Document:

ex10-1.htm

    
 

    
 

    Exhibit
      10.1

    THIRD
      AMENDMENT TO THE LOAN AGREEMENT

    

    THIRD
      AMENDMENT TO THE LOAN AGREEMENT (this “Amendment”) dated as of June 29,
      2007, between AMERICAN MORTGAGE ACCEPTANCE COMPANY (the “Borrower”) and
      CENTERLINE HOLDING COMPANY (the “Lender”).

    

    WHEREAS,
      the Borrower and the Lender are parties to a Loan Agreement dated as of June
      30,
      2004, as amended by the First Amendment to the Loan Agreement dated as of June
      30, 2005, as amended by the Second Amendment to the Loan Agreement dated as
      of
      April 19, 2006 (as amended, and modified, restated and/or supplemented from
      time
      to time, the “Loan Agreement”) (capitalized terms used herein and not
      otherwise defined herein shall have the meanings ascribed to such terms in
      the
      Loan Agreement); and

    

    WHEREAS,
      the Borrower has requested, and the Lender has agreed to, the amendments
      provided herein on the terms and conditions set forth herein;

    

    NOW,
      THEREFORE, in consideration of the mutual promises contained herein, the parties
      agree that effective as of the date hereof, the Loan Agreement is hereby amended
      as follows:

    

    Section
      1.              Amendments.

     

    1.1           The
      first recital of the Loan Agreement is hereby amended and restated in its
      entirety as follows:

     

    “By
      means
      of a loan facility to be established under and subject to this Agreement (the
      “Line of Credit”), Borrower desires to secure from the Lender up to $80,000,000
      for use by Borrower for financing the Borrower’s investments and for general
      corporate purposes and Lender has agreed to provide such
      financing.”

     

    1.2           The
      definition of the term “Loan Amount” in Section 1.1 of the Loan Agreement is
      hereby amended and restated in its entirety as follows:

     

    “Loan
      Amount means the principal amount of EIGHTY MILLION AND NO/100 DOLLARS
      ($80,000,000.00), or such lesser amount as may from time to time be in effect
      following exercise of the reduction procedure set forth in Section
      2.3.”

     

    1.3           Section
      2.4 of the Loan Agreement is hereby amended by deleting the text “June 30, 2007”
therein and inserting the text “June 30, 2008” in lieu thereof.

     

    1.4           The
      Financial Covenants set forth in Section 7 are hereby amended and restated
      in
      their entirety as set forth on Exhibit A hereto.

     

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      2.              Representations
      and Warranties.

     

    The
      Borrower hereby represents and
      warrants to the Lender that:

     

    2.1           Authorization.  The
      Borrower is duly authorized to execute and deliver this Amendment and is and
      will continue to be duly authorized to perform its obligations under the Loan
      Agreement, as amended hereby.

     

    2.2           No
      Conflicts.   The execution and delivery of this Amendment and
      the performance by the Borrower of its obligations under the Loan Agreement,
      as
      amended hereby, do not and will not (i) require any consent or authorization
      of,
      filing with, notice to or other act by or in respect of, any governmental
      authority or any other Person or (ii) violate any law, rule or regulation or
      any
      material agreement or contract to which the Borrower is a party or is otherwise
      bound and will not result in, or require, the creation or imposition of any
      lien
      or encumbrance on any of its properties or revenues pursuant to any law, rule
      or
      regulation or any such material agreement or contract.

     

    2.3           Validity
      and Binding Effect.  The Loan Agreement, as amended hereby,
      constitutes a legal, valid and binding obligation of the Borrower, enforceable
      against it in accordance with its terms, except as enforceability may be limited
      by applicable bankruptcy, insolvency, reorganization, moratorium or similar
      laws
      affecting the enforcement of creditors’ rights generally and by general
      equitable principles (whether enforcement is sought by proceedings in equity
      or
      at law).

     

    2.4           Loan
      Agreement Representations and Warranties.  The representations and
      warranties set forth in Section 4 of the Loan Agreement are true and correct,
      in
      all material respects, with the same effect as if such representations and
      warranties had been made on the date hereof (except to the extent such
      representations and warranties are made as of some other date(s), in which
      case
      such representations and warranties shall be true and correct in all material
      respects as of such other date(s)).

     

    2.5           No
      Event of Default.  As of the date hereof, no Default or Event of
      Default has occurred or is continuing.

     

    Section
      3.              Effectiveness
      of Amendment.

     

    Except
      as specifically amended hereby,
      the Loan Agreement is and shall remain in full force and effect.  This
      Amendment shall become effective upon the first date on which the Borrower
      and
      the Lender shall have signed a counterpart hereof (whether the same or different
      counterparts) and shall have delivered (including by way of facsimile
      transmission) the same to the other party.

     

    Section
      4.              No
      Further Amendments.

     

    Except
      for the amendments set forth
      herein, the text of the Loan Agreement and all other Loan Documents shall remain
      unchanged and in full force and effect.  No waiver by the Lenders
      under the Loan Agreement or any other Loan Document is granted or intended
      except as expressly set forth herein, and the Lenders expressly reserve the
      right to require strict compliance with the terms of each of the Loan Agreement,
      as amended hereby, and the other Loan Documents in all respects.  The
      waivers, extensions, consents and amendments agreed to herein shall not
      constitute a modification of, or a course of dealing at variance with, the
      Loan
      Agreement, as amended hereby, such as to require further notice by the Lender
      to
      require strict compliance with the terms of the Loan Agreement, as amended
      hereby, and the other Loan Documents in the future.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Section
      5.              Legal
      Fees.

     

    The
      Borrower shall pay all reasonable expenses incurred by the Lender in the
      drafting, negotiation and closing of the documents and transactions contemplated
      hereby, including the reasonable fees and disbursements of the Lender’s special
      counsel.

     

    Section
      6.              Miscellaneous.

     

    6.1           Governing
      Law.  THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES
      HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
      ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

     

    6.2           Counterparts.  This
      Amendment may be executed in any number of counterparts and by different parties
      hereto in separate counterparts, each of which when so executed and delivered
      shall be deemed an original, but all such counterparts together shall constitute
      but one and the same instrument; signature pages may be detached from multiple
      separate counterparts and attached to a single counterpart so that all signature
      pages are physically attached to the same document.

     

    6.3           Headings.  Section
      and subsection headings in this Amendment are included herein for convenience
      of
      reference only and shall not constitute a part of this Amendment for any other
      purpose or be given any substantive effect.

     

    6.4           Severability.  In
      case any provision in or obligation under this Amendment shall be invalid,
      illegal or unenforceable in any jurisdiction, the validity, legality and
      enforceability of the remaining provisions or obligations, or of such provision
      or obligation in any other jurisdiction, shall not in any way be affected or
      impaired thereby.

     

    *           *           *

     

    IN
      WITNESS WHEREOF, the parties have
      executed and delivered this Amendment as of the date first written
      above.

    

     

    
      	 	
              THE
                BORROWER:

            
	 	 
	 	
              AMERICAN
                MORTGAGE ACCEPTANCE COMPANY

            
	 	
              (Registrant)

            
	 	 
	
               

            	
              By:

            	
              /s/
J.
                Larry Duggins

            
	
               

            	
              Name: 
                J. Larry Duggins

            
	
               

            	
              Title: 
                Chief Executive Officer

            

    

    

     

    

     

    
      	 	
              THE
                LENDER:

            
	 	 
	 	
              CENTERLINE
                HOLDING COMPANY

            
	 	
              (Registrant)

            
	 	 
	
               

            	
              By:

            	
              /s/
                Marc D. Schnitzer

            
	
               

            	
              Name: 
                Marc D. Schnitzer

            
	
               

            	
              Title: 
                Chief Executive Officer

            

    

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A

     

    FINANCIAL
      COVENANTS

     

    
      	
               

              Quarterly
                Covenant

            	
               

              Proposed
                Covenants

            
	
              Minimum
                Adjusted Net Worth (GAAP Net Worth without impact of Accumulated
                Other
                Comprehensive Income or loss)

               

            	
              $75MM

            
	
              Maximum
                Indebtedness to FMV of Total Assets

               

            	
              Eliminate

            
	
              Maximum
                Recourse Debt to Adjusted Net Worth

               

            	
              4.0X

               

            
	
              Adjusted
                AFFO to Recourse Debt Service

               

            	
              1.35X

            
	
              Minimum
                Quarterly Adj. AFFO

               

            	
              $1.5MM

            
	
              Cross-default
                to other recourse indebtedness (event of default)

               

            	
              $5MM[Graphic Omitted]                                            ARABELLA SECURITIES
                                              7800 Shoal Creek Blvd., Suite 100N
                                                                Austin, TX 78757
                                                               Tel: 512.334.4561
                                                               Fax: 512.334.4569
                                                      www.arabellasecurities.com

February 3, 2006

David Collins
675 Bering Drive
Suite 200
Houston, TX 77057

Dear Mr. Collins

     This  letter  is  to  confirm  the  engagement  of  Arabella  Securities
     ("Arabella")  on  a  non-exclusive  basis  to render financial advisory and
     investment  banking  services  to  Petrosearch  Energy  Corporation  (the
     "Company")  in  connection  with  a  best  efforts  private  placement  to
     accredited  investors  of up to $3,000,000 (the "Financing") of securities,
     including  common  stock  and  warrants.

     I.   In  that  connection,  Arabella  will

          (i)       familiarize  itself  to  the  extent  it  deems  appropriate
                    and  feasible  with  the  business,  operations, properties,
                    financial  condition,  management  and  prospects  of  the
                    Company;

          (ii)      develop  a  list  of  prospective  investors  which  must be
                    agreed  to  by  the  Company;

          (iii)     contact  prospective  investors  with  regard  to  the
                    Financing;  and

          (iv)      assist  the  Company  in  any  discussions  and negotiations
                    with prospective investors and in coordinating  the  closing
                    of  the  Financing.

     II.  The Company  shall  have  the  right,  in  its  sole  discretion,  to
          approve the pricing and all other terms of the Financing and to accept
          or  reject  any  offers  or  subscriptions  by  prospective investors.

     III. As compensation  for  its  investment  banking  services,  contingent
          upon  the  closing of the Financing, Arabella will receive a placement
          fee  of 5% of the gross proceeds of the Financing, payable immediately
          upon  the  closing  of  the  Financing.

     IV.  In addition,  contingent  upon  the  closing  of  the  Financing,
          Arabella  shall receive warrants to purchase shares of Common Stock of
          the  Company equal to 5% of the total number of shares of Common Stock
          issued  in  the Financing at the time of closing of the Financing. The
          warrants  will be exercisable for a period of three (3) years from the
          issue date and will have an exercise price equal to the exercise price
          of the warrants issued in the Financing. Arabella shall become a party
          to  any registration rights agreement executed between the Company and
          the  investors  in  the  Financing,  which agreement shall provide for
          piggyback  registration  rights  of  the  common  stock underlying the
          warrants  issued  to  Arabella  on  the  same  terms  as  apply to the
          investors.

     V.   This engagement  shall  continue  in  effect  until  4:00 p.m. Central
          Standard  Time  on February 6, 2006. The provisions of paragraphs III,
          IV,  VI  and  VII  hereof shall survive for one (1) year following the
          consummation  of  the  Financing or the termination of this agreement.

     VI.  The Company  agrees  to  indemnify  and  hold  Arabella  harmless from
          and  against  any  losses, claims, damages or liabilities (or actions,
          including  security  holder actions, in respect thereof) related to or
          arising  out  of  Arabella's  engagement  hereunder  or  its  role  in
          connection  herewith,  and  will reimburse Arabella for all reasonable
          expenses  (including  reasonable counsel fees) as they are incurred by
          Arabella  in connection with investigating, preparing for or defending
          any such action or claim, whether or not in connection with pending or
          threatened  litigation  in which Arabella is a party. The Company will
          not,  however,  be  responsible  for  any claims, liabilities, losses,
          damages  or  expenses, which are finally judicially determined to have
          resulted

                                     Page 1
<PAGE>
          primarily  from  the  bad  faith  or gross negligence of Arabella. The
          Company  also  agrees  that  Arabella  shall  not  have  any liability
          (whether  direct or indirect, in contract or tort or otherwise) to the
          Company for or in connection with such engagement, except for any such
          liability  for  losses,  claims,  damages,  liabilities  or  expenses
          (excluding  consequential damages) incurred by the Company that result
          primarily  from  the bad faith or gross negligence of Arabella. In the
          event  that  the  foregoing  indemnity  is unavailable or insufficient
          (except  by  reason of the bad faith or gross negligence of Arabella),
          then  the  Company  shall  contribute  to  amounts  paid or payable by
          Arabella  in respect of its losses, claims, damages and liabilities in
          such  proportion  as  appropriately  reflects  the  relative  benefits
          received by, and fault of, the Company and Arabella in connection with
          the  matters  as  to which such losses, claims, damages or liabilities
          relate  and other equitable considerations; provided, however, that in
          no  event  shall  the  amount to be contributed by Arabella exceed the
          amount  of  the fee actually received by Arabella. The foregoing shall
          be  in  addition  to any rights that Arabella or any other indemnified
          person  may  have  at  common law or otherwise and shall extend to and
          inure  to  the  benefit  of  any director, officer, employee, agent or
          controlling  person  of  Arabella.

     VII. The Company  agrees  to  pay  Arabella's  legal  fees  in  connection
          with  the  Financing  in  an  amount  not  to  exceed  $5,000.00.

     This  agreement  may  not  be  amended or modified except in writing signed
     by both parties hereto and shall be governed by and construed in accordance
     with  the  laws  of  the  State  of  Texas.

     Please confirm that the foregoing is in accordance with your understandings
     and  agreements  with Arabella by signing and returning to us the duplicate
     of  this  letter  enclosed  herewith.

Very truly yours,

ARABELLA SECURITIES

By:   /s/  Zachary Landry
      -------------------------------------
      Zachary Landry, Managing Director

Arabella Securities is a dba of Choice Investments, Inc. (Member NASD/SIPC)

CONFIRMED AND AGREED:

Petrosearch Energy Corporation

By:   /s/  David Collins
      -------------------------------------
      David Collins
      Vice President and Chief Financial Officer

Approved by:

CHOICE INVESTMENTS, INC.

By:   /s/  Donald Itzen
      -------------------------------------
      Donald Itzen

                                     Page 2

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