Document:

Exhibit
10.1

 

AMENDMENT
NUMBER THREE TO FIFTH AMENDED AND RESTATED LOAN

AND SECURITY AGREEMENT

 

THIS
AMENDMENT NUMBER THREE TO FIFTH AMENDED AND RESTATED LOAN AND SECURITY
AGREEMENT (this “Amendment”), dated as of May 8, 2003, is
entered into by and among HPSC, INC.,
a Delaware corporation (“Borrower”), each of the lenders that is a signatory to
this Amendment (together with its successors and permitted assigns,
individually, “Lender” and, collectively, “Lenders”), and FOOTHILL CAPITAL CORPORATION, a California
corporation, as the arranger and administrative agent for the Lenders (in such
capacity, together with its successors, if any, in such capacity, “Agent”; and
together with each of the Lenders, individually and collectively, the “Lender
Group”), in light of the following:

 

W
I  T  N  E  S  S  E  T  H

 

WHEREAS, Borrower and the Lender Group are parties to
that certain Loan and Security Agreement, dated as of August 5, 2002, as
amended by Amendment Number One to Fifth Amended and Restated Loan and Security
Agreement dated as of November 8, 2002 and as amended by Amendment Number Two
to Fifth Amended and Restated Loan and Security Agreement dated as of January
31, 2003 (as amended, restated, supplemented, or modified from time to time,
the “Loan Agreement”);

 

WHEREAS, Borrower has requested that the Lender Group
consent to the amendment of the Loan Agreement as set forth herein; and

 

WHEREAS, subject to the satisfaction of the conditions
set forth herein, the Lender Group is willing to so consent to the amendment of
the Loan Agreement.

 

NOW, THEREFORE, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties agree
to amend the Loan Agreement as follows:

 

1.             DEFINITIONS. 
Capitalized terms used herein and not otherwise defined herein shall
have the meanings ascribed to them in the Loan Agreement, as amended hereby.

 

2.             AMENDMENTS
TO LOAN AGREEMENT.

 

(a)           Section
1.1 of the Loan Agreement is hereby amended by inserting the following new
definitions in proper alphabetical order:

 

“Citizens Amendment Fee” has the meaning set
forth in Section 2.11(h).

 

“Foothill Amendment Fee” has the meaning set
forth in Section 2.11(i).

 

“Third Amendment” means that certain Amendment
Number Three to Fifth Amended and Restated Loan and Security Agreement dated as
of May 8, 2003, by and between the Borrower and the Lender Group.

 

1

 

“Third Amendment Effective Date” means the
date, if ever, that all of the conditions set forth in Section 3 of the
Third Amendment shall be satisfied (or waived by Agent in its sole discretion).

 

(b)           Section
1.1 of the Loan Agreement is hereby amended by amending and restating the
following definitions as follows:

 

“Applicable Base Rate Margin” means, as of any
date of determination, the following margin based upon Borrower’s most recent
Debt to Worth Ratio calculation (determined as set forth in the following
paragraph); provided, however, that for the period from the
Closing Date through the date Agent receives the certified calculation of the
Debt to Worth Ratio in respect of the testing period ending June 30, 2002
delivered by Borrower pursuant to Section 6.3(a)(iii)(B), the
Applicable Base Rate Margin shall be calculated based upon Borrower’s Debt to
Worth Ratio as of March 31, 2002 (calculated on a pro forma basis as if the
transactions contemplated hereby had been consummated as of such date):

 

	
  Level

  	
   

  	
  Debt to
  Worth Ratio

  	
   

  	
  Base Rate
  Margin

  
	
  I

  	
   

  	
  less than 6.5:1.0

  	
   

  	
  0.75 percentage points

  
	
  II

  	
   

  	
  equal to or greater than 6.5:1.0 and less than
  7.0:1.0

  	
   

  	
  1.00 percentage points

  
	
  III

  	
   

  	
  equal to or greater than 7.0:1.0

  	
   

  	
  1.25 percentage points

  

 

The Applicable Base Rate Margin shall be based upon
Borrower’s most recent Debt to Worth Ratio calculation, which will be
calculated each fiscal quarter of Borrower as at the end of such fiscal quarter
based upon the fiscal quarter then ended. 
The Applicable Base Rate Margin shall be redetermined each fiscal
quarter of Borrower on the date Agent receives the certified calculation of the
Debt to Worth Ratio pursuant to Section 6.3(a)(iii)(B) hereof; provided,
however, that if Borrower fails to provide such certification when such
certification is due, the Applicable Base Rate Margin shall be set at the
margin in the row styled “Level III” as of the date on which the certification
was required to be delivered until the date on which such certification is
delivered (on which date (but not retroactively), without constituting a waiver
of any Default or Event of Default occasioned by the failure to timely deliver
such certification, the Applicable Base Rate Margin shall be set at the margin
based upon the Debt to Worth Ratio calculation disclosed by such
certification).

 

“Applicable LIBOR Rate Margin” means, as of any
date of determination, the following margin based upon Borrower’s most recent
Debt to Worth Ratio calculation (determined as set forth in the following
paragraph); provided, however, that for the period from the
Closing Date through the date Agent receives the certified calculation of the
Debt to Worth Ratio in respect of the testing period ending June 30, 2002
delivered by Borrower pursuant to Section 6.3(a)(iii)(B), the
Applicable LIBOR Rate Margin shall be calculated based upon Borrower’s Debt to
Worth Ratio as of March 31, 2002 (calculated on a pro forma basis as if the
transactions contemplated hereby had been consummated as of such date):

 

2

 

	
  Level

  	
   

  	
  Debt to
  Worth Ratio

  	
   

  	
  LIBOR Rate
  Margin

  
	
  I

  	
   

  	
  less than 6.5:1.0

  	
   

  	
  2.75 percentage points

  
	
  II

  	
   

  	
  equal to or greater than 6.5:1.0 and less than
  7.0:1.0

  	
   

  	
  3.00 percentage points

  
	
  III

  	
   

  	
  equal to or greater than 7.0:1.0

  	
   

  	
  3.25 percentage points

  

 

The Applicable LIBOR Rate Margin shall be based upon
Borrower’s most recent Debt to Worth Ratio calculation, which will be
calculated each fiscal quarter of Borrower as at the end of such fiscal quarter
based upon the fiscal quarter then ended. 
The Applicable LIBOR Rate Margin shall be redetermined each fiscal quarter
of Borrower on the date Agent receives the certified calculation of the Debt to
Worth Ratio pursuant to Section 6.3(a)(iii)(B) hereof; provided, however,
that if Borrower fails to provide such certification when such certification is
due, the Applicable LIBOR Rate Margin shall be set at the margin in the row
styled “Level III” as of the date on which the certification was required to be
delivered until the date on which such certification is delivered (on which
date (but not retroactively), without constituting a waiver of any Default or
Event of Default occasioned by the failure to timely deliver such
certification, the Applicable LIBOR Rate Margin shall be set at the margin
based upon the Debt to Worth Ratio calculation disclosed by such
certification).

 

“Maximum Revolver Amount” means $70,000,000.

 

(c)           Section
2.11 of the Loan Agreement is hereby amended (i) by deleting the phrase
“(except in the case of the fees described in clauses (d), (e), (f), and (g) of
this Section 2.11, which fees shall be divided among the Lenders as set
forth therein)”, immediately following the words “(irrespective of whether this
Agreement is terminated thereafter) and shall” appearing in the first sentence
therein, and replacing it with the phrase “(except in the case of the fees
described in clauses (d), (e), (f), (g), (h) and (i) of this Section 2.11,
which fees shall be divided among the Lenders as set forth therein)”, (ii) by
deleting the word “and” at the end of clause (f) thereof, (iii) by deleting the
period at the end of clause (g) thereof and replacing it with a comma, and (iv)
by adding the following new clauses (h) and (i):

 

“(h)         Citizens Amendment Fee.  An amendment fee in the amount of $75,000 (the “Citizens
Amendment Fee”), which amendment fee shall be fully earned on the Third
Amendment Effective Date, and shall be charged to Borrower’s Loan Account on
such date, and shall be for the sole benefit of Citizens Bank of Massachusetts,
and

 

(i)            Foothill Amendment Fee.  An amendment fee in the amount of $75,000
(the “Foothill Amendment Fee”), which amendment fee shall be fully
earned on the Third Amendment Effective Date, and shall be charged to
Borrower’s Loan Account on such date, and shall be for the sole benefit of
Foothill.”

 

3

 

(d)           Schedule
C-1 of the Loan Agreement is hereby amended and restated in its entirety as
follows:

 

Schedule
C-1

Commitments

 

	
  Lender

  	
   

  	
  Revolver Commitment

  	
   

  	
  Total Commitment

  	
   

  
	
  Foothill Capital
  Corporation

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banknorth, N.A.

  	
   

  	
  $

  	
  10,000,000

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citizens Bank of
  Massachusetts

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  All Lenders

  	
   

  	
  $

  	
  70,000,000

  	
   

  	
  $

  	
  70,000,000

  	
   

  

 

3.             CONDITIONS
PRECEDENT TO THIS AMENDMENT.  The
satisfaction of each of the following shall constitute conditions precedent to
the effectiveness of this Amendment and each and every provision hereof:

 

(a)           The
representations and warranties in this Amendment, the Loan Agreement and the
other Loan Documents shall be true and correct in all respects on and as of the
date hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

 

(b)           Agent
shall have received the reaffirmation and consent of ACFC attached hereto as Exhibit
A (the “Consent”), duly executed and delivered by an authorized official of
ACFC;

 

(c)           No
Default or Event of Default shall have occurred and be continuing on the date
hereof or as of the date of the effectiveness of this Amendment; and

 

(d)           No
injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated
herein shall have been issued and remain in force by any Governmental Authority
against Borrower, ACFC, or the Lender Group.

 

4.             REPRESENTATIONS
AND WARRANTIES. 
Borrower hereby represents and warrants to the Lender Group as follows:

 

(a)           The
representations and warranties in this Amendment, the Loan Agreement and the
other Loan Documents are true and correct in all respects on and as of the date
hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

 

4

 

(b)           the
execution, delivery, and performance of this Amendment and of the Loan
Agreement, as amended by this Amendment, are within Borrower’s corporate
powers, have been duly authorized by all necessary corporate action, and are
not in contravention of any law, rule, or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court, or governmental
authority, or of the terms of its charter or bylaws, or of any contract or
undertaking to which it is a party or by which any of its properties may be
bound or affected,

 

(c)           this
Amendment and the Loan Agreement, as amended by this Amendment, constitute
Borrower’s legal, valid, and binding obligation, enforceable against Borrower
in accordance with its terms,

 

(d)           this
Amendment has been duly executed and delivered by Borrower,

 

(e)           the
execution, delivery, and performance of the Consent is within ACFC’s corporate
power, has been duly authorized by all necessary corporate action, and is not
in contravention of any law, rule or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court or governmental
authority, or of the terms of its charter or bylaws, or of any contract or
undertaking to which it is a party or by which any of its properties may be
bound or affected,

 

(f)            the
Consent constitutes ACFC’s legal, valid, and binding obligations, enforceable
against Guarantor in accordance with its terms,

 

(g)           No
Default or Event of Default has occurred and is continuing on the date hereof
or as of the date of the effectiveness of this Amendment,

 

(h)           No
injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated
herein has been issued and remain in force by any Governmental Authority
against Borrower, ACFC, or the Lender Group, and

 

(i)            the
Consent has been duly executed and delivered by ACFC.

 

5.             CONSTRUCTION.  THIS AMENDMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
CALIFORNIA APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF CALIFORNIA.

 

6.             ENTIRE
AMENDMENT; EFFECT OF AMENDMENT.  This Amendment, and terms and provisions hereof, constitute the
entire agreement among the parties pertaining to the subject matter hereof and
supersedes any and all prior or contemporaneous amendments relating to the
subject matter hereof. Except for the amendments to the Loan Agreement
expressly set forth in Section 2 hereof, the Loan Agreement and other
Loan Documents shall remain unchanged and in full force and effect. The
execution, delivery, and performance of this Amendment shall not operate as a
waiver of or, except as expressly set forth herein, as

 

5

 

an amendment of, any right, power, or remedy of the Lender Group as in
effect prior to the date hereof.  The
amendments and other agreements set forth herein are limited to the specifics
hereof, shall not apply with respect to any facts or occurrences other than
those on which the same are based, shall not excuse future non-compliance with
the Loan Agreement, and shall not operate as a consent to any further or other
matter, under the Loan Documents.  To
the extent any terms or provisions of this Amendment conflict with those of the
Loan Agreement or other Loan Documents, the terms and provisions of this
Amendment shall control.  This Amendment
is a Loan Document.

 

7.             COUNTERPARTS;
TELEFACSIMILE EXECUTION. 
This Amendment may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument and any of
the parties hereto may execute this Amendment by signing any such
counterpart.  Delivery of an executed
counterpart of this Amendment by telefacsimile shall be equally as effective as
delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart
of this Amendment by telefacsimile also shall deliver an original executed
counterpart of this Amendment, but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect
of this Amendment.

 

8.             MISCELLANEOUS.

 

(a)           Upon
the effectiveness of this Amendment, each reference in the Loan Agreement to
“this Agreement”, “hereunder”, “herein”, “hereof” or words of like import
referring to the Loan Agreement shall mean and refer to the Loan Agreement as
amended by this Amendment.

 

(b)           Upon
the effectiveness of this Amendment, each reference in the Loan Documents to
the “Loan Agreement”, “thereunder”, “therein”, “thereof” or words of like
import referring to the Loan Agreement shall mean and refer to the Loan
Agreement as amended by this Amendment.

 

[Signature page follows.]

 

6

 

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

 

	
   

  	
  HPSC, INC.

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Everets

  	
   

  
	
   

  	
  Title:

  	
  Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOOTHILL CAPITAL CORPORATION,

  a California corporation, as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Virginia H. Brown

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANKNORTH, N.A.,

  a national association, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Forester

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITIZENS BANK OF MASSACHUSETTS,

  a Massachusetts chartered bank, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Farwell

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  

 

S-1

 

Exhibit
A

 

REAFFIRMATION
AND CONSENT

 

All capitalized terms used herein but not otherwise
defined herein shall have the meanings ascribed to them in that certain Fifth
Amended and Restated Loan and Security Agreement by and among HPSC, INC., a Delaware corporation
(“Borrower”), each of the lenders that is from time to time a party thereto
(together with their respective successors and permitted assigns, individually,
“Lender” and, collectively, “Lenders”), and FOOTHILL
CAPITAL CORPORATION, a California corporation, as the arranger and
administrative agent for the Lenders (in such capacity, together with its
successors, if any, in such capacity, “Agent”; and together with each of the
Lenders, individually and collectively the “Lender Group”), dated as of August
5, 2002 (as amended, restated, supplemented or otherwise modified, the “Loan
Agreement”), or in Amendment Number Three to Fifth Amended and Restated Loan
and Security Agreement, dated as of May 8, 2003 (the “Amendment”), among
Borrower and the Lender Group.  The
undersigned each hereby (a) represent and warrant to the Lender Group that the
execution, delivery, and performance of this Reaffirmation and Consent are
within its powers, have been duly authorized by all necessary action, and are
not in contravention of any law, rule, or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court, or governmental
authority, or of the terms of its charter or bylaws, or of any contract or
undertaking to which it is a party or by which any of its properties may be
bound or affected; (b) consents to the amendment of the Loan Agreement by the
Amendment; (c) acknowledges and reaffirms its obligations owing to the Lender
Group under any Loan Documents to which it is a party; and (d) agrees that each
of the Loan Documents to which it is a party is and shall remain in full force
and effect.  Although the undersigned
has been informed of the matters set forth herein and has acknowledged and
agreed to same, it understands that the Lender Group has no obligations to
inform it of such matters in the future or to seek its acknowledgment or
agreement to future amendments, and nothing herein shall create such a duty.  Delivery of an executed counterpart of this
Reaffirmation and Consent by telefacsimile shall be equally as effective as
delivery of an original executed counterpart of this Reaffirmation and
Consent.  Any party delivering an executed
counterpart of this Reaffirmation and Consent by telefacsimile also shall
deliver an original executed counterpart of this Reaffirmation and Consent but
the failure to deliver an original executed counterpart shall not affect the
validity, enforceability, and binding effect of this Reaffirmation and
Consent.  This Reaffirmation and Consent
shall be governed by the laws of the State of California.

 

[signature page follows]

 

 

IN WITNESS WHEREOF, the undersigned have each caused
this Reaffirmation and Consent to be executed as of the date of the Amendment.

 

 

	
   

  	
  AMERICAN COMMERCIAL FINANCE
  CORPORATION,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ John Everets

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:Exhibit 10.2

 

AMENDMENT
NUMBER FOUR TO FIFTH AMENDED AND RESTATED LOAN

AND SECURITY AGREEMENT

 

THIS AMENDMENT NUMBER FOUR TO FIFTH
AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT (this
“Amendment”), dated as of May 14, 2003, is entered into by and among HPSC, INC.,
a Delaware corporation (“Borrower”), each of the lenders that is a signatory to
this Amendment (together with its successors and permitted assigns,
individually, “Lender” and, collectively, “Lenders”), and FOOTHILL CAPITAL CORPORATION,
a California corporation, as the arranger and administrative agent for the
Lenders (in such capacity, together with its successors, if any, in such
capacity, “Agent”; and together with each of the Lenders, individually and
collectively, the “Lender Group”), in light of the following:

 

W  I  T  N  E  S  S
E  T  H

 

WHEREAS,
Borrower and the Lender Group are parties to that certain Loan and Security
Agreement, dated as of August 5, 2002, as amended by Amendment Number One
to Fifth Amended and Restated Loan and Security Agreement dated as of
November 8, 2002, as amended by Amendment Number Two to Fifth Amended and
Restated Loan and Security Agreement dated as of January 31, 2003, and as
amended by Amendment Number Three to Fifth Amended and Restated Loan and
Security Agreement dated as of May 8, 2003 (as amended, restated,
supplemented, or modified from time to time, the “Loan Agreement”);

 

WHEREAS,
Borrower has requested that the Lender Group consent to the amendment of the
Loan Agreement as set forth herein;

 

WHEREAS,
Borrower has informed the Lender Group that it has failed to comply with the
Debt to Worth Ratio financial covenant set forth in Section 7.20(a)(ii)
of the Loan Agreement for the period ending March 31, 2003 (the “Designated
Event of Default”);

 

WHEREAS,
Borrower has requested that the Lender Group waive the Designated Event of
Default; and

 

WHEREAS,
subject to the satisfaction of the conditions set forth herein, the Lender
Group is willing to so consent to the amendment of the Loan Agreement and to so
waive solely the Designated Event of Default.

 

NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the parties agree to amend the Loan Agreement as
follows:

 

1.                                      DEFINITIONS.  Capitalized terms used herein and not
otherwise defined herein shall have the meanings ascribed to them in the Loan
Agreement, as amended hereby.

 

1

 

2.                                      AMENDMENTS
TO LOAN AGREEMENT.

 

(a)                                  Section
1.1 of the Loan Agreement is hereby amended by inserting the following new
definitions in proper alphabetical order:

 

“Bank
North Amendment Fee” has the meaning set forth in Section 2.11(j).

 

“Fourth
Amendment” means that certain Amendment Number Four to Fifth Amended and
Restated Loan and Security Agreement dated as of May 14, 2003, by and
between the Borrower and the Lender Group.

 

“Fourth
Amendment Effective Date” means the date, if ever, that all of the
conditions set forth in Section 4 of the Fourth Amendment shall be
satisfied (or waived by Agent in its sole discretion).

 

“Fourth
Amendment Waiver Fee” has the meaning set forth in Section 2.11(k).

 

(b)                                 Section
1.1 of the Loan Agreement is hereby amended by amending and restating the
following definitions as follows:

 

“Maximum
Revolver Amount” means $75,000,000.

 

(c)                                  Section 2.11 of the Loan Agreement is hereby
amended (i) by deleting the phrase “(except in the case of the fees described
in clauses (d), (e), (f), (g), (h) and (i) of this Section 2.11, which
fees shall be divided among the Lenders as set forth therein)”, immediately
following the words “(irrespective of whether this Agreement is terminated
thereafter) and shall” appearing in the first sentence therein, and replacing
it with the phrase “(except in the case of the fees described in clauses (d),
(e), (f), (g), (h), (i), (j) and (k) of this Section 2.11, which fees
shall be divided among the Lenders as set forth therein)”, (ii) by deleting the
word “and” at the end of clause (h) thereof, (iii) by deleting the period at
the end of clause (i) thereof and replacing it with a comma, and (iv) by adding
the following new clauses (j) and (k):

 

“(j)                               Banknorth
Amendment Fee.  An amendment
fee in the amount of $37,500 (the “Banknorth Amendment Fee”), which
amendment fee shall be fully earned on the Fourth Amendment Effective Date, and
shall be charged to Borrower’s Loan Account on such date, and shall be for the
sole benefit of Banknorth, N.A., and

 

(k)                                  Fourth
Amendment Waiver Fee.  A
waiver fee in the amount of $15,000 (the “Fourth Amendment Waiver Fee”),
which Fourth Amendment Waiver Fee shall be fully earned on the Fourth Amendment
Effective Date, and shall be charged to Borrower’s Loan Account on such date,
and shall be for the ratable benefit of the Lenders.”

 

(d)                                 Schedule C-1 of the Loan Agreement is hereby
amended and restated in its entirety as follows:

 

2

 

Schedule C-1

Commitments

 

	
  Lender

  	
   

  	
  Revolver
  Commitment

  	
   

  	
  Total
  Commitment

  	
   

  
	
  Foothill
  Capital Corporation

  	
   

  	
  $

  	
  40,000,000

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Banknorth,
  N.A.

  	
   

  	
  $

  	
  15,000,000

  	
   

  	
  $

  	
  15,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Citizens
  Bank of Massachusetts

  	
   

  	
  $

  	
  20,000,000

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  All
  Lenders

  	
   

  	
  $

  	
  75,000,000

  	
   

  	
  $

  	
  75,000,000

  	
   

  

 

3.                                      WAIVER.  Subject to the satisfaction of the
conditions precedent set forth below in Section 4, the Lender Group
hereby waives solely the Designated Event of Default.

 

4.                                      CONDITIONS
PRECEDENT TO THIS AMENDMENT. 
The satisfaction of each of the following shall constitute conditions
precedent to the effectiveness of this Amendment and each and every provision
hereof:

 

(a)                                  The
representations and warranties in this Amendment, the Loan Agreement and the
other Loan Documents shall be true and correct in all respects on and as of the
date hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

 

(b)                                 Agent
shall have received the reaffirmation and consent of ACFC attached hereto as Exhibit A
(the “Consent”), duly executed and delivered by an authorized official of ACFC;

 

(c)                                  No
Default or Event of Default (other than the Designated Event of Default) shall
have occurred and be continuing on the date hereof or as of the date of the
effectiveness of this Amendment; and

 

(d)                                 No
injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated
herein shall have been issued and remain in force by any Governmental Authority
against Borrower, ACFC, or the Lender Group.

 

5.                                      REPRESENTATIONS
AND WARRANTIES. 
Borrower hereby represents and warrants to the Lender Group as follows:

 

(a)                                  The
representations and warranties in this Amendment, the Loan Agreement and the
other Loan Documents are true and correct in all respects on and as of the date
hereof, as though made on such date (except to the extent that such
representations and warranties relate solely to an earlier date);

 

3

 

(b)                                 the
execution, delivery, and performance of this Amendment and of the Loan
Agreement, as amended by this Amendment, are within Borrower’s corporate
powers, have been duly authorized by all necessary corporate action, and are
not in contravention of any law, rule, or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court, or governmental
authority, or of the terms of its charter or bylaws, or of any contract or
undertaking to which it is a party or by which any of its properties may be
bound or affected,

 

(c)                                  this
Amendment and the Loan Agreement, as amended by this Amendment, constitute
Borrower’s legal, valid, and binding obligation, enforceable against Borrower
in accordance with its terms,

 

(d)                                 this
Amendment has been duly executed and delivered by Borrower,

 

(e)                                  the
execution, delivery, and performance of the Consent is within ACFC’s corporate
power, has been duly authorized by all necessary corporate action, and is not
in contravention of any law, rule or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court or governmental
authority, or of the terms of its charter or bylaws, or of any contract or
undertaking to which it is a party or by which any of its properties may be
bound or affected,

 

(f)                                    the
Consent constitutes ACFC’s legal, valid, and binding obligations, enforceable
against Guarantor in accordance with its terms,

 

(g)                                 No
Default or Event of Default (other than the Designated Event of Default) has
occurred and is continuing on the date hereof or as of the date of the
effectiveness of this Amendment,

 

(h)                                 No
injunction, writ, restraining order, or other order of any nature prohibiting,
directly or indirectly, the consummation of the transactions contemplated
herein has been issued and remain in force by any Governmental Authority against
Borrower, ACFC, or the Lender Group, and

 

(i)                                     the
Consent has been duly executed and delivered by ACFC.

 

6.                                      CONSTRUCTION.  THIS AMENDMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF CALIFORNIA APPLICABLE TO
CONTRACTS MADE AND TO BE PERFORMED IN THE STATE OF CALIFORNIA.

 

7.                                      ENTIRE
AMENDMENT; EFFECT OF AMENDMENT. 
This Amendment, and terms and provisions hereof, constitute the entire
agreement among the parties pertaining to the subject matter hereof and
supersedes any and all prior or contemporaneous amendments relating to the
subject matter hereof. Except for the amendments to the Loan Agreement
expressly set forth in Section 2 hereof, and the waiver expressly
set forth in Section 3 hereof, the Loan Agreement and other Loan
Documents shall remain unchanged and in full force and

 

4

 

effect. The execution, delivery, and performance of this Amendment
shall not operate as a waiver of or, except as expressly set forth herein, as
an amendment of, any right, power, or remedy of the Lender Group as in effect
prior to the date hereof.  The
amendments and waiver set forth herein are limited to the specifics hereof,
shall not apply with respect to any facts or occurrences other than those on
which the same are based, shall not excuse future non-compliance with the Loan
Agreement, shall not operate as a waiver of any Default or Event of Default
other than the Designated Event of Default, and shall not operate as a waiver
or consent to any further or other matter, under the Loan Documents.  To the extent any terms or provisions of
this Amendment conflict with those of the Loan Agreement or other Loan
Documents, the terms and provisions of this Amendment shall control.  This Amendment is a Loan Document.

 

8.                                      COUNTERPARTS;
TELEFACSIMILE EXECUTION. 
This Amendment may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument and any of
the parties hereto may execute this Amendment by signing any such
counterpart.  Delivery of an executed
counterpart of this Amendment by telefacsimile shall be equally as effective as
delivery of an original executed counterpart of this Amendment.  Any party delivering an executed counterpart
of this Amendment by telefacsimile also shall deliver an original executed
counterpart of this Amendment, but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect
of this Amendment.

 

9.                                      MISCELLANEOUS.

 

(a)                                  Upon
the effectiveness of this Amendment, each reference in the Loan Agreement to
“this Agreement”, “hereunder”, “herein”, “hereof” or words of like import
referring to the Loan Agreement shall mean and refer to the Loan Agreement as
amended by this Amendment.

 

(b)                                 Upon
the effectiveness of this Amendment, each reference in the Loan Documents to
the “Loan Agreement”, “thereunder”, “therein”, “thereof” or words of like
import referring to the Loan Agreement shall mean and refer to the Loan Agreement
as amended by this Amendment.

 

5

 

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

 

	
   

  	
  HPSC,
  INC.

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ John Everets

  	
   

  
	
   

  	
  Title:

  	
  Chairman

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOOTHILL
  CAPITAL CORPORATION,

  a California corporation, as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Virginia H. Brown

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANKNORTH,
  N.A.,

  a national association, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Forester

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  CITIZENS BANK OF MASSACHUSETTS,

  a Massachusetts chartered bank, as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David Farwell

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  

 

S-1

 

Exhibit
A

 

REAFFIRMATION
AND CONSENT

 

All capitalized terms used herein but not otherwise
defined herein shall have the meanings ascribed to them in that certain Fifth
Amended and Restated Loan and Security Agreement by and among HPSC, INC.,
a Delaware corporation (“Borrower”), each of the lenders that is from time to
time a party thereto (together with their respective successors and permitted
assigns, individually, “Lender” and, collectively, “Lenders”), and FOOTHILL
CAPITAL CORPORATION, a California corporation, as the arranger and
administrative agent for the Lenders (in such capacity, together with its
successors, if any, in such capacity, “Agent”; and together with each of the
Lenders, individually and collectively the “Lender Group”), dated as of August 5,
2002 (as amended, restated, supplemented or otherwise modified, the “Loan
Agreement”), or in Amendment Number Four to Fifth Amended and Restated Loan and
Security Agreement, dated as of May 14, 2003 (the “Amendment”), among
Borrower and the Lender Group.  The
undersigned each hereby (a) represent and warrant to the Lender Group that
the execution, delivery, and performance of this Reaffirmation and Consent are
within its powers, have been duly authorized by all necessary action, and are
not in contravention of any law, rule, or regulation, or any order, judgment,
decree, writ, injunction, or award of any arbitrator, court, or governmental
authority, or of the terms of its charter or bylaws, or of any contract or
undertaking to which it is a party or by which any of its properties may be
bound or affected; (b) consents to the amendment of the Loan Agreement by
the Amendment; (c) acknowledges and reaffirms its obligations owing to the
Lender Group under any Loan Documents to which it is a party; and
(d) agrees that each of the Loan Documents to which it is a party is and
shall remain in full force and effect. 
Although the undersigned has been informed of the matters set forth
herein and has acknowledged and agreed to same, it understands that the Lender
Group has no obligations to inform it of such matters in the future or to seek
its acknowledgment or agreement to future amendments, and nothing herein shall
create such a duty.  Delivery of an
executed counterpart of this Reaffirmation and Consent by telefacsimile shall
be equally as effective as delivery of an original executed counterpart of this
Reaffirmation and Consent.  Any party
delivering an executed counterpart of this Reaffirmation and Consent by
telefacsimile also shall deliver an original executed counterpart of this
Reaffirmation and Consent but the failure to deliver an original executed
counterpart shall not affect the validity, enforceability, and binding effect
of this Reaffirmation and Consent.  This
Reaffirmation and Consent shall be governed by the laws of the State of
California.

 

[signature page follows]

 

 

IN WITNESS WHEREOF, the undersigned have each caused
this Reaffirmation and Consent to be executed as of the date of the Amendment.

 

	
   

  	
  AMERICAN COMMERCIAL FINANCE
  CORPORATION,

  a Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ John Everets

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

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