Exhibit 10.43
NOTE: PORTIONS OF THIS AGREEMENT ARE THE SUBJECT OF A
CONFIDENTIAL TREATMENT REQUEST BY THE REGISTRANT TO THE
SECURITIES AND EXCHANGE COMMISSION. SUCH PORTIONS HAVE BEEN
REDACTED AND ARE MARKED WITH A “[****]” IN PLACE OF THE REDACTED LANGUAGE.
FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT
     THIS FIRST AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this
“Amendment”), dated as of October 29, 2010, is by and among PENSON WORLDWIDE,
INC., a Delaware corporation (the “Borrower”), each lender from time to time
party hereto (collectively, the “Lenders” and each individually, a “Lender”),
REGIONS BANK, as Administrative Agent (in such capacity, the “Administrative
Agent”), Swing Line Lender, and Letter of Credit Issuer, REGIONS CAPITAL
MARKETS, a division of Regions Bank, as Lead Arranger and Bookrunner, THE
PRIVATE BANK AND TRUST COMPANY, as Syndication Agent (the “Syndication Agent”)
and TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, and CAPITAL ONE, N.A., as
Co-Documentation Agents (the “Documentation Agent”).
RECITALS:
     A. The Borrower, the Lenders party thereto and the Administrative Agent
have entered into that certain Second Amended and Restated Credit Agreement
dated as of May 6, 2010 (as the same may be amended, modified, supplemented or
restated from time to time, the “Credit Agreement”).
     B. The Borrower, the Lenders, and the Administrative Agent now desire to
amend the Credit Agreement as provided herein.
     NOW, THEREFORE, in consideration of the premises herein contained and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrower, the Administrative Agent and the Lenders party
hereto hereby agree as follows:
ARTICLE I
Definitions
     Section 1.1 Definitions. Capitalized terms used in this Amendment, to the
extent not otherwise defined herein, shall have the same meanings as in the
Credit Agreement, as amended hereby.
ARTICLE II
Amendments to the Credit Agreement
     Section 2.1 Amendments to Section 1.01 of the Credit Agreement.
     (a) Effective as of the date hereof, the following definitions shall be
added to Section 1.01 of the Credit Agreement in alphabetical order to read in
their entirety as follows:

 

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     “Availability” means the sum of (a) the Total Commitments minus (b) the
Total Outstandings.
     “First Amendment Effective Date” means October 29, 2010.
     “Original Consolidated Leverage Ratio” means, at any time, the maximum
Consolidated Leverage Ratio that would have been in effect prior to the First
Amendment Effective Date for such time, as follows: (a) from May 6, 2010 through
the fiscal quarter ending March 31, 2011, **** to ****, (b) from the fiscal
quarter ending June 30, 2011 through the fiscal quarter ending September 30,
2011, **** to ****, (c) from the fiscal quarter ending December 31, 2011 through
the fiscal quarter ending September 30, 2012, **** to **** and (d) from the
fiscal quarter ending December 31, 2012 and thereafter, **** to ****.
     (b) Effective as of the date hereof, the following definitions in
Section 1.01 of the Credit Agreement shall be amended and restated to read in
their entirety as follows:
     “Applicable Margin” means the following percentages per annum, based upon
the Consolidated Leverage Ratio as set forth in the most recent Compliance
Certificate received by the Administrative Agent pursuant to Section 6.02(a):
     (a) At any time that the Consolidated Leverage Ratio is greater than the
Original Consolidated Leverage Ratio for any measurement period, (i) with
respect to commitment fees, **** %, (ii) with respect to LIBOR Rate Loans and
Letters of Credit, **** % and (iii) with respect to Base Rate Loans, **** %; and
     (b) At any time that the Consolidated Leverage Ratio is less than or equal
to the Original Consolidated Leverage Ratio for any measurement period:

                                                      LIBOR            
Applicable Margin   Rate/     Pricing   Consolidated   Commitment   Letters of  
  Level   Leverage Ratio   Fee   Credit   Base Rate   1    
Less than **** to ****
    **** %     **** %     **** %   2    
Greater than or equal to **** to **** but less than **** to ****
    **** %     **** %     **** %   3    
Greater than or equal to **** to **** but less than **** to ****
    **** %     **** %     **** %   4    
Greater than or equal to **** to **** but less than **** to ****
    **** %     **** %     **** %   5    
Greater than or equal to **** to ****
    **** %     **** %     **** %

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Any increase or decrease in the Applicable Margin resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day
immediately following the date a Compliance Certificate is delivered pursuant to
Section 6.02(a); provided, however, that if a Compliance Certificate is not
delivered when due in accordance with such Section, then Pricing Level 5 shall
apply as of the first Business Day after the date on which such Compliance
Certificate was required to have been delivered until such Compliance
Certificate is delivered indicating a different Pricing Level. The Applicable
Margin in effect from the First Amendment Effective Date shall be determined
according to subsection (a) hereof.
     “Consolidated EBITDA” means, for any period, and in all cases without
duplication, for the Borrower and its Subsidiaries on a consolidated basis, an
amount equal to Consolidated Net Income for such period plus (a) the following
to the extent deducted in calculating such Consolidated Net Income: (i) Interest
Charges for such period, (ii) the provision for Federal, state, local and
foreign income taxes payable by the Borrower and its Subsidiaries for such
period, (iii) depreciation and amortization expense, (iv) non-cash stock based
compensation, (v) costs, expenses and fees incurred in connection with the Ridge
Acquisition, the 2017 Notes Offering, the 2014 Notes Offering, the Existing
Credit Agreement and this Agreement (including amendments hereto) and (vi) all
one-time, non-recurring expenses incurred or charged to income during such
period minus (b) the following to the extent included in calculating such
Consolidated Net Income: (i) Federal, state, local and foreign income tax
credits of the Borrower and its Subsidiaries for such period and (ii) all
non-cash items increasing Consolidated Net Income for such period. In addition,
for the twelve month period following the closing of the Ridge Acquisition, the
calculation of Consolidated EBITDA shall include an amount equal to $1,050,000
for any month (commencing with the first full month after the closing of the
Ridge Acquisition) for which the actual EBITDA earned by PFS and attributable to
correspondent clearing contracts acquired in the Ridge Acquisition is not
included in the calculation of Consolidated EBITDA.
     Section 2.2 Amendment to Section 2.01 of the Credit Agreement. Effective as
of the date hereof, Section 2.01 of the Credit Agreement shall be amended and
restated to read in its entirety as follows:
     2.01 Revolving Loans. Subject to the terms and conditions set forth herein,
each Lender severally agrees to make loans (each such loan, a “Revolving Loan”)
to the Borrower from time to time, on any Business Day during the Availability
Period, in an aggregate amount not to exceed at any time outstanding the amount
of such Lender’s Commitment; provided, however, that after giving effect to any
Revolving Borrowing, (i) the Total Outstandings shall not exceed the Total
Commitments, and (ii) the aggregate Outstanding Amount of the Revolving Loans of
any Lender, plus such Lender’s Pro Rata Percentage of the Outstanding Amount of
all Letter of Credit Obligations, plus such Lender’s Pro Rata Percentage of the
Outstanding Amount of all Swing Line Loans shall not exceed such Lender’s
Commitment; and provided further that, notwithstanding anything in this
Agreement to the contrary, at any time that the Consolidated Leverage Ratio is
greater than the Original Consolidated Leverage Ratio for a measurement period,
Availability shall be limited to $25,000,000. Within the limits of each Lender’s

3

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Commitment, and subject to the other terms and conditions hereof, the Borrower
may borrow under this Section 2.01, prepay under Section 2.05, and reborrow
under this Section 2.01. Revolving Loans may be Base Rate Loans or LIBOR Rate
Loans, as further provided herein.
     Section 2.3 Amendment to Section 2.05(c) of the Credit Agreement. Effective
as of the date hereof, Section 2.05(c) of the Credit Agreement shall be amended
and restated to read in its entirety as follows:
     (c) If for any reason the Total Outstandings at any time exceed the Total
Commitments then in effect, or if the Total Outstandings exceed the Availability
permitted under Section 2.01, the Borrower shall immediately prepay Loans and/or
Cash Collateralize the Letter of Credit Obligations in an aggregate amount equal
to such excess; provided, however, that the Borrower shall not be required to
Cash Collateralize the Letter of Credit Obligations pursuant to this
Section 2.05(c) unless after the prepayment in full of the Loans the Total
Outstandings exceed the Total Commitments then in effect.
     Section 2.4 Amendment to Section 7.16(b) of the Credit Agreement. Effective
as of the date hereof, Section 7.16(b) of the Credit Agreement shall be amended
and restated to read in its entirety as follows:
     (b) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed
Charge Coverage Ratio as of the end of any fiscal quarter measured quarterly in
arrears on a rolling four quarter basis of the Borrower to be less than (i) for
the fiscal quarter ending September 30, 2010 through the fiscal quarter ending
June 30, 2011, **** to **** and (ii) for the fiscal quarter ending September 30,
2011 and thereafter, **** to ****.
     Section 2.5 Amendment to Section 7.16(c) of the Credit Agreement. Effective
as of the date hereof, Section 7.16(c) of the Credit Agreement shall be amended
and restated to read in its entirety as follows:
     (c) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as
of the end of any fiscal quarter measured quarterly in arrears on a rolling four
quarter basis to be greater than (i) for the fiscal quarter ending September 30,
2011, **** to ****, (ii) for the fiscal quarter ending December 31, 2011 through
the fiscal quarter ending September 30, 2012, **** to **** and (iii) for the
fiscal quarter ending December 31, 2012 and thereafter, **** to ****. The
Consolidated Leverage Ratio shall not be tested for the fiscal quarter ending
**** through the fiscal quarter ending ****.
     Section 2.6 Addition of Section 7.16(g) to the Credit Agreement. Effective
as of the date hereof, a new Section 7.16(g) is added to the Credit Agreement
immediately following Section 7.16(f) to read in its entirety as follows:
     (g) Minimum Consolidated EBITDA. Permit the Consolidated EBITDA as of the
end of any fiscal quarter commencing with the fiscal quarter ending
September 30, 2010, measured quarterly in arrears on a rolling four quarter
basis, to be less than $****.

4

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     Section 2.7 Amendment to Exhibit D to the Credit Agreement. Effective as of
the date hereof, Exhibit D is hereby replaced with the form of Compliance
Certificate attached as Exhibit D hereto.
     Section 2.8 Amendment to Schedules to the Credit Agreement. Effective as of
September 30, 2010, the Schedules to the Credit Agreement are hereby replaced
with the Schedules attached hereto for all purposes under the Credit Agreement,
and any reference to a certain Schedule in any Loan Document shall refer to the
corresponding Schedule attached hereto.
     Section 2.9 Name Change of Penson GHCO. The Borrower has notified the
Lenders that Penson GHCO has changed its name to Penson Futures, and all
references to Penson GHCO in the Loan Documents shall be deemed to refer to
Penson Futures.
ARTICLE III
Conditions Precedent to Effectiveness
     Section 3.1 Conditions. The effectiveness of this Amendment is subject to
the full satisfaction of each of the following conditions precedent:
     (a) Documents. The Administrative Agent shall have received all of the
following, in form and substance satisfactory to the Administrative Agent:
     (i) Amendment. Executed counterparts of this Amendment, sufficient in
number for distribution to the Administrative Agent, each Lender and the
Borrower.
     (ii) Amendment Fee. Payment of an amendment fee in an amount of **** % of
the Commitment of each Lender executing this Amendment. Such amendment fee is
due and payable on or before 5:00 pm Central time on the closing date of this
Amendment.
     (iii) Other Fees. Any fees required to be paid on or before the date hereof
shall have been paid, including those fees required to be paid in that certain
Fee Letter dated as of October 21, 2010, among the Borrower, the Administrative
Agent, and Regions Capital Markets, a division of Regions Bank.
     (iv) Additional Information. Such additional documents, instruments and
information as the Administrative Agent, the Letter of Credit Issuer, the Swing
Line Lender or the Required Lenders reasonably may require.
     (b) No Default or Event of Default. No Default shall exist or would result
from the execution of this Amendment.
     (c) No Material Adverse Effect. Since the date of the most recent financial
statements delivered by the Borrower to the Administrative Agent, no event or
circumstance has occurred that has had or would be reasonably expected to have,
either individually or in the aggregate, a Material Adverse Effect.

5

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     (d) Representations and Warranties. All of the representations and
warranties contained in Article V of the Credit Agreement as amended hereby and
in the other Loan Documents shall be true and correct on and as of the date
hereof, with the same force and effect as if such representations and warranties
had been made on and as of the date hereof, except to the extent that such
representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct as of such earlier date and except that the
representations and warranties contained in subsections (a) and (b) of
Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01 of the Credit Agreement.
ARTICLE IV
No Waiver
     Section 4.1 No Waiver. Nothing contained herein shall be construed as a
waiver by the Administrative Agent or any Lender of any covenant or provision of
the Credit Agreement, this Amendment, or any other Loan Document, or of any
other contract or instrument between the Borrower and the Administrative Agent
and/or the Lenders, and the failure of the Administrative Agent and/or any
Lender at any time or times hereafter to require strict compliance by the
Borrower of any provision thereof shall not waive, affect or diminish any right
of the Administrative Agent or any Lender to thereafter demand strict compliance
therewith. The Administrative Agent and the Lenders hereby reserve all rights
granted under the Credit Agreement, this Amendment, the other Loan Documents and
any other contract or instrument between the Borrowers and the Administrative
Agent and/or the Lenders.
ARTICLE V
Ratifications, Representations and Warranties
     Section 5.1 Ratifications. The terms and provisions set forth in this
Amendment shall modify and supersede all inconsistent terms and provisions set
forth in the Credit Agreement and except as expressly modified and superseded by
this Amendment, the terms and provisions of the Credit Agreement are ratified
and confirmed and shall continue in full force and effect. The Borrower, the
Administrative Agent and the Lenders agree that the Credit Agreement as amended
hereby shall continue to be legal, valid, binding and enforceable in accordance
with its terms.
     Section 5.2 Representations and Warranties. The Borrower hereby represents
and warrants to the Administrative Agent and each Lender that (a) the
representations and warranties contained in Article V of the Credit Agreement,
as amended hereby, and any other Loan Document are true and correct on and as of
the date hereof as though made on and as of the date hereof, except to the
extent that such representations and warranties specifically refer to an earlier
date, in which case they shall be true and correct as of such earlier date, and
except that the representations and warranties contained in subsections (a) and
(b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most
recent statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01 of the Credit Agreement, and (b) no Default has occurred and is
continuing.

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ARTICLE VI
Miscellaneous
     Section 6.1 Survival of Representations and Warranties. All representations
and warranties made in this Amendment or any other Loan Document including any
Loan Document furnished in connection with this Amendment shall survive the
execution and delivery of this Amendment and the other Loan Documents, and no
investigation by the Administrative Agent or any Lender or any closing shall
affect the representations and warranties or the right of the Administrative
Agent or any Lender to rely upon them.
     Section 6.2 Reference to Agreement. Each of the Loan Documents, including
the Credit Agreement and any and all other agreements, documents, or instruments
now or hereafter executed and delivered pursuant to the terms hereof or pursuant
to the terms of the Credit Agreement as amended hereby, are hereby amended so
that any reference in such Loan Documents to the Credit Agreement shall mean a
reference to the Credit Agreement as amended hereby. This Amendment is a Loan
Document.
     Section 6.3 Severability. Any provision of this Amendment held by a court
of competent jurisdiction to be invalid or unenforceable shall not impair or
invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.
     Section 6.4 APPLICABLE LAW. THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS
EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE
IN TEXAS AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF TEXAS.
     Section 6.5 Successors and Assigns. This Amendment is binding upon and
shall inure to the benefit of the parties hereto and their respective successors
and assigns, except the Borrower may not assign or transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative
Agent and each Lender.
     Section 6.6 Counterparts. This Amendment may be executed in one or more
counterparts and by different parties on separate counterparts, each of which
when so executed shall be deemed to be an original, but all of which when taken
together shall constitute one and the same instrument. Delivery of an executed
counterpart of any signature pages hereto by telecopy, e-mail or other
electronic transmission shall be effective as delivery of originally executed
signature pages.
     Section 6.7 Effect of Waiver. No consent or waiver, express or implied, by
the Administrative Agent and the Lenders to or for any breach of or deviation
from any covenant, condition or duty by the Borrower shall be deemed a consent
or waiver to or of any other breach of the same or any other covenant, condition
or duty.
     Section 6.8 Headings. The headings, captions, and arrangements used in this
Amendment are for convenience only and shall not affect the interpretation of
this Amendment.

7

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     Section 6.9 ENTIRE AGREEMENT. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.
[Remainder of the Page Intentionally Left Blank. Signature Pages to Follow.]

8

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be
duly executed as of the date first above written.

            PENSON WORLDWIDE, INC.
      By:   /s/ Philip A. Pendergraft       Name:   Philip A. Pendergraft      
Title:   Chief Executive Officer    

Signature Page to First Amendment

 

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            REGIONS BANK,
as Administrative Agent, a Lender, Letter of
Credit Issuer and Swing Line Lender
      By:   /s/ Robin Ingari       Name:   Robin Ingari       Title:   Sr. Vice
President    

Signature Page to First Amendment

 

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            COMPASS BANK, successor in interest to
Guaranty Bank, as a Lender
      By:   /s/ Stephanie Cox       Name:   Stephanie Cox       Title:   Sr.
Vice President    

Signature Page to First Amendment

 

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            CAPITAL ONE, N.A., as a Lender and as
Co-Documentation Agent
      By:   /s/ Karen DeBlieux       Name:   Karen DeBlieux       Title:   Sr.
Vice President    

Signature Page to First Amendment

 

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            TEXAS CAPITAL BANK, NATIONAL ASSOCIATION,
as a Lender and as Co-Documentation Agent
      By:   /s/ Jason K. Matthews       Name:   Jason K. Matthews       Title:  
Vice President    

Signature Page to First Amendment

 

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            THE PRIVATEBANK AND TRUST COMPANY, as a
Lender and as Syndication Agent
      By:   /s/ Tim Roberts       Name:   Tim Roberts       Title:   Associate
Managing Director    

Signature Page to First Amendment

 

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            UNION BANK, N.A., as a Lender
      By:   /s/ Pierre Bury       Name:   Pierre Bury       Title:   Vice
President    

Signature Page to First Amendment

 

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EXHIBIT D
FORM OF COMPLIANCE CERTIFICATE
Financial Statement Date: ____________,
To: Regions Bank, as Administrative Agent
Ladies and Gentlemen:
     Reference is made to that certain Second Amended and Restated Credit
Agreement, dated as of May 6, 2010 (as amended, restated, extended, supplemented
or otherwise modified in writing from time to time, the “Agreement;” the terms
defined therein being used herein as therein defined), among Penson Worldwide,
Inc., a Delaware corporation (the “Borrower”), the Lenders from time to time
party thereto, and Regions Bank, as Administrative Agent, Letter of Credit
Issuer and Swing Line Lender.
     The undersigned Responsible Officer hereby certifies as of the date hereof
that he/she is the _________________of the Borrower, and that, as such, he/she
is authorized to execute and deliver this Certificate to the Administrative
Agent on the behalf of the Borrower, and in such capacity, on behalf of
Borrower, that:
[Use following paragraph 1 for fiscal year-end financial statements]
     1. Attached hereto as Schedule 1 are the year-end audited financial
statements required by Section 6.01(a) of the Agreement for the fiscal year of
the Borrower ended as of the above date, together with the report and opinion of
a Registered Public Accounting Firm required by such section.
[Use following paragraph 1 for fiscal quarter-end financial statements]
     1. Attached hereto as Schedule 1 are the unaudited financial statements
required by Section 6.01(b) of the Agreement for the fiscal quarter of the
Borrower ended as of the above date. Such financial statements fairly present
the financial condition, results of operations, shareholders’ equity and cash
flows of the Borrower and its Subsidiaries in accordance with GAAP as at such
date and for such period, subject only to normal year-end audit adjustments and
the absence of footnotes.
     2. The undersigned has reviewed and is familiar with the terms of the
Agreement and has made, or has caused to be made under his/her supervision, a
review of the transactions and condition (financial or otherwise) of the
Borrower during the accounting period covered by the attached financial
statements.
     3. A review of the activities of the Borrower during such fiscal period has
been made under the supervision of the undersigned with a view to determining
whether during such fiscal period the Borrower performed and observed all its
Obligations under the Loan Documents, and
D - 1
Form of Compliance Certificate

 

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[select one:]
     [to the best knowledge of the undersigned, the Borrower is in compliance
with each covenant and condition of the Loan Documents applicable to it, and no
Default has occurred and is continuing.]
—or—
     [the Borrower is not in compliance with the following covenants or
conditions and the following is a list of each Default which has occurred and is
continuing and its nature and status:]
     4. The representations and warranties of the Borrower contained in
Article V of the Agreement, and any representations and warranties of any Loan
Party that are contained in any document furnished at any time under or in
connection with the Loan Documents, are true and correct on and as of the date
hereof, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct
as of such earlier date, and except that for purposes of this Compliance
Certificate, the representations and warranties contained in subsections (a) and
(b) of Section 5.05 of the Agreement shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of
Section 6.01 of the Agreement, including the statements in connection with which
this Compliance Certificate is delivered.
     5. The financial covenant analyses and information set forth on Schedule 2
attached hereto are true and accurate on and as of the date of this Certificate.
     IN WITNESS WHEREOF, the undersigned has executed this Compliance
Certificate as of ______________, _____.

            PENSON WORLDWIDE, INC.
      By:           Name:           Title:        

D - 2
Form of Compliance Certificate

 

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SCHEDULE 1
to the Compliance Certificate
Financial Statements
D - 3
Form of Compliance Certificate

 

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For the Quarter/Year ended __________________(“Statement Date”)
SCHEDULE 2
to the Compliance Certificate

     
I. Section 7.16(a) — Consolidated Tangible Net Worth.
   
A. Consolidated Tangible Net Worth at Statement Date:
   
1. Shareholders’ Equity of Borrower and its Subsidiaries:
  $__________
2. Intangible Assets of Borrower and its Subsidiaries:
  $__________
3. Consolidated Tangible Net Worth (Line I.A.1 less Line I.A.2):
  $__________
B. $****
  $****
C. ****% of the net aggregate increases in Shareholders’ Equity of the Borrower
and its Subsidiaries after the Closing Date from issuance and sale of Equity
Interests (other than issuances to the Borrower or a wholly-owned Subsidiary,
issuances of restricted stock units pursuant to the 2000 Stock Incentive Plan,
securities issued upon the exercise of stock options, or issuances of securities
pursuant to the Borrower’s employee stock purchase plan) (including from
conversion of debt securities):
  $__________
D. ****% of Consolidated Net Income for the fiscal year ended on the Statement
Date:
  $__________
E. Goodwill and other intangibles associated with (1) acquisitions completed
prior to the Closing Date and previously disclosed to the Administrative Agent
and (2) the Ridge Acquisition:
  $__________
F. Minimum required Consolidated Tangible Net Worth (Line I.B plus Line I.C plus
Line 1.D minus Line 1.E):
  $__________
G. Excess (deficiency) for covenant compliance (Line I.A.3 — I.F):
  $__________
H. Compliance (Yes/No):
  ___________
 
   
II. Section 7.16 (b) — Consolidated Fixed Charge Coverage Ratio.
   
A. Consolidated EBITDA for four consecutive fiscal quarters ending on above date
(“Subject Period”):
   
1. Consolidated Net Income for Subject Period:
  $__________
2. Interest Charges for Subject Period:
  $__________
3. Provision for Federal, state, local and foreign income taxes payable by
Borrower and its Subsidiaries for Subject Period:
  $__________

 

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4.  Depreciation and amortization expense:
  $__________
5.  Non-cash stock based compensation:
  $__________
6.  Costs, expenses and fees incurred in connection with the Ridge Acquisition,
the 2017 Notes Offering, the 2014 Notes Offering, the Existing Credit Agreement,
and this Agreement:
  $__________
7.  All one-time, non-recurring expenses incurred or charged to income during
Subject Period:
  $__________
8.  Federal, state, local and foreign income tax credits of Borrower and its
Subsidiaries for Subject Period:
  $__________
9.  Non-cash items increasing Consolidated Net Income for Subject Period:
  $__________
10.  For the 12-month period following the closing of the Ridge Acquisition,
$1,050,000 for any month (commencing with the first full month after the closing
of the Ridge Acquisition) for which the actual EBITDA earned by PFS and
attributable to correspondent clearing contracts acquired in the Ridge
Acquisition is not included in the calculation of Consolidated EBITDA:
  $__________
11.  Consolidated EBITDA (Lines II.A.1 + IIA.2 + IIA.3 + IIA.4 + IIA.5 + IIA.6 +
IIA.7) — (Lines IIA.8 + IIA.9) + Line IIA.10 (if applicable):
  $__________
B. Interest Charges for Subject Period:
  $__________
C. Aggregate principal amount of regularly scheduled principal payments or
redemptions or similar acquisitions for value of outstanding debt for borrowed
money (it being understood the Total Outstandings shall be assumed to be
amortized over a five year period solely in order to calculate scheduled
payments of the Loans):
  $__________
D. Aggregate amount of Federal, state, local and foreign income taxes paid in
cash of or by the Borrower and its Subsidiaries for Subject Period:
  $__________
E. Consolidated Fixed Charge Coverage Ratio (Line II.A.11 ¸ (Lines II.B + II.C +
II.D))
  ____ to ****
F. Minimum required (see Section 7.16(b)):
  ___________
G. Compliance (Yes/No):
  ___________
 
   
III. Section 7.16 (c) — Consolidated Leverage Ratio.
   
A. Consolidated Funded Indebtedness at Statement Date:
  $__________

 

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B. Consolidated EBITDA for Subject Period (Line IIA.11):
  $__________
C. Consolidated Leverage Ratio (Line III.A ¸ Line III.B):
  ____ to ****
D. Maximum permitted (see Section 7.16(c)):
  ____ to ****
E. Compliance (Yes/No):
  ___________
 
   
IV. Section 7.16(d) — Minimum Capital Requirement.
   
A. Regulatory Capital at Statement Date:
  $__________
B. Debit Balances at Statement Date:
  $__________
C. Minimum required (Line IV.B. x ****%):
  $__________
D. Compliance (Yes/No):
  ___________
 
   
V. Section 7.16 (e) — Minimum Liquidity Requirement.
   
A. Unencumbered Liquidity at Statement Date:
  $__________
B. Total Outstandings at Statement Date:
  $__________
C. Compliance (Yes/No):
  ___________
 
   
VI. Section 7.16(f) — Capital Expenditures.
   
A. Capital Expenditures for Borrower and its Subsidiaries at Statement Date
since beginning of fiscal year:
  $__________
B. Maximum Allowed (per fiscal year):
  $****
C. Compliance (Yes/No):
  ___________
 
   
VII. Section 7.16(g) — Minimum Consolidated EBITDA.
   
A. Consolidated EBITDA for Subject Period (Line IIA.11):
  $__________
B. Minimum required:
  $****
C. Compliance (Yes/No):
  ___________

 

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SCHEDULE 2.01
COMMITMENTS
AND PRO RATA PERCENTAGES

                              Pro Rata Lender   Commitment   Percentage  
Regions Bank
  $ * ***     * ***%
Compass Bank, as successor in interest to Guaranty Bank
  $ * ***     * ***%
Capital One, N.A.
  $ * ***     * ***%
Texas Capital Bank, National Association
  $ * ***     * ***%
The Private Bank and Trust Company
  $ * ***     * ***%
Union Bank, N.A.
  $ * ***     * ***%  
Total
  $ * ***     * ***%

Schedule 2.01 of Amended and Restated Credit Agreement

 

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SCHEDULE 5.05
EXISTING INDEBTEDNESS
****
Schedule 5.05 of Amended and Restated Credit Agreement

 

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SCHEDULE 5.13
SUBSIDIARIES AND
OTHER EQUITY INVESTMENTS
Part (a). Subsidiaries.
Percentages shown reflect percentage ownership Equity Interests held by named
entity:
SAI Holdings, Inc. (100% ownership by Penson Worldwide, Inc.)
Penson Financial Services, Inc. (100% voting equity ownership by SAI Holdings,
Inc.)
Nexa Technologies, Inc. (100% ownership by SAI Holdings, Inc.)
Penson Holdings, Inc. (100% ownership by SAI Holdings, Inc.)
Penson Financial Futures, Inc. (100% ownership by SAI Holdings, Inc.)
Penson Execution Services, Inc. (100% ownership by SAI Holdings, Inc.)
Penson Financial Services Limited (100% ownership by Penson Holdings, Inc.)
Worldwide Nominees Ltd. (100% ownership by Penson Financial Services Limited)
Penson Financial Services Canada Inc. (100% ownership by Penson Holdings, Inc.)
Penson Financial Services Ventures Inc. (100% ownership by Penson Holdings,
Inc.)
Penson Asia Limited (100% ownership by Penson Holdings, Inc.)
Penson Financial Services Asia Limited (100% ownership by Penson Asia Limited)
Market Essentials Group Inc. (100% ownership by Penson Financial Services
Ventures Inc.)
Turnpike Trading Systems Inc. (51% ownership by Penson Financial Services
Ventures Inc.)
GHP1, Inc. (100% ownership by SAI Holdings, Inc.)
GHP2, LLC (100% ownership by GHP1, Inc.)
Penson Futures (99.4% ownership by GHP1, Inc. and 0.6% ownership by GHP2, LLC)
First Capital Group, LLC (100% ownership by GHP1, Inc.)
Penson Financial Services Australia Pty Ltd (100% ownership by Penson Holdings,
Inc.)
Schedule 5.13 of Amended and Restated Credit Agreement

 

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Penson Australia Nominees Pty Ltd (100% ownership by Penson Financial Services
Australia Pty Ltd.)
Part (b). Equity Investments.
None.
Schedule 5.13 of Amended and Restated Credit Agreement

 

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SCHEDULE 5.20
COMMON ENTERPRISE
The business of the Borrower and its Subsidiaries includes the provisions of a
broad range of securities processing products and services to the global
securities and investment industry. Borrower and its Subsidiaries provide
product and service offerings that include securities and futures clearing,
foreign currency products, derivatives, margin lending, stock lending,
alternative trading systems, facilities management, prime brokerage, conduit and
non-conduit loans, data, technology products and services and other related
offerings.
Schedule 5.20 of Amended and Restated Credit Agreement

 

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SCHEDULE 7.01
EXISTING LIENS
****.
Schedule 7.01 of Amended and Restated Credit Agreement

 

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SCHEDULE 7.02
EXISTING INVESTMENTS
****
Schedule 7.02 of Amended and Restated Credit Agreement

 

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SCHEDULE 10.02
ADMINISTRATIVE AGENT’S OFFICE;
CERTAIN ADDRESSES FOR NOTICES
BORROWER:
Penson Worldwide, Inc.
1700 Pacific Avenue, Suite 1400
Dallas, Texas 75201
Attention: Chairman
Telephone: 512-794-9100
Telecopier: (512) 231-8526
Electronic Mail: rengemoen@penson.com
Website Address: www.penson.com
U.S. Taxpayer Identification Number: 75-2896356
With copy to:
Penson Worldwide, Inc.
1700 Pacific Avenue, Suite 1400
Dallas, Texas 75201
Attention: General Counsel
Telephone: (415) 409-1531
Telecopier: (214) 953-3503
Electronic Mail: akoslow@penson.com
ADMINISTRATIVE AGENT:
Administrative Agent’s Office
(for payments and Requests for Credit Extensions):
Regions Bank
100 Congress Avenue, Suite 1700
Austin, Texas 78701
Attention: Robin Ingari
Telephone: (512) 372-2303
Telecopier: (512) 226-0241
Electronic Mail: robin.ingari@regions.com
With copy to:
Regions Capital Markets
3050 Peachtree Road, Suite 400
Atlanta, GA 30305
Attention: Sara Horehled

 

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Telephone: 404.279.7480
Telecopier: 404.995.7665
Electronic Mail: sara.horehled@regions.com
Account No.: 001102450408511
Ref: Penson Worldwide, Inc.
ABA# 062005690
LETTER OF CREDIT ISSUER:
Regions Bank
100 Congress Avenue, Suite 1700
Austin, Texas 78701
Attention: Robin Ingari
Telephone: (512) 372-2303
Telecopier: (512) 226-0241
Electronic Mail: robin.ingari@regions.com
SWING LINE LENDER:
Regions Bank
100 Congress Avenue, Suite 1700
Austin, Texas 78701
Attention: Robin Ingari
Telephone: (512) 372-2303
Telecopier: (512) 226-0241
Electronic Mail: robin.ingari@regions.com
With copy to:
Regions Capital Markets
3050 Peachtree Road, Suite 400
Atlanta, GA 30305
Attention: Sara Horehled
Telephone: 404.279.7480
Telecopier: 404.995.7665
Electronic Mail: sara.horehled@regions.com
Account No.: 001102450408511
Ref: Penson Worldwide, Inc.
ABA# 062005690