Document:

Exhibit 10.01

 

[Letterhead of Fredrikson & Byron, P.A].

 

September 19, 2007

 

BY ELECTRONIC MAIL AND U.S. MAIL

 

	
  Seth G. Heald, Esq.

  	
   

  	
  SETTLEMENT COMMUNICATION

  

R. Scott Clarke, Esq.

Gregory E. Van Hoey, Esq.

Matthew C. Hicks, Esq.

P.O. Box 7238

Ben Franklin Station

Washington, D.C. 20044

 

Re: Xcel Energy Inc. v. United States (D. Minn.)

 

Gentlemen:

 

On behalf of Xcel Energy Inc., I am submitting the following offer in
compromise with regard to the past, current, and future tax liabilities of Xcel
and its affiliates (“Xcel”) relating to the income tax treatment of the PERQ II
and PERQ IV COLI plan policies for the tax years 1993 and forward:

 

The terms of the offer are:

 

1.     Xcel will pay the IRS the total amount of
$64,423,263 as follows:

 

A.    The IRS will retain the $32,230,069 of additional
tax and deficiency interest that Xcel has previously paid or is deemed to have
paid under this settlement for tax years 1993 and 1994.

 

B.    Xcel will pay the remaining $32,193,194 to the
United States on or before October 31, 2007.

 

2.            A.    The $32,230,069 of payments previously made or
deemed to have been made under this settlement for tax years 1993 and 1994 will
be allocated to tax and interest as follows:

 

i.      1993 and 1994 tax in the total amount of
$19,119,757; and

 

ii.     1993 and 1994 interest on that tax in the total
amount of $13,110,312;

 

 

B.    The
$32,193,194 remaining payment referenced in paragraph 1B will be allocated as
follows:

 

i.      Section 6662 penalties for 1993 and 1994 in the
total amount of $2,151,861;

 

ii.     Deficiency interest on the Section 6662 penalties
for 1993 and 1994 in the total amount of $4,135,751;

 

iii.    Tax for 1995 in the amount of $10,344,509; and

 

iv.    Deficiency interest on that tax for 1995 in the
amount of $15,561,073.

 

3.     Except as stated above, Xcel will be permitted to
claim the COLI-related interest expense deductions on its tax returns for
1995-2007.

 

4.     On or before October 31, 2007, Xcel will cause PSR
Investments, Inc. (“PSRI”), its wholly-owned subsidiary that currently owns the
policies, to give notice to Provident (now “Unum”) that it is surrendering all
of its PERQ II and PERQ IV policies whose insureds have not died as of the date
of such notice. Xcel will not claim a deduction for any policy loan interest
expense paid or accrued with respect to any PERQ II or PERQ IV policy for any
date following the date of the notice of surrender.

 

5.     The government will permit Xcel to surrender those
policies without recognition of any taxable gain. The government reserves its
right, however, to review and adjust the tax treatment of any item relating to
ownership of the policies, other than the amounts paid to PSRI in consideration
of its surrender of the policies. For purposes of this provision, the amounts
payable to PSRI pursuant to the PERQ IV mortality experience refund agreement
will not be treated as amounts paid to PSRI in consideration of its surrender
of the policies.

 

6.     Following written acceptance of this offer, the
IRS and Xcel will enter into a closing agreement, a copy of which is attached
as Exhibit A to this offer letter.

 

7.     Following written acceptance of this offer, the
IRS and/or the Department of Justice Tax Division will execute a stipulation of
dismissal with prejudice in the pending suit for refund in the federal District
Court for the District of Minnesota and such other documents as may be
necessary to conclude Xcel’s three pending Tax Court petitions, with each party
to bear its own costs, disbursements, and fees.

 

2

 

8.     If implementation of this settlement for any
taxable year results in a proposed refund or credit in an amount exceeding the
amount set forth in IRC Section 6405(a), no such refund or credit shall be made
until the expiration of 30 days from the date on which a report of such refund
or credit is made to the Joint Committee on Taxation, as required by Section
6405(a).

 

9.     The Department of Justice and/or IRS will provide
Xcel with periodic status reports regarding their review of this offer.

 

Thank you for your assistance.

 

 

	
   

  	
  Very truly yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ Steven Z. Kaplan

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Steven Z. Kaplan

  	
   

  

 

Enclosure

	
  cc:

  	
   

  	
  James J. Duevel w/enclosures

  
	
   

  	
   

  	
  James L. Altman, Esq. w/enclosures

  
	
   

  	
   

  	
  James E. Dorsey, Esq. w/enclosures

  
	
   

  	
   

  	
  David Jacobson, Esq. w/enclosures

  

 

SZK:jra

 

3

 

Exhibit A

 

Closing Agreement on Final Determination

Covering Specific Matters

 

 

Under section 7121 of the Internal Revenue code, Xcel Energy, Inc. and
Subsidiaries (EIN: 84-0296600), 414 Nicollet Mall, Minneapolis, Minnesota
55401, on behalf of itself and its subsidiaries (collectively, the “Taxpayer”),
and the Commissioner of Internal Revenue (the “Commissioner”), make the
following agreement (“Closing Agreement”):

 

WHEREAS, the Taxpayer filed consolidated federal income tax returns
with one or more affiliated corporations;

 

WHEREAS, the Taxpayer claimed deductions for interest paid or accrued
on loans secured by life insurance contracts (hereinafter referred to as the “Contracts”)
originally issued on November 1, 1984 (PERQ II Plan) and May 1, 1985 (PERQ IV
Plan) by Provident Life & Accident Insurance Company (“Provident”);

 

WHEREAS, a dispute has arisen between the parties as to whether the
interest paid or accrued on the loans secured by the Contracts (the “interest
deductions”) is deductible in the taxable years ended December 31, 1993 through
December 31, 2007;

 

WHEREAS, the Taxpayer terminated the contracts on               DATE by completely surrendering them to
Provident;

 

WHEREAS, pursuant to its termination of the Contracts, the Taxpayer
received from Provident the total surrender value of the Contracts, an amount
equal to the gross aggregate value of the policy value accounts as of October
31, 2007;

 

WHEREAS, pursuant to its termination of the Contracts, the Taxpayer
received from Provident a cash payment equal to the net surrender value of the
Contracts, which amount was equivalent to the remaining aggregate value of the
policy value accounts after repaying the outstanding policy loans and accrued
interest, which amounts were secured by the policy value accounts;

 

WHEREAS, a dispute has arisen between the parties as to how the
surrender value of the Contracts should be taxed for federal tax purposes;

 

WHEREAS, the correct federal tax treatment of any other amounts
received by the Taxpayer relative to the Contracts which are neither death
benefits nor amounts received as surrender value (for example, amounts received
pursuant to the experience refund provisions of the PERQ IV Plan) is not
determined under this Closing Agreement, and the Commissioner is not precluded
from challenging the Taxpayer’s federal tax treatment of such amounts;

 

1

 

Closing Agreement with Xcel Energy, Inc. and
Subsidiaries (EIN: 84-0296600)

 

WHEREAS, the Taxpayer’s entitlement to the interest deductions for the
taxable years ended December 31, 1993 and December 31, 1994, together with
additions to tax under I.R.C. section 6662, are at issue in Xcel Energy Inc.
v. United States, Docket No. 04-CV-01449 (D. Minn);

 

WHEREAS, the Taxpayer’s entitlement to the interest deductions for the
taxable years ended December 31, 1995, December 31, 1996 and December 31, 1997,
together with additions to tax under I.R.C section 6662 are at issue in the Tax
Court case bearing Docket No. 24264-04;

 

WHEREAS, the Taxpayer’s entitlement to the interest deductions for the
taxable years ended December 31, 1998 and December 31, 1999, together with
additions to tax under I.R.C. section 6662, are at issue in the Tax Court case
bearing Docket No. 5833-05;

 

WHEREAS, the Taxpayer’s entitlement to the interest deductions for the
taxable years ended December 31, 2000, December 31, 2001, and December 31, 2002
together with additions to tax under I.R.C. section 6662, are at issue in the
Tax Court case bearing Docket No. 19889-06;

 

WHEREAS, the Taxpayer and the United States government have reached a
global basis of settlement (the “Settlement”) in the prosecution of the
District Court case that is intended to resolve the disputed interest
deductions for all taxable years beginning with the taxable year ended December
31, 1993;

 

WHEREAS, pursuant to the Settlement, Taxpayer agreed to pay the United
States $64,423,263 in complete settlement of the Taxpayer’s past, present, and
future federal income taxes, penalties, and interest relating to the Contracts;

 

WHEREAS, pursuant to the Settlement, the Taxpayer’s required payment of
$64,423,263 was reduced to $32,193,194 to reflect a credit in the amount of
$32,230,069 for amounts paid, or deemed to have been paid by the Taxpayer with
respect to its liabilities for federal income tax and interest generated by the
disallowed deductions for the taxable years ended December 31, 1993 and
December 31, 1994;

 

WHEREAS, pursuant to the Settlement, on October 31, 2007, the Taxpayer
paid $32,193,194 to the Commissioner;

 

WHEREAS, pursuant to the Settlement, the parties have resolved their
United States District Court case by agreeing that for the tax years ended
December 31, 1993 and December 31, 1994, no interest paid or accrued on loans secured
by the Contracts shall be allowable to the Taxpayer as deduction under any
provision of the Internal Revenue Code;

 

2

 

Closing Agreement with Xcel Energy, Inc. and
Subsidiaries (EIN: 84-0296600)

 

WHEREAS, pursuant to the settlement, the taxpayer paid or was deemed to
have paid the amounts of $32,230,069 in tax and interest for the taxable years
ended December 31, 1993 and December 31, 1994;

 

WHEREAS, pursuant to the settlement, the taxpayer paid or was deemed to
have paid the amounts of $19,119,757 in tax and $13,110,312 in interest for the
taxable years ended December 31, 1993 and December 31, 1994;

 

WHEREAS, the correct federal tax treatment of the interest amounts
deemed to have been paid by the taxpayer pursuant to this settlement is not
determined under this Closing Agreement, and the Commissioner is not precluded
from challenging the taxpayer’s federal tax treatment of such amounts;

 

WHEREAS, pursuant to the Settlement, for the taxable year ended December
31, 1993, the Taxpayer is liable for a penalty and interest on that penalty in
the amounts of $964,619.00 and $1,981,313.58, respectively;

 

WHEREAS, pursuant to the Settlement, for the taxable year ended
December 31, 1994, the Taxpayer is liable for a penalty and interest on that
penalty in the amounts of $1,187,242.00 and $2,154,436.62, respectively;

 

WHEREAS, pursuant to the Settlement, the parties have resolved their
Tax Court case (Docket No. 24264-04) by agreeing that for the tax year ended
December 31, 1995, there is an underpayment of taxpayer’s federal income taxes
in the amount of $10,344,509.57 attributable to the disallowance of
$29,555,741.63 in COLI deductions, that the taxpayer is liable for statutory
interest on that underpayment in the amount of $15,561,073.21, that the
taxpayer is not liable for any penalty for 1995 due to the disallowed COLI
deductions, and that for the tax years ended December 31, 1996 and December 31,
1997, the Taxpayer will be allowed to deduct the interest paid or accrued on
loans secured by the Contracts;

 

WHEREAS, pursuant to the Settlement, the parties have resolved their
Tax Court case (Docket No. 5833-05) by agreeing that for the tax years ended
December 31, 1998 and December 31, 1999, the Taxpayer will be allowed to deduct
the interest paid or accrued on loans secured by the Contracts;

 

WHEREAS, pursuant to the Settlement, the parties have resolved their
Tax Court case (Docket No. 19889-06) by agreeing that for the tax years ended
December 31, 2000, December 31, 2001, and December 31, 2002, the Taxpayer will
be allowed to deduct the interest paid or accrued on loans secured by the
Contracts; and

 

WHEREAS, the Taxpayer and the Commissioner desire to resolve this
matter with finality,

 

3

 

Closing Agreement with Xcel Energy, Inc. and
Subsidiaries (EIN: 84-0296600)

 

NOW IT IS HEREBY DETERMINED AND AGREED FOR
FEDERAL INCOME TAX PURPOSES THAT:

 

1.               For the tax years ended December 31,
2003, December 31, 2004, December 31, 2005, December 31, 2006, and December 31,
2007, the Taxpayer will be allowed as a deduction the interest paid or accrued
on loans secured by the Contracts.

 

2.               The Taxpayer will not be allowed any
deductions for interest paid or accrued on loans secured by the Contracts for
any taxable years beginning after December 31, 2007.

 

3.               None of the cash surrender value
received by, or credited to the benefit of the Taxpayer pursuant its
termination of its policies on            Date shall be included in the Taxpayer’s
gross income.

 

4.               The provisions of the Internal Revenue
Code in effect at the time of death shall determine the Federal income tax
treatment of any and all amounts paid as death benefits on the lives of
individuals who died prior to the surrender of the Contracts.

 

5.               The life insurance contracts that are
subject of this closing agreement will not be reinstated.

 

This agreement is final and conclusive except:

 

1.               the matter it relates to may be reopened
in the event of fraud, malfeasance, or misrepresentation of a material fact;

 

2.               it is subject to the Internal Revenue
Code sections that expressly provide that effect be given to their provisions
(including any stated exception for I.R.C. section 7122) notwithstanding any
other law or rule of law; and

 

3.               if it relates to a tax period ending
after the date of this agreement, it is subject to any law, enacted after the
agreement date, that applies to that contract period.

 

4

 

Closing Agreement with Xcel Energy, Inc. and
Subsidiaries (EIN: 84-0296600)

 

By signing, the above parties certify that
they have read and agreed to the terms of this document.

 

 

	
  XCEL ENERGY, INC. AND SUBSIDIARIES

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  Date Signed 

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  
						

 

 

	
  COMMISSIONER OF INTERNAL REVENUE

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  Date Signed 

  	
   

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  
						

 

5

 

[Letterhead of the U.S. Department of Justice
– Tax Division]

 

September 21, 2007

 

Via E-mail and U.S. Mail

 

Steven Z. Kaplan, Esq.

Fredrikson & Byron, P.A.

200 S. 6th St., Ste. 4000

Minneapolis, MN 55402

skaplan@fredlaw.com

 

	
   

  	
  Re:

  	
  Xcel Energy, Inc. v. United States

  
	
   

  	
   

  	
  Case No. 04-CV-1449 (D. Minn.)

  

 

Dear Mr. Kaplan:

 

This letter refers to your revised settlement
offer, dated September 19, 2007, and transmitted on September 20, 2007, in the
above-titled action. This is to advise you that the offer has been accepted on
behalf of the Attorney General. We will advise you on the method for making the
payment by separate correspondence.

 

 

	
   

  	
  Sincerely yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  RICHARD T. MORRISON

  	
   

  
	
   

  	
  Acting Assistant Attorney General

  	
   

  
	
   

  	
  Tax Division

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   /s/ Seth G. Heald

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  SETH G. HEALD

  	
   

  
	
   

  	
  Chief

  	
   

  
	
   

  	
  Civil Trial Section,

  	
   

  
	
   

  	
  Central RegionExhibit
4.1

 

AMENDMENT NO. 3

AND CONSENT

TO AMENDED AND RESTATED

LOAN AND SECURITY AGREEMENT

 

AMENDMENT NO. 3 AND CONSENT TO AMENDED AND RESTATED
LOAN AND SECURITY AGREEMENT (“this Amendment”), dated as of October 24,
2007, to that certain Amended and Restated Loan and Security Agreement dated as
of August 18, 2005 (as heretofore amended and as further amended, restated,
supplemented or otherwise modified from time to time, the “Loan Agreement”)
among the lending institutions party thereto from time to time (each a “Lender”
and collectively the “Lenders”), Ahern Rentals, Inc. (the “Borrower”),
each of the Borrower’s subsidiaries party thereto from time to time that become
borrowers thereunder with the prior written consent of all the Lenders, Bank of
America, N.A., in its capacity as administrative agent for the Lenders (in such
capacity, the “Administrative Agent”), Wachovia Bank, National
Association, as collateral agent for the Lenders (in such capacity, the “Collateral
Agent”), and each of the other Obligated Parties (as defined therein) party
thereto from time to time.

 

WHEREAS, the Borrower, the Lenders, the Administrative
Agent and the Collateral Agent desire to amend certain provisions of the Loan
Agreement;

 

NOW, THEREFORE, subject to the condition precedent set
forth in Section 4 hereof, the Borrower, the Lenders, the Administrative
Agent and the Collateral Agent hereby agree as follows:

 

SECTION 1.                                CAPITALIZED TERMS. Capitalized terms used but not defined herein shall
have the respective meanings set forth in the Loan Agreement.

 

SECTION 2.                                AMENDMENTS TO LOAN AGREEMENT.

 

2.1                                 Section
1.1 of the Loan Agreement is hereby amended by adding the following proviso
to the end of the definition of “Fixed Charge Coverage Ratio”:

 

“; provided that for each Test Period
with respect to a Trigger Event, Fixed Charges shall be determined without
giving effect to clauses (d) and (e) of such definition if Suppressed
Availability is in excess of $50,000,000 as of the report date of the Borrowing
Base Certificate most recently delivered on or prior to (i) with respect to the
Test Period described in clause (x) of the definition of Test Period, the date
on which such Trigger Event occurred and (ii) with respect to each Test
Period thereafter ending prior to or during the Trigger Event Compliance Period
for such Trigger Event, the date of delivery of the Compliance Certificate
detailing

 

 

the calculation of the Fixed Charge Coverage
Ratio for such Test Period”

 

2.2                                 Section
1.1 of the Loan Agreement is hereby further amended by deleting the
definition of “Maximum Revolver Amount” and replacing it with the following:

 

“‘Maximum Revolver Amount’ means
$300,000,000 as such amount shall be increased by the aggregate amount of
Incremental Commitments, if any, and as reduced in accordance with Section
4.3(f).”

 

2.3                                 Section
1.1 of the Loan Agreement is hereby further amended by adding the following
definition of “Suppressed Availability” in the appropriate alphabetical order:

 

“‘Suppressed Availability’ means, at
any date of determination, the amount, if any, that (i) the sum of, without
duplication, (1) up to eighty-five percent (85%) of the Net Amount of Eligible
Accounts, plus (2) up to the lesser of (A) ninety-five percent (95%) of the Net
Book Value of Eligible Rental and Sale Equipment and (B) eighty-five percent
(85%) of the Net Orderly Liquidation Value of Eligible Rental and Sale
Equipment, plus (3) up to the lesser of (A) ninety-five percent (95%) of
the Net Book Value of Eligible Transportation Equipment and (B) eighty-five
percent (85%) of the Net Orderly Liquidation Value of Eligible Transportation
Equipment, plus (4) up to the lesser of (A) sixty percent (60%) of the value
(at the lower of cost, on an average cost basis, or market) of Eligible Spare
Parts Inventory and (B) eighty-five percent (85%) of the Net Orderly
Liquidation Value of Eligible Spare Parts Inventory, minus (5) the Blocked
Availability Amount minus (6) such Reserves as are established from time
to time by either or both of the Agents in its or their reasonable credit
judgment exceeds (ii) the Maximum Revolver Amount.”

 

2.4                                 Schedule
1.1(A) of the Loan Agreement is replaced with the Schedule 1.1(A)
attached hereto as Annex A.

 

SECTION 3.                                CONSENT. The Lenders hereby consent to the payment by the Borrower of dividends
to holders of Capital Stock of the Borrower in addition to Permitted
Distributions permitted under Section 8.10(a) of the Loan and Security
Agreement; provided, that (i) no Default or Event of Default shall exist at the
time of the payment of any such dividend or immediately after giving effect to
the payment thereof, (ii) such dividend is not prohibited to be paid under the
terms of any other agreement to which the Borrower is a party or by which it is
otherwise bound, (iii) all such dividends shall be paid on or prior to November
15, 2007 and (iv) the aggregate amount of such dividends shall not exceed
$3,500,000. The Borrower hereby agrees to the terms of the foregoing consent.

 

2

 

SECTION 4.                                EFFECTIVENESS. This Amendment shall become effective on such date (the “Effective
Date”) that:

 

(1)                                  counterparts of this
Amendment executed by the Borrower, the Lenders, the Administrative Agent and
the Collateral Agent shall have been delivered to the Administrative Agent;

 

(2)                                  the Administrative
Agent shall have received the fees set forth in the letter agreements dated the
date hereof supplementing the Fee Letters;

 

(3)                                  the Agents shall have
received signed opinions of counsel for the Obligated Parties, opining as to
such matters in connection with the transactions contemplated by this Amendment
as either of the Agents may reasonably request, each such opinion to be in
form, scope, and substance satisfactory to the Agents, the Lenders, and their
respective counsel; and

 

(4)                                  the Agents shall have
received a certificate of the secretary, general partner, or comparable
authorized representative of each Obligated Party certifying that (A) the copy
of its Management Agreement attached to the certificate of its secretary,
general partner, or comparable authorized representative delivered on the
Closing Date is a true and complete copy of its Management Agreement as in
effect on the date of the certificate delivered pursuant to this subsection and
such Management Agreement has not been amended since the Closing Date, (B) a
true and complete copy of duly approved Resolutions authorizing the execution,
delivery and performance of this Amendment are attached thereto and that such
Resolutions have not been modified, rescinded or amended and are in full force
and effect, (C) its Organizational Certificate has not been amended since
the date of the last amendment thereto shown on the certificate of good
standing from the appropriate Governmental Authority of the jurisdiction of
such Obligated Party’s formation, incorporation, or organization (as
applicable) delivered on the Closing Date, and (D) the individuals executing
this Amendment or any other document to which it is a party delivered in
connection herewith or therewith are the incumbent officers and their
signatures are as set forth thereto.

 

SECTION 5.                                COUNTERPARTS. This Amendment may be executed in counterparts, each of
which shall be an original, and all of which, taken together, shall constitute
a single instrument.

 

SECTION 6.                                GOVERNING LAW. THIS AMENDMENT SHALL BE INTERPRETED AND THE RIGHTS AND
LIABILITIES OF THE PARTIES HERETO DETERMINED IN ACCORDANCE WITH THE INTERNAL
LAWS (AS OPPOSED TO THE CONFLICT OF LAWS PROVISIONS) OF THE STATE OF NEW YORK.

 

SECTION 7.                                REFERENCES TO LOAN AGREEMENT. From and after the effectiveness of this
Amendment and the amendments contemplated hereby, all references in the Loan
Agreement to “this Agreement”, “hereof”, “herein”, and similar terms shall mean
and refer

 

3

 

to the Loan Agreement, as amended and modified by this Amendment, and
all references in other documents to the Loan Agreement shall mean such
agreement as amended and modified by this Amendment.

 

SECTION 8.                                RATIFICATION AND CONFIRMATION. The Loan Agreement is hereby ratified and
confirmed and, except as herein agreed, remains in full force and effect. The
Borrower represents and warrants that (i) all representations and warranties
contained in the Loan Documents are correct in all material respects with the
same effect as though such representations and warranties had been made on and
as of the date hereof (except to the extent that such representations or
warranties expressly related to a specified prior date, in which case such representations
and warranties shall be correct in all material respects as of such specified
prior date), (ii) there exists no Default or Event of Default and (iii) since
the Closing Date, no event has occurred, and no circumstances exist, that have
resulted in, or could reasonably be expected to result in, a Material Adverse
Effect.

 

SECTION 9.                                SETTLEMENT OF OUTSTANDING REVOLVING LOANS. Notwithstanding Section 13.2 of
the Loan Agreement, the Agents, the Lenders and the Borrower hereby agree that
the Administrative Agent will effect a settlement on or about the Effective
Date of all outstanding Revolving Loans among the Lenders that will reflect the
adjustments to the Commitments of certain of the Lenders resulting from the
replacement of Schedule 1.1(A) to the Loan Agreement (Commitments) with a new
schedule as contemplated by Section 2.4 of this Amendment such that immediately
after giving effect to such settlement each Lender shall have a Pro Rata Share
of the outstanding Revolving Loans. Any interest, fees and other payments
accrued to the date of such settlement with respect to the interests and
obligations of any Revolving Loans of a Lender transferred by such Lender in
accordance with such settlement shall be for the account of the transferring
Lender. Any interest, fees and other payments accrued on and after the date of
such settlement with respect to the interests and obligations acquired by a
Lender hereunder as a result of such settlement shall be for the account of the
acquiring Lender. Each Lender agrees to cooperate with the Administrative Agent
in effecting such settlement (including, without limitation, promptly paying to
the Administrative Agent a sum equal to the amount, if any, of Revolving Loans
transferred to such Lender as a result of such settlement).

 

[Remainder of page
intentionally left blank]

 

4

 

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

 

	
   

  	
  OBLIGATED PARTIES:

  	 

	
   

  	
   

  	 

	
   

  	
  AHERN RENTALS, INC.

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Howard Brown

  	
   

  	 

	
   

  	
   

  	
  Name: Howard Brown

  	 

	
   

  	
   

  	
  Title: Chief Financial Officer

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
  ADMINISTRATIVE AGENT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N. A.,

  
	
   

  	
  as Administrative Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Scalzitti

  	
   

  
	
   

  	
   

  	
  Name: Robert Scalzitti

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  
	
   

  	
  COLLATERAL AGENT:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION,

  
	
   

  	
  as Collateral Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D. B. Laughton

  	
   

  
	
   

  	
   

  	
  Name: D. B. Laughton

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
  LENDERS:

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Robert Scalzitti

  	
   

  
	
   

  	
   

  	
  Name: Robert Scalzitti

  
	
   

  	
   

  	
  Title: Vice President

  
									

 

 

	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ D. B. Laughton

  	
   

  
	
   

  	
   

  	
  Name: D. B. Laughton

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  KEYBANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Chris Monler

  	
   

  
	
   

  	
   

  	
  Name: Chris Monler

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  PNC BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thanwantie Somar

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Thanwantie Somar

  	
   

  
	
   

  	
   

  	
  Title: Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COMERICA BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian Foley

  	
   

  
	
   

  	
   

  	
  Name: Brian Foley

  
	
   

  	
   

  	
  Title: Senior Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  THE CIT GROUP/BUSINESS CREDIT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jang Kim

  	
   

  
	
   

  	
   

  	
  Name: Jang Kim

  
	
   

  	
   

  	
  Title: Vice President

  
							

 

 

	
   

  	
  CF BLACKBURN LLC

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  GMAC COMMERCIAL FINANCE LLC, as

  	 

	
   

  	
   

  	
  Servicer

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Christopher Gauch

  	
   

  
	
   

  	
   

  	
  Name: Christopher Gauch

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	 

	
   

  	
  BANK OF ARIZONA N.A.

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Ryan A. Watson

  	
   

  
	
   

  	
   

  	
  Name: Ryan A. Watson

  
	
   

  	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	 

	
   

  	
  BANK MIDWEST, N.A.

  	 

	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ V. Cramer Hass

  	
   

  
	
   

  	
   

  	
  Name: V. Cramer Hass

  
	
   

  	
   

  	
  Title: Vice President

  
					

 

 

ANNEX A

 

Schedule
1.1.(A)

Commitments

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Bank of America, N.A.

  	
   

  	
  $

  	
  75,000,000

  	
   

  
	
  Wachovia Bank, National Association

  	
   

  	
  $

  	
  50,000,000

  	
   

  
	
  KeyBank National Association

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
  PNC Bank, National Association

  	
   

  	
  $

  	
  30,000,000

  	
   

  
	
  Comerica Bank

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  The CIT Group/Business Credit, Inc.

  	
   

  	
  $

  	
  40,000,000

  	
   

  
	
  CF Blackburn LLC

  	
   

  	
  $

  	
  20,000,000

  	
   

  
	
  Bank of Arizona N.A.

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
  Bank Midwest, N.A.

  	
   

  	
  $

  	
  10,000,000

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
  300,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00131-of-00352.parquet"}]]