Document:

EXHIBIT 10.2

 

AMENDED AND RESTATED

 

INTERCOMPANY LIQUIDITY
AGREEMENT

 

This
Amended and Restated Intercompany Liquidity Agreement (“Agreement”) amends and
restates the Intercompany Liquidity Agreement between Allstate Insurance
Company (“AIC”), an Illinois domiciled property and casualty insurance company
and Allstate Life Insurance Company (“ALIC”), an Illinois domiciled life
insurance company, dated January 1, 2008, to add The Allstate Corporation
(“Allcorp”) as a party and make certain other minor changes.

 

This
Agreement among Allcorp, AIC and ALIC shall be effective as of May 8,
2008.  To the extent and only to the
extent, a direct or indirect wholly-owned subsidiary of Allcorp (an “Allstate
Affiliate”) is added to this agreement pursuant to the terms of Sections 1 and
5 below and a signed Addendum substantially in the form of Exhibit B,
such Allstate Affiliate shall become a party to this Agreement (each such
properly added Allstate Affiliate, together with Allcorp, AIC and ALIC, shall
each be a “Party”).

 

The
purpose of this Agreement is to provide a mechanism under which short-term
advances of funds may be made between the Parties for liquidity and other
general corporate purposes.  This
Agreement does not establish a commitment to advance funds on the part of any
Party.  In consideration of the following
agreements and covenants and other good and valuable consideration, the receipt
and sufficiency of which are acknowledged, the Parties agree as follows:

 

1.               Roles of the Parties and
Limits on Outstanding Advances:

 

Subject to the terms and conditions of this
Agreement, from time to time during the term of this Agreement one or more
Parties may make and have outstanding advances to one or more of the other
Parties to this Agreement.  The term “Lender”
shall refer to a Party that is making or has made a currently outstanding
advance.  The term “Borrower” shall refer
to a Party that is receiving or has received a currently outstanding
advance.  From time to time in its
capacity as a Lender or a Borrower or both, a Party may have multiple advances
outstanding with one or more other Parties. 
However, at no time shall a Party, in its role as a Lender, have
advances outstanding to one or more Parties in an aggregate amount in excess of
its “Lender Maximum.”  In addition, at no
time shall a Party, in its role as a Borrower, have advances outstanding from
one or more Parties in an aggregate amount in excess of its “Borrower Maximum.”  In determining the amount of outstanding
advances with respect to a Party, the gross amount of outstanding advances will
be used, with no netting or offsetting permitted.  For Allcorp, AIC and ALIC these maximums
shall be equal to the following amounts:

 

	
   

  	
   

  	
  Lender Maximum

  	
   

  	
  Borrower Maximum

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Allcorp

  	
   

  	
  $

  	
  1,000,000,000

  	
   

  	
  $

  	
  0

  	
   

  
	
  AIC

  	
   

  	
  $

  	
  1,000,000,000

  	
   

  	
  $

  	
  1,000,000,000

  	
   

  
	
  ALIC

  	
   

  	
  $

  	
  1,000,000,000

  	
   

  	
  $

  	
  1,000,000,000

  	
   

  

 

Allcorp shall serve only as a Lender.  The Lender Maximum and Borrower Maximum for
any Allstate Affiliate added as a Party shall be specified in the Addendum that
adds such Allstate Affiliate as a Party, subject to receipt of any required
regulatory approvals.

 

2.               Terms for Advances:

 

The terms of each advance shall be as agreed upon
between the Parties to such advance pursuant to an accepted borrowing request
as defined below, provided that the following shall apply to all advances:

 

 

 

a)              Each advance shall have a
specified maturity date that is less than or equal to 364 days from the date of
the advance.

 

b)             Advances shall be payable
upon demand prior to their maturity date if a written request is made by the
Lender and delivered to the Borrower at least ten business days prior to the
date payment is demanded.

 

c)              At any time and from time to
time, the Borrower shall have the right to make one or more prepayments of the
outstanding principal balance of an advance without penalty and may designate
which advance is being prepaid if more than one advance is outstanding,
provided that any such repayment includes all accrued interest on the amount
prepaid as of the repayment date.

 

3.               Interest:

 

Each advance shall bear interest on the outstanding
principal amount thereof, for each day from and including the date such advance
is made to but not including the date repaid at a rate equal to the rate
established in the accepted borrowing request as defined below applicable to
such advance, provided that such rate shall be equal to or greater than the
interest rate on 30-day commercial paper issued by Allcorp on the date the
advance is made.   The rate on each
advance shall be adjusted on the first day of each month thereafter, for so
long as the advance remains outstanding, to Allcorp’s then 30-day commercial
paper rate plus the spread agreed upon in the accepted borrowing request.  Unless otherwise agreed to in the accepted
borrowing request, such accrued interest shall be payable at the maturity of
each such advance.  In the event that a
30-day commercial paper rate for Allcorp is not available, the Parties to a
borrowing request shall agree on a comparable substitute.  If an advance is outstanding and such Parties
cannot agree, the advance shall be promptly repaid.

 

4.               Procedure for Requesting an
Advance and Repayment of Advances:

 

Any Party may request an advance from any other
Party.  In no circumstance shall a Party
be obligated to make an advance under the terms of this Agreement.  The decision to make an advance shall be at
the sole discretion of the Party being asked to make the advance.

 

Upon the mutual agreement of any two Parties to the
terms of an advance, the proposed Borrower shall submit a written borrowing
request, substantially in the form of Exhibit A, to the proposed
Lender.  The borrowing request shall
contain the terms agreed to, be signed by two Authorized Officers, as defined
below, of the Borrower and signed as accepted by two Authorized Officers of the
Lender, provided, however, that, if after making such an advance, a Party will
have more than $500,000,000 in outstanding advances either as a Lender or a
Borrower, then one of the two authorized officers signing the borrowing request
for such Party must be that Party’s Chief Financial Officer, President or Chief
Executive Officer (or officers holding substantially equivalent titles if that
Party does not have a Chief Financial Officer, President or Chief Executive
Officer).  For purposes of this
Agreement, the term “Authorized Officer”, with respect to a Party, shall mean
an officer of that Party holding one or more of the following titles, or a
substantially equivalent title if such Party does not have an officer holding
such title:  Chairman of the Board, Chief
Executive Officer, President, Chief Financial Officer, Controller, Treasurer or
Assistant Treasurer.

 

No separate promissory note shall be required.  The date of the advance, amount, interest
rate and maturity date shall be recorded in the books and records of the Lender
and shall be prima facie evidence of the existence, amount and terms of the
advance, absent manifest error, provided the failure to so record or any error
therein shall not in any manner affect the obligation of a Borrower to repay an
advance in accordance with its terms as stated on the accepted borrowing
request and the terms of this Agreement.

 

Each
Party, to the extent it receives an advance as a Borrower, hereby
unconditionally promises to pay to its Lender the then unpaid principal amount
of each such advance together with all accrued interest on such advance in the
amounts, at the times and in the manner set forth in this Agreement and the
accepted 

 

2

 

borrowing
request, and, in any event, by no later than its maturity date as specified in
the accepted borrowing request.

 

If the proposed Lender or Borrower is an Illinois
domiciled insurance company, such entity shall provide the Illinois Division of
Insurance with notice of the proposed advance five business days prior to the
date of the advance.  Such notice may be
made by e-mail and shall include the amount of the advance, the parties to the
advance, the proposed date of the advance and the purpose of or reason for the
advance.

 

5.               Procedure for Adding
Additional Parties:

 

The Parties agree that additional Allstate
Affiliates may be added to this Agreement from time to time provided:

 

a)              an Addendum, substantially
in the form of Exhibit B, is signed by the Allstate Affiliate and
AIC on behalf of itself and the other Parties to this agreement after all
required corporate authorizations and regulatory approvals for such Allstate
Affiliate and AIC have been obtained;

 

b)             the Addendum specifies the
effective date of the Agreement for such Allstate Affiliate; and

 

c)              the Addendum specifies the
Lender Maximum and Borrower Maximum, in accordance with Section 1 above,
for such Allstate Affiliate.

 

For informational purposes, each newly added
Allstate Affiliate will be added to the Cumulative List of All Parties on Schedule
5.

 

6.               Term and Termination:

 

This Agreement shall remain in effect for one year
from the date first specified above and shall be automatically renewed for
subsequent one-year terms unless sooner terminated by the Parties.  Any one Party may cancel its participation in
this Agreement provided it is not a Party to any outstanding advances, either
as a Lender or a Borrower, by giving written notice to AIC.  This Agreement shall terminate automatically
as to any Party immediately upon such Party ceasing to be a direct or indirect
wholly-owned subsidiary of Allcorp, in which case any outstanding advances
involving such Party, shall immediately become due and payable.

 

7.               Miscellaneous Provisions:

 

a)              This Agreement shall be
governed by and construed in accordance with the internal laws of the State of
Illinois.

 

b)             This Agreement may be
amended or modified only by written agreement executed by the Parties to be
bound by such amendment.  An amendment to
increase or decrease a Party’s Lender Maximum or Borrower Maximum need only be
signed by such Party provided all required corporate authorizations and
regulatory approvals have been received. 
In the event that a Party, in its role as a Lender, amends this
Agreement to reduce its Lender Maximum and the aggregate amount of its advances
outstanding to all other Parties exceeds such reduced Lender Maximum, Lender
shall promptly demand payment of such excess from such Borrowers as it selects
and such excess shall be payable within ten business days of the delivery of
such written demand. In the event that a Party, in its role as a Borrower,
amends this Agreement to reduce its Borrower Maximum and the aggregate amount
of its advances outstanding from all other Parties exceeds such reduced
Borrower Maximum, Borrower shall repay an amount of advances equal to such
excess within ten business days of such reduction.  In determining the amount of outstanding
advances with respect to a Party, the gross amount of outstanding advances will
be used, with no netting or offsetting permitted.

 

3

 

c)              No Party hereto shall assign
this Agreement or any rights or obligations hereunder without the prior written
consent of the other Parties affected and any such attempted assignment without
such prior written consent shall be void.

 

d)             If any part of this
Agreement shall be held invalid, illegal or unenforceable, the remaining parts
of the Agreement shall not be affected and shall continue with full force and
effect.

 

e)              The descriptive headings of
the various sections or parts of this Agreement are for convenience only and
shall not affect the meaning or construction of any of the provision hereof.

 

f)                This Agreement as amended or
supplemented from time to time constitutes the entire agreement between the
Parties hereto with respect to the subject matter hereof.  There are no understandings between the
Parties other than as expressed in this Agreement.

 

g)             This Agreement may be executed
in one or more counterparts and by different signatories on different
counterparts, each of which shall be deemed to be an original and all of which
when taken together shall be deemed to constitute a single document.

 

h)             This Agreement is solely for
the benefit of the Parties hereto.

 

 

IN
WITNESS WHEREOF, the Parties hereto have executed this Agreement.

 

 

	
  THE
  ALLSTATE CORPORATION

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Samuel H. Pilch

  	
   

  	
  By:

  	
  /s/
  Steven C. Verney

  
	
  Name:

  	
  Samuel H. Pilch

  	
   

  	
  Name:

  	
  Steven C. Verney

  
	
  Title:

  	
  Controller and Acting
  Vice President

  	
   

  	
  Title:

  	
  Treasurer

  
	
   

  	
  and Chief Financial Officer

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALLSTATE
  INSURANCE COMPANY

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Samuel H. Pilch

  	
   

  	
  By:

  	
  /s/
  Steven C. Verney

  
	
  Name:

  	
  Samuel H. Pilch

  	
   

  	
  Name:

  	
  Steven
  C. Verney

  
	
  Title:

  	
  Group Vice President
  and Controller

  	
   

  	
  Title:

  	
  Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALLSTATE LIFE INSURANCE
  COMPANY

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  James E. Hohmann

  	
   

  	
  By:

  	
  /s/
  John C. Pintozzi

  
	
  Name:

  	
  James E. Hohmann

  	
   

  	
  Name:

  	
  John
  C. Pintozzi

  
	
  Title:

  	
  President and Chief
  Executive Officer

  	
   

  	
  Title:

  	
  Senior
  Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Chief
  Financial Officer

  
							

 

4

 

Exhibit A

 

AMENDED AND RESTATED

INTERCOMPANY LIQUIDITY AGREEMENT

 

BORROWING REQUEST

 

[Request
Date]

 

[Lender]

Attention:  Treasurer

 

Re:  Request for Advance

 

Reference
is made to the Amended and Restated Intercompany Liquidity Agreement, dated
                                ,
2008, among The Allstate Corporation, Allstate Insurance Company, Allstate Life
Insurance Company and each such Allstate Affiliate as may have entered into the
Agreement pursuant to the terms of the Agreement.

 

Pursuant
to the Agreement and subject to the additional terms contained therein,
[Borrower] requests an advance of funds from [Lender] with the following terms:

 

Date of advance:

Principal amount:

Maturity date:

Initial interest rate
(including spread, if any, of       basis points
above the current interest rate on 30-day commercial paper issued by The
Allstate Corporation):

Interest rate payment
schedule if other than as specified in the Agreement:

Additional terms if other
than as specified in the Agreement:

 

The
advance of funds will be governed by the terms and conditions of the Agreement
and this accepted borrowing request in all respects.

 

If the proposed Lender or Borrower is an Illinois
domiciled insurance company, such entity shall provide the Illinois Division of
Insurance with notice of the proposed advance five business days prior to the
date of the advance.  Such notice may be
made by e-mail and shall include the amount of the advance, the parties to the
advance, the proposed date of the advance and the purpose of or reason for the
advance.

 

[BORROWER]

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  

 

Agreed
and Accepted:

 

[LENDER]

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  

 

5

 

Exhibit B

 

AMENDED AND RESTATED

INTERCOMPANY LIQUIDITY AGREEMENT

 

ADDENDUM TO ADD ALLSTATE
AFFILIATES

 

Reference
is made to the Amended and Restated Intercompany Liquidity Agreement, dated
                              ,
2008, among The Allstate Corporation, Allstate Insurance Company, Allstate Life
Insurance Company and each such Allstate Affiliate as may have entered into the
Agreement pursuant to the terms of the Agreement.

 

Pursuant
to its status as an Allstate Affiliate,
                                                                        
(the “New Party”) has requested that it be added as a Party to the
Agreement.  By executing this Addendum,
the New Party agrees to be bound by all the terms and conditions of the
Agreement.  Its status thereunder shall
not be inconsistent with the status of the other Parties to the Agreement.

 

The
New Party shall become a Party to the Agreement effective as of
     [Date]      
with the following Lender Maximum and Borrower Maximum, as such term are
defined in the Agreement:

 

	
  Lender Maximum

  	
   

  	
  $

  	
   

  	
   

  
	
  Borrower Maximum

  	
   

  	
  $

  	
   

  	
   

  

 

 

[NEW
PARTY]

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  

 

 

Agreed
and Accepted:

 

Allstate
Insurance Company agrees that the New Party shall become a Party to the
Agreement on the effective date listed above, subject to all of the terms and
conditions of the Agreement as if an original Party thereto, and, pursuant to Section 5
of the Agreement, Allstate Insurance Company executes this Addendum on its
behalf and on behalf of all of the other Parties to the Agreement.

 

ALLSTATE
INSURANCE COMPANY

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
   

  	
   

  

 

6

 

Schedule 5

 

AMENDED AND RESTATED

INTERCOMPANY LIQUIDITY AGREEMENT

 

CUMULATIVE LIST OF ALL PARTIES

 

 

	
   

  	
   

  	
  

  Party

  	
   

  	
  Date of

  Regulatory Approval

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  The
  Allstate Corporation

  	
   

  	
  IL — 5.07.08

  
	
  2.

  	
   

  	
  Allstate
  Insurance Company

  	
   

  	
  IL — 12.28.07 and
  Amendment 5.07.08

  
	
  3.

  	
   

  	
  Allstate
  Life Insurance Company

  	
   

  	
  IL — 12.28.07 and
  Amendment 5.07.08

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

7Exhibit 10.1

 

FIRST
AMENDMENT TO LEASE AGREEMENT

 

THIS FIRST AMENDMENT TO LEASE AGREEMENT is entered into as of May 12,
2008, by and among HPT TA PROPERTIES TRUST,
a Maryland real estate investment trust, and
HPT TA PROPERTIES LLC, a Maryland limited liability company
(collectively, “Landlord”), and TA LEASING LLC,
a Delaware limited liability company (“Tenant”).

 

W
I  T  N  E  S  S  E  T  H:

 

WHEREAS, Landlord and Tenant are parties to that certain
Lease Agreement, dated as of January 31, 2007 (the “Lease”); and

 

WHEREAS, Landlord and Tenant desire to amend the Lease to modify the
provisions relating to the funding of the Allowance (as defined therein);

 

NOW, THEREFORE,
in consideration of the mutual covenants herein contained and other good and
valuable consideration, the mutual receipt and legal sufficiency of which are
hereby acknowledged, Landlord and Tenant hereby agree as follows:

 

1.             Notwithstanding the provisions of Section 5.1.1(c) to
the contrary, and subject to the terms hereof, Tenant may at any time and from
time to time accelerate payment of all or any part of the remaining Allowance,
and therefore, request more than $25 million of the Allowance during any of the
remaining first five Lease Years.  In
calculating the amount(s) that may be drawn down by Tenant on an
accelerated disbursement, the amount of the Allowance requested shall be
discounted to its present value on the date the amount is paid to Tenant from
the date that the amount requested would have first been available to draw down
under the original Section 5.1.1(c), using a rate of interest equal to the
Disbursement Rate, and the remaining Allowance shall be reduced by the
undiscounted amount requested.  The
remaining Allowance shall be drawn down in the order originally available;
therefore the shortest discount period shall be used to determine the
discounted amount.  By way of example and
assuming that Tenant has already drawn down against the Allowance $25 million,
for each of Lease Years 2007 and 2008, if Tenant on June 1, 2008, requests
an accelerated draw down of $25 million, Tenant will be entitled to the
discounted value of $25 million on June 1, 2008 (assuming the payment is
made on the same day as the request), from January 1, 2009 (the date the
next $25 million tranche of the Allowance would have been available under the
original Section 5.1.1(c)), using a rate of interest equal to the
Disbursement Rate, and the remaining Allowance will be reduced by $25
million.  By way of further example, if
Tenant on September 1, 2008, requests an additional accelerated draw down
of $25 million, Tenant will be entitled to the discounted value of $25 million
on September 1, 2008 (assuming the payment is made on the same day as the
request), from January 1, 2010 (the date the next $25 million tranche of
the Allowance would have been available under the original Section 5.1.1(c)),
using a rate of interest equal to the Disbursement Rate, and the remaining
Allowance will be reduced by $25 million. 
The parties agree that, as of the date hereof, the remaining balance of
the Allowance is $75 million.

 

2.             As
amended hereby, the Lease is hereby ratified and confirmed.

 

 

IN WITNESS WHEREOF, Landlord and Tenant have
caused this First Amendment to Lease to be duly executed, as a sealed
instrument, as of the date first set forth above.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  HPT
  TA PROPERTIES TRUST

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  JOHN G. MURRAY

  
	
   

  	
   

  	
        John
  G. Murray

  
	
   

  	
   

  	
        President

  
	
   

  	
   

  	
   

  
	
   

  	
  HPT
  TA PROPERTIES LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  JOHN G. MURRAY

  
	
   

  	
   

  	
        John
  G. Murray

  
	
   

  	
   

  	
        President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TENANT:

  
	
   

  	
   

  
	
   

  	
  TA
  LEASING LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  THOMAS M. O’BRIEN

  
	
   

  	
   

  	
        Thomas
  M. O’Brien

  
	
   

  	
   

  	
        President

  

 

2

 

Reference
is made to the Guaranty of Tenant’s obligations under the Lease dated January 31,
2007 given by TRAVELCENTERS OF AMERICA LLC,
TRAVELCENTERS OF AMERICA HOLDING COMPANY LLC and TA OPERATING LLC,
each a Delaware limited liability company (the “Guarantors”) to
Landlord. The undersigned Guarantors hereby confirm that all references in such
Guaranty to the word “Lease” shall mean the Lease, as defined therein,
as amended by this First Amendment to Lease, and said Guarantors hereby
reaffirm the Guaranty.

 

 

	
   

  	
  TRAVELCENTERS OF AMERICA LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  THOMAS M. O’BRIEN

  
	
   

  	
   

  	
        Thomas
  M. O’Brien

  
	
   

  	
   

  	
        President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TRAVELCENTERS OF AMERICA HOLDING

  COMPANY LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  THOMAS M. O’BRIEN

  
	
   

  	
   

  	
        Thomas
  M. O’Brien

  
	
   

  	
   

  	
        President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  TA OPERATING LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
        /s/
  THOMAS M. O’BRIEN

  
	
   

  	
   

  	
        Thomas
  M. O’Brien

  
	
   

  	
   

  	
        President

  

 

3

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