Exhibit 10.1

 

THIRD AMENDMENT TO

REVOLVING CREDIT AGREEMENT

 

THIS THIRD AMENDMENT TO REVOLVING CREDIT AGREEMENT (this “Amendment”), is made
and entered into as of October 27, 2004, by and among LANDAMERICA FINANCIAL
GROUP, INC., a Virginia corporation (the “Borrower”), the several banks and
other financial institutions from time to time party hereto (collectively, the
“Lenders”) and SUNTRUST BANK, in its capacity as Administrative Agent for the
Lenders (the “Administrative Agent”), as Issuing Bank (the “Issuing Bank”), and
as Swingline Lender (the “Swingline Lender”).

 

W I T N E S S E T H:

 

WHEREAS, the Borrower, the Lenders and the Administrative Agent are parties to
that certain Revolving Credit Agreement, dated as of November 6, 2003, as
amended by that certain First Amendment to Revolving Credit Agreement, dated as
of March 17, 2004, and as further amended by that certain Second Amendment to
Revolving Credit Agreement, dated as of April 30, 2004 (as so amended and as
further amended, restated, supplemented or otherwise modified from time to time,
the “Credit Agreement”; capitalized terms used herein and not otherwise defined
shall have the meanings assigned to such terms in the Credit Agreement),
pursuant to which the Lenders have made certain financial accommodations
available to the Borrower; and

 

WHEREAS, the Borrower has requested that the Lenders and the Administrative
Agent amend certain provisions of the Credit Agreement, and subject to the terms
and conditions hereof, the Administrative Agent and the Lenders are willing to
do so;

 

NOW, THEREFORE, for good and valuable consideration, the sufficiency and receipt
of all of which are acknowledged, the Borrower, the Lenders and the
Administrative Agent agree as follows:

 

1. Amendments.

 

(a) Section 1.1 of the Credit Agreement is hereby amended by:

 

(i) in subsection (ix) of the definition of “Indebtedness”, deleting at the end
thereof the phrase “excluding 2004 Convertible Debenture Hedges”;

 

(ii) replacing the defined term “2004 Convertible Debentures” in its entirety
with the following new defined term “2004 Convertible Debentures”:

 

“2004 Convertible Debenture” shall mean, collectively, senior unsecured
convertible debentures of the Borrower, in an aggregate amount not to exceed One
Hundred Twenty-Five Million Dollars ($125,000,000), as described on Schedule 7.1
attached hereto.

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(iii) inserting the following new defined term “Rabbi Trust” in its proper
alphabetical order:

 

“Rabbi Trust” shall mean a non-qualified deferred compensation trust that
qualifies as a “rabbi trust” under the Code.

 

(b) Article 4 of the Credit Agreement is hereby amended by adding at the end
thereof the following new Sections 4.19 and 4.20:

 

Section 4.19. OFAC. Neither the Borrower nor any of its Subsidiaries (i) is a
Person whose property or interest in property is blocked or subject to blocking
pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking
Property and Prohibiting Transactions With Persons Who Commit, Threaten to
Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) engages in any
dealings or transactions prohibited by Section 2 of such executive order, or is
otherwise associated with any such person in any manner violative of Section 2,
or (iii) is a Person on the list of Specially Designated Nationals and Blocked
Persons or subject to the limitations or prohibitions under any other U.S.
Department of Treasury’s Office of Foreign Assets Control regulation or
executive order.

 

Section 4.20. Patriot Act. Each of the Borrower and its Subsidiaries is in
compliance, in all material respects, with the (i) the Trading with the Enemy
Act, as amended, and each of the foreign assets control regulations of the
United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
and any other enabling legislation or executive order relating thereto, and (ii)
the Uniting And Strengthening America By Providing Appropriate Tools Required To
Intercept And Obstruct Terrorism (USA Patriot Act of 2001). No part of the
proceeds of the Loans will be used, directly or indirectly, for any payments to
any governmental official or employee, political party, official of a political
party, candidate for political office, or anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper
advantage, in violation of the United States Foreign Corrupt Practices Act of
1977, as amended.

 

(c) Section 5.1 of the Credit Agreement is hereby amended by:

 

(i) replacing subsection (c)(ii) of such Section in its entirety with the
following new subsection (c)(ii):

 

(ii) an internally prepared and unaudited balance sheet, income statement and
operating cash flows statement for certain non-title Subsidiaries mutually
agreed upon by the Borrower and the Administrative Agent;

 

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(ii) replacing subsection (i) of such Section in its entirety with the following
new subsection (i):

 

(i) promptly after the same become publicly available, copies of all periodic
and other reports, proxy statements and other materials filed with the
Securities and Exchange Commission, or any Governmental Authority succeeding to
any or all functions of said Commission, or with any national securities
exchange, or distributed by the Borrower to its shareholders generally, as the
case may be and copies of all filings or reports (other than routine,
non-material filings and reports) that the Borrower or any of its Material
Subsidiaries files with the NAIC or any insurance commissioner or department or
analogous Governmental Authority;

 

(d) Section 7.1 of the Credit Agreement is hereby amended by

 

(i) replacing subsections (f) and (j) of such Section in their entirety with the
following new subsections (f) and (j):

 

(f) Other Indebtedness incurred by the Borrower with an aggregate principal
amount not to exceed $50,000,000 at any one time outstanding;

 

(j) Indebtedness incurred in connection with Investments permitted by Section
7.4(c); and

 

(ii) adding the following new subsection (k):

 

(k) The 2004 Convertible Debenture.

 

(e) Section 7.4 of the Credit Agreement is hereby amended by replacing
subsections (c) and (f) of such Section in their entirety with the following new
subsections (c) and (f):

 

(c) Investments (i) by the Borrower or any of its Subsidiaries in a Subsidiary
or (ii) by any Subsidiary in the Borrower;

 

(f) loans to agents in an amount not to exceed $60,000,000 in the aggregate at
any one time outstanding;

 

(f) Section 7.5 of the Credit Agreement is hereby amended by

 

(i) replacing subsection (c) of such Section in its entirety with the following
new subsection (c):

 

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(c) declare or pay cash dividends to its stockholders and purchase, redeem or
otherwise acquire shares of its capital stock or warrants, rights or options to
acquire any such shares for cash in an aggregate amount for all such dividends,
purchases, redemptions and acquisitions not in excess of 40% of Consolidated Net
Income of the Borrower arising after December 31, 2002 and computed on a
cumulative consolidated basis; provided, that immediately after giving effect to
such proposed action, no Default or Event of Default would exist;

 

(ii) deleting the “.” at the end of subsection (d) thereof and replacing it with
“; and”; and

 

(iii) adding the following new subsection (e):

 

(e) purchase, redeem or otherwise acquire shares of its common stock pursuant to
the terms of a Rabbi Trust.

 

(g) Section 7.11 of the Credit Agreement is hereby amended by replacing
subsection (d) of such Section in its entirety with the following new subsection
(d):

 

(d) Guaranty Obligations of the Borrower or any Subsidiary with respect to the
Indebtedness of any Subsidiary or other Affiliate of the Borrower or any agent
of a Subsidiary (such agency occurring in the ordinary course of such
Subsidiary’s business) in an amount not to exceed $40,000,000 in the aggregate
at any one time outstanding; and

 

(h) Section 7.13 of the Credit Agreement is hereby amended by

 

(i) deleting the “.” at the end of subsection (d) thereof and replacing it with
“; and” and

 

(ii) adding the following as a new subsection (e):

 

(e) leases acquired or assumed by the Borrower or any Subsidiary pursuant to an
Acquisition permitted hereunder and any renewal or extension thereof.

 

2. Conditions to Effectiveness of this Amendment. Notwithstanding any other
provision of this Amendment and without affecting in any manner the rights of
the Lenders hereunder, it is understood and agreed that this Amendment shall not
become effective, and the Borrower shall have no rights under this Amendment,
until the Administrative Agent shall have received (i) an amendment fee in the
amount of 0.10% of the Revolving Commitments, to be shared pro rata among the
Lenders, consisting of at least the Required Lenders, that consent to this
Amendment and deliver, without reservation, to the Administrative Agent executed
counterparts to this Amendment not later than October 21, 2004, (ii) such other
fees as the Borrower has previously agreed to pay the Administrative Agent or
any of its affiliates in

 

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connection with this Amendment, (iii) reimbursement or payment of its costs and
expenses incurred in connection with this Amendment or the Credit Agreement
(including reasonable fees, charges and disbursements of King & Spalding LLP,
counsel to the Administrative Agent), and (iv) each of the following documents:

 

(a) executed counterparts to this Amendment from the Borrower, the
Administrative Agent and the Required Lenders; and

 

(b) any other documents or agreements as reasonably requested by the
Administrative Agent.

 

3. Representations and Warranties. To induce the Lenders and the Administrative
Agent to enter into this Amendment, the Borrower hereby represents and warrants
to the Lenders and the Administrative Agent that:

 

(a) The execution, delivery and performance by the Borrower of this Amendment
(i) are within the Borrower’s power and authority; (ii) have been duly
authorized by all necessary corporate and shareholder action; (iii) are not in
contravention of any provision of the Borrower’s articles of incorporation or
bylaws or other organizational documents; (iv) do not violate any law or
regulation, or any order or decree of any Governmental Authority; (v) do not
conflict with or result in the breach or termination of, constitute a default
under or accelerate any performance required by, any indenture, mortgage, deed
of trust, lease, agreement or other instrument to which the Borrower or any of
its Material Subsidiaries is a party or by which the Borrower or any such
Subsidiary or any of their respective property is bound; (vi) do not result in
the creation or imposition of any Lien upon any of the property of the Borrower
or any of its Material Subsidiaries; and (vii) do not require the consent or
approval of any Governmental Authority or any other Person;

 

(b) This Amendment has been duly executed and delivered for the benefit of or on
behalf of the Borrower and constitutes a legal, valid and binding obligation of
the Borrower, enforceable against the Borrower in accordance with its terms
except as the enforceability hereof may be limited by bankruptcy, insolvency,
reorganization, moratorium and other laws affecting creditors’ rights and
remedies in general; and

 

(c) After giving effect to this Amendment, the representations and warranties
contained in the Credit Agreement and the other Loan Documents are true and
correct in all material respects, and no Default or Event of Default has
occurred and is continuing as of the date hereof.

 

4. Effect of Amendment. Except as set forth expressly herein, all terms of the
Credit Agreement, as amended hereby, and the other Loan Documents shall be and
remain in full force and effect and shall constitute the legal, valid, binding
and enforceable obligations of the Borrower to the Lenders and the
Administrative Agent. The execution, delivery and effectiveness of this
Amendment shall not, except as expressly provided herein, operate as a waiver of
any right, power or remedy of the Administrative Agent and the Lenders under the

 

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Credit Agreement, nor constitute a waiver of any provision of the Credit
Agreement. This Amendment shall constitute a Loan Document for all purposes of
the Credit Agreement.

 

5. Governing Law. This Amendment shall be governed by, and construed in
accordance with, the internal laws of the State of New York and all applicable
federal laws of the United States of America.

 

6. No Novation. This Amendment is not intended by the parties to be, and shall
not be construed to be, a novation of the Credit Agreement or an accord and
satisfaction in regard thereto.

 

7. Costs and Expenses. The Borrower agrees to pay on demand all costs and
expenses of the Administrative Agent in connection with the preparation,
execution and delivery of this Amendment, including, without limitation, the
reasonable fees and out-of-pocket expenses of outside counsel for the
Administrative Agent with respect thereto.

 

8. Counterparts. This Amendment may be executed by one or more of the parties
hereto in any number of separate counterparts, each of which shall be deemed an
original and all of which, taken together, shall be deemed to constitute one and
the same instrument. Delivery of an executed counterpart of this Amendment by
facsimile transmission or by electronic mail in pdf form shall be as effective
as delivery of a manually executed counterpart hereof.

 

9. Binding Nature. This Amendment shall be binding upon and inure to the benefit
of the parties hereto, their respective successors, successors-in-titles, and
assigns.

 

10. Entire Understanding. This Amendment sets forth the entire understanding of
the parties with respect to the matters set forth herein, and shall supersede
any prior negotiations or agreements, whether written or oral, with respect
thereto.

 

[Signature Pages To Follow]

 

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IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly
executed, under seal in the case of the Borrower, by their respective authorized
officers as of the day and year first above written.

 

BORROWER: LANDAMERICA FINANCIAL GROUP, INC. By:  

/s/ Ronald B. Ramos

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Name:   Ronald B. Ramos Title:   Senior Vice President and Treasurer

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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LENDERS:

SUNTRUST BANK, as Administrative

Agent, as Issuing Bank, as Swingline Lender

and as a Lender

By:  

/s/ Mark A. Flatin

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Name:

 

Mark A. Flatin

Title:

 

Director

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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WACHOVIA BANK, NATIONAL

ASSOCIATION, as Syndication Agent and

a Lender

By:

 

/s/ Susan F. Owens

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Name:

 

Susan F. Owens

Title:

 

Senior Vice President

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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UNION BANK OF CALIFORNIA, N.A. as

Documentation Agent and as a Lender

By:

 

/s/ Joseph Argabrite

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Name:

 

Joseph Argabrite

Title:

 

Vice President

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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US BANK, NATIONAL ASSOCIATION,

as a Lender

By:

 

/s/ Douglas A. Rich

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Name:

 

Douglas A. Rich

Title:

 

Vice President

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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COMERICA BANK, as a Lender

By:

 

/s/ James F. Cooper

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Name:

 

James F. Cooper

Title:

 

First Vice President

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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FLEET NATIONAL BANK, as a Lender

 

By:

 

/s/ Renee Sampson

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Name:

 

Renee Sampson

Title:

 

Vice President

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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JP MORGAN CHASE BANK, as a Lender

By:

 

/s/ Lawrence Palumbo, Jr.

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Name:

 

Lawrence Palumbo, Jr.

Title:

 

Vice President

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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PNC BANK, NATIONAL ASSOCIATION,

as a Lender

By:

 

/s/ Kirk Seagers

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Name:

 

Kirk Seagers

Title:

 

Vice President

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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WELLS FARGO BANK, N.A., formerly

known as Wells Fargo Bank Arizona, N.A.,

as a Lender

By:

 

/s/ M. Scott Parker

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Name:

 

M. Scott Parker

Title:

 

Vice President

 

[SIGNATURE PAGE TO THIRD AMENDMENT]

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BANK ONE, N.A., as a Lender

By:

 

/s/ Michele Liby

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Name:

 

Michele Liby

Title:

 

First Vice President

 

[SIGNATURE PAGE TO THIRD AMENDMENT]