Document:

ACAS 2002-1 LLC Operating Agreement (1006600)

Exhibit 10.5

 

LIMITED

LIABILITY COMPANY OPERATING AGREEMENT

OF

ACAS

BUSINESS LOAN LLC, 2002–1

 

This Limited Liability Company Operating Agreement

(together with the schedules attached hereto, this “Agreement”) of ACAS

BUSINESS LOAN LLC, 2002–1 (the “Company”), is entered into by

AMERICAN CAPITAL STRATEGIES, LTD., as the sole equity member (“ACAS” or

the “Member”), and WILLIAM HOLLORAN and EVELYNE S. STEWARD, as the

Special Members.  Capitalized terms used

and not otherwise defined herein have the meanings set forth on Schedule A hereto.

 

The Member, by execution

of this Agreement, hereby forms the Company as a limited liability company

pursuant to and in accordance with this Agreement and the Delaware Limited

Liability Company Act (6 Del. C. §18–101 et

seq.), as amended from time to time (the “Act”), and the Member

and the Special Members hereby agree as follows:

 

Section 1.               Name.

 

The name of the limited

liability company formed hereby is ACAS Business Loan LLC, 2002–1.

 

Section 2.               Principal

Business Office.

 

The principal business

office of the Company shall be located at 2 Bethesda Metro Center, 14th Floor,

Bethesda, Maryland 20814 or such other location as may hereafter be determined

by the Member.

 

Section 3.               Registered

Office.

 

The address of the

registered office of the Company in the State of Delaware is c/o Corporation

Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808.

 

Section 4.               Registered

Agent.

 

The name and address of

the registered agent of the Company for service of process on the Company in

the State of Delaware is Corporation Service Company, 2711 Centerville Road,

Suite 400, Wilmington, Delaware 19808.

 

Section 5.               Members.

 

(a)           The

mailing address of the Member is set forth on Schedule

B attached hereto.  The

Member was admitted to the Company as a member of the Company upon its

execution of a counterpart signature page to this Agreement.

 

(b)           Subject

to Section 9(j), the Member may act by written consent including taking

action permitted hereunder to be taken by the Board.

 

(c)           Upon

the occurrence of any event that causes the Member to cease to be a member of

the Company (other than (i) upon an assignment by the Member of all of its

limited liability company interest in the Company and the admission of the

transferee pursuant to Sections 21 and 23, or (ii) the resignation of

the Member and the admission of an additional member of the Company pursuant to

Sections 22 and 23), each person acting as an Independent Manager

pursuant to Section 10 shall, without any action of any Person and

simultaneously with the Member ceasing to be a member of the Company,

automatically be admitted to the Company as a Special Member and shall continue

the Company without

 

 

dissolution.  No Special Member

may resign from the Company or transfer its rights as Special Member unless (i)

a successor Special Member has been admitted to the Company as Special Member

by executing a counterpart to this Agreement, and (ii) such successor has also

accepted its appointment as Independent Manager pursuant to Section 10;

provided, however, the Special Members shall automatically cease to be members

of the Company upon the admission to the Company of a substitute Member.  Each Special Member shall be a member of the

Company that has no interest in the profits, losses and capital of the Company

and has no right to receive any distributions of Company assets.  Pursuant to Section 18–301 of the Act,

a Special Member shall not be required to make any capital contributions to the

Company and shall not receive a limited liability company interest in the

Company.  A Special Member, in its

capacity as Special Member, may not bind the Company.  Except as required by any mandatory provision of the Act, each

Special Member, in its capacity as Special Member, shall have no right to vote

on, approve or otherwise consent to any action by, or matter relating to, the

Company, including, without limitation, the merger, consolidation or conversion

of the Company.  In order to implement

the admission to the Company of each Special Member, each person acting as an

Independent Manager pursuant to Section 10 shall execute a

counterpart to this Agreement.  Prior to

its admission to the Company as Special Member, each person acting as an

Independent Manager pursuant to Section 10 shall not be a member of the

Company.

 

Section 6.               Certificates.

 

Todd M. Bloomquist, is

hereby designated as an “authorized person” within the meaning of the Act, and

has executed, delivered and filed the Certificate of Formation of the Company

with the Secretary of State of the State of Delaware.  Upon the filing of the Certificate of Formation with the

Secretary of State of the State of Delaware, his powers as an “authorized

person” ceased, and the Member thereupon became the designated “authorized

person” and shall continue as the designated “authorized person” within the

meaning of the Act.  Unless otherwise

specified by the Board of Managers, the Member or an Officer shall execute,

deliver and file any other certificates, affidavits and other documentation

(and any amendments and/or restatements thereof) necessary for the Company to

qualify to do business in any jurisdiction in which the Company may wish to

conduct business.

 

The existence of the

Company as a separate legal entity shall continue until cancellation of the

Certificate of Formation as provided in the Act.

 

Section 7.               Purposes.

 

(a)           The

purposes and activities to be conducted or promoted by the Company shall be

limited to the following:

 

(i)            to

purchase or otherwise acquire, own or hold pursuant to certain transfer

agreements, certain loans and all collections and other monies due or to become

due in payment of such loans, any amounts payable or any payments made under

any insurance policy covering such loans, the collateral related to such Loans,

including the related security interest granted by the obligor under such loans

and all proceeds from any sale or other disposition of such collateral, all

documents and records related to such loans, all guarantees, indemnities,

warranties and other agreements or arrangements of whatever character from time

to time supporting or securing payment of such loans, the accounts relating to

such loans and all income, payments, products, proceeds and other benefits of

any and all of the foregoing, all as more particularly described in the Basic

Documents;

 

(ii)           to

enter into, and perform its obligations under, any agreements with affiliates

relating to or effecting the transfers and conveyances of Loan Assets as

described above;

 

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(iii)          to

transfer the Loan Assets or interests therein (including for the purpose of

establishing, forming or funding one or more trusts), pursuant to one or more

indentures, transfer and servicing agreement or other agreements, entered into

by and among, among others, the Company, any trustee or trustees or collateral

agent named therein, and any entity acting as servicer for the Loan Assets, as

well as certain other financing entities (collectively hereinafter referred to

as the “Entities”), and to perform its obligations under any such

agreements;

 

(iv)          to

hold and enjoy any and all of the rights and privileges of any certificates,

notes or other ownership interests  (the

“Interests”) issued by or sold by the Entities to the Company under the

related agreements and to hold and enjoy all of the rights and privileges of

any class of any series of Interests, to sell, assign, pledge or otherwise

transfer any such Interests or any interest therein;

 

(v)           to

perform its obligations under the agreements pursuant to which any Interests

are issued, sold or serviced;

 

(vi)          to

invest the proceeds derived from the sale or ownership of the Loan Assets as

determined by the Company’s Board of Managers; and

 

(vii)         to

engage in any lawful act or activity and to exercise any powers permitted to

limited liability companies organized under the laws of the State of Delaware

that are related or incidental to and necessary, convenient or advisable for

the accomplishment of the above–mentioned purposes (including the

entering into of interest rate or basis swap, cap, floor or collar agreements,

currency exchange agreements or similar hedging transactions and referral,

management, servicing and administration agreements).

 

(b)           The

Company, by or through the Member, or any Manager or Officer on behalf of the

Company, may enter into and perform the Basic Documents and all documents,

agreements, certificates or financing statements contemplated thereby or

related thereto, all without any further act, vote or approval of any other

Person notwithstanding any other provision of this Agreement, the Act or

applicable law, rule or regulation.  The

foregoing authorization shall not be deemed a restriction on the powers of the

Member or any Manager or Officer to enter into other agreements on behalf of

the Company, in each case in connection with permitted activities and purposes

of the Company.

 

Section 8.               Powers.

 

Subject to Sections 7

and 9(j), the Company, and the Board of Managers and the Officers of the

Company on behalf of the Company, (i) shall have and exercise all powers

necessary, convenient or incidental to accomplish its purposes as set forth in

Section 7 and (ii) shall have and exercise all of the powers and rights

conferred upon limited liability companies formed pursuant to the Act.

 

Section 9.               Management.

 

(a)           Board

of Managers.  Subject to

Section 9(j), the business and affairs of the Company shall be managed by

or under the direction of a Board of one or more Managers designated by the

Member.  Subject to Section 10, the

Member may determine at any time in its sole and absolute discretion the number

of Managers to constitute the Board. 

The authorized number of Managers may be increased or decreased by the

Member at any time in its sole and absolute discretion, upon notice to all

Managers, and subject in all cases to Section 10.  The initial number of Managers shall be

three, two of which shall be Independent Managers as and to the extent required

by Section 10.  Each Manager

elected, designated or appointed by the Member shall hold office until a

successor is elected and qualified or until such Manager’s earlier death,

resignation, expulsion or removal.  Each

Manager shall execute and deliver the

 

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Management

Agreement.  Managers need not be a

Member.  The initial Managers hereby

designated by the Member are listed on Schedule D

hereto.

 

(b)           Powers.  Subject to Section 9(j), the Board of

Managers shall have the power to do any and all acts necessary, convenient or

incidental to or for the furtherance of the purposes described herein,

including all powers, statutory or otherwise. 

Subject to Section 7, the Board of Managers has the authority to

bind the Company.

 

(c)           Meeting

of the Board of Managers.  The Board

of Managers of the Company may hold meetings, both regular and special, within

or outside the State of Delaware. 

Regular meetings of the Board may be held without notice at such time

and at such place as shall from time to time be determined by the Board.  Special meetings of the Board may be called

by the President on not less than one day’s notice to each Manager by

telephone, facsimile, mail, telegram or any other means of communication, and

special meetings shall be called by the President or Secretary in like manner

and with like notice upon the written request of any one or more of the

Managers.

 

(d)           Quorum:

Acts of the Board.  At all meetings

of the Board, a majority of the Managers shall constitute a quorum for the

transaction of business and, except as otherwise provided in any other

provision of this Agreement, the act of a majority of the Managers present at

any meeting at which there is a quorum shall be the act of the Board.  If a quorum shall not be present at any

meeting of the Board, the Managers present at such meeting may adjourn the

meeting from time to time, without notice other than announcement at the

meeting, until a quorum shall be present. 

Any action required or permitted to be taken at any meeting of the Board

or of any committee thereof may be taken without a meeting if all members of

the Board or committee, as the case may be, consent thereto in writing, and the

writing or writings are filed with the minutes of proceedings of the Board or

committee, as the case may be.

 

(e)           Electronic

Communications.  Members of the

Board, or any committee designated by the Board, may participate in meetings of

the Board, or any committee, by means of telephone conference or similar

communications equipment that allows all Persons participating in the meeting

to hear each other, and such participation in a meeting shall constitute

presence in Person at the meeting.  If

all the participants are participating by telephone conference or similar

communications equipment, the meeting shall be deemed to be held at the

principal place of business of the Company.

 

(f)            Committees

of Managers.

 

(i)            Subject

to Section 9(j), the Board may, by resolution passed by a majority of the

whole Board, designate one or more committees, each committee to consist of one

or more of the Managers of the Company. 

The Board may designate one or more Managers as alternate members of any

committee, who may replace any absent or disqualified member at any meeting of

the committee.

 

(ii)           In

the absence or disqualification of a member of a committee, the member or

members thereof present at any meeting and not disqualified from voting,

whether or not such members constitute a quorum, may unanimously appoint

another member of the Board to act at the meeting in the place of any such

absent or disqualified member.

 

(iii)          Any

such committee, to the extent provided in the resolution of the Board, shall

have and may exercise all the powers and authority of the Board in the

management of the business and affairs of the Company.  Such committee or committees shall have such

name or names as may be determined from time to time by resolution adopted by

the Board.  Each committee shall keep

regular minutes of its meetings and report the same to the Board when required.

 

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(g)           Compensation

of Managers; Expenses.  The Board

shall have the authority to fix the compensation of Managers.  The Managers may be paid their expenses, if

any, of attendance at meetings of the Board, which may be a fixed sum for

attendance at each meeting of the Board or a stated salary as Manager.  No such payment shall preclude any Manager

from serving the Company in any other capacity and receiving compensation

therefor.  Members of special or

standing committees may be allowed like compensation for attending committee

meetings.

 

(h)           Removal

of Managers.  Unless otherwise

restricted by law, any Manager or the entire Board of Managers may be removed

or expelled, with or without cause, at any time by the Member, and, subject to

Section 10, any vacancy caused by any such removal or expulsion may be

filled by action of the Member.

 

(i)            Managers

as Agents.  To the extent of their

powers set forth in this Agreement and subject to Section 9(j), the

Managers are agents of the Company for the purpose of the Company’s business,

and the actions of the Managers taken in accordance with such powers set forth

in this Agreement shall bind the Company. 

Notwithstanding the last sentence of Section 18–402 of the Act and

except as specifically provided in this Agreement or in a resolution of the

Managers, a Manager shall not have the authority to bind the Company.

 

(j)            Limitations

on the Company’s Activities.

 

(i)            This

Section 9(j) is being adopted in order to comply with certain provisions

required in order to qualify the Company as a “special purpose” entity.

 

(ii)           The

Member shall not, so long as any Obligation is outstanding, amend, alter,

change or repeal the definition of “Independent Manager” or Sections 5(c),

7, 8, 9, 10, 16, 20, 21, 22, 23, 24, 25, 26 or 31 or Schedule A of this Agreement without

the unanimous written consent of the Board (including all Independent

Managers).  Subject to this

Section 9(j), the Member reserves the right to amend, alter, change or

repeal any provisions contained in this Agreement in accordance with

Section 31.

 

(iii)          Notwithstanding

any other provision of this Agreement and any provision of law that otherwise

so empowers the Company, the Member, the Board, any Officer or any other

Person, neither the Member nor the Board nor any Officer nor any other Person

shall be authorized or empowered, nor shall they permit the Company, without

the prior unanimous written consent of the Member and the Board (including all

Independent Managers), to take any Material Action.

 

(iv)          The

Board and the Member shall cause the Company to do or cause to be done all

things necessary to preserve and keep in full force and effect its existence,

rights (charter and statutory) and franchises; provided, however,

that the Company shall not be required to preserve any such right or franchise

if: (1) the Board shall determine that the preservation thereof is no longer

desirable for the conduct of its business and that the loss thereof is not

disadvantageous in any material respect to the Company and (2) the Rating

Agency Condition is satisfied.  The

Board also shall cause the Company to:

 

(A)          maintain its own separate books and records and bank

accounts;

 

(B)           at all times hold itself out to the public and all other

Persons as a legal entity separate from the Member and any other Person;

 

(C)           have a Board of Managers separate from that of the Member

and any other Person;

 

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(D)          file its own tax returns, if any, as may be required under

applicable law, to the extent (1) not part of a consolidated group filing a

consolidated return or returns or (2) not treated as a division for tax

purposes of another taxpayer, and pay any taxes so required to be paid under

applicable law;

 

(E)           except as contemplated by the Basic Documents, not

commingle its assets with assets of any other Person;

 

(F)           conduct its business in its own name and strictly comply

with all organizational formalities to maintain its separate existence;

 

(G)           maintain separate financial statements, showing its assets

and liabilities separate and apart from any other person or entity;

 

(H)          pay its own liabilities only out of its own funds;

 

(I)            maintain an arm’s length and commercially reasonable

relationship with its Affiliates and the Member;

 

(J)            not identify itself as a division of any other Person;

 

(K)          pay the salaries of its own employees, if any;

 

(L)           not hold out its credit or assets as being available to

satisfy the obligations of others;

 

(M)         allocate fairly and reasonably any overhead for shared

office space;

 

(N)          use separate stationery, invoices and checks;

 

(O)          except as contemplated by the Basic Documents, not pledge

its assets for the benefit of any other Person;

 

(P)           correct any known misunderstanding regarding its separate identity;

 

(Q)          maintain adequate capital in light of its contemplated

business purpose, transactions and liabilities;

 

(R)           cause its Board of Managers to meet at least annually or

act pursuant to written consent and keep minutes of such meetings and actions

and observe all other Delaware limited liability company formalities;

 

(S)           not acquire any securities of the Member; and

 

(T)           cause the Managers, Officers, agents and other

representatives of the Company to act at all times with respect to the Company

consistently and in furtherance of the foregoing and in the best interests of

the Company.

 

Failure of the Company, or the Member or Board on

behalf of the Company, to comply with any of the foregoing covenants or any

other covenants contained in this Agreement shall not affect the status of the

Company as a separate legal entity or the limited liability of the Member or

the Managers.

 

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(v)           So

long as any Obligation is outstanding, the Board shall not cause or permit the

Company to:

 

(A)          except as contemplated by the Basic Documents, guarantee

any obligation of any Person, including any Affiliate;

 

(B)           engage, directly or indirectly, in any business other than

the actions required or permitted to be performed under Section 7, the

Basic Documents or this Section 9(j);

 

(C)           incur, create or assume any indebtedness other than as

expressly permitted under the Basic Documents;

 

(D)          make or permit to remain outstanding any loan or advance

to, or own or acquire any stock or securities of, any Person, except that the

Company may invest in those investments permitted under the Basic Documents and

may make any advance required or expressly permitted to be made pursuant to any

provisions of the Basic Documents and permit the same to remain outstanding in

accordance with such provisions;

 

(E)           to the fullest extent permitted by law, engage in any

dissolution, liquidation, consolidation, merger, asset sale or transfer of

ownership interests other than such activities as are expressly permitted

pursuant to any provision of the Basic Documents; or

 

(F)           form, acquire or hold any subsidiary (whether corporate,

partnership, limited liability company or other).

 

Section 10.             Independent

Managers.

 

As long as any Obligation

is outstanding, the Member shall cause the Company at all times to have at

least two Independent Managers who will be appointed by the Member.  To the fullest extent permitted by law,

including Section 18–1101(c) of the Act, the Independent Managers

shall consider only the interests of the Company, including its respective

creditors, in acting or otherwise voting on the matters referred to in

Section 9(j)(iii).  No resignation

or removal of an Independent Manager, and no appointment of a successor

Independent Manager, shall be effective until such successor (i) shall have

accepted his or her appointment as an Independent Manager by a written

instrument, which may be a counterpart signature page to the Management

Agreement, and (ii) shall have executed a counterpart to this Agreement as

required by Section 5(c).  In the

event of a vacancy in the position of Independent Manager, the Member shall, as

soon as practicable, appoint a successor Independent Manager.  All right, power and authority of the

Independent Managers shall be limited to the extent necessary to exercise those

rights and perform those duties specifically set forth in this Agreement.  Except as provided in the second sentence of

this Section 10, in exercising their rights and performing their duties

under this Agreement, any Independent Manager shall have a fiduciary duty of

loyalty and care similar to that of a director of a business corporation

organized under the General Corporation Law of the State of Delaware.  No Independent Manager shall at any time serve

as trustee in bankruptcy for any Affiliate of the Company.  The initial Independent Managers appointed

hereby shall be as set forth in Schedule D

hereto.

 

Section 11.             Officers.

 

(a)           Officers.  The initial Officers of the Company shall be

designated by the Member.  The

additional or successor Officers of the Company shall be chosen by the Board

and shall consist of at least a President, a Secretary and a Treasurer.  The Board of Managers may also choose one or

more Vice Presidents, Assistant Secretaries and Assistant Treasurers.  Any number of offices may be held by the

 

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same person. The Board shall choose a President, a Secretary and a

Treasurer.  The Board may appoint such

other Officers and agents as it shall deem necessary or advisable who shall

hold their offices for such terms and shall exercise such powers and perform

such duties as shall be determined from time to time by the Board.  The salaries of all Officers and agents of

the Company shall be fixed by or in the manner prescribed by the Board.  The Officers of the Company shall hold

office until their successors are chosen and qualified.  Any Officer may be removed at any time, with

or without cause, by the affirmative vote of a majority of the Board.  Any vacancy occurring in any office of the

Company shall be filled by the Board. 

The initial Officers of the Company designated by the Member are listed

on Schedule E hereto.

 

(b)           President.  The President shall be the chief executive

officer of the Company, shall preside at all meetings of the Board, shall be

responsible for the general and active management of the business of the

Company and shall see that all orders and resolutions of the Board are carried

into effect.  The President or any other

Officer authorized by the President or the Board shall execute all bonds,

mortgages and other contracts, except: (i) where required or permitted by law

or this Agreement to be otherwise signed and executed, including

Section 7(b); (ii) where signing and execution thereof shall be expressly

delegated by the Board to some other Officer or agent of the Company, and (iii)

as otherwise permitted in Section 11(c).

 

(c)           Vice

President.  In the absence of the

President or in the event of the President’s inability to act, the Vice

President, if any (or in the event there be more than one Vice President, the

Vice Presidents in the order designated by the Managers, or in the absence of

any designation, then in the order of their election), shall perform the duties

of the President, and when so acting, shall have all the powers of and be

subject to all the restrictions upon the President.  The Vice Presidents, if any, shall perform such other duties and

have such other powers as the Board may from time to time prescribe.

 

(d)           Secretary

and Assistant Secretary.  The

Secretary shall be responsible for filing legal documents and maintaining

records for the Company.  The Secretary

shall attend all meetings of the Board and record all the proceedings of the

meetings of the Company and of the Board in a book to be kept for that purpose

and shall perform like duties for the standing committees when required.  The Secretary shall give, or shall cause to

be given, notice of all meetings of the Member, if any, and special meetings of

the Board, and shall perform such other duties as may be prescribed by the

Board or the President, under whose supervision the Secretary shall serve.  The Assistant Secretary, or if there be more

than one, the Assistant Secretaries in the order determined by the Board (or if

there be no such determination, then in order of their election), shall, in the

absence of the Secretary or in the event of the Secretary’s inability to act,

perform the duties and exercise the powers of the Secretary and shall perform

such other duties and have such other powers as the Board may from time to time

prescribe.

 

(e)           Treasurer

and Assistant Treasurer.  The

Treasurer shall have the custody of the Company funds and securities and shall

keep full and accurate accounts of receipts and disbursements in books

belonging to the Company and shall deposit all moneys and other valuable

effects in the name and to the credit of the Company in such depositories as

may be designated by the Board.  The

Treasurer shall disburse the funds of the Company as may be ordered by the

Board, taking proper vouchers for such disbursements, and shall render to the

President and to the Board, at its regular meetings or when the Board so

requires, an account of all of the Treasurer’s transactions and of the

financial condition of the Company.  The

Assistant Treasurer, or if there shall be more than one, the Assistant

Treasurers in the order determined by the Board (or if there be no such

determination, then in the order of their election), shall, in the absence of

the Treasurer or in the event of the Treasurer’s inability to act, perform the

duties and exercise the powers of the Treasurer and shall perform such other

duties and have such other powers as the Board may from time to time prescribe.

 

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(f)            Officers

as Agents.  The Officers, to the

extent of their powers set forth in this Agreement or otherwise vested in them

by action of the Board not inconsistent with this Agreement, are agents of the

Company for the purpose of the Company’s business and, subject to

Section 9(j), the actions of the Officers taken in accordance with such

powers shall bind the Company.

 

(g)           Duties of Board and Officers.  Except to the extent otherwise provided

herein, each Manager and Officer shall have a fiduciary duty of loyalty and

care similar to that of directors and officers of business corporations

organized under the General Corporation Law of the State of Delaware.

 

Section 12.             Limited

Liability.

 

Except as otherwise expressly

provided by the Act, the debts, obligations and liabilities of the Company,

whether arising in contract, tort or otherwise, shall be the debts, obligations

and liabilities solely of the Company, and neither the Member nor the Special

Members nor any Manager or Officer shall be obligated personally for any such

debt, obligation or liability of the Company solely by reason of being a

Member, Special Member, Manager or Officer of the Company.

 

Section 13.             Capital

Contributions.

 

The Member has contributed

to the Company property of an agreed value as listed on Schedule B attached hereto.  In accordance with Section 5(c), the

Special Members shall not be required to make any capital contributions to the

Company.

 

Section 14.             Additional

Contributions.

 

The Member is not

required to make any additional capital contribution to the Company.  However, the Member may, in its discretion,

make additional capital contributions to the Company at any time.  To the extent that the Member makes an

additional capital contribution to the Company, the Member shall revise Schedule B of this Agreement to

reflect such additional capital contribution. 

The provisions of this Agreement, including this Section 14, are

intended to benefit the Member and the Special Members and, to the fullest

extent permitted by law, shall not be construed as conferring any benefit upon

any creditor of the Company (and no such creditor of the Company shall be a

third–party beneficiary of this Agreement) and the Member and the Special

Members shall not have any duty or obligation to any creditor of the Company to

make any contribution to the Company or to issue any call for capital pursuant

to this Agreement.

 

Section 15.             Allocation

of Profits and Losses.

 

The Company’s profits and

losses shall be allocated to the Member.

 

Section 16.             Distributions.

 

Distributions shall be

made to the Member at the times and in the aggregate amounts determined by the

Board.  Notwithstanding any provision to

the contrary contained in this Agreement, the Company shall not be required to

make a distribution to the Member on account of its interest in the Company if

such distribution would violate Section 18–607 of the Act or any other

applicable law or any Basic Document.

 

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Section 17.             Books

and Records.

 

The Board shall keep or

cause to be kept complete and accurate books of account and records with

respect to the Company’s business.  The

books of the Company shall at all times be maintained by the Board.  The Member and its duly authorized

representatives shall have the right to examine the Company books, records and

documents during normal business hours. 

The Company, and the Board on behalf of the Company, shall not have the

right to keep confidential from the Member any information that the Board would

otherwise be permitted to keep confidential from the Member pursuant to

Section 18–305(c) of the Act. 

The Company’s books of account shall be kept using the method of

accounting determined by the Member. 

The Company’s independent auditor, if any, shall be an independent

public accounting firm selected by the Member.

 

Section 18.             Reserved.

 

Section 19.             Other

Business.

 

The Member, the Special

Members and any Affiliate of the Member or the Special Members may engage in or

possess an interest in other business ventures (unconnected with the Company)

of every kind and description, independently or with others.  The Company shall not have any rights in or

to such independent ventures or the income or profits therefrom by virtue of

this Agreement.

 

Section 20.             Exculpation

and Indemnification.

 

(a)           Neither

the Member nor the Special Members nor any Officer, Manager, employee or agent

of the Company nor any employee, representative, agent or Affiliate of the

Member or the Special Members (collectively, the “Covered Persons”)

shall be liable to the Company or any other Person who has an interest in or

claim against the Company for any loss, damage or claim incurred by reason of

any act or omission performed or omitted by such Covered Person in good faith

on behalf of the Company and in a manner reasonably believed to be within the

scope of the authority conferred on such Covered Person by this Agreement,

except that a Covered Person shall be liable for any such loss, damage or claim

incurred by reason of such Covered Person’s gross negligence or willful

misconduct.

 

(b)           To

the fullest extent permitted by applicable law, a Covered Person shall be

entitled to indemnification from the Company for any loss, damage or claim

incurred by such Covered Person by reason of any act or omission performed or

omitted by such Covered Person in good faith on behalf of the Company and in a

manner reasonably believed to be within the scope of the authority conferred on

such Covered Person by this Agreement, except that no Covered Person shall be

entitled to be indemnified in respect of any loss, damage or claim incurred by

such Covered Person by reason of such Covered Person’s gross negligence or

willful misconduct with respect to such acts or omissions; provided, however,

that any indemnity under this Section 20 by the Company shall be provided

out of and to the extent of Company assets only, and the Member and the Special

Members shall not have personal liability on account thereof; and provided

further, that so long as any Obligation is outstanding, no indemnity

payment from funds of the Company (as distinct from funds from other sources,

such as insurance) in respect of any indemnity under this Section 20 shall

be payable from amounts allocable to any other Person pursuant to the Basic

Documents.

 

(c)           To

the fullest extent permitted by applicable law, expenses (including legal fees)

incurred by a Covered Person defending any claim, demand, action, suit or

proceeding shall, from time to time, be advanced by the Company prior to the

final disposition of such claim, demand, action, suit or proceeding upon

receipt by the Company of an undertaking by or on behalf of the Covered Person

to repay such

 

10

 

amount if it shall

be determined that the Covered Person is not entitled to be indemnified as

authorized in this Section 20.

 

(d)           A

Covered Person shall be fully protected in relying in good faith upon the

records, of the Company and upon such information, opinions, reports or

statements presented to the Company by any Person as to matters the Covered

Person reasonably believes are within such other Person’s professional or

expert competence and who has been selected with reasonable care by or on

behalf of the Company, including information, opinions, reports or statements

as to the value and amount of the assets, liabilities, or any other facts

pertinent to the existence and amount of assets from which distributions to the

Member might properly be paid.

 

(e)           To

the extent that, at law or in equity, a Covered Person has duties (including

fiduciary duties) and liabilities relating thereto to the Company or to any

other Covered Person, a Covered Person acting under this Agreement shall not be

liable to the Company or to any other Covered Person for its good faith

reliance on the provisions of this Agreement or any approval or authorization

granted by the Company or any other Covered Person.  The provisions of this Agreement, to the extent that they

restrict the duties and liabilities of a Covered Person otherwise existing at

law or in equity, are agreed by the Member and the Special Members to replace

such other duties and liabilities of such Covered Person.

 

(f)            The

foregoing provisions of this Section 20 shall survive any termination of

this Agreement.

 

Section 21.             Assignments.

 

Subject to

Section 23, the Member may assign in whole or in part its limited

liability company interest in the Company. 

If the Member transfers all of its limited liability company interest in

the Company pursuant to this Section 21, the transferee shall be admitted

to the Company as a member of the Company upon its execution of an instrument

signifying its agreement to be bound by the terms and conditions of this

Agreement, which instrument may be a counterpart signature page to this

Agreement.  Such admission shall be

deemed effective immediately prior to the transfer and, immediately following

such admission, the transferor Member shall cease to be a member of the

Company.  Notwithstanding anything in

this Agreement to the contrary, any successor to the Member by merger or

consolidation in compliance with the Basic Documents shall, without further

act, be the Member hereunder, and such merger or consolidation shall not

constitute an assignment for purposes of this Agreement and the Company shall

continue without dissolution.

 

Section 22.             Resignation.

 

So long as any Obligation

is outstanding, the Member may not resign, except as permitted under the Basic

Documents and if the Rating Agency Condition is satisfied.  If the Member is permitted to resign

pursuant to this Section 22, an additional member of the Company shall be

admitted to the Company, subject to Section 23, upon its execution of an

instrument signifying its agreement to be bound by the terms and conditions of

this Agreement, which instrument may be a counterpart signature page to this

Agreement.  Such admission shall be

deemed effective immediately prior to the resignation and, immediately following

such admission, the resigning Member shall cease to be a member of the Company.

 

Section 23.             Admission

of Additional Members.

 

One or more additional

members of the Company may be admitted to the Company with the written consent

of the Member; provided, however, that, notwithstanding the

foregoing, so long as any

 

11

 

Obligation remains

outstanding, no additional Member may be admitted to the Company unless the

Rating Agency Condition is satisfied.

 

Section 24.             Dissolution.

 

(a)           Subject

to Section 9(j), the Company shall be dissolved, and its affairs shall be

wound up upon the first to occur of the following: (i) the termination of the

legal existence of the last remaining member of the Company or the occurrence

of any other event which terminates the continued membership of the last

remaining member of the Company in the Company unless the business of the

Company is continued in a manner permitted by this Agreement or the Act or (ii)

the entry of a decree of judicial dissolution under Section 18–802

of the Act.  Upon the occurrence of any

event that causes the last remaining member of the Company to cease to be a

member of the Company, to the fullest extent permitted by law, the personal

representative of such member is hereby authorized to, and shall, within 90

days after the occurrence of the event that terminated the continued membership

of such member in the Company, agree in writing (i) to continue the Company and

(ii) to the admission of the personal representative or its nominee or designee,

as the case may be, as a substitute member of the Company, effective as of the

occurrence of the event that terminated the continued membership of the last

remaining member of the Company in the Company.

 

(b)           Notwithstanding

any other provision of this Agreement, the Bankruptcy of the Member or a

Special Member shall not cause the Member or Special Member, respectively, to

cease to be a member of the Company and upon the occurrence of such an event,

the business of the Company shall continue without dissolution.

 

(c)           In

the event of dissolution, the Company shall conduct only such activities as are

necessary to wind up its affairs (including the sale of the assets of the

Company in an orderly manner), and the assets of the Company shall be applied

in the manner, and in the order of priority, set forth in Section 18–804

of the Act.

 

(d)           The

Company shall terminate when (i) all of the assets of the Company, after

payment of or due provision for all debts, liabilities and obligations of the

Company shall have been distributed to the Member in the manner provided for in

this Agreement and (ii) the Certificate of Formation shall have been canceled

in the manner required by the Act.

 

Section 25.             Waiver

of Partition: Nature of Interest.

 

Except as otherwise expressly

provided in this Agreement, to the fullest extent permitted by law, each of the

Member and the Special Members hereby irrevocably waives any right or power

that such Person might have to cause the Company or any of its assets to be

partitioned, to cause the appointment of a receiver for all or any portion of

the assets of the Company, to compel any sale of all or any portion of the

assets of the Company pursuant to any applicable law or to file a complaint or

to institute any proceeding at law or in equity to cause the dissolution,

liquidation, winding up or termination of the Company.  The Member shall not have any interest in

any specific assets of the Company, and the Member shall not have the status of

a creditor with respect to any distribution pursuant to Section 16

hereof.  The interest of the Member in

the Company is personal property.

 

Section 26.             Benefits

of Agreement; No Third–Party Rights.

 

None of the provisions of

this Agreement shall be for the benefit of or enforceable by any creditor of

the Company or by any creditor of the Member or a Special Member.  Nothing in this Agreement shall be deemed to

create any right in any Person (other than Covered Persons) not a party hereto,

and this

 

12

 

Agreement shall not be

construed in any respect to be a contract in whole or in part for the benefit

of any third Person (except as provided in Section 29).

 

Section 27.             Severability

of Provisions.

 

Each provision of this

Agreement shall be considered severable and if for any reason any provision or

provisions herein are determined to be invalid, unenforceable or illegal under

any existing or future law, such invalidity, unenforceability or illegality

shall not impair the operation of or affect those portions of this Agreement

which are valid, enforceable and legal.

 

Section 28.             Entire

Agreement.

 

This Agreement

constitutes the entire agreement of the parties with respect to the subject

matter hereof.

 

Section 29.             Binding

Agreement.

 

Notwithstanding any other

provision of this Agreement, the Member agrees that this Agreement, including,

without limitation, Sections 7, 8, 9, 10, 20, 21, 22, 23, 24, 26, 29

and 31, constitutes a legal, valid and binding agreement of the Member,

and is enforceable against the Member by the Independent Managers, in

accordance with its terms.  In addition,

the Independent Managers shall be intended beneficiaries of this Agreement.

 

Section 30.             Governing

Law.

 

This Agreement shall be

governed by and construed under the laws of the State of Delaware (without

regard to conflict of laws principles), all rights and remedies being governed

by said laws.

 

Section 31.             Amendments.

 

Subject to

Section 9(j), this Agreement may not be modified, altered, supplemented or

amended except pursuant to a written agreement executed and delivered by the

Member.  Notwithstanding anything to the

contrary in this Agreement, so long as any Obligation is outstanding, this

Agreement may not be modified, altered, supplemented or amended unless the

Rating Agency Condition is satisfied except: (i) to cure any ambiguity or (ii)

to convert or supplement any provision in a manner consistent with the intent

of this Agreement and the other Basic Documents.

 

Section 32.             Counterparts.

 

This Agreement may be

executed in any number of counterparts, each of which shall be deemed an

original of this Agreement and all of which together shall constitute one and

the same instrument.

 

Section 33.             Notices.

 

Any notices required to

be delivered hereunder shall be in writing and personally delivered, mailed or

sent by telecopy, electronic mail or other similar form of rapid transmission,

and shall be deemed to have been duly given upon receipt (a) in the case of the

Company, to the Company at its address in Section 2, (b) in the case of

the Member, to the Member at its address as listed on Schedule B attached hereto and (c) in

the case of either of the foregoing, at such other address as may be designated

by written notice to the other party.

 

13

 

Section 34.             Effectiveness.

 

Pursuant to

Section 18–201(d) of the Act, this Agreement shall be effective as

of the time of the filing of the Certificate of Formation with the Office of

the Delaware Secretary of State on March 11, 2002.

 

Section 35.             Tax

Matters.

 

The Member intends to

form a limited liability company and does not intend to form a partnership

under the laws of the State of Delaware or any other laws.  It is the intention of the parties hereto

that the Company be disregarded as a separate entity for federal income tax

purposes pursuant to Treasury Regulation Section 301.7701–3(b)(1)(ii) as

in effect for periods after January 1, 1997. 

The parties agree not to take any action inconsistent with such intended

federal income tax treatment.

 

14

 

IN WITNESS WHEREOF, the undersigned, intending to be

legally bound hereby, has duly executed this Limited Liability Company

Agreement as of the 11th day of March, 2002.

 

	

   

  	

  MEMBER:

  
	

   

  	

   

  
	

   

  	

  AMERICAN CAPITAL

  STRATEGIES, LTD.

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  By:

  	

   

  	

   

  
	

   

  	

  Name:  John Erickson

  
	

   

  	

  Title:  Vice President and Chief Financial Officer

  
	

   

  	

   

  
	

   

  	

   

  
	

   

  	

  SPECIAL MEMBERS:

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Name:  William Holloran

  
	

   

  	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Name:  Evelyne S. Steward

  
						

 

 

SCHEDULE A

 

Definitions

 

A.            Definitions

 

When used in this

Agreement, the following terms not otherwise defined herein have the following

meanings:

 

“Act” has the

meaning set forth in the preamble to this Agreement.

 

“Affiliate” means,

with respect to any Person, any other Person directly or indirectly Controlling

or Controlled by or under direct or indirect common Control with such

Person.  “Affiliated” shall have a

correlative meaning.

 

“Agreement” means

this Limited Liability Company Operating Agreement of the Company, together

with the schedules attached hereto, as amended, restated or supplemented or

otherwise modified from time to time.

 

“Bankruptcy”

means, with respect to any Person, if such Person (i) makes an assignment for

the benefit of creditors, (ii) files a voluntary petition in bankruptcy, (iii)

is adjudged a bankrupt or insolvent, or has entered against it an order for

relief, in any bankruptcy or insolvency proceedings, (iv) files a petition or

answer seeking for itself any reorganization, arrangement, composition,

readjustment, liquidation or similar relief under any statute, law or

regulation, (v) files an answer or other pleading admitting or failing to

contest the material allegations of a petition filed against it in any

proceeding of this nature, (vi) seeks, consents to or acquiesces in the

appointment of a trustee, receiver or liquidator of the Person or of all or any

substantial part of its properties, or (vii) if 120 days after the commencement

of any proceeding against the Person seeking reorganization, arrangement,

composition, readjustment, liquidation or similar relief under any statute, law

or regulation, if the proceeding has not been dismissed, or if within 90 days

after the appointment without such Person’s consent or acquiescence of a

trustee, receiver or liquidator of such Person or of all or any substantial

part of its properties, the appointment is not vacated or stayed, or within 90

days after the expiration of any such stay, the appointment is not

vacated.  The foregoing definition of

“Bankruptcy” is intended to replace and shall supersede and replace the

definition of “Bankruptcy” set forth in Sections 18–101(1) and 18–304

of the Act.

 

“Basic Documents”

means this Agreement, the Management Agreement, the ACAS Transfer Agreement

with American Capital Strategies, Ltd., the Transfer and Servicing Agreement

among the Company, American Capital Strategies, Ltd., ACAS Business Loan Trust

2002–1, Wells Fargo Bank Minnesota, National Association, as Indenture

Trustee and Backup Servicer, the Trust Agreement for ACAS Business Loan Trust

2002–1 and the Placement Agency Agreement with First Union Securities,

Inc., and all documents and certificates contemplated thereby or delivered in

connection therewith.

 

“Board” or “Board

of Managers” means the Board of Managers of the Company.

 

“Certificate of

Formation” means the Certificate of Formation of the Company filed with the

Secretary of State of the State of Delaware on March 11, 2002, as amended or

amended and restated from time to time.

 

“Company” means

ACAS Business Loan LLC, 2002–1, a Delaware limited liability company.

 

A-1

 

“Control” means

the possession, directly or indirectly, of the power to direct or cause the

direction of the management or policies of a Person, whether through the

ownership of voting securities or general partnership or managing member

interests, by contract or otherwise.

 

“Controlling” and

“Controlled” shall have correlative meanings.  Without limiting the generality of the foregoing, a Person shall

be deemed to Control any other Person in which it owns, directly or indirectly,

a majority of the ownership interests.

 

“Covered Persons”

has the meaning set forth in Section 20(a).

 

“Independent Manager”

means an individual who (i) is not and has not been employed by ACAS or any of

its subsidiaries or Affiliates, as a director, officer, employee, partner,

attorney or counsel within the five years immediately prior to such

individual’s appointment as an Independent Manager; (ii) is not (and is not

Affiliated with a company or a firm that is) a significant advisor or

consultant to ACAS or any of its subsidiaries and Affiliates; (iii) does not

have significant personal services contract(s) with ACAS or any of its

subsidiaries or Affiliates; (iv) is not Affiliated with a tax-exempt entity

that receives significant contributions from ACAS or any of its subsidiaries or

Affiliates; (v) is not the beneficial owner at the time of such individual’s

appointment as an Independent Manager, or at any time thereafter while serving

as an Independent Manager, of any beneficial or economic interest in Company or

its Affiliates; and (vi) is not a spouse, parent, sibling or child of any

person described in clauses (i) through (v).

 

“Loan Assets” has

the meaning set forth in the Basic Documents.

 

“Loans” has the

meaning set forth in the Basic Documents.

 

“Management Agreement”

means the agreement of the Managers in the form attached hereto as Schedule C.  The Management Agreement shall be deemed incorporated into, and a

part of, this Agreement.

 

“Managers” means

the Persons elected to the Board of Managers from time to time by the Member,

including the Independent Managers, in their capacity as managers of the

Company.  A Manager is hereby designated

as a “manager” of the Company within the meaning of Section 18–101(10) of

the Act.

 

“Material Action”

means to consolidate or merge the Company with or into any Person, or sell all

or substantially all of the assets of the Company, or to institute proceedings

to have the Company be adjudicated bankrupt or insolvent, or consent to the

institution of bankruptcy or insolvency proceedings against the Company or file

a petition seeking, or consent to, reorganization or relief with respect to the

Company under any applicable federal or state law relating to bankruptcy, or

consent to the appointment of a receiver, liquidator, assignee, trustee,

sequestrator (or other similar official) of the Company or a substantial part

of its property, or make any assignment for the benefit of creditors of the Company,

or admit in writing the Company’s inability to pay its debts generally as they

become due, or, to the fullest extent permitted by law, take action in

furtherance of any such action, or dissolve or liquidate the Company.

 

“Member” means

American Capital Strategies, Ltd., as the initial member of the Company, and

includes any Person admitted as an additional member of the Company or a

substitute member of the Company pursuant to the provisions of this Agreement,

each in its capacity as a member of the Company; provided, however, the term

“Member” shall not include the Special Members.

 

A-2

 

“Obligations”

shall mean the indebtedness, liabilities and obligations of the Company under

or in connection with this Agreement, the other Basic Documents or any related

document in effect as of any date of determination.

 

“Officer” means an

officer of the Company described in Section 11.

 

“Officer’s Certificate”

means a certificate signed by any Officer of the Company who is authorized to

act for the Company in matters relating to the Company.

 

“Person” means any

individual, corporation, partnership, joint venture, limited liability company,

limited liability partnership, association, joint stock company, trust,

unincorporated organization, or other organization, whether or not a legal

entity, and any governmental authority.

 

“Rating Agency”

has the meaning assigned to that term in the Basic Documents.

 

“Rating Agency

Condition” means, with respect to any action, that each Rating Agency shall

have been given ten days prior notice thereof and that each of the Rating

Agencies shall have notified the Company in writing that such action will not

result in a reduction or withdrawal of the then current rating by such Rating

Agency of any outstanding Class (as defined in the Basic Documents) with

respect to which such Rating Agency has previously issued a rating.

 

“Special Member”

means, upon such person’s admission to the Company as a member of the Company

pursuant to Section 5(c), a person acting as Independent Manager, in such

person’s capacity as a member of the Company. 

A Special Member shall only have the rights and duties expressly set

forth in this Agreement.

 

B.            Rules

of Construction

 

Definitions in this

Agreement apply equally to both the singular and plural forms of the defined

terms.  The words “include” and

“including” shall be deemed to be followed by the phrase “without limitation.”

The terms “herein,” “hereof’ and “hereunder” and other words of similar import

refer to this Agreement as a whole and not to any particular Section, paragraph

or subdivision.  The Section titles

appear as a matter of convenience only and shall not affect the interpretation

of this Agreement.  All Section,

paragraph, clause, Exhibit or Schedule references not attributed to a

particular document shall be references to such parts of this Agreement.

 

A-3

 

SCHEDULE B

 

Member

 

	

  Name

  	

   

  	

  Mailing Address

  	

   

  	

  Agreed Value of

  Capital Contribution

  	

   

  	

  Membership

  Interest

  	

   

  
	

  American Capital

  Strategies, Ltd.

  	

   

  	

  2 Bethesda Metro Cr.,

  14th Floor

  Bethesda, Maryland  20814

  	

   

  	

  $

  	

  100.00

  	

   

  	

  100

  	

  %

  
									

 

B-1

 

SCHEDULE C

 

Management

Agreement

 

March

    , 2002

 

ACAS BUSINESS LOAN LLC, 2002–1

2 Bethesda Metro Center, 14th Floor

Bethesda, Maryland 20184

 

Re:                               Management Agreement –ACAS Business

Loan LLC. 2002–1

 

Ladies and Gentlemen:

 

For good and valuable

consideration, each of the undersigned Persons, who have been designated as

Managers of ACAS Business Loan LLC, 2002–1, a Delaware limited liability

company (the “Company”), in accordance with the Limited Liability

Company Agreement of the Company, dated as of March     ,

2002, as it may be amended or restated from time to time (the “LLC Agreement”),

hereby agree as follows:

 

1.             Each of the undersigned accepts such Person’s rights and

authority as a Manager under the LLC Agreement and agrees to perform and

discharge such Person’s duties and obligations as a Manager under the LLC

Agreement, and further agrees that such rights, authorities, duties and

obligations under the LLC Agreement shall continue until such Person’s

successor as a Manager is designated or until such Person’s resignation or

removal as a Manager in accordance with the LLC Agreement.  Each of the undersigned agrees and

acknowledges that it has been designated as a “manager” of the Company within

the meaning of the Delaware Limited Liability Company Act.

 

2.             So long as any Obligation is outstanding, each of the

undersigned agrees, solely in its capacity as a creditor of the Company on

account of any indemnification or other payment owing to the undersigned by the

Company, not to acquiesce, petition or otherwise invoke or cause the Company to

invoke the process of any court or governmental authority for the purpose of

commencing or sustaining a case against the Company tinder any federal or state

bankruptcy, insolvency or similar law or appointing a receiver, liquidator,

assignee, trustee, custodian, sequestrator or other similar official of the

Company or any substantial part of the property of the Company, or ordering the

winding up or liquidation of the affairs of the Company.

 

3.             THIS MANAGEMENT AGREEMENT SHALL BE GOVERNED BY AND

CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, AND ALL RIGHTS

AND REMEDIES SHALL BE GOVERNED BY SUCH LAWS WITHOUT REGARD TO PRINCIPLES OF

CONFLICTS OF LAWS.

 

Initially capitalized

terms used and not otherwise defined herein have the meanings set forth in the

LLC Agreement.

 

This Management Agreement

may be executed in any number of counterparts, each of which shall be deemed an

original of this Management Agreement and all of which together shall

constitute one and the same instrument.

 

C-1

 

IN WITNESS WHEREOF, the

undersigned have executed this Management Agreement as of the day and year

first above written.

 

	

   

  	

   

  	

   

  
	

   

  	

  William Holloran

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Evelyne S. Steward

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

   

  	

   

  
	

   

  	

  Malon Wilkus

  	

   

  

 

C-2

 

SCHEDULE D

 

Managers

 

1.             William

Holloran (Independent Manager)

 

2.             Evelyne

S. Steward (Independent Manager)

 

3.             Malon

Wilkus

 

D-1

 

SCHEDULE E

 

	

  OFFICERS

  	

   

  	

  TITLE

  
	

   

  	

   

  	

   

  
	

  Malon Wilkus

  	

   

  	

  President

  
	

   

  	

   

  	

   

  
	

  Adam Blumenthal

  	

   

  	

  Vice President

  
	

   

  	

   

  	

   

  
	

  John Erickson

  	

   

  	

  Vice President

  
	

   

  	

   

  	

   

  
	

  David Gladstone

  	

   

  	

  Vice President

  
	

   

  	

   

  	

   

  
	

  Roland Cline

  	

   

  	

  Vice President

  
	

   

  	

   

  	

   

  
	

  John Erickson

  	

   

  	

  Secretary

  

 

1Amend to L&S Agmt

Exhibit

10.31

FIRST AMENDMENT TO AMENDED AND

RESTATED FINANCING AGREEMENT

 

                THIS FIRST AMENDMENT TO AMENDED AND RESTATED

FINANCING AGREEMENT (this “Amendment”) is made and entered into as of

this 31st day of December, 2001, by and among THE CIT GROUP/BUSINESS CREDIT, INC.

a New York corporation (hereinafter “CITBC”), in its individual capacity and

as Agent (hereinafter the “Agent”) for itself and any other party

hereafter becoming a Lender pursuant to Section 13 of the Agreement (as

hereinafter defined), each individually sometimes referred to as a “Lender”

and collectively the “Lenders”), Lone Star Technologies, Inc.  (herein “Parent”), a Delaware

corporation, Lone Star Steel Company (herein “LSSC”), a Delaware

corporation, Fintube Technologies, Inc. (herein “FTI”), an Oklahoma

corporation, Lone Star Logistics, Inc., a Texas corporation (“Logistics”),

T&N

Lone Star Warehouse Co., a Texas corporation (“T&N Warehouse”),

Texas

& Northern Railway Company, a Texas corporation (“T&N

Railway”), Fintube Canada, Inc., a Delaware corporation (“FCI”)

and Bellville

Tube Company, L.P., a Texas limited partnership, as successor in

interest by conversion to Bellville Tube Corporation, a Texas corporation (“BTCLP”),

(herein Parent, LSSC, FTI, Logistics, T&N Warehouse, T&N Railway, FCI

and BTCLP each individually a “Company” and collectively as the “Companies”),

Environmental

Holdings,

Inc., a Delaware corporation (“EHI”), Zinklahoma, Inc., a Delaware

corporation (“Zinklahoma”), Lone Star Steel International, Inc., a

Delaware corporation (“Steel International”), Lone Star Steel Sales Company,

a Delaware corporation (“Steel Sales”), Rotac, Inc., a Texas

corporation (“Rotac”), and, Lone Star ST Holdings, Inc., a Delaware

corporation (“ST Holdings”), (herein EHI, Zinklahoma, Steel

International, Steel Sales, Rotac, and ST Holdings each individually as “Guarantor”

and collectively as the “Guarantors”), Bellville Tube General, LLC,

a Nevada limited liability company (“BTG”) and Bellville Tube Limited, LLC,

a Nevada limited liability company (“BTL”) (herein BTG and BTL each

individually as “New Obligor” and collectively as the “New Obligors”).

 

RECITALS

 

                A.            WHEREAS,

pursuant to the terms and subject to the conditions of that certain Amended and

Restated Financing Agreement dated as of October 8, 2001 between the Agent, the

Companies and the Guarantors (such Amended and Restated Financing Agreement, as

the same is hereby amended and may hereafter be amended from time to time,

being hereinafter referred to as the “Agreement”), the Companies were

granted a $100,000,000 revolving line of credit which included a letter of

credit facility;

 

B.            WHEREAS, payment of the Obligations of the Companies is

supported by the guaranties of the Guarantors pursuant to that certain Guaranty

dated as of October 8, 2001executed by the Guarantors for the benefit of the

Agent and the Lenders (the “Guaranty”);

D.            WHEREAS, to secure, in part, the Obligations (as defined

in the Agreement), (i) the Companies and the Guarantors have heretofore

executed in favor of the Agent certain Loan Documents (as defined in the

Agreement), including, without limitation, the Guaranty, which Loan Documents

shall continue as amended in connection herewith in full force and effect upon

the execution of this Amendment, all of the Loan Documents to continue to

secure the payment by the Companies of the Obligations, all as more fully set

forth therein and herein;

1

 

E.             WHEREAS, the Companies have requested a waiver of the

30-day prior notice period for certain events permitted under the Agreement;

F.             WHEREAS, in furtherance of the foregoing and to evidence

the agreements of the parties hereto in relation thereto the parties hereto

desire to amend the Agreement as hereinafter provided;

                NOW, THEREFORE, in consideration of the premises

herein contained and other good and valuable consideration, the receipt and

sufficiency of which are hereby acknowledged, the parties, intending to be

legally bound, agree as follows:

 

AGREEMENT

 

ARTICLE

I

Definitions

 

                1.01        Capitalized

terms used in this Amendment are defined in the Agreement, as amended hereby,

unless otherwise stated.

 

ARTICLE

II

Amendments

to Agreement

 

                Effective as of the respective date herein indicated,

the Agreement is hereby amended as follows:

 

                2.01        Amendment

and Replacement of Bellville Tube Corporation and the Definition BTC.  Effective as of the date of

execution of this Amendment, (i) the reference to “Bellville Tube Corporation,

a Texas corporation (“BTC”)” in the preamble to the Agreement

is hereby deleted and replaced with “Bellville Tube Company, L.P., a Texas

limited partnership, successor in interest by conversion to Bellville Tube

Corporation, a Texas corporation (“BTCLP”)”, and (ii) all references to

the term “BTC” in the Agreement shall be deleted and replaced with the term

“BTCLP”.

 

                2.02        Amendment

of Definition of “Guarantor” and “Guarantors”.  Effective as of the date of execution of this

Amendment, the references to “Guarantor” and “Guarantors” in the preamble to

the Agreement shall be amended to include BTG and BTL.

 

ARTICLE III

Assumption of Obligations and

Ratification and Grant of Liens

 

3.01        Assumption

of Obligations.  Effective December 31, 2001, BTC

converted from a Texas corporation to a Texas limited partnership and changed

its name to Bellville Tube Company, L.P. (collectively, the “Conversion”).  BTCLP hereby acknowledges and agrees that as

a result of the Conversion, by operation of law, BTCLP is liable for all

Obligations of BTC, and BTCLP hereby assumes all Obligations of BTC as of

December 31, 2001 and all Obligations incurred thereafter (including, without

limitation, the indebtedness and obligations under the Agreement and the other

Loan Documents).

 

3.02        Ratification

and Grant of Lien. BTCLP hereby acknowledges and agrees that as a result of the

Conversion, by operation of law, BTCLP became the owner of all the assets of

BTC as of December 31, 2001. BTCLP also acknowledges and agrees that such

assets were pledged by BTC as Collateral under the Agreement and that after the

Conversion, by operation of law, such assets remained Collateral under the

Agreement and subject to the lien granted thereunder to Agent on behalf of the

Lenders. BTCLP hereby grants to Agent for the benefit of the Lenders a security

interest in all Collateral now or hereafter owned by BTCLP pursuant to the

terms and provisions of Section 6 of the Agreement and acknowledges and agrees

that the security interest granted hereunder in any assets previously owned by

BTC is a renewal and continuation of the security interest in such assets

previously granted by BTC under the Agreement.

2

 

3.03        Assumption

of Obligations and Duties Under the Agreement. BTCLP hereby (a) reaffirms all

representations and warranties made by BTC under the Agreement and the other

Loan Documents to which BTC was a party, (b) assumes all covenants, obligations

and duties of BTC under the Agreement and the other Loan Documents to which BTC

was a party, and (c) agrees to be bound by the terms and provisions of the

Agreement as a Company and Obligor thereunder and to be bound by the terms and

provisions of the other Loan Documents to which BTC was a party to the same

extent and with the same force and effect as if BTCLP had been named as BTC in

each of the Loan Documents.

 

3.04        Assumption

of Obligations and Grant of Lien by BTG and BTL. 

Effective as of the date of this Amendment, the new Obligors each agrees

(i) to be a Guarantor and Obligor under the Agreement and under that certain

Subordination Agreement dated October 8, 2001 executed by the

Companies and the Guarantors for the benefit of Agent and the other Lenders

(the “Subordination Agreement”), (ii) to be bound by the terms and

provisions of the Agreement as a Guarantor and Obligor thereunder and to be

bound by the terms of the Subordination Agreement as a Guarantor and Obligor

thereunder to the same extent and with the same force and effect as if the new

Obligors had been originally named as a party in each of such documents, (iii)

to assume all covenants, agreements and duties as a Guarantor and Obligor under

the Agreement and as a Guarantor and Obligor under the Subordination Agreement.

The New Obligors also hereby grant to Agent for the benefit of the Lenders a security

interest in all Collateral now or hereafter owned by the New Obligors pursuant

to the terms of Section 6 of the Agreement. 

The New Obligors also agree to execute and deliver to CIT concurrently

with the execution hereof, a guaranty agreement (in form and substance

satisfactory to Agent) guaranteeing the prompt payment and performance of all

of the Companies’ Obligations.

 

ARTICLE IV

Conditions Precedent

 

4.01        Conditions

to Effectiveness.  The effectiveness of this

Amendment is subject to the satisfaction of the following conditions precedent

in a manner satisfactory to CITBC, unless specifically waived in writing by

Agent:

 

                                (a)           Agent

shall have received each of the following, each in form and substance

satisfactory to Agent, in its sole discretion, and, where applicable, each duly

executed by each party thereto, other than Agent:

 

                                                                                (i)            This Amendment, duly executed by

Companies and the Guarantors;

 

                                                                                (ii)           A Guaranty duly signed by the New

Obligors;and

 

3

 

                                                                                (iii)          certified copies of the resolutions of

the Board of Directors of each of the Companies, the Guarantors and the New

Obligors authorizing the execution, delivery and performance of this Amendment

and any and all other Loan Documents executed by any of the Companies, the

Guarantors or the New Obligors in connection therewith, along with a

certificate of incumbency certified by the secretary of each of the Companies,

the Guarantors and the New Obligors with specimen signatures of the officers of

the Companies, the Guarantors and the New Obligors who are authorized to sign

such documents, all in form and substance satisfactory to the Agent; and

 

                                                                                (iv)          Pledge Amendment duly signed by the

Parent pledging all of its ownership interest in the New Obligors; and

 

                                                                                (v)           Pledge Agreements duly signed the New

Obligors pledging all of their ownership interest in BTCLP; and

 

                                                                                (vi)          Opinion from Fulbright & Jaworski

L.L.P. opining, in form and substance satisfactory to Agent, which shall cover

such matters incident to the transactions contemplated by this Amendment and

the other Loan Document as Agent may reasonably require and the Companies, the

Guarantors and the New Obligors hereby authorize and direct such counsel to

deliver such opinions to Agent; and

 

                                                                                (vii)         All other documents Agent may request

with respect to any matter relevant to this Amendment or the transactions

contemplated hereby.

 

                                (b)           The

representations and warranties contained herein and in the Agreement and the

other documents executed in connection with the Agreement (herein referred to

as “Loan Documents”), as each is amended hereby, shall be true and

correct as of the date hereof, as if made on the date hereof, except for such

representations and warranties as are by their express terms limited to a

specific date.

 

                                (c)           No

Default or Event of Default shall have occurred and be continuing, unless such

Default or Event of Default has been otherwise specifically waived in writing

by Agent.

 

                                (d)           All

corporate proceedings taken in connection with the transactions contemplated by

this Amendment and all documents, instruments and other legal matters incident

thereto shall be satisfactory to Agent.

 

ARTICLE V

Limited Waiver

 

                5.01        Limited Waiver. 

Pursuant to the request of the Obligors, the Agent and the Lenders

hereby waive the thirty (30) days prior written notice provision for the

Conversion required under Paragraph 7.09(e) of Section 7 of

the Agreement, such waiver being subject to the satisfaction of the conditions

precedent in Article IV of this Amendment and to the other terms, conditions

and provisions of this Amendment.  There

are no other waivers granted by the Agent and the Lenders relating to the

Agreement except the waiver specifically set forth in this Section 5.01

and the above 

 

4

 

waiver is effective only

in the specific instances and for the purposes for which given.

 

                5.02        No Other

Waivers.  Except as

otherwise specifically provided for in this Amendment, nothing contained herein

shall be construed as a waiver by Agent of any covenant or provision of the

Agreement, the other Loan Documents, this Amendment or any other contract or

instrument between the Obligors and Agent, and the failure of Agent at any time

or times hereafter to require strict performance by the Obligors of any

provision thereof shall not waive, affect or diminish any right of Agent to

thereafter demand strict compliance therewith. Agent hereby reserves all rights

granted under the Agreement, the other Loan Documents, this Amendment, and any

other contract or instrument between the Obligors and Agent.

 

 

ARTICLE

VI

Ratifications,

Representations and Warranties

 

                6.01        Ratifications. 

The terms and provisions set forth in this Amendment shall modify and

supersede all inconsistent terms and provisions set forth in the Agreement and

the other Loan Documents, and, except as expressly modified and superseded by

this Amendment, the terms and provisions of the Agreement and the other Loan

Documents are ratified and confirmed and shall continue in full force and

effect.  The Companies, the Guarantors

and Agent agree that the Agreement and the other Loan Documents, as amended

hereby, shall continue to be legal, valid, binding and enforceable in

accordance with their respective terms.

 

                6.02        Representations and Warranties. The Companies and the Guarantors hereby

represent and warrant to Agent that (a) the execution, delivery and performance

of this Amendment and any and all other Loan Documents executed and/or

delivered in connection herewith have been authorized by all requisite

corporate or limited partnership or limited liability company action (as

applicable) on the part of the Companies and the Guarantors and will not

violate the Articles (or Certificates) of Incorporation or Bylaws of the

Companies and the Guarantors that are corporations or the limited partnership

agreements or certificates of limited partnership of the Companies and the

Guarantors that are limited partnerships or the articles of formation/organization,

regulations or limited liability company agreements of the Companies that are

limited liability companies; (b) each of the Company’s and Guarantor’s Board of

Directors (or the general partner of the applicable limited partnership) or the

members or the Board of Managers of the applicable limited liability company

has authorized the execution, delivery and performance of this Amendment and

any and all other Loan Documents executed and/or delivered in connection

herewith; (c) the representations and warranties contained in the Agreement, as

amended hereby, and any other Loan Document are true and correct on and as of

the date hereof and on and as of the date of execution hereof as though made on

and as of each such date; (d) no Default or Event of Default under the

Agreement, as amended hereby, has occurred and is continuing, unless such

Default or Event of Default has been specifically waived in writing by Agent;

(e) the Companies and the Guarantors are in full compliance with all covenants

and agreements contained in the Agreement and the other Loan Documents, as

amended hereby; and (f) the Companies and the Guarantors have not amended their

Articles (or Certificates) of Incorporation or their Bylaws or similar

organizational documents since the date of the Agreement, except as otherwise

disclosed to Agent.

 

5

 

 

ARTICLE

VII

Miscellaneous

Provisions

 

                7.01        Survival of Representations and

Warranties.  All representations and warranties made in

the Agreement or any other Loan Document, including, without limitation,

any  document furnished in connection

with this Amendment, shall survive the execution and delivery of this Amendment

and the other Loan Documents, and no investigation by Agent or any closing shall

affect the representations and warranties or the right of Agent to rely upon

them.

 

                7.02        Reference to Agreement. 

Each of the Agreement and the other Loan Documents, and any and all

other Loan Documents, documents or instruments now or hereafter executed and

delivered pursuant to the terms hereof or pursuant to the terms of the

Agreement, as amended hereby, are hereby amended so that any reference in the

Agreement and such other Loan Documents to the Agreement shall mean a reference

to the Agreement, as amended hereby.

 

                7.03        Expenses of Agent. 

As provided in the Agreement, Companies agree to pay on demand all costs

and expenses incurred by Agent in connection with the preparation, negotiation,

and execution of this Amendment and the other Loan Documents executed pursuant

hereto and any and all amendments, modifications, and supplements thereto,

including, without limitation, the costs and fees of Agent’s legal counsel, and

all costs and expenses incurred by Agent in connection with the enforcement or

preservation of any rights under the Agreement, as amended hereby, or any other

Loan Documents, including, without, limitation, the costs and fees of Agent’s

legal counsel.

 

                7.04        Severability. 

Any provision of this Amendment held by a court of competent jurisdiction

to be invalid or unenforceable shall not impair or invalidate the remainder of

this Amendment and the effect thereof shall be confined to the provision so

held to be invalid or unenforceable.

 

                7.05        Successors and Assigns. 

This Amendment is binding upon and shall inure to the benefit of Agent

and Companies and their respective successors and assigns, except that

Companies may not assign or transfer any of their rights or obligations

hereunder without the prior written consent of Agent.

 

                7.06        Counterparts. 

This Amendment may be executed in one or more counterparts, each of

which when so executed shall be deemed to be an original, but all of which when

taken together shall constitute one and the same instrument.

 

                7.07        Effect of Waiver. 

No consent or waiver, express or implied, by Agent to or for any breach

of or deviation from any covenant or condition by Companies shall be deemed a

consent to or waiver of any other breach of the same or any other covenant,

condition or duty.

 

                7.08        Headings. 

The headings, captions, and arrangements used in this Amendment are for

convenience only and shall not affect the interpretation of this Amendment.

 

                7.09        Applicable Law. 

THIS AMENDMENT AND ALL OTHER LOAN DOCUMENTS EXECUTED PURSUANT HERETO

SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE PERFORMABLE IN AND SHALL BE

GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

6

 

                7.10        Final Agreement. 

THE AGREEMENT AND THE OTHER LOAN DOCUMENTS, EACH AS AMENDED HEREBY,

REPRESENT THE ENTIRE EXPRESSION OF THE PARTIES WITH RESPECT TO THE SUBJECT

MATTER HEREOF ON THE DATE THIS AMENDMENT IS EXECUTED.  THE AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS AMENDED HEREBY,

MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT

ORAL AGREEMENTS OF THE PARTIES.  THERE

ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.  NO MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY

PROVISION OF THIS AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED

BY COMPANIES AND AGENT.

 

                7.11        Release by the Companies. THE COMPANIES HEREBY ACKNOWLEDGE THAT

THEY HAVE NO DEFENSE, COUNTERCLAIM, OFFSET, CROSS–COMPLAINT, CLAIM OR

DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR

ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE “OBLIGATIONS” OR TO

SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM AGENT.  THE COMPANIES HEREBY VOLUNTARILY AND

KNOWINGLY RELEASE AND FOREVER DISCHARGE AGENT, THE OTHER LENDERS, AND THEIR

RESPECTIVE PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS

(COLLECTIVELY, THE “RELEASED PARTIES”), FROM ALL POSSIBLE CLAIMS,

DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES

WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR

UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY,

ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS AMENDMENT IS

EXECUTED, WHICH THE COMPANIES MAY NOW OR HEREAFTER HAVE AGAINST THE RELEASED PARTIES,

IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT,

TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY

“LOANS”, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING,

RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL

RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE AGREEMENT OR

OTHER LOAN DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

 

 

7.12  Release by the Guarantors.  Each Guarantor hereby consents to the

terms of this Amendment, confirms and ratifies the terms of the Guaranty

executed by the Guarantors and acknowledges that the Guaranty is in full force

and effect and ratifies the same, that the undersigned each has no defense,

counterclaim, set–off or any other claim to diminish the undersigned’s

liability under such document. THE GUARANTORS EACH HEREBY VOLUNTARILY AND KNOWINGLY

RELEASES AND FOREVER DISCHARGES THE RELEASED PARTIES, FROM ALL POSSIBLE CLAIMS,

DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES

WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR

UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY,

ORIGINATING IN WHOLE OR IN PART ON OR BEFORE THE DATE THIS 

 

7

 

AMENDMENT IS EXECUTED, WHICH THE GUARANTORS MAY NOW OR

HEREAFTER HAVE AGAINST THE RELEASED PARTIES, IF ANY, AND IRRESPECTIVE OF

WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR

REGULATIONS, OR OTHERWISE, AND ARISING FROM ANY “LOANS”, INCLUDING, WITHOUT

LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR

RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE

EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE LOAN AGREEMENT OR OTHER CREDIT

DOCUMENTS, AND NEGOTIATION FOR AND EXECUTION OF THIS AMENDMENT.

 

[The Remainder of this

Page Intentionally Left Blank]

 

8

 

                IN WITNESS WHEREOF, this Amendment has been executed

and is effective as of the date first above–written.

 

COMPANIES:

 

LONE STAR TECHNOLOGIES, INC.

FINTUBE

TECHNOLOGIES, INC.

LONE

STAR STEEL COMPANY

LONE STAR LOGISTICS, INC.

T&N LONE STAR WAREHOUSE CO.

TEXAS & NORTHERN RAILWAY COMPANY

FINTUBE CANADA, INC.

 

 

	

  By:

  	

  /s/ Robert F. Spears

  	 

	

  Name:

  	

  Robert F. Spears

  	 

	

  Title:

  	

  Vice President of each

  of the foregoing companies

  

 

BELLVILLE TUBE COMPANY, L.P.

as successor in

interest by conversion to Bellville Tube Corporation

 

By:  Bellville Tube General, LLC, its general

partner

 

	

  By:

  	

  /s/ Robert F. Spears

  	 

	

  Name:

  	

  Robert F. Spears

  	 

	

  Title:

  	

  Vice President

  
				

 

GUARANTORS:

 

ENVIRONMENTAL HOLDINGS, INC.

ZINKLAHOMA, INC.

LONE STAR STEEL INTERNATIONAL, INC.

LONE STAR STEEL SALES COMPANY

ROTAC, INC.

LONE STAR ST HOLDINGS, INC.

 

 

	

  By:

  	

  /s/ Robert F.

  Spears

  	 

	

  Name:

  	

  Robert F. Spears

  	 

	

  Title:

  	

  Vice President

  of each of the

  foregoing

  companies

  
	

   

  
				

 

9

 

NEW OBLIGORS:

 

BELLVILLE TUBE GENERAL, LLC

 

 

	

  By:

  	

  /s/ Robert F. Spears

  	 

	

  Name:

  	

  Robert F. Spears

  	 

	

  Title:

  	

  Vice President

  
				

 

 

BELLVILLE TUBE LIMITED, LLC

 

 

	

  By:

  	

  /s/ Richard F. Klumpp

  	 

	

  Name:

  	

  Richard F.

  Klumpp

  	 

	

  Title:

  	

  Manager

  
				

 

LENDERS:

 

THE CIT GROUP/BUSINESS CREDIT, INC.

as Agent and

Lender

 

 

	

  By:

  	

   

  	

  /s/ Mark Porter

  
	

  Name:

  	

  Mark Porter

  
	

  Title:

  	

   

  	

  Vice President

  
				

 

 

10

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