Exhibit 10.54



Exhibit 10.54 
 
February 14, 2003 
 

	 MCG Master Trust
 c/o MCG Capital Corporation
 1100 Wilson Boulevard, Suite 3000
 Arlington, VA 22209
 Attn: Chief Financial
Officer and
 General Counsel
  
 MCG Capital Corporation
 1100 Wilson
Boulevard, Suite 3000
 Arlington, VA 22209
 Attn: Chief Financial Officer and
 General Counsel
	 	 Wachovia Bank, National Association,
 As Liquidity Agent
 One Wachovia Center, Mail Code: NC0610
 Charlotte, North Carolina 28288
 Attention:
Capital Markets Credit
 Administration
 Facsimile No. (704) 374-3254
 Confirmation No.: (704) 374-4001

	
	 Variable Funding Capital Corporation
 c/o Wachovia Securities, Inc.
 One Wachovia Center
 Charlotte, North Carolina 28288
 Attention: Conduit Administration
 Facsimile No.: (704) 383-6036
 Confirmation
No.: (704) 383-9343
	 	 Wells Fargo Bank Minnesota,
 National Association
 6th and Marquette Streets
 MAC# N9311-161
 Minneapolis, MN
55679
 Attn: Corporate Trust Services –
 Asset Backed Admin.


 

	Re:	 	Note Purchase Agreement dated as of June 1, 2000 (as amended, the “Agreement”) among MCG Capital Corporation, as Servicer (“MCG”), MCG Master
Trust, as Issuer (the “Issuer”), Variable Funding Capital Corporation, as a CP Purchaser (“VFCC”) and Wachovia Securities, Inc., as VFCC Deal Agent and as Administrative Agent 

 
Ladies and Gentlemen: 
 
Reference is hereby made to the Agreement. Capitalized terms
used in this letter (the “Letter”) and not otherwise defined herein shall have the meanings given to such terms in the Agreement or in Appendix A to the Sale and Servicing Agreement (as defined in the Agreement) or in the Terms Supplement
relating to the Series 2000-1 Notes. 







 
For good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto hereby agree as follows: 
 

	 1.	  	 Waiver. The parties hereto agree that for purposes of any reports required to be prepared, and any tests required to be satisfied, under the Basic Documents
on or before February 14, 2003 (including, without limitation, any reports or tests as of December 31, 2002 and/or as of January 31, 2003), the requirement that the Average Portfolio Charged-Off Ratio not exceed a specified percentage is hereby
waived. This is a one-time waiver and shall not be construed to be (i) a modification or waiver as to future compliance with the Average Portfolio Charged-Off Ratio, (ii) a waiver of any Termination Event or Potential Termination Event that may
exist on or after February 15, 2003 or (iii) an amendment or modification to the Agreement or any other Basic Document except as expressly set forth in this Letter or otherwise with respect to any period on or after February 15, 2003. This limited
waiver is expressly subject to the terms of this Letter. 

 

	 2.	  	 Modification. The parties hereto agree that, with respect to any Purchase requested of the Purchasers pursuant to a Funding Notice delivered after the date
hereof (i.e., excluding the Funding Notice separately delivered to Purchasers on the date hereof), in connection with a transfer of Commercial Loans to the Trust, solely for the purpose of the Basic Documents and any reports required to be
prepared thereunder the Administrative Agent shall have the right, in its sole discretion, to determine the Investment Rating of any or all Commercial Loans being transferred to the Trust. The parties hereto agree that, with respect to any Purchase
requested of the Purchasers pursuant to a Funding Notice delivered after the date hereof, that is not in connection with a transfer of Commercial Loans to the Trust, solely for the purpose of the Basic Documents and any reports required to be
prepared thereunder the Administrative Agent shall have the right, in its sole discretion, to determine the Investment Rating of any or all Commercial Loans then held by the Trust. In addition, the parties agree that the Issuer may remove from the
Trust, free and clear of the lien of the Indenture, $14,000,000 of the outstanding Principal Balance of the Commercial Loan related to the Credit Facility Agreement dated as of September 10, 2002, as amended, by and among New Vision Broadcasting,
LLC and its direct and indirect subsidiaries (as borrowers), the Lenders that are party to such Credit Facility Agreement and MCG Capital Corporation (as administrative agent). 

 

	 3.	  	 Representations and Warranties. Upon giving effect to paragraph 1 of this Letter, each of MCG and the Trust represents and warrants that as of the date
hereof no event has occurred and is continuing which constitutes a Termination Event or a Potential Termination Event. 

 

	 4.	  	 Effect of Modification. Except as expressly modified in this Letter, all of the terms, provisions and conditions of the Agreement and the other Basic
Documents are hereby ratified and confirmed and shall remain unchanged and in full force and effect. 

 

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	 5.	  	 Expenses. MCG agrees to pay all reasonable costs and expenses incurred in connection with the preparation, execution and delivery of this Letter, including
the reasonable fees and expenses of the Deal Agent’s legal counsel. 

 

	 6.	  	 Condition Precedent. The provisions of paragraphs 1 and 2 of this Letter are subject to (i) the receipt by the Deal Agent of executed counterparts (or other
evidence of execution, including facsimile signatures, satisfactory to Deal Agent) of this Letter, which collectively shall have been duly executed on behalf of each of the parties hereto and (ii) the receipt by the Indenture Trustee, to hold as
additional Collateral under the Indenture, of (x) the $88,408,391 original principal amount Class C Note issued by MCG Commercial Loan Trust 2001-1, accompanied by a duly executed bond power and (y) each of the four Commercial Loans listed
separately on the schedule to the Funding Notice being delivered on the date hereof. 

 

	 7.	  	 Counterparts/Telecopy. This Letter may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all
of which shall constitute one and the same instrument. Delivery of executed counterparts by telecopy shall be effective as an original and shall constitute a representation that an original will be delivered (provided that failure of an original to
be delivered shall not impair the effectiveness of this Letter). 

 

	 8.	  	 GOVERNING LAW. THIS LETTER SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT GIVING EFFECT TO PRINCIPLES OF
CONFLICTS OF LAW. 

 

	 9.	  	 ENTIRETY. THIS LETTER, THE AGREEMENT AND THE OTHER BASIC DOCUMENTS EMBODY THE ENTIRE AGREEMENT BETWEEN THE PARTIES AND SUPERSEDE ALL PRIOR AGREEMENTS AND
UNDERSTANDINGS, IF ANY, RELATING TO THE SUBJECT MATTER HEREOF. THIS LETTER, THE AGREEMENT AND THE OTHER BASIC DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. 

 
[SIGNATURE PAGES TO FOLLOW] 
 

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	 Sincerely,

	
	 WACHOVIA SECURITIES, INC.
 as Deal Agent

	
	 By:
	 	 /s/    RAJ SHAH

	 	 	

	 Name
	 	 Raj Shah

	 Title:
	 	 Director



 

	
	 Accepted and Agreed:

	
	 MCG CAPITAL CORPORATION

	
	 By:
	 	 /s/    SAMUEL G.
RUBENSTEIN

	 	 	

	 Name:
	 	 Samuel G. Rubenstein

	 Title:
	 	 General Counsel and Executive Vice President

	 	 	 
	
	 MCG MASTER TRUST

	
	 By:
	 	 MCG CAPITAL CORPORATION
 (as Servicer)

	
	 By:
	 	 /s/    SAMUEL G.
RUBENSTEIN

	 	 	

	 Name:
	 	 Samuel G. Rubenstein

	 Title:
	 	 General Counsel and Executive Vice President

	
	 VARIABLE FUNDING CAPITAL CORPORATION,

	
	 By:
	 	 Wachovia Securities, Inc.,

	 as attorney-in-fact

	
	 By:
	 	 /s/    DOUGLAS R. WILSON,
SR.

	 	 	

	 Name:
	 	 Douglas R. Wilson, Sr.

	 Title:
	 	 Vice President


 

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	 WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION (f/k/a Norwest Bank Minnesota, National Association), not in
its individual capacity but solely as Indenture Trustee

	
	 By:
	 	 /s/    TIMOTHY MATYI

	 	 	

	 Name:
	 	 Timothy Matyi

	 Title:
	 	 Assistant Vice President


 
 
 
 

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