Document:

exh41.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 4.1

 

	Number  	  	Shares  
	CHINA KANGTAI CACTUS BIO-TECH INC. 
	  	       INCORPORATED UNDER THE LAWS OF THE STATE OF  $ 0.00001  	  
	NEVADA 200,000,000 SHARES COMMON STOCK AUTHORIZED, 
	PAR VALUE 
	  
	  	  	CUSIP  
	  	  	SEE REVERSE  
	  	  	FOR  
	This  	  	CERTAIN  
	certifies  	  	DEFINITIONS  
	that  	  	  
	is the owner of  	  	  
	  
	  
	FULLY PAID AND NON-ASSESSABLE 
	SHARES OF COMMON STOCK OF 
	  
	  
	CHINA KANGTAI CACTUS BIO-TECH INC. 
	transferable on the books of the corporation in person or by duly 
	authorized attorney upon surrender of this certificate properly 
	endorsed. This certificate and the shares represented hereby 
	are subject to the laws of the State of Nevada, and to the 
	Articles of Incorporation and Bylaws of the Corporation, 
	as now or hereafter amended. This certificate is not valid 
	unless countersigned by the Transfer Agent. WITNESS 
	the facsimile seal of the Corporation and the signature 
	of its duly authorized officers 
	  
	  
	  
	  
	PRESIDENT  	[SEAL]  	SECRETARY  

 

 

 

The following abbreviations, when used in the inscription on the face of this certificate, shall be construed as though they were written out in full according to applicable laws or regulations.

	TEN COM 	as tenants in common 	UNIF GIFT MIN ACT 	  ______________	Custodian  _______________
	TEN ENT 	as tenants by the entireties 	 	 (Cust)	  (Minor) 
	JT TEN  

  

 	as joint tenants with the right of  

survivorship and not as tenants  

in common   	Act _________________________________________ 
	  (State) 
	 	 

Additional abbreviations may also be used though not in the above list.

For value received, ______________________________________ hereby sell, assign and transfer unto

                                                     PLEASE INSERT SOCIAL SECURITY OR OTHER

                                                     IDENTIFYING NUMBER OF ASSIGNEE

_____________________________________________________________________________________

                                (PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE OF ASSIGNEE)

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________________

_____________________________________________________________________________ shares of the

capital stock represented by the within Certificate, and do hereby irrevocably constitute and appoint

_____________________________________________________________________________, Attorney to

transfer the said stock on the books of the within named Corporation with full power of substitution in the

premises.

Dated _______________________

X ________________________________________________________________________________

THE SIGNATURE TO THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THIS CERTIFICATE IN EVERY

PARTICULAR WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER. THE SIGNATURE(S) MUST BE GUARANTEED BY AN

ELIGIBLE GUARANTOR INSTITUTION (Banks, Stockbrokers, Savings and Loan Associations and Credit Unions)

 

SIGNATURE GUARANTEED:

 

TRANSFER FEE WILL APPLYDirect General 8-K 12/07/06 Exhibit 10.1

    
      Exhibit
        10.1

      NINTH
        AMENDMENT

       

      TO

       

      EIGHTH
        AMENDED AND RESTATED LOAN AGREEMENT

       

      THIS
        NINTH AMENDMENT TO EIGHTH AMENDED AND RESTATED LOAN AGREEMENT (the "Amendment")
        made and entered into as of the 22 day of November, 2006 (the “Dated Date”), but
        with an Effective Date as defined hereinafter, by and among DIRECT
        GENERAL FINANCIAL SERVICES, INC., a
        Tennessee corporation whose address is 1281 Murfreesboro Road, Nashville,
        Tennessee 37217 (f/k/a Direct Financial Services, Inc.) ("DGFS"), DIRECT
        GENERAL PREMIUM FINANCE COMPANY,
        a
        Tennessee corporation whose address is 1281 Murfreesboro Road, Nashville,
        Tennessee 37217 ("DGPFC"; DGFS and DGPFC may be referred to hereinafter either
        individually or collectively as "Borrower"), DIRECT
        GENERAL CORPORATION,
        a
        Tennessee corporation (formerly known as Direct Corporation) ("DGC"),
DIRECT
        GENERAL INSURANCE AGENCY, INC.,
        a
        Tennessee corporation, DIRECT
        GENERAL INSURANCE AGENCY, INC.,
        an
        Arkansas corporation, DIRECT
        GENERAL INSURANCE AGENCY, INC.,
        a
        Mississippi corporation, DIRECT
        GENERAL INSURANCE AGENCY OF LOUISIANA, INC.,
        a
        Louisiana corporation, DIRECT GENERAL
        AGENCY OF KENTUCKY, INC.,
        a
        Kentucky corporation, DIRECT
        ADJUSTING COMPANY, INC.,
        a
        Tennessee corporation, DIRECT
        ADMINISTRATION, INC.,
        a
        Tennessee corporation, DIRECT
        GENERAL INSURANCE AGENCY, INC.,
        a Texas
        corporation, DIRECT
        GENERAL CONSUMER PRODUCTS, INC.,
        a
        Tennessee corporation, FIRST
        TENNESSEE BANK NATIONAL ASSOCIATION,
        a
        national banking association organized and existing under the statutes of
        the
        United States of America, with offices at 165 Madison Avenue, Memphis,
        Tennessee 38103 (in its agency capacity being herein referred to as "Agent,"
        and
        in its individual capacity as "FTBNA"), for itself and as agent for the other
        Banks hereinafter named, CAPITAL
        ONE, N.A.
        (successor by merger to Hibernia National Bank), a national banking association
        organized and existing under the laws of the United States of America, with
        offices at 440 Third Street, Baton Rouge, Louisiana 70801 ("Capital One"),
U.S.
        BANK NATIONAL ASSOCIATION,
        a
        national banking association (f/k/a U.S. Bank, N. A., which was f/k/a Mercantile
        Bank National Association) with offices located at 150 4th
        Avenue
        N., Nashville, Tennessee 37219 ("U.S. Bank"), CAROLINA
        FIRST BANK,
        a state
        bank formed under the laws of the State of South Carolina with offices located
        at 104 S. Main, Greenville, South Carolina 29601 ("Carolina First"),
JPMORGAN
        CHASE BANK, N.A. (successor
        by merger to Bank One, NA (Main Office Chicago) a
        national banking association with offices located at 451 Florida Street,
        Mail
        Code LA2-2714, Baton Rouge, Louisiana 70801 ("JPMorgan"), REGIONS
        BANK,
        an
        Alabama state banking association with offices located at 417 N. 20th
        Street,
        Birmingham, Alabama 35203 ("Regions"), NATIONAL
        CITY BANK OF KENTUCKY,
        a
        national banking association with offices located at 101 S. Fifth Street,
        37th
        Floor,
        Louisville, Kentucky 40202 ("National City Bank"), FIFTH
        THIRD BANK, N.A. (Tennessee),
        a
        national banking association organized and existing under the laws of the
        United
        States of America, with offices located at 810 Crescent Centre Drive, Suite
        160,
        Franklin, Tennessee 37067 ("Fifth Third"), and MIDFIRST
        BANK,
        a
        national banking association with offices located at 501 N.W. Grand
        Boulevard, Oklahoma City, Oklahoma 73118 ("MidFirst") (FTBNA, Capital One,
        U.S. Bank, Carolina First, JPMorgan, and Regions collectively, the "Original
        Banks") (the Original Banks, National City Bank, Fifth Third and MidFirst
        collectively the "Banks," and each individually, a "Bank").

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      Recitals
        of Fact

       

      Pursuant
        to that certain Eighth Amended and Restated Loan Agreement dated as of October
        31, 2002 (the "Original Loan Agreement") among the Original Banks, DGFS and
        the
        other parties named therein, the Original Banks agreed to make loans and
        advances to DGFS on a revolving credit basis in an aggregate amount not to
        exceed One Hundred Fifteen Million Dollars ($115,000,000.00), evidenced by
        individual revolving credit notes to each Bank for the respective Facility
        Commitments set out in the Original Loan Agreement, each with a termination
        date
        of June 30, 2004 (collectively, the "October 2002 Notes").

       

      Pursuant
        to that certain First Amendment to Eighth Amended and Restated Loan Agreement
        dated as of March 31, 2003 (the "First Amendment") among the Original Banks,
        DGFS and the other parties named therein, the Facility Commitment for Regions
        was increased to a maximum principal amount of Twenty-Five Million Dollars
        ($25,000,000.00), and the total Commitment of the Original Banks was increased
        to a maximum aggregate principal amount of One Hundred Twenty-Five Million
        Dollars ($125,000,000.00).

       

      Pursuant
        to that certain Second Amendment to Eighth Amended and Restated Loan Agreement
        dated as of May 28, 2003 (the "Second Amendment") among the Original Banks,
        National City Bank, DGFS and the other parties named therein, the Facility
        Commitment for Carolina First was increased to a maximum principal amount
        of
        Fifteen Million Dollars ($15,000,000.00); the Facility Commitment for Bank
        One
        was increased to a maximum principal amount of Thirty-Five Million Dollars
        ($35,000,000.00); National City Bank was added as a Bank with a Facility
        Commitment of a maximum principal amount of Fifteen Million Dollars
        ($15,000,000.00); and the total Commitment of the Banks was increased to
        a
        maximum aggregate principal amount of One Hundred Sixty Million Dollars
        ($160,000,000.00).

       

      Pursuant
        to that certain Third Amendment to Eighth Amended and Restated Loan Agreement
        dated as of June 30, 2003 (the "Third Amendment"") among the Banks, DGFS
        and the
        other parties named therein, the Facility Commitment for Hibernia (now known
        as
        Capital One) was increased to a maximum principal amount of Twenty Million
        Dollars ($20,000,000.00); the Facility Commitment for U.S. Bank was increased
        to
        a maximum principal amount of Thirty Million Dollars ($30,000,000.00); Fifth
        Third was added as a Bank with a Facility Commitment of a maximum principal
        amount of Ten Million Dollars ($10,000,000.00); and the total Commitment
        of the
        Banks was increased to a maximum aggregate principal amount of One Hundred
        Eighty Million Dollars ($180,000,000.00).

       

      Pursuant
        to that certain Fourth Amendment to Eighth Amended and Restated Loan Agreement,
        dated on or about July 17, 2003 (the "Fourth Amendment") among the Banks,
        DGFS
        and the other parties named therein, the Loan Agreement was modified to allow
        DGC to pay dividends after the closing of its initial public offering of
        stock.

       

       

      
        
          2

        

        
          
          

          
            

          

        

        
          
          

        

      

      Pursuant
        to that certain Fifth Amendment to Eighth Amended and Restated Loan Agreement,
        dated as of November 26, 2003 (the "Fifth Amendment") among the Banks, DGFS
        and
        the other parties named therein, the Facility Commitment for FTBNA was increased
        to a maximum principal amount of Forty Million Dollars ($40,000,000.00),
        the
        total Commitment of the Banks was increased to a maximum aggregate principal
        amount of One Hundred Ninety Million Dollars ($190,000,000.00), and other
        modifications were made to the Loan Agreement.

       

      Pursuant
        to that certain Sixth Amendment to Eighth Amended and Restated Loan Agreement,
        dated as of June 30, 2004 (the "Sixth Amendment"), among the Banks, DGFS,
        DGPFC
        and other parties named therein, DGPFC was added as a Borrower under the
        Banks'
        respective Facility Commitments, DGPFC was added as a party to the Loan
        Agreement, the Seventh Amended and Restated Security Agreement as defined
        therein, and to other documents evidencing or securing the Loan (the Loan
        Agreement and all security documents collectively referred to as the "Security
        Documents"), the Banks extended the maturity date of the Loan to June 30,
        2007,
        and other modifications were made to the Loan Agreement, the Seventh Amended
        and
        Restated Security Agreement defined therein and certain other loan and security
        documents.

       

      Pursuant
        to that certain Seventh Amendment to Eighth Amended and Restated Loan Agreement
        dated as of December 3, 2004 (the "Seventh Amendment"), DGFS and DGPFC
        obtained a Swing Line Loan up to an amount of Thirty Million Dollars
        ($30,000,000.00) from FTBNA as part of the credit facilities governed by
        the
        Loan Agreement.

       

      Pursuant
        to that certain Eighth Amendment to Eighth Amended and Restated Loan Agreement
        dated as of June 30, 2006 (the “Eighth Amendment;” the Original Loan Agreement,
        as amended hereby, and by the First Amendment, the Second Amendment, the
        Third
        Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment,
        and
        the Seventh Amendment, referred to hereinafter as the "Loan Agreement"),
        the
        Banks agreed to extend the Loan Termination Date for their Facility Commitments,
        provide for future increases in certain of the Facility Commitments, admitted
        MidFirst Bank as a Bank hereunder, and made other modifications of the Loan
        Agreement, all as set forth in the Eighth Amendment.

       

      The
        Banks
        have been asked to enter into a further amendment of the Loan Agreement in
        connection with the proposed Merger Transaction and the Bear Stearns Facilities
        (as such terms are defined in Section II below). The Banks have agreed to
        do so,
        provided that this Amendment shall only become effective on the Effective
        Date
        (as defined below).

       

      NOW,
        THEREFORE, in consideration of the premises as set forth in the Recitals
        of
        Fact, the mutual covenants and agreements hereinafter set out, and other
        good
        and valuable consideration, the receipt and sufficiency of which are hereby
        acknowledged, it is agreed by the parties as follows:

       

       

      
        
          3

        

        
          
          

          
            

          

        

        
          
          

        

      

      Agreements

       

      SECTION
        I - GENERAL TERMS

       

          1.  All
        capitalized terms used and not defined herein shall have the meaning ascribed
        to
        them in the Loan Agreement.

       

          2.  To
        induce
        the Banks to enter into this Amendment, the Borrower does hereby absolutely
        and
        unconditionally, certify, represent and warrant to the Banks, and covenant
        and
        agree with the Banks, that:

       

          (a)  All
        representations and warranties made by the Borrower in the Loan Agreement,
        as
        amended hereby; in the Seventh Amended and Restated Security Agreement dated
        as
        of October 31, 2002, as thereafter amended from time to time, between the
        Borrower and Agent (the "Security Agreement"); and in all other loan documents
        (all of which are herein sometimes called the "Loan Documents"), are true,
        correct and complete in all material respects as of the date of this
        Amendment.

       

          (b)  As
        of the
        date hereof and with the execution of this Amendment, there are no existing
        events, circumstances or conditions which constitute, or would, with the
        giving
        of notice, lapse of time, or both, constitute Events of Default.

       

          (c)  There
        are
        no existing offsets, defenses or counterclaims to the obligations of the
        Borrowers as set forth in the New Notes, the Security Agreement, the Loan
        Agreement, or in any other Loan Document executed by the Borrower, in connection
        with the Loan.

       

          (d)  Neither
        Borrower has any existing claim for damages against the Banks arising out
        of or
        related to the Loan; and, if and to the extent (if any) that the Borrowers
        or
        any of them have or may have any such existing claim (whether known or unknown),
        the Borrower do each hereby forever release and discharge, in all respects,
        the
        Banks with respect to such claim.

       

          (e)  The
        Loan
        Documents, as amended by this Amendment, are valid, genuine, enforceable
        in
        accordance with their respective terms, and in full force and
        effect.

       

      SECTION
        II -- LOAN AGREEMENT AMENDMENTS

       

          1.  The
        following definitions shall be added to Section 1.1 of the Loan Agreement
        in
        alphabetical order:

       

          (a)  “Bear
        Stearns Facilities” means, collectively, (i) the term loan facility in an
        aggregate original principal amount equal to $75,000,000, (ii) the revolving
        credit facility in an amount of $20,000,000, and (iii) any additional
“incremental facility” borrowings up to $20,000,000, which facilities, in the
        case of clauses (i) and (ii) above, are contemplated to be entered into
        substantially simultaneously with the Merger Transaction among DGC and a
        group
        of lenders led by Bear Stearns Corporate Lending Inc. as Agent, in each case
        as
        amended, restated or otherwise modified or refinanced from time to time (such
        amendment, restatement, modification or refinancing to be made in compliance
        with the terms of the Intercreditor Agreement as hereinafter
        defined).

       

       

      
        
          4

        

        
          
          

          
            

          

        

        
          
          

        

      

          (b)  “Bear
        Stearns Term Sheet” means the draft Bear Stearns Term Sheet dated November 22,
        2006.

       

          (c)  “Holdings”
        means Elara Holdings, Inc., a Delaware corporation.

       

          (d)  “Intercreditor
        Agreement” means the Intercreditor Agreement, dated as of the Effective Date,
        between the Agent and the collateral agent in respect of the Bear Stearns
        Facilities, as amended, restated, supplemented or otherwise modified from
        time
        to time.

       

          (e)  “Merger
        Transaction” means the merger of Elara Merger Corporation, a wholly owned
        subsidiary of Elara Holdings, Inc., into Direct General Corporation, which
        is
        expected to occur substantially simultaneously with the closing of the Bear
        Stearns Facilities.

       

          (f)  “Pledge
        and Security Agreement” shall mean the Seventh Amended and Restated Pledge and
        Security Agreement dated as of October 31, 2002, as amended, from DGC as
        pledgor
        for the benefit of the Banks.

       

          (f) “Trust
        Preferred Facility” means the Trust Preferred Securities guaranteed by DGC in
        the aggregate original principal amount of $30,000,000.

       

          2.  The
        definition of "Effective Date," in Section 1.1 of the Loan Agreement, is
        hereby
        deleted in its entirety and the following is inserted in lieu
        thereof:

       

          "Effective
        Date" shall mean the Effective Date of that certain Ninth Amendment to Eighth
        Amended and Restated Loan Agreement dated as of November 22, 2006.

       

          3.  Section
        7.8 of the Loan Agreement shall be deleted in its entirety and the following
        inserted in lieu thereof:

       

          “7.8
        Consolidation
        or Merger; Acquisition of Assets.
        Enter
        into any transaction of merger or consolidation, acquire any other business
        or
        corporation, or acquire all or substantially all of the property or assets
        of
        any other Person, except the Merger Transaction, and except as permitted
        by
        Section 7.5 hereof or except as permitted by Section 8.20 hereof;
provided,
        however,
        that
        any such transaction or acquisition permitted by Section 7.5 or Section 8.20
        shall only be permitted if such transaction (i) does not cause or result in
        an Event of Default and (ii) does not cause or result in an event which with
        notice, lapse of time or both may become an Event of Default
        hereunder.”

       

          4.  Section
        8.20 of the Loan Agreement shall be deleted in its entirety and the following
        inserted in lieu thereof:

       

       

      
        
          5

        

        
          
          

          
            

          

        

        
          
          

        

      

          “8.20 Change
        in Ownership.
        There
        shall occur any change in the ownership of the capital stock of Borrower,
        Affiliated Insurers or DGC, except for (a) changes in ownership of stock
        in DGC
        which, in the aggregate, for all such changes, do not exceed forty-nine percent
        (49%) of DGC's outstanding stock, (b) changes in ownership of stock in DGC
        resulting from conversion of shares of preferred stock in DGC into common
        stock
        of DGC or the transfer or assignment of such preferred stock, in the manner
        contemplated by the Securities Purchase Agreement, (c) changes in ownership
        of stock in DGC resulting from a public offering of the stock of DGC,
        (d) changes in ownership of stock in DGC (and indirect changes in ownership
        of the capital stock of Borrower and the Affiliated Insurers) resulting from
        the
        Merger Transaction, or (e) changes in ownership of stock in any Agency
        Subsidiary or Affiliated Insurer, provided that the ultimate direct or indirect
        ownership remains with DGC.”

       

          5.  Section
        7.1 of the Loan Agreement shall be amended by deleting therefrom subsections
        (c)
        and (d), and inserting in lieu thereof the following:

       

          “(c) Indebtedness
        of DGC pursuant to the Bear Stearns Facilities and any guaranty in respect
        thereof;

       

          (d) Indebtedness
        of DGC and a trust formed by DGC pursuant to the Trust Preferred
        Facility.”

       

          6.  Section
        7.3 of the Loan Agreement shall be deleted in its entirety and the following
        inserted in lieu thereof:

          

          “7.3 Guarantees.
        Guarantee or otherwise in any way become or be responsible for, or permit
        any
        Affiliated Insurer to guarantee or otherwise in any way become or be responsible
        for, the indebtedness or obligations of any other Person, by any means
        whatsoever, whether by agreement to purchase the indebtedness of any other
        Person or agreement for the furnishing of funds to any other Person, for
        the
        purpose of paying or discharging the indebtedness of any other Person, or
        otherwise, without the prior written consent of the Required Banks, except
        for:

       

          (a)  the
        endorsement of negotiable instruments by the Borrower, DGC, the Agency
        Subsidiaries or Affiliated Insurers in the ordinary course of business for
        collection;

       

          (b)  the
        obligation of DGC and the Agency Subsidiaries pursuant to the Fifteenth Amended
        and Restated Guaranty Agreement dated as of June 30, 2006;

       

          (c)  the
        guaranty by DGC of indebtedness of the Agency Subsidiaries permitted under
        Section 7.1 hereof; 

       

          (d)  the
        guaranty by DGC of any obligation of any Agency Subsidiaries or Affiliated
        Insurers; 

       

       

      
        
          6

        

        
          
          

          
            

          

        

        
          
          

        

      

          (e)  the
        guaranty by DGC given in connection with the Trust Preferred Facility;
        and

       

          (f)  any
        guaranty given in connection with the Bear Stearns Facilities;

       

          provided,
        in
        each case, such obligation does not cause DGC to be in default under any
        other
        provision of this Loan Agreement.”

       

          7.  Section
        7.5 of the Loan Agreement shall be amended by deleting therefrom subsection
        (e)
        and inserting in lieu thereof the following:

       

          “(e)
        as may
        occur in connection with the Bear Stearns Facilities; and

       

          (f)
        as may
        occur in connection with the Trust Preferred Facility.”

       

          8.  Section
        6.11 of the Loan Agreement (as set forth in the Sixth Amendment to Eighth
        Amended and Restated Loan Agreement) shall be deleted in its
        entirety.

       

          9.  Section
        6.13 of the Loan Agreement (as set forth in the Sixth Amendment to Eighth
        Amended and Restated Loan Agreement) shall be deleted in its
        entirety.

       

          10.  Section
        6.16 of the Loan Agreement shall be deleted in its entirety and the following
        inserted in lieu thereof:

       

          “6.16 Debt
        Service Coverage Ratio.
        Maintain
        as to DGC as of the end of each fiscal quarter a ratio (the "Debt Service
        Coverage Ratio") of (a) EBITDA (hereinafter defined) of DGC on a
        consolidated basis for such quarter and the three (3) preceding fiscal quarters
        to (b) Debt Service (hereinafter defined) during the same period of four
        (4) fiscal quarters, of not less than 1.50 to 1.0. 

       

          For
        purposes
        of determining compliance with the Debt Service Coverage Ratio, any equity
        investment made to DGC on or prior to the day that is 15 days after the day
        on
        which financial statements are required to be delivered for a fiscal quarter
        will, at the request of the Borrower, be included in the calculation of EBITDA
        for the purposes of determining compliance with financial covenants at the
        end
        of such fiscal quarter and applicable subsequent periods (any such equity
        contribution so included in the calculation of EBITDA, a “Specified
        Equity Contribution”);
        provided
        that
        (a) in each four fiscal quarter period there shall be a period of at least
        two consecutive fiscal quarters in which no Specified Equity Contribution
        is
        made, and (b) the amount of any Specified Equity Contribution shall be no
        greater than 100% of the amount required to cause the Borrower to be in
        compliance with the Debt Service Coverage Ratio. 

       

          For
        purposes
        hereof, EBITDA shall mean net income plus
        interest
plus
        taxes
plus
        depreciation plus
        amortization and shall include (in each case to the extent deducted in
        determining net income) (i) extraordinary losses and unusual or
        non-recurring losses, items and charges, (ii) non-cash charges (including
        non-cash charges related to stock compensation expense), (iii) fees and expenses
        incurred in connection with the Merger Transaction, the Bear Stearns
        Facilities and related transactions, (iv) any expenses, premiums or charges
        incurred in connection with any issuance of debt, equity securities or any
        refinancing transaction or any amendment or other modification of any debt
        instrument, (v) any fees and expenses related to permitted acquisitions
        and (vi) the amount of management, monitoring, consulting and advisory fees
        and related expenses paid to Fremont Partners III, L.L.C. or any of its
        affiliates or TPG Gen ParV, L.P. or any of its affiliates.

       

       

      
        
          8

        

        
          
          

          
            

          

        

        
          
          

        

      

           For
        purposes hereof, "Debt Service" shall mean the sum of (x) all scheduled
        principal payments plus paid interest plus accrued interest as to the Loans,
        (y)
        preferred stock dividends and (z) the principal amount of scheduled amortization
        payments on the Bear Stearns Facilities.

       

          11.  Section
        7.9 of the Loan Agreement (as previously amended by the Fourth Amendment
        to
        Eighth Amended and Restated Loan Agreement) shall be amended by adding the
        following language to the end thereof:

       

          “Also,
        notwithstanding the foregoing, Borrowers shall be permitted to pay dividends
        or
        other distributions to any direct or indirect parent company to permit the
        payment of principal, interest, fees and other expenses in connection with
        the
        Bear Stearns Facilities.”

       

          12.  Section
        7.2 of the Loan Agreement shall be deleted in its entirety and the following
        inserted in lieu thereof:

       

      “7.2 Mortgages,
        Liens, Etc.
        Create,
        assume or suffer to exist any mortgage, pledge, lien, charge or other
        encumbrance of any nature whatsoever on any of the assets of Borrower, DGC,
        any
        Agency Subsidiary or any Affiliated Insurer, now or hereafter owned, except
        for:

       

          (a)  Liens
        securing payment of the Notes, which shall consist of (i) a first priority
        lien
        on the accounts receivable and related collateral described in the Seventh
        Amended and Restated Security Agreement dated as of October 31, 2002, as
        amended
        (the “Accounts Receivable Collateral”) and (ii) a second priority lien on the
        stock pledged by DGC pursuant to the Seventh Amended and Restated Pledge
        and
        Security Agreement dated as of October 31, 2002, as amended (the “Pledged
        Stock”); 

       

          (b)  Liens
        securing payment of the Bear Stearns Facilities, which shall include (i)
        a
        second priority lien on the Accounts Receivable Collateral, (ii) a first
        lien on
        the Pledged Stock, and (iii) a first priority lien on substantially all other
        assets of Borrower, DGC, any Agency Subsidiary or any Affiliated Insurer;
        and

       

          (c)  Permitted
        Encumbrances.”

       

          13.  Section
        8.2 shall be amended by deleting the period at the end of such section and
        adding thereto the following:

       

       

      
        
          8

        

        
          
          

          
            

          

        

        
          
          

        

      

          “;
        or DGC
        shall default, beyond any cure period applicable thereto, in the payment
        or
        performance any of its obligations under the Bear Stearns
        Facilities.”

       

          III.
        MISCELLANEOUS

       

          1.  All
        terms
        and provisions of the Loan Agreement, as heretofore amended, which are
        inconsistent with the provisions of this Amendment are hereby modified and
        amended to conform hereto; and, as so modified and amended, the Loan Agreement
        is hereby ratified, approved and confirmed. Except as otherwise may be expressly
        provided herein, this Amendment shall become effective as of the date set
        forth
        in the initial paragraph hereof.

       

          2.  All
        references in all Loan Documents (including, but not limited to, the New
        Notes,
        the Security Agreement, and the Loan Agreement) to the "Loan Agreement" shall,
        except as the context may otherwise require, be deemed to constitute references
        to the Loan Agreement as amended hereby. All references in the Loan Documents
        (including, but not limited to, the Security Agreement and the Loan Agreement)
        to the "Notes" shall, except as the context may otherwise require, be deemed
        to
        constitute references to the Notes as such term is defined herein.

       

          3.  This
        Amendment shall become effective on the date (the “Effective Date”) on which
        each of the following conditions have been satisfied:

       

          (a)  The
        Bear
        Stearns Facilities shall
        have been closed with documentation in material compliance with the terms
        set
        forth in the Bear Stearns Term Sheet. 

       

          (b)  The
        Merger Transaction shall have been consummated.

       

          (c)  An
        Intercreditor Agreement acceptable to Agent and each of the Banks in their
        sole
        discretion between Agent and the collateral agent in respect of the Bear
        Stearns
        Facilities (the “Bear Stearns Agent”) shall have been entered into, which shall
        provide for, among other things, (i) the relative priority of the Banks and
        the
        secured parties in respect of the Bear Stearns Facilities as to the collateral
        securing the respective loans (namely, the Banks shall continue to have a
        first
        priority security interest in the collateral described in the Security
        Agreement, and shall have a second priority security interest in the collateral
        described in the Pledge and Security Agreement, while the secured parties
        in
        respect of the Bear Stearns Facilities shall have a second priority security
        interest in the collateral described in the Security Agreement and a first
        priority security interest in all other collateral of DGC and the Borrower,
        including that described in the Pledge and Security Agreement), and (ii)
        the
        existence of a mutual permanent standstill arrangement whereby the Agent
        and the
        Bear Stearns Agent are prohibited from taking action as holders of their
        respective second lien security interests in respect of the assets covered
        by
        such second lien security interests without the consent of the respective
        holder
        of the first lien security interest until the obligations secured by such
        first
        lien security interest have been satisfied in full.

       

       

      
        
          9

        

        
          
          

          
            

          

        

        
          
          

        

      

          (d)  The
        Banks
        shall have received a transaction fee of .25% of the total principal amount
        of
        the Loans outstanding as of the Effective Date.

       

          4.  Each Bank
        hereby irrevocably designates and appoints the Agent as the agent of
        such Bank under the Intercreditor Agreement, and each such Bank
        irrevocably authorizes the Agent, in such capacity, to execute the
        Intercreditor Agreement and, upon receipt of the written consent of each
        of the
        Banks, to take such action on its behalf under the provisions of the
        Intercreditor Agreement, and to exercise such powers and perform such duties
        as
        are expressly delegated to the Agent by the terms of the Intercreditor
        Agreement, together with such other powers as are reasonably incidental
        thereto.

       

          5.  MidFirst
        Bank joins herein solely for the purpose of terminating its Facility Commitment
        as of the Dated Date and withdrawing, on such date, as a Bank under the Loan
        Agreement and related documents. 

       

          6.  Regions
        Bank joins herein solely for the purpose of terminating its Facility Commitment
        as of the Dated Date and withdrawing, on such date, as a Bank under the Loan
        Agreement and related documents.  

       

          7.  Exhibit
        “B” to the Loan Agreement, as set forth in the Eighth Amendment, is hereby
        deleted in its entirety, and the schedule attached hereto marked Revised
        Exhibit
“B” shall be inserted in lieu thereof. 

       

      

       

      [SEPARATE
        SIGNATURE PAGES FOLLOW]

       

       

       

       

       

       

       

      
 

      
        
          
            10

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
          

        

      

      SIGNATURE
        PAGE

       

      TO

       

      NINTH
        AMENDMENT TO EIGHTH AMENDED AND RESTATED LOAN AGREEMENT

       

      
        
          

        

       

      IN
        WITNESS WHEREOF, the Borrowers, the Guarantors, the Banks and the Agent have
        caused this Amendment to be executed by their duly authorized officers, all
        as
        of the day and year first above written.

       

      BORROWERS:

       

      

       

      DIRECT
        GENERAL FINANCIAL SERVICES,

       INC.,
        a
        Tennessee corporation

       

       

      By:
        /s/ Brian G. Moore

      Brian
        G.
        Moore, President

       

       

      DIRECT
        GENERAL PREMIUM FINANCE 

      COMPANY,
        a
        Tennessee corporation

       

       

      By:
        /s/ Brian G. Moore

      Brian
        G.
        Moore, President

       

       

       

      GUARANTORS:

       

      DIRECT
        GENERAL CORPORATION,
        

      a
        Tennessee corporation

       

      By:
        /s/ William J. Harter

      William
        J. Harter, 

      Senior
        Vice-President 

       

       

      DIRECT
        GENERAL INSURANCE AGENCY, 

      INC.,
        a
        Tennessee corporation

       

      By:
        /s/ William J. Harter

         William
        J.
        Harter,

      Senior
        Vice-President 

       

      [SIGNATURE
        PAGE CONTINUED]

       

      
        
           

          Exhibit
            "B" - 2

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DIRECT
        GENERAL INSURANCE AGENCY, 

      INC.,
        an
        Arkansas corporation

       

      By:
        _/s/ William J. Harter

      William
        J. Harter,

      Senior
        Vice-President 

       

       

      DIRECT
        GENERAL INSURANCE AGENCY, 

      INC.,
        a
        Mississippi corporation

       

      By:
        /s/ William J. Harter

      William
        J.
        Harter,

      Senior
        Vice-President 

       

       

      DIRECT
        GENERAL INSURANCE AGENCY 

      OF
        LOUISIANA, INC.,
        a
        Louisiana corporation

       

      By:
        /s/ William J. Harter

      William
        J. Harter,

      Senior
        Vice-President 

       

       

      DIRECT
        GENERAL AGENCY OF 

      KENTUCKY,
        INC.,
        a
        Kentucky corporation

       

      By:
        /s/ Ronald F. Wilson

      Ronald
        F.
        Wilson, Secretary

       

       

      DIRECT
        ADJUSTING COMPANY, INC.,

      a
        Tennessee corporation

       

      By:/s/
        Ronald F. Wilson

      Ronald
        F. Wilson, Secretary

       

      DIRECT
        ADMINISTRATION, INC.,

      a
        Tennessee corporation

       

      By:/s/
        Ronald F. Wilson

      Ronald
        F.
        Wilson, Secretary

       

       

      [SIGNATURE
        PAGE CONTINUED]

       

      
        
           

          Exhibit
            "B" - 2

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      DIRECT
        GENERAL INSURANCE AGENCY, 

      INC.,
        a
        Texas
        corporation

       

      By:
        /s/ William J. Harter                 

      William
        J. Harter,

      Senior
        Vice-President 

       

       

      DIRECT
        GENERAL CONSUMER 

      PRODUCTS,
        INC.,
        a
        Tennessee corporation

                                       

                                                         
        By: /s/ William J. Harter                 

                                   
         William J. Harter,

                                        
        Senior Vice-President 

       

      

      BANKS:

                                                                                                        

                                       
 FIRST
        TENNESSEE BANK NATIONAL

                                                        
        ASSOCIATION

       

        
        By:  /s/ Sam Jenkins      
                      

       

        
        Title:  Senior Vice President

       

        
        CAPITAL ONE, N.A.

       

        
        By:  /s/ Janet Rack                       
        

       

        
        Title: Senior Vice President

       

        
        U.S. BANK NATIONAL ASSOCIATION

       

        
        By:  /s/ Derek Roudebush                   

       

        
        Title: Vice President

       

        
        CAROLINA FIRST BANK

       

        
        By:  /s/ Charles Chamberlain                  

       

        
        Title: Executive Vice President

       

      
        JPMORGAN
          CHASE BANK, N.A. 

         

        By: 
          /s/ Robert Bond                   

         

        Title:
          Senior Vice President

      

      
         

         

      

      [SIGNATURE
        PAGE CONTINUED]

       

      
        
           

          Exhibit
            "B" - 2

          

          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      
        
        

        REGIONS
          BANK

         

        By: 
          /s/ Nathan Raines                  

         

        Title:
          Senior Vice President

         

        NATIONAL
          CITY BANK OF KENTUCKY

        

        By: 
          /s/ Kevin Anderson                   

         

        Title:
          Senior Vice President

         

        FIFTH
          THIRD BANK, N.A. (Tennessee)

        

        By: 
          /s/ Justin Fontenont                 

         

        Title:
          Officer

         

        MIDFIRST
          BANK

         

        By: 
          /s/ Shawn Brewer                   

         

        Title:
          Vice President

        

        AGENT:

         

        FIRST
          TENNESSEE BANK NATIONAL 

        ASSOCIATION

         

        By: 
          /s/ Sam Jenkins                       

         

        Title:
          Executive Vice President

         

      

      
      

      

       

      
        
          
             

            Exhibit
              "B" - 2

            

          

          
          

        

        
          
          

          
            

          

        

        
          
          

          
            

             

          

        

      

      REVISED
        EXHIBIT "B"

       

      FACILITY
        COMMITMENTS OF THE BANKS

       

      AS
        OF
        THE DATED DATE

       

      Revolving
        Facility Commitments

       

      
        	
                First
                  Tennessee Bank National Association

              	 	
                $

              	
                 
                  40,000,000.00*

              	 
	
                Capital One

              	 	 	
                20,000,000.00

              	 
	
                U.
                  S. Bank National Association

              	 	 	
                30,000,000.00

              	 
	
                Regions
                  Bank

              	 	 	
                -0-

              	 
	
                Carolina
                  First Bank

              	 	 	
                15,000,000.00

              	 
	
                National
                  City Bank

              	 	 	
                15,000,000.00

              	 
	
                Fifth
                  Third Bank

              	 	 	
                10,000,000.00

              	 
	
                JPMorgan
                  Chase Bank, N.A.

              	 	 	
                35,000,000.00

              	 
	
                MidWest
                  Bank

              	 	 	
                -0-

              	 
	
                                                                    TOTAL:

              	 	
                $

              	
                165,000,000.00

              	 
	 	 	 	 	 

      

      

      * Includes
        $30,000,000.00 Swing Line Commitment of First Tennessee Bank National
        Association.

       

      

       

      AS
        OF
        JANUARY 1, 2007

       

      Revolving
        Facility Commitments

      

       

      
        	
                First
                  Tennessee Bank National Association

              	 	
                $

              	
                40,000,000.00*

              	 
	
                Capital One

              	 	 	
                25,000,000.00

              	 
	
                U.
                  S. Bank National Association

              	 	 	
                30,000,000.00

              	 
	
                Carolina
                  First Bank

              	 	 	
                20,000,000.00

              	 
	
                National
                  City Bank

              	 	 	
                20,000,000.00

              	 
	
                Fifth
                  Third Bank

              	 	 	
                15,000,000.00

              	 
	
                JPMorgan
                  Chase Bank, N.A.

              	 	 	
                35,000,000.00

              	 
	
                                                                                                     
                  TOTAL:

              	 	
                $

              	
                185,000,000.00

              	 
	 	 	 	 	 

      

       

      
         

        	                                  ·  	
                Includes
                  $30,000,000.00 Swing Line 

                Commitment
                  of First Tennessee Bank National 

                Association.

              

         

        

         

      

      
        
          Exhibit
            "B" - 2

        

        
          
          

          
            

          

        

        
          
          

        

      

      AS
        OF
        THE EFFECTIVE DATE

       

      Revolving
        Facility Commitments

      

       

      
        	
                First
                  Tennessee Bank National Association

              	 	
                $

              	
                40,000,000.00*

              	 
	
                Capital One

              	 	 	
                25,000,000.00

              	 
	
                U.
                  S. Bank National Association

              	 	 	
                30,000,000.00

              	 
	
                Carolina
                  First Bank

              	 	 	
                20,000,000.00

              	 
	
                National
                  City Bank

              	 	 	
                20,000,000.00

              	 
	
                Fifth
                  Third Bank

              	 	 	
                15,000,000.00

              	 
	
                JPMorgan
                  Chase Bank, N.A.

              	 	 	
                35,000,000.00

              	 
	
                                                                                                  
                  TOTAL:

              	 	
                $

              	
                185,000,000.00

              	 
	 	 	 	 	 

      

       

      
        	                       ·  	
                Includes
                  $30,000,000.00 Swing Line 

                Commitment
                  of First Tennessee Bank National 

                Association.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]