Document:

exv10w8w4

 

Exhibit 10.8.4

EXECUTION
COPY

AMENDMENT NO. 4 TO

LOAN CERTIFICATE AND SERVICING AGREEMENT

     THIS AMENDMENT NO. 4 TO LOAN CERTIFICATE AND SERVICING AGREEMENT, dated as
of February 26, 2004 (this “Amendment”), is entered into by and among:

     (1) CAPITALSOURCE ACQUISITION FUNDING LLC, a Delaware limited liability
company, as the seller (together with its successors and assigns in such
capacity, the “Seller”);

     (2) CAPITALSOURCE FINANCE LLC, a Delaware limited liability company
(“CapitalSource Finance”), as the originator (together with its
successors and assigns in such capacity, the “Originator”), and as the
servicer (together with its successors and assigns in such capacity, the
“Servicer”);

     (3) VARIABLE FUNDING CAPITAL CORPORATION, a Delaware corporation (together
with its successors and assigns, “VFCC”), as the purchaser (together with its
successors and assigns in such capacity, the “Purchaser”);

     (4) WACHOVIA CAPITAL MARKETS, LLC, (f/k/a Wachovia Securities, Inc.), a
Delaware corporation (together with its successors and assigns, “WCM”),
as the agent for the Purchaser (together with its successors and assigns in
such capacity, the “Purchaser Agent”) and as the agent for the Purchaser
Agent (together with its successors and assigns in such capacity, the
“Administrative Agent”);

     (5) WELLS FARGO BANK, NATIONAL ASSOCIATION, successor by merger to Wells
Fargo Bank Minnesota, National Association (“Wells Fargo”), not in its
individual capacity but as the backup servicer (together with its successors
and assigns in such capacity, the “Backup Servicer”), and not in its
individual capacity but as the collateral custodian (together with its
successors and assigns in such capacity, the “Collateral Custodian”); and

     (6) WACHOVIA
BANK, NATIONAL ASSOCIATION (“Wachovia”), as hedge
counterparty (together with its successors and assigns in such capacity, the
“Hedge Counterparty”), solely for purposes of acknowledging and agreeing
to the terms and provisions hereof.

     Capitalized terms used but not defined herein are used as defined in the
Agreement (defined below).

R E C I T A L S

     WHEREAS, the parties hereto entered into that certain Loan Certificate and
Servicing Agreement, dated as of February 28, 2003, as amended by Amendment No.
1 to Loan Certificate and Servicing Agreement dated as of April 3, 2003,
Amendment No. 2 to Loan Certificate and Servicing Agreement dated as of June
30, 2003 and Amendment No. 3 to Loan Certificate and Servicing Agreement dated
as of August 27, 2003 (as further amended, supplemented, modified or restated
from time to time, the “Agreement”); and

 

 

     WHEREAS, the parties hereto desire to amend the Agreement as provided
herein;

     NOW THEREFORE, based on the foregoing Recitals, the mutual premises and
agreements contained herein, and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
intending to be legally bound hereby agree as follows:

     Section 1. Amendment.

     The following definition in Section 1.1 of the Agreement is hereby
amended and restated in its entirety as follows:

	 
	Facility Termination Date: April 27, 2004, or such later date as
the Administrative Agent
and the Purchaser Agent, in its sole discretion, shall notify the Seller
of in writing.

     Section 2. Representations. The Seller, the Originator and the
Servicer (collectively, the “CapitalSource Parties”) each (as to itself
only) hereby represents and warrants as of the date of this Amendment as
follows: (i) it is duly incorporated or organized, validly existing and in good
standing under the laws of its jurisdiction of organization; (ii) the
execution, delivery and performance by it of this Amendment are within its
powers, have been duly authorized, and do not contravene (A) its articles of
organization, operating agreement, or other organizational documents, or (B)
any Applicable Law; (iii) no consent, license, permit, approval, vote,
authorization, registration, filing or declaration with any Governmental
Authority or any other Person, is required in connection with the execution,
delivery, performance, validity or enforceability of this Amendment by or
against it; (iv) this Amendment has been duly authorized, executed and
delivered by it; (v) this Amendment constitutes its legal, valid and binding
obligation 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 or by general principles of equity; (vi) the
execution and delivery of this Amendment does not diminish or reduce its
obligations under the Agreement and the other Transaction Documents in any
manner except as specifically set forth herein, (vii) such CapitalSource Party
has no claims, counterclaims, offsets, or defenses to the Aggregate Unpaids
under the Agreement and the other Transaction Documents and the performance of
its obligations thereunder, or if such CapitalSource Party has any such claims,
counterclaims, offsets, or defenses to the Aggregate Unpaids under the
Agreement and the other Transaction Documents, the same are hereby waived,
relinquished and released in consideration of the Administrative Agent’s and
the Secured Parties’ execution and delivery of this Amendment, (viii) it is not
in default under the Agreement; (ix) the representations and warranties of the
CapitalSource Parties set forth in Sections 4.1, 4.2 and
4.3 of the Agreement are true and correct as of the date hereof (except
those that expressly relate to an earlier date) and all of the provisions of
the Agreement and the other Transaction Documents, except as amended hereby,
are in full force and effect, and (x) subsequent to the execution and delivery
of this Amendment and after giving effect hereto, no unwaived event has
occurred and is continuing which constitutes an Unmatured Termination Event or
a Termination Event.

2

 

     Section 3. Liens. Each CapitalSource Party affirms the Liens and
security interests created and granted by it in the Agreement and the other
Transaction Documents and agrees that this Amendment shall in no manner
adversely affect or impair such Liens and security interests.

     Section 4. Agreement in Full Force and Effect as Amended.

     Except as specifically amended hereby, the Agreement shall remain in full
force and effect. All references to the Agreement shall be deemed to mean the
Agreement as modified hereby. This Amendment shall not constitute a novation of
the Agreement, but shall constitute an amendment thereof. The parties hereto
agree to be bound by the terms and conditions of the Agreement as amended by
this Amendment, as though such terms and conditions were set forth herein.

     Section 5. Conditions Precedent.

     This Amendment shall not be effective until having been duly executed by,
and delivered to, the parties hereto.

     Section 6. Miscellaneous.

     (a) This Amendment may be executed in any number of counterparts, and by
the different parties hereto on the same or separate counterparts, each of
which shall be deemed to be an original instrument but all of which together
shall constitute one and the same agreement.

     (b) The descriptive headings of the various sections of this Amendment are
inserted for convenience of reference only and shall not be deemed to affect
the meaning or construction of any of the provisions hereof.

     (c) This Amendment may not be amended or otherwise modified except as
provided in the Agreement.

     (d) The failure or unenforceability of any provision hereof shall not
affect the other provisions of this Amendment.

     (e) Whenever the context and construction so require, all words used in
the singular number herein shall be deemed to have been used in the plural, and
vice versa, and the masculine gender shall include the feminine and neuter and
the neuter shall include the masculine and feminine.

     (f) This Amendment represents the final agreement between the parties and
may not be contradicted by evidence of prior, contemporaneous or subsequent
oral agreements between the parties. There are no unwritten oral agreements
between the parties.

     (g) THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. EACH OF THE
PARTIES HERETO AGREES TO THE NON-EXCLUSIVE JURISDICTION OF ANY
FEDERAL COURT LOCATED WITHIN THE STATE OF NEW YORK. EACH OF THE
PARTIES HERETO AND EACH SECURED PARTY HEREBY WAIVES ANY OBJECTION

3

 

BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY
ACTION INSTITUTED HEREUNDER IN ANY OF THE AFOREMENTIONED COURTS
AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS
DEEMED APPROPRIATE BY SUCH COURT.

     (h) TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH OF THE
PARTIES HERETO WAIVES ANY RIGHT TO HAVE A JURY PARTICIPATE IN
RESOLVING ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT, OR
OTHERWISE BETWEEN THE PARTIES HERETO ARISING OUT OF, CONNECTED
WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN ANY OF
THEM IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. INSTEAD, ANY SUCH DISPUTE RESOLVED IN COURT
WILL BE RESOLVED IN A BENCH TRIAL WITHOUT A JURY.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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     IN WITNESS WHEREOF, the parties have caused this Amendment to be executed
by their respective officers thereunto duly authorized, as of the date first
above written.

	 	 	 
	THE SELLER:
	 	
CAPITALSOURCE ACQUISITION FUNDING LLC
	 	 	
By: /s/ Steven A. Museles

Name: Steven A. Museles

Title: Senior Vice President
	 	 	
CapitalSource Acquisition Funding LLC

4445 Willard Avenue, 12th Floor

Chevy Chase, Maryland 20815

Attention:  Controller

Facsimile No.: (301) 841–2375

Confirmation No.: (301) 841–2731
	THE ORIGINATOR

AND THE SERVICER:	 	
CAPITALSOURCE FINANCE LLC
	 	 	
By: /s/ Steven A. Museles

Name: Steven A. Museles

Title: Senior Vice President
	 	 	
CapitalSource Finance LLC

4445 Willard Avenue, 12th Floor

Chevy Chase, Maryland 20815

Attention:              Controller

Facsimile No.: (301) 841–2375

Confirmation No.: (301) 841–2731

[Signatures Continued on the Following Page]

 

 

	 	 	 
	VFCC:

Commitment:

$115,000,000	 	
VARIABLE FUNDING CAPITAL

CORPORATION

By: Wachovia Capital Markets, LLC, as attorney-in-fact
	 	 	
By: /s/ Douglas R. Wilson, SR.

Name: Douglas R. Wilson, SR.

Title: Vice President
	 	 	
Variable Funding Capital Corporation

c/o Wachovia Capital Markets, LLC

One Wachovia Center, Mail Code: NC0610

Charlotte, North Carolina 28288

Attention:               Raj Shah

Facsimile No.: (704) 383–4012

Confirmation No.: (704) 383–9343

With respect to notices required pursuant to Section 13.2 of the
Agreement, a copy of notices sent to VFCC shall be sent to:

Lord Securities Corp.

2 Wall Street, 19th Floor

New York, New York 10005

Attention: Vice President

Facsimile No.: (212) 346–9012

Confirmation No.: (212) 346-9008

	 	 	 
	THE ADMINISTRATIVE AGENT AND 

THE PURCHASER AGENT:
	 	WACHOVIA CAPITAL MARKETS, LLC 

By: /s/ Russell C. Albers

Name: Russell C. Albers

Title: Director

Wachovia Capital Markets, LLC

One Wachovia Center, Mail Code: NC0610

Charlotte, North Carolina 28288

Attention: Raj Shah

Facsimile No.: (704) 383–4012

Confirmation No.: (704) 383-9343

[Signatures Continued on the Following Page]

 

 

	 	 	 
	THE BACKUP SERVICER:	 	
WELLS FARGO BANK, NATIONAL

ASSOCIATION, successor by merger to Wells

Fargo Bank Minnesota, National

Association, not in its individual

capacity but solely as Backup Servicer
	 	 	
By: /s/ Jeanine C. Casey

Name: Jeanine C. Casey

Title: Corporate Trust Officer
	 	 	
Wells Fargo Bank, National Association

Sixth Street and Marquette Avenue

MAC N9311–161

Minneapolis, Minnesota 55479

Attention:               Corporate Trust Services

Asset-Backed Administration

Facsimile No.: (612) 667–3539

Confirmation No.: (612) 667–8058
	THE COLLATERAL CUSTODIAN:	 	
WELLS FARGO BANK, NATIONAL

ASSOCIATION, successor by merger to Wells

Fargo Bank Minnesota, National

Association, not in its individual

capacity but solely as Collateral

Custodian
	 	 	
By: /s/ Jeanine C. Casey

Name: Jeanine C. Casey

Title: Corporate Trust Officer
	 	 	
Wells Fargo Bank, National Association

Sixth Street and Marquette Avenue

MAC N9311–161

Minneapolis, Minnesota 55479

Attention:               Corporate Trust Services

Asset-Backed Administration

Facsimile No.: (612) 667–3539

Confirmation No.: (612) 667–8058

 

 

	 	 	 
	HEDGE COUNTERPARTY:	 	
WACHOVIA BANK, NATIONAL ASSOCIATION
	 	 	
By: /s/ Paul A. Burkhart

Name: Paul A. Burkhart

Title: Vice President
	 	 	
Wachovia Bank, National Association

One Wachovia Center, Mail Code: NC0610

Charlotte, North Carolina 28288

Attention: Raj Shah

Facsimile No.: (704) 383–4012

Confirmation No.: (704) 374–4230
	 	 	
with a copy to:
	 	 	
Wachovia Capital Markets, LLC

One Wachovia Center, Mail Code: NC0610

Charlotte, North Carolina 28288

Attention: Bill Shirley

Facsimile No.: (704) 374–3254exv10wuu

 

Exhibit 10.UU

EXECUTIVE EMPLOYMENT AGREEMENT

          THIS EXECUTIVE EMPLOYMENT AGREEMENT, effective on the 1st day of February,
2002, by and between MERCANTILE-SAFE DEPOSIT AND TRUST COMPANY (“Merc-Safe” or
“Employer”), a corporation of the State of Maryland, Two Hopkins Plaza,
Baltimore, Maryland 21201, and John J. Pileggi, hereinafter referred to as
“Executive.”

          WHEREAS, Employer is engaged in the banking, trust and investment
management business, and Executive has special skills and talents in that
business; and

          WHEREAS, Employer has employed Executive on the terms provided herein, and
Executive, in turn, has accepted full-time employment with Employer according
to such terms.

          NOW, THEREFORE, in consideration of the mutual covenants hereinafter
contained, the parties do hereby agree as follows:

          1. Office of Executive. Executive will serve as Executive Vice President,
Wealth Management Institutional Sales of Merc-Safe. This office may be changed
during the term of this Agreement by mutual consent of the parties.

          2. Term. The term of this Agreement shall begin on February 1, 2002, and
shall terminate on February 1, 2005; provided that the termination date shall
be extended (but not beyond Executive’s retirement date) for one additional
year on February 1, 2005 and on February 1 of each succeeding year, unless
either Employer or Executive on or before the immediately preceding December 31
declines such an extension by written notice to the other party.

          3. Compensation. Executive shall be paid a base annual salary as
determined by the Board of Directors of Merc-Safe from time to time, at a rate
of not less than $400,000 per calendar year, subject to withholding for
appropriate items. Executive shall be eligible for such annual bonus amounts
as the Board of Directors of Merc-Safe may in its discretion award, up to
$400,000 per year. Recommendations as to salary and bonus will be made to the
Board of Directors by the Board’s Committee on Executive Compensation,
Promotion and Retirement.

          4. Other Benefits. Executive shall be entitled to participate in, and to
receive benefits under, any long-term incentive plan, deferred compensation
plan, qualified retirement plan, profit sharing plan, savings plan, group life,
disability, sickness, accident and health programs, or any other benefit plan
or arrangement made available by Employer to its executive officers generally
(other than the Mercantile Bankshares Corporation Annual Incentive Compensation
Plan), subject to and on a basis consistent

 

 

with the terms, conditions and overall administration of each such plan or
arrangement. Any awards of stock incentives will be in the discretion of the
Employer. In addition, Executive shall be entitled to certain benefits under
an Executive Severance Agreement among Executive, Mercantile Bankshares
Corporation and Merc-Safe dated February 1, 2002 (as such agreement may be
amended from time to time).

          5. Expenses. Employer shall reimburse Executive for all reasonable
expenses incurred by Executive in connection with the business of the Employer,
including expenses for entertainment, travel and similar items. Executive
shall submit to Employer substantiation for reimbursable expenses. Employer
shall reimburse Executive for reasonable moving expenses incurred in moving
Executive’s immediate family to the Baltimore area.

          6. Vacation. Executive shall be entitled to a minimum of four weeks
vacation each year.

          7. Scope of Employment. Executive shall perform the duties of Executive
Vice President, Wealth Management Institutional Sales of Merc-Safe in the
Investment Management and Trust Division of Merc-Safe, or any designated
successor division, and for affiliates defined by Employer. Executive agrees
to serve with undivided loyalty to Employer and to devote all of his working
time and efforts in performance of such duties, except for attention to
personal investments, participation in family business enterprises, outside
directorships, and public service commitments, provided that none of the
foregoing shall unreasonably interfere with his principal employment. Employer
shall provide Executive with suitable office, secretarial and other support
assistance appropriate to his position.

          8. Early Termination. This Agreement shall terminate prior to its
specified expiration, as may be extended from time to time, on the occurrence
of the death of Executive, or termination by the Employer for good cause. For
purposes of this Agreement, good cause shall be limited to proven or admitted
fraud or material illegal acts by Executive or a breach of any of Executive’s
covenants of undivided loyalty to and the performance of duties for Employer,
as set out in Section 7 of this Agreement. In addition, if Executive is unable
to perform his duties of office by reason of illness or incapacity for a period
of more than one hundred eighty (180) consecutive days, Employer shall be
entitled to remove Executive from some or any of his offices; provided that
Employer shall restore Executive to any such office if he shall become able to
perform the duties of any such office at any time within the three hundred
sixty-five (355) days next following his removal from any such office.
Notwithstanding the provisions of Section 3 of this Agreement, in the event of
Executive’s long-term disability as defined under Employer’s Disability
Insurance Plan, Executive shall be compensated as provided under such Plan and
shall not receive his base salary or earn any bonus under this Agreement for
the period of time that such disability shall continue.

               In the event that this Agreement is terminated for good cause as herein
provided, all obligations hereunder of Employer to Executive (other than for

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reimbursement of expenses incurred by Executive prior to termination and
any employee benefits that are not extinguished by termination for cause) shall
also simultaneously terminate forthwith.

               In the event that Employer terminates Executive’s employment without good
cause during the original or any extended term of this Agreement, all benefits
(including salary) to Executive provided for in this Agreement shall continue
until the expiration of the remaining term of this Agreement. To the extent
that it shall not be practicable or legally feasible to continue any such
benefit in the form provided for in this Agreement, Employer may provide an
equivalent benefit in some other form or may pay or provide to Executive the
economic value of such benefit.

          9. Non-Competition. Executive agrees that upon termination of his
employment with Employer, he shall not engage in competitive activities in the
State of Maryland or in contiguous states, or the District of Columbia, or in
any other state in which any offices are maintained by Mercshares, Merc-Safe or
affiliated entities, as an employee of, consultant to, or in any other
comparable capacity with, any other banking institution, bank holding company,
financial holding company, or entity engaged in furnishing investment advice or
investment management services, for a period of two years following such
termination. Executive agrees that Employer shall be entitled to injunctive
relief, in lieu of or in addition to damages, for a violation by Executive of
the provisions of this Section 9.

          10. Successors. This Agreement shall be binding upon and inure to the
benefit of all successors of Employer, whether by merger, consolidation,
reorganization, share exchange, transfer of assets or otherwise. This
Agreement shall not be otherwise assignable by Employer except with the prior
written consent of Executive. Executive shall not assign his rights or duties
under this Agreement, except (a) as provided in Section 1 of this Agreement,
and (b) as provided under any employee or executive benefit plan with Employer
relating to Executive.

          11. Notices. All notices called for under this Agreement shall be in
writing addressed to Employer at Two Hopkins Plaza, Baltimore, Maryland 21201,
Attention: Corporate Secretary, and to Executive at Two Hopkins Plaza,
Baltimore, Maryland 21201, or to such other address as either party may
designate to the other in writing from time to time. Any such notice shall be
effective when received or two (2) business days after mailing, postage
prepaid, by first class, certified or registered mail, return receipt
requested.

          12. Entire Agreement. This Agreement represents the entire agreement
between the parties, and all prior representations, agreements and
understandings between the parties as to its subject matter are of no further
force or validity.

          13. Amendments. Any amendments to this Agreement must be in writing
signed by both parties hereto.

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          14. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Maryland, without reference to
principles of conflict of laws.

          15. Headings. The headings used in this Agreement are solely for
convenience and are not to be used in the construction or interpretation
hereof.

          16. Severability. In the event that one or more of the provisions of this
Agreement are found to be unenforceable or illegal, the remaining provisions of
the Agreement shall remain in full force and effect.

          IN WITNESS WHEREOF, the parties have executed this Executive Employment
Agreement, as of the day and year first above written.

WITNESS:

	 	 	 	 	 	 	 
	/s/

	 	/s/ John J. Pileggi	 	 
	

	 	

	SEAL)
	

	 	John J. Pileggi	 	 
	 
	 	 	 	 	 	 
	ATTEST:

	 	MERCANTILE-SAFE DEPOSIT	 	 
	

	 	    AND TRUST COMPANY	 	 
	 
	 	 	 	 	 	 
	/s/ Alan D. Yarbro

	 	By:
	 	/s/ Edward J. Kelly, III	 	 
	

	 	 	 	

	(SEAL)
	ALAN D. YARBRO

	 	 	 	EDWARD J. KELLY, III	 	 
	Secretary

	 	 	 	Chairman and Chief Executive Officer	 	 

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