Document:

EX-10.53 Letter Agreement

March 10, 2008

180 Connect, Inc. (“180 Connect”) and

each of its subsidiaries listed on Schedule A hereto

(together with 180 Connect, collectively, the “Companies”

and each, individually, a “Company”)

6501 East Belleview Ave

Englewood, CO 80111

Ladies and Gentlemen:

Reference is hereby made to those certain Home Services Provider Agreements dated as of May 1, 2007
(as amended, restated, supplemented or otherwise modified, the “HSP Agreements”) between DIRECTV,
Inc., a California corporation (“DIRECTV”) and each of the Companies. Capitalized terms defined in
the HSP Agreements and used in this letter agreement (this “Letter Agreement”) without definition
shall have the meanings ascribed to such terms in the HSP Agreements.

Pursuant to the HSP Agreements (i) DIRECTV has engaged the Companies to provide services in the
installation and maintenance of DIRECTV System Hardware (the “Services”) and (ii) the Companies
have agreed to purchase DIRECTV System Components from DIRECTV.

In consideration for the Services, DIRECTV has agreed to pay certain fees to the Companies as
described in Section 4 of the HSP Agreements. In connection with their purchase of DIRECTV System
Components, the Companies have agreed to pay the purchase price for such DIRECTV System Components
to DIRECTV within thirty (30) days or forty-five (45) days from the shipment of the DIRECTV System
Components as provided in Section 2.2 of Exhibit 3.i to the HSP Agreements (each such date, the
“Payment Due Date”).

Pursuant to Section 4.b. of the HSP Agreements and Section 2.2 of Exhibit 3.i to the HSP
Agreements, the Companies and DIRECTV have agreed that, on any given Payment Due Date, DIRECTV
shall have the right to offset any amounts due to DIRECTV from the Companies in respect of the
DIRECTV System Components purchased by the Companies against any amounts owed by DIRECTV to the
Companies under the HSP Agreements or any other agreements among the parties (the “Offset Right”).

The Companies have requested that DIRECTV agree to forbear in its right to exercise its Offset
Right with respect to certain purchase orders (“Purchase Orders”) as described herein.

In consideration of the premises, the parties hereto agree as follows:

	 	1.	 	Forbearance of Offset Rights. During the balance of March 2008,
DIRECTV hereby agrees to forbear the exercise of its Offset Right with respect to
the Purchase Orders set forth on Schedule B hereto; provided;

1

 

	 	 	 	however, that if any of such Purchase Orders are paid prior to March 31, 2008, the next
oldest outstanding Purchase Order shall be deemed to have been forbeared upon, so that the
aggregate dollar value of Purchase Orders forbeared upon during the balance of March 2008
shall equal approximately but no more than $3 million. DIRECTV shall reasonably consider
further adjustments to the aggregate forbearance amount on a monthly basis during the term
of this Letter Agreement, commencing on April 1, 2008 but in no event shall the forbearance
amount ever exceed $10 million in the aggregate.
	 
	 	2.	 	Representations and Warranties. Each of the Companies hereby represents and warrants
to DIRECTV that:

	 	a.	 	it is a duly organized and validly existing corporation in good standing
under the laws of the jurisdiction of its organization and has the power and authority
to own and operate its properties, to transact the business in which it is now engaged
and to execute and deliver this Letter Agreement;
	 
	 	b.	 	this Letter Agreement constitutes the duly authorized, legally valid and
binding obligation of each Company, enforceable against such Company in accordance
with its terms;
	 
	 	c.	 	all consents and grants of approval required to have been granted by any
Person in connection with the execution, delivery and performance of this Letter
Agreement have been granted;
	 
	 	d.	 	the execution, delivery and performance by each Company of this Letter
Agreement do not and will not (i) violate any law, governmental rule or regulation,
court order or agreement to which it is subject or by which its properties are bound
or the charter documents or bylaws of each Company, (ii) result in the creation of any
lien or other encumbrance with respect to the property of any Company, or (iii)
conflict with or result in a breach of the terms, conditions or provisions of or
constitute a default under any agreement, instrument or contract to which any of the
Companies is a party or to which they or their assets are subject, including without
limitation that certain Security and Purchase Agreement dated as of July 31, 2006, as
amended, modified or otherwise supplemented (the “Purchase Agreement”), among the
Companies and Laurus Master Fund, Ltd.;
	 
	 	e.	 	there is no action, suit, proceeding or governmental investigation pending
or, to the knowledge of any Company, threatened against a Company or any of its
subsidiaries or any of their respective assets which, if adversely determined, would
have a material adverse effect on the business, operations, properties, assets,
condition (financial or otherwise) or prospects of the Companies and their
subsidiaries, taken as a whole, or the ability of the Companies to comply with its
obligations hereunder;

2

 

	 	f.	 	the Companies’ request that DIRECTV forbear its Offset Right is made solely in
order to enable the Companies to address cash liquidity shortfalls which may arise in
the ordinary course of business; and
	 
	 	g.	 	No Default or Event of Default has occurred.

	 	3.	 	Covenants. Each of the Companies covenants and agrees that it will:

	 	a.	 	do or cause to be done all things necessary to preserve, renew and keep in
full force and effect its legal existence;
	 
	 	b.	 	promptly provide to DIRECTV all financial and operational information with
respect to the Companies as DIRECTV may reasonably request, including daily financial
information;
	 
	 	c.	 	promptly notify DIRECTV after the occurrence of an Event of Default
hereunder or an event of default under the Purchase Agreement or any other
material agreement or contract to which any Company is a party;
	 
	 	d.	 	not make any acquisitions or investments outside the ordinary course of
business; and
	 
	 	e.	 	not declare or pay any dividend or other distribution, direct or indirect, on
account of any capital stock or equity interests of any Company or any of its
subsidiaries, now or hereafter outstanding, (ii) make any repurchase, redemption,
retirement, defeasance, sinking fund or similar payment, purchase or other acquisition
for value, direct or indirect, of any capital stock or equity interests of any Company
or and of its subsidiaries or any direct or indirect parent of any Company, now or
hereafter outstanding, (iii) make any payment to retire, or to obtain the surrender
of, any outstanding warrants, options or other rights for the purchase or acquisition
of shares of any class of capital stock or equity interests of any Company or any of
its subsidiaries, now or hereafter outstanding.

	 	4.	 	Events of Default. The occurrence of any of the following events shall constitute an
“Event of Default”:

	 	a.	 	failure of any Company to pay, on a Payment Due Date, any amounts then due to
be paid or any other amount due under any HSP Agreement or any other agreement between
any Company and DIRECTV or any of its Subsidiaries (unless otherwise expressly agreed
in writing by DIRECTV); or
	 
	 	b.	 	failure of any Company to pay, or the default in the payment of, any amount
due under or in respect of any promissory note, indenture or other agreement or
instrument relating to any indebtedness owing by any Company, to which any Company is
a party or by which any Company or any of its property is bound beyond any grace
period provided; or the

3

 

	 		 	occurrence of any other event or circumstance that, with notice or lapse of time or both,
would permit acceleration of such indebtedness; or
	 
	 	c.	 	the occurrence of any default, event of default or similar event under the Purchase
Agreement; or
	 
	 	d.	 	failure of any Company to perform or observe any other term, covenant or agreement to be
performed or observed by it pursuant to this Letter Agreement or any HSP Agreement; or
	 
	 	e.	 	any representation or warranty made by any Company to DIRECTV in connection with this Letter
Agreement shall prove to have been false when made; or
	 
	 	f.	 	any provision of this Letter Agreement or any provision hereof or thereof shall cease to be
in full force or effect or shall be declared to be null or void or otherwise unenforceable in
whole or in part; or
	 
	 	g.	 	any order, judgment or decree shall be entered against any Company decreeing the
dissolution or split-up of any Company; or
	 
	 	h.	 	suspension of the usual business activities of any Company or the complete or
partial liquidation of any Company’s business; or
	 
	 	i.	 	(i) a court having jurisdiction in the premises shall enter a decree or order for relief
in respect of any Company or any Company’s subsidiaries in an involuntary case under Title 11
of the United States Code entitled “Bankruptcy” (as now and hereinafter in effect, or any
successor thereto, the “Bankruptcy Code”) or any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect, which decree or order is not stayed; or any other
similar relief shall be granted under any applicable federal or state law; or (ii) an
involuntary case shall be commenced against any Company or any Company’s subsidiaries under
any applicable bankruptcy, insolvency or other similar law now or hereafter in effect; or a
decree or order of a court having jurisdiction in the premises for the appointment of a
receiver, liquidator, sequestrator, trustee, custodian or other officer having similar powers
over any Company or any Company’s subsidiaries or over all or a substantial part of its
property shall have been entered; or the involuntary appointment of an interim receiver,
trustee or other custodian of any Company or any Company’s subsidiaries for all or a
substantial part of its property shall have occurred; or a warrant of attachment, execution or
similar process shall have been issued against any substantial part of the property of any
Company or any Company’s subsidiaries; or
	 
	 	j.	 	an order for relief shall be entered with respect to any Company or any Company’s
subsidiaries or any Company or any Company’s subsidiaries shall commence a voluntary case
under the Bankruptcy Code or any

4

 

	 	 	 	applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or
shall consent to the entry of an order for relief in an involuntary case, or to the
conversion of an involuntary case to a voluntary case, under any such law, or shall
consent to the appointment of or taking possession by a receiver, trustee or other
custodian for all or a substantial part of its property; or any Company or any
Company’s subsidiaries shall make an assignment for the benefit of creditors; or any
Company or any Company’s subsidiaries shall be unable or fail, or shall admit in
writing its inability, to pay its debts as such debts become due; or the board of
directors of any Company or any Company’s subsidiaries (or any committee thereof)
shall adopt any resolution or otherwise authorize action to approve any of the
foregoing.

	 	5.	 	Remedies. Upon the occurrence of any Event of Default, DIRECTV’s agreement to forbear its
Offset Right with respect to any existing or hereafter arising Purchase Orders shall
terminate.
	 
	 	6.	 	Termination. This Letter Agreement shall terminate and be of no further force and effect on
the earliest of (i) December 31, 2008, (ii) the occurrence of an Event of Default hereunder,
(iii) 90 days after the termination of that certain proposal letter dated March 3, 2008 (the
“Proposal Letter”) between 180 Connect and The DIRECTV Group, Inc., and (iv) the consummation
of the transactions contemplated by the Proposal Letter as set forth in Section 1 thereof.
	 
	 	7.	 	Miscellaneous.

	 	a.	 	All notices and other communications provided for hereunder shall be in
writing (including telefacsimile communication) and mailed, telecopied, or delivered
as follows: if to any Company, c/o 180 Connect, Inc., 6501 East Belleview Avenue,
Englewood, CO 80111, Attention: Steven Westberg, CFO; and if to DIRECTV, 1211 Avenue
of the Americas, New York, New York 10036, Attention: J. William Little, Senior Vice
President and Treasurer; or in each case at such other address as shall be designated
by any Company or DIRECTV. All such notices and communications shall, when mailed,
telecopied or sent by overnight courier, be effective when deposited in the mails,
delivered to the overnight courier, as the case may be, or sent by telecopier.
Electronic mail may be used to distribute routine communications; provided that no
signature with respect to any notice, request, agreement, waiver, amendment, or other
documents may be sent by electronic mail.
	 
	 	b.	 	The Companies agree to indemnify DIRECTV against any losses, claims, damages
and liabilities and related expenses, including counsel fees and expenses, incurred by
DIRECTV arising out of or in connection with or as a result of the transactions
contemplated by this Letter Agreement. In particular, the Companies promise to pay all
costs and expenses, including

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	 	 	 	reasonable attorneys’ fees, incurred in connection with the collection and enforcement
of this Letter Agreement.
	 
	 	c.	 	No failure or delay on the part of DIRECTV to exercise any right, power or
privilege under this Letter Agreement and no course of dealing between the Companies
and DIRECTV shall impair such right, power or privilege or operate as a waiver of any
default or an acquiescence therein, nor shall any single or partial exercise of any
such right, power or privilege preclude any other or further exercise thereof or the
exercise of any other right, power or privilege. The rights and remedies expressly
provided in this Letter Agreement are cumulative to, and not exclusive of, any rights
or remedies that DIRECTV would otherwise have. No notice to or demand on the Companies
in any case shall entitle the Companies to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the right of DIRECTV to any
other or further action in any circumstances without notice or demand.
	 
	 	d.	 	This Letter Agreement may be executed in any number of counterparts and by
either party hereto on separate counterparts, each of which, when so executed and
delivered, shall be an original, but all such counterparts shall together constitute
one and the same instrument. Any such counterpart may be delivered by facsimile, email
or similar electronic transmission and shall be deemed the equivalent of an originally
signed counterpart and shall be fully admissible in any enforcement proceedings
regarding this Letter Agreement.

	 	8.	 	Governing Law; Amendments - This Letter Agreement (a) shall be
governed by the laws of the State of New York, without regard to principles of conflicts of
laws, (b) may only be amended in a writing executed by each of the parties hereto and (c)
constitutes the entire agreement of the parties hereto in respect of the subject matter
hereof, other than the HSP Agreements, the provisions of which remain in full force and
effect.

6

 

	 	 	 	 	 
	 	Very truly yours,

DIRECTV, Inc.

 	 
	 	By:  	/s/ J. WILLIAM LITTLE
 	 
	 	Name:	J. WILLIAM LITTLE 	 
	 	Title:	SVP 	 

S-1 

 

	 	 	 	 	 

Accepted and agree as of the date
first above written:

	 	 	 	 	 
	180 Connect, Inc.

 	 	 
	By:  	/s/ Steven Westberg
 	 	 
	Name:	Steven Westberg 	 	 
	Title:	Chief Financial Officer 	 	 
	 

	 	 	 	 	 
	Mountain Center, Inc.

 	 	 
	By:  	/s/ Steven Westberg
 	 	 
	Name:	Steven Westberg 	 	 
	Title:	Chief Financial Officer 	 	 
	 

	 	 	 	 	 
	Ironwood Communications Inc.

 	 	 
	By:  	/s/ Steven Westberg
 	 	 
	Name:	Steven Westberg 	 	 
	Title:	Chief Financial Officer 	 	 
	 

S-2 

 

Schedule A

Mountain Center, Inc.

Ironwood Communications Inc.

Schedule A-1 

 

Schedule B

Purchase Orders

Outstanding DTV PO’s

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Cumulative
	 	 	Order Date	 	Bill Doc	 	$ Amount	 	$ Amount
	 
	 
	 	 	12/30/2007	 	 	 	90199209	 	 	 	75,200	 	 	 	75,200	 
	 
	 	 	12/30/2007	 	 	 	90199211	 	 	 	174,568	 	 	 	249,768	 
	 
	 	 	12/31/2007	 	 	 	90199232	 	 	 	50,160	 	 	 	299,928	 
	 
	 	 	12/31/2007	 	 	 	90199234	 	 	 	212,226	 	 	 	512,154	 
	 
	 	 	12/31/2007	 	 	 	90199264	 	 	 	102,576	 	 	 	614,730	 
	 
	 	 	12/31/2007	 	 	 	90199266	 	 	 	103,760	 	 	 	718,490	 
	 
	 	 	12/31/2007	 	 	 	90199268	 	 	 	201,832	 	 	 	920,322	 
	 
	 	 	12/31/2007	 	 	 	90199270	 	 	 	72,384	 	 	 	992,706	 
	 
	 	 	12/31/2007	 	 	 	90199272	 	 	 	424,720	 	 	 	1,417,426	 
	 
	 	 	12/31/2007	 	 	 	90199274	 	 	 	164,424	 	 	 	1,581,850	 
	 
	 	 	12/31/2007	 	 	 	90199276	 	 	 	61,568	 	 	 	1,643,418	 
	 
	 	 	12/31/2007	 	 	 	90199278	 	 	 	79,592	 	 	 	1,723,010	 
	 
	 	 	12/31/2007	 	 	 	90199280	 	 	 	25,912	 	 	 	1,748,922	 
	 
	 	 	12/31/2007	 	 	 	90199282	 	 	 	279,312	 	 	 	2,028,234	 
	 
	 	 	12/31/2007	 	 	 	90199284	 	 	 	3,408	 	 	 	2,031,642	 
	 
	 	 	12/31/2007	 	 	 	90199285	 	 	 	132,456	 	 	 	2,164,098	 
	 
	 	 	1/1/2008	 	 	 	90199440	 	 	 	38,192	 	 	 	2,202,290	 
	 
	 	 	1/2/2008	 	 	 	90199373	 	 	 	20,448	 	 	 	2,222,738	 
	 
	 	 	1/2/2008	 	 	 	90199375	 	 	 	24,840	 	 	 	2,247,578	 
	 
	 	 	1/2/2008	 	 	 	90199377	 	 	 	186,300	 	 	 	2,433,878	 
	 
	 	 	1/2/2008	 	 	 	90199381	 	 	 	33,120	 	 	 	2,466,998	 
	 
	 	 	1/2/2008	 	 	 	90199383	 	 	 	50,160	 	 	 	2,517,158	 
	 
	 	 	1/2/2008	 	 	 	90199385	 	 	 	47,232	 	 	 	2,564,390	 
	 
	 	 	1/2/2008	 	 	 	90199387	 	 	 	10,224	 	 	 	2,574,614	 
	 
	 	 	1/2/2008	 	 	 	90199390	 	 	 	21,912	 	 	 	2,596,526	 
	 
	 	 	1/2/2008	 	 	 	90199393	 	 	 	21,632	 	 	 	2,618,158	 
	 
	 	 	1/2/2008	 	 	 	90199448	 	 	 	10,816	 	 	 	2,628,974	 
	 
	 	 	1/2/2008	 	 	 	90199450	 	 	 	40,728	 	 	 	2,669,702	 
	 
	 	 	1/2/2008	 	 	 	90199452	 	 	 	11,688	 	 	 	2,681,390	 
	 
	 	 	1/2/2008	 	 	 	90199453	 	 	 	6,816	 	 	 	2,688,206	 
	 
	 	 	1/2/2008	 	 	 	90199455	 	 	 	163,752	 	 	 	2,851,958	 
	 
	 	 	1/2/2008	 	 	 	90199457	 	 	 	99,420	 	 	 	2,951,378	 
	 
	 	 	1/2/2008	 	 	 	90199459	 	 	 	10,224	 	 	 	2,961,602EX-10.1 FIRST AMENDMENT TO CREDIT AGREEMENT

Exhibit 10.1

FIRST AMENDMENT TO

CREDIT AGREEMENT AND PLEDGE AGREEMENT

     THIS FIRST AMENDMENT TO CREDIT AGREEMENT AND PLEDGE AGREEMENT (this “Amendment”) is made as of
the 28th day of March, 2008, between ATLANTIC AMERICAN CORPORATION, a Georgia corporation (the
“Borrower”) and WACHOVIA BANK, NATIONAL ASSOCIATION (the “Bank”).

Recitals:

     The Borrower and the Bank have entered into that certain Credit Agreement dated as of
December 22, 2006 (the “Credit Agreement”) and that certain Pledge Agreement of even date therewith
(the “Pledge Agreement”). The Borrower and the Bank wish to provide for an acknowledgement and
consent to the sale of certain subsidiaries of Borrower, and amend the Credit Agreement and Pledge
Agreement in certain respects, as hereinafter provided.

     NOW, THEREFORE, in consideration of the Recitals and the mutual promises contained herein and
for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Borrower and the Bank, intending to be legally bound hereby, agree as follows:

     SECTION 1. Recitals. The Recitals are incorporated herein by reference and shall be
deemed to be a part of this Amendment.

     SECTION 2. Definitions. Capitalized terms used herein which are not otherwise defined
herein shall have the respective meanings assigned to them in the Credit Agreement.

     SECTION 3. Acknowledgement and Consent.

     (a) The Borrower has requested that the Bank consent to, and subject to the conditions
stated herein, the Bank does hereby consent to, the Borrower’s consummation of the sale of
Georgia Casualty & Surety Company, Association Casualty Insurance Company and Association
Risk Management General Agency, Inc. as contemplated by that certain Stock Purchase
Agreement by and between Borrower and Columbia Mutual Insurance Company dated December 26,
2007 (the “SPA”).

     (b) The Bank agrees (i) to deliver to the escrow agent specified in writing by the
Borrower the stock certificates listed on Exhibit A attached hereto, such
certificates to be held in escrow for the Closing defined in Section 1.3 of the SPA;
provided that Bank shall not be required to deliver such certificates prior to the date that
is five (5) days prior to such Closing, and (ii) to release from escrow the stock
certificates listed on Exhibit A attached hereto upon the consummation of the
Closing.

 

 

     (c) The Bank’s consent herein is being given solely to facilitate the Closing defined
in Section 1.3 of SPA. If the Closing shall not occur by March 31, 2008, this Amendment
shall be null and void and of no force and effect, and Borrower shall immediately deliver
the stock certificates listed on Exhibit A to the Bank or its legal counsel.

     (d) The Bank expressly reserves all of its rights and remedies with respect to any
present or future Default arising under the Credit Agreement.

     SECTION 4. Amendments to Credit Agreement. The Credit Agreement is amended as set
forth in this Section 4.

     (a) Amendment to Section 1.01. The definition of “Pledge Agreement” is hereby
amended and restated in its entirety to read as follows:

     “Pledge Agreement” means the Pledge Agreement dated as of December,
2006 executed by the Borrower for the benefit of the Bank, as the same may
be amended, restated, supplemented or otherwise modified from time to time,
pursuant to which the Borrower (a) has pledged to the Bank the stock or
other equity interests it holds in the following Subsidiaries: American
Southern Insurance Company and Bankers Fidelity Life Insurance Company and
(b) agrees to pledge any stock or equity interests it obtains in the future
with respect to existing Subsidiaries or Persons which become Subsidiaries,
as more fully set forth therein.

     (b) Amendments to Section 6.01. Substitute (h) and (o) of Section 6.01 of the
Credit Agreement hereby amended and restated in their entirety to read as follows:

     (n) Bankers Fidelity Life Insurance Company, American Southern
Insurance Company or any Subsidiary of American Southern Insurance Company
shall fail to maintain an AM Best rating of “B+” or better; or

     (o) the Borrower shall at any time or times and for any reason cease to
own (either directly or indirectly through a Wholly Owned Subsidiary) at
least 80% of the Capital Stock and other ownership interests of each of
American Southern Insurance Company and Bankers Fidelity Life Insurance
Company; or

     (c) Amendment to Schedule 4.08A. Schedule 4.08A of the Credit Agreement is
hereby amended and restated in its entirety to read as follows:

- 2 -

 

SCHEDULE 4.08A

EXISTING INSURANCE SUBSIDIARIES

	 	 	 
	 	 	Jurisdiction of
	Name of Subsidiary	 	Incorporation
	American Southern Insurance Company

	 	Kansas
	 
	 	 
	American Safety Insurance Company

	 	Georgia
	 
	 	 
	Bankers Fidelity Life Insurance Company

	 	Georgia

     SECTION 5. Amendments to Pledge Agreement. The Pledge Agreement is hereby amended as
set forth in this Section 5.

     (a) Amendment to Schedule 1. Schedule 1 to the Pledge Agreement is hereby
amended and restated in its entirety to read as follows:

SCHEDULE 1

	 	 	 	 	 	 	 
	 	 	Number of	 	Class
	 	 	Shares of	 	of
	Subsidiary	 	Stock	 	Stock
	American Southern Insurance Company

	 	 	300,000	 	 	Capital
	 
	 	 	 	 	 	 
	Bankers Fidelity Life Insurance Company

	 	 	2,500,000	 	 	Capital

     (b) Amendment to Exhibit A. Exhibit A to the Pledge Agreement is hereby
amended and restated in its entirety to read as follows:

EXHIBIT A

Insurance Subsidiaries of Atlantic American Corporation

     American Safety Insurance Company, a Georgia domestic insurance company

     American Southern Insurance Company, a Kansas domestic insurance company

     Bankers Fidelity Life Insurance Company, a Georgia domestic insurance corporation

     SECTION 6. No Other Amendment. Except for the amendments set forth above, the text of
the Credit Agreement and the Pledge Agreement shall remain unchanged and in full force and effect.
This Amendment is not intended to effect, nor shall it be construed as, a novation. The Credit
Agreement and this Amendment shall be construed together as a single instrument and any reference
to the “Agreement” or any other defined term for the Credit Agreement in the Credit Agreement, the
Loan Documents or any certificate, instrument or other document delivered pursuant thereto shall
mean the Credit Agreement as amended hereby and as it may be

- 3 -

 

amended, supplemented or otherwise modified hereafter. The Pledge Agreement and this
Amendment shall be construed together as a single instrument and any reference to the “Agreement”
or any other defined term for the Pledge Agreement in the Pledge Agreement, the Loan Documents or
any certificate, instrument or other document delivered pursuant thereto shall mean the Pledge
Agreement as amended hereby and as it may be amended, supplemented or otherwise modified hereafter.
Nothing herein contained shall waive, annul, vary or affect any provision, condition, covenant or
agreement contained in the Credit Agreement or Pledge Agreement, except as herein amended, or any
of the other Loan Documents nor affect nor impair any rights, powers or remedies under the Credit
Agreement or Pledge Agreement, as hereby amended or any of the other Loan Documents. The Bank does
hereby reserve all of its rights and remedies against all parties who may be or may hereafter
become secondarily liable for the repayment of the Obligations. The Borrower promises and agrees
to perform all of the requirements, conditions, agreements and obligations under the terms of the
Credit Agreement and Pledge Agreement, as hereby amended, and the other Loan Documents. The Credit
Agreement and Pledge Agreement, as amended, and the other Loan Documents are hereby ratified and
affirmed. The Borrower hereby expressly agrees that the Credit Agreement and Pledge Agreement, as
amended, and the other Loan Documents are in full force and effect.

     SECTION 7. Representations and Warranties. The Borrower hereby represents and
warrants in favor of the Bank as follows:

     (a) The representations and warranties of the Borrower contained in Article IV of the
Credit Agreement are true in all material respects on and as of the date hereof (except to
the extent they are made specifically with reference to some other date, in which case they
are true and correct as of such other date);

     (b) After giving effect to this Amendment, no Default or Event of Default under the
Credit Agreement, the Pledge Agreement or any other Loan Document has occurred and is
continuing on the date hereof;

     (c) The Borrower has the corporate power and authority to enter into this Amendment and
to do all acts and things as are required or contemplated hereunder to be done, observed and
performed by it;

     (d) This Amendment has been duly authorized, validly executed and delivered by one or
more authorized officers of the Borrower, and this Amendment, the Credit Agreement and
Pledge Agreement, as amended hereby, constitute the legal, valid and binding obligations of
the Borrower enforceable against it in accordance with their terms; and

     (e) The execution and delivery of this Amendment and the Borrower’s performance
hereunder and under the Credit Agreement and Pledge Agreement as amended hereby do not and
will not require the consent or approval of any regulatory authority or governmental
authority or agency having jurisdiction over the Borrower other than those which have
already been obtained or given, nor be in contravention of or in conflict with the Articles
of Incorporation or Bylaws of the Borrower, or the provision of any statute, or any
judgment, order or indenture, instrument, agreement or undertaking,

- 4 -

 

to which the Borrower is a party or by which its assets or properties are or may become
bound.

     SECTION 8. Conditions to Effectiveness. The effectiveness of this Amendment and the
obligations of the Bank hereunder are subject to the following conditions, unless the Bank waives
such conditions:

     (a) receipt by the Bank from the Borrower of a duly executed counterpart of this
Amendment; and

     (b) the fact that the representations and warranties of the Borrower contained in
Section 7 of this Amendment shall be true on and as of the date hereof.

     SECTION 9. Counterparts. This Amendment may be executed in multiple counterparts,
each of which shall be deemed to be an original and all of which, taken together, shall constitute
one and the same agreement.

     SECTION 10. Governing Law. This Amendment shall be construed in accordance with and
governed by the laws of the State of Georgia.

     SECTION 11. Attorney’s Fees and Expenses. The Borrower hereby agrees that all
attorney’s fees and expenses incurred by the Bank in connection with its review of the SPA and the
preparation, negotiation and execution of this Amendment shall be payable by the Borrower.

[Remainder of page intentionally left blank]

- 5 -

 

     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed under
seal by their respective authorized officers as of the day and year first above written.

	 	 	 	 	 	 	 	 	 	 	 
	Attest:	 	 	 	ATLANTIC AMERICAN CORPORATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	/s/ Janie L. Ryan
	 	 	 	By:
	 	/s/ John G. Sample, Jr.	 	 
	 	 	 	 	 	 	   	 	 
	Its:

	 	Secretary
	 	 	 	 	 	Name: John G. Sample, Jr.	 	 
	 

	 	[CORPORATE SEAL]
	 	 	 	 	 	Title: Senior Vice President & CFO	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	/s/ Ron Edwards
 

Name: Ron Edwards
	 	 
	 

	 	 	 	 	 	 	 	Title: SVP/Commercial Risk Management	 	 

- 6 -

 

EXHIBIT A

	 	 	 	 	 	 	 	 	 
	Company	 	Stock Certificate No.	 	Number of Shares
	Georgia Casualty & Surety Company
	 	 	8234	 	 	 	2,000,000	 
	 
	 	 	 	 	 	 	 	 
	Association Casualty Insurance
Company
	 	 	424	 	 	 	525,000	 
	 
	 	 	 	 	 	 	 	 
	Association Casualty Insurance
Company
	 	 	425	 	 	 	38,835	 
	 
	 	 	 	 	 	 	 	 
	Association Casualty Insurance
Company
	 	 	426	 	 	 	225,000	 
	 
	 	 	 	 	 	 	 	 
	Association Casualty Insurance
Company
	 	 	427	 	 	 	111,165

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