Document:

Exhibit 10.1

 

APPROVAL

 

Reference is made to the Investment Agreement, dated as of February 28,
2008 (the “Agreement”), between Assured Guaranty Ltd., a Bermuda company (the “Company”),
and WLR Recovery Fund IV, L.P., a Delaware limited partnership.  Capitalized terms not otherwise defined
herein are used with the meanings ascribed to such terms in the Agreement.

 

The Company hereby agrees that,
notwithstanding the limitation contained in Section 5.2 of the Agreement,
the WLR Funds may purchase up to 5,000,000 additional Common Shares (the “Additional
Shares”) in open market transactions from time to time.  The granting of this approval shall not be
deemed an acknowledgment by the Company that as of the date hereof or as of any
other date any such purchase would be permitted under the Company’s policy
statement on Restrictions on Trading in Assured Guaranty Securities.

 

The WLR Funds, on behalf of
themselves and their Affiliates that acquire Additional Shares, hereby
acknowledge and agree that all of the Additional Shares purchased by them will
be “Controlled Shares” within the meaning of the Company’s Bye-Laws and that
all such Additional Shares shall be subject to the voting agreements set forth
in Section 5.1 of the Agreement and the transfer restrictions in Section 5.3
of the Agreement, in each case, to the same extent as if such Additional Shares
were Securities purchased under the Agreement. 
The Company agrees that, within 60 days after being notified by the WLR
Funds that they have purchased all Additional Shares or that they do not intend
to purchase any more Additional Shares, it shall amend the Registration
Statement to add any such Additional Shares and that such Additional Shares
shall be deemed Registrable Securities under the Agreement.

 

This approval is limited to the
matters set forth herein and shall not be deemed a waiver of any of the parties
rights or obligations under the Agreement and the parties agree that the
Agreement remains in full force and effect.

 

	
  September 16, 2008

  	
  ASSURED GUARANTY LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT B. MILLS

  
	
   

  	
   

  	
  Name: Robert B. Mills

  
	
   

  	
   

  	
  Title: Chief Financial Officer

  

 

 

Agreed and accepted:

 

	
  WLR RECOVERY FUND IV, L.P.

  
	
   

  
	
  By:

  	
  WLR Recovery Associates IV LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
  By: WL Ross Group, L.P.,

  
	
   

  	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  	
   

  	
  By: El Vedado, LLC,

  
	
   

  	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ WILBUR L. ROSS, JR.

  	
   

  
	
   

  	
  Name: Wilbur L. Ross, Jr.

  
	
   

  	
  Title: Managing Member 

  
	
   

  	
   

  
	
  WLR RECOVERY FUND III, L.P.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  WLR Recovery Associates III LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
  By:

  	
  WL Ross Group, L.P.,

  
	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  	
  By: El Vedado, LLC,

  
	
   

  	
   

  	
  its General
  Partner

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ WILBUR L. ROSS, JR.

  	
   

  
	
   

  	
  Name: Wilbur L. Ross, Jr.

  
	
   

  	
  Title: Managing Member

  
	
   

  	
   

  	
   

  
	
  WLR IV PARALLEL ESC, L.P.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  INVESCO WLR IV Associates LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
  By: INVESCO Private Capital, Inc.,

  
	
   

  	
   

  	
  its Managing
  Member

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ WILBUR L. ROSS, JR.

  	
   

  
	
   

  	
  Name: Wilbur L. Ross, Jr.

  
	
   

  	
  Title: Managing Member

  
						

 

2

 

	
  WLR AGO CO-INVEST, L.P.

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  WLR Recovery Associates IV LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
  By: WL Ross Group, L.P.,

  
	
   

  	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  	
   

  	
  By: El Vedado, LLC,

  
	
   

  	
   

  	
    its
  General Partner

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ WILBUR L. ROSS, JR.

  	
   

  
	
   

  	
  Name: Wilbur L. Ross, Jr.

  
	
   

  	
  Title: Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  WLR/GS MASTER CO-INVESTMENT, L.P.

  
	
   

  	
   

  	
   

  
	
  By:

  	
  WLR Master Co-Investment GP LLC,

  
	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
  By: WL Ross Group, L.P.,

  
	
   

  	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  	
   

  	
  By: El Vedado, LLC,

  
	
   

  	
   

  	
    its
  General Partner

  
	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ WILBUR L. ROSS, JR.

  	
   

  
	
   

  	
  Name: Wilbur L. Ross, Jr.

  
	
   

  	
  Title: Managing Member

  
					

 

3Exhibit 10.1

 

PROMISSORY NOTE

 

	
  Principal

  	
   

  	
  Loan Date

  	
   

  	
  Maturity

  	
   

  	
  Loan No

  	
   

  	
  Call / Coll

  	
   

  	
  Account

  	
   

  	
  Officer

  	
   

  	
  Initials

  	
   

  
	
  $

  	
  5,000,000.00

  	
   

  	
  09-16-2008

  	
   

  	
  09-16-2009

  	
   

  	
  17003864

  	
   

  	
  4A / 466

  	
   

  	
   

  	
   

  	
  SBV

  	
   

  	
   

  	
   

  
																	

 

References in the boxes above are for Lender’s use only and do not limit
the applicability of this document to any particular loan or item.  Any item above containing “***” has been
omitted due to text length limitations.

 

	
  Borrower:

  	
   

  	
  TGC
  Industries, Inc.

  	
   

  	
  Lender:

  	
   

  	
  Sovereign Bank

  
	
   

  	
   

  	
  101 E. Park Blvd. Ste955

  	
   

  	
   

  	
   

  	
  Preston Center

  
	
   

  	
   

  	
  Plano, TX 75074

  	
   

  	
   

  	
   

  	
  6060 Sherry Lane

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Dallas, TX 75225

  

 

	
  Principal Amount: $5,000,000.00

  	
  Date of Note: September 16, 2008

  

 

PROMISE TO PAY. TGC Industries, Inc. (“Borrower”) promises to pay to Sovereign Bank (“Lender”), or order, in lawful money of the
United States
of America, the principal
amount of Five Million & 00/100 Dollars ($5,000,000.00) or so much as may be outstanding, together with
interest on the unpaid outstanding principal balance of each advance. Interest
shall be calculated from the date of
each
advance until
repayment of each advance or maturity, whichever occurs first.

 

CHOICE OF USURY CEILING AND INTEREST RATE. The interest rate on this Note has been
implemented under the “Weekly Ceiling” as referred to in Sections 303.002 and
303.003 of the Texas Finance Code. The terms, including the rate, or  index,
formula, or provision of law used to compute the rate on the Note, will be
subject to revision as to current and future balances, from time to time by
notice from Lender in compliance with Section 303.103 of the Texas Finance
Code.

 

PAYMENT. Borrower will pay this loan in one payment of all
outstanding principal plus all accrued unpaid interest on September 16, 2009. In addition, Borrower will pay regular monthly payments of all accrued
unpaid interest due as of each payment date, beginning October 16, 2008,
with all subsequent interest payments to be due on the same day of each month after that. Unless
otherwise agreed or required by applicable law, payments will be applied first to any accrued unpaid interest; and then to principal.  Borrower will pay Lender at Lender’s address
shown above or at such other place as Lender may designate in writing.

 

VARIABLE INTEREST RATE. The interest rate on this Note is subject to change from time to time
based on changes in an independent index which is the Wall Street Journal Prime
as quoted in the Southwestern Addition of Wall Street Journal the “Index”). The
Index is not necessarily the lowest rate charged by Lender on its loans. If the
Index becomes unavailable during the term of this loan, Lender may designate a
substitute index after notifying Borrower. Lender will tell Borrower the
current Index rate upon Borrower’s request. The interest rate change will not
occur more often than each day. Borrower understands that Lender may make loans
based on other rates as well. The Index currently  is 5.000% per
annum.  The interest rate to be applied prior
to maturity to the unpaid principal balance during this Note will be calculated
as described in the “INTEREST CALCULATION METHOD” paragraph using a rate equal
to the index, resulting in an initial rate of 5.000% per annum based on a year
of 360 days.   NOTICE: Under no
circumstances will the interest rate on this Note be more  than the
maximum rate allowed by applicable law. For purposes of this Note, the “maximum
rate allowed by applicable law” means the greater of (A) the maximum rate
of interest permitted under federal or other law applicable to the indebtedness
evidenced by this Note, or (B) the “Weekly Ceiling” as referred to in
Sections 303.002 and 303.003 of the Texas Finance Code.

 

INTEREST CALCULATION METHOD.  Interest on this note is computed on a
365/360 basis; that is, by applying the ratio of the interest rate over a year
of 360 days, multiplied by the outstanding principal balance, multiplied by the
actual number of days the principal balance is outstanding, unless such
calculation would result in a usurious rate, in which case interest shall be
calculated on a per diem basis of a year of 365 or 366 days, as the case may
be.  All interest payable under this Note
is computed using this method.

 

PREPAYMENT.
Borrower may pay without penalty all or a portion of the amount owed earlier
than it is due. Prepayment in full shall consist of payment of the remaining
unpaid principal balance together with all accrued and unpaid interest and all
other amounts, costs and expenses for which Borrower is responsible under this
Note or any other agreement with Lender pertaining to this loan, and in no
event will Borrower ever be required to pay any unearned interest. Early
payments will not, unless agreed to by Lender in writing, relieve Borrower of
Borrower’s obligation to continue to make payments of accrued unpaid interest.
Rather, early payments will reduce the principal balance due. Borrower agrees
not to send Lender payments marked “paid in full”, “without recourse”, or
similar language. If Borrower sends such a payment, Lender may accept it
without losing any of Lender’s rights under this Note, and Borrower will remain
obligated to pay any further amount owed to Lender. All written 

 

 

communications
concerning disputed amounts, including any check or other payment instrument
that indicates that the payment constitutes “payment in full” of the amount
owed or that is tendered with other conditions or limitations or as full
satisfaction of a disputed amount must be mailed or delivered to: Sovereign
Bank, 17950 Preston Road, Suite 500 Dallas, TX 75252.

 

POST MATURITY RATE. The Post Maturity Rate on this Note is the
lesser of (A) the maximum rate allowed by law or (B) the interest
rate under this Note. Borrower will pay interest on all sums due after final
maturity, whether by acceleration or otherwise, at that rate.

 

DEFAULT. Each of the following shall constitute an
event of default (“Event of Default”) under this Note:

 

Payment Default.
Borrower fails to make any payment when due under this Note.

 

Other Defaults.
Borrower fails to comply with or to perform any other term, obligation,
covenant or condition contained in this Note or in any of the related documents
or to comply with or to perform any term, obligation, covenant or condition
contained in any other agreement between Lender and Borrower.

 

Default in Favor of Third
Parties. Borrower or any
Grantor defaults under any loan, extension of credit, security agreement,
purchase or sales agreement, or any other agreement, in favor of any other
creditor or person that may materially affect any of Borrower’s property or
Borrower’s ability to repay this Note or perform Borrower’s obligations under
this Note or any of the related documents.

 

False Statements. Any warranty, representation or statement made or furnished to Lender
by Borrower or on Borrower’s behalf under this Note or the related documents is
false or misleading in any material respect, either now or at the time made or
furnished or becomes false or misleading at any time thereafter.

 

Insolvency.
The dissolution or termination of Borrower’s existence as a going business, the
insolvency of Borrower, the appointment of a receiver for any part of Borrower’s
property, any assignment for the benefit of creditors, any type of creditor
workout, or the commencement of any proceeding under any bankruptcy or
insolvency laws by or against Borrower.

 

Creditor or Forfeiture Proceedings.  Commencement of foreclosure or forfeiture
proceedings, whether by judicial proceeding, self-help, repossession or any
other method, by any creditor of Borrower or by any governmental agency against
any collateral securing the loan. This includes a garnishment of any of
Borrower’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower
as to the validity or reasonableness of the claim which is the basis of the
creditor or forfeiture proceeding and if Borrower gives Lender written notice
of the creditor or forfeiture proceeding and deposits with Lender monies or a
surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate

 

2

 

reserve
or bond for the dispute.

 

Events Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor,
endorser, surety, or accommodation party of any of the indebtedness or any
guarantor, endorser, surety, or accommodation party dies or becomes
incompetent, or revokes or disputes the validity of, or liability under, any
guaranty of the indebtedness evidenced by this Note.

 

Change In Ownership. Any change in ownership of twenty-five percent (25%) or more of the
common stock of Borrower.

 

Adverse Change.
A material adverse change occurs in Borrower’s financial condition, or Lender
believes the prospect of payment or performance of this Note is impaired.

 

Insecurity.
Lender in good faith believes itself insecure.

 

LENDER’S
RIGHTS. Upon default,
Lender may declare the entire indebtedness, including the unpaid principal
balance under this Note, all accrued unpaid interest, and all other amounts,
costs and expenses for which Borrower is responsible under this Note or any other agreement with Lender
pertaining to this loan, immediately due, without notice, and then Borrower
will pay that amount.

 

ATTORNEYS’ FEES; EXPENSES. Lender may hire an attorney to help collect
this Note if Borrower does not pay, and Borrower will pay Lender’s reasonable
attorneys’ fees. Borrower also will pay Lender all other amounts Lender
actually incurs as court costs, lawful fees for filing, recording, releasing to
any public office any instrument securing this Note; the reasonable cost
actually expended for repossessing, storing, preparing for sale, and selling
any security; and fees for noting a lien on or transferring a certificate of
title to any motor vehicle offered as security for this Note, or premiums or
identifiable charges received in connection with the sale of authorized
insurance.

 

GOVERNING LAW. This Note will be governed by federal law
applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Texas without regard
to its conflicts of law provisions. This Note has been accepted by Lender in the State
of Texas.

 

CHOICE
OF VENUE. If there is
a lawsuit, and if the transaction evidenced by this Note occurred in Dallas
County, Borrower agrees upon Lender’s request to submit to the jurisdiction of
the courts of Dallas County, State of
Texas.

 

DISHONORED CHECK CHARGE. Borrower will pay a processing fee of $30.00
if any check given by Borrower to Lender as a payment on this loan is dishonored.

 

RIGHT OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of
setoff in all Borrower’s accounts with Lender (whether checking, savings, or
some other account).  This includes all
accounts Borrower holds jointly with someone else and all accounts Borrower may
open in the future. However, this does not include any IRA or Keogh accounts,
or any trust accounts for which setoff would be prohibited by law. Borrower
authorizes Lender, to the extent permitted by applicable law, to charge or
setoff all sums owing on the indebtedness against any and all such accounts.

 

COLLATERAL. Borrower acknowledges this Note is secured
by the following collateral described in the security instrument listed herein:
accounts and general intangibles described in a Commercial Security Agreement
dated September 16, 2008.

 

LINE OF
CREDIT. This Note
evidences a revolving line of credit. Advances under this Note, as well as
directions for payment from Borrower’s accounts, may be requested orally or in writing
by Borrower or by an authorized person. Lender may, but need not, require that
all oral requests be confirmed in writing. Borrower agrees to be liable for all
sums either: (A) advanced in accordance with the instructions of an
authorized person or (B) credited to any of Borrower’s accounts with
Lender. The unpaid principal balance owing on this Note at any time may be
evidenced by endorsements on this Note or  by Lender’s internal records,
including daily computer print-outs. Lender will have no obligation to advance
funds under this Note if: (A) Borrower or any guarantor is in default
under the terms of this Note or any agreement that Borrower or any guarantor
has with Lender, including any agreement made in connection with the signing of
this Note; (B) Borrower or any guarantor ceases doing business or is
insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit,
modify or revoke such guarantor’s guarantee of this Note or any other loan with
Lender; (D) Borrower has applied funds provided pursuant to this Note for
purposes other than those authorized by Lender; or (E) Lender in good
faith believes itself insecure. This revolving line of
credit shall not be
subject to Ch. 346 of the Texas Finance Code.

 

RENEWAL AND EXTENSION. This Note is given in renewal and extension
and not in novation of the following described indebtedness: The Promissory
Note dated April 26, 2005 in the amount of Five Hundred Thousand Dollars &
00/100 ($500,000.00), Renewed by the Promissory Note dated September 16,
2005 in the amount of Three Million Five Hundred Thousand Dollars &
00/100 ($3,500,000.00), Further renewed by the Promissory Note dated September 16,
2006 in the amount of Five Million Dollars & 00/100 ($5,000,000.00),
Further renewed by the Promissory Note dated September 16, 2007 in the
amount of Five Million Dollars & 00/100 ($5,000,000.00), from Borrower
to Lender.

 

3

 

SUCCESSOR INTERESTS. The terms of this Note shall be binding upon
Borrower, and upon Borrower’s heirs, personal representatives, successors and
assigns, and shall inure to the benefit of Lender and its successors and
assigns.

 

GENERAL PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect
the rest of the Note. Borrower does not agree or intend to pay, and Lender does
not agree or intend to contract for, charge, collect, take, reserve or receive
(collectively referred to herein as “charge or collect”), any amount in the
nature of interest or in the nature of a fee for this loan, which would in any
way or event (including demand, prepayment, or acceleration) cause Lender to
charge or collect more for this loan than the maximum Lender would be permitted
to charge or collect by federal law or the law of the State of Texas (as
applicable). Any such excess interest or unauthorized fee shall, instead of
anything stated to the contrary, be applied first to reduce the principal
balance of this loan, and when the principal has been paid in full, be refunded
to Borrower. The right to accelerate maturity of sums due under this Note does
not include the right to accelerate any interest which has not otherwise
accrued on the date of such acceleration, and Lender does not intend to charge
or collect any unearned interest in the event of acceleration. All sums paid or
agreed to be paid to Lender for the use, forbearance or detention of sums due
hereunder shall, to the extent permitted by applicable law, be amortized,
prorated, allocated and spread throughout the full term of the loan evidenced
by this Note until payment in full so that the rate or amount of interest on
account of the loan evidenced hereby does not exceed the applicable usury
ceiling. Lender may delay or forgo enforcing any of its rights or remedies
under this Note without losing them. Borrower and any other person who signs,
guarantees or endorses this Note, to the extent allowed by law, waive
presentment, demand for payment, notice of dishonor, notice of intent to
accelerate the maturity of this Note, and notice of acceleration of the
maturity of this Note. Upon any change in the terms of this Note, and unless
otherwise expressly stated in writing, no party who signs this Note, whether as
maker, guarantor, accommodation maker or endorser, shall be released from liability.
All such parties agree that Lender may renew or extend (repeatedly and for any
length of time) this loan or release any party or guarantor or collateral; or
impair, fail to realize upon or perfect Lender’s security interest in the
collateral without the consent of or notice to anyone. All such parties also
agree that Lender may modify this loan without the consent of or notice to
anyone other than the party with whom the modification is made. The obligations
under this Note are joint and several.

 

4

 

PRIOR TO SIGNING THIS NOTE, BORROWER READ AND
UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST
RATE PROVISIONS. BORROWER AGREES TO THE TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED
COPY OF THIS PROMISSORY NOTE.

 

	
  BORROWER:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  TGC
  INDUSTRIES, INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Wayne
  Whitener, President & CEO of TGC 

  	
   

  
	
   

  	
  Industries, Inc.

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  LENDER:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  SOVEREIGN
  BANK

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  X

  	
   

  	 

	
   

  	
  Authorized
  Signer

  	 

	
   

  	
   

  
				

 

LASER PRO Lending. Ver. 5.30.10.001 Copr. Harland Financial Solutions, Inc.
1997, 2007.

All Rights Reserved. TX LACFI\PL\D2G FC TR-1443

 

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00147-of-00352.parquet"}]]