated on a PRO FORMA basis as if it had been a Subsidiary of Micro during all of those four Fiscal Periods. K. SECTION 8.2.3(d) is entirely amended as follows: (d) the Consolidated Tangible Net Worth at the end of any Fiscal Period to be less than the SUM of (i) 90% of Consolidated Tangible Net Worth at the end of the Fiscal Year ending nearest to December 31, 1997, PLUS (ii) 50% of Consolidated Net Income (without taking into account any losses incurred in any Fiscal Year) for each Fiscal Year ended thereafter that ends on or before the last day of that Fiscal Period. L. The proviso in SECTION 8.2.4 is entirely amended as follows: FIRST AMENDMENT 5 ; PROVIDED, HOWEVER, THAT, Micro may redeem, purchase or acquire (a) any of its capital stock (i) issued to employees pursuant to any Plan or other contract or arrangement relating to employment upon the termination of employment or other events or (ii) in a transaction contemplated by the Transition Agreements and (b) any of its Indebtedness that is convertible into its securities. M. The words "such or" are deleted as the 27th and 28th words of the last sentence of SECTION 8.2.6. N. SECTION 8.2.7(a) is entirely amended as follows: (a) No Borrower may make any Material Asset Acquisition UNLESS no Event of Default exists or would exist after giving effect to the proposed Material Asset Acquisition. O. SECTION 8.2.9 is amended as follows: (1) The word "and" is deleted at the end of SECTION 8.2.9(b). (2) SECTION 8.2.9(c) is entirely amended as follows: (c) so long as no Event of Default has occurred and is continuing or would occur after giving effect thereto, Micro and any Subsidiary of Micro may Dispose of assets in transactions exclusively among Micro and any of its Subsidiaries or among Subsidiaries of Micro that satisfy the requirements of SECTION 8.2.6; PROVIDED THAT, notwithstanding any provision hereof to the contrary, in the event that, immediately after giving effect to any Disposition described in this CLAUSE (c) to a Subsidiary of Micro, such Subsidiary shall own assets constituting at least ten percent (10%) of Consolidated Assets determined as of the last day of the most recently completed Fiscal Period, such Subsidiary of Micro shall be deemed a Material Subsidiary for all purposes hereunder as of the date of such Disposition and Micro shall cause any such Material Subsidiary (UNLESS a Foreign Subsidiary) promptly to execute and deliver an Additional Guaranty in favor of the Lender Parties in accordance with SECTION 8.1.10. (3) A new SECTION 8.2.9(d) is added as follows: (d) subject to SECTION 8.2.8, any Borrower may (and may permit any of its Subsidiaries to) sell, assign, grant a Lien in, or otherwise transfer any interest in its Trade Accounts Receivable and related property such as proceeds and records. P. The last parenthetical phrase in SECTION 9.1.3 that begins with the word "excluding" is entirely deleted. Q. The last parenthetical in SECTION 9.1.5 is entirely amended as follows: (without the giving of further notice or lapse of additional time) FIRST AMENDMENT 6 3. CONDITIONS PRECEDENT. Notwithstanding any contrary provision, PARAGRAPH 2 above is not effective unless and until (A) all principal, interest, fees, costs, and expenses due under the Credit Agreement (as amended by this document), all fees payable to either Agent in connection with this document as agreed to between such Agent and Micro, and all outstanding fees and expenses of counsel to the Agents are, in each case, paid in full to the extent due and payable (and, unless an amount is otherwise provided by the Loan Documents and without waiving the right for subsequent reimbursement in accordance with the Loan Documents, to the extent that a reasonably detailed invoice is presented to Micro by September 21, 1998) after giving effect to this document and (B) the Administrative Agent receives either (i) counterparts of this document duly executed and delivered by an Authorized Person of each Obligor and by the Required Lenders or (ii) facsimile, telegraphic, or other written confirmation of the execution of counterparts of this document. 4. REPRESENTATIONS. To induce the Relevant Required Lenders to enter into this document, the Borrowers (for themselves and each other Obligor) jointly and severally represent and warrant to the Agents, Co-Agent, and the Lenders as follows: A. CREDIT AGREEMENT. Each of the representations and warranties of each Obligor set forth in ARTICLE VII of the Credit Agreement (excluding those contained in SECTION 7.8) is true and correct as though made on and as of the date of this document (unless stated to relate solely to an earlier date, in which case, such representations and warranties were true and correct as of such earlier date) with each reference in those representations to "this Agreement," the "Loan Documents," "hereof," "hereunder," "thereof," "thereunder," and words of like import being, for purposes of this clause, references to the Credit Agreement and the Loan Documents, in each case as amended or waived by this document. B. ENFORCEABILITY. Upon execution and delivery by the Obligors and the Required Lenders, this document will constitute a valid and binding agreement of each Obligor, enforceable against it in accordance with this document's terms except as such enforcement may be limited by applicable bankruptcy, insolvency, reorganization, or other similar laws relating to or limiting creditors' rights generally or by general principles of equity. C. OBLIGORS. As of the date of, and after giving effect to, this document, the only Obligors under the Credit Agreement and Loan Documents are Micro; Micro Canada; Ingram European Coordination Center N.V., a company organized and existing under the laws of The Kingdom of Belgium; Ingram Micro Holdings Limited, a corporation organized and existing under the laws of the United Kingdom; and Ingram Micro (UK) Limited, a corporation organized and existing under the laws of the United Kingdom. 5. RATIFICATIONS. To induce the Relevant Required Lenders to enter into this document each Borrower (and, by its execution below, each other Obligor) (A) ratifies and confirms all provisions of the Credit Agreement and other Loan Documents to which it is a party, as amended or waived by this document, and (B) ratifies and confirms that all guaranties granted in favor of any of the Agents or the Lenders under the Loan Documents (as they may have been renewed, extended, amended, or supplemented) are not released, reduced, or otherwise adversely affected by this document, or any other Loan Document, and continue to guarantee full payment and performance of the present and future Obligations. FIRST AMENDMENT 7 6. MISCELLANEOUS. A. CREDIT AGREEMENT AND LOAN DOCUMENTS. Upon the effectiveness of PARAGRAPH 2 above as provided in PARAGRAPH 3 above, all references in the Loan Documents to the "Credit Agreement" refer to the Credit Agreement as amended by this document. This document is a "Loan Document" referred to in the Credit Agreement, and the provisions relating to Loan Documents in ARTICLES I and XI are incorporated in this document by reference. Except as specifically amended and modified in this document, the Credit Agreement is unchanged and continues in full force and effect. No change or waiver of any provision of this document is valid unless in a writing that is signed by the party against whom it is sought to be enforced. B. GOVERNING LAW. This document shall be deemed to be a contract made under and governed by the laws of the Province of Ontario, Canada. C. COUNTERPARTS. This document may be executed in any number of counterparts with the same effect as if all signatories had signed the same document. All counterparts shall be construed together to constitute one and the same document. REMAINDER OF PAGE INTENTIONALLY BLANK. THIS PAGE IS FOLLOWED BY A SIGNATURE PAGE FOR THE OBLIGORS, FOLLOWED BY SEPARATE SIGNATURE PAGES FOR THE RELEVANT REQUIRED LENDERS. FIRST AMENDMENT 8 EXECUTED as of the date first stated in this First Amendment to Canadian Credit Agreement. INGRAM MICRO INC., a corporation INGRAM MICRO INC., a corporation organized and existing under organized and existing under the laws of the State of Delaware, the laws of the Province of United States, as a Borrower and Ontario, Canada, as a Borrower a Guarantor and a Guarantor By /s/ James F. Ricketts By /s/ Michael J. Grainger -------------------------------- -------------------------------- Name: James F. Ricketts Name: Michael J. Grainger Title: Vice President & Title: Authorized Representative Worldwide Treasurer ADDRESS: 1600 E. St. Andrew Place ADDRESS: 230 Barmac Drive Santa Ana, CA 92705 Weston, Ontario Canada M9L 2Z3 FACSIMILE NO.: 714-566-9447 FACSIMILE NO.: 4161-740-8623 ATTENTION: James F. Ricketts ATTENTION: Robert E. Carbrey The undersigned Obligors consent and agree in all respects to PARAGRAPH 5 and all other provisions of the foregoing First Amendment to Credit Agreement as Obligors under the Credit Agreement and all related Loan Documents as those terms are defined in the Credit Agreement. INGRAM MICRO HOLDINGS LTD., INGRAM MICRO (UK) LTD., as an Obligor as an Obligor By /s/ Stephen Gill By /s/ Stephen Gill -------------------------------- -------------------------------- Name: Stephen Gill Name: Stephen Gill Title: Vice President Finance and Title: VP, Finance and CFO Europe CFO Europe ADDRESS: Ingram House ADDRESS: Ingram House Garamonde Drive Garamonde Drive Wymbush Wymbush Milton Keynes Milton Keynes Bucks MK8 8DF Bucks MK8 8DF FACSIMILE NO.: 011-32-2-254-9290 FACSIMILE NO.: 011-32-2-254-9290 ATTENTION: Stephen Gill ATTENTION: Stephen Gill 9 EXECUTED as of the date first stated in this First Amendment to Canadian Credit Agreement. INITIAL COMMITMENT PERCENTAGE AMOUNT 30% $45,000,000 THE BANK OF NOVA SCOTIA, as the Administrative Agent By /s/ R. J. Boomhour -------------------------------------- Name: R. J. Boomhour Title: Senior Product Manager THE BANK OF NOVA SCOTIA By /s/ Jean Hopkins -------------------------------------- Name: Jean Hopkins Title: Relationship Manager THE BANK OF NOVA SCOTIA By /s/ Michael House Name: Michael House Title: Account Officer LENDING OFFICE FOR CREDIT LENDING OFFICE FOR CREDIT EXTENSIONS EXTENSIONS TO MICRO CANADA: TO MICRO: The Bank of Nova Scotia The Bank of Nova Scotia 44 King Street West 580 California Street 16th Floor Suite 2100 TORONTO, ON M5H 1H1 San Francisco, CA 94104 Facsimile No.: 416-866-2009 Facsimile No.: 415-397-0791 Attention: Jean Hopkins Attention: Ed Kofman Relationship Manager Relationship Manager FEE PAYMENT LOCATION FOR CREDIT FEE PAYMENT LOCATION FOR CREDIT EXTENSIONS TO MICRO CANADA: EXTENSIONS TO MICRO: The Bank of Nova Scotia The Bank of Nova Scotia 44 King Street West Suite 2700 16th Floor 600 Peachtree Street N.E. Toronto, ON M5H 1H1 Atlanta, GA 30308 Facsimile No.: 416-866-2009 Facsimile No.: 404-888-8998 Attention: Jean Hopkins Attention: George Wong Relationship Manager Manager 10 EXECUTED as of the date first stated in this First Amendment to Canadian Credit Agreement. INITIAL COMMITMENT PERCENTAGE AMOUNT 30% $45,000,000 ROYAL BANK OF CANADA By /s/ Karen L. Condon -------------------------------------- Name: Karen L. Condon Title: Senior Account Manager ROYAL BANK OF CANADA By /s/ Brian J. Smith -------------------------------------- Name: Brian J. Smith Title: Senior Manager LENDING OFFICE FOR CREDIT EXTENSIONS LENDING OFFICE FOR CREDIT EXTENSIONS TO MICRO CANADA: TO MICRO: Royal Bank of Canada Royal Bank of Canada 13th Floor, South Tower 600 Wilshire Boulevard 200 Bay Street Suite 800 Toronto, ON M5J 2J5 Los Angeles, CA 90017 Facsimile No.: 416-974-2249 Facsimile No.: 213-955-5350 Attention: Karen Condon Attention: Michael A. Cole Senior Account Manager Manager Corporate Banking FEE PAYMENT LOCATION FOR CREDIT FEE PAYMENT LOCATION FOR CREDIT EXTENSIONS TO MICRO CANADA: EXTENSIONS TO MICRO: Royal Bank of Canada Royal Bank of Canada 13th Floor, South Tower 600 Wilshire Boulevard 200 Bay Street Suite 800 Toronto, ON M5J 2J5 Los Angeles, CA 90017 Facsimile No.: 416-974-2249 Facsimile No.: 213-955-5350 Attention: Karen Condon Attention: Michael A. Cole Senior Account Manager Manager Corporate Banking 11 EXECUTED as of the date first stated in this First Amendment to Canadian Credit Agreement. INITIAL COMMITMENT PERCENTAGE AMOUNT 10% $15,000,000 BANK OF TOKYO-MITSUBISHI (CANADA) By /s/ T. Vanderlaan -------------------------------------- Name: T. Vanderlaan Title: Vice President THE BANK OF TOKYO-MITSUBISHI LTD. By /s/ Richard L. Van de Berghe, Jr. -------------------------------------- Name: Richard L. Van de Berghe, Jr. Title: Attorney-in-Fact LENDING OFFICE FOR CREDIT EXTENSIONS LENDING OFFICE FOR CREDIT EXTENSIONS TO MICRO CANADA: TO MICRO: Bank of Tokyo-Mitsubishi (Canada) The Bank of Tokyo-Mitsubishi Ltd. Royal Bank Plaza 1251 Avenue of the Americas South Tower, Suite 2100 New York, NY 10020-1104 Toronto, ON M5J 2J1 Facsimile No.: 212-782-6445 Facsimile No.: 416-865-9511 Attention: Richard Van de Berghe Attention: Ted Vanderlaan Attorney-in-Fact Vice President Corporate Banking Group FEE PAYMENT LOCATION FOR CREDIT FEE PAYMENT LOCATION FOR CREDIT EXTENSIONS TO MICRO CANADA: EXTENSIONS TO MICRO: Bank of Tokyo-Mitsubishi (Canada) The Bank of Tokyo-Mitsubishi Ltd. Royal Bank Plaza 1251 Avenue of the Americas South Tower, Suite 2100 New York, NY 10020-1104 Toronto, ON M5J 2J1 Facsimile No.: 212-782-6445 Facsimile No.: 416-865-9511 Attention: Richard Van de Berghe Attention: Ted Vanderlaan Attorney-in-Fact Vice President Corporate Banking Group 12 EXECUTED as of the date first stated in this First Amendment to Canadian Credit Agreement. INITIAL COMMITMENT PERCENTAGE AMOUNT 10% $15,000,000 CANADIAN IMPERIAL BANK OF COMMERCE By /s/ Howard Palmer -------------------------------------- Name: Howard Palmer Title: Executive Director CIBC INC. By /s/ Eric Burton -------------------------------------- Name: Eric Burton Title: Commercial Specialist Banking LENDING OFFICE FOR CREDIT EXTENSIONS LENDING OFFICE FOR CREDIT EXTENSIONS TO MICRO CANADA: TO MICRO: Canadian Imperial Bank of Commerce Canadian Imperial Bank of Commerce Commercial Sales & Service Centre Two Paces West, 2727 Paces Ferry Road 595 Bay Street, 5th Floor Suite 1200 Toronto, Ontario M5G 2C2 Atlanta, GA 30339 Facsimile No.: 416-980-8582 Facsimile No.: 770-319-4827 Attention: Joan Lasley Attention: Kim Perrone FEE PAYMENT LOCATION FOR CREDIT FEE PAYMENT LOCATION FOR CREDIT EXTENSIONS TO MICRO CANADA: EXTENSIONS TO MICRO: Canadian Imperial Bank of Commerce Canadian Imperial Bank of Commerce Commercial Sales & Service Centre Two Paces West, 2727 Paces Ferry Road 595 Bay Street, 5th Floor Suite 1200 Toronto, Ontario M5G 2C2 Atlanta, GA 30339 Facsimile No.: 416-980-8582 Facsimile No.: 770-319-4827 Attention: Joan Lasley Attention: Kim Perrone 13 EXECUTED as of the date first stated in this First Amendment to Canadian Credit Agreement. INITIAL COMMITMENT PERCENTAGE AMOUNT 6.7% $10,000,000 BANK OF MONTREAL By /s/ Kanu Modi -------------------------------------- Name: Kanu Modi Title: Director LENDING OFFICE FOR CREDIT EXTENSIONS LENDING OFFICE FOR CREDIT EXTENSIONS TO MICRO CANADA: TO MICRO: Bank of Montreal Bank of Montreal First Canadian Place Suite 4900 24th Floor 601 South Figureroa Street Toronto, ON M5X 1A1 Los Angeles, CA 90017 Facsimile No.: 416-867-5818 Facsimile No.: 213-239-0680 Attention: Stuart Brannan Attention: Craig Ingram Director FEE PAYMENT LOCATION FOR CREDIT FEE PAYMENT LOCATION FOR CREDIT EXTENSIONS TO MICRO CANADA: EXTENSIONS TO MICRO: Bank of Montreal Bank of Montreal First Canadian Place Suite 4900 24th Floor 601 South Figureroa Street Toronto, ON M5X 1A1 Los Angeles, CA 90017 Facsimile No.: 416-867-5818 Facsimile No.: 213-239-0680 Attention: Stuart Brannan Attention: Craig Ingram Director 14 EXECUTED as of the date first stated in this First Amendment to Canadian Credit Agreement. INITIAL COMMITMENT PERCENTAGE AMOUNT 6.7% $10,000,000 CREDIT LYONNAIS CANADA By_______________________________________ Name:__________________________________ Title:_________________________________ By_______________________________________ Name:__________________________________ Title:_________________________________ CREDIT LYONNAIS LOS ANGELES BRANCH By_______________________________________ Name:__________________________________ Title:_________________________________ LENDING OFFICE FOR CREDIT EXTENSIONS LENDING OFFICE FOR CREDIT EXTENSIONS TO MICRO CANADA: TO MICRO: Credit Lyonnais Canada Credit Lyonnais Los Angeles Branch One Financial Place, Suite 2505 515 South Flower Street One Adelaide Street East Suite 2200 Toronto, ON M5C 2V9 Los Angeles, CA 90071-2201 Facsimile No.: 416-202-6525 Facsimile No.: 213-623-3437 Attention: Helen Thomas Attention: Diane Scott Vice President Corporate Banking FEE PAYMENT LOCATION FOR CREDIT FEE PAYMENT LOCATION FOR CREDIT EXTENSIONS TO MICRO CANADA: EXTENSIONS TO MICRO: Credit Lyonnais Canada Credit Lyonnais Los Angeles Branch One Financial Place, Suite 2505 515 South Flower Street One Adelaide Street East Suite 2200 Toronto, ON M5C 2V9 Los Angeles, CA 90071-2201 Facsimile No.: 416-202-6525 Facsimile No.: 213-623-3437 Attention: Helen Thomas Attention: Diane Scott Vice President Corporate Banking 15 EXECUTED as of the date first stated in this First Amendment to Canadian Credit Agreement. INITIAL COMMITMENT PERCENTAGE AMOUNT 6.7% $10,000,000 THE INDUSTRIAL BANK OF JAPAN (CANADA) By /s/ Campbell McLeigh -------------------------------------- Name: Campbell McLeigh Title: Senior Vice President THE INDUSTRIAL BANK OF JAPAN, LIMITED ATLANTA AGENCY By /s/ Koichi Hasegawa -------------------------------------- Name: Koichi Hasegawa Title: Senior Vice President and Deputy General Manager LENDING OFFICE FOR CREDIT EXTENSIONS LENDING OFFICE FOR CREDIT EXTENSIONS TO MICRO CANADA: TO MICRO: The Industrial Bank of Japan (Canada) The Industrial Bank of Japan, Limited Box 29, Suite 1102 Atlanta Agency 100 Yonge Street One Ninety One Peachtree Tower Toronto, ON M5C 2W1 Suite 3600 191 Peachtree Street, N.E. Facsimile No.: 416-367-3452 Atlanta, GA 30303-1757 Attention: Campbell McLeish Facsimile No.: 404-524-8509 Vice President Attention: James Masters Vice President FEE PAYMENT LOCATION FOR CREDIT FEE PAYMENT LOCATION FOR CREDIT EXTENSIONS TO MICRO CANADA: EXTENSIONS TO MICRO: The Industrial Bank of Japan (Canada) The Industrial Bank of Japan, Limited Box 29, Suite 1102 Atlanta Agency 100 Yonge Street One Ninety One Peachtree Tower Toronto, ON M5C 2W1 Suite 3600 191 Peachtree Street, N.E. Facsimile No.: 416-367-3452 Atlanta, GA 30303-1757 Attention: Campbell McLeish Facsimile No.: 404-524-8509 Vice President Attention: James Masters Vice President