Document:

Indemnification Agreement

 Exhibit 10.2 
  
 INDEMNIFICATION AGREEMENT 
  
 This Indemnification Agreement (this “Agreement”), is made and entered into as of the 11th day of April, 2003 by and between Syntroleum
Corporation, a Delaware corporation (the “Corporation”), and Richard Edmonson (“Indemnitee”). 
  
 WITNESSETH: 
  
 WHEREAS, Indemnitee is currently serving or is about to begin serving as a director and/or officer of the Corporation and/or in another Corporate Status,
and Indemnitee is willing, subject to, among other things, the Corporation’s execution and performance of this Agreement, to continue in or assume such capacity or capacities; and 
  
 WHEREAS, the Bylaws of the Corporation provide that the Corporation shall indemnify directors and officers of the
Corporation in the manner set forth therein; and 
  
 WHEREAS, the
Corporation and Indemnitee desire to enter into this Agreement to induce Indemnitee to provide services as contemplated hereby and the Corporation has deemed it to be in its best interest to enter into this Agreement with Indemnitee. 
  
 NOW, THEREFORE, in consideration of Indemnitee’s agreement to provide
services to the Corporation and/or certain of its affiliates as contemplated by this Agreement, the mutual agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows. 
  
 1. Certain Definitions

  
 As used herein, the following words and terms shall have the
following respective meanings (whether singular or plural): 
  
 “Change of Control” means a change in control of the Corporation after the date Indemnitee acquired his Corporate Status, which shall be deemed to have occurred in any one of the following circumstances occurring after such
date: (i) there shall have occurred an event required to be reported with respect to the Corporation in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item or any similar schedule or form) promulgated under
the Securities Exchange Act of 1934, as amended (the “Exchange Act”), whether or not the Corporation is then subject to such reporting requirement; (ii) any “person” (as such term is used in Sections 13(d) and 14(d) of the
Exchange Act) shall have become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation representing 40% or more of the combined voting power of the
Corporation’s then outstanding voting securities without prior approval of at least two-thirds of 

 Syntroleum Amended and Restated Indemnification Agreement 

 CONFIDENTIAL 
  

 
the members of the Board of Directors in office immediately prior to such person attaining such percentage interest; (iii) the Corporation is a party to a
merger, consolidation, sale of assets or other reorganization, or a proxy contest, as a consequence of which members of the Board of Directors in office immediately prior to such transaction or event constitute less than a majority of the Board of
Directors thereafter; or (iv) during any period of two consecutive years, individuals who at the beginning of such period constituted the Board of Directors (including, for this purpose, any new director whose election or nomination for election by
the Corporation’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who were directors at the beginning of such period) cease for any reason to constitute at least a majority of the Board of
Directors. 
  
 “Corporate Status” describes the
status of Indemnitee as a director, officer, employee, agent or fiduciary of the Corporation or of any other corporation, partnership, limited liability company, association, joint venture, trust, employee benefit plan or other enterprise that
Indemnitee is or was serving at the request of the Corporation. 
  
 “Court” means the District Court of Tulsa County of the State of Oklahoma or any other court of competent jurisdiction. 
  
 “DGCL” means the Delaware General Corporation Law, as amended from time to time. 
  
 “Expenses” shall include all reasonable attorneys’
fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses, duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees, and all other disbursements or expenses of the types
customarily incurred in connection with prosecuting, defending, preparing to prosecute or defend, investigating, or being or preparing to be a witness in a Proceeding. 
  
 “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of
corporation law and neither presently is, nor in the five years previous to his selection or appointment has been, retained to represent: (i) the Corporation or Indemnitee in any matter material to either such party or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. 
  
 “Matter” is a claim, a material issue or a substantial request for relief. 
  
 “Proceeding” includes any action, suit, arbitration, alternate dispute resolution mechanism, investigation, administrative hearing or any
other proceeding, whether civil, criminal, administrative or investigative, except one initiated by Indemnitee pursuant to Section 6.01 of this Agreement to enforce his rights under this Agreement. 
  

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 2. Services by Indemnitee 
  

	2.01	Services by Indemnitee. Indemnitee agrees to serve or continue to serve in his current capacity or capacities as a director, officer, employee, agent or fiduciary of the
Corporation. Indemnitee also agrees to serve, as the Corporation may request from time to time, as a director, officer, employee, agent or fiduciary of any other corporation, partnership, limited liability company, association, joint venture, trust
or other enterprise in which the Corporation has an interest. Indemnitee and the Corporation each acknowledge that they have entered into this Agreement as a means of inducing Indemnitee to serve the Corporation in such capacities.

  

	2.02	Termination of Services. Indemnitee may at any time and for any reason resign from such position or positions (subject to any other contractual obligation or any obligation
imposed by operation of law). The Corporation shall have no obligation under this Agreement to continue Indemnitee in any such position for any period of time and shall not be precluded by the provisions of this Agreement from removing or
terminating Indemnitee from any such position at any time. 

  
 3. Indemnification 
  

	3.01	General. The Corporation shall, to the fullest extent permitted by applicable law in effect on the date hereof, and to such greater extent as applicable law may thereafter
permit, indemnify and hold Indemnitee harmless from and against any and all losses, liabilities, claims, damages and, subject to Section 3.02, Expenses (as this and all other capitalized words are defined in Article 1. of this
Agreement), whatsoever arising out of any event or occurrence related to the fact that Indemnitee is or was a director or officer of the Corporation or is or was serving in another Corporate Status. 

  

	3.02	Expenses. If Indemnitee is, by reason of his Corporate Status, a party to and is successful, on the merits or otherwise, in any Proceeding, he shall be indemnified against
all Expenses actually and reasonably incurred by him or on his behalf in connection therewith. If Indemnitee is not wholly successful in such Proceeding but is successful, on the merits or otherwise, as to any Matter in such Proceeding, the
Corporation shall indemnify Indemnitee against all Expenses actually and reasonably incurred by him or on his behalf relating to such Matter. The termination of any Matter in such a Proceeding by dismissal, with or without prejudice, shall be deemed
to be a successful result as to such Matter. To the extent that the Indemnitee is, by reason of his Corporate Status, a witness in any Proceeding, he shall be indemnified against all Expenses actually and reasonably incurred by him or on his behalf
in connection therewith. 

  

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 4. Advancement of Expenses 
  

	4.01	Advances. In the event of any threatened or pending action, suit or proceeding in which Indemnitee is a party or is involved and that may give rise to a right of
indemnification under this Agreement, following written request to the Corporation by Indemnitee, the Corporation shall promptly pay to Indemnitee amounts to cover expenses reasonably incurred by Indemnitee in such proceeding in advance of its final
disposition upon the receipt by the Corporation of (i) a written undertaking executed by or on behalf of Indemnitee providing that Indemnitee will repay the advance if it shall ultimately be determined that Indemnitee is not entitled to be
indemnified by the Corporation as provided in this Agreement and (ii) satisfactory evidence as to the amount of such expenses. 

  

	4.02	Repayment of Advances or Other Expenses. Indemnitee agrees that Indemnitee shall reimburse the Corporation for all expenses paid by the Corporation in defending any civil,
criminal, administrative or investigative action, suit or proceeding against Indemnitee in the event and only to the extent that it shall be determined pursuant to the provisions of this Agreement or by final judgment or other final adjudication
under the provisions of any applicable law that Indemnitee is not entitled to be indemnified by the Corporation for such expenses. 

  
 5. Procedure for Determination of Entitlement to Indemnification 
  

	5.01	Request for Indemnification. To obtain indemnification, Indemnitee shall submit to the Secretary of the Corporation a written claim or request. Such written claim or request
shall contain sufficient information to reasonably inform the Corporation about the nature and extent of the indemnification or advance sought by Indemnitee. The Secretary of the Corporation shall promptly advise the Board of Directors of such
request. 

  

	5.02	Determination of Entitlement; No Change of Control. If there has been no Change of Control at the time the request for indemnification is submitted, Indemnitee’s
entitlement to indemnification shall be determined in accordance with Section 145(d) of the DGCL. If entitlement to indemnification is to be determined by Independent Counsel, the Corporation shall furnish notice to Indemnitee within 10 days after
receipt of the request for indemnification, specifying the identity and address of Independent Counsel. The Indemnitee may, within 14 days after receipt of such written notice of selection, deliver to the Corporation a written objection to such
selection. Such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of Independent Counsel and the objection shall set forth with particularity the factual basis for such assertion. If
there is an objection to the selection of Independent Counsel, either the Corporation or Indemnitee may petition the Court for a determination that the objection is without a reasonable basis and/or for the appointment of Independent Counsel
selected by the Court. 

  

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	5.03	Determination of Entitlement; Change of Control. If there has been a Change of Control at the time the request for indemnification is submitted, Indemnitee’s entitlement
to indemnification shall be determined in a written opinion by Independent Counsel selected by Indemnitee. Indemnitee shall give the Corporation written notice advising of the identity and address of the Independent Counsel so selected. The
Corporation may, within seven days after receipt of such written notice of selection, deliver to the Indemnitee a written objection to such selection. Indemnitee may, within five days after the receipt of such objection from the Corporation, submit
the name of another Independent Counsel and the Corporation may, within seven days after receipt of such written notice of selection, deliver to the Indemnitee a written objection to such selection. Any objections referred to in this Section
5.03 may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of Independent Counsel and such objection shall set forth with particularity the factual basis for such assertion. Indemnitee may
petition the Court for a determination that the Corporation’s objection to the first and/or second selection of Independent Counsel is without a reasonable basis and/or for the appointment as Independent Counsel of a person selected by the
Court. 

  

	5.04	Procedures of Independent Counsel. If a Change of Control shall have occurred before the request for indemnification is sent by Indemnitee, Indemnitee shall be presumed
(except as otherwise expressly provided in this Agreement) to be entitled to indemnification upon submission of a request for indemnification in accordance with Section 5.01 of this Agreement, and thereafter the Corporation shall have the
burden of proof to overcome the presumption in reaching a determination contrary to the presumption. The presumption shall be used by Independent Counsel as a basis for a determination of entitlement to indemnification unless the Corporation
provides information sufficient to overcome such presumption by clear and convincing evidence or the investigation, review and analysis of Independent Counsel convinces him by clear and convincing evidence that the presumption should not apply.

  

	    	 Except in the event that the determination of entitlement to indemnification is to be made by Independent Counsel, if the person or persons empowered under
Section 5.02 or 5.03 of this Agreement to determine entitlement to indemnification shall not have made and furnished to Indemnitee in writing a determination within 60 days after receipt by the Corporation of the request therefor, the
requisite determination of entitlement to indemnification shall be deemed to have been made and Indemnitee shall be entitled to such indemnification unless Indemnitee knowingly misrepresented a material fact in connection with the request for
indemnification or such indemnification is prohibited by applicable law. The termination of any Proceeding or of any Matter therein, by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, shall not
(except as otherwise expressly provided in this Agreement) of itself adversely affect the right of Indemnitee to indemnification or create a presumption that Indemnitee did not act in good faith and in a manner that he reasonably believed to be in
or not opposed to 

  

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the best interests of the Corporation, or with respect to any criminal Proceeding, that Indemnitee had reasonable cause to believe that his conduct was
unlawful. A person who acted in good faith and in a manner he reasonably believed to be in the interest of the participants and beneficiaries of an employee benefit plan of the Corporation shall be deemed to have acted in a manner not opposed to the
best interests of the Corporation. 

  

	    	For purposes of any determination hereunder, a person shall be deemed to have acted in good faith and in a manner he reasonably believed to be in or not opposed to the best
interests of the Corporation, or, with respect to any criminal action or Proceeding, to have had no reasonable cause to believe his conduct was unlawful, if his action is based on the records or books of account of the Corporation or another
enterprise or on information supplied to him by the officers of the Corporation or another enterprise in the course of their duties or on the advice of legal counsel for the Corporation or another enterprise or on information or records given or
reports made to the Corporation or another enterprise by an independent certified public accountant or by an appraiser or other expert selected with reasonable care by the Corporation or another enterprise. The term “another enterprise” as
used in this Section shall mean any other corporation or any partnership, limited liability company, association, joint venture, trust, employee benefit plan or other enterprise of which such person is or was serving at the request of the
Corporation as a director, officer, employee or agent. The provisions of this paragraph shall not be deemed to be exclusive or to limit in any way the circumstances in which an Indemnitee may be deemed to have met the applicable standards of conduct
for determining entitlement to rights under this Agreement. 

  

	5.05	Independent Counsel Expenses. The Corporation shall pay any and all reasonable fees and expenses of Independent Counsel incurred acting pursuant to this Article 5. and
in any proceeding to which it is a party or witness in respect of its investigation and written report and shall pay all reasonable fees and expenses incident to the procedures in which such Independent Counsel was selected or appointed. No
Independent Counsel may serve if a timely objection has been made to his selection until a Court has determined that such objection is without a reasonable basis. 

  
 6. Certain Remedies of Indemnitee 
  

	6.01	Adjudication. In the event that (i) a determination is made pursuant to Section 5.02 or 5.03 hereof that Indemnitee is not entitled to indemnification under
this Agreement; (ii) advancement of Expenses is not timely made pursuant to Section 4.01 of this Agreement; (iii) Independent Counsel has not made and delivered a written opinion determining the request for indemnification (a) within 90 days
after being appointed by the Court, or (b) within 90 days after objections to his selection have been overruled by the Court or (c) within 90 days after the time for the Corporation or Indemnitee to object to his selection; or (iv) payment of
indemnification is not made within five days after a determination of entitlement to indemnification has been made or deemed to have been 

  
  

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made pursuant to Section 5.02, 5.03 or 5.04 of this Agreement, Indemnitee shall be entitled to an adjudication in the Court, or in any
other court of competent jurisdiction, of his entitlement to such indemnification or advancement of Expenses. In the event that a determination shall have been made that Indemnitee is not entitled to indemnification, any judicial proceeding or
arbitration commenced pursuant to this Section 6.01 shall be conducted in all respects as a de novo trial on the merits and Indemnitee shall not be prejudiced by reason of that adverse determination. If a Change of Control shall have
occurred, in any judicial proceeding commenced pursuant to this Section 6.01, the Corporation shall have the burden of proving that Indemnitee is not entitled to indemnification or advancement of Expenses, as the case may be. If a
determination shall have been made or deemed to have been made that Indemnitee is entitled to indemnification, the Corporation shall be bound by such determination in any judicial proceeding commenced pursuant to this Section 6.01, or
otherwise, unless Indemnitee knowingly misrepresented a material fact in connection with the request for indemnification, or such indemnification is prohibited by law. 

  

	    	The Corporation shall be precluded from asserting in any judicial proceeding commenced pursuant to this Section 6.01 that the procedures and presumptions of this Agreement
are not valid, binding and enforceable, and shall stipulate in any such proceeding that the Corporation is bound by all provisions of this Agreement. In the event that Indemnitee, pursuant to this Section 6.01, seeks a judicial adjudication
to enforce his rights under, or to recover damages for breach of, this Agreement, Indemnitee shall be entitled to recover from the Corporation, and shall be indemnified by the Corporation against, any and all Expenses actually and reasonably
incurred by him in such judicial adjudication, but only if he prevails therein. If it shall be determined in such judicial adjudication that Indemnitee is entitled to receive part but not all of the indemnification or advancement of Expenses sought,
the Expenses incurred by Indemnitee in connection with such judicial adjudication or arbitration shall be appropriately prorated. 

  
 7. Participation by the Corporation 
  

	7.01	Participation by the Corporation. With respect to any such claim, action, suit, proceeding or investigation as to which Indemnitee notifies the Corporation of the
commencement thereof: (a) the Corporation will be entitled to participate therein at its own expense; (b) except as otherwise provided below, to the extent that it may wish, the Corporation (jointly with any other indemnifying party similarly
notified) will be entitled to assume the defense thereof, with counsel reasonably satisfactory to Indemnitee. After receipt of notice from the Corporation to Indemnitee of the Corporation’s election so to assume the defense thereof, the
Corporation will not be liable to Indemnitee under this Agreement for any legal or other expenses subsequently incurred by Indemnitee in connection with the defense thereof other than reasonable costs of investigation or as otherwise provided below.
Indemnitee shall have the right to employ his own counsel in such action, suit, proceeding or investigation but the fees and expenses of such counsel 

  
  

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incurred after notice from the Corporation of its assumption of the defense thereof shall be at the expense of Indemnitee unless (i) the employment of
counsel by Indemnitee has been authorized by the Corporation, (ii) Indemnitee shall have reasonably concluded that there is a conflict of interest between the Corporation and Indemnitee in the conduct of the defense of such action or (iii) the
Corporation shall not in fact have employed counsel to assume the defense of such action, in each of which cases the fees and expenses of counsel employed by Indemnitee shall be subject to indemnification pursuant to the terms of this Agreement (the
Corporation shall not be entitled to assume the defense of any action, suit, proceeding or investigation brought in the name of or on behalf of the Corporation or as to which Indemnitee shall have made the conclusion provided for in (ii) above); and
(c) the Corporation shall not be liable to indemnify Indemnitee under this Agreement for any amounts paid in settlement of any action or claim effected without its written consent, which consent shall not be unreasonably withheld. The Corporation
shall not settle any action or claim in any manner that would impose any limitation or unindemnified penalty on Indemnitee without Indemnitee’s written consent, which consent shall not be unreasonably withheld. 

  
 8. Miscellaneous 
  

	8.01	Nonexclusivity of Rights. The rights of indemnification and advancement of Expenses as provided by this Agreement shall not be deemed exclusive of any other rights to which
Indemnitee may at any time be entitled to under applicable law, the Corporation’s Certificate of Incorporation, the Corporation’s Bylaws, any agreement, a vote of shareholders or a resolution of directors, or otherwise. No amendment,
alteration or repeal of this Agreement or any provision hereof shall be effective as to Indemnitee for acts, events and circumstances that occurred, in whole or in part, before such amendment, alteration or repeal. The provisions of this Agreement
shall continue as to Indemnitee whose Corporate Status has ceased for any reason and shall inure to the benefit of his heirs, executors and administrators. 

  

	8.02	Insurance and Subrogation. The Corporation shall not be liable under this Agreement to make any payment of amounts otherwise indemnifiable hereunder if, but only to the
extent that, Indemnitee has otherwise actually received such payment under any insurance policy, contract, agreement or otherwise. In the event of any payment hereunder, the Corporation shall be subrogated to the extent of such payment to all the
rights of recovery of Indemnitee, who shall execute all papers required and take all action reasonably requested by the Corporation to secure such rights, including execution of such documents as are necessary to enable the Corporation to bring suit
to enforce such rights. 

  

	8.03	Acknowledgment of Certain Matters. Both the Corporation and Indemnitee acknowledge that in certain instances, applicable law or public policy may prohibit indemnification of
Indemnitee by the Corporation under this Agreement or otherwise. Indemnitee understands and acknowledges that the Corporation has undertaken or may be 

  

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 Syntroleum Amended and Restated Indemnification Agreement 

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required in the future to undertake, by the Securities and Exchange Commission, to submit the question of indemnification to a court in certain circumstances
for a determination of the Corporation’s right under public policy to indemnify Indemnitee. 

  

	8.04	Amendment. This Agreement may not be modified or amended except by a written instrument executed by or on behalf of each of the parties hereto. 

  

	8.05	Waivers. The observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively) by the party
entitled to enforce such term only by a writing signed by the party against which such waiver is to be asserted. Unless otherwise expressly provided herein, no delay on the part of any party hereto in exercising any right, power or privilege
hereunder shall operate as a waiver thereof, nor shall any waiver on the part of any party hereto of any right, power or privilege hereunder operate as a waiver of any other right, power or privilege hereunder nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, power or privilege hereunder. 

  

	8.06	Entire Agreement. This Agreement and the documents referred to herein constitute the entire agreement between the parties hereto with respect to the matters covered hereby,
and any other prior or contemporaneous oral or written understandings or agreements with respect to the matters covered hereby are superseded by this Agreement. 

  

	8.07	Severability. If any provision or provisions of this Agreement shall be held to be invalid, illegal or unenforceable for any reason whatsoever, the validity, legality and
enforceability of the remaining provisions shall not in any way be affected or impaired thereby; and, to the fullest extent possible, the provisions of this Agreement shall be construed so as to give effect to the intent manifested by the provision
held invalid, illegal or unenforceable. 

  

	8.08	Certain Actions For Which Indemnification Is Not Provided. Notwithstanding any other provision of this Agreement, Indemnitee shall not be entitled to indemnification or
advancement of Expenses under this Agreement with respect to any Proceeding, or any Matter therein, brought or made by Indemnitee against the Corporation. 

  

	8.09	Notices. Promptly after receipt by Indemnitee of notice of the commencement of any action, suit or proceeding, Indemnitee shall, if he anticipates or contemplates making a
claim for expenses or an advance pursuant to the terms of this Agreement, notify the Corporation of the commencement of such action, suit or proceeding; provided, however, that any delay in so notifying the Corporation shall not constitute a waiver
or release by Indemnitee of rights hereunder and that any omission by Indemnitee to so notify the Corporation shall not relieve the Corporation from any liability that it may have to Indemnitee otherwise than under this Agreement. Any communication
required or permitted to the Corporation shall be addressed to the Secretary of the Corporation and 

  

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any such communication to Indemnitee shall be addressed to the Indemnitee’s address as shown on the Corporation’s records unless the Indemnitee
specifies otherwise and shall be personally delivered or delivered by overnight mail delivery. Any such notice shall be effective upon receipt. 

  

	8.10	Governing Law. This Agreement shall be construed in accordance with and governed by the laws of the State of Delaware without regard to any principles of conflict of laws
that, if applied, might permit or require the application of the laws of a different jurisdiction. 

  

	8.11	Headings. The Article and Section headings in this Agreement are for convenience of reference only, and shall not be deemed to alter or affect the meaning or interpretation
of any provisions hereof. 

  

	8.12	Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed to be an original and all of which together shall be deemed to be one and the same
instrument. 

  

	8.13	Use of Certain Terms. As used in this Agreement, the words “herein,” “hereof,” and “hereunder” and other words of similar import refer to this
Agreement as a whole and not to any particular paragraph, subparagraph, section, subsection, or other subdivision. Whenever the context may require, any pronoun used in this Agreement shall include the corresponding masculine, feminine or neuter
forms, and the singular form of nouns, pronouns and verbs shall include the plural and vice versa. 

  
 IN WITNESS WHEREOF, this Agreement has been duly executed and delivered to be effective as of the date first above written. 
  

	 SYNTROLEUM CORPORATION

		
	 By:
	 	

	 	 	John B. Holmes, Jr.
	
	 INDEMNITEE

		
	 By:
	 	

	 	 	Richard Edmonson

  

 10Exhibit 10.1

 Exhibit 10.1 
 EXECUTION COPY 
  
 AMENDMENT NO. 1 TO  
 AMENDED AND RESTATED LOAN FUNDING AND SERVICING AGREEMENT 
 (VFCC Transaction with ACS Funding Trust I) 
  
 THIS AMENDMENT NO. 1 TO AMENDED AND RESTATED LOAN FUNDING AND SERVICING AGREEMENT, dated as of October 8, 2003 (this “Amendment”),
is entered into by and among ACS FUNDING TRUST I, as the borrower (in such capacity, the “Borrower”), AMERICAN CAPITAL STRATEGIES, LTD., as the servicer (in such capacity, the “Servicer”), VARIABLE FUNDING CAPITAL
CORPORATION, as the conduit lender (in such capacity, the “Conduit Lender”), WACHOVIA CAPITAL MARKETS, LLC (f/k/a Wachovia Securities, Inc.), as the deal agent (in such capacity, the “Deal Agent”), WACHOVIA
BANK, NATIONAL ASSOCIATION (“WBNA”), as the swingline lender (in such capacity, the “Swingline Lender”), WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION, as the collateral custodian (in such capacity, the
“Collateral Custodian”) and as the backup servicer (in such capacity, the “Backup Servicer”), and is acknowledged and agreed to by WACHOVIA BANK, NATIONAL ASSOCIATION, as the hedge counterparty (in such capacity,
the “Hedge Counterparty”). Capitalized terms used and not otherwise defined herein shall have the meanings given to such terms in the Agreement (as defined below). 
  
 R E C I T A L S 
  
 WHEREAS, the parties hereto entered into that certain Amended and
Restated Loan Funding and Servicing Agreement, dated as of June 13, 2003 (such agreement as amended, modified, supplemented, waived or restated from time to time, the “Agreement”); 
  
 WHEREAS, the parties hereto desire to amend the Agreement in certain
respects as provided herein; 
  
 NOW, THEREFORE, based upon
the above Recitals, the mutual premises and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows: 
  
 SECTION 1. Amendments.

  
 (a) The following definitions in Section 1.1 of
the Agreement are hereby amended and restated in their entirety as follows: 
  
 “Availability: On any day, the amount by which (a) the lesser of (i) the product of (A) the Borrowing Base and (B) 75% and (ii) the Facility Amount exceeds (b) an amount necessary to cure any
Overcollateralization Shortfall and any Required Equity Shortfall; provided, however, that, (x) prior to January 4, 2004, subject to the other terms and conditions contained herein, with respect to Swingline Advances and
Advances against the 2000-1 Class C Securities owned by the Borrower, the Availability (subject to Fair Market Value adjustments) shall be an amount up to $28,850,000, with respect to Swingline Advances and Advances against the 2002-1 Class C
Securities owned by the Borrower, the 

  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 
Availability shall be an amount up to $36,850,000, and with respect to Swingline Advances and Advances against the 2002-2 Class C Securities owned by the
Borrower, the Availability shall be an amount up to $36,840,000, (y) on and after January 4, 2004, the Availability with respect to Swingline Advances and Advances against the Class C Securities shall be $0 and (z) for all purposes of this
Agreement, during the Amortization Period, the Availability shall be $0.” 
  
 “Facility Amount: (a) Prior to the Facility Increase Expiration Date, $305,000,000; and (b) on and after the Facility
Increase Expiration Date, $225,000,000; provided, however, on and after the Termination Date, the Facility Amount shall be zero.” 
  
 “Fair Market Value: With respect to (i) each Eligible Loan (other than the Class C Securities), if such Eligible
Loan has been reduced in value on such date of determination below the original principal amount (other than as a result of the allocation of a portion of the original principal amount to warrants) the fair market value of such Eligible Loan as
required by, and in accordance with, the 1940 Act and any orders of the Securities and Exchange Commission issued to the Originator, to be determined by the Board of Directors of the Originator and reviewed by its auditors, and (ii) the Class C
Securities (if any), the fair market value of such Class C Securities as determined by the Deal Agent, from time to time (including, without limitation, on the date of any Funding Request and any Monthly Report), in its sole and absolute discretion,
provided, that, from and after the occurrence of an “event of default” under the indenture pursuant which any Class C Security arises the fair market value of such Class C Security shall equal zero (0).” 
  
 “Loan: (i) Any senior or subordinate loan
arising from the extension of credit to an Obligor in the ordinary course of the Originator’s business including, without limitation, all Add-On Loans, Revolving Loans, PIK Loans, the Euro-Caribe Loan and Agented Notes and (ii) the Class C
Securities (if any), in each case including monies due and owing and all Interest Collections, Principal Collections and other amounts received from time to time with respect to such loan or note receivable and all Proceeds.” 
  
 “Loan Documents: With respect to (i) any
Loan (other than the Class C Securities), the related promissory note and any related loan agreement, security agreement, mortgage, assignment of Loans, all guarantees, note purchase agreement, intercreditor and/or subordination agreement, and UCC
financing statements and continuation statements (including amendments or modifications thereof) executed by the Obligor thereof or by another Person on the Obligor’s behalf in respect of such Loan and related promissory note, including,
without limitation, general or limited guaranties and, for each Loan secured by real property an Assignment of Mortgage, and for all Loans with a Note, an assignment (which may be by allonge), in blank, signed by an officer of the Originator, and
(ii) with respect to the Class C Securities (if any), duly executed 

  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 2 

 
originals of each of the Class C Securities registered in the name of “Wachovia Capital Markets, LLC, as agent for VFCC”. 
  
 “Transferred Loans: Each Class C
Security, each Loan that is acquired by the Borrower under the Purchase Agreement and all Loans received by the Borrower in respect of the Required Equity Contribution; provided, that, the term Transferred Loan shall not include any
Retained Interests, provided, further, that, for avoidance of doubt, the term Transferred Loan shall include each Transferred Loan acquired or received by the Borrower under the Original Purchase Agreement and owned by the
Borrower on the Closing Date.” 
  
 (b) Section
1.1 of the Agreement is amended by adding the following new definitions: 
  
 “2000-1 Class C Securities: Collectively, (i) the ACAS Business Loan Trust 2000-1, Class C Loan Backed Note, dated December 20, 2000 and (ii) the ACAS Business Loan Trust 2000-1, Trust Certificate,
dated December 20, 2000.” 
  
 “2002-1 Class C Securities: Collectively, (i) the ACAS Business Loan Trust 2002-1, Class C Loan Backed Note, dated March 15, 2002 and (ii) the ACAS Business Loan Trust 2002-1, Trust Certificate, dated March 15,
2002.” 
  
 “2002-2 Class C
Securities: Collectively, (i) the ACAS Business Loan Trust 2002-2, Class C Loan Backed Note, dated August 8, 2002 and (ii) the ACAS Business Loan Trust 2002-2, Trust Certificate, dated August 8, 2002.” 
  
 “ACAS Business Loan Trust 2003-2
Transaction: That certain private placement transaction of commercial loan-backed notes pursuant to Rule 144A and Regulation S to be issued by ACAS Business Loan Trust 2003–2.” 
  
 “Class C Securities: Collectively, (i)
the 2000-1 Class C Securities, (ii) the 2002-1 Class C Securities and (iii) the 2002-2 Class C Securities.” 
  
 “Facility Increase Expiration Date: The earlier of (i) January 4, 2004 or (ii) the closing of the ACAS Business Loan
Trust 2003-2 Transaction.” 
  
 (c) The initial clause of the
definition of “Eligible Loan” in Section 1.1 of the Agreement is hereby amended and restated in its entirety as follows: 
  
 “Eligible Loan: (i) Any Class C Security, and (ii) on any date of determination, any other Loan that satisfies each of
the following requirements:” 
  
 (d) Clause (i) of
subsection 2.1(a) of the Agreement is hereby amended and restated in its entirety as follows: 
  
 (i) VFCC Note shall be in the name of “Wachovia Capital Markets, LLC, as the Deal Agent” and shall be in a face amount prior to
the Facility Increase 

  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 3 

 
Expiration Date equal to $305,000,000 and on and after the Facility Increase Expiration Date equal to $225,000,000, and”. 
  
 (e) The Commitment of VFCC as the Conduit Lender set forth on the signature
pages of the Agreement is hereby amended and restated to be “(a) prior to the Facility Increase Expiration Date, $305,000,000; and (b) on and after the Facility Increase Expiration Date, $225,000,000; provided, however,
that the sum of the Advances outstanding under the VFCC Note and Swingline Advances outstanding under the Swingline Note shall not, in the aggregate, exceed the Facility Amount.” 
  
 (f) Exhibit E to the Agreement (Form of Monthly Report) is hereby amended and restated in its entirety in the form of
Annex B attached hereto. 
  
 SECTION 2. Increase in
Facility Amount and Amount of VFCC Note. 
  
 Upon
this Amendment becoming effective, the Facility Amount shall be increased to $305,000,000 until the Facility Increase Expiration Date in accordance with the definition of Facility Amount in Section 1.1 of the Agreement; provided,
that, the Deal Agent shall have first received an executed version of the amended, restated and substituted VFCC Note attached to this Amendment as Annex A (the “New Note”). Such New Note shall replace and
supersede any VFCC Note previously executed by the Borrower pursuant to the Agreement (the “Replaced Note”). Such New Note evidences the same indebtedness, and is secured by the same Collateral as the Replaced Note. The Deal Agent
shall return the Replaced Note to the Borrower. 
  
 SECTION 3.
Waiver. 
  
 Pursuant to and in accordance with
the provisions of Section 12.1 of the Agreement, each of the undersigned hereby agrees to waive non-compliance with the provisions of subsections 5.1(i) and (p) of the Agreement with respect to the acquisition of the Class C
Securities by the Borrower. This is a one–time waiver and shall not be construed to be (i) a waiver as to non–compliance with any other covenants in Section 5.1 or any other covenant non-compliance that exists, (ii) a waiver as to
any future or other non–compliance with the covenants in subsection 5.1(i) or (p), other than as specifically set forth in the preceding sentence, (iii) a waiver of any other or future Unmatured Termination Event or Termination
Event that may exist, other than as specifically set forth in the preceding sentence, or (iv) an amendment or modification of Section 5.1 of the Agreement. This limited waiver is expressly subject to the terms of this Amendment. 

 

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 4 

 SECTION 4. Agreement in Full Force and Effect as Amended and Waived. 
  
 Except as specifically amended and waived hereby, all provisions of the
Agreement shall remain in full force and effect. After this Amendment becomes effective, all references to the Agreement, the “Loan Funding and Servicing Agreement,” “hereof,” “herein,” or words of similar effect
referring to the Agreement shall be deemed to mean the Agreement as amended hereby. This Amendment shall not constitute a novation of the Agreement, but shall constitute an amendment and waiver thereof. This Amendment shall not be deemed to
expressly or impliedly waive, amend or supplement any provision of the Agreement other than as expressly set forth herein. 
  
 SECTION 5. Representations. 
  
 Each of the Borrower and Servicer represent and warrant as of the date of this Amendment as follows: 
  
 (i) it is duly incorporated or organized, validly existing
and in good standing under the laws of its jurisdiction of incorporation or organization; 
  
 (ii) the execution, delivery and performance by it of this Amendment are within its powers, have been duly authorized, and do not
contravene (A) its charter, by-laws, or other organizational documents, or (B) any Applicable Law; 
  
 (iii) no consent, license, permit, approval or authorization of, or registration, filing or declaration with any governmental authority,
is required in connection with the execution, delivery, performance, validity or enforceability of this Amendment by or against it; 
  
 (iv) this Amendment has been duly executed and delivered by it; 
  
 (v) this Amendment constitutes its legal, valid and binding obligation enforceable against it in accordance
with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity; 
  
 (vi) it is not in default under the Agreement; and

  
 (vii) there is no Termination Event,
Unmatured Termination Event, or Servicer Termination Event. 
  
 SECTION 6. Conditions to Effectiveness. 
  
 The effectiveness of this Amendment is conditioned upon (i) the payment by the Servicer of the structuring fee due to the Deal Agent in the amount of $250,000 (ii) payment of the outstanding fees and disbursements of Mayer, Brown, Rowe
& Maw, as counsel to the Deal Agent in the amount of $46,516.15, (iii) delivery of executed signature pages by all parties hereto to the Deal Agent, (iv) the receipt by the Deal Agent of such legal opinions as are reasonably requested and in a
form and substance satisfactory to it; provided, that, the Borrower 

  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 5 

 
shall have until the close of business on October 14, 2003 to deliver an opinion with respect to the ACAS Business Loan Trust 2000-1 transaction however the
failure to deliver such an opinion by such date and time shall constitute a Termination Event, (v) receipt by Wells Fargo of the ACAS Business Loan Trust 2000-1, Class C Loan Backed Note, dated December 20, 2000, the ACAS Business Loan Trust 2002-1,
Class C Loan Backed Note, dated March 15, 2002, and the ACAS Business Loan Trust 2002-2, Class C Loan Backed Note, dated August 8, 2002, and (vi) receipt by Wachovia Trust Company, National Association of the ACAS Business Loan Trust 2000-1, Trust
Certificate, dated December 20, 2000, the ACAS Business Loan Trust 2002-1, Trust Certificate, dated March 15, 2002 and the ACAS Business Loan Trust 2002-2, Trust Certificate dated August 8, 2003. 
  
 SECTION 7. Miscellaneous. 
  
 (a) This Amendment may be executed in any number of counterparts (including
by facsimile), and by the different parties hereto on the same or separate counterparts, each of which shall be deemed to be an original instrument but all of which together shall constitute one and the same agreement. 
  
 (b) The descriptive headings of the various sections of this Amendment are
inserted for convenience of reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof. 
  
 (c) This Amendment may not be amended or otherwise modified except as provided in the Agreement. 
  
 (d) The failure or unenforceability of any provision hereof shall not affect
the other provisions of this Amendment. 
  
 (e) Whenever the
context and construction so require, all words used in the singular number herein shall be deemed to have been used in the plural, and vice versa, and the masculine gender shall include the feminine and neuter and the neuter shall include the
masculine and feminine. 
  
 (f) This Amendment represents the
final agreement between the parties and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements between the parties. There are no unwritten oral agreements between the parties. 
  
 (g) THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER
THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO ITS CONFLICT OF LAWS PROVISIONS. 
  
 [Remainder of Page Intentionally Left Blank] 
  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 6 

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

	THE BORROWER:	 	 	 	ACS FUNDING TRUST I
					
	 	 	 	 	 	 	By:	 	  

	 	 	 	 	 	 	 Name:
	 	  

	 	 	 	 	 	 	 Title:
	 	  

				
	 	 	 	 	 	 	 ACS Funding Trust I
 c/o American
Capital Strategies, Ltd.
 2 Bethesda Metro Center, 14th Floor
 Bethesda, Maryland 20814
 Attention: Compliance Officer
 Facsimile: (301) 654-6714
 Telephone: (301) 951-6122

  

	THE SERVICER:	 	 	 	AMERICAN CAPITAL STRATEGIES, LTD.
					
	 	 	 	 	 	 	By:	 	  

	 	 	 	 	 	 	 Name:
	 	  

	 	 	 	 	 	 	 Title:
	 	  

				
	 	 	 	 	 	 	 American Capital Strategies, Ltd.
 2 Bethesda Metro Center, 10 Floor
 Bethesda, Maryland 20814
 Attention: Compliance Officer
 Facsimile: (301) 654-6714
 Telephone: (301) 951-6122

  
 [SIGNATURES CONTINUED
ON FOLLOWING PAGE] 
  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 7 

	CONDUIT LENDER:	 	 	 	VARIABLE FUNDING CAPITAL
CORPORATION
				
	Commitment: (a) prior to the Facility Increase Expiration Date, $305,000,000 and (b) on and after the Facility Increase Expiration Date, $225,000,000;
provided, however, that the sum of the Advances outstanding under the VFCC Note and the Swingline Advances outstanding under the Swingline Note shall not, in the aggregate, exceed the Facility Amount.	 	 	 	 By:
	 	Wachovia Capital Markets, LLC (f/k/a Wachovia Securities, Inc.), as attorney-in-fact
	 	 	 	By:	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

	 	 	 	 	 	  
 Variable Funding Capital Corporation

c/o Wachovia Capital Markets, LLC
 One Wachovia Center, Mail Code:
NC0610
 301 South College Street
 Charlotte, North Carolina
28288
 Attention: Conduit Administration
 Facsimile: (704)
383-6036
 Telephone: (704) 383-9343

			
	with a copy to:	 	 	 	 
	 	 	 	 	 Lord Securities Corp.
 2 Wall
Street, 19th Floor
 New York, New York 10005
 Attention: Vice
President
 Facsimile: (212) 346-9012
 Telephone: (212)
346-9008

  
 [SIGNATURES CONTINUED
ON FOLLOWING PAGE] 
  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 8 

	THE DEAL AGENT:	 	 	 	WACHOVIA CAPITAL MARKETS, LLC
	 	 	 	 	 (f/k/a Wachovia Securities, Inc.)

				
	 	 	 	 	By:	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

	 	 	  
 Wachovia Capital Markets, LLC
 One Wachovia Center, Mail Code: NC0610
 301 South College Street
 Charlotte, North Carolina 28288
 Attention: Raj Shah
 Facsimile: (704) 383-4012
 Telephone: (704) 374-6230

			
	SWINGLINE LENDER	 	 	 	WACHOVIA BANK, NATIONAL
ASSOCIATION
				
	Commitment: $30,000,000; provided, however, that the sum of the Advances outstanding under the VFCC Note and the Swingline Advances
outstanding under the Swingline Note shall not, in the aggregate, exceed the Facility Amount.	 	 	 	By:	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

	 	 	  
 Wachovia Bank, National Association

One Wachovia Center, Mail Code: NC0610
 301 South College Street

Charlotte, North Carolina 28288
 Attention: Raj Shah
 Facsimile: (704) 383-4012
 Telephone: (704) 374-6230

  
 [SIGNATURES CONTINUED
ON THE FOLLOWING PAGE] 
  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 9 

	THE BACKUP SERVICER:	 	 	 	WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION
				
	 	 	 	 	By.	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

	 	 	  
 Wells Fargo Bank Minnesota, National
Association
 Sixth Street and Marquette, MAC: N9311-161
 Minneapolis, Minnesota 55479
 Attention: Corporate Trust
Services
                 Asset-Backed Administration
 Facsimile:
(612) 667-3464
 Telephone: (612) 667-8058

			
	THE COLLATERAL CUSTODIAN:	 	 	 	WELLS FARGO BANK MINNESOTA,
NATIONAL ASSOCIATION
				
	 	 	 	 	By:	 	  

	 	 	 Name:
	 	  

	 	 	 Title:
	 	  

	 	 	 Wells Fargo Bank Minnesota, National Association
Sixth Street and Marquette, MAC: N9311-161
Minneapolis, Minnesota
55479
 Attention: Corporate Trust
Services
                 Asset-Backed Administration
 Facsimile:
(612) 667-3464
 Telephone: (612) 667-8058

  
 [SIGNATURES CONTINUED
ON THE FOLLOWING PAGE] 
  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 10 

	 Acknowledged and Agreed as
 of
the date above first written.
	 	 	 	 
			
	 WACHOVIA BANK, NATIONAL
 ASSOCIATION, as the Hedge Counterparty
	 	 	 	 
				
	By:	 	  

	 	 	 	 
	 Name:
	 	  

	 	 	 	 
	 Title:
	 	  

	 	 	 	 
			
	 Wachovia Bank, National Association
 One Wachovia Center, Mail Code: NC0610
 Charlotte, North Carolina 28288
 Attention: Raj Shah
 Facsimile: (704) 383-4012
 Telephone: (704) 374-6230
	 	 	 	 

  

 Amendment No 1 to 
 Amended and Restated LFSA 
 (VFCC/ACS Funding Trust I) 
  

 11

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