Document:

exv10w40

 

EXHIBIT 10.40

FIRST AMENDMENT TO CREDIT AGREEMENT

         THIS FIRST AMENDMENT TO CREDIT AGREEMENT (this “Amendment”) is entered
into as of March 15, 2004, among PMC COMMERCIAL TRUST, a real estate investment
trust organized under the laws of the State of Texas (“Borrower”), certain
Lenders, and BANK ONE, NA, a national banking association with its main office
in Chicago, Illinois (“Administrative Agent”).

PRELIMINARY STATEMENT:

         Borrower, Administrative Agent and Lenders are party to that certain
Credit Agreement (as renewed, extended, amended and restated, the “Credit
Agreement”) dated as of February 29, 2004, pursuant to which the Lenders have
made and may hereafter make loans to Borrower. The parties hereto have agreed
to amend the Credit Agreement as described herein.

         Accordingly, for adequate and sufficient consideration, the receipt of
which is hereby acknowledged, Borrower, Administrative Agent and Lenders agree
as follows:

         1. Defined Terms; References. Unless otherwise stated in this Amendment
(a) terms defined in the Credit Agreement have the same meanings when used in
this Amendment and (b) references to “Sections,” “Schedules” and “Exhibits” are
to sections, schedules and exhibits to the Credit Agreement.

         2. Amendments.

	 	(a)	 	The defined term “Stated Termination Date” in
Section 1.1 of the Credit Agreement is amended in its entirety
as follows:
	 
	 	 	 	“Stated Termination Date” means December 31, 2004.
	 
	 	(b)	 	Section 4.5 of the Credit Agreement is amended in
its entirety as follows:
	 
	 	 	 	Facility Fee. On May 31, 2004, Borrower shall pay to
Administrative Agent a facility fee equal to the lesser of
(a) 0.125% multiplied by the Commitment in effect on such
date, or (b) $50,000; provided, however, that if the product
of 0.125% multiplied by the Commitment in effect on such date
is less than $20,000, then Borrower shall instead pay to
Administrative Agent a facility fee of $20,000.

         3. Conditions Precedent. Notwithstanding any contrary provisions, the
foregoing paragraphs in this Amendment are not effective unless and until (a)
the representations and warranties in this Amendment are true and correct and
(b) Administrative Agent receives counterparts of this Amendment executed by
each party named below.

         4. Ratifications. This Amendment modifies and supersedes all inconsistent
terms and provisions of the Credit Documents, and except as expressly modified
and superseded by this Amendment, the Credit Documents are ratified and
confirmed and continue in full force and

 

 

effect. Borrower, Administrative Agent and Lenders agree that the Credit
Documents, as amended by this Amendment, continue to be legal, valid, binding
and enforceable in accordance with their respective terms.

         5. Representations and Warranties. Borrower hereby represents and
warrants to Administrative Agent and Lenders that (a) this Amendment and any
Credit Documents to be delivered under this Amendment have been duly executed
and delivered by Borrower, (b) no action of, or filing with, any Governmental
Authority is required to authorize, or is otherwise required in connection
with, the execution, delivery, and performance by Borrower of this Amendment
and any Credit Document to be delivered under this Amendment, (c) this
Amendment and any Credit Documents to be delivered under this Amendment are
valid and binding upon Borrower and are enforceable against Borrower in
accordance with their respective terms, except as limited by any applicable
Debtor Relief Laws, (d) the execution, delivery and performance by Borrower of
this Amendment and any Credit Documents to be delivered under this Amendment do
not require the consent of any other Person and do not and will not constitute
a violation of any Governmental Requirements, agreements or understandings to
which Borrower is a party or by which Borrower is bound, (e) the
representations and warranties contained in the Credit Agreement, as amended by
this Amendment, and any other Credit Document are true and correct in all
material respects as of the date of this Amendment, and (f) as of the date of
this Amendment, no Event of Default or Potential Default exists or is imminent.

         6. References. All references in the Credit Documents to the “Credit
Agreement” refer to the Credit Agreement as amended by this Amendment. This
Amendment is a “Credit Document” referred to in the Credit Agreement and the
provisions relating to Credit Documents in the Credit Agreement are
incorporated by reference, the same as if set forth verbatim in this Amendment.

         7. Counterparts. This Amendment may be executed in any number of
counterparts with the same effect as if all signatories had signed the same
document.

         8. Parties Bound. This Amendment binds and inures to the benefit of
Borrower, Administrative Agent and each Lender, and, subject to Section 14 of
the Credit Agreement, their respective successors and assigns.

         9. Entirety. THIS AMENDMENT, THE CREDIT AGREEMENT AS AMENDED BY THIS
AMENDMENT, AND THE OTHER CREDIT DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN
THE PARTIES FOR THE TRANSACTIONS THEREIN, AND MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

2

 

         EXECUTED as of the date first stated above.

	 	 	 	 	 
	 	 	BANK ONE, NA,
	 	 	as Administrative Agent, Bank One and a

Lender
	 
	 	 	 	 
	

	 	By:
	 	/s/ Bradley C. Peters, Vice President
	

	 	 	 	
 
	

	 	 	 	Bradley C. Peters, Vice President
	 
	 	 	 	 
	 	 	PMC COMMERCIAL TRUST,
	 	 	as Borrower
	 
	 	 	 	 
	

	 	By:
	 	/s/ Barry N. Berlin
	

	 	 	 	
 
	

	 	Name:
	 	Barry N. Berlin
	

	 	 	 	
 
	

	 	Title:
	 	CFO
	

	 	 	 	
 

3exv10w42

 

EXHIBIT 10.42

ADDENDUM TO

RAYMOND J. SMETS EMPLOYMENT AGREEMENT

     
This Addendum to the Raymond J. Smets Employment Agreement
(“Addendum”) is made by and between Networks
Associates, Inc. (the “Company”), and Raymond J. Smets
(“Executive”) as of
May      , 2004.

WHEREAS, the Company and Executive executed the Raymond J. Smets
Employment Agreement (the “Agreement”) on or about
October 7, 2002;

WHEREAS, the Company anticipates that it may sell all or
substantially all of the assets used in the Company’s
Sniffer operations in one transaction or a series of related
transactions (the “Sale”) to another entity or person;

WHEREAS, the Parties wish to amend the definition of Change in
Control in the Agreement to include a Sale, provided the closing
in respect of such Sale occurs prior to 12:00 p.m. (PST)
July 30, 2004; provided further, that Executive does not
disclose any information regarding the Sale, including but not
limited to confidential information about employees, business
moves and strategies, and management information
(“Confidential Information”);

WHEREAS, the Parties wish to amend the definition of Cause in
the Agreement to include any disclosure by Executive of
Confidential Information to an unauthorized person or entity; and

WHEREAS, the Parties wish to amend the Covenant Not to Compete
in the agreement to provide that the limitation does not
restrict Executive from accepting employment from any
organization who is a purchaser of Sniffer assets;

NOW, THEREFORE, in consideration of the foregoing, the terms,
provisions, conditions, covenants and agreements of this
Addendum set forth herein, and for such other good and valuable
consideration, the receipt and sufficiency of which is
acknowledged by each of the parties hereto, the Parties do
hereby agree as follows:

1. Amendment to Definition of Change in Control. Section
4(c)(iv)(2) of the Agreement is amended to add the following new
Section 4(c)(iv)(2)(F):

		
	 	
    “(F) the sale of all or substantially all of the assets
    used in the Company’s Sniffer operations in one transaction
    or a series of related transactions (the “Sale”) to
    another entity or person, provided the closing in respect of
    such Sale occurs prior to 12:00 p.m. (PST) July 30, 2004, and,
    provided further, that Executive does not disclose any
    information regarding the Sale, including, but not limited to
    confidential information about employees, business moves and
    strategies, and management information (“Confidential
    Information”), other than in the context of any
    presentation regarding the Sale organized by the Company or its
    advisors, without the express written consent of the Senior
    Director or Senior Vice President of Human Resources of Network
    Associates or any other officer whose identity is made known to
    the Executive.”

 

 

     
2.     Amendment to Definition of
Cause. Section 4(c)(iv)(1) of the Agreement is amended to
add the following new Section 4(c)(iv)(1)(f):

		
	 	
    “(f) discussing, revealing or in any way communicating
    any Confidential Information to an unauthorized person or
    entity, other than in the context of any presentation regarding
    the Sale organized by the Company or its advisors, without the
    express written consent of the Senior Director or Senior Vice
    President of Human Resources of Network Associates or any other
    officer whose identity is made known to the Executive.”

     
3.     Amendment to Covenant Not to
Compete. Section 10(a) of the Agreement is deleted in its
entirety and replaced with the following new Section 10(a):

		
	 	
    “(a) Covenant Not to Compete. Upon Executive’s
    resignation for any reason after a Change of Control has
    occurred or termination by the Company for any reason after a
    Change of Control has occurred, Executive agrees that until the
    end of the twelve (12) month period following the date of the
    termination of his employment, Executive will not directly
    engage in (whether as an employee, consultant, proprietor,
    shareholder, owner, partner, director or otherwise), or have any
    ownership interest in, or participate in the financing,
    operation, management, or control of, any Subject Entity that is
    engaged in design, development, marketing, distribution, or sale
    of anti-virus or network security software or hardware anywhere
    in the world. The term “Subject Entity” means any
    entity engaged in the design, development, marketing,
    distribution, or sale of anti-virus or network security software
    or hardware, including but not limited to the following
    entities: Cisco Systems (security business unit only), Dr.
Ahn’s, Fortinet, Fsecure, Internet Security Systems, Intrusion Inc., NetScreen, Panda,
    Sophos, Sourcefire, Symantec, Tipping Point and Trend Micro or
    any successor thereof (the “Subject Entity List”).
    Executive understands and agrees that the Company may delete
    from, add to or otherwise amend the entities included in the
    Subject Entity List from time to time, and the Company will
    provide written notice to Executive of any such deletion,
    addition or amendment. Notwithstanding the foregoing provisions
    to the contrary, nothing in this Section 10(a) shall
    prevent Executive from being employed by, or providing services
    to, any division or business unit of any Subject Entity if that
    division or business unit is not involved in the design,
    development, marketing, distribution, or sale of anti-virus or
    network security software or hardware, as long as Executive has
    no responsibilities or duties for any division or business unit
    of such Subject Entity that is involved in the design,
development, marketing, distribution or sale of anti-virus or network
security software or hardware. Ownership of less than three percent
(3%) of the outstanding voting stock of a Subject Entity shall not constitute a violation of this
    Section 10(a). The restrictions in this Section 10(a)
    shall not prevent or restrict Executive from accepting
    employment from any person, entity or organization who is a
    purchaser of Sniffer assets pursuant to a Sale.”

     
4.     Termination of Addendum. In the
event that the closing in respect of a Sale has not occurred
prior to 12:00 p.m. (PST) July 30, 2004, this Addendum
shall expire on its own

 

 

terms automatically at 12:00 p.m. (PST) on July 30,
2004, and a subsequent Sale, if any, shall not be considered a
Change in Control for purposes of the Agreement.

     
5. Agreement. Except as set forth in Sections 1
through 3 above, all terms, provisions, conditions, covenants
and agreements of the Agreement shall remain unchanged and in
full force and effect.

     
6. Entire Agreement. This Addendum, taken together with the
Agreement, represents their entire agreement of the parties and
shall supersede any and all previous contracts, arrangements or
understanding between the parties with respect to the subject
matter hereof. This Addendum may be amended at any time only by
mutual written agreement of the parties hereto.

     
IN WITNESS WHEREOF, the Parties have executed this Addendum on
the respective dates set forth below.

	 	 	 
	
    Networks Associates, Inc.

    /s/ GENE HODGES

    
By:  Gene Hodges,

            President

    

    Date: June 6, 2004
    	 	
    Raymond J. Smets,

    /s/ RAYMOND J. SMETS

    
Date: May 11, 2004

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