Document:

Exhibit 4.3

 

Genworth Life and Annuity Insurance Company

 

Funding Agreement

 

POLICYHOLDER:  Genworth Global Funding
Trust 2008-45, its
successors and permitted assignees

 

POLICY NUMBER: GS-R6061

 

EFFECTIVE DATE: August 21,
2008

 

ISSUE STATE:  Virginia

 

Genworth Life and Annuity Insurance
Company (“GLAIC”) (which term includes its successors and permitted assignees)
and the Policyholder hereby agree to the terms of this funding agreement (this “Policy”).  This Policy, including the attached
Accumulation Fund Schedule, and any amendments thereto, constitutes the entire
contract between GLAIC and the Policyholder.  
This Policy is delivered in the Issue State and governed by the laws of
that state.

 

In witness whereof, GLAIC
and the Policyholder have agreed to this Policy as of the Effective Date and
caused the same to be in full force and effect.

 

 

	
  /s/ Thomas E. Duffy

  	
   

  	
  /s/Pamela S. Schutz

  
	
  Secretary

  	
   

  	
  President

  

 

 

Genworth Life and Annuity
Insurance Company

6610 West Broad Street

Richmond, VA  23230

1-800-635-8056

 

 

Table of Contents

 

Section 1 –
Accumulation Fund – Establishment and Operation

 

Section 2 – Payments
From the Accumulation Fund

 

Section 3 –
Termination of Agreement

 

Section 4 – General
Provisions

 

Section 5 –
Definitions

 

 

SECTION 1 – ACCUMULATION FUND – ESTABLISHMENT AND
OPERATION

 

1.1                               POLICY PAYMENTS.  The Policyholder agrees to pay to GLAIC in
the currency specified in the Accumulation Fund Schedule (the “Specified
Currency”), and by wire transfer, the Net Deposit Amount on the Deposit
Date.  Regardless of the Effective Date
of the Policy or the Deposit Date specified in the Accumulation Fund Schedule,
this Policy shall become effective only upon the receipt by GLAIC, or its
designee, of the Net Deposit Amount.

 

1.2                               ESTABLISHMENT OF THE ACCUMULATION FUND.  Upon the receipt by GLAIC of the Net Deposit
Amount, GLAIC will establish an Accumulation Fund.  The Accumulation Fund is a general account
record that reflects the Fund Balance under this Policy.  GLAIC is neither a trustee nor a fiduciary with
respect to the Accumulation Fund.  The
Net Deposit Amount is allocated to GLAIC’s general account for investment but
all funds received under this Policy will become the exclusive property of
GLAIC without any duty or requirement for segregation or separate
investment.  The Fund Balance is not
affected by the investment results of the assets held in the general account.

 

1.3                               INTEREST ON THE ACCUMULATION FUND.  The Guaranteed Rate for the Accumulation Fund
is effective until the Fund Balance is paid in full to the Policyholder.  Interest is credited based upon the
methodology specified in the Accumulation Fund Schedule.

 

1.4                               VALUE OF THE ACCUMULATION FUND.  The Fund Balance on any given day equals the Deposit
Amount plus interest, if any, credited thereon at the Guaranteed Rate, less any
payments made under Section 2 of the Policy.

 

SECTION 2 – PAYMENTS FROM THE ACCUMULATION FUND

 

2.1                               PERIODIC PAYMENTS.  GLAIC will pay the
Policyholder the amounts specified in the Accumulation Fund Schedule as
Periodic Payouts, including the Maturity Payout, on the dates specified (subject
to Section 4.7).  Such payment
amounts are adjusted to reflect any other payment payable under this Section of
the Policy.  The interest factor used in
making such adjustments is the Guaranteed Rate.

 

2.2                               OPTIONAL REPAYMENT.  If so indicated in
the Accumulation Fund Schedule, GLAIC shall pay to the Policyholder the amount
the Policyholder needs to redeem or repay any notes or other instruments issued
by the Policyholder and backed by this Policy, pursuant to any limited right of
redemption or repayment contained in such note or instrument.  GLAIC may require reasonable evidence that
the redemption or repayment request satisfies all the terms and conditions
described in the prospectus, prospectus supplement and/or pricing supplement
applicable to such note or other instrument. 
Additional restrictions, if any, on the Policyholder’s reimbursement
rights under this Section may be included in the Accumulation Fund
Schedule.

 

1

 

2.3                               OPTIONAL REDEMPTION.  If so indicated in
the Accumulation Fund Schedule, GLAIC may elect
to pay the Policyholder all or any part of the Fund Balance on the Call Dates
specified in the Accumulation Fund Schedule. 
Unless otherwise provided in the Accumulation Fund Schedule, GLAIC will
give the Policyholder at least thirty-five (35) calendar days and no more than
seventy-five (75) calendar days notice of its intent to make such pre-payment.  No adjustment will be made to the amount of
such payment, unless such adjustment is specifically provided for in the
Accumulation Fund Schedule.

 

2.4                               MATURITY PAYMENTS.  GLAIC shall pay the
Policyholder the Fund Balance on the Maturity Date.

 

2.5                               FORM OF PAYMENT.  All payments GLAIC
makes to the Policyholder will be made in the Specified Currency, by wire
transfer, unless otherwise agreed in writing by the parties hereto. Unless
otherwise stated in the Accumulation Fund Schedule, all payments GLAIC makes
will be net of any applicable withholding or deduction for or on account of any
present or future taxes, duties, levies, assessments or other governmental
charges of whatever nature imposed or levied by or on behalf of any
governmental authority having the power to tax. 
Unless otherwise specified in the Accumulation Fund Schedule, such net
payments fully satisfy GLAIC’s obligation to the Policyholder with respect to
the full amount due.

 

SECTION 3 –
TERMINATION OF AGREEMENT

 

3.1                               AUTOMATIC TERMINATION/ACCELERATION.  This Policy
terminates with respect to the Accumulation Fund when the Fund Balance is zero
and GLAIC’s obligations hereunder shall automatically accelerate upon the
occurrence of an Event of Default described in Section 3.3(a).

 

3.2                               EARLY TERMINATION/ACCELERATION.  The Policyholder may
accelerate this Policy by giving GLAIC not less than two (2) Business Days’
written notice upon the occurrence of an Event of Default specified in Section 3.3
b., c. or d. below.  GLAIC may accelerate
this Policy, in whole but not in part, by giving the Policyholder not less than
forty-five (45) days’, but no more than seventy-five (75) days’, prior written
notice of the occurrence of a Tax Event as described in Section 3.4,
provided, however that this Policy shall not be terminated until the Fund Balance
has been paid to the Policyholder in full.

 

3.3                       EVENTS OF DEFAULT.  An Event of Default occurs if:

 

a.               GLAIC
is dissolved or a resolution is passed or proceeding is instituted for the
winding-up, liquidation or similar arrangement of GLAIC (other than pursuant to
a consolidation, amalgamation or merger);

 

b.              GLAIC
breaches any material obligation, representation or certification contained
herein, provided that there is no bona fide dispute as to whether such breach
has occurred and that such breach continues for fifteen (15) Business Days
following the Policyholder’s written notice to GLAIC of such breach;

 

2

 

c.               GLAIC fails to make
any required Periodic Payout (other than the Maturity Payout) described in the
Accumulation Fund Schedule or any other payment described in Sections 2.2 or
2.3 of this Policy or any other funding agreement GLAIC issues in connection
with the Program, and such failure continues for seven (7) Business Days
after the due date thereof;

 

d.              GLAIC fails to make
the Maturity Payout described in the Accumulation Fund Schedule or in any other
funding agreement GLAIC issues in connection with the Program and such failure
is continuing as of the end of the Business Day following the due date thereof.

 

3.4                               TAX EVENT.  A “Tax Event” occurs
if GLAIC has received an opinion of independent legal counsel stating in effect
that there is more than an insubstantial risk that as a result of  any amendment to, or change (including any
announced prospective change) in, the laws (or regulations thereunder) of the
United States or any political subdivision or taxing authority thereof or
therein or any amendment to, or change in, an interpretation or application of
any such laws or regulations by any governmental authority in the United
States, which amendment or change is enacted, promulgated, issued or announced
on or after the Deposit Date, the Policyholder is or will be within ninety (90)
days of the date thereof, (1) subject to an entity level U.S. federal
income tax with respect to interest accrued or received on this Policy or (2) subject
to more than a de minimis amount of taxes, duties or other governmental
charges.

 

Notwithstanding anything
to the contrary in this Section 3, if GLAIC shall comply in all respects with
the requirements of this Section 3, but an event of default has occurred
with respect to the notes backed by the Policy and as a result payments with
respect to the notes have been accelerated, otherwise than by reason of any
default under this Policy by GLAIC, no Event of Default (as defined above)
under this Policy shall be deemed to have occurred, no payments with respect to
this Policy shall be accelerated and GLAIC will remain obligated to make
payments under this Policy as if no Event of Default had occurred with respect
to the notes.

 

SECTION 4
– GENERAL PROVISIONS

 

4.1                               PAYMENT UPON TERMINATION.  Unless otherwise
specified in the Accumulation Fund Schedule, GLAIC shall pay the Policyholder
the Fund Balance on the Maturity Date.  Such
payment fully discharges GLAIC’s obligation to the Policyholder under this
Policy.

 

4.2                               DISCLAIMER OF RESPONSIBILITY.  GLAIC’s only liability
is as set out in this Policy, including the Accumulation Fund Schedule attached
hereto.  In performing its obligations
under this Policy, GLAIC is not acting as a fiduciary or agent for the
Policyholder or anyone else regardless of whether or not they are directly or
indirectly associated with the Policyholder.

 

4.3                               NOTICES.  All agreements, notices, directions, consents,
elections or other communication (“Notices”) required by this Policy must be in
writing, directed to the applicable address designated on the face page.  Any such Notices may be given by facsimile
transmission or other acceptable electronic means.  All Notices are effective when received.

 

3

 

4.4                               AMENDMENTS.  This Policy may be
amended only by mutual written agreement between the parties hereto.

 

4.5                               CONFLICT.  To the extent that
there is a conflict in terms between the Policy and the Accumulation Fund
Schedule, the Accumulation Fund Schedule will control the conduct of the parties.

 

4.6                               TRANSFERABILITY/ASSIGNMENT.  This Policy and the
Accumulation Fund established pursuant to it may solely be sold, assigned,
transferred or pledged in accordance with, and for the purposes contemplated
by, the documents and agreements governing the establishment and operation of
the Program.  GLAIC will maintain a
record of ownership of this Policy on its books and records.

 

4.7                               PAYMENTS BY GLAIC.  When this Policy
provides that GLAIC will make a payment to the Policyholder, such payment shall
be made to the Policyholder or to the agent the Policyholder designates.  Unless otherwise specified in the
Accumulation Fund Schedule, if a payment date is not a Business Day, GLAIC will
pay such amount on the next Business Day.

 

4.8                               WAIVER BY GLAIC.  At the Policyholder’s
request, GLAIC may waive any terms, conditions or adjustments provided for in
this Policy.  Any such waiver is subject
to any limitations GLAIC specifies in making the waiver and does not require
GLAIC to grant similar future waivers to the Policyholder or anyone else.  A failure or delay in exercising a right
under this Policy does not waive GLAIC’s right or ability to assert such right
in the future.

 

4.9                               MUTUAL REPRESENTATIONS.  The parties mutually
represent and warrant, each to the other, that:

 

a.               This Policy is its
legal, valid and binding obligation, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium or
other laws affecting creditor’s rights, and subject, as to enforceability, to
general principals of equity, regardless of whether enforcement is sought in
proceeding in equity or law;

b.              It has the power to
enter into this Policy and to consummate the transactions contemplated hereby;

c.               All information
provided in connection with this Policy is, to the best of its knowledge and
belief, true, correct and complete;

d.              The execution and
the delivery of this Policy and the performance of obligations hereunder do not
and will not constitute or result in a default, breach or violation, of the
terms or provisions of its certificate, articles or charter of incorporation,
declaration of trust, by-laws or any agreement, instrument, mortgage, judgment,
injunction or order applicable to it or any of its property.

 

4

 

4.10                        TAX PROVISIONS.  The Policyholder and
each transferee and assignee of this Policy, to the extent required by law,
agree to provide GLAIC with any properly completed tax forms that are needed
for GLAIC to satisfy its tax reporting obligations with respect to amounts held
under this Policy.  This Policy is
intended to be ignored for U.S. federal, state and local income and franchise tax
purposes. To the extent it cannot be ignored, GLAIC and the Policyholder and
each transferee and assignee of this Policy agree to treat this Policy as GLAIC’s
debt obligation for U.S. federal, state and local income and franchise tax
purposes.

 

SECTION 5
– DEFINITIONS

 

5.1                               POLICY DEFINITIONS.  The following terms have the meanings
indicated:

 

“Accumulation
Fund” is the accounting record GLAIC will establish under
this Policy as described in Section 1.2.

 

“Accumulation
Fund Schedule” is attached to this Policy and establishes the
terms of the Accumulation Fund.

 

“Business
Day” is any day, other than Saturday or Sunday, that is
neither a legal holiday nor a day on which commercial banks are authorized or
required by law, regulation or executive order to close, or are otherwise
closed, in each Business Day City specified in the Accumulation Fund Schedule.

 

“Call
Date” is the day or days prior to the Stated Maturity Date,
if any, specified in the Accumulation Fund Schedule attached to this Policy, on
which GLAIC may elect to pay the Policyholder all or any part of the Fund
Balance.  If no Call Date is indicated in
an Accumulation Fund Schedule, GLAIC will pay to the Policyholder the Fund
Balance prior to the Stated Maturity Date only to the extent provided in Section 3.2.

 

“Deposit
Amount” is the amount GLAIC credits to the Accumulation Fund
on the Deposit Date as set forth in the Accumulation Fund Schedule.

 

“Deposit
Date” is the date, specified in the Accumulation Fund Schedule,
on which GLAIC receives the Net Deposit Amount.

 

“Event
of Default” has the meaning described in Section 3.3.

 

“Fund
Balance” is the value of the Accumulation Fund, determined
pursuant to Section 1.4.

 

“Guaranteed
Rate” is the interest rate, if any, applied to the
Accumulation Fund, as stated in the Accumulation Fund Schedule.

 

“Indenture”
is that certain indenture agreement, made between the Policyholder and the
Indenture Trustee related to the notes to be supported by this Policy as such
agreement may be amended, supplemented or replaced from time to time.

 

5

 

“Indenture
Trustee” is the party specified as trustee under the
Indenture, or its successor.

 

“Maturity
Date” is the earlier of (i) the Stated Maturity Date and
(ii) each date on which the Fund Balance is payable in full to the
Policyholder pursuant to an Event of Default, Optional Repayment, Optional
Redemption or otherwise. Unless otherwise indicated in the Accumulation Fund
Schedule, if any of the foregoing dates is not a Business Day, the Maturity
Date is the next following Business Day. 
Interest accrues during such delay only if specified in the Accumulation
Fund Schedule.

 

“Net
Deposit Amount” is the amount GLAIC receives from the
Policyholder on the Deposit Date as set forth in the Accumulation Fund
Schedule.

 

“Program”
is the Genworth Global Funding program, as described in the prospectus relating
thereto, including the applicable prospectus supplement or pricing supplement
or in any amendment thereto.

 

“Stated
Maturity Date” is the date, as set forth on the Accumulation
Fund Schedule, when the Fund Balance is originally due and payable to the
Policyholder.

 

“Tax
Event” has the meaning described in Section 3.4.

 

5.2                               OTHER DEFINITIONS.  Other capitalized terms appearing in this
Policy have the meanings indicated on the Policy’s face page or in the
Accumulation Fund Schedule.

 

6

 

GLAIC

Accumulation
Fund Schedule – Fixed Rate

 

Policy
Number: GS-R6061

 

	
  Deposit
  Date:

  	
   

  	
  August 21,
  2008 or the date the deposit is actually received by GLAIC

  
	
   

  	
   

  	
   

  
	
  Specified
  Currency:

  	
   

  	
  United States Dollars

  
	
   

  	
   

  	
   

  
	
  Deposit
  Amount:

  	
   

  	
  $1,139,000.00

  
	
   

  	
   

  	
   

  
	
  Net
  Deposit Amount:

  	
   

  	
  $1,124,193.00

  
	
   

  	
   

  	
   

  
	
  Stated
  Maturity Date:

  	
   

  	
  August 15,
  2016

  
	
   

  	
   

  	
   

  
	
  Guaranteed
  Rate:

  	
   

  	
  5.85%

  
	
   

  	
   

  	
   

  
	
  Crediting
  Period:

  	
   

  	
  The
  first Crediting Period shall be a short period commencing on the Deposit Date
  to but excluding February 15, 2009. Each subsequent Crediting Period
  shall be the semi-annual period occurring between the 15th of each
  February and August thereafter. The final Crediting Period will be
  the period from and including February 15, 2016, to but excluding
  August 15, 2016.

  
	
   

  	
   

  	
   

  
	
  Interest
  Crediting:

  	
   

  	
  Interest
  is credited based upon a 30/360 basis,
  applied to the Fund Balance each day.

  
	
   

  	
   

  	
   

  
	
  Periodic
  Payouts:

  	
   

  	
  On
  the 15th of each February and
  August, GLAIC will pay the Policyholder all accrued and unpaid interest (if
  such date is not a Business Day, the Periodic Payout will be made on the next
  following Business Day, and in such cases the amount of interest shall not be
  adjusted for non-Business Days) (each, an “Interest Payment Date”); provided, however, that
  the final Periodic Payout shall be on the Maturity Date, on which date all
  accrued and unpaid interest will be paid.

  
	
   

  	
   

  	
   

  
	
  Optional
  Repayment:

  	
   

  	
  Optional
  Repayments under Section 2.2 of the Policy may be made solely with
  respect to the “Survivor’s Option” described in Pricing Supplement
  No. 050 dated August 11, 2008 to the Prospectus Supplement dated
  December 9, 2005 related to the Program.

  
	
   

  	
   

  	
   

  
	
  Call
  Terms:

  	
   

  	
  Under
  Section 2.3 of the Policy, GLAIC may elect to pay the Policyholder all
  of the Fund Balance on August 15, 2011, or as of any date thereafter
  when a Periodic Payout is due (the “Call Dates”).

  
	
   

  	
   

  	
   

  
	
  Maturity
  Payout:

  	
   

  	
  On
  the Maturity Date, GLAIC will pay to the Policyholder the Fund Balance. If
  such date is not a Business Day, the Maturity Payout will be made on the next
  following Business Day; provided, however, that interest shall not accrue beyond the
  Maturity Date.

  

 

 

	
  Business
  Day City(s):

  	
   

  	
  New York, New York

  
	
   

  	
   

  	
   

  
	
  Other
  Terms:

  	
   

  	
  None

  

 

*********************

 

The calculation of the Guaranteed Rate and all
other payment terms of this Policy will be determined in the manner described
in the “Description of the Notes” section in the Prospectus Supplement.

 

*********************

 

	
  GENWORTH LIFE AND
  ANNUITY

  	
   

  	
  GENWORTH GLOBAL FUNDING
  TRUST 2008-45 

  
	
  INSURANCE
  COMPANY

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
    /s/ Pamela
  C. Asbury

  	
   

  	
  By*:

  	
    /s/
  Patricia M. Child

  
	
   

  	
  Pamela C. Asbury

  	
   

  	
   

  	
  Patricia M. Child

  
	
   

  	
   

  	
   

  
	
  Official Title:

  	
  Vice President

  	
   

  	
  Official Title:

  	
    Vice
  President

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  August 19,
  2008

  	
   

  	
  Date:

  	
  August 19,
  2008

  
									

 

* It is expressly
understood and agreed that (a) this Policy is executed and delivered by
U.S. Bank National Association (“USB”) not individually or personally, but
solely as Trustee of the Genworth Global Funding Trust 2008-45 in the exercise
of powers and authority conferred and vested in it (b) each of the
representations, undertakings and agreements herein made on the part of the
Trust is made and intended not as personal representations, undertakings and
agreements by USB but is made and intended for the purpose of binding only the
Trust, (c) nothing herein contained shall be construed as creating any
liability on USB individually or personally, to perform any covenant either
express or implied contained herein, all such liability, if any being expressly
waived by the parties hereto and by any person claiming by, through or under
the parties hereto and (d) under no circumstances shall USB be personally
liable for the payment of any indebtedness or expenses of the Trust or be
liable for the breach or failure of any obligation, representation, warrant or
covenant made or undertaken by the Trust under this Policy or any other related
documents.

 

*********************Exhibit 10.11.13

 

 

THIRTEENTH AMENDMENT TO, AND WAIVER UNDER, CREDIT AGREEMENT

 

THIS
THIRTEENTH AMENDMENT TO, AND WAIVER UNDER, CREDIT AGREEMENT (this “Thirteenth
Amendment”) is made and entered into as of August 19, 2008, by and among the
financial institutions identified on the signature pages hereof (such
financial institutions, together with their respective successors and assigns,
are referred to hereinafter each individually as a “Lender” and
collectively as the “Lenders”), WELLS FARGO FOOTHILL, INC., a California
corporation, as arranger and administrative agent for the Lenders (in such
capacities, together with any successor arranger and administrative agent, “Agent”),
and TRC COMPANIES, INC., a Delaware corporation (the “Administrative
Borrower”), on behalf of all Borrowers.

 

WITNESSETH:

 

WHEREAS,
the Administrative Borrower, the Administrative Borrower’s Subsidiaries party
thereto, the Lenders and Agent are parties to that certain Credit Agreement,
dated as of July 17, 2006 (as amended as of October 31, 2006, as of November 29,
2006, as of December 29, 2006, as of January 31, 2007, as of July 30,
2007, as of September 25, 2007, as of November 28, 2007, as of December 14,
2007, as of March 3, 2008, as of April 4, 2008, as of April 22,
2008, and as of May 20, 2008, and as the same may be further amended,
modified, supplemented or amended and restated from time to time, the “Credit
Agreement”);

 

WHEREAS,
pursuant to Section 6.16(a) of the Credit Agreement, the
Borrowers were required to achieve EBITDA of at least $7,945,000 for the
12-month period ended June 30, 2008 (the “June 2008 EBITDA
Requirement”);

 

WHEREAS,
the Borrowers have failed to comply with the June 2008 EBITDA Requirement
(the “Applicable Default”);

 

WHEREAS,
the Administrative Borrower has requested Agent and the Lenders to waive the
Applicable Default, and Agent and the Lenders have agreed to do so subject to
the terms and conditions set forth herein; and

 

WHEREAS,
Agent, the Lenders and the Borrowers have agreed to amend the Credit Agreement,
all as herein provided subject to the terms and conditions set forth herein;

 

NOW,
THEREFORE, in consideration of
the agreements and provisions herein contained, the parties hereto do hereby
agree as follows:

 

Section 1.              Definitions.  Any capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to such terms in the Credit
Agreement.

 

 

 

 

Section 2.              Waiver Under Credit Agreement.  Subject to the satisfaction of the terms and
conditions set forth herein, Agent and the Required Lenders hereby waive the
Applicable Default.

 

Section 3.              Amendments to Credit
Agreement.  Subject to the
terms and conditions set forth herein, the Credit Agreement is hereby amended,
as of the Effective Date (defined below), as follows:

 

3.01.       Amendments to Section 6.16(a) of
the Credit Agreement.  Section 6.16(a) of
the Credit Agreement is hereby amended by deleting it in its entirety and
inserting the following in lieu thereof:

 

(a)           Minimum EBITDA.  Fail to achieve EBITDA, measured on a quarterly basis, of
at least the required amount set forth in the following table for the
applicable period set forth opposite thereto:

 

	
  Applicable Amount

  	
   

  	
   

  	
  Applicable Period

  
	
  $2,100,000

  	
   

  	
   

  	
  For the 3 month period
  ending September 30, 2008

  
	
  $3,800,000

  	
   

  	
   

  	
  For the 6 month period
  ending December 31, 2008

  
	
  $7,600,000

  	
   

  	
   

  	
  For the 9 month period
  ending March 31, 2009

  
	
  $12,800,000

  	
   

  	
   

  	
  For the 12 month period
  ending June 30, 2009

  
	
  85% of projected EBITDA
  based on the projections delivered pursuant to Section 5.3 so
  long as such projections are satisfactory to Agent (or if such projections
  are not satisfactory to Agent or Borrowers fail to timely deliver such
  projections, an amount reasonably determined by Agent but in no event less
  than $14,000,000), unless otherwise agreed to in writing by Agent, Required
  Lenders and Borrowers

  	
   

  	
   

  	
  For the 12 month period
  ending each quarter thereafter

  

 

 

2

 

 

3.02.       Section 6.19.  Section 6.19 of the Credit
Agreement is hereby amended by deleting it in its entirety and inserting the
following in lieu thereof:

 

“6.19.      Liquidity.  At any time permit the sum of Borrowers’ and
their Restricted Subsidiaries’ Excess Availability plus Qualified Cash to be
less than $2,500,000.”

 

3.03.       Definition of
EBITDA in Schedule 1.1.  The definition of “EBITDA” in Schedule 1.1
to the Credit Agreement is hereby amended by deleting it in its entirety and
inserting the following in lieu thereof:

 

“EBITDA” means,
with respect to any fiscal period, Parent’s and its Subsidiaries’ consolidated
net earnings (or loss), minus (a) without duplication and to the extent
included in determining Parent’s and its Subsidiaries’ consolidated net
earnings (or loss) for such period, the sum for such period of (i) extraordinary
gains and (ii) interest income (excluding interest income related to any
Exit Strategy Program), in the case of each of clauses (a)(i) and (a)(ii) above
determined on a consolidated basis in accordance with GAAP, plus (b) without
duplication and to the extent deducted in determining Parent’s and its
Subsidiaries’ consolidated net earnings (or loss) for such period, the sum for
such period of (i) interest expenses, (ii) income taxes, (iii) depreciation
and amortization, (iv) restructuring charges incurred during the fiscal year
ended June 30, 2008 in an aggregate amount not to exceed $2,750,000, (v) restructuring
charges incurred during the fiscal year ended June 30, 2009 in an
aggregate amount not to exceed $1,500,000 (provided that no amount under
this clause (v) shall be added back for purposes of calculating EBITDA
unless and until Agent has received satisfactory documentation and other
evidence relating to any such restructuring charges), (vi) non-cash losses
incurred in connection with the Exit Strategy Program solely to the extent such
losses are reimbursable to Parent or one of its Subsidiaries under insurance
policies with AIG (or another insurer), and (vii) non-cash goodwill
impairment charges, in the case of each of clauses (b)(i) through and
including (b)(vii) above, determined on a consolidated basis in accordance
with GAAP.

 

Section 4.              Representations
and Warranties.  In order to induce
Agent and the Lenders to enter into this Thirteenth Amendment, the
Administrative Borrower, for itself and on behalf of all of the other
Borrowers, hereby represents and warrants that:

 

4.01.       No Default.  At and as of the date of this Thirteenth
Amendment and at and as of the Effective Date and both prior to (other than
with respect to the Applicable Default) and after giving effect to this
Thirteenth Amendment, no Default or Event of Default exists and is continuing.

 

4.02.       Representations and
Warranties True and Correct. 
At and as of the date of this Thirteenth Amendment and both prior to
(other than with respect to the Applicable Default) and after giving effect to
this Thirteenth Amendment, each of the representations and warranties contained
in the Credit Agreement and other Loan Documents is true and correct in all
material respects.

 

 

3

 

 

4.03.       Corporate Power,
Etc.  Administrative
Borrower (a) has all requisite corporate power and authority to execute
and deliver this Thirteenth Amendment and to consummate the transactions
contemplated hereby for itself and, in the case of Administrative Borrower, on
behalf of all of the other Borrowers, and (b) has taken all action,
corporate or otherwise, necessary to authorize the execution and delivery of
this Thirteenth Amendment and the consummation of the transactions contemplated
hereby for itself and, in the case of Administrative Borrower, on behalf of all
of the other Borrowers.

 

4.04.       No Conflict.  The execution, delivery and performance by
Administrative Borrower (on behalf of itself and all of the other Borrowers) of
this Thirteenth Amendment will not (a) violate any provision of federal,
state, or local law or regulation applicable to any Borrower, the Governing
Documents of any Borrower, or any order, judgment or decree of any court or
other Governmental Authority binding on any Borrower, (b) conflict with or
result in any breach of, or constitute (with due notice or lapse of time or
both) a default under any material contractual obligation of any Borrower, (c) result
in or require the creation or imposition of any Lien of any nature whatsoever
upon any properties or assets of any Borrower, other than Permitted Liens, or (d) require
any approval of any Borrower’s interestholders or any approval or consent of
any Person under any material contractual obligation of any Borrower, other
than consents or approvals that have been obtained and that are still in force
and effect.

 

4.05.       Binding Effect.  This Thirteenth Amendment has been duly
executed and delivered by the Administrative Borrower (on behalf of itself and
all of the other Borrowers) and constitutes the legal, valid and binding
obligation of the Administrative Borrower (on behalf of itself and all of the
other Borrowers), enforceable against the Administrative Borrower (on behalf of
itself and all of the other Borrowers) in accordance with its terms, except as
such enforceability may be limited by (a) applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws, now or hereafter
in effect, relating to or affecting the enforcement of creditors’ rights
generally, and (b) the application of general principles of equity
(regardless of whether such enforceability is considered in a proceeding in
equity or at law).

 

Section 5.              Conditions.  This Thirteenth Amendment shall
be effective upon the fulfillment by the Borrowers, in a manner satisfactory to
Agent and the Lenders, of all of the following conditions precedent set forth
in this Section 5 (such date, the “Effective Date”):

 

5.01.       Execution of the
Thirteenth Amendment.  Each of
the parties hereto shall have executed an original counterpart of this
Thirteenth Amendment and shall have delivered (including by way of
telefacsimile or electronic mail) the same to Agent.

 

5.02.       Amendment Fee.  Borrowers shall have paid to Agent, for the ratable
benefit of the Lenders, in immediately available funds an amendment fee equal
to $100,000.

 

5.03.       Representations and
Warranties.  As of the Effective
Date, the representations and warranties set forth in Section 4
hereof shall be true and correct.

 

5.04.       Compliance with Terms. 
Borrowers shall have complied in all respects with the terms hereof and
of any other agreement, document, instrument or other writing to be delivered
by Borrowers in connection herewith.

 

 

4

 

 

5.05.       Delivery
of Other Documents.  Agent shall have received all other
instruments, documents and agreements as Agent may reasonably request, in form
and substance reasonably satisfactory to Agent.

 

Section 6.              Miscellaneous.

 

6.01.       Continuing Effect.  Except as specifically provided herein, the
Credit Agreement and the other Loan Documents shall remain in full force and
effect in accordance with their respective terms and are hereby ratified and
confirmed in all respects.

 

6.02.       No Waiver;
Reservation of Rights.  This Thirteenth
Amendment is limited as specified and the execution, delivery and effectiveness
of this Thirteenth Amendment shall not operate as a modification, acceptance or
waiver of any provision of the Credit Agreement, or any other Loan Document,
except as specifically set forth herein. 
Notwithstanding
anything contained in this Thirteenth Amendment to the contrary, Agent and the
Lenders expressly reserve the right to exercise any and all of their rights and
remedies under the Credit Agreement, any other Loan Document and applicable law
in respect of any Default or Event of Default (except to the extent set forth
in Section 2 with respect to the Applicable Default).

 

6.03.       References.

 

(a)           From and after the Effective Date, (i) the Credit Agreement, the other Loan Documents and
all agreements, instruments and documents executed and delivered in connection
with any of the foregoing shall each be deemed amended hereby to the extent
necessary, if any, to give effect to the provisions of this Thirteenth
Amendment and (ii) all of the terms and provisions of this Thirteenth
Amendment are hereby incorporated by reference into the Credit Agreement, as
applicable, as if such terms and provisions were set forth in full therein, as
applicable.

 

(b)           From and after the Effective Date, (i) all
references in the Credit Agreement to “this Agreement”, “hereto”, “hereof”,
“hereunder” or words of like import referring to the Credit Agreement shall
mean the Credit Agreement as amended hereby and (ii) all references in the
Credit Agreement, the other Loan Documents or any other agreement, instrument
or document executed and delivered in connection therewith to  “Credit Agreement”, “thereto”, “thereof”,
“thereunder” or words of like import referring to the Credit Agreement shall
mean the Credit Agreement as amended hereby.

 

6.04.       Governing Law.  THIS THIRTEENTH AMENDMENT SHALL BE GOVERNED
BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

6.05.       Severability.  The provisions of this Thirteenth Amendment
are severable, and if any clause or provision shall be held invalid or
unenforceable in whole or in part in any jurisdiction, then such invalidity or
unenforceability shall affect only such clause or provision, or part thereof,
in such jurisdiction and shall not in any manner affect such clause or
provision in any other jurisdiction, or any other clause or provision in this
Thirteenth Amendment in any jurisdiction.

 

 

5

 

 

6.06.       Counterparts.  This Thirteenth Amendment may be executed in
any number of counterparts, each of which counterparts when executed and
delivered shall be an original, but all of which shall together constitute one
and the same instrument.  Delivery of an
executed counterpart of this Thirteenth Amendment by telefacsimile or
electronic mail shall be equally effective as delivery of a manually executed
counterpart.  A complete set of
counterparts shall be lodged with the Administrative Borrower, Agent and each
Lender.

 

6.07.       Headings.  Section headings in this Thirteenth
Amendment are included herein for convenience of reference only and shall not
constitute a part of this Thirteenth Amendment for any other purpose.

 

6.08.       Binding Effect;
Assignment.  This Thirteenth
Amendment shall be binding upon and inure to the benefit of Borrowers, Agent
and the Lenders and their respective successors and assigns; provided, however,
that the rights and obligations of Borrowers under this Thirteenth Amendment
shall not be assigned or delegated without the prior written consent of Agent
and the Lenders.

 

6.09.       Expenses.  Borrowers agree to pay Agent upon demand, for
all reasonable expenses, including reasonable fees of attorneys and paralegals
for Agent and the Lenders (who may be employees of Agent or the Lenders),
incurred by Agent and the Lenders in connection with the preparation,
negotiation and execution of this Thirteenth Amendment and any document
required to be furnished herewith.

 

6.10.       Integration.  This Thirteenth Amendment, together with the
other Loan Documents, incorporates all negotiations of the parties hereto with
respect to the subject matter hereof and is the final expression and agreement
of the parties hereto with respect to the subject matter hereof.

 

[Signature
page follows]

 

 

6

 

 

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

 

	
   

  	
  ADMINISTRATIVE
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  TRC
  COMPANIES, INC., a Delaware corporation, as Administrative Borrower, on behalf of itself
  and all other Borrowers 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/
  Martin H. Dodd

  
	
   

  	
  Name: 

  	
  Martin H. Dodd

  
	
   

  	
  Title: 

  	
  Senior Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGENT AND LENDERS:

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO FOOTHILL, INC.,

  as Agent and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /S/ Jason
  P. Shanahan

  
	
   

  	
  Name: 

  	
  Jason P. Shanahan

  
	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  TEXTRON FINANCIAL CORPORATION,

  as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:  

  	
  /S/ Chris
  Grivakis

  
	
   

  	
  Name: 

  	
  Chris Grivakis

  
	
   

  	
  Title: 

  	
  Senior Account Executive

  
								

 

 

[SIGNATURE PAGE OF
THIRTEENTH AMENDMENT]

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]