Exhibit 10(k)

 

TENTH AMENDMENT TO SECOND AMENDED

AND RESTATED LOAN AGREEMENT

 

THIS TENTH AMENDMENT TO SECOND AMENDED AND RESTATED LOAN AGREEMENT (“Tenth
Amendment”) is made and entered into as of the 30th day of September, 2003, by
and between Equus II Incorporated, a Delaware corporation, with offices and
place of business at 2929 Allen Parkway, Houston, Texas 77019 (hereinafter
called “Borrower”) and Banc of America Strategic Solutions, Inc. (assignee of
BANK OF AMERICA, N.A. pursuant to that certain Assignment and Assumption dated
September 5, 2003), with offices at 101 North Tryon Street, NC1-001-13-26,
Charlotte, North Carolina 28255 (hereinafter called “Lender”). For and in
consideration of the mutual covenants and agreements herein contained, Borrower
and Lender hereby amend as of the date of this Agreement that certain Second
Amended and Restated Loan Agreement between Borrower and Lender dated as of the
1st day of June, 1999, as previously amended (“Loan Agreement”), in the
following respects:

 

Section 1. Amendments to Loan Agreement.

 

A. Section 1.1 is deleted and the following is substituted in its place:

 

1.1 Indebtedness. Upon the terms and conditions hereinafter set forth, the
Lender agrees to lend to Borrower in an aggregate of up to $10,000,000.00
outstanding at any time as evidenced by Revolving Facility A to be extended to
the Borrower by the Lender as more specifically described in Section 1.3.

 

B. Section 1.2 is amended to delete the definitions of “Facility A Note” and
“Maturity Date” and replace them with the following:

 

“Facility A Note” means the Facility A promissory note of the Borrower in the
maximum principal amount of $10,000,000.00, in the form attached as Exhibit
“1.3.4” to the Tenth Amendment.

 

“Maturity Date” means November 30, 2003.

 

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C. Section 1.3 and 1.3(a) is deleted and the following is substituted in its
place:

 

1.3 Revolving Facility A. The Lender, during the period from the date of this
Agreement until the Maturity Date, subject to the terms and conditions of this
Agreement, and subject to the condition that at the time of each borrowing no
Default or Event of Default has occurred and is then continuing and that the
representations and warranties given by the Borrower in Section 2 as of the date
of this Agreement shall remain true and correct in all material respects (except
for representations and warranties (i) which are made as of a particular date or
(ii) as to which the facts which gave rise to the representation or warranty
have changed as a result of circumstances or transactions which are contemplated
or permitted pursuant to this Agreement):

 

(a) agrees to make Loans to Borrower pursuant to a revolving line of credit up
to but not in excess of an aggregate principal amount outstanding at any time of
$10,000,000 provided the aggregate amount of Loans outstanding pursuant to this
Section 1.3 shall not exceed the lesser of (i) $10,000,000.00 (subject to
reduction as hereinafter provided) and (ii) the Borrowing Base. The maximum
amount available under Facility A is subject to permanent reduction in the event
of a sale of shares owned by Borrower in a portfolio company or the repayment of
a loan from Borrower to a portfolio company by an amount (“Commitment Reduction
Amount”) equal to such sale proceeds and/or loan repayment. Borrower shall make
written request for each Loan pursuant to Revolving Facility A pursuant to a
loan request in substantially the form of Exhibit “1.3.3” attached hereto. If
Borrower’s written request therefor is received by 1.00 p.m., Lender shall make
each such Loan available to Borrower on the same Business Day Lender receives
such request. If Borrower’s loan request with respect to any such Loan is
received after 1:00 p.m., Lender may defer the making of such Loan to the next
Business Day. Each Loan shall be in an amount of not less than $100,000.
Borrower shall not be entitled to have any new Credits issued pursuant to
Revolving Facility A.

 

Section 1.2. Extension Fee.

 

Borrower and Lender hereby agree that a fee in the amount $20,000.00 will be
paid to Lender upon closing of this transaction. Borrower and Lender further
agree that a fee in the amount of $15,000.00 will be paid to Lender on November
30, 2003 if the Promissory Note, in the principal amount of $10,000,000.00, of
even date herewith has not been paid in full on or before November 30, 2003.

 

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Section 2. Closing.

 

The closing of the transactions contemplated by this Tenth Amendment is subject
to the satisfaction of the following conditions.

 

2.1 Counsel to Lender. All legal matters incident to the transactions herein
contemplated shall be satisfactory to Gardere Wynne Sewell LLP, counsel to the
Lender.

 

2.2 Required Documents.

 

(a) The Lender shall have received certified copies of resolutions of the Board
of Directors of the Borrower in form and substance satisfactory to Lender with
respect to authorization of this Tenth Amendment, the Facility A Note of the
Borrower dated the date hereof in favor of the Lender in the original principal
amount of $10,000,000.00 (the “Note”), and the Ratification of Security
Agreement-Pledge dated as of the date hereof (the “Ratification of Security
Agreement”).

 

(b) The Lender shall have received this Tenth Amendment, the Note, the
Ratification of Security Agreement and the other instruments or certificates
related hereto together with the true signatures of such officers.

 

(c) The Lender shall have received fully executed copies of the Tenth Amendment,
the Note, and the Ratification of Security Agreement.

 

(d) The Lender shall have received originals of all certificates, notes or other
instruments subject to the Security Agreement - Pledge dated as of March 18,
1996 between Borrower and Lender, as ratified by the Ratification of Security
Agreement.

 

Section 3. Ratification. Except as amended hereby, the Loan Agreement shall
remain unchanged and the terms, conditions, representations, warranties, and
covenants of said Loan Agreement and the Security Instruments, including but not
limited to the Security Agreement-Pledge,

 

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are true as of the date hereof, are ratified and confirmed in all respects and
shall be continuing and binding upon the parties.

 

Section 4. Defined Terms. All terms used in this Tenth Amendment which are
defined in the Loan Agreement shall have the same meaning as in the Loan
Agreement, except as otherwise indicated in this Tenth Amendment.

 

Section 5. Multiple Counterparts. This Tenth Amendment may be executed by the
parties hereto in several separate counterparts, each of which shall be an
original and all of which taken together shall constitute one and the same
agreement.

 

Section 6. Applicable Law. This Tenth Amendment shall be deemed to be a contract
under and subject to, and shall be construed for all purposes in accordance with
the laws of the State of Texas.

 

Section 7. Final Agreement. THE WRITTEN LOAN AGREEMENTS IN CONNECTION WITH THIS
TENTH AMENDMENT REPRESENT THE FINAL AGREEMENT BETWEEN THE BORROWER AND THE
LENDER AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE BORROWER AND THE LENDER. THERE ARE NO
UNWRITTEN ORAL AGREEMENTS BETWEEN THE LENDER AND THE BORROWER.

 

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IN WITNESS WHEREOF, the parties have caused this Tenth Amendment to be executed
by their duly authorized officers as of the 30th day of September, 2003.

 

EQUUS II INCORPORATED By:   /s/    NOLAN LEHMANN            

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Name:

  Nolan Lehmann

Title:

  President

 

BANC OF AMERICA STRATEGIC SOLUTIONS, INC. By:   /S/    DAVID STRICKERT          
 

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Name:

  David Strickert    

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Title:

  SVP    

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